UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Investment Company Act file number: 811-08399

PIMCO Variable Insurance Trust

(Exact name of registrant as specified in charter)

650 Newport Center Drive, Newport Beach, CA 92660

(Address of principal executive office)

Trent W. Walker

Treasurer (Principal Financial & Accounting Officer)

PIMCO Variable Insurance Trust

650 Newport Center Drive, Newport Beach, CA 92660

(Name and address of agent for service)

Copies to:

Brendan C. Fox

Dechert LLP

1900 K Street, N.W.

Washington, D.C. 20006

Registrant’s telephone number, including area code: (888) 877-4626

Date of fiscal year end: December 31

Date of reporting period: December 31, 2018

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Reports to Shareholders.

The following is a copy of the report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940, as amended (the “Act”) (17 CFR 270.30e-1).

• PIMCO All Asset All Authority Portfolio

• PIMCO All Asset Portfolio

• PIMCO Balanced Allocation Portfolio

• PIMCO CommodityRealReturn^® Strategy Portfolio

• PIMCO Dynamic Bond Portfolio

• PIMCO Emerging Markets Bond Portfolio

• PIMCO Global Bond Opportunities Portfolio (Unhedged)

• PIMCO Global Core Bond (Hedged) Portfolio

• PIMCO Global Diversified Allocation Portfolio

• PIMCO Global Multi-Asset Managed Allocation Portfolio

• PIMCO High Yield Portfolio

• PIMCO Income Portfolio

• PIMCO International Bond Portfolio (U.S. Dollar-Hedged)

• PIMCO International Bond Portfolio (Unhedged)

• PIMCO Long-Term U.S. Government Portfolio

• PIMCO Low Duration Portfolio

• PIMCO Real Return Portfolio

• PIMCO Short-Term Portfolio

• PIMCO Total Return Portfolio

PIMCO VARIABLE INSURANCE TRUST

Annual Report

December 31, 2018

PIMCO All Asset All Authority Portfolio

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, you may not be receiving paper copies of the Portfolio’s shareholder reports from the insurance company that offers your contract unless you specifically request paper copies from the insurance company or from your financial intermediary. Instead, the shareholder reports will be made available on a website, and the insurance company will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the insurance company electronically by following the instructions provided by the insurance company.

You may elect to receive all future reports in paper free of charge from the insurance company. You should contact the insurance company if you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all portfolio companies available under your contract at the insurance company.

Table of Contents

	Page
Chairman’s Letter		2
Important Information About the PIMCO All Asset All Authority Portfolio		4
Portfolio Summary		7
Expense Example		8
Financial Highlights		10
Statement of Assets and Liabilities		12
Statement of Operations		13
Statements of Changes in Net Assets		14
Statement of Cash Flows		15
Schedule of Investments		16
Notes to Financial Statements		17
Report of Independent Registered Public Accounting Firm		32
Glossary		33
Federal Income Tax Information		34
Management of the Trust		35
Privacy Policy		37
Approval of Investment Advisory Contract and Other Agreements		38

This material is authorized for use only when preceded or accompanied by the current PIMCO Variable Insurance Trust (the “Trust”) prospectus for the Portfolio. (The variable product prospectus may be obtained by contacting your Investment Consultant.)

Chairman’s Letter

Dear PIMCO Variable Insurance Trust Shareholder,

Following this letter is the PIMCO Variable Insurance Trust Annual Report, which covers the 12-month reporting period ended December 31, 2018. On the subsequent pages you will find specific details regarding investment results and discussion of the factors that most affected performance during the reporting period.

For the 12-month reporting period ended December 31, 2018

The U.S. economy continued to expand during the reporting period. Looking back, U.S. gross domestic product (“GDP”) grew at an annual pace of 2.2% during the first quarter of 2018. During the second quarter of 2018, GDP growth rose to an annual pace of 4.2%, the strongest since the third quarter of 2014. GDP then expanded at an annual pace of 3.4% during the third quarter of the year. Finally, the Commerce Department’s initial reading for fourth-quarter 2018 GDP has been delayed due to the partial government shutdown.

The Federal Reserve (the “Fed”) continued to normalize monetary policy during the reporting period. During its meetings that concluded in March, June, September and December 2018, the Fed raised the federal funds rate in 0.25% increments. The Fed’s December rate hike pushed the federal funds rate to a range between 2.25% and 2.50%. In addition, the Fed continued to reduce its balance sheet during the reporting period.

Economic activity outside the U.S. initially accelerated during the reporting period, but moderated as it progressed. Against this backdrop, the European Central Bank (the “ECB”) and the Bank of Japan largely maintained their highly accommodative monetary policies, while other central banks took a more hawkish stance. The Bank of England raised rates at its meeting in August 2018 and the Bank of Canada raised rates twice during the reporting period. Meanwhile, the ECB ended its quantitative easing program in December 2018, but indicated that it does not expect to raise interest rates “at least through the summer of 2019.”

The U.S. Treasury yield curve flattened during the reporting period as short-term rates moved up more than longer-term rates. In our view, the increase in rates at the short end of the yield curve was mostly due to Fed interest rate increases. The yield on the benchmark 10-year U.S. Treasury note was 2.69% at the end of the reporting period, up from 2.40% on December 31, 2017. U.S. Treasuries, as measured by the Bloomberg Barclays U.S. Treasury Index, returned 0.86% over the 12 months ended December 31, 2018. Meanwhile, the Bloomberg Barclays U.S. Aggregate Bond Index, a widely used index of U.S. investment grade bonds, returned 0.01% over the period. Riskier fixed income asset classes, including high yield corporate bonds and emerging market debt, generated weak results versus the broad U.S. market. The ICE BofAML U.S. High Yield Index returned -2.27% over the reporting period, whereas emerging market external debt, as represented by the JPMorgan Emerging Markets Bond Index (EMBI) Global, returned -4.61% over the reporting period. Emerging market local bonds, as represented by the JPMorgan Government Bond Index-Emerging Markets Global Diversified Index (Unhedged), returned -6.21% over the period.

Global equities produced poor results during the reporting period. U.S. equities moved sharply higher over the first nine months of the period. We believe this rally was driven by a number of factors, including corporate profits that often exceeded expectations. However, U.S. equities fell sharply during the fourth quarter of 2018. We believe this was triggered by a number of factors, including signs of moderating global growth, concerns over future Fed rate hikes, the ongoing trade dispute between the U.S. and China and the partial U.S. government shutdown. All told, U.S. equities, as represented by the S&P 500 Index, returned -4.38% during the reporting period. Elsewhere, emerging market equities, as measured by the MSCI Emerging Markets Index, returned -14.58% during the reporting period, whereas global equities, as represented by the MSCI World Index, returned -8.71%. Elsewhere, Japanese equities, as represented by the Nikkei 225 Index (in JPY), returned -10.39% during the reporting period and European equities, as represented by the MSCI Europe Index (in EUR), returned -10.57%.

Commodity prices fluctuated and generally declined during the reporting period. When the reporting period began, West Texas crude oil was approximately $65 a barrel, but by the end it was roughly $45 a barrel. This was driven in

2 PIMCO VARIABLE INSURANCE TRUST

part by increased supply and declining global demand. Elsewhere, gold and copper prices also moved lower during the reporting period.

Finally, during the reporting period the foreign exchange markets experienced periods of volatility, due in part to signs of decoupling economic growth and central bank policies, along with a number of geopolitical events. The U.S. dollar produced mixed results against other major currencies during the reporting period. For example, the U.S. dollar appreciated 4.71% and 5.90% versus the euro and the British pound, respectively, whereas the U.S. dollar depreciated 2.66% versus the yen during the reporting period.

Thank you for the assets you have placed with us. We deeply value your trust, and we will continue to work diligently to meet your broad investment needs.

Sincerely,     Brent R. Harris Chairman of the Board,
PIMCO Variable Insurance Trust  

Past performance is no guarantee of future results. Unless otherwise noted, index returns reflect the reinvestment of income distributions and capital gains, if any, but do not reflect fees, brokerage commissions or other expenses of investing. It is not possible to invest directly in an unmanaged index.

ANNUAL REPORT DECEMBER 31, 2018 3

Important Information About the PIMCO All Asset All Authority Portfolio

PIMCO Variable Insurance Trust (the “Trust”) is an open-end management investment company that includes the PIMCO All Asset All Authority Portfolio (the “Portfolio”). The Portfolio is only available as a funding vehicle under variable life insurance policies or variable annuity contracts issued by insurance companies (“Variable Contracts”). Individuals may not purchase shares of the Portfolio directly. Shares of the Portfolio also may be sold to qualified pension and retirement plans outside of the separate account context.

The Portfolio is a “fund of funds,” which is a term used to describe mutual funds that pursue their investment objective by investing in other mutual funds instead of investing directly in stocks or bonds of other issuers. Under normal circumstances, the Portfolio may invest substantially all of its assets in the least expensive class of shares of any actively managed or smart beta funds (including mutual funds or exchange-traded funds) of PIMCO Funds, PIMCO ETF Trust or PIMCO Equity Series, each an affiliated open-end investment company, except other funds of funds (collectively, “Underlying PIMCO Funds”). The cost of investing in these Funds will generally be higher than the cost of investing in a mutual fund that invests directly in individual stocks and bonds.

We believe that equity funds and bond funds have an important role to play in a well-diversified portfolio. It is important to note, however, that equity funds and bond funds are subject to notable risks.

Among other things, equity and equity-related securities may decline in value due to both real and perceived general market, economic, and industry conditions. The values of equity securities, such as common stocks and preferred securities, have historically risen and fallen in periodic cycles and may decline due to general market conditions, which are not specifically related to a particular company, such as real or perceived adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment generally. Equity securities may also decline due to factors that affect a particular industry or industries, such as labor shortages, increased production costs and competitive conditions within an industry. In addition, the value of an equity security may decline for a number of reasons that directly relate to the issuer, such as management performance, financial leverage and reduced demand for the issuer’s goods or services, as well as the historical and prospective earnings of the issuer and the value of its assets. Different types of equity securities may react differently to these developments and a change in the financial condition of a single issuer may affect securities markets as a whole.

During a general downturn in the securities markets, multiple asset classes, including equity securities, may decline in value simultaneously. The market price of equity securities owned by the Portfolio may go up or down, sometimes rapidly or unpredictably. Equity securities generally

have greater price volatility than fixed income securities and common stocks generally have the greatest appreciation and depreciation potential of all corporate securities.

Bond funds and fixed income securities are subject to a variety of risks, including interest rate risk, liquidity risk and market risk. In an environment where interest rates may trend upward, rising rates would negatively impact the performance of most bond funds, and fixed income securities and other instruments held by the Underlying PIMCO Funds are likely to decrease in value. A wide variety of factors can cause interest rates to rise (e.g., central bank monetary policies, inflation rates, general economic conditions, etc.). In addition, changes in interest rates can be sudden and unpredictable, and there is no guarantee that management will anticipate such movement accurately. The Portfolio may lose money as a result of movements in interest rates.

As of the date of this report, interest rates in the U.S. and many parts of the world, including certain European countries, are at or near historically low levels. Thus, the Portfolio currently faces a heightened level of interest rate risk, especially since the Fed has ended its quantitative easing program and has begun, and may continue, to raise interest rates. To the extent the Fed continues to raise interest rates, there is a risk that rates across the financial system may rise. Further, while bond markets have steadily grown over the past three decades, dealer inventories of corporate bonds are near historic lows in relation to market size. As a result, there has been a significant reduction in the ability of dealers to “make markets.”

Bond funds and individual bonds with a longer duration (a measure used to determine the sensitivity of a security’s price to changes in interest rates) tend to be more sensitive to changes in interest rates, usually making them more volatile than securities or funds with shorter durations. All of the factors mentioned above, individually or collectively, could lead to increased volatility and/or lower liquidity in the fixed income markets, or negatively impact the Portfolio’s performance or cause the Portfolio to incur losses. As a result, the Portfolio may experience increased shareholder redemptions, which among other things, could further reduce the net assets of the Portfolio.

The Portfolio may be subject to various risks as described in the Portfolio’s prospectus and in the Principal Risks in the Notes to Financial Statements.

The geographical classification of foreign (non-U.S.) securities in this report are classified by the country of incorporation of a holding. In certain instances, a security’s country of incorporation may be different from its country of economic exposure.

The United States presidential administration’s enforcement of tariffs on goods from other countries, with a focus on China, has contributed

4 PIMCO VARIABLE INSURANCE TRUST

to international trade tensions and may impact portfolio securities held by the Underlying PIMCO Funds.

The United Kingdom’s decision to leave the European Union may impact Portfolio returns. This decision may cause substantial volatility in foreign exchange markets, lead to weakness in the exchange rate of the British pound, result in a sustained period of market uncertainty, and destabilize some or all of the other European Union member countries and/or the Eurozone.

On the Portfolio Summary page in this Shareholder Report, the Average Annual Total Return table and Cumulative Returns chart measure performance assuming that any dividend and capital gain distributions were reinvested. The Cumulative Returns chart reflects only Administrative Class performance. Performance may vary by share class

based on each class’s expense ratios. The Portfolio measures its performance against at least one broad-based securities market index (“benchmark index”). The benchmark index does not take into account fees, expenses, or taxes. The Portfolio’s past performance, before and after taxes, is not necessarily an indication of how the Portfolio will perform in the future. There is no assurance that the Portfolio, even if the Portfolio has experienced high or unusual performance for one or more periods, will experience similar levels of performance in the future. High performance is defined as a significant increase in either 1) the Portfolio’s total return in excess of that of the Portfolio’s benchmark between reporting periods or 2) the Portfolio’s total return in excess of the Portfolio’s historical returns between reporting periods. Unusual performance is defined as a significant change in the Portfolio’s performance as compared to one or more previous reporting periods.

The following table discloses the inception dates of the Portfolio and its respective share classes along with the Portfolio’s diversification status as of period end:

Portfolio Name

Portfolio Inception

Institutional Class

Class M

Administrative Class

Advisor Class

Diversification Status

PIMCO All Asset All Authority Portfolio

04/30/14

04/30/14

—

04/30/14

04/30/14

Diversified

An investment in the Portfolio is not a bank deposit and is not guaranteed or insured by the Federal Deposit Insurance Corporation (“FDIC”) or any other government agency. It is possible to lose money on investments in the Portfolio.

The Trustees are responsible generally for overseeing the management of the Trust. The Trustees authorize the Trust to enter into service agreements with the Adviser, the Distributor, the Administrator and other service providers in order to provide, and in some cases authorize service providers to procure through other parties, necessary or desirable services on behalf of the Trust and the Portfolio. Shareholders are not parties to or third-party beneficiaries of such service agreements. Neither this Portfolio’s prospectus nor summary prospectus, the Trust’s Statement of Additional Information (“SAI”), any contracts filed as exhibits to the Trust’s registration statement, nor any other communications, disclosure documents or regulatory filings (including this report) from or on behalf of the Trust or the Portfolio creates a contract between or among any shareholder of the Portfolio, on the one hand, and the Trust, the Portfolio, a service provider to the Trust or the Portfolio, and/or the Trustees or officers of the Trust, on the other hand. The Trustees (or the Trust and its officers, service providers or other delegates acting under authority of the Trustees) may amend the most recent prospectus or use a new prospectus, summary prospectus or SAI with respect to the Portfolio or the Trust, and/or amend, file and/or issue any other communications, disclosure documents or regulatory filings, and may amend or enter into any contracts to which the Trust or the Portfolio is a party, and interpret the investment objective(s), policies, restrictions and contractual provisions

applicable to the Portfolio, without shareholder input or approval, except in circumstances in which shareholder approval is specifically required by law (such as changes to fundamental investment policies) or where a shareholder approval requirement is specifically disclosed in the Trust’s then-current prospectus or SAI.

PIMCO has adopted written proxy voting policies and procedures (“Proxy Policy”) as required by Rule 206(4)-6 under the Investment Advisers Act of 1940, as amended. The Proxy Policy has been adopted by the Trust as the policies and procedures that PIMCO will use when voting proxies on behalf of the Portfolio. A description of the policies and procedures that PIMCO uses to vote proxies relating to portfolio securities of the Portfolio, and information about how the Portfolio voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, are available without charge, upon request, by calling the Trust at (888) 87-PIMCO, on the Portfolio’s website at www.pimco.com/pvit, and on the Securities and Exchange Commission’s (“SEC”) website at www.sec.gov.

The Trust files a complete schedule of the Portfolio’s holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. A copy of the Portfolio’s Form N-Q is available on the SEC’s website at www.sec.gov. A copy of the Portfolio’s Form N-Q is also is available without charge, upon request, by calling the Trust at (888) 87-PIMCO and on the Portfolio’s website at www.pimco.com/pvit.

The SEC adopted a rule that, beginning in 2021, generally will allow shareholder reports to be delivered to investors by providing access to

ANNUAL REPORT DECEMBER 31, 2018 5

Important Information About the PIMCO All Asset All Authority Portfolio (Cont.)

such reports online free of charge and by mailing a notice that the report is electronically available. Pursuant to the rule, investors may still elect to receive a complete shareholder report in the mail. Instructions for electing to receive paper copies of the Portfolio’s shareholder reports going forward may be found on the front cover of this report.

The SEC adopted amendments to certain disclosure requirements relating to open-end investment companies’ liquidity risk management programs. Effective December 1, 2019, large fund complexes will be required to include in their shareholder reports a discussion of their liquidity risk management programs’ operations over the past year.

6 PIMCO VARIABLE INSURANCE TRUST

PIMCO All Asset All Authority Portfolio

Cumulative Returns Through December 31, 2018

$10,000 invested at the end of the month when the Portfolio’s Administrative Class commenced operations.

Top 10 Holdings as of 12/31/2018^1§

PIMCO StocksPLUS® Short Fund	17.4%
PIMCO Emerging Markets Currency and Short-Term Investments Fund	8.8%
PIMCO RAE PLUS EMG Fund	8.6%
PIMCO RAE Emerging Markets Fund	5.8%
PIMCO Income Fund	5.6%
PIMCO Low Duration Fund	5.5%
PIMCO RAE Worldwide Long/Short PLUS Fund	4.6%
PIMCO RAE Fundamental Advantage PLUS Fund	4.1%
PIMCO Emerging Local Bond Fund	4.1%
PIMCO RealEstateRealReturn Strategy Fund	4.0%

¹  % of Investments, at value.

^§  Top 10 Holdings and % of Investments exclude securities sold short, financial derivative instruments and short-term instruments, if any.

Average Annual Total Return for the period ended December 31, 2018
		1 Year		Inception≈
	PIMCO All Asset All Authority Portfolio Institutional Class		(6.34)%		(0.36)%
	PIMCO All Asset All Authority Portfolio Administrative Class		(6.58)%		(0.53)%
	PIMCO All Asset All Authority Portfolio Advisor Class		(6.70)%		(0.64)%
	S&P 500 Index±		(4.38)%		8.54%¨
	Consumer Price Index + 650 Basis Points±±		8.45%		7.94%¨

All Portfolio returns are net of fees and expenses.

^≈ For class inception dates please refer to the Important Information.

^¨ Average annual total return since 04/30/2014.

^± S&P 500 Index is an unmanaged market index generally considered representative of the stock market as a whole. The Index focuses on the large-cap segment of the U.S. equities market.

^±± CPI + 650 Basis Points benchmark is created by adding 6.5% to the annual percentage change in the Consumer Price Index (CPI). This index reflects seasonally adjusted returns. The Consumer Price Index is an unmanaged index representing the rate of inflation of the U.S. consumer prices as determined by the U.S. Bureau of Labor Statistics. There can be no guarantee that the CPI or other indexes will reflect the exact level of inflation at any given time.

It is not possible to invest directly in an unmanaged index.

Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. The Portfolio’s performance does not reflect the deduction of additional charges and expenses imposed in connection with investing in Variable Contracts, which will reduce returns. Differences in the Portfolio’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the prices of individual positions (which may be sourced from different pricing vendors or other sources) used by the Portfolio and the index. For performance current to the most recent month-end, visit www.pimco.com/pvit or via (888) 87-PIMCO.

The Portfolio’s total annual operating expense ratio in effect as of period end which includes the Acquired Fund Fees and Expenses (Underlying PIMCO Fund Expenses), were 2.52% for Institutional Class shares, 2.67% for Administrative Class shares, and 2.77% for Advisor Class shares. Details regarding any changes to the Portfolio’s operating expenses, subsequent to period end, can be found in the Portfolio’s current prospectus, as supplemented.

Investment Objective and Strategy Overviews

PIMCO All Asset All Authority Portfolio seeks maximum real return, consistent with preservation of real capital and prudent investment management by investing under normal circumstances substantially all of its assets in the least expensive class of shares of any actively managed or smart beta funds (including mutual funds and exchange-traded funds) of PIMCO Funds, PIMCO ETF Trust or PIMCO Equity Series, each an affiliated open-end investment company, except other funds of funds (collectively, “Underlying PIMCO Funds”) and does not invest directly in stocks or bonds of other issuers. Research Affiliates, LLC, the Portfolio’s asset allocation sub-adviser, determines how the Portfolio allocates and reallocates its assets among the Underlying PIMCO Funds. In doing so, the asset allocation sub-adviser seeks concurrent exposure to a broad spectrum of asset classes. In addition to investing in the Underlying PIMCO Funds, at the discretion of PIMCO and without shareholder approval, the Portfolio may invest in additional Underlying PIMCO Funds created in the future. Portfolio strategies may change from time to time. Please refer to the Portfolio’s current prospectus for more information regarding the Portfolio’s strategy.

Portfolio Insights

The following affected performance during the reporting period:

» Inverse exposure to the S&P 500 Index, achieved through the PIMCO StocksPLUS^® Short Fund, contributed to performance as the Underlying PIMCO Fund posted a positive return.

» Exposure to emerging market equities, primarily through the PIMCO RAE PLUS EMG Fund, PIMCO RAE Low Volatility PLUS EMG Fund, and the PIMCO RAE Emerging Markets Fund detracted from performance, as the Underlying PIMCO Funds posted negative returns.

» Exposure to developed ex-U.S. equities, primarily through the PIMCO RAE PLUS International Fund, PIMCO RAE Low Volatility PLUS Intl Fund, and PIMCO StocksPLUS^® International Fund (USD-Hedged), detracted from performance, as the Underlying PIMCO Funds posted a negative return.

» Exposure to commodities and Real Estate Investment Trusts, primarily through the PIMCO CommoditiesPLUS^® Strategy Fund and PIMCO RealEstateRealReturn Strategy Fund, detracted from performance, as the Underlying PIMCO Funds lost value.

» Exposure to emerging market bonds and currencies, primarily through the PIMCO Emerging Local Currency and Bond Fund and the PIMCO Emerging Markets Currency and Short-Term Investments Fund, detracted from performance, as the Underlying PIMCO Funds posted negative returns.

ANNUAL REPORT DECEMBER 31, 2018 7

Expense Example PIMCO All Asset All Authority Portfolio

Example

As a shareholder of the Portfolio, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees (if applicable), and other Portfolio expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in the Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds.

The Expense Example does not reflect any fees or other expenses imposed by the Variable Contracts. If it did, the expenses reflected in the Expense Example would be higher. The Example is based on an investment of $1,000 invested at the beginning of the period and held from July 1, 2018 to December 31, 2018 unless noted otherwise in the table and footnotes below.

Actual Expenses

The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60), then multiply the result by the number in the appropriate row for your share class, in the column titled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other portfolios. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other portfolios.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information under the heading “Hypothetical (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different portfolios. In addition, if these transactional costs were included, your costs would have been higher.

Expense ratios may vary period to period because of various factors, such as an increase in expenses that are not covered by the management fees such as fees and expenses of the independent trustees and their counsel, extraordinary expenses and interest expense.

	Actual						Hypothetical (5% return before expenses)
	Beginning Account Value (07/01/18)		Ending Account Value (12/31/18)		Expenses Paid During Period*		Beginning Account Value (07/01/18)		Ending Account Value (12/31/18)		Expenses Paid During Period*		Net Annualized Expense Ratio**
Institutional Class	$	1,000.00	$	967.00	$	8.87	$	1,000.00	$	1,016.18	$	9.10		1.79	%
Administrative Class		1,000.00		966.10		10.06		1,000.00		1,014.97		10.31		2.03
Advisor Class		1,000.00		965.50		10.65		1,000.00		1,014.37		10.92		2.15

* Expenses Paid During Period are equal to the net annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Overall fees and expenses of investing in the Portfolio will be higher because the example does not reflect variable contract fees and expenses.

** Net Annualized Expense Ratio is reflective of any applicable contractual fee waivers and/or expense reimbursements or voluntary fee waivers. Details regarding fee waivers, if any, can be found in Note 8, Fees and Expenses, in the Notes to Financial Statements.

8 PIMCO VARIABLE INSURANCE TRUST

(THIS PAGE INTENTIONALLY LEFT BLANK)

ANNUAL REPORT DECEMBER 31, 2018 9

Financial Highlights PIMCO All Asset All Authority Portfolio

			Investment Operations								Less Distributions(b)
Selected Per Share Data for the Year or Period Ended^:	Net Asset Value Beginning of Year or Period		Net Investment Income (Loss)(a)		Net Realized/ Unrealized Gain (Loss)			Total			From Net Investment Income			From Net Realized Capital Gain			Total
Institutional Class
12/31/2018	$	8.89	$	0.40	$	(0.96	)	$	(0.56	)	$	(0.30	)	$	0.00		$	(0.30	)
12/31/2017		8.42		0.38		0.55			0.93			(0.46	)		0.00			(0.46	)
12/31/2016		7.65		0.19		0.85			1.04			(0.27	)		0.00			(0.27	)
12/31/2015		9.02		0.38		(1.47	)		(1.09	)		(0.26	)		(0.02	)		(0.28	)
04/30/2014 - 12/31/2014		10.00		0.64		(1.19	)		(0.55	)		(0.42	)		(0.01	)		(0.43	)
Administrative Class
12/31/2018		8.91		0.39		(0.97	)		(0.58	)		(0.29	)		0.00			(0.29	)
12/31/2017		8.44		0.47		0.45			0.92			(0.45	)		0.00			(0.45	)
12/31/2016		7.65		0.14		0.90			1.04			(0.25	)		0.00			(0.25	)
12/31/2015		9.02		0.31		(1.41	)		(1.10	)		(0.25	)		(0.02	)		(0.27	)
04/30/2014 - 12/31/2014		10.00		0.44		(1.00	)		(0.56	)		(0.41	)		(0.01	)		(0.42	)
Advisor Class
12/31/2018		8.88		0.39		(0.98	)		(0.59	)		(0.28	)		0.00			(0.28	)
12/31/2017		8.41		0.42		0.49			0.91			(0.44	)		0.00			(0.44	)
12/31/2016		7.64		0.18		0.84			1.02			(0.25	)		0.00			(0.25	)
12/31/2015		9.01		0.35		(1.46	)		(1.11	)		(0.24	)		(0.02	)		(0.26	)
04/30/2014 - 12/31/2014		10.00		0.56		(1.13	)		(0.57	)		(0.41	)		(0.01	)		(0.42	)

^ A zero balance may reflect actual amounts rounding to less than $0.01 or 0.01%.

* Annualized

^(a)  Per share amounts based on average number of shares outstanding during the year or period.

^(b)  The tax characterization of distributions is determined in accordance with Federal income tax regulations. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

^(c)  Ratios shown do not include expenses of the investment companies in which a Portfolio may invest. See Note 8, Fees and Expenses, in the Notes to Financial Statements for more information regarding the expenses and any applicable fee waivers associated with these investments.

^(d)  Ratio of expenses to average net assets includes line of credit expenses.

10 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

					Ratios/Supplemental Data
							Ratios to Average Net Assets(c)
Net Asset Value End of Year or Period		Total Return			Net Assets End of Year or Period (000s)		Expenses			Expenses Excluding Waivers			Expenses Excluding Interest Expense			Expenses Excluding Interest Expense and Waivers			Net Investment Income (Loss)			Portfolio Turnover Rate
$	8.03		(6.34	)%	$	618		1.86	%(d)		2.02	%(d)		0.54	%		0.70	%		4.49	%		58	%
	8.89		11.23			653		1.35	(d)		1.39	(d)		0.53			0.57			4.37			47
	8.42		13.78			892		0.91	(d)		0.99	(d)		0.37			0.45			2.29			151
	7.65		(12.17	)		884		1.30	(d)		1.39	(d)		0.36			0.45			4.45			67
	9.02		(5.57	)		583		0.81	*(d)		1.15	*(d)		0.37	*		0.71	*		9.79	*		117
	8.04		(6.58	)		3,422		2.01	(d)		2.17	(d)		0.69			0.85			4.27			58
	8.91		11.05			4,769		1.50	(d)		1.54	(d)		0.68			0.72			5.34			47
	8.44		13.73			1,966		1.06	(d)		1.14	(d)		0.52			0.60			1.79			151
	7.65		(12.35	)		4,594		1.45	(d)		1.54	(d)		0.51			0.60			3.57			67
	9.02		(5.70	)		7,338		0.96	*(d)		1.30	*(d)		0.52	*		0.86	*		6.61	*		117
	8.01		(6.70	)		6,783		2.11	(d)		2.27	(d)		0.79			0.95			4.40			58
	8.88		10.98			7,897		1.60	(d)		1.64	(d)		0.78			0.82			4.80			47
	8.41		13.55			6,959		1.16	(d)		1.24	(d)		0.62			0.70			2.22			151
	7.64		(12.40	)		4,099		1.55	(d)		1.64	(d)		0.61			0.70			4.11			67
	9.01		(5.76	)		3,588		1.06	*(d)		1.40	*(d)		0.62	*		0.96	*		8.48	*		117

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 11

Statement of Assets and Liabilities PIMCO All Asset All Authority Portfolio

(Amounts in thousands†, except per share amounts)	December 31, 2018
Assets:
Investments, at value
Investments in Affiliates	$	15,202
Cash		75
Receivable for investments in Affiliates sold		1
Dividends receivable from Affiliates		24
Reimbursement receivable from PIMCO		1
Prepaid expenses		6
Total Assets		15,309
Liabilities:
Borrowings & Other Financing Transactions
Payable for line of credit	$	4,450
Payable for investments in Affiliates purchased		21
Payable for Portfolio shares redeemed		7
Accrued investment advisory fees		2
Accrued supervisory and administrative fees		2
Accrued distribution fees		2
Other liabilities		2
Total Liabilities		4,486
Net Assets	$	10,823
Net Assets Consist of:
Paid in capital	$	13,435
Distributable earnings (accumulated loss)		(2,612	)
Net Assets	$	10,823
Net Assets:
Institutional Class	$	618
Administrative Class		3,422
Advisor Class		6,783
Shares Issued and Outstanding:
Institutional Class		77
Administrative Class		425
Advisor Class		847
Net Asset Value Per Share Outstanding:
Institutional Class	$	8.03
Administrative Class		8.04
Advisor Class		8.01
Cost of investments in Affiliates	$	16,021

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

12 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

Statement of Operations PIMCO All Asset All Authority Portfolio

(Amounts in thousands†)	Year Ended December 31, 2018
Investment Income:
Dividends from Investments in Affiliates	$	774
Total Income		774
Expenses:
Investment advisory fees		24
Supervisory and administrative fees		30
Servicing fees - Administrative Class		6
Distribution and/or servicing fees - Advisor Class		18
Trustee fees		1
Interest expense		158
Line of credit - other legal expense		29
Miscellaneous expense		1
Total Expenses		267
Waiver and/or Reimbursement by PIMCO		(19	)
Net Expenses		248
Net Investment Income (Loss)		526
Net Realized Gain (Loss):
Investments in Affiliates		(317	)
Net capital gain distributions received from Affiliate investments		180
Net Realized Gain (Loss)		(137	)
Net Change in Unrealized Appreciation (Depreciation):
Investments in Affiliates		(1,222	)
Net Change in Unrealized Appreciation (Depreciation)		(1,222	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	(833	)

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 13

Statements of Changes in Net Assets PIMCO All Asset All Authority Portfolio

(Amounts in thousands†)	Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets from:
Operations:
Net investment income (loss)	$	526		$	588
Net realized gain (loss)		(137	)		48
Net change in unrealized appreciation (depreciation)		(1,222	)		580
Net Increase (Decrease) in Net Assets Resulting from Operations		(833	)		1,216
Distributions to Shareholders:
From net investment income and/or net realized capital gains*
Institutional Class		(24	)		(34	)
Administrative Class		(134	)		(220	)
Advisor Class		(232	)		(368	)
Total Distributions(a)		(390	)		(622	)
Portfolio Share Transactions:
Net increase (decrease) resulting from Portfolio share transactions**		(1,273	)		2,908
Total Increase (Decrease) in Net Assets		(2,496	)		3,502
Net Assets:
Beginning of year		13,319			9,817
End of year	$	10,823		$	13,319

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

* See Note 2, New Accounting Pronouncements, in the Notes to Financial Statements for more information.

** See Note 12, Shares of Beneficial Interest, in the Notes to Financial Statements.

^(a)  The tax characterization of distributions is determined in accordance with Federal income tax regulations. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

14 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

Statement of Cash Flows PIMCO All Asset All Authority Portfolio

(Amounts in thousands†)	Year Ended December 31, 2018
Cash Flows Provided by (Used for) Operating Activities:
Net increase (decrease) in net assets resulting from operations	$	(833	)
Adjustments to Reconcile Net Increase (Decrease) in Net Assets from Operations to Net Cash Provided by (Used for) Operating Activities:
Purchases of long-term securities		(9,847	)
Proceeds from sales of long-term securities		11,783
(Purchases) Proceeds from sales of short-term portfolio investments, net		(34	)
(Increase) decrease in receivable for investments sold		5
(Increase) decrease in Prepaid Expenses		(1	)
Increase (decrease) in payable for investments purchased		(9	)
Increase (decrease) in accrued supervisory and administrative fees		(1	)
Increase (decrease) in other liabilities		(8	)
Net Realized (Gain) Loss
Investments in Affiliates		317
Net capital gain distributions received from Affiliate investments		(180	)
Net Change in Unrealized (Appreciation) Depreciation
Investments in Affiliates		1,222
Net Cash Provided by (Used for) Operating Activities		2,414
Cash Flows Received from (Used for) Financing Activities:
Proceeds from shares sold		3,006
Payments on shares redeemed		(4,661	)
Net borrowing of line of credit		(700	)
Cash distributions paid*		(1	)
Net Cash Received from (Used for) Financing Activities		(2,356	)
Net Increase (Decrease) in Cash and Foreign Currency		58
Cash and Foreign Currency:
Beginning of year		17
End of year	$	75
* Reinvestment of distributions	$	389
Supplemental Disclosure of Cash Flow Information:
Interest expense paid during the year	$	158

^† A zero balance may reflect actual amounts rounding to less than one thousand.

A Statement of Cash Flows is presented when the Portfolio has a significant amount of borrowing during the year, based on the average total borrowing outstanding in relation to total assets or when substantially all of the Portfolio’s investments are not classified as Level 1 or 2 in the fair value hierarchy.

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 15

Schedule of Investments PIMCO All Asset All Authority Portfolio

December 31, 2018

(Amounts in thousands*, except number of shares, contracts and units, if any)

	SHARES			MARKET VALUE (000S)
INVESTMENTS IN AFFILIATES 140.5%
MUTUAL FUNDS (a) 137.0%
PIMCO CommoditiesPLUS® Strategy Fund		91,939	$		434
PIMCO CommodityRealReturn Strategy Fund®		18,009			100
PIMCO Dynamic Bond Fund		16,490			176
PIMCO Emerging Local Bond Fund		95,102			624
PIMCO Emerging Markets Currency and Short-Term Investments Fund		167,193			1,336
PIMCO Extended Duration Fund		53,102			393
PIMCO High Yield Fund		11,423			95
PIMCO High Yield Spectrum Fund		21,971			202
PIMCO Income Fund		72,464			856
PIMCO Investment Grade Credit Bond Fund		18,612			184
PIMCO Long Duration Total Return Fund		12,372			124
PIMCO Long-Term U.S. Government Fund		41,473			246
PIMCO Low Duration Fund		86,465			839
PIMCO Mortgage Opportunities and Bond Fund		7,186			77
PIMCO RAE Emerging Markets Fund		96,188			875

	SHARES			MARKET VALUE (000S)
PIMCO RAE Fundamental Advantage PLUS Fund		63,497	$		629
PIMCO RAE International Fund		6,236			55
PIMCO RAE Low Volatility PLUS EMG Fund		50,140			412
PIMCO RAE Low Volatility PLUS Fund		18,678			147
PIMCO RAE Low Volatility PLUS International Fund		33,833			244
PIMCO RAE PLUS EMG Fund		139,674			1,303
PIMCO RAE PLUS International Fund		49,126			323
PIMCO RAE US Small Fund		9,961			95
PIMCO RAE Worldwide Long/Short PLUS Fund		71,329			699
PIMCO Real Return Fund		8,923			94
PIMCO RealEstateRealReturn Strategy Fund		78,073			609
PIMCO StocksPLUS® International Fund (U.S. Dollar-Hedged)		53,118			376
PIMCO StocksPLUS® International Fund (Unhedged)		18,604			94
PIMCO StocksPLUS® Short Fund		302,405			2,646
PIMCO Total Return Fund		53,854			535
Total Mutual Funds (Cost $15,585)					14,822

	SHARES			MARKET VALUE (000S)
EXCHANGE-TRADED FUNDS 2.5%
PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF		9,037	$		200
PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF		2,798			70
Total Exchange-Traded Funds (Cost $326)					270
SHORT-TERM INSTRUMENTS 1.0%
MUTUAL FUNDS 1.0%
PIMCO Government Money Market Fund (a)		110,035			110
Total Short-Term Instruments (Cost $110)					110
Total Investments in Affiliates (Cost $16,021)					15,202
Total Investments 140.5% (Cost $16,021)			$		15,202
Other Assets and Liabilities, net (40.5)%					(4,379	)
Net Assets 100.0%			$		10,823

NOTES TO SCHEDULE OF INVESTMENTS:

* A zero balance may reflect actual amounts rounding to less than one thousand.

(a) Institutional Class Shares of each Fund.

FAIR VALUE MEASUREMENTS

The following is a summary of the fair valuations according to the inputs used as of December 31, 2018 in valuing the Portfolio’s assets and liabilities:

Category and Subcategory	Level 1		Level 2		Level 3		Fair Value at 12/31/2018
Investments in Affiliates, at Value
Mutual Funds	$	14,822	$	0	$	0	$	14,822
Exchange-Traded Funds		270		0		0		270
Short-Term Instruments
Mutual Funds		110		0		0		110
Total Investments	$	15,202	$	0	$	0	$	15,202

There were no significant transfers into or out of Level 3 during the period ended December 31, 2018.

16 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

Notes to Financial Statements

December 31, 2018

1. ORGANIZATION

PIMCO Variable Insurance Trust (the “Trust”) is a Delaware statutory trust established under a trust instrument dated October 3, 1997. The Trust is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Trust is designed to be used as an investment vehicle by separate accounts of insurance companies that fund variable annuity contracts and variable life insurance policies and by qualified pension and retirement plans. Information presented in these financial statements pertains to the Institutional Class, Administrative Class and Advisor Class shares of the PIMCO All Asset All Authority Portfolio (the “Portfolio”) offered by the Trust. Pacific Investment Management Company LLC (“PIMCO”) serves as the investment adviser (the “Adviser”) for the Portfolio. Research Affiliates, LLC (“Research Affiliates”) serves as the asset allocation sub-adviser to the Portfolio.

The Portfolio may invest substantially all or a significant portion of its assets in the least expensive class of shares of any actively managed or smart beta funds (including mutual funds or exchange-traded funds) of PIMCO Funds, PIMCO ETF Trust or PIMCO Equity Series, each an affiliated open-end investment company, except other funds of funds (collectively, “Underlying PIMCO Funds”).

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Portfolio is treated as an investment company under the reporting requirements of U.S. GAAP. The functional and reporting currency for the Portfolio is the U.S. dollar. The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

(a) Securities Transactions and Investment Income  Securities transactions are recorded as of the trade date for financial reporting purposes. Securities purchased or sold on a when-issued or delayed-delivery basis may be settled beyond a standard settlement period for the security after the trade date. Realized gains (losses) from securities sold are recorded on the identified cost basis. Dividend income is recorded on the ex-dividend date, except certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Portfolio is informed of the ex-dividend date. Interest income, adjusted for the accretion of discounts and

amortization of premiums, is recorded on the accrual basis from settlement date, with the exception of securities with a forward starting effective date, where interest income is recorded on the accrual basis from effective date. For convertible securities, premiums attributable to the conversion feature are not amortized. Estimated tax liabilities on certain foreign securities are recorded on an accrual basis and are reflected as components of interest income or net change in unrealized appreciation (depreciation) on investments on the Statement of Operations, as appropriate. Tax liabilities realized as a result of such security sales are reflected as a component of net realized gain (loss) on investments on the Statement of Operations. Paydown gains (losses) on mortgage-related and other asset-backed securities, if any, are recorded as components of interest income on the Statement of Operations. Income or short-term capital gain distributions received from registered investment companies, if any, are recorded as dividend income. Long-term capital gain distributions received from registered investment companies, if any, are recorded as realized gains.

(b) Multi-Class Operations  Each class offered by the Trust has equal rights as to assets and voting privileges (except that shareholders of a class have exclusive voting rights regarding any matter relating solely to that class of shares). Income and non-class specific expenses are allocated daily to each class on the basis of the relative net assets. Realized and unrealized capital gains (losses) are allocated daily based on the relative net assets of each class of the Portfolio. Class specific expenses, where applicable, currently include supervisory and administrative and distribution and servicing fees. Under certain circumstances, the per share net asset value (“NAV”) of a class of the Portfolio’s shares may be different from the per share NAV of another class of shares as a result of the different daily expense accruals applicable to each class of shares.

(c) Distributions to Shareholders  Distributions from net investment income, if any, are declared and distributed to shareholders quarterly. Net realized capital gains earned by the Portfolio, if any, will be distributed no less frequently than once each year.

Income distributions and capital gain distributions are determined in accordance with income tax regulations which may differ from U.S. GAAP. Differences between tax regulations and U.S. GAAP may cause timing differences between income and capital gain recognition. Further, the character of investment income and capital gains may be different for certain transactions under the two methods of accounting. As a result, income distributions and capital gain distributions declared during a fiscal period may differ significantly from the net investment income (loss) and realized gains (losses) reported on the Portfolio’s annual financial statements presented under U.S. GAAP.

ANNUAL REPORT DECEMBER 31, 2018 17

Notes to Financial Statements (Cont.)

If the Portfolio estimates that a portion of its distribution may be comprised of amounts from sources other than net investment income in accordance with its policies and good accounting practices, the Portfolio will notify shareholders of the estimated composition of such distribution through a Section 19 Notice. For these purposes, the Portfolio estimates the source or sources from which a distribution is paid, to the close of the period as of which it is paid, in reference to its internal accounting records and related accounting practices. If, based on such accounting records and practices, it is estimated that a particular distribution does not include capital gains or paid-in surplus or other capital sources, a Section 19 Notice generally would not be issued. It is important to note that differences exist between the Portfolio’s daily internal accounting records and practices, the Portfolio’s financial statements presented in accordance with U.S. GAAP, and recordkeeping practices under income tax regulations. For instance, the Portfolio’s internal accounting records and practices may take into account, among other factors, tax-related characteristics of certain sources of distributions that differ from treatment under U.S. GAAP. Examples of such differences may include, among others, the treatment of paydowns on mortgage-backed securities purchased at a discount and periodic payments under interest rate swap contracts. Accordingly, among other consequences, it is possible that the Portfolio may not issue a Section 19 Notice in situations where the Portfolio’s financial statements prepared later and in accordance with U.S. GAAP and/or the final tax character of those distributions might later report that the sources of those distributions included capital gains and/or a return of capital. Final determination of a distribution’s tax character will be provided to shareholders when such information is available.

Distributions classified as a tax basis return of capital, if any, are reflected on the Statements of Changes in Net Assets and have been recorded to paid in capital on the Statement of Assets and Liabilities. In addition, other amounts have been reclassified between distributable earnings (accumulated loss) and paid in capital on the Statement of Assets and Liabilities to more appropriately conform U.S. GAAP to tax characterizations of distributions.

(d) New Accounting Pronouncements  In August 2016, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”), ASU 2016-15, which amends Accounting Standards Codification (“ASC”) 230 to clarify guidance on the classification of certain cash receipts and cash payments in the Statement of Cash Flows. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In November 2016, the FASB issued ASU 2016-18 which amends ASC 230 to provide guidance on the classification and presentation of

changes in restricted cash and restricted cash equivalents on the Statement of Cash Flows. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In March 2017, the FASB issued ASU 2017-08 which provides guidance related to the amortization period for certain purchased callable debt securities held at a premium. The ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In August 2018, the FASB issued ASU 2018-13 which modifies certain disclosure requirements for fair value measurements in ASC 820. The ASU is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. At this time, management has elected to early adopt the amendments that allow for removal of certain disclosure requirements. Management plans to adopt the amendments that require additional fair value measurement disclosures for annual periods beginning after December 15, 2019, and interim periods within those annual periods. Management is currently evaluating the impact of these changes on the financial statements.

In August 2018, the U.S. Securities and Exchange Commission (“SEC”) adopted amendments to certain rules and forms for the purpose of disclosure update and simplification. The compliance date for these amendments is 30 days after date of publication in the Federal Register, which was on October 4, 2018. Management has adopted these amendments and the changes are incorporated throughout all periods presented in the financial statements.

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

(a) Investment Valuation Policies  The price of the Portfolio’s shares is based on the Portfolio’s NAV. The NAV of the Portfolio, or each of its share classes, as applicable, is determined by dividing the total value of portfolio investments and other assets, less any liabilities attributable to the Portfolio or class, by the total number of shares outstanding of the Portfolio or class.

On each day that the New York Stock Exchange (“NYSE”) is open, Portfolio and Underlying PIMCO Fund shares are ordinarily valued as of the close of regular trading (“NYSE Close”). Information that becomes known to the Portfolio or an Underlying PIMCO Fund or its agents after the time as of which NAV has been calculated on a particular day will not generally be used to retroactively adjust the price of a security or

18 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

the NAV determined earlier that day. The Portfolio reserves the right to change the time as of which its NAV is calculated if the Portfolio closes earlier, or as permitted by the SEC.

The assets of the Portfolio consist of shares of the Underlying PIMCO Funds, which are valued at their respective NAVs at the time of valuation of the Portfolio’s shares. For purposes of calculating the NAV of the Underlying PIMCO Funds, portfolio securities and other assets for which market quotes are readily available are valued at market value. Market value is generally determined on the basis of official closing prices or the last reported sales prices, or if no sales are reported, based on quotes obtained from established market makers or prices (including evaluated prices) supplied by the Portfolio’s approved pricing services, quotation reporting systems and other third-party sources (together, “Pricing Services”). The Portfolio will normally use pricing data for domestic equity securities received shortly after the NYSE Close and does not normally take into account trading, clearances or settlements that take place after the NYSE Close. If market value pricing is used, a foreign (non-U.S.) equity security traded on a foreign exchange or on more than one exchange is typically valued using pricing information from the exchange considered by the Adviser to be the primary exchange. A foreign (non-U.S.) equity security will be valued as of the close of trading on the foreign exchange, or the NYSE Close, if the NYSE Close occurs before the end of trading on the foreign exchange. Domestic and foreign (non-U.S.) fixed income securities, non-exchange traded derivatives, and equity options are normally valued on the basis of quotes obtained from brokers and dealers or Pricing Services using data reflecting the earlier closing of the principal markets for those securities. Prices obtained from Pricing Services may be based on, among other things, information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics. Certain fixed income securities purchased on a delayed-delivery basis are marked to market daily until settlement at the forward settlement date. Exchange-traded options, except equity options, futures and options on futures are valued at the settlement price determined by the relevant exchange. Swap agreements are valued on the basis of bid quotes obtained from brokers and dealers or market-based prices supplied by Pricing Services. The Portfolio’s investments in open-end management investment companies, other than exchange-traded funds (“ETFs”), are valued at the NAVs of such investments. Open-end management investment companies may include affiliated funds.

If a foreign (non-U.S.) equity security’s value has materially changed after the close of the security’s primary exchange or principal market but before the NYSE Close, the security may be valued at fair value based on procedures established and approved by the Board of Trustees of the Trust (the “Board”). Foreign (non-U.S.) equity securities

that do not trade when the NYSE is open are also valued at fair value. With respect to foreign (non-U.S.) equity securities, the Portfolio may determine the fair value of investments based on information provided by Pricing Services and other third-party vendors, which may recommend fair value or adjustments with reference to other securities, indices or assets. In considering whether fair valuation is required and in determining fair values, the Portfolio may, among other things, consider significant events (which may be considered to include changes in the value of U.S. securities or securities indices) that occur after the close of the relevant market and before the NYSE Close. The Portfolio may utilize modeling tools provided by third-party vendors to determine fair values of foreign (non-U.S.) securities. For these purposes, any movement in the applicable reference index or instrument (“zero trigger”) between the earlier close of the applicable foreign market and the NYSE Close may be deemed to be a significant event, prompting the application of the pricing model (effectively resulting in daily fair valuations). Foreign exchanges may permit trading in foreign (non-U.S.) equity securities on days when the Trust is not open for business, which may result in the Portfolio’s portfolio investments being affected when shareholders are unable to buy or sell shares.

Senior secured floating rate loans for which an active secondary market exists to a reliable degree will be valued at the mean of the last available bid/ask prices in the market for such loans, as provided by a Pricing Service. Senior secured floating rate loans for which an active secondary market does not exist to a reliable degree will be valued at fair value, which is intended to approximate market value. In valuing a senior secured floating rate loan at fair value, the factors considered may include, but are not limited to, the following: (a) the creditworthiness of the borrower and any intermediate participants, (b) the terms of the loan, (c) recent prices in the market for similar loans, if any, and (d) recent prices in the market for instruments of similar quality, rate, period until next interest rate reset and maturity.

Investments valued in currencies other than the U.S. dollar are converted to the U.S. dollar using exchange rates obtained from Pricing Services. As a result, the value of such investments and, in turn, the NAV of an Underlying PIMCO Fund’s shares may be affected by changes in the value of currencies in relation to the U.S. dollar. The value of investments traded in markets outside the United States or denominated in currencies other than the U.S. dollar may be affected significantly on a day that the Trust is not open for business. As a result, to the extent that the Portfolio invests in Underlying PIMCO Funds that hold foreign (non-U.S.) investments, the value of those investments may change at times when shareholders are unable to buy or sell shares and the value of such investments will be reflected in the Portfolio’s next calculated NAV.

ANNUAL REPORT DECEMBER 31, 2018 19

Notes to Financial Statements (Cont.)

Investments for which market quotes or market based valuations are not readily available are valued at fair value as determined in good faith by the Board or persons acting at their direction. The Board has adopted methods for valuing securities and other assets in circumstances where market quotes are not readily available, and has delegated to the Adviser the responsibility for applying the fair valuation methods. In the event that market quotes or market based valuations are not readily available, and the security or asset cannot be valued pursuant to a Board approved valuation method, the value of the security or asset will be determined in good faith by the Board. Market quotes are considered not readily available in circumstances where there is an absence of current or reliable market-based data (e.g., trade information, bid/ask information, indicative market quotations (“Broker Quotes”), Pricing Services’ prices), including where events occur after the close of the relevant market, but prior to the NYSE Close, that materially affect the values of an Underlying PIMCO Fund’s securities or assets. In addition, market quotes are considered not readily available when, due to extraordinary circumstances, the exchanges or markets on which the securities trade do not open for trading for the entire day and no other market prices are available. The Board has delegated, to the Adviser, the responsibility for monitoring significant events that may materially affect the values of the Portfolio’s securities or assets and for determining whether the value of the applicable securities or assets should be reevaluated in light of such significant events.

When the Portfolio (or, in each instance in this paragraph, as applicable, an Underlying PIMCO Fund) uses fair valuation to determine the value of a portfolio security or other asset for purposes of calculating its NAV, such investments will not be priced on the basis of quotes from the primary market in which they are traded, but rather may be priced by another method that the Board or persons acting at their direction believe reflects fair value. Fair valuation may require subjective determinations about the value of a security. While the Trust’s policy is intended to result in a calculation of the Portfolio’s and Underlying PIMCO Funds’ NAVs that fairly reflects security values as of the time of pricing, the Trust cannot ensure that fair values determined by the Board or persons acting at their direction would accurately reflect the price that an Underlying PIMCO Fund could obtain for a security if it were to dispose of that security as of the time of pricing (for instance, in a forced or distressed sale). The prices used by an Underlying PIMCO Fund may differ from the value that would be realized if the securities were sold. An Underlying PIMCO Fund’s use of fair valuation may also help to deter “stale price arbitrage” as discussed under the “Frequent or Excessive Purchases, Exchanges and Redemptions” section in the Portfolio’s prospectus.

(b) Fair Value Hierarchy  U.S. GAAP describes fair value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into levels (Level 1, 2, or 3). The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Levels 1, 2, and 3 of the fair value hierarchy are defined as follows:

^∎  Level 1 — Quoted prices in active markets or exchanges for identical assets and liabilities.

^∎  Level 2 — Significant other observable inputs, which may include, but are not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market corroborated inputs.

^∎  Level 3 — Significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, which may include assumptions made by the Board or persons acting at their direction that are used in determining the fair value of investments.

In accordance with the requirements of U.S. GAAP, the amounts of transfers into and out of Level 3, if material, are disclosed in the Notes to Schedule of Investments for the Portfolio.

For fair valuations using significant unobservable inputs, U.S. GAAP requires a reconciliation of the beginning to ending balances for reported fair values that presents changes attributable to realized gain (loss), unrealized appreciation (depreciation), purchases and sales, accrued discounts (premiums), and transfers into and out of the Level 3 category during the period. The end of period value is used for the transfers between Levels of the Portfolio’s assets and liabilities. Additionally, U.S. GAAP requires quantitative information regarding the significant unobservable inputs used in the determination of fair value of assets or liabilities categorized as Level 3 in the fair value hierarchy. In accordance with the requirements of U.S. GAAP, a fair value hierarchy, and if material, a Level 3 reconciliation and details of significant unobservable inputs, have been included in the Notes to Schedule of Investments for the Portfolio.

(c) Valuation Techniques and the Fair Value Hierarchy

Level 1 and Level 2 trading assets and trading liabilities, at fair value  The valuation methods (or “techniques”) and significant inputs

20 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

used in determining the fair values of portfolio securities or other assets and liabilities categorized as Level 1 and Level 2 of the fair value hierarchy are as follows:

Investments in registered open-end investment companies (other than ETFs) will be valued based upon the NAVs of such investments and are categorized as Level 1 of the fair value hierarchy. Investments in unregistered open-end investment companies will be calculated based upon the NAVs of such investments and are considered Level 1 provided that the NAVs are observable, calculated daily and are the value at which both purchases and sales will be conducted.

Level 3 trading assets and trading liabilities, at fair value  When a fair valuation method is applied by the Adviser that uses significant

unobservable inputs, investments will be priced by a method that the Board or persons acting at their direction believe reflects fair value and are categorized as Level 3 of the fair value hierarchy.

Short-term debt instruments (such as commercial paper) having a remaining maturity of 60 days or less may be valued at amortized cost, so long as the amortized cost value of such short-term debt instruments is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. These securities are categorized as Level 2 or Level 3 of the fair value hierarchy depending on the source of the base price.

4. SECURITIES AND OTHER INVESTMENTS

(a) Investments in Affiliates

The Portfolio invests under normal circumstances substantially all or a significant portion of its assets in Underlying PIMCO Funds which are considered to be affiliated with the Portfolio. The Portfolio may invest in the PIMCO Short Asset Portfolio and the PIMCO Short-Term Floating NAV Portfolio III (“Central Funds”) to the extent permitted by the Act and rules thereunder. The Central Funds are registered investment companies created for use solely by the series of the Trust and other series of registered investment companies advised by the Adviser, in connection with their cash management activities. The main investments of the Central Funds are money market and short maturity fixed income instruments. The Central Funds may incur expenses related to their investment activities, but do not pay Investment Advisory Fees or Supervisory and Administrative Fees to the Adviser. The Central Funds are considered to be affiliated with the Portfolio. The table below shows the Portfolio’s transactions in and earnings from investments in the affiliated Funds for the period ended December 31, 2018 (amounts in thousands^†):

Underlying PIMCO Funds	Market Value 12/31/2017		Purchases at Cost		Proceeds from Sales			Net Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Market Value 12/31/2018		Dividend Income(1)		Realized Net Capital Gain Distributions(1)
PIMCO CommoditiesPLUS® Strategy Fund	$	852	$	240	$	(537	)	$	23		$	(144	)	$	434	$	88	$	0
PIMCO CommodityRealReturn Strategy Fund®		155		105		(138	)		(7	)		(15	)		100		6		0
PIMCO Dynamic Bond Fund		0		239		(61	)		0			(2	)		176		3		0
PIMCO Emerging Local Bond Fund		951		235		(474	)		(44	)		(44	)		624		33		0
PIMCO Emerging Markets Currency and Short-Term Investments Fund		1,723		381		(537	)		(23	)		(208	)		1,336		161		0
PIMCO Extended Duration Fund		342		201		(133	)		(2	)		(15	)		393		11		2
PIMCO Global Advantage® Strategy Bond Fund		0		127		(126	)		(1	)		0			0		0		0
PIMCO Government Money Market Fund		76		4,063		(4,029	)		0			0			110		1		0
PIMCO High Yield Fund		85		111		(96	)		2			(7	)		95		3		0
PIMCO High Yield Spectrum Fund		299		54		(136	)		4			(19	)		202		11		0
PIMCO Income Fund		1,018		591		(705	)		(10	)		(38	)		856		53		0
PIMCO Investment Grade Credit Bond Fund		289		63		(153	)		(3	)		(12	)		184		9		0
PIMCO Long Duration Total Return Fund		171		68		(102	)		(6	)		(7	)		124		6		1
PIMCO Long-Term Real Return Fund		63		52		(113	)		2			(4	)		0		1		0
PIMCO Long-Term U.S. Government Fund		486		200		(417	)		(3	)		(20	)		246		9		0
PIMCO Low Duration Fund		565		1,189		(906	)		(4	)		(5	)		839		14		0
PIMCO Mortgage Opportunities and Bond Fund		113		15		(49	)		0			(2	)		77		4		0
PIMCO RAE Emerging Markets Fund		902		347		(162	)		(15	)		(197	)		875		31		57
PIMCO RAE Fundamental Advantage PLUS Fund		278		528		(164	)		(2	)		(11	)		629		3		0
PIMCO RAE International Fund		109		37		(80	)		4			(15	)		55		2		1
PIMCO RAE Low Volatility PLUS EMG Fund		764		126		(400	)		87			(165	)		412		64		5
PIMCO RAE Low Volatility PLUS Fund		194		197		(195	)		0			(49	)		147		17		30
PIMCO RAE Low Volatility PLUS International Fund		456		117		(228	)		14			(115	)		244		31		48
PIMCO RAE PLUS EMG Fund		1,012		666		(150	)		(21	)		(204	)		1,303		49		0

ANNUAL REPORT DECEMBER 31, 2018 21

Notes to Financial Statements (Cont.)

Underlying PIMCO Funds	Market Value 12/31/2017		Purchases at Cost		Proceeds from Sales			Net Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Market Value 12/31/2018		Dividend Income(1)		Realized Net Capital Gain Distributions(1)
PIMCO RAE PLUS International Fund	$	677	$	263	$	(525	)	$	72		$	(164	)	$	323	$	58	$	0
PIMCO RAE US Small Fund		0		118		0			0			(23	)		95		2		4
PIMCO RAE Worldwide Long/Short PLUS Fund		373		444		(117	)		1			(2	)		699		3		0
PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF		33		216		0			0			(49	)		200		6		0
PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF		0		78		0			0			(8	)		70		1		0
PIMCO Real Return Fund		319		114		(330	)		(6	)		(3	)		94		5		0
PIMCO RealEstateRealReturn Strategy Fund		822		406		(589	)		(2	)		(28	)		609		5		0
PIMCO Senior Floating Rate Fund		676		45		(719	)		3			(5	)		0		15		0
PIMCO StocksPLUS® International Fund (U.S. Dollar-Hedged)		513		124		(193	)		12			(80	)		376		5		23
PIMCO StocksPLUS® International Fund (Unhedged)		262		22		(159	)		10			(41	)		94		7		9
PIMCO StocksPLUS® Short Fund		3,187		1,261		(1,909	)		(380	)		487			2,646		37		0
PIMCO Total Return Fund		623		839		(899	)		(17	)		(11	)		535		20		0
PIMCO TRENDS Managed Futures Strategy Fund		75		0		(73	)		(5	)		3			0		0		0
Totals	$	18,463	$	13,882	$	(15,604	)	$	(317	)	$	(1,222	)	$	15,202	$	774	$	180

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽¹⁾  The tax characterization of distributions is determined in accordance with Federal income tax regulations and may contain a return of capital. The actual tax characterization of distributions received is determined at the end of the fiscal year of the affiliated fund. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

(b) Investments in Securities

The Portfolio (and where applicable, certain Underlying PIMCO Funds) may utilize the investments and strategies described below to the extent permitted by the Portfolio’s investment policies.

Exchange-Traded Funds typically are index-based investment companies that hold substantially all of their assets in securities representing their specific index, but may also be actively-managed investment companies. Shares of ETFs trade throughout the day on an exchange and represent an investment in a portfolio of securities and other assets. As a shareholder of another investment company, the Portfolio (and Underlying PIMCO Funds) would bear their pro rata portion of the other investment company’s expenses, including advisory fees, in addition to the expenses the Portfolio (and Underlying PIMCO Funds) bear directly in connection with their own operations. Investments in ETFs entail certain risks; in particular, investments in index ETFs involve the risk that the ETF’s performance may not track the performance of the index the ETF is designed to track.

5. BORROWINGS AND OTHER FINANCING TRANSACTIONS

The Portfolio (and where applicable, certain Underlying PIMCO Funds) may enter into the borrowings and other financing transactions described below to the extent permitted by the Portfolio’s investment policies.

The following disclosures contain information on the Portfolio’s ability to lend or borrow cash or securities to the extent permitted under the Act, which may be viewed as borrowing or financing transactions by the Portfolio. The location of these instruments in the Portfolio’s financial statements is described below.

(a) Line of Credit  Consistent with its principal investment strategies, the Portfolio has entered into an amended and restated secured credit agreement with State Street Bank & Trust Company and other commercial banks for investment purposes subject to the limitations of the Act. State Street Bank & Trust Company serves as both a bank and as an agent for the other banks that are parties to the agreement. All or a portion of the Portfolio’s securities are pledged as collateral under the agreement.

As of December 31, 2018, the credit agreement comprises revolving tranches. The Portfolio pays financing charges based on a combination of LIBOR-based variable plus a credit spread. The Portfolio also pays a fee of 0.15% per annum on the unused commitment amounts of the revolving line of credit. The commitment amount under the revolving and term-loan tranches are:

Tranches	Commitment Amount (in thousands)		Termination Date
1 Year, Monthly Revolving		2,225		04/25/2019
1 Year, Monthly Revolving		2,225		11/25/2019

22 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

Borrowings outstanding, if any, as of December 31, 2018 are disclosed as payable for line of credit on the Statement of Assets and Liabilities. Commitment, upfront and interest fees, if any, paid by the Portfolio in relation to the borrowings are disclosed as part of interest expense on the Statement of Operations. Legal costs related to the annual renewal of the line of credit are disclosed on the Statement of Operations.

The Portfolio’s borrowing activity under the agreement for the period ended December 31, 2018, was as follows (amounts in thousands^†):

Average Outstanding Principal		Average Weighted Rate of Interest			Interest		Commitment and Upfront Fees		Outstanding Principal as of 12/31/2018
$	5,160		2.73	%	$	142	$	16	$	4,450

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

6. PRINCIPAL RISKS

The principal risks of investing in the Portfolio, which could adversely affect its net asset value, yield and total return, are listed below. The principal risks of investing in the Portfolio include risks from direct investments and/or for certain Portfolios that invest in Acquired Funds or Underlying PIMCO Funds, indirect exposure through investment in such Acquired Funds or Underlying PIMCO Funds. Please see “Description of Principal Risks” in the Portfolio’s prospectus for a more detailed description of the risks of investing in the Portfolio.

The following risks are principal risks of investing in a Portfolio.

New/Small Portfolio Risk is the risk that a new or smaller Portfolio’s performance may not represent how the Portfolio is expected to or may perform in the long term. In addition, new Portfolios have limited operating histories for investors to evaluate and new and smaller Portfolios may not attract sufficient assets to achieve investment and trading efficiencies.

Allocation Risk is the risk that a Portfolio could lose money as a result of less than optimal or poor asset allocation decisions. The Portfolio could miss attractive investment opportunities by underweighting markets that subsequently experience significant returns and could lose value by overweighting markets that subsequently experience significant declines.

Fund of Funds Risk is the risk that a Portfolio’s performance is closely related to the risks associated with the securities and other investments held by the Underlying PIMCO Funds and that the ability of a Portfolio to achieve its investment objective will depend upon the ability of the Underlying PIMCO Funds to achieve their investment objectives.

Leveraging Risk is the risk that certain transactions of the Portfolio, such as direct borrowing from banks, reverse repurchase agreements, loans of portfolio securities, and the use of when-issued, delayed delivery or forward commitment transactions, or derivative instruments, may give rise to leverage, magnifying gains and losses and causing the Portfolio to be more volatile than if it had not been leveraged. This means that leverage entails a heightened risk of loss.

The following risks are principal risks of investing in a Portfolio that include risks from direct investments and/or indirect exposure through investment in Underlying PIMCO Funds.

Market Trading Risk is the risk that an active secondary trading market for shares of an Underlying PIMCO Fund that is an exchange-traded fund does not continue once developed, that such Underlying PIMCO Fund may not continue to meet a listing exchange’s trading or listing requirements, or that such Underlying PIMCO Fund’s shares trade at prices other than the Fund’s net asset value.

Municipal Project-Specific Risk is the risk that an Underlying PIMCO Fund may be more sensitive to adverse economic, business or political developments if it invests a substantial portion of its assets in the bonds of specific projects (such as those relating to education, health care, housing, transportation, and utilities), industrial development bonds, or in bonds from issuers in a single state.

Municipal Bond Risk is the risk that an Underlying PIMCO Fund may be affected significantly by the economic, regulatory or political developments affecting the ability of issuers of debt securities whose interest is, in the opinion of bond counsel for the issuer at the time of issuance, exempt from federal income tax (“Municipal Bonds”) to pay interest or repay principal.

Interest Rate Risk is the risk that fixed income securities will decline in value because of an increase in interest rates; a portfolio with a longer average portfolio duration will be more sensitive to changes in interest rates than a portfolio with a shorter average portfolio duration.

Call Risk is the risk that an issuer may exercise its right to redeem a fixed income security earlier than expected (a call). Issuers may call outstanding securities prior to their maturity for a number of reasons (e.g., declining interest rates, changes in credit spreads and improvements in the issuer’s credit quality). If an issuer calls a security that the Portfolio has invested in, the Portfolio may not recoup the full amount of its initial investment and may be forced to reinvest in lower-yielding securities, securities with greater credit risks or securities with other, less favorable features.

ANNUAL REPORT DECEMBER 31, 2018 23

Notes to Financial Statements (Cont.)

Credit Risk  is the risk that the Portfolio could lose money if the issuer or guarantor of a fixed income security, or the counterparty to a derivative contract, is unable or unwilling to meet its financial obligations.

High Yield Risk  is the risk that high yield securities and unrated securities of similar credit quality (commonly known as “junk bonds”) are subject to greater levels of credit, call and liquidity risks. High yield securities are considered primarily speculative with respect to the issuer’s continuing ability to make principal and interest payments, and may be more volatile than higher-rated securities of similar maturity.

Distressed Company Risk  is the risk that securities of distressed companies may be subject to greater levels of credit, issuer and liquidity risk than a portfolio that does not invest in such securities. Securities of distressed companies include both debt and equity securities. Debt securities of distressed companies are considered predominantly speculative with respect to the issuers’ continuing ability to make principal and interest payments.

Market Risk  is the risk that the value of securities owned by the Portfolio may go up or down, sometimes rapidly or unpredictably, due to factors affecting securities markets generally or particular industries.

Issuer Risk  is the risk that the value of a security may decline for a reason directly related to the issuer, such as management performance, financial leverage and reduced demand for the issuer’s goods or services.

Liquidity Risk  is the risk that a particular investment may be difficult to purchase or sell and that the Portfolio may be unable to sell illiquid securities at an advantageous time or price or achieve its desired level of exposure to a certain sector. Liquidity risk may result from the lack of an active market, reduced number and capacity of traditional market participants to make a market in fixed income securities, and may be magnified in a rising interest rate environment or other circumstances where investor redemptions from fixed income mutual funds may be higher than normal, causing increased supply in the market due to selling activity.

Derivatives Risk  is the risk of investing in derivative instruments (such as futures, swaps and structured securities), including leverage, liquidity, interest rate, market, credit and management risks, mispricing or valuation complexity. Changes in the value of the derivative may not correlate perfectly with, and may be more sensitive to market events than, the underlying asset, rate or index, and the Portfolio could lose more than the initial amount invested. An Underlying PIMCO Fund’s use of derivatives may result in losses to the Portfolio, a reduction in the Portfolio’s returns and/or increased volatility. Over-the-counter (“OTC”) derivatives are also subject to the risk that a counterparty to

the transaction will not fulfill its contractual obligations to the other party, as many of the protections afforded to centrally-cleared derivative transactions might not be available for OTC derivatives. For derivatives traded on an exchange or through a central counterparty, credit risk resides with the Underlying PIMCO Fund’s clearing broker, or the clearinghouse itself, rather than with a counterparty in an OTC derivative transaction. Changes in regulation relating to a mutual fund’s use of derivatives and related instruments could potentially limit or impact the Underlying PIMCO Fund’s ability to invest in derivatives, limit the Underlying PIMCO Fund’s ability to employ certain strategies that use derivatives and/ or adversely affect the value of derivatives and the Underlying PIMCO Fund’s performance.

Futures Contract Risk  is the risk that, while the value of a futures contract tends to correlate with the value of the underlying asset that it represents, differences between the futures market and the market for the underlying asset may result in an imperfect correlation. Futures contracts may involve risks different from, and possibly greater than, the risks associated with investing directly in the underlying assets. The purchase or sale of a futures contract may result in losses in excess of the amount invested in the futures contract.

Model Risk  is the risk that an Underlying PIMCO Fund’s investment models used in making investment allocation decisions, and the indexation methodologies used in constructing an underlying index for an Underlying PIMCO Fund that seeks to track the investment results of such underlying index, may not adequately take into account certain factors and may result in a decline in the value of an investment in the Underlying PIMCO Fund.

Commodity Risk  is the risk that investing in commodity-linked derivative instruments may subject the Portfolio to greater volatility than investments in traditional securities. The value of commodity-linked derivative instruments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments.

Equity Risk  is the risk that the value of equity securities, such as common stocks and preferred securities, may decline due to general market conditions which are not specifically related to a particular company or to factors affecting a particular industry or industries. Equity securities generally have greater price volatility than fixed income securities.

Mortgage-Related and Other Asset-Backed Securities Risk  is the risk of investing in mortgage-related and other asset-backed securities, including interest rate risk, extension risk, prepayment risk and credit risk.

24 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

Foreign (Non-U.S.) Investment Risk  is the risk that investing in foreign (non-U.S.) securities may result in the Portfolio experiencing more rapid and extreme changes in value than a portfolio that invests exclusively in securities of U.S. companies, due to smaller markets, differing reporting, accounting and auditing standards, increased risk of delayed settlement of portfolio transactions or loss of certificates of portfolio securities, and the risk of unfavorable foreign government actions, including nationalization, expropriation or confiscatory taxation, currency blockage, or political changes or diplomatic developments. Foreign securities may also be less liquid and more difficult to value than securities of U.S. issuers.

Real Estate Risk  is the risk that a Portfolio’s investments in Real Estate Investment Trusts (“REITs”) or real estate-linked derivative instruments will subject the Portfolio to risks similar to those associated with direct ownership of real estate, including losses from casualty or condemnation, and changes in local and general economic conditions, supply and demand, interest rates, zoning laws, regulatory limitations on rents, property taxes and operating expenses. A Portfolio’s investments in REITs or real estate-linked derivative instruments subject it to management and tax risks. In addition, privately traded REITs subject a Portfolio to liquidity and valuation risk.

Emerging Markets Risk  is the risk of investing in emerging market securities, primarily increased foreign (non-U.S.) investment risk.

Sovereign Debt Risk  is the risk that investments in fixed income instruments issued by sovereign entities may decline in value as a result of default or other adverse credit event resulting from an issuer’s inability or unwillingness to make principal or interest payments in a timely fashion.

Currency Risk  is the risk that foreign (non-U.S.) currencies will change in value relative to the U.S. dollar and affect the Portfolio’s investments in foreign (non-U.S.) currencies or in securities that trade in, and receive revenues in, or in derivatives that provide exposure to, foreign (non-U.S.) currencies.

Issuer Non-Diversification Risk  is the risk of focusing investments in a small number of issuers, including being more susceptible to risks associated with a single economic, political or regulatory occurrence than a more diversified portfolio might be. Portfolios that are “non-diversified” may invest a greater percentage of their assets in the securities of a single issuer (such as bonds issued by a particular state) than portfolios that are “diversified”.

Leveraging Risk  is the risk that certain transactions of the Portfolio, such as reverse repurchase agreements, loans of portfolio securities, and the use of when-issued, delayed delivery or forward commitment transactions, or derivative instruments, may give rise to leverage,

magnifying gains and losses and causing the Portfolio to be more volatile than if it had not been leveraged. This means that leverage entails a heightened risk of loss.

Smaller Company Risk  is the risk that the value of securities issued by a smaller company may go up or down, sometimes rapidly and unpredictably as compared to more widely held securities, due to narrow markets and limited resources of smaller companies. A Portfolio’s investments in smaller companies subject it to greater levels of credit, market and issuer risk.

Management Risk  is the risk that the investment techniques and risk analyses applied by PIMCO will not produce the desired results and that legislative, regulatory, or tax restrictions, policies or developments may affect the investment techniques available to PIMCO and the individual portfolio manager in connection with managing the Portfolio. There is no guarantee that the investment objective of the Portfolio will be achieved.

Short Exposure Risk  is the risk of entering into short sales, including the potential loss of more money than the actual cost of the investment, and the risk that the third party to the short sale will not fulfill its contractual obligations, causing a loss to the Portfolio. Also, to the extent the Portfolio seeks to gain negative exposure to an asset class such as equities, such exposure may create the potential for losses should those asset classes deliver positive returns.

Tax Risk  is the risk that the tax treatment of swap agreements and other derivative instruments, such as commodity-linked derivative instruments, including commodity index-linked notes, swap agreements, commodity options, futures, and options on futures, may be affected by future regulatory or legislative changes that could affect whether income from such investments is “qualifying income” under Subchapter M of the Internal Revenue Code, or otherwise affect the character, timing and/or amount of the Portfolio’s taxable income or gains and distributions.

Subsidiary Risk  is the risk that, by investing in certain Underlying PIMCO Funds that invest in a subsidiary (each a “Subsidiary”), the Portfolio is indirectly exposed to the risks associated with a Subsidiary’s investments. The Subsidiaries are not registered under the 1940 Act and may not be subject to all the investor protections of the 1940 Act. There is no guarantee that the investment objective of a Subsidiary will be achieved.

Value Investing Risk  is the risk that a value stock may decrease in price or may not increase in price as anticipated by PIMCO if it continues to be undervalued by the market or the factors that the portfolio manager believes will cause the stock price to increase do not occur.

ANNUAL REPORT DECEMBER 31, 2018 25

Notes to Financial Statements (Cont.)

Arbitrage Risk  is the risk that securities purchased pursuant to an arbitrage strategy intended to take advantage of a perceived relationship between the value of two securities may not perform as expected.

Convertible Securities Risk  is the risk that arises when convertible securities share both fixed income and equity characteristics. Convertible securities are subject to risks to which fixed income and equity investments are subject. These risks include equity risk, interest rate risk and credit risk.

Exchange-Traded Fund Risk  is the risk that an exchange-traded fund may not track the performance of the index it is designed to track, market prices of shares of an exchange-traded fund may fluctuate rapidly and materially, or shares of an exchange-traded fund may trade significantly above or below net asset value, any of which may cause losses to the Portfolio invested in the exchange-traded fund.

Tracking Error Risk  is the risk that the portfolio of an Underlying PIMCO Fund that seeks to track the investment results of an underlying index may not closely track the underlying index for a number of reasons. The Underlying PIMCO Fund incurs operating expenses, which are not applicable to the underlying index, and the costs of buying and selling securities, especially when rebalancing the Underlying PIMCO Fund’s portfolio to reflect changes in the composition of the underlying index. Performance of the Underlying PIMCO Fund and the underlying index may vary due to asset valuation differences and differences between the Underlying PIMCO Fund’s portfolio and the underlying index due to legal restrictions, cost or liquidity restraints. The risk that performance of the Underlying PIMCO Fund and the underlying index may vary may be heightened during periods of increased market volatility or other unusual market conditions. In addition, an Underlying PIMCO Fund’s use of a representative sampling approach may cause the Underlying PIMCO Fund to be less correlated to the return of the underlying index than if the Underlying PIMCO Fund held all of the securities in the underlying index.

Indexing Risk  is the risk that an Underlying PIMCO Fund that seeks to track the investment results of an underlying index is negatively affected by general declines in the asset classes represented by the underlying index.

7. MASTER NETTING ARRANGEMENTS

The Portfolio may be subject to various netting arrangements (“Master Agreements”) with select counterparties. Master Agreements govern the terms of certain transactions, and are intended to reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that is intended to improve legal certainty. Each type of Master Agreement

governs certain types of transactions. Different types of transactions may be traded out of different legal entities or affiliates of a particular organization, resulting in the need for multiple agreements with a single counterparty. As the Master Agreements are specific to unique operations of different asset types, they allow the Portfolio to close out and net its total exposure to a counterparty in the event of a default with respect to all the transactions governed under a single Master Agreement with a counterparty. For financial reporting purposes the Statement of Assets and Liabilities generally presents derivative assets and liabilities on a gross basis, which reflects the full risks and exposures prior to netting.

Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. Under most Master Agreements, collateral is routinely transferred if the total net exposure to certain transactions (net of existing collateral already in place) governed under the relevant Master Agreement with a counterparty in a given account exceeds a specified threshold, which typically ranges from zero to $250,000 depending on the counterparty and the type of Master Agreement. United States Treasury Bills and U.S. dollar cash are generally the preferred forms of collateral, although other securities may be used depending on the terms outlined in the applicable Master Agreement. Securities and cash pledged as collateral are reflected as assets on the Statement of Assets and Liabilities as either a component of Investments at value (securities) or Deposits with counterparty. Cash collateral received is not typically held in a segregated account and as such is reflected as a liability on the Statement of Assets and Liabilities as Deposits from counterparty. The market value of any securities received as collateral is not reflected as a component of NAV. The Portfolio’s overall exposure to counterparty risk can change substantially within a short period, as it is affected by each transaction subject to the relevant Master Agreement.

Master Repurchase Agreements and Global Master Repurchase Agreements (individually and collectively “Master Repo Agreements”) govern repurchase, reverse repurchase, and certain sale-buyback transactions between the Portfolio and select counterparties. Master Repo Agreements maintain provisions for, among other things, initiation, income payments, events of default, and maintenance of collateral. The market value of transactions under the Master Repo Agreement, collateral pledged or received, and the net exposure by counterparty as of period end are disclosed in the Notes to Schedule of Investments.

Master Securities Forward Transaction Agreements (“Master Forward Agreements”) govern certain forward settling transactions, such as TBA securities, delayed-delivery or certain sale-buyback transactions by and between the Portfolio and select counterparties. The Master Forward Agreements maintain provisions for, among other things, transaction

26 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

initiation and confirmation, payment and transfer, events of default, termination, and maintenance of collateral. The market value of forward settling transactions, collateral pledged or received, and the net exposure by counterparty as of period end is disclosed in the Notes to Schedule of Investments.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Such transactions require posting of initial margin as determined by each relevant clearing agency which is segregated in an account at a futures commission merchant (“FCM”) registered with the Commodity Futures Trading Commission (“CFTC”). In the United States, counterparty risk may be reduced as creditors of an FCM cannot have a claim to Portfolio assets in the segregated account. Portability of exposure reduces risk to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives unless the parties have agreed to a separate arrangement in respect of portfolio margining. The market value or accumulated unrealized appreciation (depreciation), initial margin posted, and any unsettled variation margin as of period end are disclosed in the Notes to Schedule of Investments.

International Swaps and Derivatives Association, Inc. Master Agreements and Credit Support Annexes (“ISDA Master Agreements”) govern bilateral OTC derivative transactions entered into by the Portfolio with select counterparties. ISDA Master Agreements maintain provisions for general obligations, representations, agreements, collateral posting and events of default or termination. Events of termination include conditions that may entitle counterparties to elect to terminate early and cause settlement of all outstanding transactions under the applicable ISDA Master Agreement. Any election to terminate early could be material to the financial statements. In limited circumstances, the ISDA Master Agreement may contain additional provisions that add counterparty protection beyond coverage of existing daily exposure if the counterparty has a decline in credit quality below a predefined level. These amounts, if any, may be segregated with a third-party custodian. The market value of OTC financial derivative instruments, collateral received or pledged, and net exposure by counterparty as of period end are disclosed in the Notes to Schedule of Investments.

8. FEES AND EXPENSES

(a) Investment Advisory Fee   PIMCO is a majority-owned subsidiary of Allianz Asset Management of America L.P. (“Allianz Asset Management”) and serves as the Adviser to the Trust, pursuant to an investment advisory contract. The Adviser receives a monthly fee from the Portfolio at an annual rate based on average daily net assets (the “Investment Advisory Fee”). The Investment Advisory Fee for all classes is charged at an annual rate as noted in the table in note (b) below.

(b) Supervisory and Administrative Fee   PIMCO serves as administrator (the “Administrator”) and provides supervisory and administrative services to the Trust for which it receives a monthly supervisory and administrative fee based on each share class’s average daily net assets (the “Supervisory and Administrative Fee”). As the Administrator, PIMCO bears the costs of various third-party services, including audit, custodial, portfolio accounting, legal, transfer agency and printing costs.

The Investment Advisory Fee and Supervisory and Administrative Fees for all classes, as applicable, are charged at the annual rate as noted in the following table (calculated as a percentage of the Portfolio’s average daily net assets attributable to each class):

Investment Advisory Fee		Supervisory and Administrative Fee
All Classes		Institutional Class		Class M			Administrative Class		Advisor Class
	0.20%		0.25%		0.25%	*		0.25%		0.25%

* This particular share class has been registered with the SEC, but has not yet launched.

(c) Distribution and Servicing Fees  PIMCO Investments LLC, a wholly-owned subsidiary of PIMCO, serves as the distributor (“Distributor”) of the Trust’s shares.

The Trust has adopted an Administrative Services Plan with respect to the Administrative Class shares of the Portfolio pursuant to Rule 12b-1 under the Act (the “Administrative Plan”). Under the terms of the Administrative Plan, the Trust is permitted to compensate the Distributor, out of the Administrative Class assets of the Portfolio, in an amount up to 0.15% on an annual basis of the average daily net assets of that class, for providing or procuring through financial intermediaries administrative, recordkeeping and investor services for Administrative Class shareholders of the Portfolio.

The Trust has adopted a separate Distribution and Servicing Plan for each of the Advisor Class and Class M shares of the Portfolio (the “Distribution and Servicing Plans”). The Distribution and Servicing Plans have been adopted pursuant to Rule 12b-1 under the Act. The Distribution and Servicing Plans permit the Portfolio to compensate the Distributor for providing or procuring through financial intermediaries, distribution, administrative, recordkeeping, shareholder and/or related services with respect to Advisor Class and Class M shares. The Distribution and Servicing Plans permit the Portfolio to make total payments at an annual rate of up to 0.25% of its average daily net assets attributable to its Advisor Class or Class M shares, respectively. The Distribution and Servicing Plan for Class M shares also permits the Portfolio to compensate the Distributor for providing or procuring administrative, recordkeeping, and other investor services at an annual rate of up to 0.20% of its average daily net assets attributable to its Class M shares.

ANNUAL REPORT DECEMBER 31, 2018 27

Notes to Financial Statements (Cont.)

	Distribution Fee			Servicing Fee
Class M		0.25%	*		0.20%	*
Administrative Class		—			0.15%
Advisor Class		0.25%			—

* This particular share class has been registered with the SEC, but has not yet launched.

(d) Portfolio Expenses  PIMCO provides or procures supervisory and administrative services for shareholders and also bears the costs of various third-party services required by the Portfolio, including audit, custodial, portfolio accounting, legal, transfer agency and printing costs. The Trust is responsible for the following expenses: (i) taxes and governmental fees; (ii) brokerage fees and commissions and other portfolio transaction expenses; (iii) the costs of borrowing money, including interest expense; (iv) fees and expenses of the Trustees who are not “interested persons” of PIMCO or the Trust, and any counsel retained exclusively for their benefit; (v) extraordinary expense, including costs of litigation and indemnification expenses; (vi) organizational expenses; and (vii) any expenses allocated or allocable to a specific class of shares, which include service fees payable with respect to the Administrative Class Shares, and may include certain other expenses as permitted by the Trust’s Multi-Class Plan adopted pursuant to Rule 18f-3 under the Act and subject to review and approval by the Trustees. The ratio of expenses to average net assets per share class, as disclosed on the Financial Highlights, may differ from the annual portfolio operating expenses per share class.

Each Trustee, other than those affiliated with PIMCO or its affiliates, receives an annual retainer of $41,200, plus $4,250 for each Board meeting attended in person, $850 for each committee meeting attended and $750 for each Board meeting attended telephonically, plus reimbursement of related expenses. In addition, the audit committee chair receives an additional annual retainer of $8,000, the valuation oversight committee lead receives an additional annual retainer of $8,500 (to the extent there are co-leads of the valuation oversight committee, the annual retainer will be split evenly between the co-leads, so that each co-lead individually receives an additional annual retainer of $4,250) and each other committee chair receives an additional annual retainer of $5,500. The Lead Independent Trustee receives an annual retainer of $7,000.

These expenses are allocated on a pro rata basis to each Portfolio of the Trust according to its respective net assets. The Trust pays no compensation directly to any Trustee or any other officer who is affiliated with the Administrator, all of whom receive remuneration for their services to the Trust from the Administrator or its affiliates.

(e) Expense Limitation  Pursuant to the Expense Limitation Agreement, PIMCO has agreed to waive a portion of the Portfolio’s Supervisory and Administrative Fee, or reimburse the Portfolio, to the extent that the Portfolio’s organizational expenses, pro rata share of expenses related

to obtaining or maintaining a Legal Entity Identifier and pro rata share of Trustee Fees exceed 0.0049%, the “Expense Limit” (calculated as a percentage of the Portfolio’s average daily net assets attributable to each class). The Expense Limitation Agreement will automatically renew for one-year terms unless PIMCO provides written notice to the Trust at least 30 days prior to the end of the then current term.

Under certain conditions, PIMCO may be reimbursed for these waived amounts in future periods, not to exceed thirty-six months after the waiver. The recoverable amounts to PIMCO at December 31, 2018 were (amounts in thousands^†):

12 months		13-24 months		25-36 months		Total
$	0	$	0	$	1	$	1

(f) Acquired Fund Fees and Expenses  Underlying PIMCO Fund expenses incurred by the Portfolio, if any, will vary with changes in the expenses of the Underlying PIMCO Funds, as well as the allocation of the Portfolio’s assets.

The expenses associated with investing in a fund of funds are generally higher than those for mutual funds that do not invest in other mutual funds. The cost of investing in a fund of funds will generally be higher than the cost of investing in a mutual fund that invests directly in individual stocks and bonds. By investing in a fund of funds, an investor will indirectly bear fees and expenses charged by Underlying PIMCO Funds in addition to the Portfolio’s direct fees and expenses. In addition, the use of a fund of funds structure could affect the timing, amount and character of distributions to the shareholders and may therefore increase the amount of taxes payable by shareholders.

PIMCO has contractually agreed, through May 1, 2019, to waive its Investment Advisory Fee to the extent that the Investment Advisory Fees, Supervisory and Administrative Fees and Management Fees charged by PIMCO to the Underlying PIMCO Funds exceed 0.69% of the total assets invested in Underlying PIMCO Funds. This waiver will automatically renew for one-year terms unless PIMCO provides written notice to the Trust at least 30 days prior to the end of the then current term. In any month in which the investment advisory contract is in effect, PIMCO is entitled to reimbursement by the Portfolio of any portion of the Investment Advisory Fee waived as set forth above (the “Asset Allocation Reimbursement Amount”) during the previous thirty-six months, provided that such amount paid to PIMCO will not: 1) together with any Underlying PIMCO Fund Fees exceed, for such month, the applicable expense limit; 2) exceed the total Asset Allocation Reimbursement Amount; or 3) include any amounts previously reimbursed to PIMCO. The recoverable amounts to PIMCO at December 31, 2018 were (amounts in thousands^†):

12 months		13-24 months		25-36 months		Total
$	8	$	5	$	19	$	32

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

28 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

The waivers are reflected on the Statement of Operations as a component of Waiver and/or Reimbursement by PIMCO. For the period ended December 31, 2018, the amount was $18,876.

9. RELATED PARTY TRANSACTIONS

The Adviser, Administrator, and Distributor are related parties. Fees paid to these parties are disclosed in Note 8, Fees and Expenses, and the accrued related party fee amounts are disclosed on the Statement of Assets and Liabilities.

10. GUARANTEES AND INDEMNIFICATIONS

Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust (including the Trust’s investment manager) is indemnified, to the extent permitted by the Act, against certain liabilities that may arise out of performance of their duties to the Portfolio. Additionally, in the normal course of business, the Portfolio enters into contracts that contain a variety of indemnification clauses. The Portfolio’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Portfolio that have not yet occurred. However, the Portfolio has not had prior claims or losses pursuant to these contracts.

11. PURCHASES AND SALES OF SECURITIES

The length of time the Portfolio has held a particular security is not generally a consideration in investment decisions. A change in the securities held by the Portfolio is known as “portfolio turnover.” The Portfolio may engage in frequent and active trading of portfolio securities to achieve its investment objective, particularly during periods of volatile market movements. High portfolio turnover may involve correspondingly greater transaction costs to the Portfolio, including brokerage commissions or dealer mark-ups and other transaction costs on the sale of securities and reinvestments in other securities. Such sales may also result in realization of taxable capital gains, including short-term capital gains (which are generally taxed at ordinary income tax rates). The transaction costs and tax effects associated with portfolio turnover may adversely affect a shareholder’s performance. The portfolio turnover rates are reported in the Financial Highlights.

Purchases and sales of securities (excluding short-term investments) for the period ended December 31, 2018, were as follows (amounts in thousands^†):

U.S. Government/Agency				All Other
Purchases		Sales		Purchases		Sales
$	0	$	0	$	9,847	$	11,575

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

12. SHARES OF BENEFICIAL INTEREST

The Trust may issue an unlimited number of shares of beneficial interest with a $0.001 par value. Changes in shares of beneficial interest were as follows (shares and amounts in thousands^†):

	Year Ended 12/31/2018						Year Ended 12/31/2017
	Shares			Amount			Shares			Amount
Receipts for shares sold
Institutional Class		37		$	317			0		$	6
Administrative Class		182			1,583			408			3,588
Advisor Class		129			1,105			204			1,810
Issued as reinvestment of distributions
Institutional Class		3			24			4			34
Administrative Class		16			134			25			220
Advisor Class		28			231			42			368
Cost of shares redeemed
Institutional Class		(36	)		(299	)		(37	)		(329	)
Administrative Class		(308	)		(2,643	)		(131	)		(1,162	)
Advisor Class		(200	)		(1,725	)		(184	)		(1,627	)
Net increase (decrease) resulting from Portfolio share transactions		(149	)	$	(1,273	)		331		$	2,908

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

As of December 31, 2018, three shareholders each owned 10% or more of the Portfolio’s total outstanding shares comprising 95% of the Portfolio.

13. REGULATORY AND LITIGATION MATTERS

The Portfolio is not named as a defendant in any material litigation or arbitration proceedings and is not aware of any material litigation or claim pending or threatened against it.

The foregoing speaks only as of the date of this report.

ANNUAL REPORT DECEMBER 31, 2018 29

Notes to Financial Statements (Cont.)

14. FEDERAL INCOME TAX MATTERS

The Portfolio intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code (the “Code”) and distribute all of its taxable income and net realized gains, if applicable, to shareholders. Accordingly, no provision for Federal income taxes has been made.

The Portfolio may be subject to local withholding taxes, including those imposed on realized capital gains. Any applicable foreign capital gains tax is accrued daily based upon net unrealized gains, and may be payable following the sale of any applicable investments.

In accordance with U.S. GAAP, the Adviser has reviewed the Portfolio’s tax positions for all open tax years. As of December 31, 2018, the Portfolio has recorded no liability for net unrecognized tax benefits relating to uncertain income tax positions it has taken or expects to take in future tax returns.

The Portfolio files U.S. federal, state, and local tax returns as required. The Portfolio’s tax returns are subject to examination by relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return but which can be extended to six years in certain circumstances. Tax returns for open years have incorporated no uncertain tax positions that require a provision for income taxes.

The Portfolio, through the Underlying PIMCO Funds, may gain exposure to the commodities markets primarily through index-linked notes, and may invest in other commodity-linked derivative investments, including commodity swap agreements, options, futures contracts, options on futures contracts and foreign funds investing in similar commodity-linked derivatives.

One of the requirements for favorable tax treatment as a regulated investment company under the Code is that the Portfolio must derive at least 90% of its gross income from certain qualifying sources of income. The IRS has issued a revenue ruling which holds that income derived from commodity index-linked swaps is not qualifying income under Subchapter M of the Code. The IRS has also issued private letter rulings in which the IRS specifically concluded that income from certain commodity index- linked notes is qualifying income. The IRS has also issued private rulings in which the IRS specifically concluded that income derived from an investment in a subsidiary, which invests primarily in commodity-linked swaps, will also be qualifying income. Based on the reasoning in such rulings, the Portfolio will continue to

seek to gain exposure to the commodity markets through indirect investments in a Subsidiary.

It should be noted, however, that the IRS currently has suspended the issuance of such rulings. In addition, the IRS also recently issued a revenue procedure, which states that the IRS will not in the future issue private letter rulings that would require a determination of whether an asset (such as a commodity index-linked note) is a “security” under the 1940 Act.

There can be no assurance that the IRS will not change its position relating to whether that income derived from commodity-linked notes and wholly-owned subsidiaries is qualifying income. Furthermore, the tax treatment of commodity-linked notes, other commodity-linked derivatives, may otherwise be adversely affected by future legislation, court decisions, Treasury Regulations and/or guidance issued by the IRS. Such developments could affect the character, timing and/or amount of the Portfolio’s taxable income or any distributions made by the Portfolio or result in the inability of the Portfolio or an Underlying PIMCO Fund to operate as described in its Prospectus.

The IRS recently issued proposed regulations that, if finalized, would generally treat the Portfolio’s income inclusion with respect to the Commodity Subsidiary as qualifying income only if there is a distribution out of the earnings and profits of the Commodity Subsidiary that are attributable to such income inclusion. The proposed regulations, if adopted, would apply to taxable years beginning on or after 90 days after the regulations are published as final.

If, during a taxable year, the Underlying PIMCO Fund’s Commodity Subsidiary’s taxable losses (and other deductible items) exceed its income and gains, the net loss will not pass through to the Underlying PIMCO Fund as a deductible amount for income tax purposes. In the event that the Commodity Subsidiary’s taxable gains exceed its losses and other deductible items during a taxable year, the net gain will pass through to the Underlying PIMCO Fund as income for Federal income tax purposes.

Shares of the Portfolio currently are sold to segregated asset accounts (“Separate Accounts”) of insurance companies that fund variable annuity contracts and variable life insurance policies (“Variable Contracts”). Please refer to the prospectus for the Separate Account and Variable Contract for information regarding Federal income tax treatment of distributions to the Separate Account.

30 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

As of December 31, 2018, the components of distributable taxable earnings are as follows (amounts in thousands^†):

	Undistributed Ordinary Income(1)		Undistributed Long-Term Capital Gains		Net Tax Basis Unrealized Appreciation/ (Depreciation)(2)			Other Book-to-Tax Accounting Differences(3)		Accumulated Capital Losses(4)			Qualified Late-Year Loss Deferral - Capital(5)		Qualified Late-Year Loss Deferral - Ordinary(6)
PIMCO All Asset All Authority Portfolio	$	139	$	0	$	(1,534	)	$	0	$	(1,217	)	$	0	$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽¹⁾  Includes undistributed short-term capital gains, if any.

⁽²⁾  Adjusted for open wash sale loss deferrals. Also adjusted for differences between book and tax realized and unrealized gain (loss) on return of capital distributions from underlying funds.

⁽³⁾  Represents differences in income tax regulations and financial accounting principles generally accepted in the United States of America.

⁽⁴⁾  Capital losses available to offset future net capital gains expire in varying amounts as shown below.

⁽⁵⁾  Capital losses realized during the period November 1, 2018 through December 31, 2018 which the Portfolio elected to defer to the following taxable year pursuant to income tax regulations.

⁽⁶⁾  Specified losses realized during the period November 1, 2018 through December 31, 2018 which the Portfolio elected to defer to the following taxable year pursuant to income tax regulations.

Under the Regulated Investment Company Modernization Act of 2010, a fund is permitted to carry forward any new capital losses for an unlimited period. Additionally, such capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term under previous law.

As of December 31, 2018, the Portfolio had the following post-effective capital losses with no expiration (amounts in thousands^†):

	Short-Term		Long-Term
PIMCO All Asset All Authority Portfolio	$	526	$	691

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

As of December 31, 2018, the aggregate cost and the net unrealized appreciation/(depreciation) of investments for federal income tax purposes are as follows (amounts in thousands^†):

	Federal Tax Cost		Unrealized Appreciation		Unrealized (Depreciation)			Net  Unrealized Appreciation/ (Depreciation)(7)
PIMCO All Asset All Authority Portfolio	$	16,735	$	88	$	(1,620	)	$	(1,532	)

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽⁷⁾  Primary differences, if any, between book and tax net unrealized appreciation/(depreciation) on investments are attributable to open wash sale loss deferrals, return of capital distributions from underlying funds.

For the fiscal year ended December 31, 2018 and December 31, 2017, respectively, the Portfolio made the following tax basis distributions (amounts in thousands^†):

	December 31, 2018						December 31, 2017
	Ordinary Income Distributions(8)		Long-Term Capital Gain Distributions		Return of Capital(9)		Ordinary Income Distributions(8)		Long-Term Capital Gain Distributions		Return of Capital(9)
PIMCO All Asset All Authority Portfolio	$	390	$	0	$	0	$	622	$	0	$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽⁸⁾  Includes short-term capital gains distributed, if any.     

⁽⁹⁾  A portion of the distributions made represents a tax return of capital. Return of capital distributions have been reclassified from undistributed net investment income to paid-in capital to more appropriately conform financial accounting to tax accounting.

ANNUAL REPORT DECEMBER 31, 2018 31

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of PIMCO Variable Insurance Trust and Shareholders of PIMCO All Asset All Authority Portfolio

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of PIMCO All Asset All Authority Portfolio (one of the portfolios constituting PIMCO Variable Insurance Trust, referred to hereafter as the “Portfolio”) as of December 31, 2018, the related statements of operations and cash flows for the year ended December 31, 2018, the statement of changes in net assets for each of the two years in the period ended December 31, 2018, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Portfolio as of December 31, 2018, the results of its operations and its cash flows for the year then ended, the changes in its net assets for each of the two years in the period ended December 31, 2018 and the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Portfolio’s management. Our responsibility is to express an opinion on the Portfolio’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Portfolio in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2018 by correspondence with the custodian and transfer agent. We believe that our audits provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

Kansas City, Missouri

February 20, 2019

We have served as the auditor of one or more investment companies in PIMCO Variable Insurance Trust since 1998.

32 PIMCO VARIABLE INSURANCE TRUST

Glossary: (abbreviations that may be used in the preceding statements)

(Unaudited)

Currency Abbreviations:
USD (or $)	United States Dollar
Other Abbreviations:
TBA	To-Be-Announced

ANNUAL REPORT DECEMBER 31, 2018 33

Federal Income Tax Information

(Unaudited)

As required by the Internal Revenue Code (the “Code”) and Treasury Regulations, if applicable, shareholders must be notified regarding the status of qualified dividend income and the dividend received deduction.

Dividend Received Deduction.  Corporate shareholders are generally entitled to take the dividend received deduction on the portion of a Fund’s dividend distribution that qualifies under tax law. The percentage of the following Portfolio’s fiscal 2018 ordinary income dividend that qualifies for the corporate dividend received deduction is set forth in the table below.

Qualified Dividend Income.  Under the Jobs and Growth Tax Relief Reconciliation Act of 2003 (the “Act”), the percentage of ordinary dividends paid during the calendar year designated as “qualified dividend income”, as defined in the Act, subject to reduced tax rates in 2018 is set forth for the Portfolio in the table below.

Qualified Interest Income and Qualified Short-Term Capital Gain (for non-U.S. resident shareholders only).  Under the American Jobs Creation Act of 2004, the amounts of ordinary dividends paid during the fiscal year ended December 31, 2018 considered to be derived from “qualified interest income,” as defined in Section 871(k)(1)(E) of the Code, and therefore designated as interest-related dividends, as defined in Section 871(k)(1)(C) of the Code are set forth in the table below. Further, the amounts of ordinary dividends paid during the fiscal year ended December 31, 2018 considered to be derived from “qualified short-term capital gain,” as defined in Section 871(k)(2)(D) of the Code, and therefore designated as qualified short-term gain dividends, as defined by Section 871(k)(2)(C) of the Code are also set forth in the table below.

	Dividend Received Deduction %		Qualified Dividend Income %		Qualified Interest Income (000s† )		Qualified Short-Term Capital Gain (000s†)
PIMCO All Asset All Authority Portfolio		0.00%		5.94%	$	1	$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

Shareholders are advised to consult their own tax advisor with respect to the tax consequences of their investment in the Trust. In January 2019, you will be advised on IRS Form 1099-DIV as to the federal tax status of the dividends and distributions received by you in calendar year 2018.

34 PIMCO VARIABLE INSURANCE TRUST

Management of the Trust

(Unaudited)

The charts below identify the Trustees and executive officers of the Trust. Unless otherwise indicated, the address of all persons below is 650 Newport Center Drive, Newport Beach, CA 92660.

The Portfolio’s Statement of Additional Information includes more information about the Trustees and Officers. To request a free copy, call PIMCO at (888) 87-PIMCO or visit the Portfolio’s website at www.pimco.com/pvit.

Name, Year of Birth and Position Held with Trust*	Term of Office and Length of Time Served†	Principal Occupation(s) During Past 5 Years	Number of Funds in Fund Complex Overseen by Trustee	Other Public Company and Investment Company Directorships Held by Trustee During the Past 5 Years
Interested Trustees1
Peter G. Strelow** (1970) Chairman of the Board and Trustee	05/2017 to present Chairman of the Board - 02/2019 to present	Managing Director and Co-Chief Operating Officer, PIMCO. President of the Trust, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Chief Administrative Officer, PIMCO.	153	Chairman and Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT.
Brent R. Harris** (1959) Trustee	08/1997 to present	Managing Director, PIMCO. Senior Vice President of the Trust, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Formerly, member of Executive Committee, PIMCO.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT; Director, StocksPLUS® Management, Inc; and member of Board of Governors, Investment Company Institute. Formerly, Chairman, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT.
Independent Trustees
George E. Borst (1948) Trustee	04/2015 to present	Executive Advisor, McKinsey & Company (since 10/14); Formerly, Executive Advisor, Toyota Financial Services (10/13-12/14); and CEO, Toyota Financial Services (1/01-9/13).	132	Trustee, PIMCO Funds and PIMCO ETF Trust; Director, MarineMax Inc.
Jennifer Holden Dunbar (1963) Trustee	04/2015 to present	Managing Director, Dunbar Partners, LLC (business consulting and investments). Formerly, Partner, Leonard Green & Partners, L.P.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT; Director, PS Business Parks; Director, Big 5 Sporting Goods Corporation.
Kym M. Hubbard (1957) Trustee	02/2017 to present	Formerly, Global Head of Investments, Chief Investment Officer and Treasurer, Ernst & Young.	132	Trustee, PIMCO Funds and PIMCO ETF Trust; Director, State Auto Financial Corporation.
Gary F. Kennedy (1955) Trustee	04/2015 to present	Formerly, Senior Vice President, General Counsel and Chief Compliance Officer, American Airlines and AMR Corporation (now American Airlines Group) (1/03-1/14).	132	Trustee, PIMCO Funds and PIMCO ETF Trust.
Peter B. McCarthy (1950) Trustee	04/2015 to present	Formerly, Assistant Secretary and Chief Financial Officer, United States Department of Treasury; Deputy Managing Director, Institute of International Finance.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Ronald C. Parker (1951) Lead Independent Trustee	07/2009 to present Lead Independent Trustee - 02/2017 to present	Director of Roseburg Forest Products Company. Formerly, Chairman of the Board, The Ford Family Foundation; and President, Chief Executive Officer, Hampton Affiliates (forestry products).	153	Lead Independent Trustee, PIMCO Funds and PIMCO ETF Trust; Trustee, PIMCO Equity Series and PIMCO Equity Series VIT.

* Unless otherwise noted, the information for the individuals listed is as of December 31, 2018.

** Effective February 13, 2019, Mr. Strelow became the Chairman of the Trust.

¹  Mr. Harris and Mr. Strelow are “interested persons” of the Trust (as that term is defined in the 1940 Act) because of their affiliations with PIMCO.

^†  Trustees serve until their successors are duly elected and qualified.

ANNUAL REPORT DECEMBER 31, 2018 35

Management of the Trust (Cont.)

(Unaudited)

Executive Officers

Name, Year of Birth and Position Held with Trust	Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years*
Peter G. Strelow (1970) President	01/2015 to present	Managing Director and Co-Chief Operating Officer, PIMCO. President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Chief Administrative Officer, PIMCO.
Joshua D. Ratner (1976)** Chief Legal Officer	11/2018 to present Vice President - Senior Counsel and Secretary 11/2013 to 11/2018 Assistant Secretary 10/2007 to 01/2011	Executive Vice President and Deputy General Counsel, PIMCO. Chief Legal Officer, PIMCO Investments LLC. Chief Legal Officer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Jennifer E. Durham (1970) Chief Compliance Officer	07/2004 to present	Managing Director and Chief Compliance Officer, PIMCO. Chief Compliance Officer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Brent R. Harris (1959) Senior Vice President	01/2015 to present President 03/2009 to 01/2015	Managing Director, PIMCO. Senior Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Formerly, member of Executive Committee, PIMCO.
Ryan G. Leshaw (1980) Vice President, Senior Counsel and Secretary	11/2018 to present Assistant Secretary 05/2012 to 11/2018	Senior Vice President and Senior Counsel, PIMCO. Vice President, Senior Counsel and Secretary, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Assistant Secretary, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Associate, Willkie Farr & Gallagher LLP.
Wu-Kwan Kit (1981) Assistant Secretary	08/2017 to present	Senior Vice President and Senior Counsel, PIMCO. Assistant Secretary, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Vice President, Senior Counsel and Secretary, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Assistant General Counsel, VanEck Associates Corp.
Stacie D. Anctil (1969) Vice President	05/2015 to present Assistant Treasurer 11/2003 to 05/2015	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
William G. Galipeau (1974) Vice President	11/2013 to present	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Eric D. Johnson (1970) Vice President	05/2011 to present	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Henrik P. Larsen (1970) Vice President	02/1999 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Bijal Y. Parikh (1978) Vice President	02/2017 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Greggory S. Wolf (1970) Vice President	05/2011 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Trent W. Walker (1974) Treasurer	11/2013 to present	Executive Vice President, PIMCO. Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Erik C. Brown (1967)** Assistant Treasurer	02/2001 to present	Executive Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Colleen D. Miller (1980)** Assistant Treasurer	02/2017 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Christopher M. Morin (1980) Assistant Treasurer	08/2016 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Jason J. Nagler (1982)** Assistant Treasurer	05/2015 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.

* The term “PIMCO-Sponsored Closed-End Funds” as used herein includes: PIMCO California Municipal Income Fund, PIMCO California Municipal Income Fund II, PIMCO California Municipal Income Fund III, PIMCO Municipal Income Fund, PIMCO Municipal Income Fund II, PIMCO Municipal Income Fund III, PIMCO New York Municipal Income Fund, PIMCO New York Municipal Income Fund II, PIMCO New York Municipal Income Fund III, PCM Fund Inc., PIMCO Corporate & Income Opportunity Fund, PIMCO Corporate & Income Strategy Fund, PIMCO Dynamic Credit and Mortgage Income Fund, PIMCO Dynamic Income Fund, PIMCO Global StocksPLUS^® & Income Fund, PIMCO High Income Fund, PIMCO Income Opportunity Fund, PIMCO Income Strategy Fund, PIMCO Income Strategy Fund II and PIMCO Strategic Income Fund, Inc.; the term “PIMCO-Sponsored Interval Funds” as used herein includes: PIMCO Flexible Credit Income Fund and PIMCO Flexible Municipal Income Fund.

** The address of these officers is Pacific Investment Management Company LLC, 1633 Broadway, New York, New York 10019.

36 PIMCO VARIABLE INSURANCE TRUST

Privacy Policy¹

(Unaudited)

The Trust^2,3 considers customer privacy to be a fundamental aspect of its relationships with shareholders and is committed to maintaining the confidentiality, integrity and security of its current, prospective and former shareholders’ non-public personal information. The Trust has developed policies that are designed to protect this confidentiality, while allowing shareholder needs to be served.

OBTAINING PERSONAL INFORMATION

In the course of providing shareholders with products and services, the Trust and certain service providers to the Trust, such as the Trust’s investment advisers or sub-advisers (“Advisers”), may obtain non-public personal information about shareholders, which may come from sources such as account applications and other forms, from other written, electronic or verbal correspondence, from shareholder transactions, from a shareholder’s brokerage or financial advisory firm, financial advisor or consultant, and/or from information captured on applicable websites.

RESPECTING YOUR PRIVACY

As a matter of policy, the Trust does not disclose any non-public personal information provided by shareholders or gathered by the Trust to non-affiliated third parties, except as required or permitted by law or as necessary for such third parties to perform their agreements with respect to the Trust. As is common in the industry, non-affiliated companies may from time to time be used to provide certain services, such as preparing and mailing prospectuses, reports, account statements and other information, conducting research on shareholder satisfaction and gathering shareholder proxies. The Trust or its affiliates may also retain non-affiliated companies to market the Trust’s shares or products which use the Trust’s shares and enter into joint marketing arrangements with them and other companies. These companies may have access to a shareholder’s personal and account information, but are permitted to use this information solely to provide the specific service or as otherwise permitted by law. In most cases, the shareholders will be clients of a third party, but the Trust may also provide a shareholder’s personal and account information to the shareholder’s respective brokerage or financial advisory firm and/or financial advisor or consultant.

SHARING INFORMATION WITH THIRD PARTIES

The Trust reserves the right to disclose or report personal or account information to non-affiliated third parties in limited circumstances where the Trust believes in good faith that disclosure is required under law, to cooperate with regulators or law enforcement authorities, to protect its rights or property, or upon reasonable request by any fund advised by PIMCO in which a shareholder has invested. In addition, the Trust may disclose information about a shareholder or a shareholder’s accounts to a non-affiliated third party at the shareholder’s request or with the consent of the shareholder.

SHARING INFORMATION WITH AFFILIATES

The Trust may share shareholder information with its affiliates in connection with servicing shareholders’ accounts, and subject to applicable law may provide shareholders with information about

products and services that the Trust or its Advisers, distributors or their affiliates (“Service Affiliates”) believe may be of interest to such shareholders. The information that the Trust may share may include,

for example, a shareholder’s participation in the Trust or in other investment programs sponsored by a Service Affiliate, a shareholder’s ownership of certain types of accounts (such as IRAs), information about the Trust’s experiences or transactions with a shareholder, information captured on applicable websites, or other data about a shareholder’s accounts, subject to applicable law. The Trust’s Service Affiliates, in turn, are not permitted to share shareholder information with non-affiliated entities, except as required or permitted by law.

PROCEDURES TO SAFEGUARD PRIVATE INFORMATION

The Trust takes seriously the obligation to safeguard shareholder non-public personal information. In addition to this policy, the Trust has implemented procedures that are designed to restrict access to a shareholder’s non-public personal information to internal personnel who need to know that information to perform their jobs, such as servicing shareholder accounts or notifying shareholders of new products or services. Physical, electronic and procedural safeguards are in place to guard a shareholder’s non-public personal information.

INFORMATION COLLECTED FROM WEBSITES

Websites maintained by the Trust or its service providers may use a variety of technologies to collect information that help the Trust and its service providers understand how the website is used. Information collected from your web browser (including small files stored on your device that are commonly referred to as “cookies”) allow the websites to recognize your web browser and help to personalize and improve your user experience and enhance navigation of the website. In addition, the Trust or its Service Affiliates may use third parties to place advertisements for the Trust on other websites, including banner advertisements. Such third parties may collect anonymous information through the use of cookies or action tags (such as web beacons). The information these third parties collect is generally limited to technical and web navigation information, such as your IP address, web pages visited and browser type, and does not include personally identifiable information such as name, address, phone number or email address. If you are a registered user of the Trust’s website, the Trust or their service providers or third party firms engaged by the Trust or their service providers may collect or share information submitted by you, which may include personally identifiable information. This information can be useful to the Trust when assessing and offering services and website features. You can change your cookie preferences by changing the setting on your web browser to delete or reject cookies. If you delete or reject cookies, some website pages may not function properly. The Trust does not look for web browser “do not track” requests.

CHANGES TO THE PRIVACY POLICY

From time to time, the Trust may update or revise this privacy policy. If there are changes to the terms of this privacy policy, documents containing the revised policy on the relevant website will be updated.

¹ Amended as of February 15, 2017.

² PIMCO Investments LLC (“PI”) serves as the Trust’s distributor. This Privacy Policy applies to the activities of PI to the extent that PI regularly effects or engages in transactions with or for a Trust shareholder who is the record owner of such shares. For purposes of this Privacy Policy, references to “the Trust” shall include PI when acting in this capacity.

³ When distributing this Policy, the Trust may combine the distribution with any similar distribution of its investment adviser’s privacy policy. The distributed, combined policy may be written in the first person (i.e., by using “we” instead of “the Trust”).

ANNUAL REPORT DECEMBER 31, 2018 37

Approval of Investment Advisory Contract and Other Agreements

Approval of Renewal of the Amended and Restated Investment Advisory Contract, Supervision and Administration Agreement and Amended and Restated Asset Allocation Sub-Advisory Agreement

At a meeting held on August 20-21, 2018, the Board of Trustees (the “Board”) of PIMCO Variable Insurance Trust (the “Trust”), including the Trustees who are not “interested persons” of the Trust under the Investment Company Act of 1940, as amended (the “Independent Trustees”), considered and unanimously approved the renewal of the Amended and Restated Investment Advisory Contract (the “Investment Advisory Contract”) between the Trust, on behalf of each of the Trust’s series (the “Portfolios”), and Pacific Investment Management Company LLC (“PIMCO”) for an additional one-year term through August 31, 2019. The Board also considered and unanimously approved the renewal of the Supervision and Administration Agreement (together with the Investment Advisory Contract, the “Agreements”) between the Trust, on behalf of the Portfolios, and PIMCO for an additional one-year term through August 31, 2019. In addition, the Board considered and unanimously approved the renewal of the Amended and Restated Asset Allocation Sub-Advisory Agreement (the “Asset Allocation Agreement”) between PIMCO, on behalf of PIMCO All Asset Portfolio and PIMCO All Asset All Authority Portfolio, each a series of the Trust, and Research Affiliates, LLC (“Research Affiliates”) for an additional one-year term through August 31, 2019.

The information, material factors and conclusions that formed the basis for the Board’s approvals are summarized below.

1. INFORMATION RECEIVED

(a) Materials Reviewed:  During the course of the past year, the Trustees received a wide variety of materials relating to the services provided by PIMCO and Research Affiliates to the Trust. At each of its quarterly meetings, the Board reviewed the Portfolios’ investment performance and a significant amount of information relating to Portfolio operations, including shareholder services, valuation and custody, the Portfolios’ compliance program and other information relating to the nature, extent and quality of services provided by PIMCO and Research Affiliates to the Trust and each of the Portfolios, as applicable. In considering whether to approve the renewal of the Agreements and the Asset Allocation Agreement, the Board reviewed additional information, including, but not limited to, comparative industry data with regard to investment performance, advisory and supervisory and administrative fees and expenses, financial information for PIMCO and, where relevant, Research Affiliates, information regarding the profitability to PIMCO of its relationship with the Portfolios, information about the personnel providing investment management services, other advisory services and supervisory and administrative services to the Portfolios, and information about the fees

charged and services provided to other clients with similar investment mandates as the Portfolios, where applicable. In addition, the Board reviewed materials provided by counsel to the Trust and the Independent Trustees, which included, among other things, memoranda outlining legal duties of the Board in considering the renewal of the Agreements and the Asset Allocation Agreement.

(b) Review Process:  In connection with considering the renewal of the Agreements and the Asset Allocation Agreement, the Board reviewed written materials prepared by PIMCO and, where applicable, Research Affiliates in response to requests from counsel to the Trust and the Independent Trustees encompassing a wide variety of topics. The Board requested and received assistance and advice regarding, among other things, applicable legal standards from counsel to the Trust and the Independent Trustees, and reviewed comparative fee and performance data prepared at the Board’s request by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company performance information and fee and expense data. The Board received information on matters related to the Agreements and the Asset Allocation Agreement and met both as a full Board and in a separate session of the Independent Trustees, without management present, at the August 20-21, 2018 meeting. The Independent Trustees also conducted in-person meetings with counsel to the Trust and the Independent Trustees, including one on July 18, 2018, to discuss the Lipper Report, as defined below, and certain aspects of the 2018 15(c) materials presented and other matters deemed relevant to their consideration of the renewal of the Agreements and the Asset Allocation Agreement. In connection with its review of the Agreements, the Board received comparative information on the performance and the fees and expenses of other peer group funds and share classes. In addition, the Independent Trustees requested and received supplemental information.

The approval determinations were made on the basis of each Trustee’s business judgment after consideration and evaluation of all the information presented. Individual Trustees may have given different weights to certain factors and assigned various degrees of materiality to information received in connection with the approval process. In deciding to approve the renewal of the Agreements and the Asset Allocation Agreement, the Board did not identify any single factor or particular information that, in isolation, was controlling. The discussion below is intended to summarize the broad factors and information that figured prominently in the Board’s consideration of the renewal of the Agreements and the Asset Allocation Agreement, but is not intended to summarize all of the factors considered by the Board.

2. NATURE, EXTENT AND QUALITY OF SERVICES

(a) PIMCO, Research Affiliates, their Personnel, and Resources:  The Board considered the depth and quality of PIMCO’s investment management process, including: the experience, capability and integrity

38 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

of its senior management and other personnel; the overall financial strength and stability of its organization; and the ability of its organizational structure to address changes in the Portfolios’ asset levels. The Board also considered the various services in addition to portfolio management that PIMCO provides under the Investment Advisory Contract. The Board noted that PIMCO makes available to its investment professionals a variety of resources and systems relating to investment management, compliance, trading, performance and portfolio accounting. The Board also noted PIMCO’s commitment to enhancing and investing in its global infrastructure, technology capabilities, risk management processes and the specialized talent needed to stay at the forefront of the competitive investment management industry and to strengthen its ability to deliver services under the Agreements. The Board considered PIMCO’s policies, procedures and systems reasonably designed to assure compliance with applicable laws and regulations and its commitment to further developing and strengthening these programs, its oversight of matters that may involve conflicts of interest between the Portfolios’ investments and those of other accounts managed by PIMCO, and its efforts to keep the Trustees informed about matters relevant to the Portfolios and their shareholders. The Board also considered PIMCO’s continuous investment in new disciplines and talented personnel, which has enhanced PIMCO’s services to the Portfolios and has allowed PIMCO to introduce innovative new portfolios over time. In addition, the Board considered the nature and quality of services provided by PIMCO to the wholly-owned subsidiaries of certain applicable Portfolios.

The Trustees considered that PIMCO has continued to strengthen the process it uses to actively manage counterparty risk and to assess the financial stability of counterparties with which the Portfolios do business, to manage collateral and to protect Portfolios from an unforeseen deterioration in the creditworthiness of trading counterparties. The Trustees noted that, consistent with its fiduciary duty, PIMCO executes transactions through a competitive best execution process and uses only those counterparties that meet its stringent and monitored criteria. The Trustees considered that PIMCO’s collateral management team utilizes a counterparty risk system to analyze portfolio level exposure and collateral being exchanged with counterparties.

In addition, the Trustees considered new services and service enhancements that PIMCO has implemented since the Board renewed the Agreements in 2017, including, but not limited to upgrading the global network and infrastructure to support trading and risk management systems; enhancing and continuing to expand capabilities within the pre-trade compliance platform; enhancing flexible client reporting capabilities to support increased differentiation within local markets; developing new application and database frameworks to support new trading strategies; expanding proprietary applications

suites to enrich capabilities across Compliance, Analytics, Risk Management, Client Reporting, Attribution and Customer Relationship management; continuing investment in its enterprise risk management function, including PIMCO’s cybersecurity program and global business continuity functions; oversight by the Americas Fund Oversight Committee, which provides senior-level oversight and supervision focused on new and ongoing fund-related business opportunities; engaging a third party service provider to implement the SEC reporting modernization regime; expanding the Fund Treasurer’s Office; enhancing a proprietary application to provide portfolio managers with more timely and high quality income reporting; developing a global tax management application that will enable investment professionals to access foreign market and security tax information on a real-time basis; enhancing reporting of tax reporting for portfolio managers for income products with improved transparency on tax factors impacting income generation and dividend yield; upgrading a proprietary application to allow shareholder subscription and redemption data to pass to portfolio managers more quickly and efficiently; and continuing to expand the pricing portal and the proprietary performance reconciliation tool.

Similarly, the Board considered the asset allocation services provided by Research Affiliates to the PIMCO All Asset Portfolio and PIMCO All Asset All Authority Portfolio. The Board further considered PIMCO’s oversight of Research Affiliates in connection with Research Affiliates providing asset allocation services to the Asset Portfolio and All Asset All Authority Portfolio. The Board also considered the depth and quality of Research Affiliates’ investment management and research capabilities, the experience and capabilities of its portfolio management personnel and the overall financial strength of the organization.

Ultimately, the Board concluded that the nature, extent and quality of services provided or procured by PIMCO under the Agreements and provided by Research Affiliates under the Asset Allocation Agreement are likely to continue to benefit the Portfolios and their respective shareholders, as applicable.

(b) Other Services:  The Board also considered the nature, extent and quality of supervisory and administrative services provided by PIMCO to the Portfolios under the Supervision and Administration Agreement.

The Board considered the terms of the Supervision and Administration Agreement, under which the Trust pays for the supervisory and administrative services provided pursuant to that agreement under what is essentially an all-in fee structure (the “unified fee”). In return, PIMCO provides or procures certain supervisory and administrative services and bears the costs of various third party services required by the Portfolios, including audit, custodial, portfolio accounting, legal, transfer agency, sub-accounting and printing costs. The Board noted that the scope and complexity, as well as the costs, of the supervisory

ANNUAL REPORT DECEMBER 31, 2018 39

Approval of Investment Advisory Contract and Other Agreements (Cont.)

and administrative services provided by PIMCO under the Supervision and Administration Agreement continue to increase. The Board considered PIMCO’s provision of supervisory and administrative services and its supervision of the Trust’s third party service providers to assure that these service providers continue to provide a high level of service relative to alternatives available in the market.

Ultimately, the Board concluded that the nature, extent and quality of the services provided by PIMCO has benefited, and will likely continue to benefit, the Portfolios and their shareholders.

3. INVESTMENT PERFORMANCE

The Board reviewed information from PIMCO concerning the Portfolios’ performance, as available, over short- and long-term periods ended March 31, 2018 and other performance data, as available, over short- and long-term periods ended June 30, 2018 (the “PIMCO Report”) and from Broadridge concerning the Portfolios’ performance, as available, over short- and long-term periods ended March 31, 2018 (the “Lipper Report”).

The Board considered information regarding both the short- and long-term investment performance of each Portfolio relative to its peer group and relevant benchmark index as provided to the Board in advance of each of its quarterly meetings throughout the year, including the PIMCO Report and Lipper Report, which were provided in advance of the August 20-21, 2018 meeting. The Trustees noted that many of the Portfolios outperformed their respective Lipper medians on a net-of-fees basis over the three-, five- and ten-year periods ended March 31, 2018. The Board also noted that, as of March 31, 2018, the Administrative Class of 72%, 35% and 73% of the Portfolios outperformed their respective Lipper category median on a net-of-fees basis over the three-, five- and ten-year periods, respectively. The Trustees considered that other classes of each Portfolio would have substantially similar performance to that of the Administrative Class of the relevant Portfolio on a relative basis because all of the classes are invested in the same portfolio of investments and that differences in performance among classes could principally be attributed to differences in the supervisory and administrative fees and distribution and servicing expenses of each class. The Board also considered that the investment objectives of certain of the Portfolios may not always be identical to those of the other funds in their respective peer groups and that the Lipper categories do not: separate funds based upon maturity or duration; account for the applicable Portfolios’ hedging strategies; distinguish between enhanced index and actively managed equity strategies; include as many subsets as the Portfolios offer (i.e., Portfolios may be placed in a “catch-all” Lipper category to which they do not properly belong); or account for certain fee waivers. The Board noted that, due to these differences, performance comparisons between certain of the Portfolios and their so-called peers may not be

particularly relevant to the consideration of Portfolio performance but found the comparative information supported its overall evaluation.

The Board noted that performance for a majority of the Portfolios has been mixed compared to their respective benchmark indexes over the five-year period ended March 31, 2018. The Board noted that, as of March 31, 2018, 70%, 23% and 92% of the Trust’s assets (based on Administrative Class performance) outperformed their respective benchmarks on a net-of-fees basis over the three-, five- and ten-year periods, respectively. The Board also discussed actions that have been taken by PIMCO to attempt to improve performance and took note of PIMCO’s plans to monitor performance going forward.

The Board considered PIMCO’s discussion of the intensive nature of managing bond funds, noting that it requires the management of a number of factors, including: varying maturities; prepayments; collateral management; counterparty management; pay-downs; credit and corporate events; workouts; derivatives; net new issuance in the bond market; and decreased market maker inventory levels. The Board noted that in addition to managing these factors, PIMCO must also balance risk controls and strategic positions in each portfolio it manages, including the Portfolios. Despite these challenges, the Board noted PIMCO’s ability to generate non-market correlated excess performance for its clients over time, including the Trust.

The Board ultimately concluded, within the context of all of its considerations in connection with the Agreements, that PIMCO’s performance record and process in managing the Portfolios indicates that its continued management is likely to benefit the Portfolios and their shareholders, and merits the approval of the renewal of the Agreements.

4. ADVISORY FEES, SUPERVISORY AND ADMINISTRATIVE FEES AND TOTAL EXPENSES

The Board considered that PIMCO seeks to price new funds and classes to scale. PIMCO reported to the Board that, in proposing fees for any Portfolio or class of shares, it considers a number of factors, including, but not limited to, the type and complexity of the services provided, the cost of providing services, the risk assumed by PIMCO in the development of products and the provision of services and the competitive marketplace for financial products. Fees charged to or proposed for different Portfolios for advisory services and supervisory and administrative services may vary in light of these various factors. The Board considered that portfolio pricing generally is not driven by comparison to passively-managed products.

In addition, PIMCO reported to the Board that it periodically reviews the fees charged to the Portfolios. The Board noted that, based upon this review, PIMCO may propose advisory fee or supervisory and administrative fee changes where (i) a Portfolio’s long-term performance warrants additional consideration; (ii) there is a notable aid to market

40 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

position; (iii) a Portfolio’s fee does not reflect the current level of supervision or administrative fees provided to the Portfolio; or (iv) PIMCO would like to change a Portfolio’s overall strategic positioning.

The Board reviewed the advisory fees, supervisory and administrative fees and total expenses of the Portfolios (each as a percentage of average net assets) and compared such amounts with the average and median fee and expense levels of other similar funds. The Board also reviewed information relating to the sub-advisory fees paid to Research Affiliates with respect to applicable Portfolios, taking into account that PIMCO compensates Research Affiliates from the advisory fees paid by such Portfolios to PIMCO. With respect to advisory fees, the Board reviewed data from Broadridge that compared the average and median advisory fees of other funds in a “Peer Group” of comparable funds, as well as the universe of other similar funds. The Board noted that a number of Portfolios have total expense ratios that fall below the average and median expense ratios in their Peer Group and Lipper universe. In addition, the Board considered fee waivers in place for certain of the Portfolios and also noted the fee waivers in place with respect to the advisory fee and supervisory and administrative fee that might result from investments by applicable Portfolios in their respective wholly-owned subsidiaries. The Board also considered that PIMCO reviews the Portfolios’ fee levels and carefully considers changes where appropriate.

The Board also reviewed data comparing the Portfolios’ advisory fees to the standard and negotiated fee rates PIMCO charges to separate accounts, collective investment trusts and sub-advised clients with similar investment strategies. In cases where the fees for other clients were lower than those charged to the Portfolios, the Trustees noted that the differences in fees were attributable to various factors, including, but not limited to, differences in the advisory and other services provided by PIMCO to the Portfolios, differences in the number or extent of the services provided by PIMCO to the Portfolios, the manner in which similar portfolios may be managed, different requirements with respect to liquidity management and the implementation of other regulatory requirements, and the fact that separate accounts may have other contractual arrangements or arrangements across PIMCO strategies that justify different levels of fees. The Board considered that, with respect to collective investment trusts, PIMCO performs fewer or less extensive services because collective investment trusts are generally exempt from SEC regulation; investors in a collective investment trust may receive shareholder services from a trustee bank, rather than PIMCO; collective investment trusts have less regulatory disclosure; and the management structure of collective investment trusts differs from that of funds. The Trustees also considered that PIMCO faces increased entrepreneurial, legal and regulatory risk in sponsoring and managing mutual funds and ETFs as compared to separate accounts, external sub-advised funds or other investment products.

Regarding advisory fees charged by PIMCO in its capacity as sub-adviser to third party/unaffiliated funds, the Trustees took into account that such fees may be lower than the fees charged by PIMCO to serve as adviser to the Portfolios. The Trustees also took into account that there are various reasons for any such differences in fees, including, but not limited to, the fact that PIMCO may be subject to varying levels of entrepreneurial risk and regulatory requirements, differing legal liabilities on a contract-by-contract basis and different servicing requirements when PIMCO does not serve as the sponsor of a fund and is not principally responsible for all aspects of a fund’s investment program and operations as compared to when PIMCO serves as investment adviser and sponsor.

The Board considered the Portfolios’ supervisory and administrative fees, comparing them to similar funds in the report supplied by Broadridge. The Board also considered that as the Portfolios’ business has become increasingly complex and the number of Portfolios has grown over time, PIMCO has provided an increasingly broad array of fund supervisory and administrative functions. In addition, the Board considered the Trust’s unified fee structure, under which the Trust pays for the supervisory and administrative services it requires for one set fee. In return for this unified fee, PIMCO provides or procures supervisory and administrative services and bears the costs of various third party services required by the Portfolios, including audit, custodial, portfolio accounting, legal, transfer agency, sub-accounting and printing costs. The Board further considered that many other funds pay for comparable services separately, and thus it is difficult to directly compare the Trust’s unified supervisory and administrative fees with the fees paid by other funds for administrative services alone. The Board also considered that the unified supervisory and administrative fee leads to Portfolio fees that are fixed over the contract period, rather than variable. The Board noted that, although the unified fee structure does not have breakpoints, it implicitly reflects economies of scale by fixing the absolute level of Portfolio fees at competitive levels over the contract period even if the Portfolios’ operating costs rise when assets remain flat or decrease. Other factors the Board considered in assessing the unified fee include PIMCO’s approach of pricing Portfolios to scale at inception and reinvesting in other important areas of the business that support the Portfolios. The Board considered that the Portfolios’ unified fee structure meant that fees were not impacted by recent outflows in certain Portfolios, unlike funds without a unified fee structure, which may see increased expense ratios when fixed costs, such as service provider costs, are passed through to a smaller asset base. The Board considered historical advisory and supervisory and administrative fee reductions implemented for different Portfolios and classes, noting that the unified fee can be increased or decreased in subsequent contractual periods and is subject to the periodic reviews discussed above. The Board noted that, with few exceptions, PIMCO

ANNUAL REPORT DECEMBER 31, 2018 41

Approval of Investment Advisory Contract and Other Agreements (Cont.)

has generally maintained Portfolio fees at the same level as implemented when the unified fee was adopted, and has reduced fees for a number of Portfolios in prior years. The Board concluded that the Portfolios’ supervisory and administrative fees were reasonable in relation to the value of the services provided, including the services provided to different classes of shareholders, and that the expenses assumed contractually by PIMCO under the Supervision and Administration Agreement represent, in effect, a cap on overall Portfolio fees during the contractual period, which is beneficial to the Portfolios and their shareholders.

The Board considered the Portfolios’ total expenses and discussed with PIMCO those Portfolios and/or classes of Portfolios that had above median total expenses. The Board noted that many of the Portfolios are unique products that have few peers, if any, and cannot easily be grouped with comparable funds. Upon comparing the Portfolios’ total expenses to other funds in the “Peer Groups” provided by Broadridge, the Board found total expenses of each Portfolio to be reasonable.

The Trustees also considered the advisory fees charged to the Portfolios that operate as funds of funds (the “Funds of Funds”) and the advisory services provided in exchange for such fees. The Trustees determined that such services were in addition to the advisory services provided to the underlying funds in which the Funds of Funds may invest and, therefore, such services were not duplicative of the advisory services provided to the underlying funds. The Board also considered the various fee waiver agreements in place for the Funds of Funds. The Board noted that PIMCO is continuing waivers for these Funds of Funds, as well as for certain other Portfolios of the Trust.

Based on the information presented by PIMCO, Research Affiliates and Broadridge, members of the Board determined, in the exercise of their business judgment, that the level of the advisory fees and supervisory and administrative fees charged by PIMCO under the Agreements, as well as the total expenses of each Portfolio, after the proposals to decrease the management fee, are reasonable.

5. ADVISER COSTS, LEVEL OF PROFITS AND ECONOMIES OF SCALE

The Board reviewed information regarding PIMCO’s costs of providing services to the Funds as a whole, as well as the resulting level of profits to PIMCO under both the adjusted asset profitability method and the profit and loss profitability method, which were each utilized to calculate profitability. To the extent applicable, the Board also reviewed information regarding the portion of a Portfolio’s advisory fee retained by PIMCO, following the payment of sub-advisory fees to Research Affiliates, with respect to the Portfolio. Additionally, the Board noted that profit margins with respect to the Trust shows that the Trust is profitable, although less so than PIMCO Funds due to payments made

by PIMCO to participating insurance companies. The Board further noted PIMCO’s engagement of a third party to review and to make recommendations regarding PIMCO’s processes supporting its profitability estimation materials. The Board also noted that it had received information regarding the structure and manner in which PIMCO’s investment professionals were compensated, and PIMCO’s view of the relationship of such compensation to the attraction and retention of quality personnel. The Board considered PIMCO’s need to invest in global infrastructure, technology capabilities, risk management processes and qualified personnel to reinforce and offer new services and to accommodate changing regulatory requirements.

With respect to potential economies of scale, the Board noted that PIMCO shares the benefits of economies of scale with the Portfolios and their shareholders in a number of ways, including investing in portfolio and trade operations management, firm technology, middle and back office support, legal and compliance, and fund administration logistics, senior management supervision, governance and oversight of those services, and through fee reductions or waivers, the pricing of Portfolios to scale from inception, and the enhancement of services provided to the Portfolios in return for fees paid. The Board reviewed the history of the Portfolios’ fee structure. The Board considered that the Portfolios’ unified fee rates had been set competitively and/or priced to scale from inception, had been held steady during the contractual period at that scaled competitive rate for most Portfolios as assets grew, or as assets declined in the case of some Portfolios, and continued to be competitive compared with peers. The Board also considered that the unified fee is a transparent means of informing a Portfolio’s shareholders of the fees associated with the Portfolio, and that the Portfolio bears certain expenses that are not covered by the advisory fee or the unified fee. The Board further considered the challenges that arise when managing large funds, which can result in certain “diseconomies” of scale and noted that PIMCO has continued to reinvest in many areas of the business to support the Portfolios.

The Trustees considered that the unified fee has provided inherent economies of scale because a Portfolio maintains competitive fixed fees over the annual contract period even if the particular Portfolio’s assets decline and/or operating costs rise. The Trustees further considered that, in contrast, breakpoints may be a proxy for charging higher fees on lower asset levels and that when a fund’s assets decline, breakpoints may reverse, which causes expense ratios to increase. The Trustees also considered that, unlike the Portfolios’ unified fee structure, funds with “pass through” administrative fee structures may experience increased expense ratios when fixed dollar fees are charged against declining fund assets. The Trustees also considered that the unified fee protects shareholders from a rise in operating costs that may result from, among other things, PIMCO’s investments in various business enhancements and infrastructure, including those referenced above. The Trustees noted that PIMCO’s investments in these areas are extensive.

42 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

The Board concluded that the Portfolios’ cost structures were reasonable and that PIMCO is appropriately sharing economies of scale, if any, through the Portfolios’ unified fee structure, generally pricing Portfolios to scale at inception and reinvesting in its business to provide enhanced and expanded services to the Portfolios and their shareholders.

6. ANCILLARY BENEFITS

The Board considered other benefits realized by PIMCO and its affiliates as a result of PIMCO’s relationship with the Trust. Such benefits may include possible ancillary benefits to PIMCO’s institutional investment management business due to the reputation and market penetration of the Trust or third party service providers’ relationship-level fee concessions, which decrease fees paid by PIMCO. The Board also considered that affiliates of PIMCO provide distribution and/or shareholder services to the Portfolios and their shareholders, for which they may be compensated through distribution and servicing fees paid pursuant to the Portfolios’ Rule 12b-1 plans or otherwise. The Board reviewed PIMCO’s soft dollar policies and procedures, noting that while PIMCO has the authority to receive the benefit of research provided by broker-dealers executing portfolio transactions on behalf of the Portfolios, it has adopted a policy not to enter into contractual soft dollar arrangements.

7. CONCLUSIONS

Based on their review, including their comprehensive consideration and evaluation of each of the broad factors and information summarized above, the Independent Trustees and the Board as a whole concluded that the nature, extent and quality of the services rendered to the Portfolios by PIMCO and Research Affiliates supported the renewal of the Agreements and the Asset Allocation Agreement. The Independent Trustees and the Board as a whole concluded that the Agreements and the Asset Allocation Agreement continued to be fair and reasonable to the Portfolios and their shareholders, that the Portfolios’ shareholders received reasonable value in return for the fees paid to PIMCO by the Portfolios under the Agreements and the fees paid to Research Affiliates by PIMCO under the Asset Allocation Agreement, and that the renewal of the Agreements and the Asset Allocation Agreement was in the best interests of the Portfolios and their shareholders.

ANNUAL REPORT DECEMBER 31, 2018 43

General Information

Investment Adviser and Administrator

Pacific Investment Management Company LLC

650 Newport Center Drive

Newport Beach, CA 92660

Asset Allocation Sub-Adviser

Research Affiliates, LLC

620 Newport Center Drive, Suite 900

Newport Beach, CA 92660

Distributor

PIMCO Investments LLC

1633 Broadway

New York, NY 10019

Custodian

State Street Bank and Trust Company

801 Pennsylvania Avenue

Kansas City, MO 64105

Transfer Agent

DST Asset Manager Solutions, Inc.

430 W 7th Street STE 219024

Kansas City, MO 64105-1407

Legal Counsel

Dechert LLP

1900 K Street, N.W.

Washington, D.C. 20006

Independent Registered Public Accounting Firm

PricewaterhouseCoopers LLP

1100 Walnut Street, Suite 1300

Kansas City, MO 64106

This report is submitted for the general information of the shareholders of the PIMCO Variable Insurance Trust.

pimco.com/pvit

PVIT02AR_123118

PIMCO VARIABLE INSURANCE TRUST

Annual Report

December 31, 2018

PIMCO All Asset Portfolio

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, you may not be receiving paper copies of the Portfolio’s shareholder reports from the insurance company that offers your contract unless you specifically request paper copies from the insurance company or from your financial intermediary. Instead, the shareholder reports will be made available on a website, and the insurance company will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the insurance company electronically by following the instructions provided by the insurance company.

You may elect to receive all future reports in paper free of charge from the insurance company. You should contact the insurance company if you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all portfolio companies available under your contract at the insurance company.

Table of Contents

	Page
Chairman’s Letter		2
Important Information About the PIMCO All Asset Portfolio		4
Portfolio Summary		6
Expense Example		7
Financial Highlights		8
Statement of Assets and Liabilities		10
Statement of Operations		11
Statements of Changes in Net Assets		12
Schedule of Investments		13
Notes to Financial Statements		14
Report of Independent Registered Public Accounting Firm		28
Glossary		29
Federal Income Tax Information		30
Management of the Trust		31
Privacy Policy		33
Approval of Investment Advisory Contract and Other Agreements		34

This material is authorized for use only when preceded or accompanied by the current PIMCO Variable Insurance Trust (the “Trust”) prospectus for the Portfolio. (The variable product prospectus may be obtained by contacting your Investment Consultant.)

Chairman’s Letter

Dear PIMCO Variable Insurance Trust Shareholder,

Following this letter is the PIMCO Variable Insurance Trust Annual Report, which covers the 12-month reporting period ended December 31, 2018. On the subsequent pages you will find specific details regarding investment results and discussion of the factors that most affected performance during the reporting period.

For the 12-month reporting period ended December 31, 2018

The U.S. economy continued to expand during the reporting period. Looking back, U.S. gross domestic product (“GDP”) grew at an annual pace of 2.2% during the first quarter of 2018. During the second quarter of 2018, GDP growth rose to an annual pace of 4.2%, the strongest since the third quarter of 2014. GDP then expanded at an annual pace of 3.4% during the third quarter of the year. Finally, the Commerce Department’s initial reading for fourth-quarter 2018 GDP has been delayed due to the partial government shutdown.

The Federal Reserve (the “Fed”) continued to normalize monetary policy during the reporting period. During its meetings that concluded in March, June, September and December 2018, the Fed raised the federal funds rate in 0.25% increments. The Fed’s December rate hike pushed the federal funds rate to a range between 2.25% and 2.50%. In addition, the Fed continued to reduce its balance sheet during the reporting period.

Economic activity outside the U.S. initially accelerated during the reporting period, but moderated as it progressed. Against this backdrop, the European Central Bank (the “ECB”) and the Bank of Japan largely maintained their highly accommodative monetary policies, while other central banks took a more hawkish stance. The Bank of England raised rates at its meeting in August 2018 and the Bank of Canada raised rates twice during the reporting period. Meanwhile, the ECB ended its quantitative easing program in December 2018, but indicated that it does not expect to raise interest rates “at least through the summer of 2019.”

The U.S. Treasury yield curve flattened during the reporting period as short-term rates moved up more than longer-term rates. In our view, the increase in rates at the short end of the yield curve was mostly due to Fed interest rate increases. The yield on the benchmark 10-year U.S. Treasury note was 2.69% at the end of the reporting period, up from 2.40% on December 31, 2017. U.S. Treasuries, as measured by the Bloomberg Barclays U.S. Treasury Index, returned 0.86% over the 12 months ended December 31, 2018. Meanwhile, the Bloomberg Barclays U.S. Aggregate Bond Index, a widely used index of U.S. investment grade bonds, returned 0.01% over the period. Riskier fixed income asset classes, including high yield corporate bonds and emerging market debt, generated weak results versus the broad U.S. market. The ICE BofAML U.S. High Yield Index returned -2.27% over the reporting period, whereas emerging market external debt, as represented by the JPMorgan Emerging Markets Bond Index (EMBI) Global, returned -4.61% over the reporting period. Emerging market local bonds, as represented by the JPMorgan Government Bond Index-Emerging Markets Global Diversified Index (Unhedged), returned -6.21% over the period.

Global equities produced poor results during the reporting period. U.S. equities moved sharply higher over the first nine months of the period. We believe this rally was driven by a number of factors, including corporate profits that often exceeded expectations. However, U.S. equities fell sharply during the fourth quarter of 2018. We believe this was triggered by a number of factors, including signs of moderating global growth, concerns over future Fed rate hikes, the ongoing trade dispute between the U.S. and China and the partial U.S. government shutdown. All told, U.S. equities, as represented by the S&P 500 Index, returned -4.38% during the reporting period. Elsewhere, emerging market equities, as measured by the MSCI Emerging Markets Index, returned -14.58% during the reporting period, whereas global equities, as represented by the MSCI World Index, returned -8.71%. Elsewhere, Japanese equities, as represented by the Nikkei 225 Index (in JPY), returned -10.39% during the reporting period and European equities, as represented by the MSCI Europe Index (in EUR), returned -10.57%.

Commodity prices fluctuated and generally declined during the reporting period. When the reporting period began, West Texas crude oil was approximately $65 a barrel, but by the end it was roughly $45 a barrel. This was driven in

2 PIMCO VARIABLE INSURANCE TRUST

part by increased supply and declining global demand. Elsewhere, gold and copper prices also moved lower during the reporting period.

Finally, during the reporting period the foreign exchange markets experienced periods of volatility, due in part to signs of decoupling economic growth and central bank policies, along with a number of geopolitical events. The U.S. dollar produced mixed results against other major currencies during the reporting period. For example, the U.S. dollar appreciated 4.71% and 5.90% versus the euro and the British pound, respectively, whereas the U.S. dollar depreciated 2.66% versus the yen during the reporting period.

Thank you for the assets you have placed with us. We deeply value your trust, and we will continue to work diligently to meet your broad investment needs.

Sincerely,     Brent R. Harris Chairman of the Board,
PIMCO Variable Insurance Trust  

Past performance is no guarantee of future results. Unless otherwise noted, index returns reflect the reinvestment of income distributions and capital gains, if any, but do not reflect fees, brokerage commissions or other expenses of investing. It is not possible to invest directly in an unmanaged index.

ANNUAL REPORT DECEMBER 31, 2018 3

Important Information About the PIMCO All Asset Portfolio

PIMCO Variable Insurance Trust (the “Trust”) is an open-end management investment company that includes the PIMCO All Asset Portfolio (the “Portfolio”). The Portfolio is only available as a funding vehicle under variable life insurance policies or variable annuity contracts issued by insurance companies (“Variable Contracts”). Individuals may not purchase shares of the Portfolio directly. Shares of the Portfolio also may be sold to qualified pension and retirement plans outside of the separate account context.

The Portfolio is a “fund of funds,” which is a term used to describe mutual funds that pursue their investment objective by investing in other mutual funds instead of investing directly in stocks or bonds of other issuers. Under normal circumstances, the Portfolio may invest substantially all of its assets in the least expensive class of shares of any actively managed or smart beta funds (including mutual funds or exchange-traded funds) of PIMCO Funds, PIMCO ETF Trust or PIMCO Equity Series, each an affiliated open-end investment company, except other funds of funds (collectively, “Underlying PIMCO Funds”). The cost of investing in these Funds will generally be higher than the cost of investing in a mutual fund that invests directly in individual stocks and bonds.

We believe that equity funds and bond funds have an important role to play in a well-diversified portfolio. It is important to note, however, that equity funds and bond funds are subject to notable risks.

Among other things, equity and equity-related securities may decline in value due to both real and perceived general market, economic, and industry conditions. The values of equity securities, such as common stocks and preferred securities, have historically risen and fallen in periodic cycles and may decline due to general market conditions, which are not specifically related to a particular company, such as real or perceived adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment generally. Equity securities may also decline due to factors that affect a particular industry or industries, such as labor shortages, increased production costs and competitive conditions within an industry. In addition, the value of an equity security may decline for a number of reasons that directly relate to the issuer, such as management performance, financial leverage and reduced demand for the issuer’s goods or services, as well as the historical and prospective earnings of the issuer and the value of its assets. Different types of equity securities may react differently to these developments and a change in the financial condition of a single issuer may affect securities markets as a whole.

During a general downturn in the securities markets, multiple asset classes, including equity securities, may decline in value simultaneously. The market price of equity securities owned by the Portfolio may go up or down, sometimes rapidly or unpredictably. Equity securities generally have greater price volatility than fixed income securities and common stocks generally have the greatest appreciation and depreciation potential of all corporate securities.

Bond funds and fixed income securities are subject to a variety of risks, including interest rate risk, liquidity risk and market risk. In an environment where interest rates may trend upward, rising rates would negatively impact the performance of most bond funds, and fixed income securities and other instruments held by the Underlying PIMCO Funds are likely to decrease in value. A wide variety of factors can cause interest rates to rise (e.g., central bank monetary policies, inflation rates, general economic conditions, etc.). In addition, changes in interest rates can be sudden and unpredictable, and there is no guarantee that management will anticipate such movement accurately. The Portfolio may lose money as a result of movements in interest rates.

As of the date of this report, interest rates in the U.S. and many parts of the world, including certain European countries, are at or near historically low levels. Thus, the Portfolio currently faces a heightened level of interest rate risk, especially since the Fed has ended its quantitative easing program and has begun, and may continue, to raise interest rates. To the extent the Fed continues to raise interest rates, there is a risk that rates across the financial system may rise. Further, while bond markets have steadily grown over the past three decades, dealer inventories of corporate bonds are near historic lows in relation to market size. As a result, there has been a significant reduction in the ability of dealers to “make markets.”

Bond funds and individual bonds with a longer duration (a measure used to determine the sensitivity of a security’s price to changes in interest rates) tend to be more sensitive to changes in interest rates, usually making them more volatile than securities or funds with shorter durations. All of the factors mentioned above, individually or collectively, could lead to increased volatility and/or lower liquidity in the fixed income markets, or negatively impact the Portfolio’s performance, or cause the Portfolio to incur losses. As a result, the Portfolio may experience increased shareholder redemptions, which among other things, could further reduce the net assets of the Portfolio.

The Portfolio may be subject to various risks as described in the Portfolio’s prospectus and in the Principal Risks in the Notes to Financial Statements.

The geographical classification of foreign (non-U.S.) securities in this report are classified by the country of incorporation of a holding. In certain instances, a security’s country of incorporation may be different from its country of economic exposure.

The United States presidential administration’s enforcement of tariffs on goods from other countries, with a focus on China, has contributed to international trade tensions and may impact portfolio securities held by the Underlying PIMCO Funds.

The United Kingdom’s decision to leave the European Union may impact Portfolio returns. This decision may cause substantial volatility in foreign exchange markets, lead to weakness in the exchange rate of

4 PIMCO VARIABLE INSURANCE TRUST

the British pound, result in a sustained period of market uncertainty, and destabilize some or all of the other European Union member countries and/or the Eurozone.

On the Portfolio Summary page in this Shareholder Report, the Average Annual Total Return table and Cumulative Returns chart measure performance assuming that any dividend and capital gain distributions were reinvested. The Cumulative Returns chart reflects only Administrative Class performance. Performance may vary by share class based on each class’s expense ratios. The Portfolio measures its performance against at least one broad-based securities market index (“benchmark index”). The benchmark index does not take into account

fees, expenses, or taxes. The Portfolio’s past performance, before and after taxes, is not necessarily an indication of how the Portfolio will perform in the future. There is no assurance that the Portfolio, even if the Portfolio has experienced high or unusual performance for one or more periods, will experience similar levels of performance in the future. High performance is defined as a significant increase in either 1) the Portfolio’s total return in excess of that of the Portfolio’s benchmark between reporting periods or 2) the Portfolio’s total return in excess of the Portfolio’s historical returns between reporting periods. Unusual performance is defined as a significant change in the Portfolio’s performance as compared to one or more previous reporting periods.

The following table discloses the inception dates of the Portfolio and its respective share classes along with the Portfolio’s diversification status as of period end:

Portfolio Name

Portfolio Inception

Institutional Class

Class M

Administrative Class

Advisor Class

Diversification Status

PIMCO All Asset Portfolio

04/30/03

01/31/06

04/30/04

04/30/03

04/30/04

Diversified

An investment in the Portfolio is not a bank deposit and is not guaranteed or insured by the Federal Deposit Insurance Corporation (“FDIC”) or any other government agency. It is possible to lose money on investments in the Portfolio.

The Trustees are responsible generally for overseeing the management of the Trust. The Trustees authorize the Trust to enter into service agreements with the Adviser, the Distributor, the Administrator and other service providers in order to provide, and in some cases authorize service providers to procure through other parties, necessary or desirable services on behalf of the Trust and the Portfolio. Shareholders are not parties to or third-party beneficiaries of such service agreements. Neither this Portfolio’s prospectus nor summary prospectus, the Trust’s Statement of Additional Information (“SAI”), any contracts filed as exhibits to the Trust’s registration statement, nor any other communications, disclosure documents or regulatory filings (including this report) from or on behalf of the Trust or the Portfolio creates a contract between or among any shareholder of the Portfolio, on the one hand, and the Trust, the Portfolio, a service provider to the Trust or the Portfolio, and/or the Trustees or officers of the Trust, on the other hand. The Trustees (or the Trust and its officers, service providers or other delegates acting under authority of the Trustees) may amend the most recent prospectus or use a new prospectus, summary prospectus or SAI with respect to the Portfolio or the Trust, and/or amend, file and/or issue any other communications, disclosure documents or regulatory filings, and may amend or enter into any contracts to which the Trust or the Portfolio is a party, and interpret the investment objective(s), policies, restrictions and contractual provisions applicable to the Portfolio, without shareholder input or approval, except in circumstances in which shareholder approval is specifically required by law (such as changes to fundamental investment policies) or where a shareholder approval requirement is specifically disclosed in the Trust’s then-current prospectus or SAI.

PIMCO has adopted written proxy voting policies and procedures (“Proxy Policy”) as required by Rule 206(4)-6 under the Investment Advisers Act of 1940, as amended. The Proxy Policy has been adopted by the Trust as the policies and procedures that PIMCO will use when voting proxies on behalf of the Portfolio. A description of the policies and procedures that PIMCO uses to vote proxies relating to portfolio securities of the Portfolio, and information about how the Portfolio voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, are available without charge, upon request, by calling the Trust at (888) 87-PIMCO, on the Portfolio’s website at www.pimco.com/pvit and on the Securities and Exchange Commission’s (“SEC”) website at www.sec.gov.

The Trust files a complete schedule of the Portfolio’s holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. A copy of the Portfolio’s Form N-Q is available on the SEC’s website at www.sec.gov. A copy of the Portfolio’s Form N-Q is also available without charge, upon request, by calling the Trust at (888) 87-PIMCO and on the Portfolio’s website at www.pimco.com/pvit.

The SEC adopted a rule that, beginning in 2021, generally will allow shareholder reports to be delivered to investors by providing access to such reports online free of charge and by mailing a notice that the report is electronically available. Pursuant to the rule, investors may still elect to receive a complete shareholder report in the mail. Instructions for electing to receive paper copies of the Portfolio’s shareholder reports going forward may be found on the front cover of this report.

The SEC adopted amendments to certain disclosure requirements relating to open-end investment companies’ liquidity risk management programs. Effective December 1, 2019, large fund complexes will be required to include in their shareholder reports a discussion of their liquidity risk management programs’ operations over the past year.

ANNUAL REPORT DECEMBER 31, 2018 5

PIMCO All Asset Portfolio

Cumulative Returns Through December 31, 2018

$10,000 invested at the end of the month when the Portfolio’s Administrative Class commenced operations.

Top 10 Holdings as of 12/31/2018^1§

PIMCO Emerging Markets Currency and Short-Term Investments Fund	12.0%
PIMCO RAE PLUS EMG Fund	11.9%
PIMCO RAE Emerging Markets Fund	6.6%
PIMCO RAE Worldwide Long/Short PLUS Fund	6.2%
PIMCO RAE Fundamental Advantage PLUS Fund	5.8%
PIMCO Income Fund	5.7%
PIMCO Emerging Local Bond Fund	5.7%
PIMCO Low Duration Fund	5.5%
PIMCO Extended Duration Fund	4.5%
PIMCO RealEstateRealReturn Strategy Fund	4.0%

¹  % of Investments, at value.

^§  Top 10 Holdings and % of Investments exclude securities sold short, financial derivative instruments and short-term instruments, if any.

Average Annual Total Return for the period ended December 31, 2018
		1 Year		5 Years		10 Years		Inception≈
	PIMCO All Asset Portfolio Institutional Class		(5.20)%		2.26%		6.17%		4.32%
	PIMCO All Asset Portfolio Class M		(5.59)%		1.81%		5.70%		4.72%
	PIMCO All Asset Portfolio Administrative Class		(5.41)%		2.09%		6.01%		5.29%
	PIMCO All Asset Portfolio Advisor Class		(5.45)%		2.00%		5.91%		4.93%
	Bloomberg Barclays U.S. TIPS: 1-10 Year Index±		(0.25)%		1.20%		3.06%		3.41%¨
	Consumer Price Index + 500 Basis Points±±		6.95%		6.49%		6.80%		7.07%¨

All Portfolio returns are net of fees and expenses.

≈ For class inception dates please refer to the Important Information.

^¨ Average annual total return since 04/30/2003.

^± Bloomberg Barclays U.S. TIPS: 1-10 Year Index is an unmanaged market index comprised of U.S. Treasury Inflation-Protected Securities having a maturity of at least 1 year and less than 10 years.

^±± CPI + 500 Basis Points benchmark is created by adding 5% to the annual percentage change in the Consumer Price Index (CPI). This index reflects seasonally adjusted returns. The Consumer Price Index is an unmanaged index representing the rate of inflation of the U.S. consumer prices as determined by the U.S. Bureau of Labor Statistics. There can be no guarantee that the CPI or other indexes will reflect the exact level of inflation at any given time.

It is not possible to invest directly in an unmanaged index.

Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. The Portfolio’s performance does not reflect the deduction of additional charges and expenses imposed in connection with investing in Variable Contracts, which will reduce returns. Differences in the Portfolio’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the prices of individual positions (which may be sourced from different pricing vendors or other sources) used by the Portfolio and the index. For performance current to the most recent month-end, visit www.pimco.com/pvit or via (888) 87-PIMCO.

The Portfolio’s total annual operating expense ratio in effect as of period end which includes the Acquired Fund Fees and Expenses (Underlying PIMCO Fund Expenses), were 1.275% for Institutional Class shares, 1.725% for Class M shares, 1.425% for Administrative Class shares, and 1.525% for Advisor Class shares. Details regarding any changes to the Portfolio’s operating expenses, subsequent to period end, can be found in the Portfolio’s current prospectus, as supplemented.

Investment Objective and Strategy Overview

PIMCO All Asset Portfolio seeks maximum real return, consistent with preservation of real capital and prudent investment management, by investing under normal circumstance substantially all of its assets in the least expensive class of shares of any actively managed or smart beta funds (including mutual funds or exchange-traded funds) of PIMCO Funds, PIMCO ETF Trust or PIMCO Equity Series, each an affiliated open-end investment company, except other funds of funds (collectively, “Underlying PIMCO Funds”) and does not invest directly in stocks or bonds of other issuers. Research Affiliates, LLC, the Portfolio’s asset allocation sub-adviser, determines how the Portfolio allocates and reallocates its assets among the Underlying PIMCO Funds. In doing so, the asset allocation sub-adviser seeks concurrent exposure to a broad spectrum of asset classes. In addition to investing in the Underlying PIMCO Funds, at the discretion of PIMCO and without shareholder approval, the Portfolio may invest in additional Underlying PIMCO Funds created in the future. Portfolio strategies may change from time to time. Please refer to the Portfolio’s current prospectus for more information regarding the Portfolio’s strategy.

Portfolio Insights

The following affected performance during the reporting period:

» Exposure to emerging market equities, primarily through the PIMCO RAE PLUS EMG Fund, PIMCO RAE Low Volatility PLUS EMG Fund, and the PIMCO RAE Emerging Markets Fund, detracted from performance, as these Underlying PIMCO Funds lost value.

» Exposure to developed ex-U.S. equities, primarily through the PIMCO RAE PLUS International Fund, PIMCO RAE Low Volatility PLUS International Fund, and PIMCO StocksPLUS^® International Fund (USD Hedged), detracted from performance, as the Underlying PIMCO Funds lost value.

» Exposure to emerging market bonds and currencies, primarily through the PIMCO Emerging Markets Local Currency and Bond Fund and the PIMCO Emerging Markets Currency and PIMCO Short-Term Investment Fund, detracted from performance, as the Underlying PIMCO Funds lost value.

» Exposure to commodities and Real Estate Investment Trusts, primarily through the PIMCO CommoditiesPLUS^® Strategy Fund and PIMCO RealEstateRealReturn Strategy Fund, detracted from performance, as the Underlying PIMCO Funds posted negative returns.

» Allocations to U.S. long maturity bond strategies, primarily through the PIMCO Long-Term U.S. Government Fund and the PIMCO Extended Duration Fund, detracted from performance, as these Underlying PIMCO Funds lost value.

6 PIMCO VARIABLE INSURANCE TRUST

Expense Example PIMCO All Asset Portfolio

Example

As a shareholder of the Portfolio, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees (if applicable), and other Portfolio expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in the Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds.

The Expense Example does not reflect any fees or other expenses imposed by the Variable Contracts. If it did, the expenses reflected in the Expense Example would be higher. The Example is based on an investment of $1,000 invested at the beginning of the period and held from July 1, 2018 to December 31, 2018 unless noted otherwise in the table and footnotes below.

Actual Expenses

The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60), then multiply the result by the number in the appropriate row for your share class, in the column titled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other portfolios. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other portfolios.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information under the heading “Hypothetical (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different portfolios. In addition, if these transactional costs were included, your costs would have been higher.

Expense ratios may vary period to period because of various factors, such as an increase in expenses that are not covered by the management fees such as fees and expenses of the independent trustees and their counsel, extraordinary expenses and interest expense.

	Actual						Hypothetical (5% return before expenses)
	Beginning Account Value (07/01/18)		Ending Account Value (12/31/18)		Expenses Paid During Period*		Beginning Account Value (07/01/18)		Ending Account Value (12/31/18)		Expenses Paid During Period*		Net Annualized Expense Ratio**
Institutional Class	$	1,000.00	$	969.70	$	1.51	$	1,000.00	$	1,023.67	$	1.56		0.31	%
Class M		1,000.00		967.40		3.74		1,000.00		1,021.40		3.85		0.76
Administrative Class		1,000.00		967.50		2.26		1,000.00		1,022.91		2.32		0.46
Advisor Class		1,000.00		967.30		2.75		1,000.00		1,022.41		2.83		0.56

* Expenses Paid During Period are equal to the net annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Overall fees and expenses of investing in the Portfolio will be higher because the example does not reflect variable contract fees and expenses.

** Net Annualized Expense Ratio is reflective of any applicable contractual fee waivers and/or expense reimbursements or voluntary fee waivers. Details regarding fee waivers, if any, can be found in Note 8, Fees and Expenses, in the Notes to Financial Statements.

ANNUAL REPORT DECEMBER 31, 2018 7

Financial Highlights PIMCO All Asset Portfolio

			Investment Operations								Less Distributions(b)
Selected Per Share Data for the Year Ended^:	Net Asset Value Beginning of Year		Net Investment Income (Loss)(a)		Net Realized/ Unrealized Gain (Loss)			Total			From Net Investment Income			From Net Realized Capital Gain		Tax Basis Return of Capital			Total
Institutional Class
12/31/2018	$	10.97	$	0.51	$	(1.07	)	$	(0.56	)	$	(0.36	)	$	0.00	$	0.00		$	(0.36	)
12/31/2017		10.11		0.58		0.80			1.38			(0.50	)		0.00		(0.02	)		(0.52	)
12/31/2016		9.19		0.24		0.96			1.20			(0.26	)		0.00		(0.02	)		(0.28	)
12/31/2015		10.47		0.33		(1.26	)		(0.93	)		(0.34	)		0.00		(0.01	)		(0.35	)
12/31/2014		10.98		0.47		(0.38	)		0.09			(0.60	)		0.00		0.00			(0.60	)
Class M
12/31/2018		11.04		0.50		(1.11	)		(0.61	)		(0.31	)		0.00		0.00			(0.31	)
12/31/2017		10.18		0.46		0.87			1.33			(0.45	)		0.00		(0.02	)		(0.47	)
12/31/2016		9.25		0.19		0.97			1.16			(0.21	)		0.00		(0.02	)		(0.23	)
12/31/2015		10.53		0.30		(1.27	)		(0.97	)		(0.30	)		0.00		(0.01	)		(0.31	)
12/31/2014		11.04		0.42		(0.38	)		0.04			(0.55	)		0.00		0.00			(0.55	)
Administrative Class
12/31/2018		10.85		0.48		(1.06	)		(0.58	)		(0.34	)		0.00		0.00			(0.34	)
12/31/2017		10.01		0.47		0.87			1.34			(0.48	)		0.00		(0.02	)		(0.50	)
12/31/2016		9.10		0.22		0.95			1.17			(0.24	)		0.00		(0.02	)		(0.26	)
12/31/2015		10.36		0.32		(1.24	)		(0.92	)		(0.33	)		0.00		(0.01	)		(0.34	)
12/31/2014		10.88		0.45		(0.39	)		0.06			(0.58	)		0.00		0.00			(0.58	)
Advisor Class
12/31/2018		10.97		0.47		(1.06	)		(0.59	)		(0.33	)		0.00		0.00			(0.33	)
12/31/2017		10.12		0.47		0.87			1.34			(0.47	)		0.00		(0.02	)		(0.49	)
12/31/2016		9.19		0.21		0.97			1.18			(0.23	)		0.00		(0.02	)		(0.25	)
12/31/2015		10.47		0.31		(1.26	)		(0.95	)		(0.32	)		0.00		(0.01	)		(0.33	)
12/31/2014		10.98		0.43		(0.37	)		0.06			(0.57	)		0.00		0.00			(0.57	)

^ A zero balance may reflect actual amounts rounding to less than $0.01 or 0.01%.

^(a)  Per share amounts based on average number of shares outstanding during the year.

^(b)  The tax characterization of distributions is determined in accordance with Federal income tax regulations. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

^(c)  Ratios shown do not include expenses of the investment companies in which a Portfolio may invest. See Note 8, Fees and Expenses, in the Notes to Financial Statements for more information regarding the expenses and any applicable fee waivers associated with these investments.

8 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

					Ratios/Supplemental Data
							Ratios to Average Net Assets(c)
Net Asset Value End of Year		Total Return			Net Assets End of Year (000s)		Expenses			Expenses Excluding Waivers			Expenses Excluding Interest Expense			Expenses Excluding Interest Expense and Waivers			Net Investment Income (Loss)			Portfolio Turnover Rate
$	10.05		(5.20	)%	$	10,616		0.305	%		0.425	%		0.305	%		0.425	%		4.78	%		37	%
	10.97		13.77			12,827		0.325			0.425			0.325			0.425			5.43			40
	10.11		13.08			5,726		0.275			0.425			0.275			0.425			2.43			67
	9.19		(8.95	)		4,811		0.285			0.425			0.285			0.425			3.25			41
	10.47		0.72			9,688		0.275			0.425			0.275			0.425			4.24			98
	10.12		(5.59	)		73,521		0.755			0.875			0.755			0.875			4.62			37
	11.04		13.19			75,309		0.775			0.875			0.775			0.875			4.26			40
	10.18		12.59			65,033		0.725			0.875			0.725			0.875			1.91			67
	9.25		(9.32	)		68,206		0.735			0.875			0.735			0.875			2.88			41
	10.53		0.24			86,496		0.725			0.875			0.725			0.875			3.70			98
	9.93		(5.41	)		444,136		0.455			0.575			0.455			0.575			4.56			37
	10.85		13.54			554,749		0.475			0.575			0.475			0.575			4.46			40
	10.01		12.93			537,663		0.425			0.575			0.425			0.575			2.23			67
	9.10		(8.99	)		537,330		0.435			0.575			0.435			0.575			3.15			41
	10.36		0.47			722,608		0.425			0.575			0.425			0.575			4.01			98
	10.05		(5.45	)		178,643		0.555			0.675			0.555			0.675			4.38			37
	10.97		13.38			231,030		0.575			0.675			0.575			0.675			4.35			40
	10.12		12.90			226,099		0.525			0.675			0.525			0.675			2.12			67
	9.19		(9.19	)		226,532		0.535			0.675			0.535			0.675			3.02			41
	10.47		0.46			328,716		0.525			0.675			0.525			0.675			3.86			98

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 9

Statement of Assets and Liabilities PIMCO All Asset Portfolio

(Amounts in thousands†, except per share amounts)	December 31, 2018
Assets:
Investments, at value
Investments in Affiliates	$	708,639
Cash		1
Receivable for investments in Affiliates sold		244
Receivable for Portfolio shares sold		96
Dividends receivable from Affiliates		1,356
Reimbursement receivable from PIMCO		87
Total Assets		710,423
Liabilities:
Payable for investments in Affiliates purchased	$	1,472
Payable for Portfolio shares redeemed		1,665
Accrued investment advisory fees		103
Accrued supervisory and administrative fees		147
Accrued distribution fees		65
Accrued servicing fees		55
Total Liabilities		3,507
Net Assets	$	706,916
Net Assets Consist of:
Paid in capital	$	808,730
Distributable earnings (accumulated loss)		(101,814	)
Net Assets	$	706,916
Net Assets:
Institutional Class	$	10,616
Class M		73,521
Administrative Class		444,136
Advisor Class		178,643
Shares Issued and Outstanding:
Institutional Class		1,057
Class M		7,267
Administrative Class		44,714
Advisor Class		17,778
Net Asset Value Per Share Outstanding:
Institutional Class	$	10.05
Class M		10.12
Administrative Class		9.93
Advisor Class		10.05
Cost of investments in Affiliates	$	733,782

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

10 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

Statement of Operations PIMCO All Asset Portfolio

(Amounts in thousands†)	Year Ended December 31, 2018
Investment Income:
Interest	$	3
Dividends from Investments in Affiliates		40,260
Total Income		40,263
Expenses:
Investment advisory fees		1,400
Supervisory and administrative fees		1,999
Distribution and/or servicing fees - Class M		348
Servicing fees - Administrative Class		752
Distribution and/or servicing fees - Advisor Class		521
Trustee fees		23
Interest expense		1
Total Expenses		5,044
Waiver and/or Reimbursement by PIMCO		(965	)
Net Expenses		4,079
Net Investment Income (Loss)		36,184
Net Realized Gain (Loss):
Investments in Affiliates		648
Net capital gain distributions received from Affiliate investments		7,364
Net Realized Gain (Loss)		8,012
Net Change in Unrealized Appreciation (Depreciation):
Investments in Affiliates		(87,372	)
Net Change in Unrealized Appreciation (Depreciation)		(87,372	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	(43,176	)

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 11

Statements of Changes in Net Assets PIMCO All Asset Portfolio

(Amounts in thousands†)	Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets from:
Operations:
Net investment income (loss)	$	36,184		$	38,448
Net realized gain (loss)		8,012			2,308
Net change in unrealized appreciation (depreciation)		(87,372	)		68,941
Net Increase (Decrease) in Net Assets Resulting from Operations		(43,176	)		109,697
Distributions to Shareholders:
From net investment income and/or net realized capital gains*
Institutional Class		(414	)		(423	)
Class M		(2,224	)		(2,999	)
Administrative Class		(15,679	)		(25,043	)
Advisor Class		(6,185	)		(9,984	)
Tax basis return of capital
Institutional Class		0			(12	)
Class M		0			(110	)
Administrative Class		0			(871	)
Advisor Class		0			(360	)
Total Distributions(a)		(24,502	)		(39,802	)
Portfolio Share Transactions:
Net increase (decrease) resulting from Portfolio share transactions**		(99,321	)		(30,501	)
Total Increase (Decrease) in Net Assets		(166,999	)		39,394
Net Assets:
Beginning of year		873,915			834,521
End of year	$	706,916		$	873,915

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

* See Note 2, New Accounting Pronouncements, in the Notes to Financial Statements for more information.

** See Note 12, Shares of Beneficial Interest, in the Notes to Financial Statements.

^(a)  The tax characterization of distributions is determined in accordance with Federal income tax regulations. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

12 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

Schedule of Investments PIMCO All Asset Portfolio

December 31, 2018

(Amounts in thousands*, except number of shares, contracts and units, if any)

	SHARES			MARKET VALUE (000S)
INVESTMENTS IN AFFILIATES 100.2%
MUTUAL FUNDS (a) 98.7%
PIMCO CommoditiesPLUS® Strategy Fund		4,761,518	$		22,474
PIMCO CommodityRealReturn Strategy Fund®		1,547,988			8,576
PIMCO Dynamic Bond Fund		1,044,543			11,135
PIMCO Emerging Local Bond Fund		6,195,943			40,645
PIMCO Emerging Markets Currency and Short-Term Investments Fund		10,607,129			84,751
PIMCO Extended Duration Fund		4,330,579			32,046
PIMCO High Yield Fund		828,520			6,860
PIMCO High Yield Spectrum Fund		1,247,772			11,455
PIMCO Income Fund		3,441,706			40,646
PIMCO Investment Grade Credit Bond Fund		1,492,390			14,790
PIMCO Long Duration Total Return Fund		926,005			9,316
PIMCO Long-Term Real Return Fund		391,575			3,062
PIMCO Long-Term U.S. Government Fund		4,356,970			25,837
PIMCO Low Duration Fund		3,994,803			38,750
PIMCO Mortgage Opportunities and Bond Fund		484,850			5,227

	SHARES			MARKET VALUE (000S)
PIMCO RAE Emerging Markets Fund		5,169,746	$		47,045
PIMCO RAE Fundamental Advantage PLUS Fund		4,150,748			41,092
PIMCO RAE Low Volatility PLUS EMG Fund		2,838,558			23,333
PIMCO RAE Low Volatility PLUS International Fund		1,705,010			12,293
PIMCO RAE PLUS EMG Fund		9,022,120			84,176
PIMCO RAE PLUS International Fund		996,011			6,554
PIMCO RAE Worldwide Long/Short PLUS Fund		4,499,139			44,092
PIMCO Real Return Fund		995,648			10,514
PIMCO RealEstateRealReturn Strategy Fund		3,625,284			28,277
PIMCO StocksPLUS® International Fund (U.S. Dollar-Hedged)		3,014,792			21,345
PIMCO Total Return Fund		1,598,022			15,868
PIMCO TRENDS Managed Futures Strategy Fund		774,316			7,650
Total Mutual Funds (Cost $721,412)					697,809
EXCHANGE-TRADED FUNDS 1.0%
PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF		319,082			7,052
Total Exchange-Traded Funds (Cost $8,591)					7,052

	SHARES			MARKET VALUE (000S)
SHORT-TERM INSTRUMENTS 0.5%
MUTUAL FUNDS (a) 0.5%
PIMCO Government Money Market Fund		3,775,535	$		3,775
CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 0.0%
PIMCO Short-Term Floating NAV Portfolio III		313			3
Total Short-Term Instruments (Cost $3,779)					3,778
Total Investments in Affiliates (Cost $733,782)					708,639
Total Investments 100.2% (Cost $733,782)			$		708,639
Other Assets and Liabilities, net (0.2)%					(1,723	)
Net Assets 100.0%			$		706,916

NOTES TO SCHEDULE OF INVESTMENTS:

* A zero balance may reflect actual amounts rounding to less than one thousand.

(a) Institutional Class Shares of each Fund.

FAIR VALUE MEASUREMENTS

The following is a summary of the fair valuations according to the inputs used as of December 31, 2018 in valuing the Portfolio’s assets and liabilities:

Category and Subcategory	Level 1		Level 2		Level 3		Fair Value at 12/31/2018
Investments in Affiliates, at Value
Mutual Funds	$	697,809	$	0	$	0	$	697,809
Exchange-Traded Funds		7,052		0		0		7,052
Short-Term Instruments
Mutual Funds		3,775		0		0		3,775
Central Funds Used for Cash Management Purposes		3		0		0		3
Total Investments	$	708,639	$	0	$	0	$	708,639

There were no significant transfers into or out of Level 3 during the period ended December 31, 2018.

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 13

Notes to Financial Statements

1. ORGANIZATION

PIMCO Variable Insurance Trust (the “Trust”) is a Delaware statutory trust established under a trust instrument dated October 3, 1997. The Trust is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Trust is designed to be used as an investment vehicle by separate accounts of insurance companies that fund variable annuity contracts and variable life insurance policies and by qualified pension and retirement plans. Information presented in these financial statements pertains to the Institutional Class, Class M, Administrative Class and Advisor Class shares of the PIMCO All Asset Portfolio (the “Portfolio”) offered by the Trust. Pacific Investment Management Company LLC (“PIMCO”) serves as the investment adviser (the “Adviser”) for the Portfolio. Research Affiliates, LLC (“Research Affiliates”) serves as the asset allocation sub-adviser to the Portfolio.

The Portfolio may invest substantially all or a significant portion of its assets in the least expensive class of shares of any actively managed or smart beta funds (including mutual funds or exchange-traded funds) of PIMCO Funds, PIMCO ETF Trust or PIMCO Equity Series, each an affiliated open-end investment company, except other funds of funds (collectively, “Underlying PIMCO Funds”).

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Portfolio is treated as an investment company under the reporting requirements of U.S. GAAP. The functional and reporting currency for the Portfolio is the U.S. dollar. The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

(a) Securities Transactions and Investment Income  Securities transactions are recorded as of the trade date for financial reporting purposes. Securities purchased or sold on a when-issued or delayed-delivery basis may be settled beyond a standard settlement period for the security after the trade date. Realized gains (losses) from securities sold are recorded on the identified cost basis. Dividend income is recorded on the ex-dividend date, except certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Portfolio is informed of the ex-dividend date. Interest income, adjusted for the accretion of discounts and amortization of premiums, is recorded on the accrual basis from

settlement date, with the exception of securities with a forward starting effective date, where interest income is recorded on the accrual basis from effective date. For convertible securities, premiums attributable to the conversion feature are not amortized. Estimated tax liabilities on certain foreign securities are recorded on an accrual basis and are reflected as components of interest income or net change in unrealized appreciation (depreciation) on investments on the Statement of Operations, as appropriate. Tax liabilities realized as a result of such security sales are reflected as a component of net realized gain (loss) on investments on the Statement of Operations. Paydown gains (losses) on mortgage-related and other asset-backed securities, if any, are recorded as components of interest income on the Statement of Operations. Income or short-term capital gain distributions received from registered investment companies, if any, are recorded as dividend income. Long-term capital gain distributions received from registered investment companies, if any, are recorded as realized gains.

(b) Multi-Class Operations  Each class offered by the Trust has equal rights as to assets and voting privileges (except that shareholders of a class have exclusive voting rights regarding any matter relating solely to that class of shares). Income and non-class specific expenses are allocated daily to each class on the basis of the relative net assets. Realized and unrealized capital gains (losses) are allocated daily based on the relative net assets of each class of the Portfolio. Class specific expenses, where applicable, currently include supervisory and administrative and distribution and servicing fees. Under certain circumstances, the per share net asset value (“NAV”) of a class of the Portfolio’s shares may be different from the per share NAV of another class of shares as a result of the different daily expense accruals applicable to each class of shares.

(c) Distributions to Shareholders  Distributions from net investment income, if any, are declared and distributed to shareholders quarterly. Net realized capital gains earned by the Portfolio, if any, will be distributed no less frequently than once each year.

Income distributions and capital gain distributions are determined in accordance with income tax regulations which may differ from U.S. GAAP. Differences between tax regulations and U.S. GAAP may cause timing differences between income and capital gain recognition. Further, the character of investment income and capital gains may be different for certain transactions under the two methods of accounting. As a result, income distributions and capital gain distributions declared during a fiscal period may differ significantly from the net investment income (loss) and realized gains (losses) reported on the Portfolio’s annual financial statements presented under U.S. GAAP.

If the Portfolio estimates that a portion of its distribution may be comprised of amounts from sources other than net investment income

14 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

in accordance with its policies and good accounting practices, the Portfolio will notify shareholders of the estimated composition of such distribution through a Section 19 Notice. For these purposes, the Portfolio estimates the source or sources from which a distribution is paid, to the close of the period as of which it is paid, in reference to its internal accounting records and related accounting practices. If, based on such accounting records and practices, it is estimated that a particular distribution does not include capital gains or paid-in surplus or other capital sources, a Section 19 Notice generally would not be issued. It is important to note that differences exist between the Portfolio’s daily internal accounting records and practices, the Portfolio’s financial statements presented in accordance with U.S. GAAP, and recordkeeping practices under income tax regulations. For instance, the Portfolio’s internal accounting records and practices may take into account, among other factors, tax-related characteristics of certain sources of distributions that differ from treatment under U.S. GAAP. Examples of such differences may include, among others, the treatment of paydowns on mortgage-backed securities purchased at a discount and periodic payments under interest rate swap contracts. Accordingly, among other consequences, it is possible that the Portfolio may not issue a Section 19 Notice in situations where the Portfolio’s financial statements prepared later and in accordance with U.S. GAAP and/or the final tax character of those distributions might later report that the sources of those distributions included capital gains and/or a return of capital. Final determination of a distribution’s tax character will be provided to shareholders when such information is available.

Distributions classified as a tax basis return of capital, if any, are reflected on the Statements of Changes in Net Assets and have been recorded to paid in capital on the Statement of Assets and Liabilities. In addition, other amounts have been reclassified between distributable earnings (accumulated loss) and paid in capital on the Statement of Assets and Liabilities to more appropriately conform U.S. GAAP to tax characterizations of distributions.

(d) New Accounting Pronouncements  In August 2016, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”), ASU 2016-15, which amends Accounting Standards Codification (“ASC”) 230 to clarify guidance on the classification of certain cash receipts and cash payments in the Statement of Cash Flows. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In November 2016, the FASB issued ASU 2016-18 which amends ASC 230 to provide guidance on the classification and presentation of changes in restricted cash and restricted cash equivalents on the Statement of Cash Flows. The ASU is effective for annual periods

beginning after December 15, 2017, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In March 2017, the FASB issued ASU 2017-08 which provides guidance related to the amortization period for certain purchased callable debt securities held at a premium. The ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In August 2018, the FASB issued ASU 2018-13 which modifies certain disclosure requirements for fair value measurements in ASC 820. The ASU is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. At this time, management has elected to early adopt the amendments that allow for removal of certain disclosure requirements. Management plans to adopt the amendments that require additional fair value measurement disclosures for annual periods beginning after December 15, 2019, and interim periods within those annual periods. Management is currently evaluating the impact of these changes on the financial statements.

In August 2018, the U.S. Securities and Exchange Commission (“SEC”) adopted amendments to certain rules and forms for the purpose of disclosure update and simplification. The compliance date for these amendments is 30 days after date of publication in the Federal Register, which was on October 4, 2018. Management has adopted these amendments and the changes are incorporated throughout all periods presented in the financial statements.

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

(a) Investment Valuation Policies  The price of the Portfolio’s shares is based on the Portfolio’s NAV. The NAV of the Portfolio, or each of its share classes, as applicable, is determined by dividing the total value of portfolio investments and other assets, less any liabilities attributable to the Portfolio or class, by the total number of shares outstanding of the Portfolio or class.

On each day that the New York Stock Exchange (“NYSE”) is open, Portfolio and Underlying PIMCO Fund shares are ordinarily valued as of the close of regular trading (“NYSE Close”). Information that becomes known to the Portfolio or an Underlying PIMCO Fund or its agents after the time as of which NAV has been calculated on a particular day will not generally be used to retroactively adjust the price of a security or the NAV determined earlier that day. The Portfolio reserves the right to change the time as of which its NAV is calculated if the Portfolio closes earlier, or as permitted by the SEC.

ANNUAL REPORT DECEMBER 31, 2018 15

Notes to Financial Statements (Cont.)

The assets of the Portfolio consist of shares of the Underlying PIMCO Funds, which are valued at their respective NAVs at the time of valuation of the Portfolio’s shares. For purposes of calculating the NAV of the Underlying PIMCO Funds, portfolio securities and other assets for which market quotes are readily available are valued at market value. Market value is generally determined on the basis of official closing prices or the last reported sales prices, or if no sales are reported, based on quotes obtained from established market makers or prices (including evaluated prices) supplied by the Portfolio’s approved pricing services, quotation reporting systems and other third-party sources (together, “Pricing Services”). The Portfolio will normally use pricing data for domestic equity securities received shortly after the NYSE Close and does not normally take into account trading, clearances or settlements that take place after the NYSE Close. If market value pricing is used, a foreign (non-U.S.) equity security traded on a foreign exchange or on more than one exchange is typically valued using pricing information from the exchange considered by the Adviser to be the primary exchange. A foreign (non-U.S.) equity security will be valued as of the close of trading on the foreign exchange, or the NYSE Close, if the NYSE Close occurs before the end of trading on the foreign exchange. Domestic and foreign (non-U.S.) fixed income securities, non-exchange traded derivatives, and equity options are normally valued on the basis of quotes obtained from brokers and dealers or Pricing Services using data reflecting the earlier closing of the principal markets for those securities. Prices obtained from Pricing Services may be based on, among other things, information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics. Certain fixed income securities purchased on a delayed-delivery basis are marked to market daily until settlement at the forward settlement date. Exchange-traded options, except equity options, futures and options on futures are valued at the settlement price determined by the relevant exchange. Swap agreements are valued on the basis of bid quotes obtained from brokers and dealers or market-based prices supplied by Pricing Services. The Portfolio’s investments in open-end management investment companies, other than exchange-traded funds (“ETFs”), are valued at the NAVs of such investments. Open-end management investment companies may include affiliated funds.

If a foreign (non-U.S.) equity security’s value has materially changed after the close of the security’s primary exchange or principal market but before the NYSE Close, the security may be valued at fair value based on procedures established and approved by the Board of Trustees of the Trust (the “Board”). Foreign (non-U.S.) equity securities that do not trade when the NYSE is open are also valued at fair value. With respect to foreign (non-U.S.) equity securities, the Portfolio may determine the fair value of investments based on information provided by Pricing Services and other third-party vendors, which may recommend fair value

or adjustments with reference to other securities, indices or assets. In considering whether fair valuation is required and in determining fair values, the Portfolio may, among other things, consider significant events (which may be considered to include changes in the value of U.S. securities or securities indices) that occur after the close of the relevant market and before the NYSE Close. The Portfolio may utilize modeling tools provided by third-party vendors to determine fair values of foreign (non-U.S.) securities. For these purposes, any movement in the applicable reference index or instrument (“zero trigger”) between the earlier close of the applicable foreign market and the NYSE Close may be deemed to be a significant event, prompting the application of the pricing model (effectively resulting in daily fair valuations). Foreign exchanges may permit trading in foreign (non-U.S.) equity securities on days when the Trust is not open for business, which may result in the Portfolio’s portfolio investments being affected when shareholders are unable to buy or sell shares.

Senior secured floating rate loans for which an active secondary market exists to a reliable degree will be valued at the mean of the last available bid/ask prices in the market for such loans, as provided by a Pricing Service. Senior secured floating rate loans for which an active secondary market does not exist to a reliable degree will be valued at fair value, which is intended to approximate market value. In valuing a senior secured floating rate loan at fair value, the factors considered may include, but are not limited to, the following: (a) the creditworthiness of the borrower and any intermediate participants, (b) the terms of the loan, (c) recent prices in the market for similar loans, if any, and (d) recent prices in the market for instruments of similar quality, rate, period until next interest rate reset and maturity.

Investments valued in currencies other than the U.S. dollar are converted to the U.S. dollar using exchange rates obtained from Pricing Services. As a result, the value of such investments and, in turn, the NAV of an Underlying PIMCO Fund’s shares may be affected by changes in the value of currencies in relation to the U.S. dollar. The value of investments traded in markets outside the United States or denominated in currencies other than the U.S. dollar may be affected significantly on a day that the Trust is not open for business. As a result, to the extent that the Portfolio invests in Underlying PIMCO Funds that hold foreign (non-U.S.) investments, the value of those investments may change at times when shareholders are unable to buy or sell shares and the value of such investments will be reflected in the Portfolio’s next calculated NAV.

Investments for which market quotes or market based valuations are not readily available are valued at fair value as determined in good faith by the Board or persons acting at their direction. The Board has adopted methods for valuing securities and other assets in circumstances where market quotes are not readily available, and has delegated to the Adviser

16 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

the responsibility for applying the fair valuation methods. In the event that market quotes or market based valuations are not readily available, and the security or asset cannot be valued pursuant to a Board approved valuation method, the value of the security or asset will be determined in good faith by the Board. Market quotes are considered not readily available in circumstances where there is an absence of current or reliable market-based data (e.g., trade information, bid/ask information, indicative market quotations (“Broker Quotes”), Pricing Services’ prices), including where events occur after the close of the relevant market, but prior to the NYSE Close, that materially affect the values of an Underlying PIMCO Fund’s securities or assets. In addition, market quotes are considered not readily available when, due to extraordinary circumstances, the exchanges or markets on which the securities trade do not open for trading for the entire day and no other market prices are available. The Board has delegated, to the Adviser, the responsibility for monitoring significant events that may materially affect the values of the Portfolio’s securities or assets and for determining whether the value of the applicable securities or assets should be reevaluated in light of such significant events.

When the Portfolio (or, in each instance in this paragraph, as applicable, an Underlying PIMCO Fund) uses fair valuation to determine the value of a portfolio security or other asset for purposes of calculating its NAV, such investments will not be priced on the basis of quotes from the primary market in which they are traded, but rather may be priced by another method that the Board or persons acting at their direction believe reflects fair value. Fair valuation may require subjective determinations about the value of a security. While the Trust’s policy is intended to result in a calculation of the Portfolio’s and Underlying PIMCO Funds’ NAVs that fairly reflects security values as of the time of pricing, the Trust cannot ensure that fair values determined by the Board or persons acting at their direction would accurately reflect the price that an Underlying PIMCO Fund could obtain for a security if it were to dispose of that security as of the time of pricing (for instance, in a forced or distressed sale). The prices used by an Underlying PIMCO Fund may differ from the value that would be realized if the securities were sold. An Underlying PIMCO Fund’s use of fair valuation may also help to deter “stale price arbitrage” as discussed under the “Frequent or Excessive Purchases, Exchanges and Redemptions” section in the Portfolio’s prospectus.

(b) Fair Value Hierarchy  U.S. GAAP describes fair value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into levels (Level 1, 2, or 3). The inputs or methodology used for valuing securities are not necessarily an

indication of the risks associated with investing in those securities. Levels 1, 2, and 3 of the fair value hierarchy are defined as follows:

^∎  Level 1 — Quoted prices in active markets or exchanges for identical assets and liabilities.

^∎  Level 2 — Significant other observable inputs, which may include, but are not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market corroborated inputs.

^∎  Level 3 — Significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, which may include assumptions made by the Board or persons acting at their direction that are used in determining the fair value of investments.

In accordance with the requirements of U.S. GAAP, the amounts of transfers into and out of Level 3, if material, are disclosed in the Notes to Schedule of Investments for the Portfolio.

For fair valuations using significant unobservable inputs, U.S. GAAP requires a reconciliation of the beginning to ending balances for reported fair values that presents changes attributable to realized gain (loss), unrealized appreciation (depreciation), purchases and sales, accrued discounts (premiums), and transfers into and out of the Level 3 category during the period. The end of period value is used for the transfers between Levels of the Portfolio’s assets and liabilities. Additionally, U.S. GAAP requires quantitative information regarding the significant unobservable inputs used in the determination of fair value of assets or liabilities categorized as Level 3 in the fair value hierarchy. In accordance with the requirements of U.S. GAAP, a fair value hierarchy, and if material, a Level 3 reconciliation and details of significant unobservable inputs, have been included in the Notes to Schedule of Investments for the Portfolio.

Level 3 trading assets and trading liabilities, at fair value  When a fair valuation method is applied by the Adviser that uses significant unobservable inputs, investments will be priced by a method that the Board or persons acting at their direction believe reflects fair value and are categorized as Level 3 of the fair value hierarchy.

Short-term debt instruments (such as commercial paper) having a remaining maturity of 60 days or less may be valued at amortized cost, so long as the amortized cost value of such short-term debt instruments is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. These securities are categorized as Level 2 or Level 3 of the fair value hierarchy depending on the source of the base price.

ANNUAL REPORT DECEMBER 31, 2018 17

Notes to Financial Statements (Cont.)

4. SECURITIES AND OTHER INVESTMENTS

(a) Investments in Affiliates

The Portfolio invests under normal circumstances substantially all or a significant portion of its assets in Underlying PIMCO Funds which are considered to be affiliated with the Portfolio. The Portfolio may invest in the PIMCO Short Asset Portfolio and the PIMCO Short-Term Floating NAV Portfolio III (“Central Funds”) to the extent permitted by the Act and rules thereunder. The Central Funds are registered investment companies created for use solely by the series of the Trust and other series of registered investment companies advised by the Adviser, in connection with their cash management activities. The main investments of the Central Funds are money market and short maturity fixed income instruments. The Central Funds may incur expenses related to their investment activities, but do not pay Investment Advisory Fees or Supervisory and Administrative Fees to the Adviser. The Central Funds are considered to be affiliated with the Portfolio. The table below shows the Portfolio’s transactions in and earnings from investments in the affiliated Funds for the period ended December 31, 2018 (amounts in thousands^†):

Underlying PIMCO Funds	Market Value 12/31/2017		Purchases at Cost		Proceeds from Sales			Net Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Market Value 12/31/2018		Dividend Income(1)		Realized Net Capital Gain Distributions(1)
PIMCO CommoditiesPLUS® Strategy Fund	$	47,049	$	9,696	$	(28,181	)	$	1,914		$	(8,004	)	$	22,474	$	4,579	$	0
PIMCO CommodityRealReturn Strategy Fund®		9,511		2,961		(2,131	)		(235	)		(1,530	)		8,576		445		0
PIMCO Dynamic Bond Fund		0		12,985		(1,712	)		(9	)		(129	)		11,135		173		0
PIMCO Emerging Local Bond Fund		56,199		3,779		(13,497	)		(3,734	)		(2,102	)		40,645		2,117		0
PIMCO Emerging Markets Currency and Short-Term Investments Fund		118,979		10,422		(29,311	)		(3,878	)		(11,461	)		84,751		10,421		0
PIMCO Extended Duration Fund		27,232		10,974		(4,532	)		(261	)		(1,367	)		32,046		947		149
PIMCO Government Money Market Fund		5,592		133,994		(135,811	)		0			0			3,775		43		0
PIMCO High Yield Fund		5,086		2,729		(546	)		86			(495	)		6,860		256		0
PIMCO High Yield Spectrum Fund		13,567		554		(1,808	)		12			(870	)		11,455		554		0
PIMCO Income Fund		55,488		8,012		(20,150	)		584			(3,288	)		40,646		2,905		0
PIMCO Investment Grade Credit Bond Fund		19,554		699		(4,372	)		(195	)		(896	)		14,790		684		15
PIMCO Long Duration Total Return Fund		11,413		1,154		(2,304	)		(65	)		(882	)		9,316		438		60
PIMCO Long-Term Real Return Fund		3,712		1,013		(1,356	)		33			(340	)		3,062		82		0
PIMCO Long-Term U.S. Government Fund		37,473		3,011		(12,801	)		(504	)		(1,342	)		25,837		869		46
PIMCO Low Duration Fund		29,800		61,783		(52,349	)		(222	)		(262	)		38,750		729		0
PIMCO Mortgage Opportunities and Bond Fund		6,079		237		(939	)		5			(155	)		5,227		237		0
PIMCO RAE Emerging Markets Fund		46,585		16,398		(5,303	)		(91	)		(10,544	)		47,045		1,687		3,076
PIMCO RAE Fundamental Advantage PLUS Fund		18,851		29,817		(6,681	)		(304	)		(591	)		41,092		241		0
PIMCO RAE Low Volatility PLUS EMG Fund		50,623		5,466		(28,501	)		3,300			(7,555	)		23,333		3,677		278
PIMCO RAE Low Volatility PLUS Fund		2,445		80		(2,487	)		293			(331	)		0		80		0
PIMCO RAE Low Volatility PLUS International Fund		15,745		3,866		(2,279	)		131			(5,170	)		12,293		1,432		2,434
PIMCO RAE PLUS EMG Fund		55,291		47,296		(3,592	)		(1,005	)		(13,814	)		84,176		3,059		0
PIMCO RAE PLUS International Fund		30,389		4,845		(26,920	)		4,888			(6,648	)		6,554		1,476		0
PIMCO RAE Worldwide Long/Short PLUS Fund		26,605		20,690		(2,997	)		(36	)		(170	)		44,092		164		0
PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF		2,237		6,429		0			0			(1,614	)		7,052		211		0
PIMCO Real Return Fund		28,897		472		(18,000	)		(434	)		(421	)		10,514		472		0
PIMCO RealEstateRealReturn Strategy Fund		36,261		7,010		(13,452	)		(81	)		(1,461	)		28,277		240		0
PIMCO Senior Floating Rate Fund		34,789		692		(35,424	)		(90	)		33			0		692		0
PIMCO Short-Term Floating NAV Portfolio III		72		1		(70	)		0			0			3		1		0
PIMCO StocksPLUS® International Fund (U.S. Dollar-Hedged)		26,513		6,190		(7,358	)		1,166			(5,166	)		21,345		315		1,306
PIMCO StocksPLUS® International Fund (Unhedged)		6,678		115		(6,503	)		645			(935	)		0		114		0
PIMCO Total Return Fund		43,525		12,306		(38,490	)		(1,265	)		(208	)		15,868		905		0
PIMCO TRENDS Managed Futures Strategy Fund		2,374		4,930		0			0			346			7,650		15		0
Totals	$	874,614	$	430,606	$	(509,857	)	$	648		$	(87,372	)	$	708,639	$	40,260	$	7,364

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽¹⁾  The tax characterization of distributions is determined in accordance with Federal income tax regulations and may contain a return of capital. The actual tax characterization of distributions received is determined at the end of the fiscal year of the affiliated fund. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

18 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

(b) Investments in Securities

The Portfolio (and where applicable, certain Underlying PIMCO Funds) may utilize the investments and strategies described below to the extent permitted by the Portfolio’s investment policies.

Exchange-Traded Funds  typically are index-based investment companies that hold substantially all of their assets in securities representing their specific index, but may also be actively-managed investment companies. Shares of ETFs trade throughout the day on an exchange and represent an investment in a portfolio of securities and other assets. As a shareholder of another investment company, the Portfolio (and Underlying PIMCO Funds) would bear their pro rata portion of the other investment company’s expenses, including advisory fees, in addition to the expenses the Portfolio (and Underlying PIMCO Funds) bear directly in connection with their own operations. Investments in ETFs entail certain risks; in particular, investments in index ETFs involve the risk that the ETF’s performance may not track the performance of the index the ETF is designed to track.

5. BORROWINGS AND OTHER FINANCING TRANSACTIONS

The Portfolio (and where applicable, certain Underlying PIMCO Funds) may enter into the borrowings and other financing transactions described below to the extent permitted by the Portfolio’s investment policies.

The following disclosures contain information on the Portfolio’s ability to lend or borrow cash or securities to the extent permitted under the Act, which may be viewed as borrowing or financing transactions by the Portfolio. The location of these instruments in the Portfolio’s financial statements is described below.

Repurchase Agreements  Under the terms of a typical repurchase agreement, the Portfolio purchases an underlying debt obligation (collateral) subject to an obligation of the seller to repurchase, and the Portfolio to resell, the obligation at an agreed-upon price and time. In an open maturity repurchase agreement, there is no pre-determined repurchase date and the agreement can be terminated by the Portfolio or counterparty at any time. The underlying securities for all repurchase agreements are held by the Portfolio’s (or Underlying PIMCO Funds) custodian or designated subcustodians under tri-party repurchase agreements and in certain instances will remain in custody with the counterparty. The market value of the collateral must be equal to or exceed the total amount of the repurchase obligations, including interest. Repurchase agreements, if any, including accrued interest, are included on the Statement of Assets and Liabilities. Interest earned is recorded as a component of interest income on the Statement of Operations. In periods of increased demand for collateral, the Portfolio may pay a fee for the receipt of collateral, which may result in interest expense to the Portfolio.

6. PRINCIPAL RISKS

The principal risks of investing in the Portfolio, which could adversely affect its net asset value, yield and total return, are listed below. The principal risks of investing in the Portfolio include risks from direct investments and/or for certain Portfolios that invest in Acquired Funds or Underlying PIMCO Funds, indirect exposure through investment in such Acquired Funds or Underlying PIMCO Funds. Please see “Description of Principal Risks” in the Portfolio’s prospectus for a more detailed description of the risks of investing in the Portfolio.

The following risks are principal risks of investing in a Portfolio.

Allocation Risk  is the risk that a Portfolio could lose money as a result of less than optimal or poor asset allocation decisions. The Portfolio could miss attractive investment opportunities by underweighting markets that subsequently experience significant returns and could lose value by overweighting markets that subsequently experience significant declines.

Fund of Funds Risk  is the risk that a Portfolio’s performance is closely related to the risks associated with the securities and other investments held by the Underlying PIMCO Funds and that the ability of a Portfolio to achieve its investment objective will depend upon the ability of the Underlying PIMCO Funds to achieve their investment objectives.

The following risks are principal risks of investing in a Portfolio that include risks from direct investments and/or indirect exposure through investment in Underlying PIMCO Funds.

Market Trading Risk  is the risk that an active secondary trading market for shares of an Underlying PIMCO Fund that is an exchange-traded fund does not continue once developed, that such Underlying PIMCO Fund may not continue to meet a listing exchange’s trading or listing requirements, or that such Underlying PIMCO Fund’s shares trade at prices other than the Fund’s net asset value.

Municipal Project-Specific Risk  is the risk that an Underlying PIMCO Fund may be more sensitive to adverse economic, business or political developments if it invests a substantial portion of its assets in the bonds of specific projects (such as those relating to education, health care, housing, transportation, and utilities), industrial development bonds, or in bonds from issuers in a single state.

Municipal Bond Risk  is the risk that an Underlying PIMCO Fund may be affected significantly by the economic, regulatory or political developments affecting the ability of issuers of debt securities whose interest is, in the opinion of bond counsel for the issuer at the time of issuance, exempt from federal income tax (“Municipal Bonds”) to pay interest or repay principal.

ANNUAL REPORT DECEMBER 31, 2018 19

Notes to Financial Statements (Cont.)

Interest Rate Risk  is the risk that fixed income securities will decline in value because of an increase in interest rates; a portfolio with a longer average portfolio duration will be more sensitive to changes in interest rates than a portfolio with a shorter average portfolio duration.

Call Risk  is the risk that an issuer may exercise its right to redeem a fixed income security earlier than expected (a call). Issuers may call outstanding securities prior to their maturity for a number of reasons (e.g., declining interest rates, changes in credit spreads and improvements in the issuer’s credit quality). If an issuer calls a security that the Portfolio has invested in, the Portfolio may not recoup the full amount of its initial investment and may be forced to reinvest in lower-yielding securities, securities with greater credit risks or securities with other, less favorable features.

Credit Risk  is the risk that the Portfolio could lose money if the issuer or guarantor of a fixed income security, or the counterparty to a derivative contract, is unable or unwilling to meet its financial obligations.

High Yield Risk  is the risk that high yield securities and unrated securities of similar credit quality (commonly known as “junk bonds”) are subject to greater levels of credit, call and liquidity risks. High yield securities are considered primarily speculative with respect to the issuer’s continuing ability to make principal and interest payments, and may be more volatile than higher-rated securities of similar maturity.

Distressed Company Risk  is the risk that securities of distressed companies may be subject to greater levels of credit, issuer and liquidity risk than a portfolio that does not invest in such securities. Securities of distressed companies include both debt and equity securities. Debt securities of distressed companies are considered predominantly speculative with respect to the issuers’ continuing ability to make principal and interest payments.

Market Risk  is the risk that the value of securities owned by the Portfolio may go up or down, sometimes rapidly or unpredictably, due to factors affecting securities markets generally or particular industries.

Issuer Risk  is the risk that the value of a security may decline for a reason directly related to the issuer, such as management performance, financial leverage and reduced demand for the issuer’s goods or services.

Liquidity Risk  is the risk that a particular investment may be difficult to purchase or sell and that the Portfolio may be unable to sell illiquid securities at an advantageous time or price or achieve its desired level of exposure to a certain sector. Liquidity risk may result from the lack of an active market, reduced number and capacity of traditional market participants to make a market in fixed income securities, and may be magnified in a rising interest rate environment or other circumstances

where investor redemptions from fixed income mutual funds may be higher than normal, causing increased supply in the market due to selling activity.

Derivatives Risk  is the risk of investing in derivative instruments (such as futures, swaps and structured securities), including leverage, liquidity, interest rate, market, credit and management risks, mispricing or valuation complexity. Changes in the value of the derivative may not correlate perfectly with, and may be more sensitive to market events than, the underlying asset, rate or index, and the Portfolio could lose more than the initial amount invested. An Underlying PIMCO Fund’s use of derivatives may result in losses to the Portfolio, a reduction in the Portfolio’s returns and/or increased volatility. Over-the-counter (“OTC”) derivatives are also subject to the risk that a counterparty to the transaction will not fulfill its contractual obligations to the other party, as many of the protections afforded to centrally-cleared derivative transactions might not be available for OTC derivatives. For derivatives traded on an exchange or through a central counterparty, credit risk resides with the Underlying PIMCO Fund’s clearing broker, or the clearinghouse itself, rather than with a counterparty in an OTC derivative transaction. Changes in regulation relating to a mutual fund’s use of derivatives and related instruments could potentially limit or impact the Underlying PIMCO Fund’s ability to invest in derivatives, limit the Underlying PIMCO Fund’s ability to employ certain strategies that use derivatives and/or adversely affect the value of derivatives and the Underlying PIMCO Fund’s performance.

Futures Contract Risk  is the risk that, while the value of a futures contract tends to correlate with the value of the underlying asset that it represents, differences between the futures market and the market for the underlying asset may result in an imperfect correlation. Futures contracts may involve risks different from, and possibly greater than, the risks associated with investing directly in the underlying assets. The purchase or sale of a futures contract may result in losses in excess of the amount invested in the futures contract.

Model Risk  is the risk that an Underlying PIMCO Fund’s investment models used in making investment allocation decisions, and the indexation methodologies used in constructing an underlying index for an Underlying PIMCO Fund that seeks to track the investment results of such underlying index, may not adequately take into account certain factors and may result in a decline in the value of an investment in the Underlying PIMCO Fund.

Commodity Risk  is the risk that investing in commodity-linked derivative instruments may subject the Portfolio to greater volatility than investments in traditional securities. The value of commodity-linked derivative instruments may be affected by changes in overall market movements, commodity index volatility, changes in interest

20 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

rates, or factors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments.

Equity Risk  is the risk that the value of equity securities, such as common stocks and preferred securities, may decline due to general market conditions which are not specifically related to a particular company or to factors affecting a particular industry or industries. Equity securities generally have greater price volatility than fixed income securities.

Mortgage-Related and Other Asset-Backed Securities Risk  is the risk of investing in mortgage-related and other asset-backed securities, including interest rate risk, extension risk, prepayment risk and credit risk.

Foreign (Non-U.S.) Investment Risk  is the risk that investing in foreign (non-U.S.) securities may result in the Portfolio experiencing more rapid and extreme changes in value than a portfolio that invests exclusively in securities of U.S. companies, due to smaller markets, differing reporting, accounting and auditing standards, increased risk of delayed settlement of portfolio transactions or loss of certificates of portfolio securities, and the risk of unfavorable foreign government actions, including nationalization, expropriation or confiscatory taxation, currency blockage, or political changes or diplomatic developments. Foreign securities may also be less liquid and more difficult to value than securities of U.S. issuers.

Real Estate Risk  is the risk that a Portfolio’s investments in Real Estate Investment Trusts (“REITs”) or real estate-linked derivative instruments will subject the Portfolio to risks similar to those associated with direct ownership of real estate, including losses from casualty or condemnation, and changes in local and general economic conditions, supply and demand, interest rates, zoning laws, regulatory limitations on rents, property taxes and operating expenses. A Portfolio’s investments in REITs or real estate-linked derivative instruments subject it to management and tax risks. In addition, privately traded REITs subject a Portfolio to liquidity and valuation risk.

Emerging Markets Risk  is the risk of investing in emerging market securities, primarily increased foreign (non-U.S.) investment risk.

Sovereign Debt Risk  is the risk that investments in fixed income instruments issued by sovereign entities may decline in value as a result of default or other adverse credit event resulting from an issuer’s inability or unwillingness to make principal or interest payments in a timely fashion.

Currency Risk  is the risk that foreign (non-U.S.) currencies will change in value relative to the U.S. dollar and affect the Portfolio’s investments

in foreign (non-U.S.) currencies or in securities that trade in, and receive revenues in, or in derivatives that provide exposure to, foreign (non-U.S.) currencies.

Leveraging Risk  is the risk that certain transactions of the Portfolio, such as reverse repurchase agreements, loans of portfolio securities, and the use of when-issued, delayed delivery or forward commitment transactions, or derivative instruments, may give rise to leverage, magnifying gains and losses and causing the Portfolio to be more volatile than if it had not been leveraged. This means that leverage entails a heightened risk of loss.

Smaller Company Risk  is the risk that the value of securities issued by a smaller company may go up or down, sometimes rapidly and unpredictably as compared to more widely held securities, due to narrow markets and limited resources of smaller companies. A Portfolio’s investments in smaller companies subject it to greater levels of credit, market and issuer risk.

Issuer Non-Diversification Risk  is the risk of focusing investments in a small number of issuers, including being more susceptible to risks associated with a single economic, political or regulatory occurrence than a more diversified portfolio might be. Portfolios that are “non-diversified” may invest a greater percentage of their assets in the securities of a single issuer (such as bonds issued by a particular state) than portfolios that are “diversified”.

Management Risk  is the risk that the investment techniques and risk analyses applied by PIMCO will not produce the desired results and that legislative, regulatory, or tax restrictions, policies or developments may affect the investment techniques available to PIMCO and the individual portfolio manager in connection with managing the Portfolio. There is no guarantee that the investment objective of the Portfolio will be achieved.

Short Exposure Risk  is the risk of entering into short sales, including the potential loss of more money than the actual cost of the investment, and the risk that the third party to the short sale will not fulfill its contractual obligations, causing a loss to the Portfolio.

Tax Risk  is the risk that the tax treatment of swap agreements and other derivative instruments, such as commodity-linked derivative instruments, including commodity index-linked notes, swap agreements, commodity options, futures, and options on futures, may be affected by future regulatory or legislative changes that could affect whether income from such investments is “qualifying income” under Subchapter M of the Internal Revenue Code, or otherwise affect the character, timing and/or amount of the Portfolio’s taxable income or gains and distributions.

ANNUAL REPORT DECEMBER 31, 2018 21

Notes to Financial Statements (Cont.)

Subsidiary Risk  is the risk that, by investing in certain Underlying PIMCO Funds that invest in a subsidiary (each a “Subsidiary”), the Portfolio is indirectly exposed to the risks associated with a Subsidiary’s investments. The Subsidiaries are not registered under the 1940 Act and may not be subject to all the investor protections of the 1940 Act. There is no guarantee that the investment objective of a Subsidiary will be achieved.

Value Investing Risk  is the risk that a value stock may decrease in price or may not increase in price as anticipated by PIMCO if it continues to be undervalued by the market or the factors that the portfolio manager believes will cause the stock price to increase do not occur.

Arbitrage Risk  is the risk that securities purchased pursuant to an arbitrage strategy intended to take advantage of a perceived relationship between the value of two securities may not perform as expected.

Convertible Securities Risk  is the risk that arises when convertible securities share both fixed income and equity characteristics. Convertible securities are subject to risks to which fixed income and equity investments are subject. These risks include equity risk, interest rate risk and credit risk.

Exchange-Traded Fund Risk  is the risk that an exchange-traded fund may not track the performance of the index it is designed to track, market prices of shares of an exchange-traded fund may fluctuate rapidly and materially, or shares of an exchange-traded fund may trade significantly above or below net asset value, any of which may cause losses to the Portfolio invested in the exchange-traded fund.

Tracking Error Risk  is the risk that the portfolio of an Underlying PIMCO Fund that seeks to track the investment results of an underlying index may not closely track the underlying index for a number of reasons. The Underlying PIMCO Fund incurs operating expenses, which are not applicable to the underlying index, and the costs of buying and selling securities, especially when rebalancing the Underlying PIMCO Fund’s portfolio to reflect changes in the composition of the underlying index. Performance of the Underlying PIMCO Fund and the underlying index may vary due to asset valuation differences and differences between the Underlying PIMCO Fund’s portfolio and the underlying index due to legal restrictions, cost or liquidity restraints. The risk that performance of the Underlying PIMCO Fund and the underlying index may vary may be heightened during periods of increased market volatility or other unusual market conditions. In addition, an Underlying PIMCO Fund’s use of a representative sampling approach may cause the Underlying PIMCO Fund to be less correlated to the return of the underlying index than if the Underlying PIMCO Fund held all of the securities in the underlying index.

Indexing Risk  is the risk that an Underlying PIMCO Fund that seeks to track the investment results of an underlying index is negatively affected by general declines in the asset classes represented by the underlying index.

7. MASTER NETTING ARRANGEMENTS

The Portfolio may be subject to various netting arrangements (“Master Agreements”) with select counterparties. Master Agreements govern the terms of certain transactions, and are intended to reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that is intended to improve legal certainty. Each type of Master Agreement governs certain types of transactions. Different types of transactions may be traded out of different legal entities or affiliates of a particular organization, resulting in the need for multiple agreements with a single counterparty. As the Master Agreements are specific to unique operations of different asset types, they allow the Portfolio to close out and net its total exposure to a counterparty in the event of a default with respect to all the transactions governed under a single Master Agreement with a counterparty. For financial reporting purposes the Statement of Assets and Liabilities generally presents derivative assets and liabilities on a gross basis, which reflects the full risks and exposures prior to netting.

Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. Under most Master Agreements, collateral is routinely transferred if the total net exposure to certain transactions (net of existing collateral already in place) governed under the relevant Master Agreement with a counterparty in a given account exceeds a specified threshold, which typically ranges from zero to $250,000 depending on the counterparty and the type of Master Agreement. United States Treasury Bills and U.S. dollar cash are generally the preferred forms of collateral, although other securities may be used depending on the terms outlined in the applicable Master Agreement. Securities and cash pledged as collateral are reflected as assets on the Statement of Assets and Liabilities as either a component of Investments at value (securities) or Deposits with counterparty. Cash collateral received is not typically held in a segregated account and as such is reflected as a liability on the Statement of Assets and Liabilities as Deposits from counterparty. The market value of any securities received as collateral is not reflected as a component of NAV. The Portfolio’s overall exposure to counterparty risk can change substantially within a short period, as it is affected by each transaction subject to the relevant Master Agreement.

Master Repurchase Agreements and Global Master Repurchase Agreements (individually and collectively “Master Repo Agreements”) govern repurchase, reverse repurchase, and certain sale-buyback transactions between the Portfolio and select counterparties. Master

22 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

Repo Agreements maintain provisions for, among other things, initiation, income payments, events of default, and maintenance of collateral. The market value of transactions under the Master Repo Agreement, collateral pledged or received, and the net exposure by counterparty as of period end are disclosed in the Notes to Schedule of Investments.

Master Securities Forward Transaction Agreements (“Master Forward Agreements”) govern certain forward settling transactions, such as TBA securities, delayed-delivery or certain sale-buyback transactions by and between the Portfolio and select counterparties. The Master Forward Agreements maintain provisions for, among other things, transaction initiation and confirmation, payment and transfer, events of default, termination, and maintenance of collateral. The market value of forward settling transactions, collateral pledged or received, and the net exposure by counterparty as of period end is disclosed in the Notes to Schedule of Investments.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Such transactions require posting of initial margin as determined by each relevant clearing agency which is segregated in an account at a futures commission merchant (“FCM”) registered with the Commodity Futures Trading Commission (“CFTC”). In the United States, counterparty risk may be reduced as creditors of an FCM cannot have a claim to Portfolio assets in the segregated account. Portability of exposure reduces risk to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives unless the parties have agreed to a separate arrangement in respect of portfolio margining. The market value or accumulated unrealized appreciation (depreciation), initial margin posted, and any unsettled variation margin as of period end are disclosed in the Notes to Schedule of Investments.

International Swaps and Derivatives Association, Inc. Master Agreements and Credit Support Annexes (“ISDA Master Agreements”) govern bilateral OTC derivative transactions entered into by the Portfolio with select counterparties. ISDA Master Agreements maintain provisions for general obligations, representations, agreements, collateral posting and events of default or termination. Events of termination include conditions that may entitle counterparties to elect to terminate early and cause settlement of all outstanding transactions under the applicable ISDA Master Agreement. Any election to terminate early could be material to the financial statements. In limited circumstances, the ISDA Master Agreement may contain additional provisions that add counterparty protection beyond coverage of existing daily exposure if the counterparty has a decline in credit quality below a predefined level. These amounts, if any, may be segregated with a third-party custodian. The market value of OTC financial

derivative instruments, collateral received or pledged, and net exposure by counterparty as of period end are disclosed in the Notes to Schedule of Investments.

8. FEES AND EXPENSES

(a) Investment Advisory Fee  PIMCO is a majority-owned subsidiary of Allianz Asset Management of America L.P. (“Allianz Asset Management”) and serves as the Adviser to the Trust, pursuant to an investment advisory contract. The Adviser receives a monthly fee from the Portfolio at an annual rate based on average daily net assets (the “Investment Advisory Fee”). The Investment Advisory Fee for all classes is charged at an annual rate as noted in the table in note (b) below.

(b) Supervisory and Administrative Fee  PIMCO serves as administrator (the “Administrator”) and provides supervisory and administrative services to the Trust for which it receives a monthly supervisory and administrative fee based on each share class’s average daily net assets (the “Supervisory and Administrative Fee”). As the Administrator, PIMCO bears the costs of various third-party services, including audit, custodial, portfolio accounting, legal, transfer agency and printing costs.

The Investment Advisory Fee and Supervisory and Administrative Fees for all classes, as applicable, are charged at the annual rate as noted in the following table (calculated as a percentage of the Portfolio’s average daily net assets attributable to each class):

Investment Advisory Fee			Supervisory and Administrative Fee
All Classes			Institutional Class			Class M			Administrative Class			Advisor Class
	0.175	%		0.25	%		0.25	%		0.25	%		0.25	%

(c) Distribution and Servicing Fees  PIMCO Investments LLC, a wholly-owned subsidiary of PIMCO, serves as the distributor (“Distributor”) of the Trust’s shares.

The Trust has adopted an Administrative Services Plan with respect to the Administrative Class shares of the Portfolio pursuant to Rule 12b-1 under the Act (the “Administrative Plan”). Under the terms of the Administrative Plan, the Trust is permitted to compensate the Distributor, out of the Administrative Class assets of the Portfolio, in an amount up to 0.15% on an annual basis of the average daily net assets of that class, for providing or procuring through financial intermediaries administrative, recordkeeping and investor services for Administrative Class shareholders of the Portfolio.

The Trust has adopted a separate Distribution and Servicing Plan for each of the Advisor Class and Class M shares of the Portfolio (the “Distribution and Servicing Plans”). The Distribution and Servicing Plans have been adopted pursuant to Rule 12b-1 under the Act. The Distribution and Servicing Plans permit the Portfolio to compensate the

ANNUAL REPORT DECEMBER 31, 2018 23

Notes to Financial Statements (Cont.)

Distributor for providing or procuring through financial intermediaries, distribution, administrative, recordkeeping, shareholder and/or related services with respect to Advisor Class and Class M shares. The Distribution and Servicing Plans permit the Portfolio to make total payments at an annual rate of up to 0.25% of its average daily net assets attributable to its Advisor Class or Class M shares, respectively. The Distribution and Servicing Plan for Class M shares also permits the Portfolio to compensate the Distributor for providing or procuring administrative, recordkeeping, and other investor services at an annual rate of up to 0.20% of its average daily net assets attributable to its Class M shares.

	Distribution Fee		Servicing Fee
Class M		0.25%		0.20%
Administrative Class		—		0.15%
Advisor Class		0.25%		—

(d) Portfolio Expenses  PIMCO provides or procures supervisory and administrative services for shareholders and also bears the costs of various third-party services required by the Portfolio, including audit, custodial, portfolio accounting, legal, transfer agency and printing costs. The Trust is responsible for the following expenses: (i) taxes and governmental fees; (ii) brokerage fees and commissions and other portfolio transaction expenses; (iii) the costs of borrowing money, including interest expense; (iv) fees and expenses of the Trustees who are not “interested persons” of PIMCO or the Trust, and any counsel retained exclusively for their benefit; (v) extraordinary expense, including costs of litigation and indemnification expenses; (vi) organizational expenses; and (vii) any expenses allocated or allocable to a specific class of shares, which include service fees payable with respect to the Administrative Class Shares, and may include certain other expenses as permitted by the Trust’s Multi-Class Plan adopted pursuant to Rule 18f-3 under the Act and subject to review and approval by the Trustees. The ratio of expenses to average net assets per share class, as disclosed on the Financial Highlights, may differ from the annual portfolio operating expenses per share class.

Each Trustee, other than those affiliated with PIMCO or its affiliates, receives an annual retainer of $41,200, plus $4,250 for each Board meeting attended in person, $850 for each committee meeting attended and $750 for each Board meeting attended telephonically, plus reimbursement of related expenses. In addition, the audit committee chair receives an additional annual retainer of $8,000, the valuation oversight committee lead receives an additional annual retainer of $8,500 (to the extent there are co-leads of the valuation oversight committee, the annual retainer will be split evenly between the co-leads, so that each co-lead individually receives an additional annual retainer of $4,250) and each other committee chair receives an additional annual retainer of $5,500. The Lead Independent Trustee receives an annual retainer of $7,000.

These expenses are allocated on a pro rata basis to each Portfolio of the Trust according to its respective net assets. The Trust pays no compensation directly to any Trustee or any other officer who is affiliated with the Administrator, all of whom receive remuneration for their services to the Trust from the Administrator or its affiliates.

(e) Expense Limitation  Pursuant to the Expense Limitation Agreement, PIMCO has agreed to waive a portion of the Portfolio’s Supervisory and Administrative Fee, or reimburse the Portfolio, to the extent that the Portfolio’s organizational expenses, pro rata share of expenses related to obtaining or maintaining a Legal Entity Identifier and pro rata share of Trustee Fees exceed 0.0049%, the “Expense Limit” (calculated as a percentage of the Portfolio’s average daily net assets attributable to each class). The Expense Limitation Agreement will automatically renew for one-year terms unless PIMCO provides written notice to the Trust at least 30 days prior to the end of the then current term.

Under certain conditions, PIMCO may be reimbursed for amounts waived pursuant to the Expense Limitation Agreement in future periods, not to exceed thirty-six months after the waiver. At December 31, 2018, there were no recoverable amounts.

(f) Acquired Fund Fees and Expenses  Underlying PIMCO Fund expenses incurred by the Portfolio, if any, will vary with changes in the expenses of the Underlying PIMCO Funds, as well as the allocation of the Portfolio’s assets.

The expenses associated with investing in a fund of funds are generally higher than those for mutual funds that do not invest in other mutual funds. The cost of investing in a fund of funds will generally be higher than the cost of investing in a mutual fund that invests directly in individual stocks and bonds. By investing in a fund of funds, an investor will indirectly bear fees and expenses charged by Underlying PIMCO Funds in addition to the Portfolio’s direct fees and expenses. In addition, the use of a fund of funds structure could affect the timing, amount and character of distributions to the shareholders and may therefore increase the amount of taxes payable by shareholders.

PIMCO has contractually agreed, through May 1, 2019, to waive its Investment Advisory Fee to the extent that the Investment Advisory Fees, Supervisory and Administrative Fees and Management Fees charged by PIMCO to the Underlying PIMCO Funds exceed 0.64% of the total assets invested in Underlying PIMCO Funds. This waiver will automatically renew for one-year terms unless PIMCO provides written notice to the Trust at least 30 days prior to the end of the then current term. In any month in which the investment advisory contract is in effect, PIMCO is entitled to reimbursement by the Portfolio of any portion of the Investment Advisory Fee waived as set forth above (the “Asset Allocation Reimbursement Amount”) during the previous thirty-six months, provided that such amount paid to PIMCO will not: 1) together with any Underlying PIMCO Fund Fees exceed, for such

24 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

month, the applicable expense limit; 2) exceed the total Asset Allocation Reimbursement Amount; or 3) include any amounts previously reimbursed to PIMCO. The recoverable amounts to PIMCO at December 31, 2018 were (amounts in thousands^†):

12 months		13-24 months		25-36 months		Total
$	1,234	$	916	$	965	$	3,115

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

The waivers are reflected on the Statement of Operations as a component of Waiver and/or Reimbursement by PIMCO. For the period ended December 31, 2018, the amount was $965,185.

9. RELATED PARTY TRANSACTIONS

The Adviser, Administrator, and Distributor are related parties. Fees paid to these parties are disclosed in Note 8, Fees and Expenses, and the accrued related party fee amounts are disclosed on the Statement of Assets and Liabilities.

10. GUARANTEES AND INDEMNIFICATIONS

Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust (including the Trust’s investment manager) is indemnified, to the extent permitted by the Act, against certain liabilities that may arise out of performance of their duties to the Portfolio. Additionally, in the normal course of business, the Portfolio enters into contracts that contain a variety of indemnification clauses. The Portfolio’s maximum exposure under these arrangements

is unknown as this would involve future claims that may be made against the Portfolio that have not yet occurred. However, the Portfolio has not had prior claims or losses pursuant to these contracts.

11. PURCHASES AND SALES OF SECURITIES

The length of time the Portfolio has held a particular security is not generally a consideration in investment decisions. A change in the securities held by the Portfolio is known as “portfolio turnover.” The Portfolio may engage in frequent and active trading of portfolio securities to achieve its investment objective, particularly during periods of volatile market movements. High portfolio turnover may involve correspondingly greater transaction costs to the Portfolio, including brokerage commissions or dealer mark-ups and other transaction costs on the sale of securities and reinvestments in other securities. Such sales may also result in realization of taxable capital gains, including short-term capital gains (which are generally taxed at ordinary income tax rates). The transaction costs and tax effects associated with portfolio turnover may adversely affect a shareholder’s performance. The portfolio turnover rates are reported in the Financial Highlights.

Purchases and sales of securities (excluding short-term investments) for the period ended December 31, 2018, were as follows (amounts in thousands^†):

U.S. Government/Agency				All Other
Purchases		Sales		Purchases		Sales
$	0	$	0	$	298,049	$	373,976

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

12. SHARES OF BENEFICIAL INTEREST

The Trust may issue an unlimited number of shares of beneficial interest with a $0.001 par value. Changes in shares of beneficial interest were as follows (shares and amounts in thousands^†):

	Year Ended 12/31/2018						Year Ended 12/31/2017
	Shares			Amount			Shares			Amount
Receipts for shares sold
Institutional Class		267		$	2,859			658		$	7,133
Class M		1,365			14,764			1,124			12,094
Administrative Class		1,873			19,794			4,448			46,830
Advisor Class		747			8,036			1,487			15,854
Issued as reinvestment of distributions
Institutional Class		40			414			40			435
Class M		213			2,224			285			3,109
Administrative Class		1,529			15,679			2,422			25,914
Advisor Class		596			6,185			956			10,344
Cost of shares redeemed
Institutional Class		(420	)		(4,421	)		(94	)		(997	)
Class M		(1,131	)		(12,043	)		(976	)		(10,509	)
Administrative Class		(9,829	)		(103,603	)		(9,447	)		(100,625	)
Advisor Class		(4,625	)		(49,209	)		(3,733	)		(40,083	)
Net increase (decrease) resulting from Portfolio share transactions		(9,375	)	$	(99,321	)		(2,830	)	$	(30,501	)

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

ANNUAL REPORT DECEMBER 31, 2018 25

Notes to Financial Statements (Cont.)

As of December 31, 2018, two shareholders each owned 10% or more of the Portfolio’s total outstanding shares comprising 57% of the Portfolio. One of the shareholders is a related party and comprises 45% of the Portfolio. Related parties may include, but are not limited to, the investment adviser and its affiliates, affiliated broker dealers, fund of funds and directors or employees of the Trust or Adviser.

13. REGULATORY AND LITIGATION MATTERS

The Portfolio is not named as a defendant in any material litigation or arbitration proceedings and is not aware of any material litigation or claim pending or threatened against it.

The foregoing speaks only as of the date of this report.

14. FEDERAL INCOME TAX MATTERS

The Portfolio intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code (the “Code”) and distribute all of its taxable income and net realized gains, if applicable, to shareholders. Accordingly, no provision for Federal income taxes has been made.

The Portfolio may be subject to local withholding taxes, including those imposed on realized capital gains. Any applicable foreign capital gains tax is accrued daily based upon net unrealized gains, and may be payable following the sale of any applicable investments.

In accordance with U.S. GAAP, the Adviser has reviewed the Portfolio’s tax positions for all open tax years. As of December 31, 2018, the Portfolio has recorded no liability for net unrecognized tax benefits relating to uncertain income tax positions it has taken or expects to take in future tax returns.

The Portfolio files U.S. federal, state, and local tax returns as required. The Portfolio’s tax returns are subject to examination by relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return but which can be extended to six years in certain circumstances. Tax returns for open years have incorporated no uncertain tax positions that require a provision for income taxes.

The Portfolio, through the Underlying PIMCO Funds, may gain exposure to the commodities markets primarily through index-linked notes, and may invest in other commodity-linked derivative investments, including commodity swap agreements, options, futures contracts, options on futures contracts and foreign funds investing in similar commodity-linked derivatives.

One of the requirements for favorable tax treatment as a regulated investment company under the Code is that the Portfolio must derive at

least 90% of its gross income from certain qualifying sources of income. The IRS has issued a revenue ruling which holds that income derived from commodity index-linked swaps is not qualifying income under Subchapter M of the Code. The IRS has also issued private letter rulings in which the IRS specifically concluded that income from certain commodity index- linked notes is qualifying income. The IRS has also issued private rulings in which the IRS specifically concluded that income derived from an investment in a subsidiary, which invests primarily in commodity-linked swaps, will also be qualifying income. Based on the reasoning in such rulings, the Portfolio will continue to seek to gain exposure to the commodity markets through indirect investments in a Subsidiary.

It should be noted, however, that the IRS currently has suspended the issuance of such rulings. In addition, the IRS also recently issued a revenue procedure, which states that the IRS will not in the future issue private letter rulings that would require a determination of whether an asset (such as a commodity index-linked note) is a “security” under the 1940 Act.

There can be no assurance that the IRS will not change its position relating to whether that income derived from commodity-linked notes and wholly-owned subsidiaries is qualifying income. Furthermore, the tax treatment of commodity-linked notes, other commodity-linked derivatives, may otherwise be adversely affected by future legislation, court decisions, Treasury Regulations and/or guidance issued by the IRS. Such developments could affect the character, timing and/or amount of the Portfolio’s taxable income or any distributions made by the Portfolio or result in the inability of the Portfolio or Underlying PIMCO Fund to operate as described in its Prospectus.

If, during a taxable year, the Underlying PIMCO Fund’s Commodity Subsidiary’s taxable losses (and other deductible items) exceed its income and gains, the net loss will not pass through to the Underlying PIMCO Fund as a deductible amount for income tax purposes. In the event that the Commodity Subsidiary’s taxable gains exceed its losses and other deductible items during a taxable year, the net gain will pass through to the Underlying PIMCO Fund as income for Federal income tax purposes.

Shares of the Portfolio currently are sold to segregated asset accounts (“Separate Accounts”) of insurance companies that fund variable annuity contracts and variable life insurance policies (“Variable Contracts”). Please refer to the prospectus for the Separate Account and Variable Contract for information regarding Federal income tax treatment of distributions to the Separate Account.

26 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

15. Federal Income Tax Matters

As of December 31, 2018, the components of distributable taxable earnings are as follows (amounts in thousands^†):

	Undistributed Ordinary Income(1)		Undistributed Long-Term Capital Gains		Net Tax Basis Unrealized Appreciation/ (Depreciation)(2)			Other Book-to-Tax Accounting Differences(3)		Accumulated Capital Losses(4)			Qualified Late-Year Loss Deferral - Capital(5)		Qualified Late-Year Loss Deferral - Ordinary(6)
PIMCO All Asset Portfolio	$	11,682	$	0	$	(40,300	)	$	0	$	(73,196	)	$	0	$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽¹⁾  Includes undistributed short-term capital gains, if any.

⁽²⁾  Adjusted for open wash sale loss deferrals.

⁽³⁾  Represents differences in income tax regulations and financial accounting principles generally accepted in the United States of America.

⁽⁴⁾  Capital losses available to offset future net capital gains expire in varying amounts as shown below.

⁽⁵⁾  Capital losses realized during the period November 1, 2018 through December 31, 2018 which the Portfolio elected to defer to the following taxable year pursuant to income tax regulations.

⁽⁶⁾  Specified losses realized during the period November 1, 2018 through December 31, 2018 which the Portfolio elected to defer to the following taxable year pursuant to income tax regulations.

Under the Regulated Investment Company Modernization Act of 2010, a fund is permitted to carry forward any new capital losses for an unlimited period. Additionally, such capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term under previous law.

As of December 31, 2018, the Portfolio had the following post-effective capital losses with no expiration (amounts in thousands^†):

	Short-Term		Long-Term
PIMCO All Asset Portfolio	$	18,017	$	55,179

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

As of December 31, 2018, the aggregate cost and the net unrealized appreciation/(depreciation) of investments for federal income tax purposes are as follows (amounts in thousands^†):

	Federal Tax Cost		Unrealized Appreciation		Unrealized (Depreciation)			Net  Unrealized Appreciation/ (Depreciation)(7)
PIMCO All Asset Portfolio	$	748,939	$	15,407	$	(55,706	)	$	(40,299	)

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽⁷⁾  Primary differences, if any, between book and tax net unrealized appreciation/(depreciation) on investments are attributable to open wash sale loss deferrals.

For the fiscal year ended December 31, 2018 and December 31, 2017, respectively, the Portfolio made the following tax basis distributions (amounts in thousands^†):

	December 31, 2018						December 31, 2017
	Ordinary Income Distributions(8)		Long-Term Capital Gain Distributions		Return of Capital(9)		Ordinary Income Distributions(8)		Long-Term Capital Gain Distributions		Return of Capital(9)
PIMCO All Asset Portfolio	$	24,502	$	0	$	0	$	38,449	$	0	$	1,353

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽⁸⁾  Includes short-term capital gains distributed, if any.

⁽⁹⁾  A portion of the distributions made represents a tax return of capital. Return of capital distributions have been reclassified from undistributed net investment income to paid-in capital to more appropriately conform financial accounting to tax accounting.

ANNUAL REPORT DECEMBER 31, 2018 27

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of PIMCO Variable Insurance Trust and Shareholders of PIMCO All Asset Portfolio

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of PIMCO All Asset Portfolio (one of the portfolios constituting PIMCO Variable Insurance Trust, referred to hereafter as the “Portfolio”) as of December 31, 2018, the related statement of operations for the year ended December 31, 2018, the statement of changes in net assets for each of the two years in the period ended December 31, 2018, including the related notes, and the financial highlights for each of the five years in the period ended December 31, 2018 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Portfolio as of December 31, 2018, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended December 31, 2018 and the financial highlights for each of the five years in the period ended December 31, 2018 in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Portfolio’s management. Our responsibility is to express an opinion on the Portfolio’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Portfolio in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2018 by correspondence with the custodian and transfer agent. We believe that our audits provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

Kansas City, Missouri

February 20, 2019

We have served as the auditor of one or more investment companies in PIMCO Variable Insurance Trust since 1998.

28 PIMCO VARIABLE INSURANCE TRUST

Glossary: (abbreviations that may be used in the preceding statements)

(Unaudited)

Currency Abbreviations:
USD (or $)	United States Dollar
Index/Spread Abbreviations:
RAFI	Research Affiliates Fundamental Index
Other Abbreviations:
TBA	To-Be-Announced

ANNUAL REPORT DECEMBER 31, 2018 29

Federal Income Tax Information

(Unaudited)

As required by the Internal Revenue Code (the "Code") and Treasury Regulations, if applicable, shareholders must be notified regarding the status of qualified dividend income and the dividend received deduction.

Dividend Received Deduction.  Corporate shareholders are generally entitled to take the dividend received deduction on the portion of a Fund's dividend distribution that qualifies under tax law. The percentage of the following Portfolio's fiscal 2018 ordinary income dividend that qualifies for the corporate dividend received deduction is set forth in the table below.

Qualified Dividend Income.  Under the Jobs and Growth Tax Relief Reconciliation Act of 2003 (the "Act"), the percentage of ordinary dividends paid during the calendar year designated as "qualified dividend income", as defined in the Act, subject to reduced tax rates in 2018 is set forth for the Portfolio in the table below.

Qualified Interest Income and Qualified Short-Term Capital Gain (for non-U.S. resident shareholders only).  Under the American Jobs Creation Act of 2004, the amounts of ordinary dividends paid during the fiscal year ended December 31, 2018 considered to be derived from “qualified interest income,” as defined in Section 871(k)(1)(E) of the Code, and therefore designated as interest-related dividends, as defined in Section 871(k)(1)(C) of the Code are set forth in the table below. Further, the amounts of ordinary dividends paid during the fiscal year ended December 31, 2018 considered to be derived from “qualified short-term capital gain,” as defined in Section 871(k)(2)(D) of the Code, and therefore designated as qualified short-term gain dividends, as defined by Section 871(k)(2)(C) of the Code are also set forth in the table below.

	Dividend Received Deduction %		Qualified Dividend Income %		Qualified Interest Income (000s† )		Qualified Short-Term Capital Gain (000s†)
PIMCO All Asset Portfolio		0.00%		3.93%	$	0	$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

Shareholders are advised to consult their own tax advisor with respect to the tax consequences of their investment in the Trust. In January 2019, you will be advised on IRS Form 1099-DIV as to the federal tax status of the dividends and distributions received by you in calendar year 2018.

30 PIMCO VARIABLE INSURANCE TRUST

Management of the Trust

(Unaudited)

The charts below identify the Trustees and executive officers of the Trust. Unless otherwise indicated, the address of all persons below is 650 Newport Center Drive, Newport Beach, CA 92660.

The Portfolio’s Statement of Additional Information includes more information about the Trustees and Officers. To request a free copy, call PIMCO at (888) 87-PIMCO or visit the Portfolio’s website at www.pimco.com/pvit.

Name, Year of Birth and Position Held with Trust*	Term of Office and Length of Time Served†	Principal Occupation(s) During Past 5 Years	Number of Funds in Fund Complex Overseen by Trustee	Other Public Company and Investment Company Directorships Held by Trustee During the Past 5 Years
Interested Trustees1
Peter G. Strelow** (1970) Chairman of the Board and Trustee	05/2017 to present Chairman of the Board - 02/2019 to present	Managing Director and Co-Chief Operating Officer, PIMCO. President of the Trust, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Chief Administrative Officer, PIMCO.	153	Chairman and Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT.
Brent R. Harris** (1959) Trustee	08/1997 to present	Managing Director, PIMCO. Senior Vice President of the Trust, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Formerly, member of Executive Committee, PIMCO.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT; Director, StocksPLUS® Management, Inc; and member of Board of Governors, Investment Company Institute. Formerly, Chairman, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT.
Independent Trustees
George E. Borst (1948) Trustee	04/2015 to present	Executive Advisor, McKinsey & Company (since 10/14); Formerly, Executive Advisor, Toyota Financial Services (10/13-12/14); and CEO, Toyota Financial Services (1/01-9/13).	132	Trustee, PIMCO Funds and PIMCO ETF Trust; Director, MarineMax Inc.
Jennifer Holden Dunbar (1963) Trustee	04/2015 to present	Managing Director, Dunbar Partners, LLC (business consulting and investments). Formerly, Partner, Leonard Green & Partners, L.P.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT; Director, PS Business Parks; Director, Big 5 Sporting Goods Corporation.
Kym M. Hubbard (1957) Trustee	02/2017 to present	Formerly, Global Head of Investments, Chief Investment Officer and Treasurer, Ernst & Young.	132	Trustee, PIMCO Funds and PIMCO ETF Trust; Director, State Auto Financial Corporation.
Gary F. Kennedy (1955) Trustee	04/2015 to present	Formerly, Senior Vice President, General Counsel and Chief Compliance Officer, American Airlines and AMR Corporation (now American Airlines Group) (1/03-1/14).	132	Trustee, PIMCO Funds and PIMCO ETF Trust.
Peter B. McCarthy (1950) Trustee	04/2015 to present	Formerly, Assistant Secretary and Chief Financial Officer, United States Department of Treasury; Deputy Managing Director, Institute of International Finance.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Ronald C. Parker (1951) Lead Independent Trustee	07/2009 to present Lead Independent Trustee - 02/2017 to present	Director of Roseburg Forest Products Company. Formerly, Chairman of the Board, The Ford Family Foundation; and President, Chief Executive Officer, Hampton Affiliates (forestry products).	153	Lead Independent Trustee, PIMCO Funds and PIMCO ETF Trust; Trustee, PIMCO Equity Series and PIMCO Equity Series VIT.

* Unless otherwise noted, the information for the individuals listed is as of December 31, 2018.

** Effective February 13, 2019, Mr. Strelow became the Chairman of the Trust.

¹  Mr. Harris and Mr. Strelow are “interested persons” of the Trust (as that term is defined in the 1940 Act) because of their affiliations with PIMCO.

^†  Trustees serve until their successors are duly elected and qualified.

ANNUAL REPORT DECEMBER 31, 2018 31

Management of the Trust (Cont.)

(Unaudited)

Executive Officers

Name, Year of Birth and Position Held with Trust	Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years*
Peter G. Strelow (1970) President	01/2015 to present	Managing Director and Co-Chief Operating Officer, PIMCO. President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Chief Administrative Officer, PIMCO.
Joshua D. Ratner (1976)** Chief Legal Officer	11/2018 to present Vice President - Senior Counsel and Secretary 11/2013 to 11/2018 Assistant Secretary 10/2007 to 01/2011	Executive Vice President and Deputy General Counsel, PIMCO. Chief Legal Officer, PIMCO Investments LLC. Chief Legal Officer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Jennifer E. Durham (1970) Chief Compliance Officer	07/2004 to present	Managing Director and Chief Compliance Officer, PIMCO. Chief Compliance Officer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Brent R. Harris (1959) Senior Vice President	01/2015 to present President 03/2009 to 01/2015	Managing Director, PIMCO. Senior Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Formerly, member of Executive Committee, PIMCO.
Ryan G. Leshaw (1980) Vice President, Senior Counsel and Secretary	11/2018 to present Assistant Secretary 05/2012 to 11/2018	Senior Vice President and Senior Counsel, PIMCO. Vice President, Senior Counsel and Secretary, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Assistant Secretary, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Associate, Willkie Farr & Gallagher LLP.
Wu-Kwan Kit (1981) Assistant Secretary	08/2017 to present	Senior Vice President and Senior Counsel, PIMCO. Assistant Secretary, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Vice President, Senior Counsel and Secretary, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Assistant General Counsel, VanEck Associates Corp.
Stacie D. Anctil (1969) Vice President	05/2015 to present Assistant Treasurer 11/2003 to 05/2015	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
William G. Galipeau (1974) Vice President	11/2013 to present	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Eric D. Johnson (1970) Vice President	05/2011 to present	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Henrik P. Larsen (1970) Vice President	02/1999 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Bijal Y. Parikh (1978) Vice President	02/2017 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Greggory S. Wolf (1970) Vice President	05/2011 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Trent W. Walker (1974) Treasurer	11/2013 to present	Executive Vice President, PIMCO. Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Erik C. Brown (1967)** Assistant Treasurer	02/2001 to present	Executive Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Colleen D. Miller (1980)** Assistant Treasurer	02/2017 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Christopher M. Morin (1980) Assistant Treasurer	08/2016 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Jason J. Nagler (1982)** Assistant Treasurer	05/2015 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.

* The term “PIMCO-Sponsored Closed-End Funds” as used herein includes: PIMCO California Municipal Income Fund, PIMCO California Municipal Income Fund II, PIMCO California Municipal Income Fund III, PIMCO Municipal Income Fund, PIMCO Municipal Income Fund II, PIMCO Municipal Income Fund III, PIMCO New York Municipal Income Fund, PIMCO New York Municipal Income Fund II, PIMCO New York Municipal Income Fund III, PCM Fund Inc., PIMCO Corporate & Income Opportunity Fund, PIMCO Corporate & Income Strategy Fund, PIMCO Dynamic Credit and Mortgage Income Fund, PIMCO Dynamic Income Fund, PIMCO Global StocksPLUS^® & Income Fund, PIMCO High Income Fund, PIMCO Income Opportunity Fund, PIMCO Income Strategy Fund, PIMCO Income Strategy Fund II and PIMCO Strategic Income Fund, Inc.; the term “PIMCO-Sponsored Interval Funds” as used herein includes: PIMCO Flexible Credit Income Fund and PIMCO Flexible Municipal Income Fund.

** The address of these officers is Pacific Investment Management Company LLC, 1633 Broadway, New York, New York 10019.

32 PIMCO VARIABLE INSURANCE TRUST

Privacy Policy¹

(Unaudited)

The Trust^2,3 considers customer privacy to be a fundamental aspect of its relationships with shareholders and is committed to maintaining the confidentiality, integrity and security of its current, prospective and former shareholders’ non-public personal information. The Trust has developed policies that are designed to protect this confidentiality, while allowing shareholder needs to be served.

OBTAINING PERSONAL INFORMATION

In the course of providing shareholders with products and services, the Trust and certain service providers to the Trust, such as the Trust’s investment advisers or sub-advisers (“Advisers”), may obtain non-public personal information about shareholders, which may come from sources such as account applications and other forms, from other written, electronic or verbal correspondence, from shareholder transactions, from a shareholder’s brokerage or financial advisory firm, financial advisor or consultant, and/or from information captured on applicable websites.

RESPECTING YOUR PRIVACY

As a matter of policy, the Trust does not disclose any non-public personal information provided by shareholders or gathered by the Trust to non-affiliated third parties, except as required or permitted by law or as necessary for such third parties to perform their agreements with respect to the Trust. As is common in the industry, non-affiliated companies may from time to time be used to provide certain services, such as preparing and mailing prospectuses, reports, account statements and other information, conducting research on shareholder satisfaction and gathering shareholder proxies. The Trust or its affiliates may also retain non-affiliated companies to market the Trust’s shares or products which use the Trust’s shares and enter into joint marketing arrangements with them and other companies. These companies may have access to a shareholder’s personal and account information, but are permitted to use this information solely to provide the specific service or as otherwise permitted by law. In most cases, the shareholders will be clients of a third party, but the Trust may also provide a shareholder’s personal and account information to the shareholder’s respective brokerage or financial advisory firm and/or financial advisor or consultant.

SHARING INFORMATION WITH THIRD PARTIES

The Trust reserves the right to disclose or report personal or account information to non-affiliated third parties in limited circumstances where the Trust believes in good faith that disclosure is required under law, to cooperate with regulators or law enforcement authorities, to protect its rights or property, or upon reasonable request by any fund advised by PIMCO in which a shareholder has invested. In addition, the Trust may disclose information about a shareholder or a shareholder’s accounts to a non-affiliated third party at the shareholder’s request or with the consent of the shareholder.

SHARING INFORMATION WITH AFFILIATES

The Trust may share shareholder information with its affiliates in connection with servicing shareholders’ accounts, and subject to applicable law may provide shareholders with information about products and services that the Trust or its Advisers, distributors or their affiliates (“Service Affiliates”) believe may be of interest to such shareholders. The information that the Trust may share may include,

for example, a shareholder’s participation in the Trust or in other investment programs sponsored by a Service Affiliate, a shareholder’s ownership of certain types of accounts (such as IRAs), information about the Trust’s experiences or transactions with a shareholder, information captured on applicable websites, or other data about a shareholder’s accounts, subject to applicable law. The Trust’s Service Affiliates, in turn, are not permitted to share shareholder information with non-affiliated entities, except as required or permitted by law.

PROCEDURES TO SAFEGUARD PRIVATE INFORMATION

The Trust takes seriously the obligation to safeguard shareholder non-public personal information. In addition to this policy, the Trust has implemented procedures that are designed to restrict access to a shareholder’s non-public personal information to internal personnel who need to know that information to perform their jobs, such as servicing shareholder accounts or notifying shareholders of new products or services. Physical, electronic and procedural safeguards are in place to guard a shareholder’s non-public personal information.

INFORMATION COLLECTED FROM WEBSITES

Websites maintained by the Trust or its service providers may use a variety of technologies to collect information that help the Trust and its service providers understand how the website is used. Information collected from your web browser (including small files stored on your device that are commonly referred to as “cookies”) allow the websites to recognize your web browser and help to personalize and improve your user experience and enhance navigation of the website. In addition, the Trust or its Service Affiliates may use third parties to place advertisements for the Trust on other websites, including banner advertisements. Such third parties may collect anonymous information through the use of cookies or action tags (such as web beacons). The information these third parties collect is generally limited to technical and web navigation information, such as your IP address, web pages visited and browser type, and does not include personally identifiable information such as name, address, phone number or email address. If you are a registered user of the Trust’s website, the Trust or their service providers or third party firms engaged by the Trust or their service providers may collect or share information submitted by you, which may include personally identifiable information. This information can be useful to the Trust when assessing and offering services and website features. You can change your cookie preferences by changing the setting on your web browser to delete or reject cookies. If you delete or reject cookies, some website pages may not function properly. The Trust does not look for web browser “do not track” requests.

CHANGES TO THE PRIVACY POLICY

From time to time, the Trust may update or revise this privacy policy. If there are changes to the terms of this privacy policy, documents containing the revised policy on the relevant website will be updated.

¹ Amended as of February 15, 2017.

² PIMCO Investments LLC (“PI”) serves as the Trust’s distributor. This Privacy Policy applies to the activities of PI to the extent that PI regularly effects or engages in transactions with or for a Trust shareholder who is the record owner of such shares. For purposes of this Privacy Policy, references to “the Trust” shall include PI when acting in this capacity.

³ When distributing this Policy, the Trust may combine the distribution with any similar distribution of its investment adviser’s privacy policy. The distributed, combined policy may be written in the first person (i.e., by using “we” instead of “the Trust”).

ANNUAL REPORT DECEMBER 31, 2018 33

Approval of Investment Advisory Contract and Other Agreements

Approval of Renewal of the Amended and Restated Investment Advisory Contract, Supervision and Administration Agreement and Amended and Restated Asset Allocation Sub-Advisory Agreement

At a meeting held on August 20-21, 2018, the Board of Trustees (the “Board”) of PIMCO Variable Insurance Trust (the “Trust”), including the Trustees who are not “interested persons” of the Trust under the Investment Company Act of 1940, as amended (the “Independent Trustees”), considered and unanimously approved the renewal of the Amended and Restated Investment Advisory Contract (the “Investment Advisory Contract”) between the Trust, on behalf of each of the Trust’s series (the “Portfolios”), and Pacific Investment Management Company LLC (“PIMCO”) for an additional one-year term through August 31, 2019. The Board also considered and unanimously approved the renewal of the Supervision and Administration Agreement (together with the Investment Advisory Contract, the “Agreements”) between the Trust, on behalf of the Portfolios, and PIMCO for an additional one-year term through August 31, 2019. In addition, the Board considered and unanimously approved the renewal of the Amended and Restated Asset Allocation Sub-Advisory Agreement (the “Asset Allocation Agreement”) between PIMCO, on behalf of PIMCO All Asset Portfolio and PIMCO All Asset All Authority Portfolio, each a series of the Trust, and Research Affiliates, LLC (“Research Affiliates”) for an additional one-year term through August 31, 2019.

The information, material factors and conclusions that formed the basis for the Board’s approvals are summarized below.

1. INFORMATION RECEIVED

(a) Materials Reviewed:  During the course of the past year, the Trustees received a wide variety of materials relating to the services provided by PIMCO and Research Affiliates to the Trust. At each of its quarterly meetings, the Board reviewed the Portfolios’ investment performance and a significant amount of information relating to Portfolio operations, including shareholder services, valuation and custody, the Portfolios’ compliance program and other information relating to the nature, extent and quality of services provided by PIMCO and Research Affiliates to the Trust and each of the Portfolios, as applicable. In considering whether to approve the renewal of the Agreements and the Asset Allocation Agreement, the Board reviewed additional information, including, but not limited to, comparative industry data with regard to investment performance, advisory and supervisory and administrative fees and expenses, financial information for PIMCO and, where relevant, Research Affiliates, information regarding the profitability to PIMCO of its relationship with the Portfolios, information about the personnel providing investment management services, other advisory services and supervisory and administrative services to the Portfolios, and information about the fees

charged and services provided to other clients with similar investment mandates as the Portfolios, where applicable. In addition, the Board reviewed materials provided by counsel to the Trust and the Independent Trustees, which included, among other things, memoranda outlining legal duties of the Board in considering the renewal of the Agreements and the Asset Allocation Agreement.

(b) Review Process:  In connection with considering the renewal of the Agreements and the Asset Allocation Agreement, the Board reviewed written materials prepared by PIMCO and, where applicable, Research Affiliates in response to requests from counsel to the Trust and the Independent Trustees encompassing a wide variety of topics. The Board requested and received assistance and advice regarding, among other things, applicable legal standards from counsel to the Trust and the Independent Trustees, and reviewed comparative fee and performance data prepared at the Board’s request by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company performance information and fee and expense data. The Board received information on matters related to the Agreements and the Asset Allocation Agreement and met both as a full Board and in a separate session of the Independent Trustees, without management present, at the August 20-21, 2018 meeting. The Independent Trustees also conducted in-person meetings with counsel to the Trust and the Independent Trustees, including one on July 18, 2018, to discuss the Lipper Report, as defined below, and certain aspects of the 2018 15(c) materials presented and other matters deemed relevant to their consideration of the renewal of the Agreements and the Asset Allocation Agreement. In connection with its review of the Agreements, the Board received comparative information on the performance and the fees and expenses of other peer group funds and share classes. In addition, the Independent Trustees requested and received supplemental information.

The approval determinations were made on the basis of each Trustee’s business judgment after consideration and evaluation of all the information presented. Individual Trustees may have given different weights to certain factors and assigned various degrees of materiality to information received in connection with the approval process. In deciding to approve the renewal of the Agreements and the Asset Allocation Agreement, the Board did not identify any single factor or particular information that, in isolation, was controlling. The discussion below is intended to summarize the broad factors and information that figured prominently in the Board’s consideration of the renewal of the Agreements and the Asset Allocation Agreement, but is not intended to summarize all of the factors considered by the Board.

2. NATURE, EXTENT AND QUALITY OF SERVICES

(a) PIMCO, Research Affiliates, their Personnel, and Resources:  The Board considered the depth and quality of PIMCO’s investment management process, including: the experience, capability and integrity

34 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

of its senior management and other personnel; the overall financial strength and stability of its organization; and the ability of its organizational structure to address changes in the Portfolios’ asset levels. The Board also considered the various services in addition to portfolio management that PIMCO provides under the Investment Advisory Contract. The Board noted that PIMCO makes available to its investment professionals a variety of resources and systems relating to investment management, compliance, trading, performance and portfolio accounting. The Board also noted PIMCO’s commitment to enhancing and investing in its global infrastructure, technology capabilities, risk management processes and the specialized talent needed to stay at the forefront of the competitive investment management industry and to strengthen its ability to deliver services under the Agreements. The Board considered PIMCO’s policies, procedures and systems reasonably designed to assure compliance with applicable laws and regulations and its commitment to further developing and strengthening these programs, its oversight of matters that may involve conflicts of interest between the Portfolios’ investments and those of other accounts managed by PIMCO, and its efforts to keep the Trustees informed about matters relevant to the Portfolios and their shareholders. The Board also considered PIMCO’s continuous investment in new disciplines and talented personnel, which has enhanced PIMCO’s services to the Portfolios and has allowed PIMCO to introduce innovative new portfolios over time. In addition, the Board considered the nature and quality of services provided by PIMCO to the wholly-owned subsidiaries of certain applicable Portfolios.

The Trustees considered that PIMCO has continued to strengthen the process it uses to actively manage counterparty risk and to assess the financial stability of counterparties with which the Portfolios do business, to manage collateral and to protect Portfolios from an unforeseen deterioration in the creditworthiness of trading counterparties. The Trustees noted that, consistent with its fiduciary duty, PIMCO executes transactions through a competitive best execution process and uses only those counterparties that meet its stringent and monitored criteria. The Trustees considered that PIMCO’s collateral management team utilizes a counterparty risk system to analyze portfolio level exposure and collateral being exchanged with counterparties.

In addition, the Trustees considered new services and service enhancements that PIMCO has implemented since the Board renewed the Agreements in 2017, including, but not limited to upgrading the global network and infrastructure to support trading and risk management systems; enhancing and continuing to expand capabilities within the pre-trade compliance platform; enhancing flexible client reporting capabilities to support increased differentiation within local markets; developing new application and database frameworks to support new trading strategies; expanding proprietary applications

suites to enrich capabilities across Compliance, Analytics, Risk Management, Client Reporting, Attribution and Customer Relationship management; continuing investment in its enterprise risk management function, including PIMCO’s cybersecurity program and global business continuity functions; oversight by the Americas Fund Oversight Committee, which provides senior-level oversight and supervision focused on new and ongoing fund-related business opportunities; engaging a third party service provider to implement the SEC reporting modernization regime; expanding the Fund Treasurer’s Office; enhancing a proprietary application to provide portfolio managers with more timely and high quality income reporting; developing a global tax management application that will enable investment professionals to access foreign market and security tax information on a real-time basis; enhancing reporting of tax reporting for portfolio managers for income products with improved transparency on tax factors impacting income generation and dividend yield; upgrading a proprietary application to allow shareholder subscription and redemption data to pass to portfolio managers more quickly and efficiently; and continuing to expand the pricing portal and the proprietary performance reconciliation tool.

Similarly, the Board considered the asset allocation services provided by Research Affiliates to the PIMCO All Asset Portfolio and PIMCO All Asset All Authority Portfolio. The Board further considered PIMCO’s oversight of Research Affiliates in connection with Research Affiliates providing asset allocation services to the Asset Portfolio and All Asset All Authority Portfolio. The Board also considered the depth and quality of Research Affiliates’ investment management and research capabilities, the experience and capabilities of its portfolio management personnel and the overall financial strength of the organization.

Ultimately, the Board concluded that the nature, extent and quality of services provided or procured by PIMCO under the Agreements and provided by Research Affiliates under the Asset Allocation Agreement are likely to continue to benefit the Portfolios and their respective shareholders, as applicable.

(b) Other Services:  The Board also considered the nature, extent and quality of supervisory and administrative services provided by PIMCO to the Portfolios under the Supervision and Administration Agreement.

The Board considered the terms of the Supervision and Administration Agreement, under which the Trust pays for the supervisory and administrative services provided pursuant to that agreement under what is essentially an all-in fee structure (the “unified fee”). In return, PIMCO provides or procures certain supervisory and administrative services and bears the costs of various third party services required by the Portfolios, including audit, custodial, portfolio accounting, legal, transfer agency, sub-accounting and printing costs. The Board noted that the scope and complexity, as well as the costs, of the supervisory

ANNUAL REPORT DECEMBER 31, 2018 35

Approval of Investment Advisory Contract and Other Agreements (Cont.)

and administrative services provided by PIMCO under the Supervision and Administration Agreement continue to increase. The Board considered PIMCO’s provision of supervisory and administrative services and its supervision of the Trust’s third party service providers to assure that these service providers continue to provide a high level of service relative to alternatives available in the market.

Ultimately, the Board concluded that the nature, extent and quality of the services provided by PIMCO has benefited, and will likely continue to benefit, the Portfolios and their shareholders.

3. INVESTMENT PERFORMANCE

The Board reviewed information from PIMCO concerning the Portfolios’ performance, as available, over short- and long-term periods ended March 31, 2018 and other performance data, as available, over short- and long-term periods ended June 30, 2018 (the “PIMCO Report”) and from Broadridge concerning the Portfolios’ performance, as available, over short- and long-term periods ended March 31, 2018 (the “Lipper Report”).

The Board considered information regarding both the short- and long-term investment performance of each Portfolio relative to its peer group and relevant benchmark index as provided to the Board in advance of each of its quarterly meetings throughout the year, including the PIMCO Report and Lipper Report, which were provided in advance of the August 20-21, 2018 meeting. The Trustees noted that many of the Portfolios outperformed their respective Lipper medians on a net-of-fees basis over the three-, five- and ten-year periods ended March 31, 2018. The Board also noted that, as of March 31, 2018, the Administrative Class of 72%, 35% and 73% of the Portfolios outperformed their respective Lipper category median on a net-of-fees basis over the three-, five- and ten-year periods, respectively. The Trustees considered that other classes of each Portfolio would have substantially similar performance to that of the Administrative Class of the relevant Portfolio on a relative basis because all of the classes are invested in the same portfolio of investments and that differences in performance among classes could principally be attributed to differences in the supervisory and administrative fees and distribution and servicing expenses of each class. The Board also considered that the investment objectives of certain of the Portfolios may not always be identical to those of the other funds in their respective peer groups and that the Lipper categories do not: separate funds based upon maturity or duration; account for the applicable Portfolios’ hedging strategies; distinguish between enhanced index and actively managed equity strategies; include as many subsets as the Portfolios offer (i.e., Portfolios may be placed in a “catch-all” Lipper category to which they do not properly belong); or account for certain fee waivers. The Board noted that, due to these differences, performance comparisons between certain of the Portfolios and their so-called peers may not be

particularly relevant to the consideration of Portfolio performance but found the comparative information supported its overall evaluation.

The Board noted that performance for a majority of the Portfolios has been mixed compared to their respective benchmark indexes over the five-year period ended March 31, 2018. The Board noted that, as of March 31, 2018, 70%, 23% and 92% of the Trust’s assets (based on Administrative Class performance) outperformed their respective benchmarks on a net-of-fees basis over the three-, five- and ten-year periods, respectively. The Board also discussed actions that have been taken by PIMCO to attempt to improve performance and took note of PIMCO’s plans to monitor performance going forward.

The Board considered PIMCO’s discussion of the intensive nature of managing bond funds, noting that it requires the management of a number of factors, including: varying maturities; prepayments; collateral management; counterparty management; pay-downs; credit and corporate events; workouts; derivatives; net new issuance in the bond market; and decreased market maker inventory levels. The Board noted that in addition to managing these factors, PIMCO must also balance risk controls and strategic positions in each portfolio it manages, including the Portfolios. Despite these challenges, the Board noted PIMCO’s ability to generate non-market correlated excess performance for its clients over time, including the Trust.

The Board ultimately concluded, within the context of all of its considerations in connection with the Agreements, that PIMCO’s performance record and process in managing the Portfolios indicates that its continued management is likely to benefit the Portfolios and their shareholders, and merits the approval of the renewal of the Agreements.

4. ADVISORY FEES, SUPERVISORY AND ADMINISTRATIVE FEES AND TOTAL EXPENSES

The Board considered that PIMCO seeks to price new funds and classes to scale. PIMCO reported to the Board that, in proposing fees for any Portfolio or class of shares, it considers a number of factors, including, but not limited to, the type and complexity of the services provided, the cost of providing services, the risk assumed by PIMCO in the development of products and the provision of services and the competitive marketplace for financial products. Fees charged to or proposed for different Portfolios for advisory services and supervisory and administrative services may vary in light of these various factors. The Board considered that portfolio pricing generally is not driven by comparison to passively-managed products.

In addition, PIMCO reported to the Board that it periodically reviews the fees charged to the Portfolios. The Board noted that, based upon this review, PIMCO may propose advisory fee or supervisory and administrative fee changes where (i) a Portfolio’s long-term performance warrants additional consideration; (ii) there is a notable aid to market

36 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

position; (iii) a Portfolio’s fee does not reflect the current level of supervision or administrative fees provided to the Portfolio; or (iv) PIMCO would like to change a Portfolio’s overall strategic positioning.

The Board reviewed the advisory fees, supervisory and administrative fees and total expenses of the Portfolios (each as a percentage of average net assets) and compared such amounts with the average and median fee and expense levels of other similar funds. The Board also reviewed information relating to the sub-advisory fees paid to Research Affiliates with respect to applicable Portfolios, taking into account that PIMCO compensates Research Affiliates from the advisory fees paid by such Portfolios to PIMCO. With respect to advisory fees, the Board reviewed data from Broadridge that compared the average and median advisory fees of other funds in a “Peer Group” of comparable funds, as well as the universe of other similar funds. The Board noted that a number of Portfolios have total expense ratios that fall below the average and median expense ratios in their Peer Group and Lipper universe. In addition, the Board considered fee waivers in place for certain of the Portfolios and also noted the fee waivers in place with respect to the advisory fee and supervisory and administrative fee that might result from investments by applicable Portfolios in their respective wholly-owned subsidiaries. The Board also considered that PIMCO reviews the Portfolios’ fee levels and carefully considers changes where appropriate.

The Board also reviewed data comparing the Portfolios’ advisory fees to the standard and negotiated fee rates PIMCO charges to separate accounts, collective investment trusts and sub-advised clients with similar investment strategies. In cases where the fees for other clients were lower than those charged to the Portfolios, the Trustees noted that the differences in fees were attributable to various factors, including, but not limited to, differences in the advisory and other services provided by PIMCO to the Portfolios, differences in the number or extent of the services provided by PIMCO to the Portfolios, the manner in which similar portfolios may be managed, different requirements with respect to liquidity management and the implementation of other regulatory requirements, and the fact that separate accounts may have other contractual arrangements or arrangements across PIMCO strategies that justify different levels of fees. The Board considered that, with respect to collective investment trusts, PIMCO performs fewer or less extensive services because collective investment trusts are generally exempt from SEC regulation; investors in a collective investment trust may receive shareholder services from a trustee bank, rather than PIMCO; collective investment trusts have less regulatory disclosure; and the management structure of collective investment trusts differs from that of funds. The Trustees also considered that PIMCO faces increased entrepreneurial, legal and regulatory risk in sponsoring and managing mutual funds and ETFs as compared to separate accounts, external sub-advised funds or other investment products.

Regarding advisory fees charged by PIMCO in its capacity as sub-adviser to third party/unaffiliated funds, the Trustees took into account that such fees may be lower than the fees charged by PIMCO to serve as adviser to the Portfolios. The Trustees also took into account that there are various reasons for any such differences in fees, including, but not limited to, the fact that PIMCO may be subject to varying levels of entrepreneurial risk and regulatory requirements, differing legal liabilities on a contract-by-contract basis and different servicing requirements when PIMCO does not serve as the sponsor of a fund and is not principally responsible for all aspects of a fund’s investment program and operations as compared to when PIMCO serves as investment adviser and sponsor.

The Board considered the Portfolios’ supervisory and administrative fees, comparing them to similar funds in the report supplied by Broadridge. The Board also considered that as the Portfolios’ business has become increasingly complex and the number of Portfolios has grown over time, PIMCO has provided an increasingly broad array of fund supervisory and administrative functions. In addition, the Board considered the Trust’s unified fee structure, under which the Trust pays for the supervisory and administrative services it requires for one set fee. In return for this unified fee, PIMCO provides or procures supervisory and administrative services and bears the costs of various third party services required by the Portfolios, including audit, custodial, portfolio accounting, legal, transfer agency, sub-accounting and printing costs. The Board further considered that many other funds pay for comparable services separately, and thus it is difficult to directly compare the Trust’s unified supervisory and administrative fees with the fees paid by other funds for administrative services alone. The Board also considered that the unified supervisory and administrative fee leads to Portfolio fees that are fixed over the contract period, rather than variable. The Board noted that, although the unified fee structure does not have breakpoints, it implicitly reflects economies of scale by fixing the absolute level of Portfolio fees at competitive levels over the contract period even if the Portfolios’ operating costs rise when assets remain flat or decrease. Other factors the Board considered in assessing the unified fee include PIMCO’s approach of pricing Portfolios to scale at inception and reinvesting in other important areas of the business that support the Portfolios. The Board considered that the Portfolios’ unified fee structure meant that fees were not impacted by recent outflows in certain Portfolios, unlike funds without a unified fee structure, which may see increased expense ratios when fixed costs, such as service provider costs, are passed through to a smaller asset base. The Board considered historical advisory and supervisory and administrative fee reductions implemented for different Portfolios and classes, noting that the unified fee can be increased or decreased in subsequent contractual periods and is subject to the periodic reviews discussed above. The Board noted that, with few exceptions, PIMCO

ANNUAL REPORT DECEMBER 31, 2018 37

Approval of Investment Advisory Contract and Other Agreements (Cont.)

has generally maintained Portfolio fees at the same level as implemented when the unified fee was adopted, and has reduced fees for a number of Portfolios in prior years. The Board concluded that the Portfolios’ supervisory and administrative fees were reasonable in relation to the value of the services provided, including the services provided to different classes of shareholders, and that the expenses assumed contractually by PIMCO under the Supervision and Administration Agreement represent, in effect, a cap on overall Portfolio fees during the contractual period, which is beneficial to the Portfolios and their shareholders.

The Board considered the Portfolios’ total expenses and discussed with PIMCO those Portfolios and/or classes of Portfolios that had above median total expenses. The Board noted that many of the Portfolios are unique products that have few peers, if any, and cannot easily be grouped with comparable funds. Upon comparing the Portfolios’ total expenses to other funds in the “Peer Groups” provided by Broadridge, the Board found total expenses of each Portfolio to be reasonable.

The Trustees also considered the advisory fees charged to the Portfolios that operate as funds of funds (the “Funds of Funds”) and the advisory services provided in exchange for such fees. The Trustees determined that such services were in addition to the advisory services provided to the underlying funds in which the Funds of Funds may invest and, therefore, such services were not duplicative of the advisory services provided to the underlying funds. The Board also considered the various fee waiver agreements in place for the Funds of Funds. The Board noted that PIMCO is continuing waivers for these Funds of Funds, as well as for certain other Portfolios of the Trust.

Based on the information presented by PIMCO, Research Affiliates and Broadridge, members of the Board determined, in the exercise of their business judgment, that the level of the advisory fees and supervisory and administrative fees charged by PIMCO under the Agreements, as well as the total expenses of each Portfolio, after the proposals to decrease the management fee, are reasonable.

5. ADVISER COSTS, LEVEL OF PROFITS AND ECONOMIES OF SCALE

The Board reviewed information regarding PIMCO’s costs of providing services to the Funds as a whole, as well as the resulting level of profits to PIMCO under both the adjusted asset profitability method and the profit and loss profitability method, which were each utilized to calculate profitability. To the extent applicable, the Board also reviewed information regarding the portion of a Portfolio’s advisory fee retained by PIMCO, following the payment of sub-advisory fees to Research Affiliates, with respect to the Portfolio. Additionally, the Board noted that profit margins with respect to the Trust shows that the Trust is profitable, although less so than PIMCO Funds due to payments made

by PIMCO to participating insurance companies. The Board further noted PIMCO’s engagement of a third party to review and to make recommendations regarding PIMCO’s processes supporting its profitability estimation materials. The Board also noted that it had received information regarding the structure and manner in which PIMCO’s investment professionals were compensated, and PIMCO’s view of the relationship of such compensation to the attraction and retention of quality personnel. The Board considered PIMCO’s need to invest in global infrastructure, technology capabilities, risk management processes and qualified personnel to reinforce and offer new services and to accommodate changing regulatory requirements.

With respect to potential economies of scale, the Board noted that PIMCO shares the benefits of economies of scale with the Portfolios and their shareholders in a number of ways, including investing in portfolio and trade operations management, firm technology, middle and back office support, legal and compliance, and fund administration logistics, senior management supervision, governance and oversight of those services, and through fee reductions or waivers, the pricing of Portfolios to scale from inception, and the enhancement of services provided to the Portfolios in return for fees paid. The Board reviewed the history of the Portfolios’ fee structure. The Board considered that the Portfolios’ unified fee rates had been set competitively and/or priced to scale from inception, had been held steady during the contractual period at that scaled competitive rate for most Portfolios as assets grew, or as assets declined in the case of some Portfolios, and continued to be competitive compared with peers. The Board also considered that the unified fee is a transparent means of informing a Portfolio’s shareholders of the fees associated with the Portfolio, and that the Portfolio bears certain expenses that are not covered by the advisory fee or the unified fee. The Board further considered the challenges that arise when managing large funds, which can result in certain “diseconomies” of scale and noted that PIMCO has continued to reinvest in many areas of the business to support the Portfolios.

The Trustees considered that the unified fee has provided inherent economies of scale because a Portfolio maintains competitive fixed fees over the annual contract period even if the particular Portfolio’s assets decline and/or operating costs rise. The Trustees further considered that, in contrast, breakpoints may be a proxy for charging higher fees on lower asset levels and that when a fund’s assets decline, breakpoints may reverse, which causes expense ratios to increase. The Trustees also considered that, unlike the Portfolios’ unified fee structure, funds with “pass through” administrative fee structures may experience increased expense ratios when fixed dollar fees are charged against declining fund assets. The Trustees also considered that the unified fee protects shareholders from a rise in operating costs that may result from, among other things, PIMCO’s investments in various business enhancements and infrastructure, including those referenced above. The Trustees noted that PIMCO’s investments in these areas are extensive.

38 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

The Board concluded that the Portfolios’ cost structures were reasonable and that PIMCO is appropriately sharing economies of scale, if any, through the Portfolios’ unified fee structure, generally pricing Portfolios to scale at inception and reinvesting in its business to provide enhanced and expanded services to the Portfolios and their shareholders.

6. ANCILLARY BENEFITS

The Board considered other benefits realized by PIMCO and its affiliates as a result of PIMCO’s relationship with the Trust. Such benefits may include possible ancillary benefits to PIMCO’s institutional investment management business due to the reputation and market penetration of the Trust or third party service providers’ relationship-level fee concessions, which decrease fees paid by PIMCO. The Board also considered that affiliates of PIMCO provide distribution and/or shareholder services to the Portfolios and their shareholders, for which they may be compensated through distribution and servicing fees paid pursuant to the Portfolios’ Rule 12b-1 plans or otherwise. The Board reviewed PIMCO’s soft dollar policies and procedures, noting that while PIMCO has the authority to receive the benefit of research provided by broker-dealers executing portfolio transactions on behalf of the Portfolios, it has adopted a policy not to enter into contractual soft dollar arrangements.

7. CONCLUSIONS

Based on their review, including their comprehensive consideration and evaluation of each of the broad factors and information summarized above, the Independent Trustees and the Board as a whole concluded that the nature, extent and quality of the services rendered to the Portfolios by PIMCO and Research Affiliates supported the renewal of the Agreements and the Asset Allocation Agreement. The Independent Trustees and the Board as a whole concluded that the Agreements and the Asset Allocation Agreement continued to be fair and reasonable to the Portfolios and their shareholders, that the Portfolios’ shareholders received reasonable value in return for the fees paid to PIMCO by the Portfolios under the Agreements and the fees paid to Research Affiliates by PIMCO under the Asset Allocation Agreement, and that the renewal of the Agreements and the Asset Allocation Agreement was in the best interests of the Portfolios and their shareholders.

ANNUAL REPORT DECEMBER 31, 2018 39

General Information

Investment Adviser and Administrator

Pacific Investment Management Company LLC

650 Newport Center Drive

Newport Beach, CA 92660

Asset Allocation Sub-Adviser

Research Affiliates, LLC

620 Newport Center Drive, Suite 900

Newport Beach, CA 92660

Distributor

PIMCO Investments LLC

1633 Broadway

New York, NY 10019

Custodian

State Street Bank and Trust Company

801 Pennsylvania Avenue

Kansas City, MO 64105

Transfer Agent

DST Asset Manager Solutions, Inc.

430 W 7th Street STE 219024

Kansas City, MO 64105-1407

Legal Counsel

Dechert LLP

1900 K Street, N.W.

Washington, D.C. 20006

Independent Registered Public Accounting Firm

PricewaterhouseCoopers LLP

1100 Walnut Street, Suite 1300

Kansas City, MO 64106

This report is submitted for the general information of the shareholders of the Portfolio listed on the Report cover.

pimco.com/pvit

PVIT01AR_123118

PIMCO VARIABLE INSURANCE TRUST

Annual Report

December 31, 2018

PIMCO Balanced Allocation Portfolio

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, you may not be receiving paper copies of the Portfolio’s shareholder reports from the insurance company that offers your contract unless you specifically request paper copies from the insurance company or from your financial intermediary. Instead, the shareholder reports will be made available on a website, and the insurance company will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the insurance company electronically by following the instructions provided by the insurance company.

You may elect to receive all future reports in paper free of charge from the insurance company. You should contact the insurance company if you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all portfolio companies available under your contract at the insurance company.

Table of Contents

	Page
Chairman’s Letter		2
Important Information About the PIMCO Balanced Allocation Portfolio		4
Portfolio Summary		6
Expense Example		7
Financial Highlights		8
Statement of Assets and Liabilities		10
Statement of Operations		11
Statements of Changes in Net Assets		12
Schedule of Investments		13
Notes to Financial Statements		21
Report of Independent Registered Public Accounting Firm		40
Glossary		41
Federal Income Tax Information		42
Management of the Trust		43
Privacy Policy		45
Approval of Investment Advisory Contract and Other Agreements		46

This material is authorized for use only when preceded or accompanied by the current PIMCO Variable Insurance Trust (the “Trust”) prospectus for the Portfolio. (The variable product prospectus may be obtained by contacting your Investment Consultant.)

Chairman’s Letter

Dear PIMCO Variable Insurance Trust Shareholder,

Following this letter is the PIMCO Variable Insurance Trust Annual Report, which covers the 12-month reporting period ended December 31, 2018. On the subsequent pages you will find specific details regarding investment results and discussion of the factors that most affected performance during the reporting period.

For the 12-month reporting period ended December 31, 2018

The U.S. economy continued to expand during the reporting period. Looking back, U.S. gross domestic product (“GDP”) grew at an annual pace of 2.2% during the first quarter of 2018. During the second quarter of 2018, GDP growth rose to an annual pace of 4.2%, the strongest since the third quarter of 2014. GDP then expanded at an annual pace of 3.4% during the third quarter of the year. Finally, the Commerce Department’s initial reading for fourth-quarter 2018 GDP has been delayed due to the partial government shutdown.

The Federal Reserve (the “Fed”) continued to normalize monetary policy during the reporting period. During its meetings that concluded in March, June, September and December 2018, the Fed raised the federal funds rate in 0.25% increments. The Fed’s December rate hike pushed the federal funds rate to a range between 2.25% and 2.50%. In addition, the Fed continued to reduce its balance sheet during the reporting period.

Economic activity outside the U.S. initially accelerated during the reporting period, but moderated as it progressed. Against this backdrop, the European Central Bank (the “ECB”) and the Bank of Japan largely maintained their highly accommodative monetary policies, while other central banks took a more hawkish stance. The Bank of England raised rates at its meeting in August 2018 and the Bank of Canada raised rates twice during the reporting period. Meanwhile, the ECB ended its quantitative easing program in December 2018, but indicated that it does not expect to raise interest rates “at least through the summer of 2019.”

The U.S. Treasury yield curve flattened during the reporting period as short-term rates moved up more than longer-term rates. In our view, the increase in rates at the short end of the yield curve was mostly due to Fed interest rate increases. The yield on the benchmark 10-year U.S. Treasury note was 2.69% at the end of the reporting period, up from 2.40% on December 31, 2017. U.S. Treasuries, as measured by the Bloomberg Barclays U.S. Treasury Index, returned 0.86% over the 12 months ended December 31, 2018. Meanwhile, the Bloomberg Barclays U.S. Aggregate Bond Index, a widely used index of U.S. investment grade bonds, returned 0.01% over the period. Riskier fixed income asset classes, including high yield corporate bonds and emerging market debt, generated weak results versus the broad U.S. market. The ICE BofAML U.S. High Yield Index returned -2.27% over the reporting period, whereas emerging market external debt, as represented by the JPMorgan Emerging Markets Bond Index (EMBI) Global, returned -4.61% over the reporting period. Emerging market local bonds, as represented by the JPMorgan Government Bond Index-Emerging Markets Global Diversified Index (Unhedged), returned -6.21% over the period.

Global equities produced poor results during the reporting period. U.S. equities moved sharply higher over the first nine months of the period. We believe this rally was driven by a number of factors, including corporate profits that often exceeded expectations. However, U.S. equities fell sharply during the fourth quarter of 2018. We believe this was triggered by a number of factors, including signs of moderating global growth, concerns over future Fed rate hikes, the ongoing trade dispute between the U.S. and China and the partial U.S. government shutdown. All told, U.S. equities, as represented by the S&P 500 Index, returned -4.38% during the reporting period. Elsewhere, emerging market equities, as measured by the MSCI Emerging Markets Index, returned -14.58% during the reporting period, whereas global equities, as represented by the MSCI World Index, returned -8.71%. Elsewhere, Japanese equities, as represented by the Nikkei 225 Index (in JPY), returned -10.39% during the reporting period and European equities, as represented by the MSCI Europe Index (in EUR), returned -10.57%.

Commodity prices fluctuated and generally declined during the reporting period. When the reporting period began, West Texas crude oil was approximately $65 a barrel, but by the end it was roughly $45 a barrel. This was driven in

2 PIMCO VARIABLE INSURANCE TRUST

part by increased supply and declining global demand. Elsewhere, gold and copper prices also moved lower during the reporting period.

Finally, during the reporting period the foreign exchange markets experienced periods of volatility, due in part to signs of decoupling economic growth and central bank policies, along with a number of geopolitical events. The U.S. dollar produced mixed results against other major currencies during the reporting period. For example, the U.S. dollar appreciated 4.71% and 5.90% versus the euro and the British pound, respectively, whereas the U.S. dollar depreciated 2.66% versus the yen during the reporting period.

Thank you for the assets you have placed with us. We deeply value your trust, and we will continue to work diligently to meet your broad investment needs.

Sincerely,     Brent R. Harris Chairman of the Board,
PIMCO Variable Insurance Trust  

Past performance is no guarantee of future results. Unless otherwise noted, index returns reflect the reinvestment of income distributions and capital gains, if any, but do not reflect fees, brokerage commissions or other expenses of investing. It is not possible to invest directly in an unmanaged index.

ANNUAL REPORT DECEMBER 31, 2018 3

Important Information About the PIMCO Balanced Allocation Portfolio

PIMCO Variable Insurance Trust (the “Trust”) is an open-end management investment company that includes the PIMCO Balanced Allocation Portfolio (the “Portfolio”). The Portfolio is only available as a funding vehicle under variable life insurance policies or variable annuity contracts issued by insurance companies (“Variable Contracts”). Individuals may not purchase shares of the Portfolio directly. Shares of the Portfolio also may be sold to qualified pension and retirement plans outside of the separate account context.

We believe that equity funds and bond funds have an important role to play in a well-diversified investment portfolio. It is important to note, however, that equity funds and bond funds are subject to notable risks.

Among other things, equity and equity-related securities may decline in value due to both real and perceived general market, economic, and industry conditions. The values of equity securities, such as common stocks and preferred securities, have historically risen and fallen in periodic cycles and may decline due to general market conditions, which are not specifically related to a particular company, such as real or perceived adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment generally. Equity securities may also decline due to factors that affect a particular industry or industries, such as labor shortages, increased production costs and competitive conditions within an industry. In addition, the value of an equity security may decline for a number of reasons that directly relate to the issuer, such as management performance, financial leverage and reduced demand for the issuer’s goods or services, as well as the historical and prospective earnings of the issuer and the value of its assets. Different types of equity securities may react differently to these developments and a change in the financial condition of a single issuer may affect securities markets as a whole.

During a general downturn in the securities markets, multiple asset classes, including equity securities, may decline in value simultaneously. The market price of equity securities owned by the Portfolio may go up or down, sometimes rapidly or unpredictably. Equity securities generally have greater price volatility than fixed income securities and common stocks generally have the greatest appreciation and depreciation potential of all corporate securities.

Bond funds and fixed income securities are subject to a variety of risks, including interest rate risk, liquidity risk and market risk. In an environment where interest rates may trend upward, rising rates would negatively impact the performance of most bond funds, and fixed income securities and other instruments held by the Portfolio are likely to decrease in value. A wide variety of factors can cause interest rates to rise (e.g., central bank monetary policies, inflation rates, general economic conditions, etc.). In addition, changes in interest rates can be

sudden and unpredictable, and there is no guarantee that management will anticipate such movement accurately. The Portfolio may lose money as a result of movements in interest rates.

As of the date of this report, interest rates in the U.S. and many parts of the world, including certain European countries, are at or near historically low levels. Thus, the Portfolio currently faces a heightened level of interest rate risk, especially since the Fed has ended its quantitative easing program and has begun, and may continue, to raise interest rates. To the extent the Fed continues to raise interest rates, there is a risk that rates across the financial system may rise. Further, while bond markets have steadily grown over the past three decades, dealer inventories of corporate bonds are near historic lows in relation to market size. As a result, there has been a significant reduction in the ability of dealers to “make markets.”

Bond funds and individual bonds with a longer duration (a measure used to determine the sensitivity of a security’s price to changes in interest rates) tend to be more sensitive to changes in interest rates, usually making them more volatile than securities or funds with shorter duration. All of the factors mentioned above, individually or collectively, could lead to increased volatility and/or lower liquidity in the fixed income markets or negatively impact the Portfolio’s performance or cause the Portfolio to incur losses. As a result, the Portfolio may experience increased shareholder redemptions, which, among other things, could further reduce the net assets of the Portfolio.

The Portfolio may be subject to various risks as described in the Portfolio’s prospectus and in the Principal Risks in the Notes to Financial Statements.

The geographical classification of foreign (non-U.S.) securities in this report are classified by the country of incorporation of a holding. In certain instances, a security’s country of incorporation may be different from its country of economic exposure.

The United States presidential administration’s enforcement of tariffs on goods from other countries, with a focus on China, has contributed to international trade tensions and may impact portfolio securities.

The United Kingdom’s decision to leave the European Union may impact Portfolio returns. This decision may cause substantial volatility in foreign exchange markets, lead to weakness in the exchange rate of the British pound, result in a sustained period of market uncertainty, and destabilize some or all of the other European Union member countries and/or the Eurozone.

On the Portfolio Summary page in this Shareholder Report, the Average Annual Total Return table and Cumulative Returns chart measure performance assuming that any dividend and capital gain distributions

4 PIMCO VARIABLE INSURANCE TRUST

were reinvested. The Cumulative Returns chart reflects only Administrative Class performance. Performance may vary by share class based on each class’s expense ratios. The Portfolio measures its performance against at least one broad-based securities market index (“benchmark index”). The benchmark index does not take into account fees, expenses, or taxes. The Portfolio’s past performance, before and after taxes, is not necessarily an indication of how the Portfolio will perform in the future. There is no assurance that the Portfolio, even if the Portfolio has experienced high or unusual performance for one or

more periods, will experience similar levels of performance in the future. High performance is defined as a significant increase in either 1) the Portfolio’s total return in excess of that of the Portfolio’s benchmark between reporting periods or 2) the Portfolio’s total return in excess of the Portfolio’s historical returns between reporting periods. Unusual performance is defined as a significant change in the Portfolio’s performance as compared to one or more previous reporting periods.

The following table discloses the inception dates of the Portfolio and its respective share classes along with the Portfolio’s diversification status as of period end:

Portfolio Name	Portfolio Inception		Administrative Class		Advisor Class		Diversification Status
PIMCO Balanced Allocation Portfolio		04/27/12		04/27/12		04/30/13		Diversified

An investment in the Portfolio is not a bank deposit and is not guaranteed or insured by the Federal Deposit Insurance Corporation (“FDIC”) or any other government agency. It is possible to lose money on investments in the Portfolio.

The Trustees are responsible generally for overseeing the management of the Trust. The Trustees authorize the Trust to enter into service agreements with the Adviser, the Distributor, the Administrator and other service providers in order to provide, and in some cases authorize service providers to procure through other parties, necessary or desirable services on behalf of the Trust and the Portfolio. Shareholders are not parties to or third-party beneficiaries of such service agreements. Neither this Portfolio’s prospectus nor summary

prospectus, the Trust’s Statement of Additional Information (“SAI”), any contracts filed as exhibits to the Trust’s registration statement, nor any other communications, disclosure documents or regulatory filings (including this report) from or on behalf of the Trust or the Portfolio creates a contract between or among any shareholder of the Portfolio, on the one hand, and the Trust, the Portfolio, a service provider to the Trust or the Portfolio, and/or the Trustees or officers of the Trust, on the other hand. The Trustees (or the Trust and its officers, service providers or other delegates acting under authority of the Trustees) may amend the most recent prospectus or use a new prospectus, summary prospectus or SAI with respect to the Portfolio or the Trust, and/or amend, file and/or issue any other communications, disclosure documents or regulatory filings, and may amend or enter into any contracts to which the Trust or the Portfolio is a party, and interpret the investment objective(s), policies, restrictions and contractual provisions applicable to the Portfolio, without shareholder input or approval, except in circumstances in which shareholder approval is specifically required by law (such as changes to fundamental investment policies) or where a shareholder approval requirement is specifically disclosed in the Trust’s then-current prospectus or SAI.

PIMCO has adopted written proxy voting policies and procedures (“Proxy Policy”) as required by Rule 206(4)-6 under the Investment Advisers Act of 1940, as amended. The Proxy Policy has been adopted by the Trust as the policies and procedures that PIMCO will use when voting proxies on behalf of the Portfolio. A description of the policies and procedures that PIMCO uses to vote proxies relating to portfolio securities of the Portfolio, and information about how the Portfolio voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, are available without charge, upon request, by calling the Trust at (888) 87-PIMCO, on the Portfolio’s website at www.pimco.com/pvit, and on the Securities and Exchange Commission’s (“SEC”) website at www.sec.gov.

The Trust files a complete schedule of the Portfolio’s holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. A copy of the Portfolio’s Form N-Q is available on the SEC’s website at www.sec.gov. A copy of the Portfolio’s Form N-Q is also available without charge, upon request, by calling the Trust at (888) 87-PIMCO and on the Portfolio’s website at www.pimco.com/pvit.

The SEC adopted a rule that, beginning in 2021, generally will allow shareholder reports to be delivered to investors by providing access to such reports online free of charge and by mailing a notice that the report is electronically available. Pursuant to the rule, investors may still elect to receive a complete shareholder report in the mail. Instructions for electing to receive paper copies of the Portfolio’s shareholder reports going forward may be found on the front cover of this report.

The SEC adopted amendments to certain disclosure requirements relating to open-end investment companies’ liquidity risk management programs. Effective December 1, 2019, large fund complexes will be required to include in their shareholder reports a discussion of their liquidity risk management programs’ operations over the past year.

ANNUAL REPORT DECEMBER 31, 2018 5

PIMCO Balanced Allocation Portfolio

Cumulative Returns Through December 31, 2018

$10,000 invested at the end of the month when the Portfolio’s Administrative Class commenced operations.

Allocation Breakdown as of 12/31/2018^†§

Short-Term Instruments‡	47.0%
U.S. Government Agencies	17.8%
U.S. Treasury Obligations	15.8%
Corporate Bonds & Notes	7.6%
Asset-Backed Securities	6.5%
Mutual Funds	4.0%
Other	1.3%

^†  % of Investments, at value.

^§  Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.

^‡  Includes Central Funds Used for Cash Management Purposes.

Average Annual Total Return for the period ended December 31, 2018
		1 Year		5 Years		Inception≈
	PIMCO Balanced Allocation Portfolio Administrative Class		(5.59)%		2.92%		1.71%
	PIMCO Balanced Allocation Portfolio Advisor Class		(5.68)%		3.22%		1.21%
	35% S&P 500 Index / 25% MSCI EAFE Index / 40% Bloomberg Barclays U.S. Aggregate Index±		(4.84)%		4.26%		6.09%	¨

All Portfolio returns are net of fees and expenses.

≈ For class inception dates please refer to the Important Information.

^¨  Average annual total return since 04/27/2012.

^± The benchmark is a blend of 35% S&P 500 Index / 25% MSCI EAFE Index / 40% Bloomberg Barclays U.S. Aggregate Index. S&P 500 Index is an unmanaged market index generally considered representative of the stock market as a whole. The Index focuses on the large-cap segment of the U.S. equities market. MSCI EAFE (Morgan Stanley Capital International Europe, Australasia, Far East) Index is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the US & Canada. Bloomberg Barclays U.S. Aggregate Index represents securities that are SEC-registered, taxable, and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. These major sectors are subdivided into more specific indices that are calculated and reported on a regular basis.

It is not possible to invest directly in an unmanaged index.

Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. The Portfolio’s performance does not reflect the deduction of additional charges and expenses imposed in connection with investing in Variable Contracts, which will reduce returns. Differences in the Portfolio’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the prices of individual positions (which may be sourced from different pricing vendors or other sources) used by the Portfolio and the index. For performance current to the most recent month-end, visit www.pimco.com/pvit or via (888) 87-PIMCO.

The Portfolio’s total annual operating expense ratio in effect as of period end which includes the Acquired Fund Fees and Expenses (Underlying PIMCO Fund Expenses), were 0.89% for Administrative Class shares, and 0.99% for Advisor Class shares. Details regarding any changes to the Portfolio’s operating expenses, subsequent to period end, can be found in the Portfolio’s current prospectus, as supplemented.

Investment Objective and Strategy Overview

PIMCO Balanced Allocation Portfolio seeks total return which exceeds that of its benchmark by investing, under normal circumstances, in equity derivatives and other equity-related investments that provide equity-related exposure equivalent to 50-70% of its net assets (such portion of the Portfolio’s portfolio, the “Equity Sleeve”) and the remainder of its net assets in a diversified portfolio of Fixed Income Instruments (such portion of the Portfolio’s portfolio, the “Fixed Income Sleeve”). “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. Portfolio strategies may change from time to time. Please refer to the Portfolio’s current prospectus for more information regarding the Portfolio’s strategy.

Portfolio Insights

The following affected performance during the reporting period:

» Exposure to U.S. duration contributed to performance. While treasury yields rose over the year, carry was more than enough to offset.

» Exposure to U.S. equities detracted from performance, as these securities generally posted negative returns.

» Exposure to eurozone equities detracted from performance, as these securities generally posted negative returns.

» Exposure to Japanese equities detracted from performance, as these securities generally posted negative returns.

» Exposure to developed market currencies, specifically the euro and British pound detracted from performance, as these securities posted negative returns.

6 PIMCO VARIABLE INSURANCE TRUST

Expense Example PIMCO Balanced Allocation Portfolio

Example

As a shareholder of the Portfolio, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees (if applicable), and other Portfolio expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in the Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds.

The Expense Example does not reflect any fees or other expenses imposed by the Variable Contracts. If it did, the expenses reflected in the Expense Example would be higher. The Example is based on an investment of $1,000 invested at the beginning of the period and held from July 1, 2018 to December 31, 2018 unless noted otherwise in the table and footnotes below.

Actual Expenses

The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60), then multiply the result by the number in the appropriate row for your share class, in the column titled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other portfolios. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other portfolios.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information under the heading “Hypothetical (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different portfolios. In addition, if these transactional costs were included, your costs would have been higher.

Expense ratios may vary period to period because of various factors, such as an increase in expenses that are not covered by the management fees such as fees and expenses of the independent trustees and their counsel, extraordinary expenses and interest expense.

			Actual				Hypothetical (5% return before expenses)
	Beginning Account Value (07/01/18)		Ending Account Value (12/31/18)		Expenses Paid During Period*		Beginning Account Value (07/01/18)		Ending Account Value (12/31/18)		Expenses Paid During Period*		Net Annualized Expense Ratio**
Administrative Class	$	1,000.00	$	950.40	$	4.67	$	1,000.00	$	1,020.42	$	4.84		0.95	%
Advisor Class		1,000.00		949.90		5.16		1,000.00		1,019.91		5.35		1.05

* Expenses Paid During Period are equal to the net annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 0/365 (to reflect the one-half year period). Overall fees and expenses of investing in the Portfolio will be higher because the example does not reflect variable contract fees and expenses.

** Net Annualized Expense Ratio is reflective of any applicable contractual fee waivers and/or expense reimbursements or voluntary fee waivers. Details regarding fee waivers, if any, can be found in Note 9, Fees and Expenses, in the Notes to Financial Statements.

ANNUAL REPORT DECEMBER 31, 2018 7

Financial Highlights PIMCO Balanced Allocation Portfolio

			Investment Operations								Less Distributions(b)
Selected Per Share Data for the Year Ended^:	Net Asset Value Beginning of Year		Net Investment Income (Loss)(a)		Net Realized/ Unrealized Gain (Loss)			Total			From Net Investment Income			From Net Realized Capital Gain			Tax Basis Return of Capital			Total
Administrative Class
12/31/2018	$	10.73	$	0.16	$	(0.73	)	$	(0.57	)	$	(0.13	)	$	(1.29	)	$	0.00		$	(1.42	)
12/31/2017		9.44		0.08		1.28			1.36			(0.07	)		0.00			0.00			(0.07	)
12/31/2016		9.24		0.13		0.14			0.27			0.00			0.00			(0.07	)		(0.07	)
12/31/2015		9.47		0.19		(0.29	)		(0.10	)		(0.06	)		0.00			(0.07	)		(0.13	)
12/31/2014		9.33		0.26		0.20			0.46			(0.29	)		0.00			(0.03	)		(0.32	)
Advisor Class
12/31/2018		10.92		0.15		(0.74	)		(0.59	)		(0.12	)		(1.29	)		0.00			(1.41	)
12/31/2017		9.61		0.07		1.30			1.37			(0.06	)		0.00			0.00			(0.06	)
12/31/2016		9.22		0.13		0.33			0.46			0.00			0.00			(0.07	)		(0.07	)
12/31/2015		9.47		0.22		(0.34	)		(0.12	)		(0.06	)		0.00			(0.07	)		(0.13	)
12/31/2014		9.33		0.32		0.13			0.45			(0.27	)		0.00			(0.04	)		(0.31	)

^ A zero balance may reflect actual amounts rounding to less than $0.01 or 0.01%.

^(a)  Per share amounts based on average number of shares outstanding during the year.

^(b)  The tax characterization of distributions is determined in accordance with Federal income tax regulations. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

^(c)  Ratios shown do not include expenses of the investment companies in which a Fund may invest. See Note 9, Fees and Expenses, in the Notes to Financial Statements for more information regarding the expenses and any applicable fee waivers associated with these investments.

^(d)  Effective October 21, 2016, the Portfolio’s Investment advisory fee was decreased by 0.34% to an annual rate of 0.66%.

8 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

					Ratios/Supplemental Data
							Ratios to Average Net Assets(c)
Net Asset Value End of Year		Total Return			Net Assets End of Year (000s)		Expenses			Expenses Excluding Waivers			Expenses Excluding Interest Expense			Expenses Excluding Interest Expense and Waivers			Net Investment Income (Loss)			Portfolio Turnover Rate
$	8.74		(5.59	)%	$	86,180		0.92	%		0.94	%		0.84	%		0.86	%		1.47	%		435	%
	10.73		14.48			101,361		0.84			0.86			0.84			0.86			0.79			508
	9.44		2.94			97,981		1.02	(d)		1.15	(d)		1.01	(d)		1.14	(d)		1.43			483
	9.24		(1.06	)		99,522		1.03			1.27			1.01			1.25			1.91			386
	9.47		4.88			90,566		0.84			1.24			0.82			1.22			2.67			352
	8.92		(5.68	)		1,149		1.02			1.04			0.94			0.96			1.36			435
	10.92		14.32			1,545		0.94			0.96			0.94			0.96			0.69			508
	9.61		4.99			1,409		1.12	(d)		1.25	(d)		1.11	(d)		1.24	(d)		1.42			483
	9.22		(1.28	)		992		1.13			1.37			1.11			1.35			2.26			386
	9.47		4.87			326		0.94			1.34			0.92			1.32			3.36			352

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 9

Statement of Assets and Liabilities PIMCO Balanced Allocation Portfolio

(Amounts in thousands†, except per share amounts)	December 31, 2018
Assets:
Investments, at value
Investments in securities*	$	75,385
Investments in Affiliates		27,922
Financial Derivative Instruments
Exchange-traded or centrally cleared		235
Over the counter		80
Cash		2,258
Deposits with counterparty		2,858
Foreign currency, at value		35
Receivable for investments sold		1,456
Receivable for TBA investments sold		11,962
Receivable for Portfolio shares sold		3
Interest and/or dividends receivable		205
Dividends receivable from Affiliates		69
Reimbursement receivable from PIMCO		2
Total Assets		122,470
Liabilities:
Borrowings & Other Financing Transactions
Payable for reverse repurchase agreements	$	3,923
Payable for sale-buyback transactions		2,709
Financial Derivative Instruments
Exchange-traded or centrally cleared		22
Over the counter		101
Payable for investments in Affiliates purchased		69
Payable for TBA investments purchased		28,221
Deposits from counterparty		10
Payable for Portfolio shares redeemed		23
Accrued investment advisory fees		48
Accrued supervisory and administrative fees		4
Accrued servicing fees		11
Total Liabilities		35,141
Net Assets	$	87,329
Net Assets Consist of:
Paid in capital	$	93,437
Distributable earnings (accumulated loss)		(6,108	)
Net Assets	$	87,329
Net Assets:
Administrative Class	$	86,180
Advisor Class		1,149
Shares Issued and Outstanding:
Administrative Class		9,859
Advisor Class		129
Net Asset Value Per Share Outstanding:
Administrative Class	$	8.74
Advisor Class		8.92
Cost of investments in securities	$	75,676
Cost of investments in Affiliates	$	28,026
Cost of foreign currency held	$	38
Cost or premiums of financial derivative instruments, net	$	(14	)
* Includes repurchase agreements of:	$	24,668

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

10 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

Statement of Operations PIMCO Balanced Allocation Portfolio

(Amounts in thousands†)	Year Ended December 31, 2018
Investment Income:
Interest	$	1,721
Dividends from Investments in Affiliates		598
Total Income		2,319
Expenses:
Investment advisory fees		639
Supervisory and administrative fees		49
Servicing fees - Administrative Class		143
Distribution and/or servicing fees - Advisor Class		3
Trustee fees		3
Interest expense		77
Total Expenses		914
Waiver and/or Reimbursement by PIMCO		(20	)
Net Expenses		894
Net Investment Income (Loss)		1,425
Net Realized Gain (Loss):
Investments in securities		(590	)
Investments in Affiliates		(5	)
Exchange-traded or centrally cleared financial derivative instruments		(3,525	)
Over the counter financial derivative instruments		198
Foreign currency		9
Net Realized Gain (Loss)		(3,913	)
Net Change in Unrealized Appreciation (Depreciation):
Investments in securities		(151	)
Investments in Affiliates		(197	)
Exchange-traded or centrally cleared financial derivative instruments		(2,327	)
Over the counter financial derivative instruments		(3	)
Foreign currency assets and liabilities		(1	)
Net Change in Unrealized Appreciation (Depreciation)		(2,679	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	(5,167	)

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 11

Statements of Changes in Net Assets PIMCO Balanced Allocation Portfolio

(Amounts in thousands†)	Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets from:
Operations:
Net investment income (loss)	$	1,425		$	797
Net realized gain (loss)		(3,913	)		10,722
Net change in unrealized appreciation (depreciation)		(2,679	)		2,203
Net Increase (Decrease) in Net Assets Resulting from Operations		(5,167	)		13,722
Distributions to Shareholders:
From net investment income and/or net realized capital gains*
Administrative Class		(12,310	)		(716	)
Advisor Class		(160	)		(9	)
Total Distributions(a)		(12,470	)		(725	)
Portfolio Share Transactions:
Net increase (decrease) resulting from Portfolio share transactions**		2,060			(9,481	)
Total Increase (Decrease) in Net Assets		(15,577	)		3,516
Net Assets:
Beginning of year		102,906			99,390
End of year	$	87,329		$	102,906

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

* See Note 2, New Accounting Pronouncements, in the Notes to Financial Statements for more information.

** See Note 13, Shares of Beneficial Interest, in the Notes to Financial Statements.

^(a)  The tax characterization of distributions is determined in accordance with Federal income tax regulations. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

12 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

Schedule of Investments PIMCO Balanced Allocation Portfolio

December 31, 2018

(Amounts in thousands*, except number of shares, contracts and units, if any)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
INVESTMENTS IN SECURITIES 86.3%
LOAN PARTICIPATIONS AND ASSIGNMENTS 0.3%
Castlelake Aircraft Securitization Trust
3.967% due 07/15/2042	$		207	$		206
Valeant Pharmaceuticals International, Inc.
5.379% due 06/02/2025			32			31
Total Loan Participations and Assignments (Cost $239)						237
CORPORATE BONDS & NOTES 9.0%
BANKING & FINANCE 5.8%
Bank of America Corp.
3.864% due 07/23/2024 •			200			200
3.950% due 04/21/2025			200			194
Barclays PLC
3.200% due 08/10/2021			200			194
BGC Partners, Inc.
5.375% due 07/24/2023			100			102
BPCE S.A.
4.625% due 07/11/2024			100			98
Citigroup, Inc.
4.075% due 04/23/2029 •			200			195
Cooperatieve Rabobank UA
3.875% due 09/26/2023			250			251
Deutsche Bank AG
0.184% (EUR003M + 0.500%) due 12/07/2020 ~	EUR		100			112
General Motors Financial Co., Inc.
3.550% due 04/09/2021	$		200			197
GLP Capital LP
5.250% due 06/01/2025			150			149
Goldman Sachs Group, Inc.
3.988% (US0003M + 1.200%) due 09/15/2020 ~			300			302
HSBC Holdings PLC
6.250% due 03/23/2023 •(b)(d)			200			188
ING Bank NV
2.625% due 12/05/2022			100			99
ING Groep NV
3.150% due 03/29/2022			200			197
JPMorgan Chase & Co.
3.367% (US003M + 0.890%) due 07/23/2024 ~			300			293
Lincoln Finance Ltd.
6.875% due 04/15/2021	EUR		150			176
Lloyds Banking Group PLC
4.450% due 05/08/2025	$		300			298
Mitsubishi UFJ Financial Group, Inc.
2.757% due 09/13/2026			200			185
Morgan Stanley
3.750% due 02/25/2023			200			200
3.875% due 04/29/2024			200			199
Oversea-Chinese Banking Corp. Ltd.
3.090% (US003M + 0.450%) due 05/17/2021 ~			200			200
Royal Bank of Scotland Group PLC
3.875% due 09/12/2023			200			192
Santander UK PLC
5.000% due 11/07/2023			200			196
UBS AG
7.625% due 08/17/2022 (d)			250			267
Wells Fargo & Co.
3.069% due 01/24/2023			300			292
3.450% due 02/13/2023			100			98
						5,074
INDUSTRIALS 2.3%
Arrow Electronics, Inc.
4.500% due 03/01/2023			100			101

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
BAT Capital Corp.
3.222% due 08/15/2024	$		100	$		92
BMW U.S. Capital LLC
3.118% (US0003M + 0.500%) due 08/13/2021 ~			100			99
Campbell Soup Co.
3.650% due 03/15/2023			200			195
Cigna Holding Co.
4.500% due 03/15/2021			30			31
CVS Health Corp.
4.100% due 03/25/2025			200			199
DAE Funding LLC
5.250% due 11/15/2021			100			99
Dell International LLC
4.420% due 06/15/2021			100			100
DP World Ltd.
2.375% due 09/25/2026	EUR		200			226
Equifax, Inc.
3.486% (US0003M + 0.870%) due 08/15/2021 ~	$		100			99
Kinder Morgan Energy Partners LP
3.950% due 09/01/2022			100			100
Petroleos Mexicanos
6.375% due 02/04/2021			100			101
Shire Acquisitions Investments Ireland DAC
2.875% due 09/23/2023			200			189
Sprint Spectrum Co. LLC
4.738% due 09/20/2029			200			197
Syngenta Finance NV
4.441% due 04/24/2023			200			193
						2,021
UTILITIES 0.9%
AT&T, Inc.
3.488% (US0003M + 0.750%) due 06/01/2021 ~			300			298
IPALCO Enterprises, Inc.
3.700% due 09/01/2024			100			97
Petrobras Global Finance BV
5.999% due 01/27/2028			116			110
Verizon Communications, Inc.
3.376% due 02/15/2025			199			193
Vodafone Group PLC
3.750% due 01/16/2024			100			99
						797
Total Corporate Bonds & Notes (Cost $8,021)						7,892
MUNICIPAL BONDS & NOTES 0.4%
PENNSYLVANIA 0.2%
Pennsylvania Higher Education Assistance Agency Revenue Bonds, Series 2006
2.620% (US0003M + 0.130%) due 10/25/2036 ~			169			168
WEST VIRGINIA 0.2%
Tobacco Settlement Finance Authority, West Virginia Revenue Bonds, Series 2007
7.467% due 06/01/2047			190			186
Total Municipal Bonds & Notes (Cost $347)						354
U.S. GOVERNMENT AGENCIES 21.1%
Fannie Mae
2.699% due 11/25/2046 •			436			435
2.749% due 07/25/2046 •			146			146
2.769% due 09/25/2046 •			176			176
3.500% due 11/01/2045 - 09/01/2046			714			716
4.293% due 05/01/2038 •			236			248

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Fannie Mae, TBA
3.000% due 02/01/2034 - 01/01/2049	$		2,600	$		2,565
3.500% due 02/01/2034 - 02/01/2049			6,700			6,718
4.000% due 01/01/2049			4,500			4,589
Freddie Mac
3.500% due 09/01/2047			197			197
Freddie Mac, TBA
4.000% due 01/01/2049			2,600			2,651
Total U.S. Government Agencies (Cost $18,313)						18,441
U.S. TREASURY OBLIGATIONS 18.7%
U.S. Treasury Bonds
2.500% due 02/15/2046			3,180			2,877
3.000% due 08/15/2048			200			200
U.S. Treasury Inflation Protected Securities (a)
0.625% due 04/15/2023			1,629			1,603
U.S. Treasury Notes
1.125% due 08/31/2021 (f)			9,100			8,785
1.500% due 08/15/2026			1,400			1,292
1.875% due 08/31/2024			100			97
2.250% due 08/15/2027			400			387
2.375% due 05/15/2027 (f)			1,100			1,078
Total U.S. Treasury Obligations (Cost $16,976)						16,319
NON-AGENCY MORTGAGE-BACKED SECURITIES 0.9%
Banc of America Funding Trust
2.455% due 08/27/2036 ~			104			90
BANK
4.165% due 05/15/2061 ~			100			105
Citigroup Mortgage Loan Trust
4.274% due 07/25/2037 ^~			122			122
Civic Mortgage LLC
3.892% due 06/25/2022 Ø			65			65
Deutsche ALT-B Securities, Inc. Mortgage Loan Trust
6.000% due 10/25/2036 Ø			67			62
Grifonas Finance PLC
0.014% due 08/28/2039 •	EUR		39			39
RAIT Trust
3.405% due 06/15/2037 •	$		98			98
Stonemont Portfolio Trust
3.320% due 08/20/2030 •			196			196
Total Non-Agency Mortgage-Backed Securities (Cost $762)						777
ASSET-BACKED SECURITIES 7.7%
Apidos CLO
3.430% due 01/19/2025 •			93			93
Atrium Corp.
3.299% due 04/22/2027 •			250			247
Babson Euro CLO BV
0.503% due 10/25/2029 •	EUR		250			284
Bayview Koitere Fund Trust
3.623% due 03/28/2033 Ø	$		41			42
Bayview Opportunity Master Fund Trust
3.352% due 11/28/2032 Ø			18			18
4.066% due 09/28/2033 Ø			86			86
Bowman Park CLO Ltd.
3.857% due 11/23/2025 •			300			300
Citigroup Mortgage Loan Trust
2.636% due 08/25/2036 •			324			321
Countrywide Asset-Backed Certificates
2.656% due 06/25/2047 ^•			98			97
2.736% due 05/25/2037 •			651			612
Crown Point CLO Ltd.
3.975% due 10/20/2028 •			250			249
Dryden Senior Loan Fund
3.336% due 10/15/2027 •			250			248

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 13

Schedule of Investments PIMCO Balanced Allocation Portfolio (Cont.)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
ECMC Group Student Loan Trust
3.256% due 02/27/2068 •	$		89	$		89
Fremont Home Loan Trust
2.656% due 10/25/2036 •			459			235
Halcyon Loan Advisors Funding Ltd.
3.389% due 04/20/2027 •			250			249
Harvest CLO DAC
0.630% due 11/18/2029 •	EUR		250	$		284
Hyundai Auto Lease Securitization Trust
1.690% due 12/16/2019	$		57			57
Jamestown CLO Ltd.
3.126% due 07/15/2026 •			155			155
JPMorgan Mortgage Acquisition Corp.
2.896% due 05/25/2035 •			600			595
Jubilee CLO BV
0.489% due 12/15/2029 •	EUR		250			284
Lehman XS Trust
2.676% due 12/25/2036 •	$		44			42
3.306% due 10/25/2035 •			32			31
Loomis Sayles CLO Ltd.
3.336% due 04/15/2028 •			250			247
M360 Advisors LLC
4.395% due 07/24/2028			100			100
Marlette Funding Trust
3.060% due 07/17/2028			126			126
Morgan Stanley ABS Capital, Inc. Trust
2.636% due 10/25/2036 •			215			204

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Navient Private Education Loan Trust
2.855% due 12/16/2058 •	$		126	$		126
Navient Student Loan Trust
3.556% due 12/27/2066 •			147			147
OHA Loan Funding Ltd.
3.827% due 01/23/2027 •			250			250
OneMain Financial Issuance Trust
2.370% due 09/14/2032			100			98
Option One Mortgage Loan Trust
3.271% due 08/25/2035 •			120			116
S-Jets Ltd.
3.967% due 08/15/2042			228			230
SLM Student Loan Trust
3.338% due 12/15/2025 •			187			188
TICP CLO Ltd.
3.309% due 04/20/2028 •			250			247
Total Asset-Backed Securities (Cost $6,350)						6,697
SHORT-TERM INSTRUMENTS 28.2%
REPURCHASE AGREEMENTS (e) 28.2%
						24,668
Total Short-Term Instruments (Cost $24,668)						24,668
Total Investments in Securities (Cost $75,676)						75,385

	SHARES			MARKET VALUE (000S)
INVESTMENTS IN AFFILIATES 32.0%
MUTUAL FUNDS (c) 4.7%
PIMCO Income Fund		346,052	$		4,087
Total Mutual Funds (Cost $4,193)					4,087
SHORT-TERM INSTRUMENTS 27.3%
CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 27.3%
PIMCO Short-Term Floating NAV Portfolio III		2,411,532			23,835
Total Short-Term Instruments (Cost $23,833)					23,835
Total Investments in Affiliates (Cost $28,026)					27,922
Total Investments 118.3% (Cost $103,702)			$		103,307
Financial Derivative Instruments (g)(h) 0.2% (Cost or Premiums, net $(14))					192
Other Assets and Liabilities, net (18.5)%					(16,170	)
Net Assets 100.0%			$		87,329

NOTES TO SCHEDULE OF INVESTMENTS:

* A zero balance may reflect actual amounts rounding to less than one thousand.

^ Security is in default.

~ Variable or Floating rate security. Rate shown is the rate in effect as of period end. Certain variable rate securities are not based on a published reference rate and spread, rather are determined by the issuer or agent and are based on current market conditions. Reference rate is as of reset date, which may vary by security. These securities may not indicate a reference rate and/or spread in their description.

• Rate shown is the rate in effect as of period end. The rate may be based on a fixed rate, a capped rate or a floor rate and may convert to a variable or floating rate in the future. These securities do not indicate a reference rate and spread in their description.

Ø Coupon represents a rate which changes periodically based on a predetermined schedule or event. Rate shown is the rate in effect as of period end.

(a) Principal amount of security is adjusted for inflation.

(b) Perpetual maturity; date shown, if applicable, represents next contractual call date.

(c) Institutional Class Shares of each Fund.

(d) Contingent convertible security.

BORROWINGS AND OTHER FINANCING TRANSACTIONS

(e)  REPURCHASE AGREEMENTS:

Counterparty	Lending Rate			Settlement Date		Maturity Date		Principal Amount		Collateralized By	Collateral (Received)			Repurchase Agreements, at Value		Repurchase Agreement Proceeds to  be Received(1)
FICC		2.000	%		12/31/2018		01/02/2019	$	2,368	U.S. Treasury Notes 2.875% due 09/30/2023	$	(2,419	)	$	2,368	$	2,368
GSC		3.120			12/31/2018		01/02/2019		12,500	Freddie Mac 4.500% due 10/01/2045		(12,913	)		12,500		12,502
TDM		3.130			12/31/2018		01/02/2019		9,800	U.S. Treasury Notes 3.625% due 02/15/2021		(10,147	)		9,800		9,802
Total Repurchase Agreements											$	(25,479	)	$	24,668	$	24,672

REVERSE REPURCHASE AGREEMENTS:

Counterparty	Borrowing Rate(2)			Settlement Date		Maturity Date		Amount Borrowed(2)			Payable for Reverse Repurchase Agreements
GRE		2.440	%		10/18/2018		01/18/2019	$	(761	)	$	(765	)
		2.540			11/14/2018		02/14/2019		(1,526	)		(1,531	)
SCX		2.550			11/06/2018		02/06/2019		(762	)		(765	)
		2.630			11/23/2018		01/18/2019		(860	)		(862	)
Total Reverse Repurchase Agreements											$	(3,923	)

14 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

SALE-BUYBACK TRANSACTIONS:

Counterparty	Borrowing Rate(2)			Borrowing Date		Maturity Date		Amount Borrowed(2)			Payable  for Sale-Buyback Transactions(3)
TDM		6.500	%		12/31/2018		01/02/2019	$	(2,423	)	$	(2,424	)
UBS		2.440			10/30/2018		01/30/2019		(284	)		(285	)
Total Sale-Buyback Transactions											$	(2,709	)

BORROWINGS AND OTHER FINANCING TRANSACTIONS SUMMARY

The following is a summary by counterparty of the market value of Borrowings and Other Financing Transactions and collateral pledged/(received) as of December 31, 2018:

Counterparty	Repurchase Agreement Proceeds to  be Received(1)		Payable for Reverse Repurchase Agreements			Payable  for Sale-Buyback Transactions(3)			Total Borrowings and Other Financing Transactions			Collateral Pledged/(Received)			Net Exposure(4)
Global/Master Repurchase Agreement
FICC	$	2,368	$	0		$	0		$	2,368		$	(2,419	)	$	(51	)
GRE		0		(2,296	)		0			(2,296	)		2,329			33
GSC		12,502		0			0			12,502			(12,913	)		(411	)
SCX		0		(1,627	)		0			(1,627	)		1,641			14
TDM		9,802		0			0			9,802			(10,147	)		(345	)
Master Securities Forward Transaction Agreement
TDM		0		0			(2,424	)		(2,424	)		2,413			(11	)
UBS		0		0			(285	)		(285	)		294			9
Total Borrowings and Other Financing Transactions	$	24,672	$	(3,923	)	$	(2,709	)

CERTAIN TRANSFERS ACCOUNTED FOR AS SECURED BORROWINGS

Remaining Contractual Maturity of the Agreements

	Overnight and Continuous		Up to 30 days			31-90 days			Greater Than 90 days		Total
Reverse Repurchase Agreements
U.S. Treasury Obligations	$	0	$	(1,627	)	$	(2,296	)	$	0	$	(3,923	)
Total	$	0	$	(1,627	)	$	(2,296	)	$	0	$	(3,923	)
Sale-Buyback Transactions
U.S. Treasury Obligations		0		(2,709	)		0			0		(2,709	)
Total	$	0	$	(2,709	)	$	0		$	0	$	(2,709	)
Total Borrowings	$	0	$	(4,336	)	$	(2,296	)	$	0	$	(6,632	)
Payable for reverse repurchase agreements and sale-buyback financing transactions											$	(6,632	)

(f) Securities with an aggregate market value of $6,677 have been pledged as collateral under the terms of the above master agreements as of December 31, 2018.

⁽¹⁾ Includes accrued interest.

⁽²⁾ The average amount of borrowings outstanding during the period ended December 31, 2018 was $(3,331) at a weighted average interest rate of 2.089%. Average borrowings may include sale-buyback transactions and reverse repurchase agreements, if held during the period.

⁽³⁾ Payable for sale-buyback transactions includes $(1) of deferred price drop.

⁽⁴⁾ Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from borrowings and other financing transactions can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information regarding master netting arrangements.

(g)  FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED

FUTURES CONTRACTS:

LONG FUTURES CONTRACTS

Description	Expiration Month		# of Contracts		Notional Amount		Unrealized Appreciation/ (Depreciation)			Variation Margin
										Asset		Liability
E-mini S&P 500 Index March Futures		03/2019		245	$	30,689	$	(1,190	)	$	224	$	(1	)
Mini MSCI EAFE Index March Futures		03/2019		254		21,793		(249	)		10		(1	)
							$	(1,439	)	$	234	$	(2	)

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 15

Schedule of Investments PIMCO Balanced Allocation Portfolio (Cont.)

SHORT FUTURES CONTRACTS

Description	Expiration Month		# of Contracts		Notional Amount			Unrealized Appreciation/ (Depreciation)			Variation Margin
											Asset		Liability
Euro-OAT France Government 10-Year Bond March Futures		03/2019		3	$	(518	)	$	(1	)	$	1	$	0
U.S. Treasury 5-Year Note March Futures		03/2019		25		(2,867	)		(49	)		0		(6	)
United Kingdom Long Gilt March Futures		03/2019		3		(471	)		(4	)		0		(2	)
								$	(54	)	$	1	$	(8	)
Total Futures Contracts								$	(1,493	)	$	235	$	(10	)

SWAP AGREEMENTS:

CREDIT DEFAULT SWAPS ON CREDIT INDICES - SELL PROTECTION⁽¹⁾

Index/Tranches	Fixed Receive Rate			Payment Frequency		Maturity Date		Notional Amount(2)		Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Market Value(3)		Variation Margin
																		Asset		Liability
CDX.IG-25 5-Year Index		1.000	%		Quarterly		12/20/2020	$	2,200	$	(7	)	$	27		$	20	$	0	$	0
CDX.IG-31 5-Year Index		1.000			Quarterly		12/20/2023		1,000		19			(13	)		6		0		0
										$	12		$	14		$	26	$	0	$	0

INTEREST RATE SWAPS

Pay/Receive Floating Rate	Floating Rate Index	Fixed Rate	Payment Frequency	Maturity Date		Notional Amount		Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Market Value			Variation Margin
																	Asset		Liability
Receive	3-Month  USD-LIBOR	2.000%	Semi-Annual		06/15/2023	$	700	$	(15	)	$	32		$	17		$	0	$	(1	)
Receive	3-Month  USD-LIBOR	1.750	Semi-Annual		12/21/2023		3,400		19			113			132			0		(7	)
Receive	3-Month  USD-LIBOR	3.000	Semi-Annual		12/19/2028		1,100		31			(57	)		(26	)		0		(4	)
								$	35		$	88		$	123		$	0	$	(12	)
Total Swap Agreements								$	47		$	102		$	149		$	0	$	(12	)

FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED SUMMARY

The following is a summary of the market value and variation margin of Exchange-Traded or Centrally Cleared Financial Derivative Instruments as of December 31, 2018:

	Financial Derivative Assets								Financial Derivative Liabilities
	Market Value		Variation Margin Asset				Total		Market Value		Variation Margin Liability			Total
	Purchased Options		Futures		Swap Agreements				Written Options		Futures		Swap Agreements
Total Exchange-Traded or Centrally Cleared	$	0	$	235	$	0	$	235	$	0		$    (10)	$    (12)		$    (22)

Cash of $2,858 has been pledged as collateral for exchange-traded and centrally cleared financial derivative instruments as of December 31, 2018. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information regarding master netting arrangements.

⁽¹⁾ If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽²⁾ The maximum potential amount the Portfolio could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

⁽³⁾ The prices and resulting values for credit default swap agreements serve as indicators of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced indices’ credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

16 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

(h)  FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER

FORWARD FOREIGN CURRENCY CONTRACTS:

Counterparty	Settlement Month		Currency to be Delivered		Currency to be Received		Unrealized Appreciation/ (Depreciation)
							Asset		Liability
BOA		01/2019	EUR	1,158	$	1,322	$	0	$	(6	)
CBK		01/2019		91		104		0		(1	)
		02/2019	GBP	8		11		0		0
		02/2019	$	89	COP	284,501		0		(2	)
		03/2019	KRW	150,649	$	134		0		(1	)
DUB		03/2019	$	143	IDR	2,105,541		2		0
GLM		02/2019		96	JPY	10,800		3		0
		03/2019		160	INR	11,404		3		0
HUS		02/2019	AUD	346	$	250		6		0
IND		01/2019	MXN	1,832		90		0		(3	)
JPM		01/2019	$	103	MXN	2,101		4		0
		02/2019	TRY	162	$	29		0		(1	)
SOG		01/2019	$	124	RUB	8,253		0		(6	)
SSB		03/2019	TWD	10,534	$	344		0		(2	)
Total Forward Foreign Currency Contracts							$	18	$	(22	)

PURCHASED OPTIONS:

INTEREST RATE SWAPTIONS

Counterparty	Description	Floating Rate Index	Pay/Receive Floating Rate	Exercise Rate			Expiration Date		Notional Amount		Cost		Market Value
MYC	Put - OTC 30-Year Interest Rate Swap	3-Month  USD-LIBOR	Receive		2.600	%		03/29/2019		$    1,000	$	94	$	62
Total Purchased Options											$	94	$	62

WRITTEN OPTIONS:

CREDIT DEFAULT SWAPTIONS ON CREDIT INDICES

Counterparty	Description	Buy/Sell Protection	Exercise Rate	Expiration Date		Notional Amount		Premiums (Received)			Market Value
BOA	Put - OTC CDX.IG-31 5-Year Index	Sell	0.900%		01/16/2019	$	100	$	0		$	0
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.200		03/20/2019		500		(1	)		(1	)
CBK	Put - OTC CDX.IG-31 5-Year Index	Sell	1.050		02/20/2019		600		(1	)		(1	)
GST	Put - OTC CDX.IG-31 5-Year Index	Sell	2.400		09/18/2019		100		0			0
JPM	Put - OTC CDX.IG-31 5-Year Index	Sell	0.950		02/20/2019		600		(1	)		(2	)
MYC	Put - OTC CDX.IG-31 5-Year Index	Sell	1.400		04/17/2019		200		(1	)		0
									$    (4	)	$	(4	)

INTEREST RATE SWAPTIONS

Counterparty	Description	Floating Rate Index	Pay/Receive Floating Rate	Exercise Rate		Expiration Date		Notional Amount		Premiums (Received)			Market Value
MYC	Put - OTC 5-Year Interest Rate Swap	3-Month  USD-LIBOR	Pay		2.300%		03/29/2019		$    4,700	$	(94	)	$	(71	)
Total Written Options										$	(98	)	$	(75	)

SWAP AGREEMENTS:

CREDIT DEFAULT SWAPS ON SOVEREIGN ISSUES - SELL PROTECTION⁽¹⁾

Counterparty	Reference Entity	Fixed Receive Rate			Payment Frequency		Maturity Date		Implied Credit Spread at December 31, 2018(2)			Notional Amount(3)		Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)		Swap Agreements, at Value(4)
																			Asset		Liability
BOA	Mexico Government International Bond		1.000	%		Quarterly		06/20/2021		1.032	%	$	100	$	(2	)	$	2	$	0	$	0
BRC	Colombia Government International Bond		1.000			Quarterly		06/20/2021		0.997			500		(15	)		15		0		0
DUB	Brazil Government International Bond		1.000			Quarterly		06/20/2021		1.379			100		(8	)		7		0		(1	)

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 17

Schedule of Investments PIMCO Balanced Allocation Portfolio (Cont.)

Counterparty	Reference Entity	Fixed Receive Rate			Payment Frequency		Maturity Date		Implied Credit Spread at December 31, 2018(2)			Notional Amount(3)		Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)		Swap Agreements, at Value(4)
																			Asset		Liability
GST	Brazil Government International Bond		1.000	%		Quarterly		06/20/2021		1.379	%	$	200	$	(14	)	$	12	$	0	$	(2	)
HUS	Mexico Government International Bond		1.000			Quarterly		06/20/2021		1.032			200		(5	)		5		0		0
JPM	Brazil Government International Bond		1.000			Quarterly		06/20/2021		1.379			100		(7	)		6		0		(1	)
	Russia Government International Bond		1.000			Quarterly		06/20/2021		1.152			100		(6	)		6		0		0
Total Swap Agreements														$	(57	)	$	53	$	0	$	(4	)

FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER SUMMARY

The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral (received) as of December 31, 2018:

	Financial Derivative Assets								Financial Derivative Liabilities
Counterparty	Forward Foreign Currency Contracts		Purchased Options		Swap Agreements		Total Over the Counter		Forward Foreign Currency Contracts			Written Options			Swap Agreements			Total Over the Counter			Net Market Value of OTC Derivatives			Collateral (Received)			Net Exposure(5)
BOA	$	0	$	0	$	0	$	0	$	(6	)	$	(1	)	$	0		$	(7	)	$	(7	)	$	0		$	(7	)
CBK		0		0		0		0		(4	)		(1	)		0			(5	)		(5	)		0			(5	)
DUB		2		0		0		2		0			0			(1	)		(1	)		1			0			1
GLM		6		0		0		6		0			0			0			0			6			0			6
GST		0		0		0		0		0			0			(2	)		(2	)		(2	)		0			(2	)
HUS		6		0		0		6		0			0			0			0			6			0			6
IND		0		0		0		0		(3	)		0			0			(3	)		(3	)		0			(3	)
JPM		4		0		0		4		(1	)		(2	)		(1	)		(4	)		0			0			0
MYC		0		62		0		62		0			(71	)		0			(71	)		(9	)		(10	)		(19	)
SOG		0		0		0		0		(6	)		0			0			(6	)		(6	)		0			(6	)
SSB		0		0		0		0		(2	)		0			0			(2	)		(2	)		0			(2	)
Total Over the Counter	$	18	$	62	$	0	$	80	$	(22	)	$	(75	)	$	(4	)	$	(101	)

⁽¹⁾ If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽²⁾ Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on sovereign issues as of period end serve as indicators of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

⁽³⁾ The maximum potential amount the Portfolio could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

⁽⁴⁾ The prices and resulting values for credit default swap agreements serve as indicators of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced indices’ credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

⁽⁵⁾ Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information regarding master netting arrangements.

FAIR VALUE OF FINANCIAL DERIVATIVE INSTRUMENTS

The following is a summary of the fair valuation of the Portfolio’s derivative instruments categorized by risk exposure. See Note 7, Principal Risks, in the Notes to Financial Statements on risks of the Portfolio.

Fair Values of Financial Derivative Instruments on the Statement of Assets and Liabilities as of December 31, 2018:

	Derivatives not accounted for as hedging instruments
	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Exchange Contracts		Interest Rate Contracts		Total
Financial Derivative Instruments - Assets
Exchange-traded or centrally cleared
Futures	$	0	$	0	$	234	$	0	$	1	$	235
Over the counter
Forward Foreign Currency Contracts	$	0	$	0	$	0	$	18	$	0	$	18
Purchased Options		0		0		0		0		62		62
	$	0	$	0	$	0	$	18	$	62	$	80
	$	0	$	0	$	234	$	18	$	63	$	315

18 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

	Derivatives not accounted for as hedging instruments
	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Exchange Contracts		Interest Rate Contracts		Total
Financial Derivative Instruments - Liabilities
Exchange-traded or centrally cleared
Futures	$	0	$	0	$	2	$	0	$	8	$	10
Swap Agreements		0		0		0		0		12		12
	$	0	$	0	$	2	$	0	$	20	$	22
Over the counter
Forward Foreign Currency Contracts	$	0	$	0	$	0	$	22	$	0	$	22
Written Options		0		4		0		0		71		75
Swap Agreements		0		4		0		0		0		4
	$	0	$	8	$	0	$	22	$	71	$	101
	$	0	$	8	$	2	$	22	$	91	$	123

The effect of Financial Derivative Instruments on the Statement of Operations for the period ended December 31, 2018:

	Derivatives not accounted for as hedging instruments
	Commodity Contracts		Credit Contracts			Equity Contracts			Foreign Exchange Contracts		Interest Rate Contracts			Total
Net Realized Gain (Loss) on Financial Derivative Instruments
Exchange-traded or centrally cleared
Futures	$	0	$	0		$	(3,697	)	$	0	$	22		$	(3,675	)
Swap Agreements		0		135			0			0		15			150
	$	0	$	135		$	(3,697	)	$	0	$	37		$	(3,525	)
Over the counter
Forward Foreign Currency Contracts	$	0	$	0		$	0		$	167	$	0		$	167
Written Options		0		3			0			0		0			3
Swap Agreements		0		28			0			0		0			28
	$	0	$	31		$	0		$	167	$	0		$	198
	$	0	$	166		$	(3,697	)	$	167	$	37		$	(3,327	)
Net Change in Unrealized Appreciation (Depreciation) on Financial Derivative Instruments
Exchange-traded or centrally cleared
Futures	$	0	$	0		$	(2,127	)	$	0	$	(57	)	$	(2,184	)
Swap Agreements		0		(100	)		0			0		(43	)		(143	)
	$	0	$	(100	)	$	(2,127	)	$	0	$	(100	)	$	(2,327	)
Over the counter
Forward Foreign Currency Contracts	$	0	$	0		$	0		$	22	$	0		$	22
Purchased Options		0		0			0			0		7			7
Written Options		0		(1	)		0			0		(2	)		(3	)
Swap Agreements		0		(29	)		0			0		0			(29	)
	$	0	$	(30	)	$	0		$	22	$	5		$	(3	)
	$	0	$	(130	)	$	(2,127	)	$	22	$	(95	)	$	(2,330	)

FAIR VALUE MEASUREMENTS

The following is a summary of the fair valuations according to the inputs used as of December 31, 2018 in valuing the Portfolio’s assets and liabilities:

Category and Subcategory	Level 1		Level 2		Level 3		Fair Value at 12/31/2018
Investments in Securities, at Value
Loan Participations and Assignments	$	0	$	237	$	0	$	237
Corporate Bonds & Notes
Banking & Finance		0		5,074		0		5,074
Industrials		0		2,021		0		2,021
Utilities		0		797		0		797
Municipal Bonds & Notes
Pennsylvania		0		168		0		168
West Virginia		0		186		0		186
U.S. Government Agencies		0		18,441		0		18,441
U.S. Treasury Obligations		0		16,319		0		16,319
Non-Agency Mortgage-Backed Securities		0		777		0		777
Asset-Backed Securities		0		6,697		0		6,697

Category and Subcategory	Level 1		Level 2		Level 3		Fair Value at 12/31/2018
Short-Term Instruments
Repurchase Agreements	$	0	$	24,668	$	0	$	24,668
	$	0	$	75,385	$	0	$	75,385
Investments in Affiliates, at Value
Mutual Funds	$	4,087	$	0	$	0	$	4,087
Short-Term Instruments
Central Funds Used for Cash Management Purposes		23,835		0		0		23,835
	$	27,922	$	0	$	0	$	27,922
Total Investments	$	27,922	$	75,385	$	0	$	103,307

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 19

Schedule of Investments PIMCO Balanced Allocation Portfolio (Cont.)

December 31, 2018

Category and Subcategory	Level 1		Level 2		Level 3		Fair Value at 12/31/2018
Financial Derivative Instruments - Assets
Exchange-traded or centrally cleared	$	235	$	0	$	0	$	235
Over the counter		0		80		0		80
	$	235	$	80	$	0	$	315

Category and Subcategory	Level 1			Level 2			Level 3		Fair Value at 12/31/2018
Financial Derivative Instruments - Liabilities
Exchange-traded or centrally cleared	$	(10	)	$	(12	)	$	0	$	(22	)
Over the counter		0			(101	)		0		(101	)
	$	(10	)	$	(113	)	$	0	$	(123	)
Total Financial Derivative Instruments	$	225		$	(33	)	$	0	$	192
Totals	$	28,147		$	75,352		$	0	$	103,499

There were no significant transfers into or out of Level 3 during the period ended December 31, 2018.

20 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

Notes to Financial Statements

December 31, 2018

1. ORGANIZATION

PIMCO Variable Insurance Trust (the “Trust”) is a Delaware statutory trust established under a trust instrument dated October 3, 1997. The Trust is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Trust is designed to be used as an investment vehicle by separate accounts of insurance companies that fund variable annuity contracts and variable life insurance policies and by qualified pension and retirement plans. Information presented in these financial statements pertains to the Administrative Class and Advisor Class shares of the PIMCO Balanced Allocation Portfolio (the “Portfolio”) offered by the Trust. Pacific Investment Management Company LLC (“PIMCO”) serves as the investment adviser (the “Adviser”) for the Portfolio.

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Portfolio is treated as an investment company under the reporting requirements of U.S. GAAP. The functional and reporting currency for the Portfolio is the U.S. dollar. The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

(a) Securities Transactions and Investment Income  Securities transactions are recorded as of the trade date for financial reporting purposes. Securities purchased or sold on a when-issued or delayed-delivery basis may be settled beyond a standard settlement period for the security after the trade date. Realized gains (losses) from securities sold are recorded on the identified cost basis. Dividend income is recorded on the ex-dividend date, except certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Portfolio is informed of the ex-dividend date. Interest income, adjusted for the accretion of discounts and amortization of premiums, is recorded on the accrual basis from settlement date, with the exception of securities with a forward starting effective date, where interest income is recorded on the accrual basis from effective date. For convertible securities, premiums attributable to the conversion feature are not amortized. Estimated tax liabilities on certain foreign securities are recorded on an accrual basis and are reflected as components of interest income or net change in unrealized appreciation (depreciation) on investments on the Statement of

Operations, as appropriate. Tax liabilities realized as a result of such security sales are reflected as a component of net realized gain (loss) on investments on the Statement of Operations. Paydown gains (losses) on mortgage-related and other asset-backed securities, if any, are recorded as components of interest income on the Statement of Operations. Income or short-term capital gain distributions received from registered investment companies, if any, are recorded as dividend income. Long-term capital gain distributions received from registered investment companies, if any, are recorded as realized gains.

Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivable when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is probable.

(b) Foreign Currency Translation  The market values of foreign securities, currency holdings and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the current exchange rates each business day. Purchases and sales of securities and income and expense items denominated in foreign currencies, if any, are translated into U.S. dollars at the exchange rate in effect on the transaction date. The Portfolio does not separately report the effects of changes in foreign exchange rates from changes in market prices on securities held. Such changes are included in net realized gain (loss) and net change in unrealized appreciation (depreciation) from investments on the Statement of Operations. The Portfolio may invest in foreign currency-denominated securities and may engage in foreign currency transactions either on a spot (cash) basis at the rate prevailing in the currency exchange market at the time or through a forward foreign currency contract. Realized foreign exchange gains (losses) arising from sales of spot foreign currencies, currency gains (losses) realized between the trade and settlement dates on securities transactions and the difference between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid are included in net realized gain (loss) on foreign currency transactions on the Statement of Operations. Net unrealized foreign exchange gains (losses) arising from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period are included in net change in unrealized appreciation (depreciation) on foreign currency assets and liabilities on the Statement of Operations.

(c) Multi-Class Operations  Each class offered by the Trust has equal rights as to assets and voting privileges (except that shareholders of a class have exclusive voting rights regarding any matter relating solely to that class of shares). Income and non-class specific expenses are

ANNUAL REPORT DECEMBER 31, 2018 21

Notes to Financial Statements (Cont.)

allocated daily to each class on the basis of the relative net assets. Realized and unrealized capital gains (losses) are allocated daily based on the relative net assets of each class of the Portfolio. Class specific expenses, where applicable, currently include supervisory and administrative and distribution and servicing fees. Under certain circumstances, the per share net asset value (“NAV”) of a class of the Portfolio’s shares may be different from the per share NAV of another class of shares as a result of the different daily expense accruals applicable to each class of shares.

(d) Distributions to Shareholders  Distributions from net investment income, if any, are declared and distributed to shareholders quarterly. Net realized capital gains earned by the Portfolio, if any, will be distributed no less frequently than once each year.

Income distributions and capital gain distributions are determined in accordance with income tax regulations which may differ from U.S. GAAP. Differences between tax regulations and U.S. GAAP may cause timing differences between income and capital gain recognition. Further, the character of investment income and capital gains may be different for certain transactions under the two methods of accounting. As a result, income distributions and capital gain distributions declared during a fiscal period may differ significantly from the net investment income (loss) and realized gains (losses) reported on the Portfolio’s annual financial statements presented under U.S. GAAP.

If the Portfolio estimates that a portion of its distribution may be comprised of amounts from sources other than net investment income in accordance with its policies and good accounting practices, the Portfolio will notify shareholders of the estimated composition of such distribution through a Section 19 Notice. For these purposes, the Portfolio estimates the source or sources from which a distribution is paid, to the close of the period as of which it is paid, in reference to its internal accounting records and related accounting practices. If, based on such accounting records and practices, it is estimated that a particular distribution does not include capital gains or paid-in surplus or other capital sources, a Section 19 Notice generally would not be issued. It is important to note that differences exist between the Portfolio’s daily internal accounting records and practices, the Portfolio’s financial statements presented in accordance with U.S. GAAP, and recordkeeping practices under income tax regulations. For instance, the Portfolio’s internal accounting records and practices may take into account, among other factors, tax-related characteristics of certain sources of distributions that differ from treatment under U.S. GAAP. Examples of such differences may include, among others, the treatment of paydowns on mortgage-backed securities purchased at a discount and periodic payments under interest rate swap contracts. Accordingly, among other consequences, it is possible that the Portfolio may not issue a Section 19 Notice in situations where the Portfolio’s

financial statements prepared later and in accordance with U.S. GAAP and/or the final tax character of those distributions might later report that the sources of those distributions included capital gains and/or a return of capital. Final determination of a distribution’s tax character will be provided to shareholders when such information is available.

Distributions classified as a tax basis return of capital, if any, are reflected on the Statements of Changes in Net Assets and have been recorded to paid in capital on the Statement of Assets and Liabilities. In addition, other amounts have been reclassified between distributable earnings (accumulated loss) and paid in capital on the Statement of Assets and Liabilities to more appropriately conform U.S. GAAP to tax characterizations of distributions.

(e) New Accounting Pronouncements  In August 2016, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”), ASU 2016-15, which amends Accounting Standards Codification (“ASC”) 230 to clarify guidance on the classification of certain cash receipts and cash payments in the Statement of Cash Flows. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In November 2016, the FASB issued ASU 2016-18 which amends ASC 230 to provide guidance on the classification and presentation of changes in restricted cash and restricted cash equivalents on the Statement of Cash Flows. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In March 2017, the FASB issued ASU 2017-08 which provides guidance related to the amortization period for certain purchased callable debt securities held at a premium. The ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In August 2018, the FASB issued ASU 2018-13 which modifies certain disclosure requirements for fair value measurements in ASC 820. The ASU is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. At this time, management has elected to early adopt the amendments that allow for removal of certain disclosure requirements. Management plans to adopt the amendments that require additional fair value measurement disclosures for annual periods beginning after December 15, 2019, and

22 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

interim periods within those annual periods. Management is currently evaluating the impact of these changes on the financial statements.

In August 2018, the U.S. Securities and Exchange Commission (“SEC”) adopted amendments to certain rules and forms for the purpose of disclosure update and simplification. The compliance date for these amendments is 30 days after date of publication in the Federal Register, which was on October 4, 2018. Management has adopted these amendments and the changes are incorporated throughout all periods presented in the financial statements.

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

(a) Investment Valuation Policies  The price of the Portfolio’s shares is based on the Portfolio’s NAV. The NAV of the Portfolio, or each of its share classes, as applicable, is determined by dividing the total value of portfolio investments and other assets, less any liabilities attributable to the Portfolio or class, by the total number of shares outstanding of the Portfolio or class.

On each day that the New York Stock Exchange (“NYSE”) is open, Portfolio shares are ordinarily valued as of the close of regular trading (“NYSE Close”). Information that becomes known to the Portfolio or its agents after the time as of which NAV has been calculated on a particular day will not generally be used to retroactively adjust the price of a security or the NAV determined earlier that day. The Portfolio reserves the right to change the time as of which its NAV is calculated if the Portfolio closes earlier, or as permitted by the SEC.

For purposes of calculating a NAV, portfolio securities and other assets for which market quotes are readily available are valued at market value. Market value is generally determined on the basis of official closing prices or the last reported sales prices, or if no sales are reported, based on quotes obtained from established market makers or prices (including evaluated prices) supplied by the Portfolio’s approved pricing services, quotation reporting systems and other third-party sources (together, “Pricing Services”). The Portfolio will normally use pricing data for domestic equity securities received shortly after the NYSE Close and does not normally take into account trading, clearances or settlements that take place after the NYSE Close. If market value pricing is used, a foreign (non-U.S.) equity security traded on a foreign exchange or on more than one exchange is typically valued using pricing information from the exchange considered by the Adviser to be the primary exchange. A foreign (non-U.S.) equity security will be valued as of the close of trading on the foreign exchange, or the NYSE Close, if the NYSE Close occurs before the end of trading on the foreign exchange. Domestic and foreign (non-U.S.) fixed income securities, non-exchange traded derivatives, and equity options are normally valued on the basis of quotes obtained from brokers and

dealers or Pricing Services using data reflecting the earlier closing of the principal markets for those securities. Prices obtained from Pricing Services may be based on, among other things, information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics. Certain fixed income securities purchased on a delayed-delivery basis are marked to market daily until settlement at the forward settlement date. Exchange-traded options, except equity options, futures and options on futures are valued at the settlement price determined by the relevant exchange. Swap agreements are valued on the basis of bid quotes obtained from brokers and dealers or market-based prices supplied by Pricing Services. The Portfolio’s investments in open-end management investment companies, other than exchange-traded funds (“ETFs”), are valued at the NAVs of such investments. Open-end management investment companies may include affiliated funds.

If a foreign (non-U.S.) equity security’s value has materially changed after the close of the security’s primary exchange or principal market but before the NYSE Close, the security may be valued at fair value based on procedures established and approved by the Board of Trustees of the Trust (the “Board”). Foreign (non-U.S.) equity securities that do not trade when the NYSE is open are also valued at fair value. With respect to foreign (non-U.S.) equity securities, the Portfolio may determine the fair value of investments based on information provided by Pricing Services and other third-party vendors, which may recommend fair value or adjustments with reference to other securities, indices or assets. In considering whether fair valuation is required and in determining fair values, the Portfolio may, among other things, consider significant events (which may be considered to include changes in the value of U.S. securities or securities indices) that occur after the close of the relevant market and before the NYSE Close. The Portfolio may utilize modeling tools provided by third-party vendors to determine fair values of foreign (non-U.S.) securities. For these purposes, any movement in the applicable reference index or instrument (“zero trigger”) between the earlier close of the applicable foreign market and the NYSE Close may be deemed to be a significant event, prompting the application of the pricing model (effectively resulting in daily fair valuations). Foreign exchanges may permit trading in foreign (non-U.S.) equity securities on days when the Trust is not open for business, which may result in the Portfolio’s portfolio investments being affected when shareholders are unable to buy or sell shares.

Senior secured floating rate loans for which an active secondary market exists to a reliable degree will be valued at the mean of the last available bid/ask prices in the market for such loans, as provided by a Pricing Service. Senior secured floating rate loans for which an active secondary market does not exist to a reliable degree will be valued at fair value, which is intended to approximate market value. In valuing a

ANNUAL REPORT DECEMBER 31, 2018 23

Notes to Financial Statements (Cont.)

senior secured floating rate loan at fair value, the factors considered may include, but are not limited to, the following: (a) the creditworthiness of the borrower and any intermediate participants, (b) the terms of the loan, (c) recent prices in the market for similar loans, if any, and (d) recent prices in the market for instruments of similar quality, rate, period until next interest rate reset and maturity.

Investments valued in currencies other than the U.S. dollar are converted to the U.S. dollar using exchange rates obtained from Pricing Services. As a result, the value of such investments and, in turn, the NAV of the Portfolio’s shares may be affected by changes in the value of currencies in relation to the U.S. dollar. The value of investments traded in markets outside the United States or denominated in currencies other than the U.S. dollar may be affected significantly on a day that the Trust is not open for business. As a result, to the extent that the Portfolio holds foreign (non-U.S.) investments, the value of those investments may change at times when shareholders are unable to buy or sell shares and the value of such investments will be reflected in the Portfolio’s next calculated NAV.

Investments for which market quotes or market based valuations are not readily available are valued at fair value as determined in good faith by the Board or persons acting at their direction. The Board has adopted methods for valuing securities and other assets in circumstances where market quotes are not readily available, and has delegated to the Adviser the responsibility for applying the fair valuation methods. In the event that market quotes or market based valuations are not readily available, and the security or asset cannot be valued pursuant to a Board approved valuation method, the value of the security or asset will be determined in good faith by the Board. Market quotes are considered not readily available in circumstances where there is an absence of current or reliable market-based data (e.g., trade information, bid/ask information, indicative market quotations (“Broker Quotes”), Pricing Services’ prices), including where events occur after the close of the relevant market, but prior to the NYSE Close, that materially affect the values of the Portfolio’s securities or assets. In addition, market quotes are considered not readily available when, due to extraordinary circumstances, the exchanges or markets on which the securities trade do not open for trading for the entire day and no other market prices are available. The Board has delegated, to the Adviser, the responsibility for monitoring significant events that may materially affect the values of the Portfolio’s securities or assets and for determining whether the value of the applicable securities or assets should be reevaluated in light of such significant events.

When the Portfolio uses fair valuation to determine the value of a portfolio security or other asset for purposes of calculating its NAV, such investments will not be priced on the basis of quotes from the primary market in which they are traded, but rather may be priced by

another method that the Board or persons acting at their direction believe reflects fair value. Fair valuation may require subjective determinations about the value of a security. While the Trust’s policy is intended to result in a calculation of the Portfolio’s NAV that fairly reflects security values as of the time of pricing, the Trust cannot ensure that fair values determined by the Board or persons acting at their direction would accurately reflect the price that the Portfolio could obtain for a security if it were to dispose of that security as of the time of pricing (for instance, in a forced or distressed sale). The prices used by the Portfolio may differ from the value that would be realized if the securities were sold. The Portfolio’s use of fair valuation may also help to deter “stale price arbitrage” as discussed under the “Frequent or Excessive Purchases, Exchanges and Redemptions” section in the Portfolio’s prospectus.

(b) Fair Value Hierarchy  U.S. GAAP describes fair value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into levels (Level 1, 2, or 3). The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Levels 1, 2, and 3 of the fair value hierarchy are defined as follows:

^∎  Level 1 — Quoted prices in active markets or exchanges for identical assets and liabilities.

^∎  Level 2 — Significant other observable inputs, which may include, but are not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market corroborated inputs.

^∎  Level 3 — Significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, which may include assumptions made by the Board or persons acting at their direction that are used in determining the fair value of investments.

In accordance with the requirements of U.S. GAAP, the amounts of transfers into and out of Level 3, if material, are disclosed in the Notes to Schedule of Investments for the Portfolio.

For fair valuations using significant unobservable inputs, U.S. GAAP requires a reconciliation of the beginning to ending balances for reported fair values that presents changes attributable to realized gain (loss), unrealized appreciation (depreciation), purchases and sales,

24 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

accrued discounts (premiums), and transfers into and out of the Level 3 category during the period. The end of period value is used for the transfers between Levels of the Portfolio’s assets and liabilities. Additionally, U.S. GAAP requires quantitative information regarding the significant unobservable inputs used in the determination of fair value of assets or liabilities categorized as Level 3 in the fair value hierarchy. In accordance with the requirements of U.S. GAAP, a fair value hierarchy, and if material, a Level 3 reconciliation and details of significant unobservable inputs, have been included in the Notes to Schedule of Investments for the Portfolio.

(c) Valuation Techniques and the Fair Value Hierarchy

Level 1 and Level 2 trading assets and trading liabilities, at fair value  The valuation methods (or “techniques”) and significant inputs used in determining the fair values of portfolio securities or other assets and liabilities categorized as Level 1 and Level 2 of the fair value hierarchy are as follows:

Fixed income securities including corporate, convertible and municipal bonds and notes, U.S. government agencies, U.S. treasury obligations, sovereign issues, bank loans, convertible preferred securities and non-U.S. bonds are normally valued on the basis of quotes obtained from brokers and dealers or Pricing Services that use broker-dealer quotations, reported trades or valuation estimates from their internal pricing models. The Pricing Services’ internal models use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar assets. Securities that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

Fixed income securities purchased on a delayed-delivery basis or as a repurchase commitment in a sale-buyback transaction are marked to market daily until settlement at the forward settlement date and are categorized as Level 2 of the fair value hierarchy.

Mortgage-related and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also normally valued by Pricing Services that use broker-dealer quotations, reported trades or valuation estimates from their internal pricing models. The pricing models for these securities usually consider tranche-level attributes, current market data, estimated cash flows and market-based yield spreads for each tranche, and incorporate deal collateral performance, as available. Mortgage-related and asset-backed securities that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

Common stocks, ETFs, exchange-traded notes and financial derivative instruments, such as futures contracts, rights and warrants, or options

on futures that are traded on a national securities exchange, are stated at the last reported sale or settlement price on the day of valuation. To the extent these securities are actively traded and valuation adjustments are not applied, they are categorized as Level 1 of the fair value hierarchy.

Valuation adjustments may be applied to certain securities that are solely traded on a foreign exchange to account for the market movement between the close of the foreign market and the NYSE Close. These securities are valued using Pricing Services that consider the correlation of the trading patterns of the foreign security to the intraday trading in the U.S. markets for investments. Securities using these valuation adjustments are categorized as Level 2 of the fair value hierarchy. Preferred securities and other equities traded on inactive markets or valued by reference to similar instruments are also categorized as Level 2 of the fair value hierarchy.

Investments in registered open-end investment companies (other than ETFs) will be valued based upon the NAVs of such investments and are categorized as Level 1 of the fair value hierarchy. Investments in unregistered open-end investment companies will be calculated based upon the NAVs of such investments and are considered Level 1 provided that the NAVs are observable, calculated daily and are the value at which both purchases and sales will be conducted.

Equity exchange-traded options and over the counter financial derivative instruments, such as forward foreign currency contracts and options contracts derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors. These contracts are normally valued on the basis of quotes obtained from a quotation reporting system, established market makers or Pricing Services (normally determined as of the NYSE Close). Depending on the product and the terms of the transaction, financial derivative instruments can be valued by Pricing Services using a series of techniques, including simulation pricing models. The pricing models use inputs that are observed from actively quoted markets such as quoted prices, issuer details, indices, bid/ask spreads, interest rates, implied volatilities, yield curves, dividends and exchange rates. Financial derivative instruments that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

Centrally cleared swaps and over the counter swaps derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors. They are valued using a broker-dealer bid quotation or on market-based prices provided by Pricing Services (normally determined as of the NYSE close). Centrally cleared swaps and over the counter swaps can be valued by Pricing Services using a series of techniques, including simulation pricing models. The

ANNUAL REPORT DECEMBER 31, 2018 25

Notes to Financial Statements (Cont.)

pricing models may use inputs that are observed from actively quoted markets such as the overnight index swap rate (“OIS”), London Interbank Offered Rate (“LIBOR”) forward rate, interest rates, yield curves and credit spreads. These securities are categorized as Level 2 of the fair value hierarchy.

Level 3 trading assets and trading liabilities, at fair value When a fair valuation method is applied by the Adviser that uses significant unobservable inputs, investments will be priced by a method that the Board or persons acting at their direction believe reflects fair value and are categorized as Level 3 of the fair value hierarchy.

Short-term debt instruments (such as commercial paper) having a remaining maturity of 60 days or less may be valued at amortized cost, so long as the amortized cost value of such short-term debt instruments is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. These securities are categorized as Level 2 or Level 3 of the fair value hierarchy depending on the source of the base price.

4. SECURITIES AND OTHER INVESTMENTS

(a) Investments in Affiliates

The Portfolio may invest in a combination of affiliated and unaffiliated Funds, which may or may not be registered under the Act. The Portfolio may invest in Institutional Class or Class M shares of any funds of the PIMCO Funds and PIMCO Equity Series, affiliated open-end investment companies, except funds of funds (“Underlying PIMCO Funds”), other affiliated funds, including funds of PIMCO ETF Trust, and unaffiliated funds, which may or may not be registered under the Act (collectively, “Acquired Funds”). The Portfolio may invest in such funds to the extent permitted under the Act. The Portfolio may invest in the PIMCO Short Asset Portfolio and the PIMCO Short-Term Floating NAV Portfolio III (“Central Funds”) to the extent permitted by the Act and rules thereunder. The Central Funds are registered investment companies created for use solely by the series of the Trust and other series of registered investment companies advised by the Adviser, in connection with their cash management activities. The main investments of the Central Funds are money market and short maturity fixed income instruments. The Central Funds may incur expenses related to their investment activities, but do not pay Investment Advisory Fees or Supervisory and Administrative Fees to the Adviser. The Central Funds are considered to be affiliated with the Portfolio. The table below shows the Portfolio’s transactions in and earnings from investments in the affiliated Funds for the period ended December 31, 2018 (amounts in thousands^†):

Underlying PIMCO Funds	Market Value 12/31/2017		Purchases at Cost		Proceeds from Sales			Net Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Market Value 12/31/2018		Dividend Income(1)		Realized Net Capital Gain Distributions(1)
PIMCO Income Fund	$	4,063	$	224	$	0		$	0		$	(200	)	$	4,087	$	224	$	0
PIMCO Short-Term Floating NAV Portfolio III		24,763		82,474		(83,400	)		(5	)		3			23,835		374		0
Totals	$	28,826	$	82,698	$	(83,400	)	$	(5	)	$	(197	)	$	27,922	$	598	$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽¹⁾  The tax characterization of distributions is determined in accordance with Federal income tax regulations and may contain a return of capital. The actual tax characterization of distributions received is determined at the end of the fiscal year of the affiliated fund. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

(b) Investments in Securities

The Portfolio may utilize the investments and strategies described below to the extent permitted by the Portfolio’s investment policies.

Inflation-Indexed Bonds  are fixed income securities whose principal value is periodically adjusted by the rate of inflation. The interest rate on these bonds is generally fixed at issuance at a rate lower than typical bonds. Over the life of an inflation-indexed bond, however, interest will be paid based on a principal value which is adjusted for inflation. Any increase or decrease in the principal amount of an inflation-indexed bond will be included as interest income on the Statement of Operations, even though investors do not receive their

principal until maturity. Repayment of the original bond principal upon maturity (as adjusted for inflation) is guaranteed in the case of U.S. Treasury Inflation-Protected Securities (“TIPS”). For bonds that do not provide a similar guarantee, the adjusted principal value of the bond repaid at maturity may be less than the original principal.

Loans and Other Indebtedness, Loan Participations and Assignments  are direct debt instruments which are interests in amounts owed to lenders or lending syndicates by corporate, governmental, or other borrowers. The Portfolio’s investments in loans may be in the form of participations in loans or assignments of all or a portion of loans from third parties or investments in or originations of

26 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

loans by the Portfolio. A loan is often administered by a bank or other financial institution (the “agent”) that acts as agent for all holders. The agent administers the terms of the loan, as specified in the loan agreement. The Portfolio may invest in multiple series or tranches of a loan, which may have varying terms and carry different associated risks. When the Portfolio purchases assignments from agents it acquires direct rights against the borrowers of the loans. These loans may include participations in bridge loans, which are loans taken out by borrowers for a short period (typically less than one year) pending arrangement of more permanent financing through, for example, the issuance of bonds, frequently high yield bonds issued for the purpose of acquisitions.

The types of loans and related investments in which the Portfolio may invest include, among others, senior loans, subordinated loans (including second lien loans, B-Notes and mezzanine loans), whole loans, commercial real estate and other commercial loans and structured loans. The Portfolio may originate loans or acquire direct interests in loans through primary loan distributions and/or in private transactions. In the case of subordinated loans, there may be significant indebtedness ranking ahead of the borrower’s obligation to the holder of such a loan, including in the event of the borrower’s insolvency. Mezzanine loans are typically secured by a pledge of an equity interest in the mortgage borrower that owns the real estate rather than an interest in a mortgage.

Investments in loans may include unfunded loan commitments, which are contractual obligations for funding. Unfunded loan commitments may include revolving credit facilities, which may obligate the Portfolio to supply additional cash to the borrower on demand. Unfunded loan commitments represent a future obligation in full, even though a percentage of the committed amount may not be utilized by the borrower. When investing in a loan participation, the Portfolio has the right to receive payments of principal, interest and any fees to which it is entitled only from the agent selling the loan agreement and only upon receipt of payments by the agent from the borrower. The Portfolio may receive a commitment fee based on the undrawn portion of the underlying line of credit portion of a loan. In certain circumstances, the Portfolio may receive a penalty fee upon the prepayment of a loan by a borrower. Fees earned or paid are recorded as a component of interest income or interest expense, respectively, on the Statement of Operations. Unfunded loan commitments are reflected as a liability on the Statement of Assets and Liabilities.

Mortgage-Related and Other Asset-Backed Securities  directly or indirectly represent a participation in, or are secured by and payable from, loans on real property. Mortgage-related securities are created from pools of residential or commercial mortgage loans, including mortgage loans made by savings and loan institutions, mortgage bankers, commercial banks and others. These securities provide a

monthly payment which consists of both interest and principal. Interest may be determined by fixed or adjustable rates. The rate of prepayments on underlying mortgages will affect the price and volatility of a mortgage-related security, and may have the effect of shortening or extending the effective duration of the security relative to what was anticipated at the time of purchase. The timely payment of principal and interest of certain mortgage-related securities is guaranteed with the full faith and credit of the U.S. Government. Pools created and guaranteed by non-governmental issuers, including government-sponsored corporations, may be supported by various forms of insurance or guarantees, but there can be no assurance that private insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Many of the risks of investing in mortgage-related securities secured by commercial mortgage loans reflect the effects of local and other economic conditions on real estate markets, the ability of tenants to make lease payments, and the ability of a property to attract and retain tenants. These securities may be less liquid and may exhibit greater price volatility than other types of mortgage-related or other asset-backed securities. Other asset-backed securities are created from many types of assets, including, but not limited to, auto loans, accounts receivable, such as credit card receivables and hospital account receivables, home equity loans, student loans, boat loans, mobile home loans, recreational vehicle loans, manufactured housing loans, aircraft leases, computer leases and syndicated bank loans.

Collateralized Debt Obligations  (“CDOs”) include Collateralized Bond Obligations (“CBOs”), Collateralized Loan Obligations (“CLOs”) and other similarly structured securities. CBOs and CLOs are types of asset-backed securities. A CBO is a trust which is backed by a diversified pool of high risk, below investment grade fixed income securities. A CLO is a trust typically collateralized by a pool of loans, which may include, among others, domestic and foreign senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated below investment grade or equivalent unrated loans. The risks of an investment in a CDO depend largely on the type of the collateral securities and the class of the CDO in which the Portfolio invests. In addition to the normal risks associated with fixed income securities discussed elsewhere in this report and the Portfolio’s prospectus and statement of additional information (e.g., prepayment risk, credit risk, liquidity risk, market risk, structural risk, legal risk and interest rate risk (which may be exacerbated if the interest rate payable on a structured financing changes based on multiples of changes in interest rates or inversely to changes in interest rates)), CBOs, CLOs and other CDOs carry additional risks including, but not limited to, (i) the possibility that distributions from collateral securities will not be adequate to make interest or other payments, (ii) the quality of the collateral may decline in value or default, (iii) the risk that the Portfolio

ANNUAL REPORT DECEMBER 31, 2018 27

Notes to Financial Statements (Cont.)

may invest in CBOs, CLOs, or other CDOs that are subordinate to other classes, and (iv) the complex structure of the security may not be fully understood at the time of investment and may produce disputes with the issuer or unexpected investment results.

Collateralized Mortgage Obligations  (“CMOs”) are debt obligations of a legal entity that are collateralized by whole mortgage loans or private mortgage bonds and divided into classes. CMOs are structured into multiple classes, often referred to as “tranches”, with each class bearing a different stated maturity and entitled to a different schedule for payments of principal and interest, including prepayments. CMOs may be less liquid and may exhibit greater price volatility than other types of mortgage-related or asset-backed securities.

Perpetual Bonds  are fixed income securities with no maturity date but pay a coupon in perpetuity (with no specified ending or maturity date). Unlike typical fixed income securities, there is no obligation for perpetual bonds to repay principal. The coupon payments, however, are mandatory. While perpetual bonds have no maturity date, they may have a callable date in which the perpetuity is eliminated and the issuer may return the principal received on the specified call date. Additionally, a perpetual bond may have additional features, such as interest rate increases at periodic dates or an increase as of a predetermined point in the future.

Securities Issued by U.S. Government Agencies or Government-Sponsored Enterprises  are obligations of and, in certain cases, guaranteed by, the U.S. Government, its agencies or instrumentalities. Some U.S. Government securities, such as Treasury bills, notes and bonds, and securities guaranteed by the Government National Mortgage Association (“GNMA” or “Ginnie Mae”), are supported by the full faith and credit of the U.S. Government; others, such as those of the Federal Home Loan Banks, are supported by the right of the issuer to borrow from the U.S. Department of the Treasury (the “U.S. Treasury”); and others, such as those of the Federal National Mortgage Association (“FNMA” or “Fannie Mae”), are supported by the discretionary authority of the U.S. Government to purchase the agency’s obligations. U.S. Government securities may include zero coupon securities. Zero coupon securities do not distribute interest on a current basis and tend to be subject to a greater risk than interest-paying securities.

Government-related guarantors (i.e., not backed by the full faith and credit of the U.S. Government) include FNMA and the Federal Home Loan Mortgage Corporation (“FHLMC” or “Freddie Mac”). FNMA is a government-sponsored corporation. FNMA purchases conventional (i.e., not insured or guaranteed by any government agency) residential mortgages from a list of approved seller/servicers which include state and federally chartered savings and loan associations, mutual savings

banks, commercial banks and credit unions and mortgage bankers. Pass-through securities issued by FNMA are guaranteed as to timely payment of principal and interest by FNMA, but are not backed by the full faith and credit of the U.S. Government. FHLMC issues Participation Certificates (“PCs”), which are pass-through securities, each representing an undivided interest in a pool of residential mortgages. FHLMC guarantees the timely payment of interest and ultimate collection of principal, but PCs are not backed by the full faith and credit of the U.S. Government.

Roll-timing strategies can be used where the Portfolio seeks to extend the expiration or maturity of a position, such as a TBA security on an underlying asset, by closing out the position before expiration and opening a new position with respect to substantially the same underlying asset with a later expiration date. TBA securities purchased or sold are reflected on the Statement of Assets and Liabilities as an asset or liability, respectively.

5. BORROWINGS AND OTHER FINANCING TRANSACTIONS

The Portfolio may enter into the borrowings and other financing transactions described below to the extent permitted by the Portfolio’s investment policies.

The following disclosures contain information on the Portfolio’s ability to lend or borrow cash or securities to the extent permitted under the Act, which may be viewed as borrowing or financing transactions by the Portfolio. The location of these instruments in the Portfolio’s financial statements is described below.

(a) Repurchase Agreements  Under the terms of a typical repurchase agreement, the Portfolio purchases an underlying debt obligation (collateral) subject to an obligation of the seller to repurchase, and the Portfolio to resell, the obligation at an agreed-upon price and time. In an open maturity repurchase agreement, there is no pre-determined repurchase date and the agreement can be terminated by the Portfolio or counterparty at any time. The underlying securities for all repurchase agreements are held by the Portfolio’s custodian or designated subcustodians under tri-party repurchase agreements and in certain instances will remain in custody with the counterparty. The market value of the collateral must be equal to or exceed the total amount of the repurchase obligations, including interest. Repurchase agreements, if any, including accrued interest, are included on the Statement of Assets and Liabilities. Interest earned is recorded as a component of interest income on the Statement of Operations. In periods of increased demand for collateral, the Portfolio may pay a fee for the receipt of collateral, which may result in interest expense to the Portfolio.

28 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

(b) Reverse Repurchase Agreements  In a reverse repurchase agreement, the Portfolio delivers a security in exchange for cash to a financial institution, the counterparty, with a simultaneous agreement to repurchase the same or substantially the same security at an agreed upon price and date. In an open maturity reverse repurchase agreement, there is no pre-determined repurchase date and the agreement can be terminated by the Portfolio or counterparty at any time. The Portfolio is entitled to receive principal and interest payments, if any, made on the security delivered to the counterparty during the term of the agreement. Cash received in exchange for securities delivered plus accrued interest payments to be made by the Portfolio to counterparties are reflected as a liability on the Statement of Assets and Liabilities. Interest payments made by the Portfolio to counterparties are recorded as a component of interest expense on the Statement of Operations. In periods of increased demand for the security, the Portfolio may receive a fee for use of the security by the counterparty, which may result in interest income to the Portfolio. The Portfolio will segregate assets determined to be liquid by the Adviser or will otherwise cover its obligations under reverse repurchase agreements.

(c) Sale-Buybacks  A sale-buyback financing transaction consists of a sale of a security by the Portfolio to a financial institution, the counterparty, with a simultaneous agreement to repurchase the same or substantially the same security at an agreed-upon price and date. The Portfolio is not entitled to receive principal and interest payments, if any, made on the security sold to the counterparty during the term of the agreement. The agreed-upon proceeds for securities to be repurchased by the Portfolio are reflected as a liability on the Statement of Assets and Liabilities. The Portfolio will recognize net income represented by the price differential between the price received for the transferred security and the agreed-upon repurchase price. This is commonly referred to as the ‘price drop’. A price drop consists of (i) the foregone interest and inflationary income adjustments, if any, the Portfolio would have otherwise received had the security not been sold and (ii) the negotiated financing terms between the Portfolio and counterparty. Foregone interest and inflationary income adjustments, if any, are recorded as components of interest income on the Statement of Operations. Interest payments based upon negotiated financing terms made by the Portfolio to counterparties are recorded as a component of interest expense on the Statement of Operations. In periods of increased demand for the security, the Portfolio may receive a fee for use of the security by the counterparty, which may result in interest income to the Portfolio. The Portfolio will segregate assets determined to be liquid by the Adviser or will otherwise cover its obligations under sale-buyback transactions.

6. FINANCIAL DERIVATIVE INSTRUMENTS

The Portfolio may enter into the financial derivative instruments described below to the extent permitted by the Portfolio’s investment policies.

The following disclosures contain information on how and why the Portfolio uses financial derivative instruments, and how financial derivative instruments affect the Portfolio’s financial position, results of operations and cash flows. The location and fair value amounts of these instruments on the Statement of Assets and Liabilities and the net realized gain (loss) and net change in unrealized appreciation (depreciation) on the Statement of Operations, each categorized by type of financial derivative contract and related risk exposure, are included in a table in the Notes to Schedule of Investments. The financial derivative instruments outstanding as of period end and the amounts of net realized gain (loss) and net change in unrealized appreciation (depreciation) on financial derivative instruments during the period, as disclosed in the Notes to Schedule of Investments, serve as indicators of the volume of financial derivative activity for the Portfolio.

(a) Forward Foreign Currency Contracts  may be engaged, in connection with settling planned purchases or sales of securities, to hedge the currency exposure associated with some or all of the Portfolio’s securities or as part of an investment strategy. A forward foreign currency contract is an agreement between two parties to buy and sell a currency at a set price on a future date. The market value of a forward foreign currency contract fluctuates with changes in foreign currency exchange rates. Forward foreign currency contracts are marked to market daily, and the change in value is recorded by the Portfolio as an unrealized gain (loss). Realized gains (losses) are equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed and are recorded upon delivery or receipt of the currency. These contracts may involve market risk in excess of the unrealized gain (loss) reflected on the Statement of Assets and Liabilities. In addition, the Portfolio could be exposed to risk if the counterparties are unable to meet the terms of the contracts or if the value of the currency changes unfavorably to the U.S. dollar. To mitigate such risk, cash or securities may be exchanged as collateral pursuant to the terms of the underlying contracts.

(b) Futures Contracts  are agreements to buy or sell a security or other asset for a set price on a future date. The Portfolio may use futures contracts to manage its exposure to the securities markets or to movements in interest rates and currency values. The primary risks associated with the use of futures contracts are the imperfect correlation between the change in market value of the securities held by the Portfolio and the prices of futures contracts and the possibility of

ANNUAL REPORT DECEMBER 31, 2018 29

Notes to Financial Statements (Cont.)

an illiquid market. Futures contracts are valued based upon their quoted daily settlement prices. Upon entering into a futures contract, the Portfolio is required to deposit with its futures broker an amount of cash, U.S. Government and Agency Obligations, or select sovereign debt, in accordance with the initial margin requirements of the broker or exchange. Futures contracts are marked to market daily and based on such movements in the price of the contracts, an appropriate payable or receivable for the change in value may be posted or collected by the Portfolio (“Futures Variation Margin”). Gains (losses) are recognized but not considered realized until the contracts expire or close. Futures contracts involve, to varying degrees, risk of loss in excess of the Futures Variation Margin included within exchange traded or centrally cleared financial derivative instruments on the Statement of Assets and Liabilities.

(c) Options Contracts  may be written or purchased to enhance returns or to hedge an existing position or future investment. The Portfolio may write call and put options on securities and financial derivative instruments it owns or in which it may invest. Writing put options tends to increase the Portfolio’s exposure to the underlying instrument. Writing call options tends to decrease the Portfolio’s exposure to the underlying instrument. When the Portfolio writes a call or put, an amount equal to the premium received is recorded and subsequently marked to market to reflect the current value of the option written. These amounts are included on the Statement of Assets and Liabilities. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options which are exercised or closed are added to the proceeds or offset against amounts paid on the underlying futures, swap, security or currency transaction to determine the realized gain (loss). Certain options may be written with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. The Portfolio as a writer of an option has no control over whether the underlying instrument may be sold (“call”) or purchased (“put”) and as a result bears the market risk of an unfavorable change in the price of the instrument underlying the written option. There is the risk the Portfolio may not be able to enter into a closing transaction because of an illiquid market.

Purchasing call options tends to increase the Portfolio’s exposure to the underlying instrument. Purchasing put options tends to decrease the Portfolio’s exposure to the underlying instrument. The Portfolio pays a premium which is included as an asset on the Statement of Assets and Liabilities and subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options which expire are treated as realized losses. Certain options may be purchased with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms.

The risk associated with purchasing put and call options is limited to the premium paid. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the underlying investment transaction to determine the realized gain (loss) when the underlying transaction is executed.

Credit Default Swaptions  may be written or purchased to hedge exposure to the credit risk of an investment without making a commitment to the underlying instrument. A credit default swaption is an option to sell or buy credit protection on a specific reference by entering into a pre-defined swap agreement by some specified date in the future.

Interest Rate Swaptions  may be written or purchased to enter into a pre-defined swap agreement or to shorten, extend, cancel or otherwise modify an existing swap agreement, by some specified date in the future. The writer of the swaption becomes the counterparty to the swap if the buyer exercises. The interest rate swaption agreement will specify whether the buyer of the swaption will be a fixed-rate receiver or a fixed-rate payer upon exercise.

(d) Swap Agreements  are bilaterally negotiated agreements between the Portfolio and a counterparty to exchange or swap investment cash flows, assets, foreign currencies or market-linked returns at specified, future intervals. Swap agreements may be privately negotiated in the over the counter market (“OTC swaps”) or may be cleared through a third party, known as a central counterparty or derivatives clearing organization (“Centrally Cleared Swaps”). The Portfolio may enter into asset, credit default, cross-currency, interest rate, total return and other forms of swap agreements to manage its exposure to credit, currency, interest rate, equity and inflation risk. In connection with these agreements, securities or cash may be identified as collateral or margin in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default or bankruptcy/insolvency.

Centrally Cleared Swaps are marked to market daily based upon valuations as determined from the underlying contract or in accordance with the requirements of the central counterparty or derivatives clearing organization. Changes in market value, if any, are reflected as a component of net change in unrealized appreciation (depreciation) on the Statement of Operations. Daily changes in valuation of centrally cleared swaps (“Swap Variation Margin”), if any, are disclosed within centrally cleared financial derivative instruments on the Statement of Assets and Liabilities. Centrally Cleared and OTC swap payments received or paid at the beginning of the measurement period are included on the Statement of Assets and Liabilities and represent premiums paid or received upon entering into the swap agreement to compensate for differences between the stated terms of the swap

30 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

agreement and prevailing market conditions (credit spreads, currency exchange rates, interest rates, and other relevant factors). Upfront premiums received (paid) are initially recorded as liabilities (assets) and subsequently marked to market to reflect the current value of the swap. These upfront premiums are recorded as realized gain (loss) on the Statement of Operations upon termination or maturity of the swap. A liquidation payment received or made at the termination of the swap is recorded as realized gain (loss) on the Statement of Operations. Net periodic payments received or paid by the Portfolio are included as part of realized gain (loss) on the Statement of Operations.

For purposes of applying certain of the Portfolio’s investment policies and restrictions, swap agreements, like other derivative instruments, may be valued by the Portfolio at market value, notional value or full exposure value. In the case of a credit default swap, in applying certain of the Portfolio’s investment policies and restrictions, the Portfolio will value the credit default swap at its notional value or its full exposure value (i.e., the sum of the notional amount for the contract plus the market value), but may value the credit default swap at market value for purposes of applying certain of the Portfolio’s other investment policies and restrictions. For example, the Portfolio may value credit default swaps at full exposure value for purposes of the Portfolio’s credit quality guidelines (if any) because such value in general better reflects the Portfolio’s actual economic exposure during the term of the credit default swap agreement. As a result, the Portfolio may, at times, have notional exposure to an asset class (before netting) that is greater or lesser than the stated limit or restriction noted in the Portfolio’s prospectus. In this context, both the notional amount and the market value may be positive or negative depending on whether the Portfolio is selling or buying protection through the credit default swap. The manner in which certain securities or other instruments are valued by the Portfolio for purposes of applying investment policies and restrictions may differ from the manner in which those investments are valued by other types of investors.

Entering into swap agreements involves, to varying degrees, elements of interest, credit, market and documentation risk in excess of the amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of contractual terms in the agreements and that there may be unfavorable changes in interest rates or the values of the asset upon which the swap is based.

The Portfolio’s maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from the counterparty over the contract’s remaining life, to the extent that amount is positive. The risk may be mitigated by having a master

netting arrangement between the Portfolio and the counterparty and by the posting of collateral to the Portfolio to cover the Portfolio’s exposure to the counterparty.

To the extent the Portfolio has a policy to limit the net amount owed to or to be received from a single counterparty under existing swap agreements, such limitation only applies to counterparties to OTC swaps and does not apply to centrally cleared swaps where the counterparty is a central counterparty or derivatives clearing organization.

Credit Default Swap Agreements  on corporate, loan, sovereign, U.S. municipal or U.S. Treasury issues are entered into to provide a measure of protection against defaults of the issuers (i.e., to reduce risk where the Portfolio owns or has exposure to the referenced obligation) or to take an active long or short position with respect to the likelihood of a particular issuer’s default. Credit default swap agreements involve one party making a stream of payments (referred to as the buyer of protection) to another party (the seller of protection) in exchange for the right to receive a specified return in the event that the referenced entity, obligation or index, as specified in the swap agreement, undergoes a certain credit event. As a seller of protection on credit default swap agreements, the Portfolio will generally receive from the buyer of protection a fixed rate of income throughout the term of the swap provided that there is no credit event. As the seller, the Portfolio would effectively add leverage to its portfolio because, in addition to its total net assets, the Portfolio would be subject to investment exposure on the notional amount of the swap.

If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. If the Portfolio is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. Recovery values are estimated by market makers considering either industry standard recovery rates or entity specific factors and considerations until a credit event occurs. If a credit event has occurred,

ANNUAL REPORT DECEMBER 31, 2018 31

Notes to Financial Statements (Cont.)

the recovery value is determined by a facilitated auction whereby a minimum number of allowable broker bids, together with a specified valuation method, are used to calculate the settlement value. The ability to deliver other obligations may result in a cheapest-to-deliver option (the buyer of protection’s right to choose the deliverable obligation with the lowest value following a credit event).

Credit default swap agreements on credit indices involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising the credit index. A credit index is a basket of credit instruments or exposures designed to be representative of some part of the credit market as a whole. These indices are made up of reference credits that are judged by a poll of dealers to be the most liquid entities in the credit default swap market based on the sector of the index. Components of the indices may include, but are not limited to, investment grade securities, high yield securities, asset-backed securities, emerging markets, and/or various credit ratings within each sector. Credit indices are traded using credit default swaps with standardized terms including a fixed spread and standard maturity dates. An index credit default swap references all the names in the index, and if there is a default, the credit event is settled based on that name’s weight in the index. The composition of the indices changes periodically, usually every six months, and for most indices, each name has an equal weight in the index. The Portfolio may use credit default swaps on credit indices to hedge a portfolio of credit default swaps or bonds, which is less expensive than it would be to buy many credit default swaps to achieve a similar effect. Credit default swaps on indices are instruments for protecting investors owning bonds against default, and traders use them to speculate on changes in credit quality.

Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate, loan, sovereign, U.S. municipal or U.S. Treasury issues as of period end, if any, are disclosed in the Notes to Schedule of Investments. They serve as an indicator of the current status of payment/performance risk and represent the likelihood or risk of default for the reference entity. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. For credit default swap agreements on asset-backed securities and credit indices, the quoted market prices and resulting values serve as the indicator of the current status of the payment/performance risk. Increasing market values, in absolute terms when

compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

The maximum potential amount of future payments (undiscounted) that the Portfolio as a seller of protection could be required to make under a credit default swap agreement equals the notional amount of the agreement. Notional amounts of each individual credit default swap agreement outstanding as of period end for which the Portfolio is the seller of protection are disclosed in the Notes to Schedule of Investments. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Portfolio for the same referenced entity or entities.

Interest Rate Swap Agreements  may be entered into to help hedge against interest rate risk exposure and to maintain the Portfolio’s ability to generate income at prevailing market rates. The value of the fixed rate bonds that the Portfolio holds may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, the Portfolio may enter into interest rate swap agreements. Interest rate swap agreements involve the exchange by the Portfolio with another party for their respective commitment to pay or receive interest on the notional amount of principal. Certain forms of interest rate swap agreements may include: (i) interest rate caps, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates exceed a specified rate, or “cap”, (ii) interest rate floors, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates fall below a specified rate, or “floor”, (iii) interest rate collars, under which a party sells a cap and purchases a floor or vice versa in an attempt to protect itself against interest rate movements exceeding given minimum or maximum levels, (iv) callable interest rate swaps, under which the buyer pays an upfront fee in consideration for the right to early terminate the swap transaction in whole, at zero cost and at a predetermined date and time prior to the maturity date, (v) spreadlocks, which allow the interest rate swap users to lock in the forward differential (or spread) between the interest rate swap rate and a specified benchmark, or (vi) basis swaps, under which two parties can exchange variable interest rates based on different segments of money markets.

7. PRINCIPAL RISKS

The principal risks of investing in the Portfolio, which could adversely affect its net asset value, yield and total return, are listed below. The principal risks of investing in the Portfolio include risks from direct

32 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

investments and/or for certain Portfolios that invest in Acquired Funds or Underlying PIMCO Funds, indirect exposure through investment in such Acquired Funds or Underlying PIMCO Funds. Please see “Description of Principal Risks” in the Portfolio’s prospectus for a more detailed description of the risks of investing in the Portfolio.

Allocation Risk  is the risk that a Portfolio could lose money as a result of less than optimal or poor asset allocation decisions. The Portfolio could miss attractive investment opportunities by underweighting markets that subsequently experience significant returns and could lose value by overweighting markets that subsequently experience significant declines.

Equity Risk  is the risk that the value of equity securities, such as common stocks and preferred securities, may decline due to general market conditions which are not specifically related to a particular company or to factors affecting a particular industry or industries. Equity securities generally have greater price volatility than fixed income securities.

Interest Rate Risk   is the risk that fixed income securities will decline in value because of an increase in interest rates; a portfolio with a longer average portfolio duration will be more sensitive to changes in interest rates than a portfolio with a shorter average portfolio duration.

Call Risk  is the risk that an issuer may exercise its right to redeem a fixed income security earlier than expected (a call). Issuers may call outstanding securities prior to their maturity for a number of reasons (e.g., declining interest rates, changes in credit spreads and improvements in the issuer’s credit quality). If an issuer calls a security that the Portfolio has invested in, the Portfolio may not recoup the full amount of its initial investment and may be forced to reinvest in lower-yielding securities, securities with greater credit risks or securities with other, less favorable features.

Credit Risk  is the risk that the Portfolio could lose money if the issuer or guarantor of a fixed income security, or the counterparty to a derivative contract, is unable or unwilling to meet its financial obligations.

High Yield Risk  is the risk that high yield securities and unrated securities of similar credit quality (commonly known as “junk bonds”) are subject to greater levels of credit, call and liquidity risks. High yield securities are considered primarily speculative with respect to the issuer’s continuing ability to make principal and interest payments, and may be more volatile than higher-rated securities of similar maturity.

Market Risk  is the risk that the value of securities owned by the Portfolio may go up or down, sometimes rapidly or unpredictably, due to factors affecting securities markets generally or particular industries.

Issuer Risk  is the risk that the value of a security may decline for a reason directly related to the issuer, such as management performance, financial leverage and reduced demand for the issuer’s goods or services.

Liquidity Risk  is the risk that a particular investment may be difficult to purchase or sell and that the Portfolio may be unable to sell illiquid securities at an advantageous time or price or achieve its desired level of exposure to a certain sector. Liquidity risk may result from the lack of an active market, reduced number and capacity of traditional market participants to make a market in fixed income securities, and may be magnified in a rising interest rate environment or other circumstances where investor redemptions from fixed income mutual funds may be higher than normal, causing increased supply in the market due to selling activity.

Derivatives Risk  is the risk of investing in derivative instruments (such as futures, swaps and structured securities), including leverage, liquidity, interest rate, market, credit and management risks, mispricing or valuation complexity. Changes in the value of the derivative may not correlate perfectly with, and may be more sensitive to market events than, the underlying asset, rate or index, and the Portfolio could lose more than the initial amount invested. The Portfolio’s use of derivatives may result in losses to the Portfolio, a reduction in the Portfolio’s returns and/or increased volatility. Over-the-counter (“OTC”) derivatives are also subject to the risk that a counterparty to the transaction will not fulfill its contractual obligations to the other party, as many of the protections afforded to centrally-cleared derivative transactions might not be available for OTC derivatives. For derivatives traded on an exchange or through a central counterparty, credit risk resides with the Portfolio’s clearing broker, or the clearinghouse itself, rather than with a counterparty in an OTC derivative transaction. Changes in regulation relating to a mutual fund’s use of derivatives and related instruments could potentially limit or impact the Portfolio’s ability to invest in derivatives, limit the Portfolio’s ability to employ certain strategies that use derivatives and/or adversely affect the value of derivatives and the Portfolio’s performance.

Mortgage-Related and Other Asset-Backed Securities Risk  is the risk of investing in mortgage-related and other asset-backed securities, including interest rate risk, extension risk, prepayment risk and credit risk.

Foreign (Non-U.S.) Investment Risk  is the risk that investing in foreign (non-U.S.) securities may result in the Portfolio experiencing more rapid and extreme changes in value than a portfolio that invests exclusively in securities of U.S. companies, due to smaller markets, differing reporting, accounting and auditing standards, increased risk of delayed settlement of portfolio transactions or loss of certificates of

ANNUAL REPORT DECEMBER 31, 2018 33

Notes to Financial Statements (Cont.)

portfolio securities, and the risk of unfavorable foreign government actions, including nationalization, expropriation or confiscatory taxation, currency blockage, or political changes or diplomatic developments. Foreign securities may also be less liquid and more difficult to value than securities of U.S. issuers.

Emerging Markets Risk  is the risk of investing in emerging market securities, primarily increased foreign (non-U.S.) investment risk.

Sovereign Debt Risk  is the risk that investments in fixed income instruments issued by sovereign entities may decline in value as a result of default or other adverse credit event resulting from an issuer’s inability or unwillingness to make principal or interest payments in a timely fashion.

Currency Risk  is the risk that foreign (non-U.S.) currencies will change in value relative to the U.S. dollar and affect the Portfolio’s investments in foreign (non-U.S.) currencies or in securities that trade in, and receive revenues in, or in derivatives that provide exposure to, foreign (non-U.S.) currencies.

Leveraging Risk  is the risk that certain transactions of the Portfolio, such as reverse repurchase agreements, loans of portfolio securities, and the use of when-issued, delayed delivery or forward commitment transactions, or derivative instruments, may give rise to leverage, magnifying gains and losses and causing the Portfolio to be more volatile than if it had not been leveraged. This means that leverage entails a heightened risk of loss.

Management Risk  is the risk that the investment techniques and risk analyses applied by PIMCO will not produce the desired results and that legislative, regulatory, or tax restrictions, policies or developments may affect the investment techniques available to PIMCO and the individual portfolio manager in connection with managing the Portfolio. There is no guarantee that the investment objective of the Portfolio will be achieved.

Short Exposure Risk  is the risk of entering into short sales, including the potential loss of more money than the actual cost of the investment, and the risk that the third party to the short sale will not fulfill its contractual obligations, causing a loss to the Portfolio.

Convertible Securities Risk  is the risk that arises when convertible securities share both fixed income and equity characteristics. Convertible securities are subject to risks to which fixed income and equity investments are subject. These risks include equity risk, interest rate risk and credit risk.

8. MASTER NETTING ARRANGEMENTS

The Portfolio may be subject to various netting arrangements (“Master Agreements”) with select counterparties. Master Agreements govern the terms of certain transactions, and are intended to reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that is intended to improve legal certainty. Each type of Master Agreement governs certain types of transactions. Different types of transactions may be traded out of different legal entities or affiliates of a particular organization, resulting in the need for multiple agreements with a single counterparty. As the Master Agreements are specific to unique operations of different asset types, they allow the Portfolio to close out and net its total exposure to a counterparty in the event of a default with respect to all the transactions governed under a single Master Agreement with a counterparty. For financial reporting purposes the Statement of Assets and Liabilities generally presents derivative assets and liabilities on a gross basis, which reflects the full risks and exposures prior to netting.

Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. Under most Master Agreements, collateral is routinely transferred if the total net exposure to certain transactions (net of existing collateral already in place) governed under the relevant Master Agreement with a counterparty in a given account exceeds a specified threshold, which typically ranges from zero to $250,000 depending on the counterparty and the type of Master Agreement. United States Treasury Bills and U.S. dollar cash are generally the preferred forms of collateral, although other securities may be used depending on the terms outlined in the applicable Master Agreement. Securities and cash pledged as collateral are reflected as assets on the Statement of Assets and Liabilities as either a component of Investments at value (securities) or Deposits with counterparty. Cash collateral received is not typically held in a segregated account and as such is reflected as a liability on the Statement of Assets and Liabilities as Deposits from counterparty. The market value of any securities received as collateral is not reflected as a component of NAV. The Portfolio’s overall exposure to counterparty risk can change substantially within a short period, as it is affected by each transaction subject to the relevant Master Agreement.

Master Repurchase Agreements and Global Master Repurchase Agreements (individually and collectively “Master Repo Agreements”) govern repurchase, reverse repurchase, and certain sale-buyback transactions between the Portfolio and select counterparties. Master Repo Agreements maintain provisions for, among other things, initiation, income payments, events of default, and maintenance of collateral. The market value of transactions under the Master Repo

34 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

Agreement, collateral pledged or received, and the net exposure by counterparty as of period end are disclosed in the Notes to Schedule of Investments.

Master Securities Forward Transaction Agreements (“Master Forward Agreements”) govern certain forward settling transactions, such as TBA securities, delayed-delivery or certain sale-buyback transactions by and between the Portfolio and select counterparties. The Master Forward Agreements maintain provisions for, among other things, transaction initiation and confirmation, payment and transfer, events of default, termination, and maintenance of collateral. The market value of forward settling transactions, collateral pledged or received, and the net exposure by counterparty as of period end is disclosed in the Notes to Schedule of Investments.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Such transactions require posting of initial margin as determined by each relevant clearing agency which is segregated in an account at a futures commission merchant (“FCM”) registered with the Commodity Futures Trading Commission (“CFTC”). In the United States, counterparty risk may be reduced as creditors of an FCM cannot have a claim to Portfolio assets in the segregated account. Portability of exposure reduces risk to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives unless the parties have agreed to a separate arrangement in respect of portfolio margining. The market value or accumulated unrealized appreciation (depreciation), initial margin posted, and any unsettled variation margin as of period end are disclosed in the Notes to Schedule of Investments.

Prime Broker Arrangements may be entered into to facilitate execution and/or clearing of listed equity option transactions or short sales of equity securities between the Portfolio and selected counterparties. The arrangements provide guidelines surrounding the rights, obligations, and other events, including, but not limited to, margin, execution, and settlement. These agreements maintain provisions for, among other things, payments, maintenance of collateral, events of default, and termination. Margin and other assets delivered as collateral are typically in the possession of the prime broker and would offset any obligations due to the prime broker. The market values of listed options and securities sold short and related collateral are disclosed in the Notes to Schedule of Investments.

International Swaps and Derivatives Association, Inc. Master Agreements and Credit Support Annexes (“ISDA Master Agreements”) govern bilateral OTC derivative transactions entered into by the Portfolio with select counterparties. ISDA Master Agreements maintain provisions for general obligations, representations, agreements,

collateral posting and events of default or termination. Events of termination include conditions that may entitle counterparties to elect to terminate early and cause settlement of all outstanding transactions under the applicable ISDA Master Agreement. Any election to terminate early could be material to the financial statements. In limited circumstances, the ISDA Master Agreement may contain additional provisions that add counterparty protection beyond coverage of existing daily exposure if the counterparty has a decline in credit quality below a predefined level. These amounts, if any, may be segregated with a third-party custodian. The market value of OTC financial derivative instruments, collateral received or pledged, and net exposure by counterparty as of period end are disclosed in the Notes to Schedule of Investments.

9. FEES AND EXPENSES

(a) Investment Advisory Fee  PIMCO is a majority-owned subsidiary of Allianz Asset Management of America L.P. (“Allianz Asset Management”) and serves as the Adviser to the Trust, pursuant to an investment advisory contract. The Adviser receives a monthly fee from the Portfolio at an annual rate based on average daily net assets (the “Investment Advisory Fee”). The Investment Advisory Fee for all classes is charged at an annual rate as noted in the table in note (b) below.

(b) Supervisory and Administrative Fee  PIMCO serves as administrator (the “Administrator”) and provides supervisory and administrative services to the Trust for which it receives a monthly supervisory and administrative fee based on each share class’s average daily net assets (the “Supervisory and Administrative Fee”). As the Administrator, PIMCO bears the costs of various third-party services, including audit, custodial, portfolio accounting, legal, transfer agency and printing costs.

The Investment Advisory Fee and Supervisory and Administrative Fees for all classes, as applicable, are charged at the annual rate as noted in the following table (calculated as a percentage of the Portfolio’s average daily net assets attributable to each class):

Investment Advisory Fee	Supervisory and Administrative Fee
All Classes	Administrative Class	Advisor Class
0.66%	0.05%	0.05%

(c) Distribution and Servicing Fees  PIMCO Investments LLC, a wholly-owned subsidiary of PIMCO, serves as the distributor (“Distributor”) of the Trust’s shares.

The Trust has adopted an Administrative Services Plan with respect to the Administrative Class shares of the Portfolio pursuant to Rule 12b-1 under the Act (the “Administrative Plan”). Under the terms of the Administrative Plan, the Trust is permitted to compensate the Distributor, out of the Administrative Class assets of the Portfolio, in an

ANNUAL REPORT DECEMBER 31, 2018 35

Notes to Financial Statements (Cont.)

amount up to 0.15% on an annual basis of the average daily net assets of that class, for providing or procuring through financial intermediaries administrative, recordkeeping and investor services for Administrative Class shareholders of the Portfolio.

The Trust has adopted a separate Distribution and Servicing Plan for the Advisor Class shares of the Portfolio (the “Distribution and Servicing Plan”). The Distribution and Servicing Plan has been adopted pursuant to Rule 12b-1 under the Act. The Distribution and Servicing Plan permits the Portfolio to compensate the Distributor for providing or procuring through financial intermediaries, distribution, administrative, recordkeeping, shareholder and/or related services with respect to Advisor Class shares. The Distribution and Servicing Plan permits the Portfolio to make total payments at an annual rate of up to 0.25% of its average daily net assets attributable to its Advisor Class shares.

	Distribution Fee		Servicing Fee
Administrative Class		—		0.15%
Advisor Class		0.25%		—

(d) Portfolio Expenses  PIMCO provides or procures supervisory and administrative services for shareholders and also bears the costs of various third-party services required by the Portfolio, including audit, custodial, portfolio accounting, legal, transfer agency and printing costs. The Trust is responsible for the following expenses: (i) taxes and governmental fees; (ii) brokerage fees and commissions and other portfolio transaction expenses; (iii) the costs of borrowing money, including interest expense; (iv) fees and expenses of the Trustees who are not “interested persons” of PIMCO or the Trust, and any counsel retained exclusively for their benefit; (v) extraordinary expense, including costs of litigation and indemnification expenses; (vi) organizational expenses; and (vii) any expenses allocated or allocable to a specific class of shares, which include service fees payable with respect to the Administrative Class Shares, and may include certain other expenses as permitted by the Trust’s Multi-Class Plan adopted pursuant to Rule 18f-3 under the Act and subject to review and approval by the Trustees. The ratio of expenses to average net assets per share class, as disclosed on the Financial Highlights, may differ from the annual portfolio operating expenses per share class.

Each Trustee, other than those affiliated with PIMCO or its affiliates, receives an annual retainer of $41,200, plus $4,250 for each Board meeting attended in person, $850 for each committee meeting attended and $750 for each Board meeting attended telephonically, plus reimbursement of related expenses. In addition, the audit committee chair receives an additional annual retainer of $8,000, the valuation oversight committee lead receives an additional annual retainer of $8,500 (to the extent there are co-leads of the valuation oversight committee, the annual retainer will be split evenly between

the co-leads, so that each co-lead individually receives an additional annual retainer of $4,250) and each other committee chair receives an additional annual retainer of $5,500. The Lead Independent Trustee receives an annual retainer of $7,000.

These expenses are allocated on a pro rata basis to each Portfolio of the Trust according to its respective net assets. The Trust pays no compensation directly to any Trustee or any other officer who is affiliated with the Administrator, all of whom receive remuneration for their services to the Trust from the Administrator or its affiliates.

(e) Expense Limitation  Pursuant to the Expense Limitation Agreement, PIMCO has agreed to waive a portion of the Portfolio’s Supervisory and Administrative Fee, or reimburse the Portfolio, to the extent that the Portfolio’s organizational expenses, pro rata share of expenses related to obtaining or maintaining a Legal Entity Identifier and pro rata share of Trustee Fees exceed 0.0049%, the “Expense Limit” (calculated as a percentage of the Portfolio’s average daily net assets attributable to each class). The Expense Limitation Agreement will automatically renew for one-year terms unless PIMCO provides written notice to the Trust at least 30 days prior to the end of the then current term.

Under certain conditions, PIMCO may be reimbursed for these waived amounts in future periods, not to exceed thirty-six months after the waiver. At December 31, 2018, there were no recoverable amounts.

(f) Acquired Fund Fees and Expenses  Acquired Fund expenses incurred by the Portfolio, if any, will vary with changes in the expenses of the Acquired Funds, as well as the allocation of the Portfolio’s assets.

The expenses associated with investing in a fund of funds are generally higher than those for mutual funds that do not invest in other mutual funds. The cost of investing in a fund of funds will generally be higher than the cost of investing in a mutual fund that invests directly in individual stocks and bonds. By investing in a fund of funds, an investor will indirectly bear fees and expenses charged by Acquired Funds in addition to the Portfolio’s direct fees and expenses. In addition, the use of a fund of funds structure could affect the timing, amount and character of distributions to the shareholders and may therefore increase the amount of taxes payable by shareholders.

PIMCO has contractually agreed, through May 1, 2019, to waive, first, the Investment Advisory Fee and, second, to the extent necessary, the Supervisory and Administrative Fee it receives from the Portfolio in an amount equal to the expenses attributable to the Management Fees of series of PIMCO Funds, PIMCO Equity Series and PIMCO ETF Trust indirectly incurred by the Portfolio in connection with its investments in series of PIMCO Funds, PIMCO Equity Series and PIMCO ETF Trust, to

36 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

the extent the Portfolio’s Investment Advisory Fee or Investment Advisory Fee and Supervisory and Administrative Fee, taken together, are greater than or equal to the Management Fees of the series of PIMCO Funds, PIMCO Equity Series and PIMCO ETF Trust. This waiver will automatically renew for one-year terms unless PIMCO provides written notice to the Trust at least 30 days prior to the end of the then current term. The waiver is reflected in the Statement of Operations as a component of Waiver and/or Reimbursement by PIMCO. For the period ended December 31, 2018, the amount was $20,176.

10. RELATED PARTY TRANSACTIONS

The Adviser, Administrator, and Distributor are related parties. Fees paid to these parties are disclosed in Note 9, Fees and Expenses, and the accrued related party fee amounts are disclosed on the Statement of Assets and Liabilities.

11. GUARANTEES AND INDEMNIFICATIONS

Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust (including the Trust’s investment manager) is indemnified, to the extent permitted by the Act, against certain liabilities that may arise out of performance of their duties to the Portfolio. Additionally, in the normal course of business, the Portfolio enters into contracts that contain a variety of indemnification clauses. The Portfolio’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Portfolio that have not yet occurred. However, the Portfolio has not had prior claims or losses pursuant to these contracts.

12. PURCHASES AND SALES OF SECURITIES

The length of time the Portfolio has held a particular security is not generally a consideration in investment decisions. A change in the securities held by the Portfolio is known as “portfolio turnover.” The Portfolio may engage in frequent and active trading of portfolio securities to achieve its investment objective, particularly during periods of volatile market movements. High portfolio turnover may involve correspondingly greater transaction costs to the Portfolio, including brokerage commissions or dealer mark-ups and other transaction costs on the sale of securities and reinvestments in other securities. Such sales may also result in realization of taxable capital gains, including short-term capital gains (which are generally taxed at ordinary income tax rates). The transaction costs and tax effects associated with portfolio turnover may adversely affect a shareholder’s performance. The portfolio turnover rates are reported in the Financial Highlights.

Purchases and sales of securities (excluding short-term investments) for the period ended December 31, 2018, were as follows (amounts in thousands^†):

U.S. Government/Agency				All Other
Purchases		Sales		Purchases		Sales
$	240,376	$	243,105	$	7,929	$	2,739

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

13. SHARES OF BENEFICIAL INTEREST

The Trust may issue an unlimited number of shares of beneficial interest with a $0.001 par value. Changes in shares of beneficial interest were as follows (shares and amounts in thousands^†):

	Year Ended 12/31/2018						Year Ended 12/31/2017
	Shares			Amount			Shares			Amount
Receipts for shares sold
Administrative Class		291		$	3,116			241		$	2,463
Advisor Class		2			13			3			38
Issued as reinvestment of distributions
Administrative Class		1,363			12,310			69			716
Advisor Class		17			160			1			9
Cost of shares redeemed
Administrative Class		(1,246	)		(13,196	)		(1,242	)		(12,606	)
Advisor Class		(31	)		(343	)		(10	)		(101	)
Net increase (decrease) resulting from Portfolio share transactions		396		$	2,060			(938	)	$	(9,481	)

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

ANNUAL REPORT DECEMBER 31, 2018 37

Notes to Financial Statements (Cont.)

As of December 31, 2018, two shareholders each owned 10% or more of the Portfolio’s total outstanding shares comprising 99% of the Portfolio, and the shareholders are a related party of the Portfolio. Related parties may include, but are not limited to, the investment adviser and its affiliates, affiliated broker dealers, fund of funds and directors or employees of the Trust or Adviser.

14. REGULATORY AND LITIGATION MATTERS

The Portfolio is not named as a defendant in any material litigation or arbitration proceedings and is not aware of any material litigation or claim pending or threatened against it.

The foregoing speaks only as of the date of this report.

15. FEDERAL INCOME TAX MATTERS

The Portfolio intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code (the “Code”) and distribute all of its taxable income and net realized gains, if applicable, to shareholders. Accordingly, no provision for Federal income taxes has been made.

The Portfolio may be subject to local withholding taxes, including those imposed on realized capital gains. Any applicable foreign capital gains

tax is accrued daily based upon net unrealized gains, and may be payable following the sale of any applicable investments.

In accordance with U.S. GAAP, the Adviser has reviewed the Portfolio’s tax positions for all open tax years. As of December 31, 2018, the Portfolio has recorded no liability for net unrecognized tax benefits relating to uncertain income tax positions it has taken or expects to take in future tax returns.

The Portfolio files U.S. federal, state, and local tax returns as required. The Portfolio’s tax returns are subject to examination by relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return but which can be extended to six years in certain circumstances. Tax returns for open years have incorporated no uncertain tax positions that require a provision for income taxes.

Shares of the Portfolio currently are sold to segregated asset accounts (“Separate Accounts”) of insurance companies that fund variable annuity contracts and variable life insurance policies (“Variable Contracts”). Please refer to the prospectus for the Separate Account and Variable Contract for information regarding Federal income tax treatment of distributions to the Separate Account.

As of December 31, 2018, the components of distributable taxable earnings are as follows (amounts in thousands^†):

	Undistributed Ordinary Income(1)		Undistributed Long-Term Capital Gains		Net Tax Basis Unrealized Appreciation/ (Depreciation)(2)			Other Book-to-Tax Accounting Differences(3)			Accumulated Capital Losses(4)			Qualified Late-Year Loss Deferral - Capital(5)		Qualified Late-Year Loss Deferral - Ordinary(6)
PIMCO Balanced Allocation Portfolio	$	560	$	0	$	(328	)	$	(3	)	$	(6,337	)	$	0	$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽¹⁾  Includes undistributed short-term capital gains, if any.

⁽²⁾  Adjusted for open wash sale loss deferrals and the accelerated recognition of unrealized gain or loss on certain futures and forward contracts for federal income tax, purposes. Also adjusted for differences between book and tax realized and unrealized gain (loss) on swap contracts, sale/buyback transactions, and straddle loss deferrals.

⁽³⁾  Represents differences in income tax regulations and financial accounting principles generally accepted in the United States of America, mainly for organizational costs.

⁽⁴⁾  Capital losses available to offset future net capital gains expire in varying amounts as shown below.

⁽⁵⁾  Capital losses realized during the period November 1, 2018 through December 31, 2018 which the Portfolio elected to defer to the following taxable year pursuant to income tax regulations.

⁽⁶⁾  Specified losses realized during the period November 1, 2018 through December 31, 2018 which the Portfolio elected to defer to the following taxable year pursuant to income tax regulations.

Under the Regulated Investment Company Modernization Act of 2010, a fund is permitted to carry forward any new capital losses for an unlimited period. Additionally, such capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term under previous law.

As of December 31, 2018, the Portfolio had the following post-effective capital losses with no expiration (amounts in thousands^†):

	Short-Term		Long-Term
PIMCO Balanced Allocation Portfolio	$	2,673	$	3,664

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

38 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

As of December 31, 2018, the aggregate cost and the net unrealized appreciation/(depreciation) of investments for federal income tax purposes are as follows (amounts in thousands^†):

	Federal Tax Cost		Unrealized Appreciation		Unrealized (Depreciation)			Net Unrealized Appreciation/ (Depreciation)(7)
PIMCO Balanced Allocation Portfolio	$	102,267	$	896	$	(1,221	)	$	(325	)

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽⁷⁾  Primary differences, if any, between book and tax net unrealized appreciation/(depreciation) on investments are attributable to open wash sale loss deferrals, unrealized gain or loss on certain futures and forward contracts, sale/buyback transactions, realized and unrealized gain (loss) swap contracts, passive foreign investment companies (PFICs), return of capital distributions from underlying funds, and straddle loss deferrals.

For the fiscal year ended December 31, 2018 and December 31, 2017, respectively, the Portfolio made the following tax basis distributions (amounts in thousands^†):

	December 31, 2018						December 31, 2017
	Ordinary Income Distributions(8)		Long-Term Capital Gain Distributions		Return of Capital(9)		Ordinary Income Distributions(8)		Long-Term Capital Gain Distributions		Return of Capital(9)
PIMCO Balanced Allocation Portfolio	$	5,530	$	6,940	$	0	$	725	$	0	$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽⁸⁾  Includes short-term capital gains distributed, if any.

⁽⁹⁾  A portion of the distributions made represents a tax return of capital. Return of capital distributions have been reclassified from undistributed net investment income to paid-in capital to more appropriately conform financial accounting to tax accounting.

ANNUAL REPORT DECEMBER 31, 2018 39

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of PIMCO Variable Insurance Trust and Shareholders of PIMCO Balanced Allocation Portfolio

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of PIMCO Balanced Allocation Portfolio (one of the portfolios constituting PIMCO Variable Insurance Trust, referred to hereafter as the “Portfolio”) as of December 31, 2018, the related statement of operations for the year ended December 31, 2018, the statement of changes in net assets for each of the two years in the period ended December 31, 2018, including the related notes, and the financial highlights for each of the five years in the period ended December 31, 2018 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Portfolio as of December 31, 2018, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended December 31, 2018 and the financial highlights for each of the five years in the period ended December 31, 2018 in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Portfolio’s management. Our responsibility is to express an opinion on the Portfolio’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Portfolio in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2018 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

Kansas City, Missouri

February 20, 2019

We have served as the auditor of one or more investment companies in PIMCO Variable Insurance Trust since 1998.

40 PIMCO VARIABLE INSURANCE TRUST

Glossary: (abbreviations that may be used in the preceding statements)

(Unaudited)

Counterparty Abbreviations:
BOA	Bank of America N.A.	GRE	RBS Securities, Inc.	MYC	Morgan Stanley Capital Services, Inc.
BRC	Barclays Bank PLC	GSC	Goldman Sachs & Co.	SCX	Standard Chartered Bank
CBK	Citibank N.A.	GST	Goldman Sachs International	SOG	Societe Generale
DUB	Deutsche Bank AG	HUS	HSBC Bank USA N.A.	SSB	State Street Bank and Trust Co.
FICC	Fixed Income Clearing Corporation	IND	Crédit Agricole Corporate and Investment Bank S.A.	TDM	TD Securities (USA) LLC
GLM	Goldman Sachs Bank USA	JPM	JP Morgan Chase Bank N.A.	UBS	UBS Securities LLC
Currency Abbreviations:
AUD	Australian Dollar	INR	Indian Rupee	RUB	Russian Ruble
COP	Colombian Peso	JPY	Japanese Yen	TRY	Turkish New Lira
EUR	Euro	KRW	South Korean Won	TWD	Taiwanese Dollar
GBP	British Pound	MXN	Mexican Peso	USD (or $)	United States Dollar
IDR	Indonesian Rupiah
Exchange Abbreviations:
OTC	Over the Counter
Index/Spread Abbreviations:
CDX.IG	Credit Derivatives Index - Investment Grade	S&P 500	Standard & Poor’s 500 Index	US0003M	3 Month USD Swap Rate
EAFE	Europe, Australasia, and Far East Stock Index
Other Abbreviations:
ABS	Asset-Backed Security	DAC	Designated Activity Company	OAT	Obligations Assimilables du Trésor
ALT	Alternate Loan Trust	LIBOR	London Interbank Offered Rate	TBA	To-Be-Announced
CLO	Collateralized Loan Obligation	MSCI	Morgan Stanley Capital International

ANNUAL REPORT DECEMBER 31, 2018 41

Federal Income Tax Information

(Unaudited)

As required by the Internal Revenue Code (the "Code") and Treasury Regulations, if applicable, shareholders must be notified regarding the status of qualified dividend income and the dividend received deduction.

Dividend Received Deduction.  Corporate shareholders are generally entitled to take the dividend received deduction on the portion of a Fund's dividend distribution that qualifies under tax law. The percentage of the following Portfolio's fiscal 2018 ordinary income dividend that qualifies for the corporate dividend received deduction is set forth in the table below.

Qualified Dividend Income.  Under the Jobs and Growth Tax Relief Reconciliation Act of 2003 (the "Act"), the percentage of ordinary dividends paid during the calendar year designated as "qualified dividend income", as defined in the Act, subject to reduced tax rates in 2018 is set forth for the Portfolio in the table below.

Qualified Interest Income and Qualified Short-Term Capital Gain (for non-U.S. resident shareholders only).  Under the American Jobs Creation Act of 2004, the amounts of ordinary dividends paid during the fiscal year ended December 31, 2018 considered to be derived from “qualified interest income,” as defined in Section 871(k)(1)(E) of the Code, and therefore designated as interest-related dividends, as defined in Section 871(k)(1)(C) of the Code are set forth in the table below. Further, the amounts of ordinary dividends paid during the fiscal year ended December 31, 2018 considered to be derived from “qualified short-term capital gain,” as defined in Section 871(k)(2)(D) of the Code, and therefore designated as qualified short-term gain dividends, as defined by Section 871(k)(2)(C) of the Code are also set forth in the table below.

	Dividend Received Deduction %		Qualified Dividend Income %		Qualified Interest Income (000s† )		Qualified Short-Term Capital Gain (000s†)
PIMCO Balanced Allocation Portfolio		0.00%		0.00%	$	1,250	$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

Shareholders are advised to consult their own tax advisor with respect to the tax consequences of their investment in the Trust. In January 2019, you will be advised on IRS Form 1099-DIV as to the federal tax status of the dividends and distributions received by you in calendar year 2018.

42 PIMCO VARIABLE INSURANCE TRUST

Management of the Trust

(Unaudited)

The charts below identify the Trustees and executive officers of the Trust. Unless otherwise indicated, the address of all persons below is 650 Newport Center Drive, Newport Beach, CA 92660.

The Portfolio’s Statement of Additional Information includes more information about the Trustees and Officers. To request a free copy, call PIMCO at (888) 87-PIMCO or visit the Portfolio’s website at www.pimco.com/pvit.

Name, Year of Birth and Position Held with Trust*	Term of Office and Length of Time Served†	Principal Occupation(s) During Past 5 Years	Number of Funds in Fund Complex Overseen by Trustee	Other Public Company and Investment Company Directorships Held by Trustee During the Past 5 Years
Interested Trustees1
Peter G. Strelow** (1970) Chairman of the Board and Trustee	05/2017 to present Chairman of the Board - 02/2019 to present	Managing Director and Co-Chief Operating Officer, PIMCO. President of the Trust, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Chief Administrative Officer, PIMCO.	153	Chairman and Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT.
Brent R. Harris** (1959) Trustee	08/1997 to present	Managing Director, PIMCO. Senior Vice President of the Trust, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Formerly, member of Executive Committee, PIMCO.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT; Director, StocksPLUS® Management, Inc; and member of Board of Governors, Investment Company Institute. Formerly, Chairman, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT.
Independent Trustees
George E. Borst (1948) Trustee	04/2015 to present	Executive Advisor, McKinsey & Company (since 10/14); Formerly, Executive Advisor, Toyota Financial Services (10/13-12/14); and CEO, Toyota Financial Services (1/01-9/13).	132	Trustee, PIMCO Funds and PIMCO ETF Trust; Director, MarineMax Inc.
Jennifer Holden Dunbar (1963) Trustee	04/2015 to present	Managing Director, Dunbar Partners, LLC (business consulting and investments). Formerly, Partner, Leonard Green & Partners, L.P.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT; Director, PS Business Parks; Director, Big 5 Sporting Goods Corporation.
Kym M. Hubbard (1957) Trustee	02/2017 to present	Formerly, Global Head of Investments, Chief Investment Officer and Treasurer, Ernst & Young.	132	Trustee, PIMCO Funds and PIMCO ETF Trust; Director, State Auto Financial Corporation.
Gary F. Kennedy (1955) Trustee	04/2015 to present	Formerly, Senior Vice President, General Counsel and Chief Compliance Officer, American Airlines and AMR Corporation (now American Airlines Group) (1/03-1/14).	132	Trustee, PIMCO Funds and PIMCO ETF Trust.
Peter B. McCarthy (1950) Trustee	04/2015 to present	Formerly, Assistant Secretary and Chief Financial Officer, United States Department of Treasury; Deputy Managing Director, Institute of International Finance.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Ronald C. Parker (1951) Lead Independent Trustee	07/2009 to present Lead Independent Trustee - 02/2017 to present	Director of Roseburg Forest Products Company. Formerly, Chairman of the Board, The Ford Family Foundation; and President, Chief Executive Officer, Hampton Affiliates (forestry products).	153	Lead Independent Trustee, PIMCO Funds and PIMCO ETF Trust; Trustee, PIMCO Equity Series and PIMCO Equity Series VIT.

* Unless otherwise noted, the information for the individuals listed is as of December 31, 2018.

** Effective February 13, 2019, Mr. Strelow became the Chairman of the Trust.

¹  Mr. Harris and Mr. Strelow are “interested persons” of the Trust (as that term is defined in the 1940 Act) because of their affiliations with PIMCO.

^†  Trustees serve until their successors are duly elected and qualified.

ANNUAL REPORT DECEMBER 31, 2018 43

Management of the Trust (Cont.)

(Unaudited)

Executive Officers

Name, Year of Birth and Position Held with Trust	Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years*
Peter G. Strelow (1970) President	01/2015 to present	Managing Director and Co-Chief Operating Officer, PIMCO. President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Chief Administrative Officer, PIMCO.
Joshua D. Ratner (1976)** Chief Legal Officer	11/2018 to present Vice President - Senior Counsel and Secretary 11/2013 to 11/2018 Assistant Secretary 10/2007 to 01/2011	Executive Vice President and Deputy General Counsel, PIMCO. Chief Legal Officer, PIMCO Investments LLC. Chief Legal Officer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Jennifer E. Durham (1970) Chief Compliance Officer	07/2004 to present	Managing Director and Chief Compliance Officer, PIMCO. Chief Compliance Officer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Brent R. Harris (1959) Senior Vice President	01/2015 to present President 03/2009 to 01/2015	Managing Director, PIMCO. Senior Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Formerly, member of Executive Committee, PIMCO.
Ryan G. Leshaw (1980) Vice President, Senior Counsel and Secretary	11/2018 to present Assistant Secretary 05/2012 to 11/2018	Senior Vice President and Senior Counsel, PIMCO. Vice President, Senior Counsel and Secretary, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Assistant Secretary, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Associate, Willkie Farr & Gallagher LLP.
Wu-Kwan Kit (1981) Assistant Secretary	08/2017 to present	Senior Vice President and Senior Counsel, PIMCO. Assistant Secretary, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Vice President, Senior Counsel and Secretary, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Assistant General Counsel, VanEck Associates Corp.
Stacie D. Anctil (1969) Vice President	05/2015 to present Assistant Treasurer 11/2003 to 05/2015	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
William G. Galipeau (1974) Vice President	11/2013 to present	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Eric D. Johnson (1970) Vice President	05/2011 to present	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Henrik P. Larsen (1970) Vice President	02/1999 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Bijal Y. Parikh (1978) Vice President	02/2017 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Greggory S. Wolf (1970) Vice President	05/2011 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Trent W. Walker (1974) Treasurer	11/2013 to present	Executive Vice President, PIMCO. Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Erik C. Brown (1967)** Assistant Treasurer	02/2001 to present	Executive Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Colleen D. Miller (1980)** Assistant Treasurer	02/2017 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Christopher M. Morin (1980) Assistant Treasurer	08/2016 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Jason J. Nagler (1982)** Assistant Treasurer	05/2015 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.

* The term “PIMCO-Sponsored Closed-End Funds” as used herein includes: PIMCO California Municipal Income Fund, PIMCO California Municipal Income Fund II, PIMCO California Municipal Income Fund III, PIMCO Municipal Income Fund, PIMCO Municipal Income Fund II, PIMCO Municipal Income Fund III, PIMCO New York Municipal Income Fund, PIMCO New York Municipal Income Fund II, PIMCO New York Municipal Income Fund III, PCM Fund Inc., PIMCO Corporate & Income Opportunity Fund, PIMCO Corporate & Income Strategy Fund, PIMCO Dynamic Credit and Mortgage Income Fund, PIMCO Dynamic Income Fund, PIMCO Global StocksPLUS^® & Income Fund, PIMCO High Income Fund, PIMCO Income Opportunity Fund, PIMCO Income Strategy Fund, PIMCO Income Strategy Fund II and PIMCO Strategic Income Fund, Inc.; the term “PIMCO-Sponsored Interval Funds” as used herein includes: PIMCO Flexible Credit Income Fund and PIMCO Flexible Municipal Income Fund.

** The address of these officers is Pacific Investment Management Company LLC, 1633 Broadway, New York, New York 10019.

44 PIMCO VARIABLE INSURANCE TRUST

Privacy Policy¹

(Unaudited)

The Trust^2,3 considers customer privacy to be a fundamental aspect of its relationships with shareholders and is committed to maintaining the confidentiality, integrity and security of its current, prospective and former shareholders’ non-public personal information. The Trust has developed policies that are designed to protect this confidentiality, while allowing shareholder needs to be served.

OBTAINING PERSONAL INFORMATION

In the course of providing shareholders with products and services, the Trust and certain service providers to the Trust, such as the Trust’s investment advisers or sub-advisers (“Advisers”), may obtain non-public personal information about shareholders, which may come from sources such as account applications and other forms, from other written, electronic or verbal correspondence, from shareholder transactions, from a shareholder’s brokerage or financial advisory firm, financial advisor or consultant, and/or from information captured on applicable websites.

RESPECTING YOUR PRIVACY

As a matter of policy, the Trust does not disclose any non-public personal information provided by shareholders or gathered by the Trust to non-affiliated third parties, except as required or permitted by law or as necessary for such third parties to perform their agreements with respect to the Trust. As is common in the industry, non-affiliated companies may from time to time be used to provide certain services, such as preparing and mailing prospectuses, reports, account statements and other information, conducting research on shareholder satisfaction and gathering shareholder proxies. The Trust or its affiliates may also retain non-affiliated companies to market the Trust’s shares or products which use the Trust’s shares and enter into joint marketing arrangements with them and other companies. These companies may have access to a shareholder’s personal and account information, but are permitted to use this information solely to provide the specific service or as otherwise permitted by law. In most cases, the shareholders will be clients of a third party, but the Trust may also provide a shareholder’s personal and account information to the shareholder’s respective brokerage or financial advisory firm and/or financial advisor or consultant.

SHARING INFORMATION WITH THIRD PARTIES

The Trust reserves the right to disclose or report personal or account information to non-affiliated third parties in limited circumstances where the Trust believes in good faith that disclosure is required under law, to cooperate with regulators or law enforcement authorities, to protect its rights or property, or upon reasonable request by any fund advised by PIMCO in which a shareholder has invested. In addition, the Trust may disclose information about a shareholder or a shareholder’s accounts to a non-affiliated third party at the shareholder’s request or with the consent of the shareholder.

SHARING INFORMATION WITH AFFILIATES

The Trust may share shareholder information with its affiliates in connection with servicing shareholders’ accounts, and subject to applicable law may provide shareholders with information about products and services that the Trust or its Advisers, distributors or their affiliates (“Service Affiliates”) believe may be of interest to such shareholders. The information that the Trust may share may include,

for example, a shareholder’s participation in the Trust or in other investment programs sponsored by a Service Affiliate, a shareholder’s ownership of certain types of accounts (such as IRAs), information about the Trust’s experiences or transactions with a shareholder, information captured on applicable websites, or other data about a shareholder’s accounts, subject to applicable law. The Trust’s Service Affiliates, in turn, are not permitted to share shareholder information with non-affiliated entities, except as required or permitted by law.

PROCEDURES TO SAFEGUARD PRIVATE INFORMATION

The Trust takes seriously the obligation to safeguard shareholder non-public personal information. In addition to this policy, the Trust has implemented procedures that are designed to restrict access to a shareholder’s non-public personal information to internal personnel who need to know that information to perform their jobs, such as servicing shareholder accounts or notifying shareholders of new products or services. Physical, electronic and procedural safeguards are in place to guard a shareholder’s non-public personal information.

INFORMATION COLLECTED FROM WEBSITES

Websites maintained by the Trust or its service providers may use a variety of technologies to collect information that help the Trust and its service providers understand how the website is used. Information collected from your web browser (including small files stored on your device that are commonly referred to as “cookies”) allow the websites to recognize your web browser and help to personalize and improve your user experience and enhance navigation of the website. In addition, the Trust or its Service Affiliates may use third parties to place advertisements for the Trust on other websites, including banner advertisements. Such third parties may collect anonymous information through the use of cookies or action tags (such as web beacons). The information these third parties collect is generally limited to technical and web navigation information, such as your IP address, web pages visited and browser type, and does not include personally identifiable information such as name, address, phone number or email address. If you are a registered user of the Trust’s website, the Trust or their service providers or third party firms engaged by the Trust or their service providers may collect or share information submitted by you, which may include personally identifiable information. This information can be useful to the Trust when assessing and offering services and website features. You can change your cookie preferences by changing the setting on your web browser to delete or reject cookies. If you delete or reject cookies, some website pages may not function properly. The Trust does not look for web browser “do not track” requests.

CHANGES TO THE PRIVACY POLICY

From time to time, the Trust may update or revise this privacy policy. If there are changes to the terms of this privacy policy, documents containing the revised policy on the relevant website will be updated.

¹ Amended as of February 15, 2017.

² PIMCO Investments LLC (“PI”) serves as the Trust’s distributor. This Privacy Policy applies to the activities of PI to the extent that PI regularly effects or engages in transactions with or for a Trust shareholder who is the record owner of such shares. For purposes of this Privacy Policy, references to “the Trust” shall include PI when acting in this capacity.

³ When distributing this Policy, the Trust may combine the distribution with any similar distribution of its investment adviser’s privacy policy. The distributed, combined policy may be written in the first person (i.e., by using “we” instead of “the Trust”).

ANNUAL REPORT DECEMBER 31, 2018 45

Approval of Investment Advisory Contract and Other Agreements

Approval of Renewal of the Amended and Restated Investment Advisory Contract, Supervision and Administration Agreement and Amended and Restated Asset Allocation Sub-Advisory Agreement

At a meeting held on August 20-21, 2018, the Board of Trustees (the “Board”) of PIMCO Variable Insurance Trust (the “Trust”), including the Trustees who are not “interested persons” of the Trust under the Investment Company Act of 1940, as amended (the “Independent Trustees”), considered and unanimously approved the renewal of the Amended and Restated Investment Advisory Contract (the “Investment Advisory Contract”) between the Trust, on behalf of each of the Trust’s series (the “Portfolios”), and Pacific Investment Management Company LLC (“PIMCO”) for an additional one-year term through August 31, 2019. The Board also considered and unanimously approved the renewal of the Supervision and Administration Agreement (together with the Investment Advisory Contract, the “Agreements”) between the Trust, on behalf of the Portfolios, and PIMCO for an additional one-year term through August 31, 2019. In addition, the Board considered and unanimously approved the renewal of the Amended and Restated Asset Allocation Sub-Advisory Agreement (the “Asset Allocation Agreement”) between PIMCO, on behalf of PIMCO All Asset Portfolio and PIMCO All Asset All Authority Portfolio, each a series of the Trust, and Research Affiliates, LLC (“Research Affiliates”) for an additional one-year term through August 31, 2019.

The information, material factors and conclusions that formed the basis for the Board’s approvals are summarized below.

1. INFORMATION RECEIVED

(a) Materials Reviewed:  During the course of the past year, the Trustees received a wide variety of materials relating to the services provided by PIMCO and Research Affiliates to the Trust. At each of its quarterly meetings, the Board reviewed the Portfolios’ investment performance and a significant amount of information relating to Portfolio operations, including shareholder services, valuation and custody, the Portfolios’ compliance program and other information relating to the nature, extent and quality of services provided by PIMCO and Research Affiliates to the Trust and each of the Portfolios, as applicable. In considering whether to approve the renewal of the Agreements and the Asset Allocation Agreement, the Board reviewed additional information, including, but not limited to, comparative industry data with regard to investment performance, advisory and supervisory and administrative fees and expenses, financial information for PIMCO and, where relevant, Research Affiliates, information regarding the profitability to PIMCO of its relationship with the Portfolios, information about the personnel providing investment management services, other advisory services and supervisory and administrative services to the Portfolios, and information about the fees

charged and services provided to other clients with similar investment mandates as the Portfolios, where applicable. In addition, the Board reviewed materials provided by counsel to the Trust and the Independent Trustees, which included, among other things, memoranda outlining legal duties of the Board in considering the renewal of the Agreements and the Asset Allocation Agreement.

(b) Review Process:  In connection with considering the renewal of the Agreements and the Asset Allocation Agreement, the Board reviewed written materials prepared by PIMCO and, where applicable, Research Affiliates in response to requests from counsel to the Trust and the Independent Trustees encompassing a wide variety of topics. The Board requested and received assistance and advice regarding, among other things, applicable legal standards from counsel to the Trust and the Independent Trustees, and reviewed comparative fee and performance data prepared at the Board’s request by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company performance information and fee and expense data. The Board received information on matters related to the Agreements and the Asset Allocation Agreement and met both as a full Board and in a separate session of the Independent Trustees, without management present, at the August 20-21, 2018 meeting. The Independent Trustees also conducted in-person meetings with counsel to the Trust and the Independent Trustees, including one on July 18, 2018, to discuss the Lipper Report, as defined below, and certain aspects of the 2018 15(c) materials presented and other matters deemed relevant to their consideration of the renewal of the Agreements and the Asset Allocation Agreement. In connection with its review of the Agreements, the Board received comparative information on the performance and the fees and expenses of other peer group funds and share classes. In addition, the Independent Trustees requested and received supplemental information.

The approval determinations were made on the basis of each Trustee’s business judgment after consideration and evaluation of all the information presented. Individual Trustees may have given different weights to certain factors and assigned various degrees of materiality to information received in connection with the approval process. In deciding to approve the renewal of the Agreements and the Asset Allocation Agreement, the Board did not identify any single factor or particular information that, in isolation, was controlling. The discussion below is intended to summarize the broad factors and information that figured prominently in the Board’s consideration of the renewal of the Agreements and the Asset Allocation Agreement, but is not intended to summarize all of the factors considered by the Board.

2. NATURE, EXTENT AND QUALITY OF SERVICES

(a) PIMCO, Research Affiliates, their Personnel, and Resources:  The Board considered the depth and quality of PIMCO’s investment management process, including: the experience, capability and integrity

46 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

of its senior management and other personnel; the overall financial strength and stability of its organization; and the ability of its organizational structure to address changes in the Portfolios’ asset levels. The Board also considered the various services in addition to portfolio management that PIMCO provides under the Investment Advisory Contract. The Board noted that PIMCO makes available to its investment professionals a variety of resources and systems relating to investment management, compliance, trading, performance and portfolio accounting. The Board also noted PIMCO’s commitment to enhancing and investing in its global infrastructure, technology capabilities, risk management processes and the specialized talent needed to stay at the forefront of the competitive investment management industry and to strengthen its ability to deliver services under the Agreements. The Board considered PIMCO’s policies, procedures and systems reasonably designed to assure compliance with applicable laws and regulations and its commitment to further developing and strengthening these programs, its oversight of matters that may involve conflicts of interest between the Portfolios’ investments and those of other accounts managed by PIMCO, and its efforts to keep the Trustees informed about matters relevant to the Portfolios and their shareholders. The Board also considered PIMCO’s continuous investment in new disciplines and talented personnel, which has enhanced PIMCO’s services to the Portfolios and has allowed PIMCO to introduce innovative new portfolios over time. In addition, the Board considered the nature and quality of services provided by PIMCO to the wholly-owned subsidiaries of certain applicable Portfolios.

The Trustees considered that PIMCO has continued to strengthen the process it uses to actively manage counterparty risk and to assess the financial stability of counterparties with which the Portfolios do business, to manage collateral and to protect Portfolios from an unforeseen deterioration in the creditworthiness of trading counterparties. The Trustees noted that, consistent with its fiduciary duty, PIMCO executes transactions through a competitive best execution process and uses only those counterparties that meet its stringent and monitored criteria. The Trustees considered that PIMCO’s collateral management team utilizes a counterparty risk system to analyze portfolio level exposure and collateral being exchanged with counterparties.

In addition, the Trustees considered new services and service enhancements that PIMCO has implemented since the Board renewed the Agreements in 2017, including, but not limited to upgrading the global network and infrastructure to support trading and risk management systems; enhancing and continuing to expand capabilities within the pre-trade compliance platform; enhancing flexible client reporting capabilities to support increased differentiation within local markets; developing new application and database frameworks to support new trading strategies; expanding proprietary applications

suites to enrich capabilities across Compliance, Analytics, Risk Management, Client Reporting, Attribution and Customer Relationship management; continuing investment in its enterprise risk management function, including PIMCO’s cybersecurity program and global business continuity functions; oversight by the Americas Fund Oversight Committee, which provides senior-level oversight and supervision focused on new and ongoing fund-related business opportunities; engaging a third party service provider to implement the SEC reporting modernization regime; expanding the Fund Treasurer’s Office; enhancing a proprietary application to provide portfolio managers with more timely and high quality income reporting; developing a global tax management application that will enable investment professionals to access foreign market and security tax information on a real-time basis; enhancing reporting of tax reporting for portfolio managers for income products with improved transparency on tax factors impacting income generation and dividend yield; upgrading a proprietary application to allow shareholder subscription and redemption data to pass to portfolio managers more quickly and efficiently; and continuing to expand the pricing portal and the proprietary performance reconciliation tool.

Similarly, the Board considered the asset allocation services provided by Research Affiliates to the PIMCO All Asset Portfolio and PIMCO All Asset All Authority Portfolio. The Board further considered PIMCO’s oversight of Research Affiliates in connection with Research Affiliates providing asset allocation services to the Asset Portfolio and All Asset All Authority Portfolio. The Board also considered the depth and quality of Research Affiliates’ investment management and research capabilities, the experience and capabilities of its portfolio management personnel and the overall financial strength of the organization.

Ultimately, the Board concluded that the nature, extent and quality of services provided or procured by PIMCO under the Agreements and provided by Research Affiliates under the Asset Allocation Agreement are likely to continue to benefit the Portfolios and their respective shareholders, as applicable.

(b) Other Services:  The Board also considered the nature, extent and quality of supervisory and administrative services provided by PIMCO to the Portfolios under the Supervision and Administration Agreement.

The Board considered the terms of the Supervision and Administration Agreement, under which the Trust pays for the supervisory and administrative services provided pursuant to that agreement under what is essentially an all-in fee structure (the “unified fee”). In return, PIMCO provides or procures certain supervisory and administrative services and bears the costs of various third party services required by the Portfolios, including audit, custodial, portfolio accounting, legal, transfer agency, sub-accounting and printing costs. The Board noted that the scope and complexity, as well as the costs, of the supervisory

ANNUAL REPORT DECEMBER 31, 2018 47

Approval of Investment Advisory Contract and Other Agreements (Cont.)

and administrative services provided by PIMCO under the Supervision and Administration Agreement continue to increase. The Board considered PIMCO’s provision of supervisory and administrative services and its supervision of the Trust’s third party service providers to assure that these service providers continue to provide a high level of service relative to alternatives available in the market.

Ultimately, the Board concluded that the nature, extent and quality of the services provided by PIMCO has benefited, and will likely continue to benefit, the Portfolios and their shareholders.

3. INVESTMENT PERFORMANCE

The Board reviewed information from PIMCO concerning the Portfolios’ performance, as available, over short- and long-term periods ended March 31, 2018 and other performance data, as available, over short- and long-term periods ended June 30, 2018 (the “PIMCO Report”) and from Broadridge concerning the Portfolios’ performance, as available, over short- and long-term periods ended March 31, 2018 (the “Lipper Report”).

The Board considered information regarding both the short- and long-term investment performance of each Portfolio relative to its peer group and relevant benchmark index as provided to the Board in advance of each of its quarterly meetings throughout the year, including the PIMCO Report and Lipper Report, which were provided in advance of the August 20-21, 2018 meeting. The Trustees noted that many of the Portfolios outperformed their respective Lipper medians on a net-of-fees basis over the three-, five- and ten-year periods ended March 31, 2018. The Board also noted that, as of March 31, 2018, the Administrative Class of 72%, 35% and 73% of the Portfolios outperformed their respective Lipper category median on a net-of-fees basis over the three-, five- and ten-year periods, respectively. The Trustees considered that other classes of each Portfolio would have substantially similar performance to that of the Administrative Class of the relevant Portfolio on a relative basis because all of the classes are invested in the same portfolio of investments and that differences in performance among classes could principally be attributed to differences in the supervisory and administrative fees and distribution and servicing expenses of each class. The Board also considered that the investment objectives of certain of the Portfolios may not always be identical to those of the other funds in their respective peer groups and that the Lipper categories do not: separate funds based upon maturity or duration; account for the applicable Portfolios’ hedging strategies; distinguish between enhanced index and actively managed equity strategies; include as many subsets as the Portfolios offer (i.e., Portfolios may be placed in a “catch-all” Lipper category to which they do not properly belong); or account for certain fee waivers. The Board noted that, due to these differences, performance comparisons between certain of the Portfolios and their so-called peers may not be

particularly relevant to the consideration of Portfolio performance but found the comparative information supported its overall evaluation.

The Board noted that performance for a majority of the Portfolios has been mixed compared to their respective benchmark indexes over the five-year period ended March 31, 2018. The Board noted that, as of March 31, 2018, 70%, 23% and 92% of the Trust’s assets (based on Administrative Class performance) outperformed their respective benchmarks on a net-of-fees basis over the three-, five- and ten-year periods, respectively. The Board also discussed actions that have been taken by PIMCO to attempt to improve performance and took note of PIMCO’s plans to monitor performance going forward.

The Board considered PIMCO’s discussion of the intensive nature of managing bond funds, noting that it requires the management of a number of factors, including: varying maturities; prepayments; collateral management; counterparty management; pay-downs; credit and corporate events; workouts; derivatives; net new issuance in the bond market; and decreased market maker inventory levels. The Board noted that in addition to managing these factors, PIMCO must also balance risk controls and strategic positions in each portfolio it manages, including the Portfolios. Despite these challenges, the Board noted PIMCO’s ability to generate non-market correlated excess performance for its clients over time, including the Trust.

The Board ultimately concluded, within the context of all of its considerations in connection with the Agreements, that PIMCO’s performance record and process in managing the Portfolios indicates that its continued management is likely to benefit the Portfolios and their shareholders, and merits the approval of the renewal of the Agreements.

4. ADVISORY FEES, SUPERVISORY AND ADMINISTRATIVE FEES AND TOTAL EXPENSES

The Board considered that PIMCO seeks to price new funds and classes to scale. PIMCO reported to the Board that, in proposing fees for any Portfolio or class of shares, it considers a number of factors, including, but not limited to, the type and complexity of the services provided, the cost of providing services, the risk assumed by PIMCO in the development of products and the provision of services and the competitive marketplace for financial products. Fees charged to or proposed for different Portfolios for advisory services and supervisory and administrative services may vary in light of these various factors. The Board considered that portfolio pricing generally is not driven by comparison to passively-managed products.

In addition, PIMCO reported to the Board that it periodically reviews the fees charged to the Portfolios. The Board noted that, based upon this review, PIMCO may propose advisory fee or supervisory and administrative fee changes where (i) a Portfolio’s long-term performance warrants additional consideration; (ii) there is a notable aid to market

48 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

position; (iii) a Portfolio’s fee does not reflect the current level of supervision or administrative fees provided to the Portfolio; or (iv) PIMCO would like to change a Portfolio’s overall strategic positioning.

The Board reviewed the advisory fees, supervisory and administrative fees and total expenses of the Portfolios (each as a percentage of average net assets) and compared such amounts with the average and median fee and expense levels of other similar funds. The Board also reviewed information relating to the sub-advisory fees paid to Research Affiliates with respect to applicable Portfolios, taking into account that PIMCO compensates Research Affiliates from the advisory fees paid by such Portfolios to PIMCO. With respect to advisory fees, the Board reviewed data from Broadridge that compared the average and median advisory fees of other funds in a “Peer Group” of comparable funds, as well as the universe of other similar funds. The Board noted that a number of Portfolios have total expense ratios that fall below the average and median expense ratios in their Peer Group and Lipper universe. In addition, the Board considered fee waivers in place for certain of the Portfolios and also noted the fee waivers in place with respect to the advisory fee and supervisory and administrative fee that might result from investments by applicable Portfolios in their respective wholly-owned subsidiaries. The Board also considered that PIMCO reviews the Portfolios’ fee levels and carefully considers changes where appropriate.

The Board also reviewed data comparing the Portfolios’ advisory fees to the standard and negotiated fee rates PIMCO charges to separate accounts, collective investment trusts and sub-advised clients with similar investment strategies. In cases where the fees for other clients were lower than those charged to the Portfolios, the Trustees noted that the differences in fees were attributable to various factors, including, but not limited to, differences in the advisory and other services provided by PIMCO to the Portfolios, differences in the number or extent of the services provided by PIMCO to the Portfolios, the manner in which similar portfolios may be managed, different requirements with respect to liquidity management and the implementation of other regulatory requirements, and the fact that separate accounts may have other contractual arrangements or arrangements across PIMCO strategies that justify different levels of fees. The Board considered that, with respect to collective investment trusts, PIMCO performs fewer or less extensive services because collective investment trusts are generally exempt from SEC regulation; investors in a collective investment trust may receive shareholder services from a trustee bank, rather than PIMCO; collective investment trusts have less regulatory disclosure; and the management structure of collective investment trusts differs from that of funds. The Trustees also considered that PIMCO faces increased entrepreneurial, legal and regulatory risk in sponsoring and managing mutual funds and ETFs as compared to separate accounts, external sub-advised funds or other investment products.

Regarding advisory fees charged by PIMCO in its capacity as sub-adviser to third party/unaffiliated funds, the Trustees took into account that such fees may be lower than the fees charged by PIMCO to serve as adviser to the Portfolios. The Trustees also took into account that there are various reasons for any such differences in fees, including, but not limited to, the fact that PIMCO may be subject to varying levels of entrepreneurial risk and regulatory requirements, differing legal liabilities on a contract-by-contract basis and different servicing requirements when PIMCO does not serve as the sponsor of a fund and is not principally responsible for all aspects of a fund’s investment program and operations as compared to when PIMCO serves as investment adviser and sponsor.

The Board considered the Portfolios’ supervisory and administrative fees, comparing them to similar funds in the report supplied by Broadridge. The Board also considered that as the Portfolios’ business has become increasingly complex and the number of Portfolios has grown over time, PIMCO has provided an increasingly broad array of fund supervisory and administrative functions. In addition, the Board considered the Trust’s unified fee structure, under which the Trust pays for the supervisory and administrative services it requires for one set fee. In return for this unified fee, PIMCO provides or procures supervisory and administrative services and bears the costs of various third party services required by the Portfolios, including audit, custodial, portfolio accounting, legal, transfer agency, sub-accounting and printing costs. The Board further considered that many other funds pay for comparable services separately, and thus it is difficult to directly compare the Trust’s unified supervisory and administrative fees with the fees paid by other funds for administrative services alone. The Board also considered that the unified supervisory and administrative fee leads to Portfolio fees that are fixed over the contract period, rather than variable. The Board noted that, although the unified fee structure does not have breakpoints, it implicitly reflects economies of scale by fixing the absolute level of Portfolio fees at competitive levels over the contract period even if the Portfolios’ operating costs rise when assets remain flat or decrease. Other factors the Board considered in assessing the unified fee include PIMCO’s approach of pricing Portfolios to scale at inception and reinvesting in other important areas of the business that support the Portfolios. The Board considered that the Portfolios’ unified fee structure meant that fees were not impacted by recent outflows in certain Portfolios, unlike funds without a unified fee structure, which may see increased expense ratios when fixed costs, such as service provider costs, are passed through to a smaller asset base. The Board considered historical advisory and supervisory and administrative fee reductions implemented for different Portfolios and classes, noting that the unified fee can be increased or decreased in subsequent contractual periods and is subject to the periodic reviews discussed above. The Board noted that, with few exceptions, PIMCO

ANNUAL REPORT DECEMBER 31, 2018 49

Approval of Investment Advisory Contract and Other Agreements (Cont.)

has generally maintained Portfolio fees at the same level as implemented when the unified fee was adopted, and has reduced fees for a number of Portfolios in prior years. The Board concluded that the Portfolios’ supervisory and administrative fees were reasonable in relation to the value of the services provided, including the services provided to different classes of shareholders, and that the expenses assumed contractually by PIMCO under the Supervision and Administration Agreement represent, in effect, a cap on overall Portfolio fees during the contractual period, which is beneficial to the Portfolios and their shareholders.

The Board considered the Portfolios’ total expenses and discussed with PIMCO those Portfolios and/or classes of Portfolios that had above median total expenses. The Board noted that many of the Portfolios are unique products that have few peers, if any, and cannot easily be grouped with comparable funds. Upon comparing the Portfolios’ total expenses to other funds in the “Peer Groups” provided by Broadridge, the Board found total expenses of each Portfolio to be reasonable.

The Trustees also considered the advisory fees charged to the Portfolios that operate as funds of funds (the “Funds of Funds”) and the advisory services provided in exchange for such fees. The Trustees determined that such services were in addition to the advisory services provided to the underlying funds in which the Funds of Funds may invest and, therefore, such services were not duplicative of the advisory services provided to the underlying funds. The Board also considered the various fee waiver agreements in place for the Funds of Funds. The Board noted that PIMCO is continuing waivers for these Funds of Funds, as well as for certain other Portfolios of the Trust.

Based on the information presented by PIMCO, Research Affiliates and Broadridge, members of the Board determined, in the exercise of their business judgment, that the level of the advisory fees and supervisory and administrative fees charged by PIMCO under the Agreements, as well as the total expenses of each Portfolio, after the proposals to decrease the management fee, are reasonable.

5. ADVISER COSTS, LEVEL OF PROFITS AND ECONOMIES OF SCALE

The Board reviewed information regarding PIMCO’s costs of providing services to the Funds as a whole, as well as the resulting level of profits to PIMCO under both the adjusted asset profitability method and the profit and loss profitability method, which were each utilized to calculate profitability. To the extent applicable, the Board also reviewed information regarding the portion of a Portfolio’s advisory fee retained by PIMCO, following the payment of sub-advisory fees to Research Affiliates, with respect to the Portfolio. Additionally, the Board noted that profit margins with respect to the Trust shows that the Trust is profitable, although less so than PIMCO Funds due to payments made

by PIMCO to participating insurance companies. The Board further noted PIMCO’s engagement of a third party to review and to make recommendations regarding PIMCO’s processes supporting its profitability estimation materials. The Board also noted that it had received information regarding the structure and manner in which PIMCO’s investment professionals were compensated, and PIMCO’s view of the relationship of such compensation to the attraction and retention of quality personnel. The Board considered PIMCO’s need to invest in global infrastructure, technology capabilities, risk management processes and qualified personnel to reinforce and offer new services and to accommodate changing regulatory requirements.

With respect to potential economies of scale, the Board noted that PIMCO shares the benefits of economies of scale with the Portfolios and their shareholders in a number of ways, including investing in portfolio and trade operations management, firm technology, middle and back office support, legal and compliance, and fund administration logistics, senior management supervision, governance and oversight of those services, and through fee reductions or waivers, the pricing of Portfolios to scale from inception, and the enhancement of services provided to the Portfolios in return for fees paid. The Board reviewed the history of the Portfolios’ fee structure. The Board considered that the Portfolios’ unified fee rates had been set competitively and/or priced to scale from inception, had been held steady during the contractual period at that scaled competitive rate for most Portfolios as assets grew, or as assets declined in the case of some Portfolios, and continued to be competitive compared with peers. The Board also considered that the unified fee is a transparent means of informing a Portfolio’s shareholders of the fees associated with the Portfolio, and that the Portfolio bears certain expenses that are not covered by the advisory fee or the unified fee. The Board further considered the challenges that arise when managing large funds, which can result in certain “diseconomies” of scale and noted that PIMCO has continued to reinvest in many areas of the business to support the Portfolios.

The Trustees considered that the unified fee has provided inherent economies of scale because a Portfolio maintains competitive fixed fees over the annual contract period even if the particular Portfolio’s assets decline and/or operating costs rise. The Trustees further considered that, in contrast, breakpoints may be a proxy for charging higher fees on lower asset levels and that when a fund’s assets decline, breakpoints may reverse, which causes expense ratios to increase. The Trustees also considered that, unlike the Portfolios’ unified fee structure, funds with “pass through” administrative fee structures may experience increased expense ratios when fixed dollar fees are charged against declining fund assets. The Trustees also considered that the unified fee protects shareholders from a rise in operating costs that may result from, among other things, PIMCO’s investments in various business enhancements and infrastructure, including those referenced above. The Trustees noted that PIMCO’s investments in these areas are extensive.

50 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

The Board concluded that the Portfolios’ cost structures were reasonable and that PIMCO is appropriately sharing economies of scale, if any, through the Portfolios’ unified fee structure, generally pricing Portfolios to scale at inception and reinvesting in its business to provide enhanced and expanded services to the Portfolios and their shareholders.

6. ANCILLARY BENEFITS

The Board considered other benefits realized by PIMCO and its affiliates as a result of PIMCO’s relationship with the Trust. Such benefits may include possible ancillary benefits to PIMCO’s institutional investment management business due to the reputation and market penetration of the Trust or third party service providers’ relationship-level fee concessions, which decrease fees paid by PIMCO. The Board also considered that affiliates of PIMCO provide distribution and/or shareholder services to the Portfolios and their shareholders, for which they may be compensated through distribution and servicing fees paid pursuant to the Portfolios’ Rule 12b-1 plans or otherwise. The Board reviewed PIMCO’s soft dollar policies and procedures, noting that while PIMCO has the authority to receive the benefit of research provided by broker-dealers executing portfolio transactions on behalf of the Portfolios, it has adopted a policy not to enter into contractual soft dollar arrangements.

7. CONCLUSIONS

Based on their review, including their comprehensive consideration and evaluation of each of the broad factors and information summarized above, the Independent Trustees and the Board as a whole concluded that the nature, extent and quality of the services rendered to the Portfolios by PIMCO and Research Affiliates supported the renewal of the Agreements and the Asset Allocation Agreement. The Independent Trustees and the Board as a whole concluded that the Agreements and the Asset Allocation Agreement continued to be fair and reasonable to the Portfolios and their shareholders, that the Portfolios’ shareholders received reasonable value in return for the fees paid to PIMCO by the Portfolios under the Agreements and the fees paid to Research Affiliates by PIMCO under the Asset Allocation Agreement, and that the renewal of the Agreements and the Asset Allocation Agreement was in the best interests of the Portfolios and their shareholders.

ANNUAL REPORT DECEMBER 31, 2018 51

General Information

Investment Adviser and Administrator

Pacific Investment Management Company LLC

650 Newport Center Drive

Newport Beach, CA 92660

Distributor

PIMCO Investments LLC

1633 Broadway

New York, NY 10019

Custodian

State Street Bank and Trust Company

801 Pennsylvania Avenue

Kansas City, MO 64105

Transfer Agent

DST Asset Manager Solutions, Inc.

430 W 7th Street STE 219024

Kansas City, MO 64105-1407

Legal Counsel

Dechert LLP

1900 K Street, N.W.

Washington, D.C. 20006

Independent Registered Public Accounting Firm

PricewaterhouseCoopers LLP

1100 Walnut Street, Suite 1300

Kansas City, MO 64106

This report is submitted for the general information of the shareholders of the Portfolio listed on the Report cover.

pimco.com/pvit

PVIT10AR_123118

PIMCO VARIABLE INSURANCE TRUST

Annual Report

December 31, 2018

PIMCO CommodityRealReturn^® Strategy Portfolio

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, you may not be receiving paper copies of the Portfolio’s shareholder reports from the insurance company that offers your contract unless you specifically request paper copies from the insurance company or from your financial intermediary. Instead, the shareholder reports will be made available on a website, and the insurance company will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the insurance company electronically by following the instructions provided by the insurance company.

You may elect to receive all future reports in paper free of charge from the insurance company. You should contact the insurance company if you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all portfolio companies available under your contract at the insurance company.

Table of Contents

	Page
Chairman’s Letter		2
Important Information About the PIMCO CommodityRealReturn® Strategy Portfolio		4
Portfolio Summary		6
Expense Example		7
Financial Highlights (Consolidated)		8
Consolidated Statement of Assets and Liabilities		10
Consolidated Statement of Operations		11
Consolidated Statements of Changes in Net Assets		12
Consolidated Statement of Cash Flows		13
Consolidated Schedule of Investments		14
Notes to Financial Statements		33
Report of Independent Registered Public Accounting Firm		54
Glossary		55
Federal Income Tax Information		56
Management of the Trust		57
Privacy Policy		59
Approval of Investment Advisory Contract and Other Agreements		60

This material is authorized for use only when preceded or accompanied by the current PIMCO Variable Insurance Trust (the “Trust”) prospectus for the Portfolio. (The variable product prospectus may be obtained by contacting your Investment Consultant.)

Chairman’s Letter

Dear PIMCO Variable Insurance Trust Shareholder,

Following this letter is the PIMCO Variable Insurance Trust Annual Report, which covers the 12-month reporting period ended December 31, 2018. On the subsequent pages you will find specific details regarding investment results and discussion of the factors that most affected performance during the reporting period.

For the 12-month reporting period ended December 31, 2018

The U.S. economy continued to expand during the reporting period. Looking back, U.S. gross domestic product (“GDP”) grew at an annual pace of 2.2% during the first quarter of 2018. During the second quarter of 2018, GDP growth rose to an annual pace of 4.2%, the strongest since the third quarter of 2014. GDP then expanded at an annual pace of 3.4% during the third quarter of the year. Finally, the Commerce Department’s initial reading for fourth-quarter 2018 GDP has been delayed due to the partial government shutdown.

The Federal Reserve (the “Fed”) continued to normalize monetary policy during the reporting period. During its meetings that concluded in March, June, September and December 2018, the Fed raised the federal funds rate in 0.25% increments. The Fed’s December rate hike pushed the federal funds rate to a range between 2.25% and 2.50%. In addition, the Fed continued to reduce its balance sheet during the reporting period.

Economic activity outside the U.S. initially accelerated during the reporting period, but moderated as it progressed. Against this backdrop, the European Central Bank (the “ECB”) and the Bank of Japan largely maintained their highly accommodative monetary policies, while other central banks took a more hawkish stance. The Bank of England raised rates at its meeting in August 2018 and the Bank of Canada raised rates twice during the reporting period. Meanwhile, the ECB ended its quantitative easing program in December 2018, but indicated that it does not expect to raise interest rates “at least through the summer of 2019.”

The U.S. Treasury yield curve flattened during the reporting period as short-term rates moved up more than longer-term rates. In our view, the increase in rates at the short end of the yield curve was mostly due to Fed interest rate increases. The yield on the benchmark 10-year U.S. Treasury note was 2.69% at the end of the reporting period, up from 2.40% on December 31, 2017. U.S. Treasuries, as measured by the Bloomberg Barclays U.S. Treasury Index, returned 0.86% over the 12 months ended December 31, 2018. Meanwhile, the Bloomberg Barclays U.S. Aggregate Bond Index, a widely used index of U.S. investment grade bonds, returned 0.01% over the period. Riskier fixed income asset classes, including high yield corporate bonds and emerging market debt, generated weak results versus the broad U.S. market. The ICE BofAML U.S. High Yield Index returned -2.27% over the reporting period, whereas emerging market external debt, as represented by the JPMorgan Emerging Markets Bond Index (EMBI) Global, returned -4.61% over the reporting period. Emerging market local bonds, as represented by the JPMorgan Government Bond Index-Emerging Markets Global Diversified Index (Unhedged), returned -6.21% over the period.

Global equities produced poor results during the reporting period. U.S. equities moved sharply higher over the first nine months of the period. We believe this rally was driven by a number of factors, including corporate profits that often exceeded expectations. However, U.S. equities fell sharply during the fourth quarter of 2018. We believe this was triggered by a number of factors, including signs of moderating global growth, concerns over future Fed rate hikes, the ongoing trade dispute between the U.S. and China and the partial U.S. government shutdown. All told, U.S. equities, as represented by the S&P 500 Index, returned -4.38% during the reporting period. Elsewhere, emerging market equities, as measured by the MSCI Emerging Markets Index, returned -14.58% during the reporting period, whereas global equities, as represented by the MSCI World Index, returned -8.71%. Elsewhere, Japanese equities, as represented by the Nikkei 225 Index (in JPY), returned -10.39% during the reporting period and European equities, as represented by the MSCI Europe Index (in EUR), returned -10.57%.

Commodity prices fluctuated and generally declined during the reporting period. When the reporting period began, West Texas crude oil was approximately $65 a barrel, but by the end it was roughly $45 a barrel. This was driven in

2 PIMCO VARIABLE INSURANCE TRUST

part by increased supply and declining global demand. Elsewhere, gold and copper prices also moved lower during the reporting period.

Finally, during the reporting period the foreign exchange markets experienced periods of volatility, due in part to signs of decoupling economic growth and central bank policies, along with a number of geopolitical events. The U.S. dollar produced mixed results against other major currencies during the reporting period. For example, the U.S. dollar appreciated 4.71% and 5.90% versus the euro and the British pound, respectively, whereas the U.S. dollar depreciated 2.66% versus the yen during the reporting period.

Thank you for the assets you have placed with us. We deeply value your trust, and we will continue to work diligently to meet your broad investment needs.

Sincerely,     Brent R. Harris Chairman of the Board,
PIMCO Variable Insurance Trust  

Past performance is no guarantee of future results. Unless otherwise noted, index returns reflect the reinvestment of income distributions and capital gains, if any, but do not reflect fees, brokerage commissions or other expenses of investing. It is not possible to invest directly in an unmanaged index.

ANNUAL REPORT DECEMBER 31, 2018 3

Important Information About the PIMCO CommodityRealReturn^® Strategy Portfolio

PIMCO Variable Insurance Trust (the “Trust”) is an open-end management investment company that includes the PIMCO CommodityRealReturn^® Strategy Portfolio (the “Portfolio”). The Portfolio is only available as a funding vehicle under variable life insurance policies or variable annuity contracts issued by insurance companies (“Variable Contracts”). Individuals may not purchase shares of the Portfolio directly. Shares of the Portfolio also may be sold to qualified pension and retirement plans outside of the separate account context.

We believe that bond funds have an important role to play in a well-diversified investment portfolio. It is important to note, however, that in an environment where interest rates may trend upward, rising rates would negatively impact the performance of most bond funds, and fixed income securities and other instruments held by the Portfolio are likely to decrease in value. A wide variety of factors can cause interest rates to rise (e.g., central bank monetary policies, inflation rates, general economic conditions, etc.). In addition, changes in interest rates can be sudden and unpredictable, and there is no guarantee that management will anticipate such movement accurately. The Portfolio may lose money as a result of movements in interest rates.

As of the date of this report, interest rates in the U.S. and many parts of the world, including certain European countries, are at or near historically low levels. Thus, the Portfolio currently faces a heightened level of interest rate risk, especially since the Fed has ended its quantitative easing program and has begun, and may continue, to raise interest rates. To the extent the Fed continues to raise interest rates, there is a risk that rates across the financial system may rise. Further, while bond markets have steadily grown over the past three decades, dealer inventories of corporate bonds are near historic lows in relation to market size. As a result, there has been a significant reduction in the ability of dealers to “make markets.”

Bond funds and individual bonds with a longer duration (a measure used to determine the sensitivity of a security’s price to changes in interest rates) tend to be more sensitive to changes in interest rates, usually making them more volatile than securities or funds with shorter durations. All of the factors mentioned above, individually or collectively, could lead to increased volatility and/or lower liquidity in the fixed income markets or negatively impact the Portfolio’s performance or cause the Portfolio to incur losses. As a result, the Portfolio may experience increased shareholder redemptions which, among other things, could further reduce the net assets of the Portfolio.

The Portfolio may be subject to various risks as described in the Portfolio’s prospectus and in the Principal Risks in the Notes to Financial Statements.

The geographical classification of foreign (non-U.S.) securities in this report are classified by the country of incorporation of a holding. In certain instances, a security’s country of incorporation may be different from its country of economic exposure.

The United States presidential administration’s enforcement of tariffs on goods from other countries, with a focus on China, has contributed to international trade tensions and may impact portfolio securities.

The United Kingdom’s decision to leave the European Union may impact Portfolio returns. This decision may cause substantial volatility in foreign exchange markets, lead to weakness in the exchange rate of the British pound, result in a sustained period of market uncertainty, and destabilize some or all of the other European Union member countries and/or the Eurozone.

The Portfolio will seek to gain exposure to the commodity markets primarily through investments in leveraged or unleveraged commodity index-linked notes, which are derivative debt instruments with principal and/or coupon payments linked to the performance of commodity indices, and through investments in the PIMCO Cayman Commodity Portfolio I Ltd. (the “Subsidiary”), a wholly-owned subsidiary (as discussed below). The Portfolio may also invest in commodity-linked notes with principal and/or coupon payments linked to the value of particular commodities or commodity futures contracts, or a subset of commodities or commodity futures contracts. These notes are sometimes referred to as “structured notes” because the terms of these notes may be structured by the issuer and the purchaser of the notes. The value of these notes will rise or fall in response to changes in the underlying commodity or related index of investments. These notes expose the Portfolio economically to movements in commodity prices. The Portfolio is intended for long-term investors and an investment in the Portfolio should be no more than a small part of a typical diversified portfolio. The Portfolio’s share price is expected to be more volatile than that of other funds. The value of commodity-linked derivative instruments may be affected by changes in overall market movements, changes in interest rates, or factors affecting a particular industry or commodity, such as weather, disease, embargoes, and international economic, political and regulatory developments. These notes also are subject to risks, such as credit, market and interest rate risks, that in general affect the values of debt securities. In addition, these notes are often leveraged, increasing the volatility of each note’s market value relative to changes in the underlying commodity, commodity futures contract or commodity index. Therefore, at maturity of the note, the Portfolio may receive more or less principal than it originally invested. The Portfolio might receive interest payments on the note that are more or less than the stated coupon interest payments. The Portfolio may also gain exposure to the commodity markets indirectly by investing in its Subsidiary, which will primarily invest in different commodity-linked derivative instruments than the Portfolio, including swap agreements, commodity options, futures and options on futures.

On the Portfolio Summary page in this Shareholder Report, the Average Annual Total Return table and Cumulative Returns chart measure performance assuming that any dividend and capital gain distributions were reinvested. The Cumulative Returns chart reflects only Administrative Class performance. Performance may vary by share class

4 PIMCO VARIABLE INSURANCE TRUST

based on each class’s expense ratios. The Portfolio measures its performance against at least one broad-based securities market index (“benchmark index”). The benchmark index does not take into account fees, expenses, or taxes. The Portfolio’s past performance, before and after taxes, is not necessarily an indication of how the Portfolio will perform in the future. There is no assurance that the Portfolio, even if the Portfolio has experienced high or unusual performance for one or more periods, will experience similar levels of performance in the

future. High performance is defined as a significant increase in either 1) the Portfolio’s total return in excess of that of the Portfolio’s benchmark between reporting periods or 2) the Portfolio’s total return in excess of the Portfolio’s historical returns between reporting periods. Unusual performance is defined as a significant change in the Portfolio’s performance as compared to one or more previous reporting periods.

The following table discloses the inception dates of the Portfolio and its respective share classes along with the Portfolio’s diversification status as of period end:

Portfolio Name

Portfolio Inception

Institutional Class

Class M

Administrative Class

Advisor Class

Diversification Status

PIMCO CommodityRealReturn® Strategy Portfolio

06/30/04

04/30/12

11/10/14

06/30/04

02/28/06

Diversified

An investment in the Portfolio is not a bank deposit and is not guaranteed or insured by the Federal Deposit Insurance Corporation (“FDIC”) or any other government agency. It is possible to lose money on investments in the Portfolio.

The Trustees are responsible generally for overseeing the management of the Trust. The Trustees authorize the Trust to enter into service agreements with the Adviser, the Distributor, the Administrator and other service providers in order to provide, and in some cases authorize service providers to procure through other parties, necessary or desirable services on behalf of the Trust and the Portfolio. Shareholders are not parties to or third-party beneficiaries of such service agreements. Neither this Portfolio’s prospectus nor summary prospectus, the Trust’s Statement of Additional Information (“SAI”), any contracts filed as exhibits to the Trust’s registration statement, nor any other communications, disclosure documents or regulatory filings (including this report) from or on behalf of the Trust or the Portfolio creates a contract between or among any shareholder of the Portfolio, on the one hand, and the Trust, the Portfolio, a service provider to the Trust or the Portfolio, and/or the Trustees or officers of the Trust, on the other hand. The Trustees (or the Trust and its officers, service providers or other delegates acting under authority of the Trustees) may amend the most recent prospectus or use a new prospectus, summary prospectus or SAI with respect to the Portfolio or the Trust, and/or amend, file and/or issue any other communications, disclosure documents or regulatory filings, and may amend or enter into any contracts to which the Trust or the Portfolio is a party, and interpret the investment objective(s), policies, restrictions and contractual provisions applicable to the Portfolio, without shareholder input or approval, except in circumstances in which shareholder approval is specifically required by law (such as changes to fundamental investment policies) or where a shareholder approval requirement is specifically disclosed in the Trust’s then-current prospectus or SAI.

PIMCO has adopted written proxy voting policies and procedures (“Proxy Policy”) as required by Rule 206(4)-6 under the Investment

Advisers Act of 1940, as amended. The Proxy Policy has been adopted by the Trust as the policies and procedures that PIMCO will use when voting proxies on behalf of the Portfolio. A description of the policies and procedures that PIMCO uses to vote proxies relating to portfolio securities of the Portfolio, and information about how the Portfolio voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, are available without charge, upon request, by calling the Trust at (888) 87-PIMCO, on the Portfolio’s website at www.pimco.com/pvit, and on the Securities and Exchange Commission’s (“SEC”) website at www.sec.gov.

The Trust files a complete schedule of the Portfolio’s holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. A copy of the Portfolio’s Form N-Q is available on the SEC’s website at www.sec.gov. A copy of the Portfolio’s Form N-Q is also available without charge, upon request, by calling the Trust at (888) 87-PIMCO and on the Portfolio’s website at www.pimco.com/pvit.

The SEC adopted a rule that, beginning in 2021, generally will allow shareholder reports to be delivered to investors by providing access to such reports online free of charge and by mailing a notice that the report is electronically available. Pursuant to the rule, investors may still elect to receive a complete shareholder report in the mail. Instructions for electing to receive paper copies of the Portfolio’s shareholder reports going forward may be found on the front cover of this report.

The SEC adopted amendments to certain disclosure requirements relating to open-end investment companies’ liquidity risk management programs. Effective December 1, 2019, large fund complexes will be required to include in their shareholder reports a discussion of their liquidity risk management programs’ operations over the past year.

ANNUAL REPORT DECEMBER 31, 2018 5

PIMCO CommodityRealReturn^® Strategy Portfolio (Consolidated)

Cumulative Returns Through December 31, 2018

$10,000 invested at the end of the month when the Portfolio’s Administrative Class commenced operations.

Allocation Breakdown as of 12/31/2018^†§

U.S. Treasury Obligations	61.9%
Short-Term Instruments‡	11.3%
U.S. Government Agencies	10.0%
Corporate Bonds & Notes	7.4%
Asset-Backed Securities	4.8%
Sovereign Issues	3.2%
Non-Agency Mortgage-Backed Securities	1.4%

^†  % of Investments, at value.

^§  Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.

^‡  Includes Central Funds Used for Cash Management Purposes.

Average Annual Total Return for the period ended December 31, 2018
		1 Year		5 Years		10 Years		Inception≈
	PIMCO CommodityRealReturn® Strategy Portfolio Institutional Class		(14.05)%		(9.23)%		—		(8.93)%
	PIMCO CommodityRealReturn® Strategy Portfolio Class M		(14.33)%		—		—		(10.01)%
	PIMCO CommodityRealReturn® Strategy Portfolio Administrative Class		(14.13)%		(9.35)%		(1.09)%		(1.84)%
	PIMCO CommodityRealReturn® Strategy Portfolio Advisor Class		(14.20)%		(9.46)%		(1.19)%		(3.62)%
	Bloomberg Commodity Index Total Return±		(11.25)%		(8.80)%		(3.78)%		(3.00)%¨

All Portfolio returns are net of fees and expenses.

^≈ For class inception dates please refer to the Important Information.

^¨ Average annual total return since 06/30/2004.

^± Bloomberg Commodity Index Total Return is an unmanaged index composed of futures contracts on a number of physical commodities. The index is designed to be a highly liquid and diversified benchmark for commodities as an asset class. The futures exposures of the benchmark are collateralized by US T-bills.

It is not possible to invest directly in an unmanaged index.

Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. The Portfolio’s performance does not reflect the deduction of additional charges and expenses imposed in connection with investing in Variable Contracts, which will reduce returns. Differences in the Portfolio’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the prices of individual positions (which may be sourced from different pricing vendors or other sources) used by the Portfolio and the index. For performance current to the most recent month-end, visit www.pimco.com/pvit or via (888) 87-PIMCO.

The Portfolio’s total annual operating expense ratio in effect as of period end which includes the Acquired Fund Fees and Expenses (Commodity Subsidiary Expenses), were 1.39% for Institutional Class shares, 1.84% for Class M shares, 1.54% for Administrative Class shares, and 1.64% for Advisor Class shares. Details regarding any changes to the Portfolio’s operating expenses, subsequent to peroid end, can be found in the Portfolio’s current prospectus, as supplemented.

Investment Objective and Strategy Overview

PIMCO CommodityRealReturn^® Strategy Portfolio seeks maximum real return, consistent with prudent investment management, by investing under normal circumstances in commodity-linked derivative instruments backed by a portfolio of inflation-indexed securities and other Fixed Income Instruments. ”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 Portfolio invests in commodity-linked derivative instruments, including commodity index-linked notes, swap agreements, commodity options, futures and options on futures that provide exposure to the investment returns of the commodities markets without investing directly in physical commodities. Portfolio strategies may change from time to time. Please refer to the Portfolio’s current prospectus for more information regarding the Portfolio’s strategy.

Portfolio Insights

The following affected performance during the reporting period:

» Exposure to commodities detracted from absolute performance as commodities, as measured by the Bloomberg Commodity Index Total Return, posted negative returns.

» The Portfolio’s construction, which utilizes short-term Treasury Inflation-Protected Securities (TIPS) in lieu of Treasury Bills as collateral to back the commodity futures’ exposure, detracted from relative performance as short-term TIPS underperformed Treasury Bills.

» Overweight exposure to the petroleum sector within commodities detracted from relative performance as the sector, measured by the Bloomberg Petroleum Subindex, underperformed broader commodities.

» Underweight exposure to natural gas within commodities during the end of the reporting period detracted from relative performance as the sector, measured by the Bloomberg Natural Gas Subindex, outperformed broader commodities.

» Underweight exposure to French breakeven inflation rates via inflation-linked derivatives contributed to relative performance, as French breakeven inflation rates fell.

6 PIMCO VARIABLE INSURANCE TRUST

Expense Example PIMCO CommodityRealReturn^® Strategy Portfolio (Consolidated)

Example

As a shareholder of the Portfolio, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees (if applicable), and other Portfolio expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in the Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds.

The Expense Example does not reflect any fees or other expenses imposed by the Variable Contracts. If it did, the expenses reflected in the Expense Example would be higher. The Example is based on an investment of $1,000 invested at the beginning of the period and held from July 1, 2018 to December 31, 2018 unless noted otherwise in the table and footnotes below.

Actual Expenses

The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60), then multiply the result by the number in the appropriate row for your share class, in the column titled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other portfolios. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other portfolios.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information under the heading “Hypothetical (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different portfolios. In addition, if these transactional costs were included, your costs would have been higher.

Expense ratios may vary period to period because of various factors, such as an increase in expenses that are not covered by the management fees such as fees and expenses of the independent trustees and their counsel, extraordinary expenses and interest expense.

	Actual						Hypothetical (5% return before expenses)
	Beginning Account Value (07/01/18)		Ending Account Value (12/31/18)		Expenses Paid During Period*		Beginning Account Value (07/01/18)		Ending Account Value (12/31/18)		Expenses Paid During Period*		Net Annualized Expense Ratio**
Institutional Class	$	1,000.00	$	861.10	$	8.96	$	1,000.00	$	1,015.58	$	9.70		1.91	%
Class M		1,000.00		860.00		11.06		1,000.00		1,013.31		11.98		2.36
Administrative Class		1,000.00		860.80		9.66		1,000.00		1,014.82		10.46		2.06
Advisor Class		1,000.00		860.50		10.13		1,000.00		1,014.32		10.97		2.16

* Expenses Paid During Period are equal to the net annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Overall fees and expenses of investing in the Portfolio will be higher because the example does not reflect variable contract fees and expenses.

** Net Annualized Expense Ratio is reflective of any applicable contractual fee waivers and/or expense reimbursements or voluntary fee waivers. Details regarding fee waivers, if any, can be found in Note 9, Fees and Expenses, in the Notes to Financial Statements.

ANNUAL REPORT DECEMBER 31, 2018 7

Financial Highlights PIMCO CommodityRealReturn^® Strategy Portfolio (Consolidated)

			Investment Operations								Less Distributions(b)
Selected Per Share Data for the Year or Period Ended^:	Net Asset Value Beginning of Year or Period		Net Investment Income (Loss)(a)		Net Realized/ Unrealized Gain (Loss)			Total			From Net Investment Income			From Net Realized Capital Gain		Total
Institutional Class
12/31/2018	$	7.14	$	0.16	$	(1.14	)	$	(0.98	)	$	(0.16	)	$	0.00	$	(0.16	)
12/31/2017		7.84		0.14		(0.01	)		0.13			(0.83	)		0.00		(0.83	)
12/31/2016		6.89		0.13		0.91			1.04			(0.09	)		0.00		(0.09	)
12/31/2015~		9.68		0.04		(2.63	)		(2.59	)		(0.20	)		0.00		(0.20	)
12/31/2014~		11.92		0.12		(2.30	)		(2.18	)		(0.06	)		0.00		(0.06	)
Class M
12/31/2018		7.12		0.13		(1.13	)		(1.00	)		(0.13	)		0.00		(0.13	)
12/31/2017		7.83		0.11		(0.01	)		0.10			(0.81	)		0.00		(0.81	)
12/31/2016		6.89		0.24		0.76			1.00			(0.06	)		0.00		(0.06	)
12/31/2015~		9.72		0.03		(2.66	)		(2.63	)		(0.20	)		0.00		(0.20	)
11/10/2014 - 12/31/2014~		11.18		0.08		(1.52	)		(1.44	)		(0.02	)		0.00		(0.02	)
Administrative Class
12/31/2018		7.16		0.15		(1.14	)		(0.99	)		(0.15	)		0.00		(0.15	)
12/31/2017		7.87		0.13		(0.01	)		0.12			(0.83	)		0.00		(0.83	)
12/31/2016		6.91		0.12		0.92			1.04			(0.08	)		0.00		(0.08	)
12/31/2015~		9.72		0.02		(2.63	)		(2.61	)		(0.20	)		0.00		(0.20	)
12/31/2014~		11.96		0.12		(2.32	)		(2.20	)		(0.04	)		0.00		(0.04	)
Advisor Class
12/31/2018		7.24		0.15		(1.16	)		(1.01	)		(0.14	)		0.00		(0.14	)
12/31/2017		7.95		0.12		(0.02	)		0.10			(0.81	)		0.00		(0.81	)
12/31/2016		6.99		0.14		0.90			1.04			(0.08	)		0.00		(0.08	)
12/31/2015~		9.82		0.01		(2.64	)		(2.63	)		(0.20	)		0.00		(0.20	)
12/31/2014~		12.10		0.10		(2.34	)		(2.24	)		(0.04	)		0.00		(0.04	)

^ A zero balance may reflect actual amounts rounding to less than $0.01 or 0.01%.

* Annualized

~ A one for two reverse share split, effective August 7, 2015, has been retroactively applied.

^(a)  Per share amounts based on average number of shares outstanding during the year or period.

^(b)  The tax characterization of distributions is determined in accordance with Federal income tax regulations. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

8 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

					Ratios/Supplemental Data
							Ratios to Average Net Assets
Net Asset Value End of Year or Period		Total Return			Net Assets End of Year or Period (000s)		Expenses			Expenses Excluding Waivers			Expenses Excluding Interest Expense			Expenses Excluding Interest Expense and Waivers			Net Investment Income (Loss)			Portfolio Turnover Rate
$	6.00		(14.05	)%	$	3,000		1.77	%		1.92	%		0.74	%		0.89	%		2.32	%		237	%
	7.14		2.40			2,883		1.25			1.39			0.74			0.88			1.92			157
	7.84		15.22			2,813		1.03			1.17			0.74			0.88			1.82			206
	6.89		(25.57	)		2,513		0.91			1.02			0.74			0.85			0.46			162
	9.68		(18.35	)		2,233		0.78			0.91			0.74			0.87			1.08			151
	5.99		(14.33	)		454		2.22			2.37			1.19			1.34			1.88			237
	7.12		1.94			524		1.70			1.84			1.19			1.33			1.50			157
	7.83		14.62			526		1.48			1.62			1.19			1.33			3.27			206
	6.89		(25.91	)		306		1.36			1.47			1.19			1.30			0.38			162
	9.72		(12.91	)		23		1.23	*		1.36	*		1.19	*		1.32	*		0.61	*		151
	6.02		(14.13	)		217,121		1.92			2.07			0.89			1.04			2.19			237
	7.16		2.15			263,712		1.40			1.54			0.89			1.03			1.79			157
	7.87		15.16			261,084		1.18			1.32			0.89			1.03			1.62			206
	6.91		(25.70	)		241,100		1.06			1.17			0.89			1.00			0.22			162
	9.72		(18.42	)		302,303		0.93			1.06			0.89			1.02			0.94			151
	6.09		(14.20	)		103,329		2.02			2.17			0.99			1.14			2.09			237
	7.24		2.05			124,551		1.50			1.64			0.99			1.13			1.69			157
	7.95		14.87			127,029		1.28			1.42			0.99			1.13			1.82			206
	6.99		(25.66	)		106,999		1.16			1.27			0.99			1.10			0.14			162
	9.82		(18.62	)		125,905		1.03			1.16			0.99			1.12			0.85			151

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 9

Consolidated Statement of Assets and Liabilities PIMCO CommodityRealReturn^® Strategy Portfolio

(Amounts in thousands†, except per share amounts)	December 31, 2018
Assets:
Investments, at value
Investments in securities*	$	582,015
Investments in Affiliates		4,763
Financial Derivative Instruments
Exchange-traded or centrally cleared		825
Over the counter		1,446
Cash		1
Deposits with counterparty		3,408
Foreign currency, at value		1,191
Receivable for investments sold		31,349
Receivable for investments sold on a delayed-delivery basis		64
Receivable for TBA investments sold		72,898
Receivable for Portfolio shares sold		726
Interest and/or dividends receivable		1,442
Dividends receivable from Affiliates		4
Reimbursement receivable from PIMCO		31
Other assets		10
Total Assets		700,173
Liabilities:
Borrowings & Other Financing Transactions
Payable for sale-buyback transactions	$	229,357
Payable for short sales		6,441
Financial Derivative Instruments
Exchange-traded or centrally cleared		998
Over the counter		17,276
Payable for investments purchased		122
Payable for investments in Affiliates purchased		4
Payable for TBA investments purchased		120,060
Deposits from counterparty		1,557
Payable for Portfolio shares redeemed		166
Accrued investment advisory fees		159
Accrued supervisory and administrative fees		79
Accrued distribution fees		22
Accrued servicing fees		28
Total Liabilities		376,269
Net Assets	$	323,904
Net Assets Consist of:
Paid in capital	$	366,431
Distributable earnings (accumulated loss)		(42,527	)
Net Assets	$	323,904
Net Assets:
Institutional Class	$	3,000
Class M		454
Administrative Class		217,121
Advisor Class		103,329
Shares Issued and Outstanding:
Institutional Class		500
Class M		76
Administrative Class		36,053
Advisor Class		16,955
Net Asset Value Per Share Outstanding:
Institutional Class	$	6.00
Class M		5.99
Administrative Class		6.02
Advisor Class		6.09
Cost of investments in securities	$	591,381
Cost of investments in Affiliates	$	4,762
Cost of foreign currency held	$	1,187
Proceeds received on short sales	$	6,272
Cost or premiums of financial derivative instruments, net	$	679
* Includes repurchase agreements of:	$	29,836

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

10 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

Consolidated Statement of Operations PIMCO CommodityRealReturn^® Strategy Portfolio

(Amounts in thousands†)	Year Ended December 31, 2018
Investment Income:
Interest	$	15,646
Dividends from Investments in Affiliates		35
Total Income		15,681
Expenses:
Investment advisory fees		2,268
Supervisory and administrative fees		1,116
Distribution and/or servicing fees - Class M		2
Servicing fees - Administrative Class		385
Distribution and/or servicing fees - Advisor Class		303
Trustee fees		11
Interest expense		3,918
Total Expenses		8,003
Waiver and/or Reimbursement by PIMCO		(563	)
Net Expenses		7,440
Net Investment Income (Loss)		8,241
Net Realized Gain (Loss):
Investments in securities		(7,681	)
Investments in Affiliates		3
Exchange-traded or centrally cleared financial derivative instruments		3,291
Over the counter financial derivative instruments		(15,561	)
Short sales		(2	)
Foreign currency		(307	)
Net Realized Gain (Loss)		(20,257	)
Net Change in Unrealized Appreciation (Depreciation):
Investments in securities		(9,250	)
Investments in Affiliates		(2	)
Exchange-traded or centrally cleared financial derivative instruments		(1,780	)
Over the counter financial derivative instruments		(31,226	)
Foreign currency assets and liabilities		1
Net Change in Unrealized Appreciation (Depreciation)		(42,257	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	(54,273	)

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 11

Consolidated Statements of Changes in Net Assets PIMCO CommodityRealReturn^® Strategy Portfolio

(Amounts in thousands†)	Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets from:
Operations:
Net investment income (loss)	$	8,241		$	6,658
Net realized gain (loss)		(20,257	)		(13,141	)
Net change in unrealized appreciation (depreciation)		(42,257	)		14,934
Net Increase (Decrease) in Net Assets Resulting from Operations		(54,273	)		8,451
Distributions to Shareholders:
From net investment income and/or net realized capital gains*
Institutional Class		(67	)		(287	)
Class M		(9	)		(57	)
Administrative Class		(5,381	)		(28,472	)
Advisor Class		(2,395	)		(13,385	)
Total Distributions(a)		(7,852	)		(42,201	)
Portfolio Share Transactions:
Net increase (decrease) resulting from Portfolio share transactions**		(5,641	)		33,968
Total Increase (Decrease) in Net Assets		(67,766	)		218
Net Assets:
Beginning of year		391,670			391,452
End of year	$	323,904		$	391,670

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

* See Note 2, New Accounting Pronouncements, in the Notes to Financial Statements for more information.

** See Note 13, Shares of Beneficial Interest, in the Notes to Financial Statements.

^(a)  The tax characterization of distributions is determined in accordance with Federal income tax regulations. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

12 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

Consolidated Statement of Cash Flows PIMCO CommodityRealReturn^® Strategy Portfolio

(Amounts in thousands†)	Year Ended December 31, 2018
Cash Flows Provided by (Used for) Operating Activities:
Net increase (decrease) in net assets resulting from operations	$	(54,273	)
Adjustments to Reconcile Net Increase (Decrease) in Net Assets from Operations to Net Cash Provided by (Used for) Operating Activities:
Purchases of long-term securities		(1,200,899	)
Proceeds from sales of long-term securities		1,212,532
(Purchases) Proceeds from sales of short-term portfolio investments, net		14,203
(Increase) decrease in deposits with counterparty		(310	)
(Increase) decrease in receivable for investments sold		569
(Increase) decrease in interest and/or dividends receivable		347
(Increase) decrease in dividends receivable from Affiliates		2
Proceeds from (Payments on) exchange-traded or centrally cleared financial derivative instruments		1,656
Proceeds from (Payments on) over the counter financial derivative instruments		(15,310	)
(Increase) decrease in reimbursement receivable from PIMCO		17
Increase (decrease) in payable for investments purchased		16,158
Increase (decrease) in deposits from counterparty		(14,317	)
Increase (decrease) in accrued investment advisory fees		(37	)
Increase (decrease) in accrued supervisory and administrative fees		(18	)
Increase (decrease) in accrued distribution fees		(5	)
Increase (decrease) in accrued servicing fees		(5	)
Proceeds from (Payments on) short sales transactions, net		(5,201	)
Proceeds from (Payments on) foreign currency transactions		(306	)
Increase (decrease) in other liabilities		(2	)
Net Realized (Gain) Loss
Investments in securities		7,681
Investments in Affiliates		(3	)
Exchange-traded or centrally cleared financial derivative instruments		(3,291	)
Over the counter financial derivative instruments		15,561
Short sales		2
Foreign currency		307
Net Change in Unrealized (Appreciation) Depreciation
Investments in securities		9,250
Investments in Affiliates		2
Exchange-traded or centrally cleared financial derivative instruments		1,780
Over the counter financial derivative instruments		31,226
Foreign currency assets and liabilities		(1	)
Net amortization (accretion) on investments		182
Net Cash Provided by (Used for) Operating Activities		17,497
Cash Flows Received from (Used for) Financing Activities:
Proceeds from shares sold		76,831
Payments on shares redeemed		(91,202	)
Cash distributions paid*		0
Proceeds from reverse repurchase agreements		6,566
Payments on reverse repurchase agreements		(30,403	)
Proceeds from sale-buyback transactions		3,426,843
Payments on sale-buyback transactions		(3,405,395	)
Net Cash Received from (Used for) Financing Activities		(16,760	)
Net Increase (Decrease) in Cash and Foreign Currency		737
Cash and Foreign Currency:
Beginning of year		455
End of year	$	1,192
* Reinvestment of distributions	$	7,852
Supplemental Disclosure of Cash Flow Information:
Interest expense paid during the year	$	3,953

^† A zero balance may reflect actual amounts rounding to less than one thousand.

A Statement of Cash Flows is presented when the Portfolio has a significant amount of borrowing during the year, based on the average total borrowing outstanding in relation to total assets or when substantially all of the Portfolio’s investments are not classified as Level 1 or 2 in the fair value hierarchy.

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 13

Consolidated Schedule of Investments PIMCO CommodityRealReturn^® Strategy Portfolio

(Amounts in thousands*, except number of shares, contracts and units, if any)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
INVESTMENTS IN SECURITIES 179.7%
CORPORATE BONDS & NOTES 13.5%
BANKING & FINANCE 6.4%
AerCap Ireland Capital DAC
3.750% due 05/15/2019	$		100	$		100
4.250% due 07/01/2020			700			702
4.625% due 10/30/2020			100			101
Aircastle Ltd.
5.125% due 03/15/2021			1,000			1,017
7.625% due 04/15/2020			600			628
Banco Bilbao Vizcaya Argentaria S.A.
6.750% due 02/18/2020 •(f)(g)	EUR		400			455
Bank of America Corp.
5.875% due 03/15/2028 •(f)	$		230			210
Bank of Ireland
7.375% due 06/18/2020 •(f)(g)	EUR		200			240
Cooperatieve Rabobank UA
5.500% due 06/29/2020 •(f)(g)			200			235
6.625% due 06/29/2021 •(f)(g)			200			249
Credit Suisse Group Funding Guernsey Ltd.
3.800% due 09/15/2022	$		1,100			1,093
Deutsche Bank AG
4.250% due 10/14/2021			1,600			1,565
Ford Motor Credit Co. LLC
0.054% due 12/01/2021 •	EUR		900			963
3.200% due 01/15/2021	$		2,100			2,036
Goldman Sachs Group, Inc.
3.988% (US0003M + 1.200%) due 09/15/2020 ~			1,400			1,407
ING Bank NV
2.625% due 12/05/2022			500			493
John Deere Capital Corp.
3.114% (US0003M + 0.290%) due 06/22/2020 ~			1,200			1,201
Lloyds Banking Group PLC
3.590% (US0003M + 0.800%) due 06/21/2021 ~			500			495
7.000% due 06/27/2019 •(f)(g)	GBP		200			255
Macquarie Bank Ltd.
2.758% (US0003M + 0.350%) due 04/04/2019 ~	$		700			700
Mitsubishi UFJ Financial Group, Inc.
4.618% (US0003M + 1.880%) due 03/01/2021 ~			247			253
National Rural Utilities Cooperative Finance Corp.
3.178% (US0003M + 0.375%) due 06/30/2021 ~			200			199
Royal Bank of Scotland Group PLC
4.372% (US0003M + 1.550%) due 06/25/2024 ~			400			382
4.519% due 06/25/2024 •			300			295
State Bank of India
3.358% (US0003M + 0.950%) due 04/06/2020 ~			800			801
Toronto-Dominion Bank
2.250% due 03/15/2021			800			789
UBS AG
3.347% due 06/08/2020 •			1,000			1,000
Unibail-Rodamco SE
3.206% (US0003M + 0.770%) due 04/16/2019 ~			800			801
UniCredit SpA
7.830% due 12/04/2023			2,000			2,094
						20,759
INDUSTRIALS 4.9%
BAT Capital Corp.
2.297% due 08/14/2020			900			879
3.204% due 08/14/2020 •			600			594
Bayer U.S. Finance LLC
3.452% (US0003M + 0.630%) due 06/25/2021 ~			2,100			2,073

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Charter Communications Operating LLC
3.579% due 07/23/2020	$		2,700	$		2,698
Dell International LLC
4.420% due 06/15/2021			900			900
DISH DBS Corp.
5.125% due 05/01/2020			500			495
Dominion Energy Gas Holdings LLC
3.388% (US0003M + 0.600%) due 06/15/2021 ~			600			599
Enbridge, Inc.
2.814% (US0003M + 0.400%) due 01/10/2020 ~			600			598
3.488% (US0003M + 0.700%) due 06/15/2020 ~			900			897
Fresenius Medical Care U.S. Finance, Inc.
5.750% due 02/15/2021			1,000			1,030
Hyundai Capital America
2.000% due 07/01/2019			200			199
Keurig Dr Pepper, Inc.
3.551% due 05/25/2021			2,800			2,797
4.057% due 05/25/2023			100			100
Kraft Heinz Foods Co.
2.800% due 07/02/2020			800			793
Mondelez International Holdings Netherlands BV
2.000% due 10/28/2021			500			479
Spectra Energy Partners LP
3.451% (US0003M + 0.700%) due 06/05/2020 ~			100			99
Textron, Inc.
3.168% (US0003M + 0.550%) due 11/10/2020 ~			690			684
						15,914
UTILITIES 2.2%
AT&T, Inc.
3.386% (US0003M + 0.950%) due 07/15/2021 ~			1,100			1,097
3.488% (US0003M + 0.750%) due 06/01/2021 ~			600			596
5.150% due 02/15/2050			300			279
5.300% due 08/15/2058			100			93
Consolidated Edison Co. of New York, Inc.
3.222% (US0003M + 0.400%) due 06/25/2021 ~			200			198
Duke Energy Corp.
3.114% (US0003M + 0.500%) due 05/14/2021 ~			1,200			1,195
NextEra Energy Capital Holdings, Inc.
3.053% (US0003M + 0.315%) due 09/03/2019 ~			690			689
3.107% (US0003M + 0.400%) due 08/21/2020 ~			700			699
Petrobras Global Finance BV
5.999% due 01/27/2028			883			834
6.125% due 01/17/2022			238			245
6.625% due 01/16/2034	GBP		100			128
Sempra Energy
3.238% (US0003M + 0.450%) due 03/15/2021 ~	$		300			294
Southern Power Co.
3.342% (US0003M + 0.550%) due 12/20/2020 ~			300			297
Sprint Capital Corp.
6.900% due 05/01/2019			300			303
						6,947
Total Corporate Bonds & Notes (Cost $44,034)						43,620
U.S. GOVERNMENT AGENCIES 18.1%
Fannie Mae
2.856% due 05/25/2042 •			4			4
3.253% due 10/01/2044 •			4			4
4.079% due 01/01/2036 •			49			51
4.120% due 05/25/2035 ~			22			24

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
4.468% due 07/01/2035 •	$		13	$		13
4.490% due 11/01/2034 •			18			19
4.780% due 11/01/2035 •			16			16
Fannie Mae, TBA
3.500% due 02/01/2034 - 02/01/2049			30,580			30,579
4.000% due 02/01/2049			23,700			24,149
Freddie Mac
2.636% due 08/25/2031 •			1			1
2.649% due 07/15/2044 •			623			621
2.905% due 08/15/2033 - 09/15/2042 •			1,178			1,180
3.156% due 02/25/2045 •			52			52
4.251% due 07/01/2036 •			96			100
4.254% due 09/01/2036 •			88			91
4.331% due 01/01/2034 •			5			5
4.447% due 10/01/2036 •			63			66
Ginnie Mae
3.247% due 04/20/2067 •			474			487
NCUA Guaranteed Notes
2.830% due 10/07/2020 •			246			246
2.940% due 12/08/2020 •			702			706
Small Business Administration
5.510% due 11/01/2027			128			136
Total U.S. Government Agencies (Cost $58,009)						58,550
U.S. TREASURY OBLIGATIONS 112.0%
U.S. Treasury Bonds
3.000% due 05/15/2045 (m)			80			80
U.S. Treasury Inflation Protected Securities (e)
0.125% due 04/15/2019 (i)			52,087			51,358
0.125% due 04/15/2020 (i)			91,109			89,090
0.125% due 04/15/2021 (i)			41,751			40,620
0.125% due 01/15/2022 (i)(m)			872			846
0.125% due 04/15/2022 (i)(m)			19,393			18,768
0.125% due 07/15/2022			2,636			2,561
0.125% due 01/15/2023			2,696			2,605
0.125% due 07/15/2024			4,291			4,116
0.125% due 07/15/2026			3,851			3,618
0.250% due 01/15/2025			7,523			7,207
0.375% due 07/15/2023			7,268			7,108
0.375% due 07/15/2025			4,709			4,543
0.375% due 07/15/2025 (k)(m)			2,453			2,366
0.375% due 01/15/2027 (i)(m)			1,193			1,134
0.500% due 01/15/2028 (i)			18,892			18,042
0.625% due 07/15/2021			4,389			4,342
0.625% due 04/15/2023			3,136			3,085
0.625% due 01/15/2024			4,036			3,974
0.625% due 01/15/2026 (i)			11,824			11,518
0.625% due 02/15/2043 (i)(m)			154			135
0.750% due 07/15/2028			2,257			2,211
0.750% due 02/15/2045 (i)			2,255			2,022
0.875% due 02/15/2047			3,153			2,902
1.000% due 02/15/2048			1,971			1,872
1.250% due 07/15/2020 (i)			29,012			28,957
1.375% due 01/15/2020			4,278			4,252
1.375% due 02/15/2044 (i)(m)			543			562
1.375% due 02/15/2044 (m)			109			112
1.750% due 01/15/2028			5,882			6,251
1.875% due 07/15/2019 (k)			4,678			4,664
2.000% due 01/15/2026			4,577			4,886
2.125% due 02/15/2040 (i)			410			483
2.125% due 02/15/2041 (m)			1,016			1,203
2.375% due 01/15/2025 (i)			14,355			15,527
2.375% due 01/15/2027 (m)			125			139
2.500% due 01/15/2029			5,647			6,433
3.375% due 04/15/2032 (i)			1,664			2,138
3.875% due 04/15/2029			785			1,000
3.875% due 04/15/2029 (m)			154			196
Total U.S. Treasury Obligations (Cost $371,176)						362,926
NON-AGENCY MORTGAGE-BACKED SECURITIES 2.5%
Alliance Bancorp Trust
2.746% due 07/25/2037 •			224			198

14 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Banc of America Mortgage Trust
4.368% due 06/25/2035 ~	$		56	$		52
4.521% due 11/25/2035 ^~			17			17
4.871% due 11/25/2034 ~			17			18
BCAP LLC Trust
5.250% due 08/26/2037 ~			286			291
Bear Stearns Adjustable Rate Mortgage Trust
3.903% due 03/25/2035 ~			53			51
4.176% due 07/25/2036 ^~			58			54
4.810% due 01/25/2035 ~			159			160
Citigroup Mortgage Loan Trust
4.238% due 09/25/2037 ^~			286			275
Civic Mortgage LLC
4.349% due 11/25/2022 Ø			714			715
Countrywide Alternative Loan Trust
2.626% due 06/25/2036 •			749			696
2.665% due 12/20/2046 ^•			1,109			980
6.000% due 02/25/2037 ^			176			125
Countrywide Home Loan Mortgage Pass-Through Trust
3.910% due 08/25/2034 ^~			17			16
4.531% due 11/19/2033 ~			1			1
Credit Suisse Mortgage Capital Certificates
2.656% due 09/29/2036 •			741			696
5.624% due 10/26/2036 ~			77			69
Eurosail PLC
1.850% due 06/13/2045 •	GBP		352			441
First Horizon Alternative Mortgage Securities Trust
4.290% due 06/25/2034 ~	$		9			9
6.000% due 02/25/2037 ^			60			46
GreenPoint Mortgage Funding Trust
2.686% due 09/25/2046 •			150			140
3.046% due 11/25/2045 •			8			7
GS Mortgage Securities Trust
3.849% due 12/10/2043			207			208
GSR Mortgage Loan Trust
4.807% due 01/25/2035 ~			23			23
HarborView Mortgage Loan Trust
2.710% due 03/19/2036 ^•			42			39
HomeBanc Mortgage Trust
2.836% due 10/25/2035 •			62			62
IndyMac Mortgage Loan Trust
4.460% due 11/25/2035 ^~			48			47
JPMorgan Mortgage Trust
4.336% due 02/25/2035 ~			68			68
4.452% due 07/25/2035 ~			27			28
4.603% due 08/25/2035 ~			44			44
MASTR Adjustable Rate Mortgages Trust
4.438% due 11/21/2034 ~			19			19
Mellon Residential Funding Corp. Mortgage Pass-Through Certificates
3.195% due 09/15/2030 •			108			106
Residential Accredit Loans, Inc. Trust
3.517% due 09/25/2045 •			109			102
Residential Asset Securitization Trust
2.906% due 05/25/2035 •			87			75
Sequoia Mortgage Trust
2.670% due 07/20/2036 •			201			192
Structured Adjustable Rate Mortgage Loan Trust
3.557% due 01/25/2035 ^•			11			10
4.232% due 02/25/2034 ~			11			11
4.436% due 12/25/2034 ~			10			10
Structured Asset Mortgage Investments Trust
2.716% due 04/25/2036 •			15			14
3.130% due 10/19/2034 •			14			14
Vornado DP LLC Trust
4.004% due 09/13/2028			1,500			1,529
WaMu Mortgage Pass-Through Certificates Trust
2.927% due 05/25/2047 •			199			187
3.918% due 08/25/2035 ~			12			11
4.062% due 12/25/2035 ~			108			104
Washington Mutual Mortgage Pass-Through Certificates Trust
6.500% due 08/25/2035			19			16

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Wells Fargo Mortgage-Backed Securities Trust
4.168% due 06/25/2033 ~	$		28	$		28
4.649% due 03/25/2036 ^~			80			78
Total Non-Agency Mortgage-Backed Securities (Cost $7,667)						8,082
ASSET-BACKED SECURITIES 8.8%
Argent Mortgage Loan Trust
2.986% due 05/25/2035 •			107			102
Argent Securities Trust
2.656% due 07/25/2036 •			394			331
Atrium Corp.
3.299% due 04/22/2027 •			400			395
Black Diamond CLO Designated Activity Co.
0.650% due 10/03/2029 •	EUR		350			396
Brookside Mill CLO Ltd.
3.269% due 01/17/2028 •	$		2,060			2,037
Catamaran CLO Ltd.
3.359% due 01/27/2028 •			600			596
CIFC Funding Ltd.
3.216% due 04/15/2027 •			640			635
CIT Mortgage Loan Trust
3.856% due 10/25/2037 •			638			646
Citigroup Mortgage Loan Trust
2.736% due 12/25/2036 •			51			36
Citigroup Mortgage Loan Trust, Inc.
2.836% due 10/25/2036 •			400			379
CoreVest American Finance Trust
2.968% due 10/15/2049			164			160
Countrywide Asset-Backed Certificates
2.696% due 11/25/2037 •			969			921
2.756% due 03/25/2037 •			200			188
3.915% due 04/25/2036 ~			6			6
Credit Suisse Mortgage Capital Trust
4.500% due 03/25/2021			272			273
Credit-Based Asset Servicing & Securitization LLC
2.626% due 07/25/2037 •			14			9
2.726% due 07/25/2037 •			59			38
Flagship Ltd.
3.589% due 01/20/2026 •			362			362
Fremont Home Loan Trust
2.641% due 10/25/2036 •			144			134
GSAMP Trust
2.576% due 12/25/2036 •			58			34
3.481% due 03/25/2035 ^•			133			115
Halcyon Loan Advisors Funding Ltd.
3.389% due 04/20/2027 •			300			298
IndyMac Mortgage Loan Trust
2.576% due 07/25/2036 •			283			124
Jamestown CLO Ltd.
3.126% due 07/15/2026 •			497			495
3.320% due 07/25/2027 •			250			248
3.669% due 01/17/2027 •			961			960
Jubilee CLO BV
0.489% due 12/15/2029 •	EUR		1,950			2,214
Lehman XS Trust
2.666% due 05/25/2036 •	$		164			162
5.012% due 06/25/2036 Ø			155			140
Long Beach Mortgage Loan Trust
2.626% due 08/25/2036 •			646			342
Marathon CLO Ltd.
3.516% due 11/21/2027 •			1,920			1,897
Morgan Stanley Mortgage Loan Trust
5.910% due 11/25/2036 Ø			826			399
6.000% due 02/25/2037 ^~			88			69
Navient Student Loan Trust
3.656% due 03/25/2066 •			527			529
OCP CLO Ltd.
3.236% due 07/15/2027 •			300			298
3.328% due 10/26/2027 •			1,020			1,013
Renaissance Home Equity Loan Trust
3.606% due 09/25/2037 •			1,082			582

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Residential Asset Securities Corp. Trust
2.736% due 06/25/2036 •	$		400	$		386
2.836% due 04/25/2036 •			200			198
Saxon Asset Securities Trust
2.816% due 09/25/2047 •			241			233
Securitized Asset-Backed Receivables LLC Trust
2.656% due 07/25/2036 •			367			202
2.756% due 05/25/2036 •			634			404
SLM Private Education Loan Trust
1.850% due 06/17/2030			143			143
4.705% due 06/16/2042 •			220			224
SLM Student Loan Trust
0.000% due 12/15/2023 •	EUR		9			10
0.000% due 01/25/2024 •			220			251
0.000% due 06/17/2024 •			76			86
2.530% due 04/25/2019 •	$		321			321
3.040% due 10/25/2064 •			500			502
3.990% due 04/25/2023 •			1,629			1,639
SoFi Professional Loan Program LLC
2.050% due 01/25/2041			467			462
Sound Point CLO Ltd.
3.296% due 04/15/2027 •			800			796
Soundview Home Loan Trust
2.706% due 06/25/2037 •			863			642
Structured Asset Securities Corp. Mortgage Loan Trust
3.849% due 04/25/2035 •			183			179
THL Credit Wind River CLO Ltd.
3.306% due 10/15/2027 •			500			500
Venture CLO Ltd.
3.256% due 04/15/2027 •			940			933
3.316% due 07/15/2027 •			400			396
3.650% due 10/22/2031 •			500			500
Vericrest Opportunity Loan Transferee LLC
3.125% due 09/25/2047 Ø			363			361
3.250% due 06/25/2047 Ø			126			126
Voya CLO Ltd.
3.210% due 07/25/2026 •			627			626
Z Capital Credit Partners CLO Ltd.
3.386% due 07/16/2027 •			710			706
Total Asset-Backed Securities (Cost $28,519)						28,389
SOVEREIGN ISSUES 5.8%
Argentina Government International Bond
5.875% due 01/11/2028			300			217
6.875% due 01/26/2027			910			697
41.328% (BADLARPP) due 10/04/2022 ~	ARS		100			4
50.225% (BADLARPP + 2.000%) due 04/03/2022 ~(a)			3,233			83
59.257% (ARLLMONP) due 06/21/2020 ~(a)			16,487			472
Australia Government International Bond
1.250% due 02/21/2022	AUD		1,798			1,293
3.000% due 09/20/2025			2,059			1,673
Autonomous Community of Catalonia
4.950% due 02/11/2020	EUR		100			119
Brazil Letras do Tesouro Nacional
0.000% due 04/01/2019 (c)	BRL		1,110			282
Canadian Government Real Return Bond
4.250% due 12/01/2026 (e)	CAD		916			860
France Government International Bond
1.850% due 07/25/2027 (e)	EUR		445			621
Italy Buoni Poliennali Del Tesoro
1.650% due 04/23/2020			199			233
2.350% due 09/15/2024 (e)			377			456
Japan Government International Bond
0.100% due 03/10/2028 (e)	JPY		100,807			949
Mexico Government International Bond
7.750% due 05/29/2031	MXN		7,972			374
New Zealand Government International Bond
2.000% due 09/20/2025	NZD		2,712			1,922
Peru Government International Bond
5.940% due 02/12/2029	PEN		1,000			303

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 15

Consolidated Schedule of Investments PIMCO CommodityRealReturn^® Strategy Portfolio (Cont.)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Qatar Government International Bond
3.875% due 04/23/2023	$		400	$		405
5.103% due 04/23/2048			300			316
Saudi Government International Bond
4.000% due 04/17/2025			260			258
United Kingdom Gilt
0.125% due 03/22/2026 (e)	GBP		2,093			3,116
0.125% due 03/22/2046 (e)			64			127
0.125% due 08/10/2048 (e)			135			278
0.125% due 11/22/2056 (e)			43			99
0.125% due 11/22/2065 (e)			208			551
0.750% due 11/22/2047 (e)			219			512
1.750% due 09/07/2037			1,190			1,519
1.875% due 11/22/2022 (e)			374			556
4.250% due 12/07/2027			300			483
Total Sovereign Issues (Cost $20,300)						18,778
SHORT-TERM INSTRUMENTS 19.0%
CERTIFICATES OF DEPOSIT 0.7%
Barclays Bank PLC
2.890% (US0003M + 0.400%) due 10/25/2019 ~	$		2,400			2,401
COMMERCIAL PAPER 1.3%
Bank of Montreal
2.038% due 01/03/2019	CAD		800			586
2.068% due 01/04/2019			300			220

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
C.I.B.C.
2.060% due 01/03/2019	CAD		1,400	$		1,025
Toronto-Dominion Bank
2.055% due 01/02/2019			2,700			1,978
2.063% due 01/03/2019			500			366
						4,175
REPURCHASE AGREEMENTS (h) 9.2%
						29,836
ARGENTINA TREASURY BILLS 0.1%
(7.382)% due 02/28/2019 - 04/30/2019 (b)(c)	ARS		5,968			179
JAPAN TREASURY BILLS 2.0%
(0.321)% due 02/04/2019 (c)(d)	JPY		730,000			6,661
U.S. TREASURY BILLS 5.7%
2.298% due 01/03/2019 - 02/26/2019 (b)(c)(m)	$		18,436			18,418
Total Short-Term Instruments (Cost $61,676)						61,670
Total Investments in Securities (Cost $591,381)						582,015

	SHARES			MARKET VALUE (000S)
INVESTMENTS IN AFFILIATES 1.5%
SHORT-TERM INSTRUMENTS 1.5%
CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 1.5%
PIMCO Short-Term Floating NAV Portfolio III		481,857	$		4,763
Total Short-Term Instruments (Cost $4,762)					4,763
Total Investments in Affiliates (Cost $4,762)					4,763
Total Investments 181.2% (Cost $596,143)			$		586,778
Financial Derivative Instruments (j)(l) (4.9)% (Cost or Premiums, net $679)					(16,003	)
Other Assets and Liabilities, net (76.3)%					(246,871	)
Net Assets 100.0%			$		323,904

NOTES TO CONSOLIDATED SCHEDULE OF INVESTMENTS:

* A zero balance may reflect actual amounts rounding to less than one thousand.

^ Security is in default.

~ Variable or Floating rate security. Rate shown is the rate in effect as of period end. Certain variable rate securities are not based on a published reference rate and spread, rather are determined by the issuer or agent and are based on current market conditions. Reference rate is as of reset date, which may vary by security. These securities may not indicate a reference rate and/or spread in their description.

• Rate shown is the rate in effect as of period end. The rate may be based on a fixed rate, a capped rate or a floor rate and may convert to a variable or floating rate in the future. These securities do not indicate a reference rate and spread in their description.

Ø Coupon represents a rate which changes periodically based on a predetermined schedule or event. Rate shown is the rate in effect as of period end.

(a) Interest only security.

(b) Coupon represents a weighted average yield to maturity.

(c) Zero coupon security.

(d) Coupon represents a yield to maturity.

(e) Principal amount of security is adjusted for inflation.

(f) Perpetual maturity; date shown, if applicable, represents next contractual call date.

(g) Contingent convertible security.

BORROWINGS AND OTHER FINANCING TRANSACTIONS

(h)  REPURCHASE AGREEMENTS:

Counterparty	Lending Rate			Settlement Date		Maturity Date		Principal Amount		Collateralized By	Collateral (Received)			Repurchase Agreements, at Value		Repurchase Agreement Proceeds to  be Received(1)
BPS		3.100	%		12/31/2018		01/02/2019	$	10,400	U.S. Treasury Notes 2.750% due 02/15/2024	$	(10,642	)	$	10,400	$	10,402
FICC		2.000			12/31/2018		01/02/2019		310	U.S. Treasury Notes 2.875% due 09/30/2023		(316	)		310		310
SAL		3.150			12/31/2018		01/02/2019		10,400	U.S. Treasury Notes 2.125% due 11/30/2024		(10,649	)		10,400		10,402
SSB		1.350			12/31/2018		01/02/2019		1,126	U.S. Treasury Notes 2.000% due 08/31/2021(2)		(1,152	)		1,126		1,126
TDM		3.130			12/31/2018		01/02/2019		7,600	U.S. Treasury Notes 2.000% due 04/30/2024		(7,808	)		7,600		7,601
Total Repurchase Agreements											$	(30,567	)	$	29,836	$	29,841

16 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

SALE-BUYBACK TRANSACTIONS:

Counterparty	Borrowing Rate(3)			Borrowing Date		Maturity Date		Amount Borrowed(3)			Payable for Sale-Buyback Transactions(4)
BCY		2.570	%		11/19/2018		01/18/2019	$	(8,065	)	$	(8,090	)
BPG		2.980			01/02/2019		01/03/2019		(31,324	)		(31,324	)
MSC		2.520			11/06/2018		01/07/2019		(8,169	)		(8,202	)
		2.800			12/11/2018		01/11/2019		(10,647	)		(10,665	)
		3.040			12/17/2018		01/07/2019		(2,338	)		(2,341	)
		3.100			12/18/2018		01/02/2019		(878	)		(879	)
TDM		2.420			10/16/2018		01/14/2019		(148,301	)		(149,079	)
		2.450			10/17/2018		01/17/2019		(6,550	)		(6,584	)
		2.500			11/01/2018		01/31/2019		(12,141	)		(12,193	)
Total Sale-Buyback Transactions											$	(229,357	)

SHORT SALES:

Description	Coupon		Maturity Date		Principal Amount		Proceeds			Payable for Short Sales
U.S. Government Agencies (2.0)%
Fannie Mae, TBA		3.000%		01/01/2049	$	6,600	$	(6,272	)	$	(6,441	)
Total Short Sales (2.0)%							$	(6,272	)	$	(6,441	)

BORROWINGS AND OTHER FINANCING TRANSACTIONS SUMMARY

The following is a summary by counterparty of the market value of Borrowings and Other Financing Transactions and collateral pledged/(received) as of December 31, 2018:

Counterparty	Repurchase Agreement Proceeds to be Received(1)		Payable for Reverse Repurchase Agreements		Payable for Sale-Buyback Transactions(4)			Total Borrowings and Other Financing Transactions			Collateral Pledged/(Received)			Net Exposure(5)
Global/Master Repurchase Agreement
BPS	$	10,402	$	0	$	0		$	10,402		$	(10,642	)	$	(240	)
FICC		310		0		0			310			(316	)		(6	)
SAL		10,402		0		0			10,402			(10,649	)		(247	)
SSB		1,126		0		0			1,126			(1,152	)		(26	)
TDM		7,601		0		0			7,601			(7,808	)		(207	)
Master Securities Forward Transaction Agreement
BCY		0		0		(8,090	)		(8,090	)		7,986			(104	)
BPG		0		0		(31,324	)		(31,324	)		31,204			(120	)
MSC		0		0		(22,087	)		(22,087	)		22,000			(87	)
TDM		0		0		(167,856	)		(167,856	)		167,964			108
Total Borrowings and Other Financing Transactions	$	29,841	$	0	$	(229,357	)

CERTAIN TRANSFERS ACCOUNTED FOR AS SECURED BORROWINGS

Remaining Contractual Maturity of the Agreements

	Overnight and Continuous		Up to 30 days			31-90 days			Greater Than 90 days		Total
Sale-Buyback Transactions
U.S. Treasury Obligations	$	0	$	(217,164	)	$	(12,193	)	$	0	$	(229,357	)
Total Borrowings	$	0	$	(217,164	)	$	(12,193	)	$	0	$	(229,357	)
Payable for sale-buyback financing transactions											$	(229,357	)

(i) Securities with an aggregate market value of $229,153 have been pledged as collateral under the terms of the above master agreements as of December 31, 2018.

⁽¹⁾ Includes accrued interest.

⁽²⁾ Collateral is held in custody by the counterparty.

⁽³⁾ The average amount of borrowings outstanding during the period ended December 31, 2018 was $(191,599) at a weighted average interest rate of 1.964%. Average borrowings may include sale-buyback transactions and reverse repurchase agreements, if held during the period.

⁽⁴⁾ Payable for sale-buyback transactions includes $(174) of deferred price drop.

⁽⁵⁾ Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from borrowings and other financing transactions can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information regarding master netting arrangements.

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 17

Consolidated Schedule of Investments PIMCO CommodityRealReturn^® Strategy Portfolio (Cont.)

(j)  FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED

PURCHASED OPTIONS:

OPTIONS ON EXCHANGE-TRADED FUTURES CONTRACTS

Description	Strike Price		Expiration Date		# of Contracts		Notional Amount		Cost		Market Value
Put - CBOT U.S. Treasury 10-Year Note March 2019 Futures	$	106.000		02/22/2019		19	$	19	$	0	$	0
Put - CBOT U.S. Treasury 10-Year Note March 2019 Futures		106.500		02/22/2019		90		90		1		0
Put - CBOT U.S. Treasury 10-Year Note March 2019 Futures		107.000		02/22/2019		1		1		0		0
Put - CBOT U.S. Treasury 2-Year Note March 2019 Futures		103.375		02/22/2019		5		10		0		0
Call - CBOT U.S. Treasury 30-Year Bond March 2019 Futures		169.000		02/22/2019		3		3		0		0
Call - CBOT U.S. Treasury 30-Year Bond March 2019 Futures		171.000		02/22/2019		202		202		2		3
Call - CBOT U.S. Treasury 30-Year Bond March 2019 Futures		180.000		02/22/2019		1		1		0		0
Call - CBOT U.S. Treasury 30-Year Bond March 2019 Futures		185.000		02/22/2019		9		9		0		0
Put - CBOT U.S. Treasury 5-Year Note March 2019 Futures		103.750		02/22/2019		4		4		0		0
Put - CBOT U.S. Treasury 5-Year Note March 2019 Futures		104.000		02/22/2019		180		180		1		0
Call - CBOT U.S. Treasury Ultra Long-Term Bond March 2019 Futures		200.000		02/22/2019		1		1		0		0
Total Purchased Options									$	4	$	3

WRITTEN OPTIONS:

COMMODITY OPTIONS

Description	Strike Price		Expiration Date		# of Contracts		Notional Amount		Premiums (Received)			Market Value
Put - CBOT Corn July 2019 Futures	$	390.000		06/21/2019		2	$	10	$	(2	)	$	(2	)
Call - NYMEX Crude February 2019 Futures		65.000		01/16/2019		12		12		(12	)		0
Call - NYMEX Crude March 2019 Futures		58.500		02/14/2019		12		12		(13	)		(4	)
Put - NYMEX Natural Gas February 2019 Futures		3.200		01/28/2019		1		10		(1	)		(4	)
Put - NYMEX Natural Gas February 2019 Futures		3.250		01/28/2019		1		10		(1	)		(4	)
Put - NYMEX Natural Gas March 2019 Futures		2.850		02/25/2019		12		120		(15	)		(27	)
Put - NYMEX Natural Gas March 2019 Futures		3.150		02/25/2019		1		10		(2	)		(4	)
Put - NYMEX Natural Gas March 2019 Futures		3.250		02/25/2019		2		20		(5	)		(10	)
Put - NYMEX Natural Gas March 2019 Futures		3.500		02/25/2019		1		10		(4	)		(7	)
									$	(55	)	$	(62	)

OPTIONS ON EXCHANGE-TRADED FUTURES CONTRACTS

Description	Strike Price		Expiration Date		# of Contracts		Notional Amount		Premiums (Received)			Market Value
Put - CBOT U.S. Treasury 30-Year Bond February 2019 Futures	$	141.000		01/25/2019		9	$	9	$	(7	)	$	(1	)
Call - CBOT U.S. Treasury 5-Year Note February 2019 Futures		113.500		01/25/2019		26		26		(9	)		(30	)
									$	(16	)	$	(31	)
Total Written Options									$	(71	)	$	(93	)

FUTURES CONTRACTS:

LONG FUTURES CONTRACTS

Description	Expiration Month		# of Contracts		Notional Amount		Unrealized Appreciation/ (Depreciation)			Variation Margin
										Asset		Liability
90-Day Eurodollar December Futures		12/2019		2	$	487	$	(1	)	$	0	$	0
90-Day Eurodollar June Futures		06/2019		210		51,090		114			3		0
90-Day Eurodollar March Futures		03/2019		2		486		(2	)		0		0
90-Day Eurodollar September Futures		09/2019		2		487		(1	)		0		0
Brent Crude December Futures		10/2019		53		2,922		(195	)		31		0
Brent Crude December Futures		10/2020		80		4,502		(827	)		58		0
Brent Crude July Futures		05/2019		3		164		(25	)		2		0
Brent Crude March Futures		01/2019		2		108		0			2		0
Call Options Strike @ EUR 113.900 on Euro-Schatz March 2019 Futures		02/2019		27		0		0			0		0
Call Options Strike @ EUR 165.000 on Euro-OAT France Government 10-Year Bond March 2019 Futures		02/2019		85		1		0			0		0
Chicago Ethanol (Platts) February Futures		02/2019		9		478		(19	)		0		(3	)
Chicago Ethanol (Platts) January Futures		01/2019		1		52		(3	)		0		0
Cocoa May Futures		05/2019		7		171		2			1		0
Copper May Futures		05/2019		5		745		(12	)		0		0

18 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

Description	Expiration Month		# of Contracts		Notional Amount		Unrealized Appreciation/ (Depreciation)			Variation Margin
										Asset		Liability
Corn December Futures		12/2019		29	$	576	$	(3	)	$	0	$	0
Cotton No. 2 May Futures		05/2019		7		257		(20	)		0		0
Euro-Bund 10-Year Bond March Futures		03/2019		40		7,495		88			0		(9	)
Gas Oil December Futures		12/2019		4		212		(18	)		6		0
Hard Red Winter Wheat July Futures		07/2019		6		154		(8	)		0		(2	)
Hard Red Winter Wheat March Futures		03/2019		15		367		(20	)		0		(6	)
Henry Hub Natural Gas April Futures		03/2020		4		25		(1	)		0		0
Henry Hub Natural Gas August Futures		07/2020		4		25		(1	)		0		0
Henry Hub Natural Gas December Futures		11/2020		4		28		1			0		0
Henry Hub Natural Gas February Futures		01/2020		4		30		4			0		(1	)
Henry Hub Natural Gas January Futures		12/2019		4		31		4			0		(1	)
Henry Hub Natural Gas July Futures		06/2020		4		25		(1	)		0		0
Henry Hub Natural Gas June Futures		05/2020		4		25		(1	)		0		0
Henry Hub Natural Gas March Futures		02/2020		4		28		2			0		(1	)
Henry Hub Natural Gas May Futures		04/2020		4		25		(2	)		0		0
Henry Hub Natural Gas November Futures		10/2020		4		26		0			0		0
Henry Hub Natural Gas October Futures		09/2020		4		26		(1	)		0		0
Henry Hub Natural Gas September Futures		08/2020		4		25		(1	)		0		0
Lead May Futures		05/2019		4		202		2			0		0
LLS (Argus) vs. WTI Spread Calendar Swap April Futures		04/2019		1		5		1			0		0
LLS (Argus) vs. WTI Spread Calendar Swap August Futures		08/2019		1		4		1			0		0
LLS (Argus) vs. WTI Spread Calendar Swap December Futures		12/2019		1		4		0			0		0
LLS (Argus) vs. WTI Spread Calendar Swap February Futures		02/2019		1		5		1			0		0
LLS (Argus) vs. WTI Spread Calendar Swap January Futures		01/2019		1		5		1			0		0
LLS (Argus) vs. WTI Spread Calendar Swap July Futures		07/2019		1		5		1			0		0
LLS (Argus) vs. WTI Spread Calendar Swap June Futures		06/2019		1		5		1			0		0
LLS (Argus) vs. WTI Spread Calendar Swap March Futures		03/2019		1		5		1			0		0
LLS (Argus) vs. WTI Spread Calendar Swap May Futures		05/2019		1		5		1			0		0
LLS (Argus) vs. WTI Spread Calendar Swap November Futures		11/2019		1		4		0			0		0
LLS (Argus) vs. WTI Spread Calendar Swap October Futures		10/2019		1		4		0			0		0
LLS (Argus) vs. WTI Spread Calendar Swap September Futures		09/2019		1		4		0			0		0
Natural Gas February Futures		01/2019		5		147		(36	)		0		(18	)
Natural Gas March Futures		02/2020		1		28		(1	)		0		(1	)
Natural Gas March Futures		02/2021		1		27		0			0		0
Natural Gas May Futures		04/2019		29		775		(31	)		0		(31	)
Natural Gas October Futures		09/2019		18		495		5			0		(17	)
New York Harbor ULSD March Futures		02/2019		4		281		(60	)		3		0
New York Harbor ULSD May Futures		04/2019		3		209		(47	)		2		0
Nickel May Futures		05/2019		1		64		(1	)		0		0
Platinum April Futures		04/2019		4		160		0			1		0
Propane April Futures		04/2019		2		52		(14	)		0		0
Propane June Futures		06/2019		2		51		(15	)		0		0
Propane May Futures		05/2019		2		51		(14	)		0		0
Put Options Strike @ EUR 148.000 on Euro-Bund 10-Year Bond March 2019 Futures		02/2019		43		0		0			0		0
RBOB Gasoline April Futures		03/2019		3		188		(2	)		0		0
RBOB Gasoline August Futures		07/2019		2		125		(40	)		0		0
RBOB Gasoline December Futures		11/2019		1		56		(9	)		0		0
RBOB Gasoline June Futures		05/2019		3		190		(77	)		0		0
RBOB Gasoline March Futures		02/2019		16		882		(228	)		2		0
Soybean July Futures		07/2019		11		506		7			0		0
U.S. Treasury 2-Year Note March Futures		03/2019		5		1,062		7			1		0
U.S. Treasury 5-Year Note March Futures		03/2019		184		21,103		337			46		0
U.S. Treasury 10-Year Note March Futures		03/2019		72		8,785		214			29		0
Wheat December Futures		12/2019		6		163		(3	)		0		(2	)
Wheat March Futures		03/2019		4		101		(1	)		0		(2	)
White Sugar March Futures		02/2019		7		116		1			0		(2	)
White Sugar May Futures		04/2019		2		34		0			0		(1	)
WTI Crude August Futures		07/2019		8		381		(34	)		3		0
WTI Crude December Futures		11/2020		1		50		(4	)		1		0
WTI Crude December Futures		11/2024		2		106		(7	)		2		0
WTI Crude July Futures		06/2019		6		284		(34	)		2		0
WTI Crude June Futures		05/2019		18		845		(217	)		5		0
WTI Crude June Futures		05/2020		36		1,768		(386	)		32		0
WTI Crude June Futures		05/2021		16		805		(130	)		17		0
WTI Crude March Futures		02/2020		34		1,657		(374	)		26		0
WTI Crude May Futures		04/2019		5		233		(32	)		1		0
WTI Crude September Futures		08/2019		54		2,583		(737	)		26		0
WTI Crude September Futures		08/2020		4		198		(53	)		4		0
WTI Houston (Argus) vs. WTI Trade April Futures		03/2019		1		5		2			0		0
WTI Houston (Argus) vs. WTI Trade August Futures		07/2019		1		4		2			0		0
WTI Houston (Argus) vs. WTI Trade December Futures		11/2019		1		4		1			0		0

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 19

Consolidated Schedule of Investments PIMCO CommodityRealReturn^® Strategy Portfolio (Cont.)

Description	Expiration Month		# of Contracts		Notional Amount		Unrealized Appreciation/ (Depreciation)			Variation Margin
										Asset		Liability
WTI Houston (Argus) vs. WTI Trade February Futures		01/2019		1	$	5	$	2		$	0	$	0
WTI Houston (Argus) vs. WTI Trade July Futures		06/2019		1		4		2			0		0
WTI Houston (Argus) vs. WTI Trade June Futures		05/2019		1		5		2			0		0
WTI Houston (Argus) vs. WTI Trade March Futures		02/2019		1		5		2			0		0
WTI Houston (Argus) vs. WTI Trade May Futures		04/2019		1		5		2			0		0
WTI Houston (Argus) vs. WTI Trade November Futures		10/2019		1		4		1			0		0
WTI Houston (Argus) vs. WTI Trade October Futures		09/2019		1		4		1			0		0
WTI Houston (Argus) vs. WTI Trade September Futures		08/2019		1		4		2			0		0
Zinc May Futures		05/2019		3		184		0			0		0
							$	(2,934	)	$	306	$	(97	)

SHORT FUTURES CONTRACTS

Description	Expiration Month		# of Contracts		Notional Amount			Unrealized Appreciation/ (Depreciation)			Variation Margin
											Asset		Liability
90-Day Eurodollar June Futures		06/2020		208	$	(50,703	)	$	(232	)	$	0	$	(13	)
Aluminum May Futures		05/2019		6		(278	)		14			0		0
Australia Government 3-Year Note March Futures		03/2019		22		(1,739	)		(9	)		0		(2	)
Australia Government 10-Year Bond March Futures		03/2019		8		(748	)		(8	)		0		(4	)
Brent Crude April Futures		04/2019		1		(55	)		19			0		(1	)
Brent Crude August Futures		06/2019		2		(110	)		40			0		(1	)
Brent Crude December Futures		10/2021		33		(1,897	)		216			0		(24	)
Brent Crude December Futures		10/2022		4		(235	)		2			0		(3	)
Brent Crude June Futures		04/2019		73		(3,984	)		1,132			1		(42	)
Brent Crude June Futures		06/2019		1		(55	)		18			0		(1	)
Brent Crude June Futures		05/2020		22		(1,227	)		179			0		(15	)
Brent Crude June Futures		04/2021		4		(228	)		21			0		(3	)
Brent Crude March Futures		01/2020		6		(333	)		52			0		(4	)
Brent Crude May Futures		05/2019		1		(55	)		19			0		(1	)
Brent Crude September Futures		07/2019		8		(439	)		18			0		(4	)
Call Options Strike @ USD 65.000 on Brent Crude April 2019 Futures		02/2019		12		(9	)		8			0		0
Call Options Strike @ USD 70.000 on Brent Crude June 2019 Futures		04/2019		3		(3	)		3			0		0
Call Options Strike @ USD 74.000 on Brent Crude March 2019 Futures		01/2019		12		(1	)		15			0		0
Copper May Futures		05/2019		7		(461	)		16			9		0
Corn July Futures		07/2019		5		(98	)		0			0		0
Corn March Futures		03/2019		23		(431	)		(5	)		1		0
Corn May Futures		05/2019		13		(249	)		5			0		0
Corn September Futures		09/2019		7		(138	)		2			0		0
Euro-BTP Italy Government Bond March Futures		03/2019		32		(4,647	)		(103	)		0		(2	)
Euro-OAT France Government 10-Year Bond March Futures		03/2019		64		(11,058	)		(71	)		15		0
Gas Oil May Futures		05/2019		3		(154	)		1			0		(4	)
Gold 100 oz. February Futures		02/2019		6		(769	)		(29	)		1		0
Henry Hub Natural Gas April Futures		03/2021		4		(25	)		1			0		0
Henry Hub Natural Gas August Futures		07/2021		4		(25	)		1			0		0
Henry Hub Natural Gas December Futures		11/2021		4		(28	)		(2	)		0		0
Henry Hub Natural Gas February Futures		01/2021		4		(28	)		(2	)		0		0
Henry Hub Natural Gas January Futures		12/2020		4		(29	)		(3	)		0		0
Henry Hub Natural Gas July Futures		06/2021		4		(25	)		1			0		0
Henry Hub Natural Gas June Futures		05/2021		4		(25	)		1			0		0
Henry Hub Natural Gas March Futures		02/2021		4		(27	)		(1	)		0		0
Henry Hub Natural Gas May Futures		04/2021		4		(24	)		2			0		0
Henry Hub Natural Gas November Futures		10/2021		4		(26	)		0			0		0
Henry Hub Natural Gas October Futures		09/2021		4		(25	)		1			0		0
Henry Hub Natural Gas September Futures		08/2021		4		(25	)		1			0		0
Japan Government 10-Year Bond March Futures		03/2019		4		(5,565	)		(26	)		2		(6	)
Natural Gas April Futures		03/2019		25		(671	)		40			31		0
Natural Gas April Futures		03/2021		1		(25	)		0			0		0
Natural Gas January Futures		12/2019		6		(184	)		0			5		0
Natural Gas March Futures		02/2019		27		(770	)		166			77		0
New York Harbor ULSD June Futures		05/2019		2		(140	)		14			0		(1	)
Put Options Strike @ USD 55.000 on Brent Crude June 2019 Futures		04/2019		1		(5	)		(3	)		1		0
Put Options Strike @ USD 57.000 on Brent Crude June 2019 Futures		04/2019		2		(13	)		(8	)		0		0
RBOB Gasoline February Futures		01/2019		5		(273	)		0			0		0
RBOB Gasoline May Futures		04/2019		1		(63	)		5			0		0
Silver March Futures		03/2019		1		(78	)		(4	)		0		(1	)
Soybean May Futures		05/2019		6		(272	)		1			0		0
Soybean November Futures		11/2019		19		(888	)		(5	)		1		0
Sugar No. 11 March Futures		02/2019		8		(108	)		(3	)		3		0
Sugar No. 11 May Futures		04/2019		15		(203	)		13			6		0

20 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

Description	Expiration Month		# of Contracts		Notional Amount			Unrealized Appreciation/ (Depreciation)			Variation Margin
											Asset		Liability
U.S. Treasury 10-Year Ultra March Futures		03/2019		35	$	(4,553	)	$	(147	)	$	0	$	(16	)
U.S. Treasury 30-Year Bond March Futures		03/2019		215		(31,390	)		(1,398	)		0		(101	)
U.S. Treasury Ultra Long-Term Bond March Futures		03/2019		1		(161	)		(8	)		0		(1	)
United Kingdom Long Gilt March Futures		03/2019		137		(21,508	)		(178	)		23		(70	)
Wheat July Futures		07/2019		8		(207	)		9			3		0
Wheat May Futures		05/2019		9		(230	)		9			4		0
Wheat September Futures		09/2019		6		(158	)		4			2		0
WTI Brent Financial April Futures		04/2019		2		(16	)		(2	)		0		(1	)
WTI Brent Financial August Futures		08/2019		2		(14	)		(1	)		0		0
WTI Brent Financial December Futures		12/2019		2		(14	)		0			0		0
WTI Brent Financial February Futures		02/2019		2		(16	)		(3	)		0		(1	)
WTI Brent Financial January Futures		01/2019		2		(17	)		(3	)		0		(1	)
WTI Brent Financial July Futures		07/2019		2		(14	)		(1	)		0		0
WTI Brent Financial June Futures		06/2019		2		(15	)		(1	)		0		0
WTI Brent Financial March Futures		03/2019		2		(16	)		(3	)		0		(1	)
WTI Brent Financial May Futures		05/2019		2		(15	)		(2	)		0		(1	)
WTI Brent Financial November Futures		11/2019		2		(14	)		0			0		0
WTI Brent Financial October Futures		10/2019		2		(14	)		0			0		0
WTI Brent Financial September Futures		09/2019		2		(14	)		0			0		0
WTI Crude April Futures		03/2019		6		(276	)		36			0		(1	)
WTI Crude December Futures		11/2019		106		(5,128	)		1,343			0		(65	)
WTI Crude December Futures		11/2020		40		(1,993	)		408			0		(41	)
WTI Crude December Futures		11/2021		4		(204	)		1			0		(4	)
WTI Crude December Futures		11/2022		2		(104	)		6			0		(2	)
WTI Crude December Futures		11/2023		2		(105	)		9			0		(2	)
WTI Crude February Futures		01/2019		3		(136	)		20			0		0
WTI Crude January Futures		12/2019		2		(97	)		8			0		(1	)
WTI Crude June Futures		05/2019		19		(892	)		150			0		(6	)
WTI Crude March Futures		02/2019		1		(46	)		2			0		0
WTI Crude November Futures		10/2019		3		(145	)		17			0		(2	)
								$	1,788		$	185	$	(449	)
Total Futures Contracts								$	(1,146	)	$	491	$	(546	)

SWAP AGREEMENTS:

CREDIT DEFAULT SWAPS ON CORPORATE ISSUES - SELL PROTECTION⁽²⁾

Reference Entity	Fixed Receive Rate			Payment Frequency		Maturity Date		Implied Credit Spread at December 31, 2018(3)			Notional Amount(4)			Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)		Market Value(5)			Variation Margin
																						Asset		Liability
Daimler AG		1.000	%		Quarterly		12/20/2020		0.442	%		EUR	130	$	2		$	0	$	2		$	0	$	0
Deutsche Bank AG		1.000			Quarterly		12/20/2019		1.450				100		(1	)		0		(1	)		0		0
General Electric Co.		1.000			Quarterly		12/20/2020		1.653			$	100		(3	)		2		(1	)		0		0
General Electric Co.		1.000			Quarterly		12/20/2023		2.039				200		(11	)		2		(9	)		0		0
														$	(13	)	$	4	$	(9	)	$	0	$	0

CREDIT DEFAULT SWAPS ON CREDIT INDICES - BUY PROTECTION⁽¹⁾

Index/Tranches	Fixed (Pay) Rate			Payment Frequency		Maturity Date		Notional Amount(4)			Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Market Value(5)			Variation Margin
																				Asset		Liability
CDX.HY-31 5-Year Index		(5.000	)%		Quarterly		12/20/2023		$	2,900	$	(207	)	$	143		$	(64	)	$	0	$	(5	)
iTraxx Europe Main 26 5-Year Index		(1.000	)		Quarterly		12/20/2021		EUR	2,000		(35	)		(1	)		(36	)		0		(3	)
iTraxx Europe Main 28 5-Year Index		(1.000	)		Quarterly		12/20/2022			5,500		(156	)		72			(84	)		0		(10	)
											$	(398	)	$	214		$	(184	)	$	0	$	(18	)

INTEREST RATE SWAPS

Pay/Receive Floating Rate	Floating Rate Index	Fixed Rate			Payment Frequency		Maturity Date		Notional Amount			Premiums Paid/(Received)		Unrealized Appreciation/ (Depreciation)		Market Value		Variation Margin
																		Asset		Liability
Receive	1-Day  USD-Federal Funds Rate Compounded-OIS		2.000	%		Annual		12/15/2047		$	1,420	$	4	$	152	$	156	$	0	$	(3	)
Receive	1-Day  USD-Federal Funds Rate Compounded-OIS		2.428			Annual		12/20/2047			300		1		6		7		0		(1	)

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 21

Consolidated Schedule of Investments PIMCO CommodityRealReturn^® Strategy Portfolio (Cont.)

Pay/Receive Floating Rate	Floating Rate Index	Fixed Rate			Payment Frequency	Maturity Date		Notional Amount			Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Market Value			Variation Margin
																				Asset		Liability
Receive	1-Day  USD-Federal Funds Rate Compounded-OIS		2.478	%	Annual		12/20/2047		$	693	$	4		$	4		$	8		$	0	$	(2	)
Receive	1-Day  USD-Federal Funds Rate Compounded-OIS		2.499		Annual		12/20/2047			290		1			1			2			0		(1	)
Receive	3-Month  NZD-BBR		3.250		Semi-Annual		03/21/2028		NZD	1,000		3			(45	)		(42	)		0		(2	)
Pay	3-Month  USD-LIBOR		2.250		Semi-Annual		12/16/2022		$	25,700		1,518			(1,837	)		(319	)		38		0
Pay	3-Month  USD-LIBOR		2.250		Semi-Annual		12/20/2022			6,000		8			(82	)		(74	)		9		0
Pay	3-Month  USD-LIBOR		2.000		Semi-Annual		06/20/2023			13,100		(506	)		185			(321	)		23		0
Pay	3-Month  USD-LIBOR		2.678		Semi-Annual		10/25/2023			1,700		0			8			8			3		0
Pay	3-Month  USD-LIBOR		2.670		Semi-Annual		11/19/2023			2,000		0			9			9			4		0
Pay	3-Month  USD-LIBOR		2.681		Semi-Annual		12/12/2023			2,000		0			9			9			4		0
Pay	3-Month  USD-LIBOR		2.500		Semi-Annual		12/19/2023			3,200		(26	)		13			(13	)		6		0
Receive(6)	3-Month  USD-LIBOR		2.400		Semi-Annual		03/16/2026			1,750		9			9			18			0		(5	)
Receive(6)	3-Month  USD-LIBOR		2.300		Semi-Annual		04/21/2026			4,700		(20	)		90			70			0		(14	)
Receive(6)	3-Month  USD-LIBOR		2.300		Semi-Annual		04/27/2026			5,700		59			27			86			0		(16	)
Receive(6)	3-Month  USD-LIBOR		1.850		Semi-Annual		07/20/2026			6,100		(42	)		260			218			0		(17	)
Receive(6)	3-Month  USD-LIBOR		1.850		Semi-Annual		07/27/2026			2,000		(3	)		75			72			0		(6	)
Receive(6)	3-Month  USD-LIBOR		2.000		Semi-Annual		07/27/2026			8,800		205			52			257			0		(25	)
Receive	3-Month  USD-LIBOR		1.750		Semi-Annual		12/21/2026			5,070		(102	)		434			332			0		(16	)
Receive(6)	3-Month  USD-LIBOR		3.100		Semi-Annual		04/17/2028			8,140		(25	)		(67	)		(92	)		0		(17	)
Receive	3-Month  USD-LIBOR		2.250		Semi-Annual		06/20/2028			2,600		144			(46	)		98			0		(10	)
Receive	3-Month  USD-LIBOR		2.765		Semi-Annual		07/18/2028			4,350		50			(102	)		(52	)		0		(17	)
Receive(6)	3-Month  USD-LIBOR		3.134		Semi-Annual		09/13/2028			7,700		0			(86	)		(86	)		0		(15	)
Receive	3-Month  USD-LIBOR		2.750		Semi-Annual		12/20/2047			2,666		127			(65	)		62			0		(15	)
Receive	3-Month  USD-LIBOR		2.150		Semi-Annual		06/19/2048			480		48			23			71			0		(3	)
Receive	3-Month  USD-LIBOR		2.500		Semi-Annual		06/20/2048			2,380		286			(107	)		179			0		(13	)
Receive	3-Month  USD-LIBOR		2.969		Semi-Annual		10/25/2048			310		0			(7	)		(7	)		0		(2	)
Receive	3-Month  USD-LIBOR		2.951		Semi-Annual		11/19/2048			300		0			(6	)		(6	)		0		(2	)
Receive	3-Month  USD-LIBOR		2.953		Semi-Annual		12/12/2048			300		0			(6	)		(6	)		0		(2	)
Receive	3-Month  USD-LIBOR		2.750		Semi-Annual		12/19/2048			200		5			0			5			0		(1	)
Receive	3-Month  USD-LIBOR		3.000		Semi-Annual		12/19/2048			1,700		102			(151	)		(49	)		0		(10	)
Receive(6)	6-Month  GBP-LIBOR		1.500		Semi-Annual		03/20/2029		GBP	2,770		45			(64	)		(19	)		0		(13	)
Receive(6)	6-Month  GBP-LIBOR		1.750		Semi-Annual		03/20/2049			3,010		(90	)		(108	)		(198	)		0		(34	)
Receive	6-Month  JPY-LIBOR		0.300		Semi-Annual		09/20/2027		JPY	263,000		(5	)		(32	)		(37	)		0		0
Receive	6-Month  JPY-LIBOR		0.300		Semi-Annual		03/20/2028			70,000		(1	)		(8	)		(9	)		0		0
Receive(6)	6-Month  JPY-LIBOR		0.450		Semi-Annual		03/20/2029			230,000		(12	)		(42	)		(54	)		0		(1	)
Pay	28-Day  MXN-TIIE		9.182		Lunar		11/28/2028		MXN	24,200		0			30			30			8		0
Receive	CPTFEMU		1.535		Maturity		06/15/2023		EUR	1,040		0			20			20			1		0
Receive	CPTFEMU		1.535		Maturity		03/15/2028			700		0			17			17			1		0
Receive	CPTFEMU		1.620		Maturity		05/15/2028			960		0			31			31			2		0
Pay	CPTFEMU		1.710		Maturity		03/15/2033			400		(1	)		(15	)		(16	)		0		(1	)
Receive	CPTFEMU		1.796		Maturity		11/15/2038			650		0			26			26			2		0
Receive	CPTFEMU		1.808		Maturity		11/15/2038			600		0			25			25			2		0
Receive	CPTFEMU		1.946		Maturity		03/15/2048			400		1			23			24			2		0
Receive	CPTFEMU		1.945		Maturity		11/15/2048			160		0			9			9			1		0
Receive	CPTFEMU		1.950		Maturity		11/15/2048			240		1			13			14			1		0
Pay	CPURNSA		2.070		Maturity		03/23/2019		$	12,800		1			(78	)		(77	)		0		(4	)
Pay	CPURNSA		1.980		Maturity		04/10/2019			2,140		0			(14	)		(14	)		1		0
Pay	CPURNSA		1.970		Maturity		04/27/2019			7,920		0			(54	)		(54	)		17		0
Pay	CPURNSA		1.925		Maturity		05/08/2019			1,170		0			(7	)		(7	)		3		0
Pay	CPURNSA		2.168		Maturity		07/15/2020			2,000		0			(21	)		(21	)		2		0
Pay	CPURNSA		2.027		Maturity		11/23/2020			1,500		0			(10	)		(10	)		0		0
Pay	CPURNSA		2.021		Maturity		11/25/2020			1,500		0			(10	)		(10	)		0		0
Pay	CPURNSA		1.550		Maturity		07/26/2021			1,100		37			(18	)		19			1		0
Pay	CPURNSA		1.603		Maturity		09/12/2021			770		23			(13	)		10			0		0
Pay	CPURNSA		2.069		Maturity		07/15/2022			700		0			(6	)		(6	)		0		0
Pay	CPURNSA		2.210		Maturity		02/05/2023			3,970		0			(76	)		(76	)		0		(4	)
Pay	CPURNSA		2.263		Maturity		04/27/2023			2,120		0			(52	)		(52	)		0		(1	)
Pay	CPURNSA		2.263		Maturity		05/09/2023			630		0			(15	)		(15	)		0		0
Pay	CPURNSA		2.281		Maturity		05/10/2023			960		0			(25	)		(25	)		0		(2	)
Receive	CPURNSA		1.730		Maturity		07/26/2026			1,100		(59	)		33			(26	)		1		0
Receive	CPURNSA		1.762		Maturity		08/30/2026			1,900		(93	)		59			(34	)		2		0
Receive	CPURNSA		1.800		Maturity		09/12/2026			600		(6	)		(3	)		(9	)		1		0
Receive	CPURNSA		1.801		Maturity		09/12/2026			770		(36	)		24			(12	)		1		0
Receive	CPURNSA		1.805		Maturity		09/12/2026			700		(32	)		22			(10	)		1		0
Receive	CPURNSA		1.780		Maturity		09/15/2026			500		(24	)		15			(9	)		1		0
Receive	CPURNSA		2.102		Maturity		07/20/2027			1,800		0			21			21			3		0
Receive	CPURNSA		2.080		Maturity		07/25/2027			1,300		0			12			12			2		0
Receive	CPURNSA		2.122		Maturity		08/01/2027			1,900		0			24			24			3		0
Receive	CPURNSA		2.180		Maturity		09/20/2027			650		0			11			11			1		0
Receive	CPURNSA		2.150		Maturity		09/25/2027			600		0			8			8			1		0

22 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

Pay/Receive Floating Rate	Floating Rate Index	Fixed Rate			Payment Frequency	Maturity Date		Notional Amount			Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Market Value			Variation Margin
																				Asset		Liability
Receive	CPURNSA		2.155	%	Maturity		10/17/2027		$	1,400	$	0		$	20		$	20		$	3	$	0
Receive	CPURNSA		2.335		Maturity		02/05/2028			2,010		4			70			74			5		0
Receive	CPURNSA		2.353		Maturity		05/09/2028			630		0			25			25			1		0
Receive	CPURNSA		2.360		Maturity		05/09/2028			950		0			39			39			2		0
Receive	CPURNSA		2.364		Maturity		05/10/2028			960		0			39			39			2		0
Receive	CPURNSA		2.370		Maturity		06/06/2028			1,800		0			72			72			3		0
Pay	FRCPXTOB		1.000		Maturity		04/15/2020		EUR	170		0			(1	)		(1	)		0		0
Pay	FRCPXTOB		1.160		Maturity		08/15/2020			70		0			(1	)		(1	)		0		0
Pay	FRCPXTOB		1.345		Maturity		06/15/2021			800		0			(12	)		(12	)		0		(1	)
Receive	FRCPXTOB		1.350		Maturity		01/15/2023			1,200		0			24			24			2		0
Receive	FRCPXTOB		1.575		Maturity		01/15/2028			450		0			18			18			1		0
Receive	FRCPXTOB		1.590		Maturity		02/15/2028			1,970		0			82			82			6		0
Receive	FRCPXTOB		1.606		Maturity		02/15/2028			300		0			13			13			1		0
Receive	FRCPXTOB		1.618		Maturity		07/15/2028			820		0			35			35			2		0
Receive	FRCPXTOB		1.910		Maturity		01/15/2038			390		1			30			31			1		0
Receive	UKRPI		3.513		Maturity		09/15/2028		GBP	700		0			(3	)		(3	)		5		0
Receive	UKRPI		3.578		Maturity		11/15/2028			1,510		0			9			9			12		0
Receive	UKRPI		3.595		Maturity		11/15/2028			340		0			3			3			3		0
Receive	UKRPI		3.603		Maturity		11/15/2028			660		0			7			7			5		0
Receive	UKRPI		3.633		Maturity		12/15/2028			700		0			10			10			5		0
Receive	UKRPI		3.190		Maturity		04/15/2030			1,300		(73	)		15			(58	)		11		0
Receive	UKRPI		3.350		Maturity		05/15/2030			2,900		(38	)		18			(20	)		27		0
Receive	UKRPI		3.400		Maturity		06/15/2030			2,500		35			(32	)		3			23		0
Receive	UKRPI		3.530		Maturity		10/15/2031			140		4			(5	)		(1	)		1		0
Receive	UKRPI		3.470		Maturity		09/15/2032			4,710		2			(90	)		(88	)		52		0
Receive	UKRPI		3.579		Maturity		10/15/2033			400		0			4			4			5		0
Receive	UKRPI		3.358		Maturity		04/15/2035			300		(7	)		0			(7	)		4		0
Pay	UKRPI		3.585		Maturity		10/15/2046			640		(51	)		12			(39	)		0		(19	)
Pay	UKRPI		3.428		Maturity		03/15/2047			1,620		93			(3	)		90			0		(46	)
											$	1,569		$	(1,100	)	$	469		$	330	$	(341	)
Total Swap Agreements											$	1,158		$	(882	)	$	276		$	330	$	(359	)

FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED SUMMARY

The following is a summary of the market value and variation margin of Exchange-Traded or Centrally Cleared Financial Derivative Instruments as of December 31, 2018:

	Financial Derivative Assets								Financial Derivative Liabilities
	Market Value		Variation Margin Asset(7)				Total		Market Value		Variation Margin Liability				Total
	Purchased Options		Futures		Swap Agreements				Written Options		Futures		Swap Agreements
Total Exchange-Traded or Centrally Cleared	$	3	$	492	$	330	$	825	$	(93)	$	(546)	$	(359)	$	(998)

(k) Securities with an aggregate market value of $1,825 and cash of $3408 have been pledged as collateral for exchange-traded and centrally cleared financial derivative instruments as of December 31, 2018.

⁽¹⁾ If the Portfolio is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽²⁾ If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽³⁾ Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on sovereign issues as of period end serve as indicators of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

⁽⁴⁾ The maximum potential amount the Portfolio could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

⁽⁵⁾ The prices and resulting values for credit default swap agreements serve as indicators of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced indices’ credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

⁽⁶⁾ This instrument has a forward starting effective date. See Note 2, Securities Transactions and Investment Income, in the Notes to Financial Statements for further information.

⁽⁷⁾ Unsettled variation margin asset of $1 for closed future agreements is outstanding at period end.

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 23

Consolidated Schedule of Investments PIMCO CommodityRealReturn^® Strategy Portfolio (Cont.)

(l)  FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER

FORWARD FOREIGN CURRENCY CONTRACTS:

Counterparty	Settlement Month		Currency to be Delivered		Currency to be Received		Unrealized Appreciation/ (Depreciation)
							Asset		Liability
BOA		01/2019	ARS	8,446	$	208	$	0	$	(13	)
		01/2019	EUR	8,496		9,700		0		(41	)
BPS		01/2019	BRL	14,078		3,798		165		0
		01/2019	JPY	12,600		112		0		(3	)
		01/2019	$	58	ARS	2,343		3		0
		01/2019		3,630	BRL	14,078		3		(1	)
CBK		01/2019	AUD	6,946	$	5,088		195		0
		01/2019	BRL	3,905		1,027		20		0
		01/2019	CAD	3,686		2,797		97		0
		01/2019	GBP	339		434		2		0
		01/2019	NZD	2,666		1,847		57		0
		01/2019	$	1,008	BRL	3,905		0		0
		02/2019	JPY	365,000	$	3,236		0		(101	)
		02/2019	$	704	COP	2,249,441		0		(13	)
		03/2019	KRW	835,238	$	745		0		(7	)
DUB		01/2019	BRL	5,516		1,425		2		0
		01/2019	$	1,433	BRL	5,517		0		(9	)
		02/2019	BRL	5,517	$	1,430		9		0
		02/2019	$	1,069	BRL	4,146		0		(1	)
FBF		04/2019	CNH	6,153	$	877		0		(19	)
GLM		01/2019	BRL	5,245		1,351		0		(3	)
		01/2019	CAD	300		227		7		0
		01/2019	GBP	7,424		9,489		26		(3	)
		01/2019	$	3	ARS	120		0		0
		01/2019		1,358	BRL	5,245		1		(5	)
		01/2019		1,354	EUR	1,189		9		0
		01/2019		728	RUB	48,210		0		(38	)
		03/2019		515	IDR	7,572,726		5		0
		04/2019	BRL	1,110	$	284		0		0
HUS		01/2019	MXN	3,040		160		5		0
		01/2019	$	29	ARS	1,147		1		0
		02/2019	JPY	365,000	$	3,249		0		(88	)
		02/2019	$	14	ARS	581		0		0
IND		01/2019		1,137	JPY	128,900		39		0
JPM		01/2019	BRL	16,501	$	4,443		186		0
		01/2019	$	90	ARS	3,488		2		0
		01/2019		4,229	BRL	16,501		29		0
		04/2019		885	CNH	6,108		4		0
MSB		01/2019	BRL	12,327	$	3,178		1		(3	)
		01/2019	$	3,208	BRL	12,327		14		(42	)
		02/2019		280		1,099		3		0
MYI		01/2019	CAD	500	$	377		11		0
SCX		01/2019	BRL	7,000		1,876		70		0
		01/2019	CAD	4,100		3,107		103		0
		01/2019	$	1,793	BRL	7,000		13		0
		01/2019		386	GBP	305		3		0
SSB		03/2019	SGD	522	$	382		0		(2	)
		03/2019	TWD	11,623		380		0		(3	)
Total Forward Foreign Currency Contracts							$	1,085	$	(395	)

PURCHASED OPTIONS:

CREDIT DEFAULT SWAPTIONS ON CREDIT INDICES

Counterparty	Description	Buy/Sell Protection	Exercise Rate	Expiration Date		Notional Amount		Cost		Market Value
BPS	Put - OTC CDX.IG-31 5-Year Index	Buy	1.750%		01/16/2019	$	19,500		$    2	$	0
FBF	Put - OTC CDX.IG-31 5-Year Index	Buy	1.600		02/20/2019		2,900		1		1
GST	Put - OTC CDX.IG-31 5-Year Index	Buy	2.000		02/20/2019		2,700		0		0
									$    3	$	1

24 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

OPTIONS ON SECURITIES

Counterparty	Description	Strike Price		Expiration Date		Notional Amount			Cost		Market Value
DUB	Put - OTC Fannie Mae, TBA 4.000% due 02/01/2049	$	71.000		02/06/2019		$	3,100	$	0	$	0
FAR	Call - OTC Fannie Mae, TBA 3.000% due 02/01/2049		108.500		02/06/2019			6,600		0		0
	Put - OTC Fannie Mae, TBA 3.500% due 01/01/2049		72.000		01/07/2019			8,380		0		0
	Put - OTC Fannie Mae, TBA 4.000% due 01/01/2049		75.500		01/07/2019			20,000		1		0
JPM	Put - OTC Fannie Mae, TBA 3.500% due 01/01/2049		69.000		01/07/2019			19,030		1		0
									$	2	$	0
Total Purchased Options									$	5	$	1

WRITTEN OPTIONS:

CREDIT DEFAULT SWAPTIONS ON CREDIT INDICES

Counterparty	Description	Buy/Sell Protection	Exercise Rate	Expiration Date		Notional Amount		Premiums (Received)			Market Value
BOA	Put - OTC CDX.IG-31 5-Year Index	Sell	0.850%		01/16/2019	$	1,000		$    (1	)	$	(3	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	0.900		01/16/2019		1,600		(2	)		(3	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	0.950		02/20/2019		900		(2	)		(2	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.000		02/20/2019		1,200		(3	)		(3	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.100		02/20/2019		500		(1	)		(1	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.000		03/20/2019		900		(2	)		(3	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.200		03/20/2019		1,300		(1	)		(2	)
BPS	Put - OTC CDX.IG-31 5-Year Index	Sell	1.000		02/20/2019		800		(1	)		(2	)
BRC	Put - OTC CDX.IG-31 5-Year Index	Sell	1.000		01/16/2019		800		(1	)		0
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.050		02/20/2019		700		(1	)		(1	)
CBK	Put - OTC CDX.IG-31 5-Year Index	Sell	0.950		01/16/2019		800		(1	)		(1	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.000		01/16/2019		3,600		(3	)		(2	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	0.950		02/20/2019		1,600		(3	)		(5	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.050		02/20/2019		500		(1	)		(1	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.100		02/20/2019		400		0			(1	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.050		03/20/2019		800		(1	)		(2	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.100		03/20/2019		700		(2	)		(2	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.200		03/20/2019		900		(1	)		(1	)
GST	Put - OTC CDX.IG-31 5-Year Index	Sell	0.900		01/16/2019		1,500		(2	)		(2	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.100		02/20/2019		500		0			(1	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	2.400		09/18/2019		900		(2	)		(2	)
	Put - OTC iTraxx Europe 30 5-Year Index	Sell	2.400		09/18/2019	EUR	300		(1	)		0
JPM	Put - OTC CDX.IG-31 5-Year Index	Sell	0.950		02/20/2019	$	800		(1	)		(2	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.200		03/20/2019		700		(1	)		(1	)
MYC	Put - OTC CDX.IG-31 5-Year Index	Sell	0.900		01/16/2019		800		(1	)		(1	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.100		02/20/2019		900		(1	)		(1	)
									$    (36	)	$	(45	)

FOREIGN CURRENCY OPTIONS

Counterparty	Description	Strike Price		Expiration Date		Notional Amount			Premiums (Received)			Market Value
HUS	Put - OTC EUR versus USD	$	1.100		02/13/2019		EUR	1,305	$	(8	)	$	(1	)

INFLATION-CAPPED OPTIONS

Counterparty	Description	Initial Index		Floating Rate	Expiration Date(1)		Notional Amount			Premiums (Received)			Market Value
CBK	Floor - OTC CPURNSA		216.687	Maximum of [(1 + 0.000%)10 - (Final Index/Initial Index)] or 0		04/07/2020		$	12,100	$	(108	)	$	0
	Floor - OTC CPURNSA		217.965	Maximum of [(1 + 0.000%)10 - (Final Index/Initial Index)] or 0		09/29/2020			1,000		(13	)		0
GLM	Cap - OTC CPALEMU		100.151	Maximum of [(Final Index/Initial Index - 1) - 3.000%] or 0		06/22/2035		EUR	1,200		(54	)		(4	)
JPM	Cap - OTC CPURNSA		234.781	Maximum of [(Final Index/Initial Index - 1) - 4.000%] or 0		05/16/2024		$	600		(4	)		0
	Floor - OTC YOY CPURNSA		234.812	Maximum of [0.000% - (Final Index/Initial Index - 1)] or 0		03/24/2020			4,600		(52	)		(2	)
	Floor - OTC YOY CPURNSA		238.654	Maximum of [0.000% - (Final Index/Initial Index - 1)] or 0		10/02/2020			2,000		(37	)		(2	)
										$	(268	)	$	(8	)

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 25

Consolidated Schedule of Investments PIMCO CommodityRealReturn^® Strategy Portfolio (Cont.)

INTEREST RATE-CAPPED OPTIONS

Counterparty	Description	Exercise Rate		Floating Rate Index	Expiration Date		Notional Amount		Premiums (Received)			Market Value
MYC	Call - OTC 1-Year Interest Rate Floor(2)		0.000%	10-Year USD-ISDA - 2-Year USD-ISDA		01/02/2020	$	29,700	$	(23	)	$	(15	)
Total Written Options									$	(335	)	$	(69	)

SWAP AGREEMENTS:

COMMODITY FORWARD SWAPS

Counterparty	Pay/Receive	Underlying Reference Commodity	Fixed Price Per Unit		Payment Frequency		Maturity Date	# of Units		Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Swap Agreements, at Value
																Asset		Liability
BPS	Receive	EURMARGIN CAL20	$	10.000		Maturity	12/31/2020		6,000	$	(9	)	$	(2	)	$	0	$	(11	)
	Pay	EURMARGIN 1Q19		6.640		Maturity	03/31/2019		600		0			0			0		0
	Receive	EURMARGIN 4Q19		6.080		Maturity	12/31/2019		300		0			(1	)		0		(1	)
	Receive	NAPGASFO 1Q19		8.700		Maturity	03/31/2019		2,700		(4	)		(6	)		0		(10	)
	Receive	PLATGOLD N9		410.750		Maturity	07/09/2019		300		0			(23	)		0		(23	)
CBK	Receive	MEHMID CAL20		1.840		Maturity	12/31/2021		4,800		0			5			5		0
GST	Receive	CBOT Corn December Futures		398.500		Maturity	11/22/2019		15,000		0			0			0		0
	Receive	CBOT Corn December Futures		398.750		Maturity	11/22/2019		10,000		0			0			0		0
	Receive	CBOT Corn December Futures		402.250		Maturity	11/22/2019		40,000		0			(2	)		0		(2	)
	Receive	CBOT Corn December Futures		403.250		Maturity	11/22/2019		20,000		0			(1	)		0		(1	)
	Pay	CBOT Wheat July Futures		5.240		Maturity	06/21/2019		20,000		0			1			1		0
	Pay	CBOT Wheat March Futures		5.110		Maturity	02/22/2019		10,000		0			1			1		0
	Pay	CBOT Wheat March Futures		5.151		Maturity	02/22/2019		35,000		0			4			4		0
	Pay	CBOT Wheat March Futures		5.210		Maturity	02/22/2019		10,000		0			2			2		0
	Pay	CBOT Wheat March Futures		5.275		Maturity	02/22/2019		25,000		0			6			6		0
	Receive	COCL CAL19		5.300		Maturity	12/31/2019		2,400		0			(5	)		0		(5	)
	Receive	EURMARGIN 1Q19		6.040		Maturity	03/31/2019		600		0			0			0		0
	Receive	EURMARGIN 4Q19		5.415		Maturity	12/31/2019		1,500		0			(1	)		0		(1	)
	Receive	EURMARGIN CAL19		7.050		Maturity	12/31/2019		6,000		0			(7	)		0		(7	)
	Receive	MEHCL CAL19		2.650		Maturity	12/31/2019		2,200		0			4			4		0
	Receive	NAPGASFO 1Q19		8.050		Maturity	03/31/2019		2,400		(3	)		(5	)		0		(8	)
JPM	Receive	CBOT Corn December Futures		398.375		Maturity	11/22/2019		10,000		0			0			0		0
	Receive	CBOT Corn December Futures		398.500		Maturity	11/22/2019		5,000		0			0			0		0
	Pay	CBOT Soybean November Futures		953.688		Maturity	10/25/2019		20,000		0			4			4		0
	Pay	CBOT Wheat March Futures		5.070		Maturity	02/22/2019		15,000		0			1			1		0
	Pay	CBOT Wheat March Futures		5.083		Maturity	02/22/2019		10,000		0			1			1		0
	Receive	EURMARGIN CAL20		9.900		Maturity	12/31/2020		1,200		0			(2	)		0		(2	)
	Receive	EURMARGIN 4Q19		5.350		Maturity	12/31/2019		300		0			0			0		0
	Receive	EURMARGIN CAL19		6.750		Maturity	12/31/2019		2,400		(1	)		(1	)		0		(2	)
	Pay	EURSIMP 1Q19		5.000		Maturity	03/31/2019		600		0			0			0		0
	Receive	KCBT Wheat March Futures		5.104		Maturity	02/22/2019		10,000		0			(2	)		0		(2	)
	Receive	NAPGASFO 1Q19		5.680		Maturity	03/31/2019		300		0			0			0		0
MAC	Receive	COCL CAL19		5.380		Maturity	12/31/2019		3,600		0			(8	)		0		(8	)
	Receive	EURMARGIN CAL20		8.500		Maturity	12/31/2020		6,000		0			(3	)		0		(3	)
	Receive	EURMARGIN 4Q19		5.400		Maturity	12/31/2019		900		0			(1	)		0		(1	)
	Receive	KCBT Wheat July Futures		5.155		Maturity	06/21/2019		10,000		0			0			0		0
	Receive	MEHCL CAL19		2.700		Maturity	12/31/2019		3,300		0			5			5		0
MYC	Receive	EURMARGIN CAL19		8.920		Maturity	12/31/2019		2,400		0			(4	)		0		(4	)
	Receive	EURMARGIN CAL20		8.520		Maturity	12/31/2020		1,200		0			(1	)		0		(1	)
	Receive	EURMARGIN CAL20		8.580		Maturity	12/31/2020		16,800		0			(8	)		0		(8	)
	Receive	EURMARGIN CAL20		9.970		Maturity	12/31/2020		1,200		0			(2	)		0		(2	)
	Pay	EURMARGIN 1Q19		6.150		Maturity	03/31/2019		900		0			0			0		0
	Pay	EURMARGIN 1Q19		6.200		Maturity	03/31/2019		1,200		0			0			0		0
	Receive	EURMARGIN 2H19		6.870		Maturity	12/31/2019		600		0			(1	)		0		(1	)
	Receive	EURMARGIN 2H19		6.970		Maturity	12/31/2019		600		0			(1	)		0		(1	)
	Receive	EURMARGIN 2H19		7.150		Maturity	12/31/2019		600		0			(1	)		0		(1	)
	Receive	EURMARGIN 2Q19		7.000		Maturity	06/30/2019		900		0			0			0		0
	Receive	EURMARGIN 2Q19		7.005		Maturity	06/30/2019		1,200		0			0			0		0
	Receive	EURMARGIN 4Q19		6.000		Maturity	12/31/2019		600		0			(1	)		0		(1	)
	Pay	EURSIMP 1Q19		5.000		Maturity	03/31/2019		600		0			0			0		0
										$	(17	)	$	(55	)	$	34	$	(106	)

26 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

CREDIT DEFAULT SWAPS ON SOVEREIGN ISSUES - SELL PROTECTION⁽³⁾

Counterparty	Reference Entity	Fixed Receive Rate		Payment Frequency	Maturity Date		Implied Credit Spread at December 31, 2018(4)		Notional Amount(5)		Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)		Swap Agreements, at Value(6)
																Asset		Liability
BOA	Italy Government International Bond		1.000%	Quarterly		03/20/2019		0.227%	$	1,100	$	(19	)	$	21	$	2	$	0

CREDIT DEFAULT SWAPS ON CREDIT INDICES - SELL PROTECTION⁽³⁾

Counterparty	Index/Tranches	Fixed Receive Rate			Payment Frequency		Maturity Date		Notional Amount(5)		Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)		Swap Agreements, at Value(6)
																Asset		Liability
DUB	CMBX.NA.AAA.8 Index		0.500	%		Monthly		10/17/2057	$	800	$	(42	)	$	43	$	1	$	0
GST	CMBX.NA.AAA.8 Index		0.500			Monthly		10/17/2057		300		(17	)		18		1		0
											$	(59	)	$	61	$	2	$	0

INTEREST RATE SWAPS

Counterparty	Pay/Receive Floating Rate	Floating Rate Index	Fixed Rate			Payment Frequency	Maturity Date	Notional Amount			Premiums Paid/(Received)		Unrealized Appreciation/ (Depreciation)			Swap Agreements, at Value
																Asset		Liability
BRC	Receive	1-Year  ILS-TELBOR		0.374	%	Annual	06/20/2020		ILS	2,690	$	0	$	1		$	1	$	0
	Pay	1-Year  ILS-TELBOR		1.950		Annual	06/20/2028			580		0		(1	)		0		(1	)
DUB	Pay	CPURNSA		2.500		Maturity	07/15/2022	$		1,200		10		(134	)		0		(124	)
	Pay	CPURNSA		2.560		Maturity	05/08/2023			13,100		0		(1,385	)		0		(1,385	)
GLM	Receive	1-Year  ILS-TELBOR		0.290		Annual	02/16/2020		ILS	4,990		0		1			1		0
	Receive	1-Year  ILS-TELBOR		0.270		Annual	03/21/2020			3,110		0		2			2		0
	Receive	1-Year  ILS-TELBOR		0.370		Annual	06/20/2020			2,080		0		1			1		0
	Pay	1-Year  ILS-TELBOR		1.971		Annual	02/16/2028			1,050		0		1			1		0
	Pay	1-Year  ILS-TELBOR		1.883		Annual	03/21/2028			650		0		(1	)		0		(1	)
	Pay	1-Year  ILS-TELBOR		1.998		Annual	06/20/2028			440		0		0			0		0
HUS	Receive	1-Year  ILS-TELBOR		0.370		Annual	06/20/2020			1,640		0		1			1		0
	Pay	1-Year  ILS-TELBOR		1.998		Annual	06/20/2028			350		0		0			0		0
JPM	Receive	1-Year  ILS-TELBOR		0.420		Annual	06/20/2020			2,570		0		1			1		0
	Pay	1-Year  ILS-TELBOR		2.078		Annual	06/20/2028			550		0		1			1		0
											$	10	$	(1,512	)	$	9	$	(1,511	)

TOTAL RETURN SWAPS ON COMMODITY INDICES

Counterparty	Pay/Receive(7)	Underlying Reference	# of Units		Financing Rate	Payment Frequency	Maturity Date		Notional Amount		Premiums Paid/(Received)		Unrealized Appreciation/ (Depreciation)			Swap Agreements, at Value
																Asset		Liability
BPS	Receive	BCOMF1T Index		20,831	3-Month U.S. Treasury Bill rate plus a specified spread	Monthly		02/15/2019	$	6,874	$	0	$	(301	)	$	0	$	(301	)
	Receive	BCOMTR Index		112,262	3-Month U.S. Treasury Bill rate plus a specified spread	Monthly		02/15/2019		18,742		0		(832	)		0		(832	)
	Receive	BCOMTR1 Index		27,507	3-Month U.S. Treasury Bill rate plus a specified spread	Monthly		02/15/2019		1,999		0		(89	)		0		(89	)
CBK	Receive	BCOMF1T Index		105	3-Month U.S. Treasury Bill rate plus a specified spread	Monthly		02/15/2019		35		0		(1	)		0		(1	)
	Receive	BCOMTR Index		150,958	3-Month U.S. Treasury Bill rate plus a specified spread	Monthly		02/15/2019		25,203		0		(1,118	)		0		(1,118	)
	Receive	CIXBSTR3 Index		236,898	3-Month U.S. Treasury Bill rate plus a specified spread	Monthly		02/15/2019		42,735		0		(1,872	)		0		(1,872	)
	Receive	CIXBXMB2 Index		20,129	0.170%	Monthly		02/15/2019		2,189		0		1			1		0
	Receive	CIXBXMB3 Index		18,768	0.170%	Monthly		02/15/2019		2,168		0		7			7		0
CIB	Receive	BCOMTR Index		5,671	3-Month U.S. Treasury Bill rate plus a specified spread	Monthly		02/15/2019		947		0		(42	)		0		(42	)
	Receive	PIMCODB Index		24,083	0.000%	Monthly		02/15/2019		2,378		0		(94	)		0		(94	)
FBF	Receive	BCOMTR Index		125,200	3-Month U.S. Treasury Bill rate plus a specified spread	Monthly		02/15/2019		20,903		0		(927	)		0		(927	)
GST	Receive	BCOMF1T Index		104,963	3-Month U.S. Treasury Bill rate plus a specified spread	Monthly		02/15/2019		34,636		0		(1,515	)		0		(1,515	)
	Pay	BCOMTR Index		22,381	3-Month U.S. Treasury Bill rate plus a specified spread	Monthly		02/15/2019		3,713		24		118			142		0
	Receive	CMDSKEWLS Index(10)		36,220	0.250%	Monthly		02/15/2019		5,730		0		(42	)		0		(42	)

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 27

Consolidated Schedule of Investments PIMCO CommodityRealReturn^® Strategy Portfolio (Cont.)

Counterparty	Pay/Receive(7)	Underlying Reference	# of Units		Financing Rate	Payment Frequency	Maturity Date		Notional Amount		Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Swap Agreements, at Value
																	Asset		Liability
JPM	Pay	BCOMTR Index		9,797	3-Month U.S. Treasury Bill rate plus a specified spread	Monthly		01/15/2019	$	1,636	$	0		$	72		$	72	$	0
	Receive	BCOMF1T Index		672	3-Month U.S. Treasury Bill rate plus a specified spread	Monthly		02/15/2019		222		0			(10	)		0		(10	)
	Receive	JMABCT3E Index		23,015	0.150%	Monthly		02/15/2019		2,644		0			5			5		0
	Receive	JMABDEWE Index(11)		6,393	0.300%	Monthly		02/15/2019		6,333		0			16			16		0
	Receive	JMABFNJ1 Index(12)		137,645	0.350%	Monthly		02/15/2019		13,868		(21	)		(94	)		0		(115	)
	Receive	JMABNIC2 Index(13)		18,470	0.170%	Monthly		02/15/2019		7,379		0			(285	)		0		(285	)
MAC	Receive	BCOMTR1 Index		113,048	3-Month U.S. Treasury Bill rate plus a specified spread	Monthly		02/15/2019		10,507		0			(466	)		0		(466	)
	Receive	BCOMTR2 Index		147,836	3-Month U.S. Treasury Bill rate plus a specified spread	Monthly		02/15/2019		13,015		0			(570	)		0		(570	)
	Receive	MQCP563E Index		3,643	0.950%	Monthly		02/15/2019		470		0			(1	)		0		(1	)
	Receive	PIMCODB Index		24,068	0.000%	Monthly		02/15/2019		2,378		0			(94	)		0		(94	)
MEI	Receive	BCOMTR2 Index		292,026	3-Month U.S. Treasury Bill rate plus a specified spread	Monthly		02/15/2019		36,070		0			(1,544	)		0		(1,544	)
MYC	Receive	BCOMTR Index		430,298	3-Month U.S. Treasury Bill rate plus a specified spread	Monthly		02/15/2019		71,839		0			(3,188	)		0		(3,188	)
	Receive	BCOMTR1 Index		232,041	3-Month U.S. Treasury Bill rate plus a specified spread	Monthly		02/15/2019		42,880		0			(1,903	)		0		(1,903	)
RBC	Receive	RBCAEC0T Index		50,266	3-Month U.S. Treasury Bill rate plus a specified spread	Monthly		02/15/2019		2,856		0			(126	)		0		(126	)
SOG	Receive	BCOMTR Index		2,272	3-Month U.S. Treasury Bill rate plus a specified spread	Monthly		02/15/2019		379		0			(17	)		0		(17	)
											$	3		$	(14,912	)	$	243	$	(15,152	)

VOLATILITY SWAPS

Counterparty	Pay/Receive Volatility	Reference Entity	Volatility Strike			Payment Frequency		Maturity Date	Notional Amount		Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Swap Agreements, at Value
																	Asset		Liability
GST	Pay	GOLDLNPM Index(8)		7.023	%		Maturity	07/29/2020	$	943	$	0		$	46		$	46	$	0
	Pay	GOLDLNPM Index(8)		7.840			Maturity	09/09/2020		179		0			10			10		0
JPM	Receive	GOLDLNPM Index(8)		3.861			Maturity	07/29/2020		865		0			(18	)		0		(18	)
	Receive	GOLDLNPM Index(8)		3.976			Maturity	07/29/2020		78		0			(2	)		0		(2	)
	Receive	GOLDLNPM Index(8)		4.268			Maturity	09/09/2020		179		0			(4	)		0		(4	)
MYC	Pay	GOLDLNPM Index(8)		3.294			Maturity	07/17/2019		303		0			5			5		0
	Pay	GOLDLNPM Index(8)		3.240			Maturity	07/26/2019		304		0			5			5		0
	Pay	GOLDLNPM Index(8)		3.063			Maturity	10/08/2019		314		0			4			4		0
	Pay	GOLDLNPM Index(8)		1.960			Maturity	05/12/2020		179		0			0			0		0
	Receive	SLVRLND Index(8)		3.706			Maturity	07/09/2019		260		0			0			0		0
	Receive	SLVRLND Index(8)		7.317			Maturity	07/17/2019		203		0			(7	)		0		(7	)
	Receive	SLVRLND Index(8)		7.398			Maturity	07/26/2019		202		0			(7	)		0		(7	)
	Receive	SLVRLND Index(8)		7.023			Maturity	10/08/2019		207		0			(5	)		0		(5	)
	Receive	SLVRLND Index(8)		4.580			Maturity	05/12/2020		117		0			0			0		0
SOG	Pay	GOLDLNPM Index(8)		1.782			Maturity	06/08/2020		150		0			0			0		0
	Receive	SLVRLND Index(8)		4.410			Maturity	06/08/2020		95		0			0			0		0
	Receive	SPGCICP Index(8)		4.000			Maturity	07/26/2019		50		0			0			0		0
											$	0		$	27		$	70	$	(43	)
Total Swap Agreements											$	(82	)	$	(16,370	)	$	360	$	(16,812	)

FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER SUMMARY

The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral pledged/(received) as of December 31, 2018:

	Financial Derivative Assets								Financial Derivative Liabilities
Counterparty	Forward Foreign Currency Contracts		Purchased Options		Swap Agreements		Total Over the Counter		Forward Foreign Currency Contracts			Written Options			Swap Agreements			Total Over the Counter			Net Market Value of OTC Derivatives			Collateral Pledged/ (Received)		Net Exposure(9)
BOA	$	0	$	0	$	2	$	2	$	(54	)	$	(17	)	$	0		$	(71	)	$	(69	)	$	0	$	(69	)
BPS		171		0		0		171		(4	)		(2	)		(1,267	)		(1,273	)		(1,102	)		690		(412	)
BRC		0		0		1		1		0			(1	)		(1	)		(2	)		(1	)		0		(1	)
CBK		371		0		13		384		(121	)		(15	)		(2,991	)		(3,127	)		(2,743	)		1,806		(937	)
CIB		0		0		0		0		0			0			(136	)		(136	)		(136	)		0		(136	)

28 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

	Financial Derivative Assets								Financial Derivative Liabilities
Counterparty	Forward Foreign Currency Contracts		Purchased Options		Swap Agreements		Total Over the Counter		Forward Foreign Currency Contracts			Written Options			Swap Agreements			Total Over the Counter			Net Market Value of OTC Derivatives			Collateral Pledged/ (Received)			Net Exposure(9)
DUB	$	11	$	0	$	1	$	12	$	(10	)	$	0		$	(1,509	)	$	(1,519	)	$	(1,507	)	$	1,263		$	(244	)
FBF		0		1		0		1		(19	)		0			(927	)		(946	)		(945	)		715			(230	)
GLM		48		0		5		53		(49	)		(4	)		(1	)		(54	)		(1	)		(10	)		(11	)
GST		0		0		217		217		0			(5	)		(1,581	)		(1,586	)		(1,369	)		1,481			112
HUS		6		0		1		7		(88	)		(1	)		0			(89	)		(82	)		0			(82	)
IND		39		0		0		39		0			0			0			0			39			0			39
JPM		221		0		101		322		0			(7	)		(440	)		(447	)		(125	)		555			430
MAC		0		0		5		5		0			0			(1,143	)		(1,143	)		(1,138	)		823			(315	)
MEI		0		0		0		0		0			0			(1,544	)		(1,544	)		(1,544	)		1,220			(324	)
MSB		18		0		0		18		(45	)		0			0			(45	)		(27	)		0			(27	)
MYC		0		0		14		14		0			(17	)		(5,129	)		(5,146	)		(5,132	)		228			(4,904	)
MYI		11		0		0		11		0			0			0			0			11			0			11
RBC		0		0		0		0		0			0			(126	)		(126	)		(126	)		0			(126	)
SCX		189		0		0		189		0			0			0			0			189			0			189
SOG		0		0		0		0		0			0			(17	)		(17	)		(17	)		0			(17	)
SSB		0		0		0		0		(5	)		0			0			(5	)		(5	)		0			(5	)
Total Over the Counter	$	1,085	$	1	$	360	$	1,446	$	(395	)	$	(69	)	$	(16,812	)	$	(17,276	)

(m) Securities with an aggregate market value of $13,034 have been pledged as collateral for financial derivative instruments as governed by International Swaps and Derivatives Association, Inc. master agreements as of December 31, 2018.

⁽¹⁾ YOY options may have a series of expirations.

⁽²⁾ The underlying instrument has a forward starting effective date. See Note 2, Securities Transactions and Investment Income, in the Notes to Financial Statements for further information.

⁽³⁾ If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽⁴⁾ Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on sovereign issues as of period end serve as indicators of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

⁽⁵⁾ The maximum potential amount the Portfolio could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

⁽⁶⁾ The prices and resulting values for credit default swap agreements serve as indicators of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced indices’ credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

⁽⁷⁾ Receive represents that the Portfolio receives payments for any positive net return on the underlying reference. The Portfolio makes payments for any negative net return on such underlying reference. Pay represents that the Portfolio receives payments for any negative net return on the underlying reference. The Portfolio makes payments for any positive net return on such underlying reference.

⁽⁸⁾  Variance Swap

⁽⁹⁾ Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from OTC derivatives can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 7, Principal Risks, in the Notes to Financial Statements for more information regarding master netting agreements.

⁽¹⁰⁾  The following table represents the individual positions within the total return swap as of December 31, 2018:

Referenced Commodity — Long Futures Contracts	% of Index			Notional Amount		Referenced Commodity — Short Futures Contracts	% of Index			Notional Amount
Brent Crude March Futures		10.1	%	$	579	Aluminum February Futures		5.1	%	$	290
New York Harbor ULSD February Futures		7.5			429	Live Cattle February Futures		5.3			303
RBOB Gasoline February Futures		7.4			424	NYMEX — Natural Gas February Futures		15.0			862
WTI Crude February Futures		9.6			549	Wheat March Futures		5.1			294
Total Long Futures Contracts				$	1,981	Total Short Futures Contracts				$	1,749
Cash		34.9	%	$	2,000
				$	3,981
Total Notional Amount										$	5,730

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 29

Consolidated Schedule of Investments PIMCO CommodityRealReturn^® Strategy Portfolio (Cont.)

⁽¹¹⁾  The following table represents the individual positions within the total return swap as of December 31, 2018:

Referenced Commodity — Long Futures Contracts	% of Index			Notional Amount		Referenced Commodity — Short Futures Contracts	% of Index			Notional Amount
Brent Crude March Futures		10.4	%	$	661	Aluminum February Futures		2.4	%	$	148
LME — Copper February Futures		2.3			147	Arabica Coffee March Futures		1.3			78
Nickel February Futures		2.3			148	Cocoa March Futures		1.2			78
RBOB Gasoline February Futures		4.5			286	Corn March Futures		5.9			370
Soybean Meal March Futures		5.8			366	ICE — Natural Gas February Futures		2.1			133
Soybeans March Futures		8.1			510	Lean Hogs February Futures		1.2			78
						New York Harbor ULSD February Futures		9.1			578
						NYMEX — Natural Gas February Futures		1.9			122
						Wheat March Futures		5.7			364
						Zinc February Futures		2.4			150
Total Long Futures Contracts				$	2,118	Total Short Futures Contracts				$	2,099
Cash		33.4	%	$	2,116
				$	4,234
Total Notional Amount										$	6,333

⁽¹²⁾  The following table represents the individual positions within the total return swap as of December 31, 2018:

Referenced Commodity — Long Futures Contracts	% of Index			Notional Amount		Referenced Commodity — Short Futures Contracts	% of Index			Notional Amount
Brent Crude June Futures		4.0	%	$	549	Aluminum May Futures		7.5	%	$	1,040
Cocoa May Futures		4.3			602	Corn May Futures		7.1			983
Cotton No. 02 May Futures		6.9			953	Gas Oil May Futures		4.6			638
Lead May Futures		5.8			809	Gold 100 oz. June Futures		11.1			1,540
LME — Copper May Futures		6.9			962	RBOB Gasoline May Futures		1.2			167
New York Harbor ULSD May Futures		5.9			808	Silver May Futures		1.5			205
Nickel May Futures		2.7			369	Soybeans May Futures		8.2			1,131
Platinum April Futures		3.9			546	Sugar No. 11 May Futures		5.3			740
Zinc May Futures		5.8			810	Wheat May Futures		5.9			824
						WTI Crude May Futures		1.4			192
Total Long Futures Contracts				$	6,408	Total Short Futures Contracts				$	7,460
Total Notional Amount										$	13,868

⁽¹³⁾  The following table represents the individual positions within the total return swap as of December 31, 2018:

Referenced Commodity — Long Futures Contracts	% of Index			Notional Amount
Brent Crude May Futures		16.6	%	$	1,224
Copper May Futures		8.4			616
Gold 100 oz. April Futures		13.6			1,005
Lean Hogs April Futures		1.1			79
Live Cattle April Futures		2.6			194
New York Harbor ULSD May Futures		6.7			498
Nickel May Futures		8.6			635
RBOB Gasoline May Futures		10.1			744
Silver May Futures		3.9			285
Soybean Meal May Futures		8.0			593
Soybeans May Futures		18.4			1,359
Sugar No. 11 May Futures		2.0			147
Total Long Futures Contracts				$	7,379
Total Notional Amount				$	7,379

30 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

FAIR VALUE OF FINANCIAL DERIVATIVE INSTRUMENTS

The following is a summary of the fair valuation of the Portfolio’s derivative instruments categorized by risk exposure. See Note 7, Principal Risks, in the Notes to Financial Statements on risks of the Portfolio.

Fair Values of Financial Derivative Instruments on the Consolidated Statement of Assets and Liabilities as of December 31, 2018:

	Derivatives not accounted for as hedging instruments
	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Exchange Contracts		Interest Rate Contracts		Total
Financial Derivative Instruments - Assets
Exchange-traded or centrally cleared
Purchased Options	$	0	$	0	$	0	$	0	$	3	$	3
Futures		372		0		0		0		120		492
Swap Agreements		0		0		0		0		330		330
	$	372	$	0	$	0	$	0	$	453	$	825
Over the counter
Forward Foreign Currency Contracts	$	0	$	0	$	0	$	1,085	$	0	$	1,085
Purchased Options		0		1		0		0		0		1
Swap Agreements		347		4		0		0		9		360
	$	347	$	5	$	0	$	1,085	$	9	$	1,446
	$	719	$	5	$	0	$	1,085	$	462	$	2,271
Financial Derivative Instruments - Liabilities
Exchange-traded or centrally cleared
Written Options	$	62	$	0	$	0	$	0	$	31	$	93
Futures		322		0		0		0		224		546
Swap Agreements		0		18		0		0		341		359
	$	384	$	18	$	0	$	0	$	596	$	998
Over the counter
Forward Foreign Currency Contracts	$	0	$	0	$	0	$	395	$	0	$	395
Written Options		0		45		0		1		23		69
Swap Agreements		15,301		0		0		0		1,511		16,812
	$	15,301	$	45	$	0	$	396	$	1,534	$	17,276
	$	15,685	$	63	$	0	$	396	$	2,130	$	18,274

The effect of Financial Derivative Instruments on the Consolidated Statement of Operations for the period ended December 31, 2018:

	Derivatives not accounted for as hedging instruments
	Commodity Contracts			Credit Contracts			Equity Contracts		Foreign Exchange Contracts		Interest Rate Contracts			Total
Net Realized Gain (Loss) on Financial Derivative Instruments
Exchange-traded or centrally cleared
Purchased Options	$	(47	)	$	0		$	0	$	0	$	3		$	(44	)
Written Options		253			0			0		0		231			484
Futures		(87	)		0			0		0		1,262			1,175
Swap Agreements		0			(299	)		0		0		1,975			1,676
	$	119		$	(299	)	$	0	$	0	$	3,471		$	3,291
Over the counter
Forward Foreign Currency Contracts	$	0		$	0		$	0	$	2,650	$	0		$	2,650
Purchased Options		0			0			0		5		(149	)		(144	)
Written Options		0			69			0		37		113			219
Swap Agreements		(18,292	)		82			0		0		(76	)		(18,286	)
	$	(18,292	)	$	151		$	0	$	2,692	$	(112	)	$	(15,561	)
	$	(18,173	)	$	(148	)	$	0	$	2,692	$	3,359		$	(12,270	)
Net Change in Unrealized Appreciation (Depreciation) on Financial Derivative Instruments
Exchange-traded or centrally cleared
Purchased Options	$	38		$	0		$	0	$	0	$	(4	)	$	34
Written Options		(54	)		0			0		0		(38	)		(92	)
Futures		(89	)		0			0		0		(1,456	)		(1,545	)
Swap Agreements		0			311			0		0		(488	)		(177	)
	$	(105	)	$	311		$	0	$	0	$	(1,986	)	$	(1,780	)
Over the counter
Forward Foreign Currency Contracts	$	0		$	0		$	0	$	2,034	$	0		$	2,034
Purchased Options		0			(2	)		0		0		149			147
Written Options		0			(9	)		0		6		(3	)		(6	)
Swap Agreements		(33,213	)		(80	)		0		0		(108	)		(33,401	)
	$	(33,213	)	$	(91	)	$	0	$	2,040	$	38		$	(31,226	)
	$	(33,318	)	$	220		$	0	$	2,040	$	(1,948	)	$	(33,006	)

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 31

Consolidated Schedule of Investments PIMCO CommodityRealReturn^® Strategy Portfolio (Cont.)

December 31, 2018

FAIR VALUE MEASUREMENTS

The following is a summary of the fair valuations according to the inputs used as of December 31, 2018 in valuing the Portfolio’s assets and liabilities:

Category and Subcategory	Level 1		Level 2		Level 3		Fair Value at 12/31/2018
Investments in Securities, at Value
Corporate Bonds & Notes
Banking & Finance	$	0	$	20,759	$	0	$	20,759
Industrials		0		15,914		0		15,914
Utilities		0		6,947		0		6,947
U.S. Government Agencies		0		58,550		0		58,550
U.S. Treasury Obligations		0		362,926		0		362,926
Non-Agency Mortgage-Backed Securities		0		8,082		0		8,082
Asset-Backed Securities		0		28,389		0		28,389
Sovereign Issues		0		18,778		0		18,778
Short-Term Instruments
Certificates of Deposit		0		2,401		0		2,401
Commercial Paper		0		4,175		0		4,175
Repurchase Agreements		0		29,836		0		29,836
Argentina Treasury Bills		0		179		0		179
Japan Treasury Bills		0		6,661		0		6,661
U.S. Treasury Bills		0		18,418		0		18,418
	$	0	$	582,015	$	0	$	582,015
Investments in Affiliates, at Value
Short-Term Instruments
Central Funds Used for Cash Management Purposes	$	4,763	$	0	$	0	$	4,763
Total Investments	$	4,763	$	582,015	$	0	$	586,778

Category and Subcategory	Level 1			Level 2			Level 3		Fair Value at 12/31/2018
Short Sales, at Value - Liabilities
U.S. Government Agencies	$	0		$	(6,441	)	$	0	$	(6,441	)
Financial Derivative Instruments - Assets
Exchange-traded or centrally cleared		491			333			0		824
Over the counter		0			1,446			0		1,446
	$	491		$	1,779		$	0	$	2,270
Financial Derivative Instruments - Liabilities
Exchange-traded or centrally cleared		(608	)		(390	)		0		(998	)
Over the counter		0			(17,276	)		0		(17,276	)
	$	(608	)	$	(17,666	)	$	0	$	(18,274	)
Total Financial Derivative Instruments	$	(117	)	$	(15,887	)	$	0	$	(16,004	)
Totals	$	4,646		$	559,687		$	0	$	564,333

There were no significant transfers into or out of Level 3 during the period ended December 31, 2018.

32 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

Notes to Financial Statements

December 31, 2018

1. ORGANIZATION

PIMCO Variable Insurance Trust (the “Trust”) is a Delaware statutory trust established under a trust instrument dated October 3, 1997. The Trust is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Trust is designed to be used as an investment vehicle by separate accounts of insurance companies that fund variable annuity contracts and variable life insurance policies and by qualified pension and retirement plans. Information presented in these financial statements pertains to the Institutional Class, Class M, Administrative Class and Advisor Class shares of the PIMCO CommodityRealReturn^® Strategy Portfolio (the “Portfolio”) offered by the Trust. Pacific Investment Management Company LLC (“PIMCO”) serves as the investment adviser (the “Adviser”) for the Portfolio.

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Portfolio is treated as an investment company under the reporting requirements of U.S. GAAP. The functional and reporting currency for the Portfolio is the U.S. dollar. The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

(a) Securities Transactions and Investment Income  Securities transactions are recorded as of the trade date for financial reporting purposes. Securities purchased or sold on a when-issued or delayed-delivery basis may be settled beyond a standard settlement period for the security after the trade date. Realized gains (losses) from securities sold are recorded on the identified cost basis. Dividend income is recorded on the ex-dividend date, except certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Portfolio is informed of the ex-dividend date. Interest income, adjusted for the accretion of discounts and amortization of premiums, is recorded on the accrual basis from settlement date, with the exception of securities with a forward starting effective date, where interest income is recorded on the accrual basis from effective date. For convertible securities, premiums attributable to the conversion feature are not amortized. Estimated tax liabilities on certain foreign securities are recorded on an accrual basis and are reflected as components of interest income or net change in unrealized appreciation (depreciation) on investments on the Consolidated

Statement of Operations, as appropriate. Tax liabilities realized as a result of such security sales are reflected as a component of net realized gain (loss) on investments on the Consolidated Statement of Operations. Paydown gains (losses) on mortgage-related and other asset-backed securities, if any, are recorded as components of interest income on the Consolidated Statement of Operations. Income or short-term capital gain distributions received from registered investment companies, if any, are recorded as dividend income. Long-term capital gain distributions received from registered investment companies, if any, are recorded as realized gains.

Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivable when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is probable.

(b) Foreign Currency Translation  The market values of foreign securities, currency holdings and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the current exchange rates each business day. Purchases and sales of securities and income and expense items denominated in foreign currencies, if any, are translated into U.S. dollars at the exchange rate in effect on the transaction date. The Portfolio does not separately report the effects of changes in foreign exchange rates from changes in market prices on securities held. Such changes are included in net realized gain (loss) and net change in unrealized appreciation (depreciation) from investments on the Consolidated Statement of Operations. The Portfolio may invest in foreign currency-denominated securities and may engage in foreign currency transactions either on a spot (cash) basis at the rate prevailing in the currency exchange market at the time or through a forward foreign currency contract. Realized foreign exchange gains (losses) arising from sales of spot foreign currencies, currency gains (losses) realized between the trade and settlement dates on securities transactions and the difference between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid are included in net realized gain (loss) on foreign currency transactions on the Consolidated Statement of Operations. Net unrealized foreign exchange gains (losses) arising from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period are included in net change in unrealized appreciation (depreciation) on foreign currency assets and liabilities on the Consolidated Statement of Operations.

(c) Multi-Class Operations  Each class offered by the Trust has equal rights as to assets and voting privileges (except that shareholders of a

ANNUAL REPORT DECEMBER 31, 2018 33

Notes to Financial Statements (Cont.)

class have exclusive voting rights regarding any matter relating solely to that class of shares). Income and non-class specific expenses are allocated daily to each class on the basis of the relative net assets. Realized and unrealized capital gains (losses) are allocated daily based on the relative net assets of each class of the Portfolio. Class specific expenses, where applicable, currently include supervisory and administrative and distribution and servicing fees. Under certain circumstances, the per share net asset value (“NAV”) of a class of the Portfolio’s shares may be different from the per share NAV of another class of shares as a result of the different daily expense accruals applicable to each class of shares.

(d) Distributions to Shareholders  Distributions from net investment income, if any, are declared and distributed to shareholders quarterly. Net realized capital gains earned by the Portfolio, if any, will be distributed no less frequently than once each year.

Income distributions and capital gain distributions are determined in accordance with income tax regulations which may differ from U.S. GAAP. Differences between tax regulations and U.S. GAAP may cause timing differences between income and capital gain recognition. Further, the character of investment income and capital gains may be different for certain transactions under the two methods of accounting. As a result, income distributions and capital gain distributions declared during a fiscal period may differ significantly from the net investment income (loss) and realized gains (losses) reported on the Portfolio’s annual financial statements presented under U.S. GAAP.

If the Portfolio estimates that a portion of its distribution may be comprised of amounts from sources other than net investment income in accordance with its policies and good accounting practices, the Portfolio will notify shareholders of the estimated composition of such distribution through a Section 19 Notice. For these purposes, the Portfolio estimates the source or sources from which a distribution is paid, to the close of the period as of which it is paid, in reference to its internal accounting records and related accounting practices. If, based on such accounting records and practices, it is estimated that a particular distribution does not include capital gains or paid-in surplus or other capital sources, a Section 19 Notice generally would not be issued. It is important to note that differences exist between the Portfolio’s daily internal accounting records and practices, the Portfolio’s financial statements presented in accordance with U.S. GAAP, and recordkeeping practices under income tax regulations. For instance, the Portfolio’s internal accounting records and practices may take into account, among other factors, tax-related characteristics of certain sources of distributions that differ from treatment under U.S. GAAP. Examples of such differences may include, among others, the treatment of paydowns on mortgage-backed securities purchased at a discount and periodic payments under interest rate swap contracts.

Accordingly, among other consequences, it is possible that the Portfolio may not issue a Section 19 Notice in situations where the Portfolio’s financial statements prepared later and in accordance with U.S. GAAP and/or the final tax character of those distributions might later report that the sources of those distributions included capital gains and/or a return of capital. Final determination of a distribution’s tax character will be provided to shareholders when such information is available.

Distributions classified as a tax basis return of capital, if any, are reflected on the Consolidated Statements of Changes in Net Assets and have been recorded to paid in capital on the Consolidated Statement of Assets and Liabilities. In addition, other amounts have been reclassified between distributable earnings (accumulated loss) and paid in capital on the Consolidated Statement of Assets and Liabilities to more appropriately conform U.S. GAAP to tax characterizations of distributions.

(e) New Accounting Pronouncements  In August 2016, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”), ASU 2016-15, which amends Accounting Standards Codification (“ASC”) 230 to clarify guidance on the classification of certain cash receipts and cash payments in the Consolidated Statement of Cash Flows. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In November 2016, the FASB issued ASU 2016-18 which amends ASC 230 to provide guidance on the classification and presentation of changes in restricted cash and restricted cash equivalents on the Consolidated Statement of Cash Flows. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In March 2017, the FASB issued ASU 2017-08 which provides guidance related to the amortization period for certain purchased callable debt securities held at a premium. The ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In August 2018, the FASB issued ASU 2018-13 which modifies certain disclosure requirements for fair value measurements in ASC 820. The ASU is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. At this time, management has elected to early adopt the amendments that allow for removal of certain disclosure requirements. Management plans to adopt the amendments that require additional fair value measurement

34 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

disclosures for annual periods beginning after December 15, 2019, and interim periods within those annual periods. Management is currently evaluating the impact of these changes on the financial statements.

In August 2018, the U.S. Securities and Exchange Commission (“SEC”) adopted amendments to certain rules and forms for the purpose of disclosure update and simplification. The compliance date for these amendments is 30 days after date of publication in the Federal Register, which was on October 4, 2018. Management has adopted these amendments and the changes are incorporated throughout all periods presented in the financial statements.

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

(a) Investment Valuation Policies  The price of the Portfolio’s shares is based on the Portfolio’s NAV. The NAV of the Portfolio, or each of its share classes, as applicable, is determined by dividing the total value of portfolio investments and other assets, less any liabilities attributable to the Portfolio or class, by the total number of shares outstanding of the Portfolio or class.

On each day that the New York Stock Exchange (“NYSE”) is open, Portfolio shares are ordinarily valued as of the close of regular trading (“NYSE Close”). Information that becomes known to the Portfolio or its agents after the time as of which NAV has been calculated on a particular day will not generally be used to retroactively adjust the price of a security or the NAV determined earlier that day. The Portfolio reserves the right to change the time as of which its NAV is calculated if the Portfolio closes earlier, or as permitted by the SEC.

For purposes of calculating a NAV, portfolio securities and other assets for which market quotes are readily available are valued at market value. Market value is generally determined on the basis of official closing prices or the last reported sales prices, or if no sales are reported, based on quotes obtained from established market makers or prices (including evaluated prices) supplied by the Portfolio’s approved pricing services, quotation reporting systems and other third-party sources (together, “Pricing Services”). The Portfolio will normally use pricing data for domestic equity securities received shortly after the NYSE Close and does not normally take into account trading, clearances or settlements that take place after the NYSE Close. If market value pricing is used, a foreign (non-U.S.) equity security traded on a foreign exchange or on more than one exchange is typically valued using pricing information from the exchange considered by the Adviser to be the primary exchange. A foreign (non-U.S.) equity security will be valued as of the close of trading on the foreign exchange, or the NYSE Close, if the NYSE Close occurs before the end of trading on the foreign exchange. Domestic and foreign (non-U.S.) fixed income securities, non-exchange traded derivatives, and equity options are

normally valued on the basis of quotes obtained from brokers and dealers or Pricing Services using data reflecting the earlier closing of the principal markets for those securities. Prices obtained from Pricing Services may be based on, among other things, information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics. Certain fixed income securities purchased on a delayed-delivery basis are marked to market daily until settlement at the forward settlement date. Exchange-traded options, except equity options, futures and options on futures are valued at the settlement price determined by the relevant exchange. Swap agreements are valued on the basis of bid quotes obtained from brokers and dealers or market-based prices supplied by Pricing Services. The Portfolio’s investments in open-end management investment companies, other than exchange-traded funds (“ETFs”), are valued at the NAVs of such investments. Open-end management investment companies may include affiliated funds.

If a foreign (non-U.S.) equity security’s value has materially changed after the close of the security’s primary exchange or principal market but before the NYSE Close, the security may be valued at fair value based on procedures established and approved by the Board of Trustees of the Trust (the “Board”). Foreign (non-U.S.) equity securities that do not trade when the NYSE is open are also valued at fair value. With respect to foreign (non-U.S.) equity securities, the Portfolio may determine the fair value of investments based on information provided by Pricing Services and other third-party vendors, which may recommend fair value or adjustments with reference to other securities, indices or assets. In considering whether fair valuation is required and in determining fair values, the Portfolio may, among other things, consider significant events (which may be considered to include changes in the value of U.S. securities or securities indices) that occur after the close of the relevant market and before the NYSE Close. The Portfolio may utilize modeling tools provided by third-party vendors to determine fair values of foreign (non-U.S.) securities. For these purposes, any movement in the applicable reference index or instrument (“zero trigger”) between the earlier close of the applicable foreign market and the NYSE Close may be deemed to be a significant event, prompting the application of the pricing model (effectively resulting in daily fair valuations). Foreign exchanges may permit trading in foreign (non-U.S.) equity securities on days when the Trust is not open for business, which may result in the Portfolio’s portfolio investments being affected when shareholders are unable to buy or sell shares.

Senior secured floating rate loans for which an active secondary market exists to a reliable degree will be valued at the mean of the last available bid/ask prices in the market for such loans, as provided by a Pricing Service. Senior secured floating rate loans for which an active secondary market does not exist to a reliable degree will be

ANNUAL REPORT DECEMBER 31, 2018 35

Notes to Financial Statements (Cont.)

valued at fair value, which is intended to approximate market value. In valuing a senior secured floating rate loan at fair value, the factors considered may include, but are not limited to, the following: (a) the creditworthiness of the borrower and any intermediate participants, (b) the terms of the loan, (c) recent prices in the market for similar loans, if any, and (d) recent prices in the market for instruments of similar quality, rate, period until next interest rate reset and maturity.

Investments valued in currencies other than the U.S. dollar are converted to the U.S. dollar using exchange rates obtained from Pricing Services. As a result, the value of such investments and, in turn, the NAV of the Portfolio’s shares may be affected by changes in the value of currencies in relation to the U.S. dollar. The value of investments traded in markets outside the United States or denominated in currencies other than the U.S. dollar may be affected significantly on a day that the Trust is not open for business. As a result, to the extent that the Portfolio holds foreign (non-U.S.) investments, the value of those investments may change at times when shareholders are unable to buy or sell shares and the value of such investments will be reflected in the Portfolio’s next calculated NAV.

Investments for which market quotes or market based valuations are not readily available are valued at fair value as determined in good faith by the Board or persons acting at their direction. The Board has adopted methods for valuing securities and other assets in circumstances where market quotes are not readily available, and has delegated to the Adviser the responsibility for applying the fair valuation methods. In the event that market quotes or market based valuations are not readily available, and the security or asset cannot be valued pursuant to a Board approved valuation method, the value of the security or asset will be determined in good faith by the Board. Market quotes are considered not readily available in circumstances where there is an absence of current or reliable market-based data (e.g., trade information, bid/ask information, indicative market quotations (“Broker Quotes”), Pricing Services’ prices), including where events occur after the close of the relevant market, but prior to the NYSE Close, that materially affect the values of the Portfolio’s securities or assets. In addition, market quotes are considered not readily available when, due to extraordinary circumstances, the exchanges or markets on which the securities trade do not open for trading for the entire day and no other market prices are available. The Board has delegated, to the Adviser, the responsibility for monitoring significant events that may materially affect the values of the Portfolio’s securities or assets and for determining whether the value of the applicable securities or assets should be reevaluated in light of such significant events.

When the Portfolio uses fair valuation to determine the value of a portfolio security or other asset for purposes of calculating its NAV, such investments will not be priced on the basis of quotes from the

primary market in which they are traded, but rather may be priced by another method that the Board or persons acting at their direction believe reflects fair value. Fair valuation may require subjective determinations about the value of a security. While the Trust’s policy is intended to result in a calculation of the Portfolio’s NAV that fairly reflects security values as of the time of pricing, the Trust cannot ensure that fair values determined by the Board or persons acting at their direction would accurately reflect the price that the Portfolio could obtain for a security if it were to dispose of that security as of the time of pricing (for instance, in a forced or distressed sale). The prices used by the Portfolio may differ from the value that would be realized if the securities were sold. The Portfolio’s use of fair valuation may also help to deter “stale price arbitrage” as discussed under the “Frequent or Excessive Purchases, Exchanges and Redemptions” section in the Portfolio’s prospectus.

(b) Fair Value Hierarchy  U.S. GAAP describes fair value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into levels (Level 1, 2, or 3). The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Levels 1, 2, and 3 of the fair value hierarchy are defined as follows:

^∎  Level 1 — Quoted prices in active markets or exchanges for identical assets and liabilities.

^∎  Level 2 — Significant other observable inputs, which may include, but are not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market corroborated inputs.

^∎  Level 3 — Significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, which may include assumptions made by the Board or persons acting at their direction that are used in determining the fair value of investments.

In accordance with the requirements of U.S. GAAP, the amounts of transfers into and out of Level 3, if material, are disclosed in the Notes to Consolidated Schedule of Investments for the Portfolio.

For fair valuations using significant unobservable inputs, U.S. GAAP requires a reconciliation of the beginning to ending balances for

36 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

reported fair values that presents changes attributable to realized gain (loss), unrealized appreciation (depreciation), purchases and sales, accrued discounts (premiums), and transfers into and out of the Level 3 category during the period. The end of period value is used for the transfers between Levels of the Portfolio’s assets and liabilities. Additionally, U.S. GAAP requires quantitative information regarding the significant unobservable inputs used in the determination of fair value of assets or liabilities categorized as Level 3 in the fair value hierarchy. In accordance with the requirements of U.S. GAAP, a fair value hierarchy, and if material, a Level 3 reconciliation and details of significant unobservable inputs, have been included in the Notes to Consolidated Schedule of Investments for the Portfolio.

(c) Valuation Techniques and the Fair Value Hierarchy

Level 1 and Level 2 trading assets and trading liabilities, at fair value  The valuation methods (or “techniques”) and significant inputs used in determining the fair values of portfolio securities or other assets and liabilities categorized as Level 1 and Level 2 of the fair value hierarchy are as follows:

Fixed income securities including corporate, convertible and municipal bonds and notes, U.S. government agencies, U.S. treasury obligations, sovereign issues, bank loans, convertible preferred securities and non-U.S. bonds are normally valued on the basis of quotes obtained from brokers and dealers or Pricing Services that use broker-dealer quotations, reported trades or valuation estimates from their internal pricing models. The Pricing Services’ internal models use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar assets. Securities that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

Fixed income securities purchased on a delayed-delivery basis or as a repurchase commitment in a sale-buyback transaction are marked to market daily until settlement at the forward settlement date and are categorized as Level 2 of the fair value hierarchy.

Mortgage-related and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also normally valued by Pricing Services that use broker-dealer quotations, reported trades or valuation estimates from their internal pricing models. The pricing models for these securities usually consider tranche-level attributes, current market data, estimated cash flows and market-based yield spreads for each tranche, and incorporate deal collateral performance, as available. Mortgage-related and asset-backed securities that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

Common stocks, ETFs, exchange-traded notes and financial derivative instruments, such as futures contracts, rights and warrants, or options on futures that are traded on a national securities exchange, are stated at the last reported sale or settlement price on the day of valuation. To the extent these securities are actively traded and valuation adjustments are not applied, they are categorized as Level 1 of the fair value hierarchy.

Valuation adjustments may be applied to certain securities that are solely traded on a foreign exchange to account for the market movement between the close of the foreign market and the NYSE Close. These securities are valued using Pricing Services that consider the correlation of the trading patterns of the foreign security to the intraday trading in the U.S. markets for investments. Securities using these valuation adjustments are categorized as Level 2 of the fair value hierarchy. Preferred securities and other equities traded on inactive markets or valued by reference to similar instruments are also categorized as Level 2 of the fair value hierarchy.

Investments in registered open-end investment companies (other than ETFs) will be valued based upon the NAVs of such investments and are categorized as Level 1 of the fair value hierarchy. Investments in unregistered open-end investment companies will be calculated based upon the NAVs of such investments and are considered Level 1 provided that the NAVs are observable, calculated daily and are the value at which both purchases and sales will be conducted.

Equity exchange-traded options and over the counter financial derivative instruments, such as forward foreign currency contracts and options contracts derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors. These contracts are normally valued on the basis of quotes obtained from a quotation reporting system, established market makers or Pricing Services (normally determined as of the NYSE Close). Depending on the product and the terms of the transaction, financial derivative instruments can be valued by Pricing Services using a series of techniques, including simulation pricing models. The pricing models use inputs that are observed from actively quoted markets such as quoted prices, issuer details, indices, bid/ask spreads, interest rates, implied volatilities, yield curves, dividends and exchange rates. Financial derivative instruments that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

Centrally cleared swaps and over the counter swaps derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors. They are valued using a broker-dealer bid quotation or on market-based prices provided by Pricing Services (normally determined as of the NYSE close). Centrally cleared

ANNUAL REPORT DECEMBER 31, 2018 37

Notes to Financial Statements (Cont.)

swaps and over the counter swaps can be valued by Pricing Services using a series of techniques, including simulation pricing models. The pricing models may use inputs that are observed from actively quoted markets such as the overnight index swap rate (“OIS”), London Interbank Offered Rate (“LIBOR”) forward rate, interest rates, yield curves and credit spreads. These securities are categorized as Level 2 of the fair value hierarchy.

Level 3 trading assets and trading liabilities, at fair value  When a fair valuation method is applied by the Adviser that uses significant unobservable inputs, investments will be priced by a method that the

Board or persons acting at their direction believe reflects fair value and are categorized as Level 3 of the fair value hierarchy.

Short-term debt instruments (such as commercial paper) having a remaining maturity of 60 days or less may be valued at amortized cost, so long as the amortized cost value of such short-term debt instruments is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. These securities are categorized as Level 2 or Level 3 of the fair value hierarchy depending on the source of the base price.

4. SECURITIES AND OTHER INVESTMENTS

(a) Investments in Affiliates

The Portfolio may invest in the PIMCO Short Asset Portfolio and the PIMCO Short-Term Floating NAV Portfolio III (“Central Funds”) to the extent permitted by the Act and rules thereunder. The Central Funds are registered investment companies created for use solely by the series of the Trust and other series of registered investment companies advised by the Adviser, in connection with their cash management activities. The main investments of the Central Funds are money market and short maturity fixed income instruments. The Central Funds may incur expenses related to their investment activities, but do not pay Investment Advisory Fees or Supervisory and Administrative Fees to the Adviser. The Central Funds are considered to be affiliated with the Portfolio. The table below shows the Portfolio’s transactions in and earnings from investments in the affiliated Funds for the period ended December 31, 2018 (amounts in thousands^†):

Investment in PIMCO Short-Term Floating NAV Portfolio III

Market Value 12/31/2017		Purchases at Cost		Proceeds from Sales			Net Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)			Market Value 12/31/2018		Dividend Income(1)		Realized Net Capital Gain Distributions(1)
$	7,727	$	131,635	$	(134,600	)	$	3	$	(2	)	$	4,763	$	35	$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽¹⁾  The tax characterization of distributions is determined in accordance with Federal income tax regulations and may contain a return of capital. The actual tax characterization of distributions received is determined at the end of the fiscal year of the affiliated fund. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

(b) Investments in Securities

The Portfolio may utilize the investments and strategies described below to the extent permitted by the Portfolio’s investment policies.

Delayed-Delivery Transactions  involve a commitment by the Portfolio to purchase or sell securities for a predetermined price or yield, with payment and delivery taking place beyond the customary settlement period. When delayed-delivery transactions are outstanding, the Portfolio will designate or receive as collateral liquid assets in an amount sufficient to meet the purchase price or respective obligations. When purchasing a security on a delayed-delivery basis, the Portfolio assumes the rights and risks of ownership of the security, including the risk of price and yield fluctuations, and takes such fluctuations into account when determining its NAV. The Portfolio may dispose of or renegotiate a delayed-delivery transaction after it is entered into, which may result in a realized gain (loss). When the Portfolio has sold a security on a delayed-delivery basis, the Portfolio does not participate in future gains (losses) with respect to the security.

Inflation-Indexed Bonds  are fixed income securities whose principal value is periodically adjusted by the rate of inflation. The interest rate on these bonds is generally fixed at issuance at a rate lower than typical bonds. Over the life of an inflation-indexed bond, however, interest will be paid based on a principal value which is adjusted for inflation. Any increase or decrease in the principal amount of an inflation-indexed bond will be included as interest income on the Consolidated Statement of Operations, even though investors do not receive their principal until maturity. Repayment of the original bond principal upon maturity (as adjusted for inflation) is guaranteed in the case of U.S. Treasury Inflation-Protected Securities (“TIPS”). For bonds that do not provide a similar guarantee, the adjusted principal value of the bond repaid at maturity may be less than the original principal.

Mortgage-Related and Other Asset-Backed Securities  directly or indirectly represent a participation in, or are secured by and payable from, loans on real property. Mortgage-related securities are created from pools of residential or commercial mortgage loans, including

38 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

mortgage loans made by savings and loan institutions, mortgage bankers, commercial banks and others. These securities provide a monthly payment which consists of both interest and principal. Interest may be determined by fixed or adjustable rates. The rate of prepayments on underlying mortgages will affect the price and volatility of a mortgage-related security, and may have the effect of shortening or extending the effective duration of the security relative to what was anticipated at the time of purchase. The timely payment of principal and interest of certain mortgage-related securities is guaranteed with the full faith and credit of the U.S. Government. Pools created and guaranteed by non-governmental issuers, including government-sponsored corporations, may be supported by various forms of insurance or guarantees, but there can be no assurance that private insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Many of the risks of investing in mortgage-related securities secured by commercial mortgage loans reflect the effects of local and other economic conditions on real estate markets, the ability of tenants to make lease payments, and the ability of a property to attract and retain tenants. These securities may be less liquid and may exhibit greater price volatility than other types of mortgage-related or other asset-backed securities. Other asset-backed securities are created from many types of assets, including, but not limited to, auto loans, accounts receivable, such as credit card receivables and hospital account receivables, home equity loans, student loans, boat loans, mobile home loans, recreational vehicle loans, manufactured housing loans, aircraft leases, computer leases and syndicated bank loans.

Collateralized Debt Obligations  (“CDOs”) include Collateralized Bond Obligations (“CBOs”), Collateralized Loan Obligations (“CLOs”) and other similarly structured securities. CBOs and CLOs are types of asset-backed securities. A CBO is a trust which is backed by a diversified pool of high risk, below investment grade fixed income securities. A CLO is a trust typically collateralized by a pool of loans, which may include, among others, domestic and foreign senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated below investment grade or equivalent unrated loans. The risks of an investment in a CDO depend largely on the type of the collateral securities and the class of the CDO in which the Portfolio invests. In addition to the normal risks associated with fixed income securities discussed elsewhere in this report and the Portfolio’s prospectus and statement of additional information (e.g., prepayment risk, credit risk, liquidity risk, market risk, structural risk, legal risk and interest rate risk (which may be exacerbated if the interest rate payable on a structured financing changes based on multiples of changes in interest rates or inversely to changes in interest rates)), CBOs, CLOs and other CDOs carry additional risks including, but not limited to, (i) the possibility that distributions from collateral securities will not be adequate to make interest or other payments, (ii) the quality of

the collateral may decline in value or default, (iii) the risk that the Portfolio may invest in CBOs, CLOs, or other CDOs that are subordinate to other classes, and (iv) the complex structure of the security may not be fully understood at the time of investment and may produce disputes with the issuer or unexpected investment results.

Collateralized Mortgage Obligations  (“CMOs”) are debt obligations of a legal entity that are collateralized by whole mortgage loans or private mortgage bonds and divided into classes. CMOs are structured into multiple classes, often referred to as “tranches”, with each class bearing a different stated maturity and entitled to a different schedule for payments of principal and interest, including prepayments. CMOs may be less liquid and may exhibit greater price volatility than other types of mortgage-related or asset-backed securities.

Stripped Mortgage-Backed Securities  (“SMBS”) are derivative multi-class mortgage securities. SMBS are usually structured with two classes that receive different proportions of the interest and principal distributions on a pool of mortgage assets. An SMBS will have one class that will receive all of the interest (the interest-only or “IO” class), while the other class will receive the entire principal (the principal-only or “PO” class). Payments received for IOs are included in interest income on the Consolidated Statement of Operations. Because no principal will be received at the maturity of an IO, adjustments are made to the cost of the security on a monthly basis until maturity. These adjustments are included in interest income on the Consolidated Statement of Operations. Payments received for POs are treated as reductions to the cost and par value of the securities.

Perpetual Bonds  are fixed income securities with no maturity date but pay a coupon in perpetuity (with no specified ending or maturity date). Unlike typical fixed income securities, there is no obligation for perpetual bonds to repay principal. The coupon payments, however, are mandatory. While perpetual bonds have no maturity date, they may have a callable date in which the perpetuity is eliminated and the issuer may return the principal received on the specified call date. Additionally, a perpetual bond may have additional features, such as interest rate increases at periodic dates or an increase as of a predetermined point in the future.

Securities Issued by U.S. Government Agencies or Government-Sponsored Enterprises  are obligations of and, in certain cases, guaranteed by, the U.S. Government, its agencies or instrumentalities. Some U.S. Government securities, such as Treasury bills, notes and bonds, and securities guaranteed by the Government National Mortgage Association (“GNMA” or “Ginnie Mae”), are supported by the full faith and credit of the U.S. Government; others, such as those of the Federal Home Loan Banks, are supported by the right of the issuer to borrow from the U.S. Department of the Treasury (the “U.S.

ANNUAL REPORT DECEMBER 31, 2018 39

Notes to Financial Statements (Cont.)

Treasury”); and others, such as those of the Federal National Mortgage Association (“FNMA” or “Fannie Mae”), are supported by the discretionary authority of the U.S. Government to purchase the agency’s obligations. U.S. Government securities may include zero coupon securities. Zero coupon securities do not distribute interest on a current basis and tend to be subject to a greater risk than interest-paying securities.

Government-related guarantors (i.e., not backed by the full faith and credit of the U.S. Government) include FNMA and the Federal Home Loan Mortgage Corporation (“FHLMC” or “Freddie Mac”). FNMA is a government-sponsored corporation. FNMA purchases conventional (i.e., not insured or guaranteed by any government agency) residential mortgages from a list of approved seller/servicers which include state and federally chartered savings and loan associations, mutual savings banks, commercial banks and credit unions and mortgage bankers. Pass-through securities issued by FNMA are guaranteed as to timely payment of principal and interest by FNMA, but are not backed by the full faith and credit of the U.S. Government. FHLMC issues Participation Certificates (“PCs”), which are pass-through securities, each representing an undivided interest in a pool of residential mortgages. FHLMC guarantees the timely payment of interest and ultimate collection of principal, but PCs are not backed by the full faith and credit of the U.S. Government.

Roll-timing strategies can be used where the Portfolio seeks to extend the expiration or maturity of a position, such as a TBA security on an underlying asset, by closing out the position before expiration and opening a new position with respect to substantially the same underlying asset with a later expiration date. TBA securities purchased or sold are reflected on the Consolidated Statement of Assets and Liabilities as an asset or liability, respectively.

5. BORROWINGS AND OTHER FINANCING TRANSACTIONS

The Portfolio may enter into the borrowings and other financing transactions described below to the extent permitted by the Portfolio’s investment policies.

The following disclosures contain information on the Portfolio’s ability to lend or borrow cash or securities to the extent permitted under the Act, which may be viewed as borrowing or financing transactions by the Portfolio. The location of these instruments in the Portfolio’s financial statements is described below.

(a) Repurchase Agreements  Under the terms of a typical repurchase agreement, the Portfolio purchases an underlying debt obligation (collateral) subject to an obligation of the seller to repurchase, and the Portfolio to resell, the obligation at an agreed-upon price and time. In

an open maturity repurchase agreement, there is no pre-determined repurchase date and the agreement can be terminated by the Portfolio or counterparty at any time. The underlying securities for all repurchase agreements are held by the Portfolio’s custodian or designated subcustodians under tri-party repurchase agreements and in certain instances will remain in custody with the counterparty. The market value of the collateral must be equal to or exceed the total amount of the repurchase obligations, including interest. Repurchase agreements, if any, including accrued interest, are included on the Consolidated Statement of Assets and Liabilities. Interest earned is recorded as a component of interest income on the Consolidated Statement of Operations. In periods of increased demand for collateral, the Portfolio may pay a fee for the receipt of collateral, which may result in interest expense to the Portfolio.

(b) Reverse Repurchase Agreements  In a reverse repurchase agreement, the Portfolio delivers a security in exchange for cash to a financial institution, the counterparty, with a simultaneous agreement to repurchase the same or substantially the same security at an agreed upon price and date. In an open maturity reverse repurchase agreement, there is no pre-determined repurchase date and the agreement can be terminated by the Portfolio or counterparty at any time. The Portfolio is entitled to receive principal and interest payments, if any, made on the security delivered to the counterparty during the term of the agreement. Cash received in exchange for securities delivered plus accrued interest payments to be made by the Portfolio to counterparties are reflected as a liability on the Consolidated Statement of Assets and Liabilities. Interest payments made by the Portfolio to counterparties are recorded as a component of interest expense on the Consolidated Statement of Operations. In periods of increased demand for the security, the Portfolio may receive a fee for use of the security by the counterparty, which may result in interest income to the Portfolio. The Portfolio will segregate assets determined to be liquid by the Adviser or will otherwise cover its obligations under reverse repurchase agreements.

(c) Sale-Buybacks  A sale-buyback financing transaction consists of a sale of a security by the Portfolio to a financial institution, the counterparty, with a simultaneous agreement to repurchase the same or substantially the same security at an agreed-upon price and date. The Portfolio is not entitled to receive principal and interest payments, if any, made on the security sold to the counterparty during the term of the agreement. The agreed-upon proceeds for securities to be repurchased by the Portfolio are reflected as a liability on the Consolidated Statement of Assets and Liabilities. The Portfolio will recognize net income represented by the price differential between the price received for the transferred security and the agreed-upon repurchase price. This is commonly referred to as the ‘price drop’. A

40 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

price drop consists of (i) the foregone interest and inflationary income adjustments, if any, the Portfolio would have otherwise received had the security not been sold and (ii) the negotiated financing terms between the Portfolio and counterparty. Foregone interest and inflationary income adjustments, if any, are recorded as components of interest income on the Consolidated Statement of Operations. Interest payments based upon negotiated financing terms made by the Portfolio to counterparties are recorded as a component of interest expense on the Consolidated Statement of Operations. In periods of increased demand for the security, the Portfolio may receive a fee for use of the security by the counterparty, which may result in interest income to the Portfolio. The Portfolio will segregate assets determined to be liquid by the Adviser or will otherwise cover its obligations under sale-buyback transactions.

(d) Short Sales  Short sales are transactions in which the Portfolio sells a security that it may not own. The Portfolio may make short sales of securities to (i) offset potential declines in long positions in similar securities, (ii) to increase the flexibility of the Portfolio, (iii) for investment return, (iv) as part of a risk arbitrage strategy, and (v) as part of its overall portfolio management strategies involving the use of derivative instruments. When the Portfolio engages in a short sale, it may borrow the security sold short and deliver it to the counterparty. The Portfolio will ordinarily have to pay a fee or premium to borrow a security and be obligated to repay the lender of the security any dividend or interest that accrues on the security during the period of the loan. Securities sold in short sale transactions and the dividend or interest payable on such securities, if any, are reflected as payable for short sales on the Consolidated Statement of Assets and Liabilities. Short sales expose the Portfolio to the risk that it will be required to cover its short position at a time when the security or other asset has appreciated in value, thus resulting in losses to the Portfolio. A short sale is “against the box” if the Portfolio holds in its portfolio or has the right to acquire the security sold short, or securities identical to the security sold short, at no additional cost. The Portfolio will be subject to additional risks to the extent that it engages in short sales that are not “against the box.” The Portfolio’s loss on a short sale could theoretically be unlimited in cases where the Portfolio is unable, for whatever reason, to close out its short position.

6. FINANCIAL DERIVATIVE INSTRUMENTS

The Portfolio may enter into the financial derivative instruments described below to the extent permitted by the Portfolio’s investment policies.

The following disclosures contain information on how and why the Portfolio uses financial derivative instruments, and how financial derivative instruments affect the Portfolio’s financial position, results of operations and cash flows. The location and fair value amounts of these

instruments on the Consolidated Statement of Assets and Liabilities and the net realized gain (loss) and net change in unrealized appreciation (depreciation) on the Consolidated Statement of Operations, each categorized by type of financial derivative contract and related risk exposure, are included in a table in the Notes to Consolidated Schedule of Investments. The financial derivative instruments outstanding as of period end and the amounts of net realized gain (loss) and net change in unrealized appreciation (depreciation) on financial derivative instruments during the period, as disclosed in the Notes to Consolidated Schedule of Investments, serve as indicators of the volume of financial derivative activity for the Portfolio.

(a) Forward Foreign Currency Contracts  may be engaged, in connection with settling planned purchases or sales of securities, to hedge the currency exposure associated with some or all of the Portfolio’s securities or as part of an investment strategy. A forward foreign currency contract is an agreement between two parties to buy and sell a currency at a set price on a future date. The market value of a forward foreign currency contract fluctuates with changes in foreign currency exchange rates. Forward foreign currency contracts are marked to market daily, and the change in value is recorded by the Portfolio as an unrealized gain (loss). Realized gains (losses) are equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed and are recorded upon delivery or receipt of the currency. These contracts may involve market risk in excess of the unrealized gain (loss) reflected on the Consolidated Statement of Assets and Liabilities. In addition, the Portfolio could be exposed to risk if the counterparties are unable to meet the terms of the contracts or if the value of the currency changes unfavorably to the U.S. dollar. To mitigate such risk, cash or securities may be exchanged as collateral pursuant to the terms of the underlying contracts.

(b) Futures Contracts  are agreements to buy or sell a security or other asset for a set price on a future date. The Portfolio may use futures contracts to manage its exposure to the securities markets or to movements in interest rates and currency values. The primary risks associated with the use of futures contracts are the imperfect correlation between the change in market value of the securities held by the Portfolio and the prices of futures contracts and the possibility of an illiquid market. Futures contracts are valued based upon their quoted daily settlement prices. Upon entering into a futures contract, the Portfolio is required to deposit with its futures broker an amount of cash, U.S. Government and Agency Obligations, or select sovereign debt, in accordance with the initial margin requirements of the broker or exchange. Futures contracts are marked to market daily and based on such movements in the price of the contracts, an appropriate payable or receivable for the change in value may be posted or collected by the Portfolio (“Futures Variation Margin”). Gains (losses)

ANNUAL REPORT DECEMBER 31, 2018 41

Notes to Financial Statements (Cont.)

are recognized but not considered realized until the contracts expire or close. Futures contracts involve, to varying degrees, risk of loss in excess of the Futures Variation Margin included within exchange traded or centrally cleared financial derivative instruments on the Consolidated Statement of Assets and Liabilities.

(c) Options Contracts  may be written or purchased to enhance returns or to hedge an existing position or future investment. The Portfolio may write call and put options on securities and financial derivative instruments it owns or in which it may invest. Writing put options tends to increase the Portfolio’s exposure to the underlying instrument. Writing call options tends to decrease the Portfolio’s exposure to the underlying instrument. When the Portfolio writes a call or put, an amount equal to the premium received is recorded and subsequently marked to market to reflect the current value of the option written. These amounts are included on the Consolidated Statement of Assets and Liabilities. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options which are exercised or closed are added to the proceeds or offset against amounts paid on the underlying futures, swap, security or currency transaction to determine the realized gain (loss). Certain options may be written with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. The Portfolio as a writer of an option has no control over whether the underlying instrument may be sold (“call”) or purchased (“put”) and as a result bears the market risk of an unfavorable change in the price of the instrument underlying the written option. There is the risk the Portfolio may not be able to enter into a closing transaction because of an illiquid market.

Purchasing call options tends to increase the Portfolio’s exposure to the underlying instrument. Purchasing put options tends to decrease the Portfolio’s exposure to the underlying instrument. The Portfolio pays a premium which is included as an asset on the Consolidated Statement of Assets and Liabilities and subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options which expire are treated as realized losses. Certain options may be purchased with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. The risk associated with purchasing put and call options is limited to the premium paid. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the underlying investment transaction to determine the realized gain (loss) when the underlying transaction is executed.

Commodity Options  are options on commodity futures contracts (“Commodity Option”). The underlying instrument for the Commodity Option is not the commodity itself, but rather a futures contract for that

commodity. The exercise of a Commodity Option will not include physical delivery of the underlying commodity but will result in a cash transfer for the amount of the difference between the current market value of the underlying futures contract and the strike price. For an option that is in-the-money, the Portfolio will normally offset its position rather than exercise the option to retain any remaining time value.

Credit Default Swaptions  may be written or purchased to hedge exposure to the credit risk of an investment without making a commitment to the underlying instrument. A credit default swaption is an option to sell or buy credit protection on a specific reference by entering into a pre-defined swap agreement by some specified date in the future.

Foreign Currency Options  may be written or purchased to be used as a short or long hedge against possible variations in foreign exchange rates or to gain exposure to foreign currencies.

Inflation-Capped Options  may be written or purchased to enhance returns or for hedging opportunities. The purpose of purchasing inflation-capped options is to protect the Portfolio from inflation erosion above a certain rate on a given notional exposure. A floor can be used to give downside protection to investments in inflation-linked products.

Interest Rate-Capped Options  may be written or purchased to enhance returns or for hedging opportunities. The purpose of purchasing interest rate-capped options is to protect the Portfolio from floating rate risk above a certain rate on a given notional exposure. A floor can be used to give downside protection to investments in interest rate linked products.

Interest Rate Swaptions  may be written or purchased to enter into a pre-defined swap agreement or to shorten, extend, cancel or otherwise modify an existing swap agreement, by some specified date in the future. The writer of the swaption becomes the counterparty to the swap if the buyer exercises. The interest rate swaption agreement will specify whether the buyer of the swaption will be a fixed-rate receiver or a fixed-rate payer upon exercise.

Options on Exchange-Traded Futures Contracts  (“Futures Option”) may be written or purchased to hedge an existing position or future investment, for speculative purposes or to manage exposure to market movements. A Futures Option is an option contract in which the underlying instrument is a single futures contract.

Options on Securities  may be written or purchased to enhance returns or to hedge an existing position or future investment. An option on a security uses a specified security as the underlying instrument for the option contract.

42 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

(d) Swap Agreements  are bilaterally negotiated agreements between the Portfolio and a counterparty to exchange or swap investment cash flows, assets, foreign currencies or market-linked returns at specified, future intervals. Swap agreements may be privately negotiated in the over the counter market (“OTC swaps”) or may be cleared through a third party, known as a central counterparty or derivatives clearing organization (“Centrally Cleared Swaps”). The Portfolio may enter into asset, credit default, cross-currency, interest rate, total return, variance and other forms of swap agreements to manage its exposure to credit, currency, interest rate, commodity, equity and inflation risk. In connection with these agreements, securities or cash may be identified as collateral or margin in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default or bankruptcy/insolvency.

Centrally Cleared Swaps are marked to market daily based upon valuations as determined from the underlying contract or in accordance with the requirements of the central counterparty or derivatives clearing organization. Changes in market value, if any, are reflected as a component of net change in unrealized appreciation (depreciation) on the Consolidated Statement of Operations. Daily changes in valuation of centrally cleared swaps (“Swap Variation Margin”), if any, are disclosed within centrally cleared financial derivative instruments on the Consolidated Statement of Assets and Liabilities. Centrally Cleared and OTC swap payments received or paid at the beginning of the measurement period are included on the Consolidated Statement of Assets and Liabilities and represent premiums paid or received upon entering into the swap agreement to compensate for differences between the stated terms of the swap agreement and prevailing market conditions (credit spreads, currency exchange rates, interest rates, and other relevant factors). Upfront premiums received (paid) are initially recorded as liabilities (assets) and subsequently marked to market to reflect the current value of the swap. These upfront premiums are recorded as realized gain (loss) on the Consolidated Statement of Operations upon termination or maturity of the swap. A liquidation payment received or made at the termination of the swap is recorded as realized gain (loss) on the Consolidated Statement of Operations. Net periodic payments received or paid by the Portfolio are included as part of realized gain (loss) on the Consolidated Statement of Operations.

For purposes of applying certain of the Portfolio’s investment policies and restrictions, swap agreements, like other derivative instruments, may be valued by the Portfolio at market value, notional value or full exposure value. In the case of a credit default swap, in applying certain of the Portfolio’s investment policies and restrictions, the Portfolio will value the credit default swap at its notional value or its full exposure value (i.e., the sum of the notional amount for the contract plus the market value), but

may value the credit default swap at market value for purposes of applying certain of the Portfolio’s other investment policies and restrictions. For example, the Portfolio may value credit default swaps at full exposure value for purposes of the Portfolio’s credit quality guidelines (if any) because such value in general better reflects the Portfolio’s actual economic exposure during the term of the credit default swap agreement. As a result, the Portfolio may, at times, have notional exposure to an asset class (before netting) that is greater or lesser than the stated limit or restriction noted in the Portfolio’s prospectus. In this context, both the notional amount and the market value may be positive or negative depending on whether the Portfolio is selling or buying protection through the credit default swap. The manner in which certain securities or other instruments are valued by the Portfolio for purposes of applying investment policies and restrictions may differ from the manner in which those investments are valued by other types of investors.

Entering into swap agreements involves, to varying degrees, elements of interest, credit, market and documentation risk in excess of the amounts recognized on the Consolidated Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of contractual terms in the agreements and that there may be unfavorable changes in interest rates or the values of the asset upon which the swap is based.

The Portfolio’s maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from the counterparty over the contract’s remaining life, to the extent that amount is positive. The risk may be mitigated by having a master netting arrangement between the Portfolio and the counterparty and by the posting of collateral to the Portfolio to cover the Portfolio’s exposure to the counterparty.

To the extent the Portfolio has a policy to limit the net amount owed to or to be received from a single counterparty under existing swap agreements, such limitation only applies to counterparties to OTC swaps and does not apply to centrally cleared swaps where the counterparty is a central counterparty or derivatives clearing organization.

Commodity Forward Swap Agreements  (“Commodity Forwards”) are entered into to gain or mitigate exposure to the underlying referenced commodity. Commodity Forwards involve commitments between two parties where cash flows are exchanged at a future date based on the difference between a fixed and variable price with respect to the number of units of the commodity. At the maturity date, a net cash flow is exchanged, where the payoff amount is equivalent to the difference between the fixed and variable price of the underlying commodity multiplied by the number of units. To the extent the

ANNUAL REPORT DECEMBER 31, 2018 43

Notes to Financial Statements (Cont.)

difference between the fixed and variable price of the underlying referenced commodity exceeds or falls short of the offsetting payment obligation, the Portfolio will receive a payment from or make a payment to the counterparty.

Credit Default Swap Agreements  on corporate, loan, sovereign, U.S. municipal or U.S. Treasury issues are entered into to provide a measure of protection against defaults of the issuers (i.e., to reduce risk where the Portfolio owns or has exposure to the referenced obligation) or to take an active long or short position with respect to the likelihood of a particular issuer’s default. Credit default swap agreements involve one party making a stream of payments (referred to as the buyer of protection) to another party (the seller of protection) in exchange for the right to receive a specified return in the event that the referenced entity, obligation or index, as specified in the swap agreement, undergoes a certain credit event. As a seller of protection on credit default swap agreements, the Portfolio will generally receive from the buyer of protection a fixed rate of income throughout the term of the swap provided that there is no credit event. As the seller, the Portfolio would effectively add leverage to its portfolio because, in addition to its total net assets, the Portfolio would be subject to investment exposure on the notional amount of the swap.

If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. If the Portfolio is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. Recovery values are estimated by market makers considering either industry standard recovery rates or entity specific factors and considerations until a credit event occurs. If a credit event has occurred, the recovery value is determined by a facilitated auction whereby a minimum number of allowable broker bids, together with a specified valuation method, are used to calculate the settlement value. The ability to deliver other obligations may result in a cheapest-to-deliver option (the buyer of protection’s right to choose the deliverable obligation with the lowest value following a credit event).

Credit default swap agreements on credit indices involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising the credit index. A credit index is a basket of credit instruments or exposures designed to be representative of some part of the credit market as a whole. These indices are made up of reference credits that are judged by a poll of dealers to be the most liquid entities in the credit default swap market based on the sector of the index. Components of the indices may include, but are not limited to, investment grade securities, high yield securities, asset-backed securities, emerging markets, and/or various credit ratings within each sector. Credit indices are traded using credit default swaps with standardized terms including a fixed spread and standard maturity dates. An index credit default swap references all the names in the index, and if there is a default, the credit event is settled based on that name’s weight in the index. The composition of the indices changes periodically, usually every six months, and for most indices, each name has an equal weight in the index. The Portfolio may use credit default swaps on credit indices to hedge a portfolio of credit default swaps or bonds, which is less expensive than it would be to buy many credit default swaps to achieve a similar effect. Credit default swaps on indices are instruments for protecting investors owning bonds against default, and traders use them to speculate on changes in credit quality.

Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate, loan, sovereign, U.S. municipal or U.S. Treasury issues as of period end, if any, are disclosed in the Notes to Consolidated Schedule of Investments. They serve as an indicator of the current status of payment/performance risk and represent the likelihood or risk of default for the reference entity. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. For credit default swap agreements on asset-backed securities and credit indices, the quoted market prices and resulting values serve as the indicator of the current status of the payment/performance risk. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

The maximum potential amount of future payments (undiscounted) that the Portfolio as a seller of protection could be required to make under a

44 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

credit default swap agreement equals the notional amount of the agreement. Notional amounts of each individual credit default swap agreement outstanding as of period end for which the Portfolio is the seller of protection are disclosed in the Notes to Consolidated Schedule of Investments. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Portfolio for the same referenced entity or entities.

Interest Rate Swap Agreements  may be entered into to help hedge against interest rate risk exposure and to maintain the Portfolio’s ability to generate income at prevailing market rates. The value of the fixed rate bonds that the Portfolio holds may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, the Portfolio may enter into interest rate swap agreements. Interest rate swap agreements involve the exchange by the Portfolio with another party for their respective commitment to pay or receive interest on the notional amount of principal. Certain forms of interest rate swap agreements may include: (i) interest rate caps, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates exceed a specified rate, or “cap”, (ii) interest rate floors, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates fall below a specified rate, or “floor”, (iii) interest rate collars, under which a party sells a cap and purchases a floor or vice versa in an attempt to protect itself against interest rate movements exceeding given minimum or maximum levels, (iv) callable interest rate swaps, under which the buyer pays an upfront fee in consideration for the right to early terminate the swap transaction in whole, at zero cost and at a predetermined date and time prior to the maturity date, (v) spreadlocks, which allow the interest rate swap users to lock in the forward differential (or spread) between the interest rate swap rate and a specified benchmark, or (vi) basis swaps, under which two parties can exchange variable interest rates based on different segments of money markets.

Total Return Swap Agreements  are entered into to gain or mitigate exposure to the underlying reference asset. Total return swap agreements involve commitments where single or multiple cash flows are exchanged based on the price of an underlying reference asset and on a fixed or variable interest rate. Total return swap agreements may involve commitments to pay interest in exchange for a market-linked return. One counterparty pays out the total return of a specific underlying reference asset, which may include a single security, a basket of securities, or an index, and in return receives a fixed or variable rate. At the maturity date, a net cash flow is exchanged where

the total return is equivalent to the return of the underlying reference asset less a financing rate, if any. As a receiver, the Portfolio would receive payments based on any net positive total return and would owe payments in the event of a net negative total return. As the payer, the Portfolio would owe payments on any net positive total return, and would receive payments in the event of a net negative total return.

Volatility Swap Agreements  are also known as forward volatility agreements and volatility swaps and are agreements in which the counterparties agree to make payments in connection with changes in the volatility (i.e., the magnitude of change over a specified period of time) of an underlying referenced instrument, such as a currency, rate, index, security or other financial instrument. Volatility swaps permit the parties to attempt to hedge volatility risk and/or take positions on the projected future volatility of an underlying referenced instrument. For example, the Portfolio may enter into a volatility swap in order to take the position that the referenced instrument’s volatility will increase over a particular period of time. If the referenced instrument’s volatility does increase over the specified time, the Portfolio will receive payment from its counterparty based upon the amount by which the referenced instrument’s realized volatility level exceeds a volatility level agreed upon by the parties. If the referenced instrument’s volatility does not increase over the specified time, the Portfolio will make a payment to the counterparty based upon the amount by which the referenced instrument’s realized volatility level falls below the volatility level agreed upon by the parties. At the maturity date, a net cash flow is exchanged, where the payoff amount is equivalent to the difference between the realized price volatility of the referenced instrument and the strike multiplied by the notional amount. As a receiver of the realized price volatility, the Portfolio would receive the payoff amount when the realized price volatility of the referenced instrument is greater than the strike and would owe the payoff amount when the volatility is less than the strike. As a payer of the realized price volatility, the Portfolio would owe the payoff amount when the realized price volatility of the referenced instrument is greater than the strike and would receive the payoff amount when the volatility is less than the strike. Payments on a volatility swap will be greater if they are based upon the mathematical square of volatility (i.e., the measured volatility multiplied by itself, which is referred to as “variance”). This type of volatility swap is frequently referred to as a variance swap.

7. PRINCIPAL RISKS

The principal risks of investing in the Portfolio, which could adversely affect its net asset value, yield and total return, are listed below. Under certain conditions, generally in a market where the value of both commodity-linked derivative instruments and fixed income securities are declining, the Portfolio may experience substantial losses. Please

ANNUAL REPORT DECEMBER 31, 2018 45

Notes to Financial Statements (Cont.)

see “Description of Principal Risks” in the Portfolio’s prospectus for a more detailed description of the risks of investing in the Portfolio.

Interest Rate Risk  is the risk that fixed income securities will decline in value because of an increase in interest rates; a portfolio with a longer average portfolio duration will be more sensitive to changes in interest rates than a portfolio with a shorter average portfolio duration.

Call Risk  is the risk that an issuer may exercise its right to redeem a fixed income security earlier than expected (a call). Issuers may call outstanding securities prior to their maturity for a number of reasons (e.g., declining interest rates, changes in credit spreads and improvements in the issuer’s credit quality). If an issuer calls a security that the Portfolio has invested in, the Portfolio may not recoup the full amount of its initial investment and may be forced to reinvest in lower-yielding securities, securities with greater credit risks or securities with other, less favorable features.

Credit Risk  is the risk that the Portfolio could lose money if the issuer or guarantor of a fixed income security, or the counterparty to a derivative contract, is unable or unwilling to meet its financial obligations.

High Yield Risk  is the risk that high yield securities and unrated securities of similar credit quality (commonly known as “junk bonds”) are subject to greater levels of credit, call and liquidity risks. High yield securities are considered primarily speculative with respect to the issuer’s continuing ability to make principal and interest payments, and may be more volatile than higher-rated securities of similar maturity.

Market Risk  is the risk that the value of securities owned by the Portfolio may go up or down, sometimes rapidly or unpredictably, due to factors affecting securities markets generally or particular industries.

Issuer Risk  is the risk that the value of a security may decline for a reason directly related to the issuer, such as management performance, financial leverage and reduced demand for the issuer’s goods or services.

Liquidity Risk  is the risk that a particular investment may be difficult to purchase or sell and that the Portfolio may be unable to sell illiquid securities at an advantageous time or price or achieve its desired level of exposure to a certain sector. Liquidity risk may result from the lack of an active market, reduced number and capacity of traditional market participants to make a market in fixed income securities, and may be magnified in a rising interest rate environment or other circumstances where investor redemptions from fixed income mutual funds may be higher than normal, causing increased supply in the market due to selling activity.

Derivatives Risk  is the risk of investing in derivative instruments (such as futures, swaps and structured securities), including leverage, liquidity, interest rate, market, credit and management risks, mispricing

or valuation complexity. Changes in the value of the derivative may not correlate perfectly with, and may be more sensitive to market events than, the underlying asset, rate or index, and the Portfolio could lose more than the initial amount invested. The Portfolio’s use of derivatives may result in losses to the Portfolio, a reduction in the Portfolio’s returns and/or increased volatility. Over-the-counter (“OTC”) derivatives are also subject to the risk that a counterparty to the transaction will not fulfill its contractual obligations to the other party, as many of the protections afforded to centrally-cleared derivative transactions might not be available for OTC derivatives. For derivatives traded on an exchange or through a central counterparty, credit risk resides with the Portfolio’s clearing broker, or the clearinghouse itself, rather than with a counterparty in an OTC derivative transaction. Changes in regulation relating to a mutual fund’s use of derivatives and related instruments could potentially limit or impact the Portfolio’s ability to invest in derivatives, limit the Portfolio’s ability to employ certain strategies that use derivatives and/or adversely affect the value of derivatives and the Portfolio’s performance.

Commodity Risk  is the risk that investing in commodity-linked derivative instruments may subject the Portfolio to greater volatility than investments in traditional securities. The value of commodity-linked derivative instruments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments.

Equity Risk  is the risk that the value of equity securities, such as common stocks and preferred securities, may decline due to general market conditions which are not specifically related to a particular company or to factors affecting a particular industry or industries. Equity securities generally have greater price volatility than fixed income securities.

Mortgage-Related and Other Asset-Backed Securities Risk  is the risk of investing in mortgage-related and other asset-backed securities, including interest rate risk, extension risk, prepayment risk and credit risk.

Foreign (Non-U.S.) Investment Risk  is the risk that investing in foreign (non-U.S.) securities may result in the Portfolio experiencing more rapid and extreme changes in value than a portfolio that invests exclusively in securities of U.S. companies, due to smaller markets, differing reporting, accounting and auditing standards, increased risk of delayed settlement of portfolio transactions or loss of certificates of portfolio securities, and the risk of unfavorable foreign government actions, including nationalization, expropriation or confiscatory taxation, currency blockage, or political changes or diplomatic developments. Foreign securities may also be less liquid and more difficult to value than securities of U.S. issuers.

46 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

Emerging Markets Risk  is the risk of investing in emerging market securities, primarily increased foreign (non-U.S.) investment risk.

Sovereign Debt Risk  is the risk that investments in fixed income instruments issued by sovereign entities may decline in value as a result of default or other adverse credit event resulting from an issuer’s inability or unwillingness to make principal or interest payments in a timely fashion.

Currency Risk  is the risk that foreign (non-U.S.) currencies will change in value relative to the U.S. dollar and affect the Portfolio’s investments in foreign (non-U.S.) currencies or in securities that trade in, and receive revenues in, or in derivatives that provide exposure to, foreign (non-U.S.) currencies.

Leveraging Risk  is the risk that certain transactions of the Portfolio, such as reverse repurchase agreements, loans of portfolio securities, and the use of when-issued, delayed delivery or forward commitment transactions, or derivative instruments, may give rise to leverage, magnifying gains and losses and causing the Portfolio to be more volatile than if it had not been leveraged. This means that leverage entails a heightened risk of loss.

Management Risk  is the risk that the investment techniques and risk analyses applied by PIMCO will not produce the desired results and that legislative, regulatory, or tax restrictions, policies or developments may affect the investment techniques available to PIMCO and the individual portfolio manager in connection with managing the Portfolio. There is no guarantee that the investment objective of the Portfolio will be achieved.

Tax Risk  is the risk that the tax treatment of swap agreements and other derivative instruments, such as commodity-linked derivative instruments, including commodity index-linked notes, swap agreements, commodity options, futures, and options on futures, may be affected by future regulatory or legislative changes that could affect whether income from such investments is “qualifying income” under Subchapter M of the Internal Revenue Code, or otherwise affect the character, timing and/or amount of the Portfolio’s taxable income or gains and distributions.

Subsidiary Risk  is the risk that, by investing in the CRRS Subsidiary, the Portfolio is indirectly exposed to the risks associated with the CRRS Subsidiary’s investments. The CRRS Subsidiary is not registered under the 1940 Act and may not be subject to all the investor protections of the 1940 Act. There is no guarantee that the investment objective of the CRRS Subsidiary will be achieved.

Short Exposure Risk  is the risk of entering into short sales, including the potential loss of more money than the actual cost of the

investment, and the risk that the third party to the short sale will not fulfill its contractual obligations, causing a loss to the Portfolio.

8. MASTER NETTING ARRANGEMENTS

The Portfolio may be subject to various netting arrangements (“Master Agreements”) with select counterparties. Master Agreements govern the terms of certain transactions, and are intended to reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that is intended to improve legal certainty. Each type of Master Agreement governs certain types of transactions. Different types of transactions may be traded out of different legal entities or affiliates of a particular organization, resulting in the need for multiple agreements with a single counterparty. As the Master Agreements are specific to unique operations of different asset types, they allow the Portfolio to close out and net its total exposure to a counterparty in the event of a default with respect to all the transactions governed under a single Master Agreement with a counterparty. For financial reporting purposes the Consolidated Statement of Assets and Liabilities generally presents derivative assets and liabilities on a gross basis, which reflects the full risks and exposures prior to netting.

Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. Under most Master Agreements, collateral is routinely transferred if the total net exposure to certain transactions (net of existing collateral already in place) governed under the relevant Master Agreement with a counterparty in a given account exceeds a specified threshold, which typically ranges from zero to $250,000 depending on the counterparty and the type of Master Agreement. United States Treasury Bills and U.S. dollar cash are generally the preferred forms of collateral, although other securities may be used depending on the terms outlined in the applicable Master Agreement. Securities and cash pledged as collateral are reflected as assets on the Consolidated Statement of Assets and Liabilities as either a component of Investments at value (securities) or Deposits with counterparty. Cash collateral received is not typically held in a segregated account and as such is reflected as a liability on the Consolidated Statement of Assets and Liabilities as Deposits from counterparty. The market value of any securities received as collateral is not reflected as a component of NAV. The Portfolio’s overall exposure to counterparty risk can change substantially within a short period, as it is affected by each transaction subject to the relevant Master Agreement.

Master Repurchase Agreements and Global Master Repurchase Agreements (individually and collectively “Master Repo Agreements”) govern repurchase, reverse repurchase, and certain sale-buyback transactions between the Portfolio and select counterparties. Master Repo Agreements maintain provisions for, among other things, initiation, income payments, events of default, and maintenance of

ANNUAL REPORT DECEMBER 31, 2018 47

Notes to Financial Statements (Cont.)

collateral. The market value of transactions under the Master Repo Agreement, collateral pledged or received, and the net exposure by counterparty as of period end are disclosed in the Notes to Consolidated Schedule of Investments.

Master Securities Forward Transaction Agreements (“Master Forward Agreements”) govern certain forward settling transactions, such as TBA securities, delayed-delivery or certain sale-buyback transactions by and between the Portfolio and select counterparties. The Master Forward Agreements maintain provisions for, among other things, transaction initiation and confirmation, payment and transfer, events of default, termination, and maintenance of collateral. The market value of forward settling transactions, collateral pledged or received, and the net exposure by counterparty as of period end is disclosed in the Notes to Consolidated Schedule of Investments.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Such transactions require posting of initial margin as determined by each relevant clearing agency which is segregated in an account at a futures commission merchant (“FCM”) registered with the Commodity Futures Trading Commission (“CFTC”). In the United States, counterparty risk may be reduced as creditors of an FCM cannot have a claim to Portfolio assets in the segregated account. Portability of exposure reduces risk to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives unless the parties have agreed to a separate arrangement in respect of portfolio margining. The market value or accumulated unrealized appreciation (depreciation), initial margin posted, and any unsettled variation margin as of period end are disclosed in the Notes to Consolidated Schedule of Investments.

International Swaps and Derivatives Association, Inc. Master Agreements and Credit Support Annexes (“ISDA Master Agreements”) govern bilateral OTC derivative transactions entered into by the Portfolio with select counterparties. ISDA Master Agreements maintain provisions for general obligations, representations, agreements, collateral posting and events of default or termination. Events of termination include conditions that may entitle counterparties to elect to terminate early and cause settlement of all outstanding transactions under the applicable ISDA Master Agreement. Any election to terminate early could be material to the financial statements. In limited circumstances, the ISDA Master Agreement may contain additional provisions that add counterparty protection beyond coverage of existing daily exposure if the counterparty has a decline in credit quality below a predefined level. These amounts, if any, may be segregated with a third-party custodian. The market value of OTC financial derivative instruments, collateral received or pledged, and net exposure

by counterparty as of period end are disclosed in the Notes to Consolidated Schedule of Investments.

9. FEES AND EXPENSES

(a) Investment Advisory Fee  PIMCO is a majority-owned subsidiary of Allianz Asset Management of America L.P. (“Allianz Asset Management”) and serves as the Adviser to the Trust, pursuant to an investment advisory contract. The Adviser receives a monthly fee from the Portfolio at an annual rate based on average daily net assets (the “Investment Advisory Fee”). The Investment Advisory Fee for all classes is charged at an annual rate as noted in the table in note (b) below.

(b) Supervisory and Administrative Fee  PIMCO serves as administrator (the “Administrator”) and provides supervisory and administrative services to the Trust for which it receives a monthly supervisory and administrative fee based on each share class’s average daily net assets (the “Supervisory and Administrative Fee”). As the Administrator, PIMCO bears the costs of various third-party services, including audit, custodial, portfolio accounting, legal, transfer agency and printing costs.

The Investment Advisory Fee and Supervisory and Administrative Fees for all classes, as applicable, are charged at the annual rate as noted in the following table (calculated as a percentage of the Portfolio’s average daily net assets attributable to each class):

Investment Advisory Fee		Supervisory and Administrative Fee
All Classes		Institutional Class		Class M		Administrative Class		Advisor Class
	0.49%		0.25%		0.25%		0.25%		0.25%

(c) Distribution and Servicing Fees  PIMCO Investments LLC, a wholly-owned subsidiary of PIMCO, serves as the distributor (“Distributor”) of the Trust’s shares.

The Trust has adopted an Administrative Services Plan with respect to the Administrative Class shares of the Portfolio pursuant to Rule 12b-1 under the Act (the “Administrative Plan”). Under the terms of the Administrative Plan, the Trust is permitted to compensate the Distributor, out of the Administrative Class assets of the Portfolio, in an amount up to 0.15% on an annual basis of the average daily net assets of that class, for providing or procuring through financial intermediaries administrative, recordkeeping and investor services for Administrative Class shareholders of the Portfolio.

The Trust has adopted a separate Distribution and Servicing Plan for each of the Advisor Class and Class M shares of the Portfolio (the “Distribution and Servicing Plans”). The Distribution and Servicing Plans have been adopted pursuant to Rule 12b-1 under the Act. The Distribution and Servicing Plans permit the Portfolio to compensate the Distributor for providing or procuring through financial intermediaries,

48 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

distribution, administrative, recordkeeping, shareholder and/or related services with respect to Advisor Class and Class M shares. The Distribution and Servicing Plans permit the Portfolio to make total payments at an annual rate of up to 0.25% of its average daily net assets attributable to its Advisor Class or Class M shares, respectively. The Distribution and Servicing Plan for Class M shares also permits the Portfolio to compensate the Distributor for providing or procuring administrative, recordkeeping, and other investor services at an annual rate of up to 0.20% of its average daily net assets attributable to its Class M shares.

	Distribution Fee		Servicing Fee
Class M		0.25%		0.20%
Administrative Class		—		0.15%
Advisor Class		0.25%		—

(d) Portfolio Expenses  PIMCO provides or procures supervisory and administrative services for shareholders and also bears the costs of various third-party services required by the Portfolio, including audit, custodial, portfolio accounting, legal, transfer agency and printing costs. The Trust is responsible for the following expenses: (i) taxes and governmental fees; (ii) brokerage fees and commissions and other portfolio transaction expenses; (iii) the costs of borrowing money, including interest expense; (iv) fees and expenses of the Trustees who are not “interested persons” of PIMCO or the Trust, and any counsel retained exclusively for their benefit; (v) extraordinary expense, including costs of litigation and indemnification expenses; (vi) organizational expenses; and (vii) any expenses allocated or allocable to a specific class of shares, which include service fees payable with respect to the Administrative Class Shares, and may include certain other expenses as permitted by the Trust’s Multi-Class Plan adopted pursuant to Rule 18f-3 under the Act and subject to review and approval by the Trustees. The ratio of expenses to average net assets per share class, as disclosed on the Financial Highlights, may differ from the annual portfolio operating expenses per share class.

Each Trustee, other than those affiliated with PIMCO or its affiliates, receives an annual retainer of $41,200, plus $4,250 for each Board meeting attended in person, $850 for each committee meeting attended and $750 for each Board meeting attended telephonically, plus reimbursement of related expenses. In addition, the audit committee chair receives an additional annual retainer of $8,000, the valuation oversight committee lead receives an additional annual retainer of $8,500 (to the extent there are co-leads of the valuation oversight committee, the annual retainer will be split evenly between the co-leads, so that each co-lead individually receives an additional annual retainer of $4,250) and each other committee chair receives an additional annual retainer of $5,500. The Lead Independent Trustee receives an annual retainer of $7,000.

These expenses are allocated on a pro rata basis to each Portfolio of the Trust according to its respective net assets. The Trust pays no compensation directly to any Trustee or any other officer who is affiliated with the Administrator, all of whom receive remuneration for their services to the Trust from the Administrator or its affiliates.

(e) Expense Limitation  Pursuant to the Expense Limitation Agreement, PIMCO has agreed to waive a portion of the Portfolio’s Supervisory and Administrative Fee, or reimburse the Portfolio, to the extent that the Portfolio’s organizational expenses, pro rata share of expenses related to obtaining or maintaining a Legal Entity Identifier and pro rata share of Trustee Fees exceed 0.0049%, the “Expense Limit” (calculated as a percentage of the Portfolio’s average daily net assets attributable to each class). The Expense Limitation Agreement will automatically renew for one-year terms unless PIMCO provides written notice to the Trust at least 30 days prior to the end of the then current term.

Under certain conditions, PIMCO may be reimbursed for these waived amounts in future periods, not to exceed thirty-six months after the waiver. At December 31, 2018, there were no recoverable amounts.

(f) Acquired Fund Fees and Expenses  PIMCO Cayman Commodity Portfolio I, Ltd. has (the “Commodity Subsidiary”) entered into a separate contract with PIMCO for the management of the Commodity Subsidiary’s portfolio pursuant to which the Commodity Subsidiary pays PIMCO a management fee and an administrative services fee at the annual rates of 0.49% and 0.20%, respectively, of its net assets. PIMCO has contractually agreed to waive the Portfolio’s Investment Advisory Fee and the Supervisory and Administrative Fee in an amount equal to the management fee and administrative services fee, respectively, paid by the Commodity Subsidiary to PIMCO. This waiver may not be terminated by PIMCO and will remain in effect for as long as PIMCO’s contract with the Commodity Subsidiary is in place. The waiver is reflected in the Consolidated Statement of Operations as a component of Waiver and/or Reimbursement by PIMCO. For the period ended December 31, 2018, the amount was $562,686. See Note 14, Basis for Consolidation in the Notes to Financial Statements for more information regarding the Commodity Subsidiary.

10. RELATED PARTY TRANSACTIONS

The Adviser, Administrator, and Distributor are related parties. Fees paid to these parties are disclosed in Note 9, Fees and Expenses, and the accrued related party fee amounts are disclosed on the Consolidated Statement of Assets and Liabilities.

The Portfolio is permitted to purchase or sell securities from or to certain related affiliated portfolios under specified conditions outlined in procedures adopted by the Board. The procedures have been designed to ensure that any purchase or sale of securities by the

ANNUAL REPORT DECEMBER 31, 2018 49

Notes to Financial Statements (Cont.)

Portfolio from or to another fund or portfolio that are, or could be, considered an affiliate, or an affiliate of an affiliate, by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers complies with Rule 17a-7 under the Act. Further, as defined under the procedures, each transaction is effected at the current market price. Purchases and sales of securities pursuant to Rule 17a-7 under the Act for the period ended December 31, 2018, were as follows (amounts in thousands^†):

Purchases		Sales
$	3,083	$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

11. GUARANTEES AND INDEMNIFICATIONS

Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust (including the Trust’s investment manager) is indemnified, to the extent permitted by the Act, against certain liabilities that may arise out of performance of their duties to the Portfolio. Additionally, in the normal course of business, the Portfolio enters into contracts that contain a variety of indemnification clauses. The Portfolio’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Portfolio that have not yet occurred. However, the Portfolio has not had prior claims or losses pursuant to these contracts.

12. PURCHASES AND SALES OF SECURITIES

The length of time the Portfolio has held a particular security is not generally a consideration in investment decisions. A change in the securities held by the Portfolio is known as “portfolio turnover.” The Portfolio may engage in frequent and active trading of portfolio securities to achieve its investment objective, particularly during periods of volatile market movements. High portfolio turnover may involve correspondingly greater transaction costs to the Portfolio, including brokerage commissions or dealer mark-ups and other transaction costs on the sale of securities and reinvestments in other securities. Such sales may also result in realization of taxable capital gains, including short-term capital gains (which are generally taxed at ordinary income tax rates). The transaction costs and tax effects associated with portfolio turnover may adversely affect a shareholder’s performance. The portfolio turnover rates are reported in the Financial Highlights.

Purchases and sales of securities (excluding short-term investments) for the period ended December 31, 2018, were as follows (amounts in thousands^†):

U.S. Government/Agency				All Other
Purchases		Sales		Purchases		Sales
$	1,121,804	$	1,148,209	$	70,123	$	57,687

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

13. SHARES OF BENEFICIAL INTEREST

The Trust may issue an unlimited number of shares of beneficial interest with a $0.001 par value. Changes in shares of beneficial interest were as follows (shares and amounts in thousands^†):

	Year Ended 12/31/2018						Year Ended 12/31/2017
	Shares			Amount			Shares			Amount
Receipts for shares sold
Institutional Class		225		$	1,554			176		$	1,250
Class M		9			57			14			90
Administrative Class		8,319			58,104			7,257			52,646
Advisor Class		2,507			17,775			2,252			16,464
Issued as reinvestment of distributions
Institutional Class		10			67			41			287
Class M		1			9			8			57
Administrative Class		780			5,381			4,079			28,472
Advisor Class		343			2,395			1,894			13,385
Cost of shares redeemed
Institutional Class		(139	)		(953	)		(172	)		(1,262	)
Class M		(8	)		(53	)		(15	)		(103	)
Administrative Class		(9,871	)		(68,306	)		(7,704	)		(55,946	)
Advisor Class		(3,086	)		(21,671	)		(2,933	)		(21,372	)
Net increase (decrease) resulting from Portfolio share transactions		(910	)	$	(5,641	)		4,897		$	33,968

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

50 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

As of December 31, 2018, two shareholders each owned 10% or more of the Portfolio’s total outstanding shares comprising 29% of the Portfolio. One of the shareholders is a related party and comprises 12% of the Portfolio. Related parties may include, but are not limited to, the investment manager and its affiliates, affiliated broker dealers, fund of funds and directors or employees of the Trust or Adviser.

14. BASIS FOR CONSOLIDATION

The Commodity Subsidiary, a Cayman Islands exempted company, was incorporated on July 21, 2006, as a wholly owned subsidiary acting as an investment vehicle for the Portfolio in order to effect certain investments for the Portfolio consistent with the Portfolio’s investment objectives and policies as specified in its prospectus and statement of additional information. The Portfolio’s investment portfolio has been consolidated and includes the portfolio holdings of the Portfolio and the Commodity Subsidiary. The consolidated financial statements include the accounts of the Portfolio and the Commodity Subsidiary. All inter-company transactions and balances have been eliminated. A subscription agreement was entered into between the Portfolio and the Commodity Subsidiary on August 1, 2006, comprising the entire issued share capital of the Commodity Subsidiary, with the intent that the Portfolio will remain the sole shareholder and retain all rights. Under the Memorandum and Articles of Association, shares issued by the Commodity Subsidiary confer upon a shareholder the right to receive notice of, to attend and to vote at general meetings of the Commodity Subsidiary and shall confer upon the shareholder rights in a winding-up or repayment of capital and the right to participate in the profits or assets of the Commodity Subsidiary. The net assets of the Commodity Subsidiary as of period end represented 11.9% of the Portfolio’s consolidated net assets.

15. REGULATORY AND LITIGATION MATTERS

The Portfolio is not named as a defendant in any material litigation or arbitration proceedings and is not aware of any material litigation or claim pending or threatened against it.

The foregoing speaks only as of the date of this report.

16. FEDERAL INCOME TAX MATTERS

The Portfolio intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code (the “Code”) and distribute all of its taxable income and net realized gains, if applicable, to shareholders. Accordingly, no provision for Federal income taxes has been made.

The Portfolio may be subject to local withholding taxes, including those imposed on realized capital gains. Any applicable foreign capital gains tax is accrued daily based upon net unrealized gains, and may be payable following the sale of any applicable investments.

In accordance with U.S. GAAP, the Adviser has reviewed the Portfolio’s tax positions for all open tax years. As of December 31, 2018, the Portfolio has recorded no liability for net unrecognized tax benefits relating to uncertain income tax positions it has taken or expects to take in future tax returns.

The Portfolio files U.S. federal, state, and local tax returns as required. The Portfolio’s tax returns are subject to examination by relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return but which can be extended to six years in certain circumstances. Tax returns for open years have incorporated no uncertain tax positions that require a provision for income taxes.

The Portfolio may gain exposure to the commodities markets primarily through index-linked notes, and may invest in other commodity-linked derivative investments, including commodity swap agreements, options, futures contracts, options on futures contracts and foreign funds investing in similar commodity-linked derivatives.

The Portfolio may also gain exposure indirectly to commodity markets by investing in the Commodity Subsidiary, which invests primarily in commodity-linked derivative instruments backed by a portfolio of inflation-indexed securities and/or other fixed income instruments.

One of the requirements for favorable tax treatment as a regulated investment company under the Code is that the Portfolio must derive at least 90% of its gross income from certain qualifying sources of income. The IRS has issued a revenue ruling which holds that income derived from commodity index-linked swaps is not qualifying income under Subchapter M of the Code. The IRS has also issued private letter rulings in which the IRS specifically concluded that income from certain commodity index- linked notes is qualifying income. The IRS has also issued private letter rulings in which the IRS specifically concluded that income derived from an investment in a subsidiary, which invests primarily in commodity-linked swaps, will also be qualifying income. Based on the reasoning in such rulings, the Portfolio will continue to seek to gain exposure to the commodity markets primarily through investments in commodity-linked notes and through investments in the Commodity Subsidiary.

It should be noted, however, that the IRS currently has suspended the issuance of such rulings pending further review. In addition, the IRS also recently issued a revenue procedure, which states that the IRS will not in the future issue private letter rulings that would require a determination of whether an asset (such as a commodity index-linked note) is a “security” under the 1940 Act.

There can be no assurance that the IRS will not change its position that income derived from commodity-linked notes and wholly-owned

ANNUAL REPORT DECEMBER 31, 2018 51

Notes to Financial Statements (Cont.)

subsidiaries is qualifying income. Furthermore, the tax treatment of commodity-linked notes, other commodity-linked derivatives, and the Portfolio’s investments in the Commodity Subsidiary may otherwise be adversely affected by future legislation, court decisions, Treasury Regulations and/or guidance issued by the IRS. Such developments could affect the character, timing and/or amount of the Portfolio’s taxable income or any distributions made by the Portfolio or result in the inability of the Portfolio to operate as described in its Prospectus.

The IRS recently issued proposed regulations that, if finalized, would generally treat the Portfolio’s income inclusion with respect to the Commodity Subsidiary as qualifying income only if there is a distribution out of the earnings and profits of the Commodity Subsidiary that are attributable to such income inclusion. The proposed regulations, if adopted, would apply to taxable years beginning on or after 90 days after the regulations are published as final.

If, during a taxable year, the Commodity Subsidiary’s taxable losses (and other deductible items) exceed its income and gains, the net loss will not pass through to the Portfolio as a deductible amount for income tax purposes. In the event the Commodity Subsidiary’s taxable gains exceed its losses and other deductible items during a taxable year, the net gain will pass through to the Portfolio as income for Federal income tax purposes.

Shares of the Portfolio currently are sold to segregated asset accounts (“Separate Accounts”) of insurance companies that fund variable annuity contracts and variable life insurance policies (“Variable Contracts”). Please refer to the prospectus for the Separate Account and Variable Contract for information regarding Federal income tax treatment of distributions to the Separate Account.

As of December 31, 2018, the components of distributable taxable earnings are as follows (amounts in thousands^†):

	Undistributed Ordinary Income(1)		Undistributed Long-Term Capital Gains		Net Tax Basis Unrealized Appreciation/ (Depreciation)(2)			Other Book-to-Tax Accounting Differences(3)		Accumulated Capital Losses(4)			Qualified Late-Year Loss Deferral - Capital(5)		Qualified Late-Year Loss Deferral - Ordinary(6)
PIMCO CommodityRealReturn® Strategy Portfolio	$	7,971	$	0	$	(13,488	)	$	0	$	(37,010	)	$	0	$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽¹⁾ Includes undistributed short-term capital gains, if any.

⁽²⁾ Adjusted for open wash sale loss deferrals and the accelerated recognition of unrealized gain or loss on certain futures, options and forward contracts for federal income tax purposes. Also adjusted for differences between book and tax realized and unrealized gain (loss) on swap contracts, treasury inflation-protected securities (TIPS), sale/buyback transactions, and straddle loss deferrals.

⁽³⁾ Represents differences in income tax regulations and financial accounting principles generally accepted in the United States of America.

⁽⁴⁾  Capital losses available to offset future net capital gains expire in varying amounts as shown below.

⁽⁵⁾ Capital losses realized during the period November 1, 2018 through December 31, 2018 which the Portfolio elected to defer to the following taxable year pursuant to income tax regulations.

⁽⁶⁾ Specified losses realized during the period November 1, 2018 through December 31, 2018 which the Portfolio elected to defer to the following taxable year pursuant to income tax regulations.

Under the Regulated Investment Company Modernization Act of 2010, a fund is permitted to carry forward any new capital losses for an unlimited period. Additionally, such capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term under previous law.

As of December 31, 2018, the Portfolio had the following post-effective capital losses with no expiration (amounts in thousands^†):

	Short-Term		Long-Term
PIMCO CommodityRealReturn® Strategy Portfolio	$	13,841	$	23,169

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

As of December 31, 2018, the aggregate cost and the net unrealized appreciation/(depreciation) of investments for federal income tax purposes are as follows (amounts in thousands^†):

	Federal Tax Cost		Unrealized Appreciation		Unrealized (Depreciation)			Net  Unrealized Appreciation/ (Depreciation)(7)
PIMCO CommodityRealReturn® Strategy Portfolio	$	577,053	$	10,857	$	(24,362	)	$	(13,505	)

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽⁷⁾ Primary differences, if any, between book and tax net unrealized appreciation/(depreciation) on investments are attributable to open wash sale loss deferrals, unrealized gain or loss on certain futures, options and forward contracts, treasury inflation protected securities (TIPS), sale/buyback transactions, realized and unrealized gain (loss) swap contracts, and straddle loss deferrals.

52 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

For the fiscal year ended December 31, 2018 and December 31, 2017, respectively, the Portfolio made the following tax basis distributions (amounts in thousands^†):

	December 31, 2018						December 31, 2017
	Ordinary Income Distributions(8)		Long-Term Capital Gain Distributions		Return of Capital(9)		Ordinary Income Distributions(8)		Long-Term Capital Gain Distributions		Return of Capital(9)
PIMCO CommodityRealReturn® Strategy Portfolio	$	7,852	$	0	$	0	$	42,201	$	0	$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽⁸⁾ Includes short-term capital gains distributed, if any.

⁽⁹⁾ A portion of the distributions made represents a tax return of capital. Return of capital distributions have been reclassified from undistributed net investment income to paid-in capital to more appropriately conform financial accounting to tax accounting.

ANNUAL REPORT DECEMBER 31, 2018 53

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of PIMCO Variable Insurance Trust and Shareholders of PIMCO CommodityRealReturn^® Strategy Portfolio

Opinion on the Financial Statements

We have audited the accompanying consolidated statement of assets and liabilities, including the consolidated schedule of investments, of PIMCO CommodityRealReturn^® Strategy Portfolio and its subsidiary (one of the portfolios constituting PIMCO Variable Insurance Trust, referred to hereafter as the “Portfolio”) as of December 31, 2018, the related consolidated statements of operations and cash flows for the year ended December 31, 2018, the consolidated statement of changes in net assets for each of the two years in the period ended December 31, 2018, including the related notes, and the financial highlights (consolidated) for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Portfolio as of December 31, 2018, the results of their operations and their cash flows for the year then ended, the changes in their net assets for each of the two years in the period ended December 31, 2018 and the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Portfolio’s management. Our responsibility is to express an opinion on the Portfolio’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Portfolio in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2018 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

Kansas City, Missouri

February 20, 2019

We have served as the auditor of one or more investment companies in PIMCO Variable Insurance Trust since 1998.

54 PIMCO VARIABLE INSURANCE TRUST

Glossary: (abbreviations that may be used in the preceding statements)

(Unaudited)

Counterparty Abbreviations:
BCY	Barclays Capital, Inc.	FICC	Fixed Income Clearing Corporation	MSC	Morgan Stanley & Co., Inc.
BOA	Bank of America N.A.	GLM	Goldman Sachs Bank USA	MYC	Morgan Stanley Capital Services, Inc.
BPG	BNP Paribas Securities Corp.	GST	Goldman Sachs International	MYI	Morgan Stanley & Co. International PLC
BPS	BNP Paribas S.A.	HUS	HSBC Bank USA N.A.	RBC	Royal Bank of Canada
BRC	Barclays Bank PLC	IND	Crédit Agricole Corporate and Investment Bank S.A.	SAL	Citigroup Global Markets, Inc.
CBK	Citibank N.A.	JPM	JP Morgan Chase Bank N.A.	SCX	Standard Chartered Bank
CIB	Canadian Imperial Bank of Commerce	MAC	Macquarie Bank Limited	SOG	Societe Generale
DUB	Deutsche Bank AG	MEI	Merrill Lynch International	SSB	State Street Bank and Trust Co.
FAR	Wells Fargo Bank National Association	MSB	Morgan Stanley Bank, N.A	TDM	TD Securities (USA) LLC
FBF	Credit Suisse International
Currency Abbreviations:
ARS	Argentine Peso	GBP	British Pound	NZD	New Zealand Dollar
AUD	Australian Dollar	IDR	Indonesian Rupiah	PEN	Peruvian New Sol
BRL	Brazilian Real	ILS	Israeli Shekel	RUB	Russian Ruble
CAD	Canadian Dollar	JPY	Japanese Yen	SGD	Singapore Dollar
CNH	Chinese Renminbi (Offshore)	KRW	South Korean Won	TWD	Taiwanese Dollar
COP	Colombian Peso	MXN	Mexican Peso	USD (or $)	United States Dollar
EUR	Euro
Exchange Abbreviations:
CBOT	Chicago Board of Trade	NYMEX	New York Mercantile Exchange	OTC	Over the Counter
KCBT	Kansas City Board of Trade
Index/Spread Abbreviations:
ARLLMONP	Argentina Blended Policy Rate	CPTFEMU	Eurozone HICP ex-Tobacco Index	MEHCL	Custom Commodity Forward Index
BADLARPP	Argentina Badlar Floating Rate Notes	CPURNSA	Consumer Price All Urban Non-Seasonally Adjusted Index	MEHMID	Custom Commodity Forward Index
BCOMF1T	Bloomberg Commodity Index 1-Month Forward Total Return	EURMARGIN	European Refined Margin	MQCP563E	Macquarie MQCP563E Custom Commodity Index
BCOMTR	Bloomberg Commodity Index Total Return	EURSIMP	Weighted Basket of Refined Products	NAPGASFO	Naphtha Fuel Oil Spread
BRENT	Brent Crude	FRCPXTOB	France Consumer Price ex-Tobacco Index	PIMCODB	PIMCO Custom Commodity Basket
CDX.HY	Credit Derivatives Index - High Yield	GOLDLNPM	London Gold Market Fixing Ltd. PM	PLATGOLD	Platinum-Gold Spread
CDX.IG	Credit Derivatives Index - Investment Grade	ISDA	International Swaps and Derivatives Association, Inc.	RBCAEC	Custom Commodity Forward Index
CIXBSTR3	Custom Commodity Index	JMABCT3E	J.P. Morgan Custom Commodity Index	SLVRLND	London Silver Market Fixing Ltd.
CIXBXMB	Custom Commodity Index	JMABDEWE	J.P. Morgan Custom Commodity Index	SPGCICP	S&P Goldman Sachs Commodity Copper Excess Return Index
CMBX	Commercial Mortgage-Backed Index	JMABFNJ1	J.P. Morgan Custom Commodity Index	UKRPI	United Kingdom Retail Prices Index
CMDSKEWLS	CBEO SKEW Index is an index derived from the price of S&P 500 tail risk	JMABNIC	J.P. Morgan Nic Custom Index	ULSD	Ultra-Low Sulfur Diesel
COCL	ICE BofAML Large Cap Contingent Capital Index	LLS	Light Louisiana Sweet Crude	US0003M	3 Month USD Swap Rate
CPALEMU	Euro Area All Items Non-Seasonally Adjusted Index
Other Abbreviations:
BBR	Bank Bill Rate	NCUA	National Credit Union Administration	TBA	To-Be-Announced
BTP	Buoni del Tesoro Poliennali	OAT	Obligations Assimilables du Trésor	TELBOR	Tel Aviv Inter-Bank Offered Rate
CLO	Collateralized Loan Obligation	OIS	Overnight Index Swap	TIIE	Tasa de Interés Interbancaria de Equilibrio “Equilibrium Interbank Interest Rate”
DAC	Designated Activity Company	oz.	Ounce	WTI	West Texas Intermediate
LIBOR	London Interbank Offered Rate	RBOB	Reformulated Blendstock for Oxygenate Blending	YOY	Year-Over-Year
Lunar	Monthly payment based on 28-day periods. One year consists of 13 periods.

ANNUAL REPORT DECEMBER 31, 2018 55

Federal Income Tax Information

(Unaudited)

As required by the Internal Revenue Code (the “Code”) and Treasury Regulations, if applicable, shareholders must be notified regarding the status of qualified dividend income and the dividend received deduction.

Dividend Received Deduction.  Corporate shareholders are generally entitled to take the dividend received deduction on the portion of a Portfolio’s dividend distribution that qualifies under tax law. The percentage of the following Portfolio’s fiscal 2018 ordinary income dividend that qualifies for the corporate dividend received deduction is set forth in the table below.

Qualified Dividend Income.  Under the Jobs and Growth Tax Relief Reconciliation Act of 2003 (the “Act”), the percentage of ordinary dividends paid during the calendar year designated as “qualified dividend income”, as defined in the Act, subject to reduced tax rates in 2018 is set forth for the Portfolio in the table below.

Qualified Interest Income and Qualified Short-Term Capital Gain (for non-U.S. resident shareholders only).  Under the American Jobs Creation Act of 2004, the amounts of ordinary dividends paid during the fiscal year ended December 31, 2018 considered to be derived from “qualified interest income,” as defined in Section 871(k)(1)(E) of the Code, and therefore designated as interest-related dividends, as defined in Section 871(k)(1)(C) of the Code are set forth in the table below. Further, the amounts of ordinary dividends paid during the fiscal year ended December 31, 2018 considered to be derived from “qualified short-term capital gain,” as defined in Section 871(k)(2)(D) of the Code, and therefore designated as qualified short-term gain dividends, as defined by Section 871(k)(2)(C) of the Code are also set forth in the table below.

	Dividend Received Deduction %		Qualified Dividend Income %		Qualified Interest Income (000s† )		Qualified Short-Term Capital Gain (000s†)
PIMCO CommodityRealReturn® Strategy Portfolio		0.00%		0.00%	$	276	$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

Shareholders are advised to consult their own tax advisor with respect to the tax consequences of their investment in the Trust. In January 2019, you will be advised on IRS Form 1099-DIV as to the federal tax status of the dividends and distributions received by you in calendar year 2018.

56 PIMCO VARIABLE INSURANCE TRUST

Management of the Trust

(Unaudited)

The charts below identify the Trustees and executive officers of the Trust. Unless otherwise indicated, the address of all persons below is 650 Newport Center Drive, Newport Beach, CA 92660.

The Portfolio’s Statement of Additional Information includes more information about the Trustees and Officers. To request a free copy, call PIMCO at (888) 87-PIMCO or visit the Portfolio’s website at www.pimco.com/pvit.

Name, Year of Birth and Position Held with Trust*	Term of Office and Length of Time Served†	Principal Occupation(s) During Past 5 Years	Number of Funds in Fund Complex Overseen by Trustee	Other Public Company and Investment Company Directorships Held by Trustee During the Past 5 Years
Interested Trustees1
Peter G. Strelow** (1970) Chairman of the Board and Trustee	05/2017 to present Chairman of the Board - 02/2019 to present	Managing Director and Co-Chief Operating Officer, PIMCO. President of the Trust, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Chief Administrative Officer, PIMCO.	153	Chairman and Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT.
Brent R. Harris** (1959) Trustee	08/1997 to present	Managing Director, PIMCO. Senior Vice President of the Trust, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Formerly, member of Executive Committee, PIMCO.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT; Director, StocksPLUS® Management, Inc; and member of Board of Governors, Investment Company Institute. Formerly, Chairman, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT.
Independent Trustees
George E. Borst (1948) Trustee	04/2015 to present	Executive Advisor, McKinsey & Company (since 10/14); Formerly, Executive Advisor, Toyota Financial Services (10/13-12/14); and CEO, Toyota Financial Services (1/01-9/13).	132	Trustee, PIMCO Funds and PIMCO ETF Trust; Director, MarineMax Inc.
Jennifer Holden Dunbar (1963) Trustee	04/2015 to present	Managing Director, Dunbar Partners, LLC (business consulting and investments). Formerly, Partner, Leonard Green & Partners, L.P.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT; Director, PS Business Parks; Director, Big 5 Sporting Goods Corporation.
Kym M. Hubbard (1957) Trustee	02/2017 to present	Formerly, Global Head of Investments, Chief Investment Officer and Treasurer, Ernst & Young.	132	Trustee, PIMCO Funds and PIMCO ETF Trust; Director, State Auto Financial Corporation.
Gary F. Kennedy (1955) Trustee	04/2015 to present	Formerly, Senior Vice President, General Counsel and Chief Compliance Officer, American Airlines and AMR Corporation (now American Airlines Group) (1/03-1/14).	132	Trustee, PIMCO Funds and PIMCO ETF Trust.
Peter B. McCarthy (1950) Trustee	04/2015 to present	Formerly, Assistant Secretary and Chief Financial Officer, United States Department of Treasury; Deputy Managing Director, Institute of International Finance.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Ronald C. Parker (1951) Lead Independent Trustee	07/2009 to present Lead Independent Trustee - 02/2017 to present	Director of Roseburg Forest Products Company. Formerly, Chairman of the Board, The Ford Family Foundation; and President, Chief Executive Officer, Hampton Affiliates (forestry products).	153	Lead Independent Trustee, PIMCO Funds and PIMCO ETF Trust; Trustee, PIMCO Equity Series and PIMCO Equity Series VIT.

* Unless otherwise noted, the information for the individuals listed is as of December 31, 2018.

** Effective February 13, 2019, Mr. Strelow became the Chairman of the Trust.

¹  Mr. Harris and Mr. Strelow are “interested persons” of the Trust (as that term is defined in the 1940 Act) because of their affiliations with PIMCO.

^†  Trustees serve until their successors are duly elected and qualified.

ANNUAL REPORT DECEMBER 31, 2018 57

Management of the Trust (Cont.)

(Unaudited)

Executive Officers

Name, Year of Birth and Position Held with Trust	Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years*
Peter G. Strelow (1970) President	01/2015 to present	Managing Director and Co-Chief Operating Officer, PIMCO. President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Chief Administrative Officer, PIMCO.
Joshua D. Ratner (1976)** Chief Legal Officer	11/2018 to present Vice President - Senior Counsel and Secretary 11/2013 to 11/2018 Assistant Secretary 10/2007 to 01/2011	Executive Vice President and Deputy General Counsel, PIMCO. Chief Legal Officer, PIMCO Investments LLC. Chief Legal Officer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Jennifer E. Durham (1970) Chief Compliance Officer	07/2004 to present	Managing Director and Chief Compliance Officer, PIMCO. Chief Compliance Officer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Brent R. Harris (1959) Senior Vice President	01/2015 to present President 03/2009 to 01/2015	Managing Director, PIMCO. Senior Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Formerly, member of Executive Committee, PIMCO.
Ryan G. Leshaw (1980) Vice President, Senior Counsel and Secretary	11/2018 to present Assistant Secretary 05/2012 to 11/2018	Senior Vice President and Senior Counsel, PIMCO. Vice President, Senior Counsel and Secretary, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Assistant Secretary, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Associate, Willkie Farr & Gallagher LLP.
Wu-Kwan Kit (1981) Assistant Secretary	08/2017 to present	Senior Vice President and Senior Counsel, PIMCO. Assistant Secretary, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Vice President, Senior Counsel and Secretary, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Assistant General Counsel, VanEck Associates Corp.
Stacie D. Anctil (1969) Vice President	05/2015 to present Assistant Treasurer 11/2003 to 05/2015	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
William G. Galipeau (1974) Vice President	11/2013 to present	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Eric D. Johnson (1970) Vice President	05/2011 to present	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Henrik P. Larsen (1970) Vice President	02/1999 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Bijal Y. Parikh (1978) Vice President	02/2017 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Greggory S. Wolf (1970) Vice President	05/2011 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Trent W. Walker (1974) Treasurer	11/2013 to present	Executive Vice President, PIMCO. Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Erik C. Brown (1967)** Assistant Treasurer	02/2001 to present	Executive Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Colleen D. Miller (1980)** Assistant Treasurer	02/2017 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Christopher M. Morin (1980) Assistant Treasurer	08/2016 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Jason J. Nagler (1982)** Assistant Treasurer	05/2015 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.

* The term “PIMCO-Sponsored Closed-End Funds” as used herein includes: PIMCO California Municipal Income Fund, PIMCO California Municipal Income Fund II, PIMCO California Municipal Income Fund III, PIMCO Municipal Income Fund, PIMCO Municipal Income Fund II, PIMCO Municipal Income Fund III, PIMCO New York Municipal Income Fund, PIMCO New York Municipal Income Fund II, PIMCO New York Municipal Income Fund III, PCM Fund Inc., PIMCO Corporate & Income Opportunity Fund, PIMCO Corporate & Income Strategy Fund, PIMCO Dynamic Credit and Mortgage Income Fund, PIMCO Dynamic Income Fund, PIMCO Global StocksPLUS^® & Income Fund, PIMCO High Income Fund, PIMCO Income Opportunity Fund, PIMCO Income Strategy Fund, PIMCO Income Strategy Fund II and PIMCO Strategic Income Fund, Inc.; the term “PIMCO-Sponsored Interval Funds” as used herein includes: PIMCO Flexible Credit Income Fund and PIMCO Flexible Municipal Income Fund.

** The address of these officers is Pacific Investment Management Company LLC, 1633 Broadway, New York, New York 10019.

58 PIMCO VARIABLE INSURANCE TRUST

Privacy Policy¹

(Unaudited)

The Trust^2,3 considers customer privacy to be a fundamental aspect of its relationships with shareholders and is committed to maintaining the confidentiality, integrity and security of its current, prospective and former shareholders’ non-public personal information. The Trust has developed policies that are designed to protect this confidentiality, while allowing shareholder needs to be served.

OBTAINING PERSONAL INFORMATION

In the course of providing shareholders with products and services, the Trust and certain service providers to the Trust, such as the Trust’s investment advisers or sub-advisers (“Advisers”), may obtain non-public personal information about shareholders, which may come from sources such as account applications and other forms, from other written, electronic or verbal correspondence, from shareholder transactions, from a shareholder’s brokerage or financial advisory firm, financial advisor or consultant, and/or from information captured on applicable websites.

RESPECTING YOUR PRIVACY

As a matter of policy, the Trust does not disclose any non-public personal information provided by shareholders or gathered by the Trust to non-affiliated third parties, except as required or permitted by law or as necessary for such third parties to perform their agreements with respect to the Trust. As is common in the industry, non-affiliated companies may from time to time be used to provide certain services, such as preparing and mailing prospectuses, reports, account statements and other information, conducting research on shareholder satisfaction and gathering shareholder proxies. The Trust or its affiliates may also retain non-affiliated companies to market the Trust’s shares or products which use the Trust’s shares and enter into joint marketing arrangements with them and other companies. These companies may have access to a shareholder’s personal and account information, but are permitted to use this information solely to provide the specific service or as otherwise permitted by law. In most cases, the shareholders will be clients of a third party, but the Trust may also provide a shareholder’s personal and account information to the shareholder’s respective brokerage or financial advisory firm and/or financial advisor or consultant.

SHARING INFORMATION WITH THIRD PARTIES

The Trust reserves the right to disclose or report personal or account information to non-affiliated third parties in limited circumstances where the Trust believes in good faith that disclosure is required under law, to cooperate with regulators or law enforcement authorities, to protect its rights or property, or upon reasonable request by any fund advised by PIMCO in which a shareholder has invested. In addition, the Trust may disclose information about a shareholder or a shareholder’s accounts to a non-affiliated third party at the shareholder’s request or with the consent of the shareholder.

SHARING INFORMATION WITH AFFILIATES

The Trust may share shareholder information with its affiliates in connection with servicing shareholders’ accounts, and subject to applicable law may provide shareholders with information about products and services that the Trust or its Advisers, distributors or their affiliates (“Service Affiliates”) believe may be of interest to such shareholders. The information that the Trust may share may include, for example, a shareholder’s participation in the Trust or in other investment programs sponsored by a Service Affiliate, a shareholder’s

ownership of certain types of accounts (such as IRAs), information about the Trust’s experiences or transactions with a shareholder, information captured on applicable websites, or other data about a shareholder’s accounts, subject to applicable law. The Trust’s Service Affiliates, in turn, are not permitted to share shareholder information with non-affiliated entities, except as required or permitted by law.

PROCEDURES TO SAFEGUARD PRIVATE INFORMATION

The Trust takes seriously the obligation to safeguard shareholder non-public personal information. In addition to this policy, the Trust has implemented procedures that are designed to restrict access to a shareholder’s non-public personal information to internal personnel who need to know that information to perform their jobs, such as servicing shareholder accounts or notifying shareholders of new products or services. Physical, electronic and procedural safeguards are in place to guard a shareholder’s non-public personal information.

INFORMATION COLLECTED FROM WEBSITES

Websites maintained by the Trust or its service providers may use a variety of technologies to collect information that help the Trust and its service providers understand how the website is used. Information collected from your web browser (including small files stored on your device that are commonly referred to as “cookies”) allow the websites to recognize your web browser and help to personalize and improve your user experience and enhance navigation of the website. In addition, the Trust or its Service Affiliates may use third parties to place advertisements for the Trust on other websites, including banner advertisements. Such third parties may collect anonymous information through the use of cookies or action tags (such as web beacons). The information these third parties collect is generally limited to technical and web navigation information, such as your IP address, web pages visited and browser type, and does not include personally identifiable information such as name, address, phone number or email address. If you are a registered user of the Trust’s website, the Trust or their service providers or third party firms engaged by the Trust or their service providers may collect or share information submitted by you, which may include personally identifiable information. This information can be useful to the Trust when assessing and offering services and website features. You can change your cookie preferences by changing the setting on your web browser to delete or reject cookies. If you delete or reject cookies, some website pages may not function properly. The Trust does not look for web browser “do not track” requests.

CHANGES TO THE PRIVACY POLICY

From time to time, the Trust may update or revise this privacy policy. If there are changes to the terms of this privacy policy, documents containing the revised policy on the relevant website will be updated.

¹ Amended as of February 15, 2017.

² PIMCO Investments LLC (“PI”) serves as the Trust’s distributor. This Privacy Policy applies to the activities of PI to the extent that PI regularly effects or engages in transactions with or for a Trust shareholder who is the record owner of such shares. For purposes of this Privacy Policy, references to “the Trust” shall include PI when acting in this capacity.

³ When distributing this Policy, the Trust may combine the distribution with any similar distribution of its investment adviser’s privacy policy. The distributed, combined policy may be written in the first person (i.e., by using “we” instead of “the Trust”).

ANNUAL REPORT DECEMBER 31, 2018 59

Approval of Investment Advisory Contract and Other Agreements

Approval of Renewal of the Amended and Restated Investment Advisory Contract, Supervision and Administration Agreement and Amended and Restated Asset Allocation Sub-Advisory Agreement

At a meeting held on August 20-21, 2018, the Board of Trustees (the “Board”) of PIMCO Variable Insurance Trust (the “Trust”), including the Trustees who are not “interested persons” of the Trust under the Investment Company Act of 1940, as amended (the “Independent Trustees”), considered and unanimously approved the renewal of the Amended and Restated Investment Advisory Contract (the “Investment Advisory Contract”) between the Trust, on behalf of each of the Trust’s series (the “Portfolios”), and Pacific Investment Management Company LLC (“PIMCO”) for an additional one-year term through August 31, 2019. The Board also considered and unanimously approved the renewal of the Supervision and Administration Agreement (together with the Investment Advisory Contract, the “Agreements”) between the Trust, on behalf of the Portfolios, and PIMCO for an additional one-year term through August 31, 2019. In addition, the Board considered and unanimously approved the renewal of the Amended and Restated Asset Allocation Sub-Advisory Agreement (the “Asset Allocation Agreement”) between PIMCO, on behalf of PIMCO All Asset Portfolio and PIMCO All Asset All Authority Portfolio, each a series of the Trust, and Research Affiliates, LLC (“Research Affiliates”) for an additional one-year term through August 31, 2019.

The information, material factors and conclusions that formed the basis for the Board’s approvals are summarized below.

1. INFORMATION RECEIVED

(a) Materials Reviewed:  During the course of the past year, the Trustees received a wide variety of materials relating to the services provided by PIMCO and Research Affiliates to the Trust. At each of its quarterly meetings, the Board reviewed the Portfolios’ investment performance and a significant amount of information relating to Portfolio operations, including shareholder services, valuation and custody, the Portfolios’ compliance program and other information relating to the nature, extent and quality of services provided by PIMCO and Research Affiliates to the Trust and each of the Portfolios, as applicable. In considering whether to approve the renewal of the Agreements and the Asset Allocation Agreement, the Board reviewed additional information, including, but not limited to, comparative industry data with regard to investment performance, advisory and supervisory and administrative fees and expenses, financial information for PIMCO and, where relevant, Research Affiliates, information regarding the profitability to PIMCO of its relationship with the Portfolios, information about the personnel providing investment management services, other advisory services and supervisory and administrative services to the Portfolios, and information about the fees

charged and services provided to other clients with similar investment mandates as the Portfolios, where applicable. In addition, the Board reviewed materials provided by counsel to the Trust and the Independent Trustees, which included, among other things, memoranda outlining legal duties of the Board in considering the renewal of the Agreements and the Asset Allocation Agreement.

(b) Review Process:  In connection with considering the renewal of the Agreements and the Asset Allocation Agreement, the Board reviewed written materials prepared by PIMCO and, where applicable, Research Affiliates in response to requests from counsel to the Trust and the Independent Trustees encompassing a wide variety of topics. The Board requested and received assistance and advice regarding, among other things, applicable legal standards from counsel to the Trust and the Independent Trustees, and reviewed comparative fee and performance data prepared at the Board’s request by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company performance information and fee and expense data. The Board received information on matters related to the Agreements and the Asset Allocation Agreement and met both as a full Board and in a separate session of the Independent Trustees, without management present, at the August 20-21, 2018 meeting. The Independent Trustees also conducted in-person meetings with counsel to the Trust and the Independent Trustees, including one on July 18, 2018, to discuss the Lipper Report, as defined below, and certain aspects of the 2018 15(c) materials presented and other matters deemed relevant to their consideration of the renewal of the Agreements and the Asset Allocation Agreement. In connection with its review of the Agreements, the Board received comparative information on the performance and the fees and expenses of other peer group funds and share classes. In addition, the Independent Trustees requested and received supplemental information.

The approval determinations were made on the basis of each Trustee’s business judgment after consideration and evaluation of all the information presented. Individual Trustees may have given different weights to certain factors and assigned various degrees of materiality to information received in connection with the approval process. In deciding to approve the renewal of the Agreements and the Asset Allocation Agreement, the Board did not identify any single factor or particular information that, in isolation, was controlling. The discussion below is intended to summarize the broad factors and information that figured prominently in the Board’s consideration of the renewal of the Agreements and the Asset Allocation Agreement, but is not intended to summarize all of the factors considered by the Board.

2. NATURE, EXTENT AND QUALITY OF SERVICES

(a) PIMCO, Research Affiliates, their Personnel, and Resources:  The Board considered the depth and quality of PIMCO’s investment management process, including: the experience, capability and integrity

60 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

of its senior management and other personnel; the overall financial strength and stability of its organization; and the ability of its organizational structure to address changes in the Portfolios’ asset levels. The Board also considered the various services in addition to portfolio management that PIMCO provides under the Investment Advisory Contract. The Board noted that PIMCO makes available to its investment professionals a variety of resources and systems relating to investment management, compliance, trading, performance and portfolio accounting. The Board also noted PIMCO’s commitment to enhancing and investing in its global infrastructure, technology capabilities, risk management processes and the specialized talent needed to stay at the forefront of the competitive investment management industry and to strengthen its ability to deliver services under the Agreements. The Board considered PIMCO’s policies, procedures and systems reasonably designed to assure compliance with applicable laws and regulations and its commitment to further developing and strengthening these programs, its oversight of matters that may involve conflicts of interest between the Portfolios’ investments and those of other accounts managed by PIMCO, and its efforts to keep the Trustees informed about matters relevant to the Portfolios and their shareholders. The Board also considered PIMCO’s continuous investment in new disciplines and talented personnel, which has enhanced PIMCO’s services to the Portfolios and has allowed PIMCO to introduce innovative new portfolios over time. In addition, the Board considered the nature and quality of services provided by PIMCO to the wholly-owned subsidiaries of certain applicable Portfolios.

The Trustees considered that PIMCO has continued to strengthen the process it uses to actively manage counterparty risk and to assess the financial stability of counterparties with which the Portfolios do business, to manage collateral and to protect Portfolios from an unforeseen deterioration in the creditworthiness of trading counterparties. The Trustees noted that, consistent with its fiduciary duty, PIMCO executes transactions through a competitive best execution process and uses only those counterparties that meet its stringent and monitored criteria. The Trustees considered that PIMCO’s collateral management team utilizes a counterparty risk system to analyze portfolio level exposure and collateral being exchanged with counterparties.

In addition, the Trustees considered new services and service enhancements that PIMCO has implemented since the Board renewed the Agreements in 2017, including, but not limited to upgrading the global network and infrastructure to support trading and risk management systems; enhancing and continuing to expand capabilities within the pre-trade compliance platform; enhancing flexible client reporting capabilities to support increased differentiation within local markets; developing new application and database frameworks to support new trading strategies; expanding proprietary applications

suites to enrich capabilities across Compliance, Analytics, Risk Management, Client Reporting, Attribution and Customer Relationship management; continuing investment in its enterprise risk management function, including PIMCO’s cybersecurity program and global business continuity functions; oversight by the Americas Fund Oversight Committee, which provides senior-level oversight and supervision focused on new and ongoing fund-related business opportunities; engaging a third party service provider to implement the SEC reporting modernization regime; expanding the Fund Treasurer’s Office; enhancing a proprietary application to provide portfolio managers with more timely and high quality income reporting; developing a global tax management application that will enable investment professionals to access foreign market and security tax information on a real-time basis; enhancing reporting of tax reporting for portfolio managers for income products with improved transparency on tax factors impacting income generation and dividend yield; upgrading a proprietary application to allow shareholder subscription and redemption data to pass to portfolio managers more quickly and efficiently; and continuing to expand the pricing portal and the proprietary performance reconciliation tool.

Similarly, the Board considered the asset allocation services provided by Research Affiliates to the PIMCO All Asset Portfolio and PIMCO All Asset All Authority Portfolio. The Board further considered PIMCO’s oversight of Research Affiliates in connection with Research Affiliates providing asset allocation services to the Asset Portfolio and All Asset All Authority Portfolio. The Board also considered the depth and quality of Research Affiliates’ investment management and research capabilities, the experience and capabilities of its portfolio management personnel and the overall financial strength of the organization.

Ultimately, the Board concluded that the nature, extent and quality of services provided or procured by PIMCO under the Agreements and provided by Research Affiliates under the Asset Allocation Agreement are likely to continue to benefit the Portfolios and their respective shareholders, as applicable.

(b) Other Services:  The Board also considered the nature, extent and quality of supervisory and administrative services provided by PIMCO to the Portfolios under the Supervision and Administration Agreement.

The Board considered the terms of the Supervision and Administration Agreement, under which the Trust pays for the supervisory and administrative services provided pursuant to that agreement under what is essentially an all-in fee structure (the “unified fee”). In return, PIMCO provides or procures certain supervisory and administrative services and bears the costs of various third party services required by the Portfolios, including audit, custodial, portfolio accounting, legal, transfer agency, sub-accounting and printing costs. The Board noted that the scope and complexity, as well as the costs, of the supervisory

ANNUAL REPORT DECEMBER 31, 2018 61

Approval of Investment Advisory Contract and Other Agreements (Cont.)

and administrative services provided by PIMCO under the Supervision and Administration Agreement continue to increase. The Board considered PIMCO’s provision of supervisory and administrative services and its supervision of the Trust’s third party service providers to assure that these service providers continue to provide a high level of service relative to alternatives available in the market.

Ultimately, the Board concluded that the nature, extent and quality of the services provided by PIMCO has benefited, and will likely continue to benefit, the Portfolios and their shareholders.

3. INVESTMENT PERFORMANCE

The Board reviewed information from PIMCO concerning the Portfolios’ performance, as available, over short- and long-term periods ended March 31, 2018 and other performance data, as available, over short- and long-term periods ended June 30, 2018 (the “PIMCO Report”) and from Broadridge concerning the Portfolios’ performance, as available, over short- and long-term periods ended March 31, 2018 (the “Lipper Report”).

The Board considered information regarding both the short- and long-term investment performance of each Portfolio relative to its peer group and relevant benchmark index as provided to the Board in advance of each of its quarterly meetings throughout the year, including the PIMCO Report and Lipper Report, which were provided in advance of the August 20-21, 2018 meeting. The Trustees noted that many of the Portfolios outperformed their respective Lipper medians on a net-of-fees basis over the three-, five- and ten-year periods ended March 31, 2018. The Board also noted that, as of March 31, 2018, the Administrative Class of 72%, 35% and 73% of the Portfolios outperformed their respective Lipper category median on a net-of-fees basis over the three-, five- and ten-year periods, respectively. The Trustees considered that other classes of each Portfolio would have substantially similar performance to that of the Administrative Class of the relevant Portfolio on a relative basis because all of the classes are invested in the same portfolio of investments and that differences in performance among classes could principally be attributed to differences in the supervisory and administrative fees and distribution and servicing expenses of each class. The Board also considered that the investment objectives of certain of the Portfolios may not always be identical to those of the other funds in their respective peer groups and that the Lipper categories do not: separate funds based upon maturity or duration; account for the applicable Portfolios’ hedging strategies; distinguish between enhanced index and actively managed equity strategies; include as many subsets as the Portfolios offer (i.e., Portfolios may be placed in a “catch-all” Lipper category to which they do not properly belong); or account for certain fee waivers. The Board noted that, due to these differences, performance comparisons between certain of the Portfolios and their so-called peers may not be

particularly relevant to the consideration of Portfolio performance but found the comparative information supported its overall evaluation.

The Board noted that performance for a majority of the Portfolios has been mixed compared to their respective benchmark indexes over the five-year period ended March 31, 2018. The Board noted that, as of March 31, 2018, 70%, 23% and 92% of the Trust’s assets (based on Administrative Class performance) outperformed their respective benchmarks on a net-of-fees basis over the three-, five- and ten-year periods, respectively. The Board also discussed actions that have been taken by PIMCO to attempt to improve performance and took note of PIMCO’s plans to monitor performance going forward.

The Board considered PIMCO’s discussion of the intensive nature of managing bond funds, noting that it requires the management of a number of factors, including: varying maturities; prepayments; collateral management; counterparty management; pay-downs; credit and corporate events; workouts; derivatives; net new issuance in the bond market; and decreased market maker inventory levels. The Board noted that in addition to managing these factors, PIMCO must also balance risk controls and strategic positions in each portfolio it manages, including the Portfolios. Despite these challenges, the Board noted PIMCO’s ability to generate non-market correlated excess performance for its clients over time, including the Trust.

The Board ultimately concluded, within the context of all of its considerations in connection with the Agreements, that PIMCO’s performance record and process in managing the Portfolios indicates that its continued management is likely to benefit the Portfolios and their shareholders, and merits the approval of the renewal of the Agreements.

4. ADVISORY FEES, SUPERVISORY AND ADMINISTRATIVE FEES AND TOTAL EXPENSES

The Board considered that PIMCO seeks to price new funds and classes to scale. PIMCO reported to the Board that, in proposing fees for any Portfolio or class of shares, it considers a number of factors, including, but not limited to, the type and complexity of the services provided, the cost of providing services, the risk assumed by PIMCO in the development of products and the provision of services and the competitive marketplace for financial products. Fees charged to or proposed for different Portfolios for advisory services and supervisory and administrative services may vary in light of these various factors. The Board considered that portfolio pricing generally is not driven by comparison to passively-managed products.

In addition, PIMCO reported to the Board that it periodically reviews the fees charged to the Portfolios. The Board noted that, based upon this review, PIMCO may propose advisory fee or supervisory and administrative fee changes where (i) a Portfolio’s long-term performance warrants additional consideration; (ii) there is a notable aid to market

62 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

position; (iii) a Portfolio’s fee does not reflect the current level of supervision or administrative fees provided to the Portfolio; or (iv) PIMCO would like to change a Portfolio’s overall strategic positioning.

The Board reviewed the advisory fees, supervisory and administrative fees and total expenses of the Portfolios (each as a percentage of average net assets) and compared such amounts with the average and median fee and expense levels of other similar funds. The Board also reviewed information relating to the sub-advisory fees paid to Research Affiliates with respect to applicable Portfolios, taking into account that PIMCO compensates Research Affiliates from the advisory fees paid by such Portfolios to PIMCO. With respect to advisory fees, the Board reviewed data from Broadridge that compared the average and median advisory fees of other funds in a “Peer Group” of comparable funds, as well as the universe of other similar funds. The Board noted that a number of Portfolios have total expense ratios that fall below the average and median expense ratios in their Peer Group and Lipper universe. In addition, the Board considered fee waivers in place for certain of the Portfolios and also noted the fee waivers in place with respect to the advisory fee and supervisory and administrative fee that might result from investments by applicable Portfolios in their respective wholly-owned subsidiaries. The Board also considered that PIMCO reviews the Portfolios’ fee levels and carefully considers changes where appropriate.

The Board also reviewed data comparing the Portfolios’ advisory fees to the standard and negotiated fee rates PIMCO charges to separate accounts, collective investment trusts and sub-advised clients with similar investment strategies. In cases where the fees for other clients were lower than those charged to the Portfolios, the Trustees noted that the differences in fees were attributable to various factors, including, but not limited to, differences in the advisory and other services provided by PIMCO to the Portfolios, differences in the number or extent of the services provided by PIMCO to the Portfolios, the manner in which similar portfolios may be managed, different requirements with respect to liquidity management and the implementation of other regulatory requirements, and the fact that separate accounts may have other contractual arrangements or arrangements across PIMCO strategies that justify different levels of fees. The Board considered that, with respect to collective investment trusts, PIMCO performs fewer or less extensive services because collective investment trusts are generally exempt from SEC regulation; investors in a collective investment trust may receive shareholder services from a trustee bank, rather than PIMCO; collective investment trusts have less regulatory disclosure; and the management structure of collective investment trusts differs from that of funds. The Trustees also considered that PIMCO faces increased entrepreneurial, legal and regulatory risk in sponsoring and managing mutual funds and ETFs as compared to separate accounts, external sub-advised funds or other investment products.

Regarding advisory fees charged by PIMCO in its capacity as sub-adviser to third party/unaffiliated funds, the Trustees took into account that such fees may be lower than the fees charged by PIMCO to serve as adviser to the Portfolios. The Trustees also took into account that there are various reasons for any such differences in fees, including, but not limited to, the fact that PIMCO may be subject to varying levels of entrepreneurial risk and regulatory requirements, differing legal liabilities on a contract-by-contract basis and different servicing requirements when PIMCO does not serve as the sponsor of a fund and is not principally responsible for all aspects of a fund’s investment program and operations as compared to when PIMCO serves as investment adviser and sponsor.

The Board considered the Portfolios’ supervisory and administrative fees, comparing them to similar funds in the report supplied by Broadridge. The Board also considered that as the Portfolios’ business has become increasingly complex and the number of Portfolios has grown over time, PIMCO has provided an increasingly broad array of fund supervisory and administrative functions. In addition, the Board considered the Trust’s unified fee structure, under which the Trust pays for the supervisory and administrative services it requires for one set fee. In return for this unified fee, PIMCO provides or procures supervisory and administrative services and bears the costs of various third party services required by the Portfolios, including audit, custodial, portfolio accounting, legal, transfer agency, sub-accounting and printing costs. The Board further considered that many other funds pay for comparable services separately, and thus it is difficult to directly compare the Trust’s unified supervisory and administrative fees with the fees paid by other funds for administrative services alone. The Board also considered that the unified supervisory and administrative fee leads to Portfolio fees that are fixed over the contract period, rather than variable. The Board noted that, although the unified fee structure does not have breakpoints, it implicitly reflects economies of scale by fixing the absolute level of Portfolio fees at competitive levels over the contract period even if the Portfolios’ operating costs rise when assets remain flat or decrease. Other factors the Board considered in assessing the unified fee include PIMCO’s approach of pricing Portfolios to scale at inception and reinvesting in other important areas of the business that support the Portfolios. The Board considered that the Portfolios’ unified fee structure meant that fees were not impacted by recent outflows in certain Portfolios, unlike funds without a unified fee structure, which may see increased expense ratios when fixed costs, such as service provider costs, are passed through to a smaller asset base. The Board considered historical advisory and supervisory and administrative fee reductions implemented for different Portfolios and classes, noting that the unified fee can be increased or decreased in subsequent contractual periods and is subject to the periodic reviews discussed above. The Board noted that, with few exceptions, PIMCO

ANNUAL REPORT DECEMBER 31, 2018 63

Approval of Investment Advisory Contract and Other Agreements (Cont.)

has generally maintained Portfolio fees at the same level as implemented when the unified fee was adopted, and has reduced fees for a number of Portfolios in prior years. The Board concluded that the Portfolios’ supervisory and administrative fees were reasonable in relation to the value of the services provided, including the services provided to different classes of shareholders, and that the expenses assumed contractually by PIMCO under the Supervision and Administration Agreement represent, in effect, a cap on overall Portfolio fees during the contractual period, which is beneficial to the Portfolios and their shareholders.

The Board considered the Portfolios’ total expenses and discussed with PIMCO those Portfolios and/or classes of Portfolios that had above median total expenses. The Board noted that many of the Portfolios are unique products that have few peers, if any, and cannot easily be grouped with comparable funds. Upon comparing the Portfolios’ total expenses to other funds in the “Peer Groups” provided by Broadridge, the Board found total expenses of each Portfolio to be reasonable.

The Trustees also considered the advisory fees charged to the Portfolios that operate as funds of funds (the “Funds of Funds”) and the advisory services provided in exchange for such fees. The Trustees determined that such services were in addition to the advisory services provided to the underlying funds in which the Funds of Funds may invest and, therefore, such services were not duplicative of the advisory services provided to the underlying funds. The Board also considered the various fee waiver agreements in place for the Funds of Funds. The Board noted that PIMCO is continuing waivers for these Funds of Funds, as well as for certain other Portfolios of the Trust.

Based on the information presented by PIMCO, Research Affiliates and Broadridge, members of the Board determined, in the exercise of their business judgment, that the level of the advisory fees and supervisory and administrative fees charged by PIMCO under the Agreements, as well as the total expenses of each Portfolio, after the proposals to decrease the management fee, are reasonable.

5. ADVISER COSTS, LEVEL OF PROFITS AND ECONOMIES OF SCALE

The Board reviewed information regarding PIMCO’s costs of providing services to the Funds as a whole, as well as the resulting level of profits to PIMCO under both the adjusted asset profitability method and the profit and loss profitability method, which were each utilized to calculate profitability. To the extent applicable, the Board also reviewed information regarding the portion of a Portfolio’s advisory fee retained by PIMCO, following the payment of sub-advisory fees to Research Affiliates, with respect to the Portfolio. Additionally, the Board noted that profit margins with respect to the Trust shows that the Trust is profitable, although less so than PIMCO Funds due to payments made

by PIMCO to participating insurance companies. The Board further noted PIMCO’s engagement of a third party to review and to make recommendations regarding PIMCO’s processes supporting its profitability estimation materials. The Board also noted that it had received information regarding the structure and manner in which PIMCO’s investment professionals were compensated, and PIMCO’s view of the relationship of such compensation to the attraction and retention of quality personnel. The Board considered PIMCO’s need to invest in global infrastructure, technology capabilities, risk management processes and qualified personnel to reinforce and offer new services and to accommodate changing regulatory requirements.

With respect to potential economies of scale, the Board noted that PIMCO shares the benefits of economies of scale with the Portfolios and their shareholders in a number of ways, including investing in portfolio and trade operations management, firm technology, middle and back office support, legal and compliance, and fund administration logistics, senior management supervision, governance and oversight of those services, and through fee reductions or waivers, the pricing of Portfolios to scale from inception, and the enhancement of services provided to the Portfolios in return for fees paid. The Board reviewed the history of the Portfolios’ fee structure. The Board considered that the Portfolios’ unified fee rates had been set competitively and/or priced to scale from inception, had been held steady during the contractual period at that scaled competitive rate for most Portfolios as assets grew, or as assets declined in the case of some Portfolios, and continued to be competitive compared with peers. The Board also considered that the unified fee is a transparent means of informing a Portfolio’s shareholders of the fees associated with the Portfolio, and that the Portfolio bears certain expenses that are not covered by the advisory fee or the unified fee. The Board further considered the challenges that arise when managing large funds, which can result in certain “diseconomies” of scale and noted that PIMCO has continued to reinvest in many areas of the business to support the Portfolios.

The Trustees considered that the unified fee has provided inherent economies of scale because a Portfolio maintains competitive fixed fees over the annual contract period even if the particular Portfolio’s assets decline and/or operating costs rise. The Trustees further considered that, in contrast, breakpoints may be a proxy for charging higher fees on lower asset levels and that when a fund’s assets decline, breakpoints may reverse, which causes expense ratios to increase. The Trustees also considered that, unlike the Portfolios’ unified fee structure, funds with “pass through” administrative fee structures may experience increased expense ratios when fixed dollar fees are charged against declining fund assets. The Trustees also considered that the unified fee protects shareholders from a rise in operating costs that may result from, among other things, PIMCO’s investments in various business enhancements and infrastructure, including those referenced above. The Trustees noted that PIMCO’s investments in these areas are extensive.

64 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

The Board concluded that the Portfolios’ cost structures were reasonable and that PIMCO is appropriately sharing economies of scale, if any, through the Portfolios’ unified fee structure, generally pricing Portfolios to scale at inception and reinvesting in its business to provide enhanced and expanded services to the Portfolios and their shareholders.

6. ANCILLARY BENEFITS

The Board considered other benefits realized by PIMCO and its affiliates as a result of PIMCO’s relationship with the Trust. Such benefits may include possible ancillary benefits to PIMCO’s institutional investment management business due to the reputation and market penetration of the Trust or third party service providers’ relationship-level fee concessions, which decrease fees paid by PIMCO. The Board also considered that affiliates of PIMCO provide distribution and/or shareholder services to the Portfolios and their shareholders, for which they may be compensated through distribution and servicing fees paid pursuant to the Portfolios’ Rule 12b-1 plans or otherwise. The Board reviewed PIMCO’s soft dollar policies and procedures, noting that while PIMCO has the authority to receive the benefit of research provided by broker-dealers executing portfolio transactions on behalf of the Portfolios, it has adopted a policy not to enter into contractual soft dollar arrangements.

7. CONCLUSIONS

Based on their review, including their comprehensive consideration and evaluation of each of the broad factors and information summarized above, the Independent Trustees and the Board as a whole concluded that the nature, extent and quality of the services rendered to the Portfolios by PIMCO and Research Affiliates supported the renewal of the Agreements and the Asset Allocation Agreement. The Independent Trustees and the Board as a whole concluded that the Agreements and the Asset Allocation Agreement continued to be fair and reasonable to the Portfolios and their shareholders, that the Portfolios’ shareholders received reasonable value in return for the fees paid to PIMCO by the Portfolios under the Agreements and the fees paid to Research Affiliates by PIMCO under the Asset Allocation Agreement, and that the renewal of the Agreements and the Asset Allocation Agreement was in the best interests of the Portfolios and their shareholders.

ANNUAL REPORT DECEMBER 31, 2018 65

General Information

Investment Adviser and Administrator

Pacific Investment Management Company LLC

650 Newport Center Drive

Newport Beach, CA 92660

Distributor

PIMCO Investments LLC

1633 Broadway

New York, NY 10019

Custodian

State Street Bank and Trust Company

801 Pennsylvania Avenue

Kansas City, MO 64105

Transfer Agent

DST Asset Manager Solutions, Inc.

430 W 7th Street STE 219024

Kansas City, MO 64105-1407

Legal Counsel

Dechert LLP

1900 K Street, N.W.

Washington, D.C. 20006

Independent Registered Public Accounting Firm

PricewaterhouseCoopers LLP

1100 Walnut Street, Suite 1300

Kansas City, MO 64106

This report is submitted for the general information of the shareholders of the Portfolio listed on the Report cover.

pimco.com/pvit

PVIT03AR_123118

PIMCO VARIABLE INSURANCE TRUST

Annual Report

December 31, 2018

PIMCO Dynamic Bond Portfolio

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, you may not be receiving paper copies of the Portfolio’s shareholder reports from the insurance company that offers your contract unless you specifically request paper copies from the insurance company or from your financial intermediary. Instead, the shareholder reports will be made available on a website, and the insurance company will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the insurance company electronically by following the instructions provided by the insurance company.

You may elect to receive all future reports in paper free of charge from the insurance company. You should contact the insurance company if you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all portfolio companies available under your contract at the insurance company.

Table of Contents

	Page
Chairman’s Letter		2
Important Information About the PIMCO Dynamic Bond Portfolio*		4
Portfolio Summary		6
Expense Example		7
Financial Highlights		8
Statement of Assets and Liabilities		10
Statement of Operations		11
Statements of Changes in Net Assets		12
Schedule of Investments		13
Notes to Financial Statements		24
Report of Independent Registered Public Accounting Firm		43
Glossary		44
Federal Income Tax Information		45
Management of the Trust		46
Privacy Policy		48
Approval of Investment Advisory Contract and Other Agreements		49

* Prior to July 30, 2018, the PIMCO Dynamic Bond Portfolio was named the PIMCO Unconstrained Bond Portfolio.

This material is authorized for use only when preceded or accompanied by the current PIMCO Variable Insurance Trust (the “Trust”) prospectus for the Portfolio. (The variable product prospectus may be obtained by contacting your Investment Consultant.)

Chairman’s Letter

Dear PIMCO Variable Insurance Trust Shareholder,

Following this letter is the PIMCO Variable Insurance Trust Annual Report, which covers the 12-month reporting period ended December 31, 2018. On the subsequent pages you will find specific details regarding investment results and discussion of the factors that most affected performance during the reporting period.

For the 12-month reporting period ended December 31, 2018

The U.S. economy continued to expand during the reporting period. Looking back, U.S. gross domestic product (“GDP”) grew at an annual pace of 2.2% during the first quarter of 2018. During the second quarter of 2018, GDP growth rose to an annual pace of 4.2%, the strongest since the third quarter of 2014. GDP then expanded at an annual pace of 3.4% during the third quarter of the year. Finally, the Commerce Department’s initial reading for fourth-quarter 2018 GDP has been delayed due to the partial government shutdown.

The Federal Reserve (the “Fed”) continued to normalize monetary policy during the reporting period. During its meetings that concluded in March, June, September and December 2018, the Fed raised the federal funds rate in 0.25% increments. The Fed’s December rate hike pushed the federal funds rate to a range between 2.25% and 2.50%. In addition, the Fed continued to reduce its balance sheet during the reporting period.

Economic activity outside the U.S. initially accelerated during the reporting period, but moderated as it progressed. Against this backdrop, the European Central Bank (the “ECB”) and the Bank of Japan largely maintained their highly accommodative monetary policies, while other central banks took a more hawkish stance. The Bank of England raised rates at its meeting in August 2018 and the Bank of Canada raised rates twice during the reporting period. Meanwhile, the ECB ended its quantitative easing program in December 2018, but indicated that it does not expect to raise interest rates “at least through the summer of 2019.”

The U.S. Treasury yield curve flattened during the reporting period as short-term rates moved up more than longer-term rates. In our view, the increase in rates at the short end of the yield curve was mostly due to Fed interest rate increases. The yield on the benchmark 10-year U.S. Treasury note was 2.69% at the end of the reporting period, up from 2.40% on December 31, 2017. U.S. Treasuries, as measured by the Bloomberg Barclays U.S. Treasury Index, returned 0.86% over the 12 months ended December 31, 2018. Meanwhile, the Bloomberg Barclays U.S. Aggregate Bond Index, a widely used index of U.S. investment grade bonds, returned 0.01% over the period. Riskier fixed income asset classes, including high yield corporate bonds and emerging market debt, generated weak results versus the broad U.S. market. The ICE BofAML U.S. High Yield Index returned -2.27% over the reporting period, whereas emerging market external debt, as represented by the JPMorgan Emerging Markets Bond Index (EMBI) Global, returned -4.61% over the reporting period. Emerging market local bonds, as represented by the JPMorgan Government Bond Index-Emerging Markets Global Diversified Index (Unhedged), returned -6.21% over the period.

Global equities produced poor results during the reporting period. U.S. equities moved sharply higher over the first nine months of the period. We believe this rally was driven by a number of factors, including corporate profits that often exceeded expectations. However, U.S. equities fell sharply during the fourth quarter of 2018. We believe this was triggered by a number of factors, including signs of moderating global growth, concerns over future Fed rate hikes, the ongoing trade dispute between the U.S. and China and the partial U.S. government shutdown. All told, U.S. equities, as represented by the S&P 500 Index, returned -4.38% during the reporting period. Elsewhere, emerging market equities, as measured by the MSCI Emerging Markets Index, returned -14.58% during the reporting period, whereas global equities, as represented by the MSCI World Index, returned -8.71%. Elsewhere, Japanese equities, as represented by the Nikkei 225 Index (in JPY), returned -10.39% during the reporting period and European equities, as represented by the MSCI Europe Index (in EUR), returned -10.57%.

Commodity prices fluctuated and generally declined during the reporting period. When the reporting period began, West Texas crude oil was approximately $65 a barrel, but by the end it was roughly $45 a barrel. This was driven in

2 PIMCO VARIABLE INSURANCE TRUST

part by increased supply and declining global demand. Elsewhere, gold and copper prices also moved lower during the reporting period.

Finally, during the reporting period the foreign exchange markets experienced periods of volatility, due in part to signs of decoupling economic growth and central bank policies, along with a number of geopolitical events. The U.S. dollar produced mixed results against other major currencies during the reporting period. For example, the U.S. dollar appreciated 4.71% and 5.90% versus the euro and the British pound, respectively, whereas the U.S. dollar depreciated 2.66% versus the yen during the reporting period.

Thank you for the assets you have placed with us. We deeply value your trust, and we will continue to work diligently to meet your broad investment needs.

Sincerely,     Brent R. Harris Chairman of the Board PIMCO Variable Insurance Trust  

Past performance is no guarantee of future results. Unless otherwise noted, index returns reflect the reinvestment of income distributions and capital gains, if any, but do not reflect fees, brokerage commissions or other expenses of investing. It is not possible to invest directly in an unmanaged index.

ANNUAL REPORT DECEMBER 31, 2018 3

Important Information About the PIMCO Dynamic Bond Portfolio

PIMCO Variable Insurance Trust (the “Trust”) is an open-end management investment company that includes the PIMCO Dynamic Bond Portfolio (formerly the PIMCO Unconstrained Bond Portfolio) (the “Portfolio”). The Portfolio is only available as a funding vehicle under variable life insurance policies or variable annuity contracts issued by insurance companies (“Variable Contracts”). Individuals may not purchase shares of the Portfolio directly. Shares of the Portfolio also may be sold to qualified pension and retirement plans outside of the separate account context.

We believe that bond funds have an important role to play in a well-diversified investment portfolio. It is important to note, however, that in an environment where interest rates may trend upward, rising rates would negatively impact the performance of most bond funds, and fixed income securities and other instruments held by the Portfolio are likely to decrease in value. A wide variety of factors can cause interest rates to rise (e.g., central bank monetary policies, inflation rates, general economic conditions, etc.). In addition, changes in interest rates can be sudden and unpredictable, and there is no guarantee that management will anticipate such movement accurately. The Portfolio may lose money as a result of movements in interest rates.

As of the date of this report, interest rates in the U.S. and many parts of the world, including certain European countries, are at or near historically low levels. Thus, the Portfolio currently faces a heightened level of interest rate risk, especially since the Fed has ended its quantitative easing program and has begun, and may continue, to raise interest rates. To the extent the Fed continues to raise interest rates, there is a risk that rates across the financial system may rise. Further, while bond markets have steadily grown over the past three decades, dealer inventories of corporate bonds are near historic lows in relation to market size. As a result, there has been a significant reduction in the ability of dealers to “make markets.”

Bond funds and individual bonds with a longer duration (a measure used to determine the sensitivity of a security’s price to changes in interest rates) tend to be more sensitive to changes in interest rates, usually making them more volatile than securities or funds with shorter durations. All of the factors mentioned above, individually or collectively, could lead to increased volatility and/or lower liquidity in the fixed income markets or negatively impact the Portfolio’s performance or cause the Portfolio to incur losses. As a result, the Portfolio may experience increased shareholder redemptions, which, among other things, could further reduce the net assets of the Portfolio.

The Portfolio may be subject to various risks as described in the Portfolio’s prospectus and in the Principal Risks in the Notes to Financial Statements.

The geographical classification of foreign (non-U.S.) securities in this report are classified by the country of incorporation of a holding. In certain instances, a security’s country of incorporation may be different from its country of economic exposure.

The United States presidential administration’s enforcement of tariffs on goods from other countries, with a focus on China, has contributed to international trade tensions and may impact portfolio securities.

The United Kingdom’s decision to leave the European Union may impact Portfolio returns. This decision may cause substantial volatility in foreign exchange markets, lead to weakness in the exchange rate of the British pound, result in a sustained period of market uncertainty, and destabilize some or all of the other European Union member countries and/or the Eurozone.

On the Portfolio Summary page in this Shareholder Report, the Average Annual Total Return table and Cumulative Returns chart measure performance assuming that any dividend and capital gain distributions were reinvested. The Cumulative Returns chart reflects only Administrative Class performance. Performance may vary by share class based on each class’s expense ratios. The Portfolio measures its performance against at least one broad-based securities market index (“benchmark index”). The benchmark index does not take into account fees, expenses, or taxes. The Portfolio’s past performance, before and after taxes, is not necessarily an indication of how the Portfolio will perform in the future. There is no assurance that the Portfolio, even if the Portfolio has experienced high or unusual performance for one or more periods, will experience similar levels of performance in the future. High performance is defined as a significant increase in either 1) the Portfolio’s total return in excess of that of the Portfolio’s benchmark between reporting periods or 2) the Portfolio’s total return in excess of the Portfolio’s historical returns between reporting periods. Unusual performance is defined as a significant change in the Portfolio’s performance as compared to one or more previous reporting periods.

The following table discloses the inception dates of the Portfolio and its respective share classes along with the Portfolio's diversification status as of period end:

Portfolio Name

Portfolio Inception

Institutional Class

Class M

Administrative Class

Advisor Class

Diversification Status

PIMCO Dynamic Bond Portfolio

05/02/11

04/30/12

10/31/14

05/02/11

04/30/13

Diversified

4 PIMCO VARIABLE INSURANCE TRUST

An investment in the Portfolio is not a bank deposit and is not guaranteed or insured by the Federal Deposit Insurance Corporation (“FDIC”) or any other government agency. It is possible to lose money on investments in the Portfolio.

The Trustees are responsible generally for overseeing the management of the Trust. The Trustees authorize the Trust to enter into service agreements with the Adviser, the Distributor, the Administrator and other service providers in order to provide, and in some cases authorize

service providers to procure through other parties, necessary or desirable services on behalf of the Trust and the Portfolio. Shareholders are not parties to or third-party beneficiaries of such service agreements. Neither this Portfolio’s prospectus nor summary prospectus, the Trust’s Statement of Additional Information (“SAI”), any contracts filed as exhibits to the Trust’s registration statement, nor any other communications, disclosure documents or regulatory filings (including this report) from or on behalf of the Trust or the Portfolio creates a contract between or among any shareholder of the Portfolio, on the one hand, and the Trust, the Portfolio, a service provider to the Trust or the Portfolio, and/or the Trustees or officers of the Trust, on the other hand. The Trustees (or the Trust and its officers, service providers or other delegates acting under authority of the Trustees) may amend the most recent prospectus or use a new prospectus, summary prospectus or SAI with respect to the Portfolio or the Trust, and/or amend, file and/or issue any other communications, disclosure documents or regulatory filings, and may amend or enter into any contracts to which the Trust or the Portfolio is a party, and interpret the investment objective(s), policies, restrictions and contractual provisions applicable to the Portfolio, without shareholder input or approval, except in circumstances in which shareholder approval is specifically required by law (such as changes to fundamental investment policies) or where a shareholder approval requirement is specifically disclosed in the Trust’s then-current prospectus or SAI.

PIMCO has adopted written proxy voting policies and procedures (“Proxy Policy”) as required by Rule 206(4)-6 under the Investment Advisers Act of 1940, as amended. The Proxy Policy has been adopted by the Trust as the policies and procedures that PIMCO will use when voting proxies on behalf of the Portfolio. A description of the policies and procedures that PIMCO uses to vote proxies relating to portfolio securities of the Portfolio, and information about how the Portfolio voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, are available without charge, upon request, by calling the Trust at (888) 87-PIMCO, on the Portfolio’s website at www.pimco.com/pvit, and on the Securities and Exchange Commission’s (“SEC”) website at www.sec.gov.

The Trust files a complete schedule of the Portfolio’s holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. A copy of the Portfolio’s Form N-Q is available on the SEC’s website at www.sec.gov. A copy of the Portfolio’s Form N-Q is also available without charge, upon request, by calling the Trust at (888) 87-PIMCO and on the Portfolio’s website at www.pimco.com/pvit.

The SEC adopted a rule that, beginning in 2021, generally will allow shareholder reports to be delivered to investors by providing access to such reports online free of charge and by mailing a notice that the report is electronically available. Pursuant to the rule, investors may still elect to receive a complete shareholder report in the mail. Instructions for electing to receive paper copies of the Portfolio’s shareholder reports going forward may be found on the front cover of this report.

The SEC adopted amendments to certain disclosure requirements relating to open-end investment companies’ liquidity risk management programs. Effective December 1, 2019, large fund complexes will be required to include in their shareholder reports a discussion of their liquidity risk management programs’ operations over the past year.

ANNUAL REPORT DECEMBER 31, 2018 5

PIMCO Dynamic Bond Portfolio

Cumulative Returns Through December 31, 2018

$10,000 invested at the end of the month when the Portfolio’s Administrative Class commenced operations.

Allocation Breakdown as of 12/31/2018^†§

U.S. Treasury Obligations	33.4%
Corporate Bonds & Notes	20.9%
U.S. Government Agencies	18.2%
Asset-Backed Securities	16.1%
Non-Agency Mortgage-Backed Securities	4.7%
Short-Term Instruments‡	3.3%
Sovereign Issues	2.6%
Other	0.8%

^†  % of Investments, at value.

^§  Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.

^‡  Includes Central Funds Used for Cash Management Purposes.

Average Annual Total Return for the period ended December 31, 2018
		1 Year		5 Years		Inception≈
	PIMCO Dynamic Bond Portfolio Institutional Class		1.18%		2.55%		2.58%
	PIMCO Dynamic Bond Portfolio Class M		0.73%		—		1.81%
	PIMCO Dynamic Bond Portfolio Administrative Class		1.03%		2.39%		2.26%
	PIMCO Dynamic Bond Portfolio Advisor Class		0.93%		2.29%		1.47%
	3 Month USD LIBOR Index±		2.20%		0.92%		0.72%¨

All Portfolio returns are net of fees and expenses.

^≈ For class inception dates please refer to the Important Information.

^¨ Average annual total return since 05/02/2011.

^± The 3 Month USD LIBOR (London Interbank Offered Rate) Index is an average interest rate, determined by the ICE Benchmark Administration, that banks charge one another for the use of short-term money (3 months) in England’s Eurodollar market.

It is not possible to invest directly in an unmanaged index.

Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. The Portfolio’s performance does not reflect the deduction of additional charges and expenses imposed in connection with investing in Variable Contracts, which will reduce returns. Differences in the Portfolio’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the prices of individual positions (which may be sourced from different pricing vendors or other sources) used by the Portfolio and the index. For performance current to the most recent month-end, visit www.pimco.com/pvit or via (888) 87-PIMCO.

The Portfolio’s total annual operating expense ratio in effect as of period end were 0.88% for Institutional Class shares, 1.33% for Class M shares, 1.03% for Administrative Class shares, and 1.13% for Advisor Class shares. Details regarding any changes to the Portfolio’s operating expenses, subsequent to period end, can be found in the Portfolio’s current prospectus, as supplemented.

Investment Objective and Strategy Overview

PIMCO Dynamic Bond Portfolio seeks maximum long-term return, consistent with preservation of capital and prudent investment management, by investing under normal circumstances at least 80% of its assets in a diversified portfolio of Fixed Income Instruments of varying maturities, which may be represented by forwards or derivatives such as options, futures contracts, or swap agreements. “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. Portfolio strategies may change from time to time. Please refer to the Portfolio’s current prospectus for more information regarding the Portfolio’s strategy.

Portfolio Insights

The following affected performance during the reporting period:

» Long exposure to non-agency mortgages contributed to performance, as the BAML Fixed Rate Home Equity Index, which generally tracks the price performance of non-agency mortgages, increased.

» Short positioning at the 2-year portion of the U.S. Treasury yield curve contributed during the first half of the year, as rates rose. Long positions in U.S. nominal rates, primarily at the 2- and 10-year portion of the yield curve, contributed to performance, as yields fell during the latter half of the reporting period.

» Short exposure to the euro contributed to performance, as the euro depreciated versus the U.S. dollar.

» Long exposure to investment grade corporate credit detracted from performance, as the Bloomberg Barclays Corporate Average OAS, which generally measures corporate credit spreads, widened.

» Holdings of sovereign and quasi-sovereign external debt detracted from performance, as the JP Morgan Emerging Market Bond Index, which generally tracks the total return of emerging market external debt, fell.

» Long currency positioning to the Argentine peso detracted from performance, as the peso depreciated against the U.S. dollar.

6 PIMCO VARIABLE INSURANCE TRUST

Expense Example PIMCO Dynamic Bond Portfolio

Example

As a shareholder of the Portfolio, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees (if applicable), and other Portfolio expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in the Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds.

The Expense Example does not reflect any fees or other expenses imposed by the Variable Contracts. If it did, the expenses reflected in the Expense Example would be higher. The Example is based on an investment of $1,000 invested at the beginning of the period and held from July 1, 2018 to December 31, 2018 unless noted otherwise in the table and footnotes below.

Actual Expenses

The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60), then multiply the result by the number in the appropriate row for your share class, in the column titled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other portfolios. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other portfolios.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information under the heading “Hypothetical (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different portfolios. In addition, if these transactional costs were included, your costs would have been higher.

Expense ratios may vary period to period because of various factors, such as an increase in expenses that are not covered by the management fees such as fees and expenses of the independent trustees and their counsel, extraordinary expenses and interest expense.

	Actual						Hypothetical (5% return before expenses)
	Beginning Account Value (07/01/18)		Ending Account Value (12/31/18)		Expenses Paid During Period*		Beginning Account Value (07/01/18)		Ending Account Value (12/31/18)		Expenses Paid During Period*		Net Annualized Expense Ratio**
Institutional Class	$	1,000.00	$	1,006.20	$	5.21	$	1,000.00	$	1,020.01	$	5.24		1.03	%
Class M		1,000.00		1,004.00		7.48		1,000.00		1,017.74		7.53		1.48
Administrative Class		1,000.00		1,005.50		5.96		1,000.00		1,019.26		6.01		1.18
Advisor Class		1,000.00		1,005.00		6.47		1,000.00		1,018.75		6.51		1.28

* Expenses Paid During Period are equal to the net annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Overall fees and expenses of investing in the Portfolio will be higher because the example does not reflect variable contract fees and expenses.

** Net Annualized Expense Ratio is reflective of any applicable contractual fee waivers and/or expense reimbursements or voluntary fee waivers. Details regarding fee waivers, if any, can be found in Note 9, Fees and Expenses, in the Notes to Financial Statements.

ANNUAL REPORT DECEMBER 31, 2018 7

Financial Highlights PIMCO Dynamic Bond Portfolio

			Investment Operations								Less Distributions(b)
Selected Per Share Data for the Year or Period Ended^:	Net Asset Value Beginning of Year or Period		Net Investment Income (Loss)(a)		Net Realized/ Unrealized Gain (Loss)			Total			From Net Investment Income			From Net Realized Capital Gain		Total			Net Asset Value End of Year or Period		Total Return
Institutional Class
12/31/2018	$	10.54	$	0.33	$	(0.21	)	$	0.12		$	(0.31	)	$	0.00	$	(0.31	)	$	10.35		1.18	%
12/31/2017		10.21		0.28		0.24			0.52			(0.19	)		0.00		(0.19	)		10.54		5.16
12/31/2016		9.92		0.30		0.18			0.48			(0.19	)		0.00		(0.19	)		10.21		4.89
12/31/2015		10.45		0.29		(0.45	)		(0.16	)		(0.37	)		0.00		(0.37	)		9.92		(1.53	)
12/31/2014		10.25		0.14		0.19			0.33			(0.13	)		0.00		(0.13	)		10.45		3.20
Class M
12/31/2018		10.54		0.29		(0.21	)		0.08			(0.27	)		0.00		(0.27	)		10.35		0.73
12/31/2017		10.21		0.22		0.26			0.48			(0.15	)		0.00		(0.15	)		10.54		4.69
12/31/2016		9.92		0.25		0.18			0.43			(0.14	)		0.00		(0.14	)		10.21		4.42
12/31/2015		10.45		0.25		(0.46	)		(0.21	)		(0.32	)		0.00		(0.32	)		9.92		(1.96	)
10/31/2014 - 12/31/2014		10.49		0.04		(0.06	)		(0.02	)		(0.02	)		0.00		(0.02	)		10.45		(0.17	)
Administrative Class
12/31/2018		10.54		0.32		(0.21	)		0.11			(0.30	)		0.00		(0.30	)		10.35		1.03
12/31/2017		10.21		0.25		0.26			0.51			(0.18	)		0.00		(0.18	)		10.54		5.01
12/31/2016		9.92		0.29		0.17			0.46			(0.17	)		0.00		(0.17	)		10.21		4.73
12/31/2015		10.45		0.26		(0.44	)		(0.18	)		(0.35	)		0.00		(0.35	)		9.92		(1.68	)
12/31/2014		10.25		0.13		0.18			0.31			(0.11	)		0.00		(0.11	)		10.45		3.04
Advisor Class
12/31/2018		10.54		0.31		(0.21	)		0.10			(0.29	)		0.00		(0.29	)		10.35		0.93
12/31/2017		10.21		0.24		0.26			0.50			(0.17	)		0.00		(0.17	)		10.54		4.90
12/31/2016		9.92		0.27		0.18			0.45			(0.16	)		0.00		(0.16	)		10.21		4.63
12/31/2015		10.45		0.26		(0.45	)		(0.19	)		(0.34	)		0.00		(0.34	)		9.92		(1.78	)
12/31/2014		10.25		0.16		0.14			0.30			(0.10	)		0.00		(0.10	)		10.45		2.94

^ A zero balance may reflect actual amounts rounding to less than $0.01 or 0.01%.

* Annualized

^(a)  Per share amounts based on average number of shares outstanding during the year or period.

^(b)  The tax characterization of distributions is determined in accordance with Federal income tax regulations. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

^(c)  Effective October 2, 2017, the Portfolio’s Investment advisory fee was decreased by 0.05% to an annual rate of 0.55%.

8 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

Ratios/Supplemental Data
		Ratios to Average Net Assets
Net Assets End of Year or Period (000s)		Expenses			Expenses Excluding Waivers			Expenses Excluding Interest Expense			Expenses Excluding Interest Expense and Waivers			Net Investment Income (Loss)			Portfolio Turnover Rate
$	24,611		1.00	%		1.00	%		0.85	%		0.85	%		3.16	%		189	%
	30,451		0.92	(c)		0.92	(c)		0.89	(c)		0.89	(c)		2.70			210
	15,701		0.91			0.91			0.90			0.90			3.02			364
	15,902		0.91			0.91			0.90			0.90			2.83			414
	374		0.90			0.90			0.90			0.90			1.32			255
	632		1.45			1.45			1.30			1.30			2.74			189
	685		1.37	(c)		1.37	(c)		1.34	(c)		1.34	(c)		2.13			210
	672		1.36			1.36			1.35			1.35			2.53			364
	345		1.36			1.36			1.35			1.35			2.37			414
	15		1.35	*		1.35	*		1.35	*		1.35	*		2.42	*		255
	261,278		1.15			1.15			1.00			1.00			3.04			189
	281,332		1.07	(c)		1.07	(c)		1.04	(c)		1.04	(c)		2.43			210
	275,774		1.06			1.06			1.05			1.05			2.87			364
	263,768		1.06			1.06			1.05			1.05			2.50			414
	288,528		1.05			1.05			1.05			1.05			1.25			255
	14,310		1.25			1.25			1.10			1.10			2.95			189
	12,874		1.17	(c)		1.17	(c)		1.14	(c)		1.14	(c)		2.34			210
	11,461		1.16			1.16			1.15			1.15			2.76			364
	9,126		1.16			1.16			1.15			1.15			2.47			414
	4,805		1.15			1.15			1.15			1.15			1.53			255

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 9

Statement of Assets and Liabilities PIMCO Dynamic Bond Portfolio

(Amounts in thousands†, except per share amounts)	December 31, 2018
Assets:
Investments, at value
Investments in securities*	$	401,908
Investments in Affiliates		4,617
Financial Derivative Instruments
Exchange-traded or centrally cleared		201
Over the counter		816
Deposits with counterparty		2,080
Foreign currency, at value		1,033
Receivable for investments sold		17,196
Receivable for TBA investments sold		22,425
Receivable for Portfolio shares sold		57
Interest and/or dividends receivable		2,011
Dividends receivable from Affiliates		6
Total Assets		452,350
Liabilities:
Borrowings & Other Financing Transactions
Payable for reverse repurchase agreements	$	60,505
Financial Derivative Instruments
Exchange-traded or centrally cleared		333
Over the counter		1,300
Payable for investments purchased		943
Payable for investments in Affiliates purchased		6
Payable for TBA investments purchased		86,692
Deposits from counterparty		1,082
Payable for Portfolio shares redeemed		411
Accrued investment advisory fees		137
Accrued supervisory and administrative fees		74
Accrued distribution fees		3
Accrued servicing fees		33
Total Liabilities		151,519
Net Assets	$	300,831
Net Assets Consist of:
Paid in capital	$	291,915
Distributable earnings (accumulated loss)		8,916
Net Assets	$	300,831
Net Assets:
Institutional Class	$	24,611
Class M		632
Administrative Class		261,278
Advisor Class		14,310
Shares Issued and Outstanding:
Institutional Class		2,377
Class M		61
Administrative Class		25,240
Advisor Class		1,382
Net Asset Value Per Share Outstanding:
Institutional Class	$	10.35
Class M		10.35
Administrative Class		10.35
Advisor Class		10.35
Cost of investments in securities	$	400,950
Cost of investments in Affiliates	$	4,616
Cost of foreign currency held	$	1,023
Cost or premiums of financial derivative instruments, net	$	2,215
* Includes repurchase agreements of:	$	211

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

10 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

Statement of Operations PIMCO Dynamic Bond Portfolio

(Amounts in thousands†)	Year Ended December 31, 2018
Investment Income:
Interest	$	12,963
Dividends		30
Dividends from Investments in Affiliates		208
Total Income		13,201
Expenses:
Investment advisory fees		1,733
Supervisory and administrative fees		945
Distribution and/or servicing fees - Class M		3
Servicing fees - Administrative Class		414
Distribution and/or servicing fees - Advisor Class		34
Trustee fees		9
Interest expense		476
Miscellaneous expense		3
Total Expenses		3,617
Net Investment Income (Loss)		9,584
Net Realized Gain (Loss):
Investments in securities		(3,921	)
Investments in Affiliates		2
Exchange-traded or centrally cleared financial derivative instruments		7,050
Over the counter financial derivative instruments		1,803
Foreign currency		(138	)
Net Realized Gain (Loss)		4,796
Net Change in Unrealized Appreciation (Depreciation):
Investments in securities		(7,131	)
Exchange-traded or centrally cleared financial derivative instruments		(4,246	)
Over the counter financial derivative instruments		370
Foreign currency assets and liabilities		17
Net Change in Unrealized Appreciation (Depreciation)		(10,990	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	3,390

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 11

Statements of Changes in Net Assets PIMCO Dynamic Bond Portfolio

(Amounts in thousands†)	Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets from:
Operations:
Net investment income (loss)	$	9,584		$	7,701
Net realized gain (loss)		4,796			4,968
Net change in unrealized appreciation (depreciation)		(10,990	)		2,546
Net Increase (Decrease) in Net Assets Resulting from Operations		3,390			15,215
Distributions to Shareholders:
From net investment income and/or net realized capital gains*
Institutional Class		(750	)		(353	)
Class M		(18	)		(10	)
Administrative Class		(7,796	)		(4,876	)
Advisor Class		(375	)		(201	)
Total Distributions(a)		(8,939	)		(5,440	)
Portfolio Share Transactions:
Net increase (decrease) resulting from Portfolio share transactions**		(18,962	)		11,959
Total Increase (Decrease) in Net Assets		(24,511	)		21,734
Net Assets:
Beginning of year		325,342			303,608
End of year	$	300,831		$	325,342

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

* See Note 2, New Accounting Pronouncements, in the Notes to Financial Statements for more information.

** See Note 13, Shares of Beneficial Interest, in the Notes to Financial Statements.

^(a)  The tax characterization of distributions is determined in accordance with Federal income tax regulations. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

12 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

Schedule of Investments PIMCO Dynamic Bond Portfolio

December 31, 2018

(Amounts in thousands*, except number of shares, contracts and units, if any)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
INVESTMENTS IN SECURITIES 133.6%
LOAN PARTICIPATIONS AND ASSIGNMENTS 0.8%
Avolon Holdings Ltd.
4.470% (LIBOR03M + 2.000%) due 01/15/2025 ~	$		917	$		885
Caesars Resort Collection LLC
5.272% (LIBOR03M + 2.750%) due 12/22/2024 ~			297			285
Charter Communications Operating LLC
4.530% (LIBOR03M + 2.000%) due 04/30/2025 ~			195			188
RegionalCare Hospital Partners Holdings, Inc.
7.129% (LIBOR03M + 4.500%) due 11/16/2025 ~			600			569
Wyndham Hotels & Resorts, Inc.
4.272% due 05/30/2025			599			577
Total Loan Participations and Assignments (Cost $2,572)						2,504
CORPORATE BONDS & NOTES 28.2%
BANKING & FINANCE 18.2%
ABN AMRO Bank NV
4.750% due 07/28/2025			100			100
AerCap Ireland Capital DAC
3.950% due 02/01/2022			500			491
AGFC Capital Trust
4.186% (US0003M + 1.750%) due 01/15/2067 ~			100			45
Aircastle Ltd.
5.500% due 02/15/2022			600			614
American International Group, Inc.
4.125% due 02/15/2024			300			302
Aviation Capital Group LLC
3.688% (US0003M + 0.950%) due 06/01/2021 ~			900			899
Bank of America Corp.
3.550% due 03/05/2024 •			1,400			1,384
4.382% due 10/21/2025 ~	MXN		2,000			130
5.875% due 03/15/2028 •(g)	$		600			547
Barclays Bank PLC
7.625% due 11/21/2022 (h)			400			415
14.000% due 06/15/2019 •(g)	GBP		500			668
Barclays PLC
4.375% due 01/12/2026	$		1,000			952
6.500% due 09/15/2019 •(g)(h)	EUR		200			224
Blackstone CQP Holdco LP
6.500% due 03/20/2021	$		300			302
Citibank N.A.
3.400% due 07/23/2021			500			501
Citigroup, Inc.
4.044% due 06/01/2024 •			600			603
6.250% due 08/15/2026 •(g)			200			192
Cooperatieve Rabobank UA
2.500% due 01/19/2021			500			492
3.750% due 07/21/2026			700			657
6.875% due 03/19/2020 (h)	EUR		1,100			1,363
Credit Agricole S.A.
6.500% due 06/23/2021 •(g)(h)			300			351
Credit Suisse AG
6.500% due 08/08/2023 (h)	$		600			627
Credit Suisse Group AG
2.997% due 12/14/2023 •			550			524
Credit Suisse Group Funding Guernsey Ltd.
3.750% due 03/26/2025			700			671
Deutsche Bank AG
4.250% due 10/14/2021			1,450			1,419
Ford Motor Credit Co. LLC
0.054% due 12/01/2021 •	EUR		100			107
0.114% due 05/14/2021 •			200			219
3.157% due 08/04/2020	$		500			490
3.851% (US0003M + 1.235%) due 02/15/2023 ~			900			833

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Goldman Sachs Group, Inc.
2.876% due 10/31/2022 •	$		800	$		777
3.200% due 02/23/2023			300			291
3.625% due 01/22/2023			300			296
3.691% due 06/05/2028 •			1,800			1,676
Harley-Davidson Financial Services, Inc.
3.647% (US0003M + 0.940%) due 03/02/2021 ~			800			799
HSBC Holdings PLC
3.400% due 03/08/2021			600			598
3.908% (US0003M + 1.500%) due 01/05/2022 ~			400			404
4.292% due 09/12/2026 •			500			494
4.300% due 03/08/2026			500			494
5.875% due 09/28/2026 •(g)(h)	GBP		400			489
6.250% due 03/23/2023 •(g)(h)	$		500			469
International Lease Finance Corp.
8.250% due 12/15/2020			900			968
Intesa Sanpaolo SpA
3.875% due 01/12/2028			1,000			856
JPMorgan Chase & Co.
3.797% due 07/23/2024 •			300			301
4.218% (US0003M + 1.480%) due 03/01/2021 ~			2,000			2,026
5.990% (US0003M + 3.470%) due 01/30/2019 ~(g)			502			497
Lloyds Banking Group PLC
7.000% due 06/27/2019 •(g)(h)	GBP		400			511
7.625% due 06/27/2023 •(g)(h)			1,956			2,571
7.875% due 06/27/2029 •(g)(h)			200			274
Mitsubishi UFJ Financial Group, Inc.
2.190% due 09/13/2021	$		700			676
Mizuho Financial Group, Inc.
3.922% due 09/11/2024 •			500			506
Morgan Stanley
3.125% due 01/23/2023			200			195
3.591% due 07/22/2028 •			800			757
3.772% due 01/24/2029 •			100			96
National Rural Utilities Cooperative Finance Corp.
3.178% (US0003M + 0.375%) due 06/30/2021 ~			600			596
Nationstar Mortgage Holdings, Inc.
9.125% due 07/15/2026			600			585
Nationwide Building Society
3.766% due 03/08/2024 •			300			289
4.302% due 03/08/2029 •			1,700			1,601
Navient Corp.
5.875% due 03/25/2021			200			192
Nordea Kredit Realkreditaktieselskab
2.000% due 10/01/2019	DKK		5,000			782
Nykredit Realkredit A/S
1.000% due 10/01/2019			31,200			4,841
Realkredit Danmark A/S
1.000% due 04/01/2019			5,500			847
2.000% due 04/01/2019			8,000			1,235
Royal Bank of Scotland Group PLC
8.625% due 08/15/2021 •(g)(h)	$		1,200			1,245
Santander UK PLC
2.500% due 03/14/2019			1,400			1,398
3.400% due 06/01/2021			500			498
Springleaf Finance Corp.
6.125% due 05/15/2022			250			244
Standard Chartered PLC
3.770% (US0003M + 1.130%) due 08/19/2019 ~			800			804
Stichting AK Rabobank Certificaten
6.500% due 12/29/2049 (g)	EUR		50			62
Synchrony Bank
3.000% due 06/15/2022	$		500			468
Toronto-Dominion Bank
3.408% (US0003M + 1.000%) due 04/07/2021 ~			800			807
UBS AG
5.125% due 05/15/2024 (h)			1,300			1,297
7.625% due 08/17/2022 (h)			250			267

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
UniCredit SpA
7.830% due 12/04/2023	$		900	$		942
Unigel Luxembourg S.A.
10.500% due 01/22/2024			400			418
Wells Fargo & Co.
2.600% due 07/22/2020			200			198
2.625% due 07/22/2022			400			386
3.000% due 02/19/2025			1,300			1,227
3.584% due 05/22/2028 •			400			385
						54,757
INDUSTRIALS 8.1%
AbbVie, Inc.
2.300% due 05/14/2021			100			98
Allergan Sales LLC
4.875% due 02/15/2021			233			239
Altice Financing S.A.
6.625% due 02/15/2023			400			385
7.500% due 05/15/2026			700			640
Amazon.com, Inc.
4.050% due 08/22/2047			600			589
American Airlines Pass-Through Trust
3.000% due 04/15/2030			369			350
Anheuser-Busch InBev Worldwide, Inc.
4.000% due 04/13/2028			600			575
BC Unlimited Liability Co.
4.250% due 05/15/2024			300			277
Broadcom Corp.
3.000% due 01/15/2022			400			385
3.625% due 01/15/2024			100			95
CCO Holdings LLC
5.000% due 02/01/2028			700			646
Charter Communications Operating LLC
3.579% due 07/23/2020			200			200
4.908% due 07/23/2025			400			398
6.484% due 10/23/2045			100			104
Cheniere Corpus Christi Holdings LLC
5.875% due 03/31/2025			600			598
7.000% due 06/30/2024			200			211
Cleveland-Cliffs, Inc.
4.875% due 01/15/2024			200			186
Conagra Brands, Inc.
3.800% due 10/22/2021			800			801
Constellation Oil Services Holding S.A. (9.000% Cash and 0.500% PIK)
9.500% due 11/09/2024 ^(b)(c)			302			125
Continental Resources, Inc.
4.375% due 01/15/2028			300			283
CVS Health Corp.
2.750% due 12/01/2022			200			193
4.100% due 03/25/2025			800			794
5.125% due 07/20/2045			100			98
Dell International LLC
3.480% due 06/01/2019			150			150
4.420% due 06/15/2021			850			850
6.020% due 06/15/2026			150			151
Deutsche Telekom International Finance BV
1.950% due 09/19/2021			800			768
2.820% due 01/19/2022			900			881
DISH DBS Corp.
7.875% due 09/01/2019			400			409
Energy Transfer Partners LP
5.000% due 10/01/2022			1,500			1,532
Exela Intermediate LLC
10.000% due 07/15/2023			300			288
GATX Corp.
3.302% (US0003M + 0.720%) due 11/05/2021 ~			900			891
IHO Verwaltungs GmbH (3.750% Cash or 4.500% PIK)
3.750% due 09/15/2026 (b)	EUR		200			220
IRB Holding Corp.
6.750% due 02/15/2026	$		300			263

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 13

Schedule of Investments PIMCO Dynamic Bond Portfolio (Cont.)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Komatsu Finance America, Inc.
2.118% due 09/11/2020	$		300	$		294
Marvell Technology Group Ltd.
4.200% due 06/22/2023			500			499
Murphy Oil Corp.
5.750% due 08/15/2025			200			187
Newfield Exploration Co.
5.375% due 01/01/2026			500			491
NVR, Inc.
3.950% due 09/15/2022			900			886
Penske Truck Leasing Co. LP
3.950% due 03/10/2025			500			491
QUALCOMM, Inc.
4.800% due 05/20/2045			100			96
Reckitt Benckiser Treasury Services PLC
2.375% due 06/24/2022			800			769
Refinitiv U.S. Holdings, Inc.
6.250% due 05/15/2026			400			386
Republic Services, Inc.
3.550% due 06/01/2022			300			301
Reynolds Group Issuer, Inc.
7.000% due 07/15/2024			125			119
Rockwell Collins, Inc.
2.800% due 03/15/2022			300			292
Sabine Pass Liquefaction LLC
5.625% due 02/01/2021			700			721
Sands China Ltd.
5.125% due 08/08/2025			600			595
Sirius XM Radio, Inc.
3.875% due 08/01/2022			200			192
Thermo Fisher Scientific, Inc.
3.600% due 08/15/2021			400			401
Transocean, Inc.
7.250% due 11/01/2025			600			526
Valeant Pharmaceuticals International
8.500% due 01/31/2027			300			292
VMware, Inc.
2.950% due 08/21/2022			900			859
WPP Finance
4.750% due 11/21/2021			900			917
Zimmer Biomet Holdings, Inc.
3.150% due 04/01/2022			400			391
						24,378
UTILITIES 1.9%
AT&T, Inc.
3.488% (US0003M + 0.750%) due 06/01/2021 ~			800			795
4.100% due 02/15/2028			306			295
Petrobras Global Finance BV
4.375% due 05/20/2023			50			48
5.999% due 01/27/2028			1,868			1,763
6.250% due 12/14/2026	GBP		100			132
6.850% due 06/05/2115	$		350			314
Rio Oil Finance Trust
9.250% due 07/06/2024			455			488
Sprint Communications, Inc.
7.000% due 03/01/2020			200			206
Tallgrass Energy Partners LP
4.750% due 10/01/2023			800			775
Verizon Communications, Inc.
3.716% (US0003M + 1.100%) due 05/15/2025 ~			600			582
4.125% due 03/16/2027			300			301
						5,699
Total Corporate Bonds & Notes (Cost $87,443)						84,834
MUNICIPAL BONDS & NOTES 0.1%
ILLINOIS 0.0%
Chicago, Illinois General Obligation Bonds, Series 2015
7.375% due 01/01/2033			70			77

		PRINCIPAL AMOUNT (000S)		MARKET VALUE (000S)
TEXAS 0.1%
Texas Public Finance Authority Revenue Notes, Series 2014
8.250% due 07/01/2024	$		175	$	178
WEST VIRGINIA 0.0%
Tobacco Settlement Finance Authority, West Virginia Revenue Bonds, Series 2007
0.000% due 06/01/2047 (e)			3,000		169
Total Municipal Bonds & Notes (Cost $423)					424
U.S. GOVERNMENT AGENCIES 24.5%
Fannie Mae
3.500% due 12/01/2047 - 07/01/2048			7,866		7,871
Fannie Mae, TBA
3.000% due 01/01/2049			4,100		4,001
3.500% due 01/01/2049 - 02/01/2049			54,900		54,897
4.000% due 01/01/2049			5,600		5,711
Freddie Mac
1.492% due 10/25/2021 ~(a)			343		12
3.695% due 07/15/2047 •(a)			1,123		191
Ginnie Mae, TBA
4.000% due 01/01/2049			1,000		1,024
Total U.S. Government Agencies (Cost $72,579)					73,707
U.S. TREASURY OBLIGATIONS 45.2%
U.S. Treasury Bonds
2.875% due 11/15/2046			150		146
U.S. Treasury Inflation Protected Securities (f)
0.125% due 04/15/2021			39,585		38,513
0.125% due 07/15/2024			852		817
0.250% due 01/15/2025			5,936		5,687
0.375% due 07/15/2027			3,101		2,945
0.625% due 01/15/2026			5,130		4,997
2.000% due 01/15/2026 (n)			828		884
2.375% due 01/15/2025			2,683		2,902
2.375% due 01/15/2027			2,144		2,368
U.S. Treasury Notes
1.250% due 07/31/2023 (j)			4,000		3,784
1.375% due 06/30/2023 (j)			7,550		7,190
1.375% due 08/31/2023 (j)			4,600		4,373
1.750% due 09/30/2022 (j)			5,700		5,551
1.875% due 12/15/2020 (j)			1,500		1,482
1.875% due 07/31/2022 (j)			5,200		5,093
2.000% due 05/31/2021 (l)(n)			1,100		1,088
2.000% due 12/31/2021 (l)(n)			3,600		3,552
2.000% due 07/31/2022 (j)(n)			11,400		11,215
2.000% due 11/30/2022 (l)(n)			1,000		982
2.000% due 04/30/2024			3,600		3,506
2.125% due 09/30/2021 (j)(l)			16,500		16,346
2.250% due 12/31/2023 (j)			4,150		4,098
2.250% due 01/31/2024			1,270		1,254
2.500% due 05/15/2024			1,800		1,797
2.750% due 02/15/2024 (j)			5,200		5,257
Total U.S. Treasury Obligations (Cost $138,473)					135,827
NON-AGENCY MORTGAGE-BACKED SECURITIES 6.4%
American Home Mortgage Assets Trust
2.716% due 06/25/2037 •			812		747
Banc of America Funding Trust
2.630% due 02/20/2047 •			843		804
2.660% due 07/20/2036 •			1,368		1,344
Banc of America Mortgage Trust
4.368% due 06/25/2035 ~			111		105
BCAP LLC Trust
5.250% due 06/26/2036			401		275
Bear Stearns Adjustable Rate Mortgage Trust
4.009% due 11/25/2034 ~			502		465

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
4.680% due 01/25/2035 ~	$		10	$		11
CBA Commercial Small Balance Commercial Mortgage
3.006% due 06/25/2038 •			1,034			749
Countrywide Alternative Loan Trust
2.650% due 02/20/2047 ^•			295			240
2.676% due 01/25/2037 ^•			496			484
5.500% due 04/25/2035			839			705
6.000% due 02/25/2037 ^			393			287
6.500% due 11/25/2037 ^			534			400
Countrywide Home Loan Mortgage Pass-Through Trust
3.587% due 02/20/2036 ~			414			334
3.910% due 08/25/2034 ~			205			198
Credit Suisse Mortgage Capital Certificates
2.975% due 12/27/2035 •			796			791
Deutsche ALT-A Securities, Inc. Mortgage Loan Trust
2.836% due 08/25/2037 ^•			635			553
Downey Savings & Loan Association Mortgage Loan Trust
2.660% due 10/19/2036 •			611			537
First Horizon Alternative Mortgage Securities Trust
4.052% due 01/25/2036 ^~			222			170
4.172% due 06/25/2036 ^~			245			226
4.290% due 06/25/2034 ~			132			130
First Horizon Mortgage Pass-Through Trust
4.349% due 11/25/2037 ^~			1,585			1,434
GSMPS Mortgage Loan Trust
8.000% due 01/25/2035			551			604
HarborView Mortgage Loan Trust
3.290% due 11/19/2034 ^•			49			45
IndyMac Mortgage Loan Trust
2.716% due 04/25/2046 •			2,210			2,011
3.827% due 08/25/2037 ^~			307			267
4.315% due 10/25/2034 ~			25			26
Lehman XS Trust
2.731% due 08/25/2046 ^•			503			470
Mortgage Equity Conversion Asset Trust
3.120% due 05/25/2042 «•			643			598
RBSSP Resecuritization Trust
2.565% due 02/26/2037 •			529			520
RMAC Securities PLC
1.050% due 06/12/2044 •	GBP		1,202			1,428
Structured Asset Mortgage Investments Trust
2.706% due 08/25/2036 •	$		622			770
Structured Asset Securities Corp. Trust
5.500% due 09/25/2035 ^			220			217
Thornburg Mortgage Securities Trust
2.636% due 06/25/2037 •			313			302
3.756% due 06/25/2037 ^•			45			42
WaMu Mortgage Pass-Through Certificates Trust
2.966% due 04/25/2045 •			65			65
Washington Mutual Mortgage Pass-Through Certificates Trust
3.956% due 09/25/2035 ^•			814			713
Wells Fargo Mortgage-Backed Securities Trust
4.503% due 06/25/2035 ~			146			150
Total Non-Agency Mortgage-Backed Securities (Cost $17,948)						19,217
ASSET-BACKED SECURITIES 21.7%
Accredited Mortgage Loan Trust
2.903% due 09/25/2035 •			1,000			844
ACE Securities Corp. Home Equity Loan Trust
2.666% due 05/25/2036 •			34			34
Ameriquest Mortgage Securities, Inc. Asset-Backed Pass-Through Certificates
3.226% due 03/25/2035 •			577			579
Argent Securities Trust
2.656% due 07/25/2036 •			771			648
Argent Securities, Inc. Asset-Backed Pass-Through Certificates
2.886% due 02/25/2036 •			1,615			1,247
Asset-Backed Funding Certificates Trust
2.666% due 01/25/2037 •			2,834			1,819

14 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
2.726% due 01/25/2037 •	$		1,972	$		1,275
Asset-Backed Securities Corp. Home Equity Loan Trust
3.526% due 07/25/2035 •			4,263			4,111
Bear Stearns Asset-Backed Securities Trust
2.990% due 11/25/2035 ^•			1,650			1,650
2.996% due 09/25/2035 •			1,100			1,092
Belle Haven ABS CDO Ltd.
2.942% due 11/03/2044 •			238			118
2.982% due 11/03/2044 •			364			183
Business Jet Securities LLC
4.447% due 06/15/2033			452			457
CIT Mortgage Loan Trust
3.856% due 10/25/2037 •			725			734
Citigroup Mortgage Loan Trust
2.646% due 08/25/2036 •			4			4
Citigroup Mortgage Loan Trust, Inc.
2.956% due 10/25/2035 ^•			1,000			989
Countrywide Asset-Backed Certificates
2.636% due 12/25/2036 ^•			358			330
2.646% due 08/25/2037 ^•			2,050			1,994
2.646% due 06/25/2047 ^•			586			531
2.656% due 07/25/2036 ^•			158			158
2.656% due 04/25/2047 ^•			530			508
2.686% due 11/25/2047 ^•			566			504
2.716% due 05/25/2047 ^•			1,892			1,566
4.789% due 07/25/2036 Ø			300			297
Countrywide Asset-Backed Certificates Trust
3.511% due 08/25/2035 •			1,660			1,665
6.095% due 08/25/2035 Ø			344			350
Credit Suisse Mortgage Capital Trust
4.500% due 03/25/2021			227			228
Credit-Based Asset Servicing & Securitization Mortgage Loan Trust
3.816% due 03/25/2037 ^Ø			2,500			1,428
First Franklin Mortgage Loan Trust
2.866% due 11/25/2035 •			3,909			3,735
GSAA Home Equity Trust
2.786% (US0001M + 0.280%) due 07/25/2037 ~			2,876			1,120
5.985% due 06/25/2036 ~			1,157			539
GSAMP Trust
2.706% due 11/25/2036 •			1,004			608
2.736% due 03/25/2047 •			2,000			1,706
Home Equity Asset Trust
3.196% due 08/25/2035 •			1,900			1,855
HSI Asset Securitization Corp. Trust
2.616% due 12/25/2036 •			2,221			807
2.726% due 12/25/2036 •			625			229
Jamestown CLO Ltd.
3.126% due 07/15/2026 •			311			310
JPMorgan Mortgage Acquisition Corp.
2.846% due 02/25/2036 ^•			1,060			1,034
Long Beach Mortgage Loan Trust
3.026% due 08/25/2045 •			991			960
3.421% due 08/25/2035 •			2,000			1,811
MASTR Specialized Loan Trust
2.876% due 01/25/2037 •			1,656			959
Morgan Stanley ABS Capital, Inc. Trust
2.631% due 07/25/2036 •			436			382
2.646% due 11/25/2036 •			194			122
2.646% due 05/25/2037 •			711			627
2.656% due 07/25/2036 •			811			413
2.656% due 10/25/2036 •			472			299
3.046% due 12/25/2034 •			514			506
Morgan Stanley Capital, Inc. Trust
2.686% due 03/25/2036 •			17			13
2.796% due 01/25/2036 •			312			306

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Morgan Stanley Home Equity Loan Trust
2.646% due 12/25/2036 •	$		2,234	$		1,320
2.766% due 04/25/2036 •			3,184			2,476
Morgan Stanley IXIS Real Estate Capital Trust
2.656% due 07/25/2036 •			1,619			856
Nomura Home Equity Loan, Inc. Home Equity Loan Trust
2.906% due 02/25/2037 ^•			2,283			968
OFSI Fund Ltd.
3.345% due 10/18/2026 •			800			798
Option One Mortgage Loan Trust
2.836% due 04/25/2037 •			3,347			2,126
Residential Asset Securities Corp. Trust
3.196% due 11/25/2035 •			3,100			3,055
Securitized Asset-Backed Receivables LLC Trust
3.166% due 08/25/2035 ^•			859			578
3.271% due 02/25/2034 •			352			347
Sierra Madre Funding Ltd.
2.763% due 09/07/2039 •			609			541
2.783% due 09/07/2039 •			3,278			2,912
SoFi Consumer Loan Program LLC
2.770% due 05/25/2026			341			339
SpringCastle America Funding LLC
3.050% due 04/25/2029			711			705
Staniford Street CLO Ltd.
3.968% due 06/15/2025 •			250			250
Structured Asset Investment Loan Trust
3.226% (US0001M + 0.720%) due 10/25/2035 ~			82			82
Structured Asset Securities Corp. Mortgage Loan Trust
3.511% due 11/25/2035 •			1,000			990
Terwin Mortgage Trust
2.876% due 01/25/2037 •			1,151			787
Triaxx Prime CDO Ltd.
2.609% due 10/02/2039 •			103			59
Venture CLO Ltd.
3.650% due 10/22/2031 •			1,400			1,399
Wells Fargo Home Equity Asset-Backed Securities Trust
2.736% due 04/25/2037 •			1,084			1,049
Total Asset-Backed Securities (Cost $59,574)						65,321
SOVEREIGN ISSUES 3.6%
Argentina Government International Bond
5.875% due 01/11/2028			1,000			723
6.875% due 01/11/2048			500			351
48.797% (BADLARPP + 3.250%) due 03/01/2020 ~	ARS		100			3
50.225% (BADLARPP + 2.000%) due 04/03/2022 ~(a)			2,373			61
50.950% (BADLARPP + 2.500%) due 03/11/2019 ~(a)			694			18
59.257% (ARLLMONP) due 06/21/2020 ~(a)			48,197			1,379
Brazil Government International Bond
5.625% due 02/21/2047	$		50			47
Kuwait International Government Bond
3.500% due 03/20/2027			1,300			1,296
New Zealand Government International Bond
2.000% due 09/20/2025	NZD		215			153
3.000% due 09/20/2030			853			671
Peru Government International Bond
6.150% due 08/12/2032	PEN		2,000			605
Qatar Government International Bond
3.875% due 04/23/2023	$		700			709
4.500% due 04/23/2028			200			209
Republic of Greece Government International Bond
4.750% due 04/17/2019	EUR		500			579

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Saudi Government International Bond
3.625% due 03/04/2028	$		500	$		474
4.500% due 04/17/2030			1,500			1,495
4.500% due 10/26/2046			600			544
4.625% due 10/04/2047			500			458
Slovenia Government International Bond
5.250% due 02/18/2024			300			323
Turkey Government International Bond
7.250% due 12/23/2023			600			618
Total Sovereign Issues (Cost $12,615)						10,716
		SHARES
PREFERRED SECURITIES 0.1%
BANKING & FINANCE 0.1%
Nationwide Building Society
10.250% ~			2,250			401
Total Preferred Securities (Cost $476)						401
SHORT-TERM INSTRUMENTS 3.0%
REPURCHASE AGREEMENTS (i) 0.1%
						211
		PRINCIPAL AMOUNT (000S)
ARGENTINA TREASURY BILLS 0.2%
(1.697)% due 01/31/2019 - 06/28/2019 (d)(e)	ARS		25,456			715
JAPAN TREASURY BILLS 2.7%
(0.159)% due 03/11/2019 (d)(e)	JPY		880,000			8,031
Total Short-Term Instruments (Cost $8,847)						8,957
Total Investments in Securities (Cost $400,950)						401,908
		SHARES
INVESTMENTS IN AFFILIATES 1.5%
SHORT-TERM INSTRUMENTS 1.5%
CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 1.5%
PIMCO Short-Term Floating NAV Portfolio III			467,126			4,617
Total Short-Term Instruments (Cost $4,616)						4,617
Total Investments in Affiliates (Cost $4,616)						4,617
Total Investments 135.1% (Cost $405,566)				$		406,525
Financial Derivative Instruments (k)(m) (0.2)% (Cost or Premiums, net $2,215)						(616	)
Other Assets and Liabilities, net (34.9)%						(105,078	)
Net Assets 100.0%				$		300,831

NOTES TO SCHEDULE OF INVESTMENTS:

* A zero balance may reflect actual amounts rounding to less than one thousand.

^ Security is in default.

« Security valued using significant unobservable inputs (Level 3).

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 15

Schedule of Investments PIMCO Dynamic Bond Portfolio (Cont.)

~ Variable or Floating rate security. Rate shown is the rate in effect as of period end. Certain variable rate securities are not based on a published reference rate and spread, rather are determined by the issuer or agent and are based on current market conditions. Reference rate is as of reset date, which may vary by security. These securities may not indicate a reference rate and/or spread in their description.

• Rate shown is the rate in effect as of period end. The rate may be based on a fixed rate, a capped rate or a floor rate and may convert to a variable or floating rate in the future. These securities do not indicate a reference rate and spread in their description.

Ø Coupon represents a rate which changes periodically based on a predetermined schedule or event. Rate shown is the rate in effect as of period end.

(a) Interest only security.

(b) Payment in-kind security.

(c) Security is not accruing income as of the date of this report.

(d) Coupon represents a weighted average yield to maturity.

(e) Zero coupon security.

(f) Principal amount of security is adjusted for inflation.

(g) Perpetual maturity; date shown, if applicable, represents next contractual call date.

(h) Contingent convertible security.

BORROWINGS AND OTHER FINANCING TRANSACTIONS

(i)  REPURCHASE AGREEMENTS:

Counterparty	Lending Rate			Settlement Date		Maturity Date		Principal Amount		Collateralized By	Collateral (Received)			Repurchase Agreements, at Value		Repurchase Agreement Proceeds to  be Received(1)
FICC		2.000	%		12/31/2018		01/02/2019	$	211	U.S. Treasury Notes 2.875% due 09/30/2023	$	(219	)	$	211	$	211
Total Repurchase Agreements											$	(219	)	$	211	$	211

REVERSE REPURCHASE AGREEMENTS:

Counterparty	Borrowing Rate(2)			Settlement Date		Maturity Date		Amount Borrowed(2)			Payable for Reverse Repurchase Agreements
BOM		2.600	%		11/27/2018		01/23/2019	$	(25,878	)	$	(25,945	)
		2.780			12/13/2018		01/11/2019		(17,250	)		(17,276	)
GRE		2.540			11/13/2018		02/13/2019		(286	)		(288	)
		2.540			11/14/2018		02/14/2019		(7,059	)		(7,084	)
RCY		2.570			11/16/2018		01/16/2019		(1,683	)		(1,688	)
		2.650			11/29/2018		01/10/2019		(5,198	)		(5,210	)
		2.660			12/04/2018		01/14/2019		(3,007	)		(3,014	)
Total Reverse Repurchase Agreements											$	(60,505	)

BORROWINGS AND OTHER FINANCING TRANSACTIONS SUMMARY

The following is a summary by counterparty of the market value of Borrowings and Other Financing Transactions and collateral pledged/(received) as of December 31, 2018:

Counterparty	Repurchase Agreement Proceeds to  be Received(1)		Payable for Reverse Repurchase Agreements			Payable for Sale-Buyback Transactions		Total Borrowings and Other Financing Transactions			Collateral Pledged/(Received)			Net Exposure(3)
Global/Master Repurchase Agreement
BOM	$	0	$	(43,221	)	$	0	$	(43,221	)	$	43,155		$	(66	)
FICC		211		0			0		211			(219	)		(8	)
GRE		0		(7,372	)		0		(7,372	)		7,482			110
RCY		0		(9,912	)		0		(9,912	)		9,976			64
Total Borrowings and Other Financing Transactions	$	211	$	(60,505	)	$	0

CERTAIN TRANSFERS ACCOUNTED FOR AS SECURED BORROWINGS

Remaining Contractual Maturity of the Agreements

	Overnight and Continuous		Up to 30 days			31-90 days			Greater Than 90 days		Total
Reverse Repurchase Agreements
U.S. Treasury Obligations	$	0	$	(53,133	)	$	(7,372	)	$	0	$	(60,505	)
Total Borrowings	$	0	$	(53,133	)	$	(7,372	)	$	0	$	(60,505	)
Payable for reverse repurchase agreements											$	(60,505	)

16 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

(j) Securities with an aggregate market value of $60,906 have been pledged as collateral under the terms of the above master agreements as of December 31, 2018.

⁽¹⁾ Includes accrued interest.

⁽²⁾ The average amount of borrowings outstanding during the period ended December 31, 2018 was $(15,568) at a weighted average interest rate of 2.169%. Average borrowings may include sale-buyback transactions and reverse repurchase agreements, if held during the period.

⁽³⁾ Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from borrowings and other financing transactions can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information regarding master netting arrangements.

(k)  FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED

FUTURES CONTRACTS:

LONG FUTURES CONTRACTS
Description	Expiration Month		# of Contracts		Notional Amount				Unrealized Appreciation/ (Depreciation)			Variation Margin
												Asset		Liability
U.S. Treasury 5-Year Note March Futures		03/2019		200		$	22,938		$	365		$	50	$	0
U.S. Treasury 10-Year Note March Futures		03/2019		112			13,666			331			44		0
									$	696		$	94	$	0
SHORT FUTURES CONTRACTS
Description	Expiration Month		# of Contracts		Notional Amount				Unrealized Appreciation/ (Depreciation)			Variation Margin
												Asset		Liability
90-Day Eurodollar June Futures		06/2019		608		$	(147,919	)	$	1,122		$	0	$	(7	)
Euro-BTP Italy Government Bond March Futures		03/2019		126			(18,453	)		(851	)		0		(9	)
U.S. Treasury 30-Year Bond March Futures		03/2019		5			(730	)		(33	)		0		(2	)
									$	238		$	0	$	(18	)
Total Futures Contracts									$	934		$	94	$	(18	)

SWAP AGREEMENTS:

CREDIT DEFAULT SWAPS ON CORPORATE ISSUES - BUY PROTECTION⁽¹⁾

Reference Entity	Fixed (Pay) Rate			Payment Frequency	Maturity Date		Implied Credit Spread at December 31, 2018(3)		Notional Amount(4)			Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)		Market Value(5)		Variation Margin
																			Asset		Liability
Kinder Morgan Energy Partners LP		(1.000	)%	Quarterly		03/20/2019		0.083%		$	200	$	(2	)	$	2	$	0	$	0	$	0

CREDIT DEFAULT SWAPS ON CORPORATE ISSUES - SELL PROTECTION⁽²⁾

Reference Entity	Fixed Receive Rate			Payment Frequency		Maturity Date		Implied Credit Spread at December 31, 2018(3)			Notional Amount(4)			Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Market Value(5)			Variation Margin
																							Asset		Liability
Berkshire Hathaway, Inc.		1.000	%		Quarterly		03/20/2019		0.152	%		$	1,100	$	11		$	(9	)	$	2		$	0	$	0
Berkshire Hathaway, Inc.		1.000			Quarterly		09/20/2020		0.311				400		8			(3	)		5			0		0
Citigroup, Inc.		1.000			Quarterly		03/20/2019		0.217				500		5			(4	)		1			0		0
Deutsche Bank AG		1.000			Quarterly		12/20/2019		1.450			EUR	400		(3	)		1			(2	)		0		0
Ford Motor Co.		5.000			Quarterly		03/20/2019		0.227			$	400		23			(18	)		5			0		0
MetLife, Inc.		1.000			Quarterly		03/20/2019		0.128				800		9			(7	)		2			0		0
MetLife, Inc.		1.000			Quarterly		12/20/2021		0.487				900		22			(9	)		13			0		0
MetLife, Inc.		1.000			Quarterly		06/20/2022		0.612				400		10			(5	)		5			0		0
MetLife, Inc.		1.000			Quarterly		12/20/2022		0.706				400		10			(5	)		5			0		0
Sprint Communications, Inc.		5.000			Quarterly		12/20/2019		0.713				2,200		162			(67	)		95			1		0
														$	257		$	(126	)	$	131		$	1	$	0

CREDIT DEFAULT SWAPS ON CREDIT INDICES - BUY PROTECTION⁽¹⁾

Index/Tranches	Fixed (Pay) Rate			Payment Frequency		Maturity Date		Notional Amount(4)			Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Market Value(5)			Variation Margin
																				Asset		Liability
iTraxx Europe Main 26 5-Year Index		(1.000	)%		Quarterly		12/20/2021		EUR	600	$	(20	)	$	9		$	(11	)	$	0	$	(1	)
iTraxx Europe Main 28 5-Year Index		(1.000	)		Quarterly		12/20/2022			3,900		(103	)		43			(60	)		0		(8	)
iTraxx Europe Senior 27 5-Year Index		(1.000	)		Quarterly		06/20/2022			2,500		(15	)		(15	)		(30	)		0		(7	)
											$	(138	)	$	37		$	(101	)	$	0	$	(16	)

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 17

Schedule of Investments PIMCO Dynamic Bond Portfolio (Cont.)

CREDIT DEFAULT SWAPS ON CREDIT INDICES - SELL PROTECTION⁽²⁾

Index/Tranches	Fixed Receive Rate	Payment Frequency		Maturity Date		Notional Amount(4)			Premiums Paid/(Received)		Unrealized Appreciation/ (Depreciation)			Market Value(5)		Variation Margin
																Asset		Liability
CDX.HY-30 5-Year Index	5.000%		Quarterly		06/20/2023		$	700	$	41	$	(18	)	$	23	$	1	$	0
CDX.HY-31 5-Year Index	5.000		Quarterly		12/20/2023			600		30		(17	)		13		1		0
CDX.IG-25 5-Year Index	1.000		Quarterly		12/20/2020			1,200		4		7			11		0		0
CDX.IG-31 5-Year Index	1.000		Quarterly		12/20/2023			2,400		44		(30	)		14		1		0
									$	119	$	(58	)	$	61	$	3	$	0

INTEREST RATE SWAPS

Pay/Receive Floating Rate	Floating Rate Index	Fixed Rate			Payment Frequency		Maturity Date		Notional Amount			Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Market Value			Variation Margin
																					Asset		Liability
Pay	3-Month  USD-LIBOR		2.700	%		Semi-Annual		12/14/2023		$	27,100	$	(287	)	$	435		$	148		$	53	$	0
Receive	3-Month  USD-LIBOR		2.330			Semi-Annual		08/19/2025			2,400		(129	)		158			29			0		(7	)
Receive	3-Month  USD-LIBOR		2.150			Semi-Annual		12/03/2025			2,100		0			65			65			0		(6	)
Receive	3-Month  USD-LIBOR		2.300			Semi-Annual		12/03/2025			300		(4	)		10			6			0		(1	)
Receive	3-Month  USD-LIBOR		1.750			Semi-Annual		12/21/2026			8,100		(139	)		676			537			0		(26	)
Receive	3-Month  USD-LIBOR		1.500			Semi-Annual		06/21/2027			15,700		1,363			42			1,405			0		(52	)
Receive	3-Month  USD-LIBOR		2.250			Semi-Annual		06/20/2028			17,200		1,075			(424	)		651			0		(64	)
Receive	3-Month  USD-LIBOR		2.500			Semi-Annual		06/20/2048			5,000		575			(199	)		376			0		(28	)
Receive	3-Month  USD-LIBOR		2.970			Semi-Annual		09/26/2048			6,900		355			(558	)		(203	)		0		(41	)
Receive	3-Month  USD-LIBOR		3.000			Semi-Annual		12/19/2048			5,600		67			(227	)		(160	)		0		(33	)
Pay(6)	6-Month  EUR-EURIBOR		0.500			Annual		03/20/2024		EUR	14,800		41			176			217			12		0
Receive(6)	6-Month  EUR-EURIBOR		1.500			Annual		03/20/2049			3,000		61			(158	)		(97	)		0		(3	)
Receive	6-Month  GBP-LIBOR		2.050			Semi-Annual		09/23/2019		GBP	600		(23	)		15			(8	)		0		0
Receive	6-Month  GBP-LIBOR		1.650			Semi-Annual		01/22/2020			2,100		(30	)		5			(25	)		0		0
Receive	6-Month  GBP-LIBOR		2.000			Semi-Annual		03/18/2022			700		(24	)		(1	)		(25	)		0		0
Receive(6)	6-Month  GBP-LIBOR		1.500			Semi-Annual		03/20/2024			18,200		(16	)		(189	)		(205	)		0		(32	)
Receive(6)	6-Month  GBP-LIBOR		1.500			Semi-Annual		06/19/2024			700		(8	)		1			(7	)		0		(1	)
Receive	6-Month  JPY-LIBOR		0.300			Semi-Annual		03/18/2026		JPY	820,000		(16	)		(110	)		(126	)		1		0
Receive	6-Month  JPY-LIBOR		0.300			Semi-Annual		03/21/2028			200,000		18			(45	)		(27	)		0		0
Receive(6)	6-Month  JPY-LIBOR		0.450			Semi-Annual		03/20/2029			1,000,000		26			(262	)		(236	)		0		(5	)
Pay	28-Day  MXN-TIIE		7.350			Lunar		09/30/2027		MXN	42,900		(25	)		(170	)		(195	)		11		0
Receive	UKRPI		3.579			Maturity		10/15/2033		GBP	2,100		1			20			21			26		0
												$	2,881		$	(740	)	$	2,141		$	103	$	(299	)
Total Swap Agreements												$	3,117		$	(885	)	$	2,232		$	107	$	(315	)

FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED SUMMARY

The following is a summary of the market value and variation margin of Exchange-Traded or Centrally Cleared Financial Derivative Instruments as of December 31, 2018:

	Financial Derivative Assets								Financial Derivative Liabilities
	Market Value		Variation Margin Asset						Market Value		Variation Margin Liability
	Purchased Options		Futures		Swap Agreements		Total		Written Options		Futures		Swap Agreements		Total
Total Exchange-Traded or Centrally Cleared	$	0	$	94	$	107	$	201	$	0		$    (18)		$    (315)		$    (333)

(l) Securities with an aggregate market value of $4,067 and cash of $2,080 have been pledged as collateral for exchange-traded and centrally cleared financial derivative instruments as of December 31, 2018. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information regarding master netting arrangements.

⁽¹⁾ If the Portfolio is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽²⁾ If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽³⁾ Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate, sovereign or U.S. municipal issues as of period end serve as indicators of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

18 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

⁽⁴⁾ The maximum potential amount the Portfolio could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

⁽⁵⁾ The prices and resulting values for credit default swap agreements serve as indicators of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced indices’ credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

⁽⁶⁾ This instrument has a forward starting effective date. See Note 2, Securities Transactions and Investment Income, in the Notes to Financial Statements for further information.

(m)  FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER

FORWARD FOREIGN CURRENCY CONTRACTS:

Counterparty	Settlement Month		Currency to be Delivered		Currency to be Received		Unrealized Appreciation/ (Depreciation)
							Asset		Liability
BOA		01/2019	DKK	50,548	$	8,034	$	277	$	0
		01/2019	EUR	8,916		10,179		0		(43	)
		01/2019	$	187	ARS	7,625		12		0
BPS		01/2019	BRL	7,800	$	2,027		14		0
		01/2019	JPY	21,300		190		0		(4	)
		01/2019	$	2,025	BRL	7,800		0		(13	)
		01/2019		7,654	DKK	50,548		103		0
		04/2019	DKK	50,548	$	7,716		0		(103	)
CBK		01/2019	CAD	1,859		1,413		51		0
		01/2019	EUR	240		275		0		0
		01/2019	NZD	1,065		738		23		0
		02/2019	$	1,569	COP	4,947,483		0		(49	)
DUB		01/2021		87	BRL	380		5		0
FBF		01/2019		1,009	RUB	68,294		0		(32	)
GLM		01/2019	EUR	408	$	466		0		(2	)
		01/2019	GBP	5,444		6,962		20		0
		03/2019	JPY	880,000		7,878		0		(191	)
		07/2019	$	634	ARS	29,842		8		0
HUS		01/2019		65		2,582		1		0
		01/2021	BRL	380	$	59		0		(33	)
IND		01/2019	JPY	202,296		1,785		0		(62	)
JPM		01/2019	AUD	1,739		1,284		59		0
		01/2019	$	731	ARS	28,380		14		0
		01/2019		155	MXN	3,150		5		0
		02/2019		2,665	TRY	15,209		135		0
SOG		01/2019		3,621	RUB	239,856		0		(188	)
SSB		03/2019	SGD	3,307	$	2,420		0		(11	)
		03/2019	TWD	63,759		2,085		0		(14	)
Total Forward Foreign Currency Contracts							$	727	$	(745	)

PURCHASED OPTIONS:

INTEREST RATE SWAPTIONS

Counterparty	Description	Floating Rate Index	Pay/Receive Floating Rate	Exercise Rate			Expiration Date		Notional Amount			Cost		Market Value
BOA	Put - OTC 30-Year Interest Rate Swap	3-Month  USD-LIBOR	Receive		2.945	%		12/09/2019		$	700	$	33	$	30
GLM	Put - OTC 30-Year Interest Rate Swap	3-Month  USD-LIBOR	Receive		2.943			12/12/2019			700		34		31
Total Purchased Options												$	67	$	61

WRITTEN OPTIONS:

CREDIT DEFAULT SWAPTIONS ON CREDIT INDICES

Counterparty	Description	Buy/Sell Protection		Exercise Rate			Expiration Date		Notional Amount		Premiums (Received)			Market Value
GST	Put - OTC CDX.IG-31 5-Year Index		Sell		2.400	%		09/18/2019	$	1,200	$	(2	)	$	(2	)
	Put - OTC iTraxx Europe 30 5-Year Index		Sell		2.400			09/18/2019	EUR	2,100		(4	)		(4	)
											$	(6	)	$	(6	)

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 19

Schedule of Investments PIMCO Dynamic Bond Portfolio (Cont.)

INTEREST RATE SWAPTIONS

Counterparty	Description	Floating Rate Index	Pay/Receive Floating Rate	Exercise Rate			Expiration Date		Notional Amount		Premiums (Received)			Market Value
BOA	Put - OTC 5-Year Interest Rate Swap	3-Month  USD-LIBOR	Pay		2.750	%		12/09/2019		$    3,100	$	(34	)	$	(28	)
GLM	Put - OTC 5-Year Interest Rate Swap	3-Month  USD-LIBOR	Pay		2.750			12/12/2019		3,100		(34	)		(29	)
											$	(68	)	$	(57	)
Total Written Options											$	(74	)	$	(63	)

SWAP AGREEMENTS:

CREDIT DEFAULT SWAPS ON CORPORATE ISSUES - BUY PROTECTION⁽¹⁾

Counterparty	Reference Entity	Fixed (Pay) Rate			Payment Frequency		Maturity Date		Implied Credit Spread at December 31, 2018(3)			Notional Amount(4)		Premiums Paid/(Received)		Unrealized Appreciation/ (Depreciation)			Swap Agreements, at Value(5)
																			Asset		Liability
BOA	UBS AG		(1.000	)%		Quarterly		06/20/2024		1.262	%	$	100	$	7	$	(6	)	$	1	$	0
BPS	UBS AG		(1.000	)		Quarterly		06/20/2024		1.262			200		13		(10	)		3		0
														$	20	$	(16	)	$	4	$	0

CREDIT DEFAULT SWAPS ON SOVEREIGN AND U.S. MUNICIPAL ISSUES - SELL PROTECTION⁽²⁾

Counterparty	Reference Entity	Fixed Receive Rate			Payment Frequency		Maturity Date		Implied Credit Spread at December 31, 2018(3)			Notional Amount(4)		Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Swap Agreements, at Value(5)
																				Asset		Liability
BOA	Russia Government International Bond		1.000	%		Quarterly		12/20/2023		1.530	%	$	300	$	(8	)	$	1		$	0	$	(7	)
BPS	Colombia Government International Bond		1.000			Quarterly		06/20/2021		0.997			100		(3	)		3			0		0
BRC	Argentine Republic Government International Bond		5.000			Quarterly		06/20/2022		8.049			350		29			(58	)		0		(29	)
	Colombia Government International Bond		1.000			Quarterly		06/20/2021		0.997			500		(16	)		16			0		0
CBK	Colombia Government International Bond		1.000			Quarterly		12/20/2022		1.307			200		(3	)		1			0		(2	)
GST	Argentine Republic Government International Bond		5.000			Quarterly		06/20/2022		8.049			350		29			(58	)		0		(29	)
	Colombia Government International Bond		1.000			Quarterly		06/20/2021		0.997			400		(13	)		13			0		0
	Colombia Government International Bond		1.000			Quarterly		12/20/2022		1.307			300		(3	)		0			0		(3	)
HUS	Brazil Government International Bond		1.000			Quarterly		03/20/2019		0.746			1,600		1			1			2		0
JPM	Qatar Government International Bond		1.000			Quarterly		06/20/2019		0.216			1,000		20			(16	)		4		0
	Russia Government International Bond		1.000			Quarterly		12/20/2023		1.530			1,300		(34	)		3			0		(31	)
	South Africa Government International Bond		1.000			Quarterly		12/20/2023		2.227			500		(25	)		(2	)		0		(27	)
MYC	California State General Obligation Bonds, Series 2003		1.000			Quarterly		09/20/2024		0.357			100		1			2			3		0
NGF	South Africa Government International Bond		1.000			Quarterly		12/20/2023		2.227			1,100		(53	)		(7	)		0		(60	)
														$	(78	)	$	(101	)	$	9	$	(188	)

CREDIT DEFAULT SWAPS ON CREDIT INDICES - SELL PROTECTION⁽²⁾

Counterparty	Index/Tranches	Fixed Receive Rate			Payment Frequency	Maturity Date		Notional Amount(4)		Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Swap Agreements, at Value(5)
																Asset		Liability
BOA	ABX.HE.AAA.6-2 Index		0.110	%	Monthly		05/25/2046	$	1,540	$	(317	)	$	205		$	0	$	(112	)
	CDX.HY-23 5-Year Index 25-35%		5.000		Quarterly		12/20/2019		300		40			(25	)		15		0
BRC	ABX.HE.AAA.6-2 Index		0.110		Monthly		05/25/2046		1,125		(232	)		150			0		(82	)

20 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

Counterparty	Index/Tranches	Fixed Receive Rate			Payment Frequency		Maturity Date		Notional Amount(4)		Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)		Swap Agreements, at Value(5)
																Asset		Liability
MYC	ABX.HE.AAA.6-2 Index		0.110	%		Monthly		05/25/2046	$	1,125	$	(234	)	$	153	$	0	$	(81	)
	CMBX.NA.AAA.10 Index		0.500			Monthly		11/17/2059		1,600		(55	)		38		0		(17	)
UAG	CMBX.NA.AAA.10 Index		0.500			Monthly		11/17/2059		1,100		(39	)		27		0		(12	)
											$	(837	)	$	548	$	15	$	(304	)
Total Swap Agreements											$	(895	)	$	431	$	28	$	(492	)

FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER SUMMARY

The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral pledged/(received) as of December 31, 2018:

	Financial Derivative Assets								Financial Derivative Liabilities
Counterparty	Forward Foreign Currency Contracts		Purchased Options		Swap Agreements		Total Over the Counter		Forward Foreign Currency Contracts			Written Options			Swap Agreements			Total Over the Counter			Net Market Value of OTC Derivatives			Collateral Pledged/ (Received)			Net Exposure(6)
BOA	$	289	$	30	$	16	$	335	$	(43	)	$	(28	)	$	(119	)	$	(190	)	$	145		$	(100	)	$	45
BPS		117		0		3		120		(120	)		0			0			(120	)		0			0			0
BRC		0		0		0		0		0			0			(111	)		(111	)		(111	)		53			(58	)
CBK		74		0		0		74		(49	)		0			(2	)		(51	)		23			0			23
DUB		5		0		0		5		0			0			0			0			5			(10	)		(5	)
FBF		0		0		0		0		(32	)		0			0			(32	)		(32	)		0			(32	)
GLM		28		31		0		59		(193	)		(29	)		0			(222	)		(163	)		0			(163	)
GST		0		0		0		0		0			(6	)		(32	)		(38	)		(38	)		0			(38	)
HUS		1		0		2		3		(33	)		0			0			(33	)		(30	)		0			(30	)
IND		0		0		0		0		(62	)		0			0			(62	)		(62	)		0			(62	)
JPM		213		0		4		217		0			0			(58	)		(58	)		159			0			159
MYC		0		0		3		3		0			0			(98	)		(98	)		(95	)		210			115
NGF		0		0		0		0		0			0			(60	)		(60	)		(60	)		0			(60	)
SOG		0		0		0		0		(188	)		0			0			(188	)		(188	)		0			(188	)
SSB		0		0		0		0		(25	)		0			0			(25	)		(25	)		0			(25	)
UAG		0		0		0		0		0			0			(12	)		(12	)		(12	)		9			(3	)
Total Over the Counter	$	727	$	61	$	28	$	816	$	(745	)	$	(63	)	$	(492	)	$	(1,300	)

(n) Securities with an aggregate market value of $382 have been pledged as collateral for financial derivative instruments as governed by International Swaps and Derivatives Association, Inc. master agreements as of December 31, 2018.

⁽¹⁾ If the Portfolio is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽²⁾ If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽³⁾ Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate, sovereign or U.S. municipal issues as of period end serve as indicators of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

⁽⁴⁾ The maximum potential amount the Portfolio could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

⁽⁵⁾ The prices and resulting values for credit default swap agreements serve as indicators of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced indices’ credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

⁽⁶⁾ Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information regarding master netting arrangements.

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 21

Schedule of Investments PIMCO Dynamic Bond Portfolio (Cont.)

FAIR VALUE OF FINANCIAL DERIVATIVE INSTRUMENTS

The following is a summary of the fair valuation of the Portfolio’s derivative instruments categorized by risk exposure. See Note 7, Principal Risks, in the Notes to Financial Statements on risks of the Portfolio.

Fair Values of Financial Derivative Instruments on the Statement of Assets and Liabilities as of December 31, 2018:

	Derivatives not accounted for as hedging instruments
	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Exchange Contracts		Interest Rate Contracts		Total
Financial Derivative Instruments - Assets
Exchange-traded or centrally cleared
Futures	$	0	$	0	$	0	$	0	$	94	$	94
Swap Agreements		0		4		0		0		103		107
	$	0	$	4	$	0	$	0	$	197	$	201
Over the counter
Forward Foreign Currency Contracts	$	0	$	0	$	0	$	727	$	0	$	727
Purchased Options		0		0		0		0		61		61
Swap Agreements		0		28		0		0		0		28
	$	0	$	28	$	0	$	727	$	61	$	816
	$	0	$	32	$	0	$	727	$	258	$	1,017
Financial Derivative Instruments - Liabilities
Exchange-traded or centrally cleared
Futures	$	0	$	0	$	0	$	0	$	18	$	18
Swap Agreements		0		16		0		0		299		315
	$	0	$	16	$	0	$	0	$	317	$	333
Over the counter
Forward Foreign Currency Contracts	$	0	$	0	$	0	$	745	$	0	$	745
Written Options		0		6		0		0		57		63
Swap Agreements		0		492		0		0		0		492
	$	0	$	498	$	0	$	745	$	57	$	1,300
	$	0	$	514	$	0	$	745	$	374	$	1,633

The effect of Financial Derivative Instruments on the Statement of Operations for the period ended December 31, 2018:

	Derivatives not accounted for as hedging instruments
	Commodity Contracts		Credit Contracts			Equity Contracts		Foreign Exchange Contracts		Interest Rate Contracts			Total
Net Realized Gain (Loss) on Financial Derivative Instruments
Exchange-traded or centrally cleared
Written Options	$	0	$	0		$	0	$	0	$	87		$	87
Futures		0		0			0		0		719			719
Swap Agreements		0		227			0		0		6,017			6,244
	$	0	$	227		$	0	$	0	$	6,823		$	7,050
Over the counter
Forward Foreign Currency Contracts	$	0	$	0		$	0	$	1,588	$	0		$	1,588
Purchased Options		0		0			0		0		(637	)		(637	)
Written Options		0		0			0		49		451			500
Swap Agreements		0		352			0		0		0			352
	$	0	$	352		$	0	$	1,637	$	(186	)	$	1,803
	$	0	$	579		$	0	$	1,637	$	6,637		$	8,853
Net Change in Unrealized Appreciation (Depreciation) on Financial Derivative Instruments
Exchange-traded or centrally cleared
Futures	$	0	$	0		$	0	$	0	$	411		$	411
Swap Agreements		0		(138	)		0		0		(4,519	)		(4,657	)
	$	0	$	(138	)	$	0	$	0	$	(4,108	)	$	(4,246	)
Over the counter
Forward Foreign Currency Contracts	$	0	$	0		$	0	$	548	$	0		$	548
Purchased Options		0		0			0		0		760			760
Written Options		0		0			0		15		(683	)		(668	)
Swap Agreements		0		(270	)		0		0		0			(270	)
	$	0	$	(270	)	$	0	$	563	$	77		$	370
	$	0	$	(408	)	$	0	$	563	$	(4,031	)	$	(3,876	)

22 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

FAIR VALUE MEASUREMENTS

The following is a summary of the fair valuations according to the inputs used as of December 31, 2018 in valuing the Portfolio’s assets and liabilities:

Category and Subcategory	Level 1		Level 2		Level 3		Fair Value at 12/31/2018
Investments in Securities, at Value
Loan Participations and Assignments	$	0	$	2,504	$	0	$	2,504
Corporate Bonds & Notes
Banking & Finance		0		54,757		0		54,757
Industrials		0		24,378		0		24,378
Utilities		0		5,699		0		5,699
Municipal Bonds & Notes
Illinois		0		77		0		77
Texas		0		178		0		178
West Virginia		0		169		0		169
U.S. Government Agencies		0		73,707		0		73,707
U.S. Treasury Obligations		0		135,827		0		135,827
Non-Agency Mortgage-Backed Securities		0		18,619		598		19,217
Asset-Backed Securities		0		65,321		0		65,321
Sovereign Issues		0		10,716		0		10,716
Preferred Securities
Banking & Finance		0		401		0		401
Short-Term Instruments
Repurchase Agreements		0		211		0		211
Argentina Treasury Bills		0		715		0		715
Japan Treasury Bills		0		8,031		0		8,031
	$	0	$	401,310	$	598	$	401,908

Category and Subcategory	Level 1			Level 2			Level 3		Fair Value at 12/31/2018
Investments in Affiliates, at Value
Short-Term Instruments
Central Funds Used for Cash Management Purposes	$	4,617		$	0		$	0	$	4,617
Total Investments	$	4,617		$	401,310		$	598	$	406,525
Financial Derivative Instruments - Assets
Exchange-traded or centrally cleared		94			107			0		201
Over the counter		0			816			0		816
	$	94		$	923		$	0	$	1,017
Financial Derivative Instruments - Liabilities
Exchange-traded or centrally cleared		(18	)		(315	)		0		(333	)
Over the counter		0			(1,300	)		0		(1,300	)
	$	(18	)	$	(1,615	)	$	0	$	(1,633	)
Total Financial Derivative Instruments	$	76		$	(692	)	$	0	$	(616	)
Totals	$	4,693		$	400,618		$	598	$	405,909

There were no significant transfers into or out of Level 3 during the period ended December 31, 2018.

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 23

Notes to Financial Statements

1. ORGANIZATION

PIMCO Variable Insurance Trust (the “Trust”) is a Delaware statutory trust established under a trust instrument dated October 3, 1997. The Trust is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Trust is designed to be used as an investment vehicle by separate accounts of insurance companies that fund variable annuity contracts and variable life insurance policies and by qualified pension and retirement plans. Information presented in these financial statements pertains to the Institutional Class, Class M, Administrative Class and Advisor Class shares of the PIMCO Dynamic Bond Portfolio (formerly, PIMCO Unconstrained Bond Portfolio) (the “Portfolio”) offered by the Trust. Pacific Investment Management Company LLC (“PIMCO”) serves as the investment adviser (the “Adviser”) for the Portfolio.

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Portfolio is treated as an investment company under the reporting requirements of U.S. GAAP. The functional and reporting currency for the Portfolio is the U.S. dollar. The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

(a) Securities Transactions and Investment Income  Securities transactions are recorded as of the trade date for financial reporting purposes. Securities purchased or sold on a when-issued or delayed-delivery basis may be settled beyond a standard settlement period for the security after the trade date. Realized gains (losses) from securities sold are recorded on the identified cost basis. Dividend income is recorded on the ex-dividend date, except certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Portfolio is informed of the ex-dividend date. Interest income, adjusted for the accretion of discounts and amortization of premiums, is recorded on the accrual basis from settlement date, with the exception of securities with a forward starting effective date, where interest income is recorded on the accrual basis from effective date. For convertible securities, premiums attributable to the conversion feature are not amortized. Estimated tax liabilities on certain foreign securities are recorded on an accrual basis and are reflected as components of interest income or net change in unrealized appreciation (depreciation) on investments on the Statement of

Operations, as appropriate. Tax liabilities realized as a result of such security sales are reflected as a component of net realized gain (loss) on investments on the Statement of Operations. Paydown gains (losses) on mortgage-related and other asset-backed securities, if any, are recorded as components of interest income on the Statement of Operations. Income or short-term capital gain distributions received from registered investment companies, if any, are recorded as dividend income. Long-term capital gain distributions received from registered investment companies, if any, are recorded as realized gains.

Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivable when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is probable.

(b) Foreign Currency Translation  The market values of foreign securities, currency holdings and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the current exchange rates each business day. Purchases and sales of securities and income and expense items denominated in foreign currencies, if any, are translated into U.S. dollars at the exchange rate in effect on the transaction date. The Portfolio does not separately report the effects of changes in foreign exchange rates from changes in market prices on securities held. Such changes are included in net realized gain (loss) and net change in unrealized appreciation (depreciation) from investments on the Statement of Operations. The Portfolio may invest in foreign currency-denominated securities and may engage in foreign currency transactions either on a spot (cash) basis at the rate prevailing in the currency exchange market at the time or through a forward foreign currency contract. Realized foreign exchange gains (losses) arising from sales of spot foreign currencies, currency gains (losses) realized between the trade and settlement dates on securities transactions and the difference between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid are included in net realized gain (loss) on foreign currency transactions on the Statement of Operations. Net unrealized foreign exchange gains (losses) arising from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period are included in net change in unrealized appreciation (depreciation) on foreign currency assets and liabilities on the Statement of Operations.

(c) Multi-Class Operations  Each class offered by the Trust has equal rights as to assets and voting privileges (except that shareholders of a class have exclusive voting rights regarding any matter relating solely to that class of shares). Income and non-class specific expenses are

24 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

allocated daily to each class on the basis of the relative net assets. Realized and unrealized capital gains (losses) are allocated daily based on the relative net assets of each class of the Portfolio. Class specific expenses, where applicable, currently include supervisory and administrative and distribution and servicing fees. Under certain circumstances, the per share net asset value (“NAV”) of a class of the Portfolio’s shares may be different from the per share NAV of another class of shares as a result of the different daily expense accruals applicable to each class of shares.

(d) Distributions to Shareholders  Distributions from net investment income, if any, are declared daily and distributed to shareholders monthly. Net realized capital gains earned by the Portfolio, if any, will be distributed no less frequently than once each year.

Income distributions and capital gain distributions are determined in accordance with income tax regulations which may differ from U.S. GAAP. Differences between tax regulations and U.S. GAAP may cause timing differences between income and capital gain recognition. Further, the character of investment income and capital gains may be different for certain transactions under the two methods of accounting. As a result, income distributions and capital gain distributions declared during a fiscal period may differ significantly from the net investment income (loss) and realized gains (losses) reported on the Portfolio’s annual financial statements presented under U.S. GAAP.

If the Portfolio estimates that a portion of its distribution may be comprised of amounts from sources other than net investment income in accordance with its policies and good accounting practices, the Portfolio will notify shareholders of the estimated composition of such distribution through a Section 19 Notice. For these purposes, the Portfolio estimates the source or sources from which a distribution is paid, to the close of the period as of which it is paid, in reference to its internal accounting records and related accounting practices. If, based on such accounting records and practices, it is estimated that a particular distribution does not include capital gains or paid-in surplus or other capital sources, a Section 19 Notice generally would not be issued. It is important to note that differences exist between the Portfolio’s daily internal accounting records and practices, the Portfolio’s financial statements presented in accordance with U.S. GAAP, and recordkeeping practices under income tax regulations. For instance, the Portfolio’s internal accounting records and practices may take into account, among other factors, tax-related characteristics of certain sources of distributions that differ from treatment under U.S. GAAP. Examples of such differences may include, among others, the treatment of paydowns on mortgage-backed securities purchased at a discount and periodic payments under interest rate swap contracts. Accordingly, among other consequences, it is possible that the Portfolio may not issue a Section 19 Notice in situations where the Portfolio’s

financial statements prepared later and in accordance with U.S. GAAP and/or the final tax character of those distributions might later report that the sources of those distributions included capital gains and/or a return of capital. Final determination of a distribution’s tax character will be provided to shareholders when such information is available.

Distributions classified as a tax basis return of capital, if any, are reflected on the Statements of Changes in Net Assets and have been recorded to paid in capital on the Statement of Assets and Liabilities. In addition, other amounts have been reclassified between distributable earnings (accumulated loss) and paid in capital on the Statement of Assets and Liabilities to more appropriately conform U.S. GAAP to tax characterizations of distributions.

(e) New Accounting Pronouncements  In August 2016, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”), ASU 2016-15, which amends Accounting Standards Codification (“ASC”) 230 to clarify guidance on the classification of certain cash receipts and cash payments in the Statement of Cash Flows. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In November 2016, the FASB issued ASU 2016-18 which amends ASC 230 to provide guidance on the classification and presentation of changes in restricted cash and restricted cash equivalents on the Statement of Cash Flows. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In March 2017, the FASB issued ASU 2017-08 which provides guidance related to the amortization period for certain purchased callable debt securities held at a premium. The ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In August 2018, the FASB issued ASU 2018-13 which modifies certain disclosure requirements for fair value measurements in ASC 820. The ASU is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. At this time, management has elected to early adopt the amendments that allow for removal of certain disclosure requirements. Management plans to adopt the amendments that require additional fair value measurement disclosures for annual periods beginning after December 15, 2019, and

ANNUAL REPORT DECEMBER 31, 2018 25

Notes to Financial Statements (Cont.)

interim periods within those annual periods. Management is currently evaluating the impact of these changes on the financial statements.

In August 2018, the U.S. Securities and Exchange Commission (“SEC”) adopted amendments to certain rules and forms for the purpose of disclosure update and simplification. The compliance date for these amendments is 30 days after date of publication in the Federal Register, which was on October 4, 2018. Management has adopted these amendments and the changes are incorporated throughout all periods presented in the financial statements.

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

(a) Investment Valuation Policies  The price of the Portfolio’s shares is based on the Portfolio’s NAV. The NAV of the Portfolio, or each of its share classes, as applicable, is determined by dividing the total value of portfolio investments and other assets, less any liabilities attributable to the Portfolio or class, by the total number of shares outstanding of the Portfolio or class.

On each day that the New York Stock Exchange (“NYSE”) is open, Portfolio shares are ordinarily valued as of the close of regular trading (“NYSE Close”). Information that becomes known to the Portfolio or its agents after the time as of which NAV has been calculated on a particular day will not generally be used to retroactively adjust the price of a security or the NAV determined earlier that day. The Portfolio reserves the right to change the time as of which its NAV is calculated if the Portfolio closes earlier, or as permitted by the SEC.

For purposes of calculating a NAV, portfolio securities and other assets for which market quotes are readily available are valued at market value. Market value is generally determined on the basis of official closing prices or the last reported sales prices, or if no sales are reported, based on quotes obtained from established market makers or prices (including evaluated prices) supplied by the Portfolio’s approved pricing services, quotation reporting systems and other third-party sources (together, “Pricing Services”). The Portfolio will normally use pricing data for domestic equity securities received shortly after the NYSE Close and does not normally take into account trading, clearances or settlements that take place after the NYSE Close. If market value pricing is used, a foreign (non-U.S.) equity security traded on a foreign exchange or on more than one exchange is typically valued using pricing information from the exchange considered by the Adviser to be the primary exchange. A foreign (non-U.S.) equity security will be valued as of the close of trading on the foreign exchange, or the NYSE Close, if the NYSE Close occurs before the end of trading on the foreign exchange. Domestic and foreign (non-U.S.) fixed income securities, non-exchange traded derivatives, and equity options are normally valued on the basis of quotes obtained from brokers and

dealers or Pricing Services using data reflecting the earlier closing of the principal markets for those securities. Prices obtained from Pricing Services may be based on, among other things, information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics. Certain fixed income securities purchased on a delayed-delivery basis are marked to market daily until settlement at the forward settlement date. Exchange-traded options, except equity options, futures and options on futures are valued at the settlement price determined by the relevant exchange. Swap agreements are valued on the basis of bid quotes obtained from brokers and dealers or market-based prices supplied by Pricing Services. The Portfolio’s investments in open-end management investment companies, other than exchange-traded funds (“ETFs”), are valued at the NAVs of such investments. Open-end management investment companies may include affiliated funds.

If a foreign (non-U.S.) equity security’s value has materially changed after the close of the security’s primary exchange or principal market but before the NYSE Close, the security may be valued at fair value based on procedures established and approved by the Board of Trustees of the Trust (the “Board”). Foreign (non-U.S.) equity securities that do not trade when the NYSE is open are also valued at fair value. With respect to foreign (non-U.S.) equity securities, the Portfolio may determine the fair value of investments based on information provided by Pricing Services and other third-party vendors, which may recommend fair value or adjustments with reference to other securities, indices or assets. In considering whether fair valuation is required and in determining fair values, the Portfolio may, among other things, consider significant events (which may be considered to include changes in the value of U.S. securities or securities indices) that occur after the close of the relevant market and before the NYSE Close. The Portfolio may utilize modeling tools provided by third-party vendors to determine fair values of foreign (non-U.S.) securities. For these purposes, any movement in the applicable reference index or instrument (“zero trigger”) between the earlier close of the applicable foreign market and the NYSE Close may be deemed to be a significant event, prompting the application of the pricing model (effectively resulting in daily fair valuations). Foreign exchanges may permit trading in foreign (non-U.S.) equity securities on days when the Trust is not open for business, which may result in the Portfolio’s portfolio investments being affected when shareholders are unable to buy or sell shares.

Senior secured floating rate loans for which an active secondary market exists to a reliable degree will be valued at the mean of the last available bid/ask prices in the market for such loans, as provided by a Pricing Service. Senior secured floating rate loans for which an active secondary market does not exist to a reliable degree will be valued at

26 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

fair value, which is intended to approximate market value. In valuing a senior secured floating rate loan at fair value, the factors considered may include, but are not limited to, the following: (a) the creditworthiness of the borrower and any intermediate participants, (b) the terms of the loan, (c) recent prices in the market for similar loans, if any, and (d) recent prices in the market for instruments of similar quality, rate, period until next interest rate reset and maturity.

Investments valued in currencies other than the U.S. dollar are converted to the U.S. dollar using exchange rates obtained from Pricing Services. As a result, the value of such investments and, in turn, the NAV of the Portfolio’s shares may be affected by changes in the value of currencies in relation to the U.S. dollar. The value of investments traded in markets outside the United States or denominated in currencies other than the U.S. dollar may be affected significantly on a day that the Trust is not open for business. As a result, to the extent that the Portfolio holds foreign (non-U.S.) investments, the value of those investments may change at times when shareholders are unable to buy or sell shares and the value of such investments will be reflected in the Portfolio’s next calculated NAV.

Investments for which market quotes or market based valuations are not readily available are valued at fair value as determined in good faith by the Board or persons acting at their direction. The Board has adopted methods for valuing securities and other assets in circumstances where market quotes are not readily available, and has delegated to the Adviser the responsibility for applying the fair valuation methods. In the event that market quotes or market based valuations are not readily available, and the security or asset cannot be valued pursuant to a Board approved valuation method, the value of the security or asset will be determined in good faith by the Board. Market quotes are considered not readily available in circumstances where there is an absence of current or reliable market-based data (e.g., trade information, bid/ask information, indicative market quotations (“Broker Quotes”), Pricing Services’ prices), including where events occur after the close of the relevant market, but prior to the NYSE Close, that materially affect the values of the Portfolio’s securities or assets. In addition, market quotes are considered not readily available when, due to extraordinary circumstances, the exchanges or markets on which the securities trade do not open for trading for the entire day and no other market prices are available. The Board has delegated, to the Adviser, the responsibility for monitoring significant events that may materially affect the values of the Portfolio’s securities or assets and for determining whether the value of the applicable securities or assets should be reevaluated in light of such significant events.

When the Portfolio uses fair valuation to determine the value of a portfolio security or other asset for purposes of calculating its NAV,

such investments will not be priced on the basis of quotes from the primary market in which they are traded, but rather may be priced by another method that the Board or persons acting at their direction believe reflects fair value. Fair valuation may require subjective determinations about the value of a security. While the Trust’s policy is intended to result in a calculation of the Portfolio’s NAV that fairly reflects security values as of the time of pricing, the Trust cannot ensure that fair values determined by the Board or persons acting at their direction would accurately reflect the price that the Portfolio could obtain for a security if it were to dispose of that security as of the time of pricing (for instance, in a forced or distressed sale). The prices used by the Portfolio may differ from the value that would be realized if the securities were sold. The Portfolio’s use of fair valuation may also help to deter “stale price arbitrage” as discussed under the “Frequent or Excessive Purchases, Exchanges and Redemptions” section in the Portfolio’s prospectus.

(b) Fair Value Hierarchy  U.S. GAAP describes fair value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into levels (Level 1, 2, or 3). The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Levels 1, 2, and 3 of the fair value hierarchy are defined as follows:

^∎  Level 1 — Quoted prices in active markets or exchanges for identical assets and liabilities.

^∎  Level 2 — Significant other observable inputs, which may include, but are not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market corroborated inputs.

^∎  Level 3 — Significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, which may include assumptions made by the Board or persons acting at their direction that are used in determining the fair value of investments.

In accordance with the requirements of U.S. GAAP, the amounts of transfers into and out of Level 3, if material, are disclosed in the Notes to Schedule of Investments for the Portfolio.

For fair valuations using significant unobservable inputs, U.S. GAAP requires a reconciliation of the beginning to ending balances for

ANNUAL REPORT DECEMBER 31, 2018 27

Notes to Financial Statements (Cont.)

reported fair values that presents changes attributable to realized gain (loss), unrealized appreciation (depreciation), purchases and sales, accrued discounts (premiums), and transfers into and out of the Level 3 category during the period. The end of period value is used for the transfers between Levels of the Portfolio’s assets and liabilities. Additionally, U.S. GAAP requires quantitative information regarding the significant unobservable inputs used in the determination of fair value of assets or liabilities categorized as Level 3 in the fair value hierarchy. In accordance with the requirements of U.S. GAAP, a fair value hierarchy, and if material, a Level 3 reconciliation and details of significant unobservable inputs, have been included in the Notes to Schedule of Investments for the Portfolio.

(c) Valuation Techniques and the Fair Value Hierarchy

Level 1 and Level 2 trading assets and trading liabilities, at fair value  The valuation methods (or “techniques”) and significant inputs used in determining the fair values of portfolio securities or other assets and liabilities categorized as Level 1 and Level 2 of the fair value hierarchy are as follows:

Fixed income securities including corporate, convertible and municipal bonds and notes, U.S. government agencies, U.S. treasury obligations, sovereign issues, bank loans, convertible preferred securities and non-U.S. bonds are normally valued on the basis of quotes obtained from brokers and dealers or Pricing Services that use broker-dealer quotations, reported trades or valuation estimates from their internal pricing models. The Pricing Services’ internal models use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar assets. Securities that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

Fixed income securities purchased on a delayed-delivery basis or as a repurchase commitment in a sale-buyback transaction are marked to market daily until settlement at the forward settlement date and are categorized as Level 2 of the fair value hierarchy.

Mortgage-related and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also normally valued by Pricing Services that use broker-dealer quotations, reported trades or valuation estimates from their internal pricing models. The pricing models for these securities usually consider tranche-level attributes, current market data, estimated cash flows and market-based yield spreads for each tranche, and incorporate deal collateral performance, as available. Mortgage-related and asset-backed securities that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

Common stocks, ETFs, exchange-traded notes and financial derivative instruments, such as futures contracts, rights and warrants, or options on futures that are traded on a national securities exchange, are stated at the last reported sale or settlement price on the day of valuation. To the extent these securities are actively traded and valuation adjustments are not applied, they are categorized as Level 1 of the fair value hierarchy.

Valuation adjustments may be applied to certain securities that are solely traded on a foreign exchange to account for the market movement between the close of the foreign market and the NYSE Close. These securities are valued using Pricing Services that consider the correlation of the trading patterns of the foreign security to the intraday trading in the U.S. markets for investments. Securities using these valuation adjustments are categorized as Level 2 of the fair value hierarchy. Preferred securities and other equities traded on inactive markets or valued by reference to similar instruments are also categorized as Level 2 of the fair value hierarchy.

Investments in registered open-end investment companies (other than ETFs) will be valued based upon the NAVs of such investments and are categorized as Level 1 of the fair value hierarchy. Investments in unregistered open-end investment companies will be calculated based upon the NAVs of such investments and are considered Level 1 provided that the NAVs are observable, calculated daily and are the value at which both purchases and sales will be conducted.

Equity exchange-traded options and over the counter financial derivative instruments, such as forward foreign currency contracts and options contracts derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors. These contracts are normally valued on the basis of quotes obtained from a quotation reporting system, established market makers or Pricing Services (normally determined as of the NYSE Close). Depending on the product and the terms of the transaction, financial derivative instruments can be valued by Pricing Services using a series of techniques, including simulation pricing models. The pricing models use inputs that are observed from actively quoted markets such as quoted prices, issuer details, indices, bid/ask spreads, interest rates, implied volatilities, yield curves, dividends and exchange rates. Financial derivative instruments that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

Centrally cleared swaps and over the counter swaps derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors. They are valued using a broker-dealer bid quotation or on market-based prices provided by Pricing Services (normally determined as of the NYSE close). Centrally cleared

28 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

swaps and over the counter swaps can be valued by Pricing Services using a series of techniques, including simulation pricing models. The pricing models may use inputs that are observed from actively quoted markets such as the overnight index swap rate (“OIS”), London Interbank Offered Rate (“LIBOR”) forward rate, interest rates, yield curves and credit spreads. These securities are categorized as Level 2 of the fair value hierarchy.

Level 3 trading assets and trading liabilities, at fair value  When a fair valuation method is applied by the Adviser that uses significant unobservable inputs, investments will be priced by a method that the Board or persons acting at their direction believe reflects fair value and are categorized as Level 3 of the fair value hierarchy.

Short-term debt instruments (such as commercial paper) having a remaining maturity of 60 days or less may be valued at amortized cost, so long as the amortized cost value of such short-term debt instruments is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. These

securities are categorized as Level 2 or Level 3 of the fair value hierarchy depending on the source of the base price.

4. SECURITIES AND OTHER INVESTMENTS

(a) Investments in Affiliates

The Portfolio may invest in the PIMCO Short Asset Portfolio and the PIMCO Short-Term Floating NAV Portfolio III (“Central Funds”) to the extent permitted by the Act and rules thereunder. The Central Funds are registered investment companies created for use solely by the series of the Trust and other series of registered investment companies advised by the Adviser, in connection with their cash management activities. The main investments of the Central Funds are money market and short maturity fixed income instruments. The Central Funds may incur expenses related to their investment activities, but do not pay Investment Advisory Fees or Supervisory and Administrative Fees to the Adviser. The Central Funds are considered to be affiliated with the Portfolio. The table below shows the Portfolio’s transactions in and earnings from investments in the affiliated Funds for the period ended December 31, 2018 (amounts in thousands^†):

Investment in PIMCO Short-Term Floating NAV Portfolio III

Market Value 12/31/2017		Purchases at Cost		Proceeds from Sales			Net Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)		Market Value 12/31/2018		Dividend Income(1)		Realized Net Capital  Gain Distributions(1)
$	2,807	$	114,708	$	(112,900	)	$	2	$	0	$	4,617	$	208	$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽¹⁾  The tax characterization of distributions is determined in accordance with Federal income tax regulations and may contain a return of capital. The actual tax characterization of distributions received is determined at the end of the fiscal year of the affiliated fund. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

(b) Investments in Securities

The Portfolio may utilize the investments and strategies described below to the extent permitted by the Portfolio’s investment policies.

Inflation-Indexed Bonds  are fixed income securities whose principal value is periodically adjusted by the rate of inflation. The interest rate on these bonds is generally fixed at issuance at a rate lower than typical bonds. Over the life of an inflation-indexed bond, however, interest will be paid based on a principal value which is adjusted for inflation. Any increase or decrease in the principal amount of an inflation-indexed bond will be included as interest income on the Statement of Operations, even though investors do not receive their principal until maturity. Repayment of the original bond principal upon maturity (as adjusted for inflation) is guaranteed in the case of U.S. Treasury Inflation-Protected Securities (“TIPS”). For bonds that do not provide a similar guarantee, the adjusted principal value of the bond repaid at maturity may be less than the original principal.

Loans and Other Indebtedness, Loan Participations and Assignments  are direct debt instruments which are interests in

amounts owed to lenders or lending syndicates by corporate, governmental, or other borrowers. The Portfolio’s investments in loans may be in the form of participations in loans or assignments of all or a portion of loans from third parties or investments in or originations of loans by the Portfolio. A loan is often administered by a bank or other financial institution (the “agent”) that acts as agent for all holders. The agent administers the terms of the loan, as specified in the loan agreement. The Portfolio may invest in multiple series or tranches of a loan, which may have varying terms and carry different associated risks. When the Portfolio purchases assignments from agents it acquires direct rights against the borrowers of the loans. These loans may include participations in bridge loans, which are loans taken out by borrowers for a short period (typically less than one year) pending arrangement of more permanent financing through, for example, the issuance of bonds, frequently high yield bonds issued for the purpose of acquisitions.

The types of loans and related investments in which the Portfolio may invest include, among others, senior loans, subordinated loans (including second lien loans, B-Notes and mezzanine loans), whole

ANNUAL REPORT DECEMBER 31, 2018 29

Notes to Financial Statements (Cont.)

loans, commercial real estate and other commercial loans and structured loans. The Portfolio may originate loans or acquire direct interests in loans through primary loan distributions and/or in private transactions. In the case of subordinated loans, there may be significant indebtedness ranking ahead of the borrower’s obligation to the holder of such a loan, including in the event of the borrower’s insolvency. Mezzanine loans are typically secured by a pledge of an equity interest in the mortgage borrower that owns the real estate rather than an interest in a mortgage.

Investments in loans may include unfunded loan commitments, which are contractual obligations for funding. Unfunded loan commitments may include revolving credit facilities, which may obligate the Portfolio to supply additional cash to the borrower on demand. Unfunded loan commitments represent a future obligation in full, even though a percentage of the committed amount may not be utilized by the borrower. When investing in a loan participation, the Portfolio has the right to receive payments of principal, interest and any fees to which it is entitled only from the agent selling the loan agreement and only upon receipt of payments by the agent from the borrower. The Portfolio may receive a commitment fee based on the undrawn portion of the underlying line of credit portion of a loan. In certain circumstances, the Portfolio may receive a penalty fee upon the prepayment of a loan by a borrower. Fees earned or paid are recorded as a component of interest income or interest expense, respectively, on the Statement of Operations. Unfunded loan commitments are reflected as a liability on the Statement of Assets and Liabilities.

Mortgage-Related and Other Asset-Backed Securities  directly or indirectly represent a participation in, or are secured by and payable from, loans on real property. Mortgage-related securities are created from pools of residential or commercial mortgage loans, including mortgage loans made by savings and loan institutions, mortgage bankers, commercial banks and others. These securities provide a monthly payment which consists of both interest and principal. Interest may be determined by fixed or adjustable rates. The rate of prepayments on underlying mortgages will affect the price and volatility of a mortgage-related security, and may have the effect of shortening or extending the effective duration of the security relative to what was anticipated at the time of purchase. The timely payment of principal and interest of certain mortgage-related securities is guaranteed with the full faith and credit of the U.S. Government. Pools created and guaranteed by non-governmental issuers, including government-sponsored corporations, may be supported by various forms of insurance or guarantees, but there can be no assurance that private insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Many of the risks of investing in mortgage-related securities secured by commercial mortgage loans

reflect the effects of local and other economic conditions on real estate markets, the ability of tenants to make lease payments, and the ability of a property to attract and retain tenants. These securities may be less liquid and may exhibit greater price volatility than other types of mortgage-related or other asset-backed securities. Other asset-backed securities are created from many types of assets, including, but not limited to, auto loans, accounts receivable, such as credit card receivables and hospital account receivables, home equity loans, student loans, boat loans, mobile home loans, recreational vehicle loans, manufactured housing loans, aircraft leases, computer leases and syndicated bank loans.

Collateralized Debt Obligations  (“CDOs”) include Collateralized Bond Obligations (“CBOs”), Collateralized Loan Obligations (“CLOs”) and other similarly structured securities. CBOs and CLOs are types of asset-backed securities. A CBO is a trust which is backed by a diversified pool of high risk, below investment grade fixed income securities. A CLO is a trust typically collateralized by a pool of loans, which may include, among others, domestic and foreign senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated below investment grade or equivalent unrated loans. The risks of an investment in a CDO depend largely on the type of the collateral securities and the class of the CDO in which the Portfolio invests. In addition to the normal risks associated with fixed income securities discussed elsewhere in this report and the Portfolio’s prospectus and statement of additional information (e.g., prepayment risk, credit risk, liquidity risk, market risk, structural risk, legal risk and interest rate risk (which may be exacerbated if the interest rate payable on a structured financing changes based on multiples of changes in interest rates or inversely to changes in interest rates)), CBOs, CLOs and other CDOs carry additional risks including, but not limited to, (i) the possibility that distributions from collateral securities will not be adequate to make interest or other payments, (ii) the quality of the collateral may decline in value or default, (iii) the risk that the Portfolio may invest in CBOs, CLOs, or other CDOs that are subordinate to other classes, and (iv) the complex structure of the security may not be fully understood at the time of investment and may produce disputes with the issuer or unexpected investment results.

Collateralized Mortgage Obligations  (“CMOs”) are debt obligations of a legal entity that are collateralized by whole mortgage loans or private mortgage bonds and divided into classes. CMOs are structured into multiple classes, often referred to as “tranches”, with each class bearing a different stated maturity and entitled to a different schedule for payments of principal and interest, including prepayments. CMOs may be less liquid and may exhibit greater price volatility than other types of mortgage-related or asset-backed securities.

30 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

Stripped Mortgage-Backed Securities  (“SMBS”) are derivative multi-class mortgage securities. SMBS are usually structured with two classes that receive different proportions of the interest and principal distributions on a pool of mortgage assets. An SMBS will have one class that will receive all of the interest (the interest-only or “IO” class), while the other class will receive the entire principal (the principal-only or “PO” class). Payments received for IOs are included in interest income on the Statement of Operations. Because no principal will be received at the maturity of an IO, adjustments are made to the cost of the security on a monthly basis until maturity. These adjustments are included in interest income on the Statement of Operations. Payments received for POs are treated as reductions to the cost and par value of the securities.

Payment In-Kind Securities  (“PIKs”) may give the issuer the option at each interest payment date of making interest payments in either cash and/or additional debt securities. Those additional debt securities usually have the same terms, including maturity dates and interest rates, and associated risks as the original bonds. The daily market quotations of the original bonds may include the accrued interest (referred to as a dirty price) and require a pro rata adjustment from the unrealized appreciation (depreciation) on investments to interest receivable on the Statement of Assets and Liabilities.

Perpetual Bonds  are fixed income securities with no maturity date but pay a coupon in perpetuity (with no specified ending or maturity date). Unlike typical fixed income securities, there is no obligation for perpetual bonds to repay principal. The coupon payments, however, are mandatory. While perpetual bonds have no maturity date, they may have a callable date in which the perpetuity is eliminated and the issuer may return the principal received on the specified call date. Additionally, a perpetual bond may have additional features, such as interest rate increases at periodic dates or an increase as of a predetermined point in the future.

Securities Issued by U.S. Government Agencies or Government-Sponsored Enterprises  are obligations of and, in certain cases, guaranteed by, the U.S. Government, its agencies or instrumentalities. Some U.S. Government securities, such as Treasury bills, notes and bonds, and securities guaranteed by the Government National Mortgage Association (“GNMA” or “Ginnie Mae”), are supported by the full faith and credit of the U.S. Government; others, such as those of the Federal Home Loan Banks, are supported by the right of the issuer to borrow from the U.S. Department of the Treasury (the “U.S. Treasury”); and others, such as those of the Federal National Mortgage Association (“FNMA” or “Fannie Mae”), are supported by the discretionary authority of the U.S. Government to purchase the agency’s obligations. U.S. Government securities may include zero coupon securities. Zero coupon securities do not distribute interest on a current basis and tend to be subject to a greater risk than interest-paying securities.

Government-related guarantors (i.e., not backed by the full faith and credit of the U.S. Government) include FNMA and the Federal Home Loan Mortgage Corporation (“FHLMC” or “Freddie Mac”). FNMA is a government-sponsored corporation. FNMA purchases conventional (i.e., not insured or guaranteed by any government agency) residential mortgages from a list of approved seller/servicers which include state and federally chartered savings and loan associations, mutual savings banks, commercial banks and credit unions and mortgage bankers. Pass-through securities issued by FNMA are guaranteed as to timely payment of principal and interest by FNMA, but are not backed by the full faith and credit of the U.S. Government. FHLMC issues Participation Certificates (“PCs”), which are pass-through securities, each representing an undivided interest in a pool of residential mortgages. FHLMC guarantees the timely payment of interest and ultimate collection of principal, but PCs are not backed by the full faith and credit of the U.S. Government.

Roll-timing strategies can be used where the Portfolio seeks to extend the expiration or maturity of a position, such as a TBA security on an underlying asset, by closing out the position before expiration and opening a new position with respect to substantially the same underlying asset with a later expiration date. TBA securities purchased or sold are reflected on the Statement of Assets and Liabilities as an asset or liability, respectively.

When-Issued Transactions  are purchases or sales made on a when-issued basis. These transactions are made conditionally because a security, although authorized, has not yet been issued in the market. Transactions to purchase or sell securities on a when-issued basis involve a commitment by the Portfolio to purchase or sell these securities for a predetermined price or yield, with payment and delivery taking place beyond the customary settlement period. The Portfolio may sell when-issued securities before they are delivered, which may result in a realized gain (loss).

5. BORROWINGS AND OTHER FINANCING TRANSACTIONS

The Portfolio may enter into the borrowings and other financing transactions described below to the extent permitted by the Portfolio’s investment policies.

The following disclosures contain information on the Portfolio’s ability to lend or borrow cash or securities to the extent permitted under the Act, which may be viewed as borrowing or financing transactions by the Portfolio. The location of these instruments in the Portfolio’s financial statements is described below.

(a) Repurchase Agreements  Under the terms of a typical repurchase agreement, the Portfolio purchases an underlying debt obligation

ANNUAL REPORT DECEMBER 31, 2018 31

Notes to Financial Statements (Cont.)

(collateral) subject to an obligation of the seller to repurchase, and the Portfolio to resell, the obligation at an agreed-upon price and time. In an open maturity repurchase agreement, there is no pre-determined repurchase date and the agreement can be terminated by the Portfolio or counterparty at any time. The underlying securities for all repurchase agreements are held by the Portfolio’s custodian or designated subcustodians under tri-party repurchase agreements and in certain instances will remain in custody with the counterparty. The market value of the collateral must be equal to or exceed the total amount of the repurchase obligations, including interest. Repurchase agreements, if any, including accrued interest, are included on the Statement of Assets and Liabilities. Interest earned is recorded as a component of interest income on the Statement of Operations. In periods of increased demand for collateral, the Portfolio may pay a fee for the receipt of collateral, which may result in interest expense to the Portfolio.

(b) Reverse Repurchase Agreements  In a reverse repurchase agreement, the Portfolio delivers a security in exchange for cash to a financial institution, the counterparty, with a simultaneous agreement to repurchase the same or substantially the same security at an agreed upon price and date. In an open maturity reverse repurchase agreement, there is no pre-determined repurchase date and the agreement can be terminated by the Portfolio or counterparty at any time. The Portfolio is entitled to receive principal and interest payments, if any, made on the security delivered to the counterparty during the term of the agreement. Cash received in exchange for securities delivered plus accrued interest payments to be made by the Portfolio to counterparties are reflected as a liability on the Statement of Assets and Liabilities. Interest payments made by the Portfolio to counterparties are recorded as a component of interest expense on the Statement of Operations. In periods of increased demand for the security, the Portfolio may receive a fee for use of the security by the counterparty, which may result in interest income to the Portfolio. The Portfolio will segregate assets determined to be liquid by the Adviser or will otherwise cover its obligations under reverse repurchase agreements.

(c) Sale-Buybacks  A sale-buyback financing transaction consists of a sale of a security by the Portfolio to a financial institution, the counterparty, with a simultaneous agreement to repurchase the same or substantially the same security at an agreed-upon price and date. The Portfolio is not entitled to receive principal and interest payments, if any, made on the security sold to the counterparty during the term of the agreement. The agreed-upon proceeds for securities to be repurchased by the Portfolio are reflected as a liability on the Statement of Assets and Liabilities. The Portfolio will recognize net income represented by the price differential between the price received for the transferred security and the agreed-upon repurchase price. This is

commonly referred to as the ‘price drop’. A price drop consists of (i) the foregone interest and inflationary income adjustments, if any, the Portfolio would have otherwise received had the security not been sold and (ii) the negotiated financing terms between the Portfolio and counterparty. Foregone interest and inflationary income adjustments, if any, are recorded as components of interest income on the Statement of Operations. Interest payments based upon negotiated financing terms made by the Portfolio to counterparties are recorded as a component of interest expense on the Statement of Operations. In periods of increased demand for the security, the Portfolio may receive a fee for use of the security by the counterparty, which may result in interest income to the Portfolio. The Portfolio will segregate assets determined to be liquid by the Adviser or will otherwise cover its obligations under sale-buyback transactions.

6. FINANCIAL DERIVATIVE INSTRUMENTS

The Portfolio may enter into the financial derivative instruments described below to the extent permitted by the Portfolio’s investment policies.

The following disclosures contain information on how and why the Portfolio uses financial derivative instruments, and how financial derivative instruments affect the Portfolio’s financial position, results of operations and cash flows. The location and fair value amounts of these instruments on the Statement of Assets and Liabilities and the net realized gain (loss) and net change in unrealized appreciation (depreciation) on the Statement of Operations, each categorized by type of financial derivative contract and related risk exposure, are included in a table in the Notes to Schedule of Investments. The financial derivative instruments outstanding as of period end and the amounts of net realized gain (loss) and net change in unrealized appreciation (depreciation) on financial derivative instruments during the period, as disclosed in the Notes to Schedule of Investments, serve as indicators of the volume of financial derivative activity for the Portfolio.

(a) Forward Foreign Currency Contracts  may be engaged, in connection with settling planned purchases or sales of securities, to hedge the currency exposure associated with some or all of the Portfolio’s securities or as part of an investment strategy. A forward foreign currency contract is an agreement between two parties to buy and sell a currency at a set price on a future date. The market value of a forward foreign currency contract fluctuates with changes in foreign currency exchange rates. Forward foreign currency contracts are marked to market daily, and the change in value is recorded by the Portfolio as an unrealized gain (loss). Realized gains (losses) are equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed and are recorded upon

32 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

delivery or receipt of the currency. These contracts may involve market risk in excess of the unrealized gain (loss) reflected on the Statement of Assets and Liabilities. In addition, the Portfolio could be exposed to risk if the counterparties are unable to meet the terms of the contracts or if the value of the currency changes unfavorably to the U.S. dollar. To mitigate such risk, cash or securities may be exchanged as collateral pursuant to the terms of the underlying contracts.

(b) Futures Contracts  are agreements to buy or sell a security or other asset for a set price on a future date. The Portfolio may use futures contracts to manage its exposure to the securities markets or to movements in interest rates and currency values. The primary risks associated with the use of futures contracts are the imperfect correlation between the change in market value of the securities held by the Portfolio and the prices of futures contracts and the possibility of an illiquid market. Futures contracts are valued based upon their quoted daily settlement prices. Upon entering into a futures contract, the Portfolio is required to deposit with its futures broker an amount of cash, U.S. Government and Agency Obligations, or select sovereign debt, in accordance with the initial margin requirements of the broker or exchange. Futures contracts are marked to market daily and based on such movements in the price of the contracts, an appropriate payable or receivable for the change in value may be posted or collected by the Portfolio (“Futures Variation Margin”). Gains (losses) are recognized but not considered realized until the contracts expire or close. Futures contracts involve, to varying degrees, risk of loss in excess of the Futures Variation Margin included within exchange traded or centrally cleared financial derivative instruments on the Statement of Assets and Liabilities.

(c) Options Contracts  may be written or purchased to enhance returns or to hedge an existing position or future investment. The Portfolio may write call and put options on securities and financial derivative instruments it owns or in which it may invest. Writing put options tends to increase the Portfolio’s exposure to the underlying instrument. Writing call options tends to decrease the Portfolio’s exposure to the underlying instrument. When the Portfolio writes a call or put, an amount equal to the premium received is recorded and subsequently marked to market to reflect the current value of the option written. These amounts are included on the Statement of Assets and Liabilities. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options which are exercised or closed are added to the proceeds or offset against amounts paid on the underlying futures, swap, security or currency transaction to determine the realized gain (loss). Certain options may be written with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. The Portfolio as a writer of an option

has no control over whether the underlying instrument may be sold (“call”) or purchased (“put”) and as a result bears the market risk of an unfavorable change in the price of the instrument underlying the written option. There is the risk the Portfolio may not be able to enter into a closing transaction because of an illiquid market.

Purchasing call options tends to increase the Portfolio’s exposure to the underlying instrument. Purchasing put options tends to decrease the Portfolio’s exposure to the underlying instrument. The Portfolio pays a premium which is included as an asset on the Statement of Assets and Liabilities and subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options which expire are treated as realized losses. Certain options may be purchased with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. The risk associated with purchasing put and call options is limited to the premium paid. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the underlying investment transaction to determine the realized gain (loss) when the underlying transaction is executed.

Credit Default Swaptions  may be written or purchased to hedge exposure to the credit risk of an investment without making a commitment to the underlying instrument. A credit default swaption is an option to sell or buy credit protection on a specific reference by entering into a pre-defined swap agreement by some specified date in the future.

Foreign Currency Options  may be written or purchased to be used as a short or long hedge against possible variations in foreign exchange rates or to gain exposure to foreign currencies.

Interest Rate Swaptions  may be written or purchased to enter into a pre-defined swap agreement or to shorten, extend, cancel or otherwise modify an existing swap agreement, by some specified date in the future. The writer of the swaption becomes the counterparty to the swap if the buyer exercises. The interest rate swaption agreement will specify whether the buyer of the swaption will be a fixed-rate receiver or a fixed-rate payer upon exercise.

Options on Exchange-Traded Futures Contracts  (“Futures Option”) may be written or purchased to hedge an existing position or future investment, for speculative purposes or to manage exposure to market movements. A Futures Option is an option contract in which the underlying instrument is a single futures contract.

Options on Securities  may be written or purchased to enhance returns or to hedge an existing position or future investment. An option on a security uses a specified security as the underlying instrument for the option contract.

ANNUAL REPORT DECEMBER 31, 2018 33

Notes to Financial Statements (Cont.)

(d) Swap Agreements  are bilaterally negotiated agreements between the Portfolio and a counterparty to exchange or swap investment cash flows, assets, foreign currencies or market-linked returns at specified, future intervals. Swap agreements may be privately negotiated in the over the counter market (“OTC swaps”) or may be cleared through a third party, known as a central counterparty or derivatives clearing organization (“Centrally Cleared Swaps”). The Portfolio may enter into asset, credit default, cross-currency, interest rate, total return, variance and other forms of swap agreements to manage its exposure to credit, currency, interest rate, commodity, equity and inflation risk. In connection with these agreements, securities or cash may be identified as collateral or margin in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default or bankruptcy/insolvency.

Centrally Cleared Swaps are marked to market daily based upon valuations as determined from the underlying contract or in accordance with the requirements of the central counterparty or derivatives clearing organization. Changes in market value, if any, are reflected as a component of net change in unrealized appreciation (depreciation) on the Statement of Operations. Daily changes in valuation of centrally cleared swaps (“Swap Variation Margin”), if any, are disclosed within centrally cleared financial derivative instruments on the Statement of Assets and Liabilities. Centrally Cleared and OTC swap payments received or paid at the beginning of the measurement period are included on the Statement of Assets and Liabilities and represent premiums paid or received upon entering into the swap agreement to compensate for differences between the stated terms of the swap agreement and prevailing market conditions (credit spreads, currency exchange rates, interest rates, and other relevant factors). Upfront premiums received (paid) are initially recorded as liabilities (assets) and subsequently marked to market to reflect the current value of the swap. These upfront premiums are recorded as realized gain (loss) on the Statement of Operations upon termination or maturity of the swap. A liquidation payment received or made at the termination of the swap is recorded as realized gain (loss) on the Statement of Operations. Net periodic payments received or paid by the Portfolio are included as part of realized gain (loss) on the Statement of Operations.

For purposes of applying certain of the Portfolio’s investment policies and restrictions, swap agreements, like other derivative instruments, may be valued by the Portfolio at market value, notional value or full exposure value. In the case of a credit default swap, in applying certain of the Portfolio’s investment policies and restrictions, the Portfolio will value the credit default swap at its notional value or its full exposure value (i.e., the sum of the notional amount for the contract plus the market value), but may value the credit default swap at market value for purposes of applying certain of the Portfolio’s other investment

policies and restrictions. For example, the Portfolio may value credit default swaps at full exposure value for purposes of the Portfolio’s credit quality guidelines (if any) because such value in general better reflects the Portfolio’s actual economic exposure during the term of the credit default swap agreement. As a result, the Portfolio may, at times, have notional exposure to an asset class (before netting) that is greater or lesser than the stated limit or restriction noted in the Portfolio’s prospectus. In this context, both the notional amount and the market value may be positive or negative depending on whether the Portfolio is selling or buying protection through the credit default swap. The manner in which certain securities or other instruments are valued by the Portfolio for purposes of applying investment policies and restrictions may differ from the manner in which those investments are valued by other types of investors.

Entering into swap agreements involves, to varying degrees, elements of interest, credit, market and documentation risk in excess of the amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of contractual terms in the agreements and that there may be unfavorable changes in interest rates or the values of the asset upon which the swap is based.

The Portfolio’s maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from the counterparty over the contract’s remaining life, to the extent that amount is positive. The risk may be mitigated by having a master netting arrangement between the Portfolio and the counterparty and by the posting of collateral to the Portfolio to cover the Portfolio’s exposure to the counterparty.

To the extent the Portfolio has a policy to limit the net amount owed to or to be received from a single counterparty under existing swap agreements, such limitation only applies to counterparties to OTC swaps and does not apply to centrally cleared swaps where the counterparty is a central counterparty or derivatives clearing organization.

Credit Default Swap Agreements  on corporate, loan, sovereign, U.S. municipal or U.S. Treasury issues are entered into to provide a measure of protection against defaults of the issuers (i.e., to reduce risk where the Portfolio owns or has exposure to the referenced obligation) or to take an active long or short position with respect to the likelihood of a particular issuer’s default. Credit default swap agreements involve one party making a stream of payments (referred to as the buyer of protection) to another party (the seller of protection) in exchange for the right to receive a specified return in the event that the referenced entity, obligation or index, as specified in the swap agreement,

34 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

undergoes a certain credit event. As a seller of protection on credit default swap agreements, the Portfolio will generally receive from the buyer of protection a fixed rate of income throughout the term of the swap provided that there is no credit event. As the seller, the Portfolio would effectively add leverage to its portfolio because, in addition to its total net assets, the Portfolio would be subject to investment exposure on the notional amount of the swap.

If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. If the Portfolio is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. Recovery values are estimated by market makers considering either industry standard recovery rates or entity specific factors and considerations until a credit event occurs. If a credit event has occurred, the recovery value is determined by a facilitated auction whereby a minimum number of allowable broker bids, together with a specified valuation method, are used to calculate the settlement value. The ability to deliver other obligations may result in a cheapest-to-deliver option (the buyer of protection’s right to choose the deliverable obligation with the lowest value following a credit event).

Credit default swap agreements on credit indices involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising the credit index. A credit index is a basket of credit instruments or exposures designed to be representative of some part of the credit market as a whole. These indices are made up of reference credits that are judged by a poll of dealers to be the most liquid entities in the credit default swap market based on the sector of the index. Components of the indices may include, but are not limited to, investment grade securities, high yield securities, asset-backed securities, emerging markets, and/or various credit ratings within each sector. Credit indices are traded using credit default swaps with

standardized terms including a fixed spread and standard maturity dates. An index credit default swap references all the names in the index, and if there is a default, the credit event is settled based on that name’s weight in the index. The composition of the indices changes periodically, usually every six months, and for most indices, each name has an equal weight in the index. The Portfolio may use credit default swaps on credit indices to hedge a portfolio of credit default swaps or bonds, which is less expensive than it would be to buy many credit default swaps to achieve a similar effect. Credit default swaps on indices are instruments for protecting investors owning bonds against default, and traders use them to speculate on changes in credit quality.

Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate, loan, sovereign, U.S. municipal or U.S. Treasury issues as of period end, if any, are disclosed in the Notes to Schedule of Investments. They serve as an indicator of the current status of payment/performance risk and represent the likelihood or risk of default for the reference entity. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. For credit default swap agreements on asset-backed securities and credit indices, the quoted market prices and resulting values serve as the indicator of the current status of the payment/performance risk. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

The maximum potential amount of future payments (undiscounted) that the Portfolio as a seller of protection could be required to make under a credit default swap agreement equals the notional amount of the agreement. Notional amounts of each individual credit default swap agreement outstanding as of period end for which the Portfolio is the seller of protection are disclosed in the Notes to Schedule of Investments. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Portfolio for the same referenced entity or entities.

Interest Rate Swap Agreements  may be entered into to help hedge against interest rate risk exposure and to maintain the Portfolio’s ability to generate income at prevailing market rates. The value of the fixed

ANNUAL REPORT DECEMBER 31, 2018 35

Notes to Financial Statements (Cont.)

rate bonds that the Portfolio holds may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, the Portfolio may enter into interest rate swap agreements. Interest rate swap agreements involve the exchange by the Portfolio with another party for their respective commitment to pay or receive interest on the notional amount of principal. Certain forms of interest rate swap agreements may include: (i) interest rate caps, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates exceed a specified rate, or “cap”, (ii) interest rate floors, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates fall below a specified rate, or “floor”, (iii) interest rate collars, under which a party sells a cap and purchases a floor or vice versa in an attempt to protect itself against interest rate movements exceeding given minimum or maximum levels, (iv) callable interest rate swaps, under which the buyer pays an upfront fee in consideration for the right to early terminate the swap transaction in whole, at zero cost and at a predetermined date and time prior to the maturity date, (v) spreadlocks, which allow the interest rate swap users to lock in the forward differential (or spread) between the interest rate swap rate and a specified benchmark, or (vi) basis swaps, under which two parties can exchange variable interest rates based on different segments of money markets.

7. PRINCIPAL RISKS

The principal risks of investing in the Portfolio, which could adversely affect its net asset value, yield and total return, are listed below. Please see “Description of Principal Risks” in the Portfolio’s prospectus for a more detailed description of the risks of investing in the Portfolio.

Interest Rate Risk  is the risk that fixed income securities will decline in value because of an increase in interest rates; a portfolio with a longer average portfolio duration will be more sensitive to changes in interest rates than a portfolio with a shorter average portfolio duration.

Call Risk  is the risk that an issuer may exercise its right to redeem a fixed income security earlier than expected (a call). Issuers may call outstanding securities prior to their maturity for a number of reasons (e.g., declining interest rates, changes in credit spreads and improvements in the issuer’s credit quality). If an issuer calls a security that the Portfolio has invested in, the Portfolio may not recoup the full amount of its initial investment and may be forced to reinvest in lower-yielding securities, securities with greater credit risks or securities with other, less favorable features.

Credit Risk  is the risk that the Portfolio could lose money if the issuer or guarantor of a fixed income security, or the counterparty to a derivative contract, is unable or unwilling to meet its financial obligations.

High Yield Risk  is the risk that high yield securities and unrated securities of similar credit quality (commonly known as “junk bonds”) are subject to greater levels of credit, call and liquidity risks. High yield securities are considered primarily speculative with respect to the issuer’s continuing ability to make principal and interest payments, and may be more volatile than higher-rated securities of similar maturity.

Market Risk  is the risk that the value of securities owned by the Portfolio may go up or down, sometimes rapidly or unpredictably, due to factors affecting securities markets generally or particular industries.

Issuer Risk  is the risk that the value of a security may decline for a reason directly related to the issuer, such as management performance, financial leverage and reduced demand for the issuer’s goods or services.

Liquidity Risk  is the risk that a particular investment may be difficult to purchase or sell and that the Portfolio may be unable to sell illiquid securities at an advantageous time or price or achieve its desired level of exposure to a certain sector. Liquidity risk may result from the lack of an active market, reduced number and capacity of traditional market participants to make a market in fixed income securities, and may be magnified in a rising interest rate environment or other circumstances where investor redemptions from fixed income mutual funds may be higher than normal, causing increased supply in the market due to selling activity.

Derivatives Risk  is the risk of investing in derivative instruments (such as futures, swaps and structured securities), including leverage, liquidity, interest rate, market, credit and management risks, mispricing or valuation complexity. Changes in the value of the derivative may not correlate perfectly with, and may be more sensitive to market events than, the underlying asset, rate or index, and the Portfolio could lose more than the initial amount invested. The Portfolio’s use of derivatives may result in losses to the Portfolio, a reduction in the Portfolio’s returns and/or increased volatility. Over-the-counter (“OTC”) derivatives are also subject to the risk that a counterparty to the transaction will not fulfill its contractual obligations to the other party, as many of the protections afforded to centrally-cleared derivative transactions might not be available for OTC derivatives. For derivatives traded on an exchange or through a central counterparty, credit risk resides with the Portfolio’s clearing broker, or the clearinghouse itself, rather than with a counterparty in an OTC derivative transaction. Changes in regulation relating to a mutual fund’s use of derivatives and related instruments could potentially limit or impact the Portfolio’s ability to invest in derivatives, limit the Portfolio’s ability to employ certain strategies that use derivatives and/or adversely affect the value of derivatives and the Portfolio’s performance.

Equity Risk  is the risk that the value of equity securities, such as common stocks and preferred securities, may decline due to general

36 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

market conditions which are not specifically related to a particular company or to factors affecting a particular industry or industries. Equity securities generally have greater price volatility than fixed income securities.

Mortgage-Related and Other Asset-Backed Securities Risk  is the risk of investing in mortgage-related and other asset-backed securities, including interest rate risk, extension risk, prepayment risk and credit risk.

Foreign (Non-U.S.) Investment Risk  is the risk that investing in foreign (non-U.S.) securities may result in the Portfolio experiencing more rapid and extreme changes in value than a portfolio that invests exclusively in securities of U.S. companies, due to smaller markets, differing reporting, accounting and auditing standards, increased risk of delayed settlement of portfolio transactions or loss of certificates of portfolio securities, and the risk of unfavorable foreign government actions, including nationalization, expropriation or confiscatory taxation, currency blockage, or political changes or diplomatic developments. Foreign securities may also be less liquid and more difficult to value than securities of U.S. issuers.

Emerging Markets Risk  is the risk of investing in emerging market securities, primarily increased foreign (non-U.S.) investment risk.

Sovereign Debt Risk  is the risk that investments in fixed income instruments issued by sovereign entities may decline in value as a result of default or other adverse credit event resulting from an issuer’s inability or unwillingness to make principal or interest payments in a timely fashion.

Currency Risk  is the risk that foreign (non-U.S.) currencies will change in value relative to the U.S. dollar and affect the Portfolio’s investments in foreign (non-U.S.) currencies or in securities that trade in, and receive revenues in, or in derivatives that provide exposure to, foreign (non-U.S.) currencies.

Leveraging Risk  is the risk that certain transactions of the Portfolio, such as reverse repurchase agreements, loans of portfolio securities, and the use of when-issued, delayed delivery or forward commitment transactions, or derivative instruments, may give rise to leverage, magnifying gains and losses and causing the Portfolio to be more volatile than if it had not been leveraged. This means that leverage entails a heightened risk of loss.

Management Risk  is the risk that the investment techniques and risk analyses applied by PIMCO will not produce the desired results and that legislative, regulatory, or tax restrictions, policies or developments may affect the investment techniques available to PIMCO and the individual portfolio manager in connection with managing the Portfolio. There is no guarantee that the investment objective of the Portfolio will be achieved.

Short Exposure Risk  is the risk of entering into short sales, including the potential loss of more money than the actual cost of the investment, and the risk that the third party to the short sale will not fulfill its contractual obligations, causing a loss to the Portfolio.

8. MASTER NETTING ARRANGEMENTS

The Portfolio may be subject to various netting arrangements (“Master Agreements”) with select counterparties. Master Agreements govern the terms of certain transactions, and are intended to reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that is intended to improve legal certainty. Each type of Master Agreement governs certain types of transactions. Different types of transactions may be traded out of different legal entities or affiliates of a particular organization, resulting in the need for multiple agreements with a single counterparty. As the Master Agreements are specific to unique operations of different asset types, they allow the Portfolio to close out and net its total exposure to a counterparty in the event of a default with respect to all the transactions governed under a single Master Agreement with a counterparty. For financial reporting purposes the Statement of Assets and Liabilities generally presents derivative assets and liabilities on a gross basis, which reflects the full risks and exposures prior to netting.

Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. Under most Master Agreements, collateral is routinely transferred if the total net exposure to certain transactions (net of existing collateral already in place) governed under the relevant Master Agreement with a counterparty in a given account exceeds a specified threshold, which typically ranges from zero to $250,000 depending on the counterparty and the type of Master Agreement. United States Treasury Bills and U.S. dollar cash are generally the preferred forms of collateral, although other securities may be used depending on the terms outlined in the applicable Master Agreement. Securities and cash pledged as collateral are reflected as assets on the Statement of Assets and Liabilities as either a component of Investments at value (securities) or Deposits with counterparty. Cash collateral received is not typically held in a segregated account and as such is reflected as a liability on the Statement of Assets and Liabilities as Deposits from counterparty. The market value of any securities received as collateral is not reflected as a component of NAV. The Portfolio’s overall exposure to counterparty risk can change substantially within a short period, as it is affected by each transaction subject to the relevant Master Agreement.

Master Repurchase Agreements and Global Master Repurchase Agreements (individually and collectively “Master Repo Agreements”) govern repurchase, reverse repurchase, and certain sale-buyback transactions between the Portfolio and select counterparties. Master

ANNUAL REPORT DECEMBER 31, 2018 37

Notes to Financial Statements (Cont.)

Repo Agreements maintain provisions for, among other things, initiation, income payments, events of default, and maintenance of collateral. The market value of transactions under the Master Repo Agreement, collateral pledged or received, and the net exposure by counterparty as of period end are disclosed in the Notes to Schedule of Investments.

Master Securities Forward Transaction Agreements (“Master Forward Agreements”) govern certain forward settling transactions, such as TBA securities, delayed-delivery or certain sale-buyback transactions by and between the Portfolio and select counterparties. The Master Forward Agreements maintain provisions for, among other things, transaction initiation and confirmation, payment and transfer, events of default, termination, and maintenance of collateral. The market value of forward settling transactions, collateral pledged or received, and the net exposure by counterparty as of period end is disclosed in the Notes to Schedule of Investments.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Such transactions require posting of initial margin as determined by each relevant clearing agency which is segregated in an account at a futures commission merchant (“FCM”) registered with the Commodity Futures Trading Commission (“CFTC”). In the United States, counterparty risk may be reduced as creditors of an FCM cannot have a claim to Portfolio assets in the segregated account. Portability of exposure reduces risk to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives unless the parties have agreed to a separate arrangement in respect of portfolio margining. The market value or accumulated unrealized appreciation (depreciation), initial margin posted, and any unsettled variation margin as of period end are disclosed in the Notes to Schedule of Investments.

Prime Broker Arrangements may be entered into to facilitate execution and/or clearing of listed equity option transactions or short sales of equity securities between the Portfolio and selected counterparties. The arrangements provide guidelines surrounding the rights, obligations, and other events, including, but not limited to, margin, execution, and settlement. These agreements maintain provisions for, among other things, payments, maintenance of collateral, events of default, and termination. Margin and other assets delivered as collateral are typically in the possession of the prime broker and would offset any obligations due to the prime broker. The market values of listed options and securities sold short and related collateral are disclosed in the Notes to Schedule of Investments.

International Swaps and Derivatives Association, Inc. Master Agreements and Credit Support Annexes (“ISDA Master Agreements”) govern

bilateral OTC derivative transactions entered into by the Portfolio with select counterparties. ISDA Master Agreements maintain provisions for general obligations, representations, agreements, collateral posting and events of default or termination. Events of termination include conditions that may entitle counterparties to elect to terminate early and cause settlement of all outstanding transactions under the applicable ISDA Master Agreement. Any election to terminate early could be material to the financial statements. In limited circumstances, the ISDA Master Agreement may contain additional provisions that add counterparty protection beyond coverage of existing daily exposure if the counterparty has a decline in credit quality below a predefined level. These amounts, if any, may be segregated with a third-party custodian. The market value of OTC financial derivative instruments, collateral received or pledged, and net exposure by counterparty as of period end are disclosed in the Notes to Schedule of Investments.

9. FEES AND EXPENSES

(a) Investment Advisory Fee  PIMCO is a majority-owned subsidiary of Allianz Asset Management of America L.P. (“Allianz Asset Management”) and serves as the Adviser to the Trust, pursuant to an investment advisory contract. The Adviser receives a monthly fee from the Portfolio at an annual rate based on average daily net assets (the “Investment Advisory Fee”). The Investment Advisory Fee for all classes is charged at an annual rate as noted in the table in note (b) below.

(b) Supervisory and Administrative Fee  PIMCO serves as administrator (the “Administrator”) and provides supervisory and administrative services to the Trust for which it receives a monthly supervisory and administrative fee based on each share class’s average daily net assets (the “Supervisory and Administrative Fee”). As the Administrator, PIMCO bears the costs of various third-party services, including audit, custodial, portfolio accounting, legal, transfer agency and printing costs.

The Investment Advisory Fee and Supervisory and Administrative Fees for all classes, as applicable, are charged at the annual rate as noted in the following table (calculated as a percentage of the Portfolio’s average daily net assets attributable to each class):

Investment Advisory Fee		Supervisory and Administrative Fee
All Classes		Institutional Class		Class M		Administrative Class		Advisor Class
	0.55%		0.30%		0.30%		0.30%		0.30%

(c) Distribution and Servicing Fees  PIMCO Investments LLC, a wholly-owned subsidiary of PIMCO, serves as the distributor (“Distributor”) of the Trust’s shares. The Trust has adopted an Administrative Services Plan with respect to the Administrative Class shares of the Portfolio pursuant to Rule 12b-1 under the Act (the “Administrative Plan”). Under the terms of the Administrative Plan, the Trust is permitted to

38 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

compensate the Distributor, out of the Administrative Class assets of the Portfolio, in an amount up to 0.15% on an annual basis of the average daily net assets of that class, for providing or procuring through financial intermediaries administrative, recordkeeping and investor services for Administrative Class shareholders of the Portfolio.

The Trust has adopted a separate Distribution and Servicing Plan for each of the Advisor Class and Class M shares of the Portfolio (the “Distribution and Servicing Plans”). The Distribution and Servicing Plans have been adopted pursuant to Rule 12b-1 under the Act. The Distribution and Servicing Plans permit the Portfolio to compensate the Distributor for providing or procuring through financial intermediaries, distribution, administrative, recordkeeping, shareholder and/or related services with respect to Advisor Class and Class M shares. The Distribution and Servicing Plans permit the Portfolio to make total payments at an annual rate of up to 0.25% of its average daily net assets attributable to its Advisor Class or Class M shares, respectively. The Distribution and Servicing Plan for Class M shares also permits the Portfolio to compensate the Distributor for providing or procuring administrative, recordkeeping, and other investor services at an annual rate of up to 0.20% of its average daily net assets attributable to its Class M shares.

	Distribution Fee		Servicing Fee
Class M		0.25%		0.20%
Administrative Class		—		0.15%
Advisor Class		0.25%		—

(d) Portfolio Expenses  PIMCO provides or procures supervisory and administrative services for shareholders and also bears the costs of various third-party services required by the Portfolio, including audit, custodial, portfolio accounting, legal, transfer agency and printing costs. The Trust is responsible for the following expenses: (i) taxes and governmental fees; (ii) brokerage fees and commissions and other portfolio transaction expenses; (iii) the costs of borrowing money, including interest expense; (iv) fees and expenses of the Trustees who are not “interested persons” of PIMCO or the Trust, and any counsel retained exclusively for their benefit; (v) extraordinary expense, including costs of litigation and indemnification expenses; (vi) organizational expenses; and (vii) any expenses allocated or allocable to a specific class of shares, which include service fees payable with respect to the Administrative Class Shares, and may include certain other expenses as permitted by the Trust’s Multi-Class Plan adopted pursuant to Rule 18f-3 under the Act and subject to review and approval by the Trustees. The ratio of expenses to average net assets per share class, as disclosed on the Financial Highlights, may differ from the annual portfolio operating expenses per share class.

Each Trustee, other than those affiliated with PIMCO or its affiliates, receives an annual retainer of $41,200, plus $4,250 for each Board meeting attended in person, $850 for each committee meeting

attended and $750 for each Board meeting attended telephonically, plus reimbursement of related expenses. In addition, the audit committee chair receives an additional annual retainer of $8,000, the valuation oversight committee lead receives an additional annual retainer of $8,500 (to the extent there are co-leads of the valuation oversight committee, the annual retainer will be split evenly between the co-leads, so that each co-lead individually receives an additional annual retainer of $4,250) and each other committee chair receives an additional annual retainer of $5,500. The Lead Independent Trustee receives an annual retainer of $7,000.

These expenses are allocated on a pro rata basis to each Portfolio of the Trust according to its respective net assets. The Trust pays no compensation directly to any Trustee or any other officer who is affiliated with the Administrator, all of whom receive remuneration for their services to the Trust from the Administrator or its affiliates.

(e) Expense Limitation  Pursuant to the Expense Limitation Agreement, PIMCO has agreed to waive a portion of the Portfolio’s Supervisory and Administrative Fee, or reimburse the Portfolio, to the extent that the Portfolio’s organizational expenses, pro rata share of expenses related to obtaining or maintaining a Legal Entity Identifier and pro rata share of Trustee Fees exceed 0.0049%, the “Expense Limit” (calculated as a percentage of the Portfolio’s average daily net assets attributable to each class). The Expense Limitation Agreement will automatically renew for one-year terms unless PIMCO provides written notice to the Trust at least 30 days prior to the end of the then current term.

Under certain conditions, PIMCO may be reimbursed for amounts waived pursuant to the Expense Limitation Agreement in future periods, not to exceed thirty-six months after the waiver. At December 31, 2018, there were no recoverable amounts.

10. RELATED PARTY TRANSACTIONS

The Adviser, Administrator, and Distributor are related parties. Fees paid to these parties are disclosed in Note 9, Fees and Expenses, and the accrued related party fee amounts are disclosed on the Statement of Assets and Liabilities.

11. GUARANTEES AND INDEMNIFICATIONS

Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust (including the Trust’s investment manager) is indemnified, to the extent permitted by the Act, against certain liabilities that may arise out of performance of their duties to the Portfolio. Additionally, in the normal course of business, the Portfolio enters into contracts that contain a variety of indemnification clauses. The Portfolio’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made

against the Portfolio that have not yet occurred. However, the Portfolio

has not had prior claims or losses pursuant to these contracts.

ANNUAL REPORT DECEMBER 31, 2018 39

Notes to Financial Statements (Cont.)

12. PURCHASES AND SALES OF SECURITIES

The length of time the Portfolio has held a particular security is not generally a consideration in investment decisions. A change in the securities held by the Portfolio is known as “portfolio turnover.” The Portfolio may engage in frequent and active trading of portfolio securities to achieve its investment objective, particularly during periods of volatile market movements. High portfolio turnover may involve correspondingly greater transaction costs to the Portfolio, including brokerage commissions or dealer mark-ups and other transaction costs on the sale of securities and reinvestments in other securities. Such sales may also result in realization of taxable capital gains, including

short-term capital gains (which are generally taxed at ordinary income tax rates). The transaction costs and tax effects associated with portfolio turnover may adversely affect a shareholder’s performance. The portfolio turnover rates are reported in the Financial Highlights.

Purchases and sales of securities (excluding short-term investments) for the period ended December 31, 2018, were as follows (amounts in thousands^†):

U.S. Government/Agency				All Other
Purchases		Sales		Purchases		Sales
$	676,312	$	630,100	$	72,889	$	25,279

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

13. SHARES OF BENEFICIAL INTEREST

The Trust may issue an unlimited number of shares of beneficial interest with a $0.001 par value. Changes in shares of beneficial interest were as follows (shares and amounts in thousands^†):

	Year Ended 12/31/2018						Year Ended 12/31/2017
	Shares			Amount			Shares			Amount
Receipts for shares sold
Institutional Class		475		$	4,968			1,485		$	15,691
Class M		14			147			7			72
Administrative Class		3,096			32,459			2,524			26,206
Advisor Class		306			3,218			555			5,794
Issued as reinvestment of distributions
Institutional Class		72			750			34			353
Class M		2			18			1			10
Administrative Class		746			7,796			465			4,876
Advisor Class		36			375			19			201
Cost of shares redeemed
Institutional Class		(1,059	)		(11,132	)		(167	)		(1,744	)
Class M		(20	)		(205	)		(9	)		(90	)
Administrative Class		(5,297	)		(55,447	)		(3,295	)		(34,451	)
Advisor Class		(182	)		(1,909	)		(474	)		(4,959	)
Net increase (decrease) resulting from Portfolio share transactions		(1,811	)	$	(18,962	)		1,145		$	11,959

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

As of December 31, 2018, one shareholder owned 10% or more of the Portfolio’s total outstanding shares comprising 62% of the Portfolio, and the shareholder is a related party of the Portfolio. Related parties may include, but are not limited to, the investment adviser and its affiliates, affiliated broker dealers, fund of funds and directors or employees of the Trust or Adviser.

14. REGULATORY AND LITIGATION MATTERS

The Portfolio is not named as a defendant in any material litigation or arbitration proceedings and is not aware of any material litigation or claim pending or threatened against it.

The foregoing speaks only as of the date of this report.

15. FEDERAL INCOME TAX MATTERS

The Portfolio intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code (the “Code”) and distribute all of its taxable income and net realized gains, if applicable, to shareholders. Accordingly, no provision for Federal income taxes has been made.

The Portfolio may be subject to local withholding taxes, including those imposed on realized capital gains. Any applicable foreign capital gains tax is accrued daily based upon net unrealized gains, and may be payable following the sale of any applicable investments.

40 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

In accordance with U.S. GAAP, the Adviser has reviewed the Portfolio’s tax positions for all open tax years. As of December 31, 2018, the Portfolio has recorded no liability for net unrecognized tax benefits relating to uncertain income tax positions it has taken or expects to take in future tax returns.

The Portfolio files U.S. federal, state, and local tax returns as required. The Portfolio’s tax returns are subject to examination by relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return but which

can be extended to six years in certain circumstances. Tax returns for open years have incorporated no uncertain tax positions that require a provision for income taxes.

Shares of the Portfolio currently are sold to segregated asset accounts (“Separate Accounts”) of insurance companies that fund variable annuity contracts and variable life insurance policies (“Variable Contracts”). Please refer to the prospectus for the Separate Account and Variable Contract for information regarding Federal income tax treatment of distributions to the Separate Account.

As of December 31, 2018, the components of distributable taxable earnings are as follows (amounts in thousands^†):

	Undistributed Ordinary Income(1)		Undistributed Long-Term Capital Gains		Net Tax Basis Unrealized Appreciation/ (Depreciation)(2)		Other Book-to-Tax Accounting Differences(3)			Accumulated Capital Losses(4)			Qualified Late-Year Loss Deferral - Capital(5)		Qualified Late-Year Loss Deferral  - Ordinary(6)
PIMCO Dynamic Bond Portfolio	$	9,439	$	0	$	1,005	$	(11	)	$	(1,517	)	$	0	$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽¹⁾  Includes undistributed short-term capital gains, if any.

⁽²⁾  Adjusted for open wash sale loss deferrals and the accelerated recognition of unrealized gain or loss on certain futures and forward contracts for federal income tax, purposes. Also adjusted for differences between book and tax realized and unrealized gain (loss) on swap contracts, sale/buyback transactions, convertible preferred securities, straddle loss deferrals, and Lehman securities.

⁽³⁾  Represents differences in income tax regulations and financial accounting principles generally accepted in the United States of America, mainly for organizational costs.

⁽⁴⁾  Capital losses available to offset future net capital gains expire in varying amounts as shown below.

⁽⁵⁾  Capital losses realized during the period November 1, 2018 through December 31, 2018 which the Portfolio elected to defer to the following taxable year pursuant to income tax regulations.

⁽⁶⁾  Specified losses realized during the period November 1, 2018 through December 31, 2018 which the Portfolio elected to defer to the following taxable year pursuant to income tax regulations.

Under the Regulated Investment Company Modernization Act of 2010, a fund is permitted to carry forward any new capital losses for an unlimited period. Additionally, such capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term under previous law.

As of December 31, 2018, the Portfolio had the following post-effective capital losses with no expiration (amounts in thousands^†):

	Short-Term		Long-Term
PIMCO Dynamic Bond Portfolio	$	1,517	$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

As of December 31, 2018, the aggregate cost and the net unrealized appreciation/(depreciation) of investments for federal income tax purposes are as follows (amounts in thousands^†):

	Federal Tax Cost		Unrealized Appreciation		Unrealized (Depreciation)			Net Unrealized Appreciation/ (Depreciation)(7)
PIMCO Dynamic Bond Portfolio	$	408,227	$	14,746	$	(13,766	)	$	980

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽⁷⁾  Primary differences, if any, between book and tax net unrealized appreciation/(depreciation) on investments are attributable to open wash sale loss deferrals, unrealized gain or loss on certain futures and forward contracts, sale/buyback transactions, realized and unrealized gain (loss) swap contracts, convertible preferred securities, straddle loss deferrals, and Lehman securities.

ANNUAL REPORT DECEMBER 31, 2018 41

Notes to Financial Statements (Cont.)

December 31, 2018

For the fiscal year ended December 31, 2018 and December 31, 2017, respectively, the Portfolio made the following tax basis distributions (amounts in thousands^†):

	December 31, 2018						December 31, 2017
	Ordinary Income Distributions(8)		Long-Term Capital Gain Distributions		Return of Capital(9)		Ordinary Income Distributions(8)		Long-Term Capital Gain Distributions		Return of Capital(9)
PIMCO Dynamic Bond Portfolio	$	8,939	$	0	$	0	$	5,440	$	0	$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽⁸⁾  Includes short-term capital gains distributed, if any.

⁽⁹⁾  A portion of the distributions made represents a tax return of capital. Return of capital distributions have been reclassified from undistributed net investment income to paid-in capital to more appropriately conform financial accounting to tax accounting.

42 PIMCO VARIABLE INSURANCE TRUST

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of PIMCO Variable Insurance Trust and Shareholders of PIMCO Dynamic Bond Portfolio

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of PIMCO Dynamic Bond Portfolio (one of the portfolios constituting PIMCO Variable Insurance Trust, referred to hereafter as the “Portfolio”) as of December 31, 2018, the related statement of operations for the year ended December 31, 2018, the statement of changes in net assets for each of the two years in the period ended December 31, 2018, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Portfolio as of December 31, 2018, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended December 31, 2018 and the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Portfolio’s management. Our responsibility is to express an opinion on the Portfolio’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Portfolio in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2018 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

Kansas City, Missouri

February 20, 2019

We have served as the auditor of one or more investment companies in PIMCO Variable Insurance Trust since 1998.

ANNUAL REPORT DECEMBER 31, 2018 43

Glossary: (abbreviations that may be used in the preceding statements)

(Unaudited)

Counterparty Abbreviations:
BOA	Bank of America N.A.	FICC	Fixed Income Clearing Corporation	MYC	Morgan Stanley Capital Services, Inc.
BPS	BNP Paribas S.A.	GLM	Goldman Sachs Bank USA	NGF	Nomura Global Financial Products, Inc.
BOM	Bank of Montreal	GRE	RBS Securities, Inc.	RCY	Royal Bank of Canada
BRC	Barclays Bank PLC	GST	Goldman Sachs International	SOG	Societe Generale
CBK	Citibank N.A.	HUS	HSBC Bank USA N.A.	SSB	State Street Bank and Trust Co.
DUB	Deutsche Bank AG	IND	Crédit Agricole Corporate and Investment Bank S.A.	UAG	UBS AG Stamford
FBF	Credit Suisse International	JPM	JP Morgan Chase Bank N.A.
Currency Abbreviations:
ARS	Argentine Peso	EUR	Euro	RUB	Russian Ruble
AUD	Australian Dollar	GBP	British Pound	SGD	Singapore Dollar
BRL	Brazilian Real	JPY	Japanese Yen	TRY	Turkish New Lira
CAD	Canadian Dollar	MXN	Mexican Peso	TWD	Taiwanese Dollar
COP	Colombian Peso	NZD	New Zealand Dollar	USD (or $)	United States Dollar
DKK	Danish Krone	PEN	Peruvian New Sol
Exchange Abbreviations:
OTC	Over the Counter
Index/Spread Abbreviations:
ABX.HE	Asset-Backed Securities Index - Home Equity	CDX.IG	Credit Derivatives Index - Investment Grade	UKRPI	United Kingdom Retail Prices Index
BADLARPP	Argentina Badlar Floating Rate Notes	CMBX	Commercial Mortgage-Backed Index	US0001M	1 Month USD Swap Rate
CDX.HY	Credit Derivatives Index - High Yield	LIBOR03M	3 Month USD-LIBOR	US0003M	3 Month USD Swap Rate
Other Abbreviations:
ABS	Asset-Backed Security	CLO	Collateralized Loan Obligation	Lunar	Monthly payment based on 28-day periods. One year consists of 13 periods.
ALT	Alternate Loan Trust	DAC	Designated Activity Company	PIK	Payment-in-Kind
BTP	Buoni del Tesoro Poliennali	EURIBOR	Euro Interbank Offered Rate	TBA	To-Be-Announced
CDO	Collateralized Debt Obligation	LIBOR	London Interbank Offered Rate	TIIE	Tasa de Interés Interbancaria de Equilibrio “Equilibrium Interbank Interest Rate”

44 PIMCO VARIABLE INSURANCE TRUST

Federal Income Tax Information

(Unaudited)

As required by the Internal Revenue Code (the “Code”) and Treasury Regulations, if applicable, shareholders must be notified regarding the status of qualified dividend income and the dividend received deduction.

Dividend Received Deduction.  Corporate shareholders are generally entitled to take the dividend received deduction on the portion of a Fund’s dividend distribution that qualifies under tax law. The percentage of the following Portfolio’s fiscal 2018 ordinary income dividend that qualifies for the corporate dividend received deduction is set forth in the table below.

Qualified Dividend Income.  Under the Jobs and Growth Tax Relief Reconciliation Act of 2003 (the “Act”), the percentage of ordinary dividends paid during the calendar year designated as “qualified dividend income”, as defined in the Act, subject to reduced tax rates in 2018 is set forth for the Portfolio in the table below.

Qualified Interest Income and Qualified Short-Term Capital Gain (for non-U.S. resident shareholders only).  Under the American Jobs Creation Act of 2004, the amounts of ordinary dividends paid during the fiscal year ended December 31, 2018 considered to be derived from “qualified interest income,” as defined in Section 871(k)(1)(E) of the Code, and therefore designated as interest-related dividends, as defined in Section 871(k)(1)(C) of the Code are set forth in the table below. Further, the amounts of ordinary dividends paid during the fiscal year ended December 31, 2018 considered to be derived from “qualified short-term capital gain,” as defined in Section 871(k)(2)(D) of the Code, and therefore designated as qualified short-term gain dividends, as defined by Section 871(k)(2)(C) of the Code are also set forth in the table below.

	Dividend Received Deduction %		Qualified Dividend Income %		Qualified Interest Income (000s† )		Qualified Short-Term Capital  Gain (000s†)
PIMCO Dynamic Bond Portfolio		0.00%		0.00%	$	8,939	$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

Shareholders are advised to consult their own tax advisor with respect to the tax consequences of their investment in the Trust. In January 2019, you will be advised on IRS Form 1099-DIV as to the federal tax status of the dividends and distributions received by you in calendar year 2018.

ANNUAL REPORT DECEMBER 31, 2018 45

Management of the Trust

The charts below identify the Trustees and executive officers of the Trust. Unless otherwise indicated, the address of all persons below is 650 Newport Center Drive, Newport Beach, CA 92660.

The Portfolio’s Statement of Additional Information includes more information about the Trustees and Officers. To request a free copy, call PIMCO at (888) 87-PIMCO or visit the Portfolio’s website at www.pimco.com/pvit.

Name, Year of Birth and Position Held with Trust*	Term of Office and Length of Time Served†	Principal Occupation(s) During Past 5 Years	Number of Funds in Fund Complex Overseen by Trustee	Other Public Company and Investment Company Directorships Held by Trustee During the Past 5 Years
Interested Trustees1
Peter G. Strelow** (1970) Chairman of the Board and Trustee	05/2017 to present Chairman of the Board - 02/2019 to present	Managing Director and Co-Chief Operating Officer, PIMCO. President of the Trust, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Chief Administrative Officer, PIMCO.	153	Chairman and Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT.
Brent R. Harris** (1959) Trustee	08/1997 to present	Managing Director, PIMCO. Senior Vice President of the Trust, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Formerly, member of Executive Committee, PIMCO.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT; Director, StocksPLUS® Management, Inc; and member of Board of Governors, Investment Company Institute. Formerly, Chairman, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT.
Independent Trustees
George E. Borst (1948) Trustee	04/2015 to present	Executive Advisor, McKinsey & Company (since 10/14); Formerly, Executive Advisor, Toyota Financial Services (10/13-12/14); and CEO, Toyota Financial Services (1/01-9/13).	132	Trustee, PIMCO Funds and PIMCO ETF Trust; Director, MarineMax Inc.
Jennifer Holden Dunbar (1963) Trustee	04/2015 to present	Managing Director, Dunbar Partners, LLC (business consulting and investments). Formerly, Partner, Leonard Green & Partners, L.P.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT; Director, PS Business Parks; Director, Big 5 Sporting Goods Corporation.
Kym M. Hubbard (1957) Trustee	02/2017 to present	Formerly, Global Head of Investments, Chief Investment Officer and Treasurer, Ernst & Young.	132	Trustee, PIMCO Funds and PIMCO ETF Trust; Director, State Auto Financial Corporation.
Gary F. Kennedy (1955) Trustee	04/2015 to present	Formerly, Senior Vice President, General Counsel and Chief Compliance Officer, American Airlines and AMR Corporation (now American Airlines Group) (1/03-1/14).	132	Trustee, PIMCO Funds and PIMCO ETF Trust.
Peter B. McCarthy (1950) Trustee	04/2015 to present	Formerly, Assistant Secretary and Chief Financial Officer, United States Department of Treasury; Deputy Managing Director, Institute of International Finance.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Ronald C. Parker (1951) Lead Independent Trustee	07/2009 to present Lead Independent Trustee - 02/2017 to present	Director of Roseburg Forest Products Company. Formerly, Chairman of the Board, The Ford Family Foundation; and President, Chief Executive Officer, Hampton Affiliates (forestry products).	153	Lead Independent Trustee, PIMCO Funds and PIMCO ETF Trust; Trustee, PIMCO Equity Series and PIMCO Equity Series VIT.

* Unless otherwise noted, the information for the individuals listed is as of December 31, 2018.

** Effective February 13, 2019, Mr. Strelow became the Chairman of the Trust.

¹  Mr. Harris and Mr. Strelow are “interested persons” of the Trust (as that term is defined in the 1940 Act) because of their affiliations with PIMCO.

^†  Trustees serve until their successors are duly elected and qualified.

46 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

Executive Officers

Name, Year of Birth and Position Held with Trust	Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years*
Peter G. Strelow (1970) President	01/2015 to present	Managing Director and Co-Chief Operating Officer, PIMCO. President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Chief Administrative Officer, PIMCO.
Joshua D. Ratner (1976)** Chief Legal Officer	11/2018 to present Vice President - Senior Counsel and Secretary 11/2013 to 11/2018 Assistant Secretary 10/2007 to 01/2011	Executive Vice President and Deputy General Counsel, PIMCO. Chief Legal Officer, PIMCO Investments LLC. Chief Legal Officer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Jennifer E. Durham (1970) Chief Compliance Officer	07/2004 to present	Managing Director and Chief Compliance Officer, PIMCO. Chief Compliance Officer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Brent R. Harris (1959) Senior Vice President	01/2015 to present President 03/2009 to 01/2015	Managing Director, PIMCO. Senior Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Formerly, member of Executive Committee, PIMCO.
Ryan G. Leshaw (1980) Vice President, Senior Counsel and Secretary	11/2018 to present Assistant Secretary 05/2012 to 11/2018	Senior Vice President and Senior Counsel, PIMCO. Vice President, Senior Counsel and Secretary, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Assistant Secretary, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Associate, Willkie Farr & Gallagher LLP.
Wu-Kwan Kit (1981) Assistant Secretary	08/2017 to present	Senior Vice President and Senior Counsel, PIMCO. Assistant Secretary, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Vice President, Senior Counsel and Secretary, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Assistant General Counsel, VanEck Associates Corp.
Stacie D. Anctil (1969) Vice President	05/2015 to present Assistant Treasurer 11/2003 to 05/2015	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
William G. Galipeau (1974) Vice President	11/2013 to present	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Eric D. Johnson (1970) Vice President	05/2011 to present	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Henrik P. Larsen (1970) Vice President	02/1999 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Bijal Y. Parikh (1978) Vice President	02/2017 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Greggory S. Wolf (1970) Vice President	05/2011 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Trent W. Walker (1974) Treasurer	11/2013 to present	Executive Vice President, PIMCO. Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Erik C. Brown (1967)** Assistant Treasurer	02/2001 to present	Executive Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Colleen D. Miller (1980)** Assistant Treasurer	02/2017 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Christopher M. Morin (1980) Assistant Treasurer	08/2016 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Jason J. Nagler (1982)** Assistant Treasurer	05/2015 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.

* The term “PIMCO-Sponsored Closed-End Funds” as used herein includes: PIMCO California Municipal Income Fund, PIMCO California Municipal Income Fund II, PIMCO California Municipal Income Fund III, PIMCO Municipal Income Fund, PIMCO Municipal Income Fund II, PIMCO Municipal Income Fund III, PIMCO New York Municipal Income Fund, PIMCO New York Municipal Income Fund II, PIMCO New York Municipal Income Fund III, PCM Fund Inc., PIMCO Corporate & Income Opportunity Fund, PIMCO Corporate & Income Strategy Fund, PIMCO Dynamic Credit and Mortgage Income Fund, PIMCO Dynamic Income Fund, PIMCO Global StocksPLUS^® & Income Fund, PIMCO High Income Fund, PIMCO Income Opportunity Fund, PIMCO Income Strategy Fund, PIMCO Income Strategy Fund II and PIMCO Strategic Income Fund, Inc.; the term “PIMCO-Sponsored Interval Funds” as used herein includes: PIMCO Flexible Credit Income Fund and PIMCO Flexible Municipal Income Fund.

** The address of these officers is Pacific Investment Management Company LLC, 1633 Broadway, New York, New York 10019.

ANNUAL REPORT DECEMBER 31, 2018 47

Privacy Policy¹

(Unaudited)

The Trust^2,3 considers customer privacy to be a fundamental aspect of its relationships with shareholders and is committed to maintaining the confidentiality, integrity and security of its current, prospective and former shareholders’ non-public personal information. The Trust has developed policies that are designed to protect this confidentiality, while allowing shareholder needs to be served.

OBTAINING PERSONAL INFORMATION

In the course of providing shareholders with products and services, the Trust and certain service providers to the Trust, such as the Trust’s investment advisers or sub-advisers (“Advisers”), may obtain non-public personal information about shareholders, which may come from sources such as account applications and other forms, from other written, electronic or verbal correspondence, from shareholder transactions, from a shareholder’s brokerage or financial advisory firm, financial advisor or consultant, and/or from information captured on applicable websites.

RESPECTING YOUR PRIVACY

As a matter of policy, the Trust does not disclose any non-public personal information provided by shareholders or gathered by the Trust to non-affiliated third parties, except as required or permitted by law or as necessary for such third parties to perform their agreements with respect to the Trust. As is common in the industry, non-affiliated companies may from time to time be used to provide certain services, such as preparing and mailing prospectuses, reports, account statements and other information, conducting research on shareholder satisfaction and gathering shareholder proxies. The Trust or its affiliates may also retain non-affiliated companies to market the Trust’s shares or products which use the Trust’s shares and enter into joint marketing arrangements with them and other companies. These companies may have access to a shareholder’s personal and account information, but are permitted to use this information solely to provide the specific service or as otherwise permitted by law. In most cases, the shareholders will be clients of a third party, but the Trust may also provide a shareholder’s personal and account information to the shareholder’s respective brokerage or financial advisory firm and/or financial advisor or consultant.

SHARING INFORMATION WITH THIRD PARTIES

The Trust reserves the right to disclose or report personal or account information to non-affiliated third parties in limited circumstances where the Trust believes in good faith that disclosure is required under law, to cooperate with regulators or law enforcement authorities, to protect its rights or property, or upon reasonable request by any fund advised by PIMCO in which a shareholder has invested. In addition, the Trust may disclose information about a shareholder or a shareholder’s accounts to a non-affiliated third party at the shareholder’s request or with the consent of the shareholder.

SHARING INFORMATION WITH AFFILIATES

The Trust may share shareholder information with its affiliates in connection with servicing shareholders’ accounts, and subject to applicable law may provide shareholders with information about products and services that the Trust or its Advisers, distributors or their affiliates (“Service Affiliates”) believe may be of interest to such shareholders. The information that the Trust may share may include,

for example, a shareholder’s participation in the Trust or in other investment programs sponsored by a Service Affiliate, a shareholder’s ownership of certain types of accounts (such as IRAs), information about the Trust’s experiences or transactions with a shareholder, information captured on applicable websites, or other data about a shareholder’s accounts, subject to applicable law. The Trust’s Service Affiliates, in turn, are not permitted to share shareholder information with non-affiliated entities, except as required or permitted by law.

PROCEDURES TO SAFEGUARD PRIVATE INFORMATION

The Trust takes seriously the obligation to safeguard shareholder non-public personal information. In addition to this policy, the Trust has implemented procedures that are designed to restrict access to a shareholder’s non-public personal information to internal personnel who need to know that information to perform their jobs, such as servicing shareholder accounts or notifying shareholders of new products or services. Physical, electronic and procedural safeguards are in place to guard a shareholder’s non-public personal information.

INFORMATION COLLECTED FROM WEBSITES

Websites maintained by the Trust or its service providers may use a variety of technologies to collect information that help the Trust and its service providers understand how the website is used. Information collected from your web browser (including small files stored on your device that are commonly referred to as “cookies”) allow the websites to recognize your web browser and help to personalize and improve your user experience and enhance navigation of the website. In addition, the Trust or its Service Affiliates may use third parties to place advertisements for the Trust on other websites, including banner advertisements. Such third parties may collect anonymous information through the use of cookies or action tags (such as web beacons). The information these third parties collect is generally limited to technical and web navigation information, such as your IP address, web pages visited and browser type, and does not include personally identifiable information such as name, address, phone number or email address. If you are a registered user of the Trust’s website, the Trust or their service providers or third party firms engaged by the Trust or their service providers may collect or share information submitted by you, which may include personally identifiable information. This information can be useful to the Trust when assessing and offering services and website features. You can change your cookie preferences by changing the setting on your web browser to delete or reject cookies. If you delete or reject cookies, some website pages may not function properly. The Trust does not look for web browser “do not track” requests.

CHANGES TO THE PRIVACY POLICY

From time to time, the Trust may update or revise this privacy policy. If there are changes to the terms of this privacy policy, documents containing the revised policy on the relevant website will be updated.

¹ Amended as of February 15, 2017.

² PIMCO Investments LLC (“PI”) serves as the Trust’s distributor. This Privacy Policy applies to the activities of PI to the extent that PI regularly effects or engages in transactions with or for a Trust shareholder who is the record owner of such shares. For purposes of this Privacy Policy, references to “the Trust” shall include PI when acting in this capacity.

³ When distributing this Policy, the Trust may combine the distribution with any similar distribution of its investment adviser’s privacy policy. The distributed, combined policy may be written in the first person (i.e., by using “we” instead of “the Trust”).

48 PIMCO VARIABLE INSURANCE TRUST

Approval of Investment Advisory Contract and Other Agreements

(Unaudited)

Approval of Renewal of the Amended and Restated Investment Advisory Contract, Supervision and Administration Agreement and Amended and Restated Asset Allocation Sub-Advisory Agreement

At a meeting held on August 20-21, 2018, the Board of Trustees (the “Board”) of PIMCO Variable Insurance Trust (the “Trust”), including the Trustees who are not “interested persons” of the Trust under the Investment Company Act of 1940, as amended (the “Independent Trustees”), considered and unanimously approved the renewal of the Amended and Restated Investment Advisory Contract (the “Investment Advisory Contract”) between the Trust, on behalf of each of the Trust’s series (the “Portfolios”), and Pacific Investment Management Company LLC (“PIMCO”) for an additional one-year term through August 31, 2019. The Board also considered and unanimously approved the renewal of the Supervision and Administration Agreement (together with the Investment Advisory Contract, the “Agreements”) between the Trust, on behalf of the Portfolios, and PIMCO for an additional one-year term through August 31, 2019. In addition, the Board considered and unanimously approved the renewal of the Amended and Restated Asset Allocation Sub-Advisory Agreement (the “Asset Allocation Agreement”) between PIMCO, on behalf of PIMCO All Asset Portfolio and PIMCO All Asset All Authority Portfolio, each a series of the Trust, and Research Affiliates, LLC (“Research Affiliates”) for an additional one-year term through August 31, 2019.

The information, material factors and conclusions that formed the basis for the Board’s approvals are summarized below.

1. INFORMATION RECEIVED

(a) Materials Reviewed:  During the course of the past year, the Trustees received a wide variety of materials relating to the services provided by PIMCO and Research Affiliates to the Trust. At each of its quarterly meetings, the Board reviewed the Portfolios’ investment performance and a significant amount of information relating to Portfolio operations, including shareholder services, valuation and custody, the Portfolios’ compliance program and other information relating to the nature, extent and quality of services provided by PIMCO and Research Affiliates to the Trust and each of the Portfolios, as applicable. In considering whether to approve the renewal of the Agreements and the Asset Allocation Agreement, the Board reviewed additional information, including, but not limited to, comparative industry data with regard to investment performance, advisory and supervisory and administrative fees and expenses, financial information for PIMCO and, where relevant, Research Affiliates, information regarding the profitability to PIMCO of its relationship with the Portfolios, information about the personnel providing investment management services, other advisory services and supervisory and administrative services to the Portfolios, and information about the fees

charged and services provided to other clients with similar investment mandates as the Portfolios, where applicable. In addition, the Board reviewed materials provided by counsel to the Trust and the Independent Trustees, which included, among other things, memoranda outlining legal duties of the Board in considering the renewal of the Agreements and the Asset Allocation Agreement.

(b) Review Process:  In connection with considering the renewal of the Agreements and the Asset Allocation Agreement, the Board reviewed written materials prepared by PIMCO and, where applicable, Research Affiliates in response to requests from counsel to the Trust and the Independent Trustees encompassing a wide variety of topics. The Board requested and received assistance and advice regarding, among other things, applicable legal standards from counsel to the Trust and the Independent Trustees, and reviewed comparative fee and performance data prepared at the Board’s request by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company performance information and fee and expense data. The Board received information on matters related to the Agreements and the Asset Allocation Agreement and met both as a full Board and in a separate session of the Independent Trustees, without management present, at the August 20-21, 2018 meeting. The Independent Trustees also conducted in-person meetings with counsel to the Trust and the Independent Trustees, including one on July 18, 2018, to discuss the Lipper Report, as defined below, and certain aspects of the 2018 15(c) materials presented and other matters deemed relevant to their consideration of the renewal of the Agreements and the Asset Allocation Agreement. In connection with its review of the Agreements, the Board received comparative information on the performance and the fees and expenses of other peer group funds and share classes. In addition, the Independent Trustees requested and received supplemental information.

The approval determinations were made on the basis of each Trustee’s business judgment after consideration and evaluation of all the information presented. Individual Trustees may have given different weights to certain factors and assigned various degrees of materiality to information received in connection with the approval process. In deciding to approve the renewal of the Agreements and the Asset Allocation Agreement, the Board did not identify any single factor or particular information that, in isolation, was controlling. The discussion below is intended to summarize the broad factors and information that figured prominently in the Board’s consideration of the renewal of the Agreements and the Asset Allocation Agreement, but is not intended to summarize all of the factors considered by the Board.

2. NATURE, EXTENT AND QUALITY OF SERVICES

(a) PIMCO, Research Affiliates, their Personnel, and Resources:  The Board considered the depth and quality of PIMCO’s investment management process, including: the experience, capability and integrity

ANNUAL REPORT DECEMBER 31, 2018 49

Approval of Investment Advisory Contract and Other Agreements (Cont.)

of its senior management and other personnel; the overall financial strength and stability of its organization; and the ability of its organizational structure to address changes in the Portfolios’ asset levels. The Board also considered the various services in addition to portfolio management that PIMCO provides under the Investment Advisory Contract. The Board noted that PIMCO makes available to its investment professionals a variety of resources and systems relating to investment management, compliance, trading, performance and portfolio accounting. The Board also noted PIMCO’s commitment to enhancing and investing in its global infrastructure, technology capabilities, risk management processes and the specialized talent needed to stay at the forefront of the competitive investment management industry and to strengthen its ability to deliver services under the Agreements. The Board considered PIMCO’s policies, procedures and systems reasonably designed to assure compliance with applicable laws and regulations and its commitment to further developing and strengthening these programs, its oversight of matters that may involve conflicts of interest between the Portfolios’ investments and those of other accounts managed by PIMCO, and its efforts to keep the Trustees informed about matters relevant to the Portfolios and their shareholders. The Board also considered PIMCO’s continuous investment in new disciplines and talented personnel, which has enhanced PIMCO’s services to the Portfolios and has allowed PIMCO to introduce innovative new portfolios over time. In addition, the Board considered the nature and quality of services provided by PIMCO to the wholly-owned subsidiaries of certain applicable Portfolios.

The Trustees considered that PIMCO has continued to strengthen the process it uses to actively manage counterparty risk and to assess the financial stability of counterparties with which the Portfolios do business, to manage collateral and to protect Portfolios from an unforeseen deterioration in the creditworthiness of trading counterparties. The Trustees noted that, consistent with its fiduciary duty, PIMCO executes transactions through a competitive best execution process and uses only those counterparties that meet its stringent and monitored criteria. The Trustees considered that PIMCO’s collateral management team utilizes a counterparty risk system to analyze portfolio level exposure and collateral being exchanged with counterparties.

In addition, the Trustees considered new services and service enhancements that PIMCO has implemented since the Board renewed the Agreements in 2017, including, but not limited to upgrading the global network and infrastructure to support trading and risk management systems; enhancing and continuing to expand capabilities within the pre-trade compliance platform; enhancing flexible client reporting capabilities to support increased differentiation within local markets; developing new application and database frameworks to support new trading strategies; expanding proprietary applications

suites to enrich capabilities across Compliance, Analytics, Risk Management, Client Reporting, Attribution and Customer Relationship management; continuing investment in its enterprise risk management function, including PIMCO’s cybersecurity program and global business continuity functions; oversight by the Americas Fund Oversight Committee, which provides senior-level oversight and supervision focused on new and ongoing fund-related business opportunities; engaging a third party service provider to implement the SEC reporting modernization regime; expanding the Fund Treasurer’s Office; enhancing a proprietary application to provide portfolio managers with more timely and high quality income reporting; developing a global tax management application that will enable investment professionals to access foreign market and security tax information on a real-time basis; enhancing reporting of tax reporting for portfolio managers for income products with improved transparency on tax factors impacting income generation and dividend yield; upgrading a proprietary application to allow shareholder subscription and redemption data to pass to portfolio managers more quickly and efficiently; and continuing to expand the pricing portal and the proprietary performance reconciliation tool.

Similarly, the Board considered the asset allocation services provided by Research Affiliates to the PIMCO All Asset Portfolio and PIMCO All Asset All Authority Portfolio. The Board further considered PIMCO’s oversight of Research Affiliates in connection with Research Affiliates providing asset allocation services to the Asset Portfolio and All Asset All Authority Portfolio. The Board also considered the depth and quality of Research Affiliates’ investment management and research capabilities, the experience and capabilities of its portfolio management personnel and the overall financial strength of the organization.

Ultimately, the Board concluded that the nature, extent and quality of services provided or procured by PIMCO under the Agreements and provided by Research Affiliates under the Asset Allocation Agreement are likely to continue to benefit the Portfolios and their respective shareholders, as applicable.

(b) Other Services:  The Board also considered the nature, extent and quality of supervisory and administrative services provided by PIMCO to the Portfolios under the Supervision and Administration Agreement.

The Board considered the terms of the Supervision and Administration Agreement, under which the Trust pays for the supervisory and administrative services provided pursuant to that agreement under what is essentially an all-in fee structure (the “unified fee”). In return, PIMCO provides or procures certain supervisory and administrative services and bears the costs of various third party services required by the Portfolios, including audit, custodial, portfolio accounting, legal, transfer agency, sub-accounting and printing costs. The Board noted that the scope and complexity, as well as the costs, of the supervisory

50 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

and administrative services provided by PIMCO under the Supervision and Administration Agreement continue to increase. The Board considered PIMCO’s provision of supervisory and administrative services and its supervision of the Trust’s third party service providers to assure that these service providers continue to provide a high level of service relative to alternatives available in the market.

Ultimately, the Board concluded that the nature, extent and quality of the services provided by PIMCO has benefited, and will likely continue to benefit, the Portfolios and their shareholders.

3. INVESTMENT PERFORMANCE

The Board reviewed information from PIMCO concerning the Portfolios’ performance, as available, over short- and long-term periods ended March 31, 2018 and other performance data, as available, over short- and long-term periods ended June 30, 2018 (the “PIMCO Report”) and from Broadridge concerning the Portfolios’ performance, as available, over short- and long-term periods ended March 31, 2018 (the “Lipper Report”).

The Board considered information regarding both the short- and long-term investment performance of each Portfolio relative to its peer group and relevant benchmark index as provided to the Board in advance of each of its quarterly meetings throughout the year, including the PIMCO Report and Lipper Report, which were provided in advance of the August 20-21, 2018 meeting. The Trustees noted that many of the Portfolios outperformed their respective Lipper medians on a net-of-fees basis over the three-, five- and ten-year periods ended March 31, 2018. The Board also noted that, as of March 31, 2018, the Administrative Class of 72%, 35% and 73% of the Portfolios outperformed their respective Lipper category median on a net-of-fees basis over the three-, five- and ten-year periods, respectively. The Trustees considered that other classes of each Portfolio would have substantially similar performance to that of the Administrative Class of the relevant Portfolio on a relative basis because all of the classes are invested in the same portfolio of investments and that differences in performance among classes could principally be attributed to differences in the supervisory and administrative fees and distribution and servicing expenses of each class. The Board also considered that the investment objectives of certain of the Portfolios may not always be identical to those of the other funds in their respective peer groups and that the Lipper categories do not: separate funds based upon maturity or duration; account for the applicable Portfolios’ hedging strategies; distinguish between enhanced index and actively managed equity strategies; include as many subsets as the Portfolios offer (i.e., Portfolios may be placed in a “catch-all” Lipper category to which they do not properly belong); or account for certain fee waivers. The Board noted that, due to these differences, performance comparisons between certain of the Portfolios and their so-called peers may not be

particularly relevant to the consideration of Portfolio performance but found the comparative information supported its overall evaluation.

The Board noted that performance for a majority of the Portfolios has been mixed compared to their respective benchmark indexes over the five-year period ended March 31, 2018. The Board noted that, as of March 31, 2018, 70%, 23% and 92% of the Trust’s assets (based on Administrative Class performance) outperformed their respective benchmarks on a net-of-fees basis over the three-, five- and ten-year periods, respectively. The Board also discussed actions that have been taken by PIMCO to attempt to improve performance and took note of PIMCO’s plans to monitor performance going forward.

The Board considered PIMCO’s discussion of the intensive nature of managing bond funds, noting that it requires the management of a number of factors, including: varying maturities; prepayments; collateral management; counterparty management; pay-downs; credit and corporate events; workouts; derivatives; net new issuance in the bond market; and decreased market maker inventory levels. The Board noted that in addition to managing these factors, PIMCO must also balance risk controls and strategic positions in each portfolio it manages, including the Portfolios. Despite these challenges, the Board noted PIMCO’s ability to generate non-market correlated excess performance for its clients over time, including the Trust.

The Board ultimately concluded, within the context of all of its considerations in connection with the Agreements, that PIMCO’s performance record and process in managing the Portfolios indicates that its continued management is likely to benefit the Portfolios and their shareholders, and merits the approval of the renewal of the Agreements.

4. ADVISORY FEES, SUPERVISORY AND ADMINISTRATIVE FEES AND TOTAL EXPENSES

The Board considered that PIMCO seeks to price new funds and classes to scale. PIMCO reported to the Board that, in proposing fees for any Portfolio or class of shares, it considers a number of factors, including, but not limited to, the type and complexity of the services provided, the cost of providing services, the risk assumed by PIMCO in the development of products and the provision of services and the competitive marketplace for financial products. Fees charged to or proposed for different Portfolios for advisory services and supervisory and administrative services may vary in light of these various factors. The Board considered that portfolio pricing generally is not driven by comparison to passively-managed products.

In addition, PIMCO reported to the Board that it periodically reviews the fees charged to the Portfolios. The Board noted that, based upon this review, PIMCO may propose advisory fee or supervisory and administrative fee changes where (i) a Portfolio’s long-term performance warrants additional consideration; (ii) there is a notable aid to market

ANNUAL REPORT DECEMBER 31, 2018 51

Approval of Investment Advisory Contract and Other Agreements (Cont.)

position; (iii) a Portfolio’s fee does not reflect the current level of supervision or administrative fees provided to the Portfolio; or (iv) PIMCO would like to change a Portfolio’s overall strategic positioning.

The Board reviewed the advisory fees, supervisory and administrative fees and total expenses of the Portfolios (each as a percentage of average net assets) and compared such amounts with the average and median fee and expense levels of other similar funds. The Board also reviewed information relating to the sub-advisory fees paid to Research Affiliates with respect to applicable Portfolios, taking into account that PIMCO compensates Research Affiliates from the advisory fees paid by such Portfolios to PIMCO. With respect to advisory fees, the Board reviewed data from Broadridge that compared the average and median advisory fees of other funds in a “Peer Group” of comparable funds, as well as the universe of other similar funds. The Board noted that a number of Portfolios have total expense ratios that fall below the average and median expense ratios in their Peer Group and Lipper universe. In addition, the Board considered fee waivers in place for certain of the Portfolios and also noted the fee waivers in place with respect to the advisory fee and supervisory and administrative fee that might result from investments by applicable Portfolios in their respective wholly-owned subsidiaries. The Board also considered that PIMCO reviews the Portfolios’ fee levels and carefully considers changes where appropriate.

The Board also reviewed data comparing the Portfolios’ advisory fees to the standard and negotiated fee rates PIMCO charges to separate accounts, collective investment trusts and sub-advised clients with similar investment strategies. In cases where the fees for other clients were lower than those charged to the Portfolios, the Trustees noted that the differences in fees were attributable to various factors, including, but not limited to, differences in the advisory and other services provided by PIMCO to the Portfolios, differences in the number or extent of the services provided by PIMCO to the Portfolios, the manner in which similar portfolios may be managed, different requirements with respect to liquidity management and the implementation of other regulatory requirements, and the fact that separate accounts may have other contractual arrangements or arrangements across PIMCO strategies that justify different levels of fees. The Board considered that, with respect to collective investment trusts, PIMCO performs fewer or less extensive services because collective investment trusts are generally exempt from SEC regulation; investors in a collective investment trust may receive shareholder services from a trustee bank, rather than PIMCO; collective investment trusts have less regulatory disclosure; and the management structure of collective investment trusts differs from that of funds. The Trustees also considered that PIMCO faces increased entrepreneurial, legal and regulatory risk in sponsoring and managing mutual funds and ETFs as compared to separate accounts, external sub-advised funds or other investment products.

Regarding advisory fees charged by PIMCO in its capacity as sub-adviser to third party/unaffiliated funds, the Trustees took into account that such fees may be lower than the fees charged by PIMCO to serve as adviser to the Portfolios. The Trustees also took into account that there are various reasons for any such differences in fees, including, but not limited to, the fact that PIMCO may be subject to varying levels of entrepreneurial risk and regulatory requirements, differing legal liabilities on a contract-by-contract basis and different servicing requirements when PIMCO does not serve as the sponsor of a fund and is not principally responsible for all aspects of a fund’s investment program and operations as compared to when PIMCO serves as investment adviser and sponsor.

The Board considered the Portfolios’ supervisory and administrative fees, comparing them to similar funds in the report supplied by Broadridge. The Board also considered that as the Portfolios’ business has become increasingly complex and the number of Portfolios has grown over time, PIMCO has provided an increasingly broad array of fund supervisory and administrative functions. In addition, the Board considered the Trust’s unified fee structure, under which the Trust pays for the supervisory and administrative services it requires for one set fee. In return for this unified fee, PIMCO provides or procures supervisory and administrative services and bears the costs of various third party services required by the Portfolios, including audit, custodial, portfolio accounting, legal, transfer agency, sub-accounting and printing costs. The Board further considered that many other funds pay for comparable services separately, and thus it is difficult to directly compare the Trust’s unified supervisory and administrative fees with the fees paid by other funds for administrative services alone. The Board also considered that the unified supervisory and administrative fee leads to Portfolio fees that are fixed over the contract period, rather than variable. The Board noted that, although the unified fee structure does not have breakpoints, it implicitly reflects economies of scale by fixing the absolute level of Portfolio fees at competitive levels over the contract period even if the Portfolios’ operating costs rise when assets remain flat or decrease. Other factors the Board considered in assessing the unified fee include PIMCO’s approach of pricing Portfolios to scale at inception and reinvesting in other important areas of the business that support the Portfolios. The Board considered that the Portfolios’ unified fee structure meant that fees were not impacted by recent outflows in certain Portfolios, unlike funds without a unified fee structure, which may see increased expense ratios when fixed costs, such as service provider costs, are passed through to a smaller asset base. The Board considered historical advisory and supervisory and administrative fee reductions implemented for different Portfolios and classes, noting that the unified fee can be increased or decreased in subsequent contractual periods and is subject to the periodic reviews discussed above. The Board noted that, with few exceptions, PIMCO

52 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

has generally maintained Portfolio fees at the same level as implemented when the unified fee was adopted, and has reduced fees for a number of Portfolios in prior years. The Board concluded that the Portfolios’ supervisory and administrative fees were reasonable in relation to the value of the services provided, including the services provided to different classes of shareholders, and that the expenses assumed contractually by PIMCO under the Supervision and Administration Agreement represent, in effect, a cap on overall Portfolio fees during the contractual period, which is beneficial to the Portfolios and their shareholders.

The Board considered the Portfolios’ total expenses and discussed with PIMCO those Portfolios and/or classes of Portfolios that had above median total expenses. The Board noted that many of the Portfolios are unique products that have few peers, if any, and cannot easily be grouped with comparable funds. Upon comparing the Portfolios’ total expenses to other funds in the “Peer Groups” provided by Broadridge, the Board found total expenses of each Portfolio to be reasonable.

The Trustees also considered the advisory fees charged to the Portfolios that operate as funds of funds (the “Funds of Funds”) and the advisory services provided in exchange for such fees. The Trustees determined that such services were in addition to the advisory services provided to the underlying funds in which the Funds of Funds may invest and, therefore, such services were not duplicative of the advisory services provided to the underlying funds. The Board also considered the various fee waiver agreements in place for the Funds of Funds. The Board noted that PIMCO is continuing waivers for these Funds of Funds, as well as for certain other Portfolios of the Trust.

Based on the information presented by PIMCO, Research Affiliates and Broadridge, members of the Board determined, in the exercise of their business judgment, that the level of the advisory fees and supervisory and administrative fees charged by PIMCO under the Agreements, as well as the total expenses of each Portfolio, after the proposals to decrease the management fee, are reasonable.

5. ADVISER COSTS, LEVEL OF PROFITS AND ECONOMIES OF SCALE

The Board reviewed information regarding PIMCO’s costs of providing services to the Funds as a whole, as well as the resulting level of profits to PIMCO under both the adjusted asset profitability method and the profit and loss profitability method, which were each utilized to calculate profitability. To the extent applicable, the Board also reviewed information regarding the portion of a Portfolio’s advisory fee retained by PIMCO, following the payment of sub-advisory fees to Research Affiliates, with respect to the Portfolio. Additionally, the Board noted that profit margins with respect to the Trust shows that the Trust is profitable, although less so than PIMCO Funds due to payments made

by PIMCO to participating insurance companies. The Board further noted PIMCO’s engagement of a third party to review and to make recommendations regarding PIMCO’s processes supporting its profitability estimation materials. The Board also noted that it had received information regarding the structure and manner in which PIMCO’s investment professionals were compensated, and PIMCO’s view of the relationship of such compensation to the attraction and retention of quality personnel. The Board considered PIMCO’s need to invest in global infrastructure, technology capabilities, risk management processes and qualified personnel to reinforce and offer new services and to accommodate changing regulatory requirements.

With respect to potential economies of scale, the Board noted that PIMCO shares the benefits of economies of scale with the Portfolios and their shareholders in a number of ways, including investing in portfolio and trade operations management, firm technology, middle and back office support, legal and compliance, and fund administration logistics, senior management supervision, governance and oversight of those services, and through fee reductions or waivers, the pricing of Portfolios to scale from inception, and the enhancement of services provided to the Portfolios in return for fees paid. The Board reviewed the history of the Portfolios’ fee structure. The Board considered that the Portfolios’ unified fee rates had been set competitively and/or priced to scale from inception, had been held steady during the contractual period at that scaled competitive rate for most Portfolios as assets grew, or as assets declined in the case of some Portfolios, and continued to be competitive compared with peers. The Board also considered that the unified fee is a transparent means of informing a Portfolio’s shareholders of the fees associated with the Portfolio, and that the Portfolio bears certain expenses that are not covered by the advisory fee or the unified fee. The Board further considered the challenges that arise when managing large funds, which can result in certain “diseconomies” of scale and noted that PIMCO has continued to reinvest in many areas of the business to support the Portfolios.

The Trustees considered that the unified fee has provided inherent economies of scale because a Portfolio maintains competitive fixed fees over the annual contract period even if the particular Portfolio’s assets decline and/or operating costs rise. The Trustees further considered that, in contrast, breakpoints may be a proxy for charging higher fees on lower asset levels and that when a fund’s assets decline, breakpoints may reverse, which causes expense ratios to increase. The Trustees also considered that, unlike the Portfolios’ unified fee structure, funds with “pass through” administrative fee structures may experience increased expense ratios when fixed dollar fees are charged against declining fund assets. The Trustees also considered that the unified fee protects shareholders from a rise in operating costs that may result from, among other things, PIMCO’s investments in various business enhancements and infrastructure, including those referenced above. The Trustees noted that PIMCO’s investments in these areas are extensive.

ANNUAL REPORT DECEMBER 31, 2018 53

Approval of Investment Advisory Contract and Other Agreements (Cont.)

(Unaudited)

The Board concluded that the Portfolios’ cost structures were reasonable and that PIMCO is appropriately sharing economies of scale, if any, through the Portfolios’ unified fee structure, generally pricing Portfolios to scale at inception and reinvesting in its business to provide enhanced and expanded services to the Portfolios and their shareholders.

6. ANCILLARY BENEFITS

The Board considered other benefits realized by PIMCO and its affiliates as a result of PIMCO’s relationship with the Trust. Such benefits may include possible ancillary benefits to PIMCO’s institutional investment management business due to the reputation and market penetration of the Trust or third party service providers’ relationship-level fee concessions, which decrease fees paid by PIMCO. The Board also considered that affiliates of PIMCO provide distribution and/or shareholder services to the Portfolios and their shareholders, for which they may be compensated through distribution and servicing fees paid pursuant to the Portfolios’ Rule 12b-1 plans or otherwise. The Board reviewed PIMCO’s soft dollar policies and procedures, noting that while PIMCO has the authority to receive the benefit of research provided by broker-dealers executing portfolio transactions on behalf of the Portfolios, it has adopted a policy not to enter into contractual soft dollar arrangements.

7. CONCLUSIONS

Based on their review, including their comprehensive consideration and evaluation of each of the broad factors and information summarized above, the Independent Trustees and the Board as a whole concluded that the nature, extent and quality of the services rendered to the Portfolios by PIMCO and Research Affiliates supported the renewal of the Agreements and the Asset Allocation Agreement. The Independent Trustees and the Board as a whole concluded that the Agreements and the Asset Allocation Agreement continued to be fair and reasonable to the Portfolios and their shareholders, that the Portfolios’ shareholders received reasonable value in return for the fees paid to PIMCO by the Portfolios under the Agreements and the fees paid to Research Affiliates by PIMCO under the Asset Allocation Agreement, and that the renewal of the Agreements and the Asset Allocation Agreement was in the best interests of the Portfolios and their shareholders.

54 PIMCO VARIABLE INSURANCE TRUST

General Information

Investment Adviser and Administrator

Pacific Investment Management Company LLC

650 Newport Center Drive

Newport Beach, CA 92660

Distributor

PIMCO Investments LLC

1633 Broadway

New York, NY 10019

Custodian

State Street Bank and Trust Company

801 Pennsylvania Avenue

Kansas City, MO 64105

Transfer Agent

DST Asset Manager Solutions, Inc.

430 W 7th Street STE 219024

Kansas City, MO 64105-1407

Legal Counsel

Dechert LLP

1900 K Street, N.W.

Washington, D.C. 20006

Independent Registered Public Accounting Firm

PricewaterhouseCoopers LLP

1100 Walnut Street, Suite 1300

Kansas City, MO 64106

This report is submitted for the general information of the shareholders of the Portfolio listed on the Report cover.

pimco.com/pvit

PVIT19AR_123118

PIMCO VARIABLE INSURANCE TRUST

Annual Report

December 31, 2018

PIMCO Emerging Markets Bond Portfolio

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, you may not be receiving paper copies of the Portfolio’s shareholder reports from the insurance company that offers your contract unless you specifically request paper copies from the insurance company or from your financial intermediary. Instead, the shareholder reports will be made available on a website, and the insurance company will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the insurance company electronically by following the instructions provided by the insurance company.

You may elect to receive all future reports in paper free of charge from the insurance company. You should contact the insurance company if you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all portfolio companies available under your contract at the insurance company.

Table of Contents

	Page
Chairman’s Letter		2
Important Information About the PIMCO Emerging Markets Bond Portfolio		4
Portfolio Summary		6
Expense Example		7
Financial Highlights		8
Statement of Assets and Liabilities		10
Statement of Operations		11
Statements of Changes in Net Assets		12
Schedule of Investments		13
Notes to Financial Statements		26
Report of Independent Registered Public Accounting Firm		44
Glossary		45
Federal Income Tax Information		46
Management of the Trust		47
Privacy Policy		49
Approval of Investment Advisory Contract and Other Agreements		50

This material is authorized for use only when preceded or accompanied by the current PIMCO Variable Insurance Trust (the “Trust”) prospectus for the Portfolio. (The variable product prospectus may be obtained by contacting your Investment Consultant.)

Chairman’s Letter

Dear PIMCO Variable Insurance Trust Shareholder,

Following this letter is the PIMCO Variable Insurance Trust Annual Report, which covers the 12-month reporting period ended December 31, 2018. On the subsequent pages you will find specific details regarding investment results and discussion of the factors that most affected performance during the reporting period.

For the 12-month reporting period ended December 31, 2018

The U.S. economy continued to expand during the reporting period. Looking back, U.S. gross domestic product (“GDP”) grew at an annual pace of 2.2% during the first quarter of 2018. During the second quarter of 2018, GDP growth rose to an annual pace of 4.2%, the strongest since the third quarter of 2014. GDP then expanded at an annual pace of 3.4% during the third quarter of the year. Finally, the Commerce Department’s initial reading for fourth-quarter 2018 GDP has been delayed due to the partial government shutdown.

The Federal Reserve (the “Fed”) continued to normalize monetary policy during the reporting period. During its meetings that concluded in March, June, September and December 2018, the Fed raised the federal funds rate in 0.25% increments. The Fed’s December rate hike pushed the federal funds rate to a range between 2.25% and 2.50%. In addition, the Fed continued to reduce its balance sheet during the reporting period.

Economic activity outside the U.S. initially accelerated during the reporting period, but moderated as it progressed. Against this backdrop, the European Central Bank (the “ECB”) and the Bank of Japan largely maintained their highly accommodative monetary policies, while other central banks took a more hawkish stance. The Bank of England raised rates at its meeting in August 2018 and the Bank of Canada raised rates twice during the reporting period. Meanwhile, the ECB ended its quantitative easing program in December 2018, but indicated that it does not expect to raise interest rates “at least through the summer of 2019.”

The U.S. Treasury yield curve flattened during the reporting period as short-term rates moved up more than longer-term rates. In our view, the increase in rates at the short end of the yield curve was mostly due to Fed interest rate increases. The yield on the benchmark 10-year U.S. Treasury note was 2.69% at the end of the reporting period, up from 2.40% on December 31, 2017. U.S. Treasuries, as measured by the Bloomberg Barclays U.S. Treasury Index, returned 0.86% over the 12 months ended December 31, 2018. Meanwhile, the Bloomberg Barclays U.S. Aggregate Bond Index, a widely used index of U.S. investment grade bonds, returned 0.01% over the period. Riskier fixed income asset classes, including high yield corporate bonds and emerging market debt, generated weak results versus the broad U.S. market. The ICE BofAML U.S. High Yield Index returned -2.27% over the reporting period, whereas emerging market external debt, as represented by the JPMorgan Emerging Markets Bond Index (EMBI) Global, returned -4.61% over the reporting period. Emerging market local bonds, as represented by the JPMorgan Government Bond Index-Emerging Markets Global Diversified Index (Unhedged), returned -6.21% over the period.

Global equities produced poor results during the reporting period. U.S. equities moved sharply higher over the first nine months of the period. We believe this rally was driven by a number of factors, including corporate profits that often exceeded expectations. However, U.S. equities fell sharply during the fourth quarter of 2018. We believe this was triggered by a number of factors, including signs of moderating global growth, concerns over future Fed rate hikes, the ongoing trade dispute between the U.S. and China and the partial U.S. government shutdown. All told, U.S. equities, as represented by the S&P 500 Index, returned -4.38% during the reporting period. Elsewhere, emerging market equities, as measured by the MSCI Emerging Markets Index, returned -14.58% during the reporting period, whereas global equities, as represented by the MSCI World Index, returned -8.71%. Elsewhere, Japanese equities, as represented by the Nikkei 225 Index (in JPY), returned -10.39% during the reporting period and European equities, as represented by the MSCI Europe Index (in EUR), returned -10.57%.

Commodity prices fluctuated and generally declined during the reporting period. When the reporting period began, West Texas crude oil was approximately $65 a barrel, but by the end it was roughly $45 a barrel. This was driven in

2 PIMCO VARIABLE INSURANCE TRUST

part by increased supply and declining global demand. Elsewhere, gold and copper prices also moved lower during the reporting period.

Finally, during the reporting period the foreign exchange markets experienced periods of volatility, due in part to signs of decoupling economic growth and central bank policies, along with a number of geopolitical events. The U.S. dollar produced mixed results against other major currencies during the reporting period. For example, the U.S. dollar appreciated 4.71% and 5.90% versus the euro and the British pound, respectively, whereas the U.S. dollar depreciated 2.66% versus the yen during the reporting period.

Thank you for the assets you have placed with us. We deeply value your trust, and we will continue to work diligently to meet your broad investment needs.

Sincerely,   Brent R. Harris Chairman of the Board,
PIMCO Variable Insurance Trust

Past performance is no guarantee of future results. Unless otherwise noted, index returns reflect the reinvestment of income distributions and capital gains, if any, but do not reflect fees, brokerage commissions or other expenses of investing. It is not possible to invest directly in an unmanaged index.

ANNUAL REPORT DECEMBER 31, 2018 3

Important Information About the PIMCO Emerging Markets Bond Portfolio

PIMCO Variable Insurance Trust (the “Trust”) is an open-end management investment company that includes the PIMCO Emerging Markets Bond Portfolio (the “Portfolio”). The Portfolio is only available as a funding vehicle under variable life insurance policies or variable annuity contracts issued by insurance companies (“Variable Contracts”). Individuals may not purchase shares of the Portfolio directly. Shares of the Portfolio also may be sold to qualified pension and retirement plans outside of the separate account context.

We believe that bond funds have an important role to play in a well-diversified investment portfolio. It is important to note, however, that in an environment where interest rates may trend upward, rising rates would negatively impact the performance of most bond funds, and fixed income securities and other instruments held by the Portfolio are likely to decrease in value. A wide variety of factors can cause interest rates to rise (e.g., central bank monetary policies, inflation rates, general economic conditions, etc.). In addition, changes in interest rates can be sudden and unpredictable, and there is no guarantee that management will anticipate such movement accurately. The Portfolio may lose money as a result of movements in interest rates.

As of the date of this report, interest rates in the U.S. and many parts of the world, including certain European countries, are at or near historically low levels. Thus, the Portfolio currently faces a heightened level of interest rate risk, especially since the Fed has ended its quantitative easing program and has begun, and may continue, to raise interest rates. To the extent the Fed continues to raise interest rates, there is a risk that rates across the financial system may rise. Further, while bond markets have steadily grown over the past three decades, dealer inventories of corporate bonds are near historic lows in relation to market size. As a result, there has been a significant reduction in the ability of dealers to “make markets.”

Bond funds and individual bonds with a longer duration (a measure used to determine the sensitivity of a security’s price to changes in interest rates) tend to be more sensitive to changes in interest rates, usually making them more volatile than securities or funds with shorter durations. All of the factors mentioned above, individually or collectively, could lead to increased volatility and/or lower liquidity in the fixed income markets or negatively impact the Portfolio’s performance or cause the Portfolio to incur losses. As a result, the Portfolio may experience increased shareholder redemptions, which, among other things, could further reduce the net assets of the Portfolio.

The Portfolio may be subject to various risks as described in the Portfolio’s prospectus and in the Principal Risks in the Notes to Financial Statements.

The geographical classification of foreign (non-U.S.) securities in this report are classified by the country of incorporation of a holding. In certain instances, a security’s country of incorporation may be different from its country of economic exposure.

The United States presidential administration’s enforcement of tariffs on goods from other countries, with a focus on China, has contributed to international trade tensions and may impact portfolio securities.

The United Kingdom’s decision to leave the European Union may impact Portfolio returns. This decision may cause substantial volatility in foreign exchange markets, lead to weakness in the exchange rate of the British pound, result in a sustained period of market uncertainty, and destabilize some or all of the other European Union member countries and/or the Eurozone.

The Portfolio may invest significantly in securities that are economically tied to Argentina and thus subject to various risks, such as political, economic, legal, market, and currency risks. Currently, investments in Argentina are particularly subject to effects from the country’s high inflation, economic instability, and political unrest.

On the Portfolio Summary page in this Shareholder Report, the Average Annual Total Return table and Cumulative Returns chart measure performance assuming that any dividend and capital gain distributions were reinvested. The Cumulative Returns chart reflects only Administrative Class performance. Performance may vary by share class based on each class’s expense ratios. The Portfolio measures its performance against at least one broad-based securities market index (“benchmark index”). The benchmark index does not take into account fees, expenses, or taxes. The Portfolio’s past performance, before and after taxes, is not necessarily an indication of how the Portfolio will perform in the future. There is no assurance that the Portfolio, even if the Portfolio has experienced high or unusual performance for one or more periods, will experience similar levels of performance in the future. High performance is defined as a significant increase in either 1) the Portfolio’s total return in excess of that of the Portfolio’s benchmark between reporting periods or 2) the Portfolio’s total return in excess of the Portfolio’s historical returns between reporting periods. Unusual performance is defined as a significant change in the Portfolio’s performance as compared to one or more previous reporting periods.

The following table discloses the inception dates of the Portfolio and its respective share classes along with the Portfolio’s diversification status as of period end:

Portfolio Name

Portfolio Inception

Institutional Class

Class M

Administrative Class

Advisor Class

Diversification Status

PIMCO Emerging Markets Bond Portfolio

09/30/02

04/30/12

11/10/14

09/30/02

03/31/06

Diversified

4 PIMCO VARIABLE INSURANCE TRUST

An investment in the Portfolio is not a bank deposit and is not guaranteed or insured by the Federal Deposit Insurance Corporation (“FDIC”) or any other government agency. It is possible to lose money on investments in the Portfolio.

The Trustees are responsible generally for overseeing the management of the Trust. The Trustees authorize the Trust to enter into service agreements with the Adviser, the Distributor, the Administrator and other service providers in order to provide, and in some cases authorize service providers to procure through other parties, necessary or desirable services on behalf of the Trust and the Portfolio. Shareholders are not parties to or third-party beneficiaries of such service agreements. Neither this Portfolio’s prospectus nor summary prospectus, the Trust’s Statement of Additional Information (“SAI”), any contracts filed as exhibits to the Trust’s registration statement, nor any other communications, disclosure documents or regulatory filings (including this report) from or on behalf of the Trust or the Portfolio creates a contract between or among any shareholder of the Portfolio, on the one hand, and the Trust, the Portfolio, a service provider to the Trust or the Portfolio, and/or the Trustees or officers of the Trust, on the other hand. The Trustees (or the Trust and its officers, service providers or other delegates acting under authority of the Trustees) may amend the most recent prospectus or use a new prospectus, summary prospectus or SAI with respect to the Portfolio or the Trust, and/or amend, file and/or issue any other communications, disclosure documents or regulatory filings, and may amend or enter into any contracts to which the Trust or the Portfolio is a party, and interpret the investment objective(s), policies, restrictions and contractual provisions applicable to the Portfolio, without shareholder input or approval, except in circumstances in which shareholder approval is specifically required by law (such as changes to fundamental investment policies) or where a shareholder approval requirement is specifically disclosed in the Trust’s then-current prospectus or SAI.

PIMCO has adopted written proxy voting policies and procedures (“Proxy Policy”) as required by Rule 206(4)-6 under the Investment Advisers Act of 1940, as amended. The Proxy Policy has been adopted by the Trust as the policies and procedures that PIMCO will use when voting proxies on behalf of the Portfolio. A description of the policies and procedures that PIMCO uses to vote proxies relating to portfolio securities of the Portfolio, and information about how the Portfolio voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, are available without charge, upon request, by calling the Trust at (888) 87-PIMCO, on the Portfolio’s website at www.pimco.com/pvit, and on the Securities and Exchange Commission’s (“SEC”) website at www.sec.gov.

The Trust files a complete schedule of the Portfolio’s holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. A copy of the Portfolio’s Form N-Q is available on the SEC’s website at www.sec.gov. A copy of the Portfolio’s Form N-Q is also available without charge, upon request, by calling the Trust at (888) 87-PIMCO and on the Portfolio’s website at www.pimco.com/pvit.

The SEC adopted a rule that, beginning in 2021, generally will allow shareholder reports to be delivered to investors by providing access to such reports online free of charge and by mailing a notice that the report is electronically available. Pursuant to the rule, investors may still elect to receive a complete shareholder report in the mail. Instructions for electing to receive paper copies of the Portfolio’s shareholder reports going forward may be found on the front cover of this report.

The SEC adopted amendments to certain disclosure requirements relating to open-end investment companies’ liquidity risk management programs. Effective December 1, 2019, large fund complexes will be required to include in their shareholder reports a discussion of their liquidity risk management programs’ operations over the past year.

ANNUAL REPORT DECEMBER 31, 2018 5

PIMCO Emerging Markets Bond Portfolio

Cumulative Returns Through December 31, 2018

$10,000 invested at the end of the month when the Portfolio’s Administrative Class commenced operations.

Geographic Breakdown as of 12/31/2018^†§

Indonesia	9.7%
Mexico	7.6%
Brazil	6.4%
Argentina	6.4%
Turkey	6.1%
Luxembourg	5.2%
United States‡	4.6%
South Africa	3.4%
Ukraine	2.6%
Dominican Republic	2.5%
Colombia	2.4%
Cayman Islands	2.2%
Chile	2.2%
China	2.1%
Panama	1.8%
Nigeria	1.7%
Venezuela	1.6%
Hong Kong	1.6%
Azerbaijan	1.6%
Oman	1.5%
Egypt	1.5%
Ireland	1.4%
Sri Lanka	1.4%
Uruguay	1.3%
Saudi Arabia	1.3%
Kazakhstan	1.3%
Russia	1.3%
Poland	1.2%
Israel	1.0%
Other	14.1%

^†   % of Investments, at value.

^§  Geographic Breakdown and % of investments exclude securities sold short, financial derivative instruments and short-term instruments, if any.

^‡  Includes Central Funds Used for Cash Management Purposes.

Average Annual Total Return for the period ended December 31, 2018
		1 Year		5 Years		10 Years		Inception≈
	PIMCO Emerging Markets Bond Portfolio Institutional Class		(4.59)%		3.46%		—		2.95%
	PIMCO Emerging Markets Bond Portfolio Class M		(5.02)%		—		—		2.24%
	PIMCO Emerging Markets Bond Portfolio Administrative Class		(4.73)%		3.31%		7.22%		8.53%
	PIMCO Emerging Markets Bond Portfolio Advisor Class		(4.83)%		3.21%		7.12%		5.34%
	JPMorgan Emerging Markets Bond Index (EMBI) Global±		(4.61)%		4.18%		7.79%		8.65%	¨

All Portfolio returns are net of fees and expenses.

^≈ For class inception dates please refer to the Important Information.

^¨ Average annual total return since 09/30/2002.

^± JPMorgan Emerging Markets Bond Index (EMBI) Global tracks total returns for United States Dollar denominated debt instruments issued by emerging market sovereign and quasi-sovereign entities: Brady bonds, loans, and Eurobonds.

It is not possible to invest directly in an unmanaged index.

Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. The Portfolio’s performance does not reflect the deduction of additional charges and expenses imposed in connection with investing in Variable Contracts, which will reduce returns. Differences in the Portfolio’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the prices of individual positions (which may be sourced from different pricing vendors or other sources) used by the Portfolio and the index. For performance current to the most recent month-end, visit www.pimco.com/pvit or via (888) 87-PIMCO.

The Portfolio’s total annual operating expense ratio in effect as of period end were 0.85% for Institutional Class shares, 1.30% for Class M shares, 1.00% for Administrative Class shares, and 1.10% for Advisor Class shares. Details regarding any changes to the Portfolio’s operating expenses, subsequent to period end, can be found in the Portfolio’s current prospectus, as supplemented.

Investment Objective and Strategy Overview

PIMCO Emerging Markets Bond Portfolio seeks maximum total return, consistent with preservation of capital and prudent investment management, by investing under normal circumstances at least 80% of its assets in Fixed Income Instruments that are economically tied to emerging market countries, which may be represented by forwards or derivatives such as options, futures contracts or swap agreements. “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, and may be denominated in non-U.S. currencies and the U.S. dollar. Portfolio strategies may change from time to time. Please refer to the Portfolio’s current prospectus for more information regarding the Portfolio’s strategy.

Portfolio Insights

The following affected performance during the reporting period:

» Overweight exposure to Brazilian external quasi-sovereign and corporate debt contributed to performance.

» Underweight exposure to Lebanese external sovereign debt contributed to performance.

» Selection within Venezuelan external sovereign and quasi-sovereign debt detracted from performance.

» Overweight exposure to Argentine external sovereign debt detracted from performance.

6 PIMCO VARIABLE INSURANCE TRUST

Expense Example PIMCO Emerging Markets Bond Portfolio

Example

As a shareholder of the Portfolio, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees (if applicable), and other Portfolio expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in the Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds.

The Expense Example does not reflect any fees or other expenses imposed by the Variable Contracts. If it did, the expenses reflected in the Expense Example would be higher. The Example is based on an investment of $1,000 invested at the beginning of the period and held from July 1, 2018 to December 31, 2018 unless noted otherwise in the table and footnotes below.

Actual Expenses

The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60), then multiply the result by the number in the appropriate row for your share class, in the column titled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other portfolios. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other portfolios.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information under the heading “Hypothetical (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different portfolios. In addition, if these transactional costs were included, your costs would have been higher.

Expense ratios may vary period to period because of various factors, such as an increase in expenses that are not covered by the management fees such as fees and expenses of the independent trustees and their counsel, extraordinary expenses and interest expense.

	Actual						Hypothetical (5% return before expenses)
	Beginning Account Value (07/01/18)		Ending Account Value (12/31/18)		Expenses Paid During Period*		Beginning Account Value (07/01/18)		Ending Account Value (12/31/18)		Expenses Paid During Period*		Net Annualized Expense Ratio**
Institutional Class	$	1,000.00	$	1,002.80	$	4.34	$	1,000.00	$	1,020.87	$	4.38		0.86	%
Class M		1,000.00		1,000.50		6.61		1,000.00		1,018.60		6.67		1.31
Administrative Class		1,000.00		1,002.00		5.10		1,000.00		1,020.11		5.14		1.01
Advisor Class		1,000.00		1,001.50		5.60		1,000.00		1,019.61		5.65		1.11

* Expenses Paid During Period are equal to the net annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Overall fees and expenses of investing in the Portfolio will be higher because the example does not reflect variable contract fees and expenses.

** Net Annualized Expense Ratio is reflective of any applicable contractual fee waivers and/or expense reimbursements or voluntary fee waivers. Details regarding fee waivers, if any, can be found in Note 9, Fees and Expenses, in the Notes to Financial Statements.

ANNUAL REPORT DECEMBER 31, 2018 7

Financial Highlights PIMCO Emerging Markets Bond Portfolio

			Investment Operations								Less Distributions(b)
Selected Per Share Data for the Year or Period Ended^:	Net Asset Value Beginning of Year or Period		Net Investment Income (Loss)(a)		Net Realized/ Unrealized Gain (Loss)			Total			From Net Investment Income			From Net Realized Capital Gain			Total
Institutional Class
12/31/2018	$	13.14	$	0.51	$	(1.11	)	$	(0.60	)	$	(0.53	)	$	0.00		$	(0.53	)
12/31/2017		12.58		0.65		0.59			1.24			(0.68	)		0.00			(0.68	)
12/31/2016		11.70		0.67		0.88			1.55			(0.67	)		0.00			(0.67	)
12/31/2015		12.69		0.65		(0.90	)		(0.25	)		(0.68	)		(0.06	)		(0.74	)
12/31/2014		13.44		0.68		(0.43	)		0.25			(0.74	)		(0.26	)		(1.00	)
Class M
12/31/2018		13.14		0.45		(1.10	)		(0.65	)		(0.48	)		0.00			(0.48	)
12/31/2017		12.58		0.60		0.58			1.18			(0.62	)		0.00			(0.62	)
12/31/2016		11.70		0.61		0.89			1.50			(0.62	)		0.00			(0.62	)
12/31/2015		12.69		0.60		(0.90	)		(0.30	)		(0.63	)		(0.06	)		(0.69	)
11/10/2014 - 12/31/2014		13.63		0.09		(0.67	)		(0.58	)		(0.10	)		(0.26	)		(0.36	)
Administrative Class
12/31/2018		13.14		0.48		(1.10	)		(0.62	)		(0.51	)		0.00			(0.51	)
12/31/2017		12.58		0.64		0.58			1.22			(0.66	)		0.00			(0.66	)
12/31/2016		11.70		0.64		0.90			1.54			(0.66	)		0.00			(0.66	)
12/31/2015		12.69		0.63		(0.90	)		(0.27	)		(0.66	)		(0.06	)		(0.72	)
12/31/2014		13.44		0.66		(0.43	)		0.23			(0.72	)		(0.26	)		(0.98	)
Advisor Class
12/31/2018		13.14		0.47		(1.10	)		(0.63	)		(0.50	)		0.00			(0.50	)
12/31/2017		12.58		0.62		0.59			1.21			(0.65	)		0.00			(0.65	)
12/31/2016		11.70		0.64		0.88			1.52			(0.64	)		0.00			(0.64	)
12/31/2015		12.69		0.62		(0.90	)		(0.28	)		(0.65	)		(0.06	)		(0.71	)
12/31/2014		13.44		0.65		(0.43	)		0.22			(0.71	)		(0.26	)		(0.97	)

^ A zero balance may reflect actual amounts rounding to less than $0.01 or 0.01%.

* Annualized

^(a)  Per share amounts based on average number of shares outstanding during the year or period.

^(b)  The tax characterization of distributions is determined in accordance with Federal income tax regulations. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

8 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

					Ratios/Supplemental Data
							Ratios to Average Net Assets
Net Asset Value End of Year or Period		Total Return			Net Assets End of Year or Period (000s)		Expenses			Expenses Excluding Waivers			Expenses Excluding Interest Expense			Expenses Excluding Interest Expense and Waivers			Net Investment Income (Loss)			Portfolio Turnover Rate
$	12.01		(4.59	)%	$	41,154		0.86	%		0.86	%		0.85	%		0.85	%		4.08	%		29	%
	13.14		10.03			34,246		0.85			0.85			0.85			0.85			5.03			35
	12.58		13.48			21,191		0.85			0.85			0.85			0.85			5.37			33
	11.70		(2.09	)		13,852		0.85			0.85			0.85			0.85			5.23			29
	12.69		1.66			6,252		0.85			0.85			0.85			0.85			5.02			29
	12.01		(5.02	)		889		1.31			1.31			1.30			1.30			3.59			29
	13.14		9.55			993		1.30			1.30			1.30			1.30			4.60			35
	12.58		12.97			729		1.30			1.30			1.30			1.30			4.92			33
	11.70		(2.53	)		475		1.30			1.30			1.30			1.30			4.84			29
	12.69		(4.32	)		27		1.30	*		1.30	*		1.30	*		1.30	*		4.92	*		29
	12.01		(4.73	)		167,673		1.01			1.01			1.00			1.00			3.86			29
	13.14		9.87			210,102		1.00			1.00			1.00			1.00			4.90			35
	12.58		13.31			217,567		1.00			1.00			1.00			1.00			5.19			33
	11.70		(2.24	)		216,156		1.00			1.00			1.00			1.00			5.02			29
	12.69		1.51			238,653		1.00			1.00			1.00			1.00			4.83			29
	12.01		(4.83	)		45,060		1.11			1.11			1.10			1.10			3.77			29
	13.14		9.76			51,954		1.10			1.10			1.10			1.10			4.79			35
	12.58		13.20			45,559		1.10			1.10			1.10			1.10			5.12			33
	11.70		(2.34	)		32,407		1.10			1.10			1.10			1.10			4.91			29
	12.69		1.41			38,685		1.10			1.10			1.10			1.10			4.73			29

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 9

Statement of Assets and Liabilities PIMCO Emerging Markets Bond Portfolio

(Amounts in thousands†, except per share amounts)	December 31, 2018
Assets:
Investments, at value
Investments in securities*	$	249,538
Investments in Affiliates		1,359
Financial Derivative Instruments
Exchange-traded or centrally cleared		79
Over the counter		389
Deposits with counterparty		2,257
Foreign currency, at value		226
Receivable for investments sold		1,419
Receivable for Portfolio shares sold		2
Interest and/or dividends receivable		4,128
Dividends receivable from Affiliates		7
Total Assets		259,404
Liabilities:
Borrowings & Other Financing Transactions
Payable for reverse repurchase agreements	$	625
Financial Derivative Instruments
Exchange-traded or centrally cleared		3
Over the counter		596
Payable for investments purchased		2,511
Payable for investments in Affiliates purchased		7
Deposits from counterparty		280
Payable for Portfolio shares redeemed		390
Accrued investment advisory fees		95
Accrued supervisory and administrative fees		84
Accrued distribution fees		9
Accrued servicing fees		21
Other liabilities		7
Total Liabilities		4,628
Net Assets	$	254,776
Net Assets Consist of:
Paid in capital	$	278,679
Distributable earnings (accumulated loss)		(23,903	)
Net Assets	$	254,776
Net Assets:
Institutional Class	$	41,154
Class M		889
Administrative Class		167,673
Advisor Class		45,060
Shares Issued and Outstanding:
Institutional Class		3,426
Class M		74
Administrative Class		13,957
Advisor Class		3,751
Net Asset Value Per Share Outstanding:
Institutional Class	$	12.01
Class M		12.01
Administrative Class		12.01
Advisor Class		12.01
Cost of investments in securities	$	273,290
Cost of investments in Affiliates	$	1,359
Cost of foreign currency held	$	228
Cost or premiums of financial derivative instruments, net	$	(2,056	)
* Includes repurchase agreements of:	$	864
†  A zero balance may reflect actual amounts rounding to less than one thousand.

10 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

Statement of Operations PIMCO Emerging Markets Bond Portfolio

(Amounts in thousands†)	Year Ended December 31, 2018
Investment Income:
Interest, net of foreign taxes*	$	13,352
Dividends from Investments in Affiliates		248
Total Income		13,600
Expenses:
Investment advisory fees		1,254
Supervisory and administrative fees		1,114
Distribution and/or servicing fees - Class M		5
Servicing fees - Administrative Class		284
Distribution and/or servicing fees - Advisor Class		123
Trustee fees		8
Interest expense		15
Total Expenses		2,803
Net Investment Income (Loss)		10,797
Net Realized Gain (Loss):
Investments in securities		(45	)
Exchange-traded or centrally cleared financial derivative instruments		(501	)
Over the counter financial derivative instruments		2,238
Foreign currency		(58	)
Net Realized Gain (Loss)		1,634
Net Change in Unrealized Appreciation (Depreciation):
Investments in securities		(25,299	)
Investments in Affiliates		(2	)
Exchange-traded or centrally cleared financial derivative instruments		224
Over the counter financial derivative instruments		(1,624	)
Foreign currency assets and liabilities		2
Net Change in Unrealized Appreciation (Depreciation)		(26,699	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	(14,268	)
* Foreign tax withholdings	$	8

^†   A zero balance may reflect actual amounts rounding to less than one thousand.

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 11

Statements of Changes in Net Assets PIMCO Emerging Markets Bond Portfolio

(Amounts in thousands†)	Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets from:
Operations:
Net investment income (loss)	$	10,797		$	14,615
Net realized gain (loss)		1,634			152
Net change in unrealized appreciation (depreciation)		(26,699	)		13,258
Net Increase (Decrease) in Net Assets Resulting from Operations		(14,268	)		28,025
Distributions to Shareholders:
From net investment income and/or net realized capital gains*
Institutional Class		(1,674	)		(1,449	)
Class M		(37	)		(45	)
Administrative Class		(7,815	)		(11,278	)
Advisor Class		(1,985	)		(2,432	)
Total Distributions(a)		(11,511	)		(15,204	)
Portfolio Share Transactions:
Net increase (decrease) resulting from Portfolio share transactions**		(16,740	)		(572	)
Total Increase (Decrease) in Net Assets		(42,519	)		12,249
Net Assets:
Beginning of year		297,295			285,046
End of year	$	254,776		$	297,295

^†   A zero balance may reflect actual amounts rounding to less than one thousand.

* See Note 2, New Accounting Pronouncements, in the Notes to Financial Statements for more information.

** See Note 13, Shares of Beneficial Interest, in the Notes to Financial Statements.

^(a)  The tax characterization of distributions is determined in accordance with Federal income tax regulations. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

12 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

Schedule of Investments PIMCO Emerging Markets Bond Portfolio

December 31, 2018

(Amounts in thousands*, except number of shares, contracts and units, if any)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
INVESTMENTS IN SECURITIES 98.0%
ALBANIA 0.3%
SOVEREIGN ISSUES 0.3%
Albania Government International Bond
3.500% due 10/09/2025	EUR		700	$		799
Total Albania (Cost $806)						799
ANGOLA 0.4%
SOVEREIGN ISSUES 0.4%
Angolan Government International Bond
8.250% due 05/09/2028	$		400			378
9.375% due 05/08/2048			700			657
Total Angola (Cost $1,119)						1,035
ARGENTINA 6.3%
SOVEREIGN ISSUES 6.3%
Argentina Government International Bond
2.260% due 12/31/2038 Ø	EUR		1,600			1,023
2.500% due 12/31/2038 Ø	$		4,700			2,593
3.375% due 01/15/2023	EUR		1,300			1,182
4.625% due 01/11/2023	$		1,100			872
5.250% due 01/15/2028	EUR		400			330
5.625% due 01/26/2022	$		2,500			2,119
5.875% due 01/11/2028			1,100			795
6.875% due 04/22/2021			500			454
6.875% due 01/26/2027			2,700			2,067
6.875% due 01/11/2048			2,050			1,438
7.125% due 07/06/2036			900			649
7.125% due 06/28/2117			300			216
7.625% due 04/22/2046			50			36
7.820% due 12/31/2033	EUR		688			669
8.280% due 12/31/2033	$		841			660
Provincia de Buenos Aires
9.950% due 06/09/2021			300			283
10.875% due 01/26/2021			200			198
Provincia de Cordoba
7.125% due 06/10/2021			150			133
Provincia de la Rioja
9.750% due 02/24/2025			200			156
Provincia de Neuquen
7.500% due 04/27/2025			160			128
Total Argentina (Cost $20,088)						16,001
AZERBAIJAN 1.6%
CORPORATE BONDS & NOTES 1.5%
Southern Gas Corridor CJSC
6.875% due 03/24/2026	$		3,500			3,792
SOVEREIGN ISSUES 0.1%
Azerbaijan Government International Bond
4.750% due 03/18/2024			200			200
Total Azerbaijan (Cost $3,936)						3,992
BAHAMAS 0.4%
SOVEREIGN ISSUES 0.4%
Bahamas Government International Bond
6.000% due 11/21/2028	$		1,050			1,074
Total Bahamas (Cost $1,050)						1,074
BRAZIL 6.3%
CORPORATE BONDS & NOTES 3.7%
B3 S.A. - Brasil Bolsa Balcao
5.500% due 07/16/2020	$		500			511
Banco do Nordeste do Brasil S.A.
4.375% due 05/03/2019			450			450

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Brazil Minas SPE via State of Minas Gerais
5.333% due 02/15/2028	$		4,100	$		4,080
Centrais Eletricas Brasileiras S.A.
5.750% due 10/27/2021			500			505
6.875% due 07/30/2019			1,500			1,524
Odebrecht Oil & Gas Finance Ltd.
0.000% due 01/30/2019 (e)(f)			111			2
0.000% due 01/31/2019 (e)(f)			512			9
Petrobras Global Finance BV
6.850% due 06/05/2115			600			538
7.250% due 03/17/2044			500			494
7.375% due 01/17/2027			1,400			1,441
						9,554
LOAN PARTICIPATIONS AND ASSIGNMENTS 0.6%
State of Rio de Janeiro
6.024% (LIBOR03M + 3.250%) due 12/20/2020 «~			1,600			1,545
SOVEREIGN ISSUES 2.0%
Banco Nacional de Desenvolvimento Economico e Social
6.500% due 06/10/2019			830			844
Brazil Government International Bond
5.000% due 01/27/2045			1,910			1,674
5.625% due 01/07/2041			50			48
Brazil Letras do Tesouro Nacional
0.000% due 04/01/2019 (e)	BRL		1,170			298
Brazil Notas do Tesouro Nacional
10.000% due 01/01/2021			8,000			2,159
						5,023
Total Brazil (Cost $17,068)						16,122
CAYMAN ISLANDS 2.2%
CORPORATE BONDS & NOTES 2.2%
China Evergrande Group
8.750% due 06/28/2025	$		300			254
Country Garden Holdings Co. Ltd.
5.125% due 01/17/2025			300			252
Interoceanica Finance Ltd.
0.000% due 11/30/2025 (e)			325			276
0.000% due 05/15/2030 (e)			800			577
KSA Sukuk Ltd.
4.303% due 01/19/2029			600			598
Lima Metro Line Finance Ltd.
5.875% due 07/05/2034			400			399
Odebrecht Drilling Norbe Ltd.
6.350% due 12/01/2021			186			180
Odebrecht Drilling Norbe Ltd. (6.350% Cash or 7.350% PIK)
7.350% due 12/01/2026 (a)			395			225
Odebrecht Offshore Drilling Finance Ltd.
6.720% due 12/01/2022			1,882			1,757
Sands China Ltd.
5.125% due 08/08/2025			300			298
5.400% due 08/08/2028			700			678
Total Cayman Islands (Cost $5,833)						5,494
CHILE 2.1%
CORPORATE BONDS & NOTES 2.1%
Corp. Nacional del Cobre de Chile
4.250% due 07/17/2042	$		400			373
4.500% due 09/16/2025			1,300			1,320
4.875% due 11/04/2044			600			610
Empresa Nacional de Telecomunicaciones S.A.
4.875% due 10/30/2024			700			683
GNL Quintero S.A.
4.634% due 07/31/2029			800			775

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Itau CorpBanca
3.875% due 09/22/2019	$		600	$		603
Latam Airlines Pass-Through Trust
4.200% due 08/15/2029			841			814
4.500% due 08/15/2025			214			206
Total Chile (Cost $5,407)						5,384
CHINA 2.1%
CORPORATE BONDS & NOTES 2.1%
CCCI Treasure Ltd.
3.500% due 04/21/2020 •(f)	$		800			787
Industrial & Commercial Bank of China Ltd.
3.538% due 11/08/2027			250			239
Sinopec Group Overseas Development Ltd.
3.250% due 09/13/2027			2,000			1,864
4.375% due 04/10/2024			700			716
4.875% due 05/17/2042			500			529
Three Gorges Finance Cayman Islands Ltd.
3.150% due 06/02/2026			1,000			946
3.700% due 06/10/2025			300			296
Total China (Cost $5,532)						5,377
COLOMBIA 2.4%
CORPORATE BONDS & NOTES 0.5%
Ecopetrol S.A.
5.875% due 09/18/2023	$		600			627
5.875% due 05/28/2045			400			379
7.375% due 09/18/2043			200			221
						1,227
SOVEREIGN ISSUES 1.9%
Colombia Government International Bond
2.625% due 03/15/2023			2,600			2,446
3.875% due 04/25/2027			500			478
5.000% due 06/15/2045			1,300			1,241
8.125% due 05/21/2024			300			351
10.375% due 01/28/2033			225			335
						4,851
Total Colombia (Cost $5,971)						6,078
COSTA RICA 0.3%
SOVEREIGN ISSUES 0.3%
Costa Rica Government International Bond
4.250% due 01/26/2023	$		400			353
5.625% due 04/30/2043			400			306
Total Costa Rica (Cost $800)						659
DOMINICAN REPUBLIC 2.4%
SOVEREIGN ISSUES 2.4%
Dominican Republic International Bond
5.500% due 01/27/2025	$		700			695
5.950% due 01/25/2027			2,100			2,100
6.000% due 07/19/2028			2,000			2,002
6.500% due 02/15/2048			500			474
6.850% due 01/27/2045			400			395
6.875% due 01/29/2026			500			526
Total Dominican Republic (Cost $6,321)						6,192
ECUADOR 0.6%
SOVEREIGN ISSUES 0.6%
Ecuador Government International Bond
7.875% due 01/23/2028	$		1,400			1,143
7.950% due 06/20/2024			200			177
9.625% due 06/02/2027			200			182
Total Ecuador (Cost $1,796)						1,502

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 13

Schedule of Investments PIMCO Emerging Markets Bond Portfolio (Cont.)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
EGYPT 1.4%
SOVEREIGN ISSUES 1.4%
Egypt Government International Bond
5.577% due 02/21/2023	$		1,000	$		950
6.125% due 01/31/2022			1,100			1,082
7.500% due 01/31/2027			400			383
7.903% due 02/21/2048			200			173
8.500% due 01/31/2047			1,200			1,087
Total Egypt (Cost $3,995)						3,675
EL SALVADOR 0.4%
SOVEREIGN ISSUES 0.4%
El Salvador Government International Bond
5.875% due 01/30/2025	$		900			833
7.650% due 06/15/2035			145			138
Total El Salvador (Cost $1,066)						971
GABON 0.1%
SOVEREIGN ISSUES 0.1%
Gabon Government International Bond
6.375% due 12/12/2024	$		202			182
Total Gabon (Cost $197)						182
GHANA 0.6%
SOVEREIGN ISSUES 0.6%
Ghana Government International Bond
7.875% due 08/07/2023	$		1,500			1,473
Total Ghana (Cost $1,590)						1,473
GUATEMALA 0.8%
SOVEREIGN ISSUES 0.8%
Guatemala Government International Bond
4.375% due 06/05/2027	$		300			278
4.875% due 02/13/2028			410			390
5.750% due 06/06/2022			1,260			1,310
Total Guatemala (Cost $1,985)						1,978
HONG KONG 1.6%
CORPORATE BONDS & NOTES 1.6%
CNOOC Finance Australia Pty. Ltd.
2.625% due 05/05/2020	$		600			595
CNOOC Nexen Finance ULC
4.250% due 04/30/2024			2,200			2,234
CNPC General Capital Ltd.
2.750% due 05/14/2019			500			500
Nexen Energy ULC
6.400% due 05/15/2037			50			61
7.500% due 07/30/2039			450			624
Total Hong Kong (Cost $3,957)						4,014
HUNGARY 0.2%
SOVEREIGN ISSUES 0.2%
Hungary Government International Bond
5.375% due 02/21/2023	$		100			106
MFB Magyar Fejlesztesi Bank Zrt
6.250% due 10/21/2020			500			521
Total Hungary (Cost $599)						627
INDIA 0.6%
SOVEREIGN ISSUES 0.6%
Export-Import Bank of India
3.375% due 08/05/2026	$		700			641

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
3.875% due 02/01/2028	$		700	$		658
Total India (Cost $1,398)						1,299
INDONESIA 9.5%
CORPORATE BONDS & NOTES 3.6%
Indonesia Asahan Aluminium Persero PT
5.230% due 11/15/2021	$		400			406
5.710% due 11/15/2023			400			408
6.530% due 11/15/2028			400			421
Pelabuhan Indonesia Persero PT
4.500% due 05/02/2023			800			786
4.875% due 10/01/2024			500			492
Pelabuhan Indonesia PT
4.250% due 05/05/2025			400			378
Pertamina Persero PT
4.300% due 05/20/2023			1,200			1,185
4.875% due 05/03/2022			500			507
5.250% due 05/23/2021			800			821
6.000% due 05/03/2042			1,500			1,500
6.450% due 05/30/2044			2,100			2,200
Perusahaan Listrik Negara PT
4.125% due 05/15/2027			200			185
						9,289
SOVEREIGN ISSUES 5.9%
Indonesia Government International Bond
2.625% due 06/14/2023	EUR		700			835
3.375% due 04/15/2023	$		2,000			1,939
3.375% due 07/30/2025	EUR		100			122
4.350% due 01/11/2048 (i)	$		700			641
4.450% due 02/11/2024			1,100			1,109
4.750% due 01/08/2026			3,400			3,452
4.750% due 02/11/2029			1,200			1,221
5.125% due 01/15/2045			200			198
5.250% due 01/17/2042			400			403
5.250% due 01/08/2047			600			604
6.625% due 02/17/2037			900			1,045
6.750% due 01/15/2044			1,700			2,026
7.750% due 01/17/2038			100			129
Perusahaan Penerbit SBSN Indonesia
3.400% due 03/29/2022			600			587
4.400% due 03/01/2028			700			684
						14,995
Total Indonesia (Cost $24,161)						24,284
IRELAND 1.4%
CORPORATE BONDS & NOTES 1.4%
GE Capital European Funding Unlimited Co.
0.000% (EUR003M + 0.225%) due 05/17/2021 ~	EUR		100			109
GE Capital UK Funding Unlimited Co.
4.125% due 09/13/2023	GBP		100			130
Vnesheconombank Via VEB Finance PLC
5.942% due 11/21/2023	$		3,100			3,103
6.025% due 07/05/2022			200			201
Total Ireland (Cost $3,630)						3,543
ISRAEL 1.0%
SOVEREIGN ISSUES 1.0%
Israel Government International Bond
3.250% due 01/17/2028	$		1,000			982
4.125% due 01/17/2048			700			687
4.500% due 01/30/2043			800			829
Total Israel (Cost $2,477)						2,498
IVORY COAST 0.8%
SOVEREIGN ISSUES 0.8%
Ivory Coast Government International Bond
5.125% due 06/15/2025	EUR		400			440
5.250% due 03/22/2030			1,000			1,013

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
6.125% due 06/15/2033	$		300	$		250
6.375% due 03/03/2028			300			271
Total Ivory Coast (Cost $2,236)						1,974
JORDAN 0.5%
SOVEREIGN ISSUES 0.5%
Jordan Government International Bond
5.750% due 01/31/2027	$		1,000			921
6.125% due 01/29/2026			300			288
Total Jordan (Cost $1,301)						1,209
KAZAKHSTAN 1.2%
CORPORATE BONDS & NOTES 1.0%
Kazakhstan Temir Zholy National Co. JSC
4.850% due 11/17/2027	$		400			387
KazMunayGas National Co. JSC
4.750% due 04/24/2025			1,700			1,690
4.750% due 04/19/2027			400			390
5.750% due 04/19/2047			200			191
						2,658
SOVEREIGN ISSUES 0.2%
Kazakhstan Government International Bond
4.875% due 10/14/2044			600			599
Total Kazakhstan (Cost $3,248)						3,257
KENYA 0.2%
SOVEREIGN ISSUES 0.2%
Kenya Government International Bond
7.250% due 02/28/2028	$		400			359
8.250% due 02/28/2048			300			256
Total Kenya (Cost $700)						615
LUXEMBOURG 5.1%
ASSET-BACKED SECURITIES 0.0%
Sovereign Credit Opportunities S.A.
3.000% due 09/30/2019 «	EUR		64			72
CORPORATE BONDS & NOTES 5.1%
Constellation Oil Services Holding S.A. (9.000% Cash and 0.500% PIK)
9.500% due 11/09/2024 ^(a)(b)	$		704			292
Gazprom Neft OAO Via GPN Capital S.A.
4.375% due 09/19/2022			1,800			1,770
6.000% due 11/27/2023			300			311
Gazprom OAO Via Gaz Capital S.A.
5.999% due 01/23/2021			2,000			2,061
6.510% due 03/07/2022			950			994
9.250% due 04/23/2019			1,000			1,015
Sberbank of Russia Via SB Capital S.A.
5.500% due 02/26/2024 •(g)			2,500			2,507
5.717% due 06/16/2021			200			203
6.125% due 02/07/2022			3,700			3,807
						12,960
Total Luxembourg (Cost $13,222)						13,032
MALAYSIA 0.1%
CORPORATE BONDS & NOTES 0.1%
Petronas Capital Ltd.
4.500% due 03/18/2045	$		200			201
Total Malaysia (Cost $198)						201

14 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

		SHARES			MARKET VALUE (000S)
MEXICO 7.5%
COMMON STOCKS 0.0%
Desarrolladora Homex S.A.B. de C.V. (c)			17,978	$		0
Hipotecaria Su Casita S.A. de C.V. «(c)			5,259			0
Urbi Desarrollos Urbanos S.A.B. de C.V. (c)			1,907			0
						0
		PRINCIPAL AMOUNT (000S)
CORPORATE BONDS & NOTES 4.9%
America Movil S.A.B. de C.V.
6.450% due 12/05/2022	MXN		6,000			271
BBVA Bancomer S.A.
6.750% due 09/30/2022	$		500			528
Comision Federal de Electricidad
4.750% due 02/23/2027			400			378
4.875% due 01/15/2024			800			783
6.125% due 06/16/2045			600			580
Petroleos Mexicanos
5.500% due 06/27/2044			100			76
6.350% due 02/12/2048			1,611			1,291
6.375% due 01/23/2045			300			242
6.500% due 06/02/2041			8,120			6,744
6.625% due 06/15/2038			700			602
6.750% due 09/21/2047			600			498
6.875% due 08/04/2026			500			487
						12,480
SOVEREIGN ISSUES 2.6%
Mexico Government International Bond
4.000% due 03/15/2115	EUR		1,000			1,007
4.600% due 01/23/2046	$		1,108			985
4.600% due 02/10/2048			600			534
4.750% due 03/08/2044			350			319
5.550% due 01/21/2045			2,520			2,556
5.750% due 10/12/2110			700			661
6.050% due 01/11/2040			548			582
						6,644
Total Mexico (Cost $23,135)						19,124
MONGOLIA 0.5%
SOVEREIGN ISSUES 0.5%
Mongolia Government International Bond
5.125% due 12/05/2022	$		530			500
5.625% due 05/01/2023			700			665
Total Mongolia (Cost $1,228)						1,165
NAMIBIA 0.1%
SOVEREIGN ISSUES 0.1%
Namibia Government International Bond
5.250% due 10/29/2025	$		300			270
Total Namibia (Cost $298)						270
NETHERLANDS 0.8%
CORPORATE BONDS & NOTES 0.8%
CIMPOR Financial Operations BV
5.750% due 07/17/2024	$		600			500
Kazakhstan Temir Zholy Finance BV
6.950% due 07/10/2042			700			735
Metinvest BV
7.750% due 04/23/2023			800			731
Total Netherlands (Cost $2,151)						1,966

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
NIGERIA 1.7%
SOVEREIGN ISSUES 1.7%
Nigeria Government International Bond
6.375% due 07/12/2023	$		200	$		193
6.500% due 11/28/2027			1,200			1,064
7.143% due 02/23/2030			1,000			888
7.625% due 11/28/2047			600			507
7.696% due 02/23/2038			400			350
7.875% due 02/16/2032			1,500			1,366
Total Nigeria (Cost $4,905)						4,368
OMAN 1.5%
CORPORATE BONDS & NOTES 0.2%
Oman Sovereign Sukuk SAOC
5.932% due 10/31/2025	$		400			382
SOVEREIGN ISSUES 1.3%
Oman Government International Bond
5.375% due 03/08/2027			1,300			1,141
5.625% due 01/17/2028			2,400			2,122
6.500% due 03/08/2047			200			162
						3,425
Total Oman (Cost $4,249)						3,807
PAKISTAN 0.3%
CORPORATE BONDS & NOTES 0.2%
Third Pakistan International Sukuk Co. Ltd.
5.500% due 10/13/2021	$		200			193
5.625% due 12/05/2022			200			190
						383
SOVEREIGN ISSUES 0.1%
Pakistan Government International Bond
6.875% due 12/05/2027			400			364
Total Pakistan (Cost $780)						747
PANAMA 1.8%
CORPORATE BONDS & NOTES 0.3%
Aeropuerto Internacional de Tocumen S.A.
6.000% due 11/18/2048	$		700			697
SOVEREIGN ISSUES 1.5%
Panama Government International Bond
4.300% due 04/29/2053			1,100			1,025
4.500% due 05/15/2047			700			683
9.375% due 04/01/2029			1,553			2,174
						3,882
Total Panama (Cost $4,287)						4,579
PARAGUAY 0.3%
SOVEREIGN ISSUES 0.3%
Paraguay Government International Bond
4.700% due 03/27/2027	$		300			298
6.100% due 08/11/2044			400			414
Total Paraguay (Cost $700)						712
PERU 0.9%
CORPORATE BONDS & NOTES 0.3%
Petroleos del Peru S.A.
4.750% due 06/19/2032	$		400			385
5.625% due 06/19/2047			300			294

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Union Andina de Cementos S.A.A.
5.875% due 10/30/2021	$		150	$		153
						832
SOVEREIGN ISSUES 0.6%
Fondo MIVIVIENDA S.A.
3.500% due 01/31/2023			200			193
Peru Government International Bond
8.750% due 11/21/2033			894			1,318
						1,511
Total Peru (Cost $2,293)						2,343
PHILIPPINES 0.4%
CORPORATE BONDS & NOTES 0.4%
Power Sector Assets & Liabilities Management Corp.
7.390% due 12/02/2024	$		900			1,060
Total Philippines (Cost $1,095)						1,060
POLAND 1.2%
SOVEREIGN ISSUES 1.2%
Poland Government International Bond
3.250% due 04/06/2026	$		3,100			3,041
Total Poland (Cost $3,082)						3,041
QATAR 0.9%
CORPORATE BONDS & NOTES 0.2%
Nakilat, Inc.
6.067% due 12/31/2033	$		100			109
Ras Laffan Liquefied Natural Gas Co. Ltd.
5.838% due 09/30/2027			350			381
						490
SOVEREIGN ISSUES 0.7%
Qatar Government International Bond
4.500% due 01/20/2022			800			825
5.103% due 04/23/2048			900			948
						1,773
Total Qatar (Cost $2,174)						2,263
ROMANIA 0.0%
SOVEREIGN ISSUES 0.0%
Romania Government International Bond
3.875% due 10/29/2035	EUR		100			112
Total Romania (Cost $111)						112
RUSSIA 1.3%
CORPORATE BONDS & NOTES 0.5%
SCF Capital Designated Activity Co.
5.375% due 06/16/2023	$		800			782
VEON Holdings BV
5.200% due 02/13/2019			400			401
						1,183
SOVEREIGN ISSUES 0.8%
Russia Government International Bond
5.625% due 04/04/2042			1,900			1,947
Total Russia (Cost $3,126)						3,130

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 15

Schedule of Investments PIMCO Emerging Markets Bond Portfolio (Cont.)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
SAUDI ARABIA 1.3%
SOVEREIGN ISSUES 1.3%
Saudi Government International Bond
3.250% due 10/26/2026	$		200	$		187
3.625% due 03/04/2028			800			759
4.000% due 04/17/2025			2,400			2,384
Total Saudi Arabia (Cost $3,369)						3,330
SENEGAL 0.6%
SOVEREIGN ISSUES 0.6%
Senegal Government International Bond
4.750% due 03/13/2028	EUR		100			106
6.250% due 05/23/2033	$		1,500			1,296
6.750% due 03/13/2048			200			166
Total Senegal (Cost $1,824)						1,568
SERBIA 0.8%
SOVEREIGN ISSUES 0.8%
Serbia Government International Bond
4.875% due 02/25/2020	$		1,900			1,919
Total Serbia (Cost $1,931)						1,919
SINGAPORE 0.3%
CORPORATE BONDS & NOTES 0.3%
BOC Aviation Ltd.
2.750% due 09/18/2022	$		900			867
Total Singapore (Cost $896)						867
SOUTH AFRICA 3.3%
CORPORATE BONDS & NOTES 2.4%
AngloGold Ashanti Holdings PLC
5.375% due 04/15/2020	$		500			506
6.500% due 04/15/2040			100			97
Eskom Holdings SOC Ltd.
5.750% due 01/26/2021			400			378
6.350% due 08/10/2028			500			483
7.125% due 02/11/2025			1,000			915
Growthpoint Properties International Pty. Ltd.
5.872% due 05/02/2023			500			501
Myriad International Holdings BV
5.500% due 07/21/2025			200			202
SASOL Financing USA LLC
5.875% due 03/27/2024			2,300			2,298
6.500% due 09/27/2028			800			802
						6,182
SOVEREIGN ISSUES 0.9%
South Africa Government International Bond
4.665% due 01/17/2024			100			98
4.875% due 04/14/2026			400			381
5.000% due 10/12/2046			300			253
5.875% due 06/22/2030			1,700			1,663
						2,395
Total South Africa (Cost $8,845)						8,577
SRI LANKA 1.3%
CORPORATE BONDS & NOTES 0.2%
National Savings Bank
5.150% due 09/10/2019	$		500			489
SOVEREIGN ISSUES 1.1%
Sri Lanka Government International Bond
5.125% due 04/11/2019			700			696
6.125% due 06/03/2025			900			812

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
6.250% due 07/27/2021	$		368	$		355
6.825% due 07/18/2026			700			649
6.850% due 11/03/2025			400			375
						2,887
Total Sri Lanka (Cost $3,495)						3,376
TANZANIA 0.6%
LOAN PARTICIPATIONS AND ASSIGNMENTS 0.4%
Ministry of Finance of Tanzania
7.741% (LIBOR03M + 4.600%) due 12/10/2019 «~	$		1,000			984
SOVEREIGN ISSUES 0.2%
Tanzania Government International Bond
8.544% (US0006M + 6.000%) due 03/09/2020 ~			467			477
Total Tanzania (Cost $1,476)						1,461
THAILAND 0.2%
CORPORATE BONDS & NOTES 0.2%
Thaioil Treasury Center Co. Ltd.
5.375% due 11/20/2048	$		600			607
Total Thailand (Cost $593)						607
TRINIDAD AND TOBAGO 0.2%
CORPORATE BONDS & NOTES 0.2%
Petroleum Co. of Trinidad & Tobago Ltd.
6.000% due 05/08/2022	$		496			456
Total Trinidad and Tobago (Cost $490)						456
TURKEY 5.9%
CORPORATE BONDS & NOTES 0.3%
Hazine Mustesarligi Varlik Kiralama A/S
5.004% due 04/06/2023	$		200			190
Turkish Airlines Pass-Through Trust
4.200% due 09/15/2028			309			270
Turkiye Is Bankasi A/S
6.125% due 04/25/2024			400			339
						799
LOAN PARTICIPATIONS AND ASSIGNMENTS 0.4%
Akbank T.A.S.
TBD% due 10/06/2019	EUR		1,000			1,121
SOVEREIGN ISSUES 5.2%
Export-Credit Bank of Turkey
4.250% due 09/18/2022	$		500			453
5.375% due 10/24/2023			200			183
Turkey Government International Bond
4.875% due 04/16/2043			1,100			820
5.125% due 02/17/2028			1,500			1,318
5.750% due 05/11/2047			1,000			817
6.000% due 03/25/2027			2,100			1,982
6.000% due 01/14/2041			600			508
6.125% due 10/24/2028			800			748
6.750% due 05/30/2040			1,700			1,562
6.875% due 03/17/2036			1,600			1,506
7.250% due 12/23/2023			1,200			1,235
7.250% due 03/05/2038			700			680
7.500% due 11/07/2019			400			408
8.000% due 02/14/2034			1,100			1,151
						13,371
Total Turkey (Cost $16,971)						15,291

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
UKRAINE 2.6%
SOVEREIGN ISSUES 2.6%
Ukraine Government International Bond
0.000% due 05/31/2040 ~	$		500	$		290
7.375% due 09/25/2032			300			239
7.750% due 09/01/2020			2,300			2,224
7.750% due 09/01/2021			1,600			1,510
7.750% due 09/01/2022			1,100			1,013
7.750% due 09/01/2023			500			451
7.750% due 09/01/2024			900			795
Total Ukraine (Cost $7,033)						6,522
UNITED ARAB EMIRATES 0.5%
CORPORATE BONDS & NOTES 0.3%
DP World Ltd.
6.850% due 07/02/2037	$		600			669
SOVEREIGN ISSUES 0.2%
Emirate of Abu Dhabi Government International Bond
2.500% due 10/11/2022			400			389
Total United Arab Emirates (Cost $924)						1,058
UNITED KINGDOM 0.1%
CORPORATE BONDS & NOTES 0.1%
State Savings Bank of Ukraine Via SSB PLC
9.375% due 03/10/2023 Ø	$		200			198
Total United Kingdom (Cost $205)						198
UNITED STATES 4.0%
ASSET-BACKED SECURITIES 1.6%
Countrywide Asset-Backed Certificates Trust
2.746% due 02/25/2037 •	$		900			878
3.256% due 11/25/2035 •			380			377
Credit-Based Asset Servicing & Securitization Trust
3.581% due 01/25/2037 ^Ø			726			336
Morgan Stanley ABS Capital, Inc. Trust
3.271% due 01/25/2035 •			69			67
3.301% due 03/25/2034 •			695			684
Park Place Securities, Inc. Asset-Backed Pass-Through Certificates
3.026% due 09/25/2035 •			500			429
Soundview Home Loan Trust
3.406% due 10/25/2037 •			198			164
Wells Fargo Home Equity Asset-Backed Securities Trust
2.826% due 03/25/2037 •			1,500			1,228
						4,163
CORPORATE BONDS & NOTES 1.1%
Rio Oil Finance Trust
8.200% due 04/06/2028			500			525
9.250% due 07/06/2024			1,236			1,324
9.750% due 01/06/2027			896			985
						2,834
NON-AGENCY MORTGAGE-BACKED SECURITIES 1.3%
American Home Mortgage Investment Trust
4.385% due 09/25/2045 •			4			4
Banc of America Mortgage Trust
3.707% due 02/25/2036 ^~			2			2
BCAP LLC Trust
3.345% due 05/26/2037 ~			1,137			989
Bear Stearns Adjustable Rate Mortgage Trust
3.961% due 05/25/2047 ^~			16			15
4.343% due 01/25/2035 ~			2			2
Citigroup Mortgage Loan Trust
3.975% due 08/25/2035 ~			21			21
4.238% due 09/25/2037 ^~			34			32

16 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
CitiMortgage Alternative Loan Trust
3.156% due 10/25/2036 •	$		180	$		148
Civic Mortgage LLC
4.349% due 11/25/2022 Ø			95			95
Countrywide Alternative Loan Trust
2.856% due 05/25/2036 ^•			182			116
GSR Mortgage Loan Trust
4.354% due 01/25/2036 ^~			5			6
IndyMac Mortgage Loan Trust
2.686% due 02/25/2037 •			275			249
3.146% due 07/25/2045 •			157			152
4.043% due 11/25/2037 ~			158			154
Lehman XS Trust
2.756% due 08/25/2037 •			521			508
Morgan Stanley Mortgage Loan Trust
4.293% due 06/25/2036 ~			3			3
Suntrust Adjustable Rate Mortgage Loan Trust
4.304% due 10/25/2037 ^~			135			127
WaMu Mortgage Pass-Through Certificates Trust
3.513% due 03/25/2036 ~			309			301
3.600% due 02/25/2037 ^~			24			23
Washington Mutual Mortgage Pass-Through Certificates Trust
2.907% due 02/25/2047 ^•			276			245
Wells Fargo Mortgage-Backed Securities Trust
4.434% due 07/25/2036 ^~			5			5
						3,197
U.S. GOVERNMENT AGENCIES 0.0%
Freddie Mac
3.957% due 03/01/2036 •			14			15
Total United States (Cost $9,750)						10,209
URUGUAY 1.3%
SOVEREIGN ISSUES 1.3%
Uruguay Government International Bond
4.975% due 04/20/2055	$		400			381

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
5.100% due 06/18/2050	$		2,500	$		2,463
7.625% due 03/21/2036			400			524
Total Uruguay (Cost $3,386)						3,368
VENEZUELA 1.6%
CORPORATE BONDS & NOTES 0.6%
Petroleos de Venezuela S.A.
5.375% due 04/12/2027 ^(b)	$		4,550			683
5.500% due 04/12/2037 ^(b)			4,350			674
6.000% due 05/16/2024 ^(b)			380			59
6.000% due 11/15/2026 ^(b)			1,200			181
						1,597
SOVEREIGN ISSUES 1.0%
Venezuela Government International Bond
7.000% due 03/31/2038 ^(b)			300			69
7.650% due 04/21/2025 ^(b)			630			146
7.750% due 10/13/2019 ^(b)			3,240			752
8.250% due 10/13/2024 ^(b)			3,850			905
9.000% due 05/07/2023 ^(b)			800			182
9.250% due 09/15/2027 ^(b)			1,190			283
9.375% due 01/13/2034 ^(b)			40			11
11.950% due 08/05/2031 ^(b)			490			117
						2,465
Total Venezuela (Cost $13,355)						4,062
VIRGIN ISLANDS (BRITISH) 0.4%
CORPORATE BONDS & NOTES 0.4%
Gold Fields Orogen Holdings BVI Ltd.
4.875% due 10/07/2020	$		1,150			1,140
Total Virgin Islands (British) (Cost $1,146)						1,140
SHORT-TERM INSTRUMENTS 0.9%
CERTIFICATES OF DEPOSIT 0.4%
Barclays Bank PLC
2.890% (US0003M + 0.400%) due 10/25/2019 ~	$		900	$		901

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
REPURCHASE AGREEMENTS (h) 0.3%
				$		864
U.S. TREASURY BILLS 0.2%
2.305% due 01/03/2019 - 01/31/2019 (d)(e)(l)	$		537			536
Total Short-Term Instruments (Cost $2,300)						2,301
Total Investments in Securities (Cost $273,290)						249,538
		SHARES
INVESTMENTS IN AFFILIATES 0.5%
SHORT-TERM INSTRUMENTS 0.5%
CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 0.5%
PIMCO Short-Term Floating NAV Portfolio III			137,505			1,359
Total Short-Term Instruments (Cost $1,359)						1,359
Total Investments in Affiliates (Cost $1,359)						1,359
Total Investments 98.5% (Cost $274,649)				$		250,897
Financial Derivative Instruments (j)(k) (0.1)% (Cost or Premiums, net $(2,056))						(131	)
Other Assets and Liabilities, net 1.6%						4,010
Net Assets 100.0%				$		254,776

NOTES TO SCHEDULE OF INVESTMENTS:

* A zero balance may reflect actual amounts rounding to less than one thousand.

^ Security is in default.

« Security valued using significant unobservable inputs (Level 3).

~ Variable or Floating rate security. Rate shown is the rate in effect as of period end. Certain variable rate securities are not based on a published reference rate and spread, rather are determined by the issuer or agent and are based on current market conditions. Reference rate is as of reset date, which may vary by security. These securities may not indicate a reference rate and/or spread in their description.

• Rate shown is the rate in effect as of period end. The rate may be based on a fixed rate, a capped rate or a floor rate and may convert to a variable or floating rate in the future. These securities do not indicate a reference rate and spread in their description.

Ø Coupon represents a rate which changes periodically based on a predetermined schedule or event. Rate shown is the rate in effect as of period end.

(a) Payment in-kind security.

(b) Security is not accruing income as of the date of this report.

(c) Security did not produce income within the last twelve months.

(d) Coupon represents a weighted average yield to maturity.

(e) Zero coupon security.

(f) Perpetual maturity; date shown, if applicable, represents next contractual call date.

(g) Contingent convertible security.

BORROWINGS AND OTHER FINANCING TRANSACTIONS

(h)  REPURCHASE AGREEMENTS:

Counterparty	Lending Rate			Settlement Date		Maturity Date		Principal Amount		Collateralized By	Collateral (Received)			Repurchase Agreements, at Value		Repurchase Agreement Proceeds to be Received(1)
FICC		2.000	%		12/31/2018		01/02/2019	$	864	U.S. Treasury Notes 2.875% due 09/30/2023	$	(883	)	$	864	$	864
Total Repurchase Agreements											$	(883	)	$	864	$	864

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 17

Schedule of Investments PIMCO Emerging Markets Bond Portfolio (Cont.)

REVERSE REPURCHASE AGREEMENTS:

Counterparty	Borrowing Rate(2)			Settlement Date		Maturity Date			Amount Borrowed(2)			Payable for Reverse Repurchase Agreements
CFR		1.500	%		10/05/2018		TBD	(3)	$	(623	)	$	(625	)
Total Reverse Repurchase Agreements												$	(625	)

BORROWINGS AND OTHER FINANCING TRANSACTIONS SUMMARY

The following is a summary by counterparty of the market value of Borrowings and Other Financing Transactions and collateral pledged/(received) as of December 31, 2018:

Counterparty	Repurchase Agreement Proceeds to be Received(1)		Payable for Reverse Repurchase Agreements			Payable for Sale-Buyback Transactions		Total Borrowings and Other Financing Transactions			Collateral Pledged/(Received)			Net  Exposure(4)
Global/Master Repurchase Agreement
CFR	$	0	$	(625	)	$	0	$	(625	)	$	641		$	16
FICC		864		0			0		864			(883	)		(19	)
Total Borrowings and Other Financing Transactions	$	864	$	(625	)	$	0

CERTAIN TRANSFERS ACCOUNTED FOR AS SECURED BORROWINGS

Remaining Contractual Maturity of the Agreements

	Overnight and Continuous		Up to 30 days		31-90 days		Greater Than 90 days			Total
Reverse Repurchase Agreements
Sovereign Issues	$	0	$	0	$	0	$	(625	)	$	(625	)
Total Borrowings	$	0	$	0	$	0	$	(625	)	$	(625	)
Payable for reverse repurchase agreements										$	(625	)

(i) Securities with an aggregate market value of $641 have been pledged as collateral under the terms of the above master agreements as of December 31, 2018.

⁽¹⁾ Includes accrued interest.

⁽²⁾ The average amount of borrowings outstanding during the period ended December 31, 2018 was $(924) at a weighted average interest rate of 0.609%. Average borrowings may include sale-buyback transactions and reverse repurchase agreements, if held during the period.

⁽³⁾ Open maturity reverse repurchase agreement.

⁽⁴⁾ Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from borrowings and other financing transactions can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information regarding master netting arrangements.

(j)  FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED

FUTURES CONTRACTS:

LONG FUTURES CONTRACTS

Description	Expiration Month	# of Contracts		Notional Amount		Unrealized Appreciation/ (Depreciation)		Variation Margin
								Asset		Liability
U.S. Treasury 5-Year Note March Futures	03/2019		86	$	9,863	$	157	$	21	$	0
U.S. Treasury 10-Year Note March Futures	03/2019		76		9,273		225		30		0
Total Futures Contracts						$	382	$	51	$	0

SWAP AGREEMENTS:

CREDIT DEFAULT SWAPS ON CORPORATE ISSUES - SELL PROTECTION⁽¹⁾

Reference Entity	Fixed Receive Rate			Payment Frequency	Maturity Date		Implied Credit Spread at December 31, 2018(2)			Notional Amount(3)		Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)		Market Value(4)			Variation Margin
																				Asset		Liability
General Electric Co.		1.000	%	Quarterly		12/20/2023		2.039	%	$	100	$	(7	)	$	2	$	(5	)	$	0	$	0

18 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

CREDIT DEFAULT SWAPS ON CREDIT INDICES - SELL PROTECTION⁽¹⁾

Index/Tranches	Fixed Receive Rate			Payment Frequency		Maturity Date		Notional Amount(3)		Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Market Value(4)			Variation Margin
																			Asset		Liability
CDX.EM-28 5-Year Index		1.000	%		Quarterly		12/20/2022	$	776	$	(4	)	$	(15	)	$	(19	)	$	1	$	0
CDX.EM-30 5-Year Index		1.000			Quarterly		12/20/2023		11,500		(561	)		24			(537	)		8		0
										$	(565	)	$	9		$	(556	)	$	9	$	0

INTEREST RATE SWAPS

Pay/Receive Floating Rate	Floating Rate Index	Fixed Rate			Payment Frequency		Maturity Date		Notional Amount			Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Market Value			Variation Margin
																					Asset		Liability
Receive	1-Year BRL-CDI		12.435	%		Maturity		01/02/2019		BRL	1,300	$	(3	)	$	(19	)	$	(22	)	$	0	$	0
Receive	1-Year BRL-CDI		11.680			Maturity		01/04/2021			800		4			(23	)		(19	)		0		0
Receive	1-Year BRL-CDI		12.850			Maturity		01/04/2021			1,290		(15	)		(35	)		(50	)		0		0
Receive	1-Year BRL-CDI		16.150			Maturity		01/04/2021			6,900		(237	)		(192	)		(429	)		0		0
Pay	3-Month USD-LIBOR		1.500			Semi-Annual		06/21/2027		$	5,700		(494	)		(21	)		(515	)		19		0
Receive(5)	6-Month EUR-EURIBOR		0.500			Annual		03/20/2024		EUR	1,200		(2	)		(15	)		(17	)		0		(1	)
Receive(5)	6-Month EUR-EURIBOR		1.000			Annual		03/20/2029			1,000		4			(21	)		(17	)		0		(2	)
												$	(743	)	$	(326	)	$	(1,069	)	$	19	$	(3	)
Total Swap Agreements												$	(1,315	)	$	(315	)	$	(1,630	)	$	28	$	(3	)

FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED SUMMARY

The following is a summary of the market value and variation margin of Exchange-Traded or Centrally Cleared Financial Derivative Instruments as of December 31, 2018:

	Financial Derivative Assets								Financial Derivative Liabilities
	Market Value		Variation Margin Asset				Total		Market Value		Variation Margin Liability				Total
	Purchased Options		Futures		Swap Agreements				Written Options		Futures		Swap Agreements
Total Exchange-Traded or Centrally Cleared	$	0	$	51	$	28	$	79	$	0	$	0		$    (3)		$    (3)

Cash of $2,257 has been pledged as collateral for exchange-traded and centrally cleared financial derivative instruments as of December 31, 2018. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information regarding master netting arrangements.

⁽¹⁾ If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽²⁾ Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate or sovereign issues as of period end serve as indicators of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

⁽³⁾ The maximum potential amount the Portfolio could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

⁽⁴⁾ The prices and resulting values for credit default swap agreements serve as indicators of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced indices’ credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

⁽⁵⁾ This instrument has a forward starting effective date. See Note 2, Securities Transactions and Investment Income, in the Notes to Financial Statements for further information.

(k)  FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER

FORWARD FOREIGN CURRENCY CONTRACTS:

Counterparty	Settlement Month		Currency to be Delivered		Currency to be Received		Unrealized Appreciation/ (Depreciation)
							Asset		Liability
BOA		01/2019	EUR	8,408	$	9,599	$	0	$	(41	)
BPS		01/2019	BRL	5,100		1,334		18		0
		01/2019	$	1,312	BRL	5,100		3		0
CBK		01/2019	BRL	6,981	$	1,788		0		(13	)
		01/2019	EUR	94		107		0		(1	)

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 19

Schedule of Investments PIMCO Emerging Markets Bond Portfolio (Cont.)

Counterparty	Settlement Month		Currency to be Delivered		Currency to be Received		Unrealized Appreciation/ (Depreciation)
							Asset		Liability
		01/2019	GBP	101	$	129	$	0	$	0
		01/2019	$	1,801	BRL	6,981		0		0
		01/2019		1,381	EUR	1,209		4		0
		02/2019		1,306	COP	4,116,834		0		(41	)
DUB		01/2019	BRL	8,441	$	2,178		1		0
		01/2019	$	2,192	BRL	8,441		0		(15	)
		02/2019	BRL	8,441	$	2,188		14		0
GLM		01/2019		1,160		299		0		0
		01/2019	$	299	BRL	1,160		1		0
		03/2019		271	EGP	5,108		9		0
		04/2019	BRL	1,170	$	299		0		0
IND		01/2019	MXN	24,109		1,184		0		(42	)
JPM		01/2019	BRL	300		77		0		0
		01/2019	$	78	BRL	300		0		0
		01/2019		1,093	MXN	22,298		38		0
MSB		01/2019	BRL	1,460	$	372		0		(4	)
		01/2019	$	382	BRL	1,460		0		(5	)
		02/2019		372		1,460		4		0
SOG		01/2019		1,251	RUB	82,886		0		(65	)
Total Forward Foreign Currency Contracts							$	92	$	(227	)

WRITTEN OPTIONS:

CREDIT DEFAULT SWAPTIONS ON CREDIT INDICES

Counterparty	Description	Buy/Sell Protection	Exercise Rate			Expiration Date		Notional Amount		Premiums (Received)			Market Value
BOA	Put - OTC CDX.IG-31 5-Year Index	Sell		1.200	%		03/20/2019	$	700	$	(1	)	$	(1	)
GST	Put - OTC CDX.IG-31 5-Year Index	Sell		2.400			09/18/2019		400		(1	)		(1	)
	Put - OTC iTraxx Europe 30 5-Year Index	Sell		2.400			09/18/2019	EUR	300		(0	)		0
JPM	Put - OTC CDX.IG-31 5-Year Index	Sell		1.200			03/20/2019	$	400		(1	)		(1	)
										$	(3	)	$	(3	)

INFLATION-CAPPED OPTIONS

Counterparty	Description	Initial Index		Floating Rate	Expiration Date		Notional Amount		Premiums (Received)			Market Value
CBK	Floor - OTC CPURNSA		217.965	Maximum of [(1 + 0.000%)10 - (Final Index/Initial Index)] or 0		09/29/2020	$	800	$	(10	)	$	0
DUB	Floor - OTC CPURNSA		218.011	Maximum of [0.000% - (Final Index/Initial Index - 1)] or 0		10/13/2020		800		(8	)		0
									$	(18	)	$	0
Total Written Options									$	(21	)	$	(3	)

SWAP AGREEMENTS:

CREDIT DEFAULT SWAPS ON SOVEREIGN ISSUES - BUY PROTECTION⁽¹⁾

Counterparty	Reference Entity	Fixed (Pay) Rate			Payment Frequency		Maturity Date		Implied Credit Spread at December 31, 2018(3)			Notional Amount(4)		Premiums Paid/(Received)		Unrealized Appreciation/ (Depreciation)			Swap Agreements, at  Value(5)
																			Asset		Liability
BPS	Turkey Government International Bond		(1.000	)%		Quarterly		12/20/2022		3.326	%	$	1,200	$	50	$	48		$	98	$	0
CBK	Turkey Government International Bond		(1.000	)		Quarterly		09/20/2020		2.799			300		26		(17	)		9		0
GST	Turkey Government International Bond		(1.000	)		Quarterly		09/20/2020		2.799			100		8		(5	)		3		0
	Turkey Government International Bond		(1.000	)		Quarterly		12/20/2022		3.326			900		38		35			73		0
														$	122	$	61		$	183	$	0

20 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

CREDIT DEFAULT SWAPS ON CORPORATE AND SOVEREIGN ISSUES - SELL PROTECTION⁽²⁾

Counterparty	Reference Entity	Fixed Receive Rate			Payment Frequency		Maturity Date		Implied Credit Spread at December 31, 2018(3)			Notional Amount(4)		Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Swap Agreements, at  Value(5)
																				Asset		Liability
BOA	Brazil Government International Bond		1.000	%		Quarterly		06/20/2019		0.825	%	$	400	$	(1	)	$	1		$	0	$	0
	Brazil Government International Bond		1.000			Quarterly		06/20/2020		1.176			300		(18	)		17			0		(1	)
	Colombia Government International Bond		1.000			Quarterly		06/20/2019		0.605			500		(1	)		2			1		0
	Colombia Government International Bond		1.000			Quarterly		09/20/2020		0.857			300		(16	)		17			1		0
	Indonesia Government International Bond		1.000			Quarterly		09/20/2020		0.568			400		(25	)		28			3		0
	Peru Government International Bond		1.000			Quarterly		09/20/2020		0.403			200		(8	)		10			2		0
BPS	Brazil Government International Bond		1.000			Quarterly		12/20/2019		1.021			500		0			0			0		0
	Brazil Government International Bond		1.000			Quarterly		06/20/2023		1.903			200		(13	)		6			0		(7	)
	Indonesia Government International Bond		1.000			Quarterly		12/20/2021		0.860			500		(15	)		17			2		0
	Mexico Government International Bond		1.000			Quarterly		12/20/2019		0.790			400		1			0			1		0
	Mexico Government International Bond		1.000			Quarterly		12/20/2023		1.549			300		(2	)		(5	)		0		(7	)
BRC	Brazil Government International Bond		1.000			Quarterly		06/20/2019		0.825			200		(8	)		8			0		0
	Chile Government International Bond		1.000			Quarterly		12/20/2021		0.378			3,000		41			14			55		0
	Colombia Government International Bond		1.000			Quarterly		06/20/2019		0.605			100		0			0			0		0
	Colombia Government International Bond		1.000			Quarterly		09/20/2020		0.857			400		(23	)		24			1		0
	Indonesia Government International Bond		1.000			Quarterly		03/20/2024		1.438			100		(14	)		12			0		(2	)
	Panama Government International Bond		1.000			Quarterly		06/20/2019		0.257			200		1			0			1		0
	South Africa Government International Bond		1.000			Quarterly		12/20/2021		1.765			500		(36	)		25			0		(11	)
	South Africa Government International Bond		1.000			Quarterly		06/20/2022		1.882			600		(28	)		11			0		(17	)
CBK	Brazil Government International Bond		1.000			Quarterly		03/20/2019		0.746			200		0			0			0		0
	Brazil Government International Bond		1.000			Quarterly		06/20/2023		1.903			100		(7	)		3			0		(4	)
	Colombia Government International Bond		1.000			Quarterly		06/20/2019		0.605			3,200		14			(7	)		7		0
	Indonesia Government International Bond		1.000			Quarterly		03/20/2024		1.438			300		(41	)		35			0		(6	)
	Mexico Government International Bond		1.000			Quarterly		12/20/2019		0.790			600		2			(1	)		1		0
	Mexico Government International Bond		1.000			Quarterly		12/20/2023		1.549			400		(2	)		(8	)		0		(10	)
	Petroleos Mexicanos		1.000			Quarterly		12/20/2019		1.822			3,000		19			(42	)		0		(23	)
	Uruguay Government International Bond		1.000			Quarterly		06/20/2020		1.541			1,800		(17	)		4			0		(13	)
DUB	Colombia Government International Bond		1.000			Quarterly		09/20/2020		0.857			200		(11	)		12			1		0
	Egypt Government International Bond		1.000			Quarterly		06/20/2020		2.724			400		(12	)		2			0		(10	)
	Mexico Government International Bond		1.000			Quarterly		12/20/2019		0.790			400		2			(1	)		1		0
	Panama Government International Bond		1.000			Quarterly		06/20/2019		0.257			500		3			(1	)		2		0
	Penerbangan Malaysia Bhd.		1.000			Quarterly		03/20/2020		0.305			200		(2	)		4			2		0
FBF	Colombia Government International Bond		1.000			Quarterly		09/20/2020		0.857			200		(11	)		12			1		0
	Ecuador Government International Bond		5.000			Quarterly		06/20/2021		6.521			600		(39	)		20			0		(19	)
	Ecuador Government International Bond		5.000			Quarterly		12/20/2021		6.637			300		(23	)		11			0		(12	)
	Indonesia Government International Bond		1.000			Quarterly		06/20/2021		0.758			2,900		(188	)		206			18		0
GST	Brazil Government International Bond		1.000			Quarterly		06/20/2019		0.825			100		(4	)		4			0		0
	Brazil Government International Bond		1.000			Quarterly		06/20/2020		1.176			200		(13	)		13			0		0
	Indonesia Government International Bond		1.000			Quarterly		03/20/2024		1.438			100		(14	)		12			0		(2	)
	Panama Government International Bond		1.000			Quarterly		06/20/2019		0.257			100		1			(1	)		0		0
HUS	Brazil Government International Bond		1.000			Quarterly		03/20/2019		0.746			600		(1	)		2			1		0
	Brazil Government International Bond		1.000			Quarterly		06/20/2023		1.903			900		(57	)		24			0		(33	)
	Colombia Government International Bond		1.000			Quarterly		06/20/2019		0.605			2,600		(19	)		25			6		0
	Mexico Government International Bond		1.000			Quarterly		06/20/2023		1.434			4,000		(35	)		(35	)		0		(70	)
	Mexico Government International Bond		1.000			Quarterly		12/20/2023		1.549			1,700		(23	)		(19	)		0		(42	)
	Panama Government International Bond		1.000			Quarterly		06/20/2019		0.257			200		1			0			1		0
	South Africa Government International Bond		1.000			Quarterly		03/20/2023		2.045			1,700		(139	)		71			0		(68	)
JPM	Brazil Government International Bond		1.000			Quarterly		12/20/2019		1.021			1,000		(37	)		37			0		0
	Colombia Government International Bond		1.000			Quarterly		06/20/2019		0.605			500		3			(2	)		1		0
	Indonesia Government International Bond		1.000			Quarterly		09/20/2020		0.568			300		(19	)		21			2		0
	Mexico Government International Bond		1.000			Quarterly		12/20/2023		1.549			300		(3	)		(4	)		0		(7	)
	Panama Government International Bond		1.000			Quarterly		06/20/2019		0.257			500		2			0			2		0
NGF	Mexico Government International Bond		1.000			Quarterly		12/20/2023		1.549			100		0			(2	)		0		(2	)
UAG	Indonesia Government International Bond		1.000			Quarterly		06/20/2021		0.758			100		(7	)		8			1		0
														$	(842	)	$	590		$	114	$	(366	)
Total Swap Agreements														$	(720	)	$	651		$	297	$	(366	)

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 21

Schedule of Investments PIMCO Emerging Markets Bond Portfolio (Cont.)

FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER SUMMARY

The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral pledged/(received) as of December 31, 2018:

	Financial Derivative Assets								Financial Derivative Liabilities
Counterparty	Forward Foreign Currency Contracts		Purchased Options		Swap Agreements		Total Over the Counter		Forward Foreign Currency Contracts			Written Options			Swap Agreements			Total Over the Counter			Net Market Value of OTC Derivatives			Collateral Pledged/ (Received)			Net Exposure(6)
BOA	$	0	$	0	$	7	$	7	$	(41	)	$	(1	)	$	(1	)	$	(43	)	$	(36	)	$	0		$	(36	)
BPS		21		0		101		122		0			0			(14	)		(14	)		108			(270	)		(162	)
BRC		0		0		57		57		0			0			(30	)		(30	)		27			0			27
CBK		4		0		17		21		(55	)		0			(56	)		(111	)		(90	)		0			(90	)
DUB		15		0		6		21		(15	)		0			(10	)		(25	)		(4	)		(10	)		(14	)
FBF		0		0		19		19		0			0			(31	)		(31	)		(12	)		0			(12	)
GLM		10		0		0		10		0			0			0			0			10			0			10
GST		0		0		76		76		0			(1	)		(2	)		(3	)		73			0			73
HUS		0		0		8		8		0			0			(213	)		(213	)		(205	)		273			68
IND		0		0		0		0		(42	)		0			0			(42	)		(42	)		0			(42	)
JPM		38		0		5		43		0			(1	)		(7	)		(8	)		35			0			35
MSB		4		0		0		4		(9	)		0			0			(9	)		(5	)		0			(5	)
NGF		0		0		0		0		0			0			(2	)		(2	)		(2	)		0			(2	)
SOG		0		0		0		0		(65	)		0			0			(65	)		(65	)		0			(65	)
UAG		0		0		1		1		0			0			0			0			1			0			1
Total Over the Counter	$	92	$	0	$	297	$	389	$	(227	)	$	(3	)	$	(366	)	$	(596	)

(l) Securities with an aggregate market value of $273 have been pledged as collateral for financial derivative instruments as governed by International Swaps and Derivatives Association, Inc. master agreements as of December 31, 2018.

⁽¹⁾ If the Portfolio is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽²⁾ If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽³⁾ Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate or sovereign issues as of period end serve as indicators of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

⁽⁴⁾ The maximum potential amount the Portfolio could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

⁽⁵⁾ The prices and resulting values for credit default swap agreements serve as indicators of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced indices’ credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

⁽⁶⁾ Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information regarding master netting arrangements.

22 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

FAIR VALUE OF FINANCIAL DERIVATIVE INSTRUMENTS

The following is a summary of the fair valuation of the Portfolio’s derivative instruments categorized by risk exposure. See Note 7, Principal Risks, in the Notes to Financial Statements on risks of the Portfolio.

Fair Values of Financial Derivative Instruments on the Statement of Assets and Liabilities as of December 31, 2018:

	Derivatives not accounted for as hedging instruments
	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Exchange Contracts		Interest Rate Contracts		Total
Financial Derivative Instruments - Assets
Exchange-traded or centrally cleared
Futures	$	0	$	0	$	0	$	0	$	51	$	51
Swap Agreements		0		9		0		0		19		28
	$	0	$	9	$	0	$	0	$	70	$	79
Over the counter
Forward Foreign Currency Contracts	$	0	$	0	$	0	$	92	$	0	$	92
Swap Agreements		0		297		0		0		0		297
	$	0	$	297	$	0	$	92	$	0	$	389
	$	0	$	306	$	0	$	92	$	70	$	468
Financial Derivative Instruments - Liabilities
Exchange-traded or centrally cleared
Swap Agreements	$	0	$	0	$	0	$	0	$	3	$	3
Over the counter
Forward Foreign Currency Contracts	$	0	$	0	$	0	$	227	$	0	$	227
Written Options		0		3		0		0		0		3
Swap Agreements		0		366		0		0		0		366
	$	0	$	369	$	0	$	227	$	0	$	596
	$	0	$	369	$	0	$	227	$	3	$	599

The effect of Financial Derivative Instruments on the Statement of Operations for the period ended December 31, 2018:

	Derivatives not accounted for as hedging instruments
	Commodity Contracts		Credit Contracts			Equity Contracts		Foreign Exchange Contracts			Interest Rate Contracts			Total
Net Realized Gain (Loss) on Financial Derivative Instruments
Exchange-traded or centrally cleared
Written Options	$	0	$	0		$	0	$	0		$	20		$	20
Futures		0		0			0		0			(369	)		(369	)
Swap Agreements		0		(103	)		0		0			(49	)		(152	)
	$	0	$	(103	)	$	0	$	0		$	(398	)	$	(501	)
Over the counter
Forward Foreign Currency Contracts	$	0	$	0		$	0	$	366		$	0		$	366
Written Options		0		0			0		5			0			5
Swap Agreements		0		1,867			0		0			0			1,867
	$	0	$	1,867		$	0	$	371		$	0		$	2,238
	$	0	$	1,764		$	0	$	371		$	(398	)	$	1,737
Net Change in Unrealized Appreciation (Depreciation) on Financial Derivative Instruments
Exchange-traded or centrally cleared
Futures	$	0	$	0		$	0	$	0		$	389		$	389
Swap Agreements		0		5			0		0			(170	)		(165	)
	$	0	$	5		$	0	$	0		$	219		$	224
Over the counter
Forward Foreign Currency Contracts	$	0	$	0		$	0	$	(14	)	$	0		$	(14	)
Swap Agreements		0		(1,610	)		0		0			0			(1,610	)
	$	0	$	(1,610	)	$	0	$	(14	)	$	0		$	(1,624	)
	$	0	$	(1,605	)	$	0	$	(14	)	$	219		$	(1,400	)

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 23

Schedule of Investments PIMCO Emerging Markets Bond Portfolio (Cont.)

FAIR VALUE MEASUREMENTS

The following is a summary of the fair valuations according to the inputs used as of December 31, 2018 in valuing the Portfolio’s assets and liabilities:

Category and Subcategory	Level 1		Level 2		Level 3		Fair Value at 12/31/2018
Investments in Securities, at Value
Albania
Sovereign Issues	$	0	$	799	$	0	$	799
Angola
Sovereign Issues		0		1,035		0		1,035
Argentina
Sovereign Issues		0		16,001		0		16,001
Azerbaijan
Corporate Bonds & Notes		0		3,792		0		3,792
Sovereign Issues		0		200		0		200
Bahamas
Sovereign Issues		0		1,074		0		1,074
Brazil
Corporate Bonds & Notes		0		9,554		0		9,554
Loan Participations and Assignments		0		0		1,545		1,545
Sovereign Issues		0		5,023		0		5,023
Cayman Islands
Corporate Bonds & Notes		0		5,494		0		5,494
Chile
Corporate Bonds & Notes		0		5,384		0		5,384
China
Corporate Bonds & Notes		0		5,377		0		5,377
Colombia
Corporate Bonds & Notes		0		1,227		0		1,227
Sovereign Issues		0		4,851		0		4,851
Costa Rica
Sovereign Issues		0		659		0		659
Dominican Republic
Sovereign Issues		0		6,192		0		6,192
Ecuador
Sovereign Issues		0		1,502		0		1,502
Egypt
Sovereign Issues		0		3,675		0		3,675
El Salvador
Sovereign Issues		0		971		0		971
Gabon
Sovereign Issues		0		182		0		182
Ghana
Sovereign Issues		0		1,473		0		1,473
Guatemala
Sovereign Issues		0		1,978		0		1,978
Hong Kong
Corporate Bonds & Notes		0		4,014		0		4,014
Hungary
Sovereign Issues		0		627		0		627
India
Sovereign Issues		0		1,299		0		1,299
Indonesia
Corporate Bonds & Notes		0		9,289		0		9,289
Sovereign Issues		0		14,995		0		14,995
Ireland
Corporate Bonds & Notes		0		3,543		0		3,543
Israel
Sovereign Issues		0		2,498		0		2,498
Ivory Coast
Sovereign Issues		0		1,974		0		1,974
Jordan
Sovereign Issues		0		1,209		0		1,209
Kazakhstan
Corporate Bonds & Notes		0		2,658		0		2,658
Sovereign Issues		0		599		0		599
Kenya
Sovereign Issues		0		615		0		615

Category and Subcategory	Level 1		Level 2		Level 3		Fair Value at 12/31/2018
Luxembourg
Asset-Backed Securities	$	0	$	0	$	72	$	72
Corporate Bonds & Notes		0		12,960		0		12,960
Malaysia
Corporate Bonds & Notes		0		201		0		201
Mexico
Corporate Bonds & Notes		0		12,480		0		12,480
Sovereign Issues		0		6,644		0		6,644
Mongolia
Sovereign Issues		0		1,165		0		1,165
Namibia
Sovereign Issues		0		270		0		270
Netherlands
Corporate Bonds & Notes		0		1,966		0		1,966
Nigeria
Sovereign Issues		0		4,368		0		4,368
Oman
Corporate Bonds & Notes		0		382		0		382
Sovereign Issues		0		3,425		0		3,425
Pakistan
Corporate Bonds & Notes		0		383		0		383
Sovereign Issues		0		364		0		364
Panama
Corporate Bonds & Notes		0		697		0		697
Sovereign Issues		0		3,882		0		3,882
Paraguay
Sovereign Issues		0		712		0		712
Peru
Corporate Bonds & Notes		0		832		0		832
Sovereign Issues		0		1,511		0		1,511
Philippines
Corporate Bonds & Notes		0		1,060		0		1,060
Poland
Sovereign Issues		0		3,041		0		3,041
Qatar
Corporate Bonds & Notes		0		490		0		490
Sovereign Issues		0		1,773		0		1,773
Romania
Sovereign Issues		0		112		0		112
Russia
Corporate Bonds & Notes		0		1,183		0		1,183
Sovereign Issues		0		1,947		0		1,947
Saudi Arabia
Sovereign Issues		0		3,330		0		3,330
Senegal
Sovereign Issues		0		1,568		0		1,568
Serbia
Sovereign Issues		0		1,919		0		1,919
Singapore
Corporate Bonds & Notes		0		867		0		867
South Africa
Corporate Bonds & Notes		0		6,182		0		6,182
Sovereign Issues		0		2,395		0		2,395
Sri Lanka
Corporate Bonds & Notes		0		489		0		489
Sovereign Issues		0		2,887		0		2,887
Tanzania
Loan Participations and Assignments		0		0		984		984
Sovereign Issues		0		477		0		477
Thailand
Corporate Bonds & Notes		0		607		0		607
Trinidad and Tobago
Corporate Bonds & Notes		0		456		0		456

24 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

Category and Subcategory	Level 1		Level 2		Level 3		Fair Value at 12/31/2018
Turkey
Corporate Bonds & Notes	$	0	$	799	$	0	$	799
Loan Participations and Assignments		0		1,121		0		1,121
Sovereign Issues		0		13,371		0		13,371
Ukraine
Sovereign Issues		0		6,522		0		6,522
United Arab Emirates
Corporate Bonds & Notes		0		669		0		669
Sovereign Issues		0		389		0		389
United Kingdom
Corporate Bonds & Notes		0		198		0		198
United States
Asset-Backed Securities		0		4,163		0		4,163
Corporate Bonds & Notes		0		2,834		0		2,834
Non-Agency Mortgage-Backed Securities		0		3,197		0		3,197
U.S. Government Agencies		0		15		0		15
Uruguay
Sovereign Issues		0		3,368		0		3,368
Venezuela
Corporate Bonds & Notes		0		1,597		0		1,597
Sovereign Issues		0		2,465		0		2,465
Virgin Islands (British)
Corporate Bonds & Notes		0		1,140		0		1,140
Short-Term Instruments
Certificates of Deposit		0		901		0		901
Repurchase Agreements		0		864		0		864
U.S. Treasury Bills		0		536		0		536
	$	0	$	246,937	$	2,601	$	249,538

Category and Subcategory	Level 1		Level 2			Level 3		Fair Value at 12/31/2018
Investments in Affiliates, at Value
Short-Term Instruments
Central Funds Used for Cash Management Purposes	$	1,359	$	0		$	0	$	1,359
Total Investments	$	1,359	$	246,937		$	2,601	$	250,897
Financial Derivative Instruments - Assets
Exchange-traded or centrally cleared		51		28			0		79
Over the counter		0		389			0		389
	$	51	$	417		$	0	$	468
Financial Derivative Instruments - Liabilities
Exchange-traded or centrally cleared		0		(3	)		0		(3	)
Over the counter		0		(596	)		0		(596	)
	$	0	$	(599	)	$	0	$	(599	)
Total Financial Derivative Instruments	$	51	$	(182	)	$	0	$	(131	)
Totals	$	1,410	$	246,755		$	2,601	$	250,766

The following is a reconciliation of the fair valuations using significant unobservable inputs (Level 3) for the Portfolio during the period ended December 31, 2018:

Category and Subcategory	Beginning Balance at 12/31/2017		Net Purchases		Net Sales			Accrued Discounts/ (Premiums)		Realized Gain/(Loss)		Net Change in Unrealized Appreciation/ (Depreciation)(1)			Transfers into Level 3		Transfers out of Level 3			Ending Balance at 12/31/2018		Net Change in Unrealized Appreciation/ (Depreciation) on Investments Held at 12/31/2018(1)
Investments in Securities, at Value
Brazil
Loan Participations and Assignments	$	1,603	$	0	$	0		$	0	$	0	$	(58	)	$	0	$	0		$	1,545	$	(58	)
Cayman Islands
Corporate Bonds & Notes		1,904		0		0			0		0		0			0		(1,904	)		0		0
Luxembourg
Asset-Backed Securities		179		0		(99	)		3		10		(21	)		0		0			72		(8	)
Tanzania
Loan Participations and Assignments		0		2,000		(1,000	)		0		0		(16	)		0		0			984		(16	)
United States
Loan Participations and Assignments		793		0		(800	)		2		22		(17	)		0		0			0		0
Totals	$	4,479	$	2,000	$	(1,899	)	$	5	$	32	$	(112	)	$	0	$	(1,904	)	$	2,601	$	(82	)

The following is a summary of significant unobservable inputs used in the fair valuations of assets and liabilities categorized within Level 3 of the fair value hierarchy:

Category and Subcategory	Ending Balance at 12/31/2018		Valuation Technique	Unobservable Inputs	Input Value(s) (% Unless Noted Otherwise)
Investments in Securities, at Value
Brazil
Loan Participations and Assignments	$	1,545	Proxy Pricing	Base Price		96.340
Luxembourg
Asset-Backed Securities		72	Proxy Pricing	Base Price		98.156
Tanzania
Loan Participations and Assignments		984	Proxy Pricing	Base Price		98.326
Total	$	2,601

⁽¹⁾  Any difference between Net Change in Unrealized Appreciation/(Depreciation) and Net Change in Unrealized Appreciation/(Depreciation) on Investments Held at December 31, 2018 may be due to an investment no longer held or categorized as Level 3 at period end.

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 25

Notes to Financial Statements

1. ORGANIZATION

PIMCO Variable Insurance Trust (the “Trust”) is a Delaware statutory trust established under a trust instrument dated October 3, 1997. The Trust is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Trust is designed to be used as an investment vehicle by separate accounts of insurance companies that fund variable annuity contracts and variable life insurance policies and by qualified pension and retirement plans. Information presented in these financial statements pertains to the Institutional Class, Class M, Administrative Class and Advisor Class shares of the PIMCO Emerging Markets Bond Portfolio (the “Portfolio”) offered by the Trust. Pacific Investment Management Company LLC (“PIMCO”) serves as the investment adviser (the “Adviser”) for the Portfolio.

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Portfolio is treated as an investment company under the reporting requirements of U.S. GAAP. The functional and reporting currency for the Portfolio is the U.S. dollar. The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

(a) Securities Transactions and Investment Income  Securities transactions are recorded as of the trade date for financial reporting purposes. Securities purchased or sold on a when-issued or delayed-delivery basis may be settled beyond a standard settlement period for the security after the trade date. Realized gains (losses) from securities sold are recorded on the identified cost basis. Dividend income is recorded on the ex-dividend date, except certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Portfolio is informed of the ex-dividend date. Interest income, adjusted for the accretion of discounts and amortization of premiums, is recorded on the accrual basis from settlement date, with the exception of securities with a forward starting effective date, where interest income is recorded on the accrual basis from effective date. For convertible securities, premiums attributable to the conversion feature are not amortized. Estimated tax liabilities on certain foreign securities are recorded on an accrual basis and are reflected as components of interest income or net change in unrealized appreciation (depreciation) on investments on the Statement of

Operations, as appropriate. Tax liabilities realized as a result of such security sales are reflected as a component of net realized gain (loss) on investments on the Statement of Operations. Paydown gains (losses) on mortgage-related and other asset-backed securities, if any, are recorded as components of interest income on the Statement of Operations. Income or short-term capital gain distributions received from registered investment companies, if any, are recorded as dividend income. Long-term capital gain distributions received from registered investment companies, if any, are recorded as realized gains.

Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivable when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is probable.

(b) Foreign Currency Translation  The market values of foreign securities, currency holdings and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the current exchange rates each business day. Purchases and sales of securities and income and expense items denominated in foreign currencies, if any, are translated into U.S. dollars at the exchange rate in effect on the transaction date. The Portfolio does not separately report the effects of changes in foreign exchange rates from changes in market prices on securities held. Such changes are included in net realized gain (loss) and net change in unrealized appreciation (depreciation) from investments on the Statement of Operations. The Portfolio may invest in foreign currency-denominated securities and may engage in foreign currency transactions either on a spot (cash) basis at the rate prevailing in the currency exchange market at the time or through a forward foreign currency contract. Realized foreign exchange gains (losses) arising from sales of spot foreign currencies, currency gains (losses) realized between the trade and settlement dates on securities transactions and the difference between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid are included in net realized gain (loss) on foreign currency transactions on the Statement of Operations. Net unrealized foreign exchange gains (losses) arising from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period are included in net change in unrealized appreciation (depreciation) on foreign currency assets and liabilities on the Statement of Operations.

(c) Multi-Class Operations  Each class offered by the Trust has equal rights as to assets and voting privileges (except that shareholders of a class have exclusive voting rights regarding any matter relating solely to that class of shares). Income and non-class specific expenses are

26 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

allocated daily to each class on the basis of the relative net assets. Realized and unrealized capital gains (losses) are allocated daily based on the relative net assets of each class of the Portfolio. Class specific expenses, where applicable, currently include supervisory and administrative and distribution and servicing fees. Under certain circumstances, the per share net asset value (“NAV”) of a class of the Portfolio’s shares may be different from the per share NAV of another class of shares as a result of the different daily expense accruals applicable to each class of shares.

(d) Distributions to Shareholders  Distributions from net investment income, if any, are declared daily and distributed to shareholders monthly. Net realized capital gains earned by the Portfolio, if any, will be distributed no less frequently than once each year.

Income distributions and capital gain distributions are determined in accordance with income tax regulations which may differ from U.S. GAAP. Differences between tax regulations and U.S. GAAP may cause timing differences between income and capital gain recognition. Further, the character of investment income and capital gains may be different for certain transactions under the two methods of accounting. As a result, income distributions and capital gain distributions declared during a fiscal period may differ significantly from the net investment income (loss) and realized gains (losses) reported on the Portfolio’s annual financial statements presented under U.S. GAAP.

If the Portfolio estimates that a portion of its distribution may be comprised of amounts from sources other than net investment income in accordance with its policies and good accounting practices, the Portfolio will notify shareholders of the estimated composition of such distribution through a Section 19 Notice. For these purposes, the Portfolio estimates the source or sources from which a distribution is paid, to the close of the period as of which it is paid, in reference to its internal accounting records and related accounting practices. If, based on such accounting records and practices, it is estimated that a particular distribution does not include capital gains or paid-in surplus or other capital sources, a Section 19 Notice generally would not be issued. It is important to note that differences exist between the Portfolio’s daily internal accounting records and practices, the Portfolio’s financial statements presented in accordance with U.S. GAAP, and recordkeeping practices under income tax regulations. For instance, the Portfolio’s internal accounting records and practices may take into account, among other factors, tax-related characteristics of certain sources of distributions that differ from treatment under U.S. GAAP. Examples of such differences may include, among others, the treatment of paydowns on mortgage-backed securities purchased at a discount and periodic payments under interest rate swap contracts. Accordingly, among other consequences, it is possible that the Portfolio may not issue a Section 19 Notice in situations where the Portfolio’s

financial statements prepared later and in accordance with U.S. GAAP and/or the final tax character of those distributions might later report that the sources of those distributions included capital gains and/or a return of capital. Final determination of a distribution’s tax character will be provided to shareholders when such information is available.

Distributions classified as a tax basis return of capital, if any, are reflected on the Statements of Changes in Net Assets and have been recorded to paid in capital on the Statement of Assets and Liabilities. In addition, other amounts have been reclassified between distributable earnings (accumulated loss) and paid in capital on the Statement of Assets and Liabilities to more appropriately conform U.S. GAAP to tax characterizations of distributions.

(e) New Accounting Pronouncements  In August 2016, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”), ASU 2016-15, which amends Accounting Standards Codification (“ASC”) 230 to clarify guidance on the classification of certain cash receipts and cash payments in the Statement of Cash Flows. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In November 2016, the FASB issued ASU 2016-18 which amends ASC 230 to provide guidance on the classification and presentation of changes in restricted cash and restricted cash equivalents on the Statement of Cash Flows. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In March 2017, the FASB issued ASU 2017-08 which provides guidance related to the amortization period for certain purchased callable debt securities held at a premium. The ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In August 2018, the FASB issued ASU 2018-13 which modifies certain disclosure requirements for fair value measurements in ASC 820. The ASU is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. At this time, management has elected to early adopt the amendments that allow for removal of certain disclosure requirements. Management plans to adopt the amendments that require additional fair value measurement disclosures for annual periods beginning after December 15, 2019, and

ANNUAL REPORT DECEMBER 31, 2018 27

Notes to Financial Statements (Cont.)

interim periods within those annual periods. Management is currently evaluating the impact of these changes on the financial statements.

In August 2018, the U.S. Securities and Exchange Commission (“SEC”) adopted amendments to certain rules and forms for the purpose of disclosure update and simplification. The compliance date for these amendments is 30 days after date of publication in the Federal Register, which was on October 4, 2018. Management has adopted these amendments and the changes are incorporated throughout all periods presented in the financial statements.

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

(a) Investment Valuation Policies  The price of the Portfolio’s shares is based on the Portfolio’s NAV. The NAV of the Portfolio, or each of its share classes, as applicable, is determined by dividing the total value of portfolio investments and other assets, less any liabilities attributable to the Portfolio or class, by the total number of shares outstanding of the Portfolio or class.

On each day that the New York Stock Exchange (“NYSE”) is open, Portfolio shares are ordinarily valued as of the close of regular trading (“NYSE Close”). Information that becomes known to the Portfolio or its agents after the time as of which NAV has been calculated on a particular day will not generally be used to retroactively adjust the price of a security or the NAV determined earlier that day. The Portfolio reserves the right to change the time as of which its NAV is calculated if the Portfolio closes earlier, or as permitted by the SEC.

For purposes of calculating a NAV, portfolio securities and other assets for which market quotes are readily available are valued at market value. Market value is generally determined on the basis of official closing prices or the last reported sales prices, or if no sales are reported, based on quotes obtained from established market makers or prices (including evaluated prices) supplied by the Portfolio’s approved pricing services, quotation reporting systems and other third-party sources (together, “Pricing Services”). The Portfolio will normally use pricing data for domestic equity securities received shortly after the NYSE Close and does not normally take into account trading, clearances or settlements that take place after the NYSE Close. If market value pricing is used, a foreign (non-U.S.) equity security traded on a foreign exchange or on more than one exchange is typically valued using pricing information from the exchange considered by the Adviser to be the primary exchange. A foreign (non-U.S.) equity security will be valued as of the close of trading on the foreign exchange, or the NYSE Close, if the NYSE Close occurs before the end of trading on the foreign exchange. Domestic and foreign (non-U.S.) fixed income securities, non-exchange traded derivatives, and equity options are normally valued on the basis of quotes obtained from brokers and

dealers or Pricing Services using data reflecting the earlier closing of the principal markets for those securities. Prices obtained from Pricing Services may be based on, among other things, information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics. Certain fixed income securities purchased on a delayed-delivery basis are marked to market daily until settlement at the forward settlement date. Exchange-traded options, except equity options, futures and options on futures are valued at the settlement price determined by the relevant exchange. Swap agreements are valued on the basis of bid quotes obtained from brokers and dealers or market-based prices supplied by Pricing Services. The Portfolio’s investments in open-end management investment companies, other than exchange-traded funds (“ETFs”), are valued at the NAVs of such investments. Open-end management investment companies may include affiliated funds.

If a foreign (non-U.S.) equity security’s value has materially changed after the close of the security’s primary exchange or principal market but before the NYSE Close, the security may be valued at fair value based on procedures established and approved by the Board of Trustees of the Trust (the “Board”). Foreign (non-U.S.) equity securities that do not trade when the NYSE is open are also valued at fair value. With respect to foreign (non-U.S.) equity securities, the Portfolio may determine the fair value of investments based on information provided by Pricing Services and other third-party vendors, which may recommend fair value or adjustments with reference to other securities, indices or assets. In considering whether fair valuation is required and in determining fair values, the Portfolio may, among other things, consider significant events (which may be considered to include changes in the value of U.S. securities or securities indices) that occur after the close of the relevant market and before the NYSE Close. The Portfolio may utilize modeling tools provided by third-party vendors to determine fair values of foreign (non-U.S.) securities. For these purposes, any movement in the applicable reference index or instrument (“zero trigger”) between the earlier close of the applicable foreign market and the NYSE Close may be deemed to be a significant event, prompting the application of the pricing model (effectively resulting in daily fair valuations). Foreign exchanges may permit trading in foreign (non-U.S.) equity securities on days when the Trust is not open for business, which may result in the Portfolio’s portfolio investments being affected when shareholders are unable to buy or sell shares.

Senior secured floating rate loans for which an active secondary market exists to a reliable degree will be valued at the mean of the last available bid/ask prices in the market for such loans, as provided by a Pricing Service. Senior secured floating rate loans for which an active secondary market does not exist to a reliable degree will be valued at

28 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

fair value, which is intended to approximate market value. In valuing a senior secured floating rate loan at fair value, the factors considered may include, but are not limited to, the following: (a) the creditworthiness of the borrower and any intermediate participants, (b) the terms of the loan, (c) recent prices in the market for similar loans, if any, and (d) recent prices in the market for instruments of similar quality, rate, period until next interest rate reset and maturity.

Investments valued in currencies other than the U.S. dollar are converted to the U.S. dollar using exchange rates obtained from Pricing Services. As a result, the value of such investments and, in turn, the NAV of the Portfolio’s shares may be affected by changes in the value of currencies in relation to the U.S. dollar. The value of investments traded in markets outside the United States or denominated in currencies other than the U.S. dollar may be affected significantly on a day that the Trust is not open for business. As a result, to the extent that the Portfolio holds foreign (non-U.S.) investments, the value of those investments may change at times when shareholders are unable to buy or sell shares and the value of such investments will be reflected in the Portfolio’s next calculated NAV.

Investments for which market quotes or market based valuations are not readily available are valued at fair value as determined in good faith by the Board or persons acting at their direction. The Board has adopted methods for valuing securities and other assets in circumstances where market quotes are not readily available, and has delegated to the Adviser the responsibility for applying the fair valuation methods. In the event that market quotes or market based valuations are not readily available, and the security or asset cannot be valued pursuant to a Board approved valuation method, the value of the security or asset will be determined in good faith by the Board. Market quotes are considered not readily available in circumstances where there is an absence of current or reliable market-based data (e.g., trade information, bid/ask information, indicative market quotations (“Broker Quotes”), Pricing Services’ prices), including where events occur after the close of the relevant market, but prior to the NYSE Close, that materially affect the values of the Portfolio’s securities or assets. In addition, market quotes are considered not readily available when, due to extraordinary circumstances, the exchanges or markets on which the securities trade do not open for trading for the entire day and no other market prices are available. The Board has delegated, to the Adviser, the responsibility for monitoring significant events that may materially affect the values of the Portfolio’s securities or assets and for determining whether the value of the applicable securities or assets should be reevaluated in light of such significant events.

When the Portfolio uses fair valuation to determine the value of a portfolio security or other asset for purposes of calculating its NAV,

such investments will not be priced on the basis of quotes from the primary market in which they are traded, but rather may be priced by another method that the Board or persons acting at their direction believe reflects fair value. Fair valuation may require subjective determinations about the value of a security. While the Trust’s policy is intended to result in a calculation of the Portfolio’s NAV that fairly reflects security values as of the time of pricing, the Trust cannot ensure that fair values determined by the Board or persons acting at their direction would accurately reflect the price that the Portfolio could obtain for a security if it were to dispose of that security as of the time of pricing (for instance, in a forced or distressed sale). The prices used by the Portfolio may differ from the value that would be realized if the securities were sold. The Portfolio’s use of fair valuation may also help to deter “stale price arbitrage” as discussed under the “Frequent or Excessive Purchases, Exchanges and Redemptions” section in the Portfolio’s prospectus.

(b) Fair Value Hierarchy  U.S. GAAP describes fair value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into levels (Level 1, 2, or 3). The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Levels 1, 2, and 3 of the fair value hierarchy are defined as follows:

^∎  Level 1 — Quoted prices in active markets or exchanges for identical assets and liabilities.

^∎  Level 2 — Significant other observable inputs, which may include, but are not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market corroborated inputs.

^∎  Level 3 — Significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, which may include assumptions made by the Board or persons acting at their direction that are used in determining the fair value of investments.

Assets or liabilities categorized as Level 2 or 3 as of period end have been transferred between Levels 2 and 3 since the prior period due to changes in the method utilized in valuing the investments. Transfers from Level 3 to Level 2 are a result of the availability of current and

ANNUAL REPORT DECEMBER 31, 2018 29

Notes to Financial Statements (Cont.)

reliable market-based data provided by Pricing Services or other valuation techniques which utilize significant observable inputs. In accordance with the requirements of U.S. GAAP, the amounts of transfers into and out of Level 3, if material, are disclosed in the Notes to Schedule of Investments for the Portfolio.

For fair valuations using significant unobservable inputs, U.S. GAAP requires a reconciliation of the beginning to ending balances for reported fair values that presents changes attributable to realized gain (loss), unrealized appreciation (depreciation), purchases and sales, accrued discounts (premiums), and transfers into and out of the Level 3 category during the period. The end of period value is used for the transfers between Levels of the Portfolio’s assets and liabilities. Additionally, U.S. GAAP requires quantitative information regarding the significant unobservable inputs used in the determination of fair value of assets or liabilities categorized as Level 3 in the fair value hierarchy. In accordance with the requirements of U.S. GAAP, a fair value hierarchy, and if material, a Level 3 reconciliation and details of significant unobservable inputs, have been included in the Notes to Schedule of Investments for the Portfolio.

(c) Valuation Techniques and the Fair Value Hierarchy

Level 1 and Level 2 trading assets and trading liabilities, at fair value  The valuation methods (or “techniques”) and significant inputs used in determining the fair values of portfolio securities or other assets and liabilities categorized as Level 1 and Level 2 of the fair value hierarchy are as follows:

Fixed income securities including corporate, convertible and municipal bonds and notes, U.S. government agencies, U.S. treasury obligations, sovereign issues, bank loans, convertible preferred securities and non-U.S. bonds are normally valued on the basis of quotes obtained from brokers and dealers or Pricing Services that use broker-dealer quotations, reported trades or valuation estimates from their internal pricing models. The Pricing Services’ internal models use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar assets. Securities that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

Fixed income securities purchased on a delayed-delivery basis or as a repurchase commitment in a sale-buyback transaction are marked to market daily until settlement at the forward settlement date and are categorized as Level 2 of the fair value hierarchy.

Mortgage-related and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also normally valued by Pricing Services that use broker-dealer quotations, reported trades or valuation estimates from their

internal pricing models. The pricing models for these securities usually consider tranche-level attributes, current market data, estimated cash flows and market-based yield spreads for each tranche, and incorporate deal collateral performance, as available. Mortgage-related and asset-backed securities that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

Common stocks, ETFs, exchange-traded notes and financial derivative instruments, such as futures contracts, rights and warrants, or options on futures that are traded on a national securities exchange, are stated at the last reported sale or settlement price on the day of valuation. To the extent these securities are actively traded and valuation adjustments are not applied, they are categorized as Level 1 of the fair value hierarchy.

Valuation adjustments may be applied to certain securities that are solely traded on a foreign exchange to account for the market movement between the close of the foreign market and the NYSE Close. These securities are valued using Pricing Services that consider the correlation of the trading patterns of the foreign security to the intraday trading in the U.S. markets for investments. Securities using these valuation adjustments are categorized as Level 2 of the fair value hierarchy. Preferred securities and other equities traded on inactive markets or valued by reference to similar instruments are also categorized as Level 2 of the fair value hierarchy.

Investments in registered open-end investment companies (other than ETFs) will be valued based upon the NAVs of such investments and are categorized as Level 1 of the fair value hierarchy. Investments in unregistered open-end investment companies will be calculated based upon the NAVs of such investments and are considered Level 1 provided that the NAVs are observable, calculated daily and are the value at which both purchases and sales will be conducted.

Equity exchange-traded options and over the counter financial derivative instruments, such as forward foreign currency contracts and options contracts derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors. These contracts are normally valued on the basis of quotes obtained from a quotation reporting system, established market makers or Pricing Services (normally determined as of the NYSE Close). Depending on the product and the terms of the transaction, financial derivative instruments can be valued by Pricing Services using a series of techniques, including simulation pricing models. The pricing models use inputs that are observed from actively quoted markets such as quoted prices, issuer details, indices, bid/ask spreads, interest rates, implied volatilities, yield curves, dividends and exchange rates. Financial derivative instruments that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

30 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

Centrally cleared swaps and over the counter swaps derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors. They are valued using a broker-dealer bid quotation or on market-based prices provided by Pricing Services (normally determined as of the NYSE close). Centrally cleared swaps and over the counter swaps can be valued by Pricing Services using a series of techniques, including simulation pricing models. The pricing models may use inputs that are observed from actively quoted markets such as the overnight index swap rate (“OIS”), London Interbank Offered Rate (“LIBOR”) forward rate, interest rates, yield curves and credit spreads. These securities are categorized as Level 2 of the fair value hierarchy.

Level 3 trading assets and trading liabilities, at fair value  When a fair valuation method is applied by the Adviser that uses significant unobservable inputs, investments will be priced by a method that the Board or persons acting at their direction believe reflects fair value and are categorized as Level 3 of the fair value hierarchy. The valuation techniques and significant inputs used in determining the fair values of portfolio assets and liabilities categorized as Level 3 of the fair value hierarchy are as follows:

Proxy pricing procedures set the base price of a fixed income security and subsequently adjust the price proportionally to market value changes of a pre-determined security deemed to be comparable in duration, generally a U.S. Treasury or sovereign note based on country of issuance. The base price may be a broker-dealer quote, transaction price, or an internal value as derived by analysis of market data. The base price of the security may be reset on a periodic basis based on the availability of market data and procedures approved by the Valuation Oversight Committee. Significant changes in the unobservable inputs of the proxy pricing process (the base price) would result in direct and proportional changes in the fair value of the security. These securities are categorized as Level 3 of the fair value hierarchy.

Short-term debt instruments (such as commercial paper) having a remaining maturity of 60 days or less may be valued at amortized cost, so long as the amortized cost value of such short-term debt instruments is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. These securities are categorized as Level 2 or Level 3 of the fair value hierarchy depending on the source of the base price.

4. SECURITIES AND OTHER INVESTMENTS

(a) Investments in Affiliates

The Portfolio may invest in the PIMCO Short Asset Portfolio and the PIMCO Short-Term Floating NAV Portfolio III (“Central Funds”) to the extent permitted by the Act and rules thereunder. The Central Funds are registered investment companies created for use solely by the series of the Trust and other series of registered investment companies advised by the Adviser, in connection with their cash management activities. The main investments of the Central Funds are money market and short maturity fixed income instruments. The Central Funds may incur expenses related to their investment activities, but do not pay Investment Advisory Fees or Supervisory and Administrative Fees to the Adviser. The Central Funds are considered to be affiliated with the Portfolio. The table below shows the Portfolio’s transactions in and earnings from investments in the affiliated Funds for the period ended December 31, 2018 (amounts in thousands^†):

Investment in PIMCO Short-Term Floating NAV Portfolio III

Market Value 12/31/2017		Purchases at Cost		Proceeds from Sales			Net Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)			Market Value 12/31/2018		Dividend Income(1)		Realized Net Capital Gain Distributions(1)
$	8,413	$	96,548	$	(103,600	)	$	0	$	(2	)	$	1,359	$	248	$	0

^†   A zero balance may reflect actual amounts rounding to less than one thousand.

⁽¹⁾  The tax characterization of distributions is determined in accordance with Federal income tax regulations and may contain a return of capital. The actual tax characterization of distributions received is determined at the end of the fiscal year of the affiliated fund. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

(b) Investments in Securities

The Portfolio may utilize the investments and strategies described below to the extent permitted by the Portfolio’s investment policies.

Loans and Other Indebtedness, Loan Participations and Assignments are direct debt instruments which are interests in amounts owed to lenders or lending syndicates by corporate, governmental, or other borrowers. The Portfolio’s investments in loans

may be in the form of participations in loans or assignments of all or a portion of loans from third parties or investments in or originations of loans by the Portfolio. A loan is often administered by a bank or other financial institution (the “agent”) that acts as agent for all holders. The agent administers the terms of the loan, as specified in the loan agreement. The Portfolio may invest in multiple series or tranches of a loan, which may have varying terms and carry different associated risks. When the Portfolio purchases assignments from agents it acquires

ANNUAL REPORT DECEMBER 31, 2018 31

Notes to Financial Statements (Cont.)

direct rights against the borrowers of the loans. These loans may include participations in bridge loans, which are loans taken out by borrowers for a short period (typically less than one year) pending arrangement of more permanent financing through, for example, the issuance of bonds, frequently high yield bonds issued for the purpose of acquisitions.

The types of loans and related investments in which the Portfolio may invest include, among others, senior loans, subordinated loans (including second lien loans, B-Notes and mezzanine loans), whole loans, commercial real estate and other commercial loans and structured loans. The Portfolio may originate loans or acquire direct interests in loans through primary loan distributions and/or in private transactions. In the case of subordinated loans, there may be significant indebtedness ranking ahead of the borrower’s obligation to the holder of such a loan, including in the event of the borrower’s insolvency. Mezzanine loans are typically secured by a pledge of an equity interest in the mortgage borrower that owns the real estate rather than an interest in a mortgage.

Investments in loans may include unfunded loan commitments, which are contractual obligations for funding. Unfunded loan commitments may include revolving credit facilities, which may obligate the Portfolio to supply additional cash to the borrower on demand. Unfunded loan commitments represent a future obligation in full, even though a percentage of the committed amount may not be utilized by the borrower. When investing in a loan participation, the Portfolio has the right to receive payments of principal, interest and any fees to which it is entitled only from the agent selling the loan agreement and only upon receipt of payments by the agent from the borrower. The Portfolio may receive a commitment fee based on the undrawn portion of the underlying line of credit portion of a loan. In certain circumstances, the Portfolio may receive a penalty fee upon the prepayment of a loan by a borrower. Fees earned or paid are recorded as a component of interest income or interest expense, respectively, on the Statement of Operations. Unfunded loan commitments are reflected as a liability on the Statement of Assets and Liabilities.

Mortgage-Related and Other Asset-Backed Securities directly or indirectly represent a participation in, or are secured by and payable from, loans on real property. Mortgage-related securities are created from pools of residential or commercial mortgage loans, including mortgage loans made by savings and loan institutions, mortgage bankers, commercial banks and others. These securities provide a monthly payment which consists of both interest and principal. Interest may be determined by fixed or adjustable rates. The rate of prepayments on underlying mortgages will affect the price and volatility of a mortgage-related security, and may have the effect of shortening or extending the effective duration of the security relative to what was anticipated at the time of purchase. The timely payment of principal

and interest of certain mortgage-related securities is guaranteed with the full faith and credit of the U.S. Government. Pools created and guaranteed by non-governmental issuers, including government-sponsored corporations, may be supported by various forms of insurance or guarantees, but there can be no assurance that private insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Many of the risks of investing in mortgage-related securities secured by commercial mortgage loans reflect the effects of local and other economic conditions on real estate markets, the ability of tenants to make lease payments, and the ability of a property to attract and retain tenants. These securities may be less liquid and may exhibit greater price volatility than other types of mortgage-related or other asset-backed securities. Other asset-backed securities are created from many types of assets, including, but not limited to, auto loans, accounts receivable, such as credit card receivables and hospital account receivables, home equity loans, student loans, boat loans, mobile home loans, recreational vehicle loans, manufactured housing loans, aircraft leases, computer leases and syndicated bank loans.

Collateralized Mortgage Obligations (“CMOs”) are debt obligations of a legal entity that are collateralized by whole mortgage loans or private mortgage bonds and divided into classes. CMOs are structured into multiple classes, often referred to as “tranches”, with each class bearing a different stated maturity and entitled to a different schedule for payments of principal and interest, including prepayments. CMOs may be less liquid and may exhibit greater price volatility than other types of mortgage-related or asset-backed securities.

Payment In-Kind Securities (“PIKs”) may give the issuer the option at each interest payment date of making interest payments in either cash and/or additional debt securities. Those additional debt securities usually have the same terms, including maturity dates and interest rates, and associated risks as the original bonds. The daily market quotations of the original bonds may include the accrued interest (referred to as a dirty price) and require a pro rata adjustment from the unrealized appreciation (depreciation) on investments to interest receivable on the Statement of Assets and Liabilities.

Perpetual Bonds are fixed income securities with no maturity date but pay a coupon in perpetuity (with no specified ending or maturity date). Unlike typical fixed income securities, there is no obligation for perpetual bonds to repay principal. The coupon payments, however, are mandatory. While perpetual bonds have no maturity date, they may have a callable date in which the perpetuity is eliminated and the issuer may return the principal received on the specified call date. Additionally, a perpetual bond may have additional features, such as interest rate increases at periodic dates or an increase as of a predetermined point in the future.

32 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

Securities Issued by U.S. Government Agencies or Government-Sponsored Enterprises are obligations of and, in certain cases, guaranteed by, the U.S. Government, its agencies or instrumentalities. Some U.S. Government securities, such as Treasury bills, notes and bonds, and securities guaranteed by the Government National Mortgage Association (“GNMA” or “Ginnie Mae”), are supported by the full faith and credit of the U.S. Government; others, such as those of the Federal Home Loan Banks, are supported by the right of the issuer to borrow from the U.S. Department of the Treasury (the “U.S. Treasury”); and others, such as those of the Federal National Mortgage Association (“FNMA” or “Fannie Mae”), are supported by the discretionary authority of the U.S. Government to purchase the agency’s obligations. U.S. Government securities may include zero coupon securities. Zero coupon securities do not distribute interest on a current basis and tend to be subject to a greater risk than interest-paying securities.

Government-related guarantors (i.e., not backed by the full faith and credit of the U.S. Government) include FNMA and the Federal Home Loan Mortgage Corporation (“FHLMC” or “Freddie Mac”). FNMA is a government-sponsored corporation. FNMA purchases conventional (i.e., not insured or guaranteed by any government agency) residential mortgages from a list of approved seller/servicers which include state and federally chartered savings and loan associations, mutual savings banks, commercial banks and credit unions and mortgage bankers. Pass-through securities issued by FNMA are guaranteed as to timely payment of principal and interest by FNMA, but are not backed by the full faith and credit of the U.S. Government. FHLMC issues Participation Certificates (“PCs”), which are pass-through securities, each representing an undivided interest in a pool of residential mortgages. FHLMC guarantees the timely payment of interest and ultimate collection of principal, but PCs are not backed by the full faith and credit of the U.S. Government.

5. BORROWINGS AND OTHER FINANCING TRANSACTIONS

The Portfolio may enter into the borrowings and other financing transactions described below to the extent permitted by the Portfolio’s investment policies.

The following disclosures contain information on the Portfolio’s ability to lend or borrow cash or securities to the extent permitted under the Act, which may be viewed as borrowing or financing transactions by the Portfolio. The location of these instruments in the Portfolio’s financial statements is described below.

(a) Repurchase Agreements  Under the terms of a typical repurchase agreement, the Portfolio purchases an underlying debt obligation (collateral) subject to an obligation of the seller to repurchase, and the

Portfolio to resell, the obligation at an agreed-upon price and time. In an open maturity repurchase agreement, there is no pre-determined repurchase date and the agreement can be terminated by the Portfolio or counterparty at any time. The underlying securities for all repurchase agreements are held by the Portfolio’s custodian or designated subcustodians under tri-party repurchase agreements and in certain instances will remain in custody with the counterparty. The market value of the collateral must be equal to or exceed the total amount of the repurchase obligations, including interest. Repurchase agreements, if any, including accrued interest, are included on the Statement of Assets and Liabilities. Interest earned is recorded as a component of interest income on the Statement of Operations. In periods of increased demand for collateral, the Portfolio may pay a fee for the receipt of collateral, which may result in interest expense to the Portfolio.

(b) Reverse Repurchase Agreements  In a reverse repurchase agreement, the Portfolio delivers a security in exchange for cash to a financial institution, the counterparty, with a simultaneous agreement to repurchase the same or substantially the same security at an agreed upon price and date. In an open maturity reverse repurchase agreement, there is no pre-determined repurchase date and the agreement can be terminated by the Portfolio or counterparty at any time. The Portfolio is entitled to receive principal and interest payments, if any, made on the security delivered to the counterparty during the term of the agreement. Cash received in exchange for securities delivered plus accrued interest payments to be made by the Portfolio to counterparties are reflected as a liability on the Statement of Assets and Liabilities. Interest payments made by the Portfolio to counterparties are recorded as a component of interest expense on the Statement of Operations. In periods of increased demand for the security, the Portfolio may receive a fee for use of the security by the counterparty, which may result in interest income to the Portfolio. The Portfolio will segregate assets determined to be liquid by the Adviser or will otherwise cover its obligations under reverse repurchase agreements.

6. FINANCIAL DERIVATIVE INSTRUMENTS

The Portfolio may enter into the financial derivative instruments described below to the extent permitted by the Portfolio’s investment policies.

The following disclosures contain information on how and why the Portfolio uses financial derivative instruments, and how financial derivative instruments affect the Portfolio’s financial position, results of operations and cash flows. The location and fair value amounts of these instruments on the Statement of Assets and Liabilities and the net realized gain (loss) and net change in unrealized appreciation (depreciation) on the Statement of Operations, each categorized by

ANNUAL REPORT DECEMBER 31, 2018 33

Notes to Financial Statements (Cont.)

type of financial derivative contract and related risk exposure, are included in a table in the Notes to Schedule of Investments. The financial derivative instruments outstanding as of period end and the amounts of net realized gain (loss) and net change in unrealized appreciation (depreciation) on financial derivative instruments during the period, as disclosed in the Notes to Schedule of Investments, serve as indicators of the volume of financial derivative activity for the Portfolio.

(a) Forward Foreign Currency Contracts may be engaged, in connection with settling planned purchases or sales of securities, to hedge the currency exposure associated with some or all of the Portfolio’s securities or as part of an investment strategy. A forward foreign currency contract is an agreement between two parties to buy and sell a currency at a set price on a future date. The market value of a forward foreign currency contract fluctuates with changes in foreign currency exchange rates. Forward foreign currency contracts are marked to market daily, and the change in value is recorded by the Portfolio as an unrealized gain (loss). Realized gains (losses) are equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed and are recorded upon delivery or receipt of the currency. These contracts may involve market risk in excess of the unrealized gain (loss) reflected on the Statement of Assets and Liabilities. In addition, the Portfolio could be exposed to risk if the counterparties are unable to meet the terms of the contracts or if the value of the currency changes unfavorably to the U.S. dollar. To mitigate such risk, cash or securities may be exchanged as collateral pursuant to the terms of the underlying contracts.

(b) Futures Contracts are agreements to buy or sell a security or other asset for a set price on a future date. The Portfolio may use futures contracts to manage its exposure to the securities markets or to movements in interest rates and currency values. The primary risks associated with the use of futures contracts are the imperfect correlation between the change in market value of the securities held by the Portfolio and the prices of futures contracts and the possibility of an illiquid market. Futures contracts are valued based upon their quoted daily settlement prices. Upon entering into a futures contract, the Portfolio is required to deposit with its futures broker an amount of cash, U.S. Government and Agency Obligations, or select sovereign debt, in accordance with the initial margin requirements of the broker or exchange. Futures contracts are marked to market daily and based on such movements in the price of the contracts, an appropriate payable or receivable for the change in value may be posted or collected by the Portfolio (“Futures Variation Margin”). Gains (losses) are recognized but not considered realized until the contracts expire or close. Futures contracts involve, to varying degrees, risk of loss in

excess of the Futures Variation Margin included within exchange traded or centrally cleared financial derivative instruments on the Statement of Assets and Liabilities.

(c) Options Contracts may be written or purchased to enhance returns or to hedge an existing position or future investment. The Portfolio may write call and put options on securities and financial derivative instruments it owns or in which it may invest. Writing put options tends to increase the Portfolio’s exposure to the underlying instrument. Writing call options tends to decrease the Portfolio’s exposure to the underlying instrument. When the Portfolio writes a call or put, an amount equal to the premium received is recorded and subsequently marked to market to reflect the current value of the option written. These amounts are included on the Statement of Assets and Liabilities. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options which are exercised or closed are added to the proceeds or offset against amounts paid on the underlying futures, swap, security or currency transaction to determine the realized gain (loss). Certain options may be written with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. The Portfolio as a writer of an option has no control over whether the underlying instrument may be sold (“call”) or purchased (“put”) and as a result bears the market risk of an unfavorable change in the price of the instrument underlying the written option. There is the risk the Portfolio may not be able to enter into a closing transaction because of an illiquid market.

Purchasing call options tends to increase the Portfolio’s exposure to the underlying instrument. Purchasing put options tends to decrease the Portfolio’s exposure to the underlying instrument. The Portfolio pays a premium which is included as an asset on the Statement of Assets and Liabilities and subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options which expire are treated as realized losses. Certain options may be purchased with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. The risk associated with purchasing put and call options is limited to the premium paid. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the underlying investment transaction to determine the realized gain (loss) when the underlying transaction is executed.

Credit Default Swaptions may be written or purchased to hedge exposure to the credit risk of an investment without making a commitment to the underlying instrument. A credit default swaption is an option to sell or buy credit protection on a specific reference by entering into a pre-defined swap agreement by some specified date in the future.

34 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

Foreign Currency Options may be written or purchased to be used as a short or long hedge against possible variations in foreign exchange rates or to gain exposure to foreign currencies.

Inflation-Capped Options may be written or purchased to enhance returns or for hedging opportunities. The purpose of purchasing inflation-capped options is to protect the Portfolio from inflation erosion above a certain rate on a given notional exposure. A floor can be used to give downside protection to investments in inflation-linked products.

Options on Exchange-Traded Futures Contracts (“Futures Option”) may be written or purchased to hedge an existing position or future investment, for speculative purposes or to manage exposure to market movements. A Futures Option is an option contract in which the underlying instrument is a single futures contract.

(d) Swap Agreements are bilaterally negotiated agreements between the Portfolio and a counterparty to exchange or swap investment cash flows, assets, foreign currencies or market-linked returns at specified, future intervals. Swap agreements may be privately negotiated in the over the counter market (“OTC swaps”) or may be cleared through a third party, known as a central counterparty or derivatives clearing organization (“Centrally Cleared Swaps”). The Portfolio may enter into asset, credit default, cross-currency, interest rate, total return, variance and other forms of swap agreements to manage its exposure to credit, currency, interest rate, commodity, equity and inflation risk. In connection with these agreements, securities or cash may be identified as collateral or margin in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default or bankruptcy/insolvency.

Centrally Cleared Swaps are marked to market daily based upon valuations as determined from the underlying contract or in accordance with the requirements of the central counterparty or derivatives clearing organization. Changes in market value, if any, are reflected as a component of net change in unrealized appreciation (depreciation) on the Statement of Operations. Daily changes in valuation of centrally cleared swaps (“Swap Variation Margin”), if any, are disclosed within centrally cleared financial derivative instruments on the Statement of Assets and Liabilities. Centrally Cleared and OTC swap payments received or paid at the beginning of the measurement period are included on the Statement of Assets and Liabilities and represent premiums paid or received upon entering into the swap agreement to compensate for differences between the stated terms of the swap agreement and prevailing market conditions (credit spreads, currency exchange rates, interest rates, and other relevant factors). Upfront premiums received (paid) are initially recorded as liabilities (assets) and subsequently marked to market to reflect the current value of the swap.

These upfront premiums are recorded as realized gain (loss) on the Statement of Operations upon termination or maturity of the swap. A liquidation payment received or made at the termination of the swap is recorded as realized gain (loss) on the Statement of Operations. Net periodic payments received or paid by the Portfolio are included as part of realized gain (loss) on the Statement of Operations.

For purposes of applying certain of the Portfolio’s investment policies and restrictions, swap agreements, like other derivative instruments, may be valued by the Portfolio at market value, notional value or full exposure value. In the case of a credit default swap, in applying certain of the Portfolio’s investment policies and restrictions, the Portfolio will value the credit default swap at its notional value or its full exposure value (i.e., the sum of the notional amount for the contract plus the market value), but may value the credit default swap at market value for purposes of applying certain of the Portfolio’s other investment policies and restrictions. For example, the Portfolio may value credit default swaps at full exposure value for purposes of the Portfolio’s credit quality guidelines (if any) because such value in general better reflects the Portfolio’s actual economic exposure during the term of the credit default swap agreement. As a result, the Portfolio may, at times, have notional exposure to an asset class (before netting) that is greater or lesser than the stated limit or restriction noted in the Portfolio’s prospectus. In this context, both the notional amount and the market value may be positive or negative depending on whether the Portfolio is selling or buying protection through the credit default swap. The manner in which certain securities or other instruments are valued by the Portfolio for purposes of applying investment policies and restrictions may differ from the manner in which those investments are valued by other types of investors.

Entering into swap agreements involves, to varying degrees, elements of interest, credit, market and documentation risk in excess of the amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of contractual terms in the agreements and that there may be unfavorable changes in interest rates or the values of the asset upon which the swap is based.

The Portfolio’s maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from the counterparty over the contract’s remaining life, to the extent that amount is positive. The risk may be mitigated by having a master netting arrangement between the Portfolio and the counterparty and by the posting of collateral to the Portfolio to cover the Portfolio’s exposure to the counterparty.

ANNUAL REPORT DECEMBER 31, 2018 35

Notes to Financial Statements (Cont.)

To the extent the Portfolio has a policy to limit the net amount owed to or to be received from a single counterparty under existing swap agreements, such limitation only applies to counterparties to OTC swaps and does not apply to centrally cleared swaps where the counterparty is a central counterparty or derivatives clearing organization.

Credit Default Swap Agreements on corporate, loan, sovereign, U.S. municipal or U.S. Treasury issues are entered into to provide a measure of protection against defaults of the issuers (i.e., to reduce risk where the Portfolio owns or has exposure to the referenced obligation) or to take an active long or short position with respect to the likelihood of a particular issuer’s default. Credit default swap agreements involve one party making a stream of payments (referred to as the buyer of protection) to another party (the seller of protection) in exchange for the right to receive a specified return in the event that the referenced entity, obligation or index, as specified in the swap agreement, undergoes a certain credit event. As a seller of protection on credit default swap agreements, the Portfolio will generally receive from the buyer of protection a fixed rate of income throughout the term of the swap provided that there is no credit event. As the seller, the Portfolio would effectively add leverage to its portfolio because, in addition to its total net assets, the Portfolio would be subject to investment exposure on the notional amount of the swap.

If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. If the Portfolio is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. Recovery values are estimated by market makers considering either industry standard recovery rates or entity specific factors and considerations until a credit event occurs. If a credit event has occurred, the recovery value is determined by a facilitated auction whereby a minimum number of allowable broker bids, together with a specified valuation method, are used to calculate the settlement value. The

ability to deliver other obligations may result in a cheapest-to-deliver option (the buyer of protection’s right to choose the deliverable obligation with the lowest value following a credit event).

Credit default swap agreements on credit indices involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising the credit index. A credit index is a basket of credit instruments or exposures designed to be representative of some part of the credit market as a whole. These indices are made up of reference credits that are judged by a poll of dealers to be the most liquid entities in the credit default swap market based on the sector of the index. Components of the indices may include, but are not limited to, investment grade securities, high yield securities, asset-backed securities, emerging markets, and/or various credit ratings within each sector. Credit indices are traded using credit default swaps with standardized terms including a fixed spread and standard maturity dates. An index credit default swap references all the names in the index, and if there is a default, the credit event is settled based on that name’s weight in the index. The composition of the indices changes periodically, usually every six months, and for most indices, each name has an equal weight in the index. The Portfolio may use credit default swaps on credit indices to hedge a portfolio of credit default swaps or bonds, which is less expensive than it would be to buy many credit default swaps to achieve a similar effect. Credit default swaps on indices are instruments for protecting investors owning bonds against default, and traders use them to speculate on changes in credit quality.

Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate, loan, sovereign, U.S. municipal or U.S. Treasury issues as of period end, if any, are disclosed in the Notes to Schedule of Investments. They serve as an indicator of the current status of payment/performance risk and represent the likelihood or risk of default for the reference entity. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. For credit default swap agreements on asset-backed securities and credit indices, the quoted market prices and resulting values serve as the indicator of the current status of the payment/performance risk. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

36 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

The maximum potential amount of future payments (undiscounted) that the Portfolio as a seller of protection could be required to make under a credit default swap agreement equals the notional amount of the agreement. Notional amounts of each individual credit default swap agreement outstanding as of period end for which the Portfolio is the seller of protection are disclosed in the Notes to Schedule of Investments. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Portfolio for the same referenced entity or entities.

Interest Rate Swap Agreements may be entered into to help hedge against interest rate risk exposure and to maintain the Portfolio’s ability to generate income at prevailing market rates. The value of the fixed rate bonds that the Portfolio holds may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, the Portfolio may enter into interest rate swap agreements. Interest rate swap agreements involve the exchange by the Portfolio with another party for their respective commitment to pay or receive interest on the notional amount of principal. Certain forms of interest rate swap agreements may include: (i) interest rate caps, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates exceed a specified rate, or “cap”, (ii) interest rate floors, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates fall below a specified rate, or “floor”, (iii) interest rate collars, under which a party sells a cap and purchases a floor or vice versa in an attempt to protect itself against interest rate movements exceeding given minimum or maximum levels, (iv) callable interest rate swaps, under which the buyer pays an upfront fee in consideration for the right to early terminate the swap transaction in whole, at zero cost and at a predetermined date and time prior to the maturity date, (v) spreadlocks, which allow the interest rate swap users to lock in the forward differential (or spread) between the interest rate swap rate and a specified benchmark, or (vi) basis swaps, under which two parties can exchange variable interest rates based on different segments of money markets.

7. PRINCIPAL RISKS

The principal risks of investing in the Portfolio, which could adversely affect its net asset value, yield and total return, are listed below. Please see “Description of Principal Risks” in the Portfolio’s prospectus for a more detailed description of the risks of investing in the Portfolio.

Interest Rate Risk is the risk that fixed income securities will decline in value because of an increase in interest rates; a portfolio with a longer

average portfolio duration will be more sensitive to changes in interest rates than a portfolio with a shorter average portfolio duration.

Call Risk is the risk that an issuer may exercise its right to redeem a fixed income security earlier than expected (a call). Issuers may call outstanding securities prior to their maturity for a number of reasons (e.g., declining interest rates, changes in credit spreads and improvements in the issuer’s credit quality). If an issuer calls a security that the Portfolio has invested in, the Portfolio may not recoup the full amount of its initial investment and may be forced to reinvest in lower-yielding securities, securities with greater credit risks or securities with other, less favorable features.

Credit Risk is the risk that the Portfolio could lose money if the issuer or guarantor of a fixed income security, or the counterparty to a derivative contract, is unable or unwilling to meet its financial obligations.

High Yield Risk is the risk that high yield securities and unrated securities of similar credit quality (commonly known as “junk bonds”) are subject to greater levels of credit, call and liquidity risks. High yield securities are considered primarily speculative with respect to the issuer’s continuing ability to make principal and interest payments, and may be more volatile than higher-rated securities of similar maturity.

Market Risk is the risk that the value of securities owned by the Portfolio may go up or down, sometimes rapidly or unpredictably, due to factors affecting securities markets generally or particular industries.

Issuer Risk is the risk that the value of a security may decline for a reason directly related to the issuer, such as management performance, financial leverage and reduced demand for the issuer’s goods or services.

Liquidity Risk is the risk that a particular investment may be difficult to purchase or sell and that the Portfolio may be unable to sell illiquid securities at an advantageous time or price or achieve its desired level of exposure to a certain sector. Liquidity risk may result from the lack of an active market, reduced number and capacity of traditional market participants to make a market in fixed income securities, and may be magnified in a rising interest rate environment or other circumstances where investor redemptions from fixed income mutual funds may be higher than normal, causing increased supply in the market due to selling activity.

Derivatives Risk is the risk of investing in derivative instruments (such as futures, swaps and structured securities), including leverage, liquidity, interest rate, market, credit and management risks, mispricing or valuation complexity. Changes in the value of the derivative may not correlate perfectly with, and may be more sensitive to market events than, the underlying asset, rate or index, and the Portfolio could lose more than the initial amount invested. The Portfolio’s use of derivatives

ANNUAL REPORT DECEMBER 31, 2018 37

Notes to Financial Statements (Cont.)

may result in losses to the Portfolio, a reduction in the Portfolio’s returns and/or increased volatility. Over-the-counter (“OTC”) derivatives are also subject to the risk that a counterparty to the transaction will not fulfill its contractual obligations to the other party, as many of the protections afforded to centrally-cleared derivative transactions might not be available for OTC derivatives. For derivatives traded on an exchange or through a central counterparty, credit risk resides with the Portfolio’s clearing broker, or the clearinghouse itself, rather than with a counterparty in an OTC derivative transaction. Changes in regulation relating to a mutual fund’s use of derivatives and related instruments could potentially limit or impact the Portfolio’s ability to invest in derivatives, limit the Portfolio’s ability to employ certain strategies that use derivatives and/or adversely affect the value of derivatives and the Portfolio’s performance.

Equity Risk is the risk that the value of equity securities, such as common stocks and preferred securities, may decline due to general market conditions which are not specifically related to a particular company or to factors affecting a particular industry or industries. Equity securities generally have greater price volatility than fixed income securities.

Mortgage-Related and Other Asset-Backed Securities Risk is the risk of investing in mortgage-related and other asset-backed securities, including interest rate risk, extension risk, prepayment risk and credit risk.

Foreign (Non-U.S.) Investment Risk is the risk that investing in foreign (non-U.S.) securities may result in the Portfolio experiencing more rapid and extreme changes in value than a portfolio that invests exclusively in securities of U.S. companies, due to smaller markets, differing reporting, accounting and auditing standards, increased risk of delayed settlement of portfolio transactions or loss of certificates of portfolio securities, and the risk of unfavorable foreign government actions, including nationalization, expropriation or confiscatory taxation, currency blockage, or political changes or diplomatic developments. Foreign securities may also be less liquid and more difficult to value than securities of U.S. issuers.

Real Estate Risk is the risk that a Portfolio’s investments in Real Estate Investment Trusts (“REITs”) or real estate-linked derivative instruments will subject the Portfolio to risks similar to those associated with direct ownership of real estate, including losses from casualty or condemnation, and changes in local and general economic conditions, supply and demand, interest rates, zoning laws, regulatory limitations on rents, property taxes and operating expenses. A Portfolio’s investments in REITs or real estate-linked derivative instruments subject it to management and tax risks. In addition, privately traded REITs subject a Portfolio to liquidity and valuation risk.

Emerging Markets Risk is the risk of investing in emerging market securities, primarily increased foreign (non-U.S.) investment risk.

Sovereign Debt Risk is the risk that investments in fixed income instruments issued by sovereign entities may decline in value as a result of default or other adverse credit event resulting from an issuer’s inability or unwillingness to make principal or interest payments in a timely fashion.

Currency Risk is the risk that foreign (non-U.S.) currencies will change in value relative to the U.S. dollar and affect the Portfolio’s investments in foreign (non-U.S.) currencies or in securities that trade in, and receive revenues in, or in derivatives that provide exposure to, foreign (non-U.S.) currencies.

Leveraging Risk is the risk that certain transactions of the Portfolio, such as reverse repurchase agreements, loans of portfolio securities, and the use of when-issued, delayed delivery or forward commitment transactions, or derivative instruments, may give rise to leverage, magnifying gains and losses and causing the Portfolio to be more volatile than if it had not been leveraged. This means that leverage entails a heightened risk of loss.

Management Risk is the risk that the investment techniques and risk analyses applied by PIMCO will not produce the desired results and that legislative, regulatory, or tax restrictions, policies or developments may affect the investment techniques available to PIMCO and the individual portfolio manager in connection with managing the Portfolio. There is no guarantee that the investment objective of the Portfolio will be achieved.

Short Exposure Risk is the risk of entering into short sales, including the potential loss of more money than the actual cost of the investment, and the risk that the third party to the short sale will not fulfill its contractual obligations, causing a loss to the Portfolio.

8. MASTER NETTING ARRANGEMENTS

The Portfolio may be subject to various netting arrangements (“Master Agreements”) with select counterparties. Master Agreements govern the terms of certain transactions, and are intended to reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that is intended to improve legal certainty. Each type of Master Agreement governs certain types of transactions. Different types of transactions may be traded out of different legal entities or affiliates of a particular organization, resulting in the need for multiple agreements with a single counterparty. As the Master Agreements are specific to unique operations of different asset types, they allow the Portfolio to close out and net its total exposure to a counterparty in the event of a default

38 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

with respect to all the transactions governed under a single Master Agreement with a counterparty. For financial reporting purposes the Statement of Assets and Liabilities generally presents derivative assets and liabilities on a gross basis, which reflects the full risks and exposures prior to netting.

Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. Under most Master Agreements, collateral is routinely transferred if the total net exposure to certain transactions (net of existing collateral already in place) governed under the relevant Master Agreement with a counterparty in a given account exceeds a specified threshold, which typically ranges from zero to $250,000 depending on the counterparty and the type of Master Agreement. United States Treasury Bills and U.S. dollar cash are generally the preferred forms of collateral, although other securities may be used depending on the terms outlined in the applicable Master Agreement. Securities and cash pledged as collateral are reflected as assets on the Statement of Assets and Liabilities as either a component of Investments at value (securities) or Deposits with counterparty. Cash collateral received is not typically held in a segregated account and as such is reflected as a liability on the Statement of Assets and Liabilities as Deposits from counterparty. The market value of any securities received as collateral is not reflected as a component of NAV. The Portfolio’s overall exposure to counterparty risk can change substantially within a short period, as it is affected by each transaction subject to the relevant Master Agreement.

Master Repurchase Agreements and Global Master Repurchase Agreements (individually and collectively “Master Repo Agreements”) govern repurchase, reverse repurchase, and certain sale-buyback transactions between the Portfolio and select counterparties. Master Repo Agreements maintain provisions for, among other things, initiation, income payments, events of default, and maintenance of collateral. The market value of transactions under the Master Repo Agreement, collateral pledged or received, and the net exposure by counterparty as of period end are disclosed in the Notes to Schedule of Investments.

Master Securities Forward Transaction Agreements (“Master Forward Agreements”) govern certain forward settling transactions, such as TBA securities, delayed-delivery or certain sale-buyback transactions by and between the Portfolio and select counterparties. The Master Forward Agreements maintain provisions for, among other things, transaction initiation and confirmation, payment and transfer, events of default, termination, and maintenance of collateral. The market value of forward settling transactions, collateral pledged or received, and the net exposure by counterparty as of period end is disclosed in the Notes to Schedule of Investments.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Such transactions require posting of initial margin as determined by each relevant clearing agency which is segregated in an account at a futures commission merchant (“FCM”) registered with the Commodity Futures Trading Commission (“CFTC”). In the United States, counterparty risk may be reduced as creditors of an FCM cannot have a claim to Portfolio assets in the segregated account. Portability of exposure reduces risk to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives unless the parties have agreed to a separate arrangement in respect of portfolio margining. The market value or accumulated unrealized appreciation (depreciation), initial margin posted, and any unsettled variation margin as of period end are disclosed in the Notes to Schedule of Investments.

International Swaps and Derivatives Association, Inc. Master Agreements and Credit Support Annexes (“ISDA Master Agreements”) govern bilateral OTC derivative transactions entered into by the Portfolio with select counterparties. ISDA Master Agreements maintain provisions for general obligations, representations, agreements, collateral posting and events of default or termination. Events of termination include conditions that may entitle counterparties to elect to terminate early and cause settlement of all outstanding transactions under the applicable ISDA Master Agreement. Any election to terminate early could be material to the financial statements. In limited circumstances, the ISDA Master Agreement may contain additional provisions that add counterparty protection beyond coverage of existing daily exposure if the counterparty has a decline in credit quality below a predefined level. These amounts, if any, may be segregated with a third-party custodian. The market value of OTC financial derivative instruments, collateral received or pledged, and net exposure by counterparty as of period end are disclosed in the Notes to Schedule of Investments.

9. FEES AND EXPENSES

(a) Investment Advisory Fee  PIMCO is a majority-owned subsidiary of Allianz Asset Management of America L.P. (“Allianz Asset Management”) and serves as the Adviser to the Trust, pursuant to an investment advisory contract. The Adviser receives a monthly fee from the Portfolio at an annual rate based on average daily net assets (the “Investment Advisory Fee”). The Investment Advisory Fee for all classes is charged at an annual rate as noted in the table in note (b) below.

(b) Supervisory and Administrative Fee  PIMCO serves as administrator (the “Administrator”) and provides supervisory and administrative services to the Trust for which it receives a monthly supervisory and administrative fee based on each share class’s average

ANNUAL REPORT DECEMBER 31, 2018 39

Notes to Financial Statements (Cont.)

daily net assets (the “Supervisory and Administrative Fee”). As the Administrator, PIMCO bears the costs of various third-party services, including audit, custodial, portfolio accounting, legal, transfer agency and printing costs.

The Investment Advisory Fee and Supervisory and Administrative Fees for all classes, as applicable, are charged at the annual rate as noted in the following table (calculated as a percentage of the Portfolio’s average daily net assets attributable to each class):

Investment Advisory Fee		Supervisory and Administrative Fee
All Classes		Institutional Class		Class M		Administrative Class		Advisor Class
	0.45%		0.40%		0.40%		0.40%		0.40%

(c) Distribution and Servicing Fees  PIMCO Investments LLC, a wholly-owned subsidiary of PIMCO, serves as the distributor (“Distributor”) of the Trust’s shares.

The Trust has adopted an Administrative Services Plan with respect to the Administrative Class shares of the Portfolio pursuant to Rule 12b-1 under the Act (the “Administrative Plan”). Under the terms of the Administrative Plan, the Trust is permitted to compensate the Distributor, out of the Administrative Class assets of the Portfolio, in an amount up to 0.15% on an annual basis of the average daily net assets of that class, for providing or procuring through financial intermediaries administrative, recordkeeping and investor services for Administrative Class shareholders of the Portfolio.

The Trust has adopted a separate Distribution and Servicing Plan for each of the Advisor Class and Class M shares of the Portfolio (the “Distribution and Servicing Plans”). The Distribution and Servicing Plans have been adopted pursuant to Rule 12b-1 under the Act. The Distribution and Servicing Plans permit the Portfolio to compensate the Distributor for providing or procuring through financial intermediaries, distribution, administrative, recordkeeping, shareholder and/or related services with respect to Advisor Class and Class M shares. The Distribution and Servicing Plans permit the Portfolio to make total payments at an annual rate of up to 0.25% of its average daily net assets attributable to its Advisor Class or Class M shares, respectively. The Distribution and Servicing Plan for Class M shares also permits the Portfolio to compensate the Distributor for providing or procuring administrative, recordkeeping, and other investor services at an annual rate of up to 0.20% of its average daily net assets attributable to its Class M shares.

	Distribution Fee		Servicing Fee
Class M		0.25%		0.20%
Administrative Class		—		0.15%
Advisor Class		0.25%		—

(d) Portfolio Expenses  PIMCO provides or procures supervisory and administrative services for shareholders and also bears the costs of

various third-party services required by the Portfolio, including audit, custodial, portfolio accounting, legal, transfer agency and printing costs. The Trust is responsible for the following expenses: (i) taxes and governmental fees; (ii) brokerage fees and commissions and other portfolio transaction expenses; (iii) the costs of borrowing money, including interest expense; (iv) fees and expenses of the Trustees who are not “interested persons” of PIMCO or the Trust, and any counsel retained exclusively for their benefit; (v) extraordinary expense, including costs of litigation and indemnification expenses; (vi) organizational expenses; and (vii) any expenses allocated or allocable to a specific class of shares, which include service fees payable with respect to the Administrative Class Shares, and may include certain other expenses as permitted by the Trust’s Multi-Class Plan adopted pursuant to Rule 18f-3 under the Act and subject to review and approval by the Trustees. The ratio of expenses to average net assets per share class, as disclosed on the Financial Highlights, may differ from the annual portfolio operating expenses per share class.

Each Trustee, other than those affiliated with PIMCO or its affiliates, receives an annual retainer of $41,200, plus $4,250 for each Board meeting attended in person, $850 for each committee meeting attended and $750 for each Board meeting attended telephonically, plus reimbursement of related expenses. In addition, the audit committee chair receives an additional annual retainer of $8,000, the valuation oversight committee lead receives an additional annual retainer of $8,500 (to the extent there are co-leads of the valuation oversight committee, the annual retainer will be split evenly between the co-leads, so that each co-lead individually receives an additional annual retainer of $4,250) and each other committee chair receives an additional annual retainer of $5,500. The Lead Independent Trustee receives an annual retainer of $7,000.

These expenses are allocated on a pro rata basis to each Portfolio of the Trust according to its respective net assets. The Trust pays no compensation directly to any Trustee or any other officer who is affiliated with the Administrator, all of whom receive remuneration for their services to the Trust from the Administrator or its affiliates.

(e) Expense Limitation  Pursuant to the Expense Limitation Agreement, PIMCO has agreed to waive a portion of the Portfolio’s Supervisory and Administrative Fee, or reimburse the Portfolio, to the extent that the Portfolio’s organizational expenses, pro rata share of expenses related to obtaining or maintaining a Legal Entity Identifier and pro rata share of Trustee Fees exceed 0.0049%, the “Expense Limit” (calculated as a percentage of the Portfolio’s average daily net assets attributable to each class). The Expense Limitation Agreement will automatically renew for one-year terms unless PIMCO provides written notice to the Trust at least 30 days prior to the end of the then current term.

40 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

Under certain conditions, PIMCO may be reimbursed for amounts waived pursuant to the Expense Limitation Agreement in future periods, not to exceed thirty-six months after the waiver. At December 31, 2018, there were no recoverable amounts.

10. RELATED PARTY TRANSACTIONS

The Adviser, Administrator, and Distributor are related parties. Fees paid to these parties are disclosed in Note 9, Fees and Expenses, and the accrued related party fee amounts are disclosed on the Statement of Assets and Liabilities.

11. GUARANTEES AND INDEMNIFICATIONS

Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust (including the Trust’s investment manager) is indemnified, to the extent permitted by the Act, against certain liabilities that may arise out of performance of their duties to the Portfolio. Additionally, in the normal course of business, the Portfolio enters into contracts that contain a variety of indemnification clauses. The Portfolio’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Portfolio that have not yet occurred. However, the Portfolio has not had prior claims or losses pursuant to these contracts.

12. PURCHASES AND SALES OF SECURITIES

The length of time the Portfolio has held a particular security is not generally a consideration in investment decisions. A change in the securities held by the Portfolio is known as “portfolio turnover.” The Portfolio may engage in frequent and active trading of portfolio securities to achieve its investment objective, particularly during periods of volatile market movements. High portfolio turnover may involve correspondingly greater transaction costs to the Portfolio, including brokerage commissions or dealer mark-ups and other transaction costs on the sale of securities and reinvestments in other securities. Such sales may also result in realization of taxable capital gains, including short-term capital gains (which are generally taxed at ordinary income tax rates). The transaction costs and tax effects associated with portfolio turnover may adversely affect a shareholder’s performance. The portfolio turnover rates are reported in the Financial Highlights.

Purchases and sales of securities (excluding short-term investments) for the period ended December 31, 2018, were as follows (amounts in thousands^†):

U.S. Government/Agency				All Other
Purchases		Sales		Purchases		Sales
$	0	$	0	$	77,437	$	75,473

^†   A zero balance may reflect actual amounts rounding to less than one thousand.

13. SHARES OF BENEFICIAL INTEREST

The Trust may issue an unlimited number of shares of beneficial interest with a $0.001 par value. Changes in shares of beneficial interest were as follows (shares and amounts in thousands^†):

	Year Ended 12/31/2018						Year Ended 12/31/2017
	Shares			Amount			Shares			Amount
Receipts for shares sold
Institutional Class		915		$	11,483			963		$	12,590
Class M		6			77			23			287
Administrative Class		2,488			31,217			2,583			33,598
Advisor Class		973			12,256			1,193			15,592
Issued as reinvestment of distributions
Institutional Class		135			1,673			111			1,449
Class M		3			37			3			45
Administrative Class		631			7,815			863			11,271
Advisor Class		160			1,985			186			2,432
Cost of shares redeemed
Institutional Class		(230	)		(2,813	)		(153	)		(1,994	)
Class M		(11	)		(129	)		(8	)		(107	)
Administrative Class		(5,149	)		(63,850	)		(4,754	)		(62,103	)
Advisor Class		(1,335	)		(16,491	)		(1,048	)		(13,632	)
Net increase (decrease) resulting from Portfolio share transactions		(1,414	)	$	(16,740	)		(38	)	$	(572	)

^†   A zero balance may reflect actual amounts rounding to less than one thousand.

ANNUAL REPORT DECEMBER 31, 2018 41

Notes to Financial Statements (Cont.)

As of December 31, 2018, two shareholders each owned 10% or more of the Portfolio’s total outstanding shares comprising 55% of the Portfolio. One of the shareholders is a related party and comprises 42% of the Portfolio. Related parties may include, but are not limited to, the investment manager and its affiliates, affiliated broker dealers, fund of funds and directors or employees of the Trust or Adviser.

14. REGULATORY AND LITIGATION MATTERS

The Portfolio is not named as a defendant in any material litigation or arbitration proceedings and is not aware of any material litigation or claim pending or threatened against it.

The foregoing speaks only as of the date of this report.

15. FEDERAL INCOME TAX MATTERS

The Portfolio intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code (the “Code”) and distribute all of its taxable income and net realized gains, if applicable, to shareholders. Accordingly, no provision for Federal income taxes has been made.

The Portfolio may be subject to local withholding taxes, including those imposed on realized capital gains. Any applicable foreign capital gains

tax is accrued daily based upon net unrealized gains, and may be payable following the sale of any applicable investments.

In accordance with U.S. GAAP, the Adviser has reviewed the Portfolio’s tax positions for all open tax years. As of December 31, 2018, the Portfolio has recorded no liability for net unrecognized tax benefits relating to uncertain income tax positions it has taken or expects to take in future tax returns.

The Portfolio files U.S. federal, state, and local tax returns as required. The Portfolio’s tax returns are subject to examination by relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return but which can be extended to six years in certain circumstances. Tax returns for open years have incorporated no uncertain tax positions that require a provision for income taxes.

Shares of the Portfolio currently are sold to segregated asset accounts (“Separate Accounts”) of insurance companies that fund variable annuity contracts and variable life insurance policies (“Variable Contracts”). Please refer to the prospectus for the Separate Account and Variable Contract for information regarding Federal income tax treatment of distributions to the Separate Account.

As of December 31, 2018, the components of distributable taxable earnings are as follows (amounts in thousands^†):

	Undistributed Ordinary Income(1)		Undistributed Long-Term Capital Gains		Net Tax Basis Unrealized Appreciation/ (Depreciation)(2)			Other Book-to-Tax Accounting Differences(3)		Accumulated Capital Losses(4)			Qualified Late-Year Loss Deferral - Capital(5)		Qualified Late-Year Loss Deferral - Ordinary(6)
PIMCO Emerging Markets Bond Portfolio	$	5,255	$	0	$	(24,849	)	$	0	$	(4,309	)	$	0	$	0

^†   A zero balance may reflect actual amounts rounding to less than one thousand.

⁽¹⁾  Includes undistributed short-term capital gains, if any.

⁽²⁾  Adjusted for open wash sale loss deferrals and the accelerated recognition of unrealized gain or loss on certain futures, and forward contracts for federal income tax purposes. Also adjusted for differences between book and tax realized and unrealized gain (loss) on swap contracts, passive foreign investment companies (PFICs), straddle loss deferrals, and Lehman securities.

⁽³⁾  Represents differences in income tax regulations and financial accounting principles generally accepted in the United States of America mainly for organizational costs.

⁽⁴⁾  Capital losses available to offset future net capital gains expire in varying amounts as shown below.

⁽⁵⁾  Capital losses realized during the period November 1, 2018 through December 31, 2018 which the Portfolio elected to defer to the following taxable year pursuant to income tax regulations.

⁽⁶⁾  Specified losses realized during the period November 1, 2018 through December 31, 2018 which the Portfolio elected to defer to the following taxable year pursuant to income tax regulations.

Under the Regulated Investment Company Modernization Act of 2010, a fund is permitted to carry forward any new capital losses for an unlimited period. Additionally, such capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term under previous law.

As of December 31, 2018, the Portfolio had the following post-effective capital losses with no expiration (amounts in thousands^†):

	Short-Term		Long-Term
PIMCO Emerging Markets Bond Portfolio	$	0	$	4,309

^†   A zero balance may reflect actual amounts rounding to less than one thousand.

42 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

As of December 31, 2018, the aggregate cost and the net unrealized appreciation/(depreciation) of investments for federal income tax purposes are as follows (amounts in thousands^†):

	Federal Tax Cost		Unrealized Appreciation		Unrealized (Depreciation)			Net Unrealized Appreciation/ (Depreciation)(7)
PIMCO Emerging Markets Bond Portfolio	$	274,296	$	4,428	$	(29,282	)	$	(24,854	)

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽⁷⁾  Primary differences, if any, between book and tax net unrealized appreciation/(depreciation) on investments are attributable to open wash sale loss deferrals, unrealized gain or loss on certain futures, and forward contracts, realized and unrealized gain (loss) swap contracts, passive foreign investment companies (PFICs), straddle loss deferrals, and Lehman securities.

For the fiscal year ended December 31, 2018 and December 31, 2017, respectively, the Portfolio made the following tax basis distributions (amounts in thousands^†):

	December 31, 2018						December 31, 2017
	Ordinary Income Distributions(8)		Long-Term Capital Gain Distributions		Return of Capital(9)		Ordinary Income Distributions(8)		Long-Term Capital Gain Distributions		Return of Capital(9)
PIMCO Emerging Markets Bond Portfolio	$	11,511	$	0	$	0	$	15,204	$	0	$	0

^†   A zero balance may reflect actual amounts rounding to less than one thousand.

⁽⁸⁾  Includes short-term capital gains distributed, if any.

⁽⁹⁾  A portion of the distributions made represents a tax return of capital. Return of capital distributions have been reclassified from undistributed net investment income to paid-in capital to more appropriately conform financial accounting to tax accounting.

ANNUAL REPORT DECEMBER 31, 2018 43

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of PIMCO Variable Insurance Trust and Shareholders of PIMCO Emerging Markets Bond Portfolio

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of PIMCO Emerging Markets Bond Portfolio (one of the portfolios constituting PIMCO Variable Insurance Trust, referred to hereafter as the “Portfolio”) as of December 31, 2018, the related statement of operations for the year ended December 31, 2018, the statement of changes in net assets for each of the two years in the period ended December 31, 2018, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Portfolio as of December 31, 2018, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended December 31, 2018 and the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Portfolio’s management. Our responsibility is to express an opinion on the Portfolio’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Portfolio in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2018 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

Kansas City, Missouri

February 20, 2019

We have served as the auditor of one or more investment companies in PIMCO Variable Insurance Trust since 1998.

44 PIMCO VARIABLE INSURANCE TRUST

Glossary: (abbreviations that may be used in the preceding statements)

(Unaudited)

Counterparty Abbreviations:
BOA	Bank of America N.A.	FBF	Credit Suisse International	JPM	JPMorgan Chase Bank N.A.
BPS	BNP Paribas S.A.	FICC	Fixed Income Clearing Corporation	MSB	Morgan Stanley Bank, N.A
BRC	Barclays Bank PLC	GLM	Goldman Sachs Bank USA	NGF	Nomura Global Financial Products, Inc.
CBK	Citibank N.A.	GST	Goldman Sachs International	SOG	Societe Generale
CFR	Credit Suisse Securities (Europe) Ltd.	HUS	HSBC Bank USA N.A.	SSB	State Street Bank and Trust Co.
DUB	Deutsche Bank AG	IND	Crédit Agricole Corporate and Investment Bank S.A.	UAG	UBS AG Stamford
Currency Abbreviations:
BRL	Brazilian Real	EUR	Euro	RUB	Russian Ruble
COP	Colombian Peso	GBP	British Pound	USD (or $)	United States Dollar
EGP	Egyptian Pound	MXN	Mexican Peso
Exchange Abbreviations:
OTC	Over the Counter
Index/Spread Abbreviations:
CDX.EM	Credit Derivatives Index - Emerging Markets	CPURNSA	Consumer Price All Urban Non-Seasonally Adjusted Index	LIBOR03M	3 Month USD-LIBOR
CDX.IG	Credit Derivatives Index - Investment Grade	EUR003M	3 Month EUR Swap Rate	US0006M	6 Month USD Swap Rate
Other Abbreviations:
ABS	Asset-Backed Security	JSC	Joint Stock Company	TBA	To-Be-Announced
CDI	Brazil Interbank Deposit Rate	LIBOR	London Interbank Offered Rate	TBD	To-Be-Determined
EURIBOR	Euro Interbank Offered Rate	PIK	Payment-in-Kind	TBD%	Interest rate to be determined when loan settles or at the time of funding

ANNUAL REPORT DECEMBER 31, 2018 45

Federal Income Tax Information

(Unaudited)

As required by the Internal Revenue Code (the “Code”) and Treasury Regulations, if applicable, shareholders must be notified regarding the status of qualified dividend income and the dividend received deduction.

Dividend Received Deduction.  Corporate shareholders are generally entitled to take the dividend received deduction on the portion of a Fund’s dividend distribution that qualifies under tax law. The percentage of the following Portfolio’s fiscal 2018 ordinary income dividend that qualifies for the corporate dividend received deduction is set forth in the table below.

Qualified Dividend Income.  Under the Jobs and Growth Tax Relief Reconciliation Act of 2003 (the “Act”), the percentage of ordinary dividends paid during the calendar year designated as “qualified dividend income”, as defined in the Act, subject to reduced tax rates in 2018 is set forth for the Portfolio in the table below.

Qualified Interest Income and Qualified Short-Term Capital Gain (for non-U.S. resident shareholders only).  Under the American Jobs Creation Act of 2004, the amounts of ordinary dividends paid during the fiscal year ended December 31, 2018 considered to be derived from “qualified interest income,” as defined in Section 871(k)(1)(E) of the Code, and therefore designated as interest-related dividends, as defined in Section 871(k)(1)(C) of the Code are set forth in the table below. Further, the amounts of ordinary dividends paid during the fiscal year ended December 31, 2018 considered to be derived from “qualified short-term capital gain,” as defined in Section 871(k)(2)(D) of the Code, and therefore designated as qualified short-term gain dividends, as defined by Section 871(k)(2)(C) of the Code are also set forth in the table below.

	Dividend Received Deduction %		Qualified Dividend Income %		Qualified Interest Income (000s† )		Qualified Short-Term Capital Gain (000s†)
PIMCO Emerging Markets Bond Portfolio		0.00%		0.00%	$	541	$	0

^†   A zero balance may reflect actual amounts rounding to less than one thousand.

Shareholders are advised to consult their own tax advisor with respect to the tax consequences of their investment in the Trust. In January 2019, you will be advised on IRS Form 1099-DIV as to the federal tax status of the dividends and distributions received by you in calendar year 2018.

46 PIMCO VARIABLE INSURANCE TRUST

Management of the Trust

(Unaudited)

The charts below identify the Trustees and executive officers of the Trust. Unless otherwise indicated, the address of all persons below is 650 Newport Center Drive, Newport Beach, CA 92660.

The Portfolio’s Statement of Additional Information includes more information about the Trustees and Officers. To request a free copy, call PIMCO at (888) 87-PIMCO or visit the Portfolio’s website at www.pimco.com/pvit.

Name, Year of Birth and Position Held with Trust*	Term of Office and Length of Time Served†	Principal Occupation(s) During Past 5 Years	Number of Funds in Fund Complex Overseen by Trustee	Other Public Company and Investment Company Directorships Held by Trustee During the Past 5 Years
Interested Trustees1
Peter G. Strelow** (1970) Chairman of the Board and Trustee	05/2017 to present Chairman of the Board - 02/2019 to present	Managing Director and Co-Chief Operating Officer, PIMCO. President of the Trust, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Chief Administrative Officer, PIMCO.	153	Chairman and Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT.
Brent R. Harris** (1959) Trustee	08/1997 to present	Managing Director, PIMCO. Senior Vice President of the Trust, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Formerly, member of Executive Committee, PIMCO.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT; Director, StocksPLUS® Management, Inc; and member of Board of Governors, Investment Company Institute. Formerly, Chairman, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT.
Independent Trustees
George E. Borst (1948) Trustee	04/2015 to present	Executive Advisor, McKinsey & Company (since 10/14); Formerly, Executive Advisor, Toyota Financial Services (10/13-12/14); and CEO, Toyota Financial Services (1/01-9/13).	132	Trustee, PIMCO Funds and PIMCO ETF Trust; Director, MarineMax Inc.
Jennifer Holden Dunbar (1963) Trustee	04/2015 to present	Managing Director, Dunbar Partners, LLC (business consulting and investments). Formerly, Partner, Leonard Green & Partners, L.P.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT; Director, PS Business Parks; Director, Big 5 Sporting Goods Corporation.
Kym M. Hubbard (1957) Trustee	02/2017 to present	Formerly, Global Head of Investments, Chief Investment Officer and Treasurer, Ernst & Young.	132	Trustee, PIMCO Funds and PIMCO ETF Trust; Director, State Auto Financial Corporation.
Gary F. Kennedy (1955) Trustee	04/2015 to present	Formerly, Senior Vice President, General Counsel and Chief Compliance Officer, American Airlines and AMR Corporation (now American Airlines Group) (1/03-1/14).	132	Trustee, PIMCO Funds and PIMCO ETF Trust.
Peter B. McCarthy (1950) Trustee	04/2015 to present	Formerly, Assistant Secretary and Chief Financial Officer, United States Department of Treasury; Deputy Managing Director, Institute of International Finance.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Ronald C. Parker (1951) Lead Independent Trustee	07/2009 to present Lead Independent Trustee - 02/2017 to present	Director of Roseburg Forest Products Company. Formerly, Chairman of the Board, The Ford Family Foundation; and President, Chief Executive Officer, Hampton Affiliates (forestry products).	153	Lead Independent Trustee, PIMCO Funds and PIMCO ETF Trust; Trustee, PIMCO Equity Series and PIMCO Equity Series VIT.

* Unless otherwise noted, the information for the individuals listed is as of December 31, 2018.

** Effective February 13, 2019, Mr. Strelow became the Chairman of the Trust.

¹  Mr. Harris and Mr. Strelow are “interested persons” of the Trust (as that term is defined in the 1940 Act) because of their affiliations with PIMCO.

^†  Trustees serve until their successors are duly elected and qualified.

ANNUAL REPORT DECEMBER 31, 2018 47

Management of the Trust (Cont.)

(Unaudited)

Executive Officers

Name, Year of Birth and Position Held with Trust	Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years*
Peter G. Strelow (1970) President	01/2015 to present	Managing Director and Co-Chief Operating Officer, PIMCO. President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Chief Administrative Officer, PIMCO.
Joshua D. Ratner (1976)** Chief Legal Officer	11/2018 to present Vice President - Senior Counsel and Secretary 11/2013 to 11/2018 Assistant Secretary 10/2007 to 01/2011	Executive Vice President and Deputy General Counsel, PIMCO. Chief Legal Officer, PIMCO Investments LLC. Chief Legal Officer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Jennifer E. Durham (1970) Chief Compliance Officer	07/2004 to present	Managing Director and Chief Compliance Officer, PIMCO. Chief Compliance Officer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Brent R. Harris (1959) Senior Vice President	01/2015 to present President 03/2009 to 01/2015	Managing Director, PIMCO. Senior Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Formerly, member of Executive Committee, PIMCO.
Ryan G. Leshaw (1980) Vice President, Senior Counsel and Secretary	11/2018 to present Assistant Secretary 05/2012 to 11/2018	Senior Vice President and Senior Counsel, PIMCO. Vice President, Senior Counsel and Secretary, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Assistant Secretary, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Associate, Willkie Farr & Gallagher LLP.
Wu-Kwan Kit (1981) Assistant Secretary	08/2017 to present	Senior Vice President and Senior Counsel, PIMCO. Assistant Secretary, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Vice President, Senior Counsel and Secretary, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Assistant General Counsel, VanEck Associates Corp.
Stacie D. Anctil (1969) Vice President	05/2015 to present Assistant Treasurer 11/2003 to 05/2015	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
William G. Galipeau (1974) Vice President	11/2013 to present	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Eric D. Johnson (1970) Vice President	05/2011 to present	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Henrik P. Larsen (1970) Vice President	02/1999 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Bijal Y. Parikh (1978) Vice President	02/2017 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Greggory S. Wolf (1970) Vice President	05/2011 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Trent W. Walker (1974) Treasurer	11/2013 to present	Executive Vice President, PIMCO. Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Erik C. Brown (1967)** Assistant Treasurer	02/2001 to present	Executive Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Colleen D. Miller (1980)** Assistant Treasurer	02/2017 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Christopher M. Morin (1980) Assistant Treasurer	08/2016 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Jason J. Nagler (1982)** Assistant Treasurer	05/2015 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.

* The term “PIMCO-Sponsored Closed-End Funds” as used herein includes: PIMCO California Municipal Income Fund, PIMCO California Municipal Income Fund II, PIMCO California Municipal Income Fund III, PIMCO Municipal Income Fund, PIMCO Municipal Income Fund II, PIMCO Municipal Income Fund III, PIMCO New York Municipal Income Fund, PIMCO New York Municipal Income Fund II, PIMCO New York Municipal Income Fund III, PCM Fund Inc., PIMCO Corporate & Income Opportunity Fund, PIMCO Corporate & Income Strategy Fund, PIMCO Dynamic Credit and Mortgage Income Fund, PIMCO Dynamic Income Fund, PIMCO Global StocksPLUS^® & Income Fund, PIMCO High Income Fund, PIMCO Income Opportunity Fund, PIMCO Income Strategy Fund, PIMCO Income Strategy Fund II and PIMCO Strategic Income Fund, Inc.; the term “PIMCO-Sponsored Interval Funds” as used herein includes: PIMCO Flexible Credit Income Fund and PIMCO Flexible Municipal Income Fund.

** The address of these officers is Pacific Investment Management Company LLC, 1633 Broadway, New York, New York 10019.

48 PIMCO VARIABLE INSURANCE TRUST

Privacy Policy¹

(Unaudited)

The Trust^2,3 considers customer privacy to be a fundamental aspect of its relationships with shareholders and is committed to maintaining the confidentiality, integrity and security of its current, prospective and former shareholders’ non-public personal information. The Trust has developed policies that are designed to protect this confidentiality, while allowing shareholder needs to be served.

OBTAINING PERSONAL INFORMATION

In the course of providing shareholders with products and services, the Trust and certain service providers to the Trust, such as the Trust’s investment advisers or sub-advisers (“Advisers”), may obtain non-public personal information about shareholders, which may come from sources such as account applications and other forms, from other written, electronic or verbal correspondence, from shareholder transactions, from a shareholder’s brokerage or financial advisory firm, financial advisor or consultant, and/or from information captured on applicable websites.

RESPECTING YOUR PRIVACY

As a matter of policy, the Trust does not disclose any non-public personal information provided by shareholders or gathered by the Trust to non-affiliated third parties, except as required or permitted by law or as necessary for such third parties to perform their agreements with respect to the Trust. As is common in the industry, non-affiliated companies may from time to time be used to provide certain services, such as preparing and mailing prospectuses, reports, account statements and other information, conducting research on shareholder satisfaction and gathering shareholder proxies. The Trust or its affiliates may also retain non-affiliated companies to market the Trust’s shares or products which use the Trust’s shares and enter into joint marketing arrangements with them and other companies. These companies may have access to a shareholder’s personal and account information, but are permitted to use this information solely to provide the specific service or as otherwise permitted by law. In most cases, the shareholders will be clients of a third party, but the Trust may also provide a shareholder’s personal and account information to the shareholder’s respective brokerage or financial advisory firm and/or financial advisor or consultant.

SHARING INFORMATION WITH THIRD PARTIES

The Trust reserves the right to disclose or report personal or account information to non-affiliated third parties in limited circumstances where the Trust believes in good faith that disclosure is required under law, to cooperate with regulators or law enforcement authorities, to protect its rights or property, or upon reasonable request by any fund advised by PIMCO in which a shareholder has invested. In addition, the Trust may disclose information about a shareholder or a shareholder’s accounts to a non-affiliated third party at the shareholder’s request or with the consent of the shareholder.

SHARING INFORMATION WITH AFFILIATES

The Trust may share shareholder information with its affiliates in connection with servicing shareholders’ accounts, and subject to applicable law may provide shareholders with information about products and services that the Trust or its Advisers, distributors or their affiliates (“Service Affiliates”) believe may be of interest to such shareholders. The information that the Trust may share may include, for example, a shareholder’s participation in the Trust or in other

investment programs sponsored by a Service Affiliate, a shareholder’s ownership of certain types of accounts (such as IRAs), information about the Trust’s experiences or transactions with a shareholder, information captured on applicable websites, or other data about a shareholder’s accounts, subject to applicable law. The Trust’s Service Affiliates, in turn, are not permitted to share shareholder information with non-affiliated entities, except as required or permitted by law.

PROCEDURES TO SAFEGUARD PRIVATE INFORMATION

The Trust takes seriously the obligation to safeguard shareholder non-public personal information. In addition to this policy, the Trust has implemented procedures that are designed to restrict access to a shareholder’s non-public personal information to internal personnel who need to know that information to perform their jobs, such as servicing shareholder accounts or notifying shareholders of new products or services. Physical, electronic and procedural safeguards are in place to guard a shareholder’s non-public personal information.

INFORMATION COLLECTED FROM WEBSITES

Websites maintained by the Trust or its service providers may use a variety of technologies to collect information that help the Trust and its service providers understand how the website is used. Information collected from your web browser (including small files stored on your device that are commonly referred to as “cookies”) allow the websites to recognize your web browser and help to personalize and improve your user experience and enhance navigation of the website. In addition, the Trust or its Service Affiliates may use third parties to place advertisements for the Trust on other websites, including banner advertisements. Such third parties may collect anonymous information through the use of cookies or action tags (such as web beacons). The information these third parties collect is generally limited to technical and web navigation information, such as your IP address, web pages visited and browser type, and does not include personally identifiable information such as name, address, phone number or email address. If you are a registered user of the Trust’s website, the Trust or their service providers or third party firms engaged by the Trust or their service providers may collect or share information submitted by you, which may include personally identifiable information. This information can be useful to the Trust when assessing and offering services and website features. You can change your cookie preferences by changing the setting on your web browser to delete or reject cookies. If you delete or reject cookies, some website pages may not function properly. The Trust does not look for web browser “do not track” requests.

CHANGES TO THE PRIVACY POLICY

From time to time, the Trust may update or revise this privacy policy. If there are changes to the terms of this privacy policy, documents containing the revised policy on the relevant website will be updated.

¹ Amended as of February 15, 2017.

² PIMCO Investments LLC (“PI”) serves as the Trust’s distributor. This Privacy Policy applies to the activities of PI to the extent that PI regularly effects or engages in transactions with or for a Trust shareholder who is the record owner of such shares. For purposes of this Privacy Policy, references to “the Trust” shall include PI when acting in this capacity.

³ When distributing this Policy, the Trust may combine the distribution with any similar distribution of its investment adviser’s privacy policy. The distributed, combined policy may be written in the first person (i.e., by using “we” instead of “the Trust”).

ANNUAL REPORT DECEMBER 31, 2018 49

Approval of Investment Advisory Contract and Other Agreements

Approval of Renewal of the Amended and Restated Investment Advisory Contract, Supervision and Administration Agreement and Amended and Restated Asset Allocation Sub-Advisory Agreement

At a meeting held on August 20-21, 2018, the Board of Trustees (the “Board”) of PIMCO Variable Insurance Trust (the “Trust”), including the Trustees who are not “interested persons” of the Trust under the Investment Company Act of 1940, as amended (the “Independent Trustees”), considered and unanimously approved the renewal of the Amended and Restated Investment Advisory Contract (the “Investment Advisory Contract”) between the Trust, on behalf of each of the Trust’s series (the “Portfolios”), and Pacific Investment Management Company LLC (“PIMCO”) for an additional one-year term through August 31, 2019. The Board also considered and unanimously approved the renewal of the Supervision and Administration Agreement (together with the Investment Advisory Contract, the “Agreements”) between the Trust, on behalf of the Portfolios, and PIMCO for an additional one-year term through August 31, 2019. In addition, the Board considered and unanimously approved the renewal of the Amended and Restated Asset Allocation Sub-Advisory Agreement (the “Asset Allocation Agreement”) between PIMCO, on behalf of PIMCO All Asset Portfolio and PIMCO All Asset All Authority Portfolio, each a series of the Trust, and Research Affiliates, LLC (“Research Affiliates”) for an additional one-year term through August 31, 2019.

The information, material factors and conclusions that formed the basis for the Board’s approvals are summarized below.

1. INFORMATION RECEIVED

(a) Materials Reviewed:  During the course of the past year, the Trustees received a wide variety of materials relating to the services provided by PIMCO and Research Affiliates to the Trust. At each of its quarterly meetings, the Board reviewed the Portfolios’ investment performance and a significant amount of information relating to Portfolio operations, including shareholder services, valuation and custody, the Portfolios’ compliance program and other information relating to the nature, extent and quality of services provided by PIMCO and Research Affiliates to the Trust and each of the Portfolios, as applicable. In considering whether to approve the renewal of the Agreements and the Asset Allocation Agreement, the Board reviewed additional information, including, but not limited to, comparative industry data with regard to investment performance, advisory and supervisory and administrative fees and expenses, financial information for PIMCO and, where relevant, Research Affiliates, information regarding the profitability to PIMCO of its relationship with the Portfolios, information about the personnel providing investment management services, other advisory services and supervisory and administrative services to the Portfolios, and information about the fees

charged and services provided to other clients with similar investment mandates as the Portfolios, where applicable. In addition, the Board reviewed materials provided by counsel to the Trust and the Independent Trustees, which included, among other things, memoranda outlining legal duties of the Board in considering the renewal of the Agreements and the Asset Allocation Agreement.

(b) Review Process:  In connection with considering the renewal of the Agreements and the Asset Allocation Agreement, the Board reviewed written materials prepared by PIMCO and, where applicable, Research Affiliates in response to requests from counsel to the Trust and the Independent Trustees encompassing a wide variety of topics. The Board requested and received assistance and advice regarding, among other things, applicable legal standards from counsel to the Trust and the Independent Trustees, and reviewed comparative fee and performance data prepared at the Board’s request by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company performance information and fee and expense data. The Board received information on matters related to the Agreements and the Asset Allocation Agreement and met both as a full Board and in a separate session of the Independent Trustees, without management present, at the August 20-21, 2018 meeting. The Independent Trustees also conducted in-person meetings with counsel to the Trust and the Independent Trustees, including one on July 18, 2018, to discuss the Lipper Report, as defined below, and certain aspects of the 2018 15(c) materials presented and other matters deemed relevant to their consideration of the renewal of the Agreements and the Asset Allocation Agreement. In connection with its review of the Agreements, the Board received comparative information on the performance and the fees and expenses of other peer group funds and share classes. In addition, the Independent Trustees requested and received supplemental information.

The approval determinations were made on the basis of each Trustee’s business judgment after consideration and evaluation of all the information presented. Individual Trustees may have given different weights to certain factors and assigned various degrees of materiality to information received in connection with the approval process. In deciding to approve the renewal of the Agreements and the Asset Allocation Agreement, the Board did not identify any single factor or particular information that, in isolation, was controlling. The discussion below is intended to summarize the broad factors and information that figured prominently in the Board’s consideration of the renewal of the Agreements and the Asset Allocation Agreement, but is not intended to summarize all of the factors considered by the Board.

2. NATURE, EXTENT AND QUALITY OF SERVICES

(a) PIMCO, Research Affiliates, their Personnel, and Resources:  The Board considered the depth and quality of PIMCO’s investment management process, including: the experience, capability and integrity

50 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

of its senior management and other personnel; the overall financial strength and stability of its organization; and the ability of its organizational structure to address changes in the Portfolios’ asset levels. The Board also considered the various services in addition to portfolio management that PIMCO provides under the Investment Advisory Contract. The Board noted that PIMCO makes available to its investment professionals a variety of resources and systems relating to investment management, compliance, trading, performance and portfolio accounting. The Board also noted PIMCO’s commitment to enhancing and investing in its global infrastructure, technology capabilities, risk management processes and the specialized talent needed to stay at the forefront of the competitive investment management industry and to strengthen its ability to deliver services under the Agreements. The Board considered PIMCO’s policies, procedures and systems reasonably designed to assure compliance with applicable laws and regulations and its commitment to further developing and strengthening these programs, its oversight of matters that may involve conflicts of interest between the Portfolios’ investments and those of other accounts managed by PIMCO, and its efforts to keep the Trustees informed about matters relevant to the Portfolios and their shareholders. The Board also considered PIMCO’s continuous investment in new disciplines and talented personnel, which has enhanced PIMCO’s services to the Portfolios and has allowed PIMCO to introduce innovative new portfolios over time. In addition, the Board considered the nature and quality of services provided by PIMCO to the wholly-owned subsidiaries of certain applicable Portfolios.

The Trustees considered that PIMCO has continued to strengthen the process it uses to actively manage counterparty risk and to assess the financial stability of counterparties with which the Portfolios do business, to manage collateral and to protect Portfolios from an unforeseen deterioration in the creditworthiness of trading counterparties. The Trustees noted that, consistent with its fiduciary duty, PIMCO executes transactions through a competitive best execution process and uses only those counterparties that meet its stringent and monitored criteria. The Trustees considered that PIMCO’s collateral management team utilizes a counterparty risk system to analyze portfolio level exposure and collateral being exchanged with counterparties.

In addition, the Trustees considered new services and service enhancements that PIMCO has implemented since the Board renewed the Agreements in 2017, including, but not limited to upgrading the global network and infrastructure to support trading and risk management systems; enhancing and continuing to expand capabilities within the pre-trade compliance platform; enhancing flexible client reporting capabilities to support increased differentiation within local markets; developing new application and database frameworks to support new trading strategies; expanding proprietary applications

suites to enrich capabilities across Compliance, Analytics, Risk Management, Client Reporting, Attribution and Customer Relationship management; continuing investment in its enterprise risk management function, including PIMCO’s cybersecurity program and global business continuity functions; oversight by the Americas Fund Oversight Committee, which provides senior-level oversight and supervision focused on new and ongoing fund-related business opportunities; engaging a third party service provider to implement the SEC reporting modernization regime; expanding the Fund Treasurer’s Office; enhancing a proprietary application to provide portfolio managers with more timely and high quality income reporting; developing a global tax management application that will enable investment professionals to access foreign market and security tax information on a real-time basis; enhancing reporting of tax reporting for portfolio managers for income products with improved transparency on tax factors impacting income generation and dividend yield; upgrading a proprietary application to allow shareholder subscription and redemption data to pass to portfolio managers more quickly and efficiently; and continuing to expand the pricing portal and the proprietary performance reconciliation tool.

Similarly, the Board considered the asset allocation services provided by Research Affiliates to the PIMCO All Asset Portfolio and PIMCO All Asset All Authority Portfolio. The Board further considered PIMCO’s oversight of Research Affiliates in connection with Research Affiliates providing asset allocation services to the Asset Portfolio and All Asset All Authority Portfolio. The Board also considered the depth and quality of Research Affiliates’ investment management and research capabilities, the experience and capabilities of its portfolio management personnel and the overall financial strength of the organization.

Ultimately, the Board concluded that the nature, extent and quality of services provided or procured by PIMCO under the Agreements and provided by Research Affiliates under the Asset Allocation Agreement are likely to continue to benefit the Portfolios and their respective shareholders, as applicable.

(b) Other Services:  The Board also considered the nature, extent and quality of supervisory and administrative services provided by PIMCO to the Portfolios under the Supervision and Administration Agreement.

The Board considered the terms of the Supervision and Administration Agreement, under which the Trust pays for the supervisory and administrative services provided pursuant to that agreement under what is essentially an all-in fee structure (the “unified fee”). In return, PIMCO provides or procures certain supervisory and administrative services and bears the costs of various third party services required by the Portfolios, including audit, custodial, portfolio accounting, legal, transfer agency, sub-accounting and printing costs. The Board noted that the scope and complexity, as well as the costs, of the supervisory

ANNUAL REPORT DECEMBER 31, 2018 51

Approval of Investment Advisory Contract and Other Agreements (Cont.)

and administrative services provided by PIMCO under the Supervision and Administration Agreement continue to increase. The Board considered PIMCO’s provision of supervisory and administrative services and its supervision of the Trust’s third party service providers to assure that these service providers continue to provide a high level of service relative to alternatives available in the market.

Ultimately, the Board concluded that the nature, extent and quality of the services provided by PIMCO has benefited, and will likely continue to benefit, the Portfolios and their shareholders.

3. INVESTMENT PERFORMANCE

The Board reviewed information from PIMCO concerning the Portfolios’ performance, as available, over short- and long-term periods ended March 31, 2018 and other performance data, as available, over short- and long-term periods ended June 30, 2018 (the “PIMCO Report”) and from Broadridge concerning the Portfolios’ performance, as available, over short- and long-term periods ended March 31, 2018 (the “Lipper Report”).

The Board considered information regarding both the short- and long-term investment performance of each Portfolio relative to its peer group and relevant benchmark index as provided to the Board in advance of each of its quarterly meetings throughout the year, including the PIMCO Report and Lipper Report, which were provided in advance of the August 20-21, 2018 meeting. The Trustees noted that many of the Portfolios outperformed their respective Lipper medians on a net-of-fees basis over the three-, five- and ten-year periods ended March 31, 2018. The Board also noted that, as of March 31, 2018, the Administrative Class of 72%, 35% and 73% of the Portfolios outperformed their respective Lipper category median on a net-of-fees basis over the three-, five- and ten-year periods, respectively. The Trustees considered that other classes of each Portfolio would have substantially similar performance to that of the Administrative Class of the relevant Portfolio on a relative basis because all of the classes are invested in the same portfolio of investments and that differences in performance among classes could principally be attributed to differences in the supervisory and administrative fees and distribution and servicing expenses of each class. The Board also considered that the investment objectives of certain of the Portfolios may not always be identical to those of the other funds in their respective peer groups and that the Lipper categories do not: separate funds based upon maturity or duration; account for the applicable Portfolios’ hedging strategies; distinguish between enhanced index and actively managed equity strategies; include as many subsets as the Portfolios offer (i.e., Portfolios may be placed in a “catch-all” Lipper category to which they do not properly belong); or account for certain fee waivers. The Board noted that, due to these differences, performance comparisons between certain of the Portfolios and their so-called peers may not be

particularly relevant to the consideration of Portfolio performance but found the comparative information supported its overall evaluation.

The Board noted that performance for a majority of the Portfolios has been mixed compared to their respective benchmark indexes over the five-year period ended March 31, 2018. The Board noted that, as of March 31, 2018, 70%, 23% and 92% of the Trust’s assets (based on Administrative Class performance) outperformed their respective benchmarks on a net-of-fees basis over the three-, five- and ten-year periods, respectively. The Board also discussed actions that have been taken by PIMCO to attempt to improve performance and took note of PIMCO’s plans to monitor performance going forward.

The Board considered PIMCO’s discussion of the intensive nature of managing bond funds, noting that it requires the management of a number of factors, including: varying maturities; prepayments; collateral management; counterparty management; pay-downs; credit and corporate events; workouts; derivatives; net new issuance in the bond market; and decreased market maker inventory levels. The Board noted that in addition to managing these factors, PIMCO must also balance risk controls and strategic positions in each portfolio it manages, including the Portfolios. Despite these challenges, the Board noted PIMCO’s ability to generate non-market correlated excess performance for its clients over time, including the Trust.

The Board ultimately concluded, within the context of all of its considerations in connection with the Agreements, that PIMCO’s performance record and process in managing the Portfolios indicates that its continued management is likely to benefit the Portfolios and their shareholders, and merits the approval of the renewal of the Agreements.

4. ADVISORY FEES, SUPERVISORY AND ADMINISTRATIVE FEES AND TOTAL EXPENSES

The Board considered that PIMCO seeks to price new funds and classes to scale. PIMCO reported to the Board that, in proposing fees for any Portfolio or class of shares, it considers a number of factors, including, but not limited to, the type and complexity of the services provided, the cost of providing services, the risk assumed by PIMCO in the development of products and the provision of services and the competitive marketplace for financial products. Fees charged to or proposed for different Portfolios for advisory services and supervisory and administrative services may vary in light of these various factors. The Board considered that portfolio pricing generally is not driven by comparison to passively-managed products.

In addition, PIMCO reported to the Board that it periodically reviews the fees charged to the Portfolios. The Board noted that, based upon this review, PIMCO may propose advisory fee or supervisory and administrative fee changes where (i) a Portfolio’s long-term performance warrants additional consideration; (ii) there is a notable aid to market

52 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

position; (iii) a Portfolio’s fee does not reflect the current level of supervision or administrative fees provided to the Portfolio; or (iv) PIMCO would like to change a Portfolio’s overall strategic positioning.

The Board reviewed the advisory fees, supervisory and administrative fees and total expenses of the Portfolios (each as a percentage of average net assets) and compared such amounts with the average and median fee and expense levels of other similar funds. The Board also reviewed information relating to the sub-advisory fees paid to Research Affiliates with respect to applicable Portfolios, taking into account that PIMCO compensates Research Affiliates from the advisory fees paid by such Portfolios to PIMCO. With respect to advisory fees, the Board reviewed data from Broadridge that compared the average and median advisory fees of other funds in a “Peer Group” of comparable funds, as well as the universe of other similar funds. The Board noted that a number of Portfolios have total expense ratios that fall below the average and median expense ratios in their Peer Group and Lipper universe. In addition, the Board considered fee waivers in place for certain of the Portfolios and also noted the fee waivers in place with respect to the advisory fee and supervisory and administrative fee that might result from investments by applicable Portfolios in their respective wholly-owned subsidiaries. The Board also considered that PIMCO reviews the Portfolios’ fee levels and carefully considers changes where appropriate.

The Board also reviewed data comparing the Portfolios’ advisory fees to the standard and negotiated fee rates PIMCO charges to separate accounts, collective investment trusts and sub-advised clients with similar investment strategies. In cases where the fees for other clients were lower than those charged to the Portfolios, the Trustees noted that the differences in fees were attributable to various factors, including, but not limited to, differences in the advisory and other services provided by PIMCO to the Portfolios, differences in the number or extent of the services provided by PIMCO to the Portfolios, the manner in which similar portfolios may be managed, different requirements with respect to liquidity management and the implementation of other regulatory requirements, and the fact that separate accounts may have other contractual arrangements or arrangements across PIMCO strategies that justify different levels of fees. The Board considered that, with respect to collective investment trusts, PIMCO performs fewer or less extensive services because collective investment trusts are generally exempt from SEC regulation; investors in a collective investment trust may receive shareholder services from a trustee bank, rather than PIMCO; collective investment trusts have less regulatory disclosure; and the management structure of collective investment trusts differs from that of funds. The Trustees also considered that PIMCO faces increased entrepreneurial, legal and regulatory risk in sponsoring and managing mutual funds and ETFs as compared to separate accounts, external sub-advised funds or other investment products.

Regarding advisory fees charged by PIMCO in its capacity as sub-adviser to third party/unaffiliated funds, the Trustees took into account that such fees may be lower than the fees charged by PIMCO to serve as adviser to the Portfolios. The Trustees also took into account that there are various reasons for any such differences in fees, including, but not limited to, the fact that PIMCO may be subject to varying levels of entrepreneurial risk and regulatory requirements, differing legal liabilities on a contract-by-contract basis and different servicing requirements when PIMCO does not serve as the sponsor of a fund and is not principally responsible for all aspects of a fund’s investment program and operations as compared to when PIMCO serves as investment adviser and sponsor.

The Board considered the Portfolios’ supervisory and administrative fees, comparing them to similar funds in the report supplied by Broadridge. The Board also considered that as the Portfolios’ business has become increasingly complex and the number of Portfolios has grown over time, PIMCO has provided an increasingly broad array of fund supervisory and administrative functions. In addition, the Board considered the Trust’s unified fee structure, under which the Trust pays for the supervisory and administrative services it requires for one set fee. In return for this unified fee, PIMCO provides or procures supervisory and administrative services and bears the costs of various third party services required by the Portfolios, including audit, custodial, portfolio accounting, legal, transfer agency, sub-accounting and printing costs. The Board further considered that many other funds pay for comparable services separately, and thus it is difficult to directly compare the Trust’s unified supervisory and administrative fees with the fees paid by other funds for administrative services alone. The Board also considered that the unified supervisory and administrative fee leads to Portfolio fees that are fixed over the contract period, rather than variable. The Board noted that, although the unified fee structure does not have breakpoints, it implicitly reflects economies of scale by fixing the absolute level of Portfolio fees at competitive levels over the contract period even if the Portfolios’ operating costs rise when assets remain flat or decrease. Other factors the Board considered in assessing the unified fee include PIMCO’s approach of pricing Portfolios to scale at inception and reinvesting in other important areas of the business that support the Portfolios. The Board considered that the Portfolios’ unified fee structure meant that fees were not impacted by recent outflows in certain Portfolios, unlike funds without a unified fee structure, which may see increased expense ratios when fixed costs, such as service provider costs, are passed through to a smaller asset base. The Board considered historical advisory and supervisory and administrative fee reductions implemented for different Portfolios and classes, noting that the unified fee can be increased or decreased in subsequent contractual periods and is subject to the periodic reviews discussed above. The Board noted that, with few exceptions, PIMCO

ANNUAL REPORT DECEMBER 31, 2018 53

Approval of Investment Advisory Contract and Other Agreements (Cont.)

has generally maintained Portfolio fees at the same level as implemented when the unified fee was adopted, and has reduced fees for a number of Portfolios in prior years. The Board concluded that the Portfolios’ supervisory and administrative fees were reasonable in relation to the value of the services provided, including the services provided to different classes of shareholders, and that the expenses assumed contractually by PIMCO under the Supervision and Administration Agreement represent, in effect, a cap on overall Portfolio fees during the contractual period, which is beneficial to the Portfolios and their shareholders.

The Board considered the Portfolios’ total expenses and discussed with PIMCO those Portfolios and/or classes of Portfolios that had above median total expenses. The Board noted that many of the Portfolios are unique products that have few peers, if any, and cannot easily be grouped with comparable funds. Upon comparing the Portfolios’ total expenses to other funds in the “Peer Groups” provided by Broadridge, the Board found total expenses of each Portfolio to be reasonable.

The Trustees also considered the advisory fees charged to the Portfolios that operate as funds of funds (the “Funds of Funds”) and the advisory services provided in exchange for such fees. The Trustees determined that such services were in addition to the advisory services provided to the underlying funds in which the Funds of Funds may invest and, therefore, such services were not duplicative of the advisory services provided to the underlying funds. The Board also considered the various fee waiver agreements in place for the Funds of Funds. The Board noted that PIMCO is continuing waivers for these Funds of Funds, as well as for certain other Portfolios of the Trust.

Based on the information presented by PIMCO, Research Affiliates and Broadridge, members of the Board determined, in the exercise of their business judgment, that the level of the advisory fees and supervisory and administrative fees charged by PIMCO under the Agreements, as well as the total expenses of each Portfolio, after the proposals to decrease the management fee, are reasonable.

5. ADVISER COSTS, LEVEL OF PROFITS AND ECONOMIES OF SCALE

The Board reviewed information regarding PIMCO’s costs of providing services to the Funds as a whole, as well as the resulting level of profits to PIMCO under both the adjusted asset profitability method and the profit and loss profitability method, which were each utilized to calculate profitability. To the extent applicable, the Board also reviewed information regarding the portion of a Portfolio’s advisory fee retained by PIMCO, following the payment of sub-advisory fees to Research Affiliates, with respect to the Portfolio. Additionally, the Board noted that profit margins with respect to the Trust shows that the Trust is profitable, although less so than PIMCO Funds due to payments made

by PIMCO to participating insurance companies. The Board further noted PIMCO’s engagement of a third party to review and to make recommendations regarding PIMCO’s processes supporting its profitability estimation materials. The Board also noted that it had received information regarding the structure and manner in which PIMCO’s investment professionals were compensated, and PIMCO’s view of the relationship of such compensation to the attraction and retention of quality personnel. The Board considered PIMCO’s need to invest in global infrastructure, technology capabilities, risk management processes and qualified personnel to reinforce and offer new services and to accommodate changing regulatory requirements.

With respect to potential economies of scale, the Board noted that PIMCO shares the benefits of economies of scale with the Portfolios and their shareholders in a number of ways, including investing in portfolio and trade operations management, firm technology, middle and back office support, legal and compliance, and fund administration logistics, senior management supervision, governance and oversight of those services, and through fee reductions or waivers, the pricing of Portfolios to scale from inception, and the enhancement of services provided to the Portfolios in return for fees paid. The Board reviewed the history of the Portfolios’ fee structure. The Board considered that the Portfolios’ unified fee rates had been set competitively and/or priced to scale from inception, had been held steady during the contractual period at that scaled competitive rate for most Portfolios as assets grew, or as assets declined in the case of some Portfolios, and continued to be competitive compared with peers. The Board also considered that the unified fee is a transparent means of informing a Portfolio’s shareholders of the fees associated with the Portfolio, and that the Portfolio bears certain expenses that are not covered by the advisory fee or the unified fee. The Board further considered the challenges that arise when managing large funds, which can result in certain “diseconomies” of scale and noted that PIMCO has continued to reinvest in many areas of the business to support the Portfolios.

The Trustees considered that the unified fee has provided inherent economies of scale because a Portfolio maintains competitive fixed fees over the annual contract period even if the particular Portfolio’s assets decline and/or operating costs rise. The Trustees further considered that, in contrast, breakpoints may be a proxy for charging higher fees on lower asset levels and that when a fund’s assets decline, breakpoints may reverse, which causes expense ratios to increase. The Trustees also considered that, unlike the Portfolios’ unified fee structure, funds with “pass through” administrative fee structures may experience increased expense ratios when fixed dollar fees are charged against declining fund assets. The Trustees also considered that the unified fee protects shareholders from a rise in operating costs that may result from, among other things, PIMCO’s investments in various business enhancements and infrastructure, including those referenced above. The Trustees noted that PIMCO’s investments in these areas are extensive.

54 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

The Board concluded that the Portfolios’ cost structures were reasonable and that PIMCO is appropriately sharing economies of scale, if any, through the Portfolios’ unified fee structure, generally pricing Portfolios to scale at inception and reinvesting in its business to provide enhanced and expanded services to the Portfolios and their shareholders.

6. ANCILLARY BENEFITS

The Board considered other benefits realized by PIMCO and its affiliates as a result of PIMCO’s relationship with the Trust. Such benefits may include possible ancillary benefits to PIMCO’s institutional investment management business due to the reputation and market penetration of the Trust or third party service providers’ relationship-level fee concessions, which decrease fees paid by PIMCO. The Board also considered that affiliates of PIMCO provide distribution and/or shareholder services to the Portfolios and their shareholders, for which they may be compensated through distribution and servicing fees paid pursuant to the Portfolios’ Rule 12b-1 plans or otherwise. The Board reviewed PIMCO’s soft dollar policies and procedures, noting that while PIMCO has the authority to receive the benefit of research provided by broker-dealers executing portfolio transactions on behalf of the Portfolios, it has adopted a policy not to enter into contractual soft dollar arrangements.

7. CONCLUSIONS

Based on their review, including their comprehensive consideration and evaluation of each of the broad factors and information summarized above, the Independent Trustees and the Board as a whole concluded that the nature, extent and quality of the services rendered to the Portfolios by PIMCO and Research Affiliates supported the renewal of the Agreements and the Asset Allocation Agreement. The Independent Trustees and the Board as a whole concluded that the Agreements and the Asset Allocation Agreement continued to be fair and reasonable to the Portfolios and their shareholders, that the Portfolios’ shareholders received reasonable value in return for the fees paid to PIMCO by the Portfolios under the Agreements and the fees paid to Research Affiliates by PIMCO under the Asset Allocation Agreement, and that the renewal of the Agreements and the Asset Allocation Agreement was in the best interests of the Portfolios and their shareholders.

ANNUAL REPORT DECEMBER 31, 2018 55

General Information

Investment Adviser and Administrator

Pacific Investment Management Company LLC

650 Newport Center Drive

Newport Beach, CA 92660

Distributor

PIMCO Investments LLC

1633 Broadway

New York, NY 10019

Custodian

State Street Bank and Trust Company

801 Pennsylvania Avenue

Kansas City, MO 64105

Transfer Agent

DST Asset Manager Solutions, Inc.

430 W 7th Street STE 219024

Kansas City, MO 64105-1407

Legal Counsel

Dechert LLP

1900 K Street, N.W.

Washington, D.C. 20006

Independent Registered Public Accounting Firm

PricewaterhouseCoopers LLP

1100 Walnut Street, Suite 1300

Kansas City, MO 64106

This report is submitted for the general information of the shareholders of the PIMCO Variable Insurance Trust.

pimco.com/pvit

PVIT04AR_123118

PIMCO VARIABLE INSURANCE TRUST

Annual Report

December 31, 2018

PIMCO Global Bond Opportunities Portfolio (Unhedged)

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, you may not be receiving paper copies of the Portfolio’s shareholder reports from the insurance company that offers your contract unless you specifically request paper copies from the insurance company or from your financial intermediary. Instead, the shareholder reports will be made available on a website, and the insurance company will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the insurance company electronically by following the instructions provided by the insurance company.

You may elect to receive all future reports in paper free of charge from the insurance company. You should contact the insurance company if you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all portfolio companies available under your contract at the insurance company.

Table of Contents

	Page
Chairman’s Letter		2
Important Information About the PIMCO Global Bond Opportunities Portfolio (Unhedged)		4
Portfolio Summary		6
Expense Example		7
Financial Highlights		8
Statement of Assets and Liabilities		10
Statement of Operations		11
Statements of Changes in Net Assets		12
Schedule of Investments		13
Notes to Financial Statements		30
Report of Independent Registered Public Accounting Firm		49
Glossary		50
Federal Income Tax Information		51
Management of the Trust		52
Privacy Policy		54
Approval of Investment Advisory Contract and Other Agreements		55

* Prior to July 30, 2018, the PIMCO Global Bond Opportunities Portfolio (Unhedged) was named the PIMCO Global Bond Portfolio (Unhedged).

This material is authorized for use only when preceded or accompanied by the current PIMCO Variable Insurance Trust (the “Trust”) prospectus for the Portfolio. (The variable product prospectus may be obtained by contacting your Investment Consultant.)

Chairman’s Letter

Dear PIMCO Variable Insurance Trust Shareholder,

Following this letter is the PIMCO Variable Insurance Trust Annual Report, which covers the 12-month reporting period ended December 31, 2018. On the subsequent pages you will find specific details regarding investment results and discussion of the factors that most affected performance during the reporting period.

For the 12-month reporting period ended December 31, 2018

The U.S. economy continued to expand during the reporting period. Looking back, U.S. gross domestic product (“GDP”) grew at an annual pace of 2.2% during the first quarter of 2018. During the second quarter of 2018, GDP growth rose to an annual pace of 4.2%, the strongest since the third quarter of 2014. GDP then expanded at an annual pace of 3.4% during the third quarter of the year. Finally, the Commerce Department’s initial reading for fourth-quarter 2018 GDP has been delayed due to the partial government shutdown.

The Federal Reserve (the “Fed”) continued to normalize monetary policy during the reporting period. During its meetings that concluded in March, June, September and December 2018, the Fed raised the federal funds rate in 0.25% increments. The Fed’s December rate hike pushed the federal funds rate to a range between 2.25% and 2.50%. In addition, the Fed continued to reduce its balance sheet during the reporting period.

Economic activity outside the U.S. initially accelerated during the reporting period, but moderated as it progressed. Against this backdrop, the European Central Bank (the “ECB”) and the Bank of Japan largely maintained their highly accommodative monetary policies, while other central banks took a more hawkish stance. The Bank of England raised rates at its meeting in August 2018 and the Bank of Canada raised rates twice during the reporting period. Meanwhile, the ECB ended its quantitative easing program in December 2018, but indicated that it does not expect to raise interest rates “at least through the summer of 2019.”

The U.S. Treasury yield curve flattened during the reporting period as short-term rates moved up more than longer-term rates. In our view, the increase in rates at the short end of the yield curve was mostly due to Fed interest rate increases. The yield on the benchmark 10-year U.S. Treasury note was 2.69% at the end of the reporting period, up from 2.40% on December 31, 2017. U.S. Treasuries, as measured by the Bloomberg Barclays U.S. Treasury Index, returned 0.86% over the 12 months ended December 31, 2018. Meanwhile, the Bloomberg Barclays U.S. Aggregate Bond Index, a widely used index of U.S. investment grade bonds, returned 0.01% over the period. Riskier fixed income asset classes, including high yield corporate bonds and emerging market debt, generated weak results versus the broad U.S. market. The ICE BofAML U.S. High Yield Index returned -2.27% over the reporting period, whereas emerging market external debt, as represented by the JPMorgan Emerging Markets Bond Index (EMBI) Global, returned -4.61% over the reporting period. Emerging market local bonds, as represented by the JPMorgan Government Bond Index-Emerging Markets Global Diversified Index (Unhedged), returned -6.21% over the period.

Global equities produced poor results during the reporting period. U.S. equities moved sharply higher over the first nine months of the period. We believe this rally was driven by a number of factors, including corporate profits that often exceeded expectations. However, U.S. equities fell sharply during the fourth quarter of 2018. We believe this was triggered by a number of factors, including signs of moderating global growth, concerns over future Fed rate hikes, the ongoing trade dispute between the U.S. and China and the partial U.S. government shutdown. All told, U.S. equities, as represented by the S&P 500 Index, returned -4.38% during the reporting period. Elsewhere, emerging market equities, as measured by the MSCI Emerging Markets Index, returned -14.58% during the reporting period, whereas global equities, as represented by the MSCI World Index, returned -8.71%. Elsewhere, Japanese equities, as represented by the Nikkei 225 Index (in JPY), returned -10.39% during the reporting period and European equities, as represented by the MSCI Europe Index (in EUR), returned -10.57%.

Commodity prices fluctuated and generally declined during the reporting period. When the reporting period began, West Texas crude oil was approximately $65 a barrel, but by the end it was roughly $45 a barrel. This was driven in

2 PIMCO VARIABLE INSURANCE TRUST

part by increased supply and declining global demand. Elsewhere, gold and copper prices also moved lower during the reporting period.

Finally, during the reporting period the foreign exchange markets experienced periods of volatility, due in part to signs of decoupling economic growth and central bank policies, along with a number of geopolitical events. The U.S. dollar produced mixed results against other major currencies during the reporting period. For example, the U.S. dollar appreciated 4.71% and 5.90% versus the euro and the British pound, respectively, whereas the U.S. dollar depreciated 2.66% versus the yen during the reporting period.

Thank you for the assets you have placed with us. We deeply value your trust, and we will continue to work diligently to meet your broad investment needs.

Sincerely,     Brent R. Harris Chairman of the Board,
PIMCO Variable Insurance Trust  

Past performance is no guarantee of future results. Unless otherwise noted, index returns reflect the reinvestment of income distributions and capital gains, if any, but do not reflect fees, brokerage commissions or other expenses of investing. It is not possible to invest directly in an unmanaged index.

ANNUAL REPORT DECEMBER 31, 2018 3

Important Information About the PIMCO Global Bond Opportunities Portfolio (Unhedged)

PIMCO Variable Insurance Trust (the “Trust”) is an open-end management investment company that includes the PIMCO Global Bond Opportunities Portfolio (Unhedged) (the “Portfolio”). The Portfolio is only available as a funding vehicle under variable life insurance policies or variable annuity contracts issued by insurance companies (“Variable Contracts”). Individuals may not purchase shares of the Portfolio directly. Shares of the Portfolio also may be sold to qualified pension and retirement plans outside of the separate account context.

We believe that bond funds have an important role to play in a well-diversified investment portfolio. It is important to note, however, that in an environment where interest rates may trend upward, rising rates would negatively impact the performance of most bond funds, and fixed income securities and other instruments held by the Portfolio are likely to decrease in value. A wide variety of factors can cause interest rates to rise (e.g., central bank monetary policies, inflation rates, general economic conditions, etc.). In addition, changes in interest rates can be sudden and unpredictable, and there is no guarantee that management will anticipate such movement accurately. The Portfolio may lose money as a result of movements in interest rates.

As of the date of this report, interest rates in the U.S. and many parts of the world, including certain European countries, are at or near historically low levels. Thus, the Portfolio currently faces a heightened level of interest rate risk, especially since the Fed has ended its quantitative easing program and has begun, and may continue, to raise interest rates. To the extent the Fed continues to raise interest rates, there is a risk that rates across the financial system may rise. Further, while bond markets have steadily grown over the past three decades, dealer inventories of corporate bonds are near historic lows in relation to market size. As a result, there has been a significant reduction in the ability of dealers to “make markets.”

Bond funds and individual bonds with a longer duration (a measure used to determine the sensitivity of a security’s price to changes in interest rates) tend to be more sensitive to changes in interest rates, usually making them more volatile than securities or funds with shorter durations. All of the factors mentioned above, individually or collectively, could lead to increased volatility and/or lower liquidity in the fixed income markets or negatively impact the Portfolio’s performance or cause the Portfolio to incur losses. As a result, the

Portfolio may experience increased shareholder redemptions, which, among other things, could further reduce the net assets of the Portfolio.

The Portfolio may be subject to various risks as described in the Portfolio’s prospectus and in the Principal Risks in the Notes to Financial Statements.

The geographical classification of foreign (non-U.S.) securities in this report are classified by the country of incorporation of a holding. In certain instances, a security’s country of incorporation may be different from its country of economic exposure.

The United States presidential administration’s enforcement of tariffs on goods from other countries, with a focus on China, has contributed to international trade tensions and may impact portfolio securities.

The United Kingdom’s decision to leave the European Union may impact Portfolio returns. This decision may cause substantial volatility in foreign exchange markets, lead to weakness in the exchange rate of the British pound, result in a sustained period of market uncertainty, and destabilize some or all of the other European Union member countries and/or the Eurozone.

On the Portfolio Summary page in this Shareholder Report, the Average Annual Total Return table and Cumulative Returns chart measure performance assuming that any dividend and capital gain distributions were reinvested. The Cumulative Returns chart reflects only Administrative Class performance. Performance may vary by share class based on each class’s expense ratios. The Portfolio measures its performance against at least one broad-based securities market index (“benchmark index”). The benchmark index does not take into account fees, expenses, or taxes. The Portfolio’s past performance, before and after taxes, is not necessarily an indication of how the Portfolio will perform in the future. There is no assurance that the Portfolio, even if the Portfolio has experienced high or unusual performance for one or more periods, will experience similar levels of performance in the future. High performance is defined as a significant increase in either 1) the Portfolio’s total return in excess of that of the Portfolio’s benchmark between reporting periods or 2) the Portfolio’s total return in excess of the Portfolio’s historical returns between reporting periods. Unusual performance is defined as a significant change in the Portfolio’s performance as compared to one or more previous reporting periods.

The following table discloses the inception dates of the Portfolio and its respective share classes along with the Portfolio’s diversification status as of period end:

Portfolio Name	Portfolio Inception		Institutional Class		Administrative Class		Advisor Class		Diversification Status
PIMCO Global Bond Opportunities Portfolio (Unhedged)		01/10/02		01/31/06		01/10/02		10/31/06		Diversified

4 PIMCO VARIABLE INSURANCE TRUST

An investment in the Portfolio is not a bank deposit and is not guaranteed or insured by the Federal Deposit Insurance Corporation (“FDIC”) or any other government agency. It is possible to lose money on investments in the Portfolio.

The Trustees are responsible generally for overseeing the management of the Trust. The Trustees authorize the Trust to enter into service agreements with the Adviser, the Distributor, the Administrator and other service providers in order to provide, and in some cases authorize service providers to procure through other parties, necessary or desirable services on behalf of the Trust and the Portfolio. Shareholders are not parties to or third-party beneficiaries of such service agreements. Neither this Portfolio’s prospectus nor summary prospectus, the Trust’s Statement of Additional Information (“SAI”), any contracts filed as exhibits to the Trust’s registration statement, nor any other communications, disclosure documents or regulatory filings (including this report) from or on behalf of the Trust or the Portfolio creates a contract between or among any shareholder of the Portfolio, on the one hand, and the Trust, the Portfolio, a service provider to the Trust or the Portfolio, and/or the Trustees or officers of the Trust, on the other hand. The Trustees (or the Trust and its officers, service providers or other delegates acting under authority of the Trustees) may amend the most recent prospectus or use a new prospectus, summary prospectus or SAI with respect to the Portfolio or the Trust, and/or amend, file and/or issue any other communications, disclosure documents or regulatory filings, and may amend or enter into any contracts to which the Trust or the Portfolio is a party, and interpret the investment objective(s), policies, restrictions and contractual provisions applicable to the Portfolio, without shareholder input or approval, except in circumstances in which shareholder approval is specifically required by law (such as changes to fundamental investment policies) or where a shareholder approval requirement is specifically disclosed in the Trust’s then-current prospectus or SAI.

PIMCO has adopted written proxy voting policies and procedures (“Proxy Policy”) as required by Rule 206(4)-6 under the Investment Advisers Act of 1940, as amended. The Proxy Policy has been adopted by the Trust as the policies and procedures that PIMCO will use when voting proxies on behalf of the Portfolio. A description of the policies and procedures that PIMCO uses to vote proxies relating to portfolio securities of the Portfolio, and information about how the Portfolio voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, are available without charge, upon request, by calling the Trust at (888) 87-PIMCO, on the Portfolio’s website at www.pimco.com/pvit, and on the Securities and Exchange Commission’s (“SEC”) website at www.sec.gov.

The Trust files a complete schedule of the Portfolio’s holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. A copy of the Portfolio’s Form N-Q is available on the SEC’s website at www.sec.gov. A copy of the Portfolio’s Form N-Q is also available without charge, upon request, by calling the Trust at (888) 87-PIMCO and on the Portfolio’s website at www.pimco.com/pvit.

The SEC adopted a rule that, beginning in 2021, generally will allow shareholder reports to be delivered to investors by providing access to such reports online free of charge and by mailing a notice that the report is electronically available. Pursuant to the rule, investors may still elect to receive a complete shareholder report in the mail. Instructions for electing to receive paper copies of the Portfolio’s shareholder reports going forward may be found on the front cover of this report.

The SEC adopted amendments to certain disclosure requirements relating to open-end investment companies’ liquidity risk management programs. Effective December 1, 2019, large fund complexes will be required to include in their shareholder reports a discussion of their liquidity risk management programs’ operations over the past year.

ANNUAL REPORT DECEMBER 31, 2018 5

PIMCO Global Bond Opportunities Portfolio (Unhedged)

Cumulative Returns Through December 31, 2018

$10,000 invested at the end of the month when the Portfolio’s Administrative Class commenced operations.

Geographic Breakdown as of 12/31/2018^†§

United States‡	46.0%
United Kingdom	7.1%
Sweden	4.4%
Canada	3.9%
France	3.7%
Netherlands	2.9%
Denmark	2.7%
Spain	2.2%
Cayman Islands	2.2%
Japan	2.1%
Peru	1.8%
Saudi Arabia	1.6%
Qatar	1.1%
Ireland	1.0%
Other	8.5%

^†  % of Investments, at value.

^§  Geographic Breakdown and % of Investments exclude securities sold short, financial derivative instruments and short-term instruments, if any.

^‡  Includes Central Funds Used for Cash Management Purposes.

Average Annual Total Return for the period ended December 31, 2018
		1 Year		5 Years		10 Years		Inception≈
	PIMCO Global Bond Opportunities Portfolio (Unhedged) Institutional Class		(4.05)%		1.37%		4.01%		4.09%
	PIMCO Global Bond Opportunities Portfolio (Unhedged) Administrative Class		(4.19)%		1.22%		3.85%		5.19%
	PIMCO Global Bond Opportunities Portfolio (Unhedged) Advisor Class		(4.29)%		1.12%		3.75%		3.79%
	Bloomberg Barclays Global Aggregate (USD Unhedged) Index±		(1.20)%		1.08%		2.49%		4.57%	¨

All Portfolio returns are net of fees and expenses.

^≈ For class inception dates please refer to the Important Information.

^¨ Average annual total return since 12/31/2001.

^± Bloomberg Barclays Global Aggregate (USD Unhedged) Index provides a broad-based measure of the global investment-grade fixed income markets. The three major components of this index are the U.S. Aggregate, the Pan-European Aggregate, and the Asian-Pacific Aggregate Indices. The index also includes Eurodollar and Euro-Yen corporate bonds, Canadian Government securities, and USD investment grade 144A securities.

It is not possible to invest directly in an unmanaged index.

Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. The Portfolio’s performance does not reflect the deduction of additional charges and expenses imposed in connection with investing in Variable Contracts, which will reduce returns. Differences in the Portfolio’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the prices of individual positions (which may be sourced from different pricing vendors or other sources) used by the Portfolio and the index. For performance current to the most recent month-end, visit www.pimco.com/pvit or via (888) 87-PIMCO.

The Portfolio’s total annual operating expense ratio in effect as of period end were 0.81% for Institutional Class shares, 0.96% for Administrative Class shares, and 1.06% for Advisor Class shares. Details regarding any changes to the Portfolio’s operating expenses, subsequent to period end, can be found in the Portfolio’s current prospectus, as supplemented.

Investment Objective and Strategy Overview

PIMCO Global Bond Opportunities Portfolio (Unhedged) seeks maximum total return, consistent with preservation of capital and prudent investment management, by investing under normal circumstances at least 80% of its assets in Fixed Income Instruments that are economically tied to at least three countries (one of which may be the United States), which may be represented by forwards or derivatives such as options, futures contracts or swap agreements. “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. Securities may be denominated in major foreign currencies, baskets of foreign currencies (such as the euro) or the U.S. dollar. Portfolio strategies may change from time to time. Please refer to the Portfolio’s current prospectus for more information regarding the Portfolio’s strategy.

Portfolio Insights

The following affected performance during the reporting period:

» Overweight exposure to German duration contributed to performance relative to the benchmark, as rates fell.

» Positions in non-agency mortgage-backed securities contributed to relative performance, as these securities generated positive total returns.

» U.S. interest rate strategies, particularly a combination of curve positioning and yield advantage contributed to performance, as rates rose across the yield curve.

» Overweight exposure to select developed market currencies, particularly the Norwegian krone and Australian dollar detracted from performance, as these currencies depreciated relative to the U.S. dollar.

» Overweight exposure to a basket of emerging market currencies detracted from relative performance, as the MSCI Emerging Markets Currency index, which generally captures the overall performance of emerging market currencies, declined relative to the U.S. dollar.

» Underweight exposure to duration in Japan detracted from relative performance, as rates fell.

6 PIMCO VARIABLE INSURANCE TRUST

Expense Example PIMCO Global Bond Opportunities Portfolio (Unhedged)

Example

As a shareholder of the Portfolio, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees (if applicable), and other Portfolio expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in the Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds.

The Expense Example does not reflect any fees or other expenses imposed by the Variable Contracts. If it did, the expenses reflected in the Expense Example would be higher. The Example is based on an investment of $1,000 invested at the beginning of the period and held from July 1, 2018 to December 31, 2018 unless noted otherwise in the table and footnotes below.

Actual Expenses

The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60), then multiply the result by the number in the appropriate row for your share class, in the column titled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other portfolios. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other portfolios.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information under the heading “Hypothetical (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different portfolios. In addition, if these transactional costs were included, your costs would have been higher.

Expense ratios may vary period to period because of various factors, such as an increase in expenses that are not covered by the management fees such as fees and expenses of the independent trustees and their counsel, extraordinary expenses and interest expense.

	Actual						Hypothetical (5% return before expenses)
	Beginning Account Value (07/01/18)		Ending Account Value (12/31/18)		Expenses Paid During Period*		Beginning Account Value (07/01/18)		Ending Account Value (12/31/18)		Expenses Paid During Period*		Net Annualized Expense Ratio**
Institutional Class	$	1,000.00	$	982.70	$	4.45	$	1,000.00	$	1,020.72	$	4.53		0.89	%
Administrative Class		1,000.00		982.00		5.20		1,000.00		1,019.96		5.30		1.04
Advisor Class		1,000.00		981.50		5.69		1,000.00		1,019.46		5.80		1.14

* Expenses Paid During Period are equal to the net annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Overall fees and expenses of investing in the Portfolio will be higher because the example does not reflect variable contract fees and expenses.

** Net Annualized Expense Ratio is reflective of any applicable contractual fee waivers and/or expense reimbursements or voluntary fee waivers. Details regarding fee waivers, if any, can be found in Note 9, Fees and Expenses, in the Notes to Financial Statements.

ANNUAL REPORT DECEMBER 31, 2018 7

Financial Highlights PIMCO Global Bond Opportunities Portfolio (Unhedged)

			Investment Operations								Less Distributions(b)
Selected Per Share Data for the Year Ended^:	Net Asset Value Beginning of Year		Net Investment Income (Loss)(a)		Net Realized/ Unrealized Gain (Loss)			Total			From Net Investment Income			From Net Realized Capital Gain			Tax Basis Return of Capital			Total
Institutional Class
12/31/2018	$	12.29	$	0.27	$	(0.77	)	$	(0.50	)	$	(0.76	)	$	(0.03	)	$	(0.04	)	$	(0.83	)
12/31/2017		11.54		0.21		0.80			1.01			(0.26	)		0.00			0.00			(0.26	)
12/31/2016		11.26		0.24		0.24			0.48			(0.20	)		0.00			0.00			(0.20	)
12/31/2015		11.95		0.23		(0.69	)		(0.46	)		0.00			0.00			(0.23	)		(0.23	)
12/31/2014		12.34		0.35		(0.05	)		0.30			(0.32	)		(0.36	)		(0.01	)		(0.69	)
Administrative Class
12/31/2018		12.29		0.25		(0.77	)		(0.52	)		(0.74	)		(0.03	)		(0.04	)		(0.81	)
12/31/2017		11.54		0.19		0.80			0.99			(0.24	)		0.00			0.00			(0.24	)
12/31/2016		11.26		0.23		0.23			0.46			(0.18	)		0.00			0.00			(0.18	)
12/31/2015		11.95		0.21		(0.69	)		(0.48	)		0.00			0.00			(0.21	)		(0.21	)
12/31/2014		12.34		0.33		(0.05	)		0.28			(0.30	)		(0.36	)		(0.01	)		(0.67	)
Advisor Class
12/31/2018		12.29		0.24		(0.77	)		(0.53	)		(0.73	)		(0.03	)		(0.04	)		(0.80	)
12/31/2017		11.54		0.18		0.80			0.98			(0.23	)		0.00			0.00			(0.23	)
12/31/2016		11.26		0.22		0.23			0.45			(0.17	)		0.00			0.00			(0.17	)
12/31/2015		11.95		0.20		(0.69	)		(0.49	)		0.00			0.00			(0.20	)		(0.20	)
12/31/2014		12.34		0.32		(0.05	)		0.27			(0.29	)		(0.36	)		(0.01	)		(0.66	)

^ A zero balance may reflect actual amounts rounding to less than $0.01 or 0.01%.

^(a)  Per share amounts based on average number of shares outstanding during the year.

^(b)  The tax characterization of distributions is determined in accordance with Federal income tax regulations. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

8 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

					Ratios/Supplemental Data
							Ratios to Average Net Assets
Net Asset Value End of Year		Total Return			Net Assets End of Year (000s)		Expenses			Expenses Excluding Waivers			Expenses Excluding Interest Expense			Expenses Excluding Interest Expense and Waivers			Net Investment Income (Loss)			Portfolio Turnover Rate
$	10.96		(4.05	)%	$	9,561		0.84	%		0.84	%		0.75	%		0.75	%		2.27	%		255	%
	12.29		8.79			10,067		0.81			0.81			0.75			0.75			1.73			339
	11.54		4.20			9,237		0.77			0.77			0.75			0.75			2.03			676
	11.26		(3.89	)		6,123		0.75			0.75			0.75			0.75			1.98			506
	11.95		2.42			6,757		0.76			0.76			0.75			0.75			2.76			496
	10.96		(4.19	)		166,921		0.99			0.99			0.90			0.90			2.12			255
	12.29		8.63			198,189		0.96			0.96			0.90			0.90			1.58			339
	11.54		4.04			197,606		0.92			0.92			0.90			0.90			1.93			676
	11.26		(4.03	)		201,031		0.90			0.90			0.90			0.90			1.84			506
	11.95		2.27			257,588		0.91			0.91			0.90			0.90			2.60			496
	10.96		(4.29	)		23,856		1.09			1.09			1.00			1.00			2.01			255
	12.29		8.52			29,267		1.06			1.06			1.00			1.00			1.47			339
	11.54		3.94			31,111		1.02			1.02			1.00			1.00			1.82			676
	11.26		(4.13	)		34,790		1.00			1.00			1.00			1.00			1.73			506
	11.95		2.16			38,067		1.01			1.01			1.00			1.00			2.51			496

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 9

Statement of Assets and Liabilities PIMCO Global Bond Opportunities Portfolio (Unhedged)

(Amounts in thousands†, except per share amounts)	December 31, 2018
Assets:
Investments, at value
Investments in securities	$	248,161
Investments in Affiliates		3,385
Financial Derivative Instruments
Exchange-traded or centrally cleared		519
Over the counter		2,147
Cash		69
Deposits with counterparty		5,154
Foreign currency, at value		1,404
Receivable for investments sold		11,956
Receivable for TBA investments sold		17,288
Receivable for Portfolio shares sold		123
Interest and/or dividends receivable		1,461
Dividends receivable from Affiliates		10
Other assets		1
Total Assets		291,678
Liabilities:
Borrowings & Other Financing Transactions
Payable for reverse repurchase agreements	$	18,614
Payable for sale-buyback transactions		439
Payable for short sales		1,488
Financial Derivative Instruments
Exchange-traded or centrally cleared		538
Over the counter		3,454
Payable for investments purchased		10,463
Payable for investments in Affiliates purchased		10
Payable for TBA investments purchased		54,841
Deposits from counterparty		871
Payable for Portfolio shares redeemed		471
Accrued investment advisory fees		41
Accrued supervisory and administrative fees		83
Accrued distribution fees		5
Accrued servicing fees		21
Other liabilities		1
Total Liabilities		91,340
Net Assets	$	200,338
Net Assets Consist of:
Paid in capital	$	204,584
Distributable earnings (accumulated loss)		(4,246	)
Net Assets	$	200,338
Net Assets:
Institutional Class	$	9,561
Administrative Class		166,921
Advisor Class		23,856
Shares Issued and Outstanding:
Institutional Class		872
Administrative Class		15,232
Advisor Class		2,177
Net Asset Value Per Share Outstanding:
Institutional Class	$	10.96
Administrative Class		10.96
Advisor Class		10.96
Cost of investments in securities	$	246,540
Cost of investments in Affiliates	$	3,418
Cost of foreign currency held	$	1,426
Proceeds received on short sales	$	1,502
Cost or premiums of financial derivative instruments, net	$	1,401

† A zero balance may reflect actual amounts rounding to less than one thousand.

10 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

Statement of Operations PIMCO Global Bond Opportunities Portfolio (Unhedged)

(Amounts in thousands†)	Year Ended December 31, 2018
Investment Income:
Interest	$	6,677
Dividends		18
Dividends from Investments in Affiliates		156
Total Income		6,851
Expenses:
Investment advisory fees		550
Supervisory and administrative fees		1,100
Servicing fees - Administrative Class		275
Distribution and/or servicing fees - Advisor Class		67
Trustee fees		6
Interest expense		209
Miscellaneous expense		3
Total Expenses		2,210
Net Investment Income (Loss)		4,641
Net Realized Gain (Loss):
Investments in securities		(1,325	)
Investments in Affiliates		2
Net capital gain distributions received from Affiliate investments		4
Exchange-traded or centrally cleared financial derivative instruments		(138	)
Over the counter financial derivative instruments		232
Short sales		(18	)
Foreign currency		(2,868	)
Net Realized Gain (Loss)		(4,111	)
Net Change in Unrealized Appreciation (Depreciation):
Investments in securities		(6,327	)
Investments in Affiliates		(32	)
Exchange-traded or centrally cleared financial derivative instruments		(2,187	)
Over the counter financial derivative instruments		(3,548	)
Short sales		20
Foreign currency assets and liabilities		2,331
Net Change in Unrealized Appreciation (Depreciation)		(9,743	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	(9,213	)

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 11

Statements of Changes in Net Assets PIMCO Global Bond Opportunities Portfolio (Unhedged)

(Amounts in thousands†)	Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets from:
Operations:
Net investment income (loss)	$	4,641		$	3,773
Net realized gain (loss)		(4,111	)		10,169
Net change in unrealized appreciation (depreciation)		(9,743	)		5,942
Net Increase (Decrease) in Net Assets Resulting from Operations		(9,213	)		19,884
Distributions to Shareholders:
From net investment income and/or net realized capital gains*
Institutional Class		(656	)		(211	)
Administrative Class		(11,397	)		(3,951	)
Advisor Class		(1,609	)		(557	)
Tax basis return of capital
Institutional Class		(36	)		0
Administrative Class		(674	)		0
Advisor Class		(99	)		0
Total Distributions(a)		(14,471	)		(4,719	)
Portfolio Share Transactions:
Net increase (decrease) resulting from Portfolio share transactions**		(13,501	)		(15,596	)
Total Increase (Decrease) in Net Assets		(37,185	)		(431	)
Net Assets:
Beginning of year		237,523			237,954
End of year	$	200,338		$	237,523

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

* See Note 2, New Accounting Pronouncements, in the Notes to Financial Statements for more information.

** See Note 13, Shares of Beneficial Interest, in the Notes to Financial Statements.

^(a)  The tax characterization of distributions is determined in accordance with Federal income tax regulations. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

12 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

Schedule of Investments PIMCO Global Bond Opportunities Portfolio (Unhedged)

December 31, 2018

(Amounts in thousands*, except number of shares, contracts and units, if any)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
INVESTMENTS IN SECURITIES 123.9%
ARGENTINA 0.1%
SOVEREIGN ISSUES 0.1%
Argentina Government International Bond
50.225% (BADLARPP + 2.000%) due 04/03/2022 ~(a)	ARS		3,540	$		91
50.950% (BADLARPP + 2.500%) due 03/11/2019 ~(a)			206			5
59.257% (ARLLMONP) due 06/21/2020 ~(a)			5,500			157
Total Argentina (Cost $498)						253
AUSTRALIA 0.7%
CORPORATE BONDS & NOTES 0.3%
Sydney Airport Finance Co. Pty. Ltd.
3.900% due 03/22/2023	$		600			597
NON-AGENCY MORTGAGE-BACKED SECURITIES 0.1%
Liberty Funding Pty. Ltd.
3.432% due 01/25/2049 •	AUD		425			300
SOVEREIGN ISSUES 0.3%
Queensland Treasury Corp.
4.250% due 07/21/2023			800			611
Total Australia (Cost $1,723)						1,508
BERMUDA 0.8%
ASSET-BACKED SECURITIES 0.8%
Rise Ltd.
4.750% due 02/15/2039 «~(i)	$		1,691			1,657
Total Bermuda (Cost $1,695)						1,657
BRAZIL 0.9%
CORPORATE BONDS & NOTES 0.9%
Petrobras Global Finance BV
5.299% due 01/27/2025	$		531			508
5.999% due 01/27/2028			233			220
7.375% due 01/17/2027			1,000			1,030
Total Brazil (Cost $1,806)						1,758
CANADA 4.8%
CORPORATE BONDS & NOTES 1.9%
Air Canada Pass-Through Trust
3.300% due 07/15/2031	$		100			96
Bank of Nova Scotia
1.875% due 04/26/2021			900			879
Canadian Imperial Bank of Commerce
3.150% due 06/27/2021			200			201
Enbridge, Inc.
3.488% (US0003M + 0.700%) due 06/15/2020 ~			200			199
Fairfax Financial Holdings Ltd.
2.750% due 03/29/2028	EUR		300			342
HSBC Bank Canada
3.300% due 11/28/2021	$		500			506
Royal Bank of Canada
2.300% due 03/22/2021			600			592
Toronto-Dominion Bank
2.500% due 01/18/2022			1,100			1,088
						3,903
NON-AGENCY MORTGAGE-BACKED SECURITIES 0.4%
Canadian Mortgage Pools
2.259% due 06/01/2020	CAD		162			119
2.459% due 07/01/2020			510			375

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
2.459% due 08/01/2020	CAD		180	$		132
Real Estate Asset Liquidity Trust
3.072% due 08/12/2053			192			140
						766
SOVEREIGN ISSUES 2.5%
Canadian Government Real Return Bond
1.500% due 12/01/2044 (f)			232			199
Province of Alberta
1.250% due 06/01/2020			1,100			797
2.350% due 06/01/2025			1,100			790
Province of Ontario
2.400% due 06/02/2026			600			430
2.600% due 06/02/2025			3,900			2,852
						5,068
Total Canada (Cost $10,084)						9,737
CAYMAN ISLANDS 2.7%
ASSET-BACKED SECURITIES 2.1%
Evans Grove CLO Ltd.
3.627% due 05/28/2028 •	$		100			99
Figueroa CLO Ltd.
3.336% due 01/15/2027 •			500			500
Gallatin CLO Ltd.
3.485% due 01/21/2028 •			300			299
Jamestown CLO Ltd.
3.669% due 01/17/2027 •			1,153			1,152
Palmer Square Loan Funding Ltd.
3.150% due 11/15/2026 •			500			498
Symphony CLO Ltd.
3.466% due 10/15/2025 •			1,119			1,110
Venture CLO Ltd.
3.316% due 04/15/2027 •			100			99
Wellfleet CLO Ltd.
3.609% due 10/20/2027 •			500			500
						4,257
CORPORATE BONDS & NOTES 0.6%
KSA Sukuk Ltd.
2.894% due 04/20/2022			300			293
4.303% due 01/19/2029			500			498
Sands China Ltd.
5.125% due 08/08/2025			200			198
5.400% due 08/08/2028			200			194
						1,183
Total Cayman Islands (Cost $5,470)						5,440
DENMARK 3.4%
CORPORATE BONDS & NOTES 3.4%
Jyske Realkredit A/S
1.500% due 10/01/2037	DKK		1,600			247
2.000% due 10/01/2047			1,210			188
3.000% due 10/01/2047			5			1
Nordea Kredit Realkreditaktieselskab
2.000% due 10/01/2047			7,252			1,122
2.000% due 10/01/2050			1,671			256
2.500% due 10/01/2037			643			105
Nykredit Realkredit A/S
1.500% due 10/01/2037			2,200			340
2.000% due 10/01/2047			9,875			1,528
2.500% due 10/01/2036			150			24
2.500% due 10/01/2047			28			5
Realkredit Danmark A/S
2.000% due 10/01/2047			18,314			2,837
2.500% due 07/01/2036			750			122
2.500% due 07/01/2047			79			13
Total Denmark (Cost $6,510)						6,788

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
FRANCE 4.7%
CORPORATE BONDS & NOTES 1.1%
Dexia Credit Local S.A.
1.875% due 03/28/2019	$		700	$		699
2.250% due 02/18/2020			250			249
2.375% due 09/20/2022			1,200			1,178
						2,126
SOVEREIGN ISSUES 3.6%
France Government International Bond
2.000% due 05/25/2048 (j)	EUR		4,100			5,103
3.250% due 05/25/2045 (j)			1,300			2,048
						7,151
Total France (Cost $8,461)						9,277
GERMANY 1.0%
CORPORATE BONDS & NOTES 1.0%
Deutsche Bank AG
4.250% due 10/14/2021	$		1,100			1,076
Deutsche Pfandbriefbank AG
1.625% due 08/30/2019			400			397
Landwirtschaftliche Rentenbank
4.250% due 01/24/2023	AUD		200			151
5.375% due 04/23/2024	NZD		500			379
Total Germany (Cost $2,073)						2,003
GUERNSEY, CHANNEL ISLANDS 0.4%
CORPORATE BONDS & NOTES 0.4%
Credit Suisse Group Funding Guernsey Ltd.
3.800% due 06/09/2023	$		600			589
Doric Nimrod Air Finance Alpha Ltd. Pass-Through Trust
5.125% due 11/30/2024			211			219
Total Guernsey, Channel Islands (Cost $809)						808
INDONESIA 0.1%
CORPORATE BONDS & NOTES 0.1%
Indonesia Asahan Aluminium Persero PT
5.230% due 11/15/2021	$		200			203
Total Indonesia (Cost $199)						203
IRELAND 1.2%
ASSET-BACKED SECURITIES 0.6%
CVC Cordatus Loan Fund Ltd.
0.780% due 01/24/2028 •	EUR		600			687
Dorchester Park CLO DAC
3.369% due 04/20/2028 •	$		600			595
						1,282
CORPORATE BONDS & NOTES 0.3%
Shire Acquisitions Investments Ireland DAC
1.900% due 09/23/2019			600			592
SOVEREIGN ISSUES 0.3%
Ireland Government International Bond
5.400% due 03/13/2025	EUR		400			599
Total Ireland (Cost $2,393)						2,473
ISRAEL 0.2%
SOVEREIGN ISSUES 0.2%
Israel Government International Bond
3.250% due 01/17/2028	$		200			197
4.125% due 01/17/2048			200			196
Total Israel (Cost $397)						393

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 13

Schedule of Investments PIMCO Global Bond Opportunities Portfolio (Unhedged) (Cont.)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
ITALY 1.0%
CORPORATE BONDS & NOTES 0.4%
Intesa Sanpaolo SpA
7.750% due 01/11/2027 •(g)(h)	EUR		200	$		241
UniCredit SpA
7.830% due 12/04/2023	$		500			523
						764
SOVEREIGN ISSUES 0.6%
Italy Buoni Poliennali Del Tesoro
1.450% due 11/15/2024	EUR		400			443
2.500% due 11/15/2025			700			812
						1,255
Total Italy (Cost $2,097)						2,019
JAPAN 2.6%
CORPORATE BONDS & NOTES 0.9%
Chugoku Electric Power Co., Inc.
2.701% due 03/16/2020	$		600			596
Mitsubishi UFJ Financial Group, Inc.
2.950% due 03/01/2021			200			198
ORIX Corp.
3.250% due 12/04/2024			100			97
Sumitomo Mitsui Financial Group, Inc.
4.447% (US0003M + 1.680%) due 03/09/2021 ~			300			306
Suntory Holdings Ltd.
2.550% due 09/29/2019			400			397
Takeda Pharmaceutical Co. Ltd.
1.125% due 11/21/2022	EUR		200			231
						1,825
SOVEREIGN ISSUES 1.7%
Development Bank of Japan, Inc.
3.125% due 09/06/2023	$		500			504
Japan Bank for International Cooperation
2.375% due 07/21/2022			200			197
2.375% due 11/16/2022			200			196
2.500% due 06/01/2022			200			197
3.250% due 07/20/2023			300			304
Japan Finance Organization for Municipalities
2.125% due 04/13/2021			1,000			982
2.625% due 04/20/2022			600			593
Tokyo Metropolitan Government
2.000% due 05/17/2021			500			489
						3,462
Total Japan (Cost $5,327)						5,287
KUWAIT 0.8%
SOVEREIGN ISSUES 0.8%
Kuwait International Government Bond
3.500% due 03/20/2027	$		1,600			1,595
Total Kuwait (Cost $1,587)						1,595
LITHUANIA 0.2%
SOVEREIGN ISSUES 0.2%
Lithuania Government International Bond
6.125% due 03/09/2021	$		400			424
Total Lithuania (Cost $422)						424
LUXEMBOURG 0.9%
CORPORATE BONDS & NOTES 0.9%
Emerald Bay S.A.
0.000% due 10/08/2020 (d)	EUR		541			584

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
GELF Bond Issuer S.A.
1.750% due 11/22/2021	EUR		700	$		822
NORD/LB Luxembourg S.A. Covered Bond Bank
2.875% due 02/16/2021	$		400			398
Total Luxembourg (Cost $1,792)						1,804
NETHERLANDS 3.7%
ASSET-BACKED SECURITIES 0.5%
Babson Euro CLO BV
0.503% due 10/25/2029 •	EUR		500			568
Penta CLO BV
0.790% due 08/04/2028 •			300			344
						912
CORPORATE BONDS & NOTES 3.2%
BNG Bank NV
4.550% due 02/15/2019	CAD		1,800			1,322
Cooperatieve Rabobank UA
3.682% (US0003M + 0.860%) due 09/26/2023 ~	$		500			494
3.875% due 09/26/2023			600			603
6.875% due 03/19/2020 (h)	EUR		400			496
ING Bank NV
2.625% due 12/05/2022	$		700			690
ING Groep NV
3.797% (US0003M + 1.000%) due 10/02/2023 ~			700			693
4.100% due 10/02/2023			500			500
Mondelez International Holdings Netherlands BV
2.000% due 10/28/2021			200			192
NXP BV
4.125% due 06/15/2020			400			399
Stichting AK Rabobank Certificaten
6.500% due 12/29/2049 (g)	EUR		100			124
Teva Pharmaceutical Finance Netherlands BV
1.700% due 07/19/2019	$		900			888
						6,401
Total Netherlands (Cost $7,431)						7,313
NORWAY 0.4%
CORPORATE BONDS & NOTES 0.3%
DNB Boligkreditt A/S
2.500% due 03/28/2022	$		600			591
SOVEREIGN ISSUES 0.1%
Norway Government International Bond
3.750% due 05/25/2021	NOK		1,600			197
Total Norway (Cost $824)						788
PERU 2.3%
SOVEREIGN ISSUES 2.3%
Peru Government International Bond
5.940% due 02/12/2029	PEN		7,900			2,392
6.350% due 08/12/2028			6,800			2,122
Total Peru (Cost $4,433)						4,514
PORTUGAL 0.1%
CORPORATE BONDS & NOTES 0.1%
Banco Espirito Santo S.A.
4.000% due 01/21/2019 ^(b)	EUR		400			133
Total Portugal (Cost $450)						133
QATAR 1.3%
SOVEREIGN ISSUES 1.3%
Qatar Government International Bond
3.875% due 04/23/2023	$		1,600			1,621

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
4.500% due 01/20/2022	$		200	$		206
4.500% due 04/23/2028			800			837
Total Qatar (Cost $2,597)						2,664
SAUDI ARABIA 2.0%
SOVEREIGN ISSUES 2.0%
Saudi Government International Bond
2.375% due 10/26/2021	$		1,900			1,833
2.875% due 03/04/2023			200			192
3.250% due 10/26/2026			300			281
3.625% due 03/04/2028			400			379
4.000% due 04/17/2025			800			795
4.500% due 04/17/2030			600			598
Total Saudi Arabia (Cost $4,171)						4,078
SINGAPORE 0.2%
CORPORATE BONDS & NOTES 0.2%
BOC Aviation Ltd.
3.500% due 09/18/2027	$		200			188
DBS Bank Ltd.
3.300% due 11/27/2021			200			202
Total Singapore (Cost $400)						390
SLOVENIA 0.6%
SOVEREIGN ISSUES 0.6%
Slovenia Government International Bond
4.125% due 02/18/2019	$		1,100			1,102
Total Slovenia (Cost $1,102)						1,102
SOUTH KOREA 0.1%
CORPORATE BONDS & NOTES 0.1%
Kookmin Bank
2.125% due 10/21/2020	$		200			196
Total South Korea (Cost $198)						196
SPAIN 2.7%
CORPORATE BONDS & NOTES 0.2%
Banco Bilbao Vizcaya Argentaria S.A.
6.750% due 02/18/2020 •(g)(h)	EUR		200			228
Telefonica Emisiones S.A.
5.134% due 04/27/2020	$		200			204
						432
SOVEREIGN ISSUES 2.5%
Autonomous Community of Andalusia
4.850% due 03/17/2020	EUR		500			607
Autonomous Community of Catalonia
4.220% due 04/26/2035			100			119
4.900% due 09/15/2021			200			247
4.950% due 02/11/2020			1,000			1,193
Autonomous Community of Madrid
4.688% due 03/12/2020			500			606
Spain Government International Bond
1.400% due 07/30/2028			2,000			2,289
2.150% due 10/31/2025			20			25
						5,086
Total Spain (Cost $5,586)						5,518
SUPRANATIONAL 0.5%
CORPORATE BONDS & NOTES 0.5%
European Investment Bank
0.500% due 07/21/2023	AUD		600			383
6.500% due 08/07/2019			900			650
Total Supranational (Cost $1,134)						1,033

14 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
SWEDEN 5.5%
CORPORATE BONDS & NOTES 5.5%
Lansforsakringar Hypotek AB
1.250% due 09/20/2023	SEK		10,200	$		1,179
2.250% due 09/21/2022			11,000			1,320
Nordea Hypotek AB
1.000% due 04/08/2022			17,200			1,982
Skandinaviska Enskilda Banken AB
1.500% due 12/15/2021			3,000			351
Stadshypotek AB
1.500% due 12/15/2021			13,000			1,520
4.500% due 09/21/2022			18,000			2,335
Sveriges Sakerstallda Obligationer AB
1.250% due 06/15/2022			2,000			232
2.000% due 06/17/2026			4,000			475
Swedbank Hypotek AB
1.000% due 09/15/2021			4,100			473
1.000% due 06/15/2022			9,900			1,141
Total Sweden (Cost $10,891)						11,008
SWITZERLAND 1.1%
CORPORATE BONDS & NOTES 1.0%
UBS AG
2.200% due 06/08/2020	$		500			492
3.347% due 06/08/2020 •			700			700
7.625% due 08/17/2022 (h)			750			801
						1,993
SOVEREIGN ISSUES 0.1%
Switzerland Government International Bond
3.500% due 04/08/2033	CHF		100			151
Total Switzerland (Cost $2,197)						2,144
UNITED ARAB EMIRATES 0.6%
SOVEREIGN ISSUES 0.6%
Emirate of Abu Dhabi Government International Bond
2.500% due 10/11/2022	$		700			681
3.125% due 10/11/2027			500			479
Total United Arab Emirates (Cost $1,196)						1,160
UNITED KINGDOM 8.9%
CORPORATE BONDS & NOTES 5.5%
Barclays Bank PLC
7.625% due 11/21/2022 (h)	$		200			208
Barclays PLC
4.046% (US0003M + 1.430%) due 02/15/2023 ~			200			192
4.728% (US0003M + 2.110%) due 08/10/2021 ~			400			403
6.500% due 09/15/2019 •(g)(h)	EUR		700			784
7.000% due 09/15/2019 •(g)(h)	GBP		300			375
7.750% due 09/15/2023 •(g)(h)	$		500			482
8.000% due 12/15/2020 •(g)(h)	EUR		700			852
British Telecommunications PLC
2.350% due 02/14/2019	$		330			330
Co-operative Group Holdings Ltd.
6.875% due 07/08/2020 Ø	GBP		200			266
HSBC Holdings PLC
6.500% due 03/23/2028 •(g)(h)	$		300			273
Lloyds Bank PLC
4.875% due 03/30/2027	GBP		600			926
Lloyds Banking Group PLC
7.000% due 06/27/2019 •(g)(h)			600			767
7.875% due 06/27/2029 •(g)(h)			200			274
Natwest Markets PLC
0.084% (EUR003M + 0.400%) due 03/02/2020 ~	EUR		100			114
0.625% due 03/02/2022			100			111

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
RAC Bond Co. PLC
4.870% due 05/06/2046	GBP		200	$		244
Reckitt Benckiser Treasury Services PLC
3.384% (US0003M + 0.560%) due 06/24/2022 ~	$		300			295
Royal Bank of Scotland Group PLC
2.500% due 03/22/2023	EUR		500			585
Santander UK Group Holdings PLC
2.875% due 10/16/2020	$		900			886
2.875% due 08/05/2021			300			290
3.571% due 01/10/2023			200			192
6.750% due 06/24/2024 •(g)(h)	GBP		400			502
7.375% due 06/24/2022 •(g)(h)			200			257
Tesco PLC
6.125% due 02/24/2022			83			117
Tesco Property Finance PLC
5.801% due 10/13/2040			147			213
Virgin Media Secured Finance PLC
5.000% due 04/15/2027			300			363
Virgin Money PLC
2.250% due 04/21/2020			500			636
						10,937
NON-AGENCY MORTGAGE-BACKED SECURITIES 2.1%
Eurohome UK Mortgages PLC
1.056% due 06/15/2044 •			578			706
Eurosail PLC
1.850% due 06/13/2045 •			528			662
Ripon Mortgages PLC
1.689% due 08/20/2056 •			833			1,056
Stanlington PLC
1.903% due 06/12/2046 •			728			920
Towd Point Mortgage Funding PLC
2.089% due 02/20/2054 •			702			896
						4,240
		SHARES
PREFERRED SECURITIES 0.1%
Nationwide Building Society
10.250% ~			1,360			242
		PRINCIPAL AMOUNT (000S)
SOVEREIGN ISSUES 1.2%
United Kingdom Gilt
4.250% due 12/07/2040 (j)	$		1,300			2,401
Total United Kingdom (Cost $18,773)						17,820
UNITED STATES 56.1%
ASSET-BACKED SECURITIES 3.7%
Amortizing Residential Collateral Trust
3.206% due 10/25/2031 •	$		1			1
Conseco Finance Securitizations Corp.
7.490% due 07/01/2031 Ø			965			1,045
Countrywide Asset-Backed Certificates
2.726% due 06/25/2047 •			1,000			954
2.906% due 08/25/2034 •			140			138
Credit-Based Asset Servicing & Securitization Trust
2.566% due 11/25/2036 •			18			11
EMC Mortgage Loan Trust
3.406% due 05/25/2043 •			79			79
Home Equity Mortgage Trust
6.000% due 01/25/2037 ^Ø			161			82
JPMorgan Mortgage Acquisition Trust
2.786% due 03/25/2047 •			1,632			1,456
Morgan Stanley ABS Capital, Inc. Trust
2.616% due 03/25/2037 •			1,040			541
2.756% due 08/25/2036 •			2,500			1,599

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
NovaStar Mortgage Funding Trust
2.636% due 03/25/2037 •	$		832	$		622
Renaissance Home Equity Loan Trust
5.294% due 01/25/2037 Ø			459			243
Securitized Asset-Backed Receivables LLC Trust
2.556% due 12/25/2036 •			7			4
Soundview Home Loan Trust
2.756% due 11/25/2036 •			600			552
Structured Asset Securities Corp. Mortgage Loan Trust
3.849% due 04/25/2035 •			8			7
Terwin Mortgage Trust
3.446% due 11/25/2033 •			13			13
Washington Mutual Asset-Backed Certificates Trust
2.566% due 10/25/2036 •			40			19
						7,366
CORPORATE BONDS & NOTES 14.8%
AIG Global Funding
3.277% (US0003M + 0.480%) due 07/02/2020 ~			400			400
Allergan Sales LLC
5.000% due 12/15/2021			200			206
Ally Financial, Inc.
3.750% due 11/18/2019			200			200
American Tower Corp.
3.400% due 02/15/2019			700			700
Anheuser-Busch InBev Finance, Inc.
3.300% due 02/01/2023			200			195
Arrow Electronics, Inc.
3.500% due 04/01/2022			400			395
AT&T, Inc.
1.800% due 09/05/2026	EUR		500			570
3.086% (US0003M + 0.650%) due 01/15/2020 ~	$		900			899
3.386% (US0003M + 0.950%) due 07/15/2021 ~			900			897
Bank of America Corp.
5.875% due 03/15/2028 •(g)			300			274
BAT Capital Corp.
3.204% due 08/14/2020 •			300			297
3.557% due 08/15/2027			400			356
Baxalta, Inc.
2.875% due 06/23/2020			179			177
Bayer U.S. Finance LLC
3.798% (US0003M + 1.010%) due 12/15/2023 ~			300			287
4.250% due 12/15/2025			200			195
BMW U.S. Capital LLC
2.984% (US0003M + 0.370%) due 08/14/2020 ~			500			496
Boston Scientific Corp.
2.850% due 05/15/2020			200			199
Campbell Soup Co.
3.300% due 03/15/2021			100			100
3.650% due 03/15/2023			100			98
Cardinal Health, Inc.
1.948% due 06/14/2019			500			497
Cboe Global Markets, Inc.
1.950% due 06/28/2019			200			199
CenterPoint Energy Resources Corp.
3.550% due 04/01/2023			100			100
Charter Communications Operating LLC
4.464% due 07/23/2022			900			909
6.384% due 10/23/2035			600			618
Citigroup, Inc.
3.696% (US0003M + 0.930%) due 06/07/2019 ~			600			601
Citizens Bank N.A.
3.259% (US0003M + 0.570%) due 05/26/2020 ~			600			599
Comcast Corp.
3.127% (US0003M + 0.330%) due 10/01/2020 ~			200			199

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 15

Schedule of Investments PIMCO Global Bond Opportunities Portfolio (Unhedged) (Cont.)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Continental Resources, Inc.
4.375% due 01/15/2028	$		100	$		94
CVS Health Corp.
3.700% due 03/09/2023			100			99
4.100% due 03/25/2025			100			99
4.300% due 03/25/2028			200			196
Dell International LLC
3.480% due 06/01/2019			1,300			1,296
Dominion Energy Gas Holdings LLC
3.388% (US0003M + 0.600%) due 06/15/2021 ~			200			200
eBay, Inc.
2.150% due 06/05/2020			400			395
Emera U.S. Finance LP
2.150% due 06/15/2019			500			496
EPR Properties
4.500% due 06/01/2027			300			290
Equifax, Inc.
3.486% (US0003M + 0.870%) due 08/15/2021 ~			100			99
Equinix, Inc.
2.875% due 03/15/2024	EUR		200			229
ERAC USA Finance LLC
5.250% due 10/01/2020	$		500			516
Ford Motor Credit Co. LLC
0.054% due 12/01/2021 •	EUR		800			856
0.114% due 05/14/2021 •			100			110
2.375% due 03/12/2019	$		200			200
3.408% (US0003M + 1.000%) due 01/09/2020 ~			400			396
Fortune Brands Home & Security, Inc.
4.000% due 09/21/2023			200			198
General Motors Financial Co., Inc.
3.100% due 01/15/2019			300			300
3.550% due 04/09/2021			100			99
GLP Capital LP
5.300% due 01/15/2029			400			393
Harley-Davidson Financial Services, Inc.
3.647% (US0003M + 0.940%) due 03/02/2021 ~			200			200
Harris Corp.
3.000% (US0003M + 0.480%) due 04/30/2020 ~			300			299
HCA, Inc.
5.625% due 09/01/2028			600			580
International Lease Finance Corp.
6.250% due 05/15/2019			800			807
8.250% due 12/15/2020			300			323
JPMorgan Chase Bank N.A.
3.086% due 04/26/2021 •			300			299
Kinder Morgan Energy Partners LP
6.500% due 04/01/2020			100			104
6.850% due 02/15/2020			1,100			1,139
McDonald’s Corp.
2.939% (US0003M + 0.430%) due 10/28/2021 ~			100			99
Molson Coors Brewing Co.
2.100% due 07/15/2021			300			289
Morgan Stanley
3.168% (US0003M + 0.550%) due 02/10/2021 ~			100			99
3.414% (US0003M + 0.800%) due 02/14/2020 ~			600			600
Navient Corp.
8.000% due 03/25/2020			100			102
NextEra Energy Capital Holdings, Inc.
3.053% (US0003M + 0.315%) due 09/03/2019 ~			600			599
3.107% (US0003M + 0.400%) due 08/21/2020 ~			200			200
Sempra Energy
3.238% (US0003M + 0.450%) due 03/15/2021 ~			200			196

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Spectra Energy Partners LP
3.451% (US0003M + 0.700%) due 06/05/2020 ~	$		100	$		99
Spirit AeroSystems, Inc.
3.588% (US0003M + 0.800%) due 06/15/2021 ~			100			99
Sprint Spectrum Co. LLC
3.360% due 03/20/2023			413			408
4.738% due 09/20/2029			200			197
Textron, Inc.
3.168% (US0003M + 0.550%) due 11/10/2020 ~			400			397
Time Warner Cable LLC
8.250% due 04/01/2019			500			506
United Technologies Corp.
3.950% due 08/16/2025			200			199
4.125% due 11/16/2028			200			199
4.625% due 11/16/2048			100			97
Verizon Communications, Inc.
3.376% due 02/15/2025			424			412
4.329% due 09/21/2028			805			810
Volkswagen Group of America Finance LLC
2.125% due 05/23/2019			500			498
3.388% (US0003M + 0.770%) due 11/13/2020 ~			200			199
3.558% (US0003M + 0.940%) due 11/12/2021 ~			300			297
WEA Finance LLC
3.750% due 09/17/2024			200			199
Wells Fargo & Co.
3.597% (US0003M + 1.110%) due 01/24/2023 ~			600			595
Wells Fargo Bank N.A.
3.550% due 08/14/2023			500			498
Zimmer Biomet Holdings, Inc.
2.700% due 04/01/2020			100			99
3.150% due 04/01/2022			400			391
3.375% due 11/30/2021			300			297
						29,655
LOAN PARTICIPATIONS AND ASSIGNMENTS 0.4%
CenturyLink, Inc.
5.272% (LIBOR03M + 2.750%) due 01/31/2025 ~			297			278
Las Vegas Sands LLC
4.272% (LIBOR03M + 1.750%) due 03/27/2025 ~			488			467
						745
MUNICIPAL BONDS & NOTES 1.0%
Tobacco Settlement Finance Authority, West Virginia Revenue Bonds, Series 2007
7.467% due 06/01/2047			2,055			2,018
NON-AGENCY MORTGAGE-BACKED SECURITIES 6.0%
Adjustable Rate Mortgage Trust
4.156% due 09/25/2035 ^~			10			9
American Home Mortgage Assets Trust
2.696% (US0001M + 0.190%) due 05/25/2046 ^~			235			216
2.716% due 10/25/2046 •			406			292
Banc of America Alternative Loan Trust
6.500% due 04/25/2036 ^			580			532
Banc of America Funding Trust
4.631% due 02/20/2036 ~			122			121
5.500% due 01/25/2036			161			137
6.020% due 10/20/2046 ^~			88			69
BCAP LLC Trust
2.676% due 01/25/2037 ^•			201			188
5.250% due 04/26/2037			769			639
Bear Stearns Adjustable Rate Mortgage Trust
3.123% due 05/25/2034 ~			6			5

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
3.961% due 05/25/2047 ^~	$		192	$		178
4.157% due 08/25/2033 ~			8			8
4.271% due 05/25/2034 ~			17			16
4.486% due 10/25/2033 ~			6			6
4.715% due 11/25/2034 ~			3			3
Bear Stearns ALT-A Trust
3.867% due 08/25/2036 ^~			151			100
4.144% due 11/25/2035 ^~			109			94
4.209% due 09/25/2035 ^~			99			83
Bear Stearns Structured Products, Inc. Trust
5.425% due 12/26/2046 ^~			78			73
Chase Mortgage Finance Trust
3.614% due 07/25/2037 ~			25			22
Chevy Chase Funding LLC Mortgage-Backed Certificates
2.686% due 07/25/2036 •			44			43
Citigroup Mortgage Loan Trust
4.280% due 10/25/2035 ^•			472			477
Citigroup Mortgage Loan Trust, Inc.
4.240% due 09/25/2035 •			18			19
Countrywide Alternative Loan Trust
2.665% due 12/20/2046 ^•			333			294
2.676% due 01/25/2037 ^•			149			145
2.680% due 03/20/2046 •			104			95
2.680% due 07/20/2046 ^•			203			155
2.786% due 02/25/2037 •			120			109
2.856% due 05/25/2037 ^•			52			30
2.923% due 11/25/2035 •			24			22
3.463% due 11/25/2035 •			24			22
4.118% due 11/25/2035 ^~			214			194
5.250% due 06/25/2035 ^			16			14
6.000% due 04/25/2037 ^			52			36
6.250% due 08/25/2037 ^			26			22
6.500% due 06/25/2036 ^			133			100
Countrywide Home Loan Mortgage Pass-Through Trust
2.776% due 04/25/2046 •			1,145			529
2.966% due 05/25/2035 •			56			51
3.086% due 04/25/2035 •			12			11
3.106% due 03/25/2035 •			425			393
3.126% due 02/25/2035 •			531			507
3.146% due 03/25/2035 •			63			57
3.166% due 02/25/2035 •			6			6
3.234% due 05/25/2047 ~			91			80
3.266% due 09/25/2034 •			5			5
3.910% due 08/25/2034 ^~			3			3
4.290% due 11/25/2034 ~			13			12
4.587% due 11/19/2033 ~			6			7
4.667% due 02/20/2036 ^•			271			247
5.500% due 10/25/2035			70			62
Credit Suisse First Boston Mortgage Securities Corp.
6.500% due 04/25/2033			1			1
Credit Suisse Mortgage Capital Trust
6.500% due 07/26/2036 ^			116			59
Deutsche ALT-B Securities, Inc. Mortgage Loan Trust
5.886% due 10/25/2036 ^Ø			207			192
GreenPoint Mortgage Funding Trust
3.046% due 11/25/2045 •			8			7
GSR Mortgage Loan Trust
3.605% due 06/25/2034 ~			3			3
3.830% due 03/25/2033 •			5			5
4.300% due 09/25/2035 ~			102			104
HarborView Mortgage Loan Trust
3.007% due 12/19/2036 ^•			129			125
IndyMac Mortgage Loan Trust
3.874% due 09/25/2035 ^~			159			147
JPMorgan Mortgage Trust
4.115% due 11/25/2033 ~			5			5
4.216% due 01/25/2037 ^~			178			171
4.336% due 02/25/2035 ~			5			4
Luminent Mortgage Trust
2.746% due 04/25/2036 •			361			312
MASTR Adjustable Rate Mortgages Trust
4.131% due 05/25/2034 ~			377			374
MASTR Alternative Loan Trust
2.906% due 03/25/2036 ^•			45			8
Mellon Residential Funding Corp. Mortgage Pass-Through Trust
2.895% due 12/15/2030 •			5			5

16 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Merrill Lynch Mortgage Investors Trust
2.716% due 02/25/2036 •	$		69	$		66
4.302% due 02/25/2033 ~			10			10
4.324% due 02/25/2036 ~			31			31
Merrill Lynch Mortgage-Backed Securities Trust
3.851% due 04/25/2037 ^~			6			5
Nomura Asset Acceptance Corp. Alternative Loan Trust
3.961% due 10/25/2035 ~			12			12
OBX Trust
3.156% due 06/25/2057 •			448			445
Residential Accredit Loans, Inc. Trust
2.716% due 04/25/2046 •			150			69
6.000% due 12/25/2036 ^			323			295
Residential Funding Mortgage Securities, Inc. Trust
5.500% due 11/25/2035 ^			80			74
Structured Adjustable Rate Mortgage Loan Trust
4.232% due 02/25/2034 ~			8			8
4.369% due 04/25/2034 ~			15			15
4.385% due 09/25/2034 ~			11			12
Structured Asset Mortgage Investments Trust
2.696% due 07/25/2046 ^•			322			267
2.716% due 05/25/2036 •			81			75
2.720% due 07/19/2035 •			117			116
2.726% due 05/25/2036 •			372			336
2.726% due 09/25/2047 •			365			345
2.786% due 02/25/2036 ^•			406			385
3.050% due 07/19/2034 •			2			2
3.170% due 03/19/2034 •			4			4
Structured Asset Securities Corp.
2.786% due 01/25/2036 •			109			101
SunTrust Alternative Loan Trust
3.156% due 12/25/2035 ^•			629			515
WaMu Mortgage Pass-Through Certificates Trust
2.579% due 07/25/2046 •			151			148
2.776% due 12/25/2045 •			32			32
2.816% due 01/25/2045 •			5			5
2.857% due 02/25/2047 ^•			289			272
3.030% due 01/25/2037 ^~			23			21
3.146% due 01/25/2045 •			5			5
3.525% due 06/25/2037 ^~			54			50
3.557% due 08/25/2042 •			4			3
3.645% due 12/25/2036 ^~			30			29
3.676% due 12/25/2036 ^~			4			4
3.770% due 03/25/2034 ~			19			20
3.793% due 02/25/2033 ~			59			59
3.994% due 09/25/2036 ~			74			73
4.079% due 06/25/2033 ~			5			5
Washington Mutual Mortgage Pass-Through Certificates Trust
3.097% due 07/25/2046 ^•			48			35
Wells Fargo Mortgage-Backed Securities Trust
4.561% due 04/25/2036 ~			4			4
						12,013

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
U.S. GOVERNMENT AGENCIES 22.4%
Fannie Mae
2.626% due 03/25/2034 •	$		3	$		3
2.656% due 08/25/2034 •			2			2
2.906% due 06/25/2036 •			21			21
3.000% due 08/01/2042 - 08/01/2043			220			217
4.035% due 10/01/2034 •			1			1
4.270% due 12/01/2034 •			3			3
4.490% due 11/01/2034 •			23			24
6.000% due 07/25/2044			18			20
Fannie Mae, TBA
3.500% due 01/01/2049 - 02/01/2049			30,900			30,895
4.000% due 01/01/2049			4,400			4,487
Freddie Mac
1.567% due 01/15/2038 ~(a)			302			16
2.649% due 01/15/2038 •			302			300
2.786% due 09/25/2031 •			15			14
3.000% due 03/01/2045			693			679
3.357% due 10/25/2044 •			31			31
3.500% due 07/01/2048			4,933			4,935
3.997% due 04/01/2037 •			24			26
4.226% due 02/01/2029 •			2			2
6.000% due 04/15/2036			236			263
Freddie Mac, TBA
3.000% due 01/01/2049			3,000			2,924
Ginnie Mae
3.125% (H15T1Y + 1.500%) due 11/20/2024 ~			1			1
6.000% due 09/20/2038			4			4
						44,868
U.S. TREASURY OBLIGATIONS 7.8%
U.S. Treasury Bonds
2.875% due 05/15/2043 (n)			100			98
3.125% due 02/15/2043			100			102
U.S. Treasury Inflation Protected Securities (f)
0.125% due 04/15/2022 (j)			1,248			1,208
0.125% due 07/15/2024 (l)			799			766
0.500% due 01/15/2028 (j)			2,153			2,056
1.000% due 02/15/2048 (j)			718			682
1.375% due 02/15/2044 (n)			326			337
1.750% due 01/15/2028 (j)			2,414			2,566
2.500% due 01/15/2029 (j)			2,108			2,402
3.875% due 04/15/2029 (j)			708			901
U.S. Treasury Notes
2.625% due 06/15/2021 (n)			200			201
2.875% due 04/30/2025 (j)(n)			4,300			4,376
						15,695
Total United States (Cost $109,268)						112,360

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
SHORT-TERM INSTRUMENTS 11.3%
ARGENTINA TREASURY BILLS 0.1%
(1.557)% due 02/28/2019 - 04/30/2019 (c)(d)	ARS		6,058	$		167
FRANCE TREASURY BILLS 5.8%
(0.633)% due 01/04/2019 - 01/16/2019 (c)(d)	EUR		10,200			11,690
JAPAN TREASURY BILLS 4.3%
(0.159)% due 03/11/2019 (c)(d)	JPY		940,000			8,578
NETHERLANDS TREASURY BILLS 0.6%
(0.639)% due 01/31/2019 (d)(e)	EUR		1,000			1,147
NIGERIA TREASURY BILLS 0.5%
12.144% due 04/04/2019 (d)(e)	NGN		350,000			931
Total Short-Term Instruments (Cost $22,546)						22,513
Total Investments in Securities (Cost $246,540)						248,161
		SHARES
INVESTMENTS IN AFFILIATES 1.7%
SHORT-TERM INSTRUMENTS 1.7%
CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 1.7%
PIMCO Short Asset Portfolio			339,863			3,372
PIMCO Short-Term Floating NAV Portfolio III			1,310			13
Total Short-Term Instruments (Cost $3,418)						3,385
Total Investments in Affiliates (Cost $3,418)						3,385
Total Investments 125.6% (Cost $249,958)				$		251,546
Financial Derivative Instruments (k)(m) (0.7)% (Cost or Premiums, net $1,401)						(1,326	)
Other Assets and Liabilities, net (24.9)%						(49,882	)
Net Assets 100.0%				$		200,338

NOTES TO SCHEDULE OF INVESTMENTS:

* A zero balance may reflect actual amounts rounding to less than one thousand.

^ Security is in default.

« Security valued using significant unobservable inputs (Level 3).

~ Variable or Floating rate security. Rate shown is the rate in effect as of period end. Certain variable rate securities are not based on a published reference rate and spread, rather are determined by the issuer or agent and are based on current market conditions. Reference rate is as of reset date, which may vary by security. These securities may not indicate a reference rate and/or spread in their description.

• Rate shown is the rate in effect as of period end. The rate may be based on a fixed rate, a capped rate or a floor rate and may convert to a variable or floating rate in the future. These securities do not indicate a reference rate and spread in their description.

Ø Coupon represents a rate which changes periodically based on a predetermined schedule or event. Rate shown is the rate in effect as of period end.

(a) Interest only security.

(b) Security is not accruing income as of the date of this report.

(c) Coupon represents a weighted average yield to maturity.

(d) Zero coupon security.

(e) Coupon represents a yield to maturity.

(f) Principal amount of security is adjusted for inflation.

(g) Perpetual maturity; date shown, if applicable, represents next contractual call date.

(h) Contingent convertible security.

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 17

Schedule of Investments PIMCO Global Bond Opportunities Portfolio (Unhedged) (Cont.)

(i)  RESTRICTED SECURITIES:

Issuer Description	Coupon	Maturity Date		Acquisition Date		Cost		Market Value		Market Value as Percentage of Net Assets
Rise Ltd.	4.750%		02/15/2039		02/11/2014		$    1,695	$	1,657		0.83%

BORROWINGS AND OTHER FINANCING TRANSACTIONS

REVERSE REPURCHASE AGREEMENTS:

Counterparty	Borrowing Rate(1)			Settlement Date		Maturity Date		Amount Borrowed(1)				Payable for Reverse Repurchase Agreements
BOM		2.550	%		11/05/2018		02/04/2019		$	(3,251	)	$	(3,264	)
GRE		2.540			11/13/2018		02/13/2019			(1,716	)		(1,722	)
IND		0.830			10/04/2018		01/15/2019		GBP	(1,868	)		(2,386	)
		2.550			11/14/2018		01/14/2019		$	(2,545	)		(2,554	)
		2.570			11/20/2018		01/22/2019			(2,042	)		(2,048	)
		2.610			12/10/2018		03/08/2019			(2,993	)		(2,998	)
SCX		(0.450	)		10/18/2018		01/22/2019		EUR	(3,182	)		(3,642	)
Total Reverse Repurchase Agreements												$	(18,614	)

SALE-BUYBACK TRANSACTIONS:

Counterparty	Borrowing Rate(1)			Borrowing Date		Maturity Date		Amount Borrowed(1)				Payable for Sale-Buyback Transactions
TDM		1.970	%		12/10/2018		01/07/2019		CAD	(588	)	$	(439	)
Total Sale-Buyback Transactions												$	(439	)

SHORT SALES:

Description	Coupon		Maturity Date		Principal Amount			Proceeds			Payable for Short Sales(2)
Canada (0.7)%
Sovereign Issues (0.7)%
Canada Government Bond		2.750%		12/01/2048		CAD	1,800	$	(1,502	)	$	(1,488	)
Total Short Sales (0.7)%								$	(1,502	)	$	(1,488	)

BORROWINGS AND OTHER FINANCING TRANSACTIONS SUMMARY

The following is a summary by counterparty of the market value of Borrowings and Other Financing Transactions and collateral pledged/(received) as of December 31, 2018:

Counterparty	Repurchase Agreement Proceeds to be Received		Payable for Reverse Repurchase Agreements			Payable for Sale-Buyback Transactions			Payable for Short Sales(2)			Total Borrowings and Other Financing Transactions			Collateral Pledged/(Received)		Net Exposure(3)
Global/Master Repurchase Agreement
BOM	$	0	$	(3,264	)	$	0		$	0		$	(3,264	)	$	3,351	$	87
GRE		0		(1,722	)		0			0			(1,722	)		1,731		9
IND		0		(9,986	)		0			0			(9,986	)		9,915		(71	)
SCX		0		(3,642	)		0			0			(3,642	)		3,691		49
Master Securities Forward Transaction Agreement
TDM		0		0			(439	)		(1,488	)		(1,927	)		430		(1,497	)
Total Borrowings and Other Financing Transactions	$	0	$	(18,614	)	$	(439	)	$	(1,488	)

CERTAIN TRANSFERS ACCOUNTED FOR AS SECURED BORROWINGS

Remaining Contractual Maturity of the Agreements

	Overnight and Continuous		Up to 30 days			31-90 days			Greater Than 90 days		Total
Reverse Repurchase Agreements
Sovereign Issues	$	0	$	(6,028	)	$	0		$	0	$	(6,028	)
U.S. Treasury Obligations		0		(4,602	)		(7,984	)		0		(12,586	)
Total	$	0	$	(10,630	)	$	(7,984	)	$	0	$	(18,614	)

18 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

	Overnight and Continuous		Up to 30 days			31-90 days			Greater Than 90 days		Total
Sale-Buyback Transactions
Sovereign Issues	$	0	$	(439	)	$	0		$	0	$	(439	)
Total	$	0	$	(439	)	$	0		$	0	$	(439	)
Total Borrowings	$	0	$	(11,069	)	$	(7,984	)	$	0	$	(19,053	)
Payable for reverse repurchase agreements and sale-buyback financing transactions											$	(19,053	)

(j) Securities with an aggregate market value of $19,688 have been pledged as collateral under the terms of the above master agreements as of December 31, 2018.

⁽¹⁾ The average amount of borrowings outstanding during the period ended December 31, 2018 was $(10,677) at a weighted average interest rate of 1.391%. Average borrowings may include sale-buyback transactions and reverse repurchase agreements, if held during the period.

⁽²⁾ Payable for short sales includes $6 of accrued interest.

⁽³⁾ Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from borrowings and other financing transactions can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information regarding master netting arrangements.

(k)  FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED

PURCHASED OPTIONS:

OPTIONS ON EXCHANGE-TRADED FUTURES CONTRACTS
Description	Strike Price		Expiration Date		# of Contracts		Notional Amount		Cost		Market Value
Call - CBOT U.S. Treasury 10-Year Note March 2019 Futures	$	130.000		02/22/2019		17	$	17	$	0	$	1
Call - CBOT U.S. Treasury 10-Year Note March 2019 Futures		131.000		02/22/2019		3		3		0		0
Call - CBOT U.S. Treasury 10-Year Note March 2019 Futures		131.500		02/22/2019		116		116		1		2
Put - CBOT U.S. Treasury 5-Year Note March 2019 Futures		104.000		02/22/2019		93		93		1		0
Put - CBOT U.S. Treasury 5-Year Note March 2019 Futures		106.000		02/22/2019		59		59		1		0
Put - CBOT U.S. Treasury 5-Year Note March 2019 Futures		106.500		02/22/2019		310		310		2		0
Put - CBOT U.S. Treasury Ultra Long-Term Bond March 2019 Futures		100.000		02/22/2019		36		36		0		0
Total Purchased Options									$	5	$	3

FUTURES CONTRACTS:

LONG FUTURES CONTRACTS
	Expiration Month		# of Contracts		Notional Amount		Unrealized Appreciation/ (Depreciation)		Variation Margin
Description									Asset		Liability
3-Month Euribor March Futures		03/2019		143	$	41,081	$	2	$	0	$	(2	)
90-Day Eurodollar March Futures		03/2019		924		224,740		81		0		0
Australia Government 3-Year Note March Futures		03/2019		240		18,969		68		24		0
Australia Government 10-Year Bond March Futures		03/2019		63		5,887		57		28		0
Call Options Strike @ EUR 159.000 on Euro-BTP Italy Government Bond March 2019 Futures		02/2019		46		1		0		0		0
Call Options Strike @ EUR 165.000 on Euro-OAT France Government 10-Year Bond March 2019 Futures		02/2019		312		4		0		0		0
Call Options Strike @ EUR 178.000 on Euro-Bund 10-Year Bond March 2019 Futures		02/2019		14		0		0		0		0
Euro-Bobl March Futures		03/2019		183		27,786		64		0		(6	)
Euro-Buxl 30-Year Bond March Futures		03/2019		6		1,242		28		0		(6	)
Put Options Strike @ EUR 127.250 on Euro-Bobl March 2019 Futures		02/2019		186		1		0		0		0
Put Options Strike @ EUR 128.500 on Euro-Bobl March 2019 Futures		02/2019		59		0		0		0		0
U.S. Treasury 5-Year Note March Futures		03/2019		462		52,986		559		115		0
U.S. Treasury Ultra Long-Term Bond March Futures		03/2019		36		5,784		301		21		0
United Kingdom 90-Day LIBOR Sterling Interest Rate September Futures		09/2019		342		53,914		50		3		(8	)
							$	1,210	$	191	$	(22	)

SHORT FUTURES CONTRACTS
	Expiration Month		# of Contracts		Notional Amount			Unrealized Appreciation/ (Depreciation)			Variation Margin
Description											Asset		Liability
90-Day Eurodollar December Futures		12/2019		237	$	(57,680	)	$	(125	)	$	0	$	(6	)
90-Day Eurodollar December Futures		12/2020		285		(69,490	)		(563	)		0		(25	)
90-Day Eurodollar March Futures		03/2020		402		(97,932	)		(247	)		0		(20	)
Call Options Strike @ EUR 133.000 on Euro-Bobl March 2019 Futures		02/2019		28		(7	)		(1	)		1		0
Call Options Strike @ EUR 164.500 on Euro-Bund 10-Year Bond March 2019 Futures		02/2019		13		(10	)		(3	)		2		0

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 19

Schedule of Investments PIMCO Global Bond Opportunities Portfolio (Unhedged) (Cont.)

	Expiration Month		# of Contracts		Notional Amount			Unrealized Appreciation/ (Depreciation)			Variation Margin
Description											Asset		Liability
Canada Government 10-Year Bond March Futures		03/2019		4	$	(401	)	$	(12	)	$	0	$	0
Euro-BTP Italy Government Bond March Futures		03/2019		93		(13,620	)		(334	)		0		(7	)
Euro-Bund 10-Year Bond March Futures		03/2019		11		(2,061	)		(14	)		2		0
Euro-OAT France Government 10-Year Bond March Futures		03/2019		267		(46,132	)		(215	)		64		0
Put Options Strike @ EUR 131.250 on Euro-Bobl March 2019 Futures		02/2019		28		(2	)		3			0		0
Put Options Strike @ EUR 160.000 on Euro-Bund 10-Year Bond March 2019 Futures		02/2019		13		(3	)		3			0		0
U.S. Treasury 10-Year Note March Futures		03/2019		111		(13,544	)		(324	)		0		(43	)
United Kingdom 90-Day LIBOR Sterling Interest Rate September Futures		09/2020		342		(53,833	)		(108	)		3		(16	)
United Kingdom Long Gilt March Futures		03/2019		160		(25,119	)		(168	)		27		(82	)
								$	(2,108	)	$	99	$	(199	)
Total Futures Contracts								$	(898	)	$	290	$	(221	)

SWAP AGREEMENTS:

CREDIT DEFAULT SWAPS ON CORPORATE ISSUES - BUY PROTECTION⁽¹⁾

	Fixed (Pay) Rate			Payment Frequency		Maturity Date		Implied Credit Spread at December 31, 2018(3)			Notional Amount(4)			Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)		Market Value(5)			Variation Margin
Reference Entity																						Asset		Liability
BASF SE		(1.000	)%		Quarterly		12/20/2020		0.229	%		EUR	200	$	(6	)	$	2	$	(4	)	$	0	$	0
Reynolds American, Inc.		(1.000	)		Quarterly		12/20/2020		0.283			$	700		(19	)		9		(10	)		0		0
United Utilities PLC		(1.000	)		Quarterly		12/20/2020		0.292			EUR	200		(4	)		1		(3	)		0		0
														$	(29	)	$	12	$	(17	)	$	0	$	0

CREDIT DEFAULT SWAPS ON CORPORATE ISSUES - SELL PROTECTION⁽²⁾

	Fixed Receive Rate			Payment Frequency		Maturity Date		Implied Credit Spread at December 31, 2018(3)			Notional Amount(4)			Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Market Value(5)			Variation Margin
Reference Entity																							Asset		Liability
Daimler AG		1.000	%		Quarterly		12/20/2020		0.442	%		EUR	100	$	2		$	(1	)	$	1		$	0	$	0
Deutsche Bank AG		1.000			Quarterly		12/20/2019		1.450				100		(1	)		1			0			0		0
Shell International Finance BV		1.000			Quarterly		12/20/2026		0.843				200		(3	)		6			3			0		0
Tesco PLC		1.000			Quarterly		06/20/2025		2.005				400		(13	)		(15	)		(28	)		0		(1	)
														$	(15	)	$	(9	)	$	(24	)	$	0	$	(1	)

CREDIT DEFAULT SWAPS ON CREDIT INDICES - BUY PROTECTION⁽¹⁾

	Fixed (Pay) Rate			Payment Frequency		Maturity Date		Notional Amount(4)			Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)		Market Value(5)			Variation Margin
Index/Tranches																			Asset		Liability
CDX.HY-31 5-Year Index		(5.000	)%		Quarterly		12/20/2023		$	1,200	$	(88	)	$	62	$	(26	)	$	0	$	(2	)
iTraxx Europe Main 28 5-Year Index		(1.000	)		Quarterly		12/20/2022		EUR	6,400		(199	)		101		(98	)		0		(13	)
iTraxx Europe Senior 30 5-Year Index		(1.000	)		Quarterly		12/20/2023			3,700		9			9		18			0		(13	)
											$	(278	)	$	172	$	(106	)	$	0	$	(28	)

CREDIT DEFAULT SWAPS ON CREDIT INDICES - SELL PROTECTION⁽²⁾

	Fixed Receive Rate			Payment Frequency		Maturity Date		Notional Amount(4)		Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Market Value(5)			Variation Margin
Index/Tranches																			Asset		Liability
CDX.EM-28 5-Year Index		1.000	%		Quarterly		12/20/2022	$	2,231	$	(9	)	$	(46	)	$	(55	)	$	2	$	0
CDX.EM-29 5-Year Index		1.000			Quarterly		06/20/2023		1,400		(26	)		(25	)		(51	)		1		0
CDX.EM-30 5-Year Index		1.000			Quarterly		12/20/2023		8,600		(405	)		3			(402	)		6		0
										$	(440	)	$	(68	)	$	(508	)	$	9	$	0

INTEREST RATE SWAPS - BASIS SWAPS

Pay Floating Rate Index	Receive Floating Rate Index	Payment Frequency		Maturity Date		Notional Amount		Premiums Paid/(Received)		Unrealized Appreciation/ (Depreciation)			Market Value			Variation Margin
																Asset		Liability
3-Month  USD-LIBOR(6)	1-Month USD-LIBOR + 0.117%		Quarterly		03/02/2020	$	3,400	$	0	$	1		$	1		$	0	$	0
3-Month  USD-LIBOR(6)	1-Month USD-LIBOR + 0.084%		Quarterly		04/26/2022		12,800		0		(2	)		(2	)		0		(1	)
3-Month  USD-LIBOR	1-Month USD-LIBOR + 0.084%		Quarterly		06/12/2022		2,900		0		3			3			0		0
3-Month  USD-LIBOR	1-Month USD-LIBOR + 0.070%		Quarterly		06/12/2022		2,000		0		3			3			0		0
3-Month  USD-LIBOR	1-Month USD-LIBOR + 0.085%		Quarterly		06/19/2022		10,400		1		9			10			1		0
3-Month  USD-LIBOR(6)	1-Month USD-LIBOR + 0.073%		Quarterly		04/27/2023		6,300		0		0			0			0		0
								$	1	$	14		$	15		$	1	$	(1	)

20 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

INTEREST RATE SWAPS

Pay/Receive Floating Rate	Floating Rate Index	Fixed Rate			Payment Frequency	Maturity Date		Notional Amount			Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Market Value			Variation Margin
																				Asset		Liability
Receive	1-Day USD-Federal Funds Rate Compounded-OIS		2.673	%	Annual		04/30/2025		$	500	$	0		$	(13	)	$	(13	)	$	0	$	(1	)
Receive	1-Day USD-Federal Funds Rate Compounded-OIS		2.683		Annual		04/30/2025			1,500		1			(41	)		(40	)		0		(4	)
Receive	1-Day USD-Federal Funds Rate Compounded-OIS		2.684		Annual		04/30/2025			400		0			(11	)		(11	)		0		(1	)
Receive	1-Day USD-Federal Funds Rate Compounded-OIS		2.696		Annual		04/30/2025			500		0			(14	)		(14	)		0		(1	)
Receive	1-Day USD-Federal Funds Rate Compounded-OIS		2.710		Annual		04/30/2025			500		0			(15	)		(15	)		0		(1	)
Receive	1-Day USD-Federal Funds Rate Compounded-OIS		2.714		Annual		04/30/2025			900		0			(26	)		(26	)		0		(2	)
Pay	1-Year  BRL-CDI		6.930		Maturity		01/02/2020		BRL	400		(1	)		2			1			0		0
Pay	3-Month CAD-Bank Bill		2.300		Semi-Annual		07/16/2020		CAD	12,800		(20	)		40			20			2		0
Receive	3-Month CAD-Bank Bill		1.850		Semi-Annual		09/15/2027			7,200		299			(55	)		244			0		(6	)
Pay	3-Month CAD-Bank Bill		2.750		Semi-Annual		12/18/2048			1,900		(23	)		44			21			0		(10	)
Pay	3-Month  CHF-LIBOR		0.050		Annual		03/16/2026		CHF	600		(4	)		7			3			1		0
Pay(6)	3-Month  USD-LIBOR		3.200		Semi-Annual		04/01/2020		$	328,700		19			777			796			11		0
Receive	3-Month  USD-LIBOR		1.750		Semi-Annual		06/20/2020			16,200		317			(84	)		233			1		0
Receive(6)	3-Month  USD-LIBOR		3.200		Semi-Annual		04/01/2021			328,700		4			(1,111	)		(1,107	)		0		(45	)
Receive	3-Month  USD-LIBOR		2.250		Semi-Annual		12/20/2022			11,800		85			60			145			0		(18	)
Pay(6)	3-Month  USD-LIBOR		2.970		Semi-Annual		05/31/2023			12,100		7			192			199			22		0
Receive	3-Month  USD-LIBOR		2.000		Semi-Annual		06/20/2023			4,400		179			(72	)		107			0		(8	)
Receive	3-Month  USD-LIBOR		2.000		Semi-Annual		06/20/2023			1,300		53			(21	)		32			0		(2	)
Receive	3-Month  USD-LIBOR		1.750		Semi-Annual		12/21/2023			17,900		(377	)		1,075			698			0		(35	)
Pay	3-Month  USD-LIBOR		2.500		Semi-Annual		12/20/2027			14,200		(534	)		310			(224	)		52		0
Pay	3-Month  USD-LIBOR		3.200		Semi-Annual		10/11/2028			1,400		(5	)		66			61			5		0
Receive(6)	3-Month  USD-LIBOR		3.000		Semi-Annual		06/19/2029			3,500		(45	)		(41	)		(86	)		0		(15	)
Receive	3-Month  USD-LIBOR		2.750		Semi-Annual		12/20/2047			2,300		(25	)		79			54			0		(13	)
Receive	3-Month  USD-LIBOR		2.500		Semi-Annual		06/20/2048			1,400		156			(51	)		105			0		(8	)
Receive	3-Month  USD-LIBOR		3.000		Semi-Annual		12/19/2048			7,600		205			(422	)		(217	)		0		(45	)
Receive(6)	3-Month  USD-LIBOR		2.953		Semi-Annual		11/12/2049			400		(3	)		(4	)		(7	)		0		(3	)
Receive(6)	3-Month  USD-LIBOR		2.955		Semi-Annual		11/12/2049			1,800		(15	)		(18	)		(33	)		0		(11	)
Pay	3-Month  ZAR-JIBAR		7.250		Quarterly		06/20/2023		ZAR	7,100		1			(8	)		(7	)		1		0
Pay(6)	6-Month  EUR-EURIBOR		0.000		Annual		03/20/2021		EUR	1,900		1			5			6			0		0
Pay	6-Month  EUR-EURIBOR		2.500		Annual		03/21/2023			14,000		1,491			500			1,991			8		0
Pay(6)	6-Month  EUR-EURIBOR		0.500		Annual		03/20/2024			4,000		11			48			59			3		0
Pay(6)	6-Month  EUR-EURIBOR		0.500		Annual		06/19/2024			24,100		127			143			270			21		0
Pay(6)	6-Month  EUR-EURIBOR		1.000		Annual		03/20/2029			1,150		(7	)		26			19			2		0
Pay(6)	6-Month  EUR-EURIBOR		1.000		Annual		06/19/2029			15,700		61			111			172			24		0
Receive(6)	6-Month  EUR-EURIBOR		1.500		Annual		03/20/2049			8,950		212			(500	)		(288	)		0		(8	)
Pay(6)	6-Month  GBP-LIBOR		1.250		Annual		09/18/2020		GBP	21,300		(1	)		34			33			0		(2	)
Pay(6)	6-Month  GBP-LIBOR		1.500		Annual		12/18/2020			16,400		47			22			69			1		0
Pay(6)	6-Month  GBP-LIBOR		1.000		Semi-Annual		03/20/2021			8,400		(57	)		17			(40	)		0		0
Receive(6)	6-Month  GBP-LIBOR		1.500		Annual		09/16/2021			21,300		(12	)		(56	)		(68	)		0		(9	)
Receive(6)	6-Month  GBP-LIBOR		1.500		Annual		12/16/2021			16,400		(7	)		(41	)		(48	)		0		(9	)
Receive(6)	6-Month  GBP-LIBOR		1.500		Semi-Annual		03/20/2024			2,800		(2	)		(30	)		(32	)		0		(5	)
Pay(6)	6-Month  GBP-LIBOR		1.500		Semi-Annual		03/20/2029			4,000		(74	)		101			27			19		0
Receive(6)	6-Month  GBP-LIBOR		1.750		Semi-Annual		03/20/2049			900		(6	)		(53	)		(59	)		0		(10	)
Receive	6-Month  JPY-LIBOR		0.500		Semi-Annual		09/17/2021		JPY	370,000		(69	)		19			(50	)		0		0
Pay(6)	6-Month  JPY-LIBOR		0.100		Semi-Annual		03/20/2024			1,700,000		(50	)		106			56			2		0
Receive	6-Month  JPY-LIBOR		0.300		Semi-Annual		09/20/2027			340,000		(7	)		(41	)		(48	)		0		0
Receive	6-Month  JPY-LIBOR		0.399		Semi-Annual		06/18/2028			1,240,000		(30	)		(231	)		(261	)		0		(4	)
Receive(6)	6-Month  JPY-LIBOR		0.450		Semi-Annual		03/20/2029			928,000		(69	)		(150	)		(219	)		0		(4	)
Pay	6-Month  JPY-LIBOR		1.250		Semi-Annual		06/17/2035			20,000		19			5			24			0		0
Receive	6-Month  JPY-LIBOR		0.750		Semi-Annual		12/20/2038			550,616		72			(272	)		(200	)		0		(5	)
Receive	6-Month  JPY-LIBOR		1.500		Semi-Annual		12/21/2045			220,000		(339	)		(79	)		(418	)		0		(2	)
Pay	28-Day  MXN-TIIE		7.680		Lunar		12/29/2022		MXN	273,900		15			(450	)		(435	)		39		0
Pay	28-Day  MXN-TIIE		7.740		Lunar		02/22/2027			6,300		1			(20	)		(19	)		2		0
											$	1,601		$	(141	)	$	1,460		$	216	$	(287	)
Total Swap Agreements											$	840		$	(20	)	$	820		$	226	$	(317	)

FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED SUMMARY

The following is a summary of the market value and variation margin of Exchange-Traded or Centrally Cleared Financial Derivative Instruments as of December 31, 2018:

	Financial Derivative Assets								Financial Derivative Liabilities
	Market Value		Variation Margin Asset				Total		Market Value		Variation Margin Liability				Total
	Purchased Options		Futures		Swap Agreements				Written Options		Futures		Swap Agreements
Total Exchange-Traded or Centrally Cleared	$	3	$	290	$	226	$	519	$	0	$	(221)	$	(317)	$	(538)

(l) Securities with an aggregate market value of $756 and cash of $5,154 have been pledged as collateral for exchange-traded and centrally cleared financial derivative instruments as of December 31, 2018. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information regarding master netting arrangements.

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 21

Schedule of Investments PIMCO Global Bond Opportunities Portfolio (Unhedged) (Cont.)

⁽¹⁾ If the Portfolio is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽²⁾ If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽³⁾ Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on sovereign issues as of period end serve as indicators of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

⁽⁴⁾ The maximum potential amount the Portfolio could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

⁽⁵⁾ The prices and resulting values for credit default swap agreements serve as indicators of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced indices’ credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

⁽⁶⁾ This instrument has a forward starting effective date. See Note 2, Securities Transactions and Investment Income, in the Notes to Financial Statements for further information.

(m)  FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER

FORWARD FOREIGN CURRENCY CONTRACTS:

Counterparty	Settlement Month		Currency to be Delivered		Currency to be Received		Unrealized Appreciation/ (Depreciation)
							Asset		Liability
AZD		06/2019	$	3,597	EUR	3,084	$	0	$	(13	)
BOA		01/2019	ARS	2,166	$	53		0		(3	)
		01/2019	CAD	131		96		0		0
		01/2019	CHF	77		78		0		0
		01/2019	DKK	37,707		5,993		207		0
		01/2019	EUR	10,946		12,496		0		(54	)
		01/2019	GBP	958		1,223		2		0
		01/2019	$	1,710	CAD	2,268		0		(48	)
		02/2019	EUR	395	$	454		0		0
		02/2019	GBP	256		328		1		0
		02/2019	SEK	94,035		10,409		0		(238	)
		02/2019	$	11,064	NOK	93,742		0		(201	)
BPS		01/2019	CHF	261	$	265		0		(1	)
		01/2019	$	164	CAD	224		0		0
		01/2019		1,215	GBP	967		18		0
		01/2019		655	KRW	738,722		7		0
		01/2019		602	NZD	885		0		(8	)
		01/2019		2,136	PLN	8,049		15		0
		02/2019	RON	6,655	EUR	1,423		0		0
		03/2019	KRW	738,722	$	657		0		(8	)
		03/2019	$	171	KRW	191,537		1		0
		04/2019	CNH	3,793	$	547		0		(5	)
		04/2019	$	1,098	CNH	7,576		4		0
		07/2019		518		3,546		0		(2	)
BRC		01/2019	DKK	375	$	58		0		0
		01/2019	$	922	NOK	7,862		0		(13	)
		02/2019	GBP	256	$	328		1		0
		02/2019	JPY	48,200		436		0		(5	)
		02/2019	$	2,925	EUR	2,561		20		0
		02/2019		102	GBP	80		0		0
		02/2019		304	SEK	2,715		3		0
CBK		01/2019	BRL	2,247	$	575		0		(4	)
		01/2019	EUR	17,827		20,347		0		(92	)
		01/2019	NZD	199		138		4		0
		01/2019	$	580	BRL	2,247		0		0
		01/2019		1,940	CAD	2,552		0		(70	)
		01/2019		5,596	DKK	36,654		29		0
		01/2019		5,936	RUB	393,380		0		(306	)
		01/2019		607	SEK	5,461		9		0
		02/2019	CNH	3,970	$	571		0		(7	)
		02/2019	EUR	2,724		3,217		99		(14	)
		02/2019	GBP	4,662		6,012		57		0
		02/2019	$	8,708	AUD	12,081		0		(192	)
		02/2019		11,317	CHF	11,292		217		0

22 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

Counterparty	Settlement Month		Currency to be Delivered		Currency to be Received		Unrealized Appreciation/ (Depreciation)
							Asset		Liability
		02/2019	$	1,528	COP	4,826,687	$	0	$	(45	)
		02/2019		226	EUR	198		2		0
		02/2019		12,486	JPY	1,412,895		445		0
		02/2019		370	NOK	3,205		2		0
		03/2019	KRW	4,373,235	$	3,902		0		(35	)
		04/2019	DKK	36,654		5,641		0		(29	)
		05/2019	EUR	708		826		5		0
		06/2019	GBP	240		322		13		0
		06/2019	$	7,692	EUR	6,611		0		(8	)
		07/2019	CNH	3,776	$	560		11		0
		07/2019	$	517	CNH	3,546		0		(1	)
DUB		01/2019	BRL	10,506	$	2,716		6		0
		01/2019	$	2,729	BRL	10,506		0		(18	)
		01/2019		692	EUR	550		0		(61	)
		02/2019	BRL	10,506	$	2,723		18		0
		03/2019		1,006		263		5		0
		03/2019	$	224	MXN	4,806		18		0
		04/2019	SEK	917	EUR	89		0		(1	)
FBF		04/2019	EUR	177	SEK	1,815		2		0
GLM		01/2019	BRL	1,499	$	390		3		0
		01/2019	CAD	812		607		12		0
		01/2019	CHF	904		914		0		(6	)
		01/2019	EUR	3,613		4,111		0		(28	)
		01/2019	NZD	442		304		7		0
		01/2019	SEK	2,695		299		0		(6	)
		01/2019	$	387	BRL	1,499		0		0
		01/2019		1,212	CAD	1,621		0		(24	)
		01/2019		190	DKK	1,210		0		(4	)
		01/2019		784	MXN	16,110		35		0
		01/2019		613	NOK	5,283		0		(2	)
		02/2019	CHF	57	$	58		0		(1	)
		02/2019	CLP	531,591		764		0		(3	)
		02/2019	$	3,069	AUD	4,256		0		(69	)
		02/2019		780	CLP	530,145		0		(15	)
		02/2019		571	CNH	3,968		7		0
		02/2019		5,550	EUR	4,846		22		0
		03/2019	JPY	940,000	$	8,369		0		(250	)
		03/2019	$	2,941	IDR	43,229,800		31		0
HUS		01/2019	BRL	5,172	$	1,331		0		(3	)
		01/2019	CAD	1,083		811		17		0
		01/2019	EUR	574		690		31		0
		01/2019	KRW	229,600		205		0		(1	)
		01/2019	MXN	8,938		443		0		(11	)
		01/2019	$	13	ARS	519		0		0
		01/2019		1,217	AUD	1,686		0		(30	)
		01/2019		1,335	BRL	5,171		0		0
		01/2019		922	CAD	1,221		0		(28	)
		01/2019		290	GBP	230		3		0
		02/2019	AUD	2,052	$	1,516		70		0
		02/2019	NOK	780		91		1		0
		02/2019	$	683	AUD	902		0		(47	)
		02/2019		1,642	EUR	1,429		3		(1	)
		02/2019		290	NOK	2,505		0		0
		02/2019		427	SEK	3,840		8		0
		03/2019	BRL	338	$	100		13		0
		03/2019	$	678	KRW	758,953		5		0
		03/2019		100	MXN	1,970		0		(1	)
		05/2019		851	EUR	705		0		(33	)
		07/2019	CNH	24,486	$	3,588		24		0
		07/2019	$	3,721	CNH	25,541		0		(4	)
IND		01/2019	MXN	11,913	$	585		0		(21	)
		01/2019	$	8,756	NZD	12,871		0		(116	)
		04/2019	CNH	927	$	134		0		(1	)
JPM		01/2019	AUD	2,526		1,814		35		0
		01/2019	CAD	809		594		2		0
		01/2019	CHF	1,176		1,187		0		(10	)
		01/2019	EUR	1,032		1,177		0		(6	)
		01/2019	GBP	714		902		0		(8	)
		01/2019	KRW	509,122		455		0		(1	)

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 23

Schedule of Investments PIMCO Global Bond Opportunities Portfolio (Unhedged) (Cont.)

Counterparty	Settlement Month		Currency to be Delivered		Currency to be Received		Unrealized Appreciation/ (Depreciation)
							Asset		Liability
		01/2019	NOK	10,335	$	1,180	$	0	$	(15	)
		01/2019	$	319	ARS	12,384		6		0
		01/2019		888	AUD	1,261		0		0
		01/2019		598	EUR	526		5		0
		01/2019		6,552	MXN	125,238		0		(200	)
		01/2019		302	NZD	450		0		0
		01/2019		39	RUB	2,619		0		(1	)
		01/2019		1,813	SEK	16,364		34		0
		02/2019	NOK	700	$	82		1		0
		03/2019	IDR	1,827,000		126		0		0
		07/2019	CNH	1,277		188		2		0
MSB		04/2019	$	1,730	CNH	11,900		2		0
		07/2019	CNH	3,094	$	453		2		0
MYI		01/2019	AUD	422		304		6		0
		01/2019	EUR	8,219		9,400		0		(27	)
		01/2019	JPY	137,063		1,216		0		(35	)
		01/2019	NZD	2,206		1,509		28		0
		01/2019	SEK	10,981		1,212		0		(27	)
		02/2019	JPY	165,600		1,494		0		(21	)
		02/2019	$	1,519	AUD	2,122		0		(23	)
		06/2021		15	EUR	12		0		(1	)
NGF		04/2019	CNH	1,140	$	165		0		(1	)
RBC		01/2019	EUR	1,000		1,139		0		(9	)
		01/2019	$	439	CAD	585		0		(10	)
		02/2019	AUD	215	$	156		5		0
		02/2019	GBP	364		471		6		0
RYL		01/2019	NZD	218		150		4		0
		02/2019	CHF	315		319		0		(3	)
		04/2019	SEK	1,288	EUR	124		0		(3	)
SCX		01/2019	$	3,118	GBP	2,439		0		(8	)
		01/2019		305	JPY	34,370		8		0
		02/2019	EUR	365	$	417		0		(3	)
		02/2019	$	456	AUD	624		0		(16	)
		04/2019	CNH	6,116	$	880		0		(10	)
		04/2019	NGN	332,325		875		0		(10	)
		04/2019	$	1,184	CNH	8,167		4		0
SSB		02/2019	EUR	11,704	$	13,264		0		(194	)
		02/2019	$	89	GBP	70		0		0
		02/2019		311	NOK	2,650		0		(4	)
		03/2019	TWD	24,853	$	813		0		(6	)
TOR		02/2019	$	46	EUR	40		0		0
UAG		01/2019	EUR	17,673	$	20,158		0		(105	)
		01/2019	NOK	116		14		0		0
		02/2019		790		94		2		0
		02/2019	$	7,405	GBP	5,709		0		(112	)
Total Forward Foreign Currency Contracts							$	1,665	$	(3,056	)

PURCHASED OPTIONS:

FOREIGN CURRENCY OPTIONS

Counterparty	Description	Strike Price			Expiration Date		Notional Amount			Cost		Market Value
BPS	Put - OTC AUD versus USD		$	0.630		01/18/2019		AUD	5,000	$	0	$	0
	Put - OTC GBP versus USD			1.050		01/18/2019		GBP	2,700		0		0
BRC	Call - OTC EUR versus USD			1.308		09/22/2021		EUR	200		12		8
	Put - OTC EUR versus USD			1.308		09/22/2021			200		15		20
GLM	Call - OTC USD versus CNH		CNH	7.110		02/11/2019		$	1,200		6		1
HUS	Put - OTC AUD versus USD		$	0.670		01/03/2019		AUD	10,200		1		0
	Call - OTC USD versus CAD		CAD	1.415		01/04/2019		$	2,600		0		0
	Call - OTC USD versus JPY		JPY	117.750		01/10/2019			4,400		1		0
MSB	Call - OTC EUR versus USD		$	1.291		06/24/2021		EUR	178		11		7
	Put - OTC EUR versus USD			1.291		06/24/2021			178		13		17
Total Purchased Options										$	59	$	53

24 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

WRITTEN OPTIONS:

CREDIT DEFAULT SWAPTIONS ON CREDIT INDICES

Counterparty	Description	Buy/Sell Protection	Exercise Rate	Expiration Date		Notional Amount		Premiums (Received)			Market Value
BOA	Put - OTC CDX.IG-31 5-Year Index	Sell	0.900%		01/16/2019	$	300	$	0		$	0
	Put - OTC CDX.IG-31 5-Year Index	Sell	0.950		02/20/2019		400		(1	)		(1	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.000		02/20/2019		500		(1	)		(1	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.000		03/20/2019		600		(1	)		(2	)
BPS	Put - OTC CDX.IG-31 5-Year Index	Sell	1.000		02/20/2019		400		(1	)		(1	)
BRC	Put - OTC CDX.IG-31 5-Year Index	Sell	1.000		01/16/2019		500		0			0
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.050		02/20/2019		300		(1	)		(1	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.100		03/20/2019		200		0			0
CBK	Put - OTC CDX.IG-31 5-Year Index	Sell	0.950		01/16/2019		600		(1	)		(1	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.000		01/16/2019		2,400		(2	)		(1	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	0.950		02/20/2019		800		(2	)		(2	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.050		02/20/2019		200		0			0
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.050		03/20/2019		200		0			(1	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.100		03/20/2019		400		(1	)		(1	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.200		03/20/2019		400		0			(1	)
GST	Put - OTC CDX.IG-31 5-Year Index	Sell	0.900		01/16/2019		400		0			(1	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	2.400		09/18/2019		500		(1	)		(1	)
	Put - OTC iTraxx Europe 30 5-Year Index	Sell	2.400		09/18/2019	EUR	500		(1	)		(1	)
JPM	Put - OTC CDX.IG-31 5-Year Index	Sell	0.950		02/20/2019	$	400		(1	)		(1	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.200		03/20/2019		700		(1	)		(1	)
MYC	Put - OTC CDX.IG-31 5-Year Index	Sell	0.900		01/16/2019		400		(1	)		(1	)
									$    (16	)	$	(19	)

FOREIGN CURRENCY OPTIONS

Counterparty	Description	Strike Price			Expiration Date		Notional Amount			Premiums (Received)			Market Value
CBK	Put - OTC GBP versus USD		$	1.315		06/14/2019		GBP	684	$	(22	)	$	(41	)
	Call - OTC GBP versus USD			1.440		06/14/2019			690		(10	)		(3	)
GLM	Put - OTC USD versus CNH		CNH	6.840		02/11/2019		$	1,200		(6	)		(7	)
										$	(38	)	$	(51	)
Total Written Options										$	(54	)	$	(70	)

SWAP AGREEMENTS:

CREDIT DEFAULT SWAPS ON SOVEREIGN ISSUES - BUY PROTECTION⁽¹⁾

Counterparty	Reference Entity	Fixed (Pay) Rate			Payment Frequency		Maturity Date		Implied Credit Spread at December 31, 2018(3)			Notional Amount(4)			Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Swap Agreements, at Value(5)
																					Asset		Liability
BOA	Japan Government International Bond		(1.000	)%		Quarterly		06/20/2022		0.154	%		$	100	$	(3	)	$	0		$	0	$	(3	)
BPS	Japan Government International Bond		(1.000	)		Quarterly		06/20/2022		0.154				1,000		(36	)		7			0		(29	)
	South Korea Government International Bond		(1.000	)		Quarterly		06/20/2023		0.346				800		(20	)		(2	)		0		(22	)
BRC	China Government International Bond		(1.000	)		Quarterly		06/20/2023		0.614				300		(6	)		1			0		(5	)
	Japan Government International Bond		(1.000	)		Quarterly		06/20/2022		0.154				800		(28	)		5			0		(23	)
	South Korea Government International Bond		(1.000	)		Quarterly		06/20/2023		0.346				900		(23	)		(2	)		0		(25	)
CBK	Japan Government International Bond		(1.000	)		Quarterly		06/20/2022		0.154				400		(14	)		2			0		(12	)
GST	China Government International Bond		(1.000	)		Quarterly		06/20/2023		0.614				700		(13	)		1			0		(12	)
	Japan Government International Bond		(1.000	)		Quarterly		06/20/2022		0.154				700		(24	)		4			0		(20	)
HUS	South Korea Government International Bond		(1.000	)		Quarterly		06/20/2023		0.346				300		(7	)		(1	)		0		(8	)
JPM	South Korea Government International Bond		(1.000	)		Quarterly		06/20/2023		0.346				400		(10	)		(1	)		0		(11	)
															$	(184	)	$	14		$	0	$	(170	)

CREDIT DEFAULT SWAPS ON SOVEREIGN ISSUES - SELL PROTECTION⁽²⁾

Counterparty	Reference Entity	Fixed Receive Rate		Payment Frequency	Maturity Date		Implied Credit Spread at December 31, 2018(3)		Notional Amount(4)			Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)		Swap Agreements, at Value(5)
																	Asset		Liability
JPM	South Africa Government International Bond		1.000%	Quarterly		06/20/2023		2.113%		$	100	$	(5	)	$	1	$	0	$	(4	)

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 25

Schedule of Investments PIMCO Global Bond Opportunities Portfolio (Unhedged) (Cont.)

CROSS-CURRENCY SWAPS

Counterparty	Receive	Pay	Payment Frequency		Maturity Date(6)		Notional Amount of Currency Received			Notional Amount of Currency Delivered		Premiums Paid/(Received)		Unrealized Appreciation/ (Depreciation)			Swap Agreements, at Value
																	Asset		Liability
CBK	Floating rate equal to 3-Month EUR-LIBOR less 0.27% based on the notional amount of currency received	Floating rate equal to 3-Month USD-LIBOR based on the notional amount of currency delivered		Maturity		06/19/2019		EUR	1,300	$	1,474	$	23	$	(11	)	$	12	$	0
DUB	Floating rate equal to 3-Month GBP-LIBOR less 0.055% based on the notional amount of currency received	Floating rate equal to 3-Month USD-LIBOR based on the notional amount of currency delivered		Maturity		10/13/2026		GBP	300		366		0		10			10		0
GLM	Floating rate equal to 3-Month EUR-LIBOR less 0.283% based on the notional amount of currency received	Floating rate equal to 3-Month USD-LIBOR based on the notional amount of currency delivered		Maturity		06/19/2019		EUR	7,800		8,844		131		(57	)		74		0
	Floating rate equal to 3-Month EUR-LIBOR less 0.299% based on the notional amount of currency received	Floating rate equal to 3-Month USD-LIBOR based on the notional amount of currency delivered		Maturity		06/19/2019			6,800		7,710		149		(85	)		64		0
MYC	Floating rate equal to 3-Month EUR-LIBOR less 0.27% based on the notional amount of currency received	Floating rate equal to 3-Month USD-LIBOR based on the notional amount of currency delivered		Maturity		06/19/2019			10,200		11,566		182		(85	)		97		0
RYL	Floating rate equal to 3-Month GBP-LIBOR less 0.055% based on the notional amount of currency received	Floating rate equal to 3-Month USD-LIBOR based on the notional amount of currency delivered		Maturity		10/13/2026		GBP	600		732		18		3			21		0
TOR	Floating rate equal to 3-Month EUR-LIBOR less 0.265% based on the notional amount of currency received	Floating rate equal to 3-Month USD-LIBOR based on the notional amount of currency delivered		Maturity		06/19/2019		EUR	10,400		11,792		165		(66	)		99		0
												$	668	$	(291	)	$	377	$	0

INTEREST RATE SWAPS

Counterparty	Pay/ Receive Floating Rate	Floating Rate Index	Fixed Rate			Payment Frequency	Maturity Date	Notional Amount			Premiums Paid/(Received)		Unrealized Appreciation/ (Depreciation)			Swap Agreements, at Value
																Asset		Liability
BOA	Receive	1-Year  ILS-TELBOR		0.370	%	Annual	06/20/2020		ILS	7,500	$	0	$	4		$	4	$	0
	Pay	1-Year  ILS-TELBOR		1.998		Annual	06/20/2028			1,600		0		(1	)		0		(1	)
BRC	Receive	1-Year  ILS-TELBOR		0.374		Annual	06/20/2020			30,100		0		17			17		0
	Pay	1-Year  ILS-TELBOR		1.950		Annual	06/20/2028			6,500		0		(13	)		0		(13	)
DUB	Receive	1-Year  ILS-TELBOR		0.414		Annual	06/20/2020			16,500		0		6			6		0
	Pay	1-Year  ILS-TELBOR		2.100		Annual	06/20/2028			3,500		0		6			6		0
GLM	Receive	1-Year  ILS-TELBOR		0.270		Annual	03/21/2020			14,800		0		7			7		0
	Receive	1-Year  ILS-TELBOR		0.370		Annual	06/20/2020			15,400		1		8			9		0
	Pay	1-Year  ILS-TELBOR		1.883		Annual	03/21/2028			3,200		0		(5	)		0		(5	)
	Pay	1-Year  ILS-TELBOR		1.998		Annual	06/20/2028			3,300		0		(3	)		0		(3	)
HUS	Receive	1-Year  ILS-TELBOR		0.370		Annual	06/20/2020			5,100		0		3			3		0
	Pay	1-Year  ILS-TELBOR		1.998		Annual	06/20/2028			1,100		0		(1	)		0		(1	)
JPM	Receive	3-Month  KRW-KORIBOR		2.005		Quarterly	07/10/2027		KRW	2,520,100		0		(38	)		0		(38	)
SOG	Receive	3-Month  KRW-KORIBOR		2.025		Quarterly	07/10/2027			5,588,900		71		(164	)		0		(93	)
											$	72		$        (174	)	$	52	$	(154	)
Total Swap Agreements											$	551	$	(450	)	$	429	$	(328	)

26 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER SUMMARY

The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral pledged/(received) as of December 31, 2018:

	Financial Derivative Assets								Financial Derivative Liabilities
Counterparty	Forward Foreign Currency Contracts		Purchased Options		Swap Agreements		Total Over the Counter		Forward Foreign Currency Contracts			Written Options			Swap Agreements			Total Over the Counter			Net Market Value of OTC Derivatives			Collateral Pledged/ (Received)			Net Exposure(7)
AZD	$	0	$	0	$	0	$	0	$	(13	)	$	0		$	0		$	(13	)	$	(13	)	$	0		$	(13	)
BOA		210		0		4		214		(544	)		(4	)		(4	)		(552	)		(338	)		273			(65	)
BPS		45		0		0		45		(24	)		(1	)		(51	)		(76	)		(31	)		0			(31	)
BRC		24		28		17		69		(18	)		(1	)		(66	)		(85	)		(16	)		0			(16	)
CBK		893		0		12		905		(803	)		(51	)		(12	)		(866	)		39			0			39
DUB		47		0		22		69		(80	)		0			0			(80	)		(11	)		0			(11	)
FBF		2		0		0		2		0			0			0			0			2			0			2
GLM		117		1		154		272		(408	)		(7	)		(8	)		(423	)		(151	)		289			138
GST		0		0		0		0		0			(3	)		(32	)		(35	)		(35	)		0			(35	)
HUS		175		0		3		178		(159	)		0			(9	)		(168	)		10			0			10
IND		0		0		0		0		(138	)		0			0			(138	)		(138	)		0			(138	)
JPM		85		0		0		85		(241	)		(2	)		(53	)		(296	)		(211	)		234			23
MSB		4		24		0		28		0			0			0			0			28			0			28
MYC		0		0		97		97		0			(1	)		0			(1	)		96			0			96
MYI		34		0		0		34		(134	)		0			0			(134	)		(100	)		133			33
NGF		0		0		0		0		(1	)		0			0			(1	)		(1	)		0			(1	)
RBC		11		0		0		11		(19	)		0			0			(19	)		(8	)		0			(8	)
RYL		4		0		21		25		(6	)		0			0			(6	)		19			(10	)		9
SCX		12		0		0		12		(47	)		0			0			(47	)		(35	)		0			(35	)
SOG		0		0		0		0		0			0			(93	)		(93	)		(93	)		0			(93	)
SSB		0		0		0		0		(204	)		0			0			(204	)		(204	)		0			(204	)
TOR		0		0		99		99		0			0			0			0			99			0			99
UAG		2		0		0		2		(217	)		0			0			(217	)		(215	)		129			(86	)
Total Over the Counter	$	1,665	$	53	$	429	$	2,147	$	(3,056	)	$	(70	)	$	(328	)	$	(3,454	)

(n) Securities with an aggregate market value of $1,058 have been pledged as collateral for financial derivative instruments as governed by International Swaps and Derivatives Association, Inc. master agreements as of December 31, 2018.

⁽¹⁾ If the Portfolio is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽²⁾ If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽³⁾ Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on sovereign issues as of period end serve as indicators of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

⁽⁴⁾ The maximum potential amount the Portfolio could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

⁽⁵⁾ The prices and resulting values for credit default swap agreements serve as indicators of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced indices’ credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

⁽⁶⁾ At the maturity date, the notional amount of the currency received will be exchanged back for the notional amount of the currency delivered.

⁽⁷⁾ Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information regarding master netting arrangements.

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 27

Schedule of Investments PIMCO Global Bond Opportunities Portfolio (Unhedged) (Cont.)

FAIR VALUE OF FINANCIAL DERIVATIVE INSTRUMENTS

The following is a summary of the fair valuation of the Portfolio’s derivative instruments categorized by risk exposure. See Note 7, Principal Risks, in the Notes to Financial Statements on risks of the Portfolio.

Fair Values of Financial Derivative Instruments on the Statement of Assets and Liabilities as of December 31, 2018:

	Derivatives not accounted for as hedging instruments
	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Exchange Contracts		Interest Rate Contracts		Total
Financial Derivative Instruments - Assets
Exchange-traded or centrally cleared
Purchased Options	$	0	$	0	$	0	$	0	$	3	$	3
Futures		0		0		0		0		290		290
Swap Agreements		0		9		0		0		217		226
	$	0	$	9	$	0	$	0	$	510	$	519
Over the counter
Forward Foreign Currency Contracts	$	0	$	0	$	0	$	1,665	$	0	$	1,665
Purchased Options		0		0		0		53		0		53
Swap Agreements		0		0		0		377		52		429
	$	0	$	0	$	0	$	2,095	$	52	$	2,147
	$	0	$	9	$	0	$	2,095	$	562	$	2,666
Financial Derivative Instruments - Liabilities
Exchange-traded or centrally cleared
Futures	$	0	$	0	$	0	$	0	$	221	$	221
Swap Agreements		0		29		0		0		288		317
	$	0	$	29	$	0	$	0	$	509	$	538
Over the counter
Forward Foreign Currency Contracts	$	0	$	0	$	0	$	3,056	$	0	$	3,056
Written Options		0		19		0		51		0		70
Swap Agreements		0		174		0		0		154		328
	$	0	$	193	$	0	$	3,107	$	154	$	3,454
	$	0	$	222	$	0	$	3,107	$	663	$	3,992

The effect of Financial Derivative Instruments on the Statement of Operations for the period ended December 31, 2018:

	Derivatives not accounted for as hedging instruments
	Commodity Contracts		Credit Contracts			Equity Contracts		Foreign Exchange Contracts			Interest Rate Contracts			Total
Net Realized Gain (Loss) on Financial Derivative Instruments
Exchange-traded or centrally cleared
Purchased Options	$	0	$	0		$	0	$	0		$	3		$	3
Written Options		0		0			0		0			41			41
Futures		0		0			0		0			(2,677	)		(2,677	)
Swap Agreements		0		(613	)		0		0			3,108			2,495
	$	0	$	(613	)	$	0	$	0		$	475		$	(138	)
Over the counter
Forward Foreign Currency Contracts	$	0	$	0		$	0	$	(3,067	)	$	0		$	(3,067	)
Purchased Options		0		0			0		3			(68	)		(65	)
Written Options		0		31			0		429			16			476
Swap Agreements		0		(1	)		0		2,905			(16	)		2,888
	$	0	$	30		$	0	$	270		$	(68	)	$	232
	$	0	$	(583	)	$	0	$	270		$	407		$	94
Net Change in Unrealized Appreciation (Depreciation) on Financial Derivative Instruments
Exchange-traded or centrally cleared
Purchased Options	$	0	$	0		$	0	$	0		$	(5	)	$	(5	)
Written Options		0		0			0		0			(13	)		(13	)
Futures		0		0			0		0			(696	)		(696	)
Swap Agreements		0		140			0		0			(1,613	)		(1,473	)
	$	0	$	140		$	0	$	0		$	(2,327	)	$	(2,187	)
Over the counter
Forward Foreign Currency Contracts	$	0	$	0		$	0	$	(903	)	$	0		$	(903	)
Purchased Options		0		0			0		9			65			74
Written Options		0		(3	)		0		(71	)		(8	)		(82	)
Swap Agreements		0		(24	)		0		(2,368	)		(245	)		(2,637	)
	$	0	$	(27	)	$	0	$	(3,333	)	$	(188	)	$	(3,548	)
	$	0	$	113		$	0	$	(3,333	)	$	(2,515	)	$	(5,735	)

28 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

FAIR VALUE MEASUREMENTS

The following is a summary of the fair valuations according to the inputs used as of December 31, 2018 in valuing the Portfolio’s assets and liabilities:

Category and Subcategory	Level 1		Level 2		Level 3		Fair Value at 12/31/2018
Investments in Securities, at Value
Argentina
Sovereign Issues	$	0	$	253	$	0	$	253
Australia
Corporate Bonds & Notes		0		597		0		597
Non-Agency Mortgage-Backed Securities		0		300		0		300
Sovereign Issues		0		611		0		611
Bermuda
Asset-Backed Securities		0		0		1,657		1,657
Brazil
Corporate Bonds & Notes		0		1,758		0		1,758
Canada
Corporate Bonds & Notes		0		3,903		0		3,903
Non-Agency Mortgage-Backed Securities		0		766		0		766
Sovereign Issues		0		5,068		0		5,068
Cayman Islands
Asset-Backed Securities		0		4,257		0		4,257
Corporate Bonds & Notes		0		1,183		0		1,183
Denmark
Corporate Bonds & Notes		0		6,788		0		6,788
France
Corporate Bonds & Notes		0		2,126		0		2,126
Sovereign Issues		0		7,151		0		7,151
Germany
Corporate Bonds & Notes		0		2,003		0		2,003
Guernsey, Channel Islands
Corporate Bonds & Notes		0		808		0		808
Indonesia
Corporate Bonds & Notes		0		203		0		203
Ireland
Asset-Backed Securities		0		1,282		0		1,282
Corporate Bonds & Notes		0		592		0		592
Sovereign Issues		0		599		0		599
Israel
Sovereign Issues		0		393		0		393
Italy
Corporate Bonds & Notes		0		764		0		764
Sovereign Issues		0		1,255		0		1,255
Japan
Corporate Bonds & Notes		0		1,825		0		1,825
Sovereign Issues		0		3,462		0		3,462
Kuwait
Sovereign Issues		0		1,595		0		1,595
Lithuania
Sovereign Issues		0		424		0		424
Luxembourg
Corporate Bonds & Notes		0		1,804		0		1,804
Netherlands
Asset-Backed Securities		0		912		0		912
Corporate Bonds & Notes		0		6,401		0		6,401
Norway
Corporate Bonds & Notes		0		591		0		591
Sovereign Issues		0		197		0		197
Peru
Sovereign Issues		0		4,514		0		4,514
Portugal
Corporate Bonds & Notes		0		133		0		133
Qatar
Sovereign Issues		0		2,664		0		2,664
Saudi Arabia
Sovereign Issues		0		4,078		0		4,078
Singapore
Corporate Bonds & Notes		0		390		0		390
Slovenia
Sovereign Issues		0		1,102		0		1,102

Category and Subcategory	Level 1			Level 2			Level 3		Fair Value at 12/31/2018
South Korea
Corporate Bonds & Notes	$	0		$	196		$	0	$	196
Spain
Corporate Bonds & Notes		0			432			0		432
Sovereign Issues		0			5,086			0		5,086
Supranational
Corporate Bonds & Notes		0			1,033			0		1,033
Sweden
Corporate Bonds & Notes		0			11,008			0		11,008
Switzerland
Corporate Bonds & Notes		0			1,993			0		1,993
Sovereign Issues		0			151			0		151
United Arab Emirates
Sovereign Issues		0			1,160			0		1,160
United Kingdom
Corporate Bonds & Notes		0			10,937			0		10,937
Non-Agency Mortgage-Backed Securities		0			4,240			0		4,240
Preferred Securities		0			242			0		242
Sovereign Issues		0			2,401			0		2,401
United States
Asset-Backed Securities		0			7,366			0		7,366
Corporate Bonds & Notes		0			29,655			0		29,655
Loan Participations and Assignments		0			745			0		745
Municipal Bonds & Notes		0			2,018			0		2,018
Non-Agency Mortgage-Backed Securities		0			12,013			0		12,013
U.S. Government Agencies		0			44,868			0		44,868
U.S. Treasury Obligations		0			15,695			0		15,695
Short-Term Instruments
Argentina Treasury Bills		0			167			0		167
France Treasury Bills		0			11,690			0		11,690
Japan Treasury Bills		0			8,578			0		8,578
Netherlands Treasury Bills		0			1,147			0		1,147
Nigeria Treasury Bills		0			931			0		931
	$	0		$	246,504		$	1,657	$	248,161
Investments in Affiliates, at Value
Short-Term Instruments
Central Funds Used for Cash Management Purposes	$	3,385		$	0		$	0	$	3,385
Total Investments	$	3,385		$	246,504		$	1,657	$	251,546
Short Sales, at Value - Liabilities
Canada
Sovereign Issues	$	0		$	(1,488	)	$	0	$	(1,488	)
Financial Derivative Instruments - Assets
Exchange-traded or centrally cleared		290			229			0		519
Over the counter		0			2,147			0		2,147
	$	290		$	2,376		$	0	$	2,666
Financial Derivative Instruments - Liabilities
Exchange-traded or centrally cleared		(221	)		(317	)		0		(538	)
Over the counter		0			(3,454	)		0		(3,454	)
	$	(221	)	$	(3,771	)	$	0	$	(3,992	)
Total Financial Derivative Instruments	$	69		$	(1,395	)	$	0	$	(1,326	)
Totals	$	3,454		$	243,621		$	1,657	$	248,732

There were no significant transfers into or out of Level 3 during the period ended December 31, 2018.

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 29

Notes to Financial Statements

1. ORGANIZATION

PIMCO Variable Insurance Trust (the “Trust”) is a Delaware statutory trust established under a trust instrument dated October 3, 1997. The Trust is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Trust is designed to be used as an investment vehicle by separate accounts of insurance companies that fund variable annuity contracts and variable life insurance policies and by qualified pension and retirement plans. Information presented in these financial statements pertains to the Institutional Class, Administrative Class and Advisor Class shares of the PIMCO Global Bond Opportunities Portfolio (Unhedged), (formerly the PIMCO Global Bond Portfolio (Unhedged)) (the “Portfolio”) offered by the Trust. Pacific Investment Management Company LLC (“PIMCO”) serves as the investment adviser (the “Adviser”) for the Portfolio.

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Portfolio is treated as an investment company under the reporting requirements of U.S. GAAP. The functional and reporting currency for the Portfolio is the U.S. dollar. The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

(a) Securities Transactions and Investment Income  Securities transactions are recorded as of the trade date for financial reporting purposes. Securities purchased or sold on a when-issued or delayed-delivery basis may be settled beyond a standard settlement period for the security after the trade date. Realized gains (losses) from securities sold are recorded on the identified cost basis. Dividend income is recorded on the ex-dividend date, except certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Portfolio is informed of the ex-dividend date. Interest income, adjusted for the accretion of discounts and amortization of premiums, is recorded on the accrual basis from settlement date, with the exception of securities with a forward starting effective date, where interest income is recorded on the accrual basis from effective date. For convertible securities, premiums attributable to the conversion feature are not amortized. Estimated tax liabilities on certain foreign securities are recorded on an accrual basis and are reflected as components of interest income or net change in unrealized

appreciation (depreciation) on investments on the Statement of Operations, as appropriate. Tax liabilities realized as a result of such security sales are reflected as a component of net realized gain (loss) on investments on the Statement of Operations. Paydown gains (losses) on mortgage-related and other asset-backed securities, if any, are recorded as components of interest income on the Statement of Operations. Income or short-term capital gain distributions received from registered investment companies, if any, are recorded as dividend income. Long-term capital gain distributions received from registered investment companies, if any, are recorded as realized gains.

Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivable when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is probable.

(b) Foreign Currency Translation  The market values of foreign securities, currency holdings and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the current exchange rates each business day. Purchases and sales of securities and income and expense items denominated in foreign currencies, if any, are translated into U.S. dollars at the exchange rate in effect on the transaction date. The Portfolio does not separately report the effects of changes in foreign exchange rates from changes in market prices on securities held. Such changes are included in net realized gain (loss) and net change in unrealized appreciation (depreciation) from investments on the Statement of Operations. The Portfolio may invest in foreign currency-denominated securities and may engage in foreign currency transactions either on a spot (cash) basis at the rate prevailing in the currency exchange market at the time or through a forward foreign currency contract. Realized foreign exchange gains (losses) arising from sales of spot foreign currencies, currency gains (losses) realized between the trade and settlement dates on securities transactions and the difference between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid are included in net realized gain (loss) on foreign currency transactions on the Statement of Operations. Net unrealized foreign exchange gains (losses) arising from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period are included in net change in unrealized appreciation (depreciation) on foreign currency assets and liabilities on the Statement of Operations.

(c) Multi-Class Operations  Each class offered by the Trust has equal rights as to assets and voting privileges (except that shareholders of a class have exclusive voting rights regarding any matter relating solely

30 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

to that class of shares). Income and non-class specific expenses are allocated daily to each class on the basis of the relative net assets. Realized and unrealized capital gains (losses) are allocated daily based on the relative net assets of each class of the Portfolio. Class specific expenses, where applicable, currently include supervisory and administrative and distribution and servicing fees. Under certain circumstances, the per share net asset value (“NAV”) of a class of the Portfolio’s shares may be different from the per share NAV of another class of shares as a result of the different daily expense accruals applicable to each class of shares.

(d) Distributions to Shareholders  Distributions from net investment income, if any, are declared daily and distributed to shareholders monthly. Net realized capital gains earned by the Portfolio, if any, will be distributed no less frequently than once each year.

Income distributions and capital gain distributions are determined in accordance with income tax regulations which may differ from U.S. GAAP. Differences between tax regulations and U.S. GAAP may cause timing differences between income and capital gain recognition. Further, the character of investment income and capital gains may be different for certain transactions under the two methods of accounting. As a result, income distributions and capital gain distributions declared during a fiscal period may differ significantly from the net investment income (loss) and realized gains (losses) reported on the Portfolio’s annual financial statements presented under U.S. GAAP.

If the Portfolio estimates that a portion of its distribution may be comprised of amounts from sources other than net investment income in accordance with its policies and good accounting practices, the Portfolio will notify shareholders of the estimated composition of such distribution through a Section 19 Notice. For these purposes, the Portfolio estimates the source or sources from which a distribution is paid, to the close of the period as of which it is paid, in reference to its internal accounting records and related accounting practices. If, based on such accounting records and practices, it is estimated that a particular distribution does not include capital gains or paid-in surplus or other capital sources, a Section 19 Notice generally would not be issued. It is important to note that differences exist between the Portfolio’s daily internal accounting records and practices, the Portfolio’s financial statements presented in accordance with U.S. GAAP, and recordkeeping practices under income tax regulations. For instance, the Portfolio’s internal accounting records and practices may take into account, among other factors, tax-related characteristics of certain sources of distributions that differ from treatment under U.S. GAAP. Examples of such differences may include, among others, the treatment of paydowns on mortgage-backed securities purchased at a discount and periodic payments under interest rate swap contracts. Accordingly, among other consequences, it is possible that the Portfolio

may not issue a Section 19 Notice in situations where the Portfolio’s financial statements prepared later and in accordance with U.S. GAAP and/or the final tax character of those distributions might later report that the sources of those distributions included capital gains and/or a return of capital. Final determination of a distribution’s tax character will be provided to shareholders when such information is available.

Distributions classified as a tax basis return of capital, if any, are reflected on the Statements of Changes in Net Assets and have been recorded to paid in capital on the Statement of Assets and Liabilities. In addition, other amounts have been reclassified between distributable earnings (accumulated loss) and paid in capital on the Statement of Assets and Liabilities to more appropriately conform U.S. GAAP to tax characterizations of distributions.

(e) New Accounting Pronouncements  In August 2016, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”), ASU 2016-15, which amends Accounting Standards Codification (“ASC”) 230 to clarify guidance on the classification of certain cash receipts and cash payments in the Statement of Cash Flows. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In November 2016, the FASB issued ASU 2016-18 which amends ASC 230 to provide guidance on the classification and presentation of changes in restricted cash and restricted cash equivalents on the Statement of Cash Flows. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In March 2017, the FASB issued ASU 2017-08 which provides guidance related to the amortization period for certain purchased callable debt securities held at a premium. The ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In August 2018, the FASB issued ASU 2018-13 which modifies certain disclosure requirements for fair value measurements in ASC 820. The ASU is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. At this time, management has elected to early adopt the amendments that allow for removal of certain disclosure requirements. Management plans to adopt the amendments that require additional fair value measurement disclosures for annual periods beginning after December 15, 2019, and

ANNUAL REPORT DECEMBER 31, 2018 31

Notes to Financial Statements (Cont.)

interim periods within those annual periods. Management is currently evaluating the impact of these changes on the financial statements.

In August 2018, the U.S. Securities and Exchange Commission (“SEC”) adopted amendments to certain rules and forms for the purpose of disclosure update and simplification. The compliance date for these amendments is 30 days after date of publication in the Federal Register, which was on October 4, 2018. Management has adopted these amendments and the changes are incorporated throughout all periods presented in the financial statements.

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

(a) Investment Valuation Policies  The price of the Portfolio’s shares is based on the Portfolio’s NAV. The NAV of the Portfolio, or each of its share classes, as applicable, is determined by dividing the total value of portfolio investments and other assets, less any liabilities attributable to the Portfolio or class, by the total number of shares outstanding of the Portfolio or class.

On each day that the New York Stock Exchange (“NYSE”) is open, Portfolio shares are ordinarily valued as of the close of regular trading (“NYSE Close”). Information that becomes known to the Portfolio or its agents after the time as of which NAV has been calculated on a particular day will not generally be used to retroactively adjust the price of a security or the NAV determined earlier that day. The Portfolio reserves the right to change the time as of which its NAV is calculated if the Portfolio closes earlier, or as permitted by the SEC.

For purposes of calculating a NAV, portfolio securities and other assets for which market quotes are readily available are valued at market value. Market value is generally determined on the basis of official closing prices or the last reported sales prices, or if no sales are reported, based on quotes obtained from established market makers or prices (including evaluated prices) supplied by the Portfolio’s approved pricing services, quotation reporting systems and other third-party sources (together, “Pricing Services”). The Portfolio will normally use pricing data for domestic equity securities received shortly after the NYSE Close and does not normally take into account trading, clearances or settlements that take place after the NYSE Close. If market value pricing is used, a foreign (non-U.S.) equity security traded on a foreign exchange or on more than one exchange is typically valued using pricing information from the exchange considered by the Adviser to be the primary exchange. A foreign (non-U.S.) equity security will be valued as of the close of trading on the foreign exchange, or the NYSE Close, if the NYSE Close occurs before the end of trading on the foreign exchange. Domestic and foreign (non-U.S.) fixed income securities, non-exchange traded derivatives, and equity options are normally valued on the basis of quotes obtained from brokers and

dealers or Pricing Services using data reflecting the earlier closing of the principal markets for those securities. Prices obtained from Pricing Services may be based on, among other things, information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics. Certain fixed income securities purchased on a delayed-delivery basis are marked to market daily until settlement at the forward settlement date. Exchange-traded options, except equity options, futures and options on futures are valued at the settlement price determined by the relevant exchange. Swap agreements are valued on the basis of bid quotes obtained from brokers and dealers or market-based prices supplied by Pricing Services. The Portfolio’s investments in open-end management investment companies, other than exchange-traded funds (“ETFs”), are valued at the NAVs of such investments. Open-end management investment companies may include affiliated funds.

If a foreign (non-U.S.) equity security’s value has materially changed after the close of the security’s primary exchange or principal market but before the NYSE Close, the security may be valued at fair value based on procedures established and approved by the Board of Trustees of the Trust (the “Board”). Foreign (non-U.S.) equity securities that do not trade when the NYSE is open are also valued at fair value. With respect to foreign (non-U.S.) equity securities, the Portfolio may determine the fair value of investments based on information provided by Pricing Services and other third-party vendors, which may recommend fair value or adjustments with reference to other securities, indices or assets. In considering whether fair valuation is required and in determining fair values, the Portfolio may, among other things, consider significant events (which may be considered to include changes in the value of U.S. securities or securities indices) that occur after the close of the relevant market and before the NYSE Close. The Portfolio may utilize modeling tools provided by third-party vendors to determine fair values of foreign (non-U.S.) securities. For these purposes, any movement in the applicable reference index or instrument (“zero trigger”) between the earlier close of the applicable foreign market and the NYSE Close may be deemed to be a significant event, prompting the application of the pricing model (effectively resulting in daily fair valuations). Foreign exchanges may permit trading in foreign (non-U.S.) equity securities on days when the Trust is not open for business, which may result in the Portfolio’s portfolio investments being affected when shareholders are unable to buy or sell shares.

Senior secured floating rate loans for which an active secondary market exists to a reliable degree will be valued at the mean of the last available bid/ask prices in the market for such loans, as provided by a Pricing Service. Senior secured floating rate loans for which an active secondary market does not exist to a reliable degree will be valued at

32 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

fair value, which is intended to approximate market value. In valuing a senior secured floating rate loan at fair value, the factors considered may include, but are not limited to, the following: (a) the creditworthiness of the borrower and any intermediate participants, (b) the terms of the loan, (c) recent prices in the market for similar loans, if any, and (d) recent prices in the market for instruments of similar quality, rate, period until next interest rate reset and maturity.

Investments valued in currencies other than the U.S. dollar are converted to the U.S. dollar using exchange rates obtained from Pricing Services. As a result, the value of such investments and, in turn, the NAV of the Portfolio’s shares may be affected by changes in the value of currencies in relation to the U.S. dollar. The value of investments traded in markets outside the United States or denominated in currencies other than the U.S. dollar may be affected significantly on a day that the Trust is not open for business. As a result, to the extent that the Portfolio holds foreign (non-U.S.) investments, the value of those investments may change at times when shareholders are unable to buy or sell shares and the value of such investments will be reflected in the Portfolio’s next calculated NAV.

Investments for which market quotes or market based valuations are not readily available are valued at fair value as determined in good faith by the Board or persons acting at their direction. The Board has adopted methods for valuing securities and other assets in circumstances where market quotes are not readily available, and has delegated to the Adviser the responsibility for applying the fair valuation methods. In the event that market quotes or market based valuations are not readily available, and the security or asset cannot be valued pursuant to a Board approved valuation method, the value of the security or asset will be determined in good faith by the Board. Market quotes are considered not readily available in circumstances where there is an absence of current or reliable market-based data (e.g., trade information, bid/ask information, indicative market quotations (“Broker Quotes”), Pricing Services’ prices), including where events occur after the close of the relevant market, but prior to the NYSE Close, that materially affect the values of the Portfolio’s securities or assets. In addition, market quotes are considered not readily available when, due to extraordinary circumstances, the exchanges or markets on which the securities trade do not open for trading for the entire day and no other market prices are available. The Board has delegated, to the Adviser, the responsibility for monitoring significant events that may materially affect the values of the Portfolio’s securities or assets and for determining whether the value of the applicable securities or assets should be reevaluated in light of such significant events.

When the Portfolio uses fair valuation to determine the value of a portfolio security or other asset for purposes of calculating its NAV,

such investments will not be priced on the basis of quotes from the primary market in which they are traded, but rather may be priced by another method that the Board or persons acting at their direction believe reflects fair value. Fair valuation may require subjective determinations about the value of a security. While the Trust’s policy is intended to result in a calculation of the Portfolio’s NAV that fairly reflects security values as of the time of pricing, the Trust cannot ensure that fair values determined by the Board or persons acting at their direction would accurately reflect the price that the Portfolio could obtain for a security if it were to dispose of that security as of the time of pricing (for instance, in a forced or distressed sale). The prices used by the Portfolio may differ from the value that would be realized if the securities were sold. The Portfolio’s use of fair valuation may also help to deter “stale price arbitrage” as discussed under the “Frequent or Excessive Purchases, Exchanges and Redemptions” section in the Portfolio’s prospectus.

(b) Fair Value Hierarchy  U.S. GAAP describes fair value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into levels (Level 1, 2, or 3). The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Levels 1, 2, and 3 of the fair value hierarchy are defined as follows:

^∎  Level 1 — Quoted prices in active markets or exchanges for identical assets and liabilities.

^∎  Level 2 — Significant other observable inputs, which may include, but are not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market corroborated inputs.

^∎  Level 3 — Significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, which may include assumptions made by the Board or persons acting at their direction that are used in determining the fair value of investments.

In accordance with the requirements of U.S. GAAP, the amounts of transfers into and out of Level 3, if material, are disclosed in the Notes to Schedule of Investments for the Portfolio.

ANNUAL REPORT DECEMBER 31, 2018 33

Notes to Financial Statements (Cont.)

For fair valuations using significant unobservable inputs, U.S. GAAP requires a reconciliation of the beginning to ending balances for reported fair values that presents changes attributable to realized gain (loss), unrealized appreciation (depreciation), purchases and sales, accrued discounts (premiums), and transfers into and out of the Level 3 category during the period. The end of period value is used for the transfers between Levels of the Portfolio’s assets and liabilities. Additionally, U.S. GAAP requires quantitative information regarding the significant unobservable inputs used in the determination of fair value of assets or liabilities categorized as Level 3 in the fair value hierarchy. In accordance with the requirements of U.S. GAAP, a fair value hierarchy, and if material, a Level 3 reconciliation and details of significant unobservable inputs, have been included in the Notes to Schedule of Investments for the Portfolio.

(c) Valuation Techniques and the Fair Value Hierarchy

Level 1 and Level 2 trading assets and trading liabilities, at fair value  The valuation methods (or “techniques”) and significant inputs used in determining the fair values of portfolio securities or other assets and liabilities categorized as Level 1 and Level 2 of the fair value hierarchy are as follows:

Fixed income securities including corporate, convertible and municipal bonds and notes, U.S. government agencies, U.S. treasury obligations, sovereign issues, bank loans, convertible preferred securities and non-U.S. bonds are normally valued on the basis of quotes obtained from brokers and dealers or Pricing Services that use broker-dealer quotations, reported trades or valuation estimates from their internal pricing models. The Pricing Services’ internal models use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar assets. Securities that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

Fixed income securities purchased on a delayed-delivery basis or as a repurchase commitment in a sale-buyback transaction are marked to market daily until settlement at the forward settlement date and are categorized as Level 2 of the fair value hierarchy.

Mortgage-related and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also normally valued by Pricing Services that use broker-dealer quotations, reported trades or valuation estimates from their internal pricing models. The pricing models for these securities usually consider tranche-level attributes, current market data, estimated cash flows and market-based yield spreads for each tranche, and incorporate deal collateral performance, as available. Mortgage-related and asset-backed securities that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

Common stocks, ETFs, exchange-traded notes and financial derivative instruments, such as futures contracts, rights and warrants, or options on futures that are traded on a national securities exchange, are stated at the last reported sale or settlement price on the day of valuation. To the extent these securities are actively traded and valuation adjustments are not applied, they are categorized as Level 1 of the fair value hierarchy.

Valuation adjustments may be applied to certain securities that are solely traded on a foreign exchange to account for the market movement between the close of the foreign market and the NYSE Close. These securities are valued using Pricing Services that consider the correlation of the trading patterns of the foreign security to the intraday trading in the U.S. markets for investments. Securities using these valuation adjustments are categorized as Level 2 of the fair value hierarchy. Preferred securities and other equities traded on inactive markets or valued by reference to similar instruments are also categorized as Level 2 of the fair value hierarchy.

Investments in registered open-end investment companies (other than ETFs) will be valued based upon the NAVs of such investments and are categorized as Level 1 of the fair value hierarchy. Investments in unregistered open-end investment companies will be calculated based upon the NAVs of such investments and are considered Level 1 provided that the NAVs are observable, calculated daily and are the value at which both purchases and sales will be conducted.

Equity exchange-traded options and over the counter financial derivative instruments, such as forward foreign currency contracts and options contracts derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors. These contracts are normally valued on the basis of quotes obtained from a quotation reporting system, established market makers or Pricing Services (normally determined as of the NYSE Close). Depending on the product and the terms of the transaction, financial derivative instruments can be valued by Pricing Services using a series of techniques, including simulation pricing models. The pricing models use inputs that are observed from actively quoted markets such as quoted prices, issuer details, indices, bid/ask spreads, interest rates, implied volatilities, yield curves, dividends and exchange rates. Financial derivative instruments that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

Centrally cleared swaps and over the counter swaps derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors. They are valued using a broker-dealer bid quotation or on market-based prices provided by Pricing Services (normally determined as of the NYSE close). Centrally cleared

34 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

swaps and over the counter swaps can be valued by Pricing Services using a series of techniques, including simulation pricing models. The pricing models may use inputs that are observed from actively quoted markets such as the overnight index swap rate (“OIS”), London Interbank Offered Rate (“LIBOR”) forward rate, interest rates, yield curves and credit spreads. These securities are categorized as Level 2 of the fair value hierarchy.

Level 3 trading assets and trading liabilities, at fair value  When a fair valuation method is applied by the Adviser that uses significant unobservable inputs, investments will be priced by a method that the

Board or persons acting at their direction believe reflects fair value and are categorized as Level 3 of the fair value hierarchy.

Short-term debt instruments (such as commercial paper) having a remaining maturity of 60 days or less may be valued at amortized cost, so long as the amortized cost value of such short-term debt instruments is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. These securities are categorized as Level 2 or Level 3 of the fair value hierarchy depending on the source of the base price.

4. SECURITIES AND OTHER INVESTMENTS

(a) Investments in Affiliates

The Portfolio may invest in the PIMCO Short Asset Portfolio and the PIMCO Short-Term Floating NAV Portfolio III (“Central Funds”) to the extent permitted by the Act and rules thereunder. The Central Funds are registered investment companies created for use solely by the series of the Trust and other series of registered investment companies advised by the Adviser, in connection with their cash management activities. The main investments of the Central Funds are money market and short maturity fixed income instruments. The Central Funds may incur expenses related to their investment activities, but do not pay Investment Advisory Fees or Supervisory and Administrative Fees to the Adviser. The Central Funds are considered to be affiliated with the Portfolio. The tables below show the Portfolio’s transactions in and earnings from investments in the affiliated Funds for the period ended December 31, 2018 (amounts in thousands^†):

Investment in PIMCO Short Asset Portfolio

Market Value 12/31/2017		Purchases at Cost		Proceeds from Sales		Net Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)			Market Value 12/31/2018		Dividend Income(1)		Realized Net Capital Gain Distributions(1)
$	3,307	$	95	$	0	$	0	$	(30	)	$	3,372	$	91	$	4

Investment in PIMCO Short-Term Floating NAV Portfolio III

Market Value 12/31/2017		Purchases at Cost		Proceeds from Sales			Net Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)			Market Value 12/31/2018		Dividend Income(1)		Realized Net Capital Gain Distributions(1)
$	4,818	$	92,765	$	(97,570	)	$	2	$	(2	)	$	13	$	65	$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽¹⁾  The tax characterization of distributions is determined in accordance with Federal income tax regulations and may contain a return of capital. The actual tax characterization of distributions received is determined at the end of the fiscal year of the affiliated fund. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

(b) Investments in Securities

The Portfolio may utilize the investments and strategies described below to the extent permitted by the Portfolio’s investment policies.

Inflation-Indexed Bonds  are fixed income securities whose principal value is periodically adjusted by the rate of inflation. The interest rate on these bonds is generally fixed at issuance at a rate lower than typical bonds. Over the life of an inflation-indexed bond, however, interest will be paid based on a principal value which is adjusted for inflation. Any increase or decrease in the principal amount of an inflation-indexed bond will be included as interest income on the Statement of Operations, even though investors do not receive their principal until maturity. Repayment of the original bond principal upon maturity (as adjusted for inflation) is guaranteed in the case of U.S.

Treasury Inflation-Protected Securities (“TIPS”). For bonds that do not provide a similar guarantee, the adjusted principal value of the bond repaid at maturity may be less than the original principal.

Loans and Other Indebtedness, Loan Participations and Assignments  are direct debt instruments which are interests in amounts owed to lenders or lending syndicates by corporate, governmental, or other borrowers. The Portfolio’s investments in loans may be in the form of participations in loans or assignments of all or a portion of loans from third parties or investments in or originations of loans by the Portfolio. A loan is often administered by a bank or other financial institution (the “agent”) that acts as agent for all holders. The agent administers the terms of the loan, as specified in the loan agreement. The Portfolio may invest in multiple series or tranches of a

ANNUAL REPORT DECEMBER 31, 2018 35

Notes to Financial Statements (Cont.)

loan, which may have varying terms and carry different associated risks. When the Portfolio purchases assignments from agents it acquires direct rights against the borrowers of the loans. These loans may include participations in bridge loans, which are loans taken out by borrowers for a short period (typically less than one year) pending arrangement of more permanent financing through, for example, the issuance of bonds, frequently high yield bonds issued for the purpose of acquisitions.

The types of loans and related investments in which the Portfolio may invest include, among others, senior loans, subordinated loans (including second lien loans, B-Notes and mezzanine loans), whole loans, commercial real estate and other commercial loans and structured loans. The Portfolio may originate loans or acquire direct interests in loans through primary loan distributions and/or in private transactions. In the case of subordinated loans, there may be significant indebtedness ranking ahead of the borrower’s obligation to the holder of such a loan, including in the event of the borrower’s insolvency. Mezzanine loans are typically secured by a pledge of an equity interest in the mortgage borrower that owns the real estate rather than an interest in a mortgage.

Investments in loans may include unfunded loan commitments, which are contractual obligations for funding. Unfunded loan commitments may include revolving credit facilities, which may obligate the Portfolio to supply additional cash to the borrower on demand. Unfunded loan commitments represent a future obligation in full, even though a percentage of the committed amount may not be utilized by the borrower. When investing in a loan participation, the Portfolio has the right to receive payments of principal, interest and any fees to which it is entitled only from the agent selling the loan agreement and only upon receipt of payments by the agent from the borrower. The Portfolio may receive a commitment fee based on the undrawn portion of the underlying line of credit portion of a loan. In certain circumstances, the Portfolio may receive a penalty fee upon the prepayment of a loan by a borrower. Fees earned or paid are recorded as a component of interest income or interest expense, respectively, on the Statement of Operations. Unfunded loan commitments are reflected as a liability on the Statement of Assets and Liabilities.

Mortgage-Related and Other Asset-Backed Securities  directly or indirectly represent a participation in, or are secured by and payable from, loans on real property. Mortgage-related securities are created from pools of residential or commercial mortgage loans, including mortgage loans made by savings and loan institutions, mortgage bankers, commercial banks and others. These securities provide a monthly payment which consists of both interest and principal. Interest may be determined by fixed or adjustable rates. The rate of prepayments on underlying mortgages will affect the price and volatility of a

mortgage-related security, and may have the effect of shortening or extending the effective duration of the security relative to what was anticipated at the time of purchase. The timely payment of principal and interest of certain mortgage-related securities is guaranteed with the full faith and credit of the U.S. Government. Pools created and guaranteed by non-governmental issuers, including government-sponsored corporations, may be supported by various forms of insurance or guarantees, but there can be no assurance that private insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Many of the risks of investing in mortgage-related securities secured by commercial mortgage loans reflect the effects of local and other economic conditions on real estate markets, the ability of tenants to make lease payments, and the ability of a property to attract and retain tenants. These securities may be less liquid and may exhibit greater price volatility than other types of mortgage-related or other asset-backed securities. Other asset-backed securities are created from many types of assets, including, but not limited to, auto loans, accounts receivable, such as credit card receivables and hospital account receivables, home equity loans, student loans, boat loans, mobile home loans, recreational vehicle loans, manufactured housing loans, aircraft leases, computer leases and syndicated bank loans.

Collateralized Debt Obligations  (“CDOs”) include Collateralized Bond Obligations (“CBOs”), Collateralized Loan Obligations (“CLOs”) and other similarly structured securities. CBOs and CLOs are types of asset-backed securities. A CBO is a trust which is backed by a diversified pool of high risk, below investment grade fixed income securities. A CLO is a trust typically collateralized by a pool of loans, which may include, among others, domestic and foreign senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated below investment grade or equivalent unrated loans. The risks of an investment in a CDO depend largely on the type of the collateral securities and the class of the CDO in which the Portfolio invests. In addition to the normal risks associated with fixed income securities discussed elsewhere in this report and the Portfolio’s prospectus and statement of additional information (e.g., prepayment risk, credit risk, liquidity risk, market risk, structural risk, legal risk and interest rate risk (which may be exacerbated if the interest rate payable on a structured financing changes based on multiples of changes in interest rates or inversely to changes in interest rates)), CBOs, CLOs and other CDOs carry additional risks including, but not limited to, (i) the possibility that distributions from collateral securities will not be adequate to make interest or other payments, (ii) the quality of the collateral may decline in value or default, (iii) the risk that the Portfolio may invest in CBOs, CLOs, or other CDOs that are subordinate to other classes, and (iv) the complex structure of the security may not be fully understood at the time of investment and may produce disputes with the issuer or unexpected investment results.

36 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

Collateralized Mortgage Obligations  (“CMOs”) are debt obligations of a legal entity that are collateralized by whole mortgage loans or private mortgage bonds and divided into classes. CMOs are structured into multiple classes, often referred to as “tranches”, with each class bearing a different stated maturity and entitled to a different schedule for payments of principal and interest, including prepayments. CMOs may be less liquid and may exhibit greater price volatility than other types of mortgage-related or asset-backed securities.

Stripped Mortgage-Backed Securities  (“SMBS”) are derivative multi-class mortgage securities. SMBS are usually structured with two classes that receive different proportions of the interest and principal distributions on a pool of mortgage assets. An SMBS will have one class that will receive all of the interest (the interest-only or “IO” class), while the other class will receive the entire principal (the principal-only or “PO” class). Payments received for IOs are included in interest income on the Statement of Operations. Because no principal will be received at the maturity of an IO, adjustments are made to the cost of the security on a monthly basis until maturity. These adjustments are included in interest income on the Statement of Operations. Payments received for POs are treated as reductions to the cost and par value of the securities.

Perpetual Bonds  are fixed income securities with no maturity date but pay a coupon in perpetuity (with no specified ending or maturity date). Unlike typical fixed income securities, there is no obligation for perpetual bonds to repay principal. The coupon payments, however, are mandatory. While perpetual bonds have no maturity date, they may have a callable date in which the perpetuity is eliminated and the issuer may return the principal received on the specified call date. Additionally, a perpetual bond may have additional features, such as interest rate increases at periodic dates or an increase as of a predetermined point in the future.

Restricted Investments  are subject to legal or contractual restrictions on resale and may generally be sold privately, but may be required to be registered or exempted from such registration before being sold to the public. Private placement securities are generally considered to be restricted except for those securities traded between qualified institutional investors under the provisions of Rule 144A of the Securities Act of 1933. Disposal of restricted investments may involve time-consuming negotiations and expenses, and prompt sale at an acceptable price may be difficult to achieve. Restricted investments held by the Portfolio at December 31, 2018 are disclosed in the Notes to Schedule of Investments.

Securities Issued by U.S. Government Agencies or Government-Sponsored Enterprises  are obligations of and, in certain cases, guaranteed by, the U.S. Government, its agencies or instrumentalities.

Some U.S. Government securities, such as Treasury bills, notes and bonds, and securities guaranteed by the Government National Mortgage Association (“GNMA” or “Ginnie Mae”), are supported by the full faith and credit of the U.S. Government; others, such as those of the Federal Home Loan Banks, are supported by the right of the issuer to borrow from the U.S. Department of the Treasury (the “U.S. Treasury”); and others, such as those of the Federal National Mortgage Association (“FNMA” or “Fannie Mae”), are supported by the discretionary authority of the U.S. Government to purchase the agency’s obligations. U.S. Government securities may include zero coupon securities. Zero coupon securities do not distribute interest on a current basis and tend to be subject to a greater risk than interest-paying securities.

Government-related guarantors (i.e., not backed by the full faith and credit of the U.S. Government) include FNMA and the Federal Home Loan Mortgage Corporation (“FHLMC” or “Freddie Mac”). FNMA is a government-sponsored corporation. FNMA purchases conventional (i.e., not insured or guaranteed by any government agency) residential mortgages from a list of approved seller/servicers which include state and federally chartered savings and loan associations, mutual savings banks, commercial banks and credit unions and mortgage bankers. Pass-through securities issued by FNMA are guaranteed as to timely payment of principal and interest by FNMA, but are not backed by the full faith and credit of the U.S. Government. FHLMC issues Participation Certificates (“PCs”), which are pass-through securities, each representing an undivided interest in a pool of residential mortgages. FHLMC guarantees the timely payment of interest and ultimate collection of principal, but PCs are not backed by the full faith and credit of the U.S. Government.

Roll-timing strategies can be used where the Portfolio seeks to extend the expiration or maturity of a position, such as a TBA security on an underlying asset, by closing out the position before expiration and opening a new position with respect to substantially the same underlying asset with a later expiration date. TBA securities purchased or sold are reflected on the Statement of Assets and Liabilities as an asset or liability, respectively.

When-Issued Transactions  are purchases or sales made on a when-issued basis. These transactions are made conditionally because a security, although authorized, has not yet been issued in the market. Transactions to purchase or sell securities on a when-issued basis involve a commitment by the Portfolio to purchase or sell these securities for a predetermined price or yield, with payment and delivery taking place beyond the customary settlement period. The Portfolio may sell when-issued securities before they are delivered, which may result in a realized gain (loss).

ANNUAL REPORT DECEMBER 31, 2018 37

Notes to Financial Statements (Cont.)

5. BORROWINGS AND OTHER FINANCING TRANSACTIONS

The Portfolio may enter into the borrowings and other financing transactions described below to the extent permitted by the Portfolio’s investment policies.

The following disclosures contain information on the Portfolio’s ability to lend or borrow cash or securities to the extent permitted under the Act, which may be viewed as borrowing or financing transactions by the Portfolio. The location of these instruments in the Portfolio’s financial statements is described below.

(a) Repurchase Agreements  Under the terms of a typical repurchase agreement, the Portfolio purchases an underlying debt obligation (collateral) subject to an obligation of the seller to repurchase, and the Portfolio to resell, the obligation at an agreed-upon price and time. In an open maturity repurchase agreement, there is no pre-determined repurchase date and the agreement can be terminated by the Portfolio or counterparty at any time. The underlying securities for all repurchase agreements are held by the Portfolio’s custodian or designated subcustodians under tri-party repurchase agreements and in certain instances will remain in custody with the counterparty. The market value of the collateral must be equal to or exceed the total amount of the repurchase obligations, including interest. Repurchase agreements, if any, including accrued interest, are included on the Statement of Assets and Liabilities. Interest earned is recorded as a component of interest income on the Statement of Operations. In periods of increased demand for collateral, the Portfolio may pay a fee for the receipt of collateral, which may result in interest expense to the Portfolio.

(b) Reverse Repurchase Agreements  In a reverse repurchase agreement, the Portfolio delivers a security in exchange for cash to a financial institution, the counterparty, with a simultaneous agreement to repurchase the same or substantially the same security at an agreed upon price and date. In an open maturity reverse repurchase agreement, there is no pre-determined repurchase date and the agreement can be terminated by the Portfolio or counterparty at any time. The Portfolio is entitled to receive principal and interest payments, if any, made on the security delivered to the counterparty during the term of the agreement. Cash received in exchange for securities delivered plus accrued interest payments to be made by the Portfolio to counterparties are reflected as a liability on the Statement of Assets and Liabilities. Interest payments made by the Portfolio to counterparties are recorded as a component of interest expense on the Statement of Operations. In periods of increased demand for the security, the Portfolio may receive a fee for use of the security by the counterparty, which may result in interest income to the Portfolio. The Portfolio will segregate assets determined to be liquid by the Adviser or will otherwise cover its obligations under reverse repurchase agreements.

(c) Sale-Buybacks  A sale-buyback financing transaction consists of a sale of a security by the Portfolio to a financial institution, the counterparty, with a simultaneous agreement to repurchase the same or substantially the same security at an agreed-upon price and date. The Portfolio is not entitled to receive principal and interest payments, if any, made on the security sold to the counterparty during the term of the agreement. The agreed-upon proceeds for securities to be repurchased by the Portfolio are reflected as a liability on the Statement of Assets and Liabilities. The Portfolio will recognize net income represented by the price differential between the price received for the transferred security and the agreed-upon repurchase price. This is commonly referred to as the ‘price drop’. A price drop consists of (i) the foregone interest and inflationary income adjustments, if any, the Portfolio would have otherwise received had the security not been sold and (ii) the negotiated financing terms between the Portfolio and counterparty. Foregone interest and inflationary income adjustments, if any, are recorded as components of interest income on the Statement of Operations. Interest payments based upon negotiated financing terms made by the Portfolio to counterparties are recorded as a component of interest expense on the Statement of Operations. In periods of increased demand for the security, the Portfolio may receive a fee for use of the security by the counterparty, which may result in interest income to the Portfolio. The Portfolio will segregate assets determined to be liquid by the Adviser or will otherwise cover its obligations under sale-buyback transactions.

(d) Short Sales  Short sales are transactions in which the Portfolio sells a security that it may not own. The Portfolio may make short sales of securities to (i) offset potential declines in long positions in similar securities, (ii) to increase the flexibility of the Portfolio, (iii) for investment return, (iv) as part of a risk arbitrage strategy, and (v) as part of its overall portfolio management strategies involving the use of derivative instruments. When the Portfolio engages in a short sale, it may borrow the security sold short and deliver it to the counterparty. The Portfolio will ordinarily have to pay a fee or premium to borrow a security and be obligated to repay the lender of the security any dividend or interest that accrues on the security during the period of the loan. Securities sold in short sale transactions and the dividend or interest payable on such securities, if any, are reflected as payable for short sales on the Statement of Assets and Liabilities. Short sales expose the Portfolio to the risk that it will be required to cover its short position at a time when the security or other asset has appreciated in value, thus resulting in losses to the Portfolio. A short sale is “against the box” if the Portfolio holds in its portfolio or has the right to acquire the security sold short, or securities identical to the security sold short, at no additional cost. The Portfolio will be subject to additional risks to the extent that it engages in short sales that are not “against the box.”

38 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

The Portfolio’s loss on a short sale could theoretically be unlimited in cases where the Portfolio is unable, for whatever reason, to close out its short position.

6. FINANCIAL DERIVATIVE INSTRUMENTS

The Portfolio may enter into the financial derivative instruments described below to the extent permitted by the Portfolio’s investment policies.

The following disclosures contain information on how and why the Portfolio uses financial derivative instruments, and how financial derivative instruments affect the Portfolio’s financial position, results of operations and cash flows. The location and fair value amounts of these instruments on the Statement of Assets and Liabilities and the net realized gain (loss) and net change in unrealized appreciation (depreciation) on the Statement of Operations, each categorized by type of financial derivative contract and related risk exposure, are included in a table in the Notes to Schedule of Investments. The financial derivative instruments outstanding as of period end and the amounts of net realized gain (loss) and net change in unrealized appreciation (depreciation) on financial derivative instruments during the period, as disclosed in the Notes to Schedule of Investments, serve as indicators of the volume of financial derivative activity for the Portfolio.

(a) Forward Foreign Currency Contracts  may be engaged, in connection with settling planned purchases or sales of securities, to hedge the currency exposure associated with some or all of the Portfolio’s securities or as part of an investment strategy. A forward foreign currency contract is an agreement between two parties to buy and sell a currency at a set price on a future date. The market value of a forward foreign currency contract fluctuates with changes in foreign currency exchange rates. Forward foreign currency contracts are marked to market daily, and the change in value is recorded by the Portfolio as an unrealized gain (loss). Realized gains (losses) are equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed and are recorded upon delivery or receipt of the currency. These contracts may involve market risk in excess of the unrealized gain (loss) reflected on the Statement of Assets and Liabilities. In addition, the Portfolio could be exposed to risk if the counterparties are unable to meet the terms of the contracts or if the value of the currency changes unfavorably to the U.S. dollar. To mitigate such risk, cash or securities may be exchanged as collateral pursuant to the terms of the underlying contracts.

(b) Futures Contracts  are agreements to buy or sell a security or other asset for a set price on a future date. The Portfolio may use futures contracts to manage its exposure to the securities markets or to movements in interest rates and currency values. The primary risks

associated with the use of futures contracts are the imperfect correlation between the change in market value of the securities held by the Portfolio and the prices of futures contracts and the possibility of an illiquid market. Futures contracts are valued based upon their quoted daily settlement prices. Upon entering into a futures contract, the Portfolio is required to deposit with its futures broker an amount of cash, U.S. Government and Agency Obligations, or select sovereign debt, in accordance with the initial margin requirements of the broker or exchange. Futures contracts are marked to market daily and based on such movements in the price of the contracts, an appropriate payable or receivable for the change in value may be posted or collected by the Portfolio (“Futures Variation Margin”). Gains (losses) are recognized but not considered realized until the contracts expire or close. Futures contracts involve, to varying degrees, risk of loss in excess of the Futures Variation Margin included within exchange traded or centrally cleared financial derivative instruments on the Statement of Assets and Liabilities.

(c) Options Contracts  may be written or purchased to enhance returns or to hedge an existing position or future investment. The Portfolio may write call and put options on securities and financial derivative instruments it owns or in which it may invest. Writing put options tends to increase the Portfolio’s exposure to the underlying instrument. Writing call options tends to decrease the Portfolio’s exposure to the underlying instrument. When the Portfolio writes a call or put, an amount equal to the premium received is recorded and subsequently marked to market to reflect the current value of the option written. These amounts are included on the Statement of Assets and Liabilities. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options which are exercised or closed are added to the proceeds or offset against amounts paid on the underlying futures, swap, security or currency transaction to determine the realized gain (loss). Certain options may be written with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. The Portfolio as a writer of an option has no control over whether the underlying instrument may be sold (“call”) or purchased (“put”) and as a result bears the market risk of an unfavorable change in the price of the instrument underlying the written option. There is the risk the Portfolio may not be able to enter into a closing transaction because of an illiquid market.

Purchasing call options tends to increase the Portfolio’s exposure to the underlying instrument. Purchasing put options tends to decrease the Portfolio’s exposure to the underlying instrument. The Portfolio pays a premium which is included as an asset on the Statement of Assets and Liabilities and subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options which expire

ANNUAL REPORT DECEMBER 31, 2018 39

Notes to Financial Statements (Cont.)

are treated as realized losses. Certain options may be purchased with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. The risk associated with purchasing put and call options is limited to the premium paid. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the underlying investment transaction to determine the realized gain (loss) when the underlying transaction is executed.

Credit Default Swaptions  may be written or purchased to hedge exposure to the credit risk of an investment without making a commitment to the underlying instrument. A credit default swaption is an option to sell or buy credit protection on a specific reference by entering into a pre-defined swap agreement by some specified date in the future.

Foreign Currency Options  may be written or purchased to be used as a short or long hedge against possible variations in foreign exchange rates or to gain exposure to foreign currencies.

Interest Rate Swaptions  may be written or purchased to enter into a pre-defined swap agreement or to shorten, extend, cancel or otherwise modify an existing swap agreement, by some specified date in the future. The writer of the swaption becomes the counterparty to the swap if the buyer exercises. The interest rate swaption agreement will specify whether the buyer of the swaption will be a fixed-rate receiver or a fixed-rate payer upon exercise.

Options on Exchange-Traded Futures Contracts  (“Futures Option”) may be written or purchased to hedge an existing position or future investment, for speculative purposes or to manage exposure to market movements. A Futures Option is an option contract in which the underlying instrument is a single futures contract.

Options on Securities  may be written or purchased to enhance returns or to hedge an existing position or future investment. An option on a security uses a specified security as the underlying instrument for the option contract.

(d) Swap Agreements  are bilaterally negotiated agreements between the Portfolio and a counterparty to exchange or swap investment cash flows, assets, foreign currencies or market-linked returns at specified, future intervals. Swap agreements may be privately negotiated in the over the counter market (“OTC swaps”) or may be cleared through a third party, known as a central counterparty or derivatives clearing organization (“Centrally Cleared Swaps”). The Portfolio may enter into asset, credit default, cross-currency, interest rate, total return, variance and other forms of swap agreements to manage its exposure to credit, currency, interest rate, commodity, equity and inflation risk. In connection with these agreements, securities or cash may be identified as collateral or margin in accordance with the terms of the respective

swap agreements to provide assets of value and recourse in the event of default or bankruptcy/insolvency.

Centrally Cleared Swaps are marked to market daily based upon valuations as determined from the underlying contract or in accordance with the requirements of the central counterparty or derivatives clearing organization. Changes in market value, if any, are reflected as a component of net change in unrealized appreciation (depreciation) on the Statement of Operations. Daily changes in valuation of centrally cleared swaps (“Swap Variation Margin”), if any, are disclosed within centrally cleared financial derivative instruments on the Statement of Assets and Liabilities. Centrally Cleared and OTC swap payments received or paid at the beginning of the measurement period are included on the Statement of Assets and Liabilities and represent premiums paid or received upon entering into the swap agreement to compensate for differences between the stated terms of the swap agreement and prevailing market conditions (credit spreads, currency exchange rates, interest rates, and other relevant factors). Upfront premiums received (paid) are initially recorded as liabilities (assets) and subsequently marked to market to reflect the current value of the swap. These upfront premiums are recorded as realized gain (loss) on the Statement of Operations upon termination or maturity of the swap. A liquidation payment received or made at the termination of the swap is recorded as realized gain (loss) on the Statement of Operations. Net periodic payments received or paid by the Portfolio are included as part of realized gain (loss) on the Statement of Operations.

For purposes of applying certain of the Portfolio’s investment policies and restrictions, swap agreements, like other derivative instruments, may be valued by the Portfolio at market value, notional value or full exposure value. In the case of a credit default swap, in applying certain of the Portfolio’s investment policies and restrictions, the Portfolio will value the credit default swap at its notional value or its full exposure value (i.e., the sum of the notional amount for the contract plus the market value), but may value the credit default swap at market value for purposes of applying certain of the Portfolio’s other investment policies and restrictions. For example, the Portfolio may value credit default swaps at full exposure value for purposes of the Portfolio’s credit quality guidelines (if any) because such value in general better reflects the Portfolio’s actual economic exposure during the term of the credit default swap agreement. As a result, the Portfolio may, at times, have notional exposure to an asset class (before netting) that is greater or lesser than the stated limit or restriction noted in the Portfolio’s prospectus. In this context, both the notional amount and the market value may be positive or negative depending on whether the Portfolio is selling or buying protection through the credit default swap. The manner in which certain securities or other instruments are valued by the Portfolio for purposes of applying investment policies and restrictions may differ from the manner in which those investments are valued by other types of investors.

40 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

Entering into swap agreements involves, to varying degrees, elements of interest, credit, market and documentation risk in excess of the amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of contractual terms in the agreements and that there may be unfavorable changes in interest rates or the values of the asset upon which the swap is based.

The Portfolio’s maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from the counterparty over the contract’s remaining life, to the extent that amount is positive. The risk may be mitigated by having a master netting arrangement between the Portfolio and the counterparty and by the posting of collateral to the Portfolio to cover the Portfolio’s exposure to the counterparty.

To the extent the Portfolio has a policy to limit the net amount owed to or to be received from a single counterparty under existing swap agreements, such limitation only applies to counterparties to OTC swaps and does not apply to centrally cleared swaps where the counterparty is a central counterparty or derivatives clearing organization.

Credit Default Swap Agreements  on corporate, loan, sovereign, U.S. municipal or U.S. Treasury issues are entered into to provide a measure of protection against defaults of the issuers (i.e., to reduce risk where the Portfolio owns or has exposure to the referenced obligation) or to take an active long or short position with respect to the likelihood of a particular issuer’s default. Credit default swap agreements involve one party making a stream of payments (referred to as the buyer of protection) to another party (the seller of protection) in exchange for the right to receive a specified return in the event that the referenced entity, obligation or index, as specified in the swap agreement, undergoes a certain credit event. As a seller of protection on credit default swap agreements, the Portfolio will generally receive from the buyer of protection a fixed rate of income throughout the term of the swap provided that there is no credit event. As the seller, the Portfolio would effectively add leverage to its portfolio because, in addition to its total net assets, the Portfolio would be subject to investment exposure on the notional amount of the swap.

If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap

less the recovery value of the referenced obligation or underlying securities comprising the referenced index. If the Portfolio is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. Recovery values are estimated by market makers considering either industry standard recovery rates or entity specific factors and considerations until a credit event occurs. If a credit event has occurred, the recovery value is determined by a facilitated auction whereby a minimum number of allowable broker bids, together with a specified valuation method, are used to calculate the settlement value. The ability to deliver other obligations may result in a cheapest-to-deliver option (the buyer of protection’s right to choose the deliverable obligation with the lowest value following a credit event).

Credit default swap agreements on credit indices involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising the credit index. A credit index is a basket of credit instruments or exposures designed to be representative of some part of the credit market as a whole. These indices are made up of reference credits that are judged by a poll of dealers to be the most liquid entities in the credit default swap market based on the sector of the index. Components of the indices may include, but are not limited to, investment grade securities, high yield securities, asset-backed securities, emerging markets, and/or various credit ratings within each sector. Credit indices are traded using credit default swaps with standardized terms including a fixed spread and standard maturity dates. An index credit default swap references all the names in the index, and if there is a default, the credit event is settled based on that name’s weight in the index. The composition of the indices changes periodically, usually every six months, and for most indices, each name has an equal weight in the index. The Portfolio may use credit default swaps on credit indices to hedge a portfolio of credit default swaps or bonds, which is less expensive than it would be to buy many credit default swaps to achieve a similar effect. Credit default swaps on indices are instruments for protecting investors owning bonds against default, and traders use them to speculate on changes in credit quality.

Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate, loan, sovereign, U.S. municipal or U.S. Treasury issues as of period end, if any, are disclosed in the Notes to Schedule of

ANNUAL REPORT DECEMBER 31, 2018 41

Notes to Financial Statements (Cont.)

Investments. They serve as an indicator of the current status of payment/performance risk and represent the likelihood or risk of default for the reference entity. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. For credit default swap agreements on asset-backed securities and credit indices, the quoted market prices and resulting values serve as the indicator of the current status of the payment/performance risk. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

The maximum potential amount of future payments (undiscounted) that the Portfolio as a seller of protection could be required to make under a credit default swap agreement equals the notional amount of the agreement. Notional amounts of each individual credit default swap agreement outstanding as of period end for which the Portfolio is the seller of protection are disclosed in the Notes to Schedule of Investments. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Portfolio for the same referenced entity or entities.

Cross-Currency Swap Agreements  are entered into to gain or mitigate exposure to currency risk. Cross-currency swap agreements involve two parties exchanging two different currencies with an agreement to reverse the exchange at a later date at specified exchange rates. The exchange of currencies at the inception date of the contract takes place at the current spot rate. The re-exchange at maturity may take place at the same exchange rate, a specified rate, or the then current spot rate. Interest payments, if applicable, are made between the parties based on interest rates available in the two currencies at the inception of the contract. The terms of cross-currency swap contracts may extend for many years. Cross-currency swaps are usually negotiated with commercial and investment banks. Some cross-currency swaps may not provide for exchanging principal cash flows, but only for exchanging interest cash flows.

Interest Rate Swap Agreements  may be entered into to help hedge against interest rate risk exposure and to maintain the Portfolio’s ability to generate income at prevailing market rates. The value of the fixed rate bonds that the Portfolio holds may decrease if interest rates rise.

To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, the Portfolio may enter into interest rate swap agreements. Interest rate swap agreements involve the exchange by the Portfolio with another party for their respective commitment to pay or receive interest on the notional amount of principal. Certain forms of interest rate swap agreements may include: (i) interest rate caps, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates exceed a specified rate, or “cap”, (ii) interest rate floors, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates fall below a specified rate, or “floor”, (iii) interest rate collars, under which a party sells a cap and purchases a floor or vice versa in an attempt to protect itself against interest rate movements exceeding given minimum or maximum levels, (iv) callable interest rate swaps, under which the buyer pays an upfront fee in consideration for the right to early terminate the swap transaction in whole, at zero cost and at a predetermined date and time prior to the maturity date, (v) spreadlocks, which allow the interest rate swap users to lock in the forward differential (or spread) between the interest rate swap rate and a specified benchmark, or (vi) basis swaps, under which two parties can exchange variable interest rates based on different segments of money markets.

Volatility Swap Agreements  are also known as forward volatility agreements and volatility swaps and are agreements in which the counterparties agree to make payments in connection with changes in the volatility (i.e., the magnitude of change over a specified period of time) of an underlying referenced instrument, such as a currency, rate, index, security or other financial instrument. Volatility swaps permit the parties to attempt to hedge volatility risk and/or take positions on the projected future volatility of an underlying referenced instrument. For example, the Portfolio may enter into a volatility swap in order to take the position that the referenced instrument’s volatility will increase over a particular period of time. If the referenced instrument’s volatility does increase over the specified time, the Portfolio will receive payment from its counterparty based upon the amount by which the referenced instrument’s realized volatility level exceeds a volatility level agreed upon by the parties. If the referenced instrument’s volatility does not increase over the specified time, the Portfolio will make a payment to the counterparty based upon the amount by which the referenced instrument’s realized volatility level falls below the volatility level agreed upon by the parties. At the maturity date, a net cash flow is exchanged, where the payoff amount is equivalent to the difference between the realized price volatility of the referenced instrument and the strike multiplied by the notional amount. As a receiver of the realized price volatility, the Portfolio would receive the payoff amount when the realized price volatility of the referenced instrument is greater than the strike and would owe the payoff amount when the volatility is

42 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

less than the strike. As a payer of the realized price volatility, the Portfolio would owe the payoff amount when the realized price volatility of the referenced instrument is greater than the strike and would receive the payoff amount when the volatility is less than the strike. Payments on a volatility swap will be greater if they are based upon the mathematical square of volatility (i.e., the measured volatility multiplied by itself, which is referred to as “variance”). This type of volatility swap is frequently referred to as a variance swap.

7. PRINCIPAL RISKS

The principal risks of investing in the Portfolio, which could adversely affect its net asset value, yield and total return, are listed below. Please see “Description of Principal Risks” in the Portfolio’s prospectus for a more detailed description of the risks of investing in the Portfolio.

Interest Rate Risk  is the risk that fixed income securities will decline in value because of an increase in interest rates; a portfolio with a longer average portfolio duration will be more sensitive to changes in interest rates than a portfolio with a shorter average portfolio duration.

Call Risk  is the risk that an issuer may exercise its right to redeem a fixed income security earlier than expected (a call). Issuers may call outstanding securities prior to their maturity for a number of reasons (e.g., declining interest rates, changes in credit spreads and improvements in the issuer’s credit quality). If an issuer calls a security that the Portfolio has invested in, the Portfolio may not recoup the full amount of its initial investment and may be forced to reinvest in lower-yielding securities, securities with greater credit risks or securities with other, less favorable features.

Credit Risk  is the risk that the Portfolio could lose money if the issuer or guarantor of a fixed income security, or the counterparty to a derivative contract, is unable or unwilling to meet its financial obligations.

High Yield Risk  is the risk that high yield securities and unrated securities of similar credit quality (commonly known as “junk bonds”) are subject to greater levels of credit, call and liquidity risks. High yield securities are considered primarily speculative with respect to the issuer’s continuing ability to make principal and interest payments, and may be more volatile than higher-rated securities of similar maturity.

Market Risk  is the risk that the value of securities owned by the Portfolio may go up or down, sometimes rapidly or unpredictably, due to factors affecting securities markets generally or particular industries.

Issuer Risk  is the risk that the value of a security may decline for a reason directly related to the issuer, such as management performance, financial leverage and reduced demand for the issuer’s goods or services.

Liquidity Risk  is the risk that a particular investment may be difficult to purchase or sell and that the Portfolio may be unable to sell illiquid securities at an advantageous time or price or achieve its desired level of exposure to a certain sector. Liquidity risk may result from the lack of an active market, reduced number and capacity of traditional market participants to make a market in fixed income securities, and may be magnified in a rising interest rate environment or other circumstances where investor redemptions from fixed income mutual funds may be higher than normal, causing increased supply in the market due to selling activity.

Derivatives Risk  is the risk of investing in derivative instruments (such as futures, swaps and structured securities), including leverage, liquidity, interest rate, market, credit and management risks, mispricing or valuation complexity. Changes in the value of the derivative may not correlate perfectly with, and may be more sensitive to market events than, the underlying asset, rate or index, and the Portfolio could lose more than the initial amount invested. The Portfolio’s use of derivatives may result in losses to the Portfolio, a reduction in the Portfolio’s returns and/or increased volatility. Over-the-counter (“OTC”) derivatives are also subject to the risk that a counterparty to the transaction will not fulfill its contractual obligations to the other party, as many of the protections afforded to centrally-cleared derivative transactions might not be available for OTC derivatives. For derivatives traded on an exchange or through a central counterparty, credit risk resides with the Portfolio’s clearing broker, or the clearinghouse itself, rather than with a counterparty in an OTC derivative transaction. Changes in regulation relating to a mutual fund’s use of derivatives and related instruments could potentially limit or impact the Portfolio’s ability to invest in derivatives, limit the Portfolio’s ability to employ certain strategies that use derivatives and/or adversely affect the value of derivatives and the Portfolio’s performance.

Equity Risk  is the risk that the value of equity securities, such as common stocks and preferred securities, may decline due to general market conditions which are not specifically related to a particular company or to factors affecting a particular industry or industries. Equity securities generally have greater price volatility than fixed income securities.

Mortgage-Related and Other Asset-Backed Securities Risk  is the risk of investing in mortgage-related and other asset-backed securities, including interest rate risk, extension risk, prepayment risk and credit risk.

Foreign (Non-U.S.) Investment Risk  is the risk that investing in foreign (non-U.S.) securities may result in the Portfolio experiencing more rapid and extreme changes in value than a portfolio that invests exclusively in securities of U.S. companies, due to smaller markets,

ANNUAL REPORT DECEMBER 31, 2018 43

Notes to Financial Statements (Cont.)

differing reporting, accounting and auditing standards, increased risk of delayed settlement of portfolio transactions or loss of certificates of portfolio securities, and the risk of unfavorable foreign government actions, including nationalization, expropriation or confiscatory taxation, currency blockage, or political changes or diplomatic developments. Foreign securities may also be less liquid and more difficult to value than securities of U.S. issuers.

Emerging Markets Risk  is the risk of investing in emerging market securities, primarily increased foreign (non-U.S.) investment risk.

Sovereign Debt Risk  is the risk that investments in fixed income instruments issued by sovereign entities may decline in value as a result of default or other adverse credit event resulting from an issuer’s inability or unwillingness to make principal or interest payments in a timely fashion.

Currency Risk  is the risk that foreign (non-U.S.) currencies will change in value relative to the U.S. dollar and affect the Portfolio’s investments in foreign (non-U.S.) currencies or in securities that trade in, and receive revenues in, or in derivatives that provide exposure to, foreign (non-U.S.) currencies.

Leveraging Risk  is the risk that certain transactions of the Portfolio, such as reverse repurchase agreements, loans of portfolio securities, and the use of when-issued, delayed delivery or forward commitment transactions, or derivative instruments, may give rise to leverage, magnifying gains and losses and causing the Portfolio to be more volatile than if it had not been leveraged. This means that leverage entails a heightened risk of loss.

Management Risk  is the risk that the investment techniques and risk analyses applied by PIMCO will not produce the desired results and that legislative, regulatory, or tax restrictions, policies or developments may affect the investment techniques available to PIMCO and the individual portfolio manager in connection with managing the Portfolio. There is no guarantee that the investment objective of the Portfolio will be achieved.

Short Exposure Risk  is the risk of entering into short sales, including the potential loss of more money than the actual cost of the investment, and the risk that the third party to the short sale will not fulfill its contractual obligations, causing a loss to the Portfolio.

8. MASTER NETTING ARRANGEMENTS

The Portfolio may be subject to various netting arrangements (“Master Agreements”) with select counterparties. Master Agreements govern the terms of certain transactions, and are intended to reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that is

intended to improve legal certainty. Each type of Master Agreement governs certain types of transactions. Different types of transactions may be traded out of different legal entities or affiliates of a particular organization, resulting in the need for multiple agreements with a single counterparty. As the Master Agreements are specific to unique operations of different asset types, they allow the Portfolio to close out and net its total exposure to a counterparty in the event of a default with respect to all the transactions governed under a single Master Agreement with a counterparty. For financial reporting purposes the Statement of Assets and Liabilities generally presents derivative assets and liabilities on a gross basis, which reflects the full risks and exposures prior to netting.

Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. Under most Master Agreements, collateral is routinely transferred if the total net exposure to certain transactions (net of existing collateral already in place) governed under the relevant Master Agreement with a counterparty in a given account exceeds a specified threshold, which typically ranges from zero to $250,000 depending on the counterparty and the type of Master Agreement. United States Treasury Bills and U.S. dollar cash are generally the preferred forms of collateral, although other securities may be used depending on the terms outlined in the applicable Master Agreement. Securities and cash pledged as collateral are reflected as assets on the Statement of Assets and Liabilities as either a component of Investments at value (securities) or Deposits with counterparty. Cash collateral received is not typically held in a segregated account and as such is reflected as a liability on the Statement of Assets and Liabilities as Deposits from counterparty. The market value of any securities received as collateral is not reflected as a component of NAV. The Portfolio’s overall exposure to counterparty risk can change substantially within a short period, as it is affected by each transaction subject to the relevant Master Agreement.

Master Repurchase Agreements and Global Master Repurchase Agreements (individually and collectively “Master Repo Agreements”) govern repurchase, reverse repurchase, and certain sale-buyback transactions between the Portfolio and select counterparties. Master Repo Agreements maintain provisions for, among other things, initiation, income payments, events of default, and maintenance of collateral. The market value of transactions under the Master Repo Agreement, collateral pledged or received, and the net exposure by counterparty as of period end are disclosed in the Notes to Schedule of Investments.

Master Securities Forward Transaction Agreements (“Master Forward Agreements”) govern certain forward settling transactions, such as TBA securities, delayed-delivery or certain sale-buyback transactions by and between the Portfolio and select counterparties. The Master Forward

44 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

Agreements maintain provisions for, among other things, transaction initiation and confirmation, payment and transfer, events of default, termination, and maintenance of collateral. The market value of forward settling transactions, collateral pledged or received, and the net exposure by counterparty as of period end is disclosed in the Notes to Schedule of Investments.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Such transactions require posting of initial margin as determined by each relevant clearing agency which is segregated in an account at a futures commission merchant (“FCM”) registered with the Commodity Futures Trading Commission (“CFTC”). In the United States, counterparty risk may be reduced as creditors of an FCM cannot have a claim to Portfolio assets in the segregated account. Portability of exposure reduces risk to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives unless the parties have agreed to a separate arrangement in respect of portfolio margining. The market value or accumulated unrealized appreciation (depreciation), initial margin posted, and any unsettled variation margin as of period end are disclosed in the Notes to Schedule of Investments.

International Swaps and Derivatives Association, Inc. Master Agreements and Credit Support Annexes (“ISDA Master Agreements”) govern bilateral OTC derivative transactions entered into by the Portfolio with select counterparties. ISDA Master Agreements maintain provisions for general obligations, representations, agreements, collateral posting and events of default or termination. Events of termination include conditions that may entitle counterparties to elect to terminate early and cause settlement of all outstanding transactions under the applicable ISDA Master Agreement. Any election to terminate early could be material to the financial statements. In limited circumstances, the ISDA Master Agreement may contain additional provisions that add counterparty protection beyond coverage of existing daily exposure if the counterparty has a decline in credit quality below a predefined level. These amounts, if any, may be segregated with a third-party custodian. The market value of OTC financial derivative instruments, collateral received or pledged, and net exposure by counterparty as of period end are disclosed in the Notes to Schedule of Investments.

9. FEES AND EXPENSES

(a) Investment Advisory Fee  PIMCO is a majority-owned subsidiary of Allianz Asset Management of America L.P. (“Allianz Asset Management”) and serves as the Adviser to the Trust, pursuant to an investment advisory contract. The Adviser receives a monthly fee from the Portfolio at an annual rate based on average daily net assets (the

“Investment Advisory Fee”). The Investment Advisory Fee for all classes is charged at an annual rate as noted in the table in note (b) below.

(b) Supervisory and Administrative Fee  PIMCO serves as administrator (the “Administrator”) and provides supervisory and administrative services to the Trust for which it receives a monthly supervisory and administrative fee based on each share class’s average daily net assets (the “Supervisory and Administrative Fee”). As the Administrator, PIMCO bears the costs of various third-party services, including audit, custodial, portfolio accounting, legal, transfer agency and printing costs.

The Investment Advisory Fee and Supervisory and Administrative Fees for all classes, as applicable, are charged at the annual rate as noted in the following table (calculated as a percentage of the Portfolio’s average daily net assets attributable to each class):

Investment Advisory Fee		Supervisory and Administrative Fee
All Classes		Institutional Class		Administrative Class		Advisor Class
	0.25%		0.50%		0.50%		0.50%

(c) Distribution and Servicing Fees  PIMCO Investments LLC, a wholly-owned subsidiary of PIMCO, serves as the distributor (“Distributor”) of the Trust’s shares.

The Trust has adopted an Administrative Services Plan with respect to the Administrative Class shares of the Portfolio pursuant to Rule 12b-1 under the Act (the “Administrative Plan”). Under the terms of the Administrative Plan, the Trust is permitted to compensate the Distributor, out of the Administrative Class assets of the Portfolio, in an amount up to 0.15% on an annual basis of the average daily net assets of that class, for providing or procuring through financial intermediaries administrative, recordkeeping and investor services for Administrative Class shareholders of the Portfolio.

The Trust has adopted a separate Distribution and Servicing Plan for the Advisor Class shares of the Portfolio (the “Distribution and Servicing Plan”). The Distribution and Servicing Plan has been adopted pursuant to Rule 12b-1 under the Act. The Distribution and Servicing Plan permits the Portfolio to compensate the Distributor for providing or procuring through financial intermediaries, distribution, administrative, recordkeeping, shareholder and/or related services with respect to Advisor Class shares. The Distribution and Servicing Plan permits the Portfolio to make total payments at an annual rate of up to 0.25% of its average daily net assets attributable to its Advisor Class shares.

	Distribution Fee		Servicing Fee
Administrative Class		—		0.15%
Advisor Class		0.25%		—

(d) Portfolio Expenses  PIMCO provides or procures supervisory and administrative services for shareholders and also bears the costs of

ANNUAL REPORT DECEMBER 31, 2018 45

Notes to Financial Statements (Cont.)

various third-party services required by the Portfolio, including audit, custodial, portfolio accounting, legal, transfer agency and printing costs. The Trust is responsible for the following expenses: (i) taxes and governmental fees; (ii) brokerage fees and commissions and other portfolio transaction expenses; (iii) the costs of borrowing money, including interest expense; (iv) fees and expenses of the Trustees who are not “interested persons” of PIMCO or the Trust, and any counsel retained exclusively for their benefit; (v) extraordinary expense, including costs of litigation and indemnification expenses; (vi) organizational expenses; and (vii) any expenses allocated or allocable to a specific class of shares, which include service fees payable with respect to the Administrative Class Shares, and may include certain other expenses as permitted by the Trust’s Multi-Class Plan adopted pursuant to Rule 18f-3 under the Act and subject to review and approval by the Trustees. The ratio of expenses to average net assets per share class, as disclosed on the Financial Highlights, may differ from the annual portfolio operating expenses per share class.

Each Trustee, other than those affiliated with PIMCO or its affiliates, receives an annual retainer of $41,200, plus $4,250 for each Board meeting attended in person, $850 for each committee meeting attended and $750 for each Board meeting attended telephonically, plus reimbursement of related expenses. In addition, the audit committee chair receives an additional annual retainer of $8,000, the valuation oversight committee lead receives an additional annual retainer of $8,500 (to the extent there are co-leads of the valuation oversight committee, the annual retainer will be split evenly between the co-leads, so that each co-lead individually receives an additional annual retainer of $4,250) and each other committee chair receives an additional annual retainer of $5,500. The Lead Independent Trustee receives an annual retainer of $7,000.

These expenses are allocated on a pro rata basis to each Portfolio of the Trust according to its respective net assets. The Trust pays no compensation directly to any Trustee or any other officer who is affiliated with the Administrator, all of whom receive remuneration for their services to the Trust from the Administrator or its affiliates.

(e) Expense Limitation  Pursuant to the Expense Limitation Agreement, PIMCO has agreed to waive a portion of the Portfolio’s Supervisory and Administrative Fee, or reimburse the Portfolio, to the extent that the Portfolio’s organizational expenses, pro rata share of expenses related to obtaining or maintaining a Legal Entity Identifier and pro rata share of Trustee Fees exceed 0.0049%, the “Expense Limit” (calculated as a percentage of the Portfolio’s average daily net assets attributable to each class). The Expense Limitation Agreement will automatically renew for one-year terms unless PIMCO provides written notice to the Trust at least 30 days prior to the end of the then current term.

Under certain conditions, PIMCO may be reimbursed for amounts waived pursuant to the Expense Limitation Agreement in future periods, not to exceed thirty-six months after the waiver. At December 31, 2018, there were no recoverable amounts.

10. RELATED PARTY TRANSACTIONS

The Adviser, Administrator, and Distributor are related parties. Fees paid to these parties are disclosed in Note 9, Fees and Expenses, and the accrued related party fee amounts are disclosed on the Statement of Assets and Liabilities.

11. GUARANTEES AND INDEMNIFICATIONS

Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust (including the Trust’s investment manager) is indemnified, to the extent permitted by the Act, against certain liabilities that may arise out of performance of their duties to the Portfolio. Additionally, in the normal course of business, the Portfolio enters into contracts that contain a variety of indemnification clauses. The Portfolio’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Portfolio that have not yet occurred. However, the Portfolio has not had prior claims or losses pursuant to these contracts.

12. PURCHASES AND SALES OF SECURITIES

The length of time the Portfolio has held a particular security is not generally a consideration in investment decisions. A change in the securities held by the Portfolio is known as “portfolio turnover.” The Portfolio may engage in frequent and active trading of portfolio securities to achieve its investment objective, particularly during periods of volatile market movements. High portfolio turnover may involve correspondingly greater transaction costs to the Portfolio, including brokerage commissions or dealer mark-ups and other transaction costs on the sale of securities and reinvestments in other securities. Such sales may also result in realization of taxable capital gains, including short-term capital gains (which are generally taxed at ordinary income tax rates). The transaction costs and tax effects associated with portfolio turnover may adversely affect a shareholder’s performance. The portfolio turnover rates are reported in the Financial Highlights.

Purchases and sales of securities (excluding short-term investments) for the period ended December 31, 2018, were as follows (amounts in thousands^†):

U.S. Government/Agency				All Other
Purchases		Sales		Purchases		Sales
$	529,393	$	539,194	$	58,038	$	74,103

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

46 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

13. SHARES OF BENEFICIAL INTEREST

The Trust may issue an unlimited number of shares of beneficial interest with a $0.001 par value. Changes in shares of beneficial interest were as follows (shares and amounts in thousands^†):

	Year Ended 12/31/2018						Year Ended 12/31/2017
	Shares			Amount			Shares			Amount
Receipts for shares sold
Institutional Class		150		$	1,805			132		$	1,592
Administrative Class		2,204			26,588			2,627			31,692
Advisor Class		233			2,821			576			6,981
Issued as reinvestment of distributions
Institutional Class		62			692			17			211
Administrative Class		1,077			12,071			324			3,951
Advisor Class		152			1,707			46			557
Cost of shares redeemed
Institutional Class		(159	)		(1,911	)		(130	)		(1,579	)
Administrative Class		(4,177	)		(50,215	)		(3,946	)		(47,698	)
Advisor Class		(590	)		(7,059	)		(936	)		(11,303	)
Net increase (decrease) resulting from Portfolio share transactions		(1,048	)	$	(13,501	)		(1,290	)	$	(15,596	)

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

As of December 31, 2018, two shareholders each owned 10% or more of the Portfolio’s total outstanding shares comprising 63% of the Portfolio. One of the shareholders is a related party and comprises 28% of the Portfolio. Related parties may include, but are not limited to, the investment adviser and its affiliates, affiliated broker dealers, fund of funds and directors or employees of the Trust or Adviser.

14. REGULATORY AND LITIGATION MATTERS

The Portfolio is not named as a defendant in any material litigation or arbitration proceedings and is not aware of any material litigation or claim pending or threatened against it. The foregoing speaks only as of the date of this report.

15. FEDERAL INCOME TAX MATTERS

The Portfolio intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code (the “Code”) and distribute all of its taxable income and net realized gains, if applicable, to shareholders. Accordingly, no provision for Federal income taxes has been made.

The Portfolio may be subject to local withholding taxes, including those imposed on realized capital gains. Any applicable foreign capital gains

tax is accrued daily based upon net unrealized gains, and may be payable following the sale of any applicable investments.

In accordance with U.S. GAAP, the Adviser has reviewed the Portfolio’s tax positions for all open tax years. As of December 31, 2018, the Portfolio has recorded no liability for net unrecognized tax benefits relating to uncertain income tax positions it has taken or expects to take in future tax returns.

The Portfolio files U.S. federal, state, and local tax returns as required. The Portfolio’s tax returns are subject to examination by relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return but which can be extended to six years in certain circumstances. Tax returns for open years have incorporated no uncertain tax positions that require a provision for income taxes.

Shares of the Portfolio currently are sold to segregated asset accounts (“Separate Accounts”) of insurance companies that fund variable annuity contracts and variable life insurance policies (“Variable Contracts”). Please refer to the prospectus for the Separate Account and Variable Contract for information regarding Federal income tax treatment of distributions to the Separate Account.

ANNUAL REPORT DECEMBER 31, 2018 47

Notes to Financial Statements (Cont.)

December 31, 2018

As of December 31, 2018, the components of distributable taxable earnings are as follows (amounts in thousands^†):

	Undistributed Ordinary Income(1)		Undistributed Long-Term Capital Gains		Net Tax Basis Unrealized Appreciation/ (Depreciation)(2)			Other Book-to-Tax Accounting Differences(3)		Accumulated Capital Losses(4)			Qualified Late-Year Loss Deferral - Capital(5)		Qualified Late-Year Loss Deferral  - Ordinary(6)
PIMCO Global Bond Opportunities Portfolio (Unhedged)	$	0	$	0	$	(1,898	)	$	0	$	(2,348	)	$	0	$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽¹⁾  Includes undistributed short-term capital gains, if any.

⁽²⁾  Adjusted for open wash sale loss deferrals and the accelerated recognition of unrealized gain or loss on certain futures, options and forward contracts for federal income tax, purposes. Also adjusted for differences between book and tax realized and unrealized gain (loss) on swap contracts, sale/buyback transactions, convertible preferred securities, straddle loss deferrals, and Lehman securities.

⁽³⁾  Represents differences in income tax regulations and financial accounting principles generally accepted in the United States of America.

⁽⁴⁾  Capital losses available to offset future net capital gains expire in varying amounts as shown below.

⁽⁵⁾  Capital losses realized during the period November 1, 2018 through December 31, 2018 which the Portfolio elected to defer to the following taxable year pursuant to income tax regulations.

⁽⁶⁾  Specified losses realized during the period November 1, 2018 through December 31, 2018 which the Portfolio elected to defer to the following taxable year pursuant to income tax regulations.

Under the Regulated Investment Company Modernization Act of 2010, a fund is permitted to carry forward any new capital losses for an unlimited period. Additionally, such capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term under previous law.

As of December 31, 2018, the Portfolio had the following post-effective capital losses with no expiration (amounts in thousands^†):

	Short-Term		Long-Term
PIMCO Global Bond Opportunities Portfolio (Unhedged)	$	571	$	1,777

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

As of December 31, 2018, the aggregate cost and the net unrealized appreciation/(depreciation) of investments for federal income tax purposes are as follows (amounts in thousands^†):

	Federal Tax Cost		Unrealized Appreciation		Unrealized (Depreciation)			Net  Unrealized Appreciation/ (Depreciation)(7)
PIMCO Global Bond Opportunities Portfolio (Unhedged)	$	250,634	$	13,535	$	(15,493	)	$	(1,958	)

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽⁷⁾  Primary differences, if any, between book and tax net unrealized appreciation/(depreciation) on investments are attributable to open wash sale loss deferrals, unrealized gain or loss on certain futures, options and forward contracts, treasury inflation protected securities (TIPS), sale/buyback transactions, realized and unrealized gain (loss) swap contracts, convertible preferred securities, straddle loss deferrals, and Lehman securities.

For the fiscal year ended December 31, 2018 and December 31, 2017, respectively, the Portfolio made the following tax basis distributions (amounts in thousands^†):

	December 31, 2018						December 31, 2017
	Ordinary Income Distributions(8)		Long-Term Capital Gain Distributions		Return of Capital(9)		Ordinary Income Distributions(8)		Long-Term Capital Gain Distributions		Return of Capital(9)
PIMCO Global Bond Opportunities Portfolio (Unhedged)	$	13,075	$	587	$	809	$	4,719	$	0	$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽⁸⁾  Includes short-term capital gains distributed, if any.

⁽⁹⁾  A portion of the distributions made represents a tax return of capital. Return of capital distributions have been reclassified from undistributed net investment income to paid-in capital to more appropriately conform financial accounting to tax accounting.

48 PIMCO VARIABLE INSURANCE TRUST

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of PIMCO Variable Insurance Trust and Shareholders of PIMCO Global Bond Opportunities Portfolio (Unhedged)

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of PIMCO Global Bond Opportunities Portfolio (Unhedged) (one of the portfolios constituting PIMCO Variable Insurance Trust, referred to hereafter as the “Portfolio”) as of December 31, 2018, the related statement of operations for the year ended December 31, 2018, the statement of changes in net assets for each of the two years in the period ended December 31, 2018, including the related notes, and the financial highlights for each of the five years in the period ended December 31, 2018 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Portfolio as of December 31, 2018, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended December 31, 2018 and the financial highlights for each of the five years in the period ended December 31, 2018 in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Portfolio’s management. Our responsibility is to express an opinion on the Portfolio’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Portfolio in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2018 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

Kansas City, Missouri

February 20, 2019

We have served as the auditor of one or more investment companies in PIMCO Variable Insurance Trust since 1998.

ANNUAL REPORT DECEMBER 31, 2018 49

Glossary: (abbreviations that may be used in the preceding statements)

(Unaudited)

Counterparty Abbreviations:
AZD	Australia and New Zealand Banking Group	GRE	RBS Securities, Inc.	RBC	Royal Bank of Canada
BOA	Bank of America N.A.	GST	Goldman Sachs International	RYL	Royal Bank of Scotland Group PLC
BOM	Bank of Montreal	HUS	HSBC Bank USA N.A.	SCX	Standard Chartered Bank
BPS	BNP Paribas S.A.	IND	Crédit Agricole Corporate and Investment Bank S.A.	SOG	Societe Generale
BRC	Barclays Bank PLC	JPM	JPMorgan Chase Bank N.A.	SSB	State Street Bank and Trust Co.
CBK	Citibank N.A.	MSB	Morgan Stanley Bank, N.A	TDM	TD Securities (USA) LLC
DUB	Deutsche Bank AG	MYC	Morgan Stanley Capital Services, Inc.	TOR	Toronto Dominion Bank
FBF	Credit Suisse International	MYI	Morgan Stanley & Co. International PLC	UAG	UBS AG Stamford
GLM	Goldman Sachs Bank USA	NGF	Nomura Global Financial Products, Inc.
Currency Abbreviations:
ARS	Argentine Peso	EUR	Euro	NZD	New Zealand Dollar
AUD	Australian Dollar	GBP	British Pound	PEN	Peruvian New Sol
BRL	Brazilian Real	IDR	Indonesian Rupiah	PLN	Polish Zloty
CAD	Canadian Dollar	ILS	Israeli Shekel	RON	Romanian New Leu
CHF	Swiss Franc	JPY	Japanese Yen	RUB	Russian Ruble
CLP	Chilean Peso	KRW	South Korean Won	SEK	Swedish Krona
CNH	Chinese Renminbi (Offshore)	MXN	Mexican Peso	TWD	Taiwanese Dollar
COP	Colombian Peso	NGN	Nigerian Naira	USD (or $)	United States Dollar
DKK	Danish Krone	NOK	Norwegian Krone	ZAR	South African Rand
Exchange Abbreviations:
CBOT	Chicago Board of Trade	OTC	Over the Counter
Index/Spread Abbreviations:
BADLARPP	Argentina Badlar Floating Rate Notes	CDX.IG	Credit Derivatives Index - Investment Grade	US0001M	1 Month USD Swap Rate
CDX.EM	Credit Derivatives Index - Emerging Markets	LIBOR03M	3 Month USD-LIBOR	US0003M	3 Month USD Swap Rate
CDX.HY	Credit Derivatives Index - High Yield
Other Abbreviations:
ABS	Asset-Backed Security	DAC	Designated Activity Company	Lunar	Monthly payment based on 28-day periods. One year consists of 13 periods.
ALT	Alternate Loan Trust	EURIBOR	Euro Interbank Offered Rate	OAT	Obligations Assimilables du Trésor
BTP	Buoni del Tesoro Poliennali	JIBAR	Johannesburg Interbank Agreed Rate	OIS	Overnight Index Swap
CDI	Brazil Interbank Deposit Rate	KORIBOR	Korea Interbank Offered Rate	TBA	To-Be-Announced
CLO	Collateralized Loan Obligation	LIBOR	London Interbank Offered Rate	TIIE	Tasa de Interés Interbancaria de Equilibrio “Equilibrium Interbank Interest Rate”

50 PIMCO VARIABLE INSURANCE TRUST

Federal Income Tax Information

(Unaudited)

As required by the Internal Revenue Code (the “Code”) and Treasury Regulations, if applicable, shareholders must be notified regarding the status of qualified dividend income and the dividend received deduction.

Dividend Received Deduction.  Corporate shareholders are generally entitled to take the dividend received deduction on the portion of a Fund’s dividend distribution that qualifies under tax law. The percentage of the following Portfolio’s fiscal 2018 ordinary income dividend that qualifies for the corporate dividend received deduction is set forth in the table below.

Qualified Dividend Income.  Under the Jobs and Growth Tax Relief Reconciliation Act of 2003 (the “Act”), the percentage of ordinary dividends paid during the calendar year designated as “qualified dividend income”, as defined in the Act, subject to reduced tax rates in 2018 is set forth for the Portfolio in the table below.

Qualified Interest Income and Qualified Short-Term Capital Gain (for non-U.S. resident shareholders only).  Under the American Jobs Creation Act of 2004, the amounts of ordinary dividends paid during the fiscal year ended December 31, 2018 considered to be derived from “qualified interest income,” as defined in Section 871(k)(1)(E) of the Code, and therefore designated as interest-related dividends, as defined in Section 871(k)(1)(C) of the Code are set forth in the table below. Further, the amounts of ordinary dividends paid during the fiscal year ended December 31, 2018 considered to be derived from “qualified short-term capital gain,” as defined in Section 871(k)(2)(D) of the Code, and therefore designated as qualified short-term gain dividends, as defined by Section 871(k)(2)(C) of the Code are also set forth in the table below.

	Dividend Received Deduction %		Qualified Dividend Income %		Qualified Interest Income (000s† )		Qualified Short-Term Capital Gain (000s†)
PIMCO Global Bond Opportunities Portfolio (Unhedged)		0.00%		1.18%	$	9,027	$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

Shareholders are advised to consult their own tax advisor with respect to the tax consequences of their investment in the Trust. In January 2019, you will be advised on IRS Form 1099-DIV as to the federal tax status of the dividends and distributions received by you in calendar year 2018.

ANNUAL REPORT DECEMBER 31, 2018 51

Management of the Trust

The charts below identify the Trustees and executive officers of the Trust. Unless otherwise indicated, the address of all persons below is 650 Newport Center Drive, Newport Beach, CA 92660.

The Portfolio’s Statement of Additional Information includes more information about the Trustees and Officers. To request a free copy, call PIMCO at (888) 87-PIMCO or visit the Portfolio’s website at www.pimco.com/pvit.

Name, Year of Birth and Position Held with Trust*	Term of Office and Length of Time Served†	Principal Occupation(s) During Past 5 Years	Number of Funds in Fund Complex Overseen by Trustee	Other Public Company and Investment Company Directorships Held by Trustee During the Past 5 Years
Interested Trustees1
Peter G. Strelow** (1970) Chairman of the Board and Trustee	05/2017 to present Chairman of the Board - 02/2019 to present	Managing Director and Co-Chief Operating Officer, PIMCO. President of the Trust, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Chief Administrative Officer, PIMCO.	153	Chairman and Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT.
Brent R. Harris** (1959) Trustee	08/1997 to present	Managing Director, PIMCO. Senior Vice President of the Trust, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Formerly, member of Executive Committee, PIMCO.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT; Director, StocksPLUS® Management, Inc; and member of Board of Governors, Investment Company Institute. Formerly, Chairman, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT.
Independent Trustees
George E. Borst (1948) Trustee	04/2015 to present	Executive Advisor, McKinsey & Company (since 10/14); Formerly, Executive Advisor, Toyota Financial Services (10/13-12/14); and CEO, Toyota Financial Services (1/01-9/13).	132	Trustee, PIMCO Funds and PIMCO ETF Trust; Director, MarineMax Inc.
Jennifer Holden Dunbar (1963) Trustee	04/2015 to present	Managing Director, Dunbar Partners, LLC (business consulting and investments). Formerly, Partner, Leonard Green & Partners, L.P.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT; Director, PS Business Parks; Director, Big 5 Sporting Goods Corporation.
Kym M. Hubbard (1957) Trustee	02/2017 to present	Formerly, Global Head of Investments, Chief Investment Officer and Treasurer, Ernst & Young.	132	Trustee, PIMCO Funds and PIMCO ETF Trust; Director, State Auto Financial Corporation.
Gary F. Kennedy (1955) Trustee	04/2015 to present	Formerly, Senior Vice President, General Counsel and Chief Compliance Officer, American Airlines and AMR Corporation (now American Airlines Group) (1/03-1/14).	132	Trustee, PIMCO Funds and PIMCO ETF Trust.
Peter B. McCarthy (1950) Trustee	04/2015 to present	Formerly, Assistant Secretary and Chief Financial Officer, United States Department of Treasury; Deputy Managing Director, Institute of International Finance.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Ronald C. Parker (1951) Lead Independent Trustee	07/2009 to present Lead Independent Trustee - 02/2017 to present	Director of Roseburg Forest Products Company. Formerly, Chairman of the Board, The Ford Family Foundation; and President, Chief Executive Officer, Hampton Affiliates (forestry products).	153	Lead Independent Trustee, PIMCO Funds and PIMCO ETF Trust; Trustee, PIMCO Equity Series and PIMCO Equity Series VIT.

* Unless otherwise noted, the information for the individuals listed is as of December 31, 2018.

** Effective February 13, 2019, Mr. Strelow became the Chairman of the Trust.

¹  Mr. Harris and Mr. Strelow are “interested persons” of the Trust (as that term is defined in the 1940 Act) because of their affiliations with PIMCO.

^†  Trustees serve until their successors are duly elected and qualified.

52 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

Executive Officers

Name, Year of Birth and Position Held with Trust	Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years*
Peter G. Strelow (1970) President	01/2015 to present	Managing Director and Co-Chief Operating Officer, PIMCO. President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Chief Administrative Officer, PIMCO.
Joshua D. Ratner (1976)** Chief Legal Officer	11/2018 to present Vice President - Senior Counsel and Secretary 11/2013 to 11/2018 Assistant Secretary 10/2007 to 01/2011	Executive Vice President and Deputy General Counsel, PIMCO. Chief Legal Officer, PIMCO Investments LLC. Chief Legal Officer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Jennifer E. Durham (1970) Chief Compliance Officer	07/2004 to present	Managing Director and Chief Compliance Officer, PIMCO. Chief Compliance Officer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Brent R. Harris (1959) Senior Vice President	01/2015 to present President 03/2009 to 01/2015	Managing Director, PIMCO. Senior Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Formerly, member of Executive Committee, PIMCO.
Ryan G. Leshaw (1980) Vice President, Senior Counsel and Secretary	11/2018 to present Assistant Secretary 05/2012 to 11/2018	Senior Vice President and Senior Counsel, PIMCO. Vice President, Senior Counsel and Secretary, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Assistant Secretary, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Associate, Willkie Farr & Gallagher LLP.
Wu-Kwan Kit (1981) Assistant Secretary	08/2017 to present	Senior Vice President and Senior Counsel, PIMCO. Assistant Secretary, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Vice President, Senior Counsel and Secretary, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Assistant General Counsel, VanEck Associates Corp.
Stacie D. Anctil (1969) Vice President	05/2015 to present Assistant Treasurer 11/2003 to 05/2015	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
William G. Galipeau (1974) Vice President	11/2013 to present	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Eric D. Johnson (1970) Vice President	05/2011 to present	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Henrik P. Larsen (1970) Vice President	02/1999 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Bijal Y. Parikh (1978) Vice President	02/2017 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Greggory S. Wolf (1970) Vice President	05/2011 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Trent W. Walker (1974) Treasurer	11/2013 to present	Executive Vice President, PIMCO. Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Erik C. Brown (1967)** Assistant Treasurer	02/2001 to present	Executive Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Colleen D. Miller (1980)** Assistant Treasurer	02/2017 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Christopher M. Morin (1980) Assistant Treasurer	08/2016 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Jason J. Nagler (1982)** Assistant Treasurer	05/2015 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.

* The term “PIMCO-Sponsored Closed-End Funds” as used herein includes: PIMCO California Municipal Income Fund, PIMCO California Municipal Income Fund II, PIMCO California Municipal Income Fund III, PIMCO Municipal Income Fund, PIMCO Municipal Income Fund II, PIMCO Municipal Income Fund III, PIMCO New York Municipal Income Fund, PIMCO New York Municipal Income Fund II, PIMCO New York Municipal Income Fund III, PCM Fund Inc., PIMCO Corporate & Income Opportunity Fund, PIMCO Corporate & Income Strategy Fund, PIMCO Dynamic Credit and Mortgage Income Fund, PIMCO Dynamic Income Fund, PIMCO Global StocksPLUS^® & Income Fund, PIMCO High Income Fund, PIMCO Income Opportunity Fund, PIMCO Income Strategy Fund, PIMCO Income Strategy Fund II and PIMCO Strategic Income Fund, Inc.; the term “PIMCO-Sponsored Interval Funds” as used herein includes: PIMCO Flexible Credit Income Fund and PIMCO Flexible Municipal Income Fund.

** The address of these officers is Pacific Investment Management Company LLC, 1633 Broadway, New York, New York 10019.

ANNUAL REPORT DECEMBER 31, 2018 53

Privacy Policy¹

(Unaudited)

The Trust^2,3 considers customer privacy to be a fundamental aspect of its relationships with shareholders and is committed to maintaining the confidentiality, integrity and security of its current, prospective and former shareholders’ non-public personal information. The Trust has developed policies that are designed to protect this confidentiality, while allowing shareholder needs to be served.

OBTAINING PERSONAL INFORMATION

In the course of providing shareholders with products and services, the Trust and certain service providers to the Trust, such as the Trust’s investment advisers or sub-advisers (“Advisers”), may obtain non-public personal information about shareholders, which may come from sources such as account applications and other forms, from other written, electronic or verbal correspondence, from shareholder transactions, from a shareholder’s brokerage or financial advisory firm, financial advisor or consultant, and/or from information captured on applicable websites.

RESPECTING YOUR PRIVACY

As a matter of policy, the Trust does not disclose any non-public personal information provided by shareholders or gathered by the Trust to non-affiliated third parties, except as required or permitted by law or as necessary for such third parties to perform their agreements with respect to the Trust. As is common in the industry, non-affiliated companies may from time to time be used to provide certain services, such as preparing and mailing prospectuses, reports, account statements and other information, conducting research on shareholder satisfaction and gathering shareholder proxies. The Trust or its affiliates may also retain non-affiliated companies to market the Trust’s shares or products which use the Trust’s shares and enter into joint marketing arrangements with them and other companies. These companies may have access to a shareholder’s personal and account information, but are permitted to use this information solely to provide the specific service or as otherwise permitted by law. In most cases, the shareholders will be clients of a third party, but the Trust may also provide a shareholder’s personal and account information to the shareholder’s respective brokerage or financial advisory firm and/or financial advisor or consultant.

SHARING INFORMATION WITH THIRD PARTIES

The Trust reserves the right to disclose or report personal or account information to non-affiliated third parties in limited circumstances where the Trust believes in good faith that disclosure is required under law, to cooperate with regulators or law enforcement authorities, to protect its rights or property, or upon reasonable request by any fund advised by PIMCO in which a shareholder has invested. In addition, the Trust may disclose information about a shareholder or a shareholder’s accounts to a non-affiliated third party at the shareholder’s request or with the consent of the shareholder.

SHARING INFORMATION WITH AFFILIATES

The Trust may share shareholder information with its affiliates in connection with servicing shareholders’ accounts, and subject to applicable law may provide shareholders with information about products and services that the Trust or its Advisers, distributors or their affiliates (“Service Affiliates”) believe may be of interest to such shareholders. The information that the Trust may share may include,

for example, a shareholder’s participation in the Trust or in other investment programs sponsored by a Service Affiliate, a shareholder’s ownership of certain types of accounts (such as IRAs), information about the Trust’s experiences or transactions with a shareholder, information captured on applicable websites, or other data about a shareholder’s accounts, subject to applicable law. The Trust’s Service Affiliates, in turn, are not permitted to share shareholder information with non-affiliated entities, except as required or permitted by law.

PROCEDURES TO SAFEGUARD PRIVATE INFORMATION

The Trust takes seriously the obligation to safeguard shareholder non-public personal information. In addition to this policy, the Trust has implemented procedures that are designed to restrict access to a shareholder’s non-public personal information to internal personnel who need to know that information to perform their jobs, such as servicing shareholder accounts or notifying shareholders of new products or services. Physical, electronic and procedural safeguards are in place to guard a shareholder’s non-public personal information.

INFORMATION COLLECTED FROM WEBSITES

Websites maintained by the Trust or its service providers may use a variety of technologies to collect information that help the Trust and its service providers understand how the website is used. Information collected from your web browser (including small files stored on your device that are commonly referred to as “cookies”) allow the websites to recognize your web browser and help to personalize and improve your user experience and enhance navigation of the website. In addition, the Trust or its Service Affiliates may use third parties to place advertisements for the Trust on other websites, including banner advertisements. Such third parties may collect anonymous information through the use of cookies or action tags (such as web beacons). The information these third parties collect is generally limited to technical and web navigation information, such as your IP address, web pages visited and browser type, and does not include personally identifiable information such as name, address, phone number or email address. If you are a registered user of the Trust’s website, the Trust or their service providers or third party firms engaged by the Trust or their service providers may collect or share information submitted by you, which may include personally identifiable information. This information can be useful to the Trust when assessing and offering services and website features. You can change your cookie preferences by changing the setting on your web browser to delete or reject cookies. If you delete or reject cookies, some website pages may not function properly. The Trust does not look for web browser “do not track” requests.

CHANGES TO THE PRIVACY POLICY

From time to time, the Trust may update or revise this privacy policy. If there are changes to the terms of this privacy policy, documents containing the revised policy on the relevant website will be updated.

¹ Amended as of February 15, 2017.

² PIMCO Investments LLC (“PI”) serves as the Trust’s distributor. This Privacy Policy applies to the activities of PI to the extent that PI regularly effects or engages in transactions with or for a Trust shareholder who is the record owner of such shares. For purposes of this Privacy Policy, references to “the Trust” shall include PI when acting in this capacity.

³ When distributing this Policy, the Trust may combine the distribution with any similar distribution of its investment adviser’s privacy policy. The distributed, combined policy may be written in the first person (i.e., by using “we” instead of “the Trust”).

54 PIMCO VARIABLE INSURANCE TRUST

Approval of Investment Advisory Contract and Other Agreements

(Unaudited)

Approval of Renewal of the Amended and Restated Investment Advisory Contract, Supervision and Administration Agreement and Amended and Restated Asset Allocation Sub-Advisory Agreement

At a meeting held on August 20-21, 2018, the Board of Trustees (the “Board”) of PIMCO Variable Insurance Trust (the “Trust”), including the Trustees who are not “interested persons” of the Trust under the Investment Company Act of 1940, as amended (the “Independent Trustees”), considered and unanimously approved the renewal of the Amended and Restated Investment Advisory Contract (the “Investment Advisory Contract”) between the Trust, on behalf of each of the Trust’s series (the “Portfolios”), and Pacific Investment Management Company LLC (“PIMCO”) for an additional one-year term through August 31, 2019. The Board also considered and unanimously approved the renewal of the Supervision and Administration Agreement (together with the Investment Advisory Contract, the “Agreements”) between the Trust, on behalf of the Portfolios, and PIMCO for an additional one-year term through August 31, 2019. In addition, the Board considered and unanimously approved the renewal of the Amended and Restated Asset Allocation Sub-Advisory Agreement (the “Asset Allocation Agreement”) between PIMCO, on behalf of PIMCO All Asset Portfolio and PIMCO All Asset All Authority Portfolio, each a series of the Trust, and Research Affiliates, LLC (“Research Affiliates”) for an additional one-year term through August 31, 2019.

The information, material factors and conclusions that formed the basis for the Board’s approvals are summarized below.

1. INFORMATION RECEIVED

(a) Materials Reviewed:  During the course of the past year, the Trustees received a wide variety of materials relating to the services provided by PIMCO and Research Affiliates to the Trust. At each of its quarterly meetings, the Board reviewed the Portfolios’ investment performance and a significant amount of information relating to Portfolio operations, including shareholder services, valuation and custody, the Portfolios’ compliance program and other information relating to the nature, extent and quality of services provided by PIMCO and Research Affiliates to the Trust and each of the Portfolios, as applicable. In considering whether to approve the renewal of the Agreements and the Asset Allocation Agreement, the Board reviewed additional information, including, but not limited to, comparative industry data with regard to investment performance, advisory and supervisory and administrative fees and expenses, financial information for PIMCO and, where relevant, Research Affiliates, information regarding the profitability to PIMCO of its relationship with the Portfolios, information about the personnel providing investment management services, other advisory services and supervisory and administrative services to the Portfolios, and information about the fees

charged and services provided to other clients with similar investment mandates as the Portfolios, where applicable. In addition, the Board reviewed materials provided by counsel to the Trust and the Independent Trustees, which included, among other things, memoranda outlining legal duties of the Board in considering the renewal of the Agreements and the Asset Allocation Agreement.

(b) Review Process:  In connection with considering the renewal of the Agreements and the Asset Allocation Agreement, the Board reviewed written materials prepared by PIMCO and, where applicable, Research Affiliates in response to requests from counsel to the Trust and the Independent Trustees encompassing a wide variety of topics. The Board requested and received assistance and advice regarding, among other things, applicable legal standards from counsel to the Trust and the Independent Trustees, and reviewed comparative fee and performance data prepared at the Board’s request by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company performance information and fee and expense data. The Board received information on matters related to the Agreements and the Asset Allocation Agreement and met both as a full Board and in a separate session of the Independent Trustees, without management present, at the August 20-21, 2018 meeting. The Independent Trustees also conducted in-person meetings with counsel to the Trust and the Independent Trustees, including one on July 18, 2018, to discuss the Lipper Report, as defined below, and certain aspects of the 2018 15(c) materials presented and other matters deemed relevant to their consideration of the renewal of the Agreements and the Asset Allocation Agreement. In connection with its review of the Agreements, the Board received comparative information on the performance and the fees and expenses of other peer group funds and share classes. In addition, the Independent Trustees requested and received supplemental information.

The approval determinations were made on the basis of each Trustee’s business judgment after consideration and evaluation of all the information presented. Individual Trustees may have given different weights to certain factors and assigned various degrees of materiality to information received in connection with the approval process. In deciding to approve the renewal of the Agreements and the Asset Allocation Agreement, the Board did not identify any single factor or particular information that, in isolation, was controlling. The discussion below is intended to summarize the broad factors and information that figured prominently in the Board’s consideration of the renewal of the Agreements and the Asset Allocation Agreement, but is not intended to summarize all of the factors considered by the Board.

2. NATURE, EXTENT AND QUALITY OF SERVICES

(a) PIMCO, Research Affiliates, their Personnel, and Resources:  The Board considered the depth and quality of PIMCO’s investment management process, including: the experience, capability and integrity

ANNUAL REPORT DECEMBER 31, 2018 55

Approval of Investment Advisory Contract and Other Agreements (Cont.)

of its senior management and other personnel; the overall financial strength and stability of its organization; and the ability of its organizational structure to address changes in the Portfolios’ asset levels. The Board also considered the various services in addition to portfolio management that PIMCO provides under the Investment Advisory Contract. The Board noted that PIMCO makes available to its investment professionals a variety of resources and systems relating to investment management, compliance, trading, performance and portfolio accounting. The Board also noted PIMCO’s commitment to enhancing and investing in its global infrastructure, technology capabilities, risk management processes and the specialized talent needed to stay at the forefront of the competitive investment management industry and to strengthen its ability to deliver services under the Agreements. The Board considered PIMCO’s policies, procedures and systems reasonably designed to assure compliance with applicable laws and regulations and its commitment to further developing and strengthening these programs, its oversight of matters that may involve conflicts of interest between the Portfolios’ investments and those of other accounts managed by PIMCO, and its efforts to keep the Trustees informed about matters relevant to the Portfolios and their shareholders. The Board also considered PIMCO’s continuous investment in new disciplines and talented personnel, which has enhanced PIMCO’s services to the Portfolios and has allowed PIMCO to introduce innovative new portfolios over time. In addition, the Board considered the nature and quality of services provided by PIMCO to the wholly-owned subsidiaries of certain applicable Portfolios.

The Trustees considered that PIMCO has continued to strengthen the process it uses to actively manage counterparty risk and to assess the financial stability of counterparties with which the Portfolios do business, to manage collateral and to protect Portfolios from an unforeseen deterioration in the creditworthiness of trading counterparties. The Trustees noted that, consistent with its fiduciary duty, PIMCO executes transactions through a competitive best execution process and uses only those counterparties that meet its stringent and monitored criteria. The Trustees considered that PIMCO’s collateral management team utilizes a counterparty risk system to analyze portfolio level exposure and collateral being exchanged with counterparties.

In addition, the Trustees considered new services and service enhancements that PIMCO has implemented since the Board renewed the Agreements in 2017, including, but not limited to upgrading the global network and infrastructure to support trading and risk management systems; enhancing and continuing to expand capabilities within the pre-trade compliance platform; enhancing flexible client reporting capabilities to support increased differentiation within local markets; developing new application and database frameworks to support new trading strategies; expanding proprietary applications

suites to enrich capabilities across Compliance, Analytics, Risk Management, Client Reporting, Attribution and Customer Relationship management; continuing investment in its enterprise risk management function, including PIMCO’s cybersecurity program and global business continuity functions; oversight by the Americas Fund Oversight Committee, which provides senior-level oversight and supervision focused on new and ongoing fund-related business opportunities; engaging a third party service provider to implement the SEC reporting modernization regime; expanding the Fund Treasurer’s Office; enhancing a proprietary application to provide portfolio managers with more timely and high quality income reporting; developing a global tax management application that will enable investment professionals to access foreign market and security tax information on a real-time basis; enhancing reporting of tax reporting for portfolio managers for income products with improved transparency on tax factors impacting income generation and dividend yield; upgrading a proprietary application to allow shareholder subscription and redemption data to pass to portfolio managers more quickly and efficiently; and continuing to expand the pricing portal and the proprietary performance reconciliation tool.

Similarly, the Board considered the asset allocation services provided by Research Affiliates to the PIMCO All Asset Portfolio and PIMCO All Asset All Authority Portfolio. The Board further considered PIMCO’s oversight of Research Affiliates in connection with Research Affiliates providing asset allocation services to the Asset Portfolio and All Asset All Authority Portfolio. The Board also considered the depth and quality of Research Affiliates’ investment management and research capabilities, the experience and capabilities of its portfolio management personnel and the overall financial strength of the organization.

Ultimately, the Board concluded that the nature, extent and quality of services provided or procured by PIMCO under the Agreements and provided by Research Affiliates under the Asset Allocation Agreement are likely to continue to benefit the Portfolios and their respective shareholders, as applicable.

(b) Other Services:  The Board also considered the nature, extent and quality of supervisory and administrative services provided by PIMCO to the Portfolios under the Supervision and Administration Agreement.

The Board considered the terms of the Supervision and Administration Agreement, under which the Trust pays for the supervisory and administrative services provided pursuant to that agreement under what is essentially an all-in fee structure (the “unified fee”). In return, PIMCO provides or procures certain supervisory and administrative services and bears the costs of various third party services required by the Portfolios, including audit, custodial, portfolio accounting, legal, transfer agency, sub-accounting and printing costs. The Board noted that the scope and complexity, as well as the costs, of the supervisory

56 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

and administrative services provided by PIMCO under the Supervision and Administration Agreement continue to increase. The Board considered PIMCO’s provision of supervisory and administrative services and its supervision of the Trust’s third party service providers to assure that these service providers continue to provide a high level of service relative to alternatives available in the market.

Ultimately, the Board concluded that the nature, extent and quality of the services provided by PIMCO has benefited, and will likely continue to benefit, the Portfolios and their shareholders.

3. INVESTMENT PERFORMANCE

The Board reviewed information from PIMCO concerning the Portfolios’ performance, as available, over short- and long-term periods ended March 31, 2018 and other performance data, as available, over short- and long-term periods ended June 30, 2018 (the “PIMCO Report”) and from Broadridge concerning the Portfolios’ performance, as available, over short- and long-term periods ended March 31, 2018 (the “Lipper Report”).

The Board considered information regarding both the short- and long-term investment performance of each Portfolio relative to its peer group and relevant benchmark index as provided to the Board in advance of each of its quarterly meetings throughout the year, including the PIMCO Report and Lipper Report, which were provided in advance of the August 20-21, 2018 meeting. The Trustees noted that many of the Portfolios outperformed their respective Lipper medians on a net-of-fees basis over the three-, five- and ten-year periods ended March 31, 2018. The Board also noted that, as of March 31, 2018, the Administrative Class of 72%, 35% and 73% of the Portfolios outperformed their respective Lipper category median on a net-of-fees basis over the three-, five- and ten-year periods, respectively. The Trustees considered that other classes of each Portfolio would have substantially similar performance to that of the Administrative Class of the relevant Portfolio on a relative basis because all of the classes are invested in the same portfolio of investments and that differences in performance among classes could principally be attributed to differences in the supervisory and administrative fees and distribution and servicing expenses of each class. The Board also considered that the investment objectives of certain of the Portfolios may not always be identical to those of the other funds in their respective peer groups and that the Lipper categories do not: separate funds based upon maturity or duration; account for the applicable Portfolios’ hedging strategies; distinguish between enhanced index and actively managed equity strategies; include as many subsets as the Portfolios offer (i.e., Portfolios may be placed in a “catch-all” Lipper category to which they do not properly belong); or account for certain fee waivers. The Board noted that, due to these differences, performance comparisons between certain of the Portfolios and their so-called peers may not be

particularly relevant to the consideration of Portfolio performance but found the comparative information supported its overall evaluation.

The Board noted that performance for a majority of the Portfolios has been mixed compared to their respective benchmark indexes over the five-year period ended March 31, 2018. The Board noted that, as of March 31, 2018, 70%, 23% and 92% of the Trust’s assets (based on Administrative Class performance) outperformed their respective benchmarks on a net-of-fees basis over the three-, five- and ten-year periods, respectively. The Board also discussed actions that have been taken by PIMCO to attempt to improve performance and took note of PIMCO’s plans to monitor performance going forward.

The Board considered PIMCO’s discussion of the intensive nature of managing bond funds, noting that it requires the management of a number of factors, including: varying maturities; prepayments; collateral management; counterparty management; pay-downs; credit and corporate events; workouts; derivatives; net new issuance in the bond market; and decreased market maker inventory levels. The Board noted that in addition to managing these factors, PIMCO must also balance risk controls and strategic positions in each portfolio it manages, including the Portfolios. Despite these challenges, the Board noted PIMCO’s ability to generate non-market correlated excess performance for its clients over time, including the Trust.

The Board ultimately concluded, within the context of all of its considerations in connection with the Agreements, that PIMCO’s performance record and process in managing the Portfolios indicates that its continued management is likely to benefit the Portfolios and their shareholders, and merits the approval of the renewal of the Agreements.

4. ADVISORY FEES, SUPERVISORY AND ADMINISTRATIVE FEES AND TOTAL EXPENSES

The Board considered that PIMCO seeks to price new funds and classes to scale. PIMCO reported to the Board that, in proposing fees for any Portfolio or class of shares, it considers a number of factors, including, but not limited to, the type and complexity of the services provided, the cost of providing services, the risk assumed by PIMCO in the development of products and the provision of services and the competitive marketplace for financial products. Fees charged to or proposed for different Portfolios for advisory services and supervisory and administrative services may vary in light of these various factors. The Board considered that portfolio pricing generally is not driven by comparison to passively-managed products.

In addition, PIMCO reported to the Board that it periodically reviews the fees charged to the Portfolios. The Board noted that, based upon this review, PIMCO may propose advisory fee or supervisory and administrative fee changes where (i) a Portfolio’s long-term performance warrants additional consideration; (ii) there is a notable aid to market

ANNUAL REPORT DECEMBER 31, 2018 57

Approval of Investment Advisory Contract and Other Agreements (Cont.)

position; (iii) a Portfolio’s fee does not reflect the current level of supervision or administrative fees provided to the Portfolio; or (iv) PIMCO would like to change a Portfolio’s overall strategic positioning.

The Board reviewed the advisory fees, supervisory and administrative fees and total expenses of the Portfolios (each as a percentage of average net assets) and compared such amounts with the average and median fee and expense levels of other similar funds. The Board also reviewed information relating to the sub-advisory fees paid to Research Affiliates with respect to applicable Portfolios, taking into account that PIMCO compensates Research Affiliates from the advisory fees paid by such Portfolios to PIMCO. With respect to advisory fees, the Board reviewed data from Broadridge that compared the average and median advisory fees of other funds in a “Peer Group” of comparable funds, as well as the universe of other similar funds. The Board noted that a number of Portfolios have total expense ratios that fall below the average and median expense ratios in their Peer Group and Lipper universe. In addition, the Board considered fee waivers in place for certain of the Portfolios and also noted the fee waivers in place with respect to the advisory fee and supervisory and administrative fee that might result from investments by applicable Portfolios in their respective wholly-owned subsidiaries. The Board also considered that PIMCO reviews the Portfolios’ fee levels and carefully considers changes where appropriate.

The Board also reviewed data comparing the Portfolios’ advisory fees to the standard and negotiated fee rates PIMCO charges to separate accounts, collective investment trusts and sub-advised clients with similar investment strategies. In cases where the fees for other clients were lower than those charged to the Portfolios, the Trustees noted that the differences in fees were attributable to various factors, including, but not limited to, differences in the advisory and other services provided by PIMCO to the Portfolios, differences in the number or extent of the services provided by PIMCO to the Portfolios, the manner in which similar portfolios may be managed, different requirements with respect to liquidity management and the implementation of other regulatory requirements, and the fact that separate accounts may have other contractual arrangements or arrangements across PIMCO strategies that justify different levels of fees. The Board considered that, with respect to collective investment trusts, PIMCO performs fewer or less extensive services because collective investment trusts are generally exempt from SEC regulation; investors in a collective investment trust may receive shareholder services from a trustee bank, rather than PIMCO; collective investment trusts have less regulatory disclosure; and the management structure of collective investment trusts differs from that of funds. The Trustees also considered that PIMCO faces increased entrepreneurial, legal and regulatory risk in sponsoring and managing mutual funds and ETFs as compared to separate accounts, external sub-advised funds or other investment products.

Regarding advisory fees charged by PIMCO in its capacity as sub-adviser to third party/unaffiliated funds, the Trustees took into account that such fees may be lower than the fees charged by PIMCO to serve as adviser to the Portfolios. The Trustees also took into account that there are various reasons for any such differences in fees, including, but not limited to, the fact that PIMCO may be subject to varying levels of entrepreneurial risk and regulatory requirements, differing legal liabilities on a contract-by-contract basis and different servicing requirements when PIMCO does not serve as the sponsor of a fund and is not principally responsible for all aspects of a fund’s investment program and operations as compared to when PIMCO serves as investment adviser and sponsor.

The Board considered the Portfolios’ supervisory and administrative fees, comparing them to similar funds in the report supplied by Broadridge. The Board also considered that as the Portfolios’ business has become increasingly complex and the number of Portfolios has grown over time, PIMCO has provided an increasingly broad array of fund supervisory and administrative functions. In addition, the Board considered the Trust’s unified fee structure, under which the Trust pays for the supervisory and administrative services it requires for one set fee. In return for this unified fee, PIMCO provides or procures supervisory and administrative services and bears the costs of various third party services required by the Portfolios, including audit, custodial, portfolio accounting, legal, transfer agency, sub-accounting and printing costs. The Board further considered that many other funds pay for comparable services separately, and thus it is difficult to directly compare the Trust’s unified supervisory and administrative fees with the fees paid by other funds for administrative services alone. The Board also considered that the unified supervisory and administrative fee leads to Portfolio fees that are fixed over the contract period, rather than variable. The Board noted that, although the unified fee structure does not have breakpoints, it implicitly reflects economies of scale by fixing the absolute level of Portfolio fees at competitive levels over the contract period even if the Portfolios’ operating costs rise when assets remain flat or decrease. Other factors the Board considered in assessing the unified fee include PIMCO’s approach of pricing Portfolios to scale at inception and reinvesting in other important areas of the business that support the Portfolios. The Board considered that the Portfolios’ unified fee structure meant that fees were not impacted by recent outflows in certain Portfolios, unlike funds without a unified fee structure, which may see increased expense ratios when fixed costs, such as service provider costs, are passed through to a smaller asset base. The Board considered historical advisory and supervisory and administrative fee reductions implemented for different Portfolios and classes, noting that the unified fee can be increased or decreased in subsequent contractual periods and is subject to the periodic reviews discussed above. The Board noted that, with few exceptions, PIMCO

58 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

has generally maintained Portfolio fees at the same level as implemented when the unified fee was adopted, and has reduced fees for a number of Portfolios in prior years. The Board concluded that the Portfolios’ supervisory and administrative fees were reasonable in relation to the value of the services provided, including the services provided to different classes of shareholders, and that the expenses assumed contractually by PIMCO under the Supervision and Administration Agreement represent, in effect, a cap on overall Portfolio fees during the contractual period, which is beneficial to the Portfolios and their shareholders.

The Board considered the Portfolios’ total expenses and discussed with PIMCO those Portfolios and/or classes of Portfolios that had above median total expenses. The Board noted that many of the Portfolios are unique products that have few peers, if any, and cannot easily be grouped with comparable funds. Upon comparing the Portfolios’ total expenses to other funds in the “Peer Groups” provided by Broadridge, the Board found total expenses of each Portfolio to be reasonable.

The Trustees also considered the advisory fees charged to the Portfolios that operate as funds of funds (the “Funds of Funds”) and the advisory services provided in exchange for such fees. The Trustees determined that such services were in addition to the advisory services provided to the underlying funds in which the Funds of Funds may invest and, therefore, such services were not duplicative of the advisory services provided to the underlying funds. The Board also considered the various fee waiver agreements in place for the Funds of Funds. The Board noted that PIMCO is continuing waivers for these Funds of Funds, as well as for certain other Portfolios of the Trust.

Based on the information presented by PIMCO, Research Affiliates and Broadridge, members of the Board determined, in the exercise of their business judgment, that the level of the advisory fees and supervisory and administrative fees charged by PIMCO under the Agreements, as well as the total expenses of each Portfolio, after the proposals to decrease the management fee, are reasonable.

5. ADVISER COSTS, LEVEL OF PROFITS AND ECONOMIES OF SCALE

The Board reviewed information regarding PIMCO’s costs of providing services to the Funds as a whole, as well as the resulting level of profits to PIMCO under both the adjusted asset profitability method and the profit and loss profitability method, which were each utilized to calculate profitability. To the extent applicable, the Board also reviewed information regarding the portion of a Portfolio’s advisory fee retained by PIMCO, following the payment of sub-advisory fees to Research Affiliates, with respect to the Portfolio. Additionally, the Board noted that profit margins with respect to the Trust shows that the Trust is profitable, although less so than PIMCO Funds due to payments made

by PIMCO to participating insurance companies. The Board further noted PIMCO’s engagement of a third party to review and to make recommendations regarding PIMCO’s processes supporting its profitability estimation materials. The Board also noted that it had received information regarding the structure and manner in which PIMCO’s investment professionals were compensated, and PIMCO’s view of the relationship of such compensation to the attraction and retention of quality personnel. The Board considered PIMCO’s need to invest in global infrastructure, technology capabilities, risk management processes and qualified personnel to reinforce and offer new services and to accommodate changing regulatory requirements.

With respect to potential economies of scale, the Board noted that PIMCO shares the benefits of economies of scale with the Portfolios and their shareholders in a number of ways, including investing in portfolio and trade operations management, firm technology, middle and back office support, legal and compliance, and fund administration logistics, senior management supervision, governance and oversight of those services, and through fee reductions or waivers, the pricing of Portfolios to scale from inception, and the enhancement of services provided to the Portfolios in return for fees paid. The Board reviewed the history of the Portfolios’ fee structure. The Board considered that the Portfolios’ unified fee rates had been set competitively and/or priced to scale from inception, had been held steady during the contractual period at that scaled competitive rate for most Portfolios as assets grew, or as assets declined in the case of some Portfolios, and continued to be competitive compared with peers. The Board also considered that the unified fee is a transparent means of informing a Portfolio’s shareholders of the fees associated with the Portfolio, and that the Portfolio bears certain expenses that are not covered by the advisory fee or the unified fee. The Board further considered the challenges that arise when managing large funds, which can result in certain “diseconomies” of scale and noted that PIMCO has continued to reinvest in many areas of the business to support the Portfolios.

The Trustees considered that the unified fee has provided inherent economies of scale because a Portfolio maintains competitive fixed fees over the annual contract period even if the particular Portfolio’s assets decline and/or operating costs rise. The Trustees further considered that, in contrast, breakpoints may be a proxy for charging higher fees on lower asset levels and that when a fund’s assets decline, breakpoints may reverse, which causes expense ratios to increase. The Trustees also considered that, unlike the Portfolios’ unified fee structure, funds with “pass through” administrative fee structures may experience increased expense ratios when fixed dollar fees are charged against declining fund assets. The Trustees also considered that the unified fee protects shareholders from a rise in operating costs that may result from, among other things, PIMCO’s investments in various business enhancements and infrastructure, including those referenced above. The Trustees noted that PIMCO’s investments in these areas are extensive.

ANNUAL REPORT DECEMBER 31, 2018 59

Approval of Investment Advisory Contract and Other Agreements (Cont.)

(Unaudited)

The Board concluded that the Portfolios’ cost structures were reasonable and that PIMCO is appropriately sharing economies of scale, if any, through the Portfolios’ unified fee structure, generally pricing Portfolios to scale at inception and reinvesting in its business to provide enhanced and expanded services to the Portfolios and their shareholders.

6. ANCILLARY BENEFITS

The Board considered other benefits realized by PIMCO and its affiliates as a result of PIMCO’s relationship with the Trust. Such benefits may include possible ancillary benefits to PIMCO’s institutional investment management business due to the reputation and market penetration of the Trust or third party service providers’ relationship-level fee concessions, which decrease fees paid by PIMCO. The Board also considered that affiliates of PIMCO provide distribution and/or shareholder services to the Portfolios and their shareholders, for which they may be compensated through distribution and servicing fees paid pursuant to the Portfolios’ Rule 12b-1 plans or otherwise. The Board reviewed PIMCO’s soft dollar policies and procedures, noting that while PIMCO has the authority to receive the benefit of research provided by broker-dealers executing portfolio transactions on behalf of the Portfolios, it has adopted a policy not to enter into contractual soft dollar arrangements.

7. CONCLUSIONS

Based on their review, including their comprehensive consideration and evaluation of each of the broad factors and information summarized above, the Independent Trustees and the Board as a whole concluded that the nature, extent and quality of the services rendered to the Portfolios by PIMCO and Research Affiliates supported the renewal of the Agreements and the Asset Allocation Agreement. The Independent Trustees and the Board as a whole concluded that the Agreements and the Asset Allocation Agreement continued to be fair and reasonable to the Portfolios and their shareholders, that the Portfolios’ shareholders received reasonable value in return for the fees paid to PIMCO by the Portfolios under the Agreements and the fees paid to Research Affiliates by PIMCO under the Asset Allocation Agreement, and that the renewal of the Agreements and the Asset Allocation Agreement was in the best interests of the Portfolios and their shareholders.

60 PIMCO VARIABLE INSURANCE TRUST

General Information

Investment Adviser and Administrator

Pacific Investment Management Company LLC

650 Newport Center Drive

Newport Beach, CA 92660

Distributor

PIMCO Investments LLC

1633 Broadway

New York, NY 10019

Custodian

State Street Bank and Trust Company

801 Pennsylvania Avenue

Kansas City, MO 64105

Transfer Agent

DST Asset Manager Solutions, Inc.

430 W 7th Street STE 219024

Kansas City, MO 64105-1407

Legal Counsel

Dechert LLP

1900 K Street, N.W.

Washington, D.C. 20006

Independent Registered Public Accounting Firm

PricewaterhouseCoopers LLP

1100 Walnut Street, Suite 1300

Kansas City, MO 64106

This report is submitted for the general information of the shareholders of the PIMCO Variable Insurance Trust.

pimco.com/pvit

PVIT08AR_123118

PIMCO VARIABLE INSURANCE TRUST

Annual Report

December 31, 2018

PIMCO Global Core Bond (Hedged) Portfolio

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, you may not be receiving paper copies of the Portfolio’s shareholder reports from the insurance company that offers your contract unless you specifically request paper copies from the insurance company or from your financial intermediary. Instead, the shareholder reports will be made available on a website, and the insurance company will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the insurance company electronically by following the instructions provided by the insurance company.

You may elect to receive all future reports in paper free of charge from the insurance company. You should contact the insurance company if you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all portfolio companies available under your contract at the insurance company.

Table of Contents

	Page
Chairman’s Letter		2
Important Information About the PIMCO Global Core Bond (Hedged) Portfolio		4
Portfolio Summary		6
Expense Example		7
Financial Highlights		8
Statement of Assets and Liabilities		10
Statement of Operations		11
Statements of Changes in Net Assets		12
Schedule of Investments		13
Notes to Financial Statements		29
Report of Independent Registered Public Accounting Firm		48
Glossary		49
Federal Income Tax Information		50
Management of the Trust		51
Privacy Policy		53
Approval of Investment Advisory Contract and Other Agreements		54

This material is authorized for use only when preceded or accompanied by the current PIMCO Variable Insurance Trust (the “Trust”) prospectus for the Portfolio. (The variable product prospectus may be obtained by contacting your Investment Consultant.)

Chairman’s Letter

Dear PIMCO Variable Insurance Trust Shareholder,

Following this letter is the PIMCO Variable Insurance Trust Annual Report, which covers the 12-month reporting period ended December 31, 2018. On the subsequent pages you will find specific details regarding investment results and discussion of the factors that most affected performance during the reporting period.

For the 12-month reporting period ended December 31, 2018

The U.S. economy continued to expand during the reporting period. Looking back, U.S. gross domestic product (“GDP”) grew at an annual pace of 2.2% during the first quarter of 2018. During the second quarter of 2018, GDP growth rose to an annual pace of 4.2%, the strongest since the third quarter of 2014. GDP then expanded at an annual pace of 3.4% during the third quarter of the year. Finally, the Commerce Department’s initial reading for fourth-quarter 2018 GDP has been delayed due to the partial government shutdown.

The Federal Reserve (the “Fed”) continued to normalize monetary policy during the reporting period. During its meetings that concluded in March, June, September and December 2018, the Fed raised the federal funds rate in 0.25% increments. The Fed’s December rate hike pushed the federal funds rate to a range between 2.25% and 2.50%. In addition, the Fed continued to reduce its balance sheet during the reporting period.

Economic activity outside the U.S. initially accelerated during the reporting period, but moderated as it progressed. Against this backdrop, the European Central Bank (the “ECB”) and the Bank of Japan largely maintained their highly accommodative monetary policies, while other central banks took a more hawkish stance. The Bank of England raised rates at its meeting in August 2018 and the Bank of Canada raised rates twice during the reporting period. Meanwhile, the ECB ended its quantitative easing program in December 2018, but indicated that it does not expect to raise interest rates “at least through the summer of 2019.”

The U.S. Treasury yield curve flattened during the reporting period as short-term rates moved up more than longer-term rates. In our view, the increase in rates at the short end of the yield curve was mostly due to Fed interest rate increases. The yield on the benchmark 10-year U.S. Treasury note was 2.69% at the end of the reporting period, up from 2.40% on December 31, 2017. U.S. Treasuries, as measured by the Bloomberg Barclays U.S. Treasury Index, returned 0.86% over the 12 months ended December 31, 2018. Meanwhile, the Bloomberg Barclays U.S. Aggregate Bond Index, a widely used index of U.S. investment grade bonds, returned 0.01% over the period. Riskier fixed income asset classes, including high yield corporate bonds and emerging market debt, generated weak results versus the broad U.S. market. The ICE BofAML U.S. High Yield Index returned -2.27% over the reporting period, whereas emerging market external debt, as represented by the JPMorgan Emerging Markets Bond Index (EMBI) Global, returned -4.61% over the reporting period. Emerging market local bonds, as represented by the JPMorgan Government Bond Index-Emerging Markets Global Diversified Index (Unhedged), returned -6.21% over the period.

Global equities produced poor results during the reporting period. U.S. equities moved sharply higher over the first nine months of the period. We believe this rally was driven by a number of factors, including corporate profits that often exceeded expectations. However, U.S. equities fell sharply during the fourth quarter of 2018. We believe this was triggered by a number of factors, including signs of moderating global growth, concerns over future Fed rate hikes, the ongoing trade dispute between the U.S. and China and the partial U.S. government shutdown. All told, U.S. equities, as represented by the S&P 500 Index, returned -4.38% during the reporting period. Elsewhere, emerging market equities, as measured by the MSCI Emerging Markets Index, returned -14.58% during the reporting period, whereas global equities, as represented by the MSCI World Index, returned -8.71%. Elsewhere, Japanese equities, as represented by the Nikkei 225 Index (in JPY), returned -10.39% during the reporting period and European equities, as represented by the MSCI Europe Index (in EUR), returned -10.57%.

Commodity prices fluctuated and generally declined during the reporting period. When the reporting period began, West Texas crude oil was approximately $65 a barrel, but by the end it was roughly $45 a barrel. This was driven in

2 PIMCO VARIABLE INSURANCE TRUST

part by increased supply and declining global demand. Elsewhere, gold and copper prices also moved lower during the reporting period.

Finally, during the reporting period the foreign exchange markets experienced periods of volatility, due in part to signs of decoupling economic growth and central bank policies, along with a number of geopolitical events. The U.S. dollar produced mixed results against other major currencies during the reporting period. For example, the U.S. dollar appreciated 4.71% and 5.90% versus the euro and the British pound, respectively, whereas the U.S. dollar depreciated 2.66% versus the yen during the reporting period.

Thank you for the assets you have placed with us. We deeply value your trust, and we will continue to work diligently to meet your broad investment needs.

Sincerely,     Brent R. Harris Chairman of the Board,
PIMCO Variable Insurance Trust  

Past performance is no guarantee of future results. Unless otherwise noted, index returns reflect the reinvestment of income distributions and capital gains, if any, but do not reflect fees, brokerage commissions or other expenses of investing. It is not possible to invest directly in an unmanaged index.

ANNUAL REPORT DECEMBER 31, 2018 3

Important Information About the PIMCO Global Core Bond (Hedged) Portfolio

PIMCO Variable Insurance Trust (the “Trust”) is an open-end management investment company that includes the PIMCO Global Core Bond (Hedged) Portfolio (the “Portfolio”). The Portfolio is only available as a funding vehicle under variable life insurance policies or variable annuity contracts issued by insurance companies (“Variable Contracts”). Individuals may not purchase shares of the Portfolio directly. Shares of the Portfolio also may be sold to qualified pension and retirement plans outside of the separate account context.

We believe that bond funds have an important role to play in a well- diversified investment portfolio. It is important to note, however, that in an environment where interest rates may trend upward, rising rates would negatively impact the performance of most bond funds, and fixed income securities and other instruments held by the Portfolio are likely to decrease in value. A wide variety of factors can cause interest rates to rise (e.g., central bank monetary policies, inflation rates, general economic conditions, etc.). In addition, changes in interest rates can be sudden and unpredictable, and there is no guarantee that management will anticipate such movement accurately. The Portfolio may lose money as a result of movements in interest rates.

As of the date of this report, interest rates in the U.S. and many parts of the world, including certain European countries, are at or near historically low levels. Thus, the Portfolio currently faces a heightened level of interest rate risk, especially since the Fed has ended its quantitative easing program and has begun, and may continue, to raise interest rates. To the extent the Fed continues to raise interest rates, there is a risk that rates across the financial system may rise. Further, while bond markets have steadily grown over the past three decades, dealer inventories of corporate bonds are near historic lows in relation to market size. As a result, there has been a significant reduction in the ability of dealers to “make markets.”

Bond funds and individual bonds with a longer duration (a measure used to determine the sensitivity of a security’s price to changes in interest rates) tend to be more sensitive to changes in interest rates, usually making them more volatile than securities or funds with shorter durations. All of the factors mentioned above, individually or collectively, could lead to increased volatility and/or lower liquidity in the fixed income markets or negatively impact the Portfolio’s performance or cause the Portfolio to incur losses. As a result, the Portfolio may experience increased shareholder redemptions, which,

among other things, could further reduce the net assets of the Portfolio.

The Portfolio may be subject to various risks as described in the Portfolio’s prospectus and in the Principal Risks in the Notes to Financial Statements.

The geographical classification of foreign (non-U.S.) securities in this report are classified by the country of incorporation of a holding. In certain instances, a security’s country of incorporation may be different from its country of economic exposure.

The United States presidential administration’s enforcement of tariffs on goods from other countries, with a focus on China, has contributed to international trade tensions and may impact portfolio securities.

The United Kingdom’s decision to leave the European Union may impact Portfolio returns. This decision may cause substantial volatility in foreign exchange markets, lead to weakness in the exchange rate of the British pound, result in a sustained period of market uncertainty, and destabilize some or all of the other European Union member countries and/or the Eurozone.

On the Portfolio Summary page in this Shareholder Report, the Average Annual Total Return table and Cumulative Returns chart measure performance assuming that any dividend and capital gain distributions were reinvested. The Cumulative Returns chart reflects only Administrative Class performance. Performance may vary by share class based on each class’s expense ratios. The Portfolio measures its performance against at least one broad-based securities market index (“benchmark index”). The benchmark index does not take into account fees, expenses, or taxes. The Portfolio’s past performance, before and after taxes, is not necessarily an indication of how the Portfolio will perform in the future. There is no assurance that the Portfolio, even if the Portfolio has experienced high or unusual performance for one or more periods, will experience similar levels of performance in the future. High performance is defined as a significant increase in either 1) the Portfolio’s total return in excess of that of the Portfolio’s benchmark between reporting periods or 2) the Portfolio’s total return in excess of the Portfolio’s historical returns between reporting periods. Unusual performance is defined as a significant change in the Portfolio’s performance as compared to one or more previous reporting periods.

The following table discloses the inception dates of the Portfolio and its respective share classes along with the Portfolio’s diversification status as of period end:

Portfolio Name	Portfolio Inception		Institutional Class		Administrative Class		Advisor Class		Diversification Status
PIMCO Global Core Bond (Hedged) Portfolio		05/02/11		—		05/02/11		—		Diversified

4 PIMCO VARIABLE INSURANCE TRUST

An investment in the Portfolio is not a bank deposit and is not guaranteed or insured by the Federal Deposit Insurance Corporation (“FDIC”) or any other government agency. It is possible to lose money on investments in the Portfolio.

The Trustees are responsible generally for overseeing the management of the Trust. The Trustees authorize the Trust to enter into service agreements with the Adviser, the Distributor, the Administrator and other service providers in order to provide, and in some cases authorize service providers to procure through other parties, necessary or desirable services on behalf of the Trust and the Portfolio. Shareholders are not parties to or third-party beneficiaries of such service agreements. Neither this Portfolio’s prospectus nor summary prospectus, the Trust’s Statement of Additional Information (“SAI”), any contracts filed as exhibits to the Trust’s registration statement, nor any other communications, disclosure documents or regulatory filings (including this report) from or on behalf of the Trust or the Portfolio creates a contract between or among any shareholder of the Portfolio, on the one hand, and the Trust, the Portfolio, a service provider to the Trust or the Portfolio, and/or the Trustees or officers of the Trust, on the other hand. The Trustees (or the Trust and its officers, service providers or other delegates acting under authority of the Trustees) may amend the most recent prospectus or use a new prospectus, summary prospectus or SAI with respect to the Portfolio or the Trust, and/or amend, file and/or issue any other communications, disclosure documents or regulatory filings, and may amend or enter into any contracts to which the Trust or the Portfolio is a party, and interpret the investment objective(s), policies, restrictions and contractual provisions applicable to the Portfolio, without shareholder input or approval, except in circumstances in which shareholder approval is specifically required by law (such as changes to fundamental investment policies) or where a shareholder approval requirement is specifically disclosed in the Trust’s then-current prospectus or SAI.

PIMCO has adopted written proxy voting policies and procedures (“Proxy Policy”) as required by Rule 206(4)-6 under the Investment

Advisers Act of 1940, as amended. The Proxy Policy has been adopted by the Trust as the policies and procedures that PIMCO will use when voting proxies on behalf of the Portfolio. A description of the policies and procedures that PIMCO uses to vote proxies relating to portfolio securities of the Portfolio, and information about how the Portfolio voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, are available without charge, upon request, by calling the Trust at (888) 87-PIMCO, on the Portfolio’s website at www.pimco.com/pvit, and on the Securities and Exchange Commission’s (“SEC”) website at www.sec.gov.

The Trust files a complete schedule of the Portfolio’s holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. A copy of the Portfolio’s Form N-Q is available on the SEC’s website at www.sec.gov. A copy of the Portfolio’s Form N-Q is also available without charge, upon request, by calling the Trust at (888) 87-PIMCO and on the Portfolio’s website at www.pimco.com/pvit.

The SEC adopted a rule that, beginning in 2021, generally will allow shareholder reports to be delivered to investors by providing access to such reports online free of charge and by mailing a notice that the report is electronically available. Pursuant to the rule, investors may still elect to receive a complete shareholder report in the mail. Instructions for electing to receive paper copies of the Portfolio’s shareholder reports going forward may be found on the front cover of this report.

The SEC adopted amendments to certain disclosure requirements relating to open-end investment companies’ liquidity risk management programs. Effective December 1, 2019, large fund complexes will be required to include in their shareholder reports a discussion of their liquidity risk management programs’ operations over the past year.

ANNUAL REPORT DECEMBER 31, 2018 5

PIMCO Global Core Bond (Hedged) Portfolio

Cumulative Returns Through December 31, 2018

$10,000 invested at the end of the month when the Portfolio’s Administrative Class commenced operations.

Geographic Breakdown as of 12/31/2018^†§

United States‡	48.9%
United Kingdom	8.0%
Canada	4.3%
Japan	3.9%
Sweden	3.3%
Netherlands	3.0%
Cayman Islands	2.7%
France	2.7%
Denmark	2.2%
Spain	1.9%
Saudi Arabia	1.6%
Italy	1.4%
Qatar	1.0%
Others	5.2%

^†  % of Investments, at value.

^§  Geographic Breakdown and % of investments exclude securities sold short, financial derivative instruments and short-term instruments, if any.

^‡  Includes Central Funds Used for Cash Management Purposes.

Average Annual Total Return for the period ended December 31, 2018
		1 Year		5 Years		Inception≈
	PIMCO Global Core Bond (Hedged) Portfolio Administrative Class		1.05%		1.03%		0.92%
	Bloomberg Barclays Global Aggregate (USD Hedged) Index±		1.76%		3.44%		3.57%¨

All Portfolio returns are net of fees and expenses.

^≈ For class inception dates please refer to the Important Information.

^¨ Average annual total return since 05/02/2011.

^± Bloomberg Barclays Global Aggregate (USD Hedged) Index provides a broad-based measure of the global investment-grade fixed income markets. The three major components of this index are the U.S. Aggregate, the Pan-European Aggregate, and the Asian-Pacific Aggregate Indices. The index also includes Eurodollar and Euro-Yen corporate bonds, Canadian Government securities, and USD investment grade 144A securities.

It is not possible to invest directly in an unmanaged index.

Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. The Portfolio’s performance does not reflect the deduction of additional charges and expenses imposed in connection with investing in Variable Contracts, which will reduce returns. Differences in the Portfolio’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the prices of individual positions (which may be sourced from different pricing vendors or other sources) used by the Portfolio and the index. For performance current to the most recent month-end, visit www.pimco.com/pvit or via (888) 87-PIMCO.

The Portfolio’s total annual operating expense ratio in effect as of period end was 0.76% for Administrative Class shares. Details regarding any changes to the Portfolio’s operating expenses, subsequent to period end, can be found in the Portfolio’s current prospectus, as supplemented.

Investment Objective and Strategy Overview

PIMCO Global Core Bond (Hedged) Portfolio seeks total return which exceeds that of its benchmark by investing under normal circumstances at least 80% of its assets in Fixed Income Instruments that are economically tied to at least three countries (one of which may be the United States), which may be represented by forwards or derivatives such as options, futures contracts or swap agreements. “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. Portfolio strategies may change from time to time. Please refer to the Portfolio’s current prospectus for more information regarding the Portfolio’s strategy.

Portfolio Insights

The following affected performance during the reporting period:

» U.S. interest rate strategies, particularly a combination of curve positioning and yield advantage, contributed to performance, as rates rose across the yield curve.

» Overweight exposure to German and core eurozone duration contributed to performance relative to the benchmark.

» Underweight exposure to investment grade corporate credit contributed to relative performance, as spreads widened.

» Long exposure to a basket of emerging market currencies detracted from relative performance, as the MSCI Emerging Markets Currency index, which generally captures the overall performance of emerging market currencies, declined relative to the U.S. dollar.

» Underweight exposure to duration in Japan detracted from performance, as rates fell.

» Holdings of sovereign emerging market external debt detracted from relative performance, as the JP Morgan Emerging Market Bond Index, which generally tracks the total return of emerging market external debt, fell.

6 PIMCO VARIABLE INSURANCE TRUST

Expense Example PIMCO Global Core Bond (Hedged) Portfolio

Example

As a shareholder of the Portfolio, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees (if applicable), and other Portfolio expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in the Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds.

The Expense Example does not reflect any fees or other expenses imposed by the Variable Contracts. If it did, the expenses reflected in the Expense Example would be higher. The Example is based on an investment of $1,000 invested at the beginning of the period and held from July 1, 2018 to December 31, 2018 unless noted otherwise in the table and footnotes below.

Actual Expenses

The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60), then multiply the result by the number in the appropriate row for your share class, in the column titled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other portfolios. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other portfolios.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information under the heading “Hypothetical (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different portfolios. In addition, if these transactional costs were included, your costs would have been higher.

Expense ratios may vary period to period because of various factors, such as an increase in expenses that are not covered by the management fees such as fees and expenses of the independent trustees and their counsel, extraordinary expenses and interest expense.

	Actual						Hypothetical (5% return before expenses)
	Beginning Account Value (07/01/18)		Ending Account Value (12/31/18)		Expenses Paid During Period*		Beginning Account Value (07/01/18)		Ending Account Value (12/31/18)		Expenses Paid During Period*		Net Annualized Expense Ratio**
Administrative Class	$	1,000.00	$	1,005.90	$	3.99	$	1,000.00	$	1,021.22	$	4.02		0.79	%

* Expenses Paid During Period are equal to the net annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Overall fees and expenses of investing in the Portfolio will be higher because the example does not reflect variable contract fees and expenses.

** Net Annualized Expense Ratio is reflective of any applicable contractual fee waivers and/or expense reimbursements or voluntary fee waivers. Details regarding fee waivers, if any, can be found in Note 9, Fees and Expenses, in the Notes to Financial Statements.

ANNUAL REPORT DECEMBER 31, 2018 7

Financial Highlights PIMCO Global Core Bond (Hedged) Portfolio

			Investment Operations								Less Distributions(b)
Selected Per Share Data for the Year Ended^:	Net Asset Value Beginning of Year		Net Investment Income (Loss)(a)		Net Realized/ Unrealized Loss			Total			From Net Investment Income			From Net Realized Capital Gain		Tax Basis Return of Capital			Total
Administrative Class
12/31/2018	$	9.47	$	0.18	$	(0.08	)	$	0.10		$	(0.16	)	$	0.00	$	0.00		$	(0.16	)
12/31/2017		9.21		0.15		0.24			0.39			(0.13	)		0.00		0.00			(0.13	)
12/31/2016		8.77		0.21		0.38			0.59			(0.15	)		0.00		0.00			(0.15	)
12/31/2015		9.42		0.14		(0.61	)		(0.47	)		0.00			0.00		(0.18	)		(0.18	)
12/31/2014		9.75		0.16		(0.30	)		(0.14	)		(0.19	)		0.00		0.00			(0.19	)

^ A zero balance may reflect actual amounts rounding to less than $0.01 or 0.01%.

^(a)  Per share amounts based on average number of shares outstanding during the year.

^(b)  The tax characterization of distributions is determined in accordance with Federal income tax regulations. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

^(c)  Effective October 21, 2016, the Portfolio’s Investment advisory fee was decreased by 0.15% to an annual rate of 0.25% and the Portfolio’s supervisory and administrative fee was decreased by 0.04% to an annual rate of 0.31%.

8 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

					Ratios/Supplemental Data
							Ratios to Average Net Assets
Net Asset Value End of Year		Total Return			Net Assets End of Year (000s)		Expenses			Expenses Excluding Waivers			Expenses Excluding Interest Expense			Expenses Excluding Interest Expense and Waivers			Net Investment Income (Loss)			Portfolio Turnover Rate
$	9.41		1.05	%	$	110,302		0.76	%		0.76	%		0.71	%		0.71	%		1.87	%		327	%
	9.47		4.29			107,869		0.76			0.76			0.71			0.71			1.61			292
	9.21		6.78			107,052		0.91	(c)		0.91	(c)		0.86	(c)		0.86	(c)		2.31			342
	8.77		(5.03	)		214,181		0.90			0.90			0.90			0.90			1.50			256
	9.42		(1.49	)		218,872		0.90			0.90			0.90			0.90			1.59			145

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 9

Statement of Assets and Liabilities PIMCO Global Core Bond (Hedged) Portfolio

(Amounts in thousands†, except per share amounts)	December 31, 2018
Assets:
Investments, at value
Investments in securities*	$	139,305
Investments in Affiliates		4,231
Financial Derivative Instruments
Exchange-traded or centrally cleared		144
Over the counter		726
Cash		2
Deposits with counterparty		1,701
Foreign currency, at value		510
Receivable for investments sold		5,116
Receivable for TBA investments sold		7,903
Interest and/or dividends receivable		661
Dividends receivable from Affiliates		10
Total Assets		160,309
Liabilities:
Borrowings & Other Financing Transactions
Payable for reverse repurchase agreements	$	5,347
Payable for short sales		1,443
Financial Derivative Instruments
Exchange-traded or centrally cleared		187
Over the counter		957
Payable for investments purchased		4,392
Payable for investments in Affiliates purchased		10
Payable for TBA investments purchased		37,480
Deposits from counterparty		26
Payable for Portfolio shares redeemed		98
Accrued investment advisory fees		23
Accrued supervisory and administrative fees		29
Accrued servicing fees		14
Other liabilities		1
Total Liabilities		50,007
Net Assets	$	110,302
Net Assets Consist of:
Paid in capital	$	113,578
Distributable earnings (accumulated loss)		(3,276	)
Net Assets	$	110,302
Net Assets:
Administrative Class	$	110,302
Shares Issued and Outstanding:
Administrative Class		11,728
Net Asset Value Per Share Outstanding:
Administrative Class	$	9.41
Cost of investments in securities	$	141,181
Cost of investments in Affiliates	$	4,270
Cost of foreign currency held	$	517
Proceeds received on short sales	$	1,441
Cost or premiums of financial derivative instruments, net	$	168
* Includes repurchase agreements of:	$	976

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

10 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

Statement of Operations PIMCO Global Core Bond (Hedged) Portfolio

(Amounts in thousands†)	Year Ended December 31, 2018
Investment Income:
Interest	$	2,827
Dividends		3
Dividends from Investments in Affiliates		167
Total Income		2,997
Expenses:
Investment advisory fees		284
Supervisory and administrative fees		353
Servicing fees - Administrative Class		171
Trustee fees		3
Interest expense		58
Miscellaneous expense		3
Total Expenses		872
Net Investment Income (Loss)		2,125
Net Realized Gain (Loss):
Investments in securities		(320	)
Investments in Affiliates		(1	)
Net capital gain distributions received from Affiliate investments		5
Exchange-traded or centrally cleared financial derivative instruments		267
Over the counter financial derivative instruments		2,772
Short sales		(7	)
Foreign currency		(1,272	)
Net Realized Gain (Loss)		1,444
Net Change in Unrealized Appreciation (Depreciation):
Investments in securities		(3,599	)
Investments in Affiliates		(36	)
Exchange-traded or centrally cleared financial derivative instruments		(1	)
Over the counter financial derivative instruments		128
Short sales		2
Foreign currency assets and liabilities		998
Net Change in Unrealized Appreciation (Depreciation)		(2,508	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	1,061

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 11

Statements of Changes in Net Assets PIMCO Global Core Bond (Hedged) Portfolio

(Amounts in thousands†)	Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets from:
Operations:
Net investment income (loss)	$	2,125		$	1,690
Net realized gain (loss)		1,444			464
Net change in unrealized appreciation (depreciation)		(2,508	)		2,306
Net Increase (Decrease) in Net Assets Resulting from Operations		1,061			4,460
Distributions to Shareholders:
From net investment income and/or net realized capital gains*
Administrative Class		(1,911	)		(1,490	)
Total Distributions(a)		(1,911	)		(1,490	)
Portfolio Share Transactions:
Net increase (decrease) resulting from Portfolio share transactions**		3,283			(2,153	)
Total Increase (Decrease) in Net Assets		2,433			817
Net Assets:
Beginning of year		107,869			107,052
End of year	$	110,302		$	107,869

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

* See Note 2, New Accounting Pronouncements, in the Notes to Financial Statements for more information.

** See Note 13, Shares of Beneficial Interest, in the Notes to Financial Statements.

^(a)  The tax characterization of distributions is determined in accordance with Federal income tax regulations. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

12 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

Schedule of Investments PIMCO Global Core Bond (Hedged) Portfolio

December 31, 2018

(Amounts in thousands*, except number of shares, contracts and units, if any)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
INVESTMENTS IN SECURITIES 126.3%
ARGENTINA 0.1%
SOVEREIGN ISSUES 0.1%
Argentina Government International Bond
50.225% (BADLARPP + 2.000%) due 04/03/2022 ~(a)	ARS		1,630	$		42
50.950% (BADLARPP + 2.500%) due 03/11/2019 ~(a)			105			3
59.257% (ARLLMONP) due 06/21/2020 ~(a)			2,810			80
Total Argentina (Cost $240)						125
AUSTRALIA 0.3%
CORPORATE BONDS & NOTES 0.3%
Sydney Airport Finance Co. Pty. Ltd.
3.625% due 04/28/2026	$		400			383
Total Australia (Cost $401)						383
BRAZIL 0.6%
CORPORATE BONDS & NOTES 0.6%
Odebrecht Oil & Gas Finance Ltd.
0.000% due 01/30/2019 (e)(h)	$		101			2
Petrobras Global Finance BV
6.125% due 01/17/2022			34			35
6.250% due 03/17/2024			400			407
7.375% due 01/17/2027			200			206
Total Brazil (Cost $648)						650
CANADA 5.6%
CORPORATE BONDS & NOTES 0.5%
Air Canada Pass-Through Trust
3.300% due 07/15/2031	$		100			96
Enbridge, Inc.
3.488% (US0003M + 0.700%) due 06/15/2020 ~			100			100
Fairfax Financial Holdings Ltd.
2.750% due 03/29/2028	EUR		100			114
HSBC Bank Canada
3.300% due 11/28/2021	$		200			202
						512
NON-AGENCY MORTGAGE-BACKED SECURITIES 0.5%
Canadian Mortgage Pools
2.259% due 06/01/2020	CAD		162			119
2.459% due 07/01/2020			397			292
2.459% due 08/01/2020			120			88
Real Estate Asset Liquidity Trust
3.072% due 08/12/2053			96			70
						569
SOVEREIGN ISSUES 4.6%
Canada Housing Trust
2.400% due 12/15/2022			2,800			2,064
Canadian Government Real Return Bond
1.500% due 12/01/2044 (g)			116			100
Province of Alberta
1.250% due 06/01/2020			400			290
2.350% due 06/01/2025			600			431
Province of Ontario
2.400% due 06/02/2026			1,900			1,363
2.500% due 09/10/2021	$		800			794
						5,042
Total Canada (Cost $6,458)						6,123

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
CAYMAN ISLANDS 3.5%
ASSET-BACKED SECURITIES 3.0%
Avery Point CLO Ltd.
3.565% due 01/18/2025 •	$		174	$		174
B&M CLO Ltd.
3.166% due 04/16/2026 •			261			260
Cent CLO Ltd.
3.506% due 10/15/2026 •			300			298
Evans Grove CLO Ltd.
3.627% due 05/28/2028 •			100			99
Flagship Ltd.
3.589% due 01/20/2026 •			226			226
JMP Credit Advisors CLO Ltd.
3.299% due 01/17/2028 •			300			299
LCM LP
3.379% due 10/20/2027 •			300			299
Monarch Grove CLO
3.370% due 01/25/2028 •			300			297
Sudbury Mill CLO Ltd.
3.599% due 01/17/2026 •			407			407
TICP CLO Ltd.
3.309% due 04/20/2028 •			300			297
Venture CLO Ltd.
3.316% due 04/15/2027 •			100			99
Wellfleet CLO Ltd.
3.609% due 10/20/2027 •			300			300
Zais CLO Ltd.
3.586% due 04/15/2028 •			300			299
						3,354
CORPORATE BONDS & NOTES 0.5%
Odebrecht Offshore Drilling Finance Ltd.
6.720% due 12/01/2022			181			169
Odebrecht Offshore Drilling Finance Ltd. (6.720% Cash or 7.720% PIK)
7.720% due 12/01/2026 (b)			675			180
Sands China Ltd.
5.400% due 08/08/2028			200			194
						543
Total Cayman Islands (Cost $4,267)						3,897
DENMARK 2.8%
CORPORATE BONDS & NOTES 2.8%
Jyske Realkredit A/S
1.500% due 10/01/2037	DKK		600			93
2.000% due 10/01/2047			1,204			186
Nordea Kredit Realkreditaktieselskab
1.500% due 10/01/2037			400			62
2.000% due 10/01/2047			3,873			599
2.000% due 10/01/2050			1,278			196
2.500% due 10/01/2037			409			67
2.500% due 10/01/2047			1			0
3.000% due 10/01/2047			37			6
Nykredit Realkredit A/S
1.500% due 10/01/2037			500			77
2.000% due 10/01/2047			4,993			773
2.500% due 10/01/2036			93			15
2.500% due 10/01/2047			11			2
Realkredit Danmark A/S
2.000% due 10/01/2047			6,131			950
2.500% due 07/01/2036			375			61
2.500% due 07/01/2047			101			16
Total Denmark (Cost $2,981)						3,103
FRANCE 3.5%
CORPORATE BONDS & NOTES 2.2%
Altice France S.A.
7.375% due 05/01/2026	$		300			276

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Credit Agricole S.A.
3.507% (US0003M + 1.020%) due 04/24/2023 ~	$		250	$		246
Danone S.A.
3.000% due 06/15/2022			200			197
Dexia Credit Local S.A.
1.875% due 09/15/2021			900			877
2.250% due 02/18/2020			250			248
2.500% due 01/25/2021			400			398
Electricite de France S.A.
4.600% due 01/27/2020			200			203
						2,445
SOVEREIGN ISSUES 1.3%
France Government International Bond
2.000% due 05/25/2048	EUR		900			1,120
3.250% due 05/25/2045			200			315
						1,435
Total France (Cost $3,847)						3,880
GERMANY 0.8%
CORPORATE BONDS & NOTES 0.8%
Deutsche Bank AG
3.284% (US0003M + 0.815%) due 01/22/2021 ~	$		200			191
3.766% (US0003M + 1.290%) due 02/04/2021 ~			150			146
4.250% due 10/14/2021			500			489
Landwirtschaftliche Rentenbank
4.250% due 01/24/2023	AUD		100			75
Total Germany (Cost $924)						901
IRELAND 0.8%
ASSET-BACKED SECURITIES 0.3%
Toro European CLO DAC
0.900% due 10/15/2030 •	EUR		300			342
CORPORATE BONDS & NOTES 0.5%
Iberdrola Finance Ireland DAC
5.000% due 09/11/2019	$		300			303
SMBC Aviation Capital Finance DAC
2.650% due 07/15/2021			200			195
						498
Total Ireland (Cost $855)						840
ISRAEL 0.2%
SOVEREIGN ISSUES 0.2%
Israel Government International Bond
3.250% due 01/17/2028	$		200			196
Total Israel (Cost $199)						196
ITALY 1.8%
CORPORATE BONDS & NOTES 1.0%
Intesa Sanpaolo SpA
6.250% due 05/16/2024 •(h)(i)	EUR		200			219
7.750% due 01/11/2027 •(h)(i)			200			241
UniCredit SpA
7.830% due 12/04/2023	$		350			366
Wind Tre SpA
3.125% due 01/20/2025	EUR		300			307
						1,133
NON-AGENCY MORTGAGE-BACKED SECURITIES 0.0%
F-E Mortgages SRL
0.019% due 12/15/2043 •			11			12

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 13

Schedule of Investments PIMCO Global Core Bond (Hedged) Portfolio (Cont.)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
SOVEREIGN ISSUES 0.8%
Italy Buoni Poliennali Del Tesoro
2.500% due 11/15/2025	EUR		400	$		464
Italy Government International Bond
6.000% due 08/04/2028	GBP		300			438
						902
Total Italy (Cost $2,314)						2,047
JAPAN 5.0%
CORPORATE BONDS & NOTES 0.8%
Mitsubishi UFJ Financial Group, Inc.
2.950% due 03/01/2021	$		200			198
3.455% due 03/02/2023			300			298
Mizuho Financial Group, Inc.
3.922% due 09/11/2024 •			300			303
Takeda Pharmaceutical Co. Ltd.
1.125% due 11/21/2022	EUR		100			116
						915
SOVEREIGN ISSUES 4.2%
Development Bank of Japan, Inc.
3.125% due 09/06/2023	$		500			504
Japan Bank for International Cooperation
2.375% due 07/21/2022			200			197
3.250% due 07/20/2023			200			203
Japan Finance Organization for Municipalities
2.125% due 04/13/2021			600			589
Japan Government International Bond
0.400% due 03/20/2036	JPY		210,000			1,921
0.500% due 09/20/2046			110,000			957
Tokyo Metropolitan Government
2.000% due 05/17/2021	$		300			293
						4,664
Total Japan (Cost $5,819)						5,579
KUWAIT 0.6%
SOVEREIGN ISSUES 0.6%
Kuwait International Government Bond
3.500% due 03/20/2027	$		700			698
Total Kuwait (Cost $694)						698
LITHUANIA 0.2%
SOVEREIGN ISSUES 0.2%
Lithuania Government International Bond
6.125% due 03/09/2021	$		200			212
Total Lithuania (Cost $211)						212
LUXEMBOURG 0.6%
CORPORATE BONDS & NOTES 0.6%
Emerald Bay S.A.
0.000% due 10/08/2020 (e)	EUR		286			309
Holcim U.S. Finance SARL & Cie SCS
6.000% due 12/30/2019	$		100			102
NORD/LB Luxembourg S.A. Covered Bond Bank
2.875% due 02/16/2021			200			199
Total Luxembourg (Cost $611)						610
NETHERLANDS 4.0%
ASSET-BACKED SECURITIES 0.7%
Babson Euro CLO BV
0.503% due 10/25/2029 •	EUR		250			284
Jubilee CLO BV
0.489% due 12/15/2029 •			400			454
						738

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
CORPORATE BONDS & NOTES 3.3%
British Transco International Finance BV
0.000% due 11/04/2021 (e)	$		200	$		179
Cooperatieve Rabobank UA
2.938% (US0003M + 0.430%) due 04/26/2021 ~			250			249
3.682% (US0003M + 0.860%) due 09/26/2023 ~			300			296
3.875% due 09/26/2023			300			301
Deutsche Telekom International Finance BV
2.820% due 01/19/2022			200			196
ING Bank NV
2.625% due 12/05/2022			1,500			1,478
Mylan NV
3.750% due 12/15/2020			100			100
NXP BV
4.125% due 06/15/2020			200			199
Stichting AK Rabobank Certificaten
6.500% due 12/29/2049 (h)	EUR		50			62
Syngenta Finance NV
3.698% due 04/24/2020	$		200			199
Teva Pharmaceutical Finance Netherlands BV
1.700% due 07/19/2019			100			99
3.250% due 04/15/2022	EUR		200			231
						3,589
Total Netherlands (Cost $4,365)						4,327
NORWAY 0.4%
CORPORATE BONDS & NOTES 0.3%
DNB Boligkreditt A/S
2.500% due 03/28/2022	$		300			296
SOVEREIGN ISSUES 0.1%
Norway Government International Bond
3.750% due 05/25/2021	NOK		1,100			135
Total Norway (Cost $454)						431
POLAND 0.2%
SOVEREIGN ISSUES 0.2%
Poland Government International Bond
2.250% due 04/25/2022	PLN		900			244
Total Poland (Cost $226)						244
PORTUGAL 0.1%
CORPORATE BONDS & NOTES 0.1%
Banco Espirito Santo S.A.
4.000% due 01/21/2019 ^(c)	EUR		300			100
Total Portugal (Cost $338)						100
QATAR 1.3%
SOVEREIGN ISSUES 1.3%
Qatar Government International Bond
3.875% due 04/23/2023	$		1,000			1,013
4.500% due 04/23/2028			400			418
Total Qatar (Cost $1,393)						1,431
SAUDI ARABIA 2.1%
SOVEREIGN ISSUES 2.1%
Saudi Government International Bond
2.375% due 10/26/2021	$		1,000			965
2.875% due 03/04/2023			300			289
3.250% due 10/26/2026			200			188
4.000% due 04/17/2025			400			397
4.500% due 04/17/2030			500			498
Total Saudi Arabia (Cost $2,384)						2,337

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
SINGAPORE 0.3%
CORPORATE BONDS & NOTES 0.3%
BOC Aviation Ltd.
2.750% due 09/18/2022	$		200	$		192
DBS Bank Ltd.
3.300% due 11/27/2021			100			101
Total Singapore (Cost $299)						293
SLOVENIA 0.2%
SOVEREIGN ISSUES 0.2%
Slovenia Government International Bond
4.125% due 02/18/2019	$		200			200
Total Slovenia (Cost $200)						200
SPAIN 2.5%
CORPORATE BONDS & NOTES 0.9%
Banco Bilbao Vizcaya Argentaria S.A.
6.750% due 02/18/2020 •(h)(i)	EUR		200			228
Merlin Properties Socimi S.A.
2.225% due 04/25/2023			400			472
Telefonica Emisiones S.A.
5.134% due 04/27/2020	$		300			306
						1,006
SOVEREIGN ISSUES 1.6%
Autonomous Community of Catalonia
4.900% due 09/15/2021	EUR		100			123
4.950% due 02/11/2020			400			477
Spain Government International Bond
1.400% due 07/30/2028			1,000			1,145
						1,745
Total Spain (Cost $2,817)						2,751
SWEDEN 4.3%
CORPORATE BONDS & NOTES 4.3%
Lansforsakringar Hypotek AB
1.250% due 09/20/2023	SEK		5,300			613
2.250% due 09/21/2022			5,000			600
Nordea Hypotek AB
1.000% due 04/08/2022			8,300			956
Skandinaviska Enskilda Banken AB
1.500% due 12/15/2021			2,000			234
Stadshypotek AB
1.500% due 12/15/2021			4,000			468
4.500% due 09/21/2022			7,000			908
Sveriges Sakerstallda Obligationer AB
1.250% due 06/15/2022			2,000			232
2.000% due 06/17/2026			1,000			119
Swedbank Hypotek AB
1.000% due 09/15/2021			1,800			208
1.000% due 06/15/2022			3,100			357
Total Sweden (Cost $4,647)						4,695
SWITZERLAND 1.0%
CORPORATE BONDS & NOTES 1.0%
UBS AG
2.200% due 06/08/2020	$		200			197
2.450% due 12/01/2020			200			196
3.218% (US0003M + 0.480%) due 12/01/2020 ~			200			199
3.347% due 06/08/2020 •			300			300
5.125% due 05/15/2024 (i)			200			200
Total Switzerland (Cost $1,105)						1,092

14 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
UNITED ARAB EMIRATES 0.4%
SOVEREIGN ISSUES 0.4%
Emirate of Abu Dhabi Government International Bond
2.500% due 10/11/2022	$		300	$		292
3.125% due 10/11/2027			200			191
Total United Arab Emirates (Cost $498)						483
UNITED KINGDOM 10.4%
CORPORATE BONDS & NOTES 6.8%
Barclays Bank PLC
7.625% due 11/21/2022 (i)	$		500			519
Barclays PLC
4.046% (US0003M + 1.430%) due 02/15/2023 ~			300			289
4.610% due 02/15/2023 •			300			298
6.500% due 09/15/2019 •(h)(i)	EUR		200			224
British Telecommunications PLC
9.625% due 12/15/2030	$		100			136
HSBC Holdings PLC
3.240% (US0003M + 0.600%) due 05/18/2021 ~			200			197
3.426% (US0003M + 0.650%) due 09/11/2021 ~			600			592
4.750% due 07/04/2029 •(h)(i)	EUR		200			208
5.875% due 09/28/2026 •(h)(i)	GBP		200			244
6.500% due 03/23/2028 •(h)(i)	$		200			182
Lloyds Bank PLC
4.875% due 03/30/2027	GBP		500			772
5.125% due 03/07/2025			400			606
Lloyds Banking Group PLC
7.000% due 06/27/2019 •(h)(i)			200			255
Natwest Markets PLC
0.625% due 03/02/2022	EUR		600			668
Royal Bank of Scotland Group PLC
4.372% (US0003M + 1.550%) due 06/25/2024 ~	$		500			478
7.500% due 08/10/2020 •(h)(i)			200			198
Santander UK Group Holdings PLC
2.875% due 08/05/2021			300			290
4.750% due 09/15/2025			500			471
4.796% due 11/15/2024 •			300			298
Tesco Property Finance PLC
5.744% due 04/13/2040	GBP		49			70
Virgin Media Secured Finance PLC
4.875% due 01/15/2027			100			120
5.000% due 04/15/2027			100			121
Virgin Money PLC
2.250% due 04/21/2020			200			255
						7,491
NON-AGENCY MORTGAGE-BACKED SECURITIES 2.0%
Alba PLC
1.082% due 11/25/2042 •			367			439
Eurosail PLC
1.850% (BP0003M + 0.950%) due 06/13/2045 ~			506			645
Newgate Funding PLC
1.036% due 12/15/2050 •			149			188
Ripon Mortgages PLC
1.689% due 08/20/2056 •			333			423
RMAC Securities PLC
1.073% due 06/12/2044 •			287			341
Southern Pacific Financing PLC
1.087% due 06/10/2043 •			166			209
						2,245
		SHARES
PREFERRED SECURITIES 0.0%
Nationwide Building Society
10.250% ~			250			45

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
SOVEREIGN ISSUES 1.6%
United Kingdom Gilt
3.500% due 01/22/2045	GBP		1,000	$		1,713
Total United Kingdom (Cost $12,324)						11,494
UNITED STATES 59.8%
ASSET-BACKED SECURITIES 4.1%
Accredited Mortgage Loan Trust
2.636% due 02/25/2037 •	$		17			17
Argent Securities Trust
2.656% due 07/25/2036 •			384			144
2.666% due 05/25/2036 •			668			234
Bear Stearns Asset-Backed Securities Trust
2.826% due 01/25/2047 •			149			149
Countrywide Asset-Backed Certificates
2.646% due 07/25/2037 ^•			222			193
2.646% due 07/25/2037 •			75			68
4.789% due 07/25/2036 ~			33			33
Countrywide Asset-Backed Certificates Trust
3.756% due 07/25/2035 •			700			694
Credit-Based Asset Servicing & Securitization Mortgage Loan Trust
3.816% due 03/25/2037 ^Ø			286			163
First Franklin Mortgage Loan Trust
3.781% due 07/25/2034 •			139			139
GSAA Home Equity Trust
2.956% due 08/25/2037 •			59			55
Home Equity Mortgage Loan Asset-Backed Trust
2.746% due 04/25/2037 •			301			226
MASTR Asset-Backed Securities Trust
2.716% due 05/25/2037 •			377			358
Morgan Stanley ABS Capital, Inc. Trust
2.736% due 10/25/2036 •			630			402
Morgan Stanley Mortgage Loan Trust
6.000% due 02/25/2037 ^~			33			30
New Century Home Equity Loan Trust
3.760% due 06/20/2031 ~			438			399
NovaStar Mortgage Funding Trust
2.636% due 03/25/2037 •			631			472
Option One Mortgage Loan Trust
2.646% due 03/25/2037 •			76			68
Renaissance Home Equity Loan Trust
5.294% due 01/25/2037 Ø			367			195
Soundview Home Loan Trust
2.756% due 11/25/2036 •			300			276
Structured Asset Investment Loan Trust
4.231% due 10/25/2034 •			232			228
Terwin Mortgage Trust
3.446% due 11/25/2033 •			6			5
						4,548
CORPORATE BONDS & NOTES 14.2%
Allergan Sales LLC
5.000% due 12/15/2021			200			206
American Honda Finance Corp.
2.932% (US0003M + 0.350%) due 11/05/2021 ~			100			99
American Tower Corp.
2.800% due 06/01/2020			100			99
Andeavor Logistics LP
5.500% due 10/15/2019			100			101
Anheuser-Busch InBev Finance, Inc.
3.300% due 02/01/2023			500			487
AT&T, Inc.
1.800% due 09/05/2026	EUR		200			228
3.386% (US0003M + 0.950%) due 07/15/2021 ~	$		400			399
3.488% (US0003M + 0.750%) due 06/01/2021 ~			200			199
3.956% (US0003M + 1.180%) due 06/12/2024 ~			200			194

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Baker Hughes a GE Co. LLC
2.773% due 12/15/2022	$		100	$		96
Bank of America Corp.
5.875% due 03/15/2028 •(h)			200			182
BAT Capital Corp.
3.204% due 08/14/2020 •			400			396
3.557% due 08/15/2027			100			89
4.390% due 08/15/2037			100			82
Bayer U.S. Finance LLC
3.452% (US0003M + 0.630%) due 06/25/2021 ~			200			197
4.250% due 12/15/2025			300			293
BMW U.S. Capital LLC
3.118% (US0003M + 0.500%) due 08/13/2021 ~			200			198
Broadcom Corp.
2.200% due 01/15/2021			100			97
Charter Communications Operating LLC
4.464% due 07/23/2022			500			505
6.384% due 10/23/2035			300			309
Citigroup, Inc.
3.696% (US0003M + 0.930%) due 06/07/2019 ~			600			601
Cleco Corporate Holdings LLC
3.743% due 05/01/2026			300			287
CNH Industrial Capital LLC
3.375% due 07/15/2019			100			99
Continental Resources, Inc.
4.375% due 01/15/2028			100			94
CVS Health Corp.
4.100% due 03/25/2025			100			99
5.050% due 03/25/2048			100			98
D.R. Horton, Inc.
4.375% due 09/15/2022			100			101
Dell International LLC
3.480% due 06/01/2019			300			299
Delta Air Lines, Inc.
3.625% due 03/15/2022			100			98
DISH DBS Corp.
5.125% due 05/01/2020			200			198
Dominion Energy Gas Holdings LLC
3.388% (US0003M + 0.600%) due 06/15/2021 ~			100			100
Energy Transfer Operating LP
4.650% due 06/01/2021			300			305
EQT Corp.
4.875% due 11/15/2021			200			204
Equinix, Inc.
2.875% due 03/15/2024	EUR		100			115
ERAC USA Finance LLC
2.350% due 10/15/2019	$		200			199
Ford Motor Credit Co. LLC
3.305% (US0003M + 0.880%) due 10/12/2021 ~			300			288
5.750% due 02/01/2021			200			204
Fortune Brands Home & Security, Inc.
4.000% due 09/21/2023			100			99
GATX Corp.
3.302% (US0003M + 0.720%) due 11/05/2021 ~			400			396
General Mills, Inc.
2.976% (US0003M + 0.540%) due 04/16/2021 ~			100			98
General Motors Financial Co., Inc.
3.258% (US0003M + 0.850%) due 04/09/2021 ~			100			98
Goldman Sachs Group, Inc.
4.223% due 05/01/2029 •			300			289
Harley-Davidson Financial Services, Inc.
3.647% (US0003M + 0.940%) due 03/02/2021 ~			100			100
Harris Corp.
3.000% (US0003M + 0.480%) due 04/30/2020 ~			100			100

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 15

Schedule of Investments PIMCO Global Core Bond (Hedged) Portfolio (Cont.)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
International Lease Finance Corp.
8.250% due 12/15/2020	$		300	$		323
JPMorgan Chase & Co.
3.220% due 03/01/2025 •			100			97
JPMorgan Chase Bank N.A.
2.848% (US0003M + 0.340%) due 04/26/2021 ~			300			297
Komatsu Finance America, Inc.
2.437% due 09/11/2022			300			289
Kraft Heinz Foods Co.
3.188% (US0003M + 0.570%) due 02/10/2021 ~			100			99
McDonald’s Corp.
2.939% (US0003M + 0.430%) due 10/28/2021 ~			100			99
Morgan Stanley
3.168% (US0003M + 0.550%) due 02/10/2021 ~			100			99
3.737% due 04/24/2024 •			300			298
National Rural Utilities Cooperative Finance Corp.
3.178% (US0003M + 0.375%) due 06/30/2021 ~			200			199
Navient Corp.
4.875% due 06/17/2019			69			69
NextEra Energy Capital Holdings, Inc.
3.053% (US0003M + 0.315%) due 09/03/2019 ~			300			300
3.107% (US0003M + 0.400%) due 08/21/2020 ~			300			300
Northwell Healthcare, Inc.
4.260% due 11/01/2047			100			95
Penske Truck Leasing Co. LP
3.950% due 03/10/2025			300			294
Public Service Enterprise Group, Inc.
2.000% due 11/15/2021			100			96
Rio Oil Finance Trust
9.250% due 07/06/2024			325			348
Sabine Pass Liquefaction LLC
5.625% due 02/01/2021			100			103
Spectra Energy Partners LP
3.451% (US0003M + 0.700%) due 06/05/2020 ~			100			99
Spirit AeroSystems, Inc.
3.588% (US0003M + 0.800%) due 06/15/2021 ~			100			99
Springleaf Finance Corp.
6.000% due 06/01/2020			100			101
Sprint Capital Corp.
6.900% due 05/01/2019			100			101
United Technologies Corp.
3.350% due 08/16/2021			100			100
VEREIT Operating Partnership LP
4.875% due 06/01/2026			400			401
Verizon Communications, Inc.
2.625% due 08/15/2026			100			91
4.125% due 03/16/2027			100			100
4.329% due 09/21/2028			99			100
VMware, Inc.
2.300% due 08/21/2020			100			98
Volkswagen Group of America Finance LLC
2.450% due 11/20/2019			200			198
3.388% (US0003M + 0.770%) due 11/13/2020 ~			200			199
3.558% (US0003M + 0.940%) due 11/12/2021 ~			200			198
4.000% due 11/12/2021			200			201
Wells Fargo & Co.
3.000% due 04/22/2026			200			187
3.597% (US0003M + 1.110%) due 01/24/2023 ~			300			297
WRKCo, Inc.
3.750% due 03/15/2025			100			98
Zimmer Biomet Holdings, Inc.
3.150% due 04/01/2022			300			294

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
3.375% due 11/30/2021	$		300	$		297
						15,689
LOAN PARTICIPATIONS AND ASSIGNMENTS 0.1%
CenturyLink, Inc.
5.272% due 01/31/2025			99			93
NON-AGENCY MORTGAGE-BACKED SECURITIES 2.9%
Banc of America Alternative Loan Trust
6.500% due 04/25/2036 ^			435			399
Banc of America Funding Trust
2.680% due 04/20/2047 ^•			137			123
6.000% due 07/25/2037 ^			98			91
BCAP LLC Trust
2.716% due 05/25/2047 •			190			174
Chase Mortgage Finance Trust
3.614% due 07/25/2037 ~			12			11
4.075% due 03/25/2037 ^~			75			74
Citigroup Mortgage Loan Trust
4.539% due 04/25/2037 ^~			67			58
Citigroup Mortgage Loan Trust, Inc.
4.053% due 08/25/2035 ^~			1,214			1,069
Countrywide Home Loan Mortgage Pass-Through Trust
6.250% due 09/25/2036 ^			60			46
Credit Suisse Mortgage Capital Certificates
4.035% due 02/26/2036 ~			19			18
Deutsche ALT-A Securities, Inc. Mortgage Loan Trust
2.656% due 02/25/2047 •			261			204
Deutsche ALT-B Securities, Inc. Mortgage Loan Trust
5.945% due 02/25/2036 ^Ø			94			90
GreenPoint Mortgage Funding Trust
2.966% due 06/25/2045 •			97			90
JPMorgan Alternative Loan Trust
3.866% due 12/25/2036 ~			38			43
Merrill Lynch Mortgage Investors Trust
3.677% due 03/25/2036 ^~			195			145
Morgan Stanley Mortgage Loan Trust
3.870% due 05/25/2036 ^~			106			83
4.499% due 09/25/2035 ^~			84			56
PHH Alternative Mortgage Trust
6.000% due 05/25/2037 ^			75			68
Prime Mortgage Trust
6.000% due 06/25/2036 ^			89			82
Residential Accredit Loans, Inc. Trust
2.636% due 02/25/2037 •			73			71
Residential Funding Mortgage Securities, Inc. Trust
6.000% due 06/25/2037 ^			64			58
Structured Asset Mortgage Investments Trust
2.736% due 02/25/2036 •			29			28
Structured Asset Securities Corp.
2.786% due 01/25/2036 •			55			51
WaMu Mortgage Pass-Through Certificates Trust
3.994% due 09/25/2036 ~			37			37
						3,169
U.S. GOVERNMENT AGENCIES 30.5%
Fannie Mae
2.906% due 06/25/2036 •			10			11
Fannie Mae, TBA
3.500% due 01/01/2049 - 02/01/2049			18,900			18,898
4.000% due 01/01/2049			11,000			11,218
Freddie Mac
1.567% due 01/15/2038 ~(a)			201			11
2.649% due 01/15/2038 •			201			200
3.000% due 02/01/2046			739			721
3.500% due 11/01/2047 - 04/01/2048			984			984
4.360% due 09/01/2037 •			405			427
Ginnie Mae
3.094% due 09/20/2066 •			654			662

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
4.946% due 09/20/2066 ~	$		448	$		495
						33,627
U.S. TREASURY OBLIGATIONS 8.0%
U.S. Treasury Inflation Protected Securities (g)
0.125% due 04/15/2022			520			503
0.125% due 07/15/2024 (k)(m)			3,089			2,963
0.375% due 07/15/2025 (o)			213			206
0.500% due 01/15/2028 (k)			1,743			1,664
1.000% due 02/15/2048			410			390
1.375% due 02/15/2044			217			225
2.500% due 01/15/2029			236			268
3.875% due 04/15/2029			154			196
U.S. Treasury Notes
2.625% due 06/15/2021			200			201
2.875% due 04/30/2025 (k)			2,200			2,239
						8,855
Total United States (Cost $65,465)						65,981
SHORT-TERM INSTRUMENTS 12.9%
REPURCHASE AGREEMENTS (j) 0.9%
						976
ARGENTINA TREASURY BILLS 0.1%
(1.641)% due 01/31/2019 - 04/30/2019 (d)(e)	ARS		3,367			94
FRANCE TREASURY BILLS 6.8%
(0.632)% due 01/04/2019 - 01/16/2019 (d)(e)	EUR		6,500			7,449
JAPAN TREASURY BILLS 4.6%
(0.184)% due 01/09/2019 - 03/11/2019 (d)(e)	JPY		560,000			5,110
NETHERLANDS TREASURY BILLS 0.5%
(0.639)% due 01/31/2019 (e)(f)	EUR		500			573
Total Short-Term Instruments (Cost $14,197)						14,202
Total Investments in Securities (Cost $141,181)						139,305
		SHARES
INVESTMENTS IN AFFILIATES 3.8%
SHORT-TERM INSTRUMENTS 3.8%
CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 3.8%
PIMCO Short Asset Portfolio			408,900			4,057
PIMCO Short-Term Floating NAV Portfolio III			17,569			174
Total Short-Term Instruments (Cost $4,270)						4,231
Total Investments in Affiliates (Cost $4,270)						4,231
Total Investments 130.1% (Cost $145,451)				$		143,536
Financial Derivative Instruments (l)(n) (0.2)% (Cost or Premiums, net $168)						(274	)
Other Assets and Liabilities, net (29.9)%						(32,960	)
Net Assets 100.0%				$		110,302

16 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

NOTES TO SCHEDULE OF INVESTMENTS:

* A zero balance may reflect actual amounts rounding to less than one thousand.

^ Security is in default.

~ Variable or Floating rate security. Rate shown is the rate in effect as of period end. Certain variable rate securities are not based on a published reference rate and spread, rather are determined by the issuer or agent and are based on current market conditions. Reference rate is as of reset date, which may vary by security. These securities may not indicate a reference rate and/or spread in their description.

• Rate shown is the rate in effect as of period end. The rate may be based on a fixed rate, a capped rate or a floor rate and may convert to a variable or floating rate in the future. These securities do not indicate a reference rate and spread in their description.

Ø Coupon represents a rate which changes periodically based on a predetermined schedule or event. Rate shown is the rate in effect as of period end.

(a) Interest only security.

(b) Payment in-kind security.

(c) Security is not accruing income as of the date of this report.

(d) Coupon represents a weighted average yield to maturity.

(e) Zero coupon security.

(f) Coupon represents a yield to maturity.

(g) Principal amount of security is adjusted for inflation.

(h) Perpetual maturity; date shown, if applicable, represents next contractual call date.

(i) Contingent convertible security.

BORROWINGS AND OTHER FINANCING TRANSACTIONS

(j)  REPURCHASE AGREEMENTS:

Counterparty	Lending Rate			Settlement Date		Maturity Date		Principal Amount		Collateralized By	Collateral (Received)			Repurchase Agreements, at Value		Repurchase Agreement Proceeds to  be Received(1)
FICC		2.000	%		12/31/2018		01/02/2019	$	284	U.S. Treasury Notes 2.875% due 09/30/2023	$	(291	)	$	284	$	284
BPS		(0.600	)		10/18/2018		10/17/2020		604	Spain Government International Bond 1.45% due 10/31/2027		(699	)		692		691
Total Repurchase Agreements											$	(990	)	$	976	$	975

REVERSE REPURCHASE AGREEMENTS:

Counterparty	Borrowing Rate(2)			Settlement Date		Maturity Date		Amount Borrowed(2)			Payable for Reverse Repurchase Agreements
BSN		2.380	%		10/10/2018		01/10/2019	$	(3,514	)	$	(3,534	)
GRE		2.750			12/27/2018		01/28/2019		(1,812	)		(1,813	)
Total Reverse Repurchase Agreements											$	(5,347	)

SHORT SALES:

Description	Coupon			Maturity Date		Principal Amount			Proceeds			Payable for Short Sales(3)
Canada (0.7)%
Sovereign Issues (0.7)%
Canada Government Bond		2.750	%		12/01/2048		CAD	900	$	(751	)	$	(744	)
Total Canada (Cost $(751))													(744	)
Spain (0.6)%
Sovereign Issues (0.6)%
Spain Government International Bond		1.450	%		10/31/2027		EUR	600		(690	)		(699	)
Total Spain (Cost $(690))													(699	)
Total Short Sales (1.3)%									$	(1,441	)	$	(1,443	)

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 17

Schedule of Investments PIMCO Global Core Bond (Hedged) Portfolio (Cont.)

BORROWINGS AND OTHER FINANCING TRANSACTIONS SUMMARY

The following is a summary by counterparty of the market value of Borrowings and Other Financing Transactions and collateral pledged/(received) as of December 31, 2018:

Counterparty	Repurchase Agreement Proceeds to  be Received(1)		Payable for Reverse Repurchase Agreements			Payable for Sale-Buyback Transactions		Payable for Short Sales(3)			Total Borrowings and Other Financing Transactions			Collateral Pledged/(Received)			Net Exposure(4)
Global/Master Repurchase Agreement
BSN	$	0	$	(3,534	)	$	0	$	0		$	(3,534	)	$	3,567		$	33
FICC		284		0			0		0			284			(291	)		(7	)
BPS		691										691			(699	)		(8	)
GRE		0		(1,813	)		0		0			(1,813	)		1,869			56
Master Securities Forward Transaction Agreement
RYL		0		0			0		(699	)		(699	)		0			(699	)
TOR		0		0			0		(744	)		(744	)		0			(744	)
Total Borrowings and Other Financing Transactions	$	975	$	(5,347	)	$	0	$	(1,443	)

CERTAIN TRANSFERS ACCOUNTED FOR AS SECURED BORROWINGS

Remaining Contractual Maturity of the Agreements

	Overnight and Continuous		Up to 30 days			31-90 days		Greater Than 90 days		Total
Reverse Repurchase Agreements
U.S. Treasury Obligations	$	0	$	(5,347	)	$	0	$	0	$	(5,347	)
Total Borrowings	$	0	$	(5,347	)	$	0	$	0	$	(5,347	)
Payable for reverse repurchase agreements										$	(5,347	)

(k) Securities with an aggregate market value of $5,436 have been pledged as collateral under the terms of the above master agreements as of December 31, 2018.

⁽¹⁾ Includes accrued interest.

⁽²⁾ The average amount of borrowings outstanding during the period ended December 31, 2018 was $(3,224) at a weighted average interest rate of 0.984%. Average borrowings may include sale-buyback transactions and reverse repurchase agreements, if held during the period.

⁽³⁾ Payable for short sales includes $5 of accrued interest.

⁽⁴⁾ Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from borrowings and other financing transactions can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information regarding master netting arrangements.

(l)  FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED

PURCHASED OPTIONS:

OPTIONS ON EXCHANGE-TRADED FUTURES CONTRACTS

Description	Strike Price		Expiration Date		# of Contracts		Notional Amount		Cost		Market Value
Put - CBOT U.S. Treasury 10-Year Note March 2019 Futures	$	110.500		02/22/2019		12	$	12	$	0	$	0
Put - CBOT U.S. Treasury 10-Year Note March 2019 Futures		111.500		02/22/2019		3		3		0		0
Put - CBOT U.S. Treasury 10-Year Note March 2019 Futures		112.000		02/22/2019		1		1		0		0
Put - CBOT U.S. Treasury 10-Year Note March 2019 Futures		112.500		02/22/2019		33		33		1		0
Put - CBOT U.S. Treasury 5-Year Note March 2019 Futures		106.000		02/22/2019		12		12		0		0
Put - CBOT U.S. Treasury 5-Year Note March 2019 Futures		107.250		02/22/2019		18		18		0		0
Put - CBOT U.S. Treasury Ultra Long-Term Bond March 2019 Futures		119.000		02/22/2019		23		23		0		0
Total Purchased Options									$	1	$	0

18 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

FUTURES CONTRACTS:

LONG FUTURES CONTRACTS

Description	Expiration Month		# of Contracts		Notional Amount		Unrealized Appreciation/ (Depreciation)		Variation Margin
									Asset		Liability
90-Day Eurodollar March Futures		03/2019		361	$	87,804	$	10	$	0	$	0
Australia Government 3-Year Note March Futures		03/2019		57		4,505		16		6		0
Australia Government 10-Year Bond March Futures		03/2019		6		561		6		3		0
Canada Government 10-Year Bond March Futures		03/2019		1		100		3		0		0
Euro-Bobl March Futures		03/2019		34		5,162		10		0		(1	)
Euro-Bund 10-Year Bond March Futures		03/2019		4		750		9		0		(1	)
Euro-Buxl 30-Year Bond March Futures		03/2019		3		621		14		0		(2	)
Euro-Schatz March Futures		03/2019		12		1,539		1		0		0
Japan Government 10-Year Bond March Futures		03/2019		1		1,391		10		1		(1	)
U.S. Treasury 5-Year Note March Futures		03/2019		83		9,519		152		21		0
U.S. Treasury 10-Year Note March Futures		03/2019		55		6,711		138		21		0
U.S. Treasury Ultra Long-Term Bond March Futures		03/2019		26		4,177		217		15		0
United Kingdom 90-Day LIBOR Sterling Interest Rate September Futures		09/2019		209		32,948		28		2		(5	)
							$	614	$	69	$	(10	)

SHORT FUTURES CONTRACTS

Description	Expiration Month		# of Contracts		Notional Amount			Unrealized Appreciation/ (Depreciation)			Variation Margin
											Asset		Liability
90-Day Eurodollar December Futures		12/2019		47	$	(11,439	)	$	(25	)	$	0	$	(1	)
90-Day Eurodollar December Futures		12/2020		154		(37,549	)		(290	)		0		(14	)
90-Day Eurodollar March Futures		03/2020		160		(38,978	)		(98	)		0		(8	)
Call Options Strike @ EUR 133.000 on Euro-Bobl March 2019 Futures		02/2019		15		(4	)		(1	)		1		0
Call Options Strike @ EUR 164.500 on Euro-Bund 10-Year Bond March 2019 Futures		02/2019		7		(5	)		(2	)		1		0
Euro-BTP Italy Government Bond March Futures		03/2019		15		(2,197	)		(114	)		0		(1	)
Euro-OAT France Government 10-Year Bond March Futures		03/2019		70		(12,095	)		(77	)		17		0
Put Options Strike @ EUR 131.250 on Euro-Bobl March 2019 Futures		02/2019		15		(1	)		2			0		0
Put Options Strike @ EUR 160.000 on Euro-Bund 10-Year Bond March 2019 Futures		02/2019		7		(2	)		2			0		0
United Kingdom 90-Day LIBOR Sterling Interest Rate September Futures		09/2020		209		(32,898	)		(62	)		1		(10	)
United Kingdom Long Gilt March Futures		03/2019		49		(7,693	)		(14	)		8		(25	)
								$	(679	)	$	28	$	(59	)
Total Futures Contracts								$	(65	)	$	97	$	(69	)

SWAP AGREEMENTS:

CREDIT DEFAULT SWAPS ON CORPORATE ISSUES - BUY PROTECTION⁽¹⁾

Reference Entity	Fixed (Pay) Rate	Payment Frequency		Maturity Date		Implied Credit Spread at December 31, 2018(3)			Notional Amount(4)			Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)		Market Value(5)			Variation Margin
																				Asset		Liability
BASF SE	(1.000)%		Quarterly		12/20/2020		0.229	%		EUR	200	$	(6	)	$	3	$	(3	)	$	0	$	0
Reynolds American, Inc.	(1.000)		Quarterly		12/20/2020		0.283			$	400		(11	)		5		(6	)		0		0
United Utilities PLC	(1.000)		Quarterly		12/20/2020		0.292			EUR	300		(5	)		0		(5	)		0		0
												$	(22	)	$	8	$	(14	)	$	0	$	0

CREDIT DEFAULT SWAPS ON CORPORATE ISSUES - SELL PROTECTION⁽²⁾

Reference Entity	Fixed Receive Rate	Payment Frequency		Maturity Date		Implied Credit Spread at December 31, 2018(3)			Notional Amount(4)			Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Market Value(5)			Variation Margin
																					Asset		Liability
Marks & Spencer PLC	1.000%		Quarterly		06/20/2023		2.238	%		EUR	300	$	(9	)	$	(9	)	$	(18	)	$	0	$	(1	)
Shell International Finance BV	1.000		Quarterly		12/20/2026		0.843				200		(6	)		9			3			0		0
												$	(15	)	$	0		$	(15	)	$	0	$	(1	)

CREDIT DEFAULT SWAPS ON CREDIT INDICES - BUY PROTECTION⁽¹⁾

Index/Tranches	Fixed (Pay) Rate			Payment Frequency		Maturity Date		Notional Amount(4)			Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Market Value(5)			Variation Margin
																				Asset		Liability
iTraxx Europe Main 26 5-Year Index		(1.000	)%		Quarterly		12/20/2021		EUR	1,300	$	(18	)	$	(6	)	$	(24	)	$	0	$	(2	)
iTraxx Europe Main 28 5-Year Index		(1.000	)		Quarterly		12/20/2022			8,800		(249	)		115			(134	)		0		(17	)
iTraxx Europe Senior 30 5-Year Index		(1.000	)		Quarterly		12/20/2023			2,500		5			7			12			0		(9	)
											$	(262	)	$	116		$	(146	)	$	0	$	(28	)

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 19

Schedule of Investments PIMCO Global Core Bond (Hedged) Portfolio (Cont.)

CREDIT DEFAULT SWAPS ON CREDIT INDICES - SELL PROTECTION⁽²⁾

Index/Tranches	Fixed Receive Rate	Payment Frequency		Maturity Date		Notional Amount(4)			Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Market Value(5)			Variation Margin
																		Asset		Liability
CDX.EM-30 5-Year Index	1.000%		Quarterly		12/20/2023		$	800	$	(38	)	$	1		$	(37	)	$	1	$	0
CDX.IG-31 5-Year Index	1.000		Quarterly		12/20/2023			2,500		46			(31	)		15			1		0
iTraxx Europe Main 30 5-Year Index	1.000		Quarterly		12/20/2023		EUR	900		17			(11	)		6			1		0
									$	25		$	(41	)	$	(16	)	$	3	$	0

INTEREST RATE SWAPS - BASIS SWAPS

Pay Floating Rate Index	Receive Floating Rate Index	Payment Frequency	Maturity Date		Notional Amount		Premiums Paid/(Received)		Unrealized Appreciation/ (Depreciation)			Market Value			Variation Margin
															Asset		Liability
3-Month USD-LIBOR(6)	1-Month USD-LIBOR  + 0.117%	Quarterly		03/02/2020	$	5,000	$	0	$	1		$	1		$	0	$	0
3-Month USD-LIBOR(6)	1-Month USD-LIBOR + 0.084%	Quarterly		04/26/2022		6,900		0		(1	)		(1	)		0		(1	)
3-Month USD-LIBOR	1-Month USD-LIBOR + 0.084%	Quarterly		06/12/2022		1,200		0		1			1			0		0
3-Month USD-LIBOR	1-Month USD-LIBOR + 0.070%	Quarterly		06/12/2022		900		0		1			1			0		0
3-Month USD-LIBOR	1-Month USD-LIBOR + 0.085%	Quarterly		06/19/2022		4,700		0		5			5			1		0
3-Month USD-LIBOR(6)	1-Month USD-LIBOR + 0.073%	Quarterly		04/27/2023		3,600		0		0			0			0		0
							$	0	$	7		$	7		$	1	$	(1	)

INTEREST RATE SWAPS

Pay/Receive Floating Rate	Floating Rate Index	Fixed Rate			Payment Frequency	Maturity Date		Notional Amount		Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Market Value			Variation Margin
																			Asset		Liability
Receive	1-Day USD-Federal Funds Rate Compounded-OIS		2.673	%	Annual		04/30/2025	$	200	$	0		$	(5	)	$	(5	)	$	0	$	(1	)
Receive	1-Day USD-Federal Funds Rate Compounded-OIS		2.683		Annual		04/30/2025		800		0			(21	)		(21	)		0		(2	)
Receive	1-Day USD-Federal Funds Rate Compounded-OIS		2.684		Annual		04/30/2025		300		0			(8	)		(8	)		0		(1	)
Receive	1-Day USD-Federal Funds Rate Compounded-OIS		2.696		Annual		04/30/2025		200		0			(6	)		(6	)		0		(1	)
Receive	1-Day USD-Federal Funds Rate Compounded-OIS		2.710		Annual		04/30/2025		300		0			(9	)		(9	)		0		(1	)
Receive	1-Day USD-Federal Funds Rate Compounded-OIS		2.714		Annual		04/30/2025		400		0			(12	)		(12	)		0		(1	)
Pay	1-Year  BRL-CDI		8.880		Maturity		01/04/2021	BRL	200		0			2			2			0		0
Pay	3-Month CAD-Bank Bill		2.300		Semi-Annual		07/16/2020	CAD	7,500		(11	)		22			11			2		0
Receive	3-Month CAD-Bank Bill		2.200		Semi-Annual		06/16/2026		1,800		(47	)		63			16			0		(1	)
Receive	3-Month CAD-Bank Bill		1.850		Semi-Annual		09/15/2027		300		16			(6	)		10			0		0
Pay	3-Month CAD-Bank Bill		2.750		Semi-Annual		12/18/2048		900		(9	)		19			10			0		(5	)
Pay(6)	3-Month  NZD-BBR		2.500		Semi-Annual		02/14/2020	NZD	950		1			2			3			0		0
Pay(6)	3-Month  USD-LIBOR		3.200		Semi-Annual		04/01/2020	$	96,500		7			227			234			3		0
Receive	3-Month  USD-LIBOR		1.750		Semi-Annual		06/20/2020		8,900		174			(46	)		128			0		0
Receive	3-Month  USD-LIBOR		2.750		Semi-Annual		12/19/2020		1,700		10			(12	)		(2	)		0		0
Receive(6)	3-Month  USD-LIBOR		3.200		Semi-Annual		04/01/2021		96,500		0			(325	)		(325	)		0		(13	)
Pay	3-Month  USD-LIBOR		2.750		Semi-Annual		12/19/2023		1,000		(16	)		24			8			2		0
Receive	3-Month  USD-LIBOR		2.959		Semi-Annual		05/31/2025		500		0			(11	)		(11	)		0		(1	)
Receive	3-Month  USD-LIBOR		2.986		Semi-Annual		05/31/2025		500		0			(11	)		(11	)		0		(1	)
Receive	3-Month  USD-LIBOR		1.750		Semi-Annual		12/21/2026		700		(6	)		52			46			0		(2	)
Receive	3-Month  USD-LIBOR		2.250		Semi-Annual		06/20/2028		2,100		139			(60	)		79			0		(8	)
Pay	3-Month  USD-LIBOR		3.000		Semi-Annual		12/19/2028		200		(4	)		9			5			1		0
Receive(6)	3-Month  USD-LIBOR		3.000		Semi-Annual		06/19/2029		2,900		(36	)		(35	)		(71	)		0		(13	)
Receive	3-Month  USD-LIBOR		2.750		Semi-Annual		12/20/2047		1,300		(39	)		69			30			0		(7	)
Receive	3-Month  USD-LIBOR		2.500		Semi-Annual		06/20/2048		1,100		120			(37	)		83			0		(6	)
Receive	3-Month  USD-LIBOR		3.000		Semi-Annual		12/19/2048		1,300		36			(73	)		(37	)		0		(8	)
Pay	3-Month  ZAR-JIBAR		7.250		Quarterly		06/20/2023	ZAR	2,900		1			(4	)		(3	)		0		0
Pay(6)	6-Month  EUR-EURIBOR		0.000		Annual		03/20/2021	EUR	4,000		2			12			14			0		0
Pay(6)	6-Month  EUR-EURIBOR		0.500		Annual		03/20/2024		8,700		24			104			128			7		0
Pay(6)	6-Month  EUR-EURIBOR		0.500		Annual		06/19/2024		4,300		23			25			48			4		0
Pay(6)	6-Month  EUR-EURIBOR		1.000		Annual		03/20/2029		4,150		(22	)		92			70			6		0
Pay(6)	6-Month  EUR-EURIBOR		1.000		Annual		06/19/2029		6,500		17			54			71			10		0
Receive(6)	6-Month  EUR-EURIBOR		1.500		Annual		03/20/2049		1,100		25			(60	)		(35	)		0		(1	)
Pay(6)	6-Month  GBP-LIBOR		1.250		Annual		09/18/2020	GBP	9,600		(1	)		16			15			0		(1	)
Pay(6)	6-Month  GBP-LIBOR		1.500		Annual		12/18/2020		8,100		23			11			34			0		0
Pay(6)	6-Month  GBP-LIBOR		1.000		Semi-Annual		03/20/2021		2,000		(13	)		3			(10	)		0		0
Receive(6)	6-Month  GBP-LIBOR		1.500		Annual		09/16/2021		9,600		(6	)		(24	)		(30	)		0		(4	)
Receive(6)	6-Month  GBP-LIBOR		1.500		Annual		12/16/2021		8,100		(4	)		(20	)		(24	)		0		(4	)

20 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

Pay/Receive Floating Rate	Floating Rate Index	Fixed Rate			Payment Frequency	Maturity Date		Notional Amount		Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Market Value			Variation Margin
																			Asset		Liability
Receive(6)	6-Month  GBP-LIBOR		1.500	%	Semi-Annual		03/20/2024	GBP	1,600	$	(1	)	$	(17	)	$	(18	)	$	0	$	(3	)
Pay(6)	6-Month  GBP-LIBOR		1.500		Semi-Annual		03/20/2029		100		(1	)		2			1			1		0
Pay(6)	6-Month  GBP-LIBOR		1.500		Semi-Annual		06/19/2029		600		5			(2	)		3			3		0
Pay(6)	6-Month  GBP-LIBOR		1.750		Semi-Annual		03/20/2049		200		1			12			13			2		0
Receive	6-Month  JPY-LIBOR		0.500		Semi-Annual		09/18/2020	JPY	140,000		30			(43	)		(13	)		0		0
Pay(6)	6-Month  JPY-LIBOR		0.100		Semi-Annual		03/20/2024		750,000		(22	)		47			25			1		0
Receive(6)	6-Month  JPY-LIBOR		0.450		Semi-Annual		03/20/2029		299,000		(22	)		(49	)		(71	)		0		(1	)
Receive	6-Month  JPY-LIBOR		0.750		Semi-Annual		12/20/2038		143,969		19			(71	)		(52	)		0		(1	)
Receive	6-Month  JPY-LIBOR		1.500		Semi-Annual		12/21/2045		60,000		(189	)		75			(114	)		0		(1	)
Pay	28-Day  MXN-TIIE		5.825		Lunar		01/12/2023	MXN	6,700		(30	)		(3	)		(33	)		1		0
										$	194		$	(28	)	$	166		$	43	$	(88	)
Total Swap Agreements										$	(80	)	$	62		$	(18	)	$	47	$	(118	)

FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED SUMMARY

The following is a summary of the market value and variation margin of Exchange-Traded or Centrally Cleared Financial Derivative Instruments as of December 31, 2018:

	Financial Derivative Assets								Financial Derivative Liabilities
	Market Value		Variation Margin Asset				Total		Market Value		Variation Margin Liability						Total
	Purchased Options		Futures		Swap Agreements				Written Options		Futures			Swap Agreements
Total Exchange-Traded or Centrally Cleared	$	0	$	97	$	47	$	144	$	0	$	(69	)	$	(118	)	$	(187	)

(m) Securities with an aggregate market value of $271 and cash of $1,701 have been pledged as collateral for exchange-traded and centrally cleared financial derivative instruments as of December 31, 2018. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information regarding master netting arrangements.

⁽¹⁾ If the Portfolio is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽²⁾ If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽³⁾ Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate or sovereign issues as of period end serve as indicators of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

⁽⁴⁾ The maximum potential amount the Portfolio could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

⁽⁵⁾ The prices and resulting values for credit default swap agreements serve as indicators of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced indices’ credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

⁽⁶⁾ This instrument has a forward starting effective date. See Note 2, Securities Transactions and Investment Income, in the Notes to Financial Statements for further information.

(n)  FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER

FORWARD FOREIGN CURRENCY CONTRACTS:

Counterparty	Settlement Month		Currency to be Delivered		Currency to be Received		Unrealized Appreciation/ (Depreciation)
							Asset		Liability
BOA		01/2019	CAD	6,976	$	5,239	$	128	$	0
		01/2019	DKK	20,800		3,306		114		0
		01/2019	EUR	14,631		16,703		0		(71	)
		01/2019	GBP	220		281		1		0
		01/2019	SEK	42,155		4,658		0		(101	)
		01/2019	$	20	ARS	812		1		0
		01/2019		3,059	DKK	20,095		25		0
		04/2019	DKK	20,095	$	3,084		0		(25	)
BPS		01/2019	BRL	158		41		0		0

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 21

Schedule of Investments PIMCO Global Core Bond (Hedged) Portfolio (Cont.)

Counterparty	Settlement Month		Currency to be Delivered		Currency to be Received		Unrealized Appreciation/ (Depreciation)
							Asset		Liability
		01/2019	CAD	75	$	55	$	0	$	0
		01/2019	KRW	1,119		1		0		0
		01/2019	$	41	BRL	158		0		0
		01/2019		247	GBP	197		4		0
		01/2019		242	KRW	273,104		3		0
		01/2019		122	NZD	179		0		(2	)
		03/2019	KRW	273,104	$	243		0		(3	)
		04/2019	CNH	634		91		0		(1	)
		04/2019	$	220	CNH	1,515		1		0
		07/2019		225		1,529		0		(2	)
BRC		01/2019		188	NOK	1,603		0		(3	)
		02/2019	RON	289	$	70		0		(1	)
CBK		01/2019	BRL	1,053		270		0		(2	)
		01/2019	EUR	9,625		10,986		0		(50	)
		01/2019	GBP	119		152		0		0
		01/2019	JPY	23,700		214		0		(2	)
		01/2019	MXN	861		42		0		(2	)
		01/2019	NOK	355		41		0		0
		01/2019	SEK	3,450		384		0		(6	)
		01/2019	$	161	AUD	224		0		(3	)
		01/2019		272	BRL	1,053		0		0
		01/2019		94	EUR	82		0		0
		01/2019		124	SEK	1,114		2		0
		02/2019	CNH	1,989	$	286		0		(3	)
		02/2019	EUR	403		510		47		0
		02/2019	JPY	70,000		624		0		(17	)
		02/2019	$	309	COP	987,390		0		(6	)
		03/2019	KRW	892,968	$	797		0		(7	)
		05/2019	EUR	250		292		2		0
		06/2019	GBP	124		166		7		0
		06/2019	$	6,499	EUR	5,573		0		(22	)
		07/2019	CNH	769	$	114		2		0
		07/2019	$	83	CNH	570		0		0
DUB		01/2019	BRL	1,701	$	440		2		0
		01/2019	$	440	BRL	1,701		0		(1	)
		01/2019		314	EUR	250		0		(27	)
		02/2019	BRL	1,701	$	439		1		0
		03/2019		605		158		3		0
		03/2019	$	134	MXN	2,875		11		0
		04/2019	SEK	474	EUR	46		0		(1	)
GLM		01/2019	BRL	4	$	1		0		0
		01/2019	CAD	164		123		2		0
		01/2019	CHF	182		184		0		(1	)
		01/2019	EUR	1,648		1,876		0		(13	)
		01/2019	GBP	5,102		6,524		19		0
		01/2019	JPY	130,000		1,155		0		(32	)
		01/2019	NZD	89		61		1		0
		01/2019	SEK	556		62		0		(1	)
		01/2019	$	537	AUD	748		0		(11	)
		01/2019		1	BRL	4		0		0
		01/2019		245	CAD	328		0		(5	)
		01/2019		121	DKK	770		0		(3	)
		01/2019		366	EUR	320		1		0
		01/2019		111	GBP	88		1		0
		01/2019		158	MXN	3,240		7		0
		01/2019		319	NOK	2,757		0		0
		01/2019		455	SEK	4,090		7		0
		02/2019		2	CLP	1,156		0		0
		02/2019		286	CNH	1,987		3		0
		03/2019	JPY	310,000	$	2,760		0		(83	)
		03/2019	$	105	KRW	116,160		0		0
HUS		01/2019	CAD	201	$	150		3		0
		01/2019	DKK	165		25		0		0
		01/2019	EUR	261		314		14		0
		01/2019	GBP	66		83		0		(1	)
		01/2019	JPY	10,000		89		0		(2	)
		01/2019	KRW	85,120		76		0		0
		01/2019	NOK	1,180		137		1		0
		01/2019	PLN	890		242		4		0

22 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

Counterparty	Settlement Month		Currency to be Delivered		Currency to be Received		Unrealized Appreciation/ (Depreciation)
							Asset		Liability
		01/2019	$	515	AUD	713	$	0	$	(13	)
		01/2019		416	CAD	552		0		(12	)
		01/2019		90	EUR	79		1		0
		01/2019		59	GBP	47		1		0
		03/2019	BRL	202	$	60		8		0
		03/2019	$	123	KRW	137,686		1		0
		03/2019		60	MXN	1,182		0		(1	)
		04/2019		285	CNH	1,974		3		0
		05/2019		301	EUR	249		0		(12	)
		07/2019	CNH	4,604	$	675		5		0
		07/2019	$	598	CNH	4,106		0		(1	)
IND		01/2019	JPY	278,900	$	2,460		0		(85	)
		04/2019	CNH	693		100		0		(1	)
JPM		01/2019	AUD	1,015		739		24		0
		01/2019	CAD	164		120		0		0
		01/2019	CHF	239		241		0		(2	)
		01/2019	EUR	208		237		0		(1	)
		01/2019	GBP	168		213		0		(2	)
		01/2019	JPY	14,200		126		0		(4	)
		01/2019	KRW	186,865		167		0		(1	)
		01/2019	NOK	2,103		240		0		(3	)
		01/2019	$	3	ARS	131		0		0
		01/2019		180	AUD	256		0		0
		01/2019		278	EUR	243		1		0
		01/2019		115	GBP	92		2		0
		01/2019		461	MXN	9,403		16		0
		01/2019		61	NZD	91		0		0
		01/2019		368	SEK	3,318		7		0
		03/2019		80	KRW	89,580		1		0
		04/2019	EUR	90	SEK	923		1		0
		07/2019	CNH	303	$	44		0		0
MSB		04/2019	$	353	CNH	2,427		0		0
		07/2019	CNH	529	$	77		0		0
MYI		01/2019	AUD	85		61		1		0
		01/2019	EUR	5,611		6,417		0		(18	)
		01/2019	JPY	27,795		247		0		(7	)
		01/2019	NZD	435		298		6		0
		01/2019	SEK	2,227		246		0		(5	)
		06/2021	$	8	EUR	6		0		0
NGF		04/2019	CNH	851	$	123		0		(1	)
RBC		01/2019	EUR	500		570		0		(4	)
RYL		04/2019	SEK	655	EUR	63		0		(2	)
SCX		01/2019	JPY	30,000	$	266		0		(8	)
		01/2019	$	61	JPY	6,927		2		0
		04/2019	CNH	2,235	$	322		0		(4	)
		04/2019	$	240	CNH	1,654		1		0
SOG		01/2019		543	RUB	35,956		0		(28	)
		02/2019	RON	862	EUR	184		0		0
		02/2019	$	88	RUB	5,888		0		(4	)
SSB		03/2019	TWD	4,453	$	146		0		(1	)
UAG		01/2019	EUR	9,631		10,985		0		(57	)
		01/2019	NOK	42		5		0		0
Total Forward Foreign Currency Contracts							$	498	$	(787	)

PURCHASED OPTIONS:

FOREIGN CURRENCY OPTIONS

Counterparty	Description	Strike Price			Expiration Date		Notional Amount			Cost		Market Value
BRC	Call - OTC EUR versus USD	$		1.308		09/22/2021		EUR	100	$	6	$	4
	Put - OTC EUR versus USD			1.308		09/22/2021			100		7		10
GLM	Call - OTC USD versus CNH		CNH	7.110		02/11/2019	$		600		3		1
MSB	Call - OTC EUR versus USD	$		1.291		06/24/2021		EUR	92		6		3
	Put - OTC EUR versus USD			1.291		06/24/2021			92		7		8
Total Purchased Options										$	29	$	26

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 23

Schedule of Investments PIMCO Global Core Bond (Hedged) Portfolio (Cont.)

WRITTEN OPTIONS:

CREDIT DEFAULT SWAPTIONS ON CREDIT INDICES

Counterparty	Description	Buy/Sell Protection	Exercise Rate	Expiration Date		Notional Amount		Premiums (Received)			Market Value
BOA	Put - OTC CDX.IG-31 5-Year Index	Sell	0.900%		01/16/2019	$	200	$	0		$	0
	Put - OTC CDX.IG-31 5-Year Index	Sell	0.950		02/20/2019		200		(1	)		(1	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.000		02/20/2019		300		(1	)		(1	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.000		03/20/2019		300		(1	)		(1	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.200		03/20/2019		200		0			0
BPS	Put - OTC CDX.IG-31 5-Year Index	Sell	1.000		02/20/2019		200		0			0
BRC	Put - OTC CDX.IG-31 5-Year Index	Sell	1.000		01/16/2019		300		0			0
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.050		02/20/2019		200		0			0
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.100		03/20/2019		100		0			0
CBK	Put - OTC CDX.IG-31 5-Year Index	Sell	0.950		01/16/2019		200		0			0
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.000		01/16/2019		1,300		(1	)		(1	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	0.950		02/20/2019		400		(1	)		(1	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.050		02/20/2019		100		0			0
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.050		03/20/2019		200		0			(1	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.100		03/20/2019		200		(1	)		0
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.200		03/20/2019		300		0			(1	)
GST	Put - OTC CDX.IG-31 5-Year Index	Sell	0.900		01/16/2019		200		0			0
	Put - OTC CDX.IG-31 5-Year Index	Sell	2.400		09/18/2019		300		(1	)		(1	)
	Put - OTC iTraxx Europe 30 5-Year Index	Sell	2.400		09/18/2019	EUR	300		(1	)		0
JPM	Put - OTC CDX.IG-31 5-Year Index	Sell	0.950		02/20/2019	$	200		0			(1	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.200		03/20/2019		100		0			0
MYC	Put - OTC CDX.IG-31 5-Year Index	Sell	0.900		01/16/2019		300		(1	)		(1	)
								$	(9	)	$	(10	)

FOREIGN CURRENCY OPTIONS

Counterparty	Description	Strike Price			Expiration Date		Notional Amount			Premiums (Received)			Market Value
CBK	Put - OTC GBP versus USD	$		1.315		06/14/2019		GBP	354	$	(11	)	$	(21	)
	Call - OTC GBP versus USD			1.440		06/14/2019			357		(5	)		(2	)
GLM	Put - OTC USD versus CNH		CNH	6.840		02/11/2019	$		600		(4	)		(3	)
										$	(20	)	$	(26	)
Total Written Options										$	(29	)	$	(36	)

SWAP AGREEMENTS:

CREDIT DEFAULT SWAPS ON SOVEREIGN ISSUES - BUY PROTECTION⁽¹⁾

Counterparty	Reference Entity	Fixed (Pay) Rate			Payment Frequency		Maturity Date		Implied Credit Spread at December 31, 2018(3)			Notional Amount(4)		Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Swap Agreements, at Value(5)
																				Asset		Liability
BPS	Japan Government International Bond		(1.000	)%		Quarterly		06/20/2022		0.154	%	$	500	$	(18	)	$	4		$	0	$	(14	)
	South Korea Government International Bond		(1.000	)		Quarterly		06/20/2023		0.346			400		(10	)		(1	)		0		(11	)
BRC	China Government International Bond		(1.000	)		Quarterly		06/20/2023		0.614			200		(4	)		1			0		(3	)
	Japan Government International Bond		(1.000	)		Quarterly		06/20/2022		0.154			400		(14	)		2			0		(12	)
	South Korea Government International Bond		(1.000	)		Quarterly		06/20/2023		0.346			500		(12	)		(2	)		0		(14	)
CBK	Japan Government International Bond		(1.000	)		Quarterly		06/20/2022		0.154			100		(3	)		0			0		(3	)
GST	China Government International Bond		(1.000	)		Quarterly		06/20/2023		0.614			300		(6	)		1			0		(5	)
	Japan Government International Bond		(1.000	)		Quarterly		06/20/2022		0.154			400		(14	)		3			0		(11	)
HUS	South Korea Government International Bond		(1.000	)		Quarterly		06/20/2023		0.346			200		(5	)		(1	)		0		(6	)
JPM	South Korea Government International Bond		(1.000	)		Quarterly		06/20/2023		0.346			200		(5	)		(1	)		0		(6	)
														$	(91	)	$	6		$	0	$	(85	)

24 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

CREDIT DEFAULT SWAPS ON CORPORATE AND SOVEREIGN ISSUES - SELL PROTECTION⁽²⁾

Counterparty	Reference Entity	Fixed Receive Rate			Payment Frequency		Maturity Date		Implied Credit Spread at December 31, 2018(3)			Notional Amount(4)			Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)		Swap Agreements, at Value(5)
																				Asset		Liability
JPM	AP Moller - Maersk		1.000	%		Quarterly		06/20/2022		0.756	%		EUR	200	$	(1	)	$	3	$	2	$	0
	South Africa Government International Bond		1.000			Quarterly		06/20/2023		2.113		$		100		(5	)		0		0		(5	)
	South Africa Government International Bond		1.000			Quarterly		12/20/2023		2.227				100		(5	)		0		0		(5	)
NGF	South Africa Government International Bond		1.000			Quarterly		12/20/2023		2.227				100		(6	)		1		0		(5	)
															$	(17	)	$	4	$	2	$	(15	)

CROSS-CURRENCY SWAPS

Counterparty	Receive	Pay	Payment Frequency		Maturity Date(6)		Notional Amount of Currency Received		Notional Amount of Currency Delivered		Premiums Paid/(Received)		Unrealized Appreciation/ (Depreciation)			Swap Agreements, at Value
																Asset		Liability
CBK	Floating rate equal to 3-Month EUR-LIBOR less 0.27% based on the notional amount of currency received	Floating rate equal to 3-Month USD-LIBOR based on the notional amount of currency delivered		Maturity		06/19/2019	EUR	700	$	794	$	13	$	(6	)	$	7	$	0
DUB	Floating rate equal to 3-Month GBP-LIBOR less 0.055% based on the notional amount of currency received	Floating rate equal to 3-Month USD-LIBOR based on the notional amount of currency delivered		Maturity		10/13/2026	GBP	200		244		0		7			7		0
GLM	Floating rate equal to 3-Month EUR-LIBOR less 0.283% based on the notional amount of currency received	Floating rate equal to 3-Month USD-LIBOR based on the notional amount of currency delivered		Maturity		06/19/2019	EUR	4,200		4,762		70		(30	)		40		0
	Floating rate equal to 3-Month EUR-LIBOR less 0.299% based on the notional amount of currency received	Floating rate equal to 3-Month USD-LIBOR based on the notional amount of currency delivered		Maturity		06/19/2019		3,600		4,082		79		(45	)		34		0
MYC	Floating rate equal to 3-Month EUR-LIBOR less 0.27% based on the notional amount of currency received	Floating rate equal to 3-Month USD-LIBOR based on the notional amount of currency delivered		Maturity		06/19/2019		5,500		6,236		98		(46	)		52		0
RYL	Floating rate equal to 3-Month GBP-LIBOR less 0.055% based on the notional amount of currency received	Floating rate equal to 3-Month USD-LIBOR based on the notional amount of currency delivered		Maturity		10/13/2026	GBP	200		244		6		1			7		0
TOR	Floating rate equal to 3-Month EUR-LIBOR less 0.265% based on the notional amount of currency received	Floating rate equal to 3-Month USD-LIBOR based on the notional amount of currency delivered		Maturity		06/19/2019	EUR	5,600		6,350		89		(36	)		53		0
											$	355	$	(155	)	$	200	$	0

INTEREST RATE SWAPS

Counterparty	Pay/Receive Floating Rate	Floating Rate Index	Fixed Rate			Payment Frequency	Maturity Date		Notional Amount			Premiums Paid/(Received)		Unrealized Appreciation/ (Depreciation)			Swap Agreements, at Value
																	Asset		Liability
BPS	Receive	3-Month KRW-KORIBOR		2.030	%	Quarterly		07/10/2027		KRW	1,063,600	$	0	$	(18	)	$	0	$	(18	)
CBK	Receive	3-Month KRW-KORIBOR		1.995		Quarterly		07/10/2027			1,105,500		0		(16	)		0		(16	)
												$	0	$	(34	)	$	0	$	(34	)
Total Swap Agreements												$	247	$	(179	)	$	202	$	(134	)

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 25

Schedule of Investments PIMCO Global Core Bond (Hedged) Portfolio (Cont.)

FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER SUMMARY

The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral pledged/(received) as of December 31, 2018:

	Financial Derivative Assets								Financial Derivative Liabilities
Counterparty	Forward Foreign Currency Contracts		Purchased Options		Swap Agreements		Total Over the Counter		Forward Foreign Currency Contracts			Written Options			Swap Agreements			Total Over the Counter			Net Market Value of OTC Derivatives			Collateral Pledged/ (Received)			Net Exposure(7)
BOA	$	269	$	0	$	0	$	269	$	(197	)	$	(3	)	$	0		$	(200	)	$	69		$	(20	)	$	49
BPS		8		0		0		8		(8	)		0			(43	)		(51	)		(43	)		0			(43	)
BRC		0		14		0		14		(4	)		0			(29	)		(33	)		(19	)		0			(19	)
CBK		60		0		7		67		(120	)		(27	)		(19	)		(166	)		(99	)		0			(99	)
DUB		17		0		7		24		(29	)		0			0			(29	)		(5	)		0			(5	)
GLM		41		1		74		116		(149	)		(3	)		0			(152	)		(36	)		0			(36	)
GST		0		0		0		0		0			(1	)		(16	)		(17	)		(17	)		0			(17	)
HUS		41		0		0		41		(42	)		0			(6	)		(48	)		(7	)		0			(7	)
IND		0		0		0		0		(86	)		0			0			(86	)		(86	)		0			(86	)
JPM		52		0		2		54		(13	)		(1	)		(16	)		(30	)		24			0			24
MSB		0		11		0		11		0			0			0			0			11			15			26
MYC		0		0		52		52		0			(1	)		0			(1	)		51			0			51
MYI		7		0		0		7		(30	)		0			0			(30	)		(23	)		0			(23	)
NGF		0		0		0		0		(1	)		0			(5	)		(6	)		(6	)		0			(6	)
RBC		0		0		0		0		(4	)		0			0			(4	)		(4	)		0			(4	)
RYL		0		0		7		7		(2	)		0			0			(2	)		5			(5	)		0
SCX		3		0		0		3		(12	)		0			0			(12	)		(9	)		0			(9	)
SOG		0		0		0		0		(32	)		0			0			(32	)		(32	)		0			(32	)
SSB		0		0		0		0		(1	)		0			0			(1	)		(1	)		0			(1	)
TOR		0		0		53		53		0			0			0			0			53			0			53
UAG		0		0		0		0		(57	)		0			0			(57	)		(57	)		0			(57	)
Total Over the Counter	$	498	$	26	$	202	$	726	$	(787	)	$	(36	)	$	(134	)	$	(957	)

(o) Securities with an aggregate market value of $15 have been pledged as collateral for financial derivative instruments as governed by International Swaps and Derivatives Association, Inc. master agreements as of December 31, 2018.

⁽¹⁾ If the Portfolio is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽²⁾ If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽³⁾ Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate or sovereign issues as of period end serve as indicators of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

⁽⁴⁾ The maximum potential amount the Portfolio could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

⁽⁵⁾ The prices and resulting values for credit default swap agreements serve as indicators of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced indices’ credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

⁽⁶⁾ At the maturity date, the notional amount of the currency received will be exchanged back for the notional amount of the currency delivered.

⁽⁷⁾ Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information regarding master netting arrangements.

26 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

FAIR VALUE OF FINANCIAL DERIVATIVE INSTRUMENTS

The following is a summary of the fair valuation of the Portfolio’s derivative instruments categorized by risk exposure. See Note 7, Principal Risks, in the Notes to Financial Statements on risks of the Portfolio.

Fair Values of Financial Derivative Instruments on the Statement of Assets and Liabilities as of December 31, 2018:

	Derivatives not accounted for as hedging instruments
	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Exchange Contracts		Interest Rate Contracts		Total
Financial Derivative Instruments - Assets
Exchange-traded or centrally cleared
Futures	$	0	$	0	$	0	$	0	$	97	$	97
Swap Agreements		0		3		0		0		44		47
	$	0	$	3	$	0	$	0	$	141	$	144
Over the counter
Forward Foreign Currency Contracts	$	0	$	0	$	0	$	498	$	0	$	498
Purchased Options		0		0		0		26		0		26
Swap Agreements		0		2		0		200		0		202
	$	0	$	2	$	0	$	724	$	0	$	726
	$	0	$	5	$	0	$	724	$	141	$	870
Financial Derivative Instruments - Liabilities
Exchange-traded or centrally cleared
Futures	$	0	$	0	$	0	$	0	$	69	$	69
Swap Agreements		0		29		0		0		89		118
	$	0	$	29	$	0	$	0	$	158	$	187
Over the counter
Forward Foreign Currency Contracts	$	0	$	0	$	0	$	787	$	0	$	787
Written Options		0		10		0		26		0		36
Swap Agreements		0		100		0		0		34		134
	$	0	$	110	$	0	$	813	$	34	$	957
	$	0	$	139	$	0	$	813	$	192	$	1,144

The effect of Financial Derivative Instruments on the Statement of Operations for the period ended December 31, 2018:

	Derivatives not accounted for as hedging instruments
	Commodity Contracts		Credit Contracts			Equity Contracts		Foreign Exchange Contracts			Interest Rate Contracts			Total
Net Realized Gain (Loss) on Financial Derivative Instruments
Exchange-traded or centrally cleared
Purchased Options	$	0	$	0		$	0	$	0		$	9		$	9
Written Options		0		0			0		0			21			21
Futures		0		0			0		0			(1,029	)		(1,029	)
Swap Agreements		0		(198	)		0		0			1,464			1,266
	$	0	$	(198	)	$	0	$	0		$	465		$	267
Over the counter
Forward Foreign Currency Contracts	$	0	$	0		$	0	$	1,347		$	0		$	1,347
Purchased Options		0		0			0		(1	)		(27	)		(28	)
Written Options		0		16			0		152			7			175
Swap Agreements		0		(22	)		0		1,308			(8	)		1,278
	$	0	$	(6	)	$	0	$	2,806		$	(28	)	$	2,772
	$	0	$	(204	)	$	0	$	2,806		$	437		$	3,039
Net Change in Unrealized Appreciation (Depreciation) on Financial Derivative Instruments
Exchange-traded or centrally cleared
Purchased Options	$	0	$	0		$	0	$	0		$	(3	)	$	(3	)
Written Options		0		0			0		0			(6	)		(6	)
Futures		0		0			0		0			3			3
Swap Agreements		0		204			0		0			(199	)		5
	$	0	$	204		$	0	$	0		$	(205	)	$	(1	)
Over the counter
Forward Foreign Currency Contracts	$	0	$	0		$	0	$	1,239		$	0		$	1,239
Purchased Options		0		0			0		4			28			32
Written Options		0		(2	)		0		(29	)		(3	)		(34	)
Swap Agreements		0		25			0		(1,070	)		(64	)		(1,109	)
	$	0	$	23		$	0	$	144		$	(39	)	$	128
	$	0	$	227		$	0	$	144		$	(244	)	$	127

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 27

Schedule of Investments PIMCO Global Core Bond (Hedged) Portfolio (Cont.)

December 31, 2018

FAIR VALUE MEASUREMENTS

The following is a summary of the fair valuations according to the inputs used as of December 31, 2018 in valuing the Portfolio’s assets and liabilities:

Category and Subcategory	Level 1		Level 2		Level 3		Fair Value at 12/31/2018
Investments in Securities, at Value
Argentina
Sovereign Issues	$	0	$	125	$	0	$	125
Australia
Corporate Bonds & Notes		0		383		0		383
Brazil
Corporate Bonds & Notes		0		650		0		650
Canada
Corporate Bonds & Notes		0		512		0		512
Non-Agency Mortgage-Backed Securities		0		569		0		569
Sovereign Issues		0		5,042		0		5,042
Cayman Islands
Asset-Backed Securities		0		3,354		0		3,354
Corporate Bonds & Notes		0		543		0		543
Denmark
Corporate Bonds & Notes		0		3,103		0		3,103
France
Corporate Bonds & Notes		0		2,445		0		2,445
Sovereign Issues		0		1,435		0		1,435
Germany
Corporate Bonds & Notes		0		901		0		901
Ireland
Asset-Backed Securities		0		342		0		342
Corporate Bonds & Notes		0		498		0		498
Israel
Sovereign Issues		0		196		0		196
Italy
Corporate Bonds & Notes		0		1,133		0		1,133
Non-Agency Mortgage-Backed Securities		0		12		0		12
Sovereign Issues		0		902		0		902
Japan
Corporate Bonds & Notes		0		915		0		915
Sovereign Issues		0		4,664		0		4,664
Kuwait
Sovereign Issues		0		698		0		698
Lithuania
Sovereign Issues		0		212		0		212
Luxembourg
Corporate Bonds & Notes		0		610		0		610
Netherlands
Asset-Backed Securities		0		738		0		738
Corporate Bonds & Notes		0		3,589		0		3,589
Norway
Corporate Bonds & Notes		0		296		0		296
Sovereign Issues		0		135		0		135
Poland
Sovereign Issues		0		244		0		244
Portugal
Corporate Bonds & Notes		0		100		0		100
Qatar
Sovereign Issues		0		1,431		0		1,431
Saudi Arabia
Sovereign Issues		0		2,337		0		2,337
Singapore
Corporate Bonds & Notes		0		293		0		293
Slovenia
Sovereign Issues		0		200		0		200
Spain
Corporate Bonds & Notes		0		1,006		0		1,006
Sovereign Issues		0		1,745		0		1,745

Category and Subcategory	Level 1			Level 2			Level 3		Fair Value at 12/31/2018
Sweden
Corporate Bonds & Notes	$	0		$	4,695		$	0	$	4,695
Switzerland
Corporate Bonds & Notes		0			1,092			0		1,092
United Arab Emirates
Sovereign Issues		0			483			0		483
United Kingdom
Corporate Bonds & Notes		0			7,491			0		7,491
Non-Agency Mortgage-Backed Securities		0			2,245			0		2,245
Preferred Securities		0			45			0		45
Sovereign Issues		0			1,713			0		1,713
United States
Asset-Backed Securities		0			4,548			0		4,548
Corporate Bonds & Notes		0			15,689			0		15,689
Loan Participations and Assignments		0			93			0		93
Non-Agency Mortgage-Backed Securities		0			3,169			0		3,169
U.S. Government Agencies		0			33,627			0		33,627
U.S. Treasury Obligations		0			8,855			0		8,855
Short-Term Instruments
Repurchase Agreements		0			976			0		976
Argentina Treasury Bills		0			94			0		94
France Treasury Bills		0			7,449			0		7,449
Japan Treasury Bills		0			5,110			0		5,110
Netherlands Treasury Bills		0			573			0		573
	$	0		$	139,305		$	0	$	139,305
Investments in Affiliates, at Value
Short-Term Instruments
Central Funds Used for Cash Management Purposes	$	4,231		$	0		$	0	$	4,231
Total Investments	$	4,231		$	139,305		$	0	$	143,536
Short Sales, at Value - Liabilities
Canada
Sovereign Issues		0			(744	)		0		(744	)
Spain
Sovereign Issues		0			(699	)		0		(699	)
	$	0		$	(1,443	)	$	0	$	(1,443	)
Financial Derivative Instruments - Assets
Exchange-traded or centrally cleared		97			47			0		144
Over the counter		0			726			0		726
	$	97		$	773		$	0	$	870
Financial Derivative Instruments - Liabilities
Exchange-traded or centrally cleared		(69	)		(118	)		0		(187	)
Over the counter		0			(957	)		0		(957	)
	$	(69	)	$	(1,075	)	$	0	$	(1,144	)
Total Financial Derivative Instruments	$	28		$	(302	)	$	0	$	(274	)
Totals	$	4,259		$	137,560		$	0	$	141,819

There were no significant transfers into or out of Level 3 during the period ended December 31, 2018.

28 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

Notes to Financial Statements

December 31, 2018

1. ORGANIZATION

PIMCO Variable Insurance Trust (the “Trust”) is a Delaware statutory trust established under a trust instrument dated October 3, 1997. The Trust is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Trust is designed to be used as an investment vehicle by separate accounts of insurance companies that fund variable annuity contracts and variable life insurance policies and by qualified pension and retirement plans. Information presented in these financial statements pertains to the Administrative Class shares of the PIMCO Global Core Bond (Hedged) Portfolio (the “Portfolio”) offered by the Trust. Pacific Investment Management Company LLC (“PIMCO”) serves as the investment adviser (the “Adviser”) for the Portfolio.

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Portfolio is treated as an investment company under the reporting requirements of U.S. GAAP. The functional and reporting currency for the Portfolio is the U.S. dollar. The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

(a) Securities Transactions and Investment Income  Securities transactions are recorded as of the trade date for financial reporting purposes. Securities purchased or sold on a when-issued or delayed-delivery basis may be settled beyond a standard settlement period for the security after the trade date. Realized gains (losses) from securities sold are recorded on the identified cost basis. Dividend income is recorded on the ex-dividend date, except certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Portfolio is informed of the ex-dividend date. Interest income, adjusted for the accretion of discounts and amortization of premiums, is recorded on the accrual basis from settlement date, with the exception of securities with a forward starting effective date, where interest income is recorded on the accrual basis from effective date. For convertible securities, premiums attributable to the conversion feature are not amortized. Estimated tax liabilities on certain foreign securities are recorded on an accrual basis and are reflected as components of interest income or net change in unrealized appreciation (depreciation) on investments on the Statement of Operations, as appropriate. Tax liabilities realized as a result of such

security sales are reflected as a component of net realized gain (loss) on investments on the Statement of Operations. Paydown gains (losses) on mortgage-related and other asset-backed securities, if any, are recorded as components of interest income on the Statement of Operations. Income or short-term capital gain distributions received from registered investment companies, if any, are recorded as dividend income. Long-term capital gain distributions received from registered investment companies, if any, are recorded as realized gains.

Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivable when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is probable.

(b) Foreign Currency Translation  The market values of foreign securities, currency holdings and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the current exchange rates each business day. Purchases and sales of securities and income and expense items denominated in foreign currencies, if any, are translated into U.S. dollars at the exchange rate in effect on the transaction date. The Portfolio does not separately report the effects of changes in foreign exchange rates from changes in market prices on securities held. Such changes are included in net realized gain (loss) and net change in unrealized appreciation (depreciation) from investments on the Statement of Operations. The Portfolio may invest in foreign currency-denominated securities and may engage in foreign currency transactions either on a spot (cash) basis at the rate prevailing in the currency exchange market at the time or through a forward foreign currency contract. Realized foreign exchange gains (losses) arising from sales of spot foreign currencies, currency gains (losses) realized between the trade and settlement dates on securities transactions and the difference between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid are included in net realized gain (loss) on foreign currency transactions on the Statement of Operations. Net unrealized foreign exchange gains (losses) arising from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period are included in net change in unrealized appreciation (depreciation) on foreign currency assets and liabilities on the Statement of Operations.

(c) Distributions to Shareholders  Distributions from net investment income, if any, are declared daily and distributed to shareholders monthly. Net realized capital gains earned by the Portfolio, if any, will be distributed no less frequently than once each year.

ANNUAL REPORT DECEMBER 31, 2018 29

Notes to Financial Statements (Cont.)

Income distributions and capital gain distributions are determined in accordance with income tax regulations which may differ from U.S. GAAP. Differences between tax regulations and U.S. GAAP may cause timing differences between income and capital gain recognition. Further, the character of investment income and capital gains may be different for certain transactions under the two methods of accounting. As a result, income distributions and capital gain distributions declared during a fiscal period may differ significantly from the net investment income (loss) and realized gains (losses) reported on the Portfolio’s annual financial statements presented under U.S. GAAP.

If the Portfolio estimates that a portion of its distribution may be comprised of amounts from sources other than net investment income in accordance with its policies and good accounting practices, the Portfolio will notify shareholders of the estimated composition of such distribution through a Section 19 Notice. For these purposes, the Portfolio estimates the source or sources from which a distribution is paid, to the close of the period as of which it is paid, in reference to its internal accounting records and related accounting practices. If, based on such accounting records and practices, it is estimated that a particular distribution does not include capital gains or paid-in surplus or other capital sources, a Section 19 Notice generally would not be issued. It is important to note that differences exist between the Portfolio’s daily internal accounting records and practices, the Portfolio’s financial statements presented in accordance with U.S. GAAP, and recordkeeping practices under income tax regulations. For instance, the Portfolio’s internal accounting records and practices may take into account, among other factors, tax-related characteristics of certain sources of distributions that differ from treatment under U.S. GAAP. Examples of such differences may include, among others, the treatment of paydowns on mortgage-backed securities purchased at a discount and periodic payments under interest rate swap contracts. Accordingly, among other consequences, it is possible that the Portfolio may not issue a Section 19 Notice in situations where the Portfolio’s financial statements prepared later and in accordance with U.S. GAAP and/or the final tax character of those distributions might later report that the sources of those distributions included capital gains and/or a return of capital. Final determination of a distribution’s tax character will be provided to shareholders when such information is available.

Distributions classified as a tax basis return of capital, if any, are reflected on the Statements of Changes in Net Assets and have been recorded to paid in capital on the Statement of Assets and Liabilities. In addition, other amounts have been reclassified between distributable earnings (accumulated loss) and paid in capital on the Statement of Assets and Liabilities to more appropriately conform U.S. GAAP to tax characterizations of distributions.

(d) New Accounting Pronouncements   In August 2016, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”), ASU 2016-15, which amends Accounting Standards Codification (“ASC”) 230 to clarify guidance on the classification of certain cash receipts and cash payments in the Statement of Cash Flows. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In November 2016, the FASB issued ASU 2016-18 which amends ASC 230 to provide guidance on the classification and presentation of changes in restricted cash and restricted cash equivalents on the Statement of Cash Flows. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In March 2017, the FASB issued ASU 2017-08 which provides guidance related to the amortization period for certain purchased callable debt securities held at a premium. The ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In August 2018, the FASB issued ASU 2018-13 which modifies certain disclosure requirements for fair value measurements in ASC 820. The ASU is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. At this time, management has elected to early adopt the amendments that allow for removal of certain disclosure requirements. Management plans to adopt the amendments that require additional fair value measurement disclosures for annual periods beginning after December 15, 2019, and interim periods within those annual periods. Management is currently evaluating the impact of these changes on the financial statements.

In August 2018, the U.S. Securities and Exchange Commission (“SEC”) adopted amendments to certain rules and forms for the purpose of disclosure update and simplification. The compliance date for these amendments is 30 days after date of publication in the Federal Register, which was on October 4, 2018. Management has adopted these amendments and the changes are incorporated throughout all periods presented in the financial statements.

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

(a) Investment Valuation Policies  The price of the Portfolio’s shares is based on the Portfolio’s net asset value (“NAV”). The NAV of the

30 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

Portfolio, or each of its share classes, as applicable, is determined by dividing the total value of portfolio investments and other assets, less any liabilities attributable to the Portfolio or class, by the total number of shares outstanding of the Portfolio or class.

On each day that the New York Stock Exchange (“NYSE”) is open, Portfolio shares are ordinarily valued as of the close of regular trading (“NYSE Close”). Information that becomes known to the Portfolio or its agents after the time as of which NAV has been calculated on a particular day will not generally be used to retroactively adjust the price of a security or the NAV determined earlier that day. The Portfolio reserves the right to change the time as of which its NAV is calculated if the Portfolio closes earlier, or as permitted by the SEC.

For purposes of calculating a NAV, portfolio securities and other assets for which market quotes are readily available are valued at market value. Market value is generally determined on the basis of official closing prices or the last reported sales prices, or if no sales are reported, based on quotes obtained from established market makers or prices (including evaluated prices) supplied by the Portfolio’s approved pricing services, quotation reporting systems and other third-party sources (together, “Pricing Services”). The Portfolio will normally use pricing data for domestic equity securities received shortly after the NYSE Close and does not normally take into account trading, clearances or settlements that take place after the NYSE Close. If market value pricing is used, a foreign (non-U.S.) equity security traded on a foreign exchange or on more than one exchange is typically valued using pricing information from the exchange considered by the Adviser to be the primary exchange. A foreign (non-U.S.) equity security will be valued as of the close of trading on the foreign exchange, or the NYSE Close, if the NYSE Close occurs before the end of trading on the foreign exchange. Domestic and foreign (non-U.S.) fixed income securities, non-exchange traded derivatives, and equity options are normally valued on the basis of quotes obtained from brokers and dealers or Pricing Services using data reflecting the earlier closing of the principal markets for those securities. Prices obtained from Pricing Services may be based on, among other things, information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics. Certain fixed income securities purchased on a delayed-delivery basis are marked to market daily until settlement at the forward settlement date. Exchange-traded options, except equity options, futures and options on futures are valued at the settlement price determined by the relevant exchange. Swap agreements are valued on the basis of bid quotes obtained from brokers and dealers or market-based prices supplied by Pricing Services. The Portfolio’s investments in open-end management investment companies, other than exchange-traded funds (“ETFs”), are valued at the NAVs of such investments. Open-end management investment companies may include affiliated funds.

If a foreign (non-U.S.) equity security’s value has materially changed after the close of the security’s primary exchange or principal market but before the NYSE Close, the security may be valued at fair value based on procedures established and approved by the Board of Trustees of the Trust (the “Board”). Foreign (non-U.S.) equity securities that do not trade when the NYSE is open are also valued at fair value. With respect to foreign (non-U.S.) equity securities, the Portfolio may determine the fair value of investments based on information provided by Pricing Services and other third-party vendors, which may recommend fair value or adjustments with reference to other securities, indices or assets. In considering whether fair valuation is required and in determining fair values, the Portfolio may, among other things, consider significant events (which may be considered to include changes in the value of U.S. securities or securities indices) that occur after the close of the relevant market and before the NYSE Close. The Portfolio may utilize modeling tools provided by third-party vendors to determine fair values of foreign (non-U.S.) securities. For these purposes, any movement in the applicable reference index or instrument (“zero trigger”) between the earlier close of the applicable foreign market and the NYSE Close may be deemed to be a significant event, prompting the application of the pricing model (effectively resulting in daily fair valuations). Foreign exchanges may permit trading in foreign (non-U.S.) equity securities on days when the Trust is not open for business, which may result in the Portfolio’s portfolio investments being affected when shareholders are unable to buy or sell shares.

Senior secured floating rate loans for which an active secondary market exists to a reliable degree will be valued at the mean of the last available bid/ask prices in the market for such loans, as provided by a Pricing Service. Senior secured floating rate loans for which an active secondary market does not exist to a reliable degree will be valued at fair value, which is intended to approximate market value. In valuing a senior secured floating rate loan at fair value, the factors considered may include, but are not limited to, the following: (a) the creditworthiness of the borrower and any intermediate participants, (b) the terms of the loan, (c) recent prices in the market for similar loans, if any, and (d) recent prices in the market for instruments of similar quality, rate, period until next interest rate reset and maturity.

Investments valued in currencies other than the U.S. dollar are converted to the U.S. dollar using exchange rates obtained from Pricing Services. As a result, the value of such investments and, in turn, the NAV of the Portfolio’s shares may be affected by changes in the value of currencies in relation to the U.S. dollar. The value of investments traded in markets outside the United States or denominated in currencies other than the U.S. dollar may be affected significantly on a day that the Trust is not open for business. As a result, to the extent that the Portfolio holds foreign (non-U.S.) investments, the value of

ANNUAL REPORT DECEMBER 31, 2018 31

Notes to Financial Statements (Cont.)

those investments may change at times when shareholders are unable to buy or sell shares and the value of such investments will be reflected in the Portfolio’s next calculated NAV.

Investments for which market quotes or market based valuations are not readily available are valued at fair value as determined in good faith by the Board or persons acting at their direction. The Board has adopted methods for valuing securities and other assets in circumstances where market quotes are not readily available, and has delegated to the Adviser the responsibility for applying the fair valuation methods. In the event that market quotes or market based valuations are not readily available, and the security or asset cannot be valued pursuant to a Board approved valuation method, the value of the security or asset will be determined in good faith by the Board. Market quotes are considered not readily available in circumstances where there is an absence of current or reliable market-based data (e.g., trade information, bid/ask information, indicative market quotations (“Broker Quotes”), Pricing Services’ prices), including where events occur after the close of the relevant market, but prior to the NYSE Close, that materially affect the values of the Portfolio’s securities or assets. In addition, market quotes are considered not readily available when, due to extraordinary circumstances, the exchanges or markets on which the securities trade do not open for trading for the entire day and no other market prices are available. The Board has delegated, to the Adviser, the responsibility for monitoring significant events that may materially affect the values of the Portfolio’s securities or assets and for determining whether the value of the applicable securities or assets should be reevaluated in light of such significant events.

When the Portfolio uses fair valuation to determine the value of a portfolio security or other asset for purposes of calculating its NAV, such investments will not be priced on the basis of quotes from the primary market in which they are traded, but rather may be priced by another method that the Board or persons acting at their direction believe reflects fair value. Fair valuation may require subjective determinations about the value of a security. While the Trust’s policy is intended to result in a calculation of the Portfolio’s NAV that fairly reflects security values as of the time of pricing, the Trust cannot ensure that fair values determined by the Board or persons acting at their direction would accurately reflect the price that the Portfolio could obtain for a security if it were to dispose of that security as of the time of pricing (for instance, in a forced or distressed sale). The prices used by the Portfolio may differ from the value that would be realized if the securities were sold. The Portfolio’s use of fair valuation may also help to deter “stale price arbitrage” as discussed under the “Frequent or Excessive Purchases, Exchanges and Redemptions” section in the Portfolio’s prospectus.

(b) Fair Value Hierarchy  U.S. GAAP describes fair value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into levels (Level 1, 2, or 3). The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Levels 1, 2, and 3 of the fair value hierarchy are defined as follows:

^∎  Level 1 — Quoted prices in active markets or exchanges for identical assets and liabilities.

^∎  Level 2 — Significant other observable inputs, which may include, but are not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market corroborated inputs.

^∎  Level 3 — Significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, which may include assumptions made by the Board or persons acting at their direction that are used in determining the fair value of investments.

In accordance with the requirements of U.S. GAAP, the amounts of transfers into and out of Level 3, if material, are disclosed in the Notes to Schedule of Investments for the Portfolio.

For fair valuations using significant unobservable inputs, U.S. GAAP requires a reconciliation of the beginning to ending balances for reported fair values that presents changes attributable to realized gain (loss), unrealized appreciation (depreciation), purchases and sales, accrued discounts (premiums), and transfers into and out of the Level 3 category during the period. The end of period value is used for the transfers between Levels of the Portfolio’s assets and liabilities. Additionally, U.S. GAAP requires quantitative information regarding the significant unobservable inputs used in the determination of fair value of assets or liabilities categorized as Level 3 in the fair value hierarchy. In accordance with the requirements of U.S. GAAP, a fair value hierarchy, and if material, a Level 3 reconciliation and details of significant unobservable inputs, have been included in the Notes to Schedule of Investments for the Portfolio.

(c) Valuation Techniques and the Fair Value Hierarchy

Level 1 and Level 2 trading assets and trading liabilities, at fair value  The valuation methods (or “techniques”) and significant inputs

32 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

used in determining the fair values of portfolio securities or other assets and liabilities categorized as Level 1 and Level 2 of the fair value hierarchy are as follows:

Fixed income securities including corporate, convertible and municipal bonds and notes, U.S. government agencies, U.S. treasury obligations, sovereign issues, bank loans, convertible preferred securities and non-U.S. bonds are normally valued on the basis of quotes obtained from brokers and dealers or Pricing Services that use broker-dealer quotations, reported trades or valuation estimates from their internal pricing models. The Pricing Services’ internal models use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar assets. Securities that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

Fixed income securities purchased on a delayed-delivery basis or as a repurchase commitment in a sale-buyback transaction are marked to market daily until settlement at the forward settlement date and are categorized as Level 2 of the fair value hierarchy.

Mortgage-related and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also normally valued by Pricing Services that use broker-dealer quotations, reported trades or valuation estimates from their internal pricing models. The pricing models for these securities usually consider tranche-level attributes, current market data, estimated cash flows and market-based yield spreads for each tranche, and incorporate deal collateral performance, as available. Mortgage-related and asset-backed securities that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

Common stocks, ETFs, exchange-traded notes and financial derivative instruments, such as futures contracts, rights and warrants, or options on futures that are traded on a national securities exchange, are stated at the last reported sale or settlement price on the day of valuation. To the extent these securities are actively traded and valuation adjustments are not applied, they are categorized as Level 1 of the fair value hierarchy.

Valuation adjustments may be applied to certain securities that are solely traded on a foreign exchange to account for the market movement between the close of the foreign market and the NYSE Close. These securities are valued using Pricing Services that consider the correlation of the trading patterns of the foreign security to the intraday trading in the U.S. markets for investments. Securities using these valuation adjustments are categorized as Level 2 of the fair value hierarchy. Preferred securities and other equities traded on inactive markets or valued by reference to similar instruments are also categorized as Level 2 of the fair value hierarchy.

Investments in registered open-end investment companies (other than ETFs) will be valued based upon the NAVs of such investments and are categorized as Level 1 of the fair value hierarchy. Investments in unregistered open-end investment companies will be calculated based upon the NAVs of such investments and are considered Level 1 provided that the NAVs are observable, calculated daily and are the value at which both purchases and sales will be conducted.

Equity exchange-traded options and over the counter financial derivative instruments, such as forward foreign currency contracts and options contracts derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors. These contracts are normally valued on the basis of quotes obtained from a quotation reporting system, established market makers or Pricing Services (normally determined as of the NYSE Close). Depending on the product and the terms of the transaction, financial derivative instruments can be valued by Pricing Services using a series of techniques, including simulation pricing models. The pricing models use inputs that are observed from actively quoted markets such as quoted prices, issuer details, indices, bid/ask spreads, interest rates, implied volatilities, yield curves, dividends and exchange rates. Financial derivative instruments that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

Centrally cleared swaps and over the counter swaps derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors. They are valued using a broker-dealer bid quotation or on market-based prices provided by Pricing Services (normally determined as of the NYSE close). Centrally cleared swaps and over the counter swaps can be valued by Pricing Services using a series of techniques, including simulation pricing models. The pricing models may use inputs that are observed from actively quoted markets such as the overnight index swap rate (“OIS”), London Interbank Offered Rate (“LIBOR”) forward rate, interest rates, yield curves and credit spreads. These securities are categorized as Level 2 of the fair value hierarchy.

Level 3 trading assets and trading liabilities, at fair value  When a fair valuation method is applied by the Adviser that uses significant unobservable inputs, investments will be priced by a method that the Board or persons acting at their direction believe reflects fair value and are categorized as Level 3 of the fair value hierarchy.

Short-term debt instruments (such as commercial paper) having a remaining maturity of 60 days or less may be valued at amortized cost, so long as the amortized cost value of such short-term debt instruments is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. These securities are categorized as Level 2 or Level 3 of the fair value hierarchy depending on the source of the base price.

ANNUAL REPORT DECEMBER 31, 2018 33

Notes to Financial Statements (Cont.)

4. SECURITIES AND OTHER INVESTMENTS

(a) Investments in Affiliates

The Portfolio may invest in the PIMCO Short Asset Portfolio and the PIMCO Short-Term Floating NAV Portfolio III (“Central Funds”) to the extent permitted by the Act and rules thereunder. The Central Funds are registered investment companies created for use solely by the series of the Trust and other series of registered investment companies advised by the Adviser, in connection with their cash management activities. The main investments of the Central Funds are money market and short maturity fixed income instruments. The Central Funds may incur expenses related to their investment activities, but do not pay Investment Advisory Fees or Supervisory and Administrative Fees to the Adviser. The Central Funds are considered to be affiliated with the Portfolio. The tables below show the Portfolio’s transactions in and earnings from investments in the affiliated Funds for the period ended December 31, 2018 (amounts in thousands^†):

Investment in PIMCO Short Asset Portfolio

Market Value 12/31/2017		Purchases at Cost		Proceeds from Sales		Net Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)			Market Value 12/31/2018		Dividend Income(1)		Realized Net Capital Gain Distributions(1)
$	3,979	$	114	$	0	$	0	$	(36	)	$	4,057	$	110	$	5

Investment in PIMCO Short-Term Floating NAV Portfolio III

Market Value 12/31/2017		Purchases at Cost		Proceeds from Sales			Net Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)		Market Value 12/31/2018		Dividend Income(1)		Realized Net Capital Gain Distributions(1)
$	317	$	48,858	$	(49,000	)	$	(1	)	$	0	$	174	$	57	$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽¹⁾  The tax characterization of distributions is determined in accordance with Federal income tax regulations and may contain a return of capital. The actual tax characterization of distributions received is determined at the end of the fiscal year of the affiliated fund. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

(b) Investments in Securities

The Portfolio may utilize the investments and strategies described below to the extent permitted by the Portfolio’s investment policies.

Inflation-Indexed Bonds  are fixed income securities whose principal value is periodically adjusted by the rate of inflation. The interest rate on these bonds is generally fixed at issuance at a rate lower than typical bonds. Over the life of an inflation-indexed bond, however, interest will be paid based on a principal value which is adjusted for inflation. Any increase or decrease in the principal amount of an inflation-indexed bond will be included as interest income on the Statement of Operations, even though investors do not receive their principal until maturity. Repayment of the original bond principal upon maturity (as adjusted for inflation) is guaranteed in the case of U.S. Treasury Inflation-Protected Securities (“TIPS”). For bonds that do not provide a similar guarantee, the adjusted principal value of the bond repaid at maturity may be less than the original principal.

Loans and Other Indebtedness, Loan Participations and Assignments  are direct debt instruments which are interests in amounts owed to lenders or lending syndicates by corporate, governmental, or other borrowers. The Portfolio’s investments in loans may be in the form of participations in loans or assignments of all or a portion of loans from third parties or investments in or originations of loans by the Portfolio. A loan is often administered by a bank or other financial institution (the

“agent”) that acts as agent for all holders. The agent administers the terms of the loan, as specified in the loan agreement. The Portfolio may invest in multiple series or tranches of a loan, which may have varying terms and carry different associated risks. When the Portfolio purchases assignments from agents it acquires direct rights against the borrowers of the loans. These loans may include participations in bridge loans, which are loans taken out by borrowers for a short period (typically less than one year) pending arrangement of more permanent financing through, for example, the issuance of bonds, frequently high yield bonds issued for the purpose of acquisitions.

The types of loans and related investments in which the Portfolio may invest include, among others, senior loans, subordinated loans (including second lien loans, B-Notes and mezzanine loans), whole loans, commercial real estate and other commercial loans and structured loans. The Portfolio may originate loans or acquire direct interests in loans through primary loan distributions and/or in private transactions. In the case of subordinated loans, there may be significant indebtedness ranking ahead of the borrower’s obligation to the holder of such a loan, including in the event of the borrower’s insolvency. Mezzanine loans are typically secured by a pledge of an equity interest in the mortgage borrower that owns the real estate rather than an interest in a mortgage.

34 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

Investments in loans may include unfunded loan commitments, which are contractual obligations for funding. Unfunded loan commitments may include revolving credit facilities, which may obligate the Portfolio to supply additional cash to the borrower on demand. Unfunded loan commitments represent a future obligation in full, even though a percentage of the committed amount may not be utilized by the borrower. When investing in a loan participation, the Portfolio has the right to receive payments of principal, interest and any fees to which it is entitled only from the agent selling the loan agreement and only upon receipt of payments by the agent from the borrower. The Portfolio may receive a commitment fee based on the undrawn portion of the underlying line of credit portion of a loan. In certain circumstances, the Portfolio may receive a penalty fee upon the prepayment of a loan by a borrower. Fees earned or paid are recorded as a component of interest income or interest expense, respectively, on the Statement of Operations. Unfunded loan commitments are reflected as a liability on the Statement of Assets and Liabilities.

Mortgage-Related and Other Asset-Backed Securities  directly or indirectly represent a participation in, or are secured by and payable from, loans on real property. Mortgage-related securities are created from pools of residential or commercial mortgage loans, including mortgage loans made by savings and loan institutions, mortgage bankers, commercial banks and others. These securities provide a monthly payment which consists of both interest and principal. Interest may be determined by fixed or adjustable rates. The rate of prepayments on underlying mortgages will affect the price and volatility of a mortgage-related security, and may have the effect of shortening or extending the effective duration of the security relative to what was anticipated at the time of purchase. The timely payment of principal and interest of certain mortgage-related securities is guaranteed with the full faith and credit of the U.S. Government. Pools created and guaranteed by non-governmental issuers, including government-sponsored corporations, may be supported by various forms of insurance or guarantees, but there can be no assurance that private insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Many of the risks of investing in mortgage-related securities secured by commercial mortgage loans reflect the effects of local and other economic conditions on real estate markets, the ability of tenants to make lease payments, and the ability of a property to attract and retain tenants. These securities may be less liquid and may exhibit greater price volatility than other types of mortgage-related or other asset-backed securities. Other asset-backed securities are created from many types of assets, including, but not limited to, auto loans, accounts receivable, such as credit card receivables and hospital account receivables, home equity loans, student loans, boat loans, mobile home loans, recreational vehicle loans, manufactured housing loans, aircraft leases, computer leases and syndicated bank loans.

Collateralized Debt Obligations  (“CDOs”) include Collateralized Bond Obligations (“CBOs”), Collateralized Loan Obligations (“CLOs”) and other similarly structured securities. CBOs and CLOs are types of asset-backed securities. A CBO is a trust which is backed by a diversified pool of high risk, below investment grade fixed income securities. A CLO is a trust typically collateralized by a pool of loans, which may include, among others, domestic and foreign senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated below investment grade or equivalent unrated loans. The risks of an investment in a CDO depend largely on the type of the collateral securities and the class of the CDO in which the Portfolio invests. In addition to the normal risks associated with fixed income securities discussed elsewhere in this report and the Portfolio’s prospectus and statement of additional information (e.g., prepayment risk, credit risk, liquidity risk, market risk, structural risk, legal risk and interest rate risk (which may be exacerbated if the interest rate payable on a structured financing changes based on multiples of changes in interest rates or inversely to changes in interest rates)), CBOs, CLOs and other CDOs carry additional risks including, but not limited to, (i) the possibility that distributions from collateral securities will not be adequate to make interest or other payments, (ii) the quality of the collateral may decline in value or default, (iii) the risk that the Portfolio may invest in CBOs, CLOs, or other CDOs that are subordinate to other classes, and (iv) the complex structure of the security may not be fully understood at the time of investment and may produce disputes with the issuer or unexpected investment results.

Collateralized Mortgage Obligations  (“CMOs”) are debt obligations of a legal entity that are collateralized by whole mortgage loans or private mortgage bonds and divided into classes. CMOs are structured into multiple classes, often referred to as “tranches”, with each class bearing a different stated maturity and entitled to a different schedule for payments of principal and interest, including prepayments. CMOs may be less liquid and may exhibit greater price volatility than other types of mortgage-related or asset-backed securities.

Stripped Mortgage-Backed Securities  (“SMBS”) are derivative multi-class mortgage securities. SMBS are usually structured with two classes that receive different proportions of the interest and principal distributions on a pool of mortgage assets. An SMBS will have one class that will receive all of the interest (the interest-only or “IO” class), while the other class will receive the entire principal (the principal-only or “PO” class). Payments received for IOs are included in interest income on the Statement of Operations. Because no principal will be received at the maturity of an IO, adjustments are made to the cost of the security on a monthly basis until maturity. These adjustments are included in interest income on the Statement of Operations. Payments received for POs are treated as reductions to the cost and par value of the securities.

ANNUAL REPORT DECEMBER 31, 2018 35

Notes to Financial Statements (Cont.)

Payment In-Kind Securities  (“PIKs”) may give the issuer the option at each interest payment date of making interest payments in either cash and/or additional debt securities. Those additional debt securities usually have the same terms, including maturity dates and interest rates, and associated risks as the original bonds. The daily market quotations of the original bonds may include the accrued interest (referred to as a dirty price) and require a pro rata adjustment from the unrealized appreciation (depreciation) on investments to interest receivable on the Statement of Assets and Liabilities.

Perpetual Bonds  are fixed income securities with no maturity date but pay a coupon in perpetuity (with no specified ending or maturity date). Unlike typical fixed income securities, there is no obligation for perpetual bonds to repay principal. The coupon payments, however, are mandatory. While perpetual bonds have no maturity date, they may have a callable date in which the perpetuity is eliminated and the issuer may return the principal received on the specified call date. Additionally, a perpetual bond may have additional features, such as interest rate increases at periodic dates or an increase as of a predetermined point in the future.

Securities Issued by U.S. Government Agencies or Government-Sponsored Enterprises  are obligations of and, in certain cases, guaranteed by, the U.S. Government, its agencies or instrumentalities. Some U.S. Government securities, such as Treasury bills, notes and bonds, and securities guaranteed by the Government National Mortgage Association (“GNMA” or “Ginnie Mae”), are supported by the full faith and credit of the U.S. Government; others, such as those of the Federal Home Loan Banks, are supported by the right of the issuer to borrow from the U.S. Department of the Treasury (the “U.S. Treasury”); and others, such as those of the Federal National Mortgage Association (“FNMA” or “Fannie Mae”), are supported by the discretionary authority of the U.S. Government to purchase the agency’s obligations. U.S. Government securities may include zero coupon securities. Zero coupon securities do not distribute interest on a current basis and tend to be subject to a greater risk than interest-paying securities.

Government-related guarantors (i.e., not backed by the full faith and credit of the U.S. Government) include FNMA and the Federal Home Loan Mortgage Corporation (“FHLMC” or “Freddie Mac”). FNMA is a government-sponsored corporation. FNMA purchases conventional (i.e., not insured or guaranteed by any government agency) residential mortgages from a list of approved seller/servicers which include state and federally chartered savings and loan associations, mutual savings banks, commercial banks and credit unions and mortgage bankers. Pass-through securities issued by FNMA are guaranteed as to timely payment of principal and interest by FNMA, but are not backed by the full faith and credit of the U.S. Government. FHLMC issues Participation

Certificates (“PCs”), which are pass-through securities, each representing an undivided interest in a pool of residential mortgages. FHLMC guarantees the timely payment of interest and ultimate collection of principal, but PCs are not backed by the full faith and credit of the U.S. Government.

Roll-timing strategies can be used where the Portfolio seeks to extend the expiration or maturity of a position, such as a TBA security on an underlying asset, by closing out the position before expiration and opening a new position with respect to substantially the same underlying asset with a later expiration date. TBA securities purchased or sold are reflected on the Statement of Assets and Liabilities as an asset or liability, respectively.

5. BORROWINGS AND OTHER FINANCING TRANSACTIONS

The Portfolio may enter into the borrowings and other financing transactions described below to the extent permitted by the Portfolio’s investment policies.

The following disclosures contain information on the Portfolio’s ability to lend or borrow cash or securities to the extent permitted under the Act, which may be viewed as borrowing or financing transactions by the Portfolio. The location of these instruments in the Portfolio’s financial statements is described below.

(a) Repurchase Agreements  Under the terms of a typical repurchase agreement, the Portfolio purchases an underlying debt obligation (collateral) subject to an obligation of the seller to repurchase, and the Portfolio to resell, the obligation at an agreed-upon price and time. In an open maturity repurchase agreement, there is no pre-determined repurchase date and the agreement can be terminated by the Portfolio or counterparty at any time. The underlying securities for all repurchase agreements are held by the Portfolio’s custodian or designated subcustodians under tri-party repurchase agreements and in certain instances will remain in custody with the counterparty. The market value of the collateral must be equal to or exceed the total amount of the repurchase obligations, including interest. Repurchase agreements, if any, including accrued interest, are included on the Statement of Assets and Liabilities. Interest earned is recorded as a component of interest income on the Statement of Operations. In periods of increased demand for collateral, the Portfolio may pay a fee for the receipt of collateral, which may result in interest expense to the Portfolio.

(b) Reverse Repurchase Agreements  In a reverse repurchase agreement, the Portfolio delivers a security in exchange for cash to a financial institution, the counterparty, with a simultaneous agreement to repurchase the same or substantially the same security at an agreed upon price and date. In an open maturity reverse repurchase

36 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

agreement, there is no pre-determined repurchase date and the agreement can be terminated by the Portfolio or counterparty at any time. The Portfolio is entitled to receive principal and interest payments, if any, made on the security delivered to the counterparty during the term of the agreement. Cash received in exchange for securities delivered plus accrued interest payments to be made by the Portfolio to counterparties are reflected as a liability on the Statement of Assets and Liabilities. Interest payments made by the Portfolio to counterparties are recorded as a component of interest expense on the Statement of Operations. In periods of increased demand for the security, the Portfolio may receive a fee for use of the security by the counterparty, which may result in interest income to the Portfolio. The Portfolio will segregate assets determined to be liquid by the Adviser or will otherwise cover its obligations under reverse repurchase agreements.

(c) Sale-Buybacks  A sale-buyback financing transaction consists of a sale of a security by the Portfolio to a financial institution, the counterparty, with a simultaneous agreement to repurchase the same or substantially the same security at an agreed-upon price and date. The Portfolio is not entitled to receive principal and interest payments, if any, made on the security sold to the counterparty during the term of the agreement. The agreed-upon proceeds for securities to be repurchased by the Portfolio are reflected as a liability on the Statement of Assets and Liabilities. The Portfolio will recognize net income represented by the price differential between the price received for the transferred security and the agreed-upon repurchase price. This is commonly referred to as the ‘price drop’. A price drop consists of (i) the foregone interest and inflationary income adjustments, if any, the Portfolio would have otherwise received had the security not been sold and (ii) the negotiated financing terms between the Portfolio and counterparty. Foregone interest and inflationary income adjustments, if any, are recorded as components of interest income on the Statement of Operations. Interest payments based upon negotiated financing terms made by the Portfolio to counterparties are recorded as a component of interest expense on the Statement of Operations. In periods of increased demand for the security, the Portfolio may receive a fee for use of the security by the counterparty, which may result in interest income to the Portfolio. The Portfolio will segregate assets determined to be liquid by the Adviser or will otherwise cover its obligations under sale-buyback transactions.

(d) Short Sales  Short sales are transactions in which the Portfolio sells a security that it may not own. The Portfolio may make short sales of securities to (i) offset potential declines in long positions in similar securities, (ii) to increase the flexibility of the Portfolio, (iii) for investment return, (iv) as part of a risk arbitrage strategy, and (v) as part of its overall portfolio management strategies involving the use of

derivative instruments. When the Portfolio engages in a short sale, it may borrow the security sold short and deliver it to the counterparty. The Portfolio will ordinarily have to pay a fee or premium to borrow a security and be obligated to repay the lender of the security any dividend or interest that accrues on the security during the period of the loan. Securities sold in short sale transactions and the dividend or interest payable on such securities, if any, are reflected as payable for short sales on the Statement of Assets and Liabilities. Short sales expose the Portfolio to the risk that it will be required to cover its short position at a time when the security or other asset has appreciated in value, thus resulting in losses to the Portfolio. A short sale is “against the box” if the Portfolio holds in its portfolio or has the right to acquire the security sold short, or securities identical to the security sold short, at no additional cost. The Portfolio will be subject to additional risks to the extent that it engages in short sales that are not “against the box.” The Portfolio’s loss on a short sale could theoretically be unlimited in cases where the Portfolio is unable, for whatever reason, to close out its short position.

6. FINANCIAL DERIVATIVE INSTRUMENTS

The Portfolio may enter into the financial derivative instruments described below to the extent permitted by the Portfolio’s investment policies.

The following disclosures contain information on how and why the Portfolio uses financial derivative instruments, and how financial derivative instruments affect the Portfolio’s financial position, results of operations and cash flows. The location and fair value amounts of these instruments on the Statement of Assets and Liabilities and the net realized gain (loss) and net change in unrealized appreciation (depreciation) on the Statement of Operations, each categorized by type of financial derivative contract and related risk exposure, are included in a table in the Notes to Schedule of Investments. The financial derivative instruments outstanding as of period end and the amounts of net realized gain (loss) and net change in unrealized appreciation (depreciation) on financial derivative instruments during the period, as disclosed in the Notes to Schedule of Investments, serve as indicators of the volume of financial derivative activity for the Portfolio.

(a) Forward Foreign Currency Contracts  may be engaged, in connection with settling planned purchases or sales of securities, to hedge the currency exposure associated with some or all of the Portfolio’s securities or as part of an investment strategy. A forward foreign currency contract is an agreement between two parties to buy and sell a currency at a set price on a future date. The market value of a forward foreign currency contract fluctuates with changes in foreign currency exchange rates. Forward foreign currency contracts are

ANNUAL REPORT DECEMBER 31, 2018 37

Notes to Financial Statements (Cont.)

marked to market daily, and the change in value is recorded by the Portfolio as an unrealized gain (loss). Realized gains (losses) are equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed and are recorded upon delivery or receipt of the currency. These contracts may involve market risk in excess of the unrealized gain (loss) reflected on the Statement of Assets and Liabilities. In addition, the Portfolio could be exposed to risk if the counterparties are unable to meet the terms of the contracts or if the value of the currency changes unfavorably to the U.S. dollar. To mitigate such risk, cash or securities may be exchanged as collateral pursuant to the terms of the underlying contracts.

(b) Futures Contracts  are agreements to buy or sell a security or other asset for a set price on a future date. The Portfolio may use futures contracts to manage its exposure to the securities markets or to movements in interest rates and currency values. The primary risks associated with the use of futures contracts are the imperfect correlation between the change in market value of the securities held by the Portfolio and the prices of futures contracts and the possibility of an illiquid market. Futures contracts are valued based upon their quoted daily settlement prices. Upon entering into a futures contract, the Portfolio is required to deposit with its futures broker an amount of cash, U.S. Government and Agency Obligations, or select sovereign debt, in accordance with the initial margin requirements of the broker or exchange. Futures contracts are marked to market daily and based on such movements in the price of the contracts, an appropriate payable or receivable for the change in value may be posted or collected by the Portfolio (“Futures Variation Margin”). Gains (losses) are recognized but not considered realized until the contracts expire or close. Futures contracts involve, to varying degrees, risk of loss in excess of the Futures Variation Margin included within exchange traded or centrally cleared financial derivative instruments on the Statement of Assets and Liabilities.

(c) Options Contracts  may be written or purchased to enhance returns or to hedge an existing position or future investment. The Portfolio may write call and put options on securities and financial derivative instruments it owns or in which it may invest. Writing put options tends to increase the Portfolio’s exposure to the underlying instrument. Writing call options tends to decrease the Portfolio’s exposure to the underlying instrument. When the Portfolio writes a call or put, an amount equal to the premium received is recorded and subsequently marked to market to reflect the current value of the option written. These amounts are included on the Statement of Assets and Liabilities. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options which are exercised or closed are added to the proceeds or offset against amounts paid on the underlying futures, swap, security or currency

transaction to determine the realized gain (loss). Certain options may be written with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. The Portfolio as a writer of an option has no control over whether the underlying instrument may be sold (“call”) or purchased (“put”) and as a result bears the market risk of an unfavorable change in the price of the instrument underlying the written option. There is the risk the Portfolio may not be able to enter into a closing transaction because of an illiquid market.

Purchasing call options tends to increase the Portfolio’s exposure to the underlying instrument. Purchasing put options tends to decrease the Portfolio’s exposure to the underlying instrument. The Portfolio pays a premium which is included as an asset on the Statement of Assets and Liabilities and subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options which expire are treated as realized losses. Certain options may be purchased with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. The risk associated with purchasing put and call options is limited to the premium paid. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the underlying investment transaction to determine the realized gain (loss) when the underlying transaction is executed.

Credit Default Swaptions  may be written or purchased to hedge exposure to the credit risk of an investment without making a commitment to the underlying instrument. A credit default swaption is an option to sell or buy credit protection on a specific reference by entering into a pre-defined swap agreement by some specified date in the future.

Foreign Currency Options  may be written or purchased to be used as a short or long hedge against possible variations in foreign exchange rates or to gain exposure to foreign currencies.

Interest Rate Swaptions  may be written or purchased to enter into a pre-defined swap agreement or to shorten, extend, cancel or otherwise modify an existing swap agreement, by some specified date in the future. The writer of the swaption becomes the counterparty to the swap if the buyer exercises. The interest rate swaption agreement will specify whether the buyer of the swaption will be a fixed-rate receiver or a fixed-rate payer upon exercise.

Options on Exchange-Traded Futures Contracts  (“Futures Option”) may be written or purchased to hedge an existing position or future investment, for speculative purposes or to manage exposure to market movements. A Futures Option is an option contract in which the underlying instrument is a single futures contract.

38 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

Options on Securities  may be written or purchased to enhance returns or to hedge an existing position or future investment. An option on a security uses a specified security as the underlying instrument for the option contract.

(d) Swap Agreements  are bilaterally negotiated agreements between the Portfolio and a counterparty to exchange or swap investment cash flows, assets, foreign currencies or market-linked returns at specified, future intervals. Swap agreements may be privately negotiated in the over the counter market (“OTC swaps”) or may be cleared through a third party, known as a central counterparty or derivatives clearing organization (“Centrally Cleared Swaps”). The Portfolio may enter into asset, credit default, cross-currency, interest rate, total return, variance and other forms of swap agreements to manage its exposure to credit, currency, interest rate, commodity, equity and inflation risk. In connection with these agreements, securities or cash may be identified as collateral or margin in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default or bankruptcy/insolvency.

Centrally Cleared Swaps are marked to market daily based upon valuations as determined from the underlying contract or in accordance with the requirements of the central counterparty or derivatives clearing organization. Changes in market value, if any, are reflected as a component of net change in unrealized appreciation (depreciation) on the Statement of Operations. Daily changes in valuation of centrally cleared swaps (“Swap Variation Margin”), if any, are disclosed within centrally cleared financial derivative instruments on the Statement of Assets and Liabilities. Centrally Cleared and OTC swap payments received or paid at the beginning of the measurement period are included on the Statement of Assets and Liabilities and represent premiums paid or received upon entering into the swap agreement to compensate for differences between the stated terms of the swap agreement and prevailing market conditions (credit spreads, currency exchange rates, interest rates, and other relevant factors). Upfront premiums received (paid) are initially recorded as liabilities (assets) and subsequently marked to market to reflect the current value of the swap. These upfront premiums are recorded as realized gain (loss) on the Statement of Operations upon termination or maturity of the swap. A liquidation payment received or made at the termination of the swap is recorded as realized gain (loss) on the Statement of Operations. Net periodic payments received or paid by the Portfolio are included as part of realized gain (loss) on the Statement of Operations.

For purposes of applying certain of the Portfolio’s investment policies and restrictions, swap agreements, like other derivative instruments, may be valued by the Portfolio at market value, notional value or full exposure value. In the case of a credit default swap, in applying certain of the Portfolio’s investment policies and restrictions, the Portfolio will

value the credit default swap at its notional value or its full exposure value (i.e., the sum of the notional amount for the contract plus the market value), but may value the credit default swap at market value for purposes of applying certain of the Portfolio’s other investment policies and restrictions. For example, the Portfolio may value credit default swaps at full exposure value for purposes of the Portfolio’s credit quality guidelines (if any) because such value in general better reflects the Portfolio’s actual economic exposure during the term of the credit default swap agreement. As a result, the Portfolio may, at times, have notional exposure to an asset class (before netting) that is greater or lesser than the stated limit or restriction noted in the Portfolio’s prospectus. In this context, both the notional amount and the market value may be positive or negative depending on whether the Portfolio is selling or buying protection through the credit default swap. The manner in which certain securities or other instruments are valued by the Portfolio for purposes of applying investment policies and restrictions may differ from the manner in which those investments are valued by other types of investors.

Entering into swap agreements involves, to varying degrees, elements of interest, credit, market and documentation risk in excess of the amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of contractual terms in the agreements and that there may be unfavorable changes in interest rates or the values of the asset upon which the swap is based.

The Portfolio’s maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from the counterparty over the contract’s remaining life, to the extent that amount is positive. The risk may be mitigated by having a master netting arrangement between the Portfolio and the counterparty and by the posting of collateral to the Portfolio to cover the Portfolio’s exposure to the counterparty.

To the extent the Portfolio has a policy to limit the net amount owed to or to be received from a single counterparty under existing swap agreements, such limitation only applies to counterparties to OTC swaps and does not apply to centrally cleared swaps where the counterparty is a central counterparty or derivatives clearing organization.

Credit Default Swap Agreements  on corporate, loan, sovereign, U.S. municipal or U.S. Treasury issues are entered into to provide a measure of protection against defaults of the issuers (i.e., to reduce risk where the Portfolio owns or has exposure to the referenced obligation) or to take an active long or short position with respect to the likelihood of a particular issuer’s default. Credit default swap agreements involve one party making a stream of payments (referred to as the buyer of

ANNUAL REPORT DECEMBER 31, 2018 39

Notes to Financial Statements (Cont.)

protection) to another party (the seller of protection) in exchange for the right to receive a specified return in the event that the referenced entity, obligation or index, as specified in the swap agreement, undergoes a certain credit event. As a seller of protection on credit default swap agreements, the Portfolio will generally receive from the buyer of protection a fixed rate of income throughout the term of the swap provided that there is no credit event. As the seller, the Portfolio would effectively add leverage to its portfolio because, in addition to its total net assets, the Portfolio would be subject to investment exposure on the notional amount of the swap.

If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. If the Portfolio is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. Recovery values are estimated by market makers considering either industry standard recovery rates or entity specific factors and considerations until a credit event occurs. If a credit event has occurred, the recovery value is determined by a facilitated auction whereby a minimum number of allowable broker bids, together with a specified valuation method, are used to calculate the settlement value. The ability to deliver other obligations may result in a cheapest-to-deliver option (the buyer of protection’s right to choose the deliverable obligation with the lowest value following a credit event).

Credit default swap agreements on credit indices involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising the credit index. A credit index is a basket of credit instruments or exposures designed to be representative of some part of the credit market as a whole. These indices are made up of reference credits that are judged by a poll of dealers to be the most liquid entities in the credit default swap market based on the sector of the index. Components of the indices may include, but are not limited to,

investment grade securities, high yield securities, asset-backed securities, emerging markets, and/or various credit ratings within each sector. Credit indices are traded using credit default swaps with standardized terms including a fixed spread and standard maturity dates. An index credit default swap references all the names in the index, and if there is a default, the credit event is settled based on that name’s weight in the index. The composition of the indices changes periodically, usually every six months, and for most indices, each name has an equal weight in the index. The Portfolio may use credit default swaps on credit indices to hedge a portfolio of credit default swaps or bonds, which is less expensive than it would be to buy many credit default swaps to achieve a similar effect. Credit default swaps on indices are instruments for protecting investors owning bonds against default, and traders use them to speculate on changes in credit quality.

Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate, loan, sovereign, U.S. municipal or U.S. Treasury issues as of period end, if any, are disclosed in the Notes to Schedule of Investments. They serve as an indicator of the current status of payment/performance risk and represent the likelihood or risk of default for the reference entity. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. For credit default swap agreements on asset-backed securities and credit indices, the quoted market prices and resulting values serve as the indicator of the current status of the payment/performance risk. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

The maximum potential amount of future payments (undiscounted) that the Portfolio as a seller of protection could be required to make under a credit default swap agreement equals the notional amount of the agreement. Notional amounts of each individual credit default swap agreement outstanding as of period end for which the Portfolio is the seller of protection are disclosed in the Notes to Schedule of Investments. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Portfolio for the same referenced entity or entities.

40 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

Cross-Currency Swap Agreements  are entered into to gain or mitigate exposure to currency risk. Cross-currency swap agreements involve two parties exchanging two different currencies with an agreement to reverse the exchange at a later date at specified exchange rates. The exchange of currencies at the inception date of the contract takes place at the current spot rate. The re-exchange at maturity may take place at the same exchange rate, a specified rate, or the then current spot rate. Interest payments, if applicable, are made between the parties based on interest rates available in the two currencies at the inception of the contract. The terms of cross-currency swap contracts may extend for many years. Cross-currency swaps are usually negotiated with commercial and investment banks. Some cross-currency swaps may not provide for exchanging principal cash flows, but only for exchanging interest cash flows.

Interest Rate Swap Agreements  may be entered into to help hedge against interest rate risk exposure and to maintain the Portfolio’s ability to generate income at prevailing market rates. The value of the fixed rate bonds that the Portfolio holds may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, the Portfolio may enter into interest rate swap agreements. Interest rate swap agreements involve the exchange by the Portfolio with another party for their respective commitment to pay or receive interest on the notional amount of principal. Certain forms of interest rate swap agreements may include: (i) interest rate caps, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates exceed a specified rate, or “cap”, (ii) interest rate floors, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates fall below a specified rate, or “floor”, (iii) interest rate collars, under which a party sells a cap and purchases a floor or vice versa in an attempt to protect itself against interest rate movements exceeding given minimum or maximum levels, (iv) callable interest rate swaps, under which the buyer pays an upfront fee in consideration for the right to early terminate the swap transaction in whole, at zero cost and at a predetermined date and time prior to the maturity date, (v) spreadlocks, which allow the interest rate swap users to lock in the forward differential (or spread) between the interest rate swap rate and a specified benchmark, or (vi) basis swaps, under which two parties can exchange variable interest rates based on different segments of money markets.

Volatility Swap Agreements  are also known as forward volatility agreements and volatility swaps and are agreements in which the counterparties agree to make payments in connection with changes in the volatility (i.e., the magnitude of change over a specified period of time) of an underlying referenced instrument, such as a currency, rate, index, security or other financial instrument. Volatility swaps permit the

parties to attempt to hedge volatility risk and/or take positions on the projected future volatility of an underlying referenced instrument. For example, the Portfolio may enter into a volatility swap in order to take the position that the referenced instrument’s volatility will increase over a particular period of time. If the referenced instrument’s volatility does increase over the specified time, the Portfolio will receive payment from its counterparty based upon the amount by which the referenced instrument’s realized volatility level exceeds a volatility level agreed upon by the parties. If the referenced instrument’s volatility does not increase over the specified time, the Portfolio will make a payment to the counterparty based upon the amount by which the referenced instrument’s realized volatility level falls below the volatility level agreed upon by the parties. At the maturity date, a net cash flow is exchanged, where the payoff amount is equivalent to the difference between the realized price volatility of the referenced instrument and the strike multiplied by the notional amount. As a receiver of the realized price volatility, the Portfolio would receive the payoff amount when the realized price volatility of the referenced instrument is greater than the strike and would owe the payoff amount when the volatility is less than the strike. As a payer of the realized price volatility, the Portfolio would owe the payoff amount when the realized price volatility of the referenced instrument is greater than the strike and would receive the payoff amount when the volatility is less than the strike. Payments on a volatility swap will be greater if they are based upon the mathematical square of volatility (i.e., the measured volatility multiplied by itself, which is referred to as “variance”). This type of volatility swap is frequently referred to as a variance swap.

7. PRINCIPAL RISKS

The principal risks of investing in the Portfolio, which could adversely affect its net asset value, yield and total return, are listed below. Please see “Description of Principal Risks” in the Portfolio’s prospectus for a more detailed description of the risks of investing in the Portfolio.

Interest Rate Risk  is the risk that fixed income securities will decline in value because of an increase in interest rates; a portfolio with a longer average portfolio duration will be more sensitive to changes in interest rates than a portfolio with a shorter average portfolio duration.

Call Risk  is the risk that an issuer may exercise its right to redeem a fixed income security earlier than expected (a call). Issuers may call outstanding securities prior to their maturity for a number of reasons (e.g., declining interest rates, changes in credit spreads and improvements in the issuer’s credit quality). If an issuer calls a security that the Portfolio has invested in, the Portfolio may not recoup the full amount of its initial investment and may be forced to reinvest in lower-yielding securities, securities with greater credit risks or securities with other, less favorable features.

ANNUAL REPORT DECEMBER 31, 2018 41

Notes to Financial Statements (Cont.)

Credit Risk  is the risk that the Portfolio could lose money if the issuer or guarantor of a fixed income security, or the counterparty to a derivative contract, is unable or unwilling to meet its financial obligations.

High Yield Risk  is the risk that high yield securities and unrated securities of similar credit quality (commonly known as “junk bonds”) are subject to greater levels of credit, call and liquidity risks. High yield securities are considered primarily speculative with respect to the issuer’s continuing ability to make principal and interest payments, and may be more volatile than higher-rated securities of similar maturity.

Market Risk  is the risk that the value of securities owned by the Portfolio may go up or down, sometimes rapidly or unpredictably, due to factors affecting securities markets generally or particular industries.

Issuer Risk  is the risk that the value of a security may decline for a reason directly related to the issuer, such as management performance, financial leverage and reduced demand for the issuer’s goods or services.

Liquidity Risk  is the risk that a particular investment may be difficult to purchase or sell and that the Portfolio may be unable to sell illiquid securities at an advantageous time or price or achieve its desired level of exposure to a certain sector. Liquidity risk may result from the lack of an active market, reduced number and capacity of traditional market participants to make a market in fixed income securities, and may be magnified in a rising interest rate environment or other circumstances where investor redemptions from fixed income mutual funds may be higher than normal, causing increased supply in the market due to selling activity.

Derivatives Risk  is the risk of investing in derivative instruments (such as futures, swaps and structured securities), including leverage, liquidity, interest rate, market, credit and management risks, mispricing or valuation complexity. Changes in the value of the derivative may not correlate perfectly with, and may be more sensitive to market events than, the underlying asset, rate or index, and the Portfolio could lose more than the initial amount invested. The Portfolio’s use of derivatives may result in losses to the Portfolio, a reduction in the Portfolio’s returns and/or increased volatility. Over-the-counter (“OTC”) derivatives are also subject to the risk that a counterparty to the transaction will not fulfill its contractual obligations to the other party, as many of the protections afforded to centrally-cleared derivative transactions might not be available for OTC derivatives. For derivatives traded on an exchange or through a central counterparty, credit risk resides with the Portfolio’s clearing broker, or the clearinghouse itself, rather than with a counterparty in an OTC derivative transaction. Changes in regulation relating to a mutual fund’s use of derivatives and related instruments could potentially limit or impact the Portfolio’s

ability to invest in derivatives, limit the Portfolio’s ability to employ certain strategies that use derivatives and/or adversely affect the value of derivatives and the Portfolio’s performance.

Equity Risk  is the risk that the value of equity securities, such as common stocks and preferred securities, may decline due to general market conditions which are not specifically related to a particular company or to factors affecting a particular industry or industries. Equity securities generally have greater price volatility than fixed income securities.

Mortgage-Related and Other Asset-Backed Securities Risk  is the risk of investing in mortgage-related and other asset-backed securities, including interest rate risk, extension risk, prepayment risk and credit risk.

Foreign (Non-U.S.) Investment Risk  is the risk that investing in foreign (non-U.S.) securities may result in the Portfolio experiencing more rapid and extreme changes in value than a portfolio that invests exclusively in securities of U.S. companies, due to smaller markets, differing reporting, accounting and auditing standards, increased risk of delayed settlement of portfolio transactions or loss of certificates of portfolio securities, and the risk of unfavorable foreign government actions, including nationalization, expropriation or confiscatory taxation, currency blockage, or political changes or diplomatic developments. Foreign securities may also be less liquid and more difficult to value than securities of U.S. issuers.

Emerging Markets Risk  is the risk of investing in emerging market securities, primarily increased foreign (non-U.S.) investment risk.

Sovereign Debt Risk  is the risk that investments in fixed income instruments issued by sovereign entities may decline in value as a result of default or other adverse credit event resulting from an issuer’s inability or unwillingness to make principal or interest payments in a timely fashion.

Currency Risk  is the risk that foreign (non-U.S.) currencies will change in value relative to the U.S. dollar and affect the Portfolio’s investments in foreign (non-U.S.) currencies or in securities that trade in, and receive revenues in, or in derivatives that provide exposure to, foreign (non-U.S.) currencies.

Leveraging Risk  is the risk that certain transactions of the Portfolio, such as reverse repurchase agreements, loans of portfolio securities, and the use of when-issued, delayed delivery or forward commitment transactions, or derivative instruments, may give rise to leverage, magnifying gains and losses and causing the Portfolio to be more volatile than if it had not been leveraged. This means that leverage entails a heightened risk of loss.

42 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

Management Risk  is the risk that the investment techniques and risk analyses applied by PIMCO will not produce the desired results and that legislative, regulatory, or tax restrictions, policies or developments may affect the investment techniques available to PIMCO and the individual portfolio manager in connection with managing the Portfolio. There is no guarantee that the investment objective of the Portfolio will be achieved.

Short Exposure Risk  is the risk of entering into short sales, including the potential loss of more money than the actual cost of the investment, and the risk that the third party to the short sale will not fulfill its contractual obligations, causing a loss to the Portfolio.

8. MASTER NETTING ARRANGEMENTS

The Portfolio may be subject to various netting arrangements (“Master Agreements”) with select counterparties. Master Agreements govern the terms of certain transactions, and are intended to reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that is intended to improve legal certainty. Each type of Master Agreement governs certain types of transactions. Different types of transactions may be traded out of different legal entities or affiliates of a particular organization, resulting in the need for multiple agreements with a single counterparty. As the Master Agreements are specific to unique operations of different asset types, they allow the Portfolio to close out and net its total exposure to a counterparty in the event of a default with respect to all the transactions governed under a single Master Agreement with a counterparty. For financial reporting purposes the Statement of Assets and Liabilities generally presents derivative assets and liabilities on a gross basis, which reflects the full risks and exposures prior to netting.

Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. Under most Master Agreements, collateral is routinely transferred if the total net exposure to certain transactions (net of existing collateral already in place) governed under the relevant Master Agreement with a counterparty in a given account exceeds a specified threshold, which typically ranges from zero to $250,000 depending on the counterparty and the type of Master Agreement. United States Treasury Bills and U.S. dollar cash are generally the preferred forms of collateral, although other securities may be used depending on the terms outlined in the applicable Master Agreement. Securities and cash pledged as collateral are reflected as assets on the Statement of Assets and Liabilities as either a component of Investments at value (securities) or Deposits with counterparty. Cash collateral received is not typically held in a segregated account and as such is reflected as a liability on the Statement of Assets and Liabilities as Deposits from counterparty. The market value of any securities received as collateral is not reflected as a

component of NAV. The Portfolio’s overall exposure to counterparty risk can change substantially within a short period, as it is affected by each transaction subject to the relevant Master Agreement.

Master Repurchase Agreements and Global Master Repurchase Agreements (individually and collectively “Master Repo Agreements”) govern repurchase, reverse repurchase, and certain sale-buyback transactions between the Portfolio and select counterparties. Master Repo Agreements maintain provisions for, among other things, initiation, income payments, events of default, and maintenance of collateral. The market value of transactions under the Master Repo Agreement, collateral pledged or received, and the net exposure by counterparty as of period end are disclosed in the Notes to Schedule of Investments.

Master Securities Forward Transaction Agreements (“Master Forward Agreements”) govern certain forward settling transactions, such as TBA securities, delayed-delivery or certain sale-buyback transactions by and between the Portfolio and select counterparties. The Master Forward Agreements maintain provisions for, among other things, transaction initiation and confirmation, payment and transfer, events of default, termination, and maintenance of collateral. The market value of forward settling transactions, collateral pledged or received, and the net exposure by counterparty as of period end is disclosed in the Notes to Schedule of Investments.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Such transactions require posting of initial margin as determined by each relevant clearing agency which is segregated in an account at a futures commission merchant (“FCM”) registered with the Commodity Futures Trading Commission (“CFTC”). In the United States, counterparty risk may be reduced as creditors of an FCM cannot have a claim to Portfolio assets in the segregated account. Portability of exposure reduces risk to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives unless the parties have agreed to a separate arrangement in respect of portfolio margining. The market value or accumulated unrealized appreciation (depreciation), initial margin posted, and any unsettled variation margin as of period end are disclosed in the Notes to Schedule of Investments.

International Swaps and Derivatives Association, Inc. Master Agreements and Credit Support Annexes (“ISDA Master Agreements”) govern bilateral OTC derivative transactions entered into by the Portfolio with select counterparties. ISDA Master Agreements maintain provisions for general obligations, representations, agreements, collateral posting and events of default or termination. Events of termination include conditions that may entitle counterparties to elect

ANNUAL REPORT DECEMBER 31, 2018 43

Notes to Financial Statements (Cont.)

to terminate early and cause settlement of all outstanding transactions under the applicable ISDA Master Agreement. Any election to terminate early could be material to the financial statements. In limited circumstances, the ISDA Master Agreement may contain additional provisions that add counterparty protection beyond coverage of existing daily exposure if the counterparty has a decline in credit quality below a predefined level. These amounts, if any, may be segregated with a third-party custodian. The market value of OTC financial derivative instruments, collateral received or pledged, and net exposure by counterparty as of period end are disclosed in the Notes to Schedule of Investments.

9. FEES AND EXPENSES

(a) Investment Advisory Fee  PIMCO is a majority-owned subsidiary of Allianz Asset Management of America L.P. (“Allianz Asset Management”) and serves as the Adviser to the Trust, pursuant to an investment advisory contract. The Adviser receives a monthly fee from the Portfolio at an annual rate based on average daily net assets (the “Investment Advisory Fee”). The Investment Advisory Fee for all classes is charged at an annual rate as noted in the table in note (b) below.

(b) Supervisory and Administrative Fee  PIMCO serves as administrator (the “Administrator”) and provides supervisory and administrative services to the Trust for which it receives a monthly supervisory and administrative fee based on each share class’s average daily net assets (the “Supervisory and Administrative Fee”). As the Administrator, PIMCO bears the costs of various third-party services, including audit, custodial, portfolio accounting, legal, transfer agency and printing costs.

The Investment Advisory Fee and Supervisory and Administrative Fees for all classes, as applicable, are charged at the annual rate as noted in the following table (calculated as a percentage of the Portfolio’s average daily net assets attributable to each class):

Investment Advisory Fee		Supervisory and Administrative Fee
All Classes		Institutional Class			Administrative Class		Advisor Class
	0.25%		0.31%	*		0.31%		0.31%	*

* This particular share class has been registered with the SEC, but has not yet launched.

(c) Distribution and Servicing Fees  PIMCO Investments LLC, a wholly-owned subsidiary of PIMCO, serves as the distributor (“Distributor”) of the Trust’s shares.

The Trust has adopted an Administrative Services Plan with respect to the Administrative Class shares of the Portfolio pursuant to Rule 12b-1 under the Act (the “Administrative Plan”). Under the terms of the Administrative Plan, the Trust is permitted to compensate the Distributor, out of the Administrative Class assets of the Portfolio, in an

amount up to 0.15% on an annual basis of the average daily net assets of that class, for providing or procuring through financial intermediaries administrative, recordkeeping and investor services for Administrative Class shareholders of the Portfolio.

	Distribution Fee			Servicing Fee
Administrative Class		—			0.15%
Advisor Class		0.25%	*		—

* This particular share class has been registered with the SEC, but has not yet launched

(d) Portfolio Expenses  PIMCO provides or procures supervisory and administrative services for shareholders and also bears the costs of various third-party services required by the Portfolio, including audit, custodial, portfolio accounting, legal, transfer agency and printing costs. The Trust is responsible for the following expenses: (i) taxes and governmental fees; (ii) brokerage fees and commissions and other portfolio transaction expenses; (iii) the costs of borrowing money, including interest expense; (iv) fees and expenses of the Trustees who are not “interested persons” of PIMCO or the Trust, and any counsel retained exclusively for their benefit; (v) extraordinary expense, including costs of litigation and indemnification expenses; (vi) organizational expenses; and (vii) any expenses allocated or allocable to a specific class of shares, which include service fees payable with respect to the Administrative Class Shares, and may include certain other expenses as permitted by the Trust’s Multi-Class Plan adopted pursuant to Rule 18f-3 under the Act and subject to review and approval by the Trustees. The ratio of expenses to average net assets per share class, as disclosed on the Financial Highlights, may differ from the annual portfolio operating expenses per share class.

Each Trustee, other than those affiliated with PIMCO or its affiliates, receives an annual retainer of $41,200, plus $4,250 for each Board meeting attended in person, $850 for each committee meeting attended and $750 for each Board meeting attended telephonically, plus reimbursement of related expenses. In addition, the audit committee chair receives an additional annual retainer of $8,000, the valuation oversight committee lead receives an additional annual retainer of $8,500 (to the extent there are co-leads of the valuation oversight committee, the annual retainer will be split evenly between the co-leads, so that each co-lead individually receives an additional annual retainer of $4,250) and each other committee chair receives an additional annual retainer of $5,500. The Lead Independent Trustee receives an annual retainer of $7,000.

These expenses are allocated on a pro rata basis to each Portfolio of the Trust according to its respective net assets. The Trust pays no compensation directly to any Trustee or any other officer who is affiliated with the Administrator, all of whom receive remuneration for their services to the Trust from the Administrator or its affiliates.

44 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

(e) Expense Limitation  Pursuant to the Expense Limitation Agreement, PIMCO has agreed to waive a portion of the Portfolio’s Supervisory and Administrative Fee, or reimburse the Portfolio, to the extent that the Portfolio’s organizational expenses, pro rata share of expenses related to obtaining or maintaining a Legal Entity Identifier and pro rata share of Trustee Fees exceed 0.0049%, the “Expense Limit” (calculated as a percentage of the Portfolio’s average daily net assets attributable to each class). The Expense Limitation Agreement will automatically renew for one-year terms unless PIMCO provides written notice to the Trust at least 30 days prior to the end of the then current term.

Under certain conditions, PIMCO may be reimbursed for amounts waived pursuant to the Expense Limitation Agreement in future periods, not to exceed thirty-six months after the waiver. At December 31, 2018, there were no recoverable amounts.

10. RELATED PARTY TRANSACTIONS

The Adviser, Administrator, and Distributor are related parties. Fees paid to these parties are disclosed in Note 9, Fees and Expenses, and the accrued related party fee amounts are disclosed on the Statement of Assets and Liabilities.

11. GUARANTEES AND INDEMNIFICATIONS

Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust (including the Trust’s investment manager) is indemnified, to the extent permitted by the Act, against certain liabilities that may arise out of performance of their duties to the Portfolio. Additionally, in the normal course of business, the Portfolio enters into contracts that contain a variety of indemnification

clauses. The Portfolio’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Portfolio that have not yet occurred. However, the Portfolio has not had prior claims or losses pursuant to these contracts.

12. PURCHASES AND SALES OF SECURITIES

The length of time the Portfolio has held a particular security is not generally a consideration in investment decisions. A change in the securities held by the Portfolio is known as “portfolio turnover.” The Portfolio may engage in frequent and active trading of portfolio securities to achieve its investment objective, particularly during periods of volatile market movements. High portfolio turnover may involve correspondingly greater transaction costs to the Portfolio, including brokerage commissions or dealer mark-ups and other transaction costs on the sale of securities and reinvestments in other securities. Such sales may also result in realization of taxable capital gains, including short-term capital gains (which are generally taxed at ordinary income tax rates). The transaction costs and tax effects associated with portfolio turnover may adversely affect a shareholder’s performance. The portfolio turnover rates are reported in the Financial Highlights.

Purchases and sales of securities (excluding short-term investments) for the period ended December 31, 2018, were as follows (amounts in thousands^†):

U.S. Government/Agency				All Other
Purchases		Sales		Purchases		Sales
$	370,528	$	357,685	$	32,983	$	30,878

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

13. SHARES OF BENEFICIAL INTEREST

The Trust may issue an unlimited number of shares of beneficial interest with a $0.001 par value. Changes in shares of beneficial interest were as follows (shares and amounts in thousands^†):

	Year Ended 12/31/2018						Year Ended 12/31/2017
	Shares			Amount			Shares			Amount
Receipts for shares sold
Administrative Class		2,026		$	19,087			1,952		$	18,378
Issued as reinvestment of distributions
Administrative Class		203			1,911			158			1,484
Cost of shares redeemed
Administrative Class		(1,885	)		(17,715	)		(2,352	)		(22,015	)
Net increase (decrease) resulting from Portfolio share transactions		344		$	3,283			(242	)	$	(2,153	)

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

As of December 31, 2018, one shareholder owned 10% or more of the Portfolio’s total outstanding shares comprising 89% of the Portfolio, and the shareholder is a related party of the Portfolio. Related parties

may include, but are not limited to, the investment adviser and its affiliates, affiliated broker dealers, fund of funds and directors or employees of the Trust or Adviser.

ANNUAL REPORT DECEMBER 31, 2018 45

Notes to Financial Statements (Cont.)

14. REGULATORY AND LITIGATION MATTERS

The Portfolio is not named as a defendant in any material litigation or arbitration proceedings and is not aware of any material litigation or claim pending or threatened against it. The foregoing speaks only as of the date of this report.

15. FEDERAL INCOME TAX MATTERS

The Portfolio intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code (the “Code”) and distribute all of its taxable income and net realized gains, if applicable, to shareholders. Accordingly, no provision for Federal income taxes has been made.

The Portfolio may be subject to local withholding taxes, including those imposed on realized capital gains. Any applicable foreign capital gains tax is accrued daily based upon net unrealized gains, and may be payable following the sale of any applicable investments.

In accordance with U.S. GAAP, the Adviser has reviewed the Portfolio’s tax positions for all open tax years. As of December 31, 2018, the

Portfolio has recorded no liability for net unrecognized tax benefits relating to uncertain income tax positions it has taken or expects to take in future tax returns.

The Portfolio files U.S. federal, state, and local tax returns as required. The Portfolio’s tax returns are subject to examination by relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return but which can be extended to six years in certain circumstances. Tax returns for open years have incorporated no uncertain tax positions that require a provision for income taxes.

Shares of the Portfolio currently are sold to segregated asset accounts (“Separate Accounts”) of insurance companies that fund variable annuity contracts and variable life insurance policies (“Variable Contracts”). Please refer to the prospectus for the Separate Account and Variable Contract for information regarding Federal income tax treatment of distributions to the Separate Account.

As of December 31, 2018, the components of distributable taxable earnings are as follows (amounts in thousands^†):

	Undistributed Ordinary Income(1)		Undistributed Long-Term Capital Gains		Net Tax Basis Unrealized Appreciation/ (Depreciation)(2)			Other Book-to-Tax Accounting Differences(3)			Accumulated Capital Losses(4)			Qualified Late-Year Loss Deferral - Capital(5)		Qualified Late-Year Loss Deferral - Ordinary(6)
PIMCO Global Core Bond (Hedged) Portfolio	$	1,597	$	0	$	(3,160	)	$	(7	)	$	(1,706	)	$	0	$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽¹⁾  Includes undistributed short-term capital gains, if any.

⁽²⁾  Adjusted for open wash sale loss deferrals and the accelerated recognition of unrealized gain or loss on certain futures, options and forward contracts for federal income tax, purposes. Also adjusted for differences between book and tax realized and unrealized gain (loss) on swap contracts, convertible preferred securities, and straddle loss deferrals.

⁽³⁾  Represents differences in income tax regulations and financial accounting principles generally accepted in the United States of America, mainly for organizational costs.

⁽⁴⁾  Capital losses available to offset future net capital gains expire in varying amounts as shown below.

⁽⁵⁾  Capital losses realized during the period November 1, 2018 through December 31, 2018 which the Portfolio elected to defer to the following taxable year pursuant to income tax regulations.

⁽⁶⁾  Specified losses realized during the period November 1, 2018 through December 31, 2018 which the Portfolio elected to defer to the following taxable year pursuant to income tax regulations.

Under the Regulated Investment Company Modernization Act of 2010, a fund is permitted to carry forward any new capital losses for an unlimited period. Additionally, such capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term under previous law.

As of December 31, 2018, the Portfolio had the following post-effective capital losses with no expiration (amounts in thousands^†):

	Short-Term		Long-Term
PIMCO Global Core Bond (Hedged) Portfolio	$	1,190	$	516

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

46 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

As of December 31, 2018, the aggregate cost and the net unrealized appreciation/(depreciation) of investments for federal income tax purposes are as follows (amounts in thousands^†):

	Federal Tax Cost		Unrealized Appreciation		Unrealized (Depreciation)			Net Unrealized Appreciation/ (Depreciation)(7)
PIMCO Global Core Bond (Hedged) Portfolio	$	144,919	$	4,025	$	(7,166	)	$	(3,141	)

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽⁷⁾  Primary differences, if any, between book and tax net unrealized appreciation/(depreciation) on investments are attributable to open wash sale loss deferrals, unrealized gain or loss on certain futures, options and forward contracts, realized and unrealized gain (loss) swap contracts, straddle loss deferrals, and convertible preferred securities.

For the fiscal year ended December 31, 2018 and December 31, 2017, respectively, the Portfolio made the following tax basis distributions (amounts in thousands^†):

	December 31, 2018						December 31, 2017
	Ordinary Income Distributions(8)		Long-Term Capital Gain Distributions		Return of Capital(9)		Ordinary Income Distributions(8)		Long-Term Capital Gain Distributions		Return of Capital(9)
PIMCO Global Core Bond (Hedged) Portfolio	$	1,911	$	0	$	0	$	1,490	$	0	$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽⁸⁾  Includes short-term capital gains distributed, if any.

⁽⁹⁾  A portion of the distributions made represents a tax return of capital. Return of capital distributions have been reclassified from undistributed net investment income to paid-in capital to more appropriately conform financial accounting to tax accounting.

ANNUAL REPORT DECEMBER 31, 2018 47

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of PIMCO Variable Insurance Trust and Shareholders of

PIMCO Global Core Bond (Hedged) Portfolio

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of PIMCO Global Core Bond (Hedged) Portfolio (one of the portfolios constituting PIMCO Variable Insurance Trust, referred to hereafter as the “Portfolio”) as of December 31, 2018, the related statement of operations for the year ended December 31, 2018, the statement of changes in net assets for each of the two years in the period ended December 31, 2018, including the related notes, and the financial highlights for each of the five years in the period ended December 31, 2018 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Portfolio as of December 31, 2018, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended December 31, 2018 and the financial highlights for each of the five years in the period ended December 31, 2018 in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Portfolio’s management. Our responsibility is to express an opinion on the Portfolio’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Portfolio in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2018 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

Kansas City, Missouri

February 20, 2019

We have served as the auditor of one or more investment companies in PIMCO Variable Insurance Trust since 1998.

48 PIMCO VARIABLE INSURANCE TRUST

Glossary: (abbreviations that may be used in the preceding statements)

(Unaudited)

Counterparty Abbreviations:
BOA	Bank of America N.A.	GRE	RBS Securities, Inc.	NGF	Nomura Global Financial Products, Inc.
BPS	BNP Paribas S.A.	GST	Goldman Sachs International	RBC	Royal Bank of Canada
BRC	Barclays Bank PLC	HUS	HSBC Bank USA N.A.	RYL	Royal Bank of Scotland Group PLC
BSN	Bank of Nova Scotia	IND	Crédit Agricole Corporate and Investment Bank S.A.	SCX	Standard Chartered Bank
CBK	Citibank N.A.	JPM	JPMorgan Chase Bank N.A.	SOG	Societe Generale
DUB	Deutsche Bank AG	MSB	Morgan Stanley Bank, N.A	SSB	State Street Bank and Trust Co.
FICC	Fixed Income Clearing Corporation	MYC	Morgan Stanley Capital Services, Inc.	TOR	Toronto Dominion Bank
GLM	Goldman Sachs Bank USA	MYI	Morgan Stanley & Co. International PLC	UAG	UBS AG Stamford
Currency Abbreviations:
ARS	Argentine Peso	DKK	Danish Krone	PLN	Polish Zloty
AUD	Australian Dollar	EUR	Euro	RON	Romanian New Leu
BRL	Brazilian Real	GBP	British Pound	RUB	Russian Ruble
CAD	Canadian Dollar	JPY	Japanese Yen	SEK	Swedish Krona
CHF	Swiss Franc	KRW	South Korean Won	TWD	Taiwanese Dollar
CLP	Chilean Peso	MXN	Mexican Peso	USD (or $)	United States Dollar
CNH	Chinese Renminbi (Offshore)	NOK	Norwegian Krone	ZAR	South African Rand
COP	Colombian Peso	NZD	New Zealand Dollar
Exchange Abbreviations:
CBOT	Chicago Board of Trade	OTC	Over the Counter
Index/Spread Abbreviations:
BADLARPP	Argentina Badlar Floating Rate Notes	CDX.EM	Credit Derivatives Index - Emerging Markets	US0003M	3 Month USD Swap Rate
BP0003M	3 Month GBP-LIBOR	CDX.IG	Credit Derivatives Index - Investment Grade
Other Abbreviations:
ABS	Asset-Backed Security	DAC	Designated Activity Company	OAT	Obligations Assimilables du Trésor
ALT	Alternate Loan Trust	EURIBOR	Euro Interbank Offered Rate	OIS	Overnight Index Swap
BBR	Bank Bill Rate	JIBAR	Johannesburg Interbank Agreed Rate	PIK	Payment-in-Kind
BTP	Buoni del Tesoro Poliennali	KORIBOR	Korea Interbank Offered Rate	TBA	To-Be-Announced
CDI	Brazil Interbank Deposit Rate	LIBOR	London Interbank Offered Rate	TIIE	Tasa de Interés Interbancaria de Equilibrio “Equilibrium Interbank Interest Rate”
CLO	Collateralized Loan Obligation	Lunar	Monthly payment based on 28-day periods. One year consists of 13 periods.

ANNUAL REPORT DECEMBER 31, 2018 49

Federal Income Tax Information

(Unaudited)

As required by the Internal Revenue Code (the “Code”) and Treasury Regulations, if applicable, shareholders must be notified regarding the status of qualified dividend income and the dividend received deduction.

Dividend Received Deduction.  Corporate shareholders are generally entitled to take the dividend received deduction on the portion of a Fund’s dividend distribution that qualifies under tax law. The percentage of the following Portfolio’s fiscal 2018 ordinary income dividend that qualifies for the corporate dividend received deduction is set forth in the table below.

Qualified Dividend Income.  Under the Jobs and Growth Tax Relief Reconciliation Act of 2003 (the “Act”), the percentage of ordinary dividends paid during the calendar year designated as “qualified dividend income”, as defined in the Act, subject to reduced tax rates in 2018 is set forth for the Portfolio in the table below.

Qualified Interest Income and Qualified Short-Term Capital Gain (for non-U.S. resident shareholders only).  Under the American Jobs Creation Act of 2004, the amounts of ordinary dividends paid during the fiscal year ended December 31, 2018 considered to be derived from “qualified interest income,” as defined in Section 871(k)(1)(E) of the Code, and therefore designated as interest-related dividends, as defined in Section 871(k)(1)(C) of the Code are set forth in the table below. Further, the amounts of ordinary dividends paid during the fiscal year ended December 31, 2018 considered to be derived from “qualified short-term capital gain,” as defined in Section 871(k)(2)(D) of the Code, and therefore designated as qualified short-term gain dividends, as defined by Section 871(k)(2)(C) of the Code are also set forth in the table below.

	Dividend Received Deduction %		Qualified Dividend Income %		Qualified Interest Income (000s† )		Qualified Short-Term Capital Gain (000s†)
PIMCO Global Core Bond (Hedged) Portfolio		0.00%		0.00%	$	1,196	$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

Shareholders are advised to consult their own tax advisor with respect to the tax consequences of their investment in the Trust. In January 2019, you will be advised on IRS Form 1099-DIV as to the federal tax status of the dividends and distributions received by you in calendar year 2018.

50 PIMCO VARIABLE INSURANCE TRUST

Management of the Trust

(Unaudited)

The charts below identify the Trustees and executive officers of the Trust. Unless otherwise indicated, the address of all persons below is 650 Newport Center Drive, Newport Beach, CA 92660.

The Portfolio’s Statement of Additional Information includes more information about the Trustees and Officers. To request a free copy, call PIMCO at (888) 87-PIMCO or visit the Portfolio’s website at www.pimco.com/pvit.

Name, Year of Birth and Position Held with Trust*	Term of Office and Length of Time Served†	Principal Occupation(s) During Past 5 Years	Number of Funds in Fund Complex Overseen by Trustee	Other Public Company and Investment Company Directorships Held by Trustee During the Past 5 Years
Interested Trustees1
Peter G. Strelow** (1970) Chairman of the Board and Trustee	05/2017 to present Chairman of the Board - 02/2019 to present	Managing Director and Co-Chief Operating Officer, PIMCO. President of the Trust, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Chief Administrative Officer, PIMCO.	153	Chairman and Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT.
Brent R. Harris** (1959) Trustee	08/1997 to present	Managing Director, PIMCO. Senior Vice President of the Trust, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Formerly, member of Executive Committee, PIMCO.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT; Director, StocksPLUS® Management, Inc; and member of Board of Governors, Investment Company Institute. Formerly, Chairman, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT.
Independent Trustees
George E. Borst (1948) Trustee	04/2015 to present	Executive Advisor, McKinsey & Company (since 10/14); Formerly, Executive Advisor, Toyota Financial Services (10/13-12/14); and CEO, Toyota Financial Services (1/01-9/13).	132	Trustee, PIMCO Funds and PIMCO ETF Trust; Director, MarineMax Inc.
Jennifer Holden Dunbar (1963) Trustee	04/2015 to present	Managing Director, Dunbar Partners, LLC (business consulting and investments). Formerly, Partner, Leonard Green & Partners, L.P.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT; Director, PS Business Parks; Director, Big 5 Sporting Goods Corporation.
Kym M. Hubbard (1957) Trustee	02/2017 to present	Formerly, Global Head of Investments, Chief Investment Officer and Treasurer, Ernst & Young.	132	Trustee, PIMCO Funds and PIMCO ETF Trust; Director, State Auto Financial Corporation.
Gary F. Kennedy (1955) Trustee	04/2015 to present	Formerly, Senior Vice President, General Counsel and Chief Compliance Officer, American Airlines and AMR Corporation (now American Airlines Group) (1/03-1/14).	132	Trustee, PIMCO Funds and PIMCO ETF Trust.
Peter B. McCarthy (1950) Trustee	04/2015 to present	Formerly, Assistant Secretary and Chief Financial Officer, United States Department of Treasury; Deputy Managing Director, Institute of International Finance.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Ronald C. Parker (1951) Lead Independent Trustee	07/2009 to present Lead Independent Trustee - 02/2017 to present	Director of Roseburg Forest Products Company. Formerly, Chairman of the Board, The Ford Family Foundation; and President, Chief Executive Officer, Hampton Affiliates (forestry products).	153	Lead Independent Trustee, PIMCO Funds and PIMCO ETF Trust; Trustee, PIMCO Equity Series and PIMCO Equity Series VIT.

* Unless otherwise noted, the information for the individuals listed is as of December 31, 2018.

** Effective February 13, 2019, Mr. Strelow became the Chairman of the Trust.

¹  Mr. Harris and Mr. Strelow are “interested persons” of the Trust (as that term is defined in the 1940 Act) because of their affiliations with PIMCO.

^†  Trustees serve until their successors are duly elected and qualified.

ANNUAL REPORT DECEMBER 31, 2018 51

Management of the Trust (Cont.)

(Unaudited)

Executive Officers

Name, Year of Birth and Position Held with Trust	Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years*
Peter G. Strelow (1970) President	01/2015 to present	Managing Director and Co-Chief Operating Officer, PIMCO. President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Chief Administrative Officer, PIMCO.
Joshua D. Ratner (1976)** Chief Legal Officer	11/2018 to present Vice President - Senior Counsel and Secretary 11/2013 to 11/2018 Assistant Secretary 10/2007 to 01/2011	Executive Vice President and Deputy General Counsel, PIMCO. Chief Legal Officer, PIMCO Investments LLC. Chief Legal Officer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Jennifer E. Durham (1970) Chief Compliance Officer	07/2004 to present	Managing Director and Chief Compliance Officer, PIMCO. Chief Compliance Officer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Brent R. Harris (1959) Senior Vice President	01/2015 to present President 03/2009 to 01/2015	Managing Director, PIMCO. Senior Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Formerly, member of Executive Committee, PIMCO.
Ryan G. Leshaw (1980) Vice President, Senior Counsel and Secretary	11/2018 to present Assistant Secretary 05/2012 to 11/2018	Senior Vice President and Senior Counsel, PIMCO. Vice President, Senior Counsel and Secretary, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Assistant Secretary, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Associate, Willkie Farr & Gallagher LLP.
Wu-Kwan Kit (1981) Assistant Secretary	08/2017 to present	Senior Vice President and Senior Counsel, PIMCO. Assistant Secretary, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Vice President, Senior Counsel and Secretary, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Assistant General Counsel, VanEck Associates Corp.
Stacie D. Anctil (1969) Vice President	05/2015 to present Assistant Treasurer 11/2003 to 05/2015	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
William G. Galipeau (1974) Vice President	11/2013 to present	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Eric D. Johnson (1970) Vice President	05/2011 to present	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Henrik P. Larsen (1970) Vice President	02/1999 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Bijal Y. Parikh (1978) Vice President	02/2017 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Greggory S. Wolf (1970) Vice President	05/2011 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Trent W. Walker (1974) Treasurer	11/2013 to present	Executive Vice President, PIMCO. Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Erik C. Brown (1967)** Assistant Treasurer	02/2001 to present	Executive Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Colleen D. Miller (1980)** Assistant Treasurer	02/2017 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Christopher M. Morin (1980) Assistant Treasurer	08/2016 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Jason J. Nagler (1982)** Assistant Treasurer	05/2015 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.

* The term “PIMCO-Sponsored Closed-End Funds” as used herein includes: PIMCO California Municipal Income Fund, PIMCO California Municipal Income Fund II, PIMCO California Municipal Income Fund III, PIMCO Municipal Income Fund, PIMCO Municipal Income Fund II, PIMCO Municipal Income Fund III, PIMCO New York Municipal Income Fund, PIMCO New York Municipal Income Fund II, PIMCO New York Municipal Income Fund III, PCM Fund Inc., PIMCO Corporate & Income Opportunity Fund, PIMCO Corporate & Income Strategy Fund, PIMCO Dynamic Credit and Mortgage Income Fund, PIMCO Dynamic Income Fund, PIMCO Global StocksPLUS^® & Income Fund, PIMCO High Income Fund, PIMCO Income Opportunity Fund, PIMCO Income Strategy Fund, PIMCO Income Strategy Fund II and PIMCO Strategic Income Fund, Inc.; the term “PIMCO-Sponsored Interval Funds” as used herein includes: PIMCO Flexible Credit Income Fund and PIMCO Flexible Municipal Income Fund.

** The address of these officers is Pacific Investment Management Company LLC, 1633 Broadway, New York, New York 10019.

52 PIMCO VARIABLE INSURANCE TRUST

Privacy Policy¹

(Unaudited)

The Trust^2,3 considers customer privacy to be a fundamental aspect of its relationships with shareholders and is committed to maintaining the confidentiality, integrity and security of its current, prospective and former shareholders’ non-public personal information. The Trust has developed policies that are designed to protect this confidentiality, while allowing shareholder needs to be served.

OBTAINING PERSONAL INFORMATION

In the course of providing shareholders with products and services, the Trust and certain service providers to the Trust, such as the Trust’s investment advisers or sub-advisers (“Advisers”), may obtain non-public personal information about shareholders, which may come from sources such as account applications and other forms, from other written, electronic or verbal correspondence, from shareholder transactions, from a shareholder’s brokerage or financial advisory firm, financial advisor or consultant, and/or from information captured on applicable websites.

RESPECTING YOUR PRIVACY

As a matter of policy, the Trust does not disclose any non-public personal information provided by shareholders or gathered by the Trust to non-affiliated third parties, except as required or permitted by law or as necessary for such third parties to perform their agreements with respect to the Trust. As is common in the industry, non-affiliated companies may from time to time be used to provide certain services, such as preparing and mailing prospectuses, reports, account statements and other information, conducting research on shareholder satisfaction and gathering shareholder proxies. The Trust or its affiliates may also retain non-affiliated companies to market the Trust’s shares or products which use the Trust’s shares and enter into joint marketing arrangements with them and other companies. These companies may have access to a shareholder’s personal and account information, but are permitted to use this information solely to provide the specific service or as otherwise permitted by law. In most cases, the shareholders will be clients of a third party, but the Trust may also provide a shareholder’s personal and account information to the shareholder’s respective brokerage or financial advisory firm and/or financial advisor or consultant.

SHARING INFORMATION WITH THIRD PARTIES

The Trust reserves the right to disclose or report personal or account information to non-affiliated third parties in limited circumstances where the Trust believes in good faith that disclosure is required under law, to cooperate with regulators or law enforcement authorities, to protect its rights or property, or upon reasonable request by any fund advised by PIMCO in which a shareholder has invested. In addition, the Trust may disclose information about a shareholder or a shareholder’s accounts to a non-affiliated third party at the shareholder’s request or with the consent of the shareholder.

SHARING INFORMATION WITH AFFILIATES

The Trust may share shareholder information with its affiliates in connection with servicing shareholders’ accounts, and subject to applicable law may provide shareholders with information about products and services that the Trust or its Advisers, distributors or their affiliates (“Service Affiliates”) believe may be of interest to such shareholders. The information that the Trust may share may include,

for example, a shareholder’s participation in the Trust or in other investment programs sponsored by a Service Affiliate, a shareholder’s ownership of certain types of accounts (such as IRAs), information about the Trust’s experiences or transactions with a shareholder, information captured on applicable websites, or other data about a shareholder’s accounts, subject to applicable law. The Trust’s Service Affiliates, in turn, are not permitted to share shareholder information with non-affiliated entities, except as required or permitted by law.

PROCEDURES TO SAFEGUARD PRIVATE INFORMATION

The Trust takes seriously the obligation to safeguard shareholder non-public personal information. In addition to this policy, the Trust has implemented procedures that are designed to restrict access to a shareholder’s non-public personal information to internal personnel who need to know that information to perform their jobs, such as servicing shareholder accounts or notifying shareholders of new products or services. Physical, electronic and procedural safeguards are in place to guard a shareholder’s non-public personal information.

INFORMATION COLLECTED FROM WEBSITES

Websites maintained by the Trust or its service providers may use a variety of technologies to collect information that help the Trust and its service providers understand how the website is used. Information collected from your web browser (including small files stored on your device that are commonly referred to as “cookies”) allow the websites to recognize your web browser and help to personalize and improve your user experience and enhance navigation of the website. In addition, the Trust or its Service Affiliates may use third parties to place advertisements for the Trust on other websites, including banner advertisements. Such third parties may collect anonymous information through the use of cookies or action tags (such as web beacons). The information these third parties collect is generally limited to technical and web navigation information, such as your IP address, web pages visited and browser type, and does not include personally identifiable information such as name, address, phone number or email address. If you are a registered user of the Trust’s website, the Trust or their service providers or third party firms engaged by the Trust or their service providers may collect or share information submitted by you, which may include personally identifiable information. This information can be useful to the Trust when assessing and offering services and website features. You can change your cookie preferences by changing the setting on your web browser to delete or reject cookies. If you delete or reject cookies, some website pages may not function properly. The Trust does not look for web browser “do not track” requests.

CHANGES TO THE PRIVACY POLICY

From time to time, the Trust may update or revise this privacy policy. If there are changes to the terms of this privacy policy, documents containing the revised policy on the relevant website will be updated.

¹ Amended as of February 15, 2017.

² PIMCO Investments LLC (“PI”) serves as the Trust’s distributor. This Privacy Policy applies to the activities of PI to the extent that PI regularly effects or engages in transactions with or for a Trust shareholder who is the record owner of such shares. For purposes of this Privacy Policy, references to “the Trust” shall include PI when acting in this capacity.

³ When distributing this Policy, the Trust may combine the distribution with any similar distribution of its investment adviser’s privacy policy. The distributed, combined policy may be written in the first person (i.e., by using “we” instead of “the Trust”).

ANNUAL REPORT DECEMBER 31, 2018 53

Approval of Investment Advisory Contract and Other Agreements

Approval of Renewal of the Amended and Restated Investment Advisory Contract, Supervision and Administration Agreement and Amended and Restated Asset Allocation Sub-Advisory Agreement

At a meeting held on August 20-21, 2018, the Board of Trustees (the “Board”) of PIMCO Variable Insurance Trust (the “Trust”), including the Trustees who are not “interested persons” of the Trust under the Investment Company Act of 1940, as amended (the “Independent Trustees”), considered and unanimously approved the renewal of the Amended and Restated Investment Advisory Contract (the “Investment Advisory Contract”) between the Trust, on behalf of each of the Trust’s series (the “Portfolios”), and Pacific Investment Management Company LLC (“PIMCO”) for an additional one-year term through August 31, 2019. The Board also considered and unanimously approved the renewal of the Supervision and Administration Agreement (together with the Investment Advisory Contract, the “Agreements”) between the Trust, on behalf of the Portfolios, and PIMCO for an additional one-year term through August 31, 2019. In addition, the Board considered and unanimously approved the renewal of the Amended and Restated Asset Allocation Sub-Advisory Agreement (the “Asset Allocation Agreement”) between PIMCO, on behalf of PIMCO All Asset Portfolio and PIMCO All Asset All Authority Portfolio, each a series of the Trust, and Research Affiliates, LLC (“Research Affiliates”) for an additional one-year term through August 31, 2019.

The information, material factors and conclusions that formed the basis for the Board’s approvals are summarized below.

1. INFORMATION RECEIVED

(a) Materials Reviewed:  During the course of the past year, the Trustees received a wide variety of materials relating to the services provided by PIMCO and Research Affiliates to the Trust. At each of its quarterly meetings, the Board reviewed the Portfolios’ investment performance and a significant amount of information relating to Portfolio operations, including shareholder services, valuation and custody, the Portfolios’ compliance program and other information relating to the nature, extent and quality of services provided by PIMCO and Research Affiliates to the Trust and each of the Portfolios, as applicable. In considering whether to approve the renewal of the Agreements and the Asset Allocation Agreement, the Board reviewed additional information, including, but not limited to, comparative industry data with regard to investment performance, advisory and supervisory and administrative fees and expenses, financial information for PIMCO and, where relevant, Research Affiliates, information regarding the profitability to PIMCO of its relationship with the Portfolios, information about the personnel providing investment management services, other advisory services and supervisory and administrative services to the Portfolios, and information about the fees

charged and services provided to other clients with similar investment mandates as the Portfolios, where applicable. In addition, the Board reviewed materials provided by counsel to the Trust and the Independent Trustees, which included, among other things, memoranda outlining legal duties of the Board in considering the renewal of the Agreements and the Asset Allocation Agreement.

(b) Review Process:  In connection with considering the renewal of the Agreements and the Asset Allocation Agreement, the Board reviewed written materials prepared by PIMCO and, where applicable, Research Affiliates in response to requests from counsel to the Trust and the Independent Trustees encompassing a wide variety of topics. The Board requested and received assistance and advice regarding, among other things, applicable legal standards from counsel to the Trust and the Independent Trustees, and reviewed comparative fee and performance data prepared at the Board’s request by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company performance information and fee and expense data. The Board received information on matters related to the Agreements and the Asset Allocation Agreement and met both as a full Board and in a separate session of the Independent Trustees, without management present, at the August 20-21, 2018 meeting. The Independent Trustees also conducted in-person meetings with counsel to the Trust and the Independent Trustees, including one on July 18, 2018, to discuss the Lipper Report, as defined below, and certain aspects of the 2018 15(c) materials presented and other matters deemed relevant to their consideration of the renewal of the Agreements and the Asset Allocation Agreement. In connection with its review of the Agreements, the Board received comparative information on the performance and the fees and expenses of other peer group funds and share classes. In addition, the Independent Trustees requested and received supplemental information.

The approval determinations were made on the basis of each Trustee’s business judgment after consideration and evaluation of all the information presented. Individual Trustees may have given different weights to certain factors and assigned various degrees of materiality to information received in connection with the approval process. In deciding to approve the renewal of the Agreements and the Asset Allocation Agreement, the Board did not identify any single factor or particular information that, in isolation, was controlling. The discussion below is intended to summarize the broad factors and information that figured prominently in the Board’s consideration of the renewal of the Agreements and the Asset Allocation Agreement, but is not intended to summarize all of the factors considered by the Board.

2. NATURE, EXTENT AND QUALITY OF SERVICES

(a) PIMCO, Research Affiliates, their Personnel, and Resources:  The Board considered the depth and quality of PIMCO’s investment management process, including: the experience, capability and integrity

54 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

of its senior management and other personnel; the overall financial strength and stability of its organization; and the ability of its organizational structure to address changes in the Portfolios’ asset levels. The Board also considered the various services in addition to portfolio management that PIMCO provides under the Investment Advisory Contract. The Board noted that PIMCO makes available to its investment professionals a variety of resources and systems relating to investment management, compliance, trading, performance and portfolio accounting. The Board also noted PIMCO’s commitment to enhancing and investing in its global infrastructure, technology capabilities, risk management processes and the specialized talent needed to stay at the forefront of the competitive investment management industry and to strengthen its ability to deliver services under the Agreements. The Board considered PIMCO’s policies, procedures and systems reasonably designed to assure compliance with applicable laws and regulations and its commitment to further developing and strengthening these programs, its oversight of matters that may involve conflicts of interest between the Portfolios’ investments and those of other accounts managed by PIMCO, and its efforts to keep the Trustees informed about matters relevant to the Portfolios and their shareholders. The Board also considered PIMCO’s continuous investment in new disciplines and talented personnel, which has enhanced PIMCO’s services to the Portfolios and has allowed PIMCO to introduce innovative new portfolios over time. In addition, the Board considered the nature and quality of services provided by PIMCO to the wholly-owned subsidiaries of certain applicable Portfolios.

The Trustees considered that PIMCO has continued to strengthen the process it uses to actively manage counterparty risk and to assess the financial stability of counterparties with which the Portfolios do business, to manage collateral and to protect Portfolios from an unforeseen deterioration in the creditworthiness of trading counterparties. The Trustees noted that, consistent with its fiduciary duty, PIMCO executes transactions through a competitive best execution process and uses only those counterparties that meet its stringent and monitored criteria. The Trustees considered that PIMCO’s collateral management team utilizes a counterparty risk system to analyze portfolio level exposure and collateral being exchanged with counterparties.

In addition, the Trustees considered new services and service enhancements that PIMCO has implemented since the Board renewed the Agreements in 2017, including, but not limited to upgrading the global network and infrastructure to support trading and risk management systems; enhancing and continuing to expand capabilities within the pre-trade compliance platform; enhancing flexible client reporting capabilities to support increased differentiation within local markets; developing new application and database frameworks to support new trading strategies; expanding proprietary applications

suites to enrich capabilities across Compliance, Analytics, Risk Management, Client Reporting, Attribution and Customer Relationship management; continuing investment in its enterprise risk management function, including PIMCO’s cybersecurity program and global business continuity functions; oversight by the Americas Fund Oversight Committee, which provides senior-level oversight and supervision focused on new and ongoing fund-related business opportunities; engaging a third party service provider to implement the SEC reporting modernization regime; expanding the Fund Treasurer’s Office; enhancing a proprietary application to provide portfolio managers with more timely and high quality income reporting; developing a global tax management application that will enable investment professionals to access foreign market and security tax information on a real-time basis; enhancing reporting of tax reporting for portfolio managers for income products with improved transparency on tax factors impacting income generation and dividend yield; upgrading a proprietary application to allow shareholder subscription and redemption data to pass to portfolio managers more quickly and efficiently; and continuing to expand the pricing portal and the proprietary performance reconciliation tool.

Similarly, the Board considered the asset allocation services provided by Research Affiliates to the PIMCO All Asset Portfolio and PIMCO All Asset All Authority Portfolio. The Board further considered PIMCO’s oversight of Research Affiliates in connection with Research Affiliates providing asset allocation services to the Asset Portfolio and All Asset All Authority Portfolio. The Board also considered the depth and quality of Research Affiliates’ investment management and research capabilities, the experience and capabilities of its portfolio management personnel and the overall financial strength of the organization.

Ultimately, the Board concluded that the nature, extent and quality of services provided or procured by PIMCO under the Agreements and provided by Research Affiliates under the Asset Allocation Agreement are likely to continue to benefit the Portfolios and their respective shareholders, as applicable.

(b) Other Services:  The Board also considered the nature, extent and quality of supervisory and administrative services provided by PIMCO to the Portfolios under the Supervision and Administration Agreement.

The Board considered the terms of the Supervision and Administration Agreement, under which the Trust pays for the supervisory and administrative services provided pursuant to that agreement under what is essentially an all-in fee structure (the “unified fee”). In return, PIMCO provides or procures certain supervisory and administrative services and bears the costs of various third party services required by the Portfolios, including audit, custodial, portfolio accounting, legal, transfer agency, sub-accounting and printing costs. The Board noted that the scope and complexity, as well as the costs, of the supervisory

ANNUAL REPORT DECEMBER 31, 2018 55

Approval of Investment Advisory Contract and Other Agreements (Cont.)

and administrative services provided by PIMCO under the Supervision and Administration Agreement continue to increase. The Board considered PIMCO’s provision of supervisory and administrative services and its supervision of the Trust’s third party service providers to assure that these service providers continue to provide a high level of service relative to alternatives available in the market.

Ultimately, the Board concluded that the nature, extent and quality of the services provided by PIMCO has benefited, and will likely continue to benefit, the Portfolios and their shareholders.

3. INVESTMENT PERFORMANCE

The Board reviewed information from PIMCO concerning the Portfolios’ performance, as available, over short- and long-term periods ended March 31, 2018 and other performance data, as available, over short- and long-term periods ended June 30, 2018 (the “PIMCO Report”) and from Broadridge concerning the Portfolios’ performance, as available, over short- and long-term periods ended March 31, 2018 (the “Lipper Report”).

The Board considered information regarding both the short- and long-term investment performance of each Portfolio relative to its peer group and relevant benchmark index as provided to the Board in advance of each of its quarterly meetings throughout the year, including the PIMCO Report and Lipper Report, which were provided in advance of the August 20-21, 2018 meeting. The Trustees noted that many of the Portfolios outperformed their respective Lipper medians on a net-of-fees basis over the three-, five- and ten-year periods ended March 31, 2018. The Board also noted that, as of March 31, 2018, the Administrative Class of 72%, 35% and 73% of the Portfolios outperformed their respective Lipper category median on a net-of-fees basis over the three-, five- and ten-year periods, respectively. The Trustees considered that other classes of each Portfolio would have substantially similar performance to that of the Administrative Class of the relevant Portfolio on a relative basis because all of the classes are invested in the same portfolio of investments and that differences in performance among classes could principally be attributed to differences in the supervisory and administrative fees and distribution and servicing expenses of each class. The Board also considered that the investment objectives of certain of the Portfolios may not always be identical to those of the other funds in their respective peer groups and that the Lipper categories do not: separate funds based upon maturity or duration; account for the applicable Portfolios’ hedging strategies; distinguish between enhanced index and actively managed equity strategies; include as many subsets as the Portfolios offer (i.e., Portfolios may be placed in a “catch-all” Lipper category to which they do not properly belong); or account for certain fee waivers. The Board noted that, due to these differences, performance comparisons between certain of the Portfolios and their so-called peers may not be

particularly relevant to the consideration of Portfolio performance but found the comparative information supported its overall evaluation.

The Board noted that performance for a majority of the Portfolios has been mixed compared to their respective benchmark indexes over the five-year period ended March 31, 2018. The Board noted that, as of March 31, 2018, 70%, 23% and 92% of the Trust’s assets (based on Administrative Class performance) outperformed their respective benchmarks on a net-of-fees basis over the three-, five- and ten-year periods, respectively. The Board also discussed actions that have been taken by PIMCO to attempt to improve performance and took note of PIMCO’s plans to monitor performance going forward.

The Board considered PIMCO’s discussion of the intensive nature of managing bond funds, noting that it requires the management of a number of factors, including: varying maturities; prepayments; collateral management; counterparty management; pay-downs; credit and corporate events; workouts; derivatives; net new issuance in the bond market; and decreased market maker inventory levels. The Board noted that in addition to managing these factors, PIMCO must also balance risk controls and strategic positions in each portfolio it manages, including the Portfolios. Despite these challenges, the Board noted PIMCO’s ability to generate non-market correlated excess performance for its clients over time, including the Trust.

The Board ultimately concluded, within the context of all of its considerations in connection with the Agreements, that PIMCO’s performance record and process in managing the Portfolios indicates that its continued management is likely to benefit the Portfolios and their shareholders, and merits the approval of the renewal of the Agreements.

4. ADVISORY FEES, SUPERVISORY AND ADMINISTRATIVE FEES AND TOTAL EXPENSES

The Board considered that PIMCO seeks to price new funds and classes to scale. PIMCO reported to the Board that, in proposing fees for any Portfolio or class of shares, it considers a number of factors, including, but not limited to, the type and complexity of the services provided, the cost of providing services, the risk assumed by PIMCO in the development of products and the provision of services and the competitive marketplace for financial products. Fees charged to or proposed for different Portfolios for advisory services and supervisory and administrative services may vary in light of these various factors. The Board considered that portfolio pricing generally is not driven by comparison to passively-managed products.

In addition, PIMCO reported to the Board that it periodically reviews the fees charged to the Portfolios. The Board noted that, based upon this review, PIMCO may propose advisory fee or supervisory and administrative fee changes where (i) a Portfolio’s long-term performance warrants additional consideration; (ii) there is a notable aid to market

56 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

position; (iii) a Portfolio’s fee does not reflect the current level of supervision or administrative fees provided to the Portfolio; or (iv) PIMCO would like to change a Portfolio’s overall strategic positioning.

The Board reviewed the advisory fees, supervisory and administrative fees and total expenses of the Portfolios (each as a percentage of average net assets) and compared such amounts with the average and median fee and expense levels of other similar funds. The Board also reviewed information relating to the sub-advisory fees paid to Research Affiliates with respect to applicable Portfolios, taking into account that PIMCO compensates Research Affiliates from the advisory fees paid by such Portfolios to PIMCO. With respect to advisory fees, the Board reviewed data from Broadridge that compared the average and median advisory fees of other funds in a “Peer Group” of comparable funds, as well as the universe of other similar funds. The Board noted that a number of Portfolios have total expense ratios that fall below the average and median expense ratios in their Peer Group and Lipper universe. In addition, the Board considered fee waivers in place for certain of the Portfolios and also noted the fee waivers in place with respect to the advisory fee and supervisory and administrative fee that might result from investments by applicable Portfolios in their respective wholly-owned subsidiaries. The Board also considered that PIMCO reviews the Portfolios’ fee levels and carefully considers changes where appropriate.

The Board also reviewed data comparing the Portfolios’ advisory fees to the standard and negotiated fee rates PIMCO charges to separate accounts, collective investment trusts and sub-advised clients with similar investment strategies. In cases where the fees for other clients were lower than those charged to the Portfolios, the Trustees noted that the differences in fees were attributable to various factors, including, but not limited to, differences in the advisory and other services provided by PIMCO to the Portfolios, differences in the number or extent of the services provided by PIMCO to the Portfolios, the manner in which similar portfolios may be managed, different requirements with respect to liquidity management and the implementation of other regulatory requirements, and the fact that separate accounts may have other contractual arrangements or arrangements across PIMCO strategies that justify different levels of fees. The Board considered that, with respect to collective investment trusts, PIMCO performs fewer or less extensive services because collective investment trusts are generally exempt from SEC regulation; investors in a collective investment trust may receive shareholder services from a trustee bank, rather than PIMCO; collective investment trusts have less regulatory disclosure; and the management structure of collective investment trusts differs from that of funds. The Trustees also considered that PIMCO faces increased entrepreneurial, legal and regulatory risk in sponsoring and managing mutual funds and ETFs as compared to separate accounts, external sub-advised funds or other investment products.

Regarding advisory fees charged by PIMCO in its capacity as sub-adviser to third party/unaffiliated funds, the Trustees took into account that such fees may be lower than the fees charged by PIMCO to serve as adviser to the Portfolios. The Trustees also took into account that there are various reasons for any such differences in fees, including, but not limited to, the fact that PIMCO may be subject to varying levels of entrepreneurial risk and regulatory requirements, differing legal liabilities on a contract-by-contract basis and different servicing requirements when PIMCO does not serve as the sponsor of a fund and is not principally responsible for all aspects of a fund’s investment program and operations as compared to when PIMCO serves as investment adviser and sponsor.

The Board considered the Portfolios’ supervisory and administrative fees, comparing them to similar funds in the report supplied by Broadridge. The Board also considered that as the Portfolios’ business has become increasingly complex and the number of Portfolios has grown over time, PIMCO has provided an increasingly broad array of fund supervisory and administrative functions. In addition, the Board considered the Trust’s unified fee structure, under which the Trust pays for the supervisory and administrative services it requires for one set fee. In return for this unified fee, PIMCO provides or procures supervisory and administrative services and bears the costs of various third party services required by the Portfolios, including audit, custodial, portfolio accounting, legal, transfer agency, sub-accounting and printing costs. The Board further considered that many other funds pay for comparable services separately, and thus it is difficult to directly compare the Trust’s unified supervisory and administrative fees with the fees paid by other funds for administrative services alone. The Board also considered that the unified supervisory and administrative fee leads to Portfolio fees that are fixed over the contract period, rather than variable. The Board noted that, although the unified fee structure does not have breakpoints, it implicitly reflects economies of scale by fixing the absolute level of Portfolio fees at competitive levels over the contract period even if the Portfolios’ operating costs rise when assets remain flat or decrease. Other factors the Board considered in assessing the unified fee include PIMCO’s approach of pricing Portfolios to scale at inception and reinvesting in other important areas of the business that support the Portfolios. The Board considered that the Portfolios’ unified fee structure meant that fees were not impacted by recent outflows in certain Portfolios, unlike funds without a unified fee structure, which may see increased expense ratios when fixed costs, such as service provider costs, are passed through to a smaller asset base. The Board considered historical advisory and supervisory and administrative fee reductions implemented for different Portfolios and classes, noting that the unified fee can be increased or decreased in subsequent contractual periods and is subject to the periodic reviews discussed above. The Board noted that, with few exceptions, PIMCO

ANNUAL REPORT DECEMBER 31, 2018 57

Approval of Investment Advisory Contract and Other Agreements (Cont.)

has generally maintained Portfolio fees at the same level as implemented when the unified fee was adopted, and has reduced fees for a number of Portfolios in prior years. The Board concluded that the Portfolios’ supervisory and administrative fees were reasonable in relation to the value of the services provided, including the services provided to different classes of shareholders, and that the expenses assumed contractually by PIMCO under the Supervision and Administration Agreement represent, in effect, a cap on overall Portfolio fees during the contractual period, which is beneficial to the Portfolios and their shareholders.

The Board considered the Portfolios’ total expenses and discussed with PIMCO those Portfolios and/or classes of Portfolios that had above median total expenses. The Board noted that many of the Portfolios are unique products that have few peers, if any, and cannot easily be grouped with comparable funds. Upon comparing the Portfolios’ total expenses to other funds in the “Peer Groups” provided by Broadridge, the Board found total expenses of each Portfolio to be reasonable.

The Trustees also considered the advisory fees charged to the Portfolios that operate as funds of funds (the “Funds of Funds”) and the advisory services provided in exchange for such fees. The Trustees determined that such services were in addition to the advisory services provided to the underlying funds in which the Funds of Funds may invest and, therefore, such services were not duplicative of the advisory services provided to the underlying funds. The Board also considered the various fee waiver agreements in place for the Funds of Funds. The Board noted that PIMCO is continuing waivers for these Funds of Funds, as well as for certain other Portfolios of the Trust.

Based on the information presented by PIMCO, Research Affiliates and Broadridge, members of the Board determined, in the exercise of their business judgment, that the level of the advisory fees and supervisory and administrative fees charged by PIMCO under the Agreements, as well as the total expenses of each Portfolio, after the proposals to decrease the management fee, are reasonable.

5. ADVISER COSTS, LEVEL OF PROFITS AND ECONOMIES OF SCALE

The Board reviewed information regarding PIMCO’s costs of providing services to the Funds as a whole, as well as the resulting level of profits to PIMCO under both the adjusted asset profitability method and the profit and loss profitability method, which were each utilized to calculate profitability. To the extent applicable, the Board also reviewed information regarding the portion of a Portfolio’s advisory fee retained by PIMCO, following the payment of sub-advisory fees to Research Affiliates, with respect to the Portfolio. Additionally, the Board noted that profit margins with respect to the Trust shows that the Trust is profitable, although less so than PIMCO Funds due to payments made

by PIMCO to participating insurance companies. The Board further noted PIMCO’s engagement of a third party to review and to make recommendations regarding PIMCO’s processes supporting its profitability estimation materials. The Board also noted that it had received information regarding the structure and manner in which PIMCO’s investment professionals were compensated, and PIMCO’s view of the relationship of such compensation to the attraction and retention of quality personnel. The Board considered PIMCO’s need to invest in global infrastructure, technology capabilities, risk management processes and qualified personnel to reinforce and offer new services and to accommodate changing regulatory requirements.

With respect to potential economies of scale, the Board noted that PIMCO shares the benefits of economies of scale with the Portfolios and their shareholders in a number of ways, including investing in portfolio and trade operations management, firm technology, middle and back office support, legal and compliance, and fund administration logistics, senior management supervision, governance and oversight of those services, and through fee reductions or waivers, the pricing of Portfolios to scale from inception, and the enhancement of services provided to the Portfolios in return for fees paid. The Board reviewed the history of the Portfolios’ fee structure. The Board considered that the Portfolios’ unified fee rates had been set competitively and/or priced to scale from inception, had been held steady during the contractual period at that scaled competitive rate for most Portfolios as assets grew, or as assets declined in the case of some Portfolios, and continued to be competitive compared with peers. The Board also considered that the unified fee is a transparent means of informing a Portfolio’s shareholders of the fees associated with the Portfolio, and that the Portfolio bears certain expenses that are not covered by the advisory fee or the unified fee. The Board further considered the challenges that arise when managing large funds, which can result in certain “diseconomies” of scale and noted that PIMCO has continued to reinvest in many areas of the business to support the Portfolios.

The Trustees considered that the unified fee has provided inherent economies of scale because a Portfolio maintains competitive fixed fees over the annual contract period even if the particular Portfolio’s assets decline and/or operating costs rise. The Trustees further considered that, in contrast, breakpoints may be a proxy for charging higher fees on lower asset levels and that when a fund’s assets decline, breakpoints may reverse, which causes expense ratios to increase. The Trustees also considered that, unlike the Portfolios’ unified fee structure, funds with “pass through” administrative fee structures may experience increased expense ratios when fixed dollar fees are charged against declining fund assets. The Trustees also considered that the unified fee protects shareholders from a rise in operating costs that may result from, among other things, PIMCO’s investments in various business enhancements and infrastructure, including those referenced above. The Trustees noted that PIMCO’s investments in these areas are extensive.

58 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

The Board concluded that the Portfolios’ cost structures were reasonable and that PIMCO is appropriately sharing economies of scale, if any, through the Portfolios’ unified fee structure, generally pricing Portfolios to scale at inception and reinvesting in its business to provide enhanced and expanded services to the Portfolios and their shareholders.

6. ANCILLARY BENEFITS

The Board considered other benefits realized by PIMCO and its affiliates as a result of PIMCO’s relationship with the Trust. Such benefits may include possible ancillary benefits to PIMCO’s institutional investment management business due to the reputation and market penetration of the Trust or third party service providers’ relationship-level fee concessions, which decrease fees paid by PIMCO. The Board also considered that affiliates of PIMCO provide distribution and/or shareholder services to the Portfolios and their shareholders, for which they may be compensated through distribution and servicing fees paid pursuant to the Portfolios’ Rule 12b-1 plans or otherwise. The Board reviewed PIMCO’s soft dollar policies and procedures, noting that while PIMCO has the authority to receive the benefit of research provided by broker-dealers executing portfolio transactions on behalf of the Portfolios, it has adopted a policy not to enter into contractual soft dollar arrangements.

7. CONCLUSIONS

Based on their review, including their comprehensive consideration and evaluation of each of the broad factors and information summarized above, the Independent Trustees and the Board as a whole concluded that the nature, extent and quality of the services rendered to the Portfolios by PIMCO and Research Affiliates supported the renewal of the Agreements and the Asset Allocation Agreement. The Independent Trustees and the Board as a whole concluded that the Agreements and the Asset Allocation Agreement continued to be fair and reasonable to the Portfolios and their shareholders, that the Portfolios’ shareholders received reasonable value in return for the fees paid to PIMCO by the Portfolios under the Agreements and the fees paid to Research Affiliates by PIMCO under the Asset Allocation Agreement, and that the renewal of the Agreements and the Asset Allocation Agreement was in the best interests of the Portfolios and their shareholders.

ANNUAL REPORT DECEMBER 31, 2018 59

General Information

Investment Adviser and Administrator

Pacific Investment Management Company LLC

650 Newport Center Drive

Newport Beach, CA 92660

Distributor

PIMCO Investments LLC

1633 Broadway

New York, NY 10019

Custodian

State Street Bank and Trust Company

801 Pennsylvania Avenue

Kansas City, MO 64105

Transfer Agent

DST Asset Manager Solutions, Inc.

430 W 7th Street STE 219024

Kansas City, MO 64105-1407

Legal Counsel

Dechert LLP

1900 K Street, N.W.

Washington, D.C. 20006

Independent Registered Public Accounting Firm

PricewaterhouseCoopers LLP

1100 Walnut Street, Suite 1300

Kansas City, MO 64106

This report is submitted for the general information of the shareholders of the PIMCO Variable Insurance Trust.

pimco.com/pvit

PVIT07AR_123118

PIMCO VARIABLE INSURANCE TRUST

Annual Report

December 31, 2018

PIMCO Global Diversified Allocation Portfolio

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, you may not be receiving paper copies of the Portfolio’s shareholder reports from the insurance company that offers your contract unless you specifically request paper copies from the insurance company or from your financial intermediary. Instead, the shareholder reports will be made available on a website, and the insurance company will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the insurance company electronically by following the instructions provided by the insurance company.

You may elect to receive all future reports in paper free of charge from the insurance company. You should contact the insurance company if you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all portfolio companies available under your contract at the insurance company.

Table of Contents

	Page
Chairman’s Letter		2
Important Information About the PIMCO Global Diversified Allocation Portfolio		4
Portfolio Summary		6
Expense Example		7
Financial Highlights		8
Statement of Assets and Liabilities		10
Statement of Operations		11
Statements of Changes in Net Assets		12
Schedule of Investments		13
Notes to Financial Statements		16
Report of Independent Registered Public Accounting Firm		30
Glossary		31
Federal Income Tax Information		32
Management of the Trust		33
Privacy Policy		35
Approval of Investment Advisory Contract and Other Agreements		36

This material is authorized for use only when preceded or accompanied by the current PIMCO Variable Insurance Trust (the “Trust”) prospectus for the Portfolio. (The variable product prospectus may be obtained by contacting your Investment Consultant.)

Chairman’s Letter

Dear PIMCO Variable Insurance Trust Shareholder,

Following this letter is the PIMCO Variable Insurance Trust Annual Report, which covers the 12-month reporting period ended December 31, 2018. On the subsequent pages you will find specific details regarding investment results and discussion of the factors that most affected performance during the reporting period.

For the 12-month reporting period ended December 31, 2018

The U.S. economy continued to expand during the reporting period. Looking back, U.S. gross domestic product (“GDP”) grew at an annual pace of 2.2% during the first quarter of 2018. During the second quarter of 2018, GDP growth rose to an annual pace of 4.2%, the strongest since the third quarter of 2014. GDP then expanded at an annual pace of 3.4% during the third quarter of the year. Finally, the Commerce Department’s initial reading for fourth-quarter 2018 GDP has been delayed due to the partial government shutdown.

The Federal Reserve (the “Fed”) continued to normalize monetary policy during the reporting period. During its meetings that concluded in March, June, September and December 2018, the Fed raised the federal funds rate in 0.25% increments. The Fed’s December rate hike pushed the federal funds rate to a range between 2.25% and 2.50%. In addition, the Fed continued to reduce its balance sheet during the reporting period.

Economic activity outside the U.S. initially accelerated during the reporting period, but moderated as it progressed. Against this backdrop, the European Central Bank (the “ECB”) and the Bank of Japan largely maintained their highly accommodative monetary policies, while other central banks took a more hawkish stance. The Bank of England raised rates at its meeting in August 2018 and the Bank of Canada raised rates twice during the reporting period. Meanwhile, the ECB ended its quantitative easing program in December 2018, but indicated that it does not expect to raise interest rates “at least through the summer of 2019.”

The U.S. Treasury yield curve flattened during the reporting period as short-term rates moved up more than longer-term rates. In our view, the increase in rates at the short end of the yield curve was mostly due to Fed interest rate increases. The yield on the benchmark 10-year U.S. Treasury note was 2.69% at the end of the reporting period, up from 2.40% on December 31, 2017. U.S. Treasuries, as measured by the Bloomberg Barclays U.S. Treasury Index, returned 0.86% over the 12 months ended December 31, 2018. Meanwhile, the Bloomberg Barclays U.S. Aggregate Bond Index, a widely used index of U.S. investment grade bonds, returned 0.01% over the period. Riskier fixed income asset classes, including high yield corporate bonds and emerging market debt, generated weak results versus the broad U.S. market. The ICE BofAML U.S. High Yield Index returned -2.27% over the reporting period, whereas emerging market external debt, as represented by the JPMorgan Emerging Markets Bond Index (EMBI) Global, returned -4.61% over the reporting period. Emerging market local bonds, as represented by the JPMorgan Government Bond Index-Emerging Markets Global Diversified Index (Unhedged), returned -6.21% over the period.

Global equities produced poor results during the reporting period. U.S. equities moved sharply higher over the first nine months of the period. We believe this rally was driven by a number of factors, including corporate profits that often exceeded expectations. However, U.S. equities fell sharply during the fourth quarter of 2018. We believe this was triggered by a number of factors, including signs of moderating global growth, concerns over future Fed rate hikes, the ongoing trade dispute between the U.S. and China and the partial U.S. government shutdown. All told, U.S. equities, as represented by the S&P 500 Index, returned -4.38% during the reporting period. Elsewhere, emerging market equities, as measured by the MSCI Emerging Markets Index, returned -14.58% during the reporting period, whereas global equities, as represented by the MSCI World Index, returned -8.71%. Elsewhere, Japanese equities, as represented by the Nikkei 225 Index (in JPY), returned -10.39% during the reporting period and European equities, as represented by the MSCI Europe Index (in EUR), returned -10.57%.

Commodity prices fluctuated and generally declined during the reporting period. When the reporting period began, West Texas crude oil was approximately $65 a barrel, but by the end it was roughly $45 a barrel. This was driven in

2 PIMCO VARIABLE INSURANCE TRUST

part by increased supply and declining global demand. Elsewhere, gold and copper prices also moved lower during the reporting period.

Finally, during the reporting period the foreign exchange markets experienced periods of volatility, due in part to signs of decoupling economic growth and central bank policies, along with a number of geopolitical events. The U.S. dollar produced mixed results against other major currencies during the reporting period. For example, the U.S. dollar appreciated 4.71% and 5.90% versus the euro and the British pound, respectively, whereas the U.S. dollar depreciated 2.66% versus the yen during the reporting period.

Thank you for the assets you have placed with us. We deeply value your trust, and we will continue to work diligently to meet your broad investment needs.

Sincerely,   Brent R. Harris Chairman of the Board,
PIMCO Variable Insurance Trust

Past performance is no guarantee of future results. Unless otherwise noted, index returns reflect the reinvestment of income distributions and capital gains, if any, but do not reflect fees, brokerage commissions or other expenses of investing. It is not possible to invest directly in an unmanaged index.

ANNUAL REPORT DECEMBER 31, 2018 3

Important Information About the PIMCO Global Diversified Allocation Portfolio

PIMCO Variable Insurance Trust (the “Trust”) is an open-end management investment company that includes the PIMCO Global Diversified Allocation Portfolio (the “Portfolio”). The Portfolio is only available as a funding vehicle under variable life insurance policies or variable annuity contracts issued by insurance companies (“Variable Contracts”). Individuals may not purchase shares of the Portfolio directly. Shares of the Portfolio also may be sold to qualified pension and retirement plans outside of the separate account context.

The Portfolio may invest in Institutional Class or Class M shares of any of the funds of PIMCO Funds and PIMCO Equity Series, affiliated open-end investment companies, except funds of funds (“Underlying PIMCO Funds”), and may also invest in other affiliated, including funds of PIMCO ETF Trust, and unaffiliated funds (collectively, the “Acquired Funds”). The Portfolio may invest in a combination of affiliated funds and unaffiliated funds, which may or may not be registered under the Investment Company Act of 1940, as amended (the “1940 Act”), fixed income instruments, equity securities, forwards and derivatives, to the extent permitted under the 1940 Act or exemptive relief therefrom. The cost of investing in the Portfolio will generally be higher than the cost of investing in a mutual fund that only invests directly in individual stocks and bonds.

We believe that equity funds and bond funds have an important role to play in a well-diversified portfolio. It is important to note, however, that equity funds and bond funds are subject to notable risks.

Among other things, equity and equity-related securities may decline in value due to both real and perceived general market, economic, and industry conditions. The values of equity securities, such as common stocks and preferred securities, have historically risen and fallen in periodic cycles and may decline due to general market conditions, which are not specifically related to a particular company, such as real or perceived adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment generally. Equity securities may also decline due to factors that affect a particular industry or industries, such as labor shortages, increased production costs and competitive conditions within an industry. In addition, the value of an equity security may decline for a number of reasons that directly relate to the issuer, such as management performance, financial leverage and reduced demand for the issuer’s goods or services, as well as the historical and prospective earnings of the issuer and the value of its assets. Different types of equity securities may react differently to these developments and a change in the financial condition of a single issuer may affect securities markets as a whole.

During a general downturn in the securities markets, multiple asset classes, including equity securities, may decline in value simultaneously. The market price of equity securities owned by the Portfolio may go up or down, sometimes rapidly or unpredictably. Equity securities generally have greater price volatility than fixed income securities and common stocks generally have the greatest appreciation and depreciation potential of all corporate securities.

Bond funds and fixed income securities are subject to a variety of risks, including interest rate risk, liquidity risk and market risk. In an environment where interest rates may trend upward, rising rates would negatively impact the performance of most bond funds, and fixed income securities and other instruments held by the Portfolio (and/or Underlying PIMCO Funds or Acquired Funds, as applicable) are likely to decrease in value. A wide variety of factors can cause interest rates to rise (e.g., central bank monetary policies, inflation rates, general economic conditions, etc.). In addition, changes in interest rates can be sudden and unpredictable, and there is no guarantee that management will anticipate such movement accurately. The Portfolio may lose money as a result of movements in interest rates.

As of the date of this report, interest rates in the U.S. and many parts of the world, including certain European countries, are at or near historically low levels. Thus, the Portfolio currently faces a heightened level of interest rate risk, especially since the Fed has ended its quantitative easing program and has begun, and may continue, to raise interest rates. To the extent the Fed continues to raise interest rates, there is a risk that rates across the financial system may rise. Further, while bond markets have steadily grown over the past three decades, dealer inventories of corporate bonds are near historic lows in relation to market size. As a result, there has been a significant reduction in the ability of dealers to “make markets.”

Bond funds and individual bonds with a longer duration (a measure used to determine the sensitivity of a security’s price to changes in interest rates) tend to be more sensitive to changes in interest rates, usually making them more volatile than securities or funds with shorter durations. All of the factors mentioned above, individually or collectively, could lead to increased volatility and/or lower liquidity in the fixed income markets, or negatively impact the Portfolio’s performance or cause the Portfolio to incur losses. As a result, the Portfolio may experience increased shareholder redemptions, which among other things, could further reduce the net assets of the Portfolio.

The Portfolio may be subject to various risks as described in the Portfolio’s prospectus and in the Principal Risks in the Notes to Financial Statements.

The geographical classification of foreign (non-U.S.) securities in this report are classified by the country of incorporation of a holding. In certain instances, a security’s country of incorporation may be different from its country of economic exposure.

The United States presidential administration’s enforcement of tariffs on goods from other countries, with a focus on China, has contributed

to international trade tensions and may impact portfolio securities (and/or portfolio securities of Underlying PIMCO Funds or Acquired Funds, as applicable).

The United Kingdom’s decision to leave the European Union may impact Portfolio returns. This decision may cause substantial volatility in foreign exchange markets, lead to weakness in the exchange rate of

4 PIMCO VARIABLE INSURANCE TRUST

the British pound, result in a sustained period of market uncertainty, and destabilize some or all of the other European Union member countries and/or the Eurozone.

On the Portfolio Summary page in this Shareholder Report, the Average Annual Total Return table and Cumulative Returns chart measures performance assuming that any dividend and capital gain distributions were reinvested. The Cumulative Returns chart reflects only Administrative Class performance. Performance may vary by share class based on each class’s expense ratios. The Portfolio measures its performance against at least one broad-based securities market index (“benchmark index”). The benchmark index does not take into account

fees, expenses, or taxes. The Portfolio’s past performance, before and after taxes, is not necessarily an indication of how the Portfolio will perform in the future. There is no assurance that the Portfolio, even if the Portfolio has experienced high or unusual performance for one or more periods, will experience similar levels of performance in the future. High performance is defined as a significant increase in either 1) the Portfolio’s total return in excess of that of the Portfolio’s benchmark between reporting periods or 2) the Portfolio’s total return in excess of the Portfolio’s historical returns between reporting periods. Unusual performance is defined as a significant change in the Portfolio’s performance as compared to one or more previous reporting periods.

The following table discloses the inception dates of the Portfolio and its respective share classes along with the Portfolio’s diversification status as of period end:

Portfolio Name	Portfolio Inception		Administrative Class		Advisor Class		Diversification Status
PIMCO Global Diversified Allocation Portfolio		04/30/12		04/30/12		04/30/13		Diversified

An investment in the Portfolio is not a bank deposit and is not guaranteed or insured by the Federal Deposit Insurance Corporation (“FDIC”) or any other government agency. It is possible to lose money on investments in the Portfolio.

The Trustees are responsible generally for overseeing the management of the Trust. The Trustees authorize the Trust to enter into service agreements with the Adviser, the Distributor, the Administrator and other service providers in order to provide, and in some cases authorize service providers to procure through other parties, necessary or desirable services on behalf of the Trust and the Portfolio. Shareholders are not parties to or third-party beneficiaries of such service agreements. Neither this Portfolio’s prospectus nor summary prospectus, the Trust’s Statement of Additional Information (“SAI”), any contracts filed as exhibits to the Trust’s registration statement, nor any other communications, disclosure documents or regulatory filings (including this report) from or on behalf of the Trust or the Portfolio creates a contract between or among any shareholder of the Portfolio, on the one hand, and the Trust, the Portfolio, a service provider to the Trust or the Portfolio, and/or the Trustees or officers of the Trust, on the other hand. The Trustees (or the Trust and its officers, service providers or other delegates acting under authority of the Trustees) may amend the most recent prospectus or use a new prospectus, summary prospectus or SAI with respect to the Portfolio or the Trust, and/or amend, file and/or issue any other communications, disclosure documents or regulatory filings, and may amend or enter into any contracts to which the Trust or the Portfolio is a party, and interpret the investment objective(s), policies, restrictions and contractual provisions applicable to the Portfolio, without shareholder input or approval, except in circumstances in which shareholder approval is specifically required by law (such as changes to fundamental investment policies) or where a shareholder approval requirement is specifically disclosed in the Trust’s then-current prospectus or SAI.

PIMCO has adopted written proxy voting policies and procedures (“Proxy Policy”) as required by Rule 206(4)-6 under the Investment Advisers Act of 1940, as amended. The Proxy Policy has been adopted by the Trust as the policies and procedures that PIMCO will use when voting proxies on behalf of the Portfolio. A description of the policies and procedures that PIMCO uses to vote proxies relating to portfolio securities of the Portfolio, and information about how the Portfolio voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30th, are available without charge, upon request, by calling the Trust at (888) 87-PIMCO, on the Portfolio’s website at www.pimco.com/pvit, and on the Securities and Exchange Commission’s (“SEC”) website at www.sec.gov.

The Trust files a complete schedule of the Portfolio’s holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. A copy of the Portfolio’s Form N-Q is available on the SEC’s website at www.sec.gov. A copy of the Portfolio’s Form N-Q is also available without charge, upon request, by calling the Trust at (888) 87-PIMCO and on the Portfolio’s website at www.pimco.com/pvit.

The SEC adopted a rule that, beginning in 2021, generally will allow shareholder reports to be delivered to investors by providing access to such reports online free of charge and by mailing a notice that the report is electronically available. Pursuant to the rule, investors may still elect to receive a complete shareholder report in the mail. Instructions for electing to receive paper copies of the Portfolio’s shareholder reports going forward may be found on the front cover of this report.

The SEC adopted amendments to certain disclosure requirements relating to open-end investment companies’ liquidity risk management programs. Effective December 1, 2019, large fund complexes will be required to include in their shareholder reports a discussion of their liquidity risk management programs’ operations over the past year.

ANNUAL REPORT DECEMBER 31, 2018 5

PIMCO Global Diversified Allocation Portfolio

Cumulative Returns Through December 31, 2018

$10,000 invested at the end of the month when the Portfolio’s Administrative Class commenced operations.

Top 10 Holdings as of 12/31/2018^1§

PIMCO Total Return Fund IV	15.4%
PIMCO Short-Term Fund	15.4%
PIMCO StocksPLUS® International Fund (Unhedged)	10.3%
PIMCO StocksPLUS® Fund	5.2%
PIMCO RAE PLUS EMG Fund	5.2%
PIMCO Income Fund	5.2%
PIMCO Investment Grade Credit Bond Fund	5.1%
PIMCO RAE PLUS Small Fund	5.1%
PIMCO RAE International Fund	5.1%
PIMCO Real Return Fund	5.1%

¹  % of Investments, at value.

^§  Top 10 Holdings and % of Investments exclude securities sold short, financial derivative instruments and short-term instruments, if any.

Average Annual Total Return for the period ended December 31, 2018
		1 Year		5 Years		Inception≈
	PIMCO Global Diversified Allocation Portfolio Administrative Class		(8.94)%		2.78%		3.94%
	PIMCO Global Diversified Allocation Portfolio Advisor Class		(9.06)%		2.68%		3.20%
	60% MSCI World Index/40% Bloomberg Barclays U.S. Aggregate Index±		(5.07)%		3.90%		5.67%
	MSCI World Index±±		(8.71)%		4.56%		7.91%¨

All Portfolio returns are net of fees and expenses.

^≈ For class inception dates please refer to the Important Information.

^¨ Average annual total return since 04/30/2012.

^± 60% MSCI World Index/40% Bloomberg Barclays U.S. Aggregate Index. The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. The MSCI World Index consists of 23 developed market country indices. The Bloomberg Barclays U.S. Aggregate Index represents securities that are SEC-registered, taxable, and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. These major sectors are subdivided into more specific indices that are calculated and reported on a regular basis.

^±± The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. The MSCI World Index consists of 23 developed market country indices.

It is not possible to invest directly in an unmanaged index.

Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. The Portfolio’s performance does not reflect the deduction of additional charges and expenses imposed in connection with investing in Variable Contracts, which will reduce returns. Differences in the Portfolio’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the prices of individual positions (which may be sourced from different pricing vendors or other sources) used by the Portfolio and the index. For performance current to the most recent month-end, visit www.pimco.com/pvit or via (888) 87-PIMCO.

The Portfolio’s total annual operating expense ratio in effect as of period end which includes the Acquired Fund Fees and Expenses (Underlying PIMCO Fund Expenses), were 1.61% for Administrative Class shares, and 1.71% for Advisor Class shares. Details regarding any changes to the Portfolio’s operating expenses, subsequent to period end, can be found in the Portfolio’s current prospectus, as supplemented.

Investment Objective and Strategy Overview

PIMCO Global Diversified Allocation Portfolio seeks to maximize risk-adjusted total return relative to a blend of 60% MSCI World Index/40% Bloomberg Barclays U.S. Aggregate Index by investing in a combination of affiliated funds registered under the Investment Company Act of 1940, as amended (the “1940 Act”), equity securities, Fixed Income Instruments, forwards and derivatives. “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. Portfolio strategies may change from time to time. Please refer to the Portfolio’s current prospectus for more information regarding the Portfolio’s strategy.

Portfolio Insights

The following affected performance during the reporting period:

» Non-U.S. equities detracted from absolute performance, as underlying PIMCO international and emerging market equity funds posted negative returns.

» U.S. equities detracted from absolute performance, as S&P 500 futures and underlying PIMCO U.S. equity funds posted negative returns.

» The Portfolio’s volatility management strategy, which used futures on the S&P 500 Index to dynamically adjust the Portfolio’s equity allocation, detracted from relative performance.

» Put options on the S&P 500 Index, used for tail risk hedging, contributed to performance as the S&P 500 fell.

» Short-term fixed income contributed to performance, as underlying PIMCO short term funds posted positive returns.

» Other fixed income strategies detracted from performance, as most underlying PIMCO fixed income funds posted negative returns.

6 PIMCO VARIABLE INSURANCE TRUST

Expense Example PIMCO Global Diversified Allocation Portfolio

Example

As a shareholder of the Portfolio, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees (if applicable), and other Portfolio expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in the Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds.

The Expense Example does not reflect any fees or other expenses imposed by the Variable Contracts. If it did, the expenses reflected in the Expense Example would be higher. The Example is based on an investment of $1,000 invested at the beginning of the period and held from July 1, 2018 to December 31, 2018 unless noted otherwise in the table and footnotes below.

Actual Expenses

The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60), then multiply the result by the number in the appropriate row for your share class, in the column titled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other portfolios. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other portfolios.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information under the heading “Hypothetical (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different portfolios. In addition, if these transactional costs were included, your costs would have been higher.

Expense ratios may vary period to period because of various factors, such as an increase in expenses that are not covered by the management fees such as fees and expenses of the independent trustees and their counsel, extraordinary expenses and interest expense.

	Actual						Hypothetical (5% return before expenses)
	Beginning Account Value (07/01/18)		Ending Account Value (12/31/18)		Expenses Paid During Period*		Beginning Account Value (07/01/18)		Ending Account Value (12/31/18)		Expenses Paid During Period*		Net Annualized Expense Ratio**
Administrative Class	$	1,000.00	$	918.40	$	2.27	$	1,000.00	$	1,022.84	$	2.40		0.47	%
Advisor Class		1,000.00		918.40		2.76		1,000.00		1,022.33		2.91		0.57

* Expenses Paid During Period are equal to the net annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Overall fees and expenses of investing in the Portfolio will be higher because the example does not reflect variable contract fees and expenses.

** Net Annualized Expense Ratio is reflective of any applicable contractual fee waivers and/or expense reimbursements or voluntary fee waivers. Details regarding fee waivers, if any, can be found in Note 9, Fees and Expenses, in the Notes to Financial Statements.

ANNUAL REPORT DECEMBER 31, 2018 7

Financial Highlights PIMCO Global Diversified Allocation Portfolio

			Investment Operations								Less Distributions(b)
Selected Per Share Data for the Year Ended^:	Net Asset Value Beginning of Year		Net Investment Income (Loss)(a)		Net Realized/ Unrealized Gain (Loss)			Total			From Net Investment Income			From Net Realized Capital Gain			Tax Basis Return of Capital			Total
Administrative Class
12/31/2018	$	10.97	$	0.27	$	(1.23	)	$	(0.96	)	$	(0.21	)	$	(0.22	)	$	0.00		$	(0.43	)
12/31/2017		9.66		0.29		1.33			1.62			(0.31	)		0.00			0.00			(0.31	)
12/31/2016		9.13		0.16		0.55			0.71			(0.15	)		(0.02	)		(0.01	)		(0.18	)
12/31/2015		10.45		0.30		(0.87	)		(0.57	)		(0.27	)		(0.48	)		0.00			(0.75	)
12/31/2014		10.43		0.42		0.19			0.61			(0.41	)		(0.18	)		0.00			(0.59	)
Advisor Class
12/31/2018		10.92		0.27		(1.24	)		(0.97	)		(0.20	)		(0.22	)		0.00			(0.42	)
12/31/2017		9.61		0.29		1.32			1.61			(0.30	)		0.00			0.00			(0.30	)
12/31/2016		9.09		0.15		0.54			0.69			(0.14	)		(0.02	)		(0.01	)		(0.17	)
12/31/2015		10.40		0.31		(0.88	)		(0.57	)		(0.26	)		(0.48	)		0.00			(0.74	)
12/31/2014		10.40		0.53		0.06			0.59			(0.41	)		(0.18	)		0.00			(0.59	)

^ A zero balance may reflect actual amounts rounding to less than $0.01 or 0.01%.

^(a)  Per share amounts based on average number of shares outstanding during the year.

^(b)  The tax characterization of distributions is determined in accordance with Federal income tax regulations. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

^(c)  Ratios shown do not include expenses of the investment companies in which a Portfolio may invest. See Note 9, Fees and Expenses, in the Notes to Financial Statements for more information regarding the expenses and any applicable fee waivers associated with these investments.

8 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

					Ratios/Supplemental Data
							Ratios to Average Net Assets(c)
Net Asset Value End of Year		Total Return			Net Assets End of Year (000s)		Expenses			Expenses Excluding Waivers			Expenses Excluding Interest Expense			Expenses Excluding Interest Expense and Waivers			Net Investment Income (Loss)			Portfolio Turnover Rate
$	9.58		(8.94	)%	$	752,593		0.47	%		1.00	%		0.47	%		1.00	%		2.53	%		16	%
	10.97		16.87			838,361		0.47			1.00			0.47			1.00			2.83			2
	9.66		7.81			645,013		0.46			1.00			0.46			1.00			1.77			22
	9.13		(5.57	)		510,615		0.46			1.00			0.46			1.00			2.89			17
	10.45		5.87			399,133		0.40			1.00			0.40			1.00			3.87			3
	9.53		(9.06	)		163,649		0.57			1.10			0.57			1.10			2.49			16
	10.92		16.86			151,288		0.57			1.10			0.57			1.10			2.77			2
	9.61		7.64			109,396		0.56			1.10			0.56			1.10			1.67			22
	9.09		(5.55	)		81,740		0.56			1.10			0.56			1.10			3.01			17
	10.40		5.65			41,809		0.50			1.10			0.50			1.10			4.94			3

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 9

Statement of Assets and Liabilities PIMCO Global Diversified Allocation Portfolio

(Amounts in thousands†, except per share amounts)	December 31, 2018
Assets:
Investments, at value
Investments in securities*	$	540
Investments in Affiliates		887,909
Financial Derivative Instruments
Exchange-traded or centrally cleared		10,672
Deposits with counterparty		10,103
Receivable for investments in Affiliates sold		5,827
Receivable for Portfolio shares sold		3,331
Interest and/or dividends receivable		31
Dividends receivable from Affiliates		1,536
Reimbursement receivable from PIMCO		412
Total Assets		920,361
Liabilities:
Payable for investments in Affiliates purchased	$	2,777
Payable for Portfolio shares redeemed		560
Overdraft due to custodian		1
Accrued investment advisory fees		345
Accrued supervisory and administrative fees		307
Accrued distribution fees		34
Accrued servicing fees		95
Total Liabilities		4,119
Net Assets	$	916,242
Net Assets Consist of:
Paid in capital	$	973,352
Distributable earnings (accumulated loss)		(57,110	)
Net Assets	$	916,242
Net Assets:
Administrative Class	$	752,593
Advisor Class		163,649
Shares Issued and Outstanding:
Administrative Class		78,546
Advisor Class		17,173
Net Asset Value Per Share Outstanding:
Administrative Class	$	9.58
Advisor Class		9.53
Cost of investments in securities	$	540
Cost of investments in Affiliates	$	924,962
Cost or premiums of financial derivative instruments, net	$	10,842
* Includes repurchase agreements of:	$	540

^†   A zero balance may reflect actual amounts rounding to less than one thousand.

10 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

Statement of Operations PIMCO Global Diversified Allocation Portfolio

(Amounts in thousands†)	Year Ended December 31, 2018
Investment Income:
Interest	$	348
Dividends from Investments in Affiliates		29,689
Total Income		30,037
Expenses:
Investment advisory fees		4,488
Supervisory and administrative fees		3,989
Servicing fees - Administrative Class		1,248
Distribution and/or servicing fees - Advisor Class		413
Trustee fees		29
Interest expense		24
Total Expenses		10,191
Waiver and/or Reimbursement by PIMCO		(5,305	)
Net Expenses		4,886
Net Investment Income (Loss)		25,151
Net Realized Gain (Loss):
Investments in Affiliates		(2,750	)
Net capital gain distributions received from Affiliate investments		23,179
Exchange-traded or centrally cleared financial derivative instruments		(31,456	)
Net Realized Gain (Loss)		(11,027	)
Net Change in Unrealized Appreciation (Depreciation):
Investments in Affiliates		(94,043	)
Exchange-traded or centrally cleared financial derivative instruments		(10,367	)
Net Change in Unrealized Appreciation (Depreciation)		(104,410	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	(90,286	)

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 11

Statements of Changes in Net Assets PIMCO Global Diversified Allocation Portfolio

(Amounts in thousands†)	Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets from:
Operations:
Net investment income (loss)	$	25,151		$	24,861
Net realized gain (loss)		(11,027	)		50,356
Net change in unrealized appreciation (depreciation)		(104,410	)		62,132
Net Increase (Decrease) in Net Assets Resulting from Operations		(90,286	)		137,349
Distributions to Shareholders:
From net investment income and/or net realized capital gains*
Administrative Class		(32,882	)		(22,908	)
Advisor Class		(6,802	)		(3,893	)
Total Distributions(a)		(39,684	)		(26,801	)
Portfolio Share Transactions:
Net increase (decrease) resulting from Portfolio share transactions**		56,563			124,692
Total Increase (Decrease) in Net Assets		(73,407	)		235,240
Net Assets:
Beginning of year		989,649			754,409
End of year	$	916,242		$	989,649

^†   A zero balance may reflect actual amounts rounding to less than one thousand.

* See Note 2, New Accounting Pronouncements, in the Notes to Financial Statements for more information.

** See Note 13, Shares of Beneficial Interest, in the Notes to Financial Statements.

^(a)  The tax characterization of distributions is determined in accordance with Federal income tax regulations. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

12 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

Schedule of Investments PIMCO Global Diversified Allocation Portfolio

December 31, 2018

(Amounts in thousands*, except number of shares, contracts and units, if any)

				MARKET VALUE (000S)
INVESTMENTS IN SECURITIES 0.1%
SHORT-TERM INSTRUMENTS 0.1%
REPURCHASE AGREEMENTS (b) 0.1%
			$		540
Total Short-Term Instruments (Cost $540)					540
Total Investments in Securities (Cost $540)					540
	SHARES
INVESTMENTS IN AFFILIATES 96.9%
MUTUAL FUNDS (a) 89.9%
PIMCO Emerging Markets Bond Fund		2,815,804			27,454
PIMCO Global Advantage® Strategy Bond Fund		3,480,462			36,545
PIMCO Income Fund		3,880,797			45,832

	SHARES			MARKET VALUE (000S)
PIMCO International Bond Fund (U.S. Dollar-Hedged)		2,597,052	$		27,633
PIMCO Investment Grade Credit Bond Fund		4,616,271			45,747
PIMCO RAE International Fund		5,138,891			45,685
PIMCO RAE PLUS EMG Fund		4,916,875			45,874
PIMCO RAE PLUS Small Fund		4,890,438			45,726
PIMCO Real Return Fund		4,320,353			45,623
PIMCO Short-Term Fund		14,037,443			137,005
PIMCO StocksPLUS® Fund		5,093,014			45,888
PIMCO StocksPLUS® International Fund (U.S. Dollar-Hedged)		6,439,646			45,593
PIMCO StocksPLUS® International Fund (Unhedged)		18,138,673			91,600
PIMCO Total Return Fund IV		13,530,623			137,201
Total Mutual Funds (Cost $860,469)					823,406

	SHARES			MARKET VALUE (000S)
SHORT-TERM INSTRUMENTS 7.0%
CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 7.0%
PIMCO Short-Term Floating NAV Portfolio III		6,526,022	$		64,503
Total Short-Term Instruments (Cost $64,493)					64,503
Total Investments in Affiliates (Cost $924,962)					887,909
Total Investments 97.0% (Cost $925,502)			$		888,449
Financial Derivative Instruments (c) 1.1% (Cost or Premiums, net $10,842)					10,672
Other Assets and Liabilities, net 1.9%					17,121
Net Assets 100.0%			$		916,242

NOTES TO SCHEDULE OF INVESTMENTS:

* A zero balance may reflect actual amounts rounding to less than one thousand.

(a) Institutional Class Shares of each Fund.

BORROWINGS AND OTHER FINANCING TRANSACTIONS

(b)  REPURCHASE AGREEMENTS:

Counterparty	Lending Rate			Settlement Date		Maturity Date		Principal Amount		Collateralized By	Collateral (Received)			Repurchase Agreements, at Value		Repurchase Agreement Proceeds to be Received(1)
FICC		2.000	%		12/31/2018		01/02/2019	$	540	U.S. Treasury Notes 2.875% due 09/30/2023	$	(551	)	$	540	$	540
Total Repurchase Agreements											$	(551	)	$	540	$	540

BORROWINGS AND OTHER FINANCING TRANSACTIONS SUMMARY

The following is a summary by counterparty of the market value of Borrowings and Other Financing Transactions and collateral pledged/(received) as of December 31, 2018:

Counterparty	Repurchase Agreement Proceeds to be Received(1)		Payable for Reverse Repurchase Agreements		Payable for Sale-Buyback Transactions		Total Borrowings and Other Financing Transactions		Collateral Pledged/(Received)			Net  Exposure(2)
Global/Master Repurchase Agreement
FICC	$	540	$	0	$	0	$	540	$	(551	)	$	(11	)
Total Borrowings and Other Financing Transactions	$	540	$	0	$	0

⁽¹⁾  Includes accrued interest.

⁽²⁾ Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from borrowings and other financing transactions can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information regarding master netting arrangements.

(c)  FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED

PURCHASED OPTIONS:

OPTIONS ON INDICES

Description	Strike Value		Expiration Date		# of Contracts		Notional Amount		Cost		Market Value
Put - CBOE S&P 500	$	1,725.000		12/20/2019		556	$	56	$	1,631	$	1,312
Put - CBOE S&P 500		1,975.000		12/20/2019		556		56		3,221		2,686
Put - CBOE S&P 500		2,225.000		12/20/2019		556		56		5,990		5,210
Total Purchased Options									$	10,842	$	9,208

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 13

Schedule of Investments PIMCO Global Diversified Allocation Portfolio (Cont.)

FUTURES CONTRACTS:

LONG FUTURES CONTRACTS

Description	Expiration Month		# of Contracts		Notional Amount		Unrealized Appreciation/ (Depreciation)			Variation Margin
										Asset		Liability
E-mini S&P 500 Index March Futures		03/2019		1,525	$	191,022	$	(5,190	)	$	1,464	$	0
Total Futures Contracts							$	(5,190	)	$	1,464	$	0

FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED SUMMARY

The following is a summary of the market value and variation margin of Exchange-Traded or Centrally Cleared Financial Derivative Instruments as of December 31, 2018:

	Financial Derivative Assets								Financial Derivative Liabilities
	Market Value		Variation Margin Asset				Total		Market Value		Variation Margin Liability				Total
	Purchased Options		Futures		Swap Agreements				Written Options		Futures		Swap Agreements
Total Exchange-Traded or Centrally Cleared	$	9,208	$	1,464	$	0	$	10,672	$	0	$	0	$	0	$	0

Cash of $10,103 has been pledged as collateral for exchange-traded and centrally cleared financial derivative instruments as of December 31, 2018. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information regarding master netting arrangements.

FAIR VALUE OF FINANCIAL DERIVATIVE INSTRUMENTS

The following is a summary of the fair valuation of the Portfolio’s derivative instruments categorized by risk exposure. See Note 7, Principal Risks, in the Notes to Financial Statements on risks of the Portfolio.

Fair Values of Financial Derivative Instruments on the Statement of Assets and Liabilities as of December 31, 2018:

	Derivatives not accounted for as hedging instruments
	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Exchange Contracts		Interest Rate Contracts		Total
Financial Derivative Instruments - Assets
Exchange-traded or centrally cleared
Purchased Options	$	0	$	0	$	9,208	$	0	$	0	$	9,208
Futures		0		0		1,464		0		0		1,464
	$	0	$	0	$	10,672	$	0	$	0	$	10,672

The effect of Financial Derivative Instruments on the Statement of Operations for the period ended December 31, 2018:

	Derivatives not accounted for as hedging instruments
	Commodity Contracts		Credit Contracts		Equity Contracts			Foreign Exchange Contracts		Interest Rate Contracts		Total
Net Realized Gain (Loss) on Financial Derivative Instruments
Exchange-traded or centrally cleared
Purchased Options	$	0	$	0	$	5,665		$	0	$	0	$	5,665
Futures		0		0		(37,121	)		0		0		(37,121	)
	$	0	$	0	$	(31,456	)	$	0	$	0	$	(31,456	)
Net Change in Unrealized (Depreciation) on Financial Derivative Instruments
Exchange-traded or centrally cleared
Purchased Options	$	0	$	0	$	(1,389	)	$	0	$	0	$	(1,389	)
Futures		0		0		(8,978	)		0		0		(8,978	)
	$	0	$	0	$	(10,367	)	$	0	$	0	$	(10,367	)

14 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

FAIR VALUE MEASUREMENTS

The following is a summary of the fair valuations according to the inputs used as of December 31, 2018 in valuing the Portfolio’s assets and liabilities:

Category and Subcategory	Level 1		Level 2		Level 3		Fair Value at 12/31/2018
Investments in Securities, at Value
Short-Term Instruments
Repurchase Agreements	$	0	$	540	$	0	$	540
	$	0	$	540	$	0	$	540
Investments in Affiliates, at Value
Mutual Funds	$	823,406	$	0	$	0	$	823,406
Short-Term Instruments
Central Funds Used for Cash Management Purposes		64,503		0		0		64,503
	$	887,909	$	0	$	0	$	887,909
Total Investments	$	887,909	$	540	$	0	$	888,449

Category and Subcategory	Level 1		Level 2		Level 3		Fair Value at 12/31/2018
Financial Derivative Instruments - Assets
Exchange-traded or centrally cleared	$	1,464	$	9,208	$	0	$	10,672
Total Financial Derivative Instruments	$	1,464	$	9,208	$	0	$	10,672
Totals	$	889,373	$	9,748	$	0	$	899,121

There were no significant transfers into or out of Level 3 during the period ended December 31, 2018.

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 15

Notes to Financial Statements

1. ORGANIZATION

PIMCO Variable Insurance Trust (the “Trust”) is a Delaware statutory trust established under a trust instrument dated October 3, 1997. The Trust is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Trust is designed to be used as an investment vehicle by separate accounts of insurance companies that fund variable annuity contracts and variable life insurance policies and by qualified pension and retirement plans. Information presented in these financial statements pertains to the Administrative Class and Advisor Class shares of the PIMCO Global Diversified Allocation Portfolio (the “Portfolio”) offered by the Trust. Pacific Investment Management Company LLC (“PIMCO”) serves as the investment adviser (the “Adviser”) for the Portfolio.

The Portfolio may invest in Institutional Class or Class M shares of any funds of the PIMCO Funds and PIMCO Equity Series, affiliated open-end investment companies, except funds of funds (“Underlying PIMCO Funds”), and may also invest in other affiliated funds, including funds of PIMCO ETF Trust, and unaffiliated funds, which may or may not be registered under the 1940 Act (collectively, “Acquired Funds”).

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Portfolio is treated as an investment company under the reporting requirements of U.S. GAAP. The functional and reporting currency for the Portfolio is the U.S. dollar. The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

(a) Securities Transactions and Investment Income  Securities transactions are recorded as of the trade date for financial reporting purposes. Securities purchased or sold on a when-issued or delayed-delivery basis may be settled beyond a standard settlement period for the security after the trade date. Realized gains (losses) from securities sold are recorded on the identified cost basis. Dividend income is recorded on the ex-dividend date, except certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Portfolio is informed of the ex-dividend date. Interest income, adjusted for the accretion of discounts and amortization of premiums, is recorded on the accrual basis from

settlement date, with the exception of securities with a forward starting effective date, where interest income is recorded on the accrual basis from effective date. For convertible securities, premiums attributable to the conversion feature are not amortized. Estimated tax liabilities on certain foreign securities are recorded on an accrual basis and are reflected as components of interest income or net change in unrealized appreciation (depreciation) on investments on the Statement of Operations, as appropriate. Tax liabilities realized as a result of such security sales are reflected as a component of net realized gain (loss) on investments on the Statement of Operations. Paydown gains (losses) on mortgage-related and other asset-backed securities, if any, are recorded as components of interest income on the Statement of Operations. Income or short-term capital gain distributions received from registered investment companies, if any, are recorded as dividend income. Long-term capital gain distributions received from registered investment companies, if any, are recorded as realized gains.

(b) Multi-Class Operations  Each class offered by the Trust has equal rights as to assets and voting privileges (except that shareholders of a class have exclusive voting rights regarding any matter relating solely to that class of shares). Income and non-class specific expenses are allocated daily to each class on the basis of the relative net assets. Realized and unrealized capital gains (losses) are allocated daily based on the relative net assets of each class of the Portfolio. Class specific expenses, where applicable, currently include supervisory and administrative and distribution and servicing fees. Under certain circumstances, the per share net asset value (“NAV”) of a class of the Portfolio’s shares may be different from the per share NAV of another class of shares as a result of the different daily expense accruals applicable to each class of shares.

(c) Distributions to Shareholders  Distributions from net investment income, if any, are declared and distributed to shareholders quarterly. Net realized capital gains earned by the Portfolio, if any, will be distributed no less frequently than once each year.

Income distributions and capital gain distributions are determined in accordance with income tax regulations which may differ from U.S. GAAP. Differences between tax regulations and U.S. GAAP may cause timing differences between income and capital gain recognition. Further, the character of investment income and capital gains may be different for certain transactions under the two methods of accounting. As a result, income distributions and capital gain distributions declared during a fiscal period may differ significantly from the net investment income (loss) and realized gains (losses) reported on the Portfolio’s annual financial statements presented under U.S. GAAP.

If the Portfolio estimates that a portion of its distribution may be comprised of amounts from sources other than net investment income

16 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

in accordance with its policies and good accounting practices, the Portfolio will notify shareholders of the estimated composition of such distribution through a Section 19 Notice. For these purposes, the Portfolio estimates the source or sources from which a distribution is paid, to the close of the period as of which it is paid, in reference to its internal accounting records and related accounting practices. If, based on such accounting records and practices, it is estimated that a particular distribution does not include capital gains or paid-in surplus or other capital sources, a Section 19 Notice generally would not be issued. It is important to note that differences exist between the Portfolio’s daily internal accounting records and practices, the Portfolio’s financial statements presented in accordance with U.S. GAAP, and recordkeeping practices under income tax regulations. For instance, the Portfolio’s internal accounting records and practices may take into account, among other factors, tax-related characteristics of certain sources of distributions that differ from treatment under U.S. GAAP. Examples of such differences may include, among others, the treatment of paydowns on mortgage-backed securities purchased at a discount and periodic payments under interest rate swap contracts. Accordingly, among other consequences, it is possible that the Portfolio may not issue a Section 19 Notice in situations where the Portfolio’s financial statements prepared later and in accordance with U.S. GAAP and/or the final tax character of those distributions might later report that the sources of those distributions included capital gains and/or a return of capital. Final determination of a distribution’s tax character will be provided to shareholders when such information is available.

Distributions classified as a tax basis return of capital, if any, are reflected on the Statements of Changes in Net Assets and have been recorded to paid in capital on the Statement of Assets and Liabilities. In addition, other amounts have been reclassified between distributable earnings (accumulated loss) and paid in capital on the Statement of Assets and Liabilities to more appropriately conform U.S. GAAP to tax characterizations of distributions.

(d) New Accounting Pronouncements  In August 2016, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”), ASU 2016-15, which amends Accounting Standards Codification (“ASC”) 230 to clarify guidance on the classification of certain cash receipts and cash payments in the Statement of Cash Flows. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In November 2016, the FASB issued ASU 2016-18 which amends ASC 230 to provide guidance on the classification and presentation of changes in restricted cash and restricted cash equivalents on the Statement of Cash Flows. The ASU is effective for annual periods

beginning after December 15, 2017, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In March 2017, the FASB issued ASU 2017-08 which provides guidance related to the amortization period for certain purchased callable debt securities held at a premium. The ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In August 2018, the FASB issued ASU 2018-13 which modifies certain disclosure requirements for fair value measurements in ASC 820. The ASU is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. At this time, management has elected to early adopt the amendments that allow for removal of certain disclosure requirements. Management plans to adopt the amendments that require additional fair value measurement disclosures for annual periods beginning after December 15, 2019, and interim periods within those annual periods. Management is currently evaluating the impact of these changes on the financial statements.

In August 2018, the U.S. Securities and Exchange Commission (“SEC”) adopted amendments to certain rules and forms for the purpose of disclosure update and simplification. The compliance date for these amendments is 30 days after date of publication in the Federal Register, which was on October 4, 2018. Management has adopted these amendments and the changes are incorporated throughout all periods presented in the financial statements.

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

(a) Investment Valuation Policies  The price of the Portfolio’s shares is based on the Portfolio’s NAV. The NAV of the Portfolio, or each of its share classes, as applicable, is determined by dividing the total value of portfolio investments and other assets, less any liabilities attributable to the Portfolio or class, by the total number of shares outstanding of the Portfolio or class.

On each day that the New York Stock Exchange (“NYSE”) is open, Portfolio shares are ordinarily valued as of the close of regular trading (“NYSE Close”). Information that becomes known to the Portfolio or its agents after the time as of which NAV has been calculated on a particular day will not generally be used to retroactively adjust the price of a security or the NAV determined earlier that day. The Portfolio reserves the right to change the time as of which its NAV is calculated if the Portfolio closes earlier, or as permitted by the SEC.

ANNUAL REPORT DECEMBER 31, 2018 17

Notes to Financial Statements (Cont.)

For purposes of calculating a NAV, portfolio securities and other assets for which market quotes are readily available are valued at market value. Market value is generally determined on the basis of official closing prices or the last reported sales prices, or if no sales are reported, based on quotes obtained from established market makers or prices (including evaluated prices) supplied by the Portfolio’s approved pricing services, quotation reporting systems and other third-party sources (together, “Pricing Services”). The Portfolio will normally use pricing data for domestic equity securities received shortly after the NYSE Close and does not normally take into account trading, clearances or settlements that take place after the NYSE Close. If market value pricing is used, a foreign (non-U.S.) equity security traded on a foreign exchange or on more than one exchange is typically valued using pricing information from the exchange considered by the Adviser to be the primary exchange. A foreign (non-U.S.) equity security will be valued as of the close of trading on the foreign exchange, or the NYSE Close, if the NYSE Close occurs before the end of trading on the foreign exchange. Domestic and foreign (non-U.S.) fixed income securities, non-exchange traded derivatives, and equity options are normally valued on the basis of quotes obtained from brokers and dealers or Pricing Services using data reflecting the earlier closing of the principal markets for those securities. Prices obtained from Pricing Services may be based on, among other things, information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics. Certain fixed income securities purchased on a delayed-delivery basis are marked to market daily until settlement at the forward settlement date. Exchange-traded options, except equity options, futures and options on futures are valued at the settlement price determined by the relevant exchange. Swap agreements are valued on the basis of bid quotes obtained from brokers and dealers or market-based prices supplied by Pricing Services. The Portfolio’s investments in open-end management investment companies, other than exchange-traded funds (“ETFs”), are valued at the NAVs of such investments. Open-end management investment companies may include affiliated funds.

If a foreign (non-U.S.) equity security’s value has materially changed after the close of the security’s primary exchange or principal market but before the NYSE Close, the security may be valued at fair value based on procedures established and approved by the Board of Trustees of the Trust (the “Board”). Foreign (non-U.S.) equity securities that do not trade when the NYSE is open are also valued at fair value. With respect to foreign (non-U.S.) equity securities, the Portfolio may determine the fair value of investments based on information provided by Pricing Services and other third-party vendors, which may recommend fair value or adjustments with reference to other securities, indices or assets. In considering whether fair valuation is required and in determining fair values, the Portfolio may, among other things,

consider significant events (which may be considered to include changes in the value of U.S. securities or securities indices) that occur after the close of the relevant market and before the NYSE Close. The Portfolio may utilize modeling tools provided by third-party vendors to determine fair values of foreign (non-U.S.) securities. For these purposes, any movement in the applicable reference index or instrument (“zero trigger”) between the earlier close of the applicable foreign market and the NYSE Close may be deemed to be a significant event, prompting the application of the pricing model (effectively resulting in daily fair valuations). Foreign exchanges may permit trading in foreign (non-U.S.) equity securities on days when the Trust is not open for business, which may result in the Portfolio’s portfolio investments being affected when shareholders are unable to buy or sell shares.

Senior secured floating rate loans for which an active secondary market exists to a reliable degree will be valued at the mean of the last available bid/ask prices in the market for such loans, as provided by a Pricing Service. Senior secured floating rate loans for which an active secondary market does not exist to a reliable degree will be valued at fair value, which is intended to approximate market value. In valuing a senior secured floating rate loan at fair value, the factors considered may include, but are not limited to, the following: (a) the creditworthiness of the borrower and any intermediate participants, (b) the terms of the loan, (c) recent prices in the market for similar loans, if any, and (d) recent prices in the market for instruments of similar quality, rate, period until next interest rate reset and maturity.

Investments valued in currencies other than the U.S. dollar are converted to the U.S. dollar using exchange rates obtained from Pricing Services. As a result, the value of such investments and, in turn, the NAV of the Portfolio’s shares may be affected by changes in the value of currencies in relation to the U.S. dollar. The value of investments traded in markets outside the United States or denominated in currencies other than the U.S. dollar may be affected significantly on a day that the Trust is not open for business. As a result, to the extent that the Portfolio holds foreign (non-U.S.) investments, the value of those investments may change at times when shareholders are unable to buy or sell shares and the value of such investments will be reflected in the Portfolio’s next calculated NAV.

Investments for which market quotes or market based valuations are not readily available are valued at fair value as determined in good faith by the Board or persons acting at their direction. The Board has adopted methods for valuing securities and other assets in circumstances where market quotes are not readily available, and has delegated to the Adviser the responsibility for applying the fair valuation methods. In the event that market quotes or market based valuations are not readily available, and the security or asset cannot be

18 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

valued pursuant to a Board approved valuation method, the value of the security or asset will be determined in good faith by the Board. Market quotes are considered not readily available in circumstances where there is an absence of current or reliable market-based data (e.g., trade information, bid/ask information, indicative market quotations (“Broker Quotes”), Pricing Services’ prices), including where events occur after the close of the relevant market, but prior to the NYSE Close, that materially affect the values of the Portfolio’s securities or assets. In addition, market quotes are considered not readily available when, due to extraordinary circumstances, the exchanges or markets on which the securities trade do not open for trading for the entire day and no other market prices are available. The Board has delegated, to the Adviser, the responsibility for monitoring significant events that may materially affect the values of the Portfolio’s securities or assets and for determining whether the value of the applicable securities or assets should be reevaluated in light of such significant events.

When the Portfolio (or, in each instance in this paragraph, as applicable, an Underlying PIMCO Fund or Acquired Fund) uses fair valuation to determine the value of a portfolio security or other asset for purposes of calculating its NAV, such investments will not be priced on the basis of quotes from the primary market in which they are traded, but rather may be priced by another method that the Board or persons acting at their direction believe reflects fair value. Fair valuation may require subjective determinations about the value of a security. While the Trust’s policy is intended to result in a calculation of the Portfolio’s NAV that fairly reflects security values as of the time of pricing, the Trust cannot ensure that fair values determined by the Board or persons acting at their direction would accurately reflect the price that the Portfolio could obtain for a security if it were to dispose of that security as of the time of pricing (for instance, in a forced or distressed sale). The prices used by the Portfolio may differ from the value that would be realized if the securities were sold. The Portfolio’s use of fair valuation may also help to deter “stale price arbitrage” as discussed under the “Frequent or Excessive Purchases, Exchanges and Redemptions” section in the Portfolio’s prospectus.

(b) Fair Value Hierarchy  U.S. GAAP describes fair value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into levels (Level 1, 2, or 3). The inputs or methodology used for valuing securities are not

necessarily an indication of the risks associated with investing in those securities. Levels 1, 2, and 3 of the fair value hierarchy are defined as follows:

^∎  Level 1 — Quoted prices in active markets or exchanges for identical assets and liabilities.

^∎  Level 2 — Significant other observable inputs, which may include, but are not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market corroborated inputs.

^∎  Level 3 — Significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, which may include assumptions made by the Board or persons acting at their direction that are used in determining the fair value of investments.

In accordance with the requirements of U.S. GAAP, the amounts of transfers into and out of Level 3, if material, are disclosed in the Notes to Schedule of Investments for the Portfolio.

For fair valuations using significant unobservable inputs, U.S. GAAP requires a reconciliation of the beginning to ending balances for reported fair values that presents changes attributable to realized gain (loss), unrealized appreciation (depreciation), purchases and sales, accrued discounts (premiums), and transfers into and out of the Level 3 category during the period. The end of period value is used for the transfers between Levels of the Portfolio’s assets and liabilities. Additionally, U.S. GAAP requires quantitative information regarding the significant unobservable inputs used in the determination of fair value of assets or liabilities categorized as Level 3 in the fair value hierarchy. In accordance with the requirements of U.S. GAAP, a fair value hierarchy, and if material, a Level 3 reconciliation and details of significant unobservable inputs, have been included in the Notes to Schedule of Investments for the Portfolio.

(c) Valuation Techniques and the Fair Value Hierarchy

Level 1 and Level 2 trading assets and trading liabilities, at fair value  The valuation methods (or “techniques”) and significant inputs used in determining the fair values of portfolio securities or other assets and liabilities categorized as Level 1 and Level 2 of the fair value hierarchy are as follows:

Fixed income securities purchased on a delayed-delivery basis or as a repurchase commitment in a sale-buyback transaction are marked to market daily until settlement at the forward settlement date and are categorized as Level 2 of the fair value hierarchy.

ANNUAL REPORT DECEMBER 31, 2018 19

Notes to Financial Statements (Cont.)

Common stocks, ETFs, exchange-traded notes and financial derivative instruments, such as futures contracts, rights and warrants, or options on futures that are traded on a national securities exchange, are stated at the last reported sale or settlement price on the day of valuation. To the extent these securities are actively traded and valuation adjustments are not applied, they are categorized as Level 1 of the fair value hierarchy.

Valuation adjustments may be applied to certain securities that are solely traded on a foreign exchange to account for the market movement between the close of the foreign market and the NYSE Close. These securities are valued using Pricing Services that consider the correlation of the trading patterns of the foreign security to the intraday trading in the U.S. markets for investments. Securities using these valuation adjustments are categorized as Level 2 of the fair value hierarchy. Preferred securities and other equities traded on inactive markets or valued by reference to similar instruments are also categorized as Level 2 of the fair value hierarchy.

Investments in registered open-end investment companies (other than ETFs) will be valued based upon the NAVs of such investments and are categorized as Level 1 of the fair value hierarchy. Investments in unregistered open-end investment companies will be calculated based upon the NAVs of such investments and are considered Level 1 provided that the NAVs are observable, calculated daily and are the value at which both purchases and sales will be conducted.

Equity exchange-traded options and over the counter financial derivative instruments, such as forward foreign currency contracts and options contracts derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors. These contracts are normally valued on the basis of quotes obtained from a quotation reporting system, established market makers or Pricing Services (normally determined as of the NYSE Close). Depending on the product and the terms of the transaction, financial derivative instruments can be valued by Pricing Services using a series of techniques, including simulation pricing models. The pricing models use inputs that are observed from actively quoted markets such as quoted prices, issuer details, indices, bid/ask spreads, interest rates, implied volatilities, yield curves, dividends and exchange rates. Financial derivative instruments that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

Centrally cleared swaps and over the counter swaps derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors. They are valued using a broker-dealer bid quotation or on market-based prices provided by Pricing Services (normally determined as of the NYSE close). Centrally cleared

swaps and over the counter swaps can be valued by Pricing Services using a series of techniques, including simulation pricing models. The pricing models may use inputs that are observed from actively quoted markets such as the overnight index swap rate (“OIS”), London Interbank Offered Rate (“LIBOR”) forward rate, interest rates, yield curves and credit spreads. These securities are categorized as Level 2 of the fair value hierarchy.

Level 3 trading assets and trading liabilities, at fair value  When a fair valuation method is applied by the Adviser that uses significant unobservable inputs, investments will be priced by a method that the Board or persons acting at their direction believe reflects fair value and are categorized as Level 3 of the fair value hierarchy.

Short-term debt instruments (such as commercial paper) having a remaining maturity of 60 days or less may be valued at amortized cost, so long as the amortized cost value of such short-term debt instruments is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. These securities are categorized as Level 2 or Level 3 of the fair value hierarchy depending on the source of the base price.

4. SECURITIES AND OTHER INVESTMENTS

Investments in Affiliates

The Portfolio invests under normal circumstances in Acquired Funds which are considered to be affiliated with the Portfolio. The Portfolio may invest in the PIMCO Short Asset Portfolio and the PIMCO Short-Term Floating NAV Portfolio III (“Central Funds”) to the extent permitted by the Act and rules thereunder. The Central Funds are registered investment companies created for use solely by the series of the Trust and other series of registered investment companies advised by the Adviser, in connection with their cash management activities. The main investments of the Central Funds are money market and short maturity fixed income instruments. The Central Funds may incur expenses related to their investment activities, but do not pay Investment Advisory Fees or Supervisory and Administrative Fees to the Adviser. The Central Funds are considered to be affiliated with the Portfolio. The table below shows the Portfolio’s transactions in and earnings from investments in the affiliated Funds for the period ended December 31, 2018 (amounts in thousands^†):

20 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

Underlying PIMCO Funds	Market Value 12/31/2017		Purchases at Cost		Proceeds from Sales			Net Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Market Value 12/31/2018		Dividend Income(1)		Realized Net Capital Gain Distributions(1)
PIMCO Emerging Markets Bond Fund	$	29,856	$	5,392	$	(5,241	)	$	(267	)	$	(2,286	)	$	27,454	$	1,280	$	0
PIMCO Global Advantage® Strategy Bond Fund		39,742		5,085		(7,264	)		(179	)		(839	)		36,545		756		0
PIMCO Income Fund		49,803		7,908		(9,373	)		(245	)		(2,261	)		45,832		2,774		0
PIMCO International Bond Fund (U.S. Dollar-Hedged)		29,732		3,939		(5,978	)		(71	)		11			27,633		811		30
PIMCO Investment Grade Credit Bond Fund		49,757		7,812		(8,705	)		(390	)		(2,727	)		45,747		2,008		51
PIMCO RAE International Fund		49,416		10,638		(3,716	)		(113	)		(10,540	)		45,685		1,454		1,151
PIMCO RAE PLUS EMG Fund		49,685		13,631		(8,636	)		(114	)		(8,692	)		45,874		2,048		0
PIMCO RAE PLUS Small Fund		49,137		13,471		(5,966	)		(257	)		(10,659	)		45,726		1,843		3,191
PIMCO Real Return Fund		49,727		6,941		(8,683	)		(282	)		(2,080	)		45,623		1,311		0
PIMCO Short-Term Fund		148,724		17,673		(27,790	)		(73	)		(1,529	)		137,005		3,819		80
PIMCO Short-Term Floating NAV Portfolio III		80,275		472,431		(488,200	)		(6	)		3			64,503		1,531		0
PIMCO StocksPLUS® Fund		49,244		11,720		(4,730	)		305			(10,651	)		45,888		1,095		6,823
PIMCO StocksPLUS® International Fund (U.S. Dollar-Hedged)		49,505		8,320		(3,774	)		(92	)		(8,366	)		45,593		664		2,740
PIMCO StocksPLUS® International Fund (Unhedged)		99,438		28,885		(6,749	)		(234	)		(29,740	)		91,600		5,172		9,113
PIMCO Total Return Fund IV		148,887		20,392		(27,659	)		(732	)		(3,687	)		137,201		3,123		0
Totals	$	972,928	$	634,238	$	(622,464	)	$	(2,750	)	$	(94,043	)	$	887,909	$	29,689	$	23,179

^†   A zero balance may reflect actual amounts rounding to less than one thousand.

⁽¹⁾  The tax characterization of distributions is determined in accordance with Federal income tax regulations and may contain a return of capital. The actual tax characterization of distributions received is determined at the end of the fiscal year of the affiliated fund. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

5. BORROWINGS AND OTHER FINANCING TRANSACTIONS

The Portfolio (and where applicable, certain Acquired Funds and Underlying PIMCO Funds) may enter into the borrowings and other financing transactions described below to the extent permitted by the Portfolio’s investment policies.

The following disclosures contain information on the Portfolio’s ability to lend or borrow cash or securities to the extent permitted under the Act, which may be viewed as borrowing or financing transactions by the Portfolio. The location of these instruments in the Portfolio’s financial statements is described below.

Repurchase Agreements  Under the terms of a typical repurchase agreement, the Portfolio purchases an underlying debt obligation (collateral) subject to an obligation of the seller to repurchase, and the Portfolio to resell, the obligation at an agreed-upon price and time. In an open maturity repurchase agreement, there is no pre-determined repurchase date and the agreement can be terminated by the Portfolio or counterparty at any time. The underlying securities for all repurchase agreements are held by the Portfolio’s custodian or designated subcustodians under tri-party repurchase agreements and in certain instances will remain in custody with the counterparty. The market value of the collateral must be equal to or exceed the total amount of the repurchase obligations, including interest. Repurchase agreements, if any, including accrued interest, are included on the Statement of Assets and Liabilities. Interest earned is recorded as a component of

interest income on the Statement of Operations. In periods of increased demand for collateral, the Portfolio may pay a fee for the receipt of collateral, which may result in interest expense to the Portfolio.

6. FINANCIAL DERIVATIVE INSTRUMENTS

The Portfolio (and where applicable, certain Acquired Funds and Underlying PIMCO Funds) may enter into the financial derivative instruments described below to the extent permitted by the Portfolio’s investment policies.

The following disclosures contain information on how and why the Portfolio uses financial derivative instruments, and how financial derivative instruments affect the Portfolio’s financial position, results of operations and cash flows. The location and fair value amounts of these instruments on the Statement of Assets and Liabilities and the net realized gain (loss) and net change in unrealized appreciation (depreciation) on the Statement of Operations, each categorized by type of financial derivative contract and related risk exposure, are included in a table in the Notes to Schedule of Investments. The financial derivative instruments outstanding as of period end and the amounts of net realized gain (loss) and net change in unrealized appreciation (depreciation) on financial derivative instruments during the period, as disclosed in the Notes to Schedule of Investments, serve as indicators of the volume of financial derivative activity for the Portfolio.

(a) Futures Contracts  are agreements to buy or sell a security or other asset for a set price on a future date. The Portfolio may use futures

ANNUAL REPORT DECEMBER 31, 2018 21

Notes to Financial Statements (Cont.)

contracts to manage its exposure to the securities markets or to movements in interest rates and currency values. The primary risks associated with the use of futures contracts are the imperfect correlation between the change in market value of the securities held by the Portfolio and the prices of futures contracts and the possibility of an illiquid market. Futures contracts are valued based upon their quoted daily settlement prices. Upon entering into a futures contract, the Portfolio is required to deposit with its futures broker an amount of cash, U.S. Government and Agency Obligations, or select sovereign debt, in accordance with the initial margin requirements of the broker or exchange. Futures contracts are marked to market daily and based on such movements in the price of the contracts, an appropriate payable or receivable for the change in value may be posted or collected by the Portfolio (“Futures Variation Margin”). Gains (losses) are recognized but not considered realized until the contracts expire or close. Futures contracts involve, to varying degrees, risk of loss in excess of the Futures Variation Margin included within exchange traded or centrally cleared financial derivative instruments on the Statement of Assets and Liabilities.

(b) Options Contracts  may be written or purchased to enhance returns or to hedge an existing position or future investment. The Portfolio may write call and put options on securities and financial derivative instruments it owns or in which it may invest. Writing put options tends to increase the Portfolio’s exposure to the underlying instrument. Writing call options tends to decrease the Portfolio’s exposure to the underlying instrument. When the Portfolio writes a call or put, an amount equal to the premium received is recorded and subsequently marked to market to reflect the current value of the option written. These amounts are included on the Statement of Assets and Liabilities. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options which are exercised or closed are added to the proceeds or offset against amounts paid on the underlying futures, swap, security or currency transaction to determine the realized gain (loss). Certain options may be written with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. The Portfolio as a writer of an option has no control over whether the underlying instrument may be sold (“call”) or purchased (“put”) and as a result bears the market risk of an unfavorable change in the price of the instrument underlying the written option. There is the risk the Portfolio may not be able to enter into a closing transaction because of an illiquid market.

Purchasing call options tends to increase the Portfolio’s exposure to the underlying instrument. Purchasing put options tends to decrease the Portfolio’s exposure to the underlying instrument. The Portfolio pays a premium which is included as an asset on the Statement of Assets and

Liabilities and subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options which expire are treated as realized losses. Certain options may be purchased with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. The risk associated with purchasing put and call options is limited to the premium paid. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the underlying investment transaction to determine the realized gain (loss) when the underlying transaction is executed.

Options on Indices  (“Index Option”) use a specified index as the underlying instrument for the option contract. The exercise for an Index Option will not include physical delivery of the underlying index but will result in a cash transfer of the amount of the difference between the settlement price of the underlying index and the strike price.

7. PRINCIPAL RISKS

The principal risks of investing in the Portfolio, which could adversely affect its net asset value, yield and total return, are listed below. The principal risks of investing in the Portfolio include risks from direct investments and/or for certain Portfolios that invest in Acquired Funds or Underlying PIMCO Funds, indirect exposure through investment in such Acquired Funds or Underlying PIMCO Funds. Please see “Description of Principal Risks” in the Portfolio’s prospectus for a more detailed description of the risks of investing in the Portfolio.

Allocation Risk  is the risk that a Portfolio could lose money as a result of less than optimal or poor asset allocation decisions. The Portfolio could miss attractive investment opportunities by underweighting markets that subsequently experience significant returns and could lose value by overweighting markets that subsequently experience significant declines.

Acquired Fund Risk  is the risk that a Portfolio’s performance is closely related to the risks associated with the securities and other investments held by the Acquired Funds and that the ability of a Portfolio to achieve its investment objective will depend upon the ability of the Acquired Funds to achieve their investment objectives.

Equity Risk  is the risk that the value of equity securities, such as common stocks and preferred securities, may decline due to general market conditions which are not specifically related to a particular company or to factors affecting a particular industry or industries. Equity securities generally have greater price volatility than fixed income securities.

Interest Rate Risk  is the risk that fixed income securities will decline in value because of an increase in interest rates; a portfolio with a longer

22 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

average portfolio duration will be more sensitive to changes in interest rates than a portfolio with a shorter average portfolio duration.

Call Risk  is the risk that an issuer may exercise its right to redeem a fixed income security earlier than expected (a call). Issuers may call outstanding securities prior to their maturity for a number of reasons (e.g., declining interest rates, changes in credit spreads and improvements in the issuer’s credit quality). If an issuer calls a security that the Portfolio has invested in, the Portfolio may not recoup the full amount of its initial investment and may be forced to reinvest in lower-yielding securities, securities with greater credit risks or securities with other, less favorable features.

Credit Risk  is the risk that the Portfolio could lose money if the issuer or guarantor of a fixed income security, or the counterparty to a derivative contract, is unable or unwilling to meet its financial obligations.

High Yield Risk  is the risk that high yield securities and unrated securities of similar credit quality (commonly known as “junk bonds”) are subject to greater levels of credit, call and liquidity risks. High yield securities are considered primarily speculative with respect to the issuer’s continuing ability to make principal and interest payments, and may be more volatile than higher-rated securities of similar maturity.

Distressed Company Risk  is the risk that securities of distressed companies may be subject to greater levels of credit, issuer and liquidity risk than a portfolio that does not invest in such securities. Securities of distressed companies include both debt and equity securities. Debt securities of distressed companies are considered predominantly speculative with respect to the issuers’ continuing ability to make principal and interest payments.

Market Risk  is the risk that the value of securities owned by the Portfolio may go up or down, sometimes rapidly or unpredictably, due to factors affecting securities markets generally or particular industries.

Issuer Risk  is the risk that the value of a security may decline for a reason directly related to the issuer, such as management performance, financial leverage and reduced demand for the issuer’s goods or services.

Liquidity Risk  is the risk that a particular investment may be difficult to purchase or sell and that the Portfolio may be unable to sell illiquid securities at an advantageous time or price or achieve its desired level of exposure to a certain sector. Liquidity risk may result from the lack of an active market, reduced number and capacity of traditional market participants to make a market in fixed income securities, and may be magnified in a rising interest rate environment or other circumstances where investor redemptions from fixed income mutual funds may be higher than normal, causing increased supply in the market due to selling activity.

Derivatives Risk  is the risk of investing in derivative instruments (such as futures, swaps and structured securities), including leverage, liquidity, interest rate, market, credit and management risks, mispricing or valuation complexity. Changes in the value of the derivative may not correlate perfectly with, and may be more sensitive to market events than, the underlying asset, rate or index, and the Portfolio could lose more than the initial amount invested. The Portfolio’s use of derivatives may result in losses to the Portfolio, a reduction in the Portfolio’s returns and/or increased volatility. Over-the-counter (“OTC”) derivatives are also subject to the risk that a counterparty to the transaction will not fulfill its contractual obligations to the other party, as many of the protections afforded to centrally-cleared derivative transactions might not be available for OTC derivatives. For derivatives traded on an exchange or through a central counterparty, credit risk resides with the Portfolio’s clearing broker, or the clearinghouse itself, rather than with a counterparty in an OTC derivative transaction. Changes in regulation relating to a mutual fund’s use of derivatives and related instruments could potentially limit or impact the Portfolio’s ability to invest in derivatives, limit the Portfolio’s ability to employ certain strategies that use derivatives and/or adversely affect the value of derivatives and the Portfolio’s performance.

Commodity Risk  is the risk that investing in commodity-linked derivative instruments may subject the Portfolio to greater volatility than investments in traditional securities. The value of commodity-linked derivative instruments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments.

Mortgage-Related and Other Asset-Backed Securities Risk  is the risk of investing in mortgage-related and other asset-backed securities, including interest rate risk, extension risk, prepayment risk and credit risk.

Foreign (Non-U.S.) Investment Risk  is the risk that investing in foreign (non-U.S.) securities may result in the Portfolio experiencing more rapid and extreme changes in value than a portfolio that invests exclusively in securities of U.S. companies, due to smaller markets, differing reporting, accounting and auditing standards, increased risk of delayed settlement of portfolio transactions or loss of certificates of portfolio securities, and the risk of unfavorable foreign government actions, including nationalization, expropriation or confiscatory taxation, currency blockage, or political changes or diplomatic developments. Foreign securities may also be less liquid and more difficult to value than securities of U.S. issuers.

Real Estate Risk  is the risk that a Portfolio’s investments in Real Estate Investment Trusts (“REITs”) or real estate-linked derivative instruments

ANNUAL REPORT DECEMBER 31, 2018 23

Notes to Financial Statements (Cont.)

will subject the Portfolio to risks similar to those associated with direct ownership of real estate, including losses from casualty or condemnation, and changes in local and general economic conditions, supply and demand, interest rates, zoning laws, regulatory limitations on rents, property taxes and operating expenses. A Portfolio’s investments in REITs or real estate-linked derivative instruments subject it to management and tax risks. In addition, privately traded REITs subject a Portfolio to liquidity and valuation risk.

Emerging Markets Risk  is the risk of investing in emerging market securities, primarily increased foreign (non-U.S.) investment risk.

Sovereign Debt Risk  is the risk that investments in fixed income instruments issued by sovereign entities may decline in value as a result of default or other adverse credit event resulting from an issuer’s inability or unwillingness to make principal or interest payments in a timely fashion.

Currency Risk  is the risk that foreign (non-U.S.) currencies will change in value relative to the U.S. dollar and affect the Portfolio’s investments in foreign (non-U.S.) currencies or in securities that trade in, and receive revenues in, or in derivatives that provide exposure to, foreign (non-U.S.) currencies.

Leveraging Risk  is the risk that certain transactions of the Portfolio, such as reverse repurchase agreements, loans of portfolio securities, and the use of when-issued, delayed delivery or forward commitment transactions, or derivative instruments, may give rise to leverage, magnifying gains and losses and causing the Portfolio to be more volatile than if it had not been leveraged. This means that leverage entails a heightened risk of loss.

Smaller Company Risk  is the risk that the value of securities issued by a smaller company may go up or down, sometimes rapidly and unpredictably as compared to more widely held securities, due to narrow markets and limited resources of smaller companies. A Portfolio’s investments in smaller companies subject it to greater levels of credit, market and issuer risk.

Management Risk  is the risk that the investment techniques and risk analyses applied by PIMCO will not produce the desired results and that legislative, regulatory, or tax restrictions, policies or developments may affect the investment techniques available to PIMCO and the individual portfolio manager in connection with managing the Portfolio. There is no guarantee that the investment objective of the Portfolio will be achieved and there can be no assurance that investment decisions made in seeking to manage Portfolio volatility will achieve the desired results.

Tax Risk   is the risk that the tax treatment of swap agreements and other derivative instruments, such as commodity-linked derivative

instruments, including commodity index-linked notes, swap agreements, commodity options, futures, and options on futures, may be affected by future regulatory or legislative changes that could affect whether income from such investments is “qualifying income” under Subchapter M of the Internal Revenue Code, or otherwise affect the character, timing and/or amount of the Portfolio’s taxable income or gains and distributions.

Subsidiary Risk  is the risk that, by investing in certain Underlying PIMCO Funds that invest in a subsidiary (each a “Subsidiary”), the Portfolio is indirectly exposed to the risks associated with a Subsidiary’s investments. The Subsidiaries are not registered under the 1940 Act and may not be subject to all the investor protections of the 1940 Act. There is no guarantee that the investment objective of a Subsidiary will be achieved.

Short Exposure Risk  is the risk of entering into short sales, including the potential loss of more money than the actual cost of the investment, and the risk that the third party to the short sale will not fulfill its contractual obligations, causing a loss to the Portfolio.

Value Investing Risk  is the risk that a value stock may decrease in price or may not increase in price as anticipated by PIMCO if it continues to be undervalued by the market or the factors that the portfolio manager believes will cause the stock price to increase do not occur.

Arbitrage Risk  is the risk that securities purchased pursuant to an arbitrage strategy intended to take advantage of a perceived relationship between the value of two securities may not perform as expected.

Convertible Securities Risk  is the risk that arises when convertible securities share both fixed income and equity characteristics. Convertible securities are subject to risks to which fixed income and equity investments are subject. These risks include equity risk, interest rate risk and credit risk.

Exchange-Traded Fund Risk  is the risk that an exchange-traded fund may not track the performance of the index it is designed to track, market prices of shares of an exchange-traded fund may fluctuate rapidly and materially, or shares of an exchange-traded fund may trade significantly above or below net asset value, any of which may cause losses to the Portfolio invested in the exchange-traded fund.

8. MASTER NETTING ARRANGEMENTS

The Portfolio may be subject to various netting arrangements (“Master Agreements”) with select counterparties. Master Agreements govern the terms of certain transactions, and are intended to reduce the counterparty risk associated with relevant transactions by specifying

24 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

credit protection mechanisms and providing standardization that is intended to improve legal certainty. Each type of Master Agreement governs certain types of transactions. Different types of transactions may be traded out of different legal entities or affiliates of a particular organization, resulting in the need for multiple agreements with a single counterparty. As the Master Agreements are specific to unique operations of different asset types, they allow the Portfolio to close out and net its total exposure to a counterparty in the event of a default with respect to all the transactions governed under a single Master Agreement with a counterparty. For financial reporting purposes the Statement of Assets and Liabilities generally presents derivative assets and liabilities on a gross basis, which reflects the full risks and exposures prior to netting.

Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. Under most Master Agreements, collateral is routinely transferred if the total net exposure to certain transactions (net of existing collateral already in place) governed under the relevant Master Agreement with a counterparty in a given account exceeds a specified threshold, which typically ranges from zero to $250,000 depending on the counterparty and the type of Master Agreement. United States Treasury Bills and U.S. dollar cash are generally the preferred forms of collateral, although other securities may be used depending on the terms outlined in the applicable Master Agreement. Securities and cash pledged as collateral are reflected as assets on the Statement of Assets and Liabilities as either a component of Investments at value (securities) or Deposits with counterparty. Cash collateral received is not typically held in a segregated account and as such is reflected as a liability on the Statement of Assets and Liabilities as Deposits from counterparty. The market value of any securities received as collateral is not reflected as a component of NAV. The Portfolio’s overall exposure to counterparty risk can change substantially within a short period, as it is affected by each transaction subject to the relevant Master Agreement.

Master Repurchase Agreements and Global Master Repurchase Agreements (individually and collectively “Master Repo Agreements”) govern repurchase, reverse repurchase, and certain sale-buyback transactions between the Portfolio and select counterparties. Master Repo Agreements maintain provisions for, among other things, initiation, income payments, events of default, and maintenance of collateral. The market value of transactions under the Master Repo Agreement, collateral pledged or received, and the net exposure by counterparty as of period end are disclosed in the Notes to Schedule of Investments.

Master Securities Forward Transaction Agreements (“Master Forward Agreements”) govern certain forward settling transactions, such as TBA securities, delayed-delivery or certain sale-buyback transactions by and

between the Portfolio and select counterparties. The Master Forward Agreements maintain provisions for, among other things, transaction initiation and confirmation, payment and transfer, events of default, termination, and maintenance of collateral. The market value of forward settling transactions, collateral pledged or received, and the net exposure by counterparty as of period end is disclosed in the Notes to Schedule of Investments.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Such transactions require posting of initial margin as determined by each relevant clearing agency which is segregated in an account at a futures commission merchant (“FCM”) registered with the Commodity Futures Trading Commission (“CFTC”). In the United States, counterparty risk may be reduced as creditors of an FCM cannot have a claim to Portfolio assets in the segregated account. Portability of exposure reduces risk to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives unless the parties have agreed to a separate arrangement in respect of portfolio margining. The market value or accumulated unrealized appreciation (depreciation), initial margin posted, and any unsettled variation margin as of period end are disclosed in the Notes to Schedule of Investments.

Prime Broker Arrangements may be entered into to facilitate execution and/or clearing of listed equity option transactions or short sales of equity securities between the Portfolio and selected counterparties. The arrangements provide guidelines surrounding the rights, obligations, and other events, including, but not limited to, margin, execution, and settlement. These agreements maintain provisions for, among other things, payments, maintenance of collateral, events of default, and termination. Margin and other assets delivered as collateral are typically in the possession of the prime broker and would offset any obligations due to the prime broker. The market values of listed options and securities sold short and related collateral are disclosed in the Notes to Schedule of Investments.

International Swaps and Derivatives Association, Inc. Master Agreements and Credit Support Annexes (“ISDA Master Agreements”) govern bilateral OTC derivative transactions entered into by the Portfolio with select counterparties. ISDA Master Agreements maintain provisions for general obligations, representations, agreements, collateral posting and events of default or termination. Events of termination include conditions that may entitle counterparties to elect to terminate early and cause settlement of all outstanding transactions under the applicable ISDA Master Agreement. Any election to terminate early could be material to the financial statements. In limited circumstances, the ISDA Master Agreement may contain additional provisions that add counterparty protection beyond coverage of

ANNUAL REPORT DECEMBER 31, 2018 25

Notes to Financial Statements (Cont.)

existing daily exposure if the counterparty has a decline in credit quality below a predefined level. These amounts, if any, may be segregated with a third-party custodian. The market value of OTC financial derivative instruments, collateral received or pledged, and net exposure by counterparty as of period end are disclosed in the Notes to Schedule of Investments.

9. FEES AND EXPENSES

(a) Investment Advisory Fee  PIMCO is a majority-owned subsidiary of Allianz Asset Management of America L.P. (“Allianz Asset Management”) and serves as the Adviser to the Trust, pursuant to an investment advisory contract. The Adviser receives a monthly fee from the Portfolio at an annual rate based on average daily net assets (the “Investment Advisory Fee”). The Investment Advisory Fee for all classes is charged at an annual rate as noted in the table in note (b) below.

(b) Supervisory and Administrative Fee  PIMCO serves as administrator (the “Administrator”) and provides supervisory and administrative services to the Trust for which it receives a monthly supervisory and administrative fee based on each share class’s average daily net assets (the “Supervisory and Administrative Fee”). As the Administrator, PIMCO bears the costs of various third-party services, including audit, custodial, portfolio accounting, legal, transfer agency and printing costs.

The Investment Advisory Fee and Supervisory and Administrative Fees for all classes, as applicable, are charged at the annual rate as noted in the following table (calculated as a percentage of the Portfolio’s average daily net assets attributable to each class):

Investment Advisory Fee	Supervisory and Administrative Fee
All Classes	Administrative Class	Advisor Class
0.45%	0.40%	0.40%

(c) Distribution and Servicing Fees  PIMCO Investments LLC, a wholly-owned subsidiary of PIMCO, serves as the distributor (“Distributor”) of the Trust’s shares.

The Trust has adopted an Administrative Services Plan with respect to the Administrative Class shares of the Portfolio pursuant to Rule 12b-1 under the Act (the “Administrative Plan”). Under the terms of the Administrative Plan, the Trust is permitted to compensate the Distributor, out of the Administrative Class assets of the Portfolio, in an amount up to 0.15% on an annual basis of the average daily net assets of that class, for providing or procuring through financial intermediaries administrative, recordkeeping and investor services for Administrative Class shareholders of the Portfolio.

The Trust has adopted a separate Distribution and Servicing Plan for the Advisor Class shares of the Portfolio (the “Distribution and

Servicing Plan”). The Distribution and Servicing Plan has been adopted pursuant to Rule 12b-1 under the Act. The Distribution and Servicing Plan permits the Portfolio to compensate the Distributor for providing or procuring through financial intermediaries, distribution, administrative, recordkeeping, shareholder and/or related services with respect to Advisor Class shares. The Distribution and Servicing Plan permits the Portfolio to make total payments at an annual rate of up to 0.25% of its average daily net assets attributable to its Advisor Class shares.

	Distribution Fee		Servicing Fee
Administrative Class		—		0.15%
Advisor Class		0.25%		—

(d) Portfolio Expenses  PIMCO provides or procures supervisory and administrative services for shareholders and also bears the costs of various third-party services required by the Portfolio, including audit, custodial, portfolio accounting, legal, transfer agency and printing costs. The Trust is responsible for the following expenses: (i) taxes and governmental fees; (ii) brokerage fees and commissions and other portfolio transaction expenses; (iii) the costs of borrowing money, including interest expense; (iv) fees and expenses of the Trustees who are not “interested persons” of PIMCO or the Trust, and any counsel retained exclusively for their benefit; (v) extraordinary expense, including costs of litigation and indemnification expenses; (vi) organizational expenses; and (vii) any expenses allocated or allocable to a specific class of shares, which include service fees payable with respect to the Administrative Class Shares, and may include certain other expenses as permitted by the Trust’s Multi-Class Plan adopted pursuant to Rule 18f-3 under the Act and subject to review and approval by the Trustees. The ratio of expenses to average net assets per share class, as disclosed on the Financial Highlights, may differ from the annual portfolio operating expenses per share class.

Each Trustee, other than those affiliated with PIMCO or its affiliates, receives an annual retainer of $41,200, plus $4,250 for each Board meeting attended in person, $850 for each committee meeting attended and $750 for each Board meeting attended telephonically, plus reimbursement of related expenses. In addition, the audit committee chair receives an additional annual retainer of $8,000, the valuation oversight committee lead receives an additional annual retainer of $8,500 (to the extent there are co-leads of the valuation oversight committee, the annual retainer will be split evenly between the co-leads, so that each co-lead individually receives an additional annual retainer of $4,250) and each other committee chair receives an additional annual retainer of $5,500. The Lead Independent Trustee receives an annual retainer of $7,000.

These expenses are allocated on a pro rata basis to each Portfolio of the Trust according to its respective net assets. The Trust pays no

26 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

compensation directly to any Trustee or any other officer who is affiliated with the Administrator, all of whom receive remuneration for their services to the Trust from the Administrator or its affiliates.

(e) Expense Limitation  Pursuant to the Expense Limitation Agreement, PIMCO has agreed to waive a portion of the Portfolio’s Supervisory and Administrative Fee, or reimburse the Portfolio, to the extent that the Portfolio’s organizational expenses, pro rata share of expenses related to obtaining or maintaining a Legal Entity Identifier and pro rata share of Trustee Fees exceed 0.0049%, the “Expense Limit” (calculated as a percentage of the Portfolio’s average daily net assets attributable to each class). The Expense Limitation Agreement will automatically renew for one-year terms unless PIMCO provides written notice to the Trust at least 30 days prior to the end of the then current term.

Under certain conditions, PIMCO may be reimbursed for these waived amounts in future periods, not to exceed thirty-six months after the waiver. At December 31, 2018, there were no recoverable amounts.

(f) Acquired Fund Fees and Expenses  Acquired Fund expenses incurred by the Portfolio, if any, will vary with changes in the expenses of the Acquired Funds, as well as the allocation of the Portfolio’s assets.

The expenses associated with investing in a fund of funds are generally higher than those for mutual funds that do not invest in other mutual funds. The cost of investing in a fund of funds will generally be higher than the cost of investing in a mutual fund that invests directly in individual stocks and bonds. By investing in a fund of funds, an investor will indirectly bear fees and expenses charged by Acquired Funds in addition to the Portfolio’s direct fees and expenses. In addition, the use of a fund of funds structure could affect the timing, amount and character of distributions to the shareholders and may therefore increase the amount of taxes payable by shareholders. The Portfolio also indirectly pays its proportionate share of the Investment Advisory Fees, Supervisory and Administrative Fees and Management Fees charged by PIMCO to the Underlying PIMCO Funds and, to the extent not included among the Underlying PIMCO Funds, funds of PIMCO ETF Trust in which the Portfolio invests (collectively, “Underlying PIMCO Fund Fees”).

PIMCO has contractually agreed, through May 1, 2019, to waive, first, the Investment Advisory Fee and, second, to the extent necessary, the Supervisory and Administrative Fee it receives from the Portfolio in an amount equal to the Underlying PIMCO Fund Fees indirectly incurred by the Portfolio in connection with its investments in Underlying PIMCO Funds, to the extent the Portfolio’s Investment Advisory Fee or Investment Advisory Fee and Supervisory and Administrative Fee, taken together, are greater than or equal to the Underlying PIMCO Fund

Fees. This waiver will automatically renew for one-year terms unless PIMCO provides written notice to the Trust at least 30 days prior to the end of the then current term. The waiver is reflected in the Statement of Operations as a component of Waiver and/or Reimbursement by PIMCO. For the period ended December 31, 2018, the amount was $5,304,518.

10. RELATED PARTY TRANSACTIONS

The Adviser, Administrator, and Distributor are related parties. Fees paid to these parties are disclosed in Note 9, Fees and Expenses, and the accrued related party fee amounts are disclosed on the Statement of Assets and Liabilities.

11. GUARANTEES AND INDEMNIFICATIONS

Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust (including the Trust’s investment manager) is indemnified, to the extent permitted by the Act, against certain liabilities that may arise out of performance of their duties to the Portfolio. Additionally, in the normal course of business, the Portfolio enters into contracts that contain a variety of indemnification clauses. The Portfolio’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Portfolio that have not yet occurred. However, the Portfolio has not had prior claims or losses pursuant to these contracts.

12. PURCHASES AND SALES OF SECURITIES

The length of time the Portfolio has held a particular security is not generally a consideration in investment decisions. A change in the securities held by the Portfolio is known as “portfolio turnover.” The Portfolio may engage in frequent and active trading of portfolio securities to achieve its investment objective, particularly during periods of volatile market movements. High portfolio turnover may involve correspondingly greater transaction costs to the Portfolio, including brokerage commissions or dealer mark-ups and other transaction costs on the sale of securities and reinvestments in other securities. Such sales may also result in realization of taxable capital gains, including short-term capital gains (which are generally taxed at ordinary income tax rates). The transaction costs and tax effects associated with portfolio turnover may adversely affect a shareholder’s performance. The portfolio turnover rates are reported in the Financial Highlights.

Purchases and sales of securities (excluding short-term investments) for the period ended December 31, 2018, were as follows (amounts in thousands^†):

U.S. Government/Agency				All Other
Purchases		Sales		Purchases		Sales
$	0	$	0	$	162,666	$	141,499

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

ANNUAL REPORT DECEMBER 31, 2018 27

Notes to Financial Statements (Cont.)

13. SHARES OF BENEFICIAL INTEREST

The Trust may issue an unlimited number of shares of beneficial interest with a $0.001 par value. Changes in shares of beneficial interest were as follows (shares and amounts in thousands^†):

	Year Ended 12/31/2018						Year Ended 12/31/2017
	Shares			Amount			Shares			Amount
Receipts for shares sold
Administrative Class		9,780		$	106,040			18,253		$	187,958
Advisor Class		3,119			33,612			2,621			27,284
Issued as reinvestment of distributions
Administrative Class		3,233			32,881			2,145			22,908
Advisor Class		674			6,802			366			3,893
Cost of shares redeemed
Administrative Class		(10,867	)		(117,612	)		(10,774	)		(112,103	)
Advisor Class		(479	)		(5,160	)		(510	)		(5,248	)
Net increase (decrease) resulting from Portfolio share transactions		5,460		$	56,563			12,101		$	124,692

^†   A zero balance may reflect actual amounts rounding to less than one thousand.

As of December 31, 2018, two shareholders each owned 10% or more of the Portfolio’s total outstanding shares comprising 97% of the Portfolio.

14. REGULATORY AND LITIGATION MATTERS

The Portfolio is not named as a defendant in any material litigation or arbitration proceedings and is not aware of any material litigation or claim pending or threatened against it.

The foregoing speaks only as of the date of this report.

15. FEDERAL INCOME TAX MATTERS

The Portfolio intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code (the “Code”) and distribute all of its taxable income and net realized gains, if applicable, to shareholders. Accordingly, no provision for Federal income taxes has been made.

The Portfolio may be subject to local withholding taxes, including those imposed on realized capital gains. Any applicable foreign capital gains tax is accrued daily based upon net unrealized gains, and may be payable following the sale of any applicable investments.

In accordance with U.S. GAAP, the Adviser has reviewed the Portfolio’s tax positions for all open tax years. As of December 31, 2018, the Portfolio has recorded no liability for net unrecognized tax benefits relating to uncertain income tax positions it has taken or expects to take in future tax returns.

The Portfolio files U.S. federal, state, and local tax returns as required. The Portfolio’s tax returns are subject to examination by relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return but which can be extended to six years in certain circumstances. Tax returns for open years have incorporated no uncertain tax positions that require a provision for income taxes.

Shares of the Portfolio currently are sold to segregated asset accounts (“Separate Accounts”) of insurance companies that fund variable annuity contracts and variable life insurance policies (“Variable Contracts”). Please refer to the prospectus for the Separate Account and Variable Contract for information regarding Federal income tax treatment of distributions to the Separate Account.

28 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

As of December 31, 2018, the components of distributable taxable earnings are as follows (amounts in thousands^†):

	Undistributed Ordinary Income(1)		Undistributed Long-Term Capital Gains		Net Tax Basis Unrealized Appreciation/ (Depreciation)(2)			Other Book-to-Tax Accounting Differences(3)			Accumulated Capital Losses(4)			Qualified Late-Year Loss Deferral - Capital(5)		Qualified Late-Year Loss Deferral - Ordinary(6)
PIMCO Global Diversified Allocation Portfolio	$	6,121	$	0	$	(43,347	)	$	(12	)	$	(19,872	)	$	0	$	0

^†   A zero balance may reflect actual amounts rounding to less than one thousand.

⁽¹⁾  Includes undistributed short-term capital gains, if any.

⁽²⁾  Adjusted for open wash sale loss deferrals and the accelerated recognition of unrealized gain or loss on certain futures and options for federal income tax purposes.

⁽³⁾  Represents differences in income tax regulations and financial accounting principles generally accepted in the United States of America, mainly for organizational costs.

⁽⁴⁾  Capital losses available to offset future net capital gains expire in varying amounts as shown below.

⁽⁵⁾  Capital losses realized during the period November 1, 2018 through December 31, 2018 which the Portfolio elected to defer to the following taxable year pursuant to income tax regulations.

⁽⁶⁾  Specified losses realized during the period November 1, 2018 through December 31, 2018 which the Portfolio elected to defer to the following taxable year pursuant to income tax regulations.

Under the Regulated Investment Company Modernization Act of 2010, a fund is permitted to carry forward any new capital losses for an unlimited period. Additionally, such capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term under previous law.

As of December 31, 2018, the Portfolio had the following post-effective capital losses with no expiration (amounts in thousands^†):

	Short-Term		Long-Term
PIMCO Global Diversified Allocation Portfolio	$	18,314	$	1,558

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

As of December 31, 2018, the aggregate cost and the net unrealized appreciation/(depreciation) of investments for federal income tax purposes are as follows (amounts in thousands^†):

	Federal Tax Cost		Unrealized Appreciation		Unrealized (Depreciation)			Net Unrealized Appreciation/ (Depreciation)(7)
PIMCO Global Diversified Allocation Portfolio	$	935,814	$	3,218	$	(46,221	)	$	(43,003	)

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽⁷⁾  Primary differences, if any, between book and tax net unrealized appreciation/(depreciation) on investments are attributable to open wash sale loss deferrals, unrealized gain or loss on certain futures and options.

For the fiscal year ended December 31, 2018 and December 31, 2017, respectively, the Portfolio made the following tax basis distributions (amounts in thousands^†):

	December 31, 2018						December 31, 2017
	Ordinary Income Distributions(8)		Long-Term Capital Gain Distributions		Return of Capital(9)		Ordinary Income Distributions(8)		Long-Term Capital Gain Distributions		Return of Capital(9)
PIMCO Global Diversified Allocation Portfolio	$	33,309	$	6,375	$	0	$	26,801	$	0	$	0

^†   A zero balance may reflect actual amounts rounding to less than one thousand.

⁽⁸⁾  Includes short-term capital gains distributed, if any.

⁽⁹⁾  A portion of the distributions made represents a tax return of capital. Return of capital distributions have been reclassified from undistributed net investment income to paid-in capital to more appropriately conform financial accounting to tax accounting.

ANNUAL REPORT DECEMBER 31, 2018 29

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of PIMCO Variable Insurance Trust and Shareholders of PIMCO Global Diversified Allocation Portfolio

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of PIMCO Global Diversified Allocation Portfolio (one of the portfolios constituting PIMCO Variable Insurance Trust, referred to hereafter as the “Portfolio”) as of December 31, 2018, the related statement of operations for the year ended December 31, 2018, the statement of changes in net assets for each of the two years in the period ended December 31, 2018, including the related notes, and the financial highlights for each of the five years in the period ended December 31, 2018 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Portfolio as of December 31, 2018, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended December 31, 2018 and the financial highlights for each of the five years in the period ended December 31, 2018 in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Portfolio’s management. Our responsibility is to express an opinion on the Portfolio’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Portfolio in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2018 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

Kansas City, Missouri

February 20, 2019

We have served as the auditor of one or more investment companies in PIMCO Variable Insurance Trust since 1998.

30 PIMCO VARIABLE INSURANCE TRUST

Glossary: (abbreviations that may be used in the preceding statements)

(Unaudited)

Counterparty Abbreviations:
FICC	Fixed Income Clearing Corporation
Currency Abbreviations:
USD (or $)	United States Dollar
Exchange Abbreviations:
CBOE	Chicago Board Options Exchange
Index/Spread Abbreviations:
S&P 500	Standard & Poor’s 500 Index
Other Abbreviations:
TBA	To-Be-Announced

ANNUAL REPORT DECEMBER 31, 2018 31

Federal Income Tax Information

(Unaudited)

As required by the Internal Revenue Code (the “Code”) and Treasury Regulations, if applicable, shareholders must be notified regarding the status of qualified dividend income and the dividend received deduction.

Dividend Received Deduction.  Corporate shareholders are generally entitled to take the dividend received deduction on the portion of a Fund’s dividend distribution that qualifies under tax law. The percentage of the following Portfolio’s fiscal 2018 ordinary income dividend that qualifies for the corporate dividend received deduction is set forth in the table below.

Qualified Dividend Income.  Under the Jobs and Growth Tax Relief Reconciliation Act of 2003 (the “Act”), the percentage of ordinary dividends paid during the calendar year designated as “qualified dividend income”, as defined in the Act, subject to reduced tax rates in 2018 is set forth for the Portfolio in the table below.

Qualified Interest Income and Qualified Short-Term Capital Gain (for non-U.S. resident shareholders only).  Under the American Jobs Creation Act of 2004, the amounts of ordinary dividends paid during the fiscal year ended December 31, 2018 considered to be derived from “qualified interest income,” as defined in Section 871(k)(1)(E) of the Code, and therefore designated as interest-related dividends, as defined in Section 871(k)(1)(C) of the Code are set forth in the table below. Further, the amounts of ordinary dividends paid during the fiscal year ended December 31, 2018 considered to be derived from “qualified short-term capital gain,” as defined in Section 871(k)(2)(D) of the Code, and therefore designated as qualified short-term gain dividends, as defined by Section 871(k)(2)(C) of the Code are also set forth in the table below.

	Dividend Received Deduction %		Qualified Dividend Income %		Qualified Interest Income (000s†)		Qualified Short-Term Capital Gain (000s†)
PIMCO Global Diversified Allocation Portfolio		0.00%		7.23%	$	19,002	$	0

^†   A zero balance may reflect actual amounts rounding to less than one thousand.

Shareholders are advised to consult their own tax advisor with respect to the tax consequences of their investment in the Trust. In January 2019, you will be advised on IRS Form 1099-DIV as to the federal tax status of the dividends and distributions received by you in calendar year 2018.

32 PIMCO VARIABLE INSURANCE TRUST

Management of the Trust

(Unaudited)

The charts below identify the Trustees and executive officers of the Trust. Unless otherwise indicated, the address of all persons below is 650 Newport Center Drive, Newport Beach, CA 92660.

The Portfolio’s Statement of Additional Information includes more information about the Trustees and Officers. To request a free copy, call PIMCO at (888) 87-PIMCO or visit the Portfolio’s website at www.pimco.com/pvit.

Name, Year of Birth and Position Held with Trust*	Term of Office and Length of Time Served†	Principal Occupation(s) During Past 5 Years	Number of Funds in Fund Complex Overseen by Trustee	Other Public Company and Investment Company Directorships Held by Trustee During the Past 5 Years
Interested Trustees1
Peter G. Strelow** (1970) Chairman of the Board and Trustee	05/2017 to present Chairman of the Board - 02/2019 to present	Managing Director and Co-Chief Operating Officer, PIMCO. President of the Trust, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Chief Administrative Officer, PIMCO.	153	Chairman and Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT.
Brent R. Harris** (1959) Trustee	08/1997 to present	Managing Director, PIMCO. Senior Vice President of the Trust, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Formerly, member of Executive Committee, PIMCO.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT; Director, StocksPLUS® Management, Inc; and member of Board of Governors, Investment Company Institute. Formerly, Chairman, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT.
Independent Trustees
George E. Borst (1948) Trustee	04/2015 to present	Executive Advisor, McKinsey & Company (since 10/14); Formerly, Executive Advisor, Toyota Financial Services (10/13-12/14); and CEO, Toyota Financial Services (1/01-9/13).	132	Trustee, PIMCO Funds and PIMCO ETF Trust; Director, MarineMax Inc.
Jennifer Holden Dunbar (1963) Trustee	04/2015 to present	Managing Director, Dunbar Partners, LLC (business consulting and investments). Formerly, Partner, Leonard Green & Partners, L.P.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT; Director, PS Business Parks; Director, Big 5 Sporting Goods Corporation.
Kym M. Hubbard (1957) Trustee	02/2017 to present	Formerly, Global Head of Investments, Chief Investment Officer and Treasurer, Ernst & Young.	132	Trustee, PIMCO Funds and PIMCO ETF Trust; Director, State Auto Financial Corporation.
Gary F. Kennedy (1955) Trustee	04/2015 to present	Formerly, Senior Vice President, General Counsel and Chief Compliance Officer, American Airlines and AMR Corporation (now American Airlines Group) (1/03-1/14).	132	Trustee, PIMCO Funds and PIMCO ETF Trust.
Peter B. McCarthy (1950) Trustee	04/2015 to present	Formerly, Assistant Secretary and Chief Financial Officer, United States Department of Treasury; Deputy Managing Director, Institute of International Finance.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Ronald C. Parker (1951) Lead Independent Trustee	07/2009 to present Lead Independent Trustee - 02/2017 to present	Director of Roseburg Forest Products Company. Formerly, Chairman of the Board, The Ford Family Foundation; and President, Chief Executive Officer, Hampton Affiliates (forestry products).	153	Lead Independent Trustee, PIMCO Funds and PIMCO ETF Trust; Trustee, PIMCO Equity Series and PIMCO Equity Series VIT.

* Unless otherwise noted, the information for the individuals listed is as of December 31, 2018.

** Effective February 13, 2019, Mr. Strelow became the Chairman of the Trust.

¹  Mr. Harris and Mr. Strelow are “interested persons” of the Trust (as that term is defined in the 1940 Act) because of their affiliations with PIMCO.

^†  Trustees serve until their successors are duly elected and qualified.

ANNUAL REPORT DECEMBER 31, 2018 33

Management of the Trust (Cont.)

(Unaudited)

Executive Officers

Name, Year of Birth and Position Held with Trust	Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years*
Peter G. Strelow (1970) President	01/2015 to present	Managing Director and Co-Chief Operating Officer, PIMCO. President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Chief Administrative Officer, PIMCO.
Joshua D. Ratner (1976)** Chief Legal Officer	11/2018 to present Vice President - Senior Counsel and Secretary 11/2013 to 11/2018 Assistant Secretary 10/2007 to 01/2011	Executive Vice President and Deputy General Counsel, PIMCO. Chief Legal Officer, PIMCO Investments LLC. Chief Legal Officer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Jennifer E. Durham (1970) Chief Compliance Officer	07/2004 to present	Managing Director and Chief Compliance Officer, PIMCO. Chief Compliance Officer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Brent R. Harris (1959) Senior Vice President	01/2015 to present President 03/2009 to 01/2015	Managing Director, PIMCO. Senior Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Formerly, member of Executive Committee, PIMCO.
Ryan G. Leshaw (1980) Vice President, Senior Counsel and Secretary	11/2018 to present Assistant Secretary 05/2012 to 11/2018	Senior Vice President and Senior Counsel, PIMCO. Vice President, Senior Counsel and Secretary, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Assistant Secretary, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Associate, Willkie Farr & Gallagher LLP.
Wu-Kwan Kit (1981) Assistant Secretary	08/2017 to present	Senior Vice President and Senior Counsel, PIMCO. Assistant Secretary, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Vice President, Senior Counsel and Secretary, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Assistant General Counsel, VanEck Associates Corp.
Stacie D. Anctil (1969) Vice President	05/2015 to present Assistant Treasurer 11/2003 to 05/2015	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
William G. Galipeau (1974) Vice President	11/2013 to present	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Eric D. Johnson (1970) Vice President	05/2011 to present	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Henrik P. Larsen (1970) Vice President	02/1999 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Bijal Y. Parikh (1978) Vice President	02/2017 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Greggory S. Wolf (1970) Vice President	05/2011 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Trent W. Walker (1974) Treasurer	11/2013 to present	Executive Vice President, PIMCO. Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Erik C. Brown (1967)** Assistant Treasurer	02/2001 to present	Executive Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Colleen D. Miller (1980)** Assistant Treasurer	02/2017 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Christopher M. Morin (1980) Assistant Treasurer	08/2016 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Jason J. Nagler (1982)** Assistant Treasurer	05/2015 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.

* The term “PIMCO-Sponsored Closed-End Funds” as used herein includes: PIMCO California Municipal Income Fund, PIMCO California Municipal Income Fund II, PIMCO California Municipal Income Fund III, PIMCO Municipal Income Fund, PIMCO Municipal Income Fund II, PIMCO Municipal Income Fund III, PIMCO New York Municipal Income Fund, PIMCO New York Municipal Income Fund II, PIMCO New York Municipal Income Fund III, PCM Fund Inc., PIMCO Corporate & Income Opportunity Fund, PIMCO Corporate & Income Strategy Fund, PIMCO Dynamic Credit and Mortgage Income Fund, PIMCO Dynamic Income Fund, PIMCO Global StocksPLUS^® & Income Fund, PIMCO High Income Fund, PIMCO Income Opportunity Fund, PIMCO Income Strategy Fund, PIMCO Income Strategy Fund II and PIMCO Strategic Income Fund, Inc.; the term “PIMCO-Sponsored Interval Funds” as used herein includes: PIMCO Flexible Credit Income Fund and PIMCO Flexible Municipal Income Fund.

** The address of these officers is Pacific Investment Management Company LLC, 1633 Broadway, New York, New York 10019.

34 PIMCO VARIABLE INSURANCE TRUST

Privacy Policy¹

(Unaudited)

The Trust^2,3 considers customer privacy to be a fundamental aspect of its relationships with shareholders and is committed to maintaining the confidentiality, integrity and security of its current, prospective and former shareholders’ non-public personal information. The Trust has developed policies that are designed to protect this confidentiality, while allowing shareholder needs to be served.

OBTAINING PERSONAL INFORMATION

In the course of providing shareholders with products and services, the Trust and certain service providers to the Trust, such as the Trust’s investment advisers or sub-advisers (“Advisers”), may obtain non-public personal information about shareholders, which may come from sources such as account applications and other forms, from other written, electronic or verbal correspondence, from shareholder transactions, from a shareholder’s brokerage or financial advisory firm, financial advisor or consultant, and/or from information captured on applicable websites.

RESPECTING YOUR PRIVACY

As a matter of policy, the Trust does not disclose any non-public personal information provided by shareholders or gathered by the Trust to non-affiliated third parties, except as required or permitted by law or as necessary for such third parties to perform their agreements with respect to the Trust. As is common in the industry, non-affiliated companies may from time to time be used to provide certain services, such as preparing and mailing prospectuses, reports, account statements and other information, conducting research on shareholder satisfaction and gathering shareholder proxies. The Trust or its affiliates may also retain non-affiliated companies to market the Trust’s shares or products which use the Trust’s shares and enter into joint marketing arrangements with them and other companies. These companies may have access to a shareholder’s personal and account information, but are permitted to use this information solely to provide the specific service or as otherwise permitted by law. In most cases, the shareholders will be clients of a third party, but the Trust may also provide a shareholder’s personal and account information to the shareholder’s respective brokerage or financial advisory firm and/or financial advisor or consultant.

SHARING INFORMATION WITH THIRD PARTIES

The Trust reserves the right to disclose or report personal or account information to non-affiliated third parties in limited circumstances where the Trust believes in good faith that disclosure is required under law, to cooperate with regulators or law enforcement authorities, to protect its rights or property, or upon reasonable request by any fund advised by PIMCO in which a shareholder has invested. In addition, the Trust may disclose information about a shareholder or a shareholder’s accounts to a non-affiliated third party at the shareholder’s request or with the consent of the shareholder.

SHARING INFORMATION WITH AFFILIATES

The Trust may share shareholder information with its affiliates in connection with servicing shareholders’ accounts, and subject to applicable law may provide shareholders with information about products and services that the Trust or its Advisers, distributors or their affiliates (“Service Affiliates”) believe may be of interest to such shareholders. The information that the Trust may share may include, for example, a shareholder’s participation in the Trust or in other

investment programs sponsored by a Service Affiliate, a shareholder’s ownership of certain types of accounts (such as IRAs), information about the Trust’s experiences or transactions with a shareholder, information captured on applicable websites, or other data about a shareholder’s accounts, subject to applicable law. The Trust’s Service Affiliates, in turn, are not permitted to share shareholder information with non-affiliated entities, except as required or permitted by law.

PROCEDURES TO SAFEGUARD PRIVATE INFORMATION

The Trust takes seriously the obligation to safeguard shareholder non-public personal information. In addition to this policy, the Trust has implemented procedures that are designed to restrict access to a shareholder’s non-public personal information to internal personnel who need to know that information to perform their jobs, such as servicing shareholder accounts or notifying shareholders of new products or services. Physical, electronic and procedural safeguards are in place to guard a shareholder’s non-public personal information.

INFORMATION COLLECTED FROM WEBSITES

Websites maintained by the Trust or its service providers may use a variety of technologies to collect information that help the Trust and its service providers understand how the website is used. Information collected from your web browser (including small files stored on your device that are commonly referred to as “cookies”) allow the websites to recognize your web browser and help to personalize and improve your user experience and enhance navigation of the website. In addition, the Trust or its Service Affiliates may use third parties to place advertisements for the Trust on other websites, including banner advertisements. Such third parties may collect anonymous information through the use of cookies or action tags (such as web beacons). The information these third parties collect is generally limited to technical and web navigation information, such as your IP address, web pages visited and browser type, and does not include personally identifiable information such as name, address, phone number or email address. If you are a registered user of the Trust’s website, the Trust or their service providers or third party firms engaged by the Trust or their service providers may collect or share information submitted by you, which may include personally identifiable information. This information can be useful to the Trust when assessing and offering services and website features. You can change your cookie preferences by changing the setting on your web browser to delete or reject cookies. If you delete or reject cookies, some website pages may not function properly. The Trust does not look for web browser “do not track” requests.

CHANGES TO THE PRIVACY POLICY

From time to time, the Trust may update or revise this privacy policy. If there are changes to the terms of this privacy policy, documents containing the revised policy on the relevant website will be updated.

¹ Amended as of February 15, 2017.

² PIMCO Investments LLC (“PI”) serves as the Trust’s distributor. This Privacy Policy applies to the activities of PI to the extent that PI regularly effects or engages in transactions with or for a Trust shareholder who is the record owner of such shares. For purposes of this Privacy Policy, references to “the Trust” shall include PI when acting in this capacity.

³ When distributing this Policy, the Trust may combine the distribution with any similar distribution of its investment adviser’s privacy policy. The distributed, combined policy may be written in the first person (i.e., by using “we” instead of “the Trust”).

ANNUAL REPORT DECEMBER 31, 2018 35

Approval of Investment Advisory Contract and Other Agreements

Approval of Renewal of the Amended and Restated Investment Advisory Contract, Supervision and Administration Agreement and Amended and Restated Asset Allocation Sub-Advisory Agreement

At a meeting held on August 20-21, 2018, the Board of Trustees (the “Board”) of PIMCO Variable Insurance Trust (the “Trust”), including the Trustees who are not “interested persons” of the Trust under the Investment Company Act of 1940, as amended (the “Independent Trustees”), considered and unanimously approved the renewal of the Amended and Restated Investment Advisory Contract (the “Investment Advisory Contract”) between the Trust, on behalf of each of the Trust’s series (the “Portfolios”), and Pacific Investment Management Company LLC (“PIMCO”) for an additional one-year term through August 31, 2019. The Board also considered and unanimously approved the renewal of the Supervision and Administration Agreement (together with the Investment Advisory Contract, the “Agreements”) between the Trust, on behalf of the Portfolios, and PIMCO for an additional one-year term through August 31, 2019. In addition, the Board considered and unanimously approved the renewal of the Amended and Restated Asset Allocation Sub-Advisory Agreement (the “Asset Allocation Agreement”) between PIMCO, on behalf of PIMCO All Asset Portfolio and PIMCO All Asset All Authority Portfolio, each a series of the Trust, and Research Affiliates, LLC (“Research Affiliates”) for an additional one-year term through August 31, 2019.

The information, material factors and conclusions that formed the basis for the Board’s approvals are summarized below.

1. INFORMATION RECEIVED

(a) Materials Reviewed:  During the course of the past year, the Trustees received a wide variety of materials relating to the services provided by PIMCO and Research Affiliates to the Trust. At each of its quarterly meetings, the Board reviewed the Portfolios’ investment performance and a significant amount of information relating to Portfolio operations, including shareholder services, valuation and custody, the Portfolios’ compliance program and other information relating to the nature, extent and quality of services provided by PIMCO and Research Affiliates to the Trust and each of the Portfolios, as applicable. In considering whether to approve the renewal of the Agreements and the Asset Allocation Agreement, the Board reviewed additional information, including, but not limited to, comparative industry data with regard to investment performance, advisory and supervisory and administrative fees and expenses, financial information for PIMCO and, where relevant, Research Affiliates, information regarding the profitability to PIMCO of its relationship with the Portfolios, information about the personnel providing investment management services, other advisory services and supervisory and administrative services to the Portfolios, and information about the fees

charged and services provided to other clients with similar investment mandates as the Portfolios, where applicable. In addition, the Board reviewed materials provided by counsel to the Trust and the Independent Trustees, which included, among other things, memoranda outlining legal duties of the Board in considering the renewal of the Agreements and the Asset Allocation Agreement.

(b) Review Process:  In connection with considering the renewal of the Agreements and the Asset Allocation Agreement, the Board reviewed written materials prepared by PIMCO and, where applicable, Research Affiliates in response to requests from counsel to the Trust and the Independent Trustees encompassing a wide variety of topics. The Board requested and received assistance and advice regarding, among other things, applicable legal standards from counsel to the Trust and the Independent Trustees, and reviewed comparative fee and performance data prepared at the Board’s request by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company performance information and fee and expense data. The Board received information on matters related to the Agreements and the Asset Allocation Agreement and met both as a full Board and in a separate session of the Independent Trustees, without management present, at the August 20-21, 2018 meeting. The Independent Trustees also conducted in-person meetings with counsel to the Trust and the Independent Trustees, including one on July 18, 2018, to discuss the Lipper Report, as defined below, and certain aspects of the 2018 15(c) materials presented and other matters deemed relevant to their consideration of the renewal of the Agreements and the Asset Allocation Agreement. In connection with its review of the Agreements, the Board received comparative information on the performance and the fees and expenses of other peer group funds and share classes. In addition, the Independent Trustees requested and received supplemental information.

The approval determinations were made on the basis of each Trustee’s business judgment after consideration and evaluation of all the information presented. Individual Trustees may have given different weights to certain factors and assigned various degrees of materiality to information received in connection with the approval process. In deciding to approve the renewal of the Agreements and the Asset Allocation Agreement, the Board did not identify any single factor or particular information that, in isolation, was controlling. The discussion below is intended to summarize the broad factors and information that figured prominently in the Board’s consideration of the renewal of the Agreements and the Asset Allocation Agreement, but is not intended to summarize all of the factors considered by the Board.

2. NATURE, EXTENT AND QUALITY OF SERVICES

(a) PIMCO, Research Affiliates, their Personnel, and Resources:  The Board considered the depth and quality of PIMCO’s investment management process, including: the experience, capability and integrity

36 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

of its senior management and other personnel; the overall financial strength and stability of its organization; and the ability of its organizational structure to address changes in the Portfolios’ asset levels. The Board also considered the various services in addition to portfolio management that PIMCO provides under the Investment Advisory Contract. The Board noted that PIMCO makes available to its investment professionals a variety of resources and systems relating to investment management, compliance, trading, performance and portfolio accounting. The Board also noted PIMCO’s commitment to enhancing and investing in its global infrastructure, technology capabilities, risk management processes and the specialized talent needed to stay at the forefront of the competitive investment management industry and to strengthen its ability to deliver services under the Agreements. The Board considered PIMCO’s policies, procedures and systems reasonably designed to assure compliance with applicable laws and regulations and its commitment to further developing and strengthening these programs, its oversight of matters that may involve conflicts of interest between the Portfolios’ investments and those of other accounts managed by PIMCO, and its efforts to keep the Trustees informed about matters relevant to the Portfolios and their shareholders. The Board also considered PIMCO’s continuous investment in new disciplines and talented personnel, which has enhanced PIMCO’s services to the Portfolios and has allowed PIMCO to introduce innovative new portfolios over time. In addition, the Board considered the nature and quality of services provided by PIMCO to the wholly-owned subsidiaries of certain applicable Portfolios.

The Trustees considered that PIMCO has continued to strengthen the process it uses to actively manage counterparty risk and to assess the financial stability of counterparties with which the Portfolios do business, to manage collateral and to protect Portfolios from an unforeseen deterioration in the creditworthiness of trading counterparties. The Trustees noted that, consistent with its fiduciary duty, PIMCO executes transactions through a competitive best execution process and uses only those counterparties that meet its stringent and monitored criteria. The Trustees considered that PIMCO’s collateral management team utilizes a counterparty risk system to analyze portfolio level exposure and collateral being exchanged with counterparties.

In addition, the Trustees considered new services and service enhancements that PIMCO has implemented since the Board renewed the Agreements in 2017, including, but not limited to upgrading the global network and infrastructure to support trading and risk management systems; enhancing and continuing to expand capabilities within the pre-trade compliance platform; enhancing flexible client reporting capabilities to support increased differentiation within local markets; developing new application and database frameworks to support new trading strategies; expanding proprietary applications

suites to enrich capabilities across Compliance, Analytics, Risk Management, Client Reporting, Attribution and Customer Relationship management; continuing investment in its enterprise risk management function, including PIMCO’s cybersecurity program and global business continuity functions; oversight by the Americas Fund Oversight Committee, which provides senior-level oversight and supervision focused on new and ongoing fund-related business opportunities; engaging a third party service provider to implement the SEC reporting modernization regime; expanding the Fund Treasurer’s Office; enhancing a proprietary application to provide portfolio managers with more timely and high quality income reporting; developing a global tax management application that will enable investment professionals to access foreign market and security tax information on a real-time basis; enhancing reporting of tax reporting for portfolio managers for income products with improved transparency on tax factors impacting income generation and dividend yield; upgrading a proprietary application to allow shareholder subscription and redemption data to pass to portfolio managers more quickly and efficiently; and continuing to expand the pricing portal and the proprietary performance reconciliation tool.

Similarly, the Board considered the asset allocation services provided by Research Affiliates to the PIMCO All Asset Portfolio and PIMCO All Asset All Authority Portfolio. The Board further considered PIMCO’s oversight of Research Affiliates in connection with Research Affiliates providing asset allocation services to the Asset Portfolio and All Asset All Authority Portfolio. The Board also considered the depth and quality of Research Affiliates’ investment management and research capabilities, the experience and capabilities of its portfolio management personnel and the overall financial strength of the organization.

Ultimately, the Board concluded that the nature, extent and quality of services provided or procured by PIMCO under the Agreements and provided by Research Affiliates under the Asset Allocation Agreement are likely to continue to benefit the Portfolios and their respective shareholders, as applicable.

(b) Other Services:  The Board also considered the nature, extent and quality of supervisory and administrative services provided by PIMCO to the Portfolios under the Supervision and Administration Agreement.

The Board considered the terms of the Supervision and Administration Agreement, under which the Trust pays for the supervisory and administrative services provided pursuant to that agreement under what is essentially an all-in fee structure (the “unified fee”). In return, PIMCO provides or procures certain supervisory and administrative services and bears the costs of various third party services required by the Portfolios, including audit, custodial, portfolio accounting, legal, transfer agency, sub-accounting and printing costs. The Board noted that the scope and complexity, as well as the costs, of the supervisory

ANNUAL REPORT DECEMBER 31, 2018 37

Approval of Investment Advisory Contract and Other Agreements (Cont.)

and administrative services provided by PIMCO under the Supervision and Administration Agreement continue to increase. The Board considered PIMCO’s provision of supervisory and administrative services and its supervision of the Trust’s third party service providers to assure that these service providers continue to provide a high level of service relative to alternatives available in the market.

Ultimately, the Board concluded that the nature, extent and quality of the services provided by PIMCO has benefited, and will likely continue to benefit, the Portfolios and their shareholders.

3. INVESTMENT PERFORMANCE

The Board reviewed information from PIMCO concerning the Portfolios’ performance, as available, over short- and long-term periods ended March 31, 2018 and other performance data, as available, over short- and long-term periods ended June 30, 2018 (the “PIMCO Report”) and from Broadridge concerning the Portfolios’ performance, as available, over short- and long-term periods ended March 31, 2018 (the “Lipper Report”).

The Board considered information regarding both the short- and long-term investment performance of each Portfolio relative to its peer group and relevant benchmark index as provided to the Board in advance of each of its quarterly meetings throughout the year, including the PIMCO Report and Lipper Report, which were provided in advance of the August 20-21, 2018 meeting. The Trustees noted that many of the Portfolios outperformed their respective Lipper medians on a net-of-fees basis over the three-, five- and ten-year periods ended March 31, 2018. The Board also noted that, as of March 31, 2018, the Administrative Class of 72%, 35% and 73% of the Portfolios outperformed their respective Lipper category median on a net-of-fees basis over the three-, five- and ten-year periods, respectively. The Trustees considered that other classes of each Portfolio would have substantially similar performance to that of the Administrative Class of the relevant Portfolio on a relative basis because all of the classes are invested in the same portfolio of investments and that differences in performance among classes could principally be attributed to differences in the supervisory and administrative fees and distribution and servicing expenses of each class. The Board also considered that the investment objectives of certain of the Portfolios may not always be identical to those of the other funds in their respective peer groups and that the Lipper categories do not: separate funds based upon maturity or duration; account for the applicable Portfolios’ hedging strategies; distinguish between enhanced index and actively managed equity strategies; include as many subsets as the Portfolios offer (i.e., Portfolios may be placed in a “catch-all” Lipper category to which they do not properly belong); or account for certain fee waivers. The Board noted that, due to these differences, performance comparisons between certain of the Portfolios and their so-called peers may not be

particularly relevant to the consideration of Portfolio performance but found the comparative information supported its overall evaluation.

The Board noted that performance for a majority of the Portfolios has been mixed compared to their respective benchmark indexes over the five-year period ended March 31, 2018. The Board noted that, as of March 31, 2018, 70%, 23% and 92% of the Trust’s assets (based on Administrative Class performance) outperformed their respective benchmarks on a net-of-fees basis over the three-, five- and ten-year periods, respectively. The Board also discussed actions that have been taken by PIMCO to attempt to improve performance and took note of PIMCO’s plans to monitor performance going forward.

The Board considered PIMCO’s discussion of the intensive nature of managing bond funds, noting that it requires the management of a number of factors, including: varying maturities; prepayments; collateral management; counterparty management; pay-downs; credit and corporate events; workouts; derivatives; net new issuance in the bond market; and decreased market maker inventory levels. The Board noted that in addition to managing these factors, PIMCO must also balance risk controls and strategic positions in each portfolio it manages, including the Portfolios. Despite these challenges, the Board noted PIMCO’s ability to generate non-market correlated excess performance for its clients over time, including the Trust.

The Board ultimately concluded, within the context of all of its considerations in connection with the Agreements, that PIMCO’s performance record and process in managing the Portfolios indicates that its continued management is likely to benefit the Portfolios and their shareholders, and merits the approval of the renewal of the Agreements.

4. ADVISORY FEES, SUPERVISORY AND ADMINISTRATIVE FEES AND TOTAL EXPENSES

The Board considered that PIMCO seeks to price new funds and classes to scale. PIMCO reported to the Board that, in proposing fees for any Portfolio or class of shares, it considers a number of factors, including, but not limited to, the type and complexity of the services provided, the cost of providing services, the risk assumed by PIMCO in the development of products and the provision of services and the competitive marketplace for financial products. Fees charged to or proposed for different Portfolios for advisory services and supervisory and administrative services may vary in light of these various factors. The Board considered that portfolio pricing generally is not driven by comparison to passively-managed products.

In addition, PIMCO reported to the Board that it periodically reviews the fees charged to the Portfolios. The Board noted that, based upon this review, PIMCO may propose advisory fee or supervisory and administrative fee changes where (i) a Portfolio’s long-term performance warrants additional consideration; (ii) there is a notable aid to market

38 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

position; (iii) a Portfolio’s fee does not reflect the current level of supervision or administrative fees provided to the Portfolio; or (iv) PIMCO would like to change a Portfolio’s overall strategic positioning.

The Board reviewed the advisory fees, supervisory and administrative fees and total expenses of the Portfolios (each as a percentage of average net assets) and compared such amounts with the average and median fee and expense levels of other similar funds. The Board also reviewed information relating to the sub-advisory fees paid to Research Affiliates with respect to applicable Portfolios, taking into account that PIMCO compensates Research Affiliates from the advisory fees paid by such Portfolios to PIMCO. With respect to advisory fees, the Board reviewed data from Broadridge that compared the average and median advisory fees of other funds in a “Peer Group” of comparable funds, as well as the universe of other similar funds. The Board noted that a number of Portfolios have total expense ratios that fall below the average and median expense ratios in their Peer Group and Lipper universe. In addition, the Board considered fee waivers in place for certain of the Portfolios and also noted the fee waivers in place with respect to the advisory fee and supervisory and administrative fee that might result from investments by applicable Portfolios in their respective wholly-owned subsidiaries. The Board also considered that PIMCO reviews the Portfolios’ fee levels and carefully considers changes where appropriate.

The Board also reviewed data comparing the Portfolios’ advisory fees to the standard and negotiated fee rates PIMCO charges to separate accounts, collective investment trusts and sub-advised clients with similar investment strategies. In cases where the fees for other clients were lower than those charged to the Portfolios, the Trustees noted that the differences in fees were attributable to various factors, including, but not limited to, differences in the advisory and other services provided by PIMCO to the Portfolios, differences in the number or extent of the services provided by PIMCO to the Portfolios, the manner in which similar portfolios may be managed, different requirements with respect to liquidity management and the implementation of other regulatory requirements, and the fact that separate accounts may have other contractual arrangements or arrangements across PIMCO strategies that justify different levels of fees. The Board considered that, with respect to collective investment trusts, PIMCO performs fewer or less extensive services because collective investment trusts are generally exempt from SEC regulation; investors in a collective investment trust may receive shareholder services from a trustee bank, rather than PIMCO; collective investment trusts have less regulatory disclosure; and the management structure of collective investment trusts differs from that of funds. The Trustees also considered that PIMCO faces increased entrepreneurial, legal and regulatory risk in sponsoring and managing mutual funds and ETFs as compared to separate accounts, external sub-advised funds or other investment products.

Regarding advisory fees charged by PIMCO in its capacity as sub-adviser to third party/unaffiliated funds, the Trustees took into account that such fees may be lower than the fees charged by PIMCO to serve as adviser to the Portfolios. The Trustees also took into account that there are various reasons for any such differences in fees, including, but not limited to, the fact that PIMCO may be subject to varying levels of entrepreneurial risk and regulatory requirements, differing legal liabilities on a contract-by-contract basis and different servicing requirements when PIMCO does not serve as the sponsor of a fund and is not principally responsible for all aspects of a fund’s investment program and operations as compared to when PIMCO serves as investment adviser and sponsor.

The Board considered the Portfolios’ supervisory and administrative fees, comparing them to similar funds in the report supplied by Broadridge. The Board also considered that as the Portfolios’ business has become increasingly complex and the number of Portfolios has grown over time, PIMCO has provided an increasingly broad array of fund supervisory and administrative functions. In addition, the Board considered the Trust’s unified fee structure, under which the Trust pays for the supervisory and administrative services it requires for one set fee. In return for this unified fee, PIMCO provides or procures supervisory and administrative services and bears the costs of various third party services required by the Portfolios, including audit, custodial, portfolio accounting, legal, transfer agency, sub-accounting and printing costs. The Board further considered that many other funds pay for comparable services separately, and thus it is difficult to directly compare the Trust’s unified supervisory and administrative fees with the fees paid by other funds for administrative services alone. The Board also considered that the unified supervisory and administrative fee leads to Portfolio fees that are fixed over the contract period, rather than variable. The Board noted that, although the unified fee structure does not have breakpoints, it implicitly reflects economies of scale by fixing the absolute level of Portfolio fees at competitive levels over the contract period even if the Portfolios’ operating costs rise when assets remain flat or decrease. Other factors the Board considered in assessing the unified fee include PIMCO’s approach of pricing Portfolios to scale at inception and reinvesting in other important areas of the business that support the Portfolios. The Board considered that the Portfolios’ unified fee structure meant that fees were not impacted by recent outflows in certain Portfolios, unlike funds without a unified fee structure, which may see increased expense ratios when fixed costs, such as service provider costs, are passed through to a smaller asset base. The Board considered historical advisory and supervisory and administrative fee reductions implemented for different Portfolios and classes, noting that the unified fee can be increased or decreased in subsequent contractual periods and is subject to the periodic reviews discussed above. The Board noted that, with few exceptions, PIMCO

ANNUAL REPORT DECEMBER 31, 2018 39

Approval of Investment Advisory Contract and Other Agreements (Cont.)

has generally maintained Portfolio fees at the same level as implemented when the unified fee was adopted, and has reduced fees for a number of Portfolios in prior years. The Board concluded that the Portfolios’ supervisory and administrative fees were reasonable in relation to the value of the services provided, including the services provided to different classes of shareholders, and that the expenses assumed contractually by PIMCO under the Supervision and Administration Agreement represent, in effect, a cap on overall Portfolio fees during the contractual period, which is beneficial to the Portfolios and their shareholders.

The Board considered the Portfolios’ total expenses and discussed with PIMCO those Portfolios and/or classes of Portfolios that had above median total expenses. The Board noted that many of the Portfolios are unique products that have few peers, if any, and cannot easily be grouped with comparable funds. Upon comparing the Portfolios’ total expenses to other funds in the “Peer Groups” provided by Broadridge, the Board found total expenses of each Portfolio to be reasonable.

The Trustees also considered the advisory fees charged to the Portfolios that operate as funds of funds (the “Funds of Funds”) and the advisory services provided in exchange for such fees. The Trustees determined that such services were in addition to the advisory services provided to the underlying funds in which the Funds of Funds may invest and, therefore, such services were not duplicative of the advisory services provided to the underlying funds. The Board also considered the various fee waiver agreements in place for the Funds of Funds. The Board noted that PIMCO is continuing waivers for these Funds of Funds, as well as for certain other Portfolios of the Trust.

Based on the information presented by PIMCO, Research Affiliates and Broadridge, members of the Board determined, in the exercise of their business judgment, that the level of the advisory fees and supervisory and administrative fees charged by PIMCO under the Agreements, as well as the total expenses of each Portfolio, after the proposals to decrease the management fee, are reasonable.

5. ADVISER COSTS, LEVEL OF PROFITS AND ECONOMIES OF SCALE

The Board reviewed information regarding PIMCO’s costs of providing services to the Funds as a whole, as well as the resulting level of profits to PIMCO under both the adjusted asset profitability method and the profit and loss profitability method, which were each utilized to calculate profitability. To the extent applicable, the Board also reviewed information regarding the portion of a Portfolio’s advisory fee retained by PIMCO, following the payment of sub-advisory fees to Research Affiliates, with respect to the Portfolio. Additionally, the Board noted that profit margins with respect to the Trust shows that the Trust is profitable, although less so than PIMCO Funds due to payments made

by PIMCO to participating insurance companies. The Board further noted PIMCO’s engagement of a third party to review and to make recommendations regarding PIMCO’s processes supporting its profitability estimation materials. The Board also noted that it had received information regarding the structure and manner in which PIMCO’s investment professionals were compensated, and PIMCO’s view of the relationship of such compensation to the attraction and retention of quality personnel. The Board considered PIMCO’s need to invest in global infrastructure, technology capabilities, risk management processes and qualified personnel to reinforce and offer new services and to accommodate changing regulatory requirements.

With respect to potential economies of scale, the Board noted that PIMCO shares the benefits of economies of scale with the Portfolios and their shareholders in a number of ways, including investing in portfolio and trade operations management, firm technology, middle and back office support, legal and compliance, and fund administration logistics, senior management supervision, governance and oversight of those services, and through fee reductions or waivers, the pricing of Portfolios to scale from inception, and the enhancement of services provided to the Portfolios in return for fees paid. The Board reviewed the history of the Portfolios’ fee structure. The Board considered that the Portfolios’ unified fee rates had been set competitively and/or priced to scale from inception, had been held steady during the contractual period at that scaled competitive rate for most Portfolios as assets grew, or as assets declined in the case of some Portfolios, and continued to be competitive compared with peers. The Board also considered that the unified fee is a transparent means of informing a Portfolio’s shareholders of the fees associated with the Portfolio, and that the Portfolio bears certain expenses that are not covered by the advisory fee or the unified fee. The Board further considered the challenges that arise when managing large funds, which can result in certain “diseconomies” of scale and noted that PIMCO has continued to reinvest in many areas of the business to support the Portfolios.

The Trustees considered that the unified fee has provided inherent economies of scale because a Portfolio maintains competitive fixed fees over the annual contract period even if the particular Portfolio’s assets decline and/or operating costs rise. The Trustees further considered that, in contrast, breakpoints may be a proxy for charging higher fees on lower asset levels and that when a fund’s assets decline, breakpoints may reverse, which causes expense ratios to increase. The Trustees also considered that, unlike the Portfolios’ unified fee structure, funds with “pass through” administrative fee structures may experience increased expense ratios when fixed dollar fees are charged against declining fund assets. The Trustees also considered that the unified fee protects shareholders from a rise in operating costs that may result from, among other things, PIMCO’s investments in various business enhancements and infrastructure, including those referenced above. The Trustees noted that PIMCO’s investments in these areas are extensive.

40 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

The Board concluded that the Portfolios’ cost structures were reasonable and that PIMCO is appropriately sharing economies of scale, if any, through the Portfolios’ unified fee structure, generally pricing Portfolios to scale at inception and reinvesting in its business to provide enhanced and expanded services to the Portfolios and their shareholders.

6. ANCILLARY BENEFITS

The Board considered other benefits realized by PIMCO and its affiliates as a result of PIMCO’s relationship with the Trust. Such benefits may include possible ancillary benefits to PIMCO’s institutional investment management business due to the reputation and market penetration of the Trust or third party service providers’ relationship-level fee concessions, which decrease fees paid by PIMCO. The Board also considered that affiliates of PIMCO provide distribution and/or shareholder services to the Portfolios and their shareholders, for which they may be compensated through distribution and servicing fees paid pursuant to the Portfolios’ Rule 12b-1 plans or otherwise. The Board reviewed PIMCO’s soft dollar policies and procedures, noting that while PIMCO has the authority to receive the benefit of research provided by broker-dealers executing portfolio transactions on behalf of the Portfolios, it has adopted a policy not to enter into contractual soft dollar arrangements.

7. CONCLUSIONS

Based on their review, including their comprehensive consideration and evaluation of each of the broad factors and information summarized above, the Independent Trustees and the Board as a whole concluded that the nature, extent and quality of the services rendered to the Portfolios by PIMCO and Research Affiliates supported the renewal of the Agreements and the Asset Allocation Agreement. The Independent Trustees and the Board as a whole concluded that the Agreements and the Asset Allocation Agreement continued to be fair and reasonable to the Portfolios and their shareholders, that the Portfolios’ shareholders received reasonable value in return for the fees paid to PIMCO by the Portfolios under the Agreements and the fees paid to Research Affiliates by PIMCO under the Asset Allocation Agreement, and that the renewal of the Agreements and the Asset Allocation Agreement was in the best interests of the Portfolios and their shareholders.

ANNUAL REPORT DECEMBER 31, 2018 41

General Information

Investment Adviser and Administrator

Pacific Investment Management Company LLC

650 Newport Center Drive

Newport Beach, CA 92660

Distributor

PIMCO Investments LLC

1633 Broadway

New York, NY 10019

Custodian

State Street Bank and Trust Company

801 Pennsylvania Avenue

Kansas City, MO 64105

Transfer Agent

DST Asset Manager Solutions, Inc.

430 W 7th Street STE 219024

Kansas City, MO 64105-1407

Legal Counsel

Dechert LLP

1900 K Street, N.W.

Washington, D.C. 20006

Independent Registered Public Accounting Firm

PricewaterhouseCoopers LLP

1100 Walnut Street, Suite 1300

Kansas City, MO 64106

This report is submitted for the general information of the shareholders of the Portfolio listed on the Report cover.

pimco.com/pvit

PVIT09AR_123118

PIMCO VARIABLE INSURANCE TRUST

Annual Report

December 31, 2018

PIMCO Global Multi-Asset Managed Allocation Portfolio

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, you may not be receiving paper copies of the Portfolio’s shareholder reports from the insurance company that offers your contract unless you specifically request paper copies from the insurance company or from your financial intermediary. Instead, the shareholder reports will be made available on a website, and the insurance company will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the insurance company electronically by following the instructions provided by the insurance company.

You may elect to receive all future reports in paper free of charge from the insurance company. You should contact the insurance company if you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all portfolio companies available under your contract at the insurance company.

Table of Contents

	Page
Chairman’s Letter		2
Important Information About the PIMCO Global Multi-Asset Managed Allocation Portfolio		4
Portfolio Summary		7
Expense Example		8
Financial Highlights (Consolidated)		10
Consolidated Statement of Assets and Liabilities		12
Consolidated Statement of Operations		13
Consolidated Statements of Changes in Net Assets		14
Consolidated Schedule of Investments		15
Notes to Financial Statements		32
Report of Independent Registered Public Accounting Firm		54
Glossary		55
Federal Income Tax Information		56
Management of the Trust		57
Privacy Policy		59
Approval of Investment Advisory Contract and Other Agreements		60

This material is authorized for use only when preceded or accompanied by the current PIMCO Variable Insurance Trust (the “Trust”) prospectus for the Portfolio. (The variable product prospectus may be obtained by contacting your Investment Consultant.)

Chairman’s Letter

Dear PIMCO Variable Insurance Trust Shareholder,

Following this letter is the PIMCO Variable Insurance Trust Annual Report, which covers the 12-month reporting period ended December 31, 2018. On the subsequent pages you will find specific details regarding investment results and discussion of the factors that most affected performance during the reporting period.

For the 12-month reporting period ended December 31, 2018

The U.S. economy continued to expand during the reporting period. Looking back, U.S. gross domestic product (“GDP”) grew at an annual pace of 2.2% during the first quarter of 2018. During the second quarter of 2018, GDP growth rose to an annual pace of 4.2%, the strongest since the third quarter of 2014. GDP then expanded at an annual pace of 3.4% during the third quarter of the year. Finally, the Commerce Department’s initial reading for fourth-quarter 2018 GDP has been delayed due to the partial government shutdown.

The Federal Reserve (the “Fed”) continued to normalize monetary policy during the reporting period. During its meetings that concluded in March, June, September and December 2018, the Fed raised the federal funds rate in 0.25% increments. The Fed’s December rate hike pushed the federal funds rate to a range between 2.25% and 2.50%. In addition, the Fed continued to reduce its balance sheet during the reporting period.

Economic activity outside the U.S. initially accelerated during the reporting period, but moderated as it progressed. Against this backdrop, the European Central Bank (the “ECB”) and the Bank of Japan largely maintained their highly accommodative monetary policies, while other central banks took a more hawkish stance. The Bank of England raised rates at its meeting in August 2018 and the Bank of Canada raised rates twice during the reporting period. Meanwhile, the ECB ended its quantitative easing program in December 2018, but indicated that it does not expect to raise interest rates “at least through the summer of 2019.”

The U.S. Treasury yield curve flattened during the reporting period as short-term rates moved up more than longer-term rates. In our view, the increase in rates at the short end of the yield curve was mostly due to Fed interest rate increases. The yield on the benchmark 10-year U.S. Treasury note was 2.69% at the end of the reporting period, up from 2.40% on December 31, 2017. U.S. Treasuries, as measured by the Bloomberg Barclays U.S. Treasury Index, returned 0.86% over the 12 months ended December 31, 2018. Meanwhile, the Bloomberg Barclays U.S. Aggregate Bond Index, a widely used index of U.S. investment grade bonds, returned 0.01% over the period. Riskier fixed income asset classes, including high yield corporate bonds and emerging market debt, generated weak results versus the broad U.S. market. The ICE BofAML U.S. High Yield Index returned -2.27% over the reporting period, whereas emerging market external debt, as represented by the JPMorgan Emerging Markets Bond Index (EMBI) Global, returned -4.61% over the reporting period. Emerging market local bonds, as represented by the JPMorgan Government Bond Index-Emerging Markets Global Diversified Index (Unhedged), returned -6.21% over the period.

Global equities produced poor results during the reporting period. U.S. equities moved sharply higher over the first nine months of the period. We believe this rally was driven by a number of factors, including corporate profits that often exceeded expectations. However, U.S. equities fell sharply during the fourth quarter of 2018. We believe this was triggered by a number of factors, including signs of moderating global growth, concerns over future Fed rate hikes, the ongoing trade dispute between the U.S. and China and the partial U.S. government shutdown. All told, U.S. equities, as represented by the S&P 500 Index, returned -4.38% during the reporting period. Elsewhere, emerging market equities, as measured by the MSCI Emerging Markets Index, returned -14.58% during the reporting period, whereas global equities, as represented by the MSCI World Index, returned -8.71%. Elsewhere, Japanese equities, as represented by the Nikkei 225 Index (in JPY), returned -10.39% during the reporting period and European equities, as represented by the MSCI Europe Index (in EUR), returned -10.57%.

Commodity prices fluctuated and generally declined during the reporting period. When the reporting period began, West Texas crude oil was approximately $65 a barrel, but by the end it was roughly $45 a barrel. This was driven in

2 PIMCO VARIABLE INSURANCE TRUST

part by increased supply and declining global demand. Elsewhere, gold and copper prices also moved lower during the reporting period.

Finally, during the reporting period the foreign exchange markets experienced periods of volatility, due in part to signs of decoupling economic growth and central bank policies, along with a number of geopolitical events. The U.S. dollar produced mixed results against other major currencies during the reporting period. For example, the U.S. dollar appreciated 4.71% and 5.90% versus the euro and the British pound, respectively, whereas the U.S. dollar depreciated 2.66% versus the yen during the reporting period.

Thank you for the assets you have placed with us. We deeply value your trust, and we will continue to work diligently to meet your broad investment needs.

Sincerely,   Brent R. Harris Chairman of the Board,
PIMCO Variable Insurance Trust

Past performance is no guarantee of future results. Unless otherwise noted, index returns reflect the reinvestment of income distributions and capital gains, if any, but do not reflect fees, brokerage commissions or other expenses of investing. It is not possible to invest directly in an unmanaged index.

ANNUAL REPORT DECEMBER 31, 2018 3

Important Information About the PIMCO Global Multi-Asset Managed Allocation Portfolio

PIMCO Variable Insurance Trust (the “Trust”) is an open-end management investment company that includes the PIMCO Global Multi-Asset Managed Allocation Portfolio (the “Portfolio”). The Portfolio is only available as a funding vehicle under variable life insurance policies or variable annuity contracts issued by insurance companies (“Variable Contracts”). Individuals may not purchase shares of the Portfolio directly. Shares of the Portfolio also may be sold to qualified pension and retirement plans outside of the separate account context.

The Portfolio may invest in Institutional Class or Class M shares of any of the funds of PIMCO Funds and PIMCO Equity Series, affiliated open-end investment companies, except funds of funds (“Underlying PIMCO Funds”), and may also invest in other affiliated funds, including funds of PIMCO ETF Trust, and unaffiliated funds (collectively, the “Acquired Funds”). The Portfolio may invest in a combination of affiliated funds and unaffiliated funds, which may or may not be registered under the Investment Company Act of 1940, as amended (the “1940 Act”), fixed income instruments, equity securities, forwards and derivatives, to the extent permitted under the 1940 Act or exemptive relief therefrom. The cost of investing in the Portfolio will generally be higher than the cost of investing in a mutual fund that only invests directly in individual stocks and bonds.

We believe that equity funds and bond funds have an important role to play in a well-diversified portfolio. It is important to note, however, that equity funds and bond funds are subject to notable risks.

Among other things, equity and equity-related securities may decline in value due to both real and perceived general market, economic, and industry conditions. The values of equity securities, such as common stocks and preferred securities, have historically risen and fallen in periodic cycles and may decline due to general market conditions, which are not specifically related to a particular company, such as real or perceived adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment generally. Equity securities may also decline due to factors that affect a particular industry or industries, such as labor shortages, increased production costs and competitive conditions within an industry. In addition, the value of an equity security may decline for a number of reasons that directly relate to the issuer, such as management performance, financial leverage and reduced demand for the issuer’s goods or services, as well as the historical and prospective earnings of the issuer and the value of its assets. Different types of equity securities may react differently to these developments and a change in the financial condition of a single issuer may affect securities markets as a whole.

During a general downturn in the securities markets, multiple asset classes, including equity securities, may decline in value simultaneously. The market price of equity securities owned by the Portfolio may go up or down, sometimes rapidly or unpredictably. Equity securities generally have greater price volatility than fixed income securities and common stocks generally have the greatest appreciation and depreciation potential of all corporate securities.

Bond funds and fixed income securities are subject to a variety of risks, including interest rate risk, liquidity risk and market risk. In an environment where interest rates may trend upward, rising rates would negatively impact the performance of most bond funds, and fixed income securities and other instruments held by the Portfolio (and/or Underlying PIMCO Funds or Acquired Funds, as applicable) are likely to decrease in value. A wide variety of factors can cause interest rates to rise (e.g., central bank monetary policies, inflation rates, general economic conditions, etc.). In addition, changes in interest rates can be sudden and unpredictable, and there is no guarantee that management will anticipate such movement accurately. The Portfolio may lose money as a result of movements in interest rates.

As of the date of this report, interest rates in the U.S. and many parts of the world, including certain European countries, are at or near historically low levels. Thus, the Portfolio currently faces a heightened level of interest rate risk, especially since the Fed has ended its quantitative easing program and has begun, and may continue, to raise interest rates. To the extent the Fed continues to raise interest rates, there is a risk that rates across the financial system may rise. Further, while bond markets have steadily grown over the past three decades, dealer inventories of corporate bonds are near historic lows in relation to market size. As a result, there has been a significant reduction in the ability of dealers to “make markets.”

Bond funds and individual bonds with a longer duration (a measure used to determine the sensitivity of a security’s price to changes in interest rates) tend to be more sensitive to changes in interest rates, usually making them more volatile than securities or funds with shorter durations. All of the factors mentioned above, individually or collectively, could lead to increased volatility and/or lower liquidity in the fixed income markets, or negatively impact the Portfolio’s performance or cause the Portfolio to incur losses. As a result, the Portfolio may experience increased shareholder redemptions, which among other things, could further reduce the net assets of the Portfolio.

The Portfolio may be subject to various risks as described in the Portfolio’s prospectus and in the Principal Risks in the Notes to Financial Statements.

4 PIMCO VARIABLE INSURANCE TRUST

The geographical classification of foreign (non-U.S.) securities in this report are classified by the country of incorporation of a holding. In certain instances, a security’s country of incorporation may be different from its country of economic exposure.

The United States presidential administration’s enforcement of tariffs on goods from other countries, with a focus on China, has contributed to international trade tensions and may impact portfolio securities (and/or portfolio securities of Underlying PIMCO Funds or Acquired Funds, as applicable).

The United Kingdom’s decision to leave the European Union may impact Portfolio returns. This decision may cause substantial volatility in foreign exchange markets, lead to weakness in the exchange rate of the British pound, result in a sustained period of market uncertainty, and destabilize some or all of the other European Union member countries and/or the Eurozone.

On the Portfolio Summary page in this Shareholder Report, the Average Annual Total Return table and Cumulative Returns chart measures performance assuming that any dividend and capital gain distributions were reinvested. The Cumulative Returns chart reflects only Administrative Class performance. Performance may vary by share class based on each class’s expense ratios. The Portfolio measures its performance against at least one broad-based securities market index (“benchmark index”). The benchmark index does not take into account fees, expenses, or taxes. The Portfolio’s past performance, before and after taxes, is not necessarily an indication of how the Portfolio will perform in the future. There is no assurance that the Portfolio, even if the Portfolio has experienced high or unusual performance for one or more periods, will experience similar levels of performance in the future. High performance is defined as a significant increase in either 1) the Portfolio’s total return in excess of that of the Portfolio’s benchmark between reporting periods or 2) the Portfolio’s total return in excess of the Portfolio’s historical returns between reporting periods. Unusual performance is defined as a significant change in the Portfolio’s performance as compared to one or more previous reporting periods.

The following table discloses the inception dates of the Portfolio and its respective share classes along with the Portfolio’s diversification status as of period end:

Portfolio Name	Portfolio Inception		Institutional Class		Administrative Class		Advisor Class		Diversification Status
PIMCO Global Multi-Asset Managed Allocation Portfolio		04/15/09		04/30/12		04/15/09		04/15/09		Diversified

An investment in the Portfolio is not a bank deposit and is not guaranteed or insured by the Federal Deposit Insurance Corporation (“FDIC”) or any other government agency. It is possible to lose money on investments in the Portfolio.

The Trustees are responsible generally for overseeing the management of the Trust. The Trustees authorize the Trust to enter into service agreements with the Adviser, the Distributor, the Administrator and other service providers in order to provide, and in some cases authorize service providers to procure through other parties, necessary or desirable services on behalf of the Trust and the Portfolio. Shareholders are not parties to or third-party beneficiaries of such service agreements. Neither this Portfolio’s prospectus nor summary prospectus, the Trust’s Statement of Additional Information (“SAI”), any contracts filed as exhibits to the Trust’s registration statement, nor any other communications, disclosure documents or regulatory filings (including this report) from or on behalf of the Trust or the Portfolio creates a contract between or among any shareholder of the Portfolio, on the one hand, and the Trust, the Portfolio, a service provider to the Trust or the Portfolio, and/or the Trustees or officers of the Trust, on the other hand. The Trustees (or the Trust and its officers, service providers or other delegates acting under authority of the Trustees) may amend the most recent prospectus or use a new prospectus,

summary prospectus or SAI with respect to the Portfolio or the Trust, and/or amend, file and/or issue any other communications, disclosure documents or regulatory filings, and may amend or enter into any contracts to which the Trust or the Portfolio is a party, and interpret the investment objective(s), policies, restrictions and contractual provisions applicable to the Portfolio, without shareholder input or approval, except in circumstances in which shareholder approval is specifically required by law (such as changes to fundamental investment policies) or where a shareholder approval requirement is specifically disclosed in the Trust’s then-current prospectus or SAI.

PIMCO has adopted written proxy voting policies and procedures (“Proxy Policy”) as required by Rule 206(4)-6 under the Investment Advisers Act of 1940, as amended. The Proxy Policy has been adopted by the Trust as the policies and procedures that PIMCO will use when voting proxies on behalf of the Portfolio. A description of the policies and procedures that PIMCO uses to vote proxies relating to portfolio securities of the Portfolio, and information about how the Portfolio voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30th, are available without charge, upon request, by calling the Trust at (888) 87-PIMCO, on the Portfolio’s website at www.pimco.com/pvit, and on the Securities and Exchange Commission’s (“SEC”) website at www.sec.gov.

ANNUAL REPORT DECEMBER 31, 2018 5

Important Information About the PIMCO Global Multi-Asset Managed Allocation Portfolio (Cont.)

The Trust files a complete schedule of the Portfolio’s holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. A copy of the Portfolio’s Form N-Q is available on the SEC’s website at www.sec.gov. A copy of the Portfolio’s Form N-Q is also available without charge, upon request, by calling the Trust at (888) 87-PIMCO and on the Portfolio’s website at www.pimco.com/pvit.

The SEC adopted a rule that, beginning in 2021, generally will allow shareholder reports to be delivered to investors by providing access to such reports online free of charge and by mailing a notice that the report is electronically available. Pursuant to the rule, investors may still elect to receive a complete shareholder report in the mail. Instructions for electing to receive paper copies of the Portfolio’s shareholder reports going forward may be found on the front cover of this report.

The SEC adopted amendments to certain disclosure requirements relating to open-end investment companies’ liquidity risk management programs. Effective December 1, 2019, large fund complexes will be required to include in their shareholder reports a discussion of their liquidity risk management programs’ operations over the past year.

6 PIMCO VARIABLE INSURANCE TRUST

PIMCO Global Multi-Asset Managed Allocation Portfolio (Consolidated)

Cumulative Returns Through December 31, 2018

$10,000 invested at the end of the month when the Portfolio’s Administrative Class commenced operations.

Allocation Breakdown as of 12/31/2018^†§

U.S. Government Agencies	33.1%
U.S. Treasury Obligations	16.9%
Mutual Funds	12.2%
Common Stocks	10.2%
Corporate Bonds & Notes	8.8%
Short-Term Instruments‡	8.2%
Sovereign Issues	3.9%
Asset-Backed Securities	3.0%
Exchange-Traded Funds	1.5%
Real Estate Investment Trusts	1.4%
Other	0.8%

^†   % of Investments, at value.

^§  Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.

^‡  Includes Central Funds Used for Cash Management Purposes.

Average Annual Total Return for the period ended December 31, 2018
		1 Year		5 Years		Inception≈
	PIMCO Global Multi-Asset Managed Allocation Portfolio Institutional Class		(5.32)%		3.39%		1.83%
	PIMCO Global Multi-Asset Managed Allocation Portfolio Administrative Class		(5.46)%		3.25%		4.52%
	PIMCO Global Multi-Asset Managed Allocation Portfolio Advisor Class		(5.61)%		3.12%		4.42%
	60% MSCI World Index/40% Bloomberg Barclays U.S. Aggregate Index±		(5.07)%		3.90%		7.95%¨
	MSCI World Index±±		(8.71)%		4.56%		10.60%¨

All Portfolio returns are net of fees and expenses.

^≈ For class inception dates please refer to the Important Information.

^¨ Average annual total return since 04/15/2009.

^± 60% MSCI World Index/40% Bloomberg Barclays U.S. Aggregate Index. The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. The MSCI World Index consists of 23 developed market country indices. It is not possible to invest directly in an unmanaged index. The Bloomberg Barclays U.S. Aggregate Index represents securities that are SEC-registered, taxable, and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. These major sectors are subdivided into more specific indices that are calculated and reported on a regular basis.

^±± The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. The MSCI World Index consists of 23 developed market country indices.

It is not possible to invest directly in an unmanaged index.

Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. The Portfolio’s performance does not reflect the deduction of additional charges and expenses imposed in connection with investing in Variable Contracts, which will reduce returns. Differences in the Portfolio’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the prices of individual positions (which may be sourced from different pricing vendors or other sources) used by the Portfolio and the index. For performance current to the most recent month-end, visit www.pimco.com/pvit or via (888) 87-PIMCO.

The Portfolio’s total annual operating expense ratio in effect as of period end which includes the Acquired Fund Fees and Expenses (Underlying PIMCO Fund Expenses), were 1.19% for Institutional Class shares, 1.34% for Administrative Class shares, and 1.44% for Advisor Class shares. Details regarding any changes to the Portfolio’s operating expenses, subsequent to period end, can be found in the Portfolio’s current prospectus, as supplemented.

Investment Objective and Strategy Overview

PIMCO Global Multi-Asset Managed Allocation Portfolio seeks total return which exceeds that of a blend of 60% MSCI World Index/40% Bloomberg Barclays U.S. Aggregate Index. PIMCO uses a three-step approach in seeking to achieve the Portfolio’s investment objective which consists of 1) developing a target asset allocation; 2) developing a series of relative value strategies designed to add value beyond the target allocation; and 3) utilizing hedging techniques to manage risks. PIMCO evaluates these three steps and uses varying combinations of Acquired Funds and/or direct investments to implement them within the Portfolio. The Portfolio seeks to achieve its investment objective by investing under normal circumstances in a combination of affiliated and unaffiliated funds, which may or may not be registered under the Investment Company Act of 1940, as amended (the “1940 Act”), equity securities, Fixed Income Instruments, forwards and derivatives. “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. Portfolio strategies may change from time to time. Please refer to the Portfolio’s current prospectus for more information regarding the Portfolio’s strategy.

Portfolio Insights

The following affected performance during the reporting period:

» U.S. interest rate strategies contributed to relative performance, particularly overweight exposure to U.S duration and the associated carry.

» Underweight exposure to eurozone equities in the second half of 2018 contributed to performance, as these securities generally posted negative returns.

» Underweight exposure to investment grade corporate spread contributed to relative performance, as investment grade spreads widened.

» Overweight exposure to the Argentine peso detracted from relative performance, as the currency depreciated.

» Overweight exposure to Japanese equities in Q4 detracted from relative performance, as these securities generally posted negative returns.

» U.S. equity positioning detracted from performance.

ANNUAL REPORT DECEMBER 31, 2018 7

Expense Example PIMCO Global Multi-Asset Managed Allocation Portfolio (Consolidated)

Example

As a shareholder of the Portfolio, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees (if applicable), and other Portfolio expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in the Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds.

The Expense Example does not reflect any fees or other expenses imposed by the Variable Contracts. If it did, the expenses reflected in the Expense Example would be higher. The Example is based on an investment of $1,000 invested at the beginning of the period and held from July 1, 2018 to December 31, 2018 unless noted otherwise in the table and footnotes below.

Actual Expenses

The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60), then multiply the result by the number in the appropriate row for your share class, in the column titled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other portfolios. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other portfolios.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information under the heading “Hypothetical (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different portfolios. In addition, if these transactional costs were included, your costs would have been higher.

Expense ratios may vary period to period because of various factors, such as an increase in expenses that are not covered by the management fees such as fees and expenses of the independent trustees and their counsel, extraordinary expenses and interest expense.

	Actual						Hypothetical (5% return before expenses)
	Beginning Account Value (07/01/18)		Ending Account Value (12/31/18)		Expenses Paid During Period*		Beginning Account Value (07/01/18)		Ending Account Value (12/31/18)		Expenses Paid During Period*		Net Annualized Expense Ratio**
Institutional Class	$	1,000.00	$	952.10	$	4.33	$	1,000.00	$	1,020.77	$	4.48		0.88	%
Administrative Class		1,000.00		951.30		5.07		1,000.00		1,020.01		5.24		1.03
Advisor class		1,000.00		950.10		5.55		1,000.00		1,019.51		5.75		1.13

* Expenses Paid During Period are equal to the net annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Overall fees and expenses of investing in the Portfolio will be higher because the example does not reflect variable contract fees and expenses.

** Net Annualized Expense Ratio is reflective of any applicable contractual fee waivers and/or expense reimbursements or voluntary fee waivers. Details regarding fee waivers, if any, can be found in Note 9, Fees and Expenses, in the Notes to Financial Statements.

8 PIMCO VARIABLE INSURANCE TRUST

(THIS PAGE INTENTIONALLY LEFT BLANK)

ANNUAL REPORT DECEMBER 31, 2018 9

Financial Highlights PIMCO Global Multi-Asset Managed Allocation Portfolio (Consolidated)

			Investment Operations								Less Distributions(b)
Selected Per Share Data for the Year Ended^:	Net Asset Value Beginning of Year		Net Investment Income (Loss)(a)		Net Realized/ Unrealized Gain (Loss)			Total			From Net Investment Income			From Net Realized Capital Gain			Tax Basis Return of Capital			Total
Institutional Class
12/31/2018	$	12.83	$	0.31	$	(0.97	)	$	(0.66	)	$	(0.23	)	$	(1.00	)	$	0.00		$	(1.23	)
12/31/2017		11.50		0.27		1.36			1.63			(0.30	)		0.00			0.00			(0.30	)
12/31/2016		11.33		0.26		0.21			0.47			0.00			0.00			(0.30	)		(0.30	)
12/31/2015		11.57		0.36		(0.37	)		(0.01	)		(0.21	)		0.00			(0.02	)		(0.23	)
12/31/2014		11.34		0.36		0.19			0.55			0.00			0.00			(0.32	)		(0.32	)
Administrative Class
12/31/2018		12.83		0.29		(0.97	)		(0.68	)		(0.21	)		(1.00	)		0.00			(1.21	)
12/31/2017		11.50		0.25		1.36			1.61			(0.28	)		0.00			0.00			(0.28	)
12/31/2016		11.33		0.24		0.21			0.45			0.00			0.00			(0.28	)		(0.28	)
12/31/2015		11.56		0.30		(0.32	)		(0.02	)		(0.19	)		0.00			(0.02	)		(0.21	)
12/31/2014		11.33		0.33		0.20			0.53			0.00			0.00			(0.30	)		(0.30	)
Advisor Class
12/31/2018		12.89		0.28		(0.98	)		(0.70	)		(0.20	)		(1.00	)		0.00			(1.20	)
12/31/2017		11.55		0.23		1.37			1.60			(0.26	)		0.00			0.00			(0.26	)
12/31/2016		11.38		0.23		0.21			0.44			0.00			0.00			(0.27	)		(0.27	)
12/31/2015		11.61		0.27		(0.30	)		(0.03	)		(0.18	)		0.00			(0.02	)		(0.20	)
12/31/2014		11.38		0.31		0.21			0.52			0.00			0.00			(0.29	)		(0.29	)

^ A zero balance may reflect actual amounts rounding to less than $0.01 or 0.01%.

^(a)  Per share amounts based on average number of shares outstanding during the year.

^(b)  The tax characterization of distributions is determined in accordance with Federal income tax regulations. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

^(c)  Ratios shown do not include expenses of the investment companies in which a Portfolio may invest. See Note 9, Fees and Expenses, in the Notes to Financial Statements for more information regarding the expenses and any applicable fee waivers associated with these investments.

10 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

					Ratios/Supplemental Data
							Ratios to Average Net Assets(c)
Net Asset Value End of Year		Total Return			Net Assets End of Year (000s)		Expenses			Expenses Excluding Waivers			Expenses Excluding Interest Expense			Expenses Excluding Interest Expense and Waivers			Net Investment Income (Loss)			Portfolio Turnover Rate
$	10.94		(5.32	)%	$	1,687		0.90	%		1.05	%		0.84	%		0.99	%		2.46	%		693	%
	12.83		14.24			1,789		0.88			1.03			0.84			0.99			2.20			381
	11.50		4.20			1,571		0.82			1.01			0.79			0.98			2.31			412
	11.33		(0.05	)		1,515		0.74			1.03			0.69			0.98			3.01			367
	11.57		4.86			2,052		0.55			0.98			0.53			0.96			3.13			391
	10.94		(5.46	)		151,493		1.05			1.20			0.99			1.14			2.28			693
	12.83		14.08			190,344		1.03			1.18			0.99			1.14			2.01			381
	11.50		4.04			191,628		0.97			1.16			0.94			1.13			2.16			412
	11.33		(0.14	)		219,433		0.89			1.18			0.84			1.13			2.46			367
	11.56		4.70			248,087		0.70			1.13			0.68			1.11			2.82			391
	10.99		(5.61	)		436,873		1.15			1.30			1.09			1.24			2.18			693
	12.89		13.99			549,934		1.13			1.28			1.09			1.24			1.90			381
	11.55		3.92			569,112		1.07			1.26			1.04			1.23			2.07			412
	11.38		(0.26	)		625,067		0.99			1.28			0.94			1.23			2.23			367
	11.61		4.57			899,657		0.80			1.23			0.78			1.21			2.69			391

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 11

Consolidated Statement of Assets and Liabilities PIMCO Global Multi-Asset Managed Allocation Portfolio

(Amounts in thousands†, except per share amounts)	December 31, 2018
Assets:
Investments, at value
Investments in securities*	$	763,659
Investments in Affiliates		119,255
Financial Derivative Instruments
Exchange-traded or centrally cleared		8,289
Over the counter		3,475
Cash		2
Deposits with counterparty		5,635
Foreign currency, at value		5,087
Receivable for investments sold		1,190
Receivable for investments sold on a delayed-delivery basis		289
Receivable for TBA investments sold		482,861
Receivable for Portfolio shares sold		161
Interest and/or dividends receivable		1,781
Dividends receivable from Affiliates		384
Reimbursement receivable from PIMCO		83
Total Assets		1,392,151
Liabilities:
Borrowings & Other Financing Transactions
Payable for reverse repurchase agreements	$	27,706
Payable for short sales		52,601
Financial Derivative Instruments
Exchange-traded or centrally cleared		5,262
Over the counter		3,107
Payable for investments purchased		285
Payable for investments in Affiliates purchased		384
Payable for TBA investments purchased		702,789
Deposits from counterparty		9,134
Payable for Portfolio shares redeemed		234
Accrued investment advisory fees		456
Accrued supervisory and administrative fees		31
Accrued distribution fees		90
Accrued servicing fees		19
Total Liabilities		802,098
Net Assets	$	590,053
Net Assets Consist of:
Paid in capital	$	625,604
Distributable earnings (accumulated loss)		(35,551	)
Net Assets	$	590,053
Net Assets:
Institutional Class	$	1,687
Administrative Class		151,493
Advisor Class		436,873
Shares Issued and Outstanding:
Institutional Class		154
Administrative Class		13,852
Advisor Class		39,750
Net Asset Value Per Share Outstanding:
Institutional Class	$	10.94
Administrative Class		10.94
Advisor Class		10.99
Cost of investments in securities	$	783,368
Cost of investments in Affiliates	$	123,155
Cost of foreign currency held	$	5,097
Proceeds received on short sales	$	51,509
Cost or premiums of financial derivative instruments, net	$	(918	)
* Includes repurchase agreements of:	$	39,939

^†   A zero balance may reflect actual amounts rounding to less than one thousand.

12 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

Consolidated Statement of Operations PIMCO Global Multi-Asset Managed Allocation Portfolio

(Amounts in thousands†)	Year Ended December 31, 2018
Investment Income:
Interest	$	13,956
Dividends, net of foreign taxes*		1,963
Dividends from Investments in Affiliates		6,716
Total Income		22,635
Expenses:
Investment advisory fees		6,308
Supervisory and administrative fees		424
Servicing fees - Administrative Class		260
Distribution and/or servicing fees - Advisor Class		1,257
Trustee fees		20
Interest expense		439
Miscellaneous expense		1
Total Expenses		8,709
Waiver and/or Reimbursement by PIMCO		(1,041	)
Net Expenses		7,668
Net Investment Income (Loss)		14,967
Net Realized Gain (Loss):
Investments in securities		(18,373	)
Investments in Affiliates		6,876
Net capital gain distributions received from Affiliate investments		467
Exchange-traded or centrally cleared financial derivative instruments		(468	)
Over the counter financial derivative instruments		4,106
Foreign currency		(140	)
Net Realized Gain (Loss)		(7,532	)
Net Change in Unrealized Appreciation (Depreciation):
Investments in securities		(24,215	)
Investments in Affiliates		(11,029	)
Exchange-traded or centrally cleared financial derivative instruments		(9,740	)
Over the counter financial derivative instruments		2,671
Foreign currency assets and liabilities		(126	)
Net Change in Unrealized Appreciation (Depreciation)		(42,439	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	(35,004	)
* Foreign tax withholdings - Dividends	$	17

^†   A zero balance may reflect actual amounts rounding to less than one thousand.

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 13

Consolidated Statements of Changes in Net Assets PIMCO Global Multi-Asset Managed Allocation Portfolio

(Amounts in thousands†)	Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets from:
Operations:
Net investment income (loss)	$	14,967		$	14,634
Net realized gain (loss)		(7,532	)		55,070
Net change in unrealized appreciation (depreciation)		(42,439	)		30,004
Net Increase (Decrease) in Net Assets Resulting from Operations		(35,004	)		99,708
Distributions to Shareholders:
From net investment income and/or net realized capital gains*
Institutional Class		(174	)		(41	)
Administrative Class		(15,596	)		(4,291	)
Advisor Class		(44,262	)		(11,870	)
Total Distributions(a)		(60,032	)		(16,202	)
Portfolio Share Transactions:
Net increase (decrease) resulting from Portfolio share transactions**		(56,978	)		(103,750	)
Total Increase (Decrease) in Net Assets		(152,014	)		(20,244	)
Net Assets:
Beginning of year		742,067			762,311
End of year	$	590,053		$	742,067

^†   A zero balance may reflect actual amounts rounding to less than one thousand.

* See Note 2, New Accounting Pronouncements, in the Notes to Financial Statements for more information.

** See Note 13, Shares of Beneficial Interest, in the Notes to Financial Statements.

^(a)  The tax characterization of distributions is determined in accordance with Federal income tax regulations. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

14 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

Consolidated Schedule of Investments PIMCO Global Multi-Asset Managed Allocation Portfolio

December 31, 2018

(Amounts in thousands*, except number of shares, contracts and units, if any)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
INVESTMENTS IN SECURITIES 129.4%
CORPORATE BONDS & NOTES 13.2%
BANKING & FINANCE 7.3%
AerCap Ireland Capital DAC
3.750% due 05/15/2019	$		2,100	$		2,100
4.250% due 07/01/2020			900			902
Ally Financial, Inc.
3.500% due 01/27/2019			700			700
8.000% due 11/01/2031			800			892
Bank of America Corp.
5.875% due 03/15/2028 •(g)			420			383
Barclays PLC
7.000% due 09/15/2019 •(g)(i)	GBP		300			375
Credit Suisse Group Funding Guernsey Ltd.
3.800% due 09/15/2022	$		800			795
CSCEC Finance Cayman Ltd.
2.250% due 06/14/2019			200			199
Deutsche Bank AG
4.250% due 10/14/2021			3,400			3,326
FCE Bank PLC
0.869% due 09/13/2021	EUR		600			668
Ford Motor Credit Co. LLC
3.606% (US0003M + 0.830%) due 03/12/2019 ~	$		700			700
Goldman Sachs Group, Inc.
3.988% (US0003M + 1.200%) due 09/15/2020 ~			6,200			6,231
Indian Railway Finance Corp. Ltd.
3.917% due 02/26/2019			300			300
ING Bank NV
2.625% due 12/05/2022			1,000			985
Jyske Realkredit A/S
2.500% due 10/01/2047	DKK		8			1
Lincoln Finance Ltd.
6.875% due 04/15/2021	EUR		2,100			2,465
Lloyds Banking Group PLC
3.590% (US0003M + 0.800%) due 06/21/2021 ~	$		500			495
7.000% due 06/27/2019 •(g)(i)	GBP		1,900			2,427
National Rural Utilities Cooperative Finance Corp.
3.178% (US0003M + 0.375%) due 06/30/2021 ~	$		700			695
Navient Corp.
4.875% due 06/17/2019			828			825
8.000% due 03/25/2020			400			407
Nordea Kredit Realkreditaktieselskab
2.500% due 10/01/2047	DKK		2			0
Nykredit Realkredit A/S
2.500% due 10/01/2047			13			2
Realkredit Danmark A/S
2.500% due 07/01/2047			79			13
Royal Bank of Scotland Group PLC
4.372% (US0003M + 1.550%) due 06/25/2024 ~	$		700			669
4.519% due 06/25/2024 •			400			393
Sberbank of Russia Via SB Capital S.A.
3.080% due 03/07/2019	EUR		3,670			4,226
State Bank of India
3.358% (US0003M + 0.950%) due 04/06/2020 ~	$		1,600			1,602
UBS AG
2.450% due 12/01/2020			3,300			3,241
UniCredit SpA
7.830% due 12/04/2023			6,550			6,859
						42,876
INDUSTRIALS 3.2%
BAT Capital Corp.
3.204% due 08/14/2020 •			1,100			1,089
BAT International Finance PLC
2.750% due 06/15/2020			1,200			1,179
Campbell Soup Co.
3.418% (US0003M + 0.630%) due 03/15/2021 ~			610			598

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Dell International LLC
3.480% due 06/01/2019	$		3,320	$		3,311
4.420% due 06/15/2021			800			800
Delta Air Lines, Inc.
2.875% due 03/13/2020			900			894
Dominion Energy Gas Holdings LLC
3.388% (US0003M + 0.600%) due 06/15/2021 ~			500			499
eBay, Inc.
2.750% due 01/30/2023			500			481
Enbridge, Inc.
2.814% (US0003M + 0.400%) due 01/10/2020 ~			1,300			1,296
Hyundai Capital America
3.601% due 09/18/2020 •			2,500			2,490
Mylan NV
3.750% due 12/15/2020			500			500
Telefonica Emisiones S.A.
5.877% due 07/15/2019			100			101
Time Warner Cable LLC
8.750% due 02/14/2019			3,500			3,520
United Technologies Corp.
3.350% due 08/16/2021			300			299
VMware, Inc.
3.900% due 08/21/2027			200			178
Volkswagen Group of America Finance LLC
2.125% due 05/23/2019			900			896
2.450% due 11/20/2019			900			892
						19,023
UTILITIES 2.7%
AT&T, Inc.
3.086% (US0003M + 0.650%) due 01/15/2020 ~			280			280
3.386% (US0003M + 0.950%) due 07/15/2021 ~			3,500			3,490
3.488% (US0003M + 0.750%) due 06/01/2021 ~			900			894
5.000% due 03/01/2021			100			103
5.150% due 02/15/2050			1,000			931
5.300% due 08/15/2058			400			373
Consolidated Edison Co. of New York, Inc.
3.222% (US0003M + 0.400%) due 06/25/2021 ~			300			297
NextEra Energy Capital Holdings, Inc.
3.053% (US0003M + 0.315%) due 09/03/2019 ~			1,230			1,229
Petrobras Global Finance BV
6.125% due 01/17/2022			917			943
7.250% due 03/17/2044			3,700			3,658
Sempra Energy
3.238% (US0003M + 0.450%) due 03/15/2021 ~			1,000			980
Sinopec Group Overseas Development Ltd.
2.125% due 05/03/2019			300			299
Verizon Communications, Inc.
3.376% due 02/15/2025			2,752			2,674
						16,151
Total Corporate Bonds & Notes (Cost $78,727)						78,050
U.S. GOVERNMENT AGENCIES 49.5%
Fannie Mae
4.000% due 06/01/2048 - 09/01/2048			11,128			11,355
4.293% due 05/01/2038 •			1,992			2,089
Fannie Mae, TBA
3.500% due 02/01/2034 - 02/01/2049			152,800			152,765
4.000% due 01/01/2049 - 02/01/2049			123,495			125,838
Total U.S. Government Agencies (Cost $289,557)						292,047
U.S. TREASURY OBLIGATIONS 25.2%
U.S. Treasury Bonds
3.000% due 02/15/2048 (p)			140			140

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
U.S. Treasury Inflation Protected Securities (f)
0.125% due 04/15/2019 (n)	$		3,910	$		3,855
0.125% due 04/15/2022 (l)(n)(p)			47,220			45,698
0.125% due 07/15/2026 (n)			13,135			12,341
0.250% due 01/15/2025 (n)			2,777			2,660
0.375% due 07/15/2025			5,516			5,322
0.375% due 01/15/2027 (n)			4,623			4,394
0.500% due 01/15/2028			7,090			6,772
0.625% due 04/15/2023 (n)			1,324			1,302
0.625% due 01/15/2024 (n)(p)			3,348			3,297
0.625% due 01/15/2026			7,088			6,904
0.875% due 02/15/2047			11,458			10,543
1.000% due 02/15/2048			11,376			10,805
1.875% due 07/15/2019 (n)			711			709
2.000% due 01/15/2026			217			231
2.125% due 02/15/2040			4,657			5,486
2.375% due 01/15/2025 (l)			20,741			22,434
3.375% due 04/15/2032			1,757			2,257
3.625% due 04/15/2028 (n)			1,198			1,471
3.875% due 04/15/2029 (p)			1,721			2,193
Total U.S. Treasury Obligations (Cost $152,447)						148,814
NON-AGENCY MORTGAGE-BACKED SECURITIES 0.8%
Alliance Bancorp Trust
2.746% due 07/25/2037 •			512			453
Bear Stearns Adjustable Rate Mortgage Trust
4.088% due 02/25/2036 ^~			63			59
4.176% due 07/25/2036 ^~			212			198
Countrywide Home Loan Mortgage Pass-Through Trust
6.000% due 04/25/2036			455			371
Residential Accredit Loans, Inc. Trust
2.686% due 06/25/2046 •			275			112
Residential Asset Securitization Trust
2.906% due 05/25/2035 •			584			500
WaMu Mortgage Pass-Through Certificates Trust
2.836% due 01/25/2045 •			3,250			3,251
Total Non-Agency Mortgage-Backed Securities (Cost $4,967)						4,944
ASSET-BACKED SECURITIES 4.5%
ACE Securities Corp. Home Equity Loan Trust
4.306% due 06/25/2034 •			158			152
Argent Mortgage Loan Trust
2.986% due 05/25/2035 •			860			816
Argent Securities Trust
2.656% due 07/25/2036 •			565			475
Aurium CLO DAC
0.680% due 10/13/2029 •	EUR		800			913
CIT Mortgage Loan Trust
3.856% due 10/25/2037 •	$		2,493			2,525
Countrywide Asset-Backed Certificates
2.646% due 05/25/2035 •			708			673
2.756% due 03/25/2037 •			700			658
CVP Cascade CLO Ltd.
3.586% due 01/16/2026 •			502			501
Dryden Senior Loan Fund
3.336% due 10/15/2027 •			1,600			1,589
Figueroa CLO Ltd.
3.642% due 06/20/2027 •			1,200			1,192
First Franklin Mortgage Loan Trust
2.976% due 11/25/2036 •			1,600			1,409
Fremont Home Loan Trust
2.641% due 10/25/2036 •			1,101			1,028
2.656% due 10/25/2036 •			2,489			1,276
Halcyon Loan Advisors Funding Ltd.
3.389% due 04/20/2027 •			600			597
IndyMac Mortgage Loan Trust
2.576% due 07/25/2036 •			1,056			463
Lehman ABS Manufactured Housing Contract Trust
7.170% due 04/15/2040 ^~			795			560
Lehman XS Trust
2.666% due 05/25/2036 •			1,034			1,024
5.012% due 06/25/2036 Ø			773			701

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 15

Consolidated Schedule of Investments PIMCO Global Multi-Asset Managed Allocation Portfolio (Cont.)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Long Beach Mortgage Loan Trust
2.806% due 01/25/2036 •	$		1,708	$		1,517
Morgan Stanley ABS Capital, Inc. Trust
3.481% due 07/25/2035 •			76			76
Mountain View CLO Ltd.
3.236% due 10/15/2026 •			600			599
Navient Student Loan Trust
3.656% due 03/25/2066 •			1,054			1,059
Sound Point CLO Ltd.
3.296% due 04/15/2027 •			1,100			1,095
3.349% due 07/20/2027 •			300			299
Sudbury Mill CLO Ltd.
3.599% due 01/17/2026 •			1,546			1,545
Symphony CLO Ltd.
3.466% due 10/15/2025 •			1,771			1,758
Tralee CLO Ltd.
3.499% due 10/20/2027 •			1,000			996
Venture CLO Ltd.
3.316% due 07/15/2027 •			800			792
Total Asset-Backed Securities (Cost $25,734)						26,288
SOVEREIGN ISSUES 5.8%
Argentina Government International Bond
6.875% due 01/26/2027			1,180			903
41.328% (BADLARPP) due 10/04/2022 ~	ARS		3,700			156
50.225% (BADLARPP + 2.000%) due 04/03/2022 ~(a)			1,745			45
59.257% (ARLLMONP) due 06/21/2020 ~(a)			35,737			1,022
Australia Government International Bond
3.000% due 09/20/2025	AUD		2,132			1,732
Brazil Letras do Tesouro Nacional
0.000% due 04/01/2019 (d)	BRL		1,880			478
Denmark Government Bond
0.100% due 11/15/2023 (f)	DKK		14,959			2,436
France Government International Bond
0.100% due 03/01/2025 (f)	EUR		2,474			2,955
0.250% due 07/25/2024 (f)			1,153			1,412
1.850% due 07/25/2027 (f)			2,649			3,697
Italy Buoni Poliennali Del Tesoro
2.350% due 09/15/2024 (f)			3,798			4,595
New Zealand Government International Bond
2.000% due 09/20/2025	NZD		538			381
Peru Government International Bond
5.940% due 02/12/2029	PEN		3,500			1,060
6.150% due 08/12/2032			6,000			1,816
Qatar Government International Bond
3.875% due 04/23/2023	$		1,400			1,418
5.103% due 04/23/2048			1,100			1,158
United Kingdom Gilt
1.750% due 09/07/2037	GBP		1,970			2,515
3.500% due 01/22/2045			3,807			6,520
Total Sovereign Issues (Cost $37,760)						34,299
		SHARES
COMMON STOCKS 15.2%
COMMUNICATION SERVICES 1.0%
Alphabet, Inc. ‘A’ (b)			956			999
Alphabet, Inc. ‘C’ (b)(k)			1,098			1,137
BT Group PLC			14,298			44
CBS Corp. NVDR ‘B’			1,700			74
Comcast Corp. ‘A’			13,963			476
Discovery, Inc. ‘A’ (b)			500			13
Discovery, Inc. ‘C’ (b)			300			7
Eutelsat Communications S.A.			2,980			59
Facebook, Inc. ‘A’ (b)			3,763			493
ITV PLC			11,490			18
KDDI Corp.			11,488			275

	SHARES			MARKET VALUE (000S)
Nippon Telegraph & Telephone Corp.		6,780	$		277
NTT DOCOMO, Inc.		30,160			680
Omnicom Group, Inc.		1,000			73
PCCW Ltd.		569,896			328
Pearson PLC		16,372			196
ProSiebenSat.1 Media SE		5,246			94
RTL Group S.A.		3,613			193
SES S.A.		3,176			61
Shaw Communications, Inc. ‘B’		2,000			36
SoftBank Group Corp.		1,500			100
Sprint Corp. (b)		5,700			33
Telstra Corp. Ltd.		67,217			135
Viacom, Inc. ‘B’		4,202			108
Walt Disney Co.		2,400			263
					6,172
CONSUMER DISCRETIONARY 1.4%
Accor S.A.		5,799			247
Amazon.com, Inc. (b)		742			1,114
Autoliv, Inc.		949			67
AutoZone, Inc. (b)		267			224
Bandai Namco Holdings, Inc.		300			13
Berkeley Group Holdings PLC		8,002			355
Best Buy Co., Inc.		2,649			140
Burberry Group PLC		7,543			167
Continental AG		270			37
Darden Restaurants, Inc.		901			90
Dollar General Corp.		1,031			111
Fast Retailing Co. Ltd.		350			180
Faurecia S.A.		1,901			72
Gap, Inc.		4,026			104
Garmin Ltd.		493			31
H&R Block, Inc.		6,404			162
Home Depot, Inc.		4,558			783
Honda Motor Co. Ltd.		19,799			523
Kering S.A.		515			243
Kohl’s Corp.		2,969			197
Las Vegas Sands Corp.		10,230			532
Lowe’s Cos., Inc.		3,638			336
Macy’s, Inc.		3,217			96
Mazda Motor Corp.		4,400			46
McDonald’s Corp.		1,392			247
Michael Kors Holdings Ltd. (b)		2,758			105
Nordstrom, Inc.		1,100			51
Persimmon PLC		13,134			323
Peugeot S.A.		10,431			223
PulteGroup, Inc.		4,700			122
Ross Stores, Inc.		1,100			92
Sands China Ltd.		26,272			115
Starbucks Corp.		3,100			200
Tapestry, Inc.		1,200			40
Target Corp.		3,801			251
TJX Cos., Inc.		4,200			188
Wesfarmers Ltd.		8,837			201
Yum! Brands, Inc.		5,417			498
					8,526
CONSUMER STAPLES 1.1%
Altria Group, Inc.		6,320			312
Anheuser-Busch InBev S.A. NV		3,139			208
Clorox Co.		566			87
Coles Group Ltd. (b)		9,130			76
Colgate-Palmolive Co.		100			6

	SHARES			MARKET VALUE (000S)
Conagra Brands, Inc.		5,873	$		125
Estee Lauder Cos., Inc. ‘A’		867			113
Ingredion, Inc.		4,035			369
J Sainsbury PLC		47,210			160
Japan Tobacco, Inc.		16,559			395
Kellogg Co.		100			6
Kimberly-Clark Corp.		8,279			943
Kirin Holdings Co. Ltd.		6,353			133
Koninklijke Ahold Delhaize NV		11,384			288
Kroger Co.		8,504			234
Lion Corp.		2,000			41
PepsiCo, Inc.		9,380			1,036
Philip Morris International, Inc.		7,317			489
Procter & Gamble Co.		7,400			680
Swedish Match AB		829			33
Tyson Foods, Inc. ‘A’		6,430			343
Unicharm Corp.		8,849			287
Walgreens Boots Alliance, Inc.		700			48
Woolworths Ltd.		1,893			39
					6,451
ENERGY 1.8%
Anadarko Petroleum Corp.		2,409			106
ARC Resources Ltd.		13,800			82
Baker Hughes a GE Co.		3,700			79
Canadian Natural Resources Ltd.		5,414			131
Cheniere Energy, Inc. (b)(k)		20,239			1,198
ConocoPhillips		8,825			550
Enagas S.A.		10,070			272
Encana Corp.		11,885			69
Energy Transfer Equity LP		83,370			1,101
Eni SpA		41,574			655
Enterprise Products Partners LP		46,143			1,135
Equinor ASA		18,244			388
HollyFrontier Corp.		2,881			147
Husky Energy, Inc.		9,400			97
Inter Pipeline Ltd.		3,600			51
JXTG Holdings, Inc.		17,323			91
Lundin Petroleum AB		776			19
Marathon Oil Corp.		17,340			249
Marathon Petroleum Corp.		3,621			214
Noble Energy, Inc.		12,207			229
ONEOK, Inc.		20,041			1,081
Plains All American Pipeline LP		55,492			1,112
Royal Dutch Shell PLC ‘A’		27,195			800
Royal Dutch Shell PLC ‘B’		16,224			484
Seven Generations Energy Ltd. (b)		8,259			67
Showa Shell Sekiyu KK		5,909			83
Valero Energy Corp.		2,995			224
Woodside Petroleum Ltd.		1,023			23
					10,737
FINANCIALS 2.2%
3i Group PLC		23,484			231
ABN AMRO Group NV		10,207			240
Aflac, Inc. (k)		23,815			1,085
Allstate Corp.		300			25
Athene Holding Ltd. (b)		800			32
Bank Leumi Le-Israel BM		42,686			258
Bank of Nova Scotia		3,400			169
Berkshire Hathaway, Inc. ‘B’ (b)		3,100			633
Canadian Imperial Bank of Commerce		3,900			290
CI Financial Corp.		22,536			285

16 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

	SHARES			MARKET VALUE (000S)
Cincinnati Financial Corp.		2,700	$		209
Citizens Financial Group, Inc.		3,783			112
Commonwealth Bank of Australia		5,680			290
Direct Line Insurance Group PLC		46,752			190
Discover Financial Services		8,591			507
DNB ASA		9,566			153
Eaton Vance Corp.		3,870			136
Everest Re Group Ltd.		200			44
Fifth Third Bancorp		24,540			577
Huntington Bancshares, Inc.		30,360			362
IGM Financial, Inc.		3,634			83
Industrivarden AB ‘C’		4,746			96
Intesa Sanpaolo SpA		119,715			266
Investor AB ‘B’		9,100			386
JPMorgan Chase & Co.		7,258			708
KBC Group NV		4,900			318
Macquarie Group Ltd.		2,046			157
National Australia Bank Ltd.		6,698			114
NN Group NV		12,165			485
ORIX Corp.		22,608			331
PNC Financial Services Group, Inc.		851			99
Prudential Financial, Inc.		2,786			227
Reinsurance Group of America, Inc.		2,699			378
Resona Holdings, Inc.		6,790			33
S&P Global, Inc.		1,310			223
Sampo Oyj ‘A’		7,925			349
Sumitomo Mitsui Financial Group, Inc.		3,365			112
SunTrust Banks, Inc.		5,864			296
Swedbank AB ‘A’		8,622			192
Synchrony Financial		9,280			218
T Rowe Price Group, Inc.		7,224			667
Torchmark Corp.		2,273			169
United Overseas Bank Ltd.		16,012			289
Wells Fargo & Co.		19,372			893
Westpac Banking Corp.		16,883			298
					13,215
HEALTH CARE 1.8%
AbbVie, Inc.		6,273			578
Amgen, Inc.		4,219			821
Astellas Pharma, Inc.		31,200			399
Biogen, Inc. (b)		1,343			404
Bristol-Myers Squibb Co.		4,700			244
Cigna Corp. (b)		845			161
CVS Health Corp.		1,100			72
Eisai Co. Ltd.		1,200			93
Gilead Sciences, Inc.		5,377			336
H Lundbeck A/S		1,768			77
HCA Healthcare, Inc.		2,300			286
Hoya Corp.		3,800			229
Johnson & Johnson		4,580			591
Koninklijke Philips NV		5,870			208
Laboratory Corp. of America Holdings (b)		2,800			354
Medtronic PLC		10,882			990
Merck & Co., Inc.		5,366			410
Nektar Therapeutics (b)		1,000			33
Novo Nordisk A/S ‘B’		8,723			399
Olympus Corp.		8,245			254
Pfizer, Inc.		17,742			775
ResMed, Inc.		2,652			302
Roche Holding AG		5,218			1,292
Shionogi & Co. Ltd.		2,800			160

	SHARES			MARKET VALUE (000S)
Siemens Healthineers AG (b)		3,820	$		160
Sonova Holding AG		579			95
Sumitomo Dainippon Pharma Co. Ltd.		6,194			198
Taisho Pharmaceutical Holdings Co. Ltd.		1,000			101
Takeda Pharmaceutical Co. Ltd.		1,100			37
Terumo Corp.		500			28
UCB S.A.		1,613			132
United Therapeutics Corp. (b)		100			11
Universal Health Services, Inc. ‘B’ (k)		1,474			172
Zimmer Biomet Holdings, Inc.		100			10
					10,412
INDUSTRIALS 1.6%
Aena SME S.A.		1,604			250
Ashtead Group PLC		15,930			332
Atlas Copco AB ‘A’		9,931			236
Atlas Copco AB ‘B’		9,446			206
Boeing Co.		1,484			479
Brambles Ltd.		24,051			172
Caterpillar, Inc.		1,573			200
CIMIC Group Ltd.		4,629			142
ComfortDelGro Corp. Ltd.		40,000			63
CSX Corp.		3,200			199
Cummins, Inc.		900			120
Delta Air Lines, Inc.		6,047			302
Dover Corp.		6,401			454
Eaton Corp. PLC		8,204			563
Edenred		1,124			41
Eiffage S.A.		1,160			97
Emerson Electric Co.		10,334			617
Experian PLC		12,321			299
Fuji Electric Co. Ltd.		3,108			92
General Electric Co.		13,200			100
HD Supply Holdings, Inc. (b)		5,798			218
Honeywell International, Inc.		1,042			138
Ingersoll-Rand PLC		1,925			176
Leonardo SpA		2,229			20
Lockheed Martin Corp.		200			52
Mitsubishi Heavy Industries Ltd.		1,700			61
Norfolk Southern Corp.		500			75
PACCAR, Inc.		3,100			177
Pentair PLC		15,295			578
Raytheon Co.		1,418			217
Recruit Holdings Co. Ltd.		5,400			131
Robert Half International, Inc.		5,425			310
Royal Mail PLC		632			2
Sandvik AB		5,989			85
SGS S.A.		120			270
Smiths Group PLC		18,800			327
Snap-on, Inc.		2,273			330
Southwest Airlines Co.		800			37
Taisei Corp.		3,105			133
Textron, Inc.		4,200			193
Union Pacific Corp.		2,764			382
United Continental Holdings, Inc. (b)		700			59
United Parcel Service, Inc. ‘B’		1,200			117
United Rentals, Inc. (b)		639			66
West Japan Railway Co.		1,000			71
WW Grainger, Inc.		200			57
Yamato Holdings Co. Ltd.		800			22

	SHARES			MARKET VALUE (000S)
Yangzijiang Shipbuilding Holdings Ltd.		26,300	$		24
					9,292
INFORMATION TECHNOLOGY 3.0%
Accenture PLC ‘A’		7,533			1,062
Adobe, Inc. (b)		1,690			382
Amadeus IT Group S.A.		4,703			328
Apple, Inc. (k)		12,952			2,043
Applied Materials, Inc.		1,000			33
Broadridge Financial Solutions, Inc.		3,326			320
Brother Industries Ltd.		11,966			178
Check Point Software Technologies Ltd. (b)		700			72
Cisco Systems, Inc.		13,442			582
Citrix Systems, Inc.		3,005			308
Cognizant Technology Solutions Corp. ‘A’		2,014			128
DXC Technology Co.		5,807			309
F5 Networks, Inc. (b)		1,103			179
FUJIFILM Holdings Corp.		5,100			199
Fujitsu Ltd.		2,968			185
Hewlett Packard Enterprise Co.		5,000			66
Hitachi Ltd.		6,967			187
HP, Inc.		8,892			182
Intel Corp.		17,790			835
International Business Machines Corp.		2,133			243
Intuit, Inc.		1,270			250
KLA-Tencor Corp.		3,782			338
Lam Research Corp.		1,120			153
Mastercard, Inc. ‘A’		3,993			753
Micron Technology, Inc. (b)		7,540			239
Microsoft Corp.		22,460			2,281
NetApp, Inc.		2,825			169
NVIDIA Corp.		809			108
Oracle Corp.		3,737			169
Oracle Corp. Japan		2,377			152
QUALCOMM, Inc.		3,500			199
Red Hat, Inc. (b)		14,458			2,539
SAP SE		3,751			374
Seagate Technology PLC		4,383			169
Telefonaktiebolaget LM Ericsson ‘B’		3,512			31
Texas Instruments, Inc.		6,137			580
Tokyo Electron Ltd.		1,000			114
Trend Micro, Inc. (b)		500			27
Visa, Inc. ‘A’		7,285			961
					17,427
MATERIALS 0.6%
Anglo American PLC		9,303			207
Asahi Kasei Corp.		6,947			72
BHP Group PLC		8,452			178
Boliden AB		2,462			53
CF Industries Holdings, Inc.		700			30
Covestro AG		2,119			105
Evonik Industries AG		4,212			105
International Paper Co.		5,756			232
Israel Chemicals Ltd.		17,898			102
Koninklijke DSM NV		2,251			184
LyondellBasell Industries NV ‘A’		6,868			571
Methanex Corp.		3,690			178
Mondi PLC		4,328			90
Nitto Denko Corp.		1,700			86
Packaging Corp. of America		700			58

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 17

Consolidated Schedule of Investments PIMCO Global Multi-Asset Managed Allocation Portfolio (Cont.)

	SHARES			MARKET VALUE (000S)
Rio Tinto Ltd.		5,646	$		312
Rio Tinto PLC		10,361			493
Smurfit Kappa Group PLC		2,820			75
Sumitomo Chemical Co. Ltd.		41,026			200
Teck Resources Ltd. ‘B’		3,200			69
UPM-Kymmene Oyj		1,439			37
West Fraser Timber Co. Ltd.		3,148			156
Westlake Chemical Corp.		2,544			168
WestRock Co.		1,386			52
					3,813
REAL ESTATE 0.2%
Deutsche Wohnen SE		8,501			390
New World Development Co. Ltd.		166,700			220
Swire Properties Ltd.		80,518			283
Vonovia SE		1,068			48
					941
UTILITIES 0.5%
AES Corp.		9,638			139
Chubu Electric Power Co., Inc.		8,000			114
CLP Holdings Ltd.		15,402			174
EDP - Energias de Portugal S.A.		91,384			319
Electricite de France S.A.		12,314			195
Endesa S.A.		18,745			432
Enel SpA		45,158			261
Engie S.A.		37,801			543
Kansai Electric Power Co., Inc.		2,000			30
PG&E Corp. (b)		400			10
Red Electrica Corp. S.A.		6,391			143
Tohoku Electric Power Co., Inc.		12,800			169
Tokyo Electric Power Co. Holdings, Inc. (b)		23,367			139
					2,668
Total Common Stocks (Cost $102,428)					89,654
PREFERRED SECURITIES 0.4%
BANKING & FINANCE 0.4%
Nationwide Building Society
10.250% ~		13,756			2,450
INDUSTRIALS 0.0%
Schaeffler AG		11,750			101
Total Preferred Securities (Cost $2,847)					2,551
EXCHANGE-TRADED FUNDS 2.3%
iShares MSCI EAFE ETF		229,737			13,504
Total Exchange-Traded Funds (Cost $15,306)					13,504

		SHARES			MARKET VALUE (000S)
REAL ESTATE INVESTMENT TRUSTS 2.1%
FINANCIALS 0.1%
AGNC Investment Corp.			10,765	$		189
Annaly Capital Management, Inc.			51,880			509
						698
REAL ESTATE 2.0%
Alexandria Real Estate Equities, Inc.			7,226			833
American Tower Corp. (k)			7,671			1,214
Apartment Investment & Management Co. ‘A’			22,367			982
CapitaLand Mall Trust			6,800			11
Duke Realty Corp.			35,773			927
Equinix, Inc.			2,406			848
Equity Residential			15,501			1,023
Invitation Homes, Inc.			24,870			499
Klepierre S.A.			6,356			196
Link REIT			39,985			405
Mirvac Group			26,039			41
RioCan Real Estate Investment Trust			22,314			389
Scentre Group			79,455			218
Segro PLC			79,673			598
Simon Property Group, Inc.			11,191			1,880
SmartCentres Real Estate Investment Trust			3,900			88
Sun Communities, Inc.			8,627			878
Ventas, Inc.			13,726			804
						11,834
Total Real Estate Investment Trusts (Cost $12,650)						12,532
		PRINCIPAL AMOUNT (000S)
SHORT-TERM INSTRUMENTS 10.4%
COMMERCIAL PAPER 1.2%
Bank of Montreal
2.038% due 01/03/2019	CAD		200			146
C.I.B.C.
2.060% due 01/03/2019			2,000			1,465
Toronto-Dominion Bank
2.055% due 01/02/2019			4,100			3,003
2.055% due 01/04/2019			1,200			879
2.063% due 01/03/2019			1,800			1,318
						6,811
REPURCHASE AGREEMENTS (j) 6.8%
						39,939

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
ARGENTINA TREASURY BILLS 0.3%
(5.547)% due 01/31/2019 - 04/30/2019 (c)(d)	ARS		56,660	$		1,634
JAPAN TREASURY BILLS 2.1%
(0.321)% due 02/04/2019 (d)(e)	JPY		1,380,000			12,592
Total Short-Term Instruments (Cost $60,945)						60,976
Total Investments in Securities (Cost $783,368)						763,659
		SHARES
INVESTMENTS IN AFFILIATES 20.2%
MUTUAL FUNDS 18.2% (h)
PIMCO EqS® Long/Short Fund			1,165,829			12,812
PIMCO Income Fund			5,312,267			62,738
PIMCO Mortgage Opportunities and Bond Fund			2,101,122			22,650
PIMCO Preferred and Capital Securities Fund			977,631			9,278
Total Mutual Funds (Cost $111,378)						107,478
SHORT-TERM INSTRUMENTS 2.0%
CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 2.0%
PIMCO Short-Term Floating NAV Portfolio III			1,191,512			11,777
Total Short-Term Instruments (Cost $11,777)						11,777
Total Investments in Affiliates (Cost $123,155)						119,255
Total Investments 149.6% (Cost $906,523)				$		882,914
Financial Derivative Instruments (m)(o) 0.6% (Cost or Premiums, net $(918))						3,395
Other Assets and Liabilities, net (50.2)%						(296,256	)
Net Assets 100.0%				$		590,053

NOTES TO CONSOLIDATED SCHEDULE OF INVESTMENTS:

* A zero balance may reflect actual amounts rounding to less than one thousand.

^ Security is in default.

« Security valued using significant unobservable inputs (Level 3).

~ Variable or Floating rate security. Rate shown is the rate in effect as of period end. Certain variable rate securities are not based on a published reference rate and spread, rather are determined by the issuer or agent and are based on current market conditions. Reference rate is as of reset date, which may vary by security. These securities may not indicate a reference rate and/or spread in their description.

• Rate shown is the rate in effect as of period end. The rate may be based on a fixed rate, a capped rate or a floor rate and may convert to a variable or floating rate in the future. These securities do not indicate a reference rate and spread in their description.

Ø Coupon represents a rate which changes periodically based on a predetermined schedule or event. Rate shown is the rate in effect as of period end.

(a) Interest only security.

18 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

(b) Security did not produce income within the last twelve months.

(c) Coupon represents a weighted average yield to maturity.

(d) Zero coupon security.

(e) Coupon represents a yield to maturity.

(f) Principal amount of security is adjusted for inflation.

(g) Perpetual maturity; date shown, if applicable, represents next contractual call date.

(h) Institutional Class Shares of each Fund.

(i) Contingent convertible security.

BORROWINGS AND OTHER FINANCING TRANSACTIONS

(j)  REPURCHASE AGREEMENTS:

Counterparty	Lending Rate			Settlement Date		Maturity Date		Principal Amount		Collateralized By	Collateral (Received)			Repurchase Agreements, at Value		Repurchase Agreement Proceeds to be Received(1)
BPS		3.100	%		12/31/2018		01/02/2019	$	20,800	U.S. Treasury Inflation Protected Securities 0.125% due 07/15/2024	$	(10,634	)	$	20,800	$	20,804
										U.S. Treasury Notes 2.750% due 02/15/2024		(10,642	)
BSN		3.100			12/31/2018		01/02/2019		7,800	U.S. Treasury Notes 2.500% due 05/15/2024		(7,979	)		7,800		7,801
FICC		2.000			12/31/2018		01/02/2019		519	U.S. Treasury Notes 2.875% due 09/30/2023		(531	)		519		519
SAL		3.150			12/31/2018		01/02/2019		10,400	U.S. Treasury Notes 2.125% due 11/30/2024		(10,649	)		10,400		10,402
SSB		1.350			12/31/2018		01/02/2019		420	U.S. Treasury Notes 2.000% due 08/31/2021(2)		(432	)		420		420
Total Repurchase Agreements											$	(40,867	)	$	39,939	$	39,946

REVERSE REPURCHASE AGREEMENTS:

Counterparty	Borrowing Rate(3)			Settlement Date		Maturity Date		Amount Borrowed(3)			Payable for Reverse Repurchase Agreements
BOS		2.550	%		12/19/2018		01/14/2019	$	(17,666	)	$	(17,683	)
GRE		2.750			12/27/2018		01/28/2019		(6,507	)		(6,510	)
SCX		2.860			12/18/2018		01/17/2019		(3,509	)		(3,513	)
Total Reverse Repurchase Agreements											$	(27,706	)

SHORT SALES:

Description	Coupon		Maturity Date		Principal Amount		Proceeds			Payable for Short Sales
U.S. Government Agencies (8.9)%
Fannie Mae, TBA		3.000%		01/01/2049		$    53,900	$	(51,509	)	$	(52,601	)
Total Short Sales (8.9)%							$	(51,509	)	$	(52,601	)

BORROWINGS AND OTHER FINANCING TRANSACTIONS SUMMARY

The following is a summary by counterparty of the market value of Borrowings and Other Financing Transactions and collateral pledged/(received) as of December 31, 2018:

Counterparty	Repurchase Agreement Proceeds to be Received(1)		Payable for Reverse Repurchase Agreements(3)			Payable for Sale-Buyback Transactions		Total Borrowings and Other Financing Transactions			Collateral Pledged/(Received)			Net  Exposure(4)
Global/Master Repurchase Agreement
BOS	$	0	$	(17,683	)	$	0	$	(17,683	)	$	17,710		$	27
BPS		20,804		0			0		20,804			(21,276	)		(472	)
BSN		7,801		0			0		7,801			(7,979	)		(178	)
FICC		519		0			0		519			(531	)		(12	)
GRE		0		(6,510	)		0		(6,510	)		6,505			(5	)
SAL		10,402		0			0		10,402			(10,649	)		(247	)
SCX		0		(3,513	)		0		(3,513	)		3,522			9
SSB		420		0			0		420			(432	)		(12	)
Total Borrowings and Other Financing Transactions	$	39,946	$	(27,706	)	$	0

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 19

Consolidated Schedule of Investments PIMCO Global Multi-Asset Managed Allocation Portfolio (Cont.)

CERTAIN TRANSFERS ACCOUNTED FOR AS SECURED BORROWINGS

Remaining Contractual Maturity of the Agreements

	Overnight and Continuous		Up to 30 days			31-90 days		Greater Than 90 days		Total
Reverse Repurchase Agreements
U.S. Treasury Obligations	$	0	$	(27,706	)	$	0	$	0	$	(27,706	)
Total Borrowings	$	0	$	(27,706	)	$	0	$	0	$	(27,706	)
Payable for reverse repurchase agreements										$	(27,706	)

(k) Securities with an aggregate market value of $4,798 have been pledged as collateral as of December 31, 2018 for equity short sales and equity options as governed by prime brokerage agreements and agreements governing listed equity option transactions.

(l) Securities with an aggregate market value of $28,407 have been pledged as collateral under the terms of the above master agreements as of December 31, 2018.

⁽¹⁾ Includes accrued interest.

⁽²⁾ Collateral is held in custody by the counterparty.

⁽³⁾ The average amount of borrowings outstanding during the period ended December 31, 2018 was $(15,288) at a weighted average interest rate of 1.631%. Average borrowings may include sale-buyback transactions and reverse repurchase agreements, if held during the period.

⁽⁴⁾ Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from borrowings and other financing transactions can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information regarding master netting arrangements.

(m)  FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED

PURCHASED OPTIONS:

OPTIONS ON EXCHANGE-TRADED FUTURES CONTRACTS

Description	Strike Price		Expiration Date		# of Contracts		Notional Amount		Cost		Market Value
Put - CBOT U.S. Treasury 10-Year Note March 2019 Futures	$	106.000		02/22/2019		65	$	65	$	1	$	0
Put - CBOT U.S. Treasury 10-Year Note March 2019 Futures		108.000		02/22/2019		760		760		6		1
Call - CBOT U.S. Treasury 30-Year Bond March 2019 Futures		171.000		02/22/2019		359		359		3		5
Call - CBOT U.S. Treasury 5-Year Note March 2019 Futures		120.000		02/22/2019		429		429		4		6
									$	14	$	12

OPTIONS ON INDICES

Description	Strike Value		Expiration Date		# of Contracts		Notional Amount		Cost		Market Value
Call - CBOE S&P 500	$	2,525.000		01/04/2019		24	$	2	$	47	$	48
Call - CBOE S&P 500		2,600.000		01/18/2019		24		2		47		34
Put - CBOE S&P 500		2,700.000		03/15/2019		50		5		488		1,046
Put - CBOE S&P 500		2,750.000		06/21/2019		49		5		615		1,334
Put - CBOE S&P 500		2,800.000		09/20/2019		45		5		495		1,469
									$	1,692	$	3,931
Total Purchased Options									$	1,706	$	3,943

WRITTEN OPTIONS:

COMMODITY OPTIONS

Description	Strike Price		Expiration Date		# of Contracts		Notional Amount		Premiums (Received)			Market Value
Call - NYMEX Crude April 2019 Futures	$	54.000		03/15/2019		12	$	12	$	(15	)	$	(16	)
Call - NYMEX Crude February 2019 Futures		63.000		01/16/2019		12		12		(14	)		0
Call - NYMEX Crude February 2019 Futures		65.000		01/16/2019		24		24		(25	)		0
Call - NYMEX Crude February 2019 Futures		67.000		01/16/2019		12		12		(15	)		0
Call - NYMEX Crude March 2019 Futures		55.000		02/14/2019		12		12		(13	)		(8	)
Call - NYMEX Crude March 2019 Futures		58.000		02/14/2019		12		12		(14	)		(4	)
Call - NYMEX Crude March 2019 Futures		58.500		02/14/2019		12		12		(13	)		(4	)
Call - NYMEX Crude March 2019 Futures		59.000		02/14/2019		12		12		(13	)		(4	)
Put - NYMEX Natural Gas March 2019 Futures		2.850		02/25/2019		24		240		(31	)		(54	)
Put - NYMEX Natural Gas March 2019 Futures		2.900		02/25/2019		48		480		(68	)		(123	)
									$	(221	)	$	(213	)

20 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

OPTIONS ON EXCHANGE-TRADED FUTURES CONTRACTS

Description	Strike Price		Expiration Date		# of Contracts		Notional Amount		Premiums (Received)			Market Value
Call - CBOT U.S. Treasury 10-Year Note February 2019 Futures	$	122.000		01/25/2019		22	$	22	$	(10	)	$	(10	)
Call - CBOT U.S. Treasury 10-Year Note February 2019 Futures		122.250		01/25/2019		34		34		(13	)		(13	)
Call - CBOT U.S. Treasury 10-Year Note March 2019 Futures		122.500		02/22/2019		45		45		(19	)		(19	)
Put - CBOT U.S. Treasury 30-Year Bond February 2019 Futures		141.000		01/25/2019		30		30		(22	)		(3	)
Call - CBOT U.S. Treasury 30-Year Bond March 2019 Futures		148.000		02/22/2019		22		22		(17	)		(17	)
Call - CBOT U.S. Treasury 5-Year Note February 2019 Futures		113.500		01/25/2019		90		90		(32	)		(102	)
									$	(113	)	$	(164	)

OPTIONS ON INDICES

Description	Strike Value		Expiration Date		# of Contracts		Notional Amount		Premiums (Received)			Market Value
Call - CBOE S&P 500	$	2,575.000		01/04/2019		24	$	2	$	(19	)	$	(11	)
Put - CBOE S&P 500		2,350.000		01/18/2019		24		2		(52	)		(30	)
Put - CBOE S&P 500		2,475.000		01/18/2019		23		2		(69	)		(87	)
Put - CBOE S&P 500		2,600.000		03/15/2019		50		5		(370	)		(701	)
Put - CBOE S&P 500		2,650.000		06/21/2019		49		5		(483	)		(1,010	)
Put - CBOE S&P 500		2,700.000		09/20/2019		45		5		(396	)		(1,167	)
									$	(1,389	)	$	(3,006	)
Total Written Options									$	(1,723	)	$	(3,383	)

FUTURES CONTRACTS:

LONG FUTURES CONTRACTS

Description	Expiration Month		# of Contracts		Notional Amount		Unrealized Appreciation/ (Depreciation)			Variation Margin
										Asset		Liability
90-Day Eurodollar December Futures		12/2019		3	$	730	$	(1	)	$	0	$	0
90-Day Eurodollar June Futures		06/2019		710		172,734		385			9		0
90-Day Eurodollar March Futures		03/2019		3		730		(3	)		0		0
90-Day Eurodollar September Futures		09/2019		3		730		(1	)		0		0
Brent Crude April Futures		02/2019		10		540		(42	)		6		0
Brent Crude July Futures		05/2019		16		876		(124	)		9		0
Brent Crude March Futures		01/2019		115		6,187		(298	)		68		0
Call Options Strike @ EUR 113.500 on Euro-Schatz March 2019 Futures		02/2019		170		1		0			0		0
Call Options Strike @ EUR 113.900 on Euro-Schatz March 2019 Futures		02/2019		175		1		0			0		0
Call Options Strike @ EUR 165.000 on Euro-OAT France Government 10-Year Bond March 2019 Futures		02/2019		279		3		0			0		0
Call Options Strike @ EUR 166.000 on Euro-OAT France Government 10-Year Bond March 2019 Futures		02/2019		6		0		0			0		0
Cocoa May Futures		05/2019		37		906		13			4		0
Copper May Futures		05/2019		21		1,384		(59	)		0		(26	)
Cotton No. 2 May Futures		05/2019		38		1,397		(107	)		0		0
E-mini NASDAQ 100 Index March Futures		03/2019		4		507		(12	)		8		0
E-mini S&P 500 Index March Futures		03/2019		1,308		163,840		(4,917	)		1,288		(2	)
Euro-Bund 10-Year Bond March Futures		03/2019		345		64,645		623			0		(75	)
FTSE 100 Index March Futures		03/2019		168		14,259		(70	)		334		(18	)
Gold 100 oz. February Futures		02/2019		21		2,691		129			0		(4	)
Hang Seng China Enterprises Index January Futures		01/2019		8		1,321		0			23		0
JPX Nikkei Index 400 March Futures		03/2019		1,613		19,499		(1,277	)		699		(44	)
Lead May Futures		05/2019		23		1,163		49			0		0
Mini MSCI EAFE Index March Futures		03/2019		151		12,956		(151	)		6		0
New York Harbor ULSD May Futures		04/2019		18		1,251		(238	)		12		0
Nickel May Futures		05/2019		8		515		(7	)		0		0
Nikkei 225 Yen-denominated March Futures		03/2019		7		633		(27	)		0		(6	)
Put Options Strike @ EUR 148.000 on Euro-Bund 10-Year Bond March 2019 Futures		02/2019		334		4		0			0		0
Put Options Strike @ EUR 151.500 on Euro-Bund 10-Year Bond March 2019 Futures		02/2019		11		0		0			0		0
S&P/Toronto Stock Exchange 60 March Futures		03/2019		72		9,043		(186	)		87		0
Topix Index Futures March Futures		03/2019		78		10,628		(651	)		402		(3	)
U.S. Treasury 10-Year Note March Futures		03/2019		449		54,785		600			175		0
WTI Crude April Futures		03/2019		3		138		1			0		0
WTI Crude February Futures		01/2019		3		136		(42	)		0		0
WTI Crude March Futures		02/2019		9		411		(49	)		1		0
Zinc May Futures		05/2019		19		1,168		(12	)		0		0
							$	(6,474	)	$	3,131	$	(178	)

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 21

Consolidated Schedule of Investments PIMCO Global Multi-Asset Managed Allocation Portfolio (Cont.)

SHORT FUTURES CONTRACTS

Description	Expiration Month		# of Contracts		Notional Amount			Unrealized Appreciation/ (Depreciation)			Variation Margin
											Asset		Liability
90-Day Eurodollar June Futures		06/2020		707	$	(172,340	)	$	(790	)	$	0	$	(44	)
Aluminum May Futures		05/2019		33		(1,530	)		81			0		0
Australia Government 10-Year Bond March Futures		03/2019		15		(1,402	)		(17	)		0		(7	)
Call Options Strike @ USD 65.000 on Brent Crude April 2019 Futures		02/2019		36		(27	)		23			0		0
Call Options Strike @ USD 66.500 on Brent Crude April 2019 Futures		02/2019		12		(7	)		8			0		0
Call Options Strike @ USD 68.000 on Brent Crude March 2019 Futures		01/2019		12		(2	)		17			1		0
Call Options Strike @ USD 69.000 on Brent Crude March 2019 Futures		01/2019		98		(14	)		91			4		0
Call Options Strike @ USD 73.000 on Brent Crude March 2019 Futures		01/2019		12		(1	)		15			0		0
Call Options Strike @ USD 74.000 on Brent Crude March 2019 Futures		01/2019		12		(1	)		15			0		0
Call Options Strike @ USD 77.000 on Brent Crude March 2019 Futures		01/2019		12		0			14			0		0
Corn May Futures		05/2019		74		(1,417	)		24			1		0
Euro STOXX 50 March Futures		03/2019		510		(17,378	)		563			0		(298	)
Euro-BTP Italy Government Bond March Futures		03/2019		124		(18,140	)		(369	)		0		(8	)
Euro-OAT France Government 10-Year Bond March Futures		03/2019		209		(36,111	)		(169	)		50		0
Euro-Schatz March Futures		03/2019		345		(44,248	)		(15	)		4		0
Gas Oil May Futures		05/2019		18		(922	)		(13	)		0		(27	)
Japan Government 10-Year Bond March Futures		03/2019		10		(13,912	)		(65	)		6		(14	)
Mini MSCI Emerging Markets Index March Futures		03/2019		53		(2,562	)		(16	)		9		0
Natural Gas March Futures		02/2019		29		(827	)		79			213		0
Platinum April Futures		04/2019		56		(2,242	)		(12	)		0		(12	)
Put Options Strike @ USD 54.000 on Brent Crude March 2019 Futures		01/2019		98		(304	)		(124	)		53		0
RBOB Gasoline May Futures		04/2019		4		(252	)		14			0		0
Silver March Futures		03/2019		4		(311	)		(23	)		0		(2	)
Soybean May Futures		05/2019		36		(1,634	)		7			1		0
SPI 200 Index March Futures		03/2019		7		(685	)		5			6		(7	)
Sugar No. 11 May Futures		04/2019		79		(1,071	)		73			30		0
U.S. Treasury 2-Year Note March Futures		03/2019		1		(212	)		(2	)		0		0
U.S. Treasury 5-Year Note March Futures		03/2019		339		(38,879	)		(337	)		0		(85	)
U.S. Treasury 10-Year Ultra March Futures		03/2019		16		(2,081	)		(33	)		0		(7	)
U.S. Treasury 30-Year Bond March Futures		03/2019		335		(48,910	)		(1,985	)		0		(163	)
U.S. Treasury Ultra Long-Term Bond March Futures		03/2019		5		(803	)		(3	)		0		(3	)
United Kingdom Long Gilt March Futures		03/2019		292		(45,842	)		(418	)		48		(149	)
Wheat May Futures		05/2019		46		(1,174	)		26			19		0
WTI Crude May Futures		04/2019		6		(279	)		(10	)		0		(1	)
								$	(3,346	)	$	445	$	(827	)
Total Futures Contracts								$	(9,820	)	$	3,576	$	(1,005	)

SWAP AGREEMENTS:

CREDIT DEFAULT SWAPS ON CORPORATE ISSUES - BUY PROTECTION⁽¹⁾

Reference Entity	Fixed (Pay) Rate	Payment Frequency	Maturity Date		Implied Credit Spread at December 31, 2018(3)			Notional Amount(4)		Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)		Market Value(5)			Variation Margin
																		Asset		Liability
Altria Group, Inc.	(1.000)%	Quarterly		06/20/2021		0.389	%	$	800	$	(24	)	$	12	$	(12	)	$	0	$	0
Boston Scientific Corp.	(1.000)	Quarterly		06/20/2020		0.165			1,200		(31	)		16		(15	)		0		0
Cigna Corp.	(1.000)	Quarterly		03/20/2021		0.178			200		(6	)		2		(4	)		0		0
Kraft Heinz Foods Co.	(1.000)	Quarterly		09/20/2020		0.306			600		(14	)		7		(7	)		1		0
										$	(75	)	$	37	$	(38	)	$	1	$	0

CREDIT DEFAULT SWAPS ON CORPORATE ISSUES - SELL PROTECTION⁽²⁾

Reference Entity	Fixed Receive Rate	Payment Frequency	Maturity Date		Implied Credit Spread at December 31, 2018(3)			Notional Amount(4)		Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Market Value(5)			Variation Margin
																			Asset		Liability
Daimler AG	1.000%	Quarterly		12/20/2020		0.442	%	EUR	480	$	8		$	(2	)	$	6		$	0	$	0
Deutsche Bank AG	1.000	Quarterly		06/20/2019		1.146			800		(2	)		2			0			0		0
Deutsche Bank AG	1.000	Quarterly		12/20/2019		1.450			200		(2	)		1			(1	)		0		0
										$	4		$	1		$	5		$	0	$	0

22 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

CREDIT DEFAULT SWAPS ON CREDIT INDICES - BUY PROTECTION⁽¹⁾

Index/Tranches	Fixed (Pay) Rate	Payment Frequency	Maturity Date	Notional Amount(4)			Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Market Value(5)			Variation Margin
																Asset		Liability
CDX.HY-31 5-Year Index	(5.000)%	Quarterly	12/20/2023		$	30,400	$	(1,465	)	$	793		$	(672	)	$	0	$	(48	)
CDX.IG-31 5-Year Index	(1.000)	Quarterly	12/20/2023			71,300		(273	)		(154	)		(427	)		0		(28	)
iTraxx Europe Main 26 5-Year Index	(1.000)	Quarterly	12/20/2021		EUR	12,800		(201	)		(31	)		(232	)		0		(20	)
iTraxx Europe Main 28 5-Year Index	(1.000)	Quarterly	12/20/2022			35,500		(982	)		441			(541	)		0		(69	)
							$	(2,921	)	$	1,049		$	(1,872	)	$	0	$	(165	)

CREDIT DEFAULT SWAPS ON CREDIT INDICES - SELL PROTECTION⁽²⁾

Index/Tranches	Fixed Receive Rate		Payment Frequency	Maturity Date	Notional Amount(4)		Premiums Paid/(Received)		Unrealized Appreciation/ (Depreciation)			Market Value(5)		Variation Margin
														Asset		Liability
CDX.IG-30 5-Year Index		1.000%	Quarterly	06/20/2023	$	10,400	$	203	$	(115	)	$	88	$	4	$	0

INTEREST RATE SWAPS

Pay/Receive Floating Rate	Floating Rate Index	Fixed Rate			Payment Frequency	Maturity Date		Notional Amount		Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Market Value			Variation Margin
																			Asset		Liability
Receive	1-Day USD-Federal Funds Rate Compounded-OIS		2.000	%	Annual		12/15/2047	$	5,390	$	12		$	581		$	593		$	0	$	(13	)
Receive	1-Day USD-Federal Funds Rate Compounded-OIS		2.499		Annual		12/20/2047		1,700		4			8			12			0		(5	)
Receive	3-Month USD-LIBOR		1.750		Semi-Annual		06/20/2020		37,250		699			(163	)		536			1		0
Pay	3-Month USD-LIBOR		2.678		Semi-Annual		10/25/2023		1,800		0			9			9			4		0
Pay	3-Month USD-LIBOR		2.670		Semi-Annual		11/19/2023		8,000		0			35			35			16		0
Pay	3-Month USD-LIBOR		2.681		Semi-Annual		12/12/2023		8,000		0			36			36			16		0
Pay	3-Month USD-LIBOR		2.500		Semi-Annual		12/19/2023		12,600		14			(64	)		(50	)		24		0
Pay	3-Month USD-LIBOR		2.750		Semi-Annual		12/19/2023		23,600		(159	)		347			188			48		0
Receive	3-Month USD-LIBOR		1.750		Semi-Annual		12/21/2023		15,500		(326	)		930			604			0		(31	)
Pay	3-Month USD-LIBOR		2.750		Semi-Annual		12/19/2025		41,900		(96	)		414			318			125		0
Receive(6)	3-Month USD-LIBOR		2.500		Semi-Annual		02/22/2026		720		(2	)		6			4			0		(2	)
Receive(6)	3-Month USD-LIBOR		2.400		Semi-Annual		03/16/2026		8,600		(32	)		120			88			0		(25	)
Receive(6)	3-Month USD-LIBOR		2.000		Semi-Annual		07/27/2026		13,900		405			0			405			0		(39	)
Receive(6)	3-Month USD-LIBOR		2.400		Semi-Annual		12/07/2026		15,300		173			24			197			0		(43	)
Receive	3-Month USD-LIBOR		1.750		Semi-Annual		12/21/2026		14,660		830			131			961			0		(47	)
Receive(6)	3-Month USD-LIBOR		3.100		Semi-Annual		04/17/2028		29,180		(88	)		(241	)		(329	)		0		(61	)
Receive	3-Month USD-LIBOR		2.250		Semi-Annual		06/20/2028		11,600		759			(320	)		439			0		(43	)
Receive(6)	3-Month USD-LIBOR		3.134		Semi-Annual		09/13/2028		27,900		0			(310	)		(310	)		0		(55	)
Pay	3-Month USD-LIBOR		2.500		Semi-Annual		06/20/2048		5,120		(515	)		130			(385	)		28		0
Receive(6)	6-Month EUR-EURIBOR		0.500		Annual		03/20/2024	EUR	27,500		(59	)		(345	)		(404	)		0		(22	)
Receive(6)	6-Month EUR-EURIBOR		1.500		Annual		03/20/2049		3,050		73			(171	)		(98	)		0		(3	)
Receive(6)	6-Month GBP-LIBOR		1.000		Semi-Annual		03/20/2021	GBP	37,500		246			(68	)		178			0		(1	)
Receive(6)	6-Month GBP-LIBOR		1.500		Semi-Annual		03/20/2024		3,900		(3	)		(41	)		(44	)		0		(7	)
Receive(6)	6-Month GBP-LIBOR		1.500		Semi-Annual		03/20/2029		11,720		189			(268	)		(79	)		0		(56	)
Receive(6)	6-Month GBP-LIBOR		1.750		Semi-Annual		03/20/2049		6,190		(160	)		(247	)		(407	)		0		(69	)
Receive	6-Month JPY-LIBOR		1.000		Semi-Annual		03/20/2024	JPY	2,280,000		(857	)		(260	)		(1,117	)		0		(1	)
Pay	6-Month JPY-LIBOR		0.380		Semi-Annual		06/18/2028		62,000		6			6			12			0		0
Pay	28-Day MXN-TIIE		9.182		Lunar		11/28/2028	MXN	77,300		0			96			96			24		0
Pay	CPTFEMU		1.165		Maturity		12/15/2021	EUR	180		0			1			1			0		0
Pay	CPTFEMU		1.507		Maturity		05/15/2023		1,393		1			(26	)		(25	)		0		(2	)
Receive	CPTFEMU		1.535		Maturity		03/15/2028		970		0			23			23			2		0
Pay	CPTFEMU		1.710		Maturity		03/15/2033		1,200		(2	)		(45	)		(47	)		0		(4	)
Receive	CPTFEMU		1.946		Maturity		03/15/2048		3,850		46			184			230			23		0
Pay	CPURNSA		2.070		Maturity		03/23/2019	$	1,000		0			(6	)		(6	)		0		0
Pay	CPURNSA		2.168		Maturity		07/15/2020		2,270		0			(24	)		(24	)		2		0
Pay	CPURNSA		2.027		Maturity		11/23/2020		6,400		0			(44	)		(44	)		0		0
Pay	CPURNSA		2.021		Maturity		11/25/2020		6,100		0			(41	)		(41	)		1		0
Pay	CPURNSA		1.550		Maturity		07/26/2021		2,200		74			(36	)		38			1		0
Pay	CPURNSA		1.603		Maturity		09/12/2021		1,700		51			(29	)		22			0		0
Pay	CPURNSA		1.955		Maturity		07/25/2024		12,100		0			(12	)		(12	)		0		(6	)
Receive	CPURNSA		1.730		Maturity		07/26/2026		2,200		(118	)		67			(51	)		2		0
Receive	CPURNSA		1.801		Maturity		09/12/2026		1,700		(79	)		53			(26	)		2		0
Receive	CPURNSA		1.780		Maturity		09/15/2026		8,000		(388	)		248			(140	)		10		0
Receive	CPURNSA		2.102		Maturity		07/20/2027		7,700		0			88			88			11		0
Receive	CPURNSA		2.122		Maturity		08/01/2027		5,800		0			75			75			9		0
Receive	CPURNSA		2.180		Maturity		09/20/2027		2,540		0			42			42			4		0
Receive	CPURNSA		2.150		Maturity		09/25/2027		2,500		0			34			34			4		0

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 23

Consolidated Schedule of Investments PIMCO Global Multi-Asset Managed Allocation Portfolio (Cont.)

Pay/Receive Floating Rate	Floating Rate Index	Fixed Rate			Payment Frequency		Maturity Date		Notional Amount		Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Market Value			Variation Margin
																				Asset		Liability
Receive	CPURNSA		2.155	%		Maturity		10/17/2027	$	2,800	$	0		$	40		$	40		$	5	$	0
Receive	CPURNSA		2.379			Maturity		07/09/2028		14,600		(8	)		615			607			24		0
Pay	FRCPXTOB		1.000			Maturity		04/15/2020	EUR	310		0			(1	)		(1	)		0		0
Pay	FRCPXTOB		1.160			Maturity		08/15/2020		9,480		7			(116	)		(109	)		0		(5	)
Receive	FRCPXTOB		1.575			Maturity		01/15/2028		8,740		0			346			346			25		0
Receive	FRCPXTOB		1.590			Maturity		02/15/2028		6,450		0			270			270			20		0
Receive	FRCPXTOB		1.606			Maturity		02/15/2028		1,090		0			48			48			3		0
Receive	FRCPXTOB		1.910			Maturity		01/15/2038		650		2			50			52			2		0
Receive	UKRPI		3.525			Maturity		09/15/2028	GBP	7,400		0			(21	)		(21	)		56		0
Receive	UKRPI		3.595			Maturity		11/15/2028		1,150		0			10			10			9		0
Receive	UKRPI		3.603			Maturity		11/15/2028		2,200		0			22			22			17		0
Receive	UKRPI		3.633			Maturity		12/15/2028		2,300		0			32			32			17		0
Receive	UKRPI		3.718			Maturity		12/15/2028		3,370		0			91			91			25		0
Receive	UKRPI		3.325			Maturity		08/15/2030		6,800		(30	)		(135	)		(165	)		60		0
Receive	UKRPI		3.530			Maturity		10/15/2031		2,370		37			(50	)		(13	)		25		0
Receive	UKRPI		3.470			Maturity		09/15/2032		600		(11	)		0			(11	)		7		0
Receive	UKRPI		3.579			Maturity		10/15/2033		3,000		0			30			30			38		0
Pay	UKRPI		3.428			Maturity		03/15/2047		3,280		246			(65	)		181			0		(94	)
											$	941		$	2,093		$	3,034		$	690	$	(634	)
Total Swap Agreements											$	(1,848	)	$	3,065		$	1,217		$	695	$	(799	)

FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED SUMMARY

The following is a summary of the market value and variation margin of Exchange-Traded or Centrally Cleared Financial Derivative Instruments as of December 31, 2018:

	Financial Derivative Assets								Financial Derivative Liabilities
	Market Value		Variation  Margin Asset(7)				Total		Market Value		Variation  Margin Liability(7)				Total
	Purchased Options		Futures		Swap Agreements				Written Options		Futures		Swap Agreements
Total Exchange-Traded or Centrally Cleared	$	3,943	$	3,651	$	695	$	8,289	$	(3,383)	$	(1,080)	$	(799)	$	(5,262)

(n) Securities with an aggregate market value of $20,727 and cash of $5,635 have been pledged as collateral for exchange-traded and centrally cleared financial derivative instruments as of December 31, 2018.

⁽¹⁾ If the Portfolio is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽²⁾ If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽³⁾ Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on issues as of period end serve as indicators of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

⁽⁴⁾ The maximum potential amount the Portfolio could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

⁽⁵⁾ The prices and resulting values for credit default swap agreements serve as indicators of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced indices’ credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

⁽⁶⁾ This instrument has a forward starting effective date. See Note 2, Securities Transactions and Investment Income, in the Notes to Financial Statements for further information.

⁽⁷⁾ Unsettled variation margin asset of $75 and liability of $(75) for closed futures is outstanding at period end.

(o)  FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER

FORWARD FOREIGN CURRENCY CONTRACTS:

Counterparty	Settlement Month		Currency to be Delivered		Currency to be Received		Unrealized Appreciation/ (Depreciation)
							Asset		Liability
BOA		01/2019	ARS	47,651	$	1,171	$	0	$	(72	)
		01/2019	GBP	1,340		1,715		6		0
		01/2019	SEK	3,350		372		0		(6	)

24 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

Counterparty	Settlement Month		Currency to be Delivered		Currency to be Received		Unrealized Appreciation/ (Depreciation)
							Asset		Liability
		01/2019	$	1,445	SEK	13,080	$	32	$	0
		02/2019	CAD	540	$	397		1		0
		02/2019	JPY	215,000		1,950		0		(18	)
		02/2019	$	675	JPY	75,700		18		0
BPS		01/2019	BRL	31,824	$	8,464		281		(27	)
		01/2019	CLP	446,499		668		25		0
		01/2019	PEN	7,364		2,201		16		0
		01/2019	RUB	41,295		596		5		0
		01/2019	$	7,574	BRL	29,349		0		(2	)
		01/2019		648	PHP	34,450		8		0
		01/2019		656	ZAR	9,043		0		(28	)
		03/2019	TRY	6,270	$	1,099		0		(41	)
		03/2019	TWD	108,873		3,559		0		(25	)
BRC		01/2019	MXN	26,840		1,318		0		(47	)
		01/2019	$	1,231	ARS	47,651		11		0
		01/2019		2,879	MXN	58,733		107		0
		01/2019		658	PHP	34,796		4		0
		01/2019		656	ZAR	9,433		0		(2	)
		02/2019	JPY	208,100	$	1,884		0		(21	)
		02/2019	$	1,562	EUR	1,364		7		0
		02/2019		690	JPY	76,200		7		0
		04/2019	ARS	53,056	$	1,231		0		(1	)
CBK		01/2019	BRL	6,634		1,745		33		0
		01/2019	CAD	200		151		4		0
		01/2019	DKK	3,325		520		9		0
		01/2019	GBP	4,238		5,401		0		(3	)
		01/2019	NZD	331		229		7		0
		01/2019	$	1,712	BRL	6,634		0		0
		01/2019		863	DKK	5,649		4		0
		02/2019	CLP	505,749	$	750		20		0
		02/2019	CZK	3,286		144		0		(3	)
		02/2019	JPY	690,000		6,118		0		(191	)
		02/2019	$	8,876	CAD	11,728		0		(276	)
		02/2019		7,634	CHF	7,617		146		0
		02/2019		1,188	EUR	1,037		5		(1	)
		02/2019		22,064	JPY	2,496,798		786		0
		03/2019		530	INR	37,747		8		0
		04/2019	DKK	5,649	$	869		0		(4	)
		04/2019	$	3,497	CNH	24,138		17		0
DUB		01/2019	BRL	11,466	$	2,957		8		(8	)
		01/2019	RUB	41,125		615		25		0
		01/2019	$	1,667	BRL	6,450		0		(2	)
		02/2019	BRL	6,450	$	1,663		2		0
		03/2019	$	494	IDR	7,259,131		5		0
GLM		01/2019	BRL	11,352	$	2,924		1		(5	)
		01/2019	CAD	1,200		907		28		0
		01/2019	CLP	873,317		1,269		13		(2	)
		01/2019	DKK	2,325		365		8		0
		01/2019	$	229	ARS	9,083		5		0
		01/2019		2,296	BRL	8,866		1		(9	)
		01/2019		728	GBP	575		5		0
		01/2019		656	MXN	13,104		9		0
		01/2019		1,465	RUB	100,297		0		(30	)
		02/2019		451	EUR	395		4		0
		03/2019	KRW	5,346,242	$	4,758		0		(56	)
		04/2019	BRL	1,880		481		0		(1	)
HUS		01/2019	CLP	439,155		638		5		0
		01/2019	PLN	879		236		1		0
		01/2019	$	23	ARS	921		1		0
		01/2019		656	INR	47,645		29		0
		01/2019		721	NZD	1,050		0		(16	)
		01/2019		2,353	TRY	12,820		52		0
		01/2019		626	ZAR	9,165		9		0
		02/2019	JPY	690,000	$	6,142		0		(167	)
		02/2019	$	18	ARS	747		0		0
		03/2019	THB	16,008	$	486		0		(6	)
		03/2019	$	1,464	HKD	11,420		0		(2	)
		03/2019		1,544	IDR	22,734,623		18		0

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 25

Consolidated Schedule of Investments PIMCO Global Multi-Asset Managed Allocation Portfolio (Cont.)

Counterparty	Settlement Month		Currency to be Delivered		Currency to be Received		Unrealized Appreciation/ (Depreciation)
							Asset		Liability
IND		01/2019	BRL	845	$	218	$	0	$	0
		01/2019	$	217	BRL	845		1		0
JPM		01/2019	AUD	3,694	$	2,728		125		0
		01/2019	BRL	28,024		7,546		315		0
		01/2019	RUB	82,302		1,230		50		0
		01/2019	$	332	ARS	12,882		7		0
		01/2019		7,182	BRL	28,024		49		0
		02/2019	JPY	189,400	$	1,689		0		(44	)
		02/2019	$	1,539	COP	4,924,640		0		(26	)
		02/2019	ZAR	12,449	$	844		0		(18	)
MSB		01/2019	BRL	20,880		5,383		1		(5	)
		01/2019	$	5,433	BRL	20,880		24		(70	)
		02/2019	RUB	188,548	$	2,827		135		0
		02/2019	$	473	BRL	1,858		5		0
MYI		01/2019	CAD	1,800	$	1,359		40		0
		02/2019	CHF	311		315		0		(2	)
RBC		02/2019	CAD	512		383		7		0
RYL		02/2019	CHF	1,072		1,087		0		(7	)
SCX		01/2019	BRL	12,000		3,216		120		0
		01/2019	CAD	6,100		4,622		154		0
		01/2019	$	3,073	BRL	12,000		23		0
SOG		01/2019		660	PHP	34,873		4		0
		02/2019		1,121	ZAR	16,095		0		(7	)
		03/2019	INR	109,148	$	1,544		0		(12	)
		04/2019	CNH	29,150		4,161		0		(82	)
SSB		02/2019	EUR	5,305		6,012		0		(88	)
		03/2019	HKD	22,950		2,943		6		0
		03/2019	MYR	538		129		0		(2	)
Total Forward Foreign Currency Contracts							$	2,862	$	(1,435	)

PURCHASED OPTIONS:

CREDIT DEFAULT SWAPTIONS ON CREDIT INDICES

Counterparty	Description	Buy/Sell Protection	Exercise Rate			Expiration Date		Notional Amount		Cost		Market Value
BPS	Put - OTC CDX.IG-31 5-Year Index	Buy		1.800	%		02/20/2019	$	7,700	$	1	$	1
FBF	Put - OTC CDX.IG-31 5-Year Index	Buy		1.600			01/16/2019		67,700		7		0
	Put - OTC CDX.IG-31 5-Year Index	Buy		1.600			02/20/2019		20,300		4		3
										$	12	$	4

INTEREST RATE SWAPTIONS

Counterparty	Description	Floating Rate Index	Pay/Receive Floating Rate	Exercise Rate			Expiration Date		Notional Amount		Cost		Market Value
JPM	Put - OTC 10-Year Interest Rate Swap	3-Month USD-LIBOR	Receive		5.500	%		08/24/2021		$    53,400	$	2,114	$	95
MYC	Put - OTC 10-Year Interest Rate Swap	3-Month USD-LIBOR	Receive		5.500			08/24/2021		42,550		1,811		76
											$	3,925	$	171

OPTIONS ON SECURITIES

Counterparty	Description	Strike Price		Expiration Date		Notional Amount			Cost		Market Value
FAR	Call - OTC Fannie Mae, TBA 3.000% due 02/01/2049	$	108.500		02/06/2019		$	31,700	$	1	$	0
	Put - OTC Fannie Mae, TBA 3.500% due 01/01/2049		72.000		01/07/2019			30,500		1		0
JPM	Put - OTC Fannie Mae, TBA 3.500% due 01/01/2049		69.000		01/07/2019			76,000		3		0
	Put - OTC Fannie Mae, TBA 4.000% due 01/01/2049		70.000		01/07/2019			106,000		4		0
SAL	Put - OTC Fannie Mae, TBA 3.500% due 01/01/2049		67.000		01/07/2019			85,400		3		0
	Put - OTC Fannie Mae, TBA 4.000% due 12/01/2049		70.000		01/07/2019			38,500		2		0
									$	14	$	0
Total Purchased Options									$	3,951	$	175

26 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

WRITTEN OPTIONS:

CREDIT DEFAULT SWAPTIONS ON CREDIT INDICES

Counterparty	Description	Buy/Sell Protection	Exercise Rate	Expiration Date		Notional Amount		Premiums (Received)			Market Value
BOA	Put - OTC CDX.IG-31 5-Year Index	Sell	0.850%		01/16/2019	$	3,200	$	(5	)	$	(9	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	0.900		01/16/2019		5,800		(8	)		(9	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	0.950		02/20/2019		3,000		(6	)		(8	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.000		02/20/2019		4,100		(9	)		(9	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.100		02/20/2019		1,600		(2	)		(2	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.000		03/20/2019		3,100		(6	)		(10	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.200		03/20/2019		4,500		(5	)		(8	)
BPS	Put - OTC CDX.IG-31 5-Year Index	Sell	1.000		02/20/2019		2,600		(3	)		(6	)
BRC	Put - OTC CDX.IG-31 5-Year Index	Sell	1.000		01/16/2019		2,600		(2	)		(2	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.050		02/20/2019		2,400		(4	)		(4	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.100		03/20/2019		1,400		(3	)		(3	)
CBK	Put - OTC CDX.IG-31 5-Year Index	Sell	0.950		01/16/2019		2,600		(3	)		(2	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.000		01/16/2019		11,900		(10	)		(7	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	0.950		02/20/2019		5,200		(10	)		(16	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.050		02/20/2019		1,900		(3	)		(3	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.100		02/20/2019		1,500		(1	)		(2	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.050		03/20/2019		2,900		(5	)		(8	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.100		03/20/2019		2,600		(6	)		(6	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.200		03/20/2019		3,200		(4	)		(5	)
GST	Put - OTC CDX.IG-31 5-Year Index	Sell	0.900		01/16/2019		4,800		(5	)		(8	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.100		02/20/2019		1,600		(1	)		(2	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	2.400		09/18/2019		3,000		(5	)		(6	)
	Put - OTC iTraxx Europe 30 5-Year Index	Sell	2.400		09/18/2019	EUR	1,000		(2	)		(2	)
JPM	Put - OTC CDX.IG-31 5-Year Index	Sell	0.950		02/20/2019	$	2,700		(5	)		(7	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.200		03/20/2019		2,300		(4	)		(4	)
MYC	Put - OTC CDX.IG-31 5-Year Index	Sell	0.900		01/16/2019		2,600		(4	)		(4	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.100		02/20/2019		3,000		(3	)		(4	)
								$	(124	)	$	(156	)

FOREIGN CURRENCY OPTIONS

Counterparty	Description	Strike Price			Expiration Date		Notional Amount			Premiums (Received)			Market Value
GLM	Put - OTC USD versus BRL		BRL	3.680		02/28/2019		$	6,172	$	(54	)	$	(28	)
HUS	Put - OTC EUR versus USD		$	1.100		02/13/2019		EUR	3,033		(18	)		(2	)
										$	(72	)	$	(30	)

INFLATION-CAPPED OPTIONS

Counterparty	Description	Initial Index		Floating Rate	Expiration Date(1)		Notional Amount			Premiums (Received)			Market Value
GLM	Cap - OTC CPALEMU		100.151	Maximum of [(Final Index/Initial Index - 1) - 3.000%] or 0		06/22/2035		EUR	5,600	$	(255	)	$	(21	)
JPM	Cap - OTC CPURNSA		234.781	Maximum of [(Final Index/Initial Index - 1) - 4.000%] or 0		05/16/2024		$	1,100		(7	)		0
	Cap - OTC YOY CPURNSA		233.707	Maximum of [(3 + 0.000%) - (Final Index/Initial Index)] or 0		04/10/2020			7,800		(21	)		39
	Floor - OTC YOY CPURNSA		233.707	Maximum of [0.000% - (Final Index/Initial Index - 1)] or 0		04/10/2020			7,800		(21	)		37
	Floor - OTC YOY CPURNSA		234.812	Maximum of [0.000% - (Final Index/Initial Index - 1)] or 0		03/24/2020			10,700		(121	)		(5	)
	Floor - OTC YOY CPURNSA		238.654	Maximum of [0.000% - (Final Index/Initial Index - 1)] or 0		10/02/2020			4,500		(83	)		(4	)
										$	(508	)	$	46

INTEREST RATE-CAPPED OPTIONS

Counterparty

Description

Exercise Rate

Floating Rate Index

Expiration Date

Notional Amount

Premiums (Received)

Market Value

MYC

Call - OTC 1-Year Interest Rate  Floor

0.000%

10-Year USD-ISDA  -2-Year USD-ISDA

01/02/2020

$

112,400

$    (87

)

$    (55

)

OPTIONS ON EQUITY REPURHCASE AGREEMENTS

Counterparty	Description	Expiration Date	Notional Amount		Premiums (Received)			Market Value
FOB	Call - OTC Repurchase Agreement on Russell 3000 Equity Securities/ETFs(2) «	04/30/2019	$	22,500	$	(22	)	$	(22	)
Total Written Options					$	(813	)	$	(217	)

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 27

Consolidated Schedule of Investments PIMCO Global Multi-Asset Managed Allocation Portfolio (Cont.)

SWAP AGREEMENTS:

COMMODITY FORWARD SWAPS

Counterparty	Pay/Receive	Underlying Reference Commodity	Fixed Price Per Unit			Payment Frequency		Maturity Date	# of Units		Premiums Paid/(Received)		Unrealized Appreciation/ (Depreciation)			Swap Agreements, at Value
																Asset		Liability
BPS	Receive	EURMARGIN 4Q19	$	6.080			Maturity	12/31/2019		4,200	$	0	$	(6	)	$	0	$	(6	)
GST	Receive	PLATGOLD N9		(411.500	)		Maturity	07/08/2019		5,800		0		(447	)		0		(447	)
MYC	Receive	EURMARGIN 4Q19		6.000			Maturity	12/31/2019		300		0		0			0		0
											$	0	$	(453	)	$	0	$	(453	)

CREDIT DEFAULT SWAPS ON CREDIT INDICES - SELL PROTECTION⁽³⁾

Counterparty	Index/Tranches	Fixed Receive Rate			Payment Frequency		Maturity Date		Notional Amount(4)		Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)		Swap Agreements, at  Value(5)
																Asset		Liability
DUB	CMBX.NA.AAA.6 Index		0.500	%		Monthly		05/11/2063	$	2,534	$	(55	)	$	71	$	16	$	0
GST	CMBX.NA.AAA.10 Index		0.500			Monthly		11/17/2059		2,200		(65	)		41		0		(24	)
	CMBX.NA.AAA.7 Index		0.500			Monthly		01/17/2047		600		(20	)		23		3		0
	CMBX.NA.AAA.8 Index		0.500			Monthly		10/17/2057		7,900		(364	)		380		16		0
	CMBX.NA.AAA.9 Index		0.500			Monthly		09/17/2058		11,100		(685	)		644		0		(41	)
MEI	CMBX.NA.AAA.8 Index		0.500			Monthly		10/17/2057		11,100		(576	)		599		23		0
MYC	CMBX.NA.AAA.10 Index		0.500			Monthly		11/17/2059		9,600		(317	)		213		0		(104	)
UAG	CMBX.NA.AAA.10 Index		0.500			Monthly		11/17/2059		3,800		(110	)		69		0		(41	)
											$	(2,192	)	$	2,040	$	58	$	(210	)

INTEREST RATE SWAPS

Counterparty	Pay/Receive Floating Rate	Floating Rate Index	Fixed Rate	Payment Frequency	Maturity Date		Notional Amount			Premiums Paid/(Received)		Unrealized Appreciation/ (Depreciation)			Swap Agreements, at Value
															Asset		Liability
BRC	Receive	1-Year ILS-TELBOR	0.374%	Annual		06/20/2020		ILS	9,790	$	0	$	6		$	6	$	0
	Pay	1-Year ILS-TELBOR	1.950	Annual		06/20/2028			2,110		0		(4	)		0		(4	)
DUB	Pay	1-Year ILS-TELBOR	2.100	Annual		06/20/2028			2,000		0		3			3		0
GLM	Receive	1-Year ILS-TELBOR	0.290	Annual		02/16/2020			18,370		0		3			3		0
	Receive	1-Year ILS-TELBOR	0.270	Annual		03/21/2020			11,370		0		6			6		0
	Receive	1-Year ILS-TELBOR	0.370	Annual		06/20/2020			7,630		1		3			4		0
	Pay	1-Year ILS-TELBOR	1.971	Annual		02/16/2028			3,870		0		5			5		0
	Pay	1-Year ILS-TELBOR	1.883	Annual		03/21/2028			2,380		0		(4	)		0		(4	)
	Pay	1-Year ILS-TELBOR	1.998	Annual		06/20/2028			1,630		0		(1	)		0		(1	)
HUS	Receive	1-Year ILS-TELBOR	0.370	Annual		06/20/2020			6,000		0		4			4		0
	Pay	1-Year ILS-TELBOR	1.998	Annual		06/20/2028			1,280		0		(1	)		0		(1	)
JPM	Receive	1-Year ILS-TELBOR	0.420	Annual		06/20/2020			9,380		0		3			3		0
MYC	Pay	CPURNSA	1.800	Maturity		07/20/2026	$		2,600		0		(44	)		0		(44	)
	Pay	CPURNSA	1.805	Maturity		09/20/2026			18,400		0		(284	)		0		(284	)
										$	1	$	(305	)	$	34	$	(338	)

TOTAL RETURN SWAPS ON EQUITY INDICES

Counterparty	Pay/Receive(6)	Underlying Reference	# of Units		Financing Rate	Payment Frequency	Maturity Date	Notional Amount		Premiums Paid/(Received)		Unrealized Appreciation/ (Depreciation)			Swap Agreements, at Value
															Asset		Liability
BPS	Pay	DWRTFT Index		766	1-Month USD-LIBOR plus a specified spread	Monthly	04/24/2019	$	7,149	$	0	$	17		$	17	$	0
BRC	Pay	iBoxx USD Investment Grade Corporate Bond ETF		N/A	1-Month USD-LIBOR less a specified spread	Monthly	08/30/2019		4,231		0		8			8		0
FBF	Receive	Swiss Market Index		990	1-Month USD-LIBOR plus a specified spread	Maturity	03/15/2019	CHF	8,415		0		(191	)		0		(191	)
GST	Pay	DWRTFT Index		592	1-Month USD-LIBOR plus a specified spread	Monthly	02/21/2019	$	5,525		0		16			16		0
JPM	Receive	JP1BSFTN Index		85,711	1-Month USD-LIBOR plus a specified spread	Monthly	11/20/2019		5,784		0		(7	)		0		(7	)
MEI	Receive	NDUEEGF Index		9,381	3-Month USD-LIBOR plus a specified spread	Quarterly	06/20/2019		4,293		0		(124	)		0		(124	)
										$	0	$	(281	)	$	41	$	(322	)

28 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

TOTAL RETURN SWAPS ON SECURITIES

Counterparty	Pay/Receive(6)	Underlying Reference	# of Shares		Financing Rate	Payment Frequency		Maturity Date	Notional Amount		Premiums Paid/(Received)		Unrealized Appreciation/ (Depreciation)		Swap Agreements, at Value
															Asset		Liability
JPM	Pay	DWRTFT Index		150	1-Month USD-LIBOR plus a specified spread		Monthly	11/06/2019	$	1,400	$	0	$	0	$	0	$	0
											$	0	$	0	$	0	$	0

VOLATILITY SWAPS

Counterparty	Pay/Receive Volatility	Reference Entity	Volatility Strike			Payment Frequency		Maturity Date	Notional Amount		Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Swap Agreements, at Value
																	Asset		Liability
GST	Pay	GOLDLNPM Index(7)		7.023	%		Maturity	07/29/2020	$	6,226	$	0		$	305		$	305	$	0
JPM	Receive	GOLDLNPM Index(7)		3.861			Maturity	07/29/2020		5,598		0			(118	)		0		(118	)
	Receive	GOLDLNPM Index(7)		3.976			Maturity	07/29/2020		629		0			(14	)		0		(14	)
											$	0		$	173		$	305	$	(132	)
Total Swap Agreements											$	(2,191	)	$	1,174		$	438	$	(1,455	)

FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER SUMMARY

The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral pledged/(received) as of December 31, 2018:

	Financial Derivative Assets								Financial Derivative Liabilities
Counterparty	Forward Foreign Currency Contracts		Purchased Options		Swap Agreements		Total Over the Counter		Forward Foreign Currency Contracts			Written Options			Swap Agreements			Total Over the Counter			Net Market Value of OTC Derivatives			Collateral Pledged/ (Received)			Net Exposure(8)
BOA	$	57	$	0	$	0	$	57	$	(96	)	$	(55	)	$	0		$	(151	)	$	(94	)	$	0		$	(94	)
BPS		335		1		17		353		(123	)		(6	)		(6	)		(135	)		218			(925	)		(707	)
BRC		136		0		14		150		(71	)		(9	)		(4	)		(84	)		66			0			66
CBK		1,039		0		0		1,039		(478	)		(49	)		0			(527	)		512			(260	)		252
DUB		40		0		19		59		(10	)		0			0			(10	)		49			(40	)		9
FBF		0		3		0		3		0			0			(191	)		(191	)		(188	)		196			8
FOB		0		0		0		0		0			(22	)		0			(22	)		(22	)		0			(22	)
GLM		74		0		18		92		(103	)		(49	)		(5	)		(157	)		(65	)		(260	)		(325	)
GST		0		0		340		340		0			(18	)		(512	)		(530	)		(190	)		(300	)		(490	)
HUS		115		0		4		119		(191	)		(2	)		(1	)		(194	)		(75	)		0			(75	)
IND		1		0		0		1		0			0			0			0			1			0			1
JPM		546		95		3		644		(88	)		56			(139	)		(171	)		473			(410	)		63
MEI		0		0		23		23		0			0			(124	)		(124	)		(101	)		0			(101	)
MSB		165		0		0		165		(75	)		0			0			(75	)		90			0			90
MYC		0		76		0		76		0			(63	)		(432	)		(495	)		(419	)		372			(47	)
MYI		40		0		0		40		(2	)		0			0			(2	)		38			86			124
RBC		7		0		0		7		0			0			0			0			7			0			7
RYL		0		0		0		0		(7	)		0			0			(7	)		(7	)		0			(7	)
SCX		297		0		0		297		0			0			0			0			297			(220	)		77
SOG		4		0		0		4		(101	)		0			0			(101	)		(97	)		0			(97	)
SSB		6		0		0		6		(90	)		0			0			(90	)		(84	)		0			(84	)
UAG		0		0		0		0		0			0			(41	)		(41	)		(41	)		22			(19	)
Total Over the Counter	$	2,862	$	175	$	438	$	3,475	$	(1,435	)	$	(217	)	$	(1,455	)	$	(3,107	)

(p) Securities with an aggregate market value of $913 have been pledged as collateral for financial derivative instruments as governed by International Swaps and Derivatives Association, Inc. master agreements as of December 31, 2018.

⁽¹⁾ YOY options may have a series of expirations.

⁽²⁾ Option can be exercised at any time prior to the expiration date.

⁽³⁾ If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽⁴⁾ The maximum potential amount the Portfolio could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

⁽⁵⁾ The prices and resulting values for credit default swap agreements serve as indicators of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced indices’ credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 29

Consolidated Schedule of Investments PIMCO Global Multi-Asset Managed Allocation Portfolio (Cont.)

⁽⁶⁾ Receive represents that the Portfolio receives payments for any positive net return on the underlying reference. The Portfolio makes payments for any negative net return on such underlying reference. Pay represents that the Portfolio receives payments for any negative net return on the underlying reference. The Portfolio makes payments for any positive net return on such underlying reference.

⁽⁷⁾  Variance Swap

⁽⁸⁾ Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from OTC derivatives can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 7, Principal Risks, in the Notes to Financial Statements for more information regarding master netting agreements.

FAIR VALUE OF FINANCIAL DERIVATIVE INSTRUMENTS

The following is a summary of the fair valuation of the Portfolio’s derivative instruments categorized by risk exposure. See Note 7, Principal Risks, in the Notes to Financial Statements on risks of the Portfolio.

Fair Values of Financial Derivative Instruments on the Consolidated Statement of Assets and Liabilities as of December 31, 2018:

	Derivatives not accounted for as hedging instruments
	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Exchange Contracts		Interest Rate Contracts		Total
Financial Derivative Instruments - Assets
Exchange-traded or centrally cleared
Purchased Options	$	0	$	0	$	3,931	$	0	$	12	$	3,943
Futures		422		0		2,937		0		292		3,651
Swap Agreements		0		5		0		0		690		695
	$	422	$	5	$	6,868	$	0	$	994	$	8,289
Over the counter
Forward Foreign Currency Contracts	$	0	$	0	$	0	$	2,862	$	0	$	2,862
Purchased Options		0		4		0		0		171		175
Swap Agreements		305		58		41		0		34		438
	$	305	$	62	$	41	$	2,862	$	205	$	3,475
	$	727	$	67	$	6,909	$	2,862	$	1,199	$	11,764
Financial Derivative Instruments - Liabilities
Exchange-traded or centrally cleared
Written Options	$	213	$	0	$	3,006	$	0	$	164	$	3,383
Futures		72		0		453		0		555		1,080
Swap Agreements		0		165		0		0		634		799
	$	285	$	165	$	3,459	$	0	$	1,353	$	5,262
Over the counter
Forward Foreign Currency Contracts	$	0	$	0	$	0	$	1,435	$	0	$	1,435
Written Options		0		156		22		30		9		217
Swap Agreements		585		210		322		0		338		1,455
	$	585	$	366	$	344	$	1,465	$	347	$	3,107
	$	870	$	531	$	3,803	$	1,465	$	1,700	$	8,369

The effect of Financial Derivative Instruments on the Consolidated Statement of Operations for the period ended December 31, 2018:

	Derivatives not accounted for as hedging instruments
	Commodity Contracts			Credit Contracts			Equity Contracts			Foreign Exchange Contracts		Interest Rate Contracts			Total
Net Realized Gain (Loss) on Financial Derivative Instruments
Exchange-traded or centrally cleared
Purchased Options	$	(643	)	$	0		$	(465	)	$	0	$	62		$	(1,046	)
Written Options		1,204			0			682			0		877			2,763
Futures		585			0			(7,503	)		0		1,202			(5,716	)
Swap Agreements		0			(1,620	)		0			0		5,151			3,531
	$	1,146		$	(1,620	)	$	(7,286	)	$	0	$	7,292		$	(468	)
Over the counter
Forward Foreign Currency Contracts	$	0		$	0		$	0		$	1,672	$	0		$	1,672
Purchased Options		0			0			223			11		(1,090	)		(856	)
Written Options		0			268			885			166		369			1,688
Swap Agreements		(363	)		1,088			981			0		(104	)		1,602
	$	(363	)	$	1,356		$	2,089		$	1,849	$	(825	)	$	4,106
	$	783		$	(264	)	$	(5,197	)	$	1,849	$	6,467		$	3,638

30 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

	Derivatives not accounted for as hedging instruments
	Commodity Contracts			Credit Contracts			Equity Contracts			Foreign Exchange Contracts		Interest Rate Contracts			Total
Net Change in Unrealized Appreciation (Depreciation) on Financial Derivative Instruments
Exchange-traded or centrally cleared
Purchased Options	$	648		$	0		$	2,322		$	0	$	(27	)	$	2,943
Written Options		(569	)		0			(1,710	)		0		(144	)		(2,423	)
Futures		(854	)		0			(8,296	)		0		(2,486	)		(11,636	)
Swap Agreements		0			1,671			0			0		(295	)		1,376
	$	(775	)	$	1,671		$	(7,684	)	$	0	$	(2,952	)	$	(9,740	)
Over the counter
Forward Foreign Currency Contracts	$	0		$	0		$	0		$	2,501	$	0		$	2,501
Purchased Options		0			(7	)		213			0		934			1,140
Written Options		0			(32	)		(49	)		42		23			(16	)
Swap Agreements		9			(1,181	)		(364	)		0		582			(954	)
	$	9		$	(1,220	)	$	(200	)	$	2,543	$	1,539		$	2,671
	$	(766	)	$	451		$	(7,884	)	$	2,543	$	(1,413	)	$	(7,069	)

FAIR VALUE MEASUREMENTS

The following is a summary of the fair valuations according to the inputs used as of December 31, 2018 in valuing the Portfolio’s assets and liabilities:

Category and Subcategory	Level 1		Level 2		Level 3		Fair Value at 12/31/2018
Investments in Securities, at Value
Corporate Bonds & Notes
Banking & Finance	$	0	$	42,876	$	0	$	42,876
Industrials		0		19,023		0		19,023
Utilities		0		16,151		0		16,151
U.S. Government Agencies		0		292,047		0		292,047
U.S. Treasury Obligations		0		148,814		0		148,814
Non-Agency Mortgage-Backed Securities		0		4,944		0		4,944
Asset-Backed Securities		0		26,288		0		26,288
Sovereign Issues		0		34,299		0		34,299
Common Stocks
Communication Services		6,172		0		0		6,172
Consumer Discretionary		8,526		0		0		8,526
Consumer Staples		6,451		0		0		6,451
Energy		10,737		0		0		10,737
Financials		13,215		0		0		13,215
Health Care		10,412		0		0		10,412
Industrials		9,292		0		0		9,292
Information Technology		17,427		0		0		17,427
Materials		3,813		0		0		3,813
Real Estate		941		0		0		941
Utilities		2,668		0		0		2,668
Preferred Securities
Banking & Finance		0		2,450		0		2,450
Industrials		101		0		0		101
Exchange-Traded Funds		13,504		0		0		13,504
Real Estate Investment Trusts
Financials		698		0		0		698
Real Estate		11,834		0		0		11,834
Short-Term Instruments
Commercial Paper		0		6,811		0		6,811
Repurchase Agreements		0		39,939		0		39,939

Category and Subcategory	Level 1			Level 2			Level 3			Fair Value at 12/31/2018
Argentina Treasury Bills	$	0		$	1,634		$	0		$	1,634
Japan Treasury Bills		0			12,592			0			12,592
	$	115,791		$	647,868		$	0		$	763,659
Investments in Affiliates, at Value
Mutual Funds	$	107,478		$	0		$	0		$	107,478
Short-Term Instruments
Central Funds Used for Cash Management Purposes		11,777			0			0			11,777
	$	119,255		$	0		$	0		$	119,255
Total Investments	$	235,046		$	647,868		$	0		$	882,914
Short Sales, at Value - Liabilities
U.S. Government Agencies	$	0		$	(52,601	)	$	0		$	(52,601	)
Financial Derivative Instruments - Assets
Exchange-traded or centrally cleared		3,576			4,638			0			8,214
Over the counter		0			3,475			0			3,475
	$	3,576		$	8,113		$	0		$	11,689
Financial Derivative Instruments - Liabilities
Exchange-traded or centrally cleared		(1,267	)		(3,920	)		0			(5,187	)
Over the counter		0			(3,085	)		(22	)		(3,107	)
	$	(1,267	)	$	(7,005	)	$	(22	)	$	(8,294	)
Total Financial Derivative Instruments	$	2,309		$	1,108		$	(22	)	$	3,395
Totals	$	237,355		$	596,375		$	(22	)	$	833,708

There were no significant transfers into or out of Level 3 during the period ended December 31, 2018.

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 31

Notes to Financial Statements

1. ORGANIZATION

PIMCO Variable Insurance Trust (the “Trust”) is a Delaware statutory trust established under a trust instrument dated October 3, 1997. The Trust is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Trust is designed to be used as an investment vehicle by separate accounts of insurance companies that fund variable annuity contracts and variable life insurance policies and by qualified pension and retirement plans. Information presented in these financial statements pertains to the Institutional Class, Administrative Class and Advisor Class shares of the PIMCO Global Multi-Asset Managed Allocation Portfolio (the “Portfolio”) offered by the Trust. Pacific Investment Management Company LLC (“PIMCO”) serves as the investment adviser (the “Adviser”) for the Portfolio.

The Portfolio may invest in Institutional Class or Class M shares of any funds of the PIMCO Funds and PIMCO Equity Series, affiliated open-end investment companies, except funds of funds (“Underlying PIMCO Funds”), and may also invest in other affiliated funds, including funds of PIMCO ETF Trust, and unaffiliated funds, which may or may not be registered under the 1940 Act (collectively, “Acquired Funds”).

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Portfolio is treated as an investment company under the reporting requirements of U.S. GAAP. The functional and reporting currency for the Portfolio is the U.S. dollar. The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

(a) Securities Transactions and Investment Income  Securities transactions are recorded as of the trade date for financial reporting purposes. Securities purchased or sold on a when-issued or delayed-delivery basis may be settled beyond a standard settlement period for the security after the trade date. Realized gains (losses) from securities sold are recorded on the identified cost basis. Dividend income is recorded on the ex-dividend date, except certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Portfolio is informed of the ex-dividend date. Interest income, adjusted for the accretion of discounts and amortization of premiums, is recorded on the accrual basis from

settlement date, with the exception of securities with a forward starting effective date, where interest income is recorded on the accrual basis from effective date. For convertible securities, premiums attributable to the conversion feature are not amortized. Estimated tax liabilities on certain foreign securities are recorded on an accrual basis and are reflected as components of interest income or net change in unrealized appreciation (depreciation) on investments on the Consolidated Statement of Operations, as appropriate. Tax liabilities realized as a result of such security sales are reflected as a component of net realized gain (loss) on investments on the Consolidated Statement of Operations. Paydown gains (losses) on mortgage-related and other asset-backed securities, if any, are recorded as components of interest income on the Consolidated Statement of Operations. Income or short-term capital gain distributions received from registered investment companies, if any, are recorded as dividend income. Long-term capital gain distributions received from registered investment companies, if any, are recorded as realized gains.

Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivable when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is probable.

(b) Foreign Currency Translation  The market values of foreign securities, currency holdings and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the current exchange rates each business day. Purchases and sales of securities and income and expense items denominated in foreign currencies, if any, are translated into U.S. dollars at the exchange rate in effect on the transaction date. The Portfolio does not separately report the effects of changes in foreign exchange rates from changes in market prices on securities held. Such changes are included in net realized gain (loss) and net change in unrealized appreciation (depreciation) from investments on the Consolidated Statement of Operations. The Portfolio may invest directly or indirectly through investments in Underlying PIMCO Funds or Acquired Funds, as applicable, in foreign currency-denominated securities and may engage in foreign currency transactions either on a spot (cash) basis at the rate prevailing in the currency exchange market at the time or through a forward foreign currency contract. Realized foreign exchange gains (losses) arising from sales of spot foreign currencies, currency gains (losses) realized between the trade and settlement dates on securities transactions and the difference between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid are included in net realized gain (loss) on foreign currency transactions on the Consolidated Statement of Operations. Net unrealized foreign

32 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

exchange gains (losses) arising from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period are included in net change in unrealized appreciation (depreciation) on foreign currency assets and liabilities on the Consolidated Statement of Operations.

(c) Multi-Class Operations  Each class offered by the Trust has equal rights as to assets and voting privileges (except that shareholders of a class have exclusive voting rights regarding any matter relating solely to that class of shares). Income and non-class specific expenses are allocated daily to each class on the basis of the relative net assets. Realized and unrealized capital gains (losses) are allocated daily based on the relative net assets of each class of the Portfolio. Class specific expenses, where applicable, currently include supervisory and administrative and distribution and servicing fees. Under certain circumstances, the per share net asset value (“NAV”) of a class of the Portfolio’s shares may be different from the per share NAV of another class of shares as a result of the different daily expense accruals applicable to each class of shares.

(d) Distributions to Shareholders  Distributions from net investment income, if any, are declared and distributed to shareholders quarterly. Net realized capital gains earned by the Portfolio, if any, will be distributed no less frequently than once each year.

Income distributions and capital gain distributions are determined in accordance with income tax regulations which may differ from U.S. GAAP. Differences between tax regulations and U.S. GAAP may cause timing differences between income and capital gain recognition. Further, the character of investment income and capital gains may be different for certain transactions under the two methods of accounting. As a result, income distributions and capital gain distributions declared during a fiscal period may differ significantly from the net investment income (loss) and realized gains (losses) reported on the Portfolio’s annual financial statements presented under U.S. GAAP.

If the Portfolio estimates that a portion of its distribution may be comprised of amounts from sources other than net investment income in accordance with its policies and good accounting practices, the Portfolio will notify shareholders of the estimated composition of such distribution through a Section 19 Notice. For these purposes, the Portfolio estimates the source or sources from which a distribution is paid, to the close of the period as of which it is paid, in reference to its internal accounting records and related accounting practices. If, based on such accounting records and practices, it is estimated that a particular distribution does not include capital gains or paid-in surplus or other capital sources, a Section 19 Notice generally would not be issued. It is important to note that differences exist between the Portfolio’s daily internal accounting records and practices, the

Portfolio’s financial statements presented in accordance with U.S. GAAP, and recordkeeping practices under income tax regulations. For instance, the Portfolio’s internal accounting records and practices may take into account, among other factors, tax-related characteristics of certain sources of distributions that differ from treatment under U.S. GAAP. Examples of such differences may include, among others, the treatment of paydowns on mortgage-backed securities purchased at a discount and periodic payments under interest rate swap contracts. Accordingly, among other consequences, it is possible that the Portfolio may not issue a Section 19 Notice in situations where the Portfolio’s financial statements prepared later and in accordance with U.S. GAAP and/or the final tax character of those distributions might later report that the sources of those distributions included capital gains and/or a return of capital. Final determination of a distribution’s tax character will be provided to shareholders when such information is available.

Distributions classified as a tax basis return of capital, if any, are reflected on the Consolidated Statements of Changes in Net Assets and have been recorded to paid in capital on the Consolidated Statement of Assets and Liabilities. In addition, other amounts have been reclassified between distributable earnings (accumulated loss) and paid in capital on the Consolidated Statement of Assets and Liabilities to more appropriately conform U.S. GAAP to tax characterizations of distributions.

(e) New Accounting Pronouncements  In August 2016, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”), ASU 2016-15, which amends Accounting Standards Codification (“ASC”) 230 to clarify guidance on the classification of certain cash receipts and cash payments in the Consolidated Statement of Cash Flows. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In November 2016, the FASB issued ASU 2016-18 which amends ASC 230 to provide guidance on the classification and presentation of changes in restricted cash and restricted cash equivalents on the Consolidated Statement of Cash Flows. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In March 2017, the FASB issued ASU 2017-08 which provides guidance related to the amortization period for certain purchased callable debt securities held at a premium. The ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

ANNUAL REPORT DECEMBER 31, 2018 33

Notes to Financial Statements (Cont.)

In August 2018, the FASB issued ASU 2018-13 which modifies certain disclosure requirements for fair value measurements in ASC 820. The ASU is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. At this time, management has elected to early adopt the amendments that allow for removal of certain disclosure requirements. Management plans to adopt the amendments that require additional fair value measurement disclosures for annual periods beginning after December 15, 2019, and interim periods within those annual periods. Management is currently evaluating the impact of these changes on the financial statements.

In August 2018, the U.S. Securities and Exchange Commission (“SEC”) adopted amendments to certain rules and forms for the purpose of disclosure update and simplification. The compliance date for these amendments is 30 days after date of publication in the Federal Register, which was on October 4, 2018. Management has adopted these amendments and the changes are incorporated throughout all periods presented in the financial statements.

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

(a) Investment Valuation Policies  The price of the Portfolio’s shares is based on the Portfolio’s NAV. The NAV of the Portfolio, or each of its share classes, as applicable, is determined by dividing the total value of portfolio investments and other assets, less any liabilities attributable to the Portfolio or class, by the total number of shares outstanding of the Portfolio or class.

On each day that the New York Stock Exchange (“NYSE”) is open, Portfolio shares are ordinarily valued as of the close of regular trading (“NYSE Close”). Information that becomes known to the Portfolio or its agents after the time as of which NAV has been calculated on a particular day will not generally be used to retroactively adjust the price of a security or the NAV determined earlier that day. The Portfolio reserves the right to change the time as of which its NAV is calculated if the Portfolio closes earlier, or as permitted by the SEC.

For purposes of calculating a NAV, portfolio securities and other assets for which market quotes are readily available are valued at market value. Market value is generally determined on the basis of official closing prices or the last reported sales prices, or if no sales are reported, based on quotes obtained from established market makers or prices (including evaluated prices) supplied by the Portfolio’s approved pricing services, quotation reporting systems and other third-party sources (together, “Pricing Services”). The Portfolio will normally use pricing data for domestic equity securities received shortly after the NYSE Close and does not normally take into account trading, clearances or settlements that take place after the NYSE Close. If market value pricing is used, a foreign (non-U.S.) equity security traded

on a foreign exchange or on more than one exchange is typically valued using pricing information from the exchange considered by the Adviser to be the primary exchange. A foreign (non-U.S.) equity security will be valued as of the close of trading on the foreign exchange, or the NYSE Close, if the NYSE Close occurs before the end of trading on the foreign exchange. Domestic and foreign (non-U.S.) fixed income securities, non-exchange traded derivatives, and equity options are normally valued on the basis of quotes obtained from brokers and dealers or Pricing Services using data reflecting the earlier closing of the principal markets for those securities. Prices obtained from Pricing Services may be based on, among other things, information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics. Certain fixed income securities purchased on a delayed-delivery basis are marked to market daily until settlement at the forward settlement date. Exchange-traded options, except equity options, futures and options on futures are valued at the settlement price determined by the relevant exchange. Swap agreements are valued on the basis of bid quotes obtained from brokers and dealers or market-based prices supplied by Pricing Services. The Portfolio’s investments in open-end management investment companies, other than exchange-traded funds (“ETFs”), are valued at the NAVs of such investments. Open-end management investment companies may include affiliated funds.

If a foreign (non-U.S.) equity security’s value has materially changed after the close of the security’s primary exchange or principal market but before the NYSE Close, the security may be valued at fair value based on procedures established and approved by the Board of Trustees of the Trust (the “Board”). Foreign (non-U.S.) equity securities that do not trade when the NYSE is open are also valued at fair value. With respect to foreign (non-U.S.) equity securities, the Portfolio may determine the fair value of investments based on information provided by Pricing Services and other third-party vendors, which may recommend fair value or adjustments with reference to other securities, indices or assets. In considering whether fair valuation is required and in determining fair values, the Portfolio may, among other things, consider significant events (which may be considered to include changes in the value of U.S. securities or securities indices) that occur after the close of the relevant market and before the NYSE Close. The Portfolio may utilize modeling tools provided by third-party vendors to determine fair values of foreign (non-U.S.) securities. For these purposes, any movement in the applicable reference index or instrument (“zero trigger”) between the earlier close of the applicable foreign market and the NYSE Close may be deemed to be a significant event, prompting the application of the pricing model (effectively resulting in daily fair valuations). Foreign exchanges may permit trading in foreign (non-U.S.) equity securities on days when the Trust is not

34 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

open for business, which may result in the Portfolio’s portfolio investments being affected when shareholders are unable to buy or sell shares.

Senior secured floating rate loans for which an active secondary market exists to a reliable degree will be valued at the mean of the last available bid/ask prices in the market for such loans, as provided by a Pricing Service. Senior secured floating rate loans for which an active secondary market does not exist to a reliable degree will be valued at fair value, which is intended to approximate market value. In valuing a senior secured floating rate loan at fair value, the factors considered may include, but are not limited to, the following: (a) the creditworthiness of the borrower and any intermediate participants, (b) the terms of the loan, (c) recent prices in the market for similar loans, if any, and (d) recent prices in the market for instruments of similar quality, rate, period until next interest rate reset and maturity.

Investments valued in currencies other than the U.S. dollar are converted to the U.S. dollar using exchange rates obtained from Pricing Services. As a result, the value of such investments and, in turn, the NAV of the Portfolio’s shares may be affected by changes in the value of currencies in relation to the U.S. dollar. The value of investments traded in markets outside the United States or denominated in currencies other than the U.S. dollar may be affected significantly on a day that the Trust is not open for business. As a result, to the extent that the Portfolio holds foreign (non-U.S.) investments, the value of those investments may change at times when shareholders are unable to buy or sell shares and the value of such investments will be reflected in the Portfolio’s next calculated NAV.

Investments for which market quotes or market based valuations are not readily available are valued at fair value as determined in good faith by the Board or persons acting at their direction. The Board has adopted methods for valuing securities and other assets in circumstances where market quotes are not readily available, and has delegated to the Adviser the responsibility for applying the fair valuation methods. In the event that market quotes or market based valuations are not readily available, and the security or asset cannot be valued pursuant to a Board approved valuation method, the value of the security or asset will be determined in good faith by the Board. Market quotes are considered not readily available in circumstances where there is an absence of current or reliable market-based data (e.g., trade information, bid/ask information, indicative market quotations (“Broker Quotes”), Pricing Services’ prices), including where events occur after the close of the relevant market, but prior to the NYSE Close, that materially affect the values of the Portfolio’s securities or assets. In addition, market quotes are considered not readily available when, due to extraordinary circumstances, the exchanges or markets on which the securities trade do not open for trading for the

entire day and no other market prices are available. The Board has delegated, to the Adviser, the responsibility for monitoring significant events that may materially affect the values of the Portfolio’s securities or assets and for determining whether the value of the applicable securities or assets should be reevaluated in light of such significant events.

When the Portfolio (or, in each instance in this paragraph, as applicable, an Underlying PIMCO Fund or Acquired Fund) uses fair valuation to determine the value of a portfolio security or other asset for purposes of calculating its NAV, such investments will not be priced on the basis of quotes from the primary market in which they are traded, but rather may be priced by another method that the Board or persons acting at their direction believe reflects fair value. Fair valuation may require subjective determinations about the value of a security. While the Trust’s policy is intended to result in a calculation of the Portfolio’s NAV that fairly reflects security values as of the time of pricing, the Trust cannot ensure that fair values determined by the Board or persons acting at their direction would accurately reflect the price that the Portfolio could obtain for a security if it were to dispose of that security as of the time of pricing (for instance, in a forced or distressed sale). The prices used by the Portfolio may differ from the value that would be realized if the securities were sold. The Portfolio’s use of fair valuation may also help to deter “stale price arbitrage” as discussed under the “Frequent or Excessive Purchases, Exchanges and Redemptions” section in the Portfolio’s prospectus.

(b) Fair Value Hierarchy  U.S. GAAP describes fair value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into levels (Level 1, 2, or 3). The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Levels 1, 2, and 3 of the fair value hierarchy are defined as follows:

^∎  Level 1 — Quoted prices in active markets or exchanges for identical assets and liabilities.

^∎  Level 2 — Significant other observable inputs, which may include, but are not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market corroborated inputs.

ANNUAL REPORT DECEMBER 31, 2018 35

Notes to Financial Statements (Cont.)

^∎  Level 3 — Significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, which may include assumptions made by the Board or persons acting at their direction that are used in determining the fair value of investments.

In accordance with the requirements of U.S. GAAP, the amounts of transfers into and out of Level 3, if material, are disclosed in the Notes to Consolidated Schedule of Investments for the Portfolio.

For fair valuations using significant unobservable inputs, U.S. GAAP requires a reconciliation of the beginning to ending balances for reported fair values that presents changes attributable to realized gain (loss), unrealized appreciation (depreciation), purchases and sales, accrued discounts (premiums), and transfers into and out of the Level 3 category during the period. The end of period value is used for the transfers between Levels of the Portfolio’s assets and liabilities. Additionally, U.S. GAAP requires quantitative information regarding the significant unobservable inputs used in the determination of fair value of assets or liabilities categorized as Level 3 in the fair value hierarchy. In accordance with the requirements of U.S. GAAP, a fair value hierarchy, and if material, a Level 3 reconciliation and details of significant unobservable inputs, have been included in the Notes to Consolidated Schedule of Investments for the Portfolio.

(c) Valuation Techniques and the Fair Value Hierarchy

Level 1 and Level 2 trading assets and trading liabilities, at fair value  The valuation methods (or “techniques”) and significant inputs used in determining the fair values of portfolio securities or other assets and liabilities categorized as Level 1 and Level 2 of the fair value hierarchy are as follows:

Fixed income securities including corporate, convertible and municipal bonds and notes, U.S. government agencies, U.S. treasury obligations, sovereign issues, bank loans, convertible preferred securities and non-U.S. bonds are normally valued on the basis of quotes obtained from brokers and dealers or Pricing Services that use broker-dealer quotations, reported trades or valuation estimates from their internal pricing models. The Pricing Services’ internal models use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar assets. Securities that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

Fixed income securities purchased on a delayed-delivery basis or as a repurchase commitment in a sale-buyback transaction are marked to market daily until settlement at the forward settlement date and are categorized as Level 2 of the fair value hierarchy.

Mortgage-related and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also normally valued by Pricing Services that use broker-dealer quotations, reported trades or valuation estimates from their internal pricing models. The pricing models for these securities usually consider tranche-level attributes, current market data, estimated cash flows and market-based yield spreads for each tranche, and incorporate deal collateral performance, as available. Mortgage-related and asset-backed securities that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

Common stocks, ETFs, exchange-traded notes and financial derivative instruments, such as futures contracts, rights and warrants, or options on futures that are traded on a national securities exchange, are stated at the last reported sale or settlement price on the day of valuation. To the extent these securities are actively traded and valuation adjustments are not applied, they are categorized as Level 1 of the fair value hierarchy.

Valuation adjustments may be applied to certain securities that are solely traded on a foreign exchange to account for the market movement between the close of the foreign market and the NYSE Close. These securities are valued using Pricing Services that consider the correlation of the trading patterns of the foreign security to the intraday trading in the U.S. markets for investments. Securities using these valuation adjustments are categorized as Level 2 of the fair value hierarchy. Preferred securities and other equities traded on inactive markets or valued by reference to similar instruments are also categorized as Level 2 of the fair value hierarchy.

Investments in registered open-end investment companies (other than ETFs) will be valued based upon the NAVs of such investments and are categorized as Level 1 of the fair value hierarchy. Investments in unregistered open-end investment companies will be calculated based upon the NAVs of such investments and are considered Level 1 provided that the NAVs are observable, calculated daily and are the value at which both purchases and sales will be conducted.

Equity exchange-traded options and over the counter financial derivative instruments, such as forward foreign currency contracts and options contracts derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors. These contracts are normally valued on the basis of quotes obtained from a quotation reporting system, established market makers or Pricing Services (normally determined as of the NYSE Close). Depending on the product and the terms of the transaction, financial derivative instruments can be valued by Pricing Services using a series of techniques, including simulation pricing models. The pricing models use inputs that are observed from actively quoted markets such as

36 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

quoted prices, issuer details, indices, bid/ask spreads, interest rates, implied volatilities, yield curves, dividends and exchange rates. Financial derivative instruments that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

Centrally cleared swaps and over the counter swaps derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors. They are valued using a broker-dealer bid quotation or on market-based prices provided by Pricing Services (normally determined as of the NYSE close). Centrally cleared swaps and over the counter swaps can be valued by Pricing Services using a series of techniques, including simulation pricing models. The pricing models may use inputs that are observed from actively quoted markets such as the overnight index swap rate (“OIS”), London Interbank Offered Rate (“LIBOR”) forward rate, interest rates, yield

curves and credit spreads. These securities are categorized as Level 2 of the fair value hierarchy.

Level 3 trading assets and trading liabilities, at fair value  When a fair valuation method is applied by the Adviser that uses significant unobservable inputs, investments will be priced by a method that the Board or persons acting at their direction believe reflects fair value and are categorized as Level 3 of the fair value hierarchy.

Short-term debt instruments (such as commercial paper) having a remaining maturity of 60 days or less may be valued at amortized cost, so long as the amortized cost value of such short-term debt instruments is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. These securities are categorized as Level 2 or Level 3 of the fair value hierarchy depending on the source of the base price.

4. SECURITIES AND OTHER INVESTMENTS

(a) Investments in Affiliates

The Portfolio invests under normal circumstances in Acquired Funds which are considered to be affiliated with the Portfolio. The Portfolio may invest in the PIMCO Short Asset Portfolio and the PIMCO Short-Term Floating NAV Portfolio III (“Central Funds”) to the extent permitted by the Act and rules thereunder. The Central Funds are registered investment companies created for use solely by the series of the Trust and other series of registered investment companies advised by the Adviser, in connection with their cash management activities. The main investments of the Central Funds are money market and short maturity fixed income instruments. The Central Funds may incur expenses related to their investment activities, but do not pay Investment Advisory Fees or Supervisory and Administrative Fees to the Adviser. The Central Funds are considered to be affiliated with the Portfolio. The table below shows the Portfolio’s transactions in and earnings from investments in the affiliated Funds for the period ended December 31, 2018 (amounts in thousands^†):

Underlying PIMCO Funds	Market Value 12/31/2017		Purchases at Cost		Proceeds from Sales			Realized Net Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Market Value 12/31/2018		Dividend Income(1)		Realized Net Capital Gain Distributions(1)
PIMCO EqS® Long/Short Fund	$	15,782	$	917	$	(3,089	)	$	7		$	(805	)	$	12,812	$	456	$	460
PIMCO Income Fund		62,375		3,434		—			—			(3,071	)		62,738		3,433		—
PIMCO Mortgage Opportunities and Bond Fund		22,304		962		—			—			(616	)		22,650		963		—
PIMCO Preferred and Capital Securities Fund		9,682		574		—			—			(978	)		9,278		567		7
PIMCO RAE PLUS Fund		22,871		—		(24,185	)		6,873			(5,559	)		—		—		—
PIMCO Short-Term Floating NAV Portfolio III		2,184		398,997		(389,400	)		(4	)		—			11,777		1,297		—
Totals	$	135,198	$	404,884	$	(416,674	)	$	6,876		$	(11,029	)	$	119,255	$	6,716	$	467

^†   A zero balance may reflect actual amounts rounding to less than one thousand.

⁽¹⁾  The tax characterization of distributions is determined in accordance with Federal income tax regulations and may contain a return of capital. The actual tax characterization of distributions received is determined at the end of the fiscal year of the affiliated fund. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

(b) Investments in Securities

The Portfolio (and where applicable, certain Acquired Funds and Underlying PIMCO Funds) may utilize the investments and strategies described below to the extent permitted by the Portfolio’s investment policies.

Delayed-Delivery Transactions  involve a commitment by the Portfolio to purchase or sell securities for a predetermined price or yield, with

payment and delivery taking place beyond the customary settlement period. When delayed-delivery transactions are outstanding, the Portfolio will designate or receive as collateral liquid assets in an amount sufficient to meet the purchase price or respective obligations. When purchasing a security on a delayed-delivery basis, the Portfolio assumes the rights and risks of ownership of the security, including the risk of price and yield fluctuations, and takes such fluctuations into

ANNUAL REPORT DECEMBER 31, 2018 37

Notes to Financial Statements (Cont.)

account when determining its NAV. The Portfolio may dispose of or renegotiate a delayed-delivery transaction after it is entered into, which may result in a realized gain (loss). When the Portfolio has sold a security on a delayed-delivery basis, the Portfolio does not participate in future gains (losses) with respect to the security.

Exchange-Traded Funds  typically are index-based investment companies that hold substantially all of their assets in securities representing their specific index, but may also be actively-managed investment companies. Shares of ETFs trade throughout the day on an exchange and represent an investment in a portfolio of securities and other assets. As a shareholder of another investment company, the Portfolio would bear its pro rata portion of the other investment company’s expenses, including advisory fees, in addition to the expenses the Portfolio bears directly in connection with its own operations. Investments in ETFs entail certain risks; in particular, investments in index ETFs involve the risk that the ETF’s performance may not track the performance of the index the ETF is designed to track.

Inflation-Indexed Bonds  are fixed income securities whose principal value is periodically adjusted by the rate of inflation. The interest rate on these bonds is generally fixed at issuance at a rate lower than typical bonds. Over the life of an inflation-indexed bond, however, interest will be paid based on a principal value which is adjusted for inflation. Any increase or decrease in the principal amount of an inflation-indexed bond will be included as interest income on the Consolidated Statement of Operations, even though investors do not receive their principal until maturity. Repayment of the original bond principal upon maturity (as adjusted for inflation) is guaranteed in the case of U.S. Treasury Inflation-Protected Securities (“TIPS”). For bonds that do not provide a similar guarantee, the adjusted principal value of the bond repaid at maturity may be less than the original principal.

Mortgage-Related and Other Asset-Backed Securities  directly or indirectly represent a participation in, or are secured by and payable from, loans on real property. Mortgage-related securities are created from pools of residential or commercial mortgage loans, including mortgage loans made by savings and loan institutions, mortgage bankers, commercial banks and others. These securities provide a monthly payment which consists of both interest and principal. Interest may be determined by fixed or adjustable rates. The rate of prepayments on underlying mortgages will affect the price and volatility of a mortgage-related security, and may have the effect of shortening or extending the effective duration of the security relative to what was anticipated at the time of purchase. The timely payment of principal and interest of certain mortgage-related securities is guaranteed with the full faith and credit of the U.S. Government. Pools created and guaranteed by non-governmental issuers, including government-sponsored corporations, may be supported by various forms of

insurance or guarantees, but there can be no assurance that private insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Many of the risks of investing in mortgage-related securities secured by commercial mortgage loans reflect the effects of local and other economic conditions on real estate markets, the ability of tenants to make lease payments, and the ability of a property to attract and retain tenants. These securities may be less liquid and may exhibit greater price volatility than other types of mortgage-related or other asset-backed securities. Other asset-backed securities are created from many types of assets, including, but not limited to, auto loans, accounts receivable, such as credit card receivables and hospital account receivables, home equity loans, student loans, boat loans, mobile home loans, recreational vehicle loans, manufactured housing loans, aircraft leases, computer leases and syndicated bank loans.

Collateralized Debt Obligations  (“CDOs”) include Collateralized Bond Obligations (“CBOs”), Collateralized Loan Obligations (“CLOs”) and other similarly structured securities. CBOs and CLOs are types of asset-backed securities. A CBO is a trust which is backed by a diversified pool of high risk, below investment grade fixed income securities. A CLO is a trust typically collateralized by a pool of loans, which may include, among others, domestic and foreign senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated below investment grade or equivalent unrated loans. The risks of an investment in a CDO depend largely on the type of the collateral securities and the class of the CDO in which the Portfolio invests. In addition to the normal risks associated with fixed income securities discussed elsewhere in this report and the Portfolio’s prospectus and statement of additional information (e.g., prepayment risk, credit risk, liquidity risk, market risk, structural risk, legal risk and interest rate risk (which may be exacerbated if the interest rate payable on a structured financing changes based on multiples of changes in interest rates or inversely to changes in interest rates)), CBOs, CLOs and other CDOs carry additional risks including, but not limited to, (i) the possibility that distributions from collateral securities will not be adequate to make interest or other payments, (ii) the quality of the collateral may decline in value or default, (iii) the risk that the Portfolio may invest in CBOs, CLOs, or other CDOs that are subordinate to other classes, and (iv) the complex structure of the security may not be fully understood at the time of investment and may produce disputes with the issuer or unexpected investment results.

Collateralized Mortgage Obligations  (“CMOs”) are debt obligations of a legal entity that are collateralized by whole mortgage loans or private mortgage bonds and divided into classes. CMOs are structured into multiple classes, often referred to as “tranches”, with each class bearing a different stated maturity and entitled to a different schedule

38 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

for payments of principal and interest, including prepayments. CMOs may be less liquid and may exhibit greater price volatility than other types of mortgage-related or asset-backed securities.

Stripped Mortgage-Backed Securities  (“SMBS”) are derivative multi-class mortgage securities. SMBS are usually structured with two classes that receive different proportions of the interest and principal distributions on a pool of mortgage assets. An SMBS will have one class that will receive all of the interest (the interest-only or “IO” class), while the other class will receive the entire principal (the principal-only or “PO” class). Payments received for IOs are included in interest income on the Consolidated Statement of Operations. Because no principal will be received at the maturity of an IO, adjustments are made to the cost of the security on a monthly basis until maturity. These adjustments are included in interest income on the Consolidated Statement of Operations. Payments received for POs are treated as reductions to the cost and par value of the securities.

Perpetual Bonds  are fixed income securities with no maturity date but pay a coupon in perpetuity (with no specified ending or maturity date). Unlike typical fixed income securities, there is no obligation for perpetual bonds to repay principal. The coupon payments, however, are mandatory. While perpetual bonds have no maturity date, they may have a callable date in which the perpetuity is eliminated and the issuer may return the principal received on the specified call date. Additionally, a perpetual bond may have additional features, such as interest rate increases at periodic dates or an increase as of a predetermined point in the future.

Real Estate Investment Trusts  (“REITs”) are pooled investment vehicles that own, and typically operate, income-producing real estate. If a REIT meets certain requirements, including distributing to shareholders substantially all of its taxable income (other than net capital gains), then it is not taxed on the income distributed to shareholders. Distributions received from REITs may be characterized as income, capital gain or a return of capital. A return of capital is recorded by the Portfolio as a reduction to the cost basis of its investment in the REIT. REITs are subject to management fees and other expenses, and so the Funds that invest in REITs will bear their proportionate share of the costs of the REITs’ operations.

Securities Issued by U.S. Government Agencies or Government-Sponsored Enterprises  are obligations of and, in certain cases, guaranteed by, the U.S. Government, its agencies or instrumentalities. Some U.S. Government securities, such as Treasury bills, notes and bonds, and securities guaranteed by the Government National Mortgage Association (“GNMA” or “Ginnie Mae”), are supported by the full faith and credit of the U.S. Government; others, such as those of the Federal Home Loan Banks, are supported by the right of the

issuer to borrow from the U.S. Department of the Treasury (the “U.S. Treasury”); and others, such as those of the Federal National Mortgage Association (“FNMA” or “Fannie Mae”), are supported by the discretionary authority of the U.S. Government to purchase the agency’s obligations. U.S. Government securities may include zero coupon securities. Zero coupon securities do not distribute interest on a current basis and tend to be subject to a greater risk than interest-paying securities.

Government-related guarantors (i.e., not backed by the full faith and credit of the U.S. Government) include FNMA and the Federal Home Loan Mortgage Corporation (“FHLMC” or “Freddie Mac”). FNMA is a government-sponsored corporation. FNMA purchases conventional (i.e., not insured or guaranteed by any government agency) residential mortgages from a list of approved seller/servicers which include state and federally chartered savings and loan associations, mutual savings banks, commercial banks and credit unions and mortgage bankers. Pass-through securities issued by FNMA are guaranteed as to timely payment of principal and interest by FNMA, but are not backed by the full faith and credit of the U.S. Government. FHLMC issues Participation Certificates (“PCs”), which are pass-through securities, each representing an undivided interest in a pool of residential mortgages. FHLMC guarantees the timely payment of interest and ultimate collection of principal, but PCs are not backed by the full faith and credit of the U.S. Government.

Roll-timing strategies can be used where the Portfolio seeks to extend the expiration or maturity of a position, such as a TBA security on an underlying asset, by closing out the position before expiration and opening a new position with respect to substantially the same underlying asset with a later expiration date. TBA securities purchased or sold are reflected on the Consolidated Statement of Assets and Liabilities as an asset or liability, respectively.

When-Issued Transactions  are purchases or sales made on a when-issued basis. These transactions are made conditionally because a security, although authorized, has not yet been issued in the market. Transactions to purchase or sell securities on a when-issued basis involve a commitment by the Portfolio to purchase or sell these securities for a predetermined price or yield, with payment and delivery taking place beyond the customary settlement period. The Portfolio may sell when-issued securities before they are delivered, which may result in a realized gain (loss).

5. BORROWINGS AND OTHER FINANCING TRANSACTIONS

The Portfolio (and where applicable, certain Acquired Funds and Underlying PIMCO Funds) may enter into the borrowings and other financing transactions described below to the extent permitted by the Portfolio’s investment policies.

ANNUAL REPORT DECEMBER 31, 2018 39

Notes to Financial Statements (Cont.)

The following disclosures contain information on the Portfolio’s ability to lend or borrow cash or securities to the extent permitted under the Act, which may be viewed as borrowing or financing transactions by the Portfolio. The location of these instruments in the Portfolio’s financial statements is described below.

(a) Repurchase Agreements  Under the terms of a typical repurchase agreement, the Portfolio purchases an underlying debt obligation (collateral) subject to an obligation of the seller to repurchase, and the Portfolio to resell, the obligation at an agreed-upon price and time. In an open maturity repurchase agreement, there is no pre-determined repurchase date and the agreement can be terminated by the Portfolio or counterparty at any time. The underlying securities for all repurchase agreements are held by the Portfolio’s custodian or designated subcustodians under tri-party repurchase agreements and in certain instances will remain in custody with the counterparty. The market value of the collateral must be equal to or exceed the total amount of the repurchase obligations, including interest. Repurchase agreements, if any, including accrued interest, are included on the Consolidated Statement of Assets and Liabilities. Interest earned is recorded as a component of interest income on the Consolidated Statement of Operations. In periods of increased demand for collateral, the Portfolio may pay a fee for the receipt of collateral, which may result in interest expense to the Portfolio.

(b) Reverse Repurchase Agreements  In a reverse repurchase agreement, the Portfolio delivers a security in exchange for cash to a financial institution, the counterparty, with a simultaneous agreement to repurchase the same or substantially the same security at an agreed upon price and date. In an open maturity reverse repurchase agreement, there is no pre-determined repurchase date and the agreement can be terminated by the Portfolio or counterparty at any time. The Portfolio is entitled to receive principal and interest payments, if any, made on the security delivered to the counterparty during the term of the agreement. Cash received in exchange for securities delivered plus accrued interest payments to be made by the Portfolio to counterparties are reflected as a liability on the Consolidated Statement of Assets and Liabilities. Interest payments made by the Portfolio to counterparties are recorded as a component of interest expense on the Consolidated Statement of Operations. In periods of increased demand for the security, the Portfolio may receive a fee for use of the security by the counterparty, which may result in interest income to the Portfolio. The Portfolio will segregate assets determined to be liquid by the Adviser or will otherwise cover its obligations under reverse repurchase agreements.

(c) Sale-Buybacks  A sale-buyback financing transaction consists of a sale of a security by the Portfolio to a financial institution, the counterparty, with a simultaneous agreement to repurchase the same

or substantially the same security at an agreed-upon price and date. The Portfolio is not entitled to receive principal and interest payments, if any, made on the security sold to the counterparty during the term of the agreement. The agreed-upon proceeds for securities to be repurchased by the Portfolio are reflected as a liability on the Consolidated Statement of Assets and Liabilities. The Portfolio will recognize net income represented by the price differential between the price received for the transferred security and the agreed-upon repurchase price. This is commonly referred to as the ‘price drop’. A price drop consists of (i) the foregone interest and inflationary income adjustments, if any, the Portfolio would have otherwise received had the security not been sold and (ii) the negotiated financing terms between the Portfolio and counterparty. Foregone interest and inflationary income adjustments, if any, are recorded as components of interest income on the Consolidated Statement of Operations. Interest payments based upon negotiated financing terms made by the Portfolio to counterparties are recorded as a component of interest expense on the Consolidated Statement of Operations. In periods of increased demand for the security, the Portfolio may receive a fee for use of the security by the counterparty, which may result in interest income to the Portfolio. The Portfolio will segregate assets determined to be liquid by the Adviser or will otherwise cover its obligations under sale-buyback transactions.

(d) Short Sales  Short sales are transactions in which the Portfolio sells a security that it may not own. The Portfolio may make short sales of securities to (i) offset potential declines in long positions in similar securities, (ii) to increase the flexibility of the Portfolio, (iii) for investment return, (iv) as part of a risk arbitrage strategy, and (v) as part of its overall portfolio management strategies involving the use of derivative instruments. When the Portfolio engages in a short sale, it may borrow the security sold short and deliver it to the counterparty. The Portfolio will ordinarily have to pay a fee or premium to borrow a security and be obligated to repay the lender of the security any dividend or interest that accrues on the security during the period of the loan. Securities sold in short sale transactions and the dividend or interest payable on such securities, if any, are reflected as payable for short sales on the Consolidated Statement of Assets and Liabilities. Short sales expose the Portfolio to the risk that it will be required to cover its short position at a time when the security or other asset has appreciated in value, thus resulting in losses to the Portfolio. A short sale is “against the box” if the Portfolio holds in its portfolio or has the right to acquire the security sold short, or securities identical to the security sold short, at no additional cost. The Portfolio will be subject to additional risks to the extent that it engages in short sales that are not “against the box.” The Portfolio’s loss on a short sale could theoretically be unlimited in cases where the Portfolio is unable, for whatever reason, to close out its short position.

40 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

6. FINANCIAL DERIVATIVE INSTRUMENTS

The Portfolio (and where applicable, certain Acquired Funds and Underlying PIMCO Funds) may enter into the financial derivative instruments described below to the extent permitted by the Portfolio’s investment policies.

The following disclosures contain information on how and why the Portfolio uses financial derivative instruments, and how financial derivative instruments affect the Portfolio’s financial position, results of operations and cash flows. The location and fair value amounts of these instruments on the Consolidated Statement of Assets and Liabilities and the net realized gain (loss) and net change in unrealized appreciation (depreciation) on the Consolidated Statement of Operations, each categorized by type of financial derivative contract and related risk exposure, are included in a table in the Notes to Consolidated Schedule of Investments. The financial derivative instruments outstanding as of period end and the amounts of net realized gain (loss) and net change in unrealized appreciation (depreciation) on financial derivative instruments during the period, as disclosed in the Notes to Consolidated Schedule of Investments, serve as indicators of the volume of financial derivative activity for the Portfolio.

(a) Forward Foreign Currency Contracts  may be engaged, in connection with settling planned purchases or sales of securities, to hedge the currency exposure associated with some or all of the Portfolio’s securities or as part of an investment strategy. A forward foreign currency contract is an agreement between two parties to buy and sell a currency at a set price on a future date. The market value of a forward foreign currency contract fluctuates with changes in foreign currency exchange rates. Forward foreign currency contracts are marked to market daily, and the change in value is recorded by the Portfolio as an unrealized gain (loss). Realized gains (losses) are equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed and are recorded upon delivery or receipt of the currency. These contracts may involve market risk in excess of the unrealized gain (loss) reflected on the Consolidated Statement of Assets and Liabilities. In addition, the Portfolio could be exposed to risk if the counterparties are unable to meet the terms of the contracts or if the value of the currency changes unfavorably to the U.S. dollar. To mitigate such risk, cash or securities may be exchanged as collateral pursuant to the terms of the underlying contracts.

(b) Futures Contracts  are agreements to buy or sell a security or other asset for a set price on a future date. The Portfolio may use futures contracts to manage its exposure to the securities markets or to movements in interest rates and currency values. The primary risks associated with the use of futures contracts are the imperfect correlation between the change in market value of the securities held

by the Portfolio and the prices of futures contracts and the possibility of an illiquid market. Futures contracts are valued based upon their quoted daily settlement prices. Upon entering into a futures contract, the Portfolio is required to deposit with its futures broker an amount of cash, U.S. Government and Agency Obligations, or select sovereign debt, in accordance with the initial margin requirements of the broker or exchange. Futures contracts are marked to market daily and based on such movements in the price of the contracts, an appropriate payable or receivable for the change in value may be posted or collected by the Portfolio (“Futures Variation Margin”). Gains (losses) are recognized but not considered realized until the contracts expire or close. Futures contracts involve, to varying degrees, risk of loss in excess of the Futures Variation Margin included within exchange traded or centrally cleared financial derivative instruments on the Consolidated Statement of Assets and Liabilities.

(c) Options Contracts  may be written or purchased to enhance returns or to hedge an existing position or future investment. The Portfolio may write call and put options on securities and financial derivative instruments it owns or in which it may invest. Writing put options tends to increase the Portfolio’s exposure to the underlying instrument. Writing call options tends to decrease the Portfolio’s exposure to the underlying instrument. When the Portfolio writes a call or put, an amount equal to the premium received is recorded and subsequently marked to market to reflect the current value of the option written. These amounts are included on the Consolidated Statement of Assets and Liabilities. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options which are exercised or closed are added to the proceeds or offset against amounts paid on the underlying futures, swap, security or currency transaction to determine the realized gain (loss). Certain options may be written with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. The Portfolio as a writer of an option has no control over whether the underlying instrument may be sold (“call”) or purchased (“put”) and as a result bears the market risk of an unfavorable change in the price of the instrument underlying the written option. There is the risk the Portfolio may not be able to enter into a closing transaction because of an illiquid market.

Purchasing call options tends to increase the Portfolio’s exposure to the underlying instrument. Purchasing put options tends to decrease the Portfolio’s exposure to the underlying instrument. The Portfolio pays a premium which is included as an asset on the Consolidated Statement of Assets and Liabilities and subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options which expire are treated as realized losses. Certain options may be purchased with premiums to be determined on a future date. The

ANNUAL REPORT DECEMBER 31, 2018 41

Notes to Financial Statements (Cont.)

premiums for these options are based upon implied volatility parameters at specified terms. The risk associated with purchasing put and call options is limited to the premium paid. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the underlying investment transaction to determine the realized gain (loss) when the underlying transaction is executed.

Barrier Options  (“Barrier Options”) are options, which may be written or purchased, with non-standard payout structures or other features. Barrier Options are generally traded OTC. The Portfolio may invest in various types of Barrier Options including down-and-in, down-and-out and up-and-in options. Down-and in and up-and-in options are similar to standard options, except that the option expires worthless to the purchaser of the option if the price of the underlying instrument does, or does not reach a specific barrier price level prior to the option’s expiration date. Down-and-out options expire worthless to the purchaser of the option if the price of the underlying instrument reaches a specific barrier price level prior to the option’s expiration date.

Commodity Options  are options on commodity futures contracts (“Commodity Option”). The underlying instrument for the Commodity Option is not the commodity itself, but rather a futures contract for that commodity. The exercise of a Commodity Option will not include physical delivery of the underlying commodity but will result in a cash transfer for the amount of the difference between the current market value of the underlying futures contract and the strike price. For an option that is in-the-money, the Portfolio will normally offset its position rather than exercise the option to retain any remaining time value.

Credit Default Swaptions  may be written or purchased to hedge exposure to the credit risk of an investment without making a commitment to the underlying instrument. A credit default swaption is an option to sell or buy credit protection on a specific reference by entering into a pre-defined swap agreement by some specified date in the future.

Foreign Currency Options  may be written or purchased to be used as a short or long hedge against possible variations in foreign exchange rates or to gain exposure to foreign currencies.

Inflation-Capped Options  may be written or purchased to enhance returns or for hedging opportunities. The purpose of purchasing inflation-capped options is to protect the Portfolio from inflation erosion above a certain rate on a given notional exposure. A floor can be used to give downside protection to investments in inflation-linked products.

Interest Rate-Capped Options  may be written or purchased to enhance returns or for hedging opportunities. The purpose of purchasing interest rate-capped options is to protect the Portfolio from floating rate risk above a certain rate on a given notional exposure. A floor can be used to give downside protection to investments in interest rate linked products.

Interest Rate Swaptions  may be written or purchased to enter into a pre-defined swap agreement or to shorten, extend, cancel or otherwise modify an existing swap agreement, by some specified date in the future. The writer of the swaption becomes the counterparty to the swap if the buyer exercises. The interest rate swaption agreement will specify whether the buyer of the swaption will be a fixed-rate receiver or a fixed-rate payer upon exercise.

Options on Exchange-Traded Funds  use a specified exchange-traded fund as the underlying instrument for the option contract. The Portfolio may write or purchase options to enhance returns or to hedge an existing position or future investment.

Options on Exchange-Traded Futures Contracts  (“Futures Option”) may be written or purchased to hedge an existing position or future investment, for speculative purposes or to manage exposure to market movements. A Futures Option is an option contract in which the underlying instrument is a single futures contract.

Options on Indices  (“Index Option”) use a specified index as the underlying instrument for the option contract. The exercise for an Index Option will not include physical delivery of the underlying index but will result in a cash transfer of the amount of the difference between the settlement price of the underlying index and the strike price.

Options on Securities  may be written or purchased to enhance returns or to hedge an existing position or future investment. An option on a security uses a specified security as the underlying instrument for the option contract.

(d) Swap Agreements  are bilaterally negotiated agreements between the Portfolio and a counterparty to exchange or swap investment cash flows, assets, foreign currencies or market-linked returns at specified, future intervals. Swap agreements may be privately negotiated in the over the counter market (“OTC swaps”) or may be cleared through a third party, known as a central counterparty or derivatives clearing organization (“Centrally Cleared Swaps”). The Portfolio may enter into asset, credit default, cross-currency, interest rate, total return, variance and other forms of swap agreements to manage its exposure to credit, currency, interest rate, commodity, equity and inflation risk. In connection with these agreements, securities or cash may be identified as collateral or margin in accordance with the terms of the respective

42 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

swap agreements to provide assets of value and recourse in the event of default or bankruptcy/insolvency.

Centrally Cleared Swaps are marked to market daily based upon valuations as determined from the underlying contract or in accordance with the requirements of the central counterparty or derivatives clearing organization. Changes in market value, if any, are reflected as a component of net change in unrealized appreciation (depreciation) on the Consolidated Statement of Operations. Daily changes in valuation of centrally cleared swaps (“Swap Variation Margin”), if any, are disclosed within centrally cleared financial derivative instruments on the Consolidated Statement of Assets and Liabilities. Centrally Cleared and OTC swap payments received or paid at the beginning of the measurement period are included on the Consolidated Statement of Assets and Liabilities and represent premiums paid or received upon entering into the swap agreement to compensate for differences between the stated terms of the swap agreement and prevailing market conditions (credit spreads, currency exchange rates, interest rates, and other relevant factors). Upfront premiums received (paid) are initially recorded as liabilities (assets) and subsequently marked to market to reflect the current value of the swap. These upfront premiums are recorded as realized gain (loss) on the Consolidated Statement of Operations upon termination or maturity of the swap. A liquidation payment received or made at the termination of the swap is recorded as realized gain (loss) on the Consolidated Statement of Operations. Net periodic payments received or paid by the Portfolio are included as part of realized gain (loss) on the Consolidated Statement of Operations.

For purposes of applying certain of the Portfolio’s investment policies and restrictions, swap agreements, like other derivative instruments, may be valued by the Portfolio at market value, notional value or full exposure value. In the case of a credit default swap, in applying certain of the Portfolio’s investment policies and restrictions, the Portfolio will value the credit default swap at its notional value or its full exposure value (i.e., the sum of the notional amount for the contract plus the market value), but may value the credit default swap at market value for purposes of applying certain of the Portfolio’s other investment policies and restrictions. For example, the Portfolio may value credit default swaps at full exposure value for purposes of the Portfolio’s credit quality guidelines (if any) because such value in general better reflects the Portfolio’s actual economic exposure during the term of the credit default swap agreement. As a result, the Portfolio may, at times, have notional exposure to an asset class (before netting) that is greater or lesser than the stated limit or restriction noted in the Portfolio’s prospectus. In this context, both the notional amount and the market value may be positive or negative depending on whether the Portfolio is selling or buying protection through the credit default swap. The

manner in which certain securities or other instruments are valued by the Portfolio for purposes of applying investment policies and restrictions may differ from the manner in which those investments are valued by other types of investors.

Entering into swap agreements involves, to varying degrees, elements of interest, credit, market and documentation risk in excess of the amounts recognized on the Consolidated Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of contractual terms in the agreements and that there may be unfavorable changes in interest rates or the values of the asset upon which the swap is based.

The Portfolio’s maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from the counterparty over the contract’s remaining life, to the extent that amount is positive. The risk may be mitigated by having a master netting arrangement between the Portfolio and the counterparty and by the posting of collateral to the Portfolio to cover the Portfolio’s exposure to the counterparty.

To the extent the Portfolio has a policy to limit the net amount owed to or to be received from a single counterparty under existing swap agreements, such limitation only applies to counterparties to OTC swaps and does not apply to centrally cleared swaps where the counterparty is a central counterparty or derivatives clearing organization.

Commodity Forward Swap Agreements  (“Commodity Forwards”) are entered into to gain or mitigate exposure to the underlying referenced commodity. Commodity Forwards involve commitments between two parties where cash flows are exchanged at a future date based on the difference between a fixed and variable price with respect to the number of units of the commodity. At the maturity date, a net cash flow is exchanged, where the payoff amount is equivalent to the difference between the fixed and variable price of the underlying commodity multiplied by the number of units. To the extent the difference between the fixed and variable price of the underlying referenced commodity exceeds or falls short of the offsetting payment obligation, the Portfolio will receive a payment from or make a payment to the counterparty.

Credit Default Swap Agreements  on corporate, loan, sovereign, U.S. municipal or U.S. Treasury issues are entered into to provide a measure of protection against defaults of the issuers (i.e., to reduce risk where the Portfolio owns or has exposure to the referenced obligation) or to take an active long or short position with respect to the likelihood of a

ANNUAL REPORT DECEMBER 31, 2018 43

Notes to Financial Statements (Cont.)

particular issuer’s default. Credit default swap agreements involve one party making a stream of payments (referred to as the buyer of protection) to another party (the seller of protection) in exchange for the right to receive a specified return in the event that the referenced entity, obligation or index, as specified in the swap agreement, undergoes a certain credit event. As a seller of protection on credit default swap agreements, the Portfolio will generally receive from the buyer of protection a fixed rate of income throughout the term of the swap provided that there is no credit event. As the seller, the Portfolio would effectively add leverage to its portfolio because, in addition to its total net assets, the Portfolio would be subject to investment exposure on the notional amount of the swap.

If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. If the Portfolio is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. Recovery values are estimated by market makers considering either industry standard recovery rates or entity specific factors and considerations until a credit event occurs. If a credit event has occurred, the recovery value is determined by a facilitated auction whereby a minimum number of allowable broker bids, together with a specified valuation method, are used to calculate the settlement value. The ability to deliver other obligations may result in a cheapest-to-deliver option (the buyer of protection’s right to choose the deliverable obligation with the lowest value following a credit event).

Credit default swap agreements on credit indices involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising the credit index. A credit index is a basket of credit instruments or exposures designed to be representative of some part of the credit market as a whole. These indices are made up of reference credits that are judged by a poll of dealers to be the most liquid entities in the credit default swap market based on the sector of the index.

Components of the indices may include, but are not limited to, investment grade securities, high yield securities, asset-backed securities, emerging markets, and/or various credit ratings within each sector. Credit indices are traded using credit default swaps with standardized terms including a fixed spread and standard maturity dates. An index credit default swap references all the names in the index, and if there is a default, the credit event is settled based on that name’s weight in the index. The composition of the indices changes periodically, usually every six months, and for most indices, each name has an equal weight in the index. The Portfolio may use credit default swaps on credit indices to hedge a portfolio of credit default swaps or bonds, which is less expensive than it would be to buy many credit default swaps to achieve a similar effect. Credit default swaps on indices are instruments for protecting investors owning bonds against default, and traders use them to speculate on changes in credit quality.

Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate, loan, sovereign, U.S. municipal or U.S. Treasury issues as of period end, if any, are disclosed in the Notes to Consolidated Schedule of Investments. They serve as an indicator of the current status of payment/performance risk and represent the likelihood or risk of default for the reference entity. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. For credit default swap agreements on asset-backed securities and credit indices, the quoted market prices and resulting values serve as the indicator of the current status of the payment/performance risk. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

The maximum potential amount of future payments (undiscounted) that the Portfolio as a seller of protection could be required to make under a credit default swap agreement equals the notional amount of the agreement. Notional amounts of each individual credit default swap agreement outstanding as of period end for which the Portfolio is the seller of protection are disclosed in the Notes to Consolidated Schedule of Investments. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Portfolio for the same referenced entity or entities.

44 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

Interest Rate Swap Agreements  may be entered into to help hedge against interest rate risk exposure and to maintain the Portfolio’s ability to generate income at prevailing market rates. The value of the fixed rate bonds that the Portfolio holds may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, the Portfolio may enter into interest rate swap agreements. Interest rate swap agreements involve the exchange by the Portfolio with another party for their respective commitment to pay or receive interest on the notional amount of principal. Certain forms of interest rate swap agreements may include: (i) interest rate caps, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates exceed a specified rate, or “cap”, (ii) interest rate floors, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates fall below a specified rate, or “floor”, (iii) interest rate collars, under which a party sells a cap and purchases a floor or vice versa in an attempt to protect itself against interest rate movements exceeding given minimum or maximum levels, (iv) callable interest rate swaps, under which the buyer pays an upfront fee in consideration for the right to early terminate the swap transaction in whole, at zero cost and at a predetermined date and time prior to the maturity date, (v) spreadlocks, which allow the interest rate swap users to lock in the forward differential (or spread) between the interest rate swap rate and a specified benchmark, or (vi) basis swaps, under which two parties can exchange variable interest rates based on different segments of money markets.

Total Return Swap Agreements  are entered into to gain or mitigate exposure to the underlying reference asset. Total return swap agreements involve commitments where single or multiple cash flows are exchanged based on the price of an underlying reference asset and on a fixed or variable interest rate. Total return swap agreements may involve commitments to pay interest in exchange for a market-linked return. One counterparty pays out the total return of a specific underlying reference asset, which may include a single security, a basket of securities, or an index, and in return receives a fixed or variable rate. At the maturity date, a net cash flow is exchanged where the total return is equivalent to the return of the underlying reference asset less a financing rate, if any. As a receiver, the Portfolio would receive payments based on any net positive total return and would owe payments in the event of a net negative total return. As the payer, the Portfolio would owe payments on any net positive total return, and would receive payments in the event of a net negative total return.

Volatility Swap Agreements  are also known as forward volatility agreements and volatility swaps and are agreements in which the counterparties agree to make payments in connection with changes in the volatility (i.e., the magnitude of change over a specified period of

time) of an underlying referenced instrument, such as a currency, rate, index, security or other financial instrument. Volatility swaps permit the parties to attempt to hedge volatility risk and/or take positions on the projected future volatility of an underlying referenced instrument. For example, the Portfolio may enter into a volatility swap in order to take the position that the referenced instrument’s volatility will increase over a particular period of time. If the referenced instrument’s volatility does increase over the specified time, the Portfolio will receive payment from its counterparty based upon the amount by which the referenced instrument’s realized volatility level exceeds a volatility level agreed upon by the parties. If the referenced instrument’s volatility does not increase over the specified time, the Portfolio will make a payment to the counterparty based upon the amount by which the referenced instrument’s realized volatility level falls below the volatility level agreed upon by the parties. At the maturity date, a net cash flow is exchanged, where the payoff amount is equivalent to the difference between the realized price volatility of the referenced instrument and the strike multiplied by the notional amount. As a receiver of the realized price volatility, the Portfolio would receive the payoff amount when the realized price volatility of the referenced instrument is greater than the strike and would owe the payoff amount when the volatility is less than the strike. As a payer of the realized price volatility, the Portfolio would owe the payoff amount when the realized price volatility of the referenced instrument is greater than the strike and would receive the payoff amount when the volatility is less than the strike. Payments on a volatility swap will be greater if they are based upon the mathematical square of volatility (i.e., the measured volatility multiplied by itself, which is referred to as “variance”). This type of volatility swap is frequently referred to as a variance swap.

7. PRINCIPAL RISKS

The principal risks of investing in the Portfolio, which could adversely affect its net asset value, yield and total return, are listed below. The principal risks of investing in the Portfolio include risks from direct investments and/or for certain Portfolios that invest in Acquired Funds or Underlying PIMCO Funds, indirect exposure through investment in such Acquired Funds or Underlying PIMCO Funds. Please see “Description of Principal Risks” in the Portfolio’s prospectus for a more detailed description of the risks of investing in the Portfolio.

Allocation Risk  is the risk that a Portfolio could lose money as a result of less than optimal or poor asset allocation decisions. The Portfolio could miss attractive investment opportunities by underweighting markets that subsequently experience significant returns and could lose value by overweighting markets that subsequently experience significant declines.

Acquired Fund Risk  is the risk that a Portfolio’s performance is closely related to the risks associated with the securities and other investments

ANNUAL REPORT DECEMBER 31, 2018 45

Notes to Financial Statements (Cont.)

held by the Acquired Funds and that the ability of a Portfolio to achieve its investment objective will depend upon the ability of the Acquired Funds to achieve their investment objectives.

Interest Rate Risk  is the risk that fixed income securities will decline in value because of an increase in interest rates; a portfolio with a longer average portfolio duration will be more sensitive to changes in interest rates than a portfolio with a shorter average portfolio duration.

Call Risk  is the risk that an issuer may exercise its right to redeem a fixed income security earlier than expected (a call). Issuers may call outstanding securities prior to their maturity for a number of reasons (e.g., declining interest rates, changes in credit spreads and improvements in the issuer’s credit quality). If an issuer calls a security that the Portfolio has invested in, the Portfolio may not recoup the full amount of its initial investment and may be forced to reinvest in lower-yielding securities, securities with greater credit risks or securities with other, less favorable features.

Credit Risk  is the risk that the Portfolio could lose money if the issuer or guarantor of a fixed income security, or the counterparty to a derivative contract, is unable or unwilling to meet its financial obligations.

High Yield Risk  is the risk that high yield securities and unrated securities of similar credit quality (commonly known as “junk bonds”) are subject to greater levels of credit, call and liquidity risks. High yield securities are considered primarily speculative with respect to the issuer’s continuing ability to make principal and interest payments, and may be more volatile than higher-rated securities of similar maturity.

Distressed Company Risk  is the risk that securities of distressed companies may be subject to greater levels of credit, issuer and liquidity risk than a portfolio that does not invest in such securities. Securities of distressed companies include both debt and equity securities. Debt securities of distressed companies are considered predominantly speculative with respect to the issuers’ continuing ability to make principal and interest payments.

Market Risk  is the risk that the value of securities owned by the Portfolio may go up or down, sometimes rapidly or unpredictably, due to factors affecting securities markets generally or particular industries.

Issuer Risk  is the risk that the value of a security may decline for a reason directly related to the issuer, such as management performance, financial leverage and reduced demand for the issuer’s goods or services.

Liquidity Risk  is the risk that a particular investment may be difficult to purchase or sell and that the Portfolio may be unable to sell illiquid securities at an advantageous time or price or achieve its desired level of exposure to a certain sector. Liquidity risk may result from the lack of

an active market, reduced number and capacity of traditional market participants to make a market in fixed income securities, and may be magnified in a rising interest rate environment or other circumstances where investor redemptions from fixed income mutual funds may be higher than normal, causing increased supply in the market due to selling activity.

Derivatives Risk  is the risk of investing in derivative instruments (such as futures, swaps and structured securities), including leverage, liquidity, interest rate, market, credit and management risks, mispricing or valuation complexity. Changes in the value of the derivative may not correlate perfectly with, and may be more sensitive to market events than, the underlying asset, rate or index, and the Portfolio could lose more than the initial amount invested. The Portfolio’s use of derivatives may result in losses to the Portfolio, a reduction in the Portfolio’s returns and/or increased volatility. Over-the-counter (“OTC”) derivatives are also subject to the risk that a counterparty to the transaction will not fulfill its contractual obligations to the other party, as many of the protections afforded to centrally-cleared derivative transactions might not be available for OTC derivatives. For derivatives traded on an exchange or through a central counterparty, credit risk resides with the Portfolio’s clearing broker, or the clearinghouse itself, rather than with a counterparty in an OTC derivative transaction. Changes in regulation relating to a mutual fund’s use of derivatives and related instruments could potentially limit or impact the Portfolio’s ability to invest in derivatives, limit the Portfolio’s ability to employ certain strategies that use derivatives and/or adversely affect the value of derivatives and the Portfolio’s performance.

Commodity Risk  is the risk that investing in commodity-linked derivative instruments may subject the Portfolio to greater volatility than investments in traditional securities. The value of commodity-linked derivative instruments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments.

Equity Risk  is the risk that the value of equity securities, such as common stocks and preferred securities, may decline due to general market conditions which are not specifically related to a particular company or to factors affecting a particular industry or industries. Equity securities generally have greater price volatility than fixed income securities.

Mortgage-Related and Other Asset-Backed Securities Risk  is the risk of investing in mortgage-related and other asset-backed securities, including interest rate risk, extension risk, prepayment risk and credit risk.

46 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

Foreign (Non-U.S.) Investment Risk  is the risk that investing in foreign (non-U.S.) securities may result in the Portfolio experiencing more rapid and extreme changes in value than a portfolio that invests exclusively in securities of U.S. companies, due to smaller markets, differing reporting, accounting and auditing standards, increased risk of delayed settlement of portfolio transactions or loss of certificates of portfolio securities, and the risk of unfavorable foreign government actions, including nationalization, expropriation or confiscatory taxation, currency blockage, or political changes or diplomatic developments. Foreign securities may also be less liquid and more difficult to value than securities of U.S. issuers.

Real Estate Risk  is the risk that a Portfolio’s investments in Real Estate Investment Trusts (“REITs”) or real estate-linked derivative instruments will subject the Portfolio to risks similar to those associated with direct ownership of real estate, including losses from casualty or condemnation, and changes in local and general economic conditions, supply and demand, interest rates, zoning laws, regulatory limitations on rents, property taxes and operating expenses. A Portfolio’s investments in REITs or real estate-linked derivative instruments subject it to management and tax risks. In addition, privately traded REITs subject a Portfolio to liquidity and valuation risk.

Emerging Markets Risk  is the risk of investing in emerging market securities, primarily increased foreign (non-U.S.) investment risk.

Sovereign Debt Risk  is the risk that investments in fixed income instruments issued by sovereign entities may decline in value as a result of default or other adverse credit event resulting from an issuer’s inability or unwillingness to make principal or interest payments in a timely fashion.

Currency Risk  is the risk that foreign (non-U.S.) currencies will change in value relative to the U.S. dollar and affect the Portfolio’s investments in foreign (non-U.S.) currencies or in securities that trade in, and receive revenues in, or in derivatives that provide exposure to, foreign (non-U.S.) currencies.

Leveraging Risk  is the risk that certain transactions of the Portfolio, such as reverse repurchase agreements, loans of portfolio securities, and the use of when-issued, delayed delivery or forward commitment transactions, or derivative instruments, may give rise to leverage, magnifying gains and losses and causing the Portfolio to be more volatile than if it had not been leveraged. This means that leverage entails a heightened risk of loss.

Smaller Company Risk  is the risk that the value of securities issued by a smaller company may go up or down, sometimes rapidly and unpredictably as compared to more widely held securities, due to narrow markets and limited resources of smaller companies. A

Portfolio’s investments in smaller companies subject it to greater levels of credit, market and issuer risk.

Management Risk  is the risk that the investment techniques and risk analyses applied by PIMCO will not produce the desired results and that legislative, regulatory, or tax restrictions, policies or developments may affect the investment techniques available to PIMCO and the individual portfolio manager in connection with managing the Portfolio. There is no guarantee that the investment objective of the Portfolio will be achieved.

Tax Risk  is the risk that the tax treatment of swap agreements and other derivative instruments, such as commodity-linked derivative instruments, including commodity index-linked notes, swap agreements, commodity options, futures, and options on futures, may be affected by future regulatory or legislative changes that could affect whether income from such investments is “qualifying income” under Subchapter M of the Internal Revenue Code, or otherwise affect the character, timing and/or amount of the Portfolio’s taxable income or gains and distributions.

Subsidiary Risk  is the risk that, by investing in the GMAMA Subsidiary, the Portfolio is indirectly exposed to the risks associated with the GMAMA Subsidiary’s investments. The GMAMA Subsidiary is not registered under the 1940 Act and may not be subject to all the investor protections of the 1940 Act. There is no guarantee that the investment objective of the GMAMA Subsidiary will be achieved.

Short Exposure Risk  is the risk of entering into short sales, including the potential loss of more money than the actual cost of the investment, and the risk that the third party to the short sale will not fulfill its contractual obligations, causing a loss to the Portfolio.

Value Investing Risk  is the risk that a value stock may decrease in price or may not increase in price as anticipated by PIMCO if it continues to be undervalued by the market or the factors that the portfolio manager believes will cause the stock price to increase do not occur.

Arbitrage Risk  is the risk that securities purchased pursuant to an arbitrage strategy intended to take advantage of a perceived relationship between the value of two securities may not perform as expected.

Convertible Securities Risk  is the risk that arises when convertible securities share both fixed income and equity characteristics. Convertible securities are subject to risks to which fixed income and equity investments are subject. These risks include equity risk, interest rate risk and credit risk.

ANNUAL REPORT DECEMBER 31, 2018 47

Notes to Financial Statements (Cont.)

Exchange-Traded Fund Risk  is the risk that an exchange-traded fund may not track the performance of the index it is designed to track, market prices of shares of an exchange-traded fund may fluctuate rapidly and materially, or shares of an exchange-traded fund may trade significantly above or below net asset value, any of which may cause losses to the Portfolio invested in the exchange-traded fund.

8. MASTER NETTING ARRANGEMENTS

The Portfolio may be subject to various netting arrangements (“Master Agreements”) with select counterparties. Master Agreements govern the terms of certain transactions, and are intended to reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that is intended to improve legal certainty. Each type of Master Agreement governs certain types of transactions. Different types of transactions may be traded out of different legal entities or affiliates of a particular organization, resulting in the need for multiple agreements with a single counterparty. As the Master Agreements are specific to unique operations of different asset types, they allow the Portfolio to close out and net its total exposure to a counterparty in the event of a default with respect to all the transactions governed under a single Master Agreement with a counterparty. For financial reporting purposes the Consolidated Statement of Assets and Liabilities generally presents derivative assets and liabilities on a gross basis, which reflects the full risks and exposures prior to netting.

Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. Under most Master Agreements, collateral is routinely transferred if the total net exposure to certain transactions (net of existing collateral already in place) governed under the relevant Master Agreement with a counterparty in a given account exceeds a specified threshold, which typically ranges from zero to $250,000 depending on the counterparty and the type of Master Agreement. United States Treasury Bills and U.S. dollar cash are generally the preferred forms of collateral, although other securities may be used depending on the terms outlined in the applicable Master Agreement. Securities and cash pledged as collateral are reflected as assets on the Consolidated Statement of Assets and Liabilities as either a component of Investments at value (securities) or Deposits with counterparty. Cash collateral received is not typically held in a segregated account and as such is reflected as a liability on the Consolidated Statement of Assets and Liabilities as Deposits from counterparty. The market value of any securities received as collateral is not reflected as a component of NAV. The Portfolio’s overall exposure to counterparty risk can change substantially within a short period, as it is affected by each transaction subject to the relevant Master Agreement.

Master Repurchase Agreements and Global Master Repurchase Agreements (individually and collectively “Master Repo Agreements”) govern repurchase, reverse repurchase, and certain sale-buyback transactions between the Portfolio and select counterparties. Master Repo Agreements maintain provisions for, among other things, initiation, income payments, events of default, and maintenance of collateral. The market value of transactions under the Master Repo Agreement, collateral pledged or received, and the net exposure by counterparty as of period end are disclosed in the Notes to Consolidated Schedule of Investments.

Master Securities Forward Transaction Agreements (“Master Forward Agreements”) govern certain forward settling transactions, such as TBA securities, delayed-delivery or certain sale-buyback transactions by and between the Portfolio and select counterparties. The Master Forward Agreements maintain provisions for, among other things, transaction initiation and confirmation, payment and transfer, events of default, termination, and maintenance of collateral. The market value of forward settling transactions, collateral pledged or received, and the net exposure by counterparty as of period end is disclosed in the Notes to Consolidated Schedule of Investments.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Such transactions require posting of initial margin as determined by each relevant clearing agency which is segregated in an account at a futures commission merchant (“FCM”) registered with the Commodity Futures Trading Commission (“CFTC”). In the United States, counterparty risk may be reduced as creditors of an FCM cannot have a claim to Portfolio assets in the segregated account. Portability of exposure reduces risk to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives unless the parties have agreed to a separate arrangement in respect of portfolio margining. The market value or accumulated unrealized appreciation (depreciation), initial margin posted, and any unsettled variation margin as of period end are disclosed in the Notes to Consolidated Schedule of Investments.

Prime Broker Arrangements may be entered into to facilitate execution and/or clearing of listed equity option transactions or short sales of equity securities between the Portfolio and selected counterparties. The arrangements provide guidelines surrounding the rights, obligations, and other events, including, but not limited to, margin, execution, and settlement. These agreements maintain provisions for, among other things, payments, maintenance of collateral, events of default, and termination. Margin and other assets delivered as collateral are typically in the possession of the prime broker and would offset any obligations due to the prime broker. The market values of listed options and securities sold short and related collateral are disclosed in the Notes to Consolidated Schedule of Investments.

48 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

International Swaps and Derivatives Association, Inc. Master Agreements and Credit Support Annexes (“ISDA Master Agreements”) govern bilateral OTC derivative transactions entered into by the Portfolio with select counterparties. ISDA Master Agreements maintain provisions for general obligations, representations, agreements, collateral posting and events of default or termination. Events of termination include conditions that may entitle counterparties to elect to terminate early and cause settlement of all outstanding transactions under the applicable ISDA Master Agreement. Any election to terminate early could be material to the financial statements. In limited circumstances, the ISDA Master Agreement may contain additional provisions that add counterparty protection beyond coverage of existing daily exposure if the counterparty has a decline in credit quality below a predefined level. These amounts, if any, may be segregated with a third-party custodian. The market value of OTC financial derivative instruments, collateral received or pledged, and net exposure by counterparty as of period end are disclosed in the Notes to Consolidated Schedule of Investments.

9. FEES AND EXPENSES

(a) Investment Advisory Fee  PIMCO is a majority-owned subsidiary of Allianz Asset Management of America L.P. (“Allianz Asset Management”) and serves as the Adviser to the Trust, pursuant to an investment advisory contract. The Adviser receives a monthly fee from the Portfolio at an annual rate based on average daily net assets (the “Investment Advisory Fee”). The Investment Advisory Fee for all classes is charged at an annual rate as noted in the table in note (b) below.

(b) Supervisory and Administrative Fee  PIMCO serves as administrator (the “Administrator”) and provides supervisory and administrative services to the Trust for which it receives a monthly supervisory and administrative fee based on each share class’s average daily net assets (the “Supervisory and Administrative Fee”). As the Administrator, PIMCO bears the costs of various third-party services, including audit, custodial, portfolio accounting, legal, transfer agency and printing costs.

The Investment Advisory Fee and Supervisory and Administrative Fees for all classes, as applicable, are charged at the annual rate as noted in the following table (calculated as a percentage of the Portfolio’s average daily net assets attributable to each class):

Investment Advisory Fee		Supervisory and Administrative Fee
All Classes		Institutional Class		Administrative Class		Advisor Class
	0.90%		0.05%		0.05%		0.05%

(c) Distribution and Servicing Fees  PIMCO Investments LLC, a wholly-owned subsidiary of PIMCO, serves as the distributor (“Distributor”) of the Trust’s shares.

The Trust has adopted an Administrative Services Plan with respect to the Administrative Class shares of the Portfolio pursuant to Rule 12b-1 under the Act (the “Administrative Plan”). Under the terms of the Administrative Plan, the Trust is permitted to compensate the Distributor, out of the Administrative Class assets of the Portfolio, in an amount up to 0.15% on an annual basis of the average daily net assets of that class, for providing or procuring through financial intermediaries administrative, recordkeeping and investor services for Administrative Class shareholders of the Portfolio.

The Trust has adopted a separate Distribution and Servicing Plan for the Advisor Class shares of the Portfolio (the “Distribution and Servicing Plan”). The Distribution and Servicing Plan has been adopted pursuant to Rule 12b-1 under the Act. The Distribution and Servicing Plan permits the Portfolio to compensate the Distributor for providing or procuring through financial intermediaries, distribution, administrative, recordkeeping, shareholder and/or related services with respect to Advisor Class shares. The Distribution and Servicing Plan permits the Portfolio to make total payments at an annual rate of up to 0.25% of its average daily net assets attributable to its Advisor Class shares.

	Distribution Fee		Servicing Fee
Administrative Class		—		0.15%
Advisor Class		0.25%		—

(d) Portfolio Expenses  PIMCO provides or procures supervisory and administrative services for shareholders and also bears the costs of various third-party services required by the Portfolio, including audit, custodial, portfolio accounting, legal, transfer agency and printing costs. The Trust is responsible for the following expenses: (i) taxes and governmental fees; (ii) brokerage fees and commissions and other portfolio transaction expenses; (iii) the costs of borrowing money, including interest expense; (iv) fees and expenses of the Trustees who are not “interested persons” of PIMCO or the Trust, and any counsel retained exclusively for their benefit; (v) extraordinary expense, including costs of litigation and indemnification expenses; (vi) organizational expenses; and (vii) any expenses allocated or allocable to a specific class of shares, which include service fees payable with respect to the Administrative Class Shares, and may include certain other expenses as permitted by the Trust’s Multi-Class Plan adopted pursuant to Rule 18f-3 under the Act and subject to review and approval by the Trustees. The ratio of expenses to average net assets per share class, as disclosed on the Financial Highlights, may differ from the annual portfolio operating expenses per share class.

Each Trustee, other than those affiliated with PIMCO or its affiliates, receives an annual retainer of $41,200, plus $4,250 for each Board meeting attended in person, $850 for each committee meeting attended and $750 for each Board meeting attended telephonically,

ANNUAL REPORT DECEMBER 31, 2018 49

Notes to Financial Statements (Cont.)

plus reimbursement of related expenses. In addition, the audit committee chair receives an additional annual retainer of $8,000, the valuation oversight committee lead receives an additional annual retainer of $8,500 (to the extent there are co-leads of the valuation oversight committee, the annual retainer will be split evenly between the co-leads, so that each co-lead individually receives an additional annual retainer of $4,250) and each other committee chair receives an additional annual retainer of $5,500. The Lead Independent Trustee receives an annual retainer of $7,000.

These expenses are allocated on a pro rata basis to each Portfolio of the Trust according to its respective net assets. The Trust pays no compensation directly to any Trustee or any other officer who is affiliated with the Administrator, all of whom receive remuneration for their services to the Trust from the Administrator or its affiliates.

(e) Expense Limitation  Pursuant to the Expense Limitation Agreement, PIMCO has agreed to waive a portion of the Portfolio’s Supervisory and Administrative Fee, or reimburse the Portfolio, to the extent that the Portfolio’s organizational expenses, pro rata share of expenses related to obtaining or maintaining a Legal Entity Identifier and pro rata share of Trustee Fees exceed 0.0049%, the “Expense Limit” (calculated as a percentage of the Portfolio’s average daily net assets attributable to each class). The Expense Limitation Agreement will automatically renew for one-year terms unless PIMCO provides written notice to the Trust at least 30 days prior to the end of the then current term.

Under certain conditions, PIMCO may be reimbursed for amounts waived pursuant to the Expense Limitation Agreement in future periods, not to exceed thirty-six months after the waiver. At December 31, 2018, there were no recoverable amounts.

(f) Acquired Fund Fees and Expenses  Acquired Fund expenses incurred by the Portfolio, if any, will vary with changes in the expenses of the Acquired Funds, as well as the allocation of the Portfolio’s assets.

The expenses associated with investing in a fund of funds are generally higher than those for mutual funds that do not invest in other mutual funds. The cost of investing in a fund of funds will generally be higher than the cost of investing in a mutual fund that invests directly in individual stocks and bonds. By investing in a fund of funds, an investor will indirectly bear fees and expenses charged by Acquired Funds in addition to the Portfolio’s direct fees and expenses. In addition, the use of a fund of funds structure could affect the timing, amount and character of distributions to the shareholders and may therefore increase the amount of taxes payable by shareholders. The Portfolio also indirectly pays its proportionate share of the Investment Advisory Fees, Supervisory and Administrative Fees and Management Fees

charged by PIMCO to the Underlying PIMCO Funds and, to the extent not included among the Underlying PIMCO Funds, funds of PIMCO ETF Trust in which the Portfolio invests (collectively, “Underlying PIMCO Fund Fees”).

PIMCO has contractually agreed, through May 1, 2019, to waive, first, the Investment Advisory Fee and, second, to the extent necessary, the Supervisory and Administrative Fee it receives from the Portfolio in an amount equal to the Underlying PIMCO Fund Fees indirectly incurred by the Portfolio in connection with its investments in Underlying PIMCO Funds, to the extent the Portfolio’s Investment Advisory Fee or Investment Advisory Fee and Supervisory and Administrative Fee, taken together, are greater than or equal to the Underlying PIMCO Fund Fees. This waiver will automatically renew for one-year terms unless PIMCO provides written notice to the Trust at least 30 days prior to the end of the then current term. The waiver is reflected in the Consolidated Statement of Operations as a component of Waiver and/or Reimbursement by PIMCO. For the period ended December 31, 2018, the amount was $747,957.

PIMCO Cayman Commodity Portfolio II, Ltd. (the “Commodity Subsidiary”), has entered into a separate contract with PIMCO for the management of the Commodity Subsidiary’s portfolio pursuant to which the Commodity Subsidiary pays PIMCO a management fee and an administrative services fee at the annual rates of 0.49% and 0.20%, respectively, of its net assets. PIMCO has contractually agreed to waive the Portfolio’s Investment Advisory Fee and the Supervisory and Administrative Fee in an amount equal to the management fee and administrative services fee, respectively, paid by the Commodity Subsidiary to PIMCO. This waiver may not be terminated by PIMCO and will remain in effect for as long as PIMCO’s contract with the Commodity Subsidiary is in place. The waiver is reflected on the Consolidated Statement of Operations as a component of Waiver and/or Reimbursement by PIMCO. For the period ended December 31, 2018, the amount was $293,341. See Note 14, Basis for Consolidation in the Notes to Financial Statements for more information regarding the Commodity Subsidiary.

10. RELATED PARTY TRANSACTIONS

The Adviser, Administrator, and Distributor are related parties. Fees paid to these parties are disclosed in Note 9, Fees and Expenses, and the accrued related party fee amounts are disclosed on the Consolidated Statement of Assets and Liabilities.

11. GUARANTEES AND INDEMNIFICATIONS

Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust (including the Trust’s investment manager) is indemnified, to the extent permitted by the Act, against

50 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

certain liabilities that may arise out of performance of their duties to the Portfolio. Additionally, in the normal course of business, the Portfolio enters into contracts that contain a variety of indemnification clauses. The Portfolio’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Portfolio that have not yet occurred. However, the Portfolio has not had prior claims or losses pursuant to these contracts.

12. PURCHASES AND SALES OF SECURITIES

The length of time the Portfolio has held a particular security is not generally a consideration in investment decisions. A change in the securities held by the Portfolio is known as “portfolio turnover.” The Portfolio may engage in frequent and active trading of portfolio securities to achieve its investment objective, particularly during periods of volatile market movements. High portfolio turnover may involve correspondingly greater transaction costs to the Portfolio, including

brokerage commissions or dealer mark-ups and other transaction costs on the sale of securities and reinvestments in other securities. Such sales may also result in realization of taxable capital gains, including short-term capital gains (which are generally taxed at ordinary income tax rates). The transaction costs and tax effects associated with portfolio turnover may adversely affect a shareholder’s performance. The portfolio turnover rates are reported in the Financial Highlights.

Purchases and sales of securities (excluding short-term investments) for the period ended December 31, 2018, were as follows (amounts in thousands^†):

U.S. Government/Agency				All Other
Purchases		Sales		Purchases		Sales
$	5,656,480	$	5,737,472	$	272,311	$	263,307

^†   A zero balance may reflect actual amounts rounding to less than one thousand.

13. SHARES OF BENEFICIAL INTEREST

The Trust may issue an unlimited number of shares of beneficial interest with a $0.001 par value. Changes in shares of beneficial interest were as follows (shares and amounts in thousands^†):

	Year Ended 12/31/2018						Year Ended 12/31/2017
	Shares			Amount			Shares			Amount
Receipts for shares sold
Institutional Class		0		$	0			0		$	0
Administrative Class		139			1,684			766			9,248
Advisor Class		937			11,224			460			5,626
Issued as reinvestment of distributions
Institutional Class		15			174			3			41
Administrative Class		1,377			15,596			347			4,291
Advisor Class		3,890			44,262			956			11,870
Cost of shares redeemed
Institutional Class		0			(6	)		(1	)		(6	)
Administrative Class		(2,498	)		(31,697	)		(2,941	)		(36,140	)
Advisor Class		(7,746	)		(98,215	)		(8,017	)		(98,680	)
Net increase (decrease) resulting from Portfolio share transactions		(3,886	)	$	(56,978	)		(8,427	)	$	(103,750	)

^†   A zero balance may reflect actual amounts rounding to less than one thousand.

As of December 31, 2018, two shareholders each owned 10% or more of the Portfolio’s total outstanding shares comprising 87% of the Portfolio. One of the shareholders is a related party and comprises 23% of the Portfolio. Related parties may include, but are not limited to, the investment adviser and its affiliates, affiliated broker dealers, fund of funds and directors or employees of the Trust or Adviser.

14. BASIS FOR CONSOLIDATION

The Commodity Subsidiary, a Cayman Islands exempted company, was incorporated on November 21, 2008, as a wholly owned subsidiary acting as an investment vehicle for the Portfolio in order to effect

certain investments for the Portfolio consistent with the Portfolio’s investment objectives and policies as specified in its prospectus and statement of additional information. The Portfolio’s investment portfolio has been consolidated and includes the portfolio holdings of the Portfolio and the Commodity Subsidiary. The consolidated financial statements include the accounts of the Portfolio and the Commodity Subsidiary. All inter-company transactions and balances have been eliminated. A subscription agreement was entered into between the Portfolio and the Commodity Subsidiary on January 14, 2009, comprising the entire issued share capital of the Commodity Subsidiary, with the intent that the Portfolio will remain the sole shareholder and

ANNUAL REPORT DECEMBER 31, 2018 51

Notes to Financial Statements (Cont.)

retain all rights. Under the Memorandum and Articles of Association, shares issued by the Commodity Subsidiary confer upon a shareholder the right to receive notice of, to attend and to vote at general meetings of the Commodity Subsidiary and shall confer upon the shareholder rights in a winding-up or repayment of capital and the right to participate in the profits or assets of the Commodity Subsidiary. The net assets of the Commodity Subsidiary as of period end represented 7.1% of the Portfolio’s consolidated net assets.

15. REGULATORY AND LITIGATION MATTERS

The Portfolio is not named as a defendant in any material litigation or arbitration proceedings and is not aware of any material litigation or claim pending or threatened against it.

The foregoing speaks only as of the date of this report.

16. FEDERAL INCOME TAX MATTERS

The Portfolio intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code (the “Code”) and distribute all of its taxable income and net realized gains, if applicable, to shareholders. Accordingly, no provision for Federal income taxes has been made.

The Portfolio may be subject to local withholding taxes, including those imposed on realized capital gains. Any applicable foreign capital gains tax is accrued daily based upon net unrealized gains, and may be payable following the sale of any applicable investments.

In accordance with U.S. GAAP, the Adviser has reviewed the Portfolio’s tax positions for all open tax years. As of December 31, 2018, the Portfolio has recorded no liability for net unrecognized tax benefits relating to uncertain income tax positions it has taken or expects to take in future tax returns.

The Portfolio files U.S. federal, state, and local tax returns as required. The Portfolio’s tax returns are subject to examination by relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return but which can be extended to six years in certain circumstances. Tax returns for open years have incorporated no uncertain tax positions that require a provision for income taxes.

The Portfolio may gain exposure to the commodities markets primarily through index-linked notes, and may invest in other commodity-linked derivative investments, including commodity swap agreements, options, futures contracts, options on futures contracts and foreign funds investing in similar commodity-linked derivatives.

The Portfolio may also gain exposure indirectly to commodity markets by investing in the Commodity Subsidiary, which invests primarily in commodity-linked derivative instruments backed by a portfolio of inflation-indexed securities and/or other fixed income instruments.

One of the requirements for favorable tax treatment as a regulated investment company under the Code is that the Portfolio must derive at least 90% of its gross income from certain qualifying sources of income. The IRS has issued a revenue ruling which holds that income derived from commodity index-linked swaps is not qualifying income under Subchapter M of the Code. The IRS has also issued private letter rulings in which the IRS specifically concluded that income from certain commodity index- linked notes is qualifying income. The IRS has also issued private letter rulings in which the IRS specifically concluded that income derived from an investment in a subsidiary, which invests primarily in commodity-linked swaps, will also be qualifying income. Based on the reasoning in such rulings, the Portfolio will continue to seek to gain exposure to the commodity markets primarily through investments in commodity-linked notes and through investments in the Commodity Subsidiary.

It should be noted, however, that the IRS currently has suspended the issuance of such rulings pending further review. In addition, the IRS also recently issued a revenue procedure, which states that the IRS will not in the future issue private letter rulings that would require a determination of whether an asset (such as a commodity index-linked note) is a “security” under the 1940 Act.

There can be no assurance that the IRS will not change its position that income derived from commodity-linked notes and wholly-owned subsidiaries is qualifying income. Furthermore, the tax treatment of commodity-linked notes, other commodity-linked derivatives, and the Portfolio’s investments in the Commodity Subsidiary may otherwise be adversely affected by future legislation, court decisions, Treasury Regulations and/or guidance issued by the IRS. Such developments could affect the character, timing and/or amount of the Portfolio’s taxable income or any distributions made by the Portfolio or result in the inability of the Portfolio to operate as described in its Prospectus.

If, during a taxable year, the Commodity Subsidiary’s taxable losses (and other deductible items) exceed its income and gains, the net loss will not pass through to the Portfolio as a deductible amount for income tax purposes. In the event the Commodity Subsidiary’s taxable gains exceed its losses and other deductible items during a taxable year, the net gain will pass through to the Portfolio as income for Federal income tax purposes.

Shares of the Portfolio currently are sold to segregated asset accounts (“Separate Accounts”) of insurance companies that fund variable annuity contracts and variable life insurance policies (“Variable Contracts”). Please refer to the prospectus for the Separate Account and Variable Contract for information regarding Federal income tax treatment of distributions to the Separate Account.

52 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

As of December 31, 2018, the components of distributable taxable earnings are as follows (amounts in thousands^†):

	Undistributed Ordinary Income(1)		Undistributed Long-Term Capital Gains		Net Tax Basis Unrealized Appreciation/ (Depreciation)(2)			Other Book-to-Tax Accounting Differences(3)			Accumulated Capital Losses(4)			Qualified Late-Year Loss Deferral - Capital(5)		Qualified Late-Year Loss Deferral - Ordinary(6)
PIMCO Global Multi-Asset Managed Allocation Portfolio	$	6,716	$	0	$	(27,197	)	$	(7	)	$	(15,064	)	$	0	$	0

^†   A zero balance may reflect actual amounts rounding to less than one thousand.

⁽¹⁾  Includes undistributed short-term capital gains, if any.

⁽²⁾  Adjusted for open wash sale loss deferrals and the accelerated recognition of unrealized gain or loss on certain futures, options and forward contracts for federal income tax, purposes. Also adjusted for differences between book and tax realized and unrealized gain (loss) on swap contracts, sale/buyback transactions, convertible preferred securities, passive foreign investment companies (PFICs), straddle loss deferrals, and partnerships.

⁽³⁾  Represents differences in income tax regulations and financial accounting principles generally accepted in the United States of America, mainly for organizational costs.

⁽⁴⁾  Capital losses available to offset future net capital gains expire in varying amounts as shown below.

⁽⁵⁾  Capital losses realized during the period November 1, 2018 through December 31, 2018 which the Portfolio elected to defer to the following taxable year pursuant to income tax regulations.

⁽⁶⁾  Specified losses realized during the period November 1, 2018 through December 31, 2018 which the Portfolio elected to defer to the following taxable year pursuant to income tax regulations.

Under the Regulated Investment Company Modernization Act of 2010, a fund is permitted to carry forward any new capital losses for an unlimited period. Additionally, such capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term under previous law.

As of December 31, 2018, the Portfolio had the following post-effective capital losses with no expiration (amounts in thousands^†):

	Short-Term		Long-Term
PIMCO Global Multi-Asset Managed Allocation Portfolio	$	12,807	$	2,257

^†   A zero balance may reflect actual amounts rounding to less than one thousand.

As of December 31, 2018, the aggregate cost and the net unrealized appreciation/(depreciation) of investments for federal income tax purposes are as follows (amounts in thousands^†):

	Federal Tax Cost		Unrealized Appreciation		Unrealized (Depreciation)			Net Unrealized Appreciation/ (Depreciation)(7)
PIMCO Global Multi-Asset Managed Allocation Portfolio	$	849,924	$	22,769	$	(50,056	)	$	(27,287	)

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽⁷⁾  Primary differences, if any, between book and tax net unrealized appreciation/(depreciation) on investments are attributable to open wash sale loss deferrals, unrealized gain or loss on certain futures, options and forward contracts, sale/buyback transactions, realized and unrealized gain (loss) swap contracts, passive foreign investment companies (PFICs), straddle loss deferrals, and partnerships.

For the fiscal year ended December 31, 2018 and December 31, 2017, respectively, the Portfolio made the following tax basis distributions (amounts in thousands^†):

	December 31, 2018						December 31, 2017
	Ordinary Income Distributions(8)		Long-Term Capital Gain Distributions		Return of Capital(9)		Ordinary Income Distributions(8)		Long-Term Capital Gain Distributions		Return of Capital(9)
PIMCO Global Multi-Asset Managed Allocation Portfolio	$	32,186	$	27,846	$	0	$	16,202	$	0	$	0

^†   A zero balance may reflect actual amounts rounding to less than one thousand.

⁽⁸⁾  Includes short-term capital gains distributed, if any.

⁽⁹⁾  A portion of the distributions made represents a tax return of capital. Return of capital distributions have been reclassified from undistributed net investment income to paid-in capital to more appropriately conform financial accounting to tax accounting.

ANNUAL REPORT DECEMBER 31, 2018 53

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of PIMCO Variable Insurance Trust and Shareholders of

PIMCO Global Multi-Asset Managed Allocation Portfolio

Opinion on the Financial Statements

We have audited the accompanying consolidated statement of assets and liabilities, including the consolidated schedule of investments, of PIMCO Global Multi-Asset Managed Allocation Portfolio and its subsidiary (one of the portfolios constituting PIMCO Variable Insurance Trust, referred to hereafter as the “Portfolio”) as of December 31, 2018, the related consolidated statement of operations for the year ended December 31, 2018, the consolidated statement of changes in net assets for each of the two years in the period ended December 31, 2018, including the related notes, and the financial highlights (consolidated) for each of the five years in the period ended December 31, 2018 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Portfolio as of December 31, 2018, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period ended December 31, 2018 and the financial highlights for each of the five years in the period ended December 31, 2018 in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Portfolio’s management. Our responsibility is to express an opinion on the Portfolio’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Portfolio in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2018 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

Kansas City, Missouri

February 20, 2019

We have served as the auditor of one or more investment companies in PIMCO Variable Insurance Trust since 1998.

54 PIMCO VARIABLE INSURANCE TRUST

Glossary: (abbreviations that may be used in the preceding statements)

(Unaudited)

Counterparty Abbreviations:
BOA	Bank of America N.A.	FOB	Credit Suisse Securities (USA) LLC	MYC	Morgan Stanley Capital Services, Inc.
BOS	Banc of America Securities LLC	GLM	Goldman Sachs Bank USA	MYI	Morgan Stanley & Co. International PLC
BPS	BNP Paribas S.A.	GRE	RBS Securities, Inc.	RBC	Royal Bank of Canada
BRC	Barclays Bank PLC	GST	Goldman Sachs International	RYL	Royal Bank of Scotland Group PLC
BSN	Bank of Nova Scotia	HUS	HSBC Bank USA N.A.	SAL	Citigroup Global Markets, Inc.
CBK	Citibank N.A.	IND	Crédit Agricole Corporate and Investment Bank S.A.	SCX	Standard Chartered Bank
DUB	Deutsche Bank AG	JPM	JP Morgan Chase Bank N.A.	SOG	Societe Generale
FAR	Wells Fargo Bank National Association	MEI	Merrill Lynch International	SSB	State Street Bank and Trust Co.
FBF	Credit Suisse International	MSB	Morgan Stanley Bank, N.A	UAG	UBS AG Stamford
FICC	Fixed Income Clearing Corporation
Currency Abbreviations:
ARS	Argentine Peso	GBP	British Pound	PEN	Peruvian New Sol
AUD	Australian Dollar	HKD	Hong Kong Dollar	PHP	Philippine Peso
BRL	Brazilian Real	IDR	Indonesian Rupiah	PLN	Polish Zloty
CAD	Canadian Dollar	ILS	Israeli Shekel	RUB	Russian Ruble
CHF	Swiss Franc	INR	Indian Rupee	SEK	Swedish Krona
CLP	Chilean Peso	JPY	Japanese Yen	THB	Thai Baht
CNH	Chinese Renminbi (Offshore)	KRW	South Korean Won	TRY	Turkish New Lira
COP	Colombian Peso	MXN	Mexican Peso	TWD	Taiwanese Dollar
CZK	Czech Koruna	MYR	Malaysian Ringgit	USD (or $)	United States Dollar
DKK	Danish Krone	NZD	New Zealand Dollar	ZAR	South African Rand
EUR	Euro
Exchange Abbreviations:
CBOE	Chicago Board Options Exchange	FTSE	Financial Times Stock Exchange	OTC	Over the Counter
CBOT	Chicago Board of Trade	NYMEX	New York Mercantile Exchange
Index/Spread Abbreviations:
BADLARPP	Argentina Badlar Floating Rate Notes	CPURNSA	Consumer Price All Urban Non-Seasonally Adjusted Index	NDUEEGF	iShares MSCI Emerging Markets ETF
BRENT	Brent Crude	DWRTFT	Dow Jones Wilshire REIT Total Return Index	PLATGOLD	Platinum-Gold Spread
CDX.HY	Credit Derivatives Index - High Yield	EAFE	Europe, Australasia, and Far East Stock Index	S&P 500	Standard & Poor’s 500 Index
CDX.IG	Credit Derivatives Index - Investment Grade	EURMARGIN	European Refined Margin	TOPIX	Tokyo Price Index
CMBX	Commercial Mortgage-Backed Index	FRCPXTOB	France Consumer Price ex-Tobacco Index	UKRPI	United Kingdom Retail Prices Index
CPALEMU	Euro Area All Items Non-Seasonally Adjusted Index	GOLDLNPM	London Gold Market Fixing Ltd. PM	ULSD	Ultra-Low Sulfur Diesel
CPTFEMU	Eurozone HICP ex-Tobacco Index	ISDA	International Swaps and Derivatives Association, Inc.	US0003M	3 Month USD Swap Rate
Other Abbreviations:
ABS	Asset-Backed Security	MSCI	Morgan Stanley Capital International	REIT	Real Estate Investment Trust
BTP	Buoni del Tesoro Poliennali	NVDR	Non-Voting Depositary Receipt	TBA	To-Be-Announced
CLO	Collateralized Loan Obligation	OAT	Obligations Assimilables du Trésor	TELBOR	Tel Aviv Inter-Bank Offered Rate
DAC	Designated Activity Company	OIS	Overnight Index Swap	TIIE	Tasa de Interés Interbancaria de Equilibrio “Equilibrium Interbank Interest Rate”
EURIBOR	Euro Interbank Offered Rate	oz.	Ounce	WTI	West Texas Intermediate
LIBOR	London Interbank Offered Rate	RBOB	Reformulated Blendstock for Oxygenate Blending	YOY	Year-Over-Year
Lunar	Monthly payment based on 28-day periods. One year consists of 13 periods.

ANNUAL REPORT DECEMBER 31, 2018 55

Federal Income Tax Information

(Unaudited)

As required by the Internal Revenue Code (the “Code”) and Treasury Regulations, if applicable, shareholders must be notified regarding the status of qualified dividend income and the dividend received deduction.

Dividend Received Deduction.  Corporate shareholders are generally entitled to take the dividend received deduction on the portion of a Fund’s dividend distribution that qualifies under tax law. The percentage of the following Portfolio’s fiscal 2018 ordinary income dividend that qualifies for the corporate dividend received deduction is set forth in the table below.

Qualified Dividend Income.  Under the Jobs and Growth Tax Relief Reconciliation Act of 2003 (the “Act”), the percentage of ordinary dividends paid during the calendar year designated as “qualified dividend income”, as defined in the Act, subject to reduced tax rates in 2018 is set forth for the Portfolio in the table below.

Qualified Interest Income and Qualified Short-Term Capital Gain (for non-U.S. resident shareholders only).  Under the American Jobs Creation Act of 2004, the amounts of ordinary dividends paid during the fiscal year ended December 31, 2018 considered to be derived from “qualified interest income,” as defined in Section 871(k)(1)(E) of the Code, and therefore designated as interest-related dividends, as defined in Section 871(k)(1)(C) of the Code are set forth in the table below. Further, the amounts of ordinary dividends paid during the fiscal year ended December 31, 2018 considered to be derived from “qualified short-term capital gain,” as defined in Section 871(k)(2)(D) of the Code, and therefore designated as qualified short-term gain dividends, as defined by Section 871(k)(2)(C) of the Code are also set forth in the table below.

	Dividend Received Deduction %		Qualified Dividend Income %		Qualified Interest Income (000s†)		Qualified Short-Term Capital Gain (000s†)
PIMCO Global Multi-Asset Managed Allocation Portfolio		1.37%		7.66%	$	7,417	$	21,180

^†   A zero balance may reflect actual amounts rounding to less than one thousand.

Shareholders are advised to consult their own tax advisor with respect to the tax consequences of their investment in the Trust. In January 2019, you will be advised on IRS Form 1099-DIV as to the federal tax status of the dividends and distributions received by you in calendar year 2018.

56 PIMCO VARIABLE INSURANCE TRUST

Management of the Trust

(Unaudited)

The charts below identify the Trustees and executive officers of the Trust. Unless otherwise indicated, the address of all persons below is 650 Newport Center Drive, Newport Beach, CA 92660.

The Portfolio’s Statement of Additional Information includes more information about the Trustees and Officers. To request a free copy, call PIMCO at (888) 87-PIMCO or visit the Portfolio’s website at www.pimco.com/pvit.

Name, Year of Birth and Position Held with Trust*	Term of Office and Length of Time Served†	Principal Occupation(s) During Past 5 Years	Number of Funds in Fund Complex Overseen by Trustee	Other Public Company and Investment Company Directorships Held by Trustee During the Past 5 Years
Interested Trustees1
Peter G. Strelow** (1970) Chairman of the Board and Trustee	05/2017 to present Chairman of the Board - 02/2019 to present	Managing Director and Co-Chief Operating Officer, PIMCO. President of the Trust, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Chief Administrative Officer, PIMCO.	153	Chairman and Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT.
Brent R. Harris** (1959) Trustee	08/1997 to present	Managing Director, PIMCO. Senior Vice President of the Trust, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Formerly, member of Executive Committee, PIMCO.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT; Director, StocksPLUS® Management, Inc; and member of Board of Governors, Investment Company Institute. Formerly, Chairman, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT.
Independent Trustees
George E. Borst (1948) Trustee	04/2015 to present	Executive Advisor, McKinsey & Company (since 10/14); Formerly, Executive Advisor, Toyota Financial Services (10/13-12/14); and CEO, Toyota Financial Services (1/01-9/13).	132	Trustee, PIMCO Funds and PIMCO ETF Trust; Director, MarineMax Inc.
Jennifer Holden Dunbar (1963) Trustee	04/2015 to present	Managing Director, Dunbar Partners, LLC (business consulting and investments). Formerly, Partner, Leonard Green & Partners, L.P.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT; Director, PS Business Parks; Director, Big 5 Sporting Goods Corporation.
Kym M. Hubbard (1957) Trustee	02/2017 to present	Formerly, Global Head of Investments, Chief Investment Officer and Treasurer, Ernst & Young.	132	Trustee, PIMCO Funds and PIMCO ETF Trust; Director, State Auto Financial Corporation.
Gary F. Kennedy (1955) Trustee	04/2015 to present	Formerly, Senior Vice President, General Counsel and Chief Compliance Officer, American Airlines and AMR Corporation (now American Airlines Group) (1/03-1/14).	132	Trustee, PIMCO Funds and PIMCO ETF Trust.
Peter B. McCarthy (1950) Trustee	04/2015 to present	Formerly, Assistant Secretary and Chief Financial Officer, United States Department of Treasury; Deputy Managing Director, Institute of International Finance.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Ronald C. Parker (1951) Lead Independent Trustee	07/2009 to present Lead Independent Trustee - 02/2017 to present	Director of Roseburg Forest Products Company. Formerly, Chairman of the Board, The Ford Family Foundation; and President, Chief Executive Officer, Hampton Affiliates (forestry products).	153	Lead Independent Trustee, PIMCO Funds and PIMCO ETF Trust; Trustee, PIMCO Equity Series and PIMCO Equity Series VIT.

* Unless otherwise noted, the information for the individuals listed is as of December 31, 2018.

** Effective February 13, 2019, Mr. Strelow became the Chairman of the Trust.

¹  Mr. Harris and Mr. Strelow are “interested persons” of the Trust (as that term is defined in the 1940 Act) because of their affiliations with PIMCO.

^†  Trustees serve until their successors are duly elected and qualified.

ANNUAL REPORT DECEMBER 31, 2018 57

Management of the Trust (Cont.)

(Unaudited)

Executive Officers

Name, Year of Birth and Position Held with Trust	Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years*
Peter G. Strelow (1970) President	01/2015 to present	Managing Director and Co-Chief Operating Officer, PIMCO. President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Chief Administrative Officer, PIMCO.
Joshua D. Ratner (1976)** Chief Legal Officer	11/2018 to present Vice President - Senior Counsel and Secretary 11/2013 to 11/2018 Assistant Secretary 10/2007 to 01/2011	Executive Vice President and Deputy General Counsel, PIMCO. Chief Legal Officer, PIMCO Investments LLC. Chief Legal Officer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Jennifer E. Durham (1970) Chief Compliance Officer	07/2004 to present	Managing Director and Chief Compliance Officer, PIMCO. Chief Compliance Officer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Brent R. Harris (1959) Senior Vice President	01/2015 to present President 03/2009 to 01/2015	Managing Director, PIMCO. Senior Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Formerly, member of Executive Committee, PIMCO.
Ryan G. Leshaw (1980) Vice President, Senior Counsel and Secretary	11/2018 to present Assistant Secretary 05/2012 to 11/2018	Senior Vice President and Senior Counsel, PIMCO. Vice President, Senior Counsel and Secretary, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Assistant Secretary, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Associate, Willkie Farr & Gallagher LLP.
Wu-Kwan Kit (1981) Assistant Secretary	08/2017 to present	Senior Vice President and Senior Counsel, PIMCO. Assistant Secretary, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Vice President, Senior Counsel and Secretary, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Assistant General Counsel, VanEck Associates Corp.
Stacie D. Anctil (1969) Vice President	05/2015 to present Assistant Treasurer 11/2003 to 05/2015	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
William G. Galipeau (1974) Vice President	11/2013 to present	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Eric D. Johnson (1970) Vice President	05/2011 to present	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Henrik P. Larsen (1970) Vice President	02/1999 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Bijal Y. Parikh (1978) Vice President	02/2017 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Greggory S. Wolf (1970) Vice President	05/2011 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Trent W. Walker (1974) Treasurer	11/2013 to present	Executive Vice President, PIMCO. Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Erik C. Brown (1967)** Assistant Treasurer	02/2001 to present	Executive Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Colleen D. Miller (1980)** Assistant Treasurer	02/2017 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Christopher M. Morin (1980) Assistant Treasurer	08/2016 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Jason J. Nagler (1982)** Assistant Treasurer	05/2015 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.

* The term “PIMCO-Sponsored Closed-End Funds” as used herein includes: PIMCO California Municipal Income Fund, PIMCO California Municipal Income Fund II, PIMCO California Municipal Income Fund III, PIMCO Municipal Income Fund, PIMCO Municipal Income Fund II, PIMCO Municipal Income Fund III, PIMCO New York Municipal Income Fund, PIMCO New York Municipal Income Fund II, PIMCO New York Municipal Income Fund III, PCM Fund Inc., PIMCO Corporate & Income Opportunity Fund, PIMCO Corporate & Income Strategy Fund, PIMCO Dynamic Credit and Mortgage Income Fund, PIMCO Dynamic Income Fund, PIMCO Global StocksPLUS^® & Income Fund, PIMCO High Income Fund, PIMCO Income Opportunity Fund, PIMCO Income Strategy Fund, PIMCO Income Strategy Fund II and PIMCO Strategic Income Fund, Inc.; the term “PIMCO-Sponsored Interval Funds” as used herein includes: PIMCO Flexible Credit Income Fund and PIMCO Flexible Municipal Income Fund.

** The address of these officers is Pacific Investment Management Company LLC, 1633 Broadway, New York, New York 10019.

58 PIMCO VARIABLE INSURANCE TRUST

Privacy Policy¹

(Unaudited)

The Trust^2,3 considers customer privacy to be a fundamental aspect of its relationships with shareholders and is committed to maintaining the confidentiality, integrity and security of its current, prospective and former shareholders’ non-public personal information. The Trust has developed policies that are designed to protect this confidentiality, while allowing shareholder needs to be served.

OBTAINING PERSONAL INFORMATION

In the course of providing shareholders with products and services, the Trust and certain service providers to the Trust, such as the Trust’s investment advisers or sub-advisers (“Advisers”), may obtain non-public personal information about shareholders, which may come from sources such as account applications and other forms, from other written, electronic or verbal correspondence, from shareholder transactions, from a shareholder’s brokerage or financial advisory firm, financial advisor or consultant, and/or from information captured on applicable websites.

RESPECTING YOUR PRIVACY

As a matter of policy, the Trust does not disclose any non-public personal information provided by shareholders or gathered by the Trust to non-affiliated third parties, except as required or permitted by law or as necessary for such third parties to perform their agreements with respect to the Trust. As is common in the industry, non-affiliated companies may from time to time be used to provide certain services, such as preparing and mailing prospectuses, reports, account statements and other information, conducting research on shareholder satisfaction and gathering shareholder proxies. The Trust or its affiliates may also retain non-affiliated companies to market the Trust’s shares or products which use the Trust’s shares and enter into joint marketing arrangements with them and other companies. These companies may have access to a shareholder’s personal and account information, but are permitted to use this information solely to provide the specific service or as otherwise permitted by law. In most cases, the shareholders will be clients of a third party, but the Trust may also provide a shareholder’s personal and account information to the shareholder’s respective brokerage or financial advisory firm and/or financial advisor or consultant.

SHARING INFORMATION WITH THIRD PARTIES

The Trust reserves the right to disclose or report personal or account information to non-affiliated third parties in limited circumstances where the Trust believes in good faith that disclosure is required under law, to cooperate with regulators or law enforcement authorities, to protect its rights or property, or upon reasonable request by any fund advised by PIMCO in which a shareholder has invested. In addition, the Trust may disclose information about a shareholder or a shareholder’s accounts to a non-affiliated third party at the shareholder’s request or with the consent of the shareholder.

SHARING INFORMATION WITH AFFILIATES

The Trust may share shareholder information with its affiliates in connection with servicing shareholders’ accounts, and subject to applicable law may provide shareholders with information about products and services that the Trust or its Advisers, distributors or their affiliates (“Service Affiliates”) believe may be of interest to such shareholders. The information that the Trust may share may include, for example, a shareholder’s participation in the Trust or in other

investment programs sponsored by a Service Affiliate, a shareholder’s ownership of certain types of accounts (such as IRAs), information about the Trust’s experiences or transactions with a shareholder, information captured on applicable websites, or other data about a shareholder’s accounts, subject to applicable law. The Trust’s Service Affiliates, in turn, are not permitted to share shareholder information with non-affiliated entities, except as required or permitted by law.

PROCEDURES TO SAFEGUARD PRIVATE INFORMATION

The Trust takes seriously the obligation to safeguard shareholder non-public personal information. In addition to this policy, the Trust has implemented procedures that are designed to restrict access to a shareholder’s non-public personal information to internal personnel who need to know that information to perform their jobs, such as servicing shareholder accounts or notifying shareholders of new products or services. Physical, electronic and procedural safeguards are in place to guard a shareholder’s non-public personal information.

INFORMATION COLLECTED FROM WEBSITES

Websites maintained by the Trust or its service providers may use a variety of technologies to collect information that help the Trust and its service providers understand how the website is used. Information collected from your web browser (including small files stored on your device that are commonly referred to as “cookies”) allow the websites to recognize your web browser and help to personalize and improve your user experience and enhance navigation of the website. In addition, the Trust or its Service Affiliates may use third parties to place advertisements for the Trust on other websites, including banner advertisements. Such third parties may collect anonymous information through the use of cookies or action tags (such as web beacons). The information these third parties collect is generally limited to technical and web navigation information, such as your IP address, web pages visited and browser type, and does not include personally identifiable information such as name, address, phone number or email address. If you are a registered user of the Trust’s website, the Trust or their service providers or third party firms engaged by the Trust or their service providers may collect or share information submitted by you, which may include personally identifiable information. This information can be useful to the Trust when assessing and offering services and website features. You can change your cookie preferences by changing the setting on your web browser to delete or reject cookies. If you delete or reject cookies, some website pages may not function properly. The Trust does not look for web browser “do not track” requests.

CHANGES TO THE PRIVACY POLICY

From time to time, the Trust may update or revise this privacy policy. If there are changes to the terms of this privacy policy, documents containing the revised policy on the relevant website will be updated.

¹ Amended as of February 15, 2017.

² PIMCO Investments LLC (“PI”) serves as the Trust’s distributor. This Privacy Policy applies to the activities of PI to the extent that PI regularly effects or engages in transactions with or for a Trust shareholder who is the record owner of such shares. For purposes of this Privacy Policy, references to “the Trust” shall include PI when acting in this capacity.

³ When distributing this Policy, the Trust may combine the distribution with any similar distribution of its investment adviser’s privacy policy. The distributed, combined policy may be written in the first person (i.e., by using “we” instead of “the Trust”).

ANNUAL REPORT DECEMBER 31, 2018 59

Approval of Investment Advisory Contract and Other Agreements

Approval of Renewal of the Amended and Restated Investment Advisory Contract, Supervision and Administration Agreement and Amended and Restated Asset Allocation Sub-Advisory Agreement

At a meeting held on August 20-21, 2018, the Board of Trustees (the “Board”) of PIMCO Variable Insurance Trust (the “Trust”), including the Trustees who are not “interested persons” of the Trust under the Investment Company Act of 1940, as amended (the “Independent Trustees”), considered and unanimously approved the renewal of the Amended and Restated Investment Advisory Contract (the “Investment Advisory Contract”) between the Trust, on behalf of each of the Trust’s series (the “Portfolios”), and Pacific Investment Management Company LLC (“PIMCO”) for an additional one-year term through August 31, 2019. The Board also considered and unanimously approved the renewal of the Supervision and Administration Agreement (together with the Investment Advisory Contract, the “Agreements”) between the Trust, on behalf of the Portfolios, and PIMCO for an additional one-year term through August 31, 2019. In addition, the Board considered and unanimously approved the renewal of the Amended and Restated Asset Allocation Sub-Advisory Agreement (the “Asset Allocation Agreement”) between PIMCO, on behalf of PIMCO All Asset Portfolio and PIMCO All Asset All Authority Portfolio, each a series of the Trust, and Research Affiliates, LLC (“Research Affiliates”) for an additional one-year term through August 31, 2019.

The information, material factors and conclusions that formed the basis for the Board’s approvals are summarized below.

1. INFORMATION RECEIVED

(a) Materials Reviewed:  During the course of the past year, the Trustees received a wide variety of materials relating to the services provided by PIMCO and Research Affiliates to the Trust. At each of its quarterly meetings, the Board reviewed the Portfolios’ investment performance and a significant amount of information relating to Portfolio operations, including shareholder services, valuation and custody, the Portfolios’ compliance program and other information relating to the nature, extent and quality of services provided by PIMCO and Research Affiliates to the Trust and each of the Portfolios, as applicable. In considering whether to approve the renewal of the Agreements and the Asset Allocation Agreement, the Board reviewed additional information, including, but not limited to, comparative industry data with regard to investment performance, advisory and supervisory and administrative fees and expenses, financial information for PIMCO and, where relevant, Research Affiliates, information regarding the profitability to PIMCO of its relationship with the Portfolios, information about the personnel providing investment management services, other advisory services and supervisory and administrative services to the Portfolios, and information about the fees

charged and services provided to other clients with similar investment mandates as the Portfolios, where applicable. In addition, the Board reviewed materials provided by counsel to the Trust and the Independent Trustees, which included, among other things, memoranda outlining legal duties of the Board in considering the renewal of the Agreements and the Asset Allocation Agreement.

(b) Review Process:  In connection with considering the renewal of the Agreements and the Asset Allocation Agreement, the Board reviewed written materials prepared by PIMCO and, where applicable, Research Affiliates in response to requests from counsel to the Trust and the Independent Trustees encompassing a wide variety of topics. The Board requested and received assistance and advice regarding, among other things, applicable legal standards from counsel to the Trust and the Independent Trustees, and reviewed comparative fee and performance data prepared at the Board’s request by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company performance information and fee and expense data. The Board received information on matters related to the Agreements and the Asset Allocation Agreement and met both as a full Board and in a separate session of the Independent Trustees, without management present, at the August 20-21, 2018 meeting. The Independent Trustees also conducted in-person meetings with counsel to the Trust and the Independent Trustees, including one on July 18, 2018, to discuss the Lipper Report, as defined below, and certain aspects of the 2018 15(c) materials presented and other matters deemed relevant to their consideration of the renewal of the Agreements and the Asset Allocation Agreement. In connection with its review of the Agreements, the Board received comparative information on the performance and the fees and expenses of other peer group funds and share classes. In addition, the Independent Trustees requested and received supplemental information.

The approval determinations were made on the basis of each Trustee’s business judgment after consideration and evaluation of all the information presented. Individual Trustees may have given different weights to certain factors and assigned various degrees of materiality to information received in connection with the approval process. In deciding to approve the renewal of the Agreements and the Asset Allocation Agreement, the Board did not identify any single factor or particular information that, in isolation, was controlling. The discussion below is intended to summarize the broad factors and information that figured prominently in the Board’s consideration of the renewal of the Agreements and the Asset Allocation Agreement, but is not intended to summarize all of the factors considered by the Board.

2. NATURE, EXTENT AND QUALITY OF SERVICES

(a) PIMCO, Research Affiliates, their Personnel, and Resources:  The Board considered the depth and quality of PIMCO’s investment management process, including: the experience, capability and integrity

60 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

of its senior management and other personnel; the overall financial strength and stability of its organization; and the ability of its organizational structure to address changes in the Portfolios’ asset levels. The Board also considered the various services in addition to portfolio management that PIMCO provides under the Investment Advisory Contract. The Board noted that PIMCO makes available to its investment professionals a variety of resources and systems relating to investment management, compliance, trading, performance and portfolio accounting. The Board also noted PIMCO’s commitment to enhancing and investing in its global infrastructure, technology capabilities, risk management processes and the specialized talent needed to stay at the forefront of the competitive investment management industry and to strengthen its ability to deliver services under the Agreements. The Board considered PIMCO’s policies, procedures and systems reasonably designed to assure compliance with applicable laws and regulations and its commitment to further developing and strengthening these programs, its oversight of matters that may involve conflicts of interest between the Portfolios’ investments and those of other accounts managed by PIMCO, and its efforts to keep the Trustees informed about matters relevant to the Portfolios and their shareholders. The Board also considered PIMCO’s continuous investment in new disciplines and talented personnel, which has enhanced PIMCO’s services to the Portfolios and has allowed PIMCO to introduce innovative new portfolios over time. In addition, the Board considered the nature and quality of services provided by PIMCO to the wholly-owned subsidiaries of certain applicable Portfolios.

The Trustees considered that PIMCO has continued to strengthen the process it uses to actively manage counterparty risk and to assess the financial stability of counterparties with which the Portfolios do business, to manage collateral and to protect Portfolios from an unforeseen deterioration in the creditworthiness of trading counterparties. The Trustees noted that, consistent with its fiduciary duty, PIMCO executes transactions through a competitive best execution process and uses only those counterparties that meet its stringent and monitored criteria. The Trustees considered that PIMCO’s collateral management team utilizes a counterparty risk system to analyze portfolio level exposure and collateral being exchanged with counterparties.

In addition, the Trustees considered new services and service enhancements that PIMCO has implemented since the Board renewed the Agreements in 2017, including, but not limited to upgrading the global network and infrastructure to support trading and risk management systems; enhancing and continuing to expand capabilities within the pre-trade compliance platform; enhancing flexible client reporting capabilities to support increased differentiation within local markets; developing new application and database frameworks to support new trading strategies; expanding proprietary applications

suites to enrich capabilities across Compliance, Analytics, Risk Management, Client Reporting, Attribution and Customer Relationship management; continuing investment in its enterprise risk management function, including PIMCO’s cybersecurity program and global business continuity functions; oversight by the Americas Fund Oversight Committee, which provides senior-level oversight and supervision focused on new and ongoing fund-related business opportunities; engaging a third party service provider to implement the SEC reporting modernization regime; expanding the Fund Treasurer’s Office; enhancing a proprietary application to provide portfolio managers with more timely and high quality income reporting; developing a global tax management application that will enable investment professionals to access foreign market and security tax information on a real-time basis; enhancing reporting of tax reporting for portfolio managers for income products with improved transparency on tax factors impacting income generation and dividend yield; upgrading a proprietary application to allow shareholder subscription and redemption data to pass to portfolio managers more quickly and efficiently; and continuing to expand the pricing portal and the proprietary performance reconciliation tool.

Similarly, the Board considered the asset allocation services provided by Research Affiliates to the PIMCO All Asset Portfolio and PIMCO All Asset All Authority Portfolio. The Board further considered PIMCO’s oversight of Research Affiliates in connection with Research Affiliates providing asset allocation services to the Asset Portfolio and All Asset All Authority Portfolio. The Board also considered the depth and quality of Research Affiliates’ investment management and research capabilities, the experience and capabilities of its portfolio management personnel and the overall financial strength of the organization.

Ultimately, the Board concluded that the nature, extent and quality of services provided or procured by PIMCO under the Agreements and provided by Research Affiliates under the Asset Allocation Agreement are likely to continue to benefit the Portfolios and their respective shareholders, as applicable.

(b) Other Services:  The Board also considered the nature, extent and quality of supervisory and administrative services provided by PIMCO to the Portfolios under the Supervision and Administration Agreement.

The Board considered the terms of the Supervision and Administration Agreement, under which the Trust pays for the supervisory and administrative services provided pursuant to that agreement under what is essentially an all-in fee structure (the “unified fee”). In return, PIMCO provides or procures certain supervisory and administrative services and bears the costs of various third party services required by the Portfolios, including audit, custodial, portfolio accounting, legal, transfer agency, sub-accounting and printing costs. The Board noted that the scope and complexity, as well as the costs, of the supervisory

ANNUAL REPORT DECEMBER 31, 2018 61

Approval of Investment Advisory Contract and Other Agreements (Cont.)

and administrative services provided by PIMCO under the Supervision and Administration Agreement continue to increase. The Board considered PIMCO’s provision of supervisory and administrative services and its supervision of the Trust’s third party service providers to assure that these service providers continue to provide a high level of service relative to alternatives available in the market.

Ultimately, the Board concluded that the nature, extent and quality of the services provided by PIMCO has benefited, and will likely continue to benefit, the Portfolios and their shareholders.

3. INVESTMENT PERFORMANCE

The Board reviewed information from PIMCO concerning the Portfolios’ performance, as available, over short- and long-term periods ended March 31, 2018 and other performance data, as available, over short- and long-term periods ended June 30, 2018 (the “PIMCO Report”) and from Broadridge concerning the Portfolios’ performance, as available, over short- and long-term periods ended March 31, 2018 (the “Lipper Report”).

The Board considered information regarding both the short- and long-term investment performance of each Portfolio relative to its peer group and relevant benchmark index as provided to the Board in advance of each of its quarterly meetings throughout the year, including the PIMCO Report and Lipper Report, which were provided in advance of the August 20-21, 2018 meeting. The Trustees noted that many of the Portfolios outperformed their respective Lipper medians on a net-of-fees basis over the three-, five- and ten-year periods ended March 31, 2018. The Board also noted that, as of March 31, 2018, the Administrative Class of 72%, 35% and 73% of the Portfolios outperformed their respective Lipper category median on a net-of-fees basis over the three-, five- and ten-year periods, respectively. The Trustees considered that other classes of each Portfolio would have substantially similar performance to that of the Administrative Class of the relevant Portfolio on a relative basis because all of the classes are invested in the same portfolio of investments and that differences in performance among classes could principally be attributed to differences in the supervisory and administrative fees and distribution and servicing expenses of each class. The Board also considered that the investment objectives of certain of the Portfolios may not always be identical to those of the other funds in their respective peer groups and that the Lipper categories do not: separate funds based upon maturity or duration; account for the applicable Portfolios’ hedging strategies; distinguish between enhanced index and actively managed equity strategies; include as many subsets as the Portfolios offer (i.e., Portfolios may be placed in a “catch-all” Lipper category to which they do not properly belong); or account for certain fee waivers. The Board noted that, due to these differences, performance comparisons between certain of the Portfolios and their so-called peers may not be

particularly relevant to the consideration of Portfolio performance but found the comparative information supported its overall evaluation.

The Board noted that performance for a majority of the Portfolios has been mixed compared to their respective benchmark indexes over the five-year period ended March 31, 2018. The Board noted that, as of March 31, 2018, 70%, 23% and 92% of the Trust’s assets (based on Administrative Class performance) outperformed their respective benchmarks on a net-of-fees basis over the three-, five- and ten-year periods, respectively. The Board also discussed actions that have been taken by PIMCO to attempt to improve performance and took note of PIMCO’s plans to monitor performance going forward.

The Board considered PIMCO’s discussion of the intensive nature of managing bond funds, noting that it requires the management of a number of factors, including: varying maturities; prepayments; collateral management; counterparty management; pay-downs; credit and corporate events; workouts; derivatives; net new issuance in the bond market; and decreased market maker inventory levels. The Board noted that in addition to managing these factors, PIMCO must also balance risk controls and strategic positions in each portfolio it manages, including the Portfolios. Despite these challenges, the Board noted PIMCO’s ability to generate non-market correlated excess performance for its clients over time, including the Trust.

The Board ultimately concluded, within the context of all of its considerations in connection with the Agreements, that PIMCO’s performance record and process in managing the Portfolios indicates that its continued management is likely to benefit the Portfolios and their shareholders, and merits the approval of the renewal of the Agreements.

4. ADVISORY FEES, SUPERVISORY AND ADMINISTRATIVE FEES AND TOTAL EXPENSES

The Board considered that PIMCO seeks to price new funds and classes to scale. PIMCO reported to the Board that, in proposing fees for any Portfolio or class of shares, it considers a number of factors, including, but not limited to, the type and complexity of the services provided, the cost of providing services, the risk assumed by PIMCO in the development of products and the provision of services and the competitive marketplace for financial products. Fees charged to or proposed for different Portfolios for advisory services and supervisory and administrative services may vary in light of these various factors. The Board considered that portfolio pricing generally is not driven by comparison to passively-managed products.

In addition, PIMCO reported to the Board that it periodically reviews the fees charged to the Portfolios. The Board noted that, based upon this review, PIMCO may propose advisory fee or supervisory and administrative fee changes where (i) a Portfolio’s long-term performance warrants additional consideration; (ii) there is a notable aid to market

62 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

position; (iii) a Portfolio’s fee does not reflect the current level of supervision or administrative fees provided to the Portfolio; or (iv) PIMCO would like to change a Portfolio’s overall strategic positioning.

The Board reviewed the advisory fees, supervisory and administrative fees and total expenses of the Portfolios (each as a percentage of average net assets) and compared such amounts with the average and median fee and expense levels of other similar funds. The Board also reviewed information relating to the sub-advisory fees paid to Research Affiliates with respect to applicable Portfolios, taking into account that PIMCO compensates Research Affiliates from the advisory fees paid by such Portfolios to PIMCO. With respect to advisory fees, the Board reviewed data from Broadridge that compared the average and median advisory fees of other funds in a “Peer Group” of comparable funds, as well as the universe of other similar funds. The Board noted that a number of Portfolios have total expense ratios that fall below the average and median expense ratios in their Peer Group and Lipper universe. In addition, the Board considered fee waivers in place for certain of the Portfolios and also noted the fee waivers in place with respect to the advisory fee and supervisory and administrative fee that might result from investments by applicable Portfolios in their respective wholly-owned subsidiaries. The Board also considered that PIMCO reviews the Portfolios’ fee levels and carefully considers changes where appropriate.

The Board also reviewed data comparing the Portfolios’ advisory fees to the standard and negotiated fee rates PIMCO charges to separate accounts, collective investment trusts and sub-advised clients with similar investment strategies. In cases where the fees for other clients were lower than those charged to the Portfolios, the Trustees noted that the differences in fees were attributable to various factors, including, but not limited to, differences in the advisory and other services provided by PIMCO to the Portfolios, differences in the number or extent of the services provided by PIMCO to the Portfolios, the manner in which similar portfolios may be managed, different requirements with respect to liquidity management and the implementation of other regulatory requirements, and the fact that separate accounts may have other contractual arrangements or arrangements across PIMCO strategies that justify different levels of fees. The Board considered that, with respect to collective investment trusts, PIMCO performs fewer or less extensive services because collective investment trusts are generally exempt from SEC regulation; investors in a collective investment trust may receive shareholder services from a trustee bank, rather than PIMCO; collective investment trusts have less regulatory disclosure; and the management structure of collective investment trusts differs from that of funds. The Trustees also considered that PIMCO faces increased entrepreneurial, legal and regulatory risk in sponsoring and managing mutual funds and ETFs as compared to separate accounts, external sub-advised funds or other investment products.

Regarding advisory fees charged by PIMCO in its capacity as sub-adviser to third party/unaffiliated funds, the Trustees took into account that such fees may be lower than the fees charged by PIMCO to serve as adviser to the Portfolios. The Trustees also took into account that there are various reasons for any such differences in fees, including, but not limited to, the fact that PIMCO may be subject to varying levels of entrepreneurial risk and regulatory requirements, differing legal liabilities on a contract-by-contract basis and different servicing requirements when PIMCO does not serve as the sponsor of a fund and is not principally responsible for all aspects of a fund’s investment program and operations as compared to when PIMCO serves as investment adviser and sponsor.

The Board considered the Portfolios’ supervisory and administrative fees, comparing them to similar funds in the report supplied by Broadridge. The Board also considered that as the Portfolios’ business has become increasingly complex and the number of Portfolios has grown over time, PIMCO has provided an increasingly broad array of fund supervisory and administrative functions. In addition, the Board considered the Trust’s unified fee structure, under which the Trust pays for the supervisory and administrative services it requires for one set fee. In return for this unified fee, PIMCO provides or procures supervisory and administrative services and bears the costs of various third party services required by the Portfolios, including audit, custodial, portfolio accounting, legal, transfer agency, sub-accounting and printing costs. The Board further considered that many other funds pay for comparable services separately, and thus it is difficult to directly compare the Trust’s unified supervisory and administrative fees with the fees paid by other funds for administrative services alone. The Board also considered that the unified supervisory and administrative fee leads to Portfolio fees that are fixed over the contract period, rather than variable. The Board noted that, although the unified fee structure does not have breakpoints, it implicitly reflects economies of scale by fixing the absolute level of Portfolio fees at competitive levels over the contract period even if the Portfolios’ operating costs rise when assets remain flat or decrease. Other factors the Board considered in assessing the unified fee include PIMCO’s approach of pricing Portfolios to scale at inception and reinvesting in other important areas of the business that support the Portfolios. The Board considered that the Portfolios’ unified fee structure meant that fees were not impacted by recent outflows in certain Portfolios, unlike funds without a unified fee structure, which may see increased expense ratios when fixed costs, such as service provider costs, are passed through to a smaller asset base. The Board considered historical advisory and supervisory and administrative fee reductions implemented for different Portfolios and classes, noting that the unified fee can be increased or decreased in subsequent contractual periods and is subject to the periodic reviews discussed above. The Board noted that, with few exceptions, PIMCO

ANNUAL REPORT DECEMBER 31, 2018 63

Approval of Investment Advisory Contract and Other Agreements (Cont.)

has generally maintained Portfolio fees at the same level as implemented when the unified fee was adopted, and has reduced fees for a number of Portfolios in prior years. The Board concluded that the Portfolios’ supervisory and administrative fees were reasonable in relation to the value of the services provided, including the services provided to different classes of shareholders, and that the expenses assumed contractually by PIMCO under the Supervision and Administration Agreement represent, in effect, a cap on overall Portfolio fees during the contractual period, which is beneficial to the Portfolios and their shareholders.

The Board considered the Portfolios’ total expenses and discussed with PIMCO those Portfolios and/or classes of Portfolios that had above median total expenses. The Board noted that many of the Portfolios are unique products that have few peers, if any, and cannot easily be grouped with comparable funds. Upon comparing the Portfolios’ total expenses to other funds in the “Peer Groups” provided by Broadridge, the Board found total expenses of each Portfolio to be reasonable.

The Trustees also considered the advisory fees charged to the Portfolios that operate as funds of funds (the “Funds of Funds”) and the advisory services provided in exchange for such fees. The Trustees determined that such services were in addition to the advisory services provided to the underlying funds in which the Funds of Funds may invest and, therefore, such services were not duplicative of the advisory services provided to the underlying funds. The Board also considered the various fee waiver agreements in place for the Funds of Funds. The Board noted that PIMCO is continuing waivers for these Funds of Funds, as well as for certain other Portfolios of the Trust.

Based on the information presented by PIMCO, Research Affiliates and Broadridge, members of the Board determined, in the exercise of their business judgment, that the level of the advisory fees and supervisory and administrative fees charged by PIMCO under the Agreements, as well as the total expenses of each Portfolio, after the proposals to decrease the management fee, are reasonable.

5. ADVISER COSTS, LEVEL OF PROFITS AND ECONOMIES OF SCALE

The Board reviewed information regarding PIMCO’s costs of providing services to the Funds as a whole, as well as the resulting level of profits to PIMCO under both the adjusted asset profitability method and the profit and loss profitability method, which were each utilized to calculate profitability. To the extent applicable, the Board also reviewed information regarding the portion of a Portfolio’s advisory fee retained by PIMCO, following the payment of sub-advisory fees to Research Affiliates, with respect to the Portfolio. Additionally, the Board noted that profit margins with respect to the Trust shows that the Trust is profitable, although less so than PIMCO Funds due to payments made

by PIMCO to participating insurance companies. The Board further noted PIMCO’s engagement of a third party to review and to make recommendations regarding PIMCO’s processes supporting its profitability estimation materials. The Board also noted that it had received information regarding the structure and manner in which PIMCO’s investment professionals were compensated, and PIMCO’s view of the relationship of such compensation to the attraction and retention of quality personnel. The Board considered PIMCO’s need to invest in global infrastructure, technology capabilities, risk management processes and qualified personnel to reinforce and offer new services and to accommodate changing regulatory requirements.

With respect to potential economies of scale, the Board noted that PIMCO shares the benefits of economies of scale with the Portfolios and their shareholders in a number of ways, including investing in portfolio and trade operations management, firm technology, middle and back office support, legal and compliance, and fund administration logistics, senior management supervision, governance and oversight of those services, and through fee reductions or waivers, the pricing of Portfolios to scale from inception, and the enhancement of services provided to the Portfolios in return for fees paid. The Board reviewed the history of the Portfolios’ fee structure. The Board considered that the Portfolios’ unified fee rates had been set competitively and/or priced to scale from inception, had been held steady during the contractual period at that scaled competitive rate for most Portfolios as assets grew, or as assets declined in the case of some Portfolios, and continued to be competitive compared with peers. The Board also considered that the unified fee is a transparent means of informing a Portfolio’s shareholders of the fees associated with the Portfolio, and that the Portfolio bears certain expenses that are not covered by the advisory fee or the unified fee. The Board further considered the challenges that arise when managing large funds, which can result in certain “diseconomies” of scale and noted that PIMCO has continued to reinvest in many areas of the business to support the Portfolios.

The Trustees considered that the unified fee has provided inherent economies of scale because a Portfolio maintains competitive fixed fees over the annual contract period even if the particular Portfolio’s assets decline and/or operating costs rise. The Trustees further considered that, in contrast, breakpoints may be a proxy for charging higher fees on lower asset levels and that when a fund’s assets decline, breakpoints may reverse, which causes expense ratios to increase. The Trustees also considered that, unlike the Portfolios’ unified fee structure, funds with “pass through” administrative fee structures may experience increased expense ratios when fixed dollar fees are charged against declining fund assets. The Trustees also considered that the unified fee protects shareholders from a rise in operating costs that may result from, among other things, PIMCO’s investments in various business enhancements and infrastructure, including those referenced above. The Trustees noted that PIMCO’s investments in these areas are extensive.

64 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

The Board concluded that the Portfolios’ cost structures were reasonable and that PIMCO is appropriately sharing economies of scale, if any, through the Portfolios’ unified fee structure, generally pricing Portfolios to scale at inception and reinvesting in its business to provide enhanced and expanded services to the Portfolios and their shareholders.

6. ANCILLARY BENEFITS

The Board considered other benefits realized by PIMCO and its affiliates as a result of PIMCO’s relationship with the Trust. Such benefits may include possible ancillary benefits to PIMCO’s institutional investment management business due to the reputation and market penetration of the Trust or third party service providers’ relationship-level fee concessions, which decrease fees paid by PIMCO. The Board also considered that affiliates of PIMCO provide distribution and/or shareholder services to the Portfolios and their shareholders, for which they may be compensated through distribution and servicing fees paid pursuant to the Portfolios’ Rule 12b-1 plans or otherwise. The Board reviewed PIMCO’s soft dollar policies and procedures, noting that while PIMCO has the authority to receive the benefit of research provided by broker-dealers executing portfolio transactions on behalf of the Portfolios, it has adopted a policy not to enter into contractual soft dollar arrangements.

7. CONCLUSIONS

Based on their review, including their comprehensive consideration and evaluation of each of the broad factors and information summarized above, the Independent Trustees and the Board as a whole concluded that the nature, extent and quality of the services rendered to the Portfolios by PIMCO and Research Affiliates supported the renewal of the Agreements and the Asset Allocation Agreement. The Independent Trustees and the Board as a whole concluded that the Agreements and the Asset Allocation Agreement continued to be fair and reasonable to the Portfolios and their shareholders, that the Portfolios’ shareholders received reasonable value in return for the fees paid to PIMCO by the Portfolios under the Agreements and the fees paid to Research Affiliates by PIMCO under the Asset Allocation Agreement, and that the renewal of the Agreements and the Asset Allocation Agreement was in the best interests of the Portfolios and their shareholders.

ANNUAL REPORT DECEMBER 31, 2018 65

General Information

Investment Adviser and Administrator

Pacific Investment Management Company LLC

650 Newport Center Drive

Newport Beach, CA 92660

Distributor

PIMCO Investments LLC

1633 Broadway

New York, NY 10019

Custodian

State Street Bank and Trust Company

801 Pennsylvania Avenue

Kansas City, MO 64105

Transfer Agent

DST Asset Manager Solutions, Inc.

430 W 7th Street STE 219024

Kansas City, MO 64105-1407

Legal Counsel

Dechert LLP

1900 K Street, N.W.

Washington, D.C. 20006

Independent Registered Public Accounting Firm

PricewaterhouseCoopers LLP

1100 Walnut Street, Suite 1300

Kansas City, MO 64106

This report is submitted for the general information of the shareholders of the Portfolio listed on the Report cover.

pimco.com/pvit

PVIT11AR_123118

PIMCO VARIABLE INSURANCE TRUST

Annual Report

December 31, 2018

PIMCO High Yield Portfolio

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, you may not be receiving paper copies of the Portfolio’s shareholder reports from the insurance company that offers your contract unless you specifically request paper copies from the insurance company or from your financial intermediary. Instead, the shareholder reports will be made available on a website, and the insurance company will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the insurance company electronically by following the instructions provided by the insurance company.

You may elect to receive all future reports in paper free of charge from the insurance company. You should contact the insurance company if you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all portfolio companies available under your contract at the insurance company.

Table of Contents

	Page
Chairman’s Letter		2
Important Information About the PIMCO High Yield Portfolio		4
Portfolio Summary		6
Expense Example		7
Financial Highlights		8
Statement of Assets and Liabilities		10
Statement of Operations		11
Statements of Changes in Net Assets		12
Schedule of Investments		13
Notes to Financial Statements		22
Report of Independent Registered Public Accounting Firm		39
Glossary		40
Federal Income Tax Information		41
Management of the Trust		42
Privacy Policy		44
Approval of Investment Advisory Contract and Other Agreements		45

This material is authorized for use only when preceded or accompanied by the current PIMCO Variable Insurance Trust (the “Trust”) prospectus for the Portfolio. (The variable product prospectus may be obtained by contacting your Investment Consultant.)

Chairman’s Letter

Dear PIMCO Variable Insurance Trust Shareholder,

Following this letter is the PIMCO Variable Insurance Trust Annual Report, which covers the 12-month reporting period ended December 31, 2018. On the subsequent pages you will find specific details regarding investment results and discussion of the factors that most affected performance during the reporting period.

For the 12-month reporting period ended December 31, 2018

The U.S. economy continued to expand during the reporting period. Looking back, U.S. gross domestic product (“GDP”) grew at an annual pace of 2.2% during the first quarter of 2018. During the second quarter of 2018, GDP growth rose to an annual pace of 4.2%, the strongest since the third quarter of 2014. GDP then expanded at an annual pace of 3.4% during the third quarter of the year. Finally, the Commerce Department’s initial reading for fourth-quarter 2018 GDP has been delayed due to the partial government shutdown.

The Federal Reserve (the “Fed”) continued to normalize monetary policy during the reporting period. During its meetings that concluded in March, June, September and December 2018, the Fed raised the federal funds rate in 0.25% increments. The Fed’s December rate hike pushed the federal funds rate to a range between 2.25% and 2.50%. In addition, the Fed continued to reduce its balance sheet during the reporting period.

Economic activity outside the U.S. initially accelerated during the reporting period, but moderated as it progressed. Against this backdrop, the European Central Bank (the “ECB”) and the Bank of Japan largely maintained their highly accommodative monetary policies, while other central banks took a more hawkish stance. The Bank of England raised rates at its meeting in August 2018 and the Bank of Canada raised rates twice during the reporting period. Meanwhile, the ECB ended its quantitative easing program in December 2018, but indicated that it does not expect to raise interest rates “at least through the summer of 2019.”

The U.S. Treasury yield curve flattened during the reporting period as short-term rates moved up more than longer-term rates. In our view, the increase in rates at the short end of the yield curve was mostly due to Fed interest rate increases. The yield on the benchmark 10-year U.S. Treasury note was 2.69% at the end of the reporting period, up from 2.40% on December 31, 2017. U.S. Treasuries, as measured by the Bloomberg Barclays U.S. Treasury Index, returned 0.86% over the 12 months ended December 31, 2018. Meanwhile, the Bloomberg Barclays U.S. Aggregate Bond Index, a widely used index of U.S. investment grade bonds, returned 0.01% over the period. Riskier fixed income asset classes, including high yield corporate bonds and emerging market debt, generated weak results versus the broad U.S. market. The ICE BofAML U.S. High Yield Index returned -2.27% over the reporting period, whereas emerging market external debt, as represented by the JPMorgan Emerging Markets Bond Index (EMBI) Global, returned -4.61% over the reporting period. Emerging market local bonds, as represented by the JPMorgan Government Bond Index-Emerging Markets Global Diversified Index (Unhedged), returned -6.21% over the period.

Global equities produced poor results during the reporting period. U.S. equities moved sharply higher over the first nine months of the period. We believe this rally was driven by a number of factors, including corporate profits that often exceeded expectations. However, U.S. equities fell sharply during the fourth quarter of 2018. We believe this was triggered by a number of factors, including signs of moderating global growth, concerns over future Fed rate hikes, the ongoing trade dispute between the U.S. and China and the partial U.S. government shutdown. All told, U.S. equities, as represented by the S&P 500 Index, returned -4.38% during the reporting period. Elsewhere, emerging market equities, as measured by the MSCI Emerging Markets Index, returned -14.58% during the reporting period, whereas global equities, as represented by the MSCI World Index, returned -8.71%. Elsewhere, Japanese equities, as represented by the Nikkei 225 Index (in JPY), returned -10.39% during the reporting period and European equities, as represented by the MSCI Europe Index (in EUR), returned -10.57%.

Commodity prices fluctuated and generally declined during the reporting period. When the reporting period began, West Texas crude oil was approximately $65 a barrel, but by the end it was roughly $45 a barrel. This was driven in

2 PIMCO VARIABLE INSURANCE TRUST

part by increased supply and declining global demand. Elsewhere, gold and copper prices also moved lower during the reporting period.

Finally, during the reporting period the foreign exchange markets experienced periods of volatility, due in part to signs of decoupling economic growth and central bank policies, along with a number of geopolitical events. The U.S. dollar produced mixed results against other major currencies during the reporting period. For example, the U.S. dollar appreciated 4.71% and 5.90% versus the euro and the British pound, respectively, whereas the U.S. dollar depreciated 2.66% versus the yen during the reporting period.

Thank you for the assets you have placed with us. We deeply value your trust, and we will continue to work diligently to meet your broad investment needs.

Sincerely,     Brent R. Harris Chairman of the Board,
PIMCO Variable Insurance Trust  

Past performance is no guarantee of future results. Unless otherwise noted, index returns reflect the reinvestment of income distributions and capital gains, if any, but do not reflect fees, brokerage commissions or other expenses of investing. It is not possible to invest directly in an unmanaged index.

ANNUAL REPORT DECEMBER 31, 2018 3

Important Information About the PIMCO High Yield Portfolio

PIMCO Variable Insurance Trust (the “Trust”) is an open-end management investment company that includes the PIMCO High Yield Portfolio (the “Portfolio”). The Portfolio is only available as a funding vehicle under variable life insurance policies or variable annuity contracts issued by insurance companies (“Variable Contracts”). Individuals may not purchase shares of the Portfolio directly. Shares of the Portfolio also may be sold to qualified pension and retirement plans outside of the separate account context.

We believe that bond funds have an important role to play in a well-diversified investment portfolio. It is important to note, however, that in an environment where interest rates may trend upward, rising rates would negatively impact the performance of most bond funds, and fixed income securities and other instruments held by the Portfolio are likely to decrease in value. A wide variety of factors can cause interest rates to rise (e.g., central bank monetary policies, inflation rates, general economic conditions, etc.). In addition, changes in interest rates can be sudden and unpredictable, and there is no guarantee that management will anticipate such movement accurately. The Portfolio may lose money as a result of movements in interest rates.

As of the date of this report, interest rates in the U.S. and many parts of the world, including certain European countries, are at or near historically low levels. Thus, the Portfolio currently faces a heightened level of interest rate risk, especially since the Fed has ended its quantitative easing program and has begun, and may continue, to raise interest rates. To the extent the Fed continues to raise interest rates, there is a risk that rates across the financial system may rise. Further, while bond markets have steadily grown over the past three decades, dealer inventories of corporate bonds are near historic lows in relation to market size. As a result, there has been a significant reduction in the ability of dealers to “make markets.”

Bond funds and individual bonds with a longer duration (a measure used to determine the sensitivity of a security’s price to changes in interest rates) tend to be more sensitive to changes in interest rates, usually making them more volatile than securities or funds with shorter durations. All of the factors mentioned above, individually or collectively, could lead to increased volatility and/or lower liquidity in the fixed income markets or negatively impact the Portfolio’s performance or cause the Portfolio to incur losses. As a result, the Portfolio may experience increased shareholder redemptions, which, among other things, could further reduce the net assets of the Portfolio.

The Portfolio may be subject to various risks as described in the Portfolio’s prospectus and in the Principal Risks in the Notes to Financial Statements.

The geographical classification of foreign (non-U.S.) securities in this report are classified by the country of incorporation of a holding. In certain instances, a security’s country of incorporation may be different from its country of economic exposure.

The United States presidential administration’s enforcement of tariffs on goods from other countries, with a focus on China, has contributed to international trade tensions and may impact portfolio securities.

The United Kingdom’s decision to leave the European Union may impact Portfolio returns. This decision may cause substantial volatility in foreign exchange markets, lead to weakness in the exchange rate of the British pound, result in a sustained period of market uncertainty, and destabilize some or all of the other European Union member countries and/or the Eurozone.

On the Portfolio Summary page in this Shareholder Report, the Average Annual Total Return table and Cumulative Returns chart measure performance assuming that any dividend and capital gain distributions were reinvested. The Cumulative Returns chart reflects only Administrative Class performance. Performance may vary by share class based on each class’s expense ratios. The Portfolio measures its performance against at least one broad-based securities market index (“benchmark index”). The benchmark index does not take into account fees, expenses, or taxes. The Portfolio’s past performance, before and after taxes, is not necessarily an indication of how the Portfolio will perform in the future. There is no assurance that the Portfolio, even if the Portfolio has experienced high or unusual performance for one or more periods, will experience similar levels of performance in the future. High performance is defined as a significant increase in either 1) the Portfolio’s total return in excess of that of the Portfolio’s benchmark between reporting periods or 2) the Portfolio’s total return in excess of the Portfolio’s historical returns between reporting periods. Unusual performance is defined as a significant change in the Portfolio’s performance as compared to one or more previous reporting periods.

The following table discloses the inception dates of the Portfolio and its respective share classes along with the Portfolio’s diversification status as of period end:

Portfolio Name	Portfolio Inception		Institutional Class		Administrative Class		Advisor Class		Diversification Status
PIMCO High Yield Portfolio		04/30/98		07/01/02		04/30/98		03/31/06		Diversified

4 PIMCO VARIABLE INSURANCE TRUST

An investment in the Portfolio is not a bank deposit and is not guaranteed or insured by the Federal Deposit Insurance Corporation (“FDIC”) or any other government agency. It is possible to lose money on investments in the Portfolio.

The Trustees are responsible generally for overseeing the management of the Trust. The Trustees authorize the Trust to enter into service agreements with the Adviser, the Distributor, the Administrator and other service providers in order to provide, and in some cases authorize service providers to procure through other parties, necessary or desirable services on behalf of the Trust and the Portfolio. Shareholders are not parties to or third-party beneficiaries of such service agreements. Neither this Portfolio’s prospectus nor summary prospectus, the Trust’s Statement of Additional Information (“SAI”) any contracts filed as exhibits to the Trust’s registration statement, nor any other communications, disclosure documents or regulatory filings (including this report) from or on behalf of the Trust or the Portfolio creates a contract between or among any shareholder of the Portfolio,

on the one hand, and the Trust, the Portfolio, a service provider to the Trust or the Portfolio, and/or the Trustees or officers of the Trust, on the other hand. The Trustees (or the Trust and its officers, service providers or other delegates acting under authority of the Trustees) may amend the most recent prospectus or use a new prospectus, summary prospectus or SAI with respect to the Portfolio or the Trust, and/or amend, file and/or issue any other communications, disclosure documents or regulatory filings, and may amend or enter into any contracts to which the Trust or the Portfolio is a party, and interpret the investment objective(s), policies, restrictions and contractual provisions applicable to the Portfolio, without shareholder input or approval, except in circumstances in which shareholder approval is specifically required by law (such as changes to fundamental investment policies) or where a shareholder approval requirement is specifically disclosed in the Trust’s then-current prospectus or SAI.

PIMCO has adopted written proxy voting policies and procedures (“Proxy Policy”) as required by Rule 206(4)-6 under the Investment Advisers Act of 1940, as amended. The Proxy Policy has been adopted by the Trust as the policies and procedures that PIMCO will use when voting proxies on behalf of the Portfolio. A description of the policies and procedures that PIMCO uses to vote proxies relating to portfolio securities of the Portfolio, and information about how the Portfolio voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, are available without charge, upon request, by calling the Trust at (888) 87-PIMCO, on the Portfolio’s website at www.pimco.com/pvit, and on the Securities and Exchange Commission’s (“SEC”) website at www.sec.gov.

The Trust files a complete schedule of the Portfolio’s holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. A copy of the Portfolio’s Form N-Q is available on the SEC’s website at www.sec.gov. A copy of the Portfolio’s Form N-Q is also available without charge, upon request, by calling the Trust at (888) 87-PIMCO and on the Portfolio’s website at www.pimco.com/pvit.

The SEC adopted a rule that, beginning in 2021, generally will allow shareholder reports to be delivered to investors by providing access to such reports online free of charge and by mailing a notice that the report is electronically available. Pursuant to the rule, investors may still elect to receive a complete shareholder report in the mail. Instructions for electing to receive paper copies of the Portfolio’s shareholder reports going forward may be found on the front cover of this report.

The SEC adopted amendments to certain disclosure requirements relating to open-end investment companies’ liquidity risk management programs. Effective December 1, 2019, large fund complexes will be required to include in their shareholder reports a discussion of their liquidity risk management programs’ operations over the past year.

ANNUAL REPORT DECEMBER 31, 2018 5

PIMCO High Yield Portfolio

Cumulative Returns Through December 31, 2018

$10,000 invested at the end of the month when the Portfolio’s Administrative Class commenced operations.

Allocation Breakdown as of 12/31/2018^†§

Corporate Bonds & Notes	90.6%
Short-Term Instruments‡	9.3%
Other	0.1%

^†  % of Investments, at value.

^§  Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.

^‡  Includes Central Funds Used for Cash Management Purposes.

Average Annual Total Return for the period ended December 31, 2018
		1 Year		5 Years		10 Years		Inception≈
	PIMCO High Yield Portfolio Institutional Class		(2.50)%		3.63%		9.21%		6.99%
	PIMCO High Yield Portfolio Administrative Class		(2.65)%		3.47%		9.05%		5.50%
	PIMCO High Yield Portfolio Advisor Class		(2.75)%		3.37%		8.94%		5.50%
	ICE BofAML U.S. High Yield, BB-B Rated, Constrained Index±		(2.04)%		3.88%		9.99%		5.95%	¨

All Portfolio returns are net of fees and expenses.

^≈ For class inception dates please refer to the Important Information.

^¨ Average annual total return since 04/30/1998.

^± ICE BofAML U.S. High Yield, BB-B Rated, Constrained Index tracks the performance of BB-B Rated U.S. Dollar-denominated corporate bonds publicly issued in the U.S. domestic market. Qualifying bonds are capitalization-weighted provided the total allocation to an individual issuer (defined by Bloomberg tickers) does not exceed 2%. Issuers that exceed the limit are reduced to 2% and the face value of each of their bonds is adjusted on a pro-rata basis. Similarly, the face value of bonds of all other issuers that fall below the 2% cap are increased on a pro-rata basis. Prior to September 25th, 2009, the ICE BofAML Indices were known as the Merrill Lynch Indices.

It is not possible to invest directly in an unmanaged index.

Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. The Portfolio’s performance does not reflect the deduction of additional charges and expenses imposed in connection with investing in Variable Contracts, which will reduce returns. Differences in the Portfolio’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the prices of individual positions (which may be sourced from different pricing vendors or other sources) used by the Portfolio and the index. For performance current to the most recent month-end, visit www.pimco.com/pvit or via (888) 87-PIMCO.

The Portfolio’s total annual operating expense ratio in effect as of period end were 0.61% for Institutional Class shares, 0.76% for Administrative Class shares, and 0.86% for Advisor Class shares. Details regarding any changes to the Portfolio’s operating expenses, subsequent to period end, can be found in the Portfolio’s current prospectus, as supplemented.

Investment Objective and Strategy Overview

PIMCO High Yield Portfolio seeks maximum total return, consistent with preservation of capital and prudent investment management, by investing under normal circumstances at least 80% of its assets in a diversified portfolio of high yield securities (“junk bonds”), which may be represented by forwards or derivatives such as options, futures contracts or swap agreements, rated below investment grade by Moody’s Investors Service, Inc. (“Moody’s”), or equivalently rated by Standard & Poor’s Rating Services (“S&P”) or Fitch, Inc. (“Fitch”), or, if unrated, determined by PIMCO to be of comparable quality. The Portfolio may invest up to 20% of its total assets in securities rated Caa or below by Moody’s, or equivalently rated by S&P or Fitch, or, if unrated, determined by PIMCO to be of comparable quality. The remainder of the Portfolio’s assets may be invested in investment grade Fixed Income Instruments. “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. Portfolio strategies may change from time to time. Please refer to the Portfolio’s current prospectus for more information regarding the Portfolio’s strategy.

Portfolio Insights

The following affected performance during the reporting period:

» Overweight exposure to the healthcare sector contributed to performance, as the sector outperformed the broader market.

» Underweight exposure to the energy sector contributed to performance, as the sector underperformed the broader market.

» Security selection in the retailer sector contributed to performance, as the Fund’s retail positions outperformed the broader sector.

» Security selection in the consumer non-cyclical sector detracted from performance, as the Fund’s consumer non-cyclical positions underperformed the broader sector.

» Underweight exposure to the telecommunications sector detracted from performance, as the sector outperformed the broader market.

» Security selection in the energy sector detracted from performance, as the Fund’s energy positions underperformed the broader sector.

6 PIMCO VARIABLE INSURANCE TRUST

Expense Example PIMCO High Yield Portfolio

Example

As a shareholder of the Portfolio, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees (if applicable), and other Portfolio expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in the Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds.

The Expense Example does not reflect any fees or other expenses imposed by the Variable Contracts. If it did, the expenses reflected in the Expense Example would be higher. The Example is based on an investment of $1,000 invested at the beginning of the period and held from July 1, 2018 to December 31, 2018 unless noted otherwise in the table and footnotes below.

Actual Expenses

The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60), then multiply the result by the number in the appropriate row for your share class, in the column titled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other portfolios. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other portfolios.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information under the heading “Hypothetical (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different portfolios. In addition, if these transactional costs were included, your costs would have been higher.

Expense ratios may vary period to period because of various factors, such as an increase in expenses that are not covered by the management fees such as fees and expenses of the independent trustees and their counsel, extraordinary expenses and interest expense.

	Actual						Hypothetical (5% return before expenses)
	Beginning Account Value (07/01/18)		Ending Account Value (12/31/18)		Expenses Paid During Period*		Beginning Account Value (07/01/18)		Ending Account Value (12/31/18)		Expenses Paid During Period*		Net Annualized Expense Ratio**
Institutional Class	$	1,000.00	$	983.80	$	3.20	$	1,000.00	$	1,021.98	$	3.26		0.64	%
Administrative Class		1,000.00		983.00		3.95		1,000.00		1,021.22		4.02		0.79
Advisor Class		1,000.00		982.50		4.45		1,000.00		1,020.72		4.53		0.89

* Expenses Paid During Period are equal to the net annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Overall fees and expenses of investing in the Portfolio will be higher because the example does not reflect variable contract fees and expenses.

** Net Annualized Expense Ratio is reflective of any applicable contractual fee waivers and/or expense reimbursements or voluntary fee waivers. Details regarding fee waivers, if any, can be found in Note 9, Fees and Expenses, in the Notes to Financial Statements.

ANNUAL REPORT DECEMBER 31, 2018 7

Financial Highlights PIMCO High Yield Portfolio

			Investment Operations								Less Distributions(b)
Selected Per Share Data for the Year Ended^:	Net Asset Value Beginning of Year		Net Investment Income (Loss)(a)		Net Realized/ Unrealized Gain (Loss)			Total			From Net Investment Income			From Net Realized Capital Gain			Total
Institutional Class
12/31/2018	$	7.87	$	0.39	$	(0.58	)	$	(0.19	)	$	(0.40	)	$	0.00		$	(0.40	)
12/31/2017		7.75		0.38		0.14			0.52			(0.40	)		0.00			(0.40	)
12/31/2016		7.26		0.40		0.49			0.89			(0.40	)		0.00			(0.40	)
12/31/2015		7.91		0.41		(0.52	)		(0.11	)		(0.42	)		(0.12	)		(0.54	)
12/31/2014		8.07		0.42		(0.14	)		0.28			(0.44	)		0.00			(0.44	)
Administrative Class
12/31/2018		7.87		0.38		(0.58	)		(0.20	)		(0.39	)		0.00			(0.39	)
12/31/2017		7.75		0.37		0.13			0.50			(0.38	)		0.00			(0.38	)
12/31/2016		7.26		0.38		0.50			0.88			(0.39	)		0.00			(0.39	)
12/31/2015		7.91		0.40		(0.52	)		(0.12	)		(0.41	)		(0.12	)		(0.53	)
12/31/2014		8.07		0.41		(0.14	)		0.27			(0.43	)		0.00			(0.43	)
Advisor Class
12/31/2018		7.87		0.37		(0.58	)		(0.21	)		(0.38	)		0.00			(0.38	)
12/31/2017		7.75		0.36		0.14			0.50			(0.38	)		0.00			(0.38	)
12/31/2016		7.26		0.37		0.51			0.88			(0.39	)		0.00			(0.39	)
12/31/2015		7.91		0.39		(0.52	)		(0.13	)		(0.40	)		(0.12	)		(0.52	)
12/31/2014		8.07		0.40		(0.14	)		0.26			(0.42	)		0.00			(0.42	)

^ A zero balance may reflect actual amounts rounding to less than $0.01 or 0.01%.

^(a)  Per share amounts based on average number of shares outstanding during the year.

^(b)  The tax characterization of distributions is determined in accordance with Federal income tax regulations. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

^(c)  Ratio of expenses to average net assets includes line of credit expenses.

8 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

					Ratios/Supplemental Data
							Ratios to Average Net Assets
Net Asset Value End of Year		Total Return			Net Assets End of Year (000s)		Expenses			Expenses Excluding Waivers			Expenses Excluding Interest Expense			Expenses Excluding Interest Expense and Waivers			Net Investment Income (Loss)			Portfolio Turnover Rate
$	7.28		(2.50	)%	$	9,211		0.63	%(c)		0.63	%(c)		0.60	%		0.60	%		5.11	%		17	%
	7.87		6.77			10,863		0.61	(c)		0.61	(c)		0.60			0.60			4.80			25
	7.75		12.61			9,937		0.61	(c)		0.61	(c)		0.60			0.60			5.24			30
	7.26		(1.50	)		4,450		0.61	(c)		0.61	(c)		0.60			0.60			5.23			23
	7.91		3.49			4,766		0.60	(c)		0.60	(c)		0.60			0.60			5.20			37
	7.28		(2.65	)		847,818		0.78	(c)		0.78	(c)		0.75			0.75			4.96			17
	7.87		6.61			1,016,642		0.76	(c)		0.76	(c)		0.75			0.75			4.64			25
	7.75		12.45			1,049,825		0.76	(c)		0.76	(c)		0.75			0.75			5.09			30
	7.26		(1.64	)		1,079,951		0.76	(c)		0.76	(c)		0.75			0.75			5.08			23
	7.91		3.34			1,135,929		0.75	(c)		0.75	(c)		0.75			0.75			5.05			37
	7.28		(2.75	)		16,190		0.88	(c)		0.88	(c)		0.85			0.85			4.83			17
	7.87		6.50			29,721		0.86	(c)		0.86	(c)		0.85			0.85			4.53			25
	7.75		12.34			41,147		0.86	(c)		0.86	(c)		0.85			0.85			4.96			30
	7.26		(1.74	)		20,953		0.86	(c)		0.86	(c)		0.85			0.85			4.95			23
	7.91		3.23			18,879		0.85	(c)		0.85	(c)		0.85			0.85			4.91			37

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 9

Statement of Assets and Liabilities PIMCO High Yield Portfolio

(Amounts in thousands†, except per share amounts)	December 31, 2018
Assets:
Investments, at value
Investments in securities*	$	806,308
Investments in Affiliates		81,295
Financial Derivative Instruments
Exchange-traded or centrally cleared		28
Deposits with counterparty		2,916
Foreign currency, at value		77
Receivable for investments sold		538
Receivable for Portfolio shares sold		755
Interest and/or dividends receivable		13,553
Dividends receivable from Affiliates		172
Prepaid expenses		17
Total Assets		905,659
Liabilities:
Borrowings & Other Financing Transactions
Payable for reverse repurchase agreements	$	30,266
Financial Derivative Instruments
Exchange-traded or centrally cleared		143
Over the counter		420
Payable for investments in Affiliates purchased		172
Payable for Portfolio shares redeemed		863
Accrued investment advisory fees		186
Accrued supervisory and administrative fees		260
Accrued distribution fees		4
Accrued servicing fees		107
Other liabilities		19
Total Liabilities		32,440
Net Assets	$	873,219
Net Assets Consist of:
Paid in capital	$	934,965
Distributable earnings (accumulated loss)		(61,746	)
Net Assets	$	873,219
Net Assets:
Institutional Class	$	9,211
Administrative Class		847,818
Advisor Class		16,190
Shares Issued and Outstanding:
Institutional Class		1,266
Administrative Class		116,540
Advisor Class		2,225
Net Asset Value Per Share Outstanding:
Institutional Class	$	7.28
Administrative Class		7.28
Advisor Class		7.28
Cost of investments in securities	$	854,527
Cost of investments in Affiliates	$	81,280
Cost of foreign currency held	$	78
Cost or premiums of financial derivative instruments, net	$	1,133
* Includes repurchase agreements of:	$	503

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

10 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

Statement of Operations PIMCO High Yield Portfolio

(Amounts in thousands†)	Year Ended December 31, 2018
Investment Income:
Interest	$	54,933
Dividends from Investments in Affiliates		2,054
Total Income		56,987
Expenses:
Investment advisory fees		2,483
Supervisory and administrative fees		3,476
Servicing fees - Administrative Class		1,430
Distribution and/or servicing fees - Advisor Class		74
Trustee fees		29
Interest expense		301
Miscellaneous expense		11
Total Expenses		7,804
Net Investment Income (Loss)		49,183
Net Realized Gain (Loss):
Investments in securities		949
Investments in Affiliates		(68	)
Net capital gain distributions received from Affiliate investments		12
Exchange-traded or centrally cleared financial derivative instruments		1,261
Over the counter financial derivative instruments		(889	)
Short sales		18
Foreign currency		(7	)
Net Realized Gain (Loss)		1,276
Net Change in Unrealized Appreciation (Depreciation):
Investments in securities		(75,178	)
Investments in Affiliates		14
Exchange-traded or centrally cleared financial derivative instruments		(1,265	)
Over the counter financial derivative instruments		(247	)
Foreign currency assets and liabilities		7
Net Change in Unrealized Appreciation (Depreciation)		(76,669	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	(26,210	)

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 11

Statements of Changes in Net Assets PIMCO High Yield Portfolio

(Amounts in thousands†)	Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets from:
Operations:
Net investment income (loss)	$	49,183		$	51,469
Net realized gain (loss)		1,276			6,472
Net change in unrealized appreciation (depreciation)		(76,669	)		13,750
Net Increase (Decrease) in Net Assets Resulting from Operations		(26,210	)		71,691
Distributions to Shareholders:
From net investment income and/or net realized capital gains*
Institutional Class		(525	)		(525	)
Administrative Class		(48,606	)		(51,769	)
Advisor Class		(1,472	)		(1,937	)
Total Distributions(a)		(50,603	)		(54,231	)
Portfolio Share Transactions:
Net increase (decrease) resulting from Portfolio share transactions**		(107,194	)		(61,143	)
Total Increase (Decrease) in Net Assets		(184,007	)		(43,683	)
Net Assets:
Beginning of year		1,057,226			1,100,909
End of year	$	873,219		$	1,057,226

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

* See Note 2, New Accounting Pronouncements, in the Notes to Financial Statements for more information.

** See Note 13, Shares of Beneficial Interest, in the Notes to Financial Statements.

^(a)  The tax characterization of distributions is determined in accordance with Federal income tax regulations. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

12 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

Schedule of Investments PIMCO High Yield Portfolio

December 31, 2018

(Amounts in thousands*, except number of shares, contracts and units, if any)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
INVESTMENTS IN SECURITIES 92.3%
CORPORATE BONDS & NOTES 92.1%
BANKING & FINANCE 8.2%
Ally Financial, Inc.
5.125% due 09/30/2024	$		1,000	$		995
7.500% due 09/15/2020			2,795			2,907
8.000% due 03/15/2020			1,607			1,667
8.000% due 11/01/2031			1,401			1,561
Avolon Holdings Funding Ltd.
5.125% due 10/01/2023			500			479
5.500% due 01/15/2023			1,000			973
Barclays PLC
7.750% due 09/15/2023 •(d)(e)			1,000			964
BNP Paribas S.A.
7.375% due 08/19/2025 •(d)(e)			2,500			2,497
CIT Group, Inc.
5.000% due 08/15/2022 (g)			4,500			4,449
6.125% due 03/09/2028 (g)			500			499
Credit Agricole S.A.
7.875% due 01/23/2024 •(d)(e)			3,000			3,006
Credit Suisse Group AG
6.250% due 12/18/2024 •(d)(e)			2,000			1,897
7.500% due 07/17/2023 •(d)(e)			500			489
Equinix, Inc.
5.375% due 05/15/2027			1,500			1,470
5.875% due 01/15/2026			1,500			1,515
ESH Hospitality, Inc.
5.250% due 05/01/2025			2,000			1,865
Fortress Transportation & Infrastructure Investors LLC
6.500% due 10/01/2025			1,250			1,172
Freedom Mortgage Corp.
8.250% due 04/15/2025			1,000			860
GLP Capital LP
5.375% due 11/01/2023			1,000			1,017
5.375% due 04/15/2026			750			744
Greystar Real Estate Partners LLC
5.750% due 12/01/2025			1,000			980
Howard Hughes Corp.
5.375% due 03/15/2025			2,500			2,362
Intesa Sanpaolo SpA
5.017% due 06/26/2024			1,250			1,132
5.710% due 01/15/2026			1,000			918
7.700% due 09/17/2025 •(d)(e)			1,000			898
Jefferies Finance LLC
6.875% due 04/15/2022			1,500			1,466
7.375% due 04/01/2020			1,000			1,001
Lincoln Finance Ltd.
7.375% due 04/15/2021			750			762
Lloyds Banking Group PLC
7.500% due 06/27/2024 •(d)(e)			5,000			4,836
MGM Growth Properties Operating Partnership LP
4.500% due 09/01/2026			1,000			910
5.625% due 05/01/2024			1,000			994
Navient Corp.
5.000% due 10/26/2020			1,000			960
5.875% due 10/25/2024			2,250			1,890
6.125% due 03/25/2024			2,500			2,156
6.500% due 06/15/2022			1,000			933
6.625% due 07/26/2021			500			484
6.750% due 06/25/2025			1,000			855
7.250% due 01/25/2022			500			484
8.000% due 03/25/2020			1,000			1,019
Provident Funding Associates LP
6.375% due 06/15/2025			750			683
Quicken Loans, Inc.
5.250% due 01/15/2028			1,500			1,333
5.750% due 05/01/2025			1,500			1,410
RHP Hotel Properties LP
5.000% due 04/15/2023			1,500			1,470
Royal Bank of Scotland Group PLC
7.500% due 08/10/2020 •(d)(e)			2,000			1,985
SBA Communications Corp.
4.875% due 09/01/2024			1,000			944

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Societe Generale S.A.
7.875% due 12/18/2023 •(d)(e)	$		2,000	$		1,983
Springleaf Finance Corp.
5.625% due 03/15/2023			1,250			1,156
6.875% due 03/15/2025			1,250			1,122
7.125% due 03/15/2026			1,000			894
Tempo Acquisition LLC
6.750% due 06/01/2025			1,500			1,395
Vantiv LLC
4.375% due 11/15/2025			1,000			919
						71,360
INDUSTRIALS 75.2%
Acadia Healthcare Co., Inc.
5.625% due 02/15/2023			1,000			953
6.500% due 03/01/2024			500			485
Adient Global Holdings Ltd.
4.875% due 08/15/2026			2,500			1,925
ADT Security Corp.
3.500% due 07/15/2022			1,000			929
4.125% due 06/15/2023			1,000			918
4.875% due 07/15/2032			1,000			745
6.250% due 10/15/2021			2,000			2,037
Advanced Disposal Services, Inc.
5.625% due 11/15/2024			1,500			1,474
AECOM
5.125% due 03/15/2027			1,000			860
5.875% due 10/15/2024			1,250			1,236
Air Medical Group Holdings, Inc.
6.375% due 05/15/2023			2,500			2,125
Alcoa Nederland Holding BV
6.125% due 05/15/2028			500			480
6.750% due 09/30/2024			500			510
7.000% due 09/30/2026			250			256
Allison Transmission, Inc.
5.000% due 10/01/2024			2,000			1,927
Altice Financing S.A.
6.625% due 02/15/2023			2,500			2,406
7.500% due 05/15/2026			1,000			915
Altice Finco S.A.
7.625% due 02/15/2025			1,000			834
Altice France S.A.
6.250% due 05/15/2024			3,000			2,809
7.375% due 05/01/2026			2,500			2,300
8.125% due 02/01/2027			1,000			945
Altice Luxembourg S.A.
7.625% due 02/15/2025 (g)			2,500			1,878
7.750% due 05/15/2022			2,500			2,284
AMC Networks, Inc.
4.750% due 12/15/2022			1,000			980
4.750% due 08/01/2025			500			455
5.000% due 04/01/2024			1,000			950
American Builders & Contractors Supply Co., Inc.
5.750% due 12/15/2023			1,000			992
5.875% due 05/15/2026			1,750			1,673
Amsted Industries, Inc.
5.000% due 03/15/2022			1,000			978
5.375% due 09/15/2024			1,000			948
Antero Resources Corp.
5.000% due 03/01/2025			1,000			910
5.125% due 12/01/2022			1,000			944
5.375% due 11/01/2021			1,250			1,211
Aramark Services, Inc.
5.000% due 02/01/2028			1,500			1,402
5.125% due 01/15/2024			1,500			1,489
Arconic, Inc.
5.125% due 10/01/2024			2,000			1,936
5.950% due 02/01/2037			1,000			930
Ardagh Packaging Finance PLC
6.000% due 02/15/2025			1,500			1,388
7.250% due 05/15/2024			2,000			2,002
Ascent Resources Utica Holdings LLC
7.000% due 11/01/2026			1,000			910

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Ashland LLC
4.750% due 08/15/2022	$		2,000	$		1,977
6.875% due 05/15/2043			1,000			990
Avon International Operations, Inc.
7.875% due 08/15/2022			1,000			990
B&G Foods, Inc.
5.250% due 04/01/2025 (g)			1,500			1,401
Ball Corp.
5.250% due 07/01/2025			1,750			1,750
Bausch Health Cos., Inc.
5.500% due 03/01/2023			2,500			2,289
5.500% due 11/01/2025			2,500			2,341
5.625% due 12/01/2021			389			383
5.875% due 05/15/2023			3,000			2,786
6.500% due 03/15/2022			500			505
7.000% due 03/15/2024			1,250			1,266
9.000% due 12/15/2025			1,000			999
BBA U.S. Holdings, Inc.
5.375% due 05/01/2026			875			831
BC Unlimited Liability Co.
4.250% due 05/15/2024			1,500			1,385
5.000% due 10/15/2025			3,000			2,767
BCD Acquisition, Inc.
9.625% due 09/15/2023			1,500			1,549
Beacon Roofing Supply, Inc.
4.875% due 11/01/2025			5,000			4,412
6.375% due 10/01/2023			1,000			995
Berry Global, Inc.
4.500% due 02/15/2026			1,000			918
5.125% due 07/15/2023			1,000			993
6.000% due 10/15/2022			1,000			1,012
Boise Cascade Co.
5.625% due 09/01/2024			1,000			943
Bombardier, Inc.
7.500% due 12/01/2024			500			473
7.500% due 03/15/2025			2,000			1,892
7.750% due 03/15/2020			500			509
8.750% due 12/01/2021			2,000			2,067
Boyd Gaming Corp.
6.000% due 08/15/2026			750			704
6.375% due 04/01/2026			1,500			1,457
6.875% due 05/15/2023			1,000			1,014
Brink’s Co.
4.625% due 10/15/2027			1,000			915
Bruin E&P Partners LLC
8.875% due 08/01/2023			1,000			894
Builders FirstSource, Inc.
5.625% due 09/01/2024			2,000			1,862
BWAY Holding Co.
5.500% due 04/15/2024			2,500			2,359
Cablevision Systems Corp.
5.875% due 09/15/2022			2,000			1,970
Caesars Resort Collection LLC
5.250% due 10/15/2025			4,000			3,450
Callon Petroleum Co.
6.375% due 07/01/2026			2,000			1,870
Cascades, Inc.
5.500% due 07/15/2022			750			735
Catalent Pharma Solutions, Inc.
4.875% due 01/15/2026			1,750			1,667
CBS Radio, Inc.
7.250% due 11/01/2024 (g)			1,500			1,402
CCO Holdings LLC
5.000% due 02/01/2028			1,000			923
5.125% due 02/15/2023			2,000			1,955
5.125% due 05/01/2023			2,000			1,950
5.125% due 05/01/2027			1,000			934
5.250% due 09/30/2022			2,000			1,986
5.375% due 05/01/2025			1,000			961
5.750% due 09/01/2023			2,750			2,743
5.750% due 02/15/2026			3,000			2,947
5.875% due 04/01/2024			1,000			997
5.875% due 05/01/2027			1,000			973

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 13

Schedule of Investments PIMCO High Yield Portfolio (Cont.)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Centene Corp.
4.750% due 01/15/2025	$		1,000	$		958
5.375% due 06/01/2026			500			488
5.625% due 02/15/2021			1,000			1,005
6.125% due 02/15/2024			1,000			1,026
Centennial Resource Production LLC
5.375% due 01/15/2026			2,000			1,870
CF Industries, Inc.
5.150% due 03/15/2034			2,000			1,690
Change Healthcare Holdings LLC
5.750% due 03/01/2025			3,000			2,809
Chemours Co.
6.625% due 05/15/2023			1,500			1,521
7.000% due 05/15/2025			1,500			1,519
Cheniere Corpus Christi Holdings LLC
5.125% due 06/30/2027			2,500			2,369
5.875% due 03/31/2025			2,000			1,995
7.000% due 06/30/2024			1,500			1,586
Cheniere Energy Partners LP
5.250% due 10/01/2025			2,500			2,341
5.625% due 10/01/2026			500			469
Chesapeake Energy Corp.
6.125% due 02/15/2021			500			473
7.000% due 10/01/2024			500			435
8.000% due 01/15/2025			750			666
8.000% due 06/15/2027			250			211
Churchill Downs, Inc.
4.750% due 01/15/2028			2,000			1,819
Cirsa Finance International SARL
7.875% due 12/20/2023			1,000			994
Clear Channel Worldwide Holdings, Inc.
6.500% due 11/15/2022			2,000			2,000
7.625% due 03/15/2020			1,000			979
Clearwater Paper Corp.
4.500% due 02/01/2023			1,500			1,357
Cleveland-Cliffs, Inc.
4.875% due 01/15/2024			750			699
5.750% due 03/01/2025			500			451
CNX Midstream Partners LP
6.500% due 03/15/2026			1,000			955
CNX Resources Corp.
5.875% due 04/15/2022			1,000			963
CommScope Technologies LLC
5.000% due 03/15/2027			1,000			813
6.000% due 06/15/2025			1,250			1,144
CommScope, Inc.
5.000% due 06/15/2021			1,000			994
5.500% due 06/15/2024			1,250			1,148
Community Health Systems, Inc.
5.125% due 08/01/2021			1,000			933
6.250% due 03/31/2023			2,500			2,281
8.625% due 01/15/2024			1,000			990
Constellium NV
5.750% due 05/15/2024			1,000			925
5.875% due 02/15/2026			1,000			893
6.625% due 03/01/2025			750			698
Continental Resources, Inc.
5.000% due 09/15/2022			1,200			1,193
Cooper-Standard Automotive, Inc.
5.625% due 11/15/2026			1,500			1,327
Core & Main LP
6.125% due 08/15/2025			3,000			2,677
Coty, Inc.
6.500% due 04/15/2026			1,500			1,294
Covey Park Energy LLC
7.500% due 05/15/2025			2,375			2,054
CPG Merger Sub LLC
8.000% due 10/01/2021			2,000			1,950
Crown Americas LLC
4.250% due 09/30/2026			1,000			901
4.500% due 01/15/2023			1,000			979
4.750% due 02/01/2026			1,000			951
CSC Holdings LLC
5.125% due 12/15/2021			1,000			983

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
5.250% due 06/01/2024	$		2,000	$		1,837
5.375% due 02/01/2028			500			461
5.500% due 05/15/2026			1,500			1,417
5.500% due 04/15/2027			1,000			933
6.625% due 10/15/2025			1,000			1,015
10.125% due 01/15/2023			1,000			1,078
DAE Funding LLC
5.000% due 08/01/2024			2,000			1,940
DaVita, Inc.
5.000% due 05/01/2025			2,000			1,822
5.125% due 07/15/2024			2,000			1,880
DCP Midstream Operating LP
5.375% due 07/15/2025			1,000			980
Dell International LLC
5.875% due 06/15/2021			500			501
7.125% due 06/15/2024			1,000			1,018
Diamond Offshore Drilling, Inc.
4.875% due 11/01/2043			750			424
5.700% due 10/15/2039			1,000			620
7.875% due 08/15/2025			1,250			1,044
Diamond Resorts International, Inc.
7.750% due 09/01/2023			1,500			1,446
Diamondback Energy, Inc.
4.750% due 11/01/2024			1,000			970
5.375% due 05/31/2025			1,000			978
Digicel Group Ltd.
7.125% due 04/01/2022			1,000			473
Digicel Ltd.
6.000% due 04/15/2021			1,000			903
DISH DBS Corp.
5.000% due 03/15/2023			2,500			2,091
5.125% due 05/01/2020			1,000			990
5.875% due 07/15/2022			3,000			2,771
5.875% due 11/15/2024			2,000			1,617
6.750% due 06/01/2021			1,000			992
7.750% due 07/01/2026			1,250			1,037
DJO Finance LLC
8.125% due 06/15/2021			2,500			2,581
10.750% due 04/15/2020			500			501
DKT Finance ApS
9.375% due 06/17/2023			1,000			1,027
DriveTime Automotive Group, Inc.
8.000% due 06/01/2021			1,000			1,005
Eldorado Resorts, Inc.
6.000% due 09/15/2026			750			711
7.000% due 08/01/2023			1,000			1,030
EMC Corp.
3.375% due 06/01/2023			1,000			868
EMI Music Publishing Group North America Holdings, Inc.
7.625% due 06/15/2024			1,000			1,067
Endo Dac
6.000% due 07/15/2023			1,000			768
6.000% due 02/01/2025			1,250			903
Endo Finance LLC
5.375% due 01/15/2023			1,000			765
5.750% due 01/15/2022			1,000			838
Energizer Gamma Acquisition, Inc.
6.375% due 07/15/2026			1,000			920
Energizer Holdings, Inc.
5.500% due 06/15/2025			2,500			2,262
Energy Transfer LP
5.875% due 01/15/2024			500			512
7.500% due 10/15/2020			2,000			2,085
EnLink Midstream Partners LP
4.150% due 06/01/2025			1,500			1,355
5.450% due 06/01/2047			750			610
Ensco PLC
4.500% due 10/01/2024			1,500			983
5.200% due 03/15/2025			1,000			670
5.750% due 10/01/2044			2,000			1,128
7.750% due 02/01/2026			1,000			745
Entegris, Inc.
4.625% due 02/10/2026			2,000			1,850

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
EW Scripps Co.
5.125% due 05/15/2025	$		1,000	$		920
Extraction Oil & Gas, Inc.
5.625% due 02/01/2026			250			184
7.375% due 05/15/2024			500			415
First Data Corp.
5.000% due 01/15/2024			3,000			2,899
5.750% due 01/15/2024			3,000			2,941
First Quality Finance Co., Inc.
4.625% due 05/15/2021			1,000			973
5.000% due 07/01/2025			750			673
First Quantum Minerals Ltd.
6.500% due 03/01/2024			1,000			834
7.000% due 02/15/2021			500			481
7.250% due 05/15/2022			1,000			931
7.500% due 04/01/2025			750			622
Flex Acquisition Co., Inc.
6.875% due 01/15/2025			2,000			1,790
FMG Resources Pty. Ltd.
4.750% due 05/15/2022			250			238
5.125% due 05/15/2024			250			231
Freeport-McMoRan, Inc.
3.100% due 03/15/2020			1,000			980
3.550% due 03/01/2022			1,500			1,423
3.875% due 03/15/2023			2,000			1,855
4.000% due 11/14/2021			1,500			1,464
5.400% due 11/14/2034			2,500			1,981
Frontdoor, Inc.
6.750% due 08/15/2026			750			714
Gates Global LLC
6.000% due 07/15/2022			1,000			984
GCP Applied Technologies, Inc.
5.500% due 04/15/2026			2,000			1,955
Graphic Packaging International LLC
4.125% due 08/15/2024			500			473
4.875% due 11/15/2022			500			494
Gray Television, Inc.
5.125% due 10/15/2024			1,000			925
Griffon Corp.
5.250% due 03/01/2022			2,250			2,045
Grinding Media, Inc.
7.375% due 12/15/2023			1,000			973
Gulfport Energy Corp.
6.000% due 10/15/2024			1,500			1,335
6.375% due 05/15/2025			750			667
6.625% due 05/01/2023			1,000			950
Hanesbrands, Inc.
4.625% due 05/15/2024			2,000			1,885
4.875% due 05/15/2026			1,500			1,359
HCA Healthcare, Inc.
6.250% due 02/15/2021			3,000			3,075
HCA, Inc.
4.750% due 05/01/2023 (g)			2,000			1,975
5.000% due 03/15/2024 (g)			2,500			2,481
5.250% due 04/15/2025 (g)			2,000			1,995
5.250% due 06/15/2026 (g)			1,500			1,492
5.375% due 02/01/2025			2,000			1,955
5.500% due 06/15/2047			1,500			1,425
5.875% due 05/01/2023			1,750			1,776
7.500% due 02/15/2022			2,000			2,130
Hill-Rom Holdings, Inc.
5.000% due 02/15/2025			1,250			1,194
Hilton Domestic Operating Co., Inc.
4.250% due 09/01/2024			1,000			948
5.125% due 05/01/2026			1,375			1,323
Hilton Worldwide Finance LLC
4.625% due 04/01/2025			1,000			950
4.875% due 04/01/2027			750			706
HudBay Minerals, Inc.
7.250% due 01/15/2023			500			496
7.625% due 01/15/2025			500			491
Hughes Satellite Systems Corp.
5.250% due 08/01/2026			500			460
7.625% due 06/15/2021			1,000			1,040

14 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Huntsman International LLC
4.875% due 11/15/2020	$		500	$		504
5.125% due 11/15/2022			1,000			1,011
IHO Verwaltungs GmbH (4.500% Cash or 5.250% PIK)
4.500% due 09/15/2023 (a)			2,000			1,840
IHO Verwaltungs GmbH (4.750% Cash or 5.500% PIK)
4.750% due 09/15/2026 (a)			2,000			1,751
Indigo Natural Resources LLC
6.875% due 02/15/2026			1,000			865
INEOS Group Holdings S.A.
5.625% due 08/01/2024 (g)			1,500			1,334
Informatica LLC
7.125% due 07/15/2023			1,000			979
Intelsat Jackson Holdings S.A.
5.500% due 08/01/2023			1,000			875
8.000% due 02/15/2024			2,000			2,065
International Game Technology PLC
6.250% due 02/15/2022			2,000			2,015
6.250% due 01/15/2027			500			481
6.500% due 02/15/2025			1,500			1,485
IQVIA, Inc.
4.875% due 05/15/2023			2,000			1,970
5.000% due 10/15/2026			2,000			1,917
Jagged Peak Energy LLC
5.875% due 05/01/2026			1,500			1,402
Jaguar Holding Co.
6.375% due 08/01/2023			4,000			3,832
James Hardie International Finance DAC
5.000% due 01/15/2028			500			433
Jeld-Wen, Inc.
4.625% due 12/15/2025			2,250			1,974
4.875% due 12/15/2027			1,750			1,483
KAR Auction Services, Inc.
5.125% due 06/01/2025			1,000			908
KFC Holding Co.
4.750% due 06/01/2027			750			699
5.000% due 06/01/2024			1,000			968
5.250% due 06/01/2026			2,000			1,940
Kinetic Concepts, Inc.
7.875% due 02/15/2021			1,500			1,521
12.500% due 11/01/2021			1,250			1,344
L Brands, Inc.
5.625% due 02/15/2022			1,000			1,000
Lamb Weston Holdings, Inc.
4.625% due 11/01/2024			1,000			975
4.875% due 11/01/2026			1,000			965
Lennar Corp.
4.750% due 11/29/2027			1,250			1,133
5.000% due 06/15/2027			1,500			1,386
5.250% due 06/01/2026			1,250			1,183
5.375% due 10/01/2022			1,000			1,001
5.875% due 11/15/2024			750			753
Level 3 Financing, Inc.
5.125% due 05/01/2023			1,250			1,211
5.250% due 03/15/2026			1,000			918
5.375% due 01/15/2024			1,000			955
5.375% due 05/01/2025			1,000			940
Live Nation Entertainment, Inc.
4.875% due 11/01/2024			1,000			953
LKQ Corp.
4.750% due 05/15/2023			1,000			955
Magnolia Oil & Gas Operating LLC
6.000% due 08/01/2026			1,250			1,212
Mallinckrodt International Finance S.A.
5.500% due 04/15/2025 (g)			1,000			695
5.625% due 10/15/2023 (g)			500			383
5.750% due 08/01/2022 (g)			1,500			1,297
Marriott Ownership Resorts, Inc.
6.500% due 09/15/2026			1,000			969
Masonite International Corp.
5.625% due 03/15/2023			1,600			1,558
Matador Resources Co.
5.875% due 09/15/2026			1,500			1,384

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Matterhorn Merger Sub LLC
8.500% due 06/01/2026	$		2,000	$		1,600
MDC Holdings, Inc.
6.000% due 01/15/2043			1,000			785
MDC Partners, Inc.
6.500% due 05/01/2024			750			686
MGM Resorts International
4.625% due 09/01/2026			1,000			903
5.750% due 06/15/2025			1,000			970
6.000% due 03/15/2023			2,000			2,015
6.625% due 12/15/2021			2,500			2,569
6.750% due 10/01/2020			1,000			1,030
7.750% due 03/15/2022			2,000			2,132
8.625% due 02/01/2019			1,000			1,006
MSCI, Inc.
5.250% due 11/15/2024			1,000			1,000
5.375% due 05/15/2027			500			491
5.750% due 08/15/2025			1,000			1,012
Murphy Oil Corp.
5.750% due 08/15/2025			500			468
6.875% due 08/15/2024			1,000			997
Murphy Oil USA, Inc.
6.000% due 08/15/2023			1,000			1,009
Nabors Industries, Inc.
5.750% due 02/01/2025			2,000			1,520
NCI Building Systems, Inc.
8.000% due 04/15/2026			3,000			2,756
NCR Corp.
4.625% due 02/15/2021			1,500			1,466
5.000% due 07/15/2022			2,000			1,895
6.375% due 12/15/2023			500			486
Netflix, Inc.
4.375% due 11/15/2026 (g)			2,500			2,275
4.875% due 04/15/2028			1,500			1,372
5.875% due 02/15/2025			500			506
Newfield Exploration Co.
5.375% due 01/01/2026			3,000			2,947
5.625% due 07/01/2024			1,000			1,015
Nexstar Broadcasting, Inc.
5.625% due 08/01/2024			750			703
5.875% due 11/15/2022			750			750
NextEra Energy Operating Partners LP
4.250% due 09/15/2024			500			464
4.500% due 09/15/2027			750			670
Nielsen Co. Luxembourg SARL
5.000% due 02/01/2025			1,000			940
Nielsen Finance LLC
5.000% due 04/15/2022			1,750			1,680
Noble Holding International Ltd.
6.200% due 08/01/2040			375			236
7.875% due 02/01/2026			1,000			856
Novelis Corp.
5.875% due 09/30/2026			2,500			2,219
6.250% due 08/15/2024			1,000			943
Nufarm Australia Ltd.
5.750% due 04/30/2026			750			687
NXP BV
4.125% due 06/15/2020			1,000			998
4.625% due 06/01/2023			1,000			983
Olin Corp.
5.000% due 02/01/2030			750			660
Open Text Corp.
5.875% due 06/01/2026			1,500			1,474
Ortho-Clinical Diagnostics, Inc.
6.625% due 05/15/2022			6,750			6,109
Park Aerospace Holdings Ltd.
4.500% due 03/15/2023			2,000			1,875
5.250% due 08/15/2022			2,000			1,942
5.500% due 02/15/2024			1,250			1,209
Park-Ohio Industries, Inc.
6.625% due 04/15/2027			1,000			955
Party City Holdings, Inc.
6.125% due 08/15/2023			1,000			985
6.625% due 08/01/2026			500			456

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
PDC Energy, Inc.
5.750% due 05/15/2026	$		1,000	$		893
6.125% due 09/15/2024			1,000			928
Penn National Gaming, Inc.
5.625% due 01/15/2027			500			449
Performance Food Group, Inc.
5.500% due 06/01/2024			500			486
PetSmart, Inc.
5.875% due 06/01/2025			750			546
7.125% due 03/15/2023			1,250			734
PGT Escrow Issuer, Inc.
6.750% due 08/01/2026			1,000			987
Pilgrim’s Pride Corp.
5.750% due 03/15/2025			2,000			1,885
5.875% due 09/30/2027			1,000			910
Platform Specialty Products Corp.
5.875% due 12/01/2025			1,000			940
6.500% due 02/01/2022			2,000			2,007
Post Holdings, Inc.
5.000% due 08/15/2026			3,000			2,745
5.500% due 03/01/2025			1,000			964
5.625% due 01/15/2028			1,250			1,155
5.750% due 03/01/2027			2,000			1,885
8.000% due 07/15/2025			750			788
PQ Corp.
6.750% due 11/15/2022			750			776
Precision Drilling Corp.
7.750% due 12/15/2023			1,750			1,621
Prestige Brands, Inc.
5.375% due 12/15/2021			1,000			981
6.375% due 03/01/2024			1,000			970
Prime Security Services Borrower LLC
9.250% due 05/15/2023			2,000			2,067
Qorvo, Inc.
5.500% due 07/15/2026			1,250			1,197
Qualitytech LP
4.750% due 11/15/2025			1,500			1,410
Rackspace Hosting, Inc.
8.625% due 11/15/2024			1,000			783
Range Resources Corp.
4.875% due 05/15/2025			1,000			825
5.000% due 08/15/2022			750			674
5.000% due 03/15/2023			1,250			1,105
RBS Global, Inc.
4.875% due 12/15/2025			2,500			2,281
Refinitiv U.S. Holdings, Inc.
6.250% due 05/15/2026			1,250			1,208
8.250% due 11/15/2026			2,000			1,832
RegionalCare Hospital Partners Holdings, Inc.
8.250% due 05/01/2023			2,000			2,027
Revlon Consumer Products Corp.
6.250% due 08/01/2024			750			401
Reynolds Group Issuer, Inc.
5.125% due 07/15/2023			2,000			1,907
5.750% due 10/15/2020			1,454			1,452
6.875% due 02/15/2021			347			347
7.000% due 07/15/2024			1,000			954
Rite Aid Corp.
6.125% due 04/01/2023			1,500			1,191
Rivers Pittsburgh Borrower LP
6.125% due 08/15/2021			1,000			973
Rowan Cos., Inc.
4.750% due 01/15/2024			1,000			760
4.875% due 06/01/2022			2,000			1,657
5.850% due 01/15/2044			1,000			630
7.375% due 06/15/2025			1,000			808
Sabre GLBL, Inc.
5.250% due 11/15/2023			500			496
5.375% due 04/15/2023			1,500			1,500
Schaeffler Finance BV
4.750% due 05/15/2023			1,250			1,203
Scientific Games International, Inc.
5.000% due 10/15/2025			1,500			1,342
6.250% due 09/01/2020			1,250			1,206
10.000% due 12/01/2022			1,500			1,524

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 15

Schedule of Investments PIMCO High Yield Portfolio (Cont.)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Scotts Miracle-Gro Co.
6.000% due 10/15/2023	$		1,375	$		1,375
Sealed Air Corp.
4.875% due 12/01/2022			500			497
5.125% due 12/01/2024			1,000			986
5.250% due 04/01/2023			1,500			1,511
5.500% due 09/15/2025			1,000			990
Sensata Technologies BV
4.875% due 10/15/2023			1,500			1,464
5.000% due 10/01/2025			1,000			945
5.625% due 11/01/2024			1,250			1,236
Sensata Technologies UK Financing Co. PLC
6.250% due 02/15/2026			1,500			1,513
ServiceMaster Co. LLC
5.125% due 11/15/2024			1,750			1,658
Sigma Holdco BV
5.750% due 05/15/2026	EUR		1,000			1,010
7.875% due 05/15/2026	$		1,500			1,305
Simmons Foods, Inc.
5.750% due 11/01/2024			1,000			715
7.750% due 01/15/2024			500			505
Sinclair Television Group, Inc.
5.125% due 02/15/2027			1,000			888
5.625% due 08/01/2024			2,000			1,880
Sirius XM Radio, Inc.
5.000% due 08/01/2027			1,000			918
5.375% due 04/15/2025			2,000			1,902
Smurfit Kappa Treasury Funding DAC
7.500% due 11/20/2025			500			573
Sotera Health Holdings LLC
6.500% due 05/15/2023			1,000			960
Sotera Health Topco, Inc. (8.125% Cash or 8.875% PIK)
8.125% due 11/01/2021 (a)			1,000			943
Southwestern Energy Co.
6.200% due 01/23/2025			1,000			899
7.500% due 04/01/2026			1,500			1,425
Spectrum Brands, Inc.
5.750% due 07/15/2025			1,500			1,432
6.125% due 12/15/2024			1,000			968
6.625% due 11/15/2022			1,000			1,015
SPX FLOW, Inc.
5.625% due 08/15/2024			2,000			1,900
5.875% due 08/15/2026			2,000			1,870
Standard Industries, Inc.
4.750% due 01/15/2028			1,000			844
5.000% due 02/15/2027			1,000			878
5.375% due 11/15/2024 (g)			4,000			3,770
6.000% due 10/15/2025			2,000			1,926
Starfruit Finco BV
8.000% due 10/01/2026 (g)			2,000			1,855
Stars Group Holdings BV
7.000% due 07/15/2026			875			853
Station Casinos LLC
5.000% due 10/01/2025			1,000			908
Steel Dynamics, Inc.
5.000% due 12/15/2026			1,000			950
5.125% due 10/01/2021			1,000			1,000
5.500% due 10/01/2024			500			496
Suburban Propane Partners LP
5.750% due 03/01/2025			1,000			920
Sunoco LP
4.875% due 01/15/2023			750			733
5.500% due 02/15/2026			500			475
5.875% due 03/15/2028			500			469
T-Mobile USA, Inc.
4.500% due 02/01/2026			1,000			921
4.750% due 02/01/2028			1,000			909
5.125% due 04/15/2025			1,000			975
6.375% due 03/01/2025			2,000			2,030
6.500% due 01/15/2026			2,000			2,045
Team Health Holdings, Inc.
6.375% due 02/01/2025 (g)			2,750			2,258
Teck Resources Ltd.
4.500% due 01/15/2021			2,000			2,002

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
6.125% due 10/01/2035	$		2,000	$		1,920
6.250% due 07/15/2041			1,000			953
8.500% due 06/01/2024			500			537
TEGNA, Inc.
4.875% due 09/15/2021			500			490
5.500% due 09/15/2024			1,000			973
Teine Energy Ltd.
6.875% due 09/30/2022			1,000			975
Teleflex, Inc.
4.875% due 06/01/2026			750			720
Telenet Finance Luxembourg Notes SARL
5.500% due 03/01/2028			1,400			1,274
Tempur Sealy International, Inc.
5.500% due 06/15/2026			2,250			2,064
5.625% due 10/15/2023			750			726
Tenet Healthcare Corp.
4.500% due 04/01/2021			1,000			978
4.625% due 07/15/2024			1,000			934
5.125% due 05/01/2025			2,000			1,870
6.000% due 10/01/2020			1,000			1,016
6.750% due 06/15/2023 (g)			1,500			1,414
7.500% due 01/01/2022			450			457
8.125% due 04/01/2022			2,000			2,012
Tennant Co.
5.625% due 05/01/2025			1,000			948
Terex Corp.
5.625% due 02/01/2025			1,000			933
Teva Pharmaceutical Finance Netherlands BV
2.200% due 07/21/2021			750			690
3.150% due 10/01/2026			1,500			1,147
TopBuild Corp.
5.625% due 05/01/2026			2,000			1,840
TransDigm, Inc.
6.000% due 07/15/2022			500			489
6.375% due 06/15/2026			2,000			1,867
6.500% due 07/15/2024			1,500			1,464
Transocean Guardian Ltd.
5.875% due 01/15/2024			1,250			1,203
Transocean Pontus Ltd.
6.125% due 08/01/2025			1,000			970
Transocean, Inc.
6.800% due 03/15/2038			2,000			1,340
7.250% due 11/01/2025			1,000			878
7.500% due 01/15/2026			1,250			1,103
7.500% due 04/15/2031			2,500			1,906
9.000% due 07/15/2023			3,000			2,996
TreeHouse Foods, Inc.
4.875% due 03/15/2022			1,000			987
6.000% due 02/15/2024 (g)			1,000			994
Trinseo Materials Operating S.C.A.
5.375% due 09/01/2025			2,000			1,758
Triumph Group, Inc.
4.875% due 04/01/2021			1,500			1,354
7.750% due 08/15/2025			625			553
U.S. Concrete, Inc.
6.375% due 06/01/2024			2,000			1,850
U.S. Foods, Inc.
5.875% due 06/15/2024			1,250			1,220
United Rentals North America, Inc.
4.625% due 07/15/2023			1,000			985
4.625% due 10/15/2025			1,000			895
4.875% due 01/15/2028			1,000			880
5.500% due 07/15/2025			1,500			1,417
5.500% due 05/15/2027			1,500			1,395
5.875% due 09/15/2026			500			473
6.500% due 12/15/2026			500			494
Unitymedia GmbH
6.125% due 01/15/2025			1,000			1,010
Unitymedia Hessen GmbH & Co. KG
5.000% due 01/15/2025			3,000			2,946
Univar USA, Inc.
6.750% due 07/15/2023 (g)			1,000			991
Univision Communications, Inc.
5.125% due 05/15/2023			1,500			1,350
5.125% due 02/15/2025			4,000			3,520

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
6.750% due 09/15/2022	$		438	$		443
UPC Holding BV
5.500% due 01/15/2028			2,000			1,815
UPCB Finance Ltd.
5.375% due 01/15/2025			1,000			938
USA Compression Partners LP
6.875% due 04/01/2026			1,250			1,206
USG Corp.
4.875% due 06/01/2027			1,000			1,010
5.500% due 03/01/2025			1,250			1,264
Valeant Pharmaceuticals International
8.500% due 01/31/2027			1,500			1,459
9.250% due 04/01/2026			1,500			1,504
VeriSign, Inc.
4.625% due 05/01/2023			1,000			987
5.250% due 04/01/2025			1,000			994
Versum Materials, Inc.
5.500% due 09/30/2024			1,000			992
ViaSat, Inc.
5.625% due 09/15/2025			1,500			1,387
Videotron Ltd.
5.125% due 04/15/2027			750			711
5.375% due 06/15/2024			1,000			994
Viking Cruises Ltd.
5.875% due 09/15/2027			1,250			1,169
Virgin Media Finance PLC
5.750% due 01/15/2025			1,000			944
6.000% due 10/15/2024			1,500			1,446
Virgin Media Secured Finance PLC
5.250% due 01/15/2026			1,000			920
VOC Escrow Ltd.
5.000% due 02/15/2028			1,000			928
Wabash National Corp.
5.500% due 10/01/2025			2,000			1,722
Welbilt, Inc.
9.500% due 02/15/2024			1,000			1,074
WellCare Health Plans, Inc.
5.250% due 04/01/2025			1,250			1,208
5.375% due 08/15/2026			1,000			968
WESCO Distribution, Inc.
5.375% due 06/15/2024			1,000			946
West Street Merger Sub, Inc.
6.375% due 09/01/2025			3,000			2,670
Whiting Petroleum Corp.
5.750% due 03/15/2021			1,000			955
6.625% due 01/15/2026			500			431
WildHorse Resource Development Corp.
6.875% due 02/01/2025			1,000			950
Wind Tre SpA
5.000% due 01/20/2026			4,000			3,315
WMG Acquisition Corp.
5.000% due 08/01/2023			1,000			976
5.500% due 04/15/2026			1,000			958
WPX Energy, Inc.
5.750% due 06/01/2026			500			455
6.000% due 01/15/2022			500			489
8.250% due 08/01/2023			1,000			1,050
WR Grace & Co-Conn
5.125% due 10/01/2021			1,000			992
5.625% due 10/01/2024			1,000			999
Wynn Las Vegas LLC
5.250% due 05/15/2027			2,000			1,762
5.500% due 03/01/2025			1,000			935
Wynn Macau Ltd.
5.500% due 10/01/2027			1,000			873
XPO Logistics, Inc.
6.500% due 06/15/2022			1,125			1,119
Zayo Group LLC
5.750% due 01/15/2027			2,000			1,790
6.375% due 05/15/2025			1,000			934
Ziggo BV
5.500% due 01/15/2027			3,000			2,692
						656,694

16 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
UTILITIES 8.7%
AmeriGas Partners LP
5.500% due 05/20/2025	$		1,000	$		920
5.750% due 05/20/2027			500			445
Antero Midstream Partners LP
5.375% due 09/15/2024			500			469
Blue Racer Midstream LLC
6.125% due 11/15/2022			2,000			1,940
6.625% due 07/15/2026			625			584
Calpine Corp.
5.250% due 06/01/2026			750			687
5.375% due 01/15/2023			2,500			2,350
5.750% due 01/15/2025			2,500			2,294
CenturyLink, Inc.
5.800% due 03/15/2022			2,000			1,935
6.450% due 06/15/2021			1,000			1,001
Clearway Energy Operating LLC
5.000% due 09/15/2026			1,000			902
Covanta Holding Corp.
5.875% due 03/01/2024			1,025			966
5.875% due 07/01/2025			1,000			924
6.000% due 01/01/2027			500			450
CrownRock LP
5.625% due 10/15/2025			2,500			2,259
Embarq Corp.
7.995% due 06/01/2036			1,000			910
Frontier Communications Corp.
6.875% due 01/15/2025 (g)			1,500			769
8.500% due 04/01/2026			750			658
10.500% due 09/15/2022			1,250			875
11.000% due 09/15/2025			750			471
Genesis Energy LP
5.625% due 06/15/2024			1,000			862
6.000% due 05/15/2023			1,250			1,159
6.500% due 10/01/2025			1,000			885
6.750% due 08/01/2022			1,000			980
Jonah Energy LLC
7.250% due 10/15/2025 (g)			1,250			813
NGL Energy Partners LP
6.125% due 03/01/2025			750			649
7.500% due 11/01/2023			500			483
NGPL PipeCo LLC
4.375% due 08/15/2022			625			616
4.875% due 08/15/2027			1,250			1,183
Northwestern Bell Telephone
7.750% due 05/01/2030			1,208			1,281
NRG Energy, Inc.
6.250% due 05/01/2024			1,000			1,019
6.625% due 01/15/2027			1,500			1,517
NSG Holdings LLC
7.750% due 12/15/2025			1,205			1,277
Parsley Energy LLC
5.250% due 08/15/2025			1,000			910
5.375% due 01/15/2025			1,000			925

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
5.625% due 10/15/2027	$		1,500	$		1,371
6.250% due 06/01/2024			1,000			972
Sprint Capital Corp.
8.750% due 03/15/2032			2,500			2,644
Sprint Communications, Inc.
6.000% due 11/15/2022			1,500			1,476
7.000% due 03/01/2020			1,000			1,027
7.000% due 08/15/2020			1,000			1,026
Sprint Corp.
7.125% due 06/15/2024			1,750			1,739
7.250% due 09/15/2021			3,000			3,078
7.625% due 02/15/2025			2,000			2,005
7.625% due 03/01/2026			1,000			990
7.875% due 09/15/2023			4,000			4,115
Talen Energy Supply LLC
6.500% due 06/01/2025			1,000			715
Tallgrass Energy Partners LP
5.500% due 09/15/2024			2,000			1,975
5.500% due 01/15/2028			500			483
Targa Resources Partners LP
4.125% due 11/15/2019			750			745
4.250% due 11/15/2023			1,000			929
5.000% due 01/15/2028			1,000			907
5.250% due 05/01/2023			2,000			1,965
5.875% due 04/15/2026			1,000			977
Telecom Italia Capital S.A.
6.375% due 11/15/2033			1,000			908
Telecom Italia SpA
5.303% due 05/30/2024			3,000			2,861
TerraForm Power Operating LLC
4.250% due 01/31/2023			1,000			937
5.000% due 01/31/2028			1,000			884
6.625% due 06/15/2025 Ø			500			507
Vistra Energy Corp.
7.375% due 11/01/2022			2,000			2,070
7.625% due 11/01/2024			1,000			1,057
Vistra Operations Co. LLC
5.500% due 09/01/2026			1,500			1,449
						76,180
Total Corporate Bonds & Notes (Cost $852,848)						804,234
NON-AGENCY MORTGAGE-BACKED SECURITIES 0.1%
Bear Stearns ALT-A Trust
3.952% due 11/25/2036 ^~			403			358
Countrywide Alternative Loan Trust
2.700% due 05/20/2046 ^•			73			59
Countrywide Home Loan Mortgage Pass-Through Trust
3.146% due 03/25/2035 •			35			31
3.393% due 05/20/2036 ^~			198			185
GSR Mortgage Loan Trust
4.545% due 04/25/2035 ~			5			5
IndyMac Mortgage Loan Trust
6.000% due 07/25/2037 ^			335			322

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
WaMu Mortgage Pass-Through Certificates Trust
3.676% due 12/25/2036 ^~	$		262	$		247
Washington Mutual Mortgage Pass-Through Certificates Trust
3.127% due 05/25/2046 ^•			25			21
Total Non-Agency Mortgage-Backed Securities (Cost $812)						1,228
ASSET-BACKED SECURITIES 0.0%
Credit-Based Asset Servicing & Securitization Trust
2.576% due 01/25/2037 ^•			80			35
Total Asset-Backed Securities (Cost $56)						35
SHORT-TERM INSTRUMENTS 0.1%
REPURCHASE AGREEMENTS (f) 0.1%
						503
U.S. TREASURY BILLS 0.0%
2.332% due 01/31/2019 - 03/14/2019 (b)(c)(j)			309			308
Total Short-Term Instruments (Cost $811)						811
Total Investments in Securities (Cost $854,527)						806,308
		SHARES
INVESTMENTS IN AFFILIATES 9.3%
SHORT-TERM INSTRUMENTS 9.3%
CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 9.3%
PIMCO Short-Term Floating NAV Portfolio III			8,224,872			81,295
Total Short-Term Instruments (Cost $81,280)						81,295
Total Investments in Affiliates (Cost $81,280)						81,295
Total Investments 101.6% (Cost $935,807)				$		887,603
Financial Derivative Instruments (h)(i) (0.1)% (Cost or Premiums, net $1,133)						(535	)
Other Assets and Liabilities, net (1.5)%						(13,849	)
Net Assets 100.0%				$		873,219

NOTES TO SCHEDULE OF INVESTMENTS:

* A zero balance may reflect actual amounts rounding to less than one thousand.

^ Security is in default.

~ Variable or Floating rate security. Rate shown is the rate in effect as of period end. Certain variable rate securities are not based on a published reference rate and spread, rather are determined by the issuer or agent and are based on current market conditions. Reference rate is as of reset date, which may vary by security. These securities may not indicate a reference rate and/or spread in their description.

• Rate shown is the rate in effect as of period end. The rate may be based on a fixed rate, a capped rate or a floor rate and may convert to a variable or floating rate in the future. These securities do not indicate a reference rate and spread in their description.

Ø Coupon represents a rate which changes periodically based on a predetermined schedule or event. Rate shown is the rate in effect as of period end.

(a) Payment in-kind security.

(b) Coupon represents a weighted average yield to maturity.

(c) Zero coupon security.

(d) Perpetual maturity; date shown, if applicable, represents next contractual call date.

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 17

Schedule of Investments PIMCO High Yield Portfolio (Cont.)

(e) Contingent convertible security.

BORROWINGS AND OTHER FINANCING TRANSACTIONS

(f)  REPURCHASE AGREEMENTS:

Counterparty	Lending Rate			Settlement Date		Maturity Date		Principal Amount		Collateralized By	Collateral (Received)			Repurchase Agreements, at Value		Repurchase Agreement Proceeds to  be Received(1)
FICC		2.000	%		12/31/2018		01/02/2019	$	503	U.S. Treasury Notes 2.875% due 09/30/2023	$	(516	)	$	503	$	503
Total Repurchase Agreements											$	(516	)	$	503	$	503

REVERSE REPURCHASE AGREEMENTS:

Counterparty	Borrowing Rate(2)			Settlement Date		Maturity Date			Amount Borrowed(2)			Payable for Reverse Repurchase Agreements
BCY		(0.375	)%		11/29/2018		06/27/2020		$	(388	)	$	(388	)
		1.250			12/28/2018		TBD	(3)		(1,742	)		(1,743	)
		1.450			12/24/2018		TBD	(3)		(722	)		(722	)
		1.700			12/24/2018		TBD	(3)		(1,239	)		(1,239	)
		1.950			12/24/2018		TBD	(3)		(1,289	)		(1,290	)
		2.000			12/24/2018		TBD	(3)		(1,267	)		(1,268	)
BPS		3.220			12/24/2018		01/25/2019			(14,685	)		(14,697	)
BRC		(0.500	)		12/18/2018		TBD	(3)		(1,204	)		(1,204	)
		0.000			11/07/2018		TBD	(3)		(1,375	)		(1,375	)
		0.000			12/13/2018		TBD	(3)		(2,164	)		(2,164	)
		1.000			12/24/2018		TBD	(3)		(792	)		(792	)
		1.250			12/28/2018		TBD	(3)		(1,312	)		(1,311	)
		1.750			12/24/2018		TBD	(3)		(949	)		(949	)
		2.150			12/24/2018		TBD	(3)		(475	)		(475	)
		2.350			12/24/2018		TBD	(3)		(649	)		(649	)
Total Reverse Repurchase Agreements												$	(30,266	)

BORROWINGS AND OTHER FINANCING TRANSACTIONS SUMMARY

The following is a summary by counterparty of the market value of Borrowings and Other Financing Transactions and collateral pledged/(received) as of December 31, 2018:

Counterparty	Repurchase Agreement Proceeds to  be Received(1)		Payable for Reverse Repurchase Agreements			Payable for Sale-Buyback Transactions		Total Borrowings and Other Financing Transactions			Collateral Pledged/(Received)			Net Exposure(4)
Global/Master Repurchase Agreement
BCY	$	0	$	(6,650	)	$	0	$	(6,650	)	$	7,469		$	819
BPS		0		(14,697	)		0		(14,697	)		16,662			1,965
BRC		0		(8,919	)		0		(8,919	)		9,345			426
FICC		503		0			0		503			(516	)		(13	)
Total Borrowings and Other Financing Transactions	$	503	$	(30,266	)	$	0

CERTAIN TRANSFERS ACCOUNTED FOR AS SECURED BORROWINGS

Remaining Contractual Maturity of the Agreements

	Overnight and Continuous		Up to 30 days			31-90 days		Greater Than 90 days			Total
Reverse Repurchase Agreements
Corporate Bonds & Notes	$	0	$	(14,697	)	$	0	$	(15,569	)	$	(30,266	)
Total Borrowings	$	0	$	(14,697	)	$	0	$	(15,569	)	$	(30,266	)
Payable for reverse repurchase agreements											$	(30,266	)

(g) Securities with an aggregate market value of $33,476 have been pledged as collateral under the terms of the above master agreements as of December 31, 2018.

⁽¹⁾ Includes accrued interest.

⁽²⁾ The average amount of borrowings outstanding during the period ended December 31, 2018 was $(16,785) at a weighted average interest rate of 0.522%. Average borrowings may include sale-buyback transactions and reverse repurchase agreements, if held during the period.

18 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

⁽³⁾ Open maturity reverse repurchase agreement.

⁽⁴⁾ Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from borrowings and other financing transactions can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information regarding master netting arrangements.

(h)  FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED

WRITTEN OPTIONS:

OPTIONS ON EXCHANGE-TRADED FUTURES CONTRACTS

Description	Strike Price		Expiration Date		# of Contracts		Notional Amount		Premiums (Received)			Market Value
Put - CBOT U.S. Treasury 10-Year Note February 2019 Futures	$	119.000		01/25/2019		85	$	85	$	(21	)	$	(3	)
Put - CBOT U.S. Treasury 10-Year Note February 2019 Futures		119.500		01/25/2019		73		73		(15	)		(3	)
Put - CBOT U.S. Treasury 10-Year Note February 2019 Futures		120.000		01/25/2019		21		21		(5	)		(1	)
Call - CBOT U.S. Treasury 10-Year Note February 2019 Futures		121.000		01/25/2019		85		85		(20	)		(92	)
Call - CBOT U.S. Treasury 10-Year Note February 2019 Futures		122.000		01/25/2019		94		94		(22	)		(44	)
Total Written Options									$	(83	)	$	(143	)

SWAP AGREEMENTS:

CREDIT DEFAULT SWAPS ON CREDIT INDICES - SELL PROTECTION⁽¹⁾

Index/Tranches	Fixed Receive Rate			Payment Frequency	Maturity Date		Notional Amount(2)		Premiums Paid/(Received)		Unrealized Appreciation/ (Depreciation)			Market Value(3)		Variation Margin
																Asset		Liability
CDX.HY-30 5-Year Index		5.000	%	Quarterly		06/20/2023	$	10,000	$	712	$	(388	)	$	324	$	13	$	0
CDX.HY-31 5-Year Index		5.000		Quarterly		12/20/2023		10,000		600		(381	)		219		15		0
Total Swap Agreements									$	1,312	$	(769	)	$	543	$	28	$	0

FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED SUMMARY

The following is a summary of the market value and variation margin of Exchange-Traded or Centrally Cleared Financial Derivative Instruments as of December 31, 2018:

	Financial Derivative Assets							Financial Derivative Liabilities
	Market Value		Variation Margin Asset					Market Value		Variation Margin Liability
	Purchased Options		Futures		Swap Agreements		Total	Written Options		Futures		Swap Agreements		Total
Total Exchange-Traded or Centrally Cleared	$	0	$	0	$	28	$    28	$	(143)	$	0	$	0	$	(143)

Cash of $2,916 has been pledged as collateral for exchange-traded and centrally cleared financial derivative instruments as of December 31, 2018. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information regarding master netting arrangements.

⁽¹⁾ If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽²⁾ The maximum potential amount the Portfolio could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

⁽³⁾ The prices and resulting values for credit default swap agreements serve as indicators of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced indices’ credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

(i)  FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER

FORWARD FOREIGN CURRENCY CONTRACTS:

Counterparty	Settlement Month		Currency to be Delivered		Currency to be Received		Unrealized Appreciation/ (Depreciation)
							Asset		Liability
CBK		01/2019	EUR	664	$	755	$	0	$	(6	)
Total Forward Foreign Currency Contracts							$	0	$	(6	)

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 19

Schedule of Investments PIMCO High Yield Portfolio (Cont.)

SWAP AGREEMENTS:

TOTAL RETURN SWAPS ON INTEREST RATE INDICES

Counterparty	Pay/Receive(1)	Underlying Reference	# of Units		Financing Rate	Payment Frequency	Maturity Date	Notional Amount		Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Swap Agreements, at Value
																Asset		Liability
BOA	Receive	iBoxx USD Liquid High Yield Index		N/A	3-Month USD LIBOR	Maturity	03/20/2019	$	10,000	$	(15	)	$	(108	)	$	0	$	(123	)
GST	Receive	iBoxx USD Liquid High Yield Index		N/A	3-Month USD LIBOR	Maturity	03/20/2019		5,000		(27	)		(65	)		0		(92	)
JPM	Receive	iBoxx USD Liquid High Yield Index		N/A	3-Month USD LIBOR	Maturity	06/20/2019		5,000		(27	)		(67	)		0		(94	)
MYC	Receive	iBoxx USD Liquid High Yield Index		N/A	3-Month USD LIBOR	Maturity	06/20/2019		5,000		(27	)		(78	)		0		(105	)
Total Swap Agreements										$	(96	)	$	(318	)	$	0	$	(414	)

FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER SUMMARY

The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral pledged as of December 31, 2018:

	Financial Derivative Assets								Financial Derivative Liabilities
Counterparty	Forward Foreign Currency Contracts		Purchased Options		Swap Agreements		Total Over the Counter		Forward Foreign Currency Contracts			Written Options		Swap Agreements			Total Over the Counter			Net Market Value of OTC Derivatives			Collateral Pledged		Net Exposure(2)
BOA	$	0	$	0	$	0	$	0	$	0		$	0	$	(123	)	$	(123	)	$	(123	)	$	308	$	185
CBK		0		0		0		0		(6	)		0		0			(6	)		(6	)		0		(6	)
GST		0		0		0		0		0			0		(92	)		(92	)		(92	)		0		(92	)
JPM		0		0		0		0		0			0		(94	)		(94	)		(94	)		0		(94	)
MYC		0		0		0		0		0			0		(105	)		(105	)		(105	)		0		(105	)
Total Over the Counter	$	0	$	0	$	0	$	0	$	(6	)	$	0	$	(414	)	$	(420	)

(j) Securities with an aggregate market value of $308 have been pledged as collateral for financial derivative instruments as governed by International Swaps and Derivatives Association, Inc. master agreements as of December 31, 2018.

⁽¹⁾ Receive represents that the Portfolio receives payments for any positive net return on the underlying reference. The Portfolio makes payments for any negative net return on such underlying reference. Pay represents that the Portfolio receives payments for any negative net return on the underlying reference. The Portfolio makes payments for any positive net return on such underlying reference.

⁽²⁾ Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information regarding master netting arrangements.

FAIR VALUE OF FINANCIAL DERIVATIVE INSTRUMENTS

The following is a summary of the fair valuation of the Portfolio’s derivative instruments categorized by risk exposure. See Note 7, Principal Risks, in the Notes to Financial Statements on risks of the Portfolio.

Fair Values of Financial Derivative Instruments on the Statement of Assets and Liabilities as of December 31, 2018:

	Derivatives not accounted for as hedging instruments
	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Exchange Contracts		Interest Rate Contracts		Total
Financial Derivative Instruments - Assets
Exchange-traded or centrally cleared
Swap Agreements	$	0	$	28	$	0	$	0	$	0	$	28
Financial Derivative Instruments - Liabilities
Exchange-traded or centrally cleared
Written Options	$	0	$	0	$	0	$	0	$	143	$	143
Over the counter
Forward Foreign Currency Contracts	$	0	$	0	$	0	$	6	$	0	$	6
Swap Agreements		0		0		0		0		414		414
	$	0	$	0	$	0	$	6	$	414	$	420
	$	0	$	0	$	0	$	6	$	557	$	563

20 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

The effect of Financial Derivative Instruments on the Statement of Operations for the period ended December 31, 2018:

	Derivatives not accounted for as hedging instruments
	Commodity Contracts		Credit Contracts			Equity Contracts		Foreign Exchange Contracts			Interest Rate Contracts			Total
Net Realized Gain (Loss) on Financial Derivative Instruments
Exchange-traded or centrally cleared
Written Options	$	0	$	0		$	0	$	0		$	197		$	197
Futures		0		0			0		0			(134	)		(134	)
Swap Agreements		0		1,204			0		0			(6	)		1,198
	$	0	$	1,204		$	0	$	0		$	57		$	1,261
Over the counter
Forward Foreign Currency Contracts	$	0	$	0		$	0	$	(392	)	$	0		$	(392	)
Written Options		0		50			0		0			50			100
Swap Agreements		0		0			0		0			(597	)		(597	)
	$	0	$	50		$	0	$	(392	)	$	(547	)	$	(889	)
	$	0	$	1,254		$	0	$	(392	)	$	(490	)	$	372
Net Change in Unrealized Appreciation (Depreciation) on Financial Derivative Instruments
Exchange-traded or centrally cleared
Written Options	$	0	$	0		$	0	$	0		$	(60	)	$	(60	)
Swap Agreements		0		(1,205	)		0		0			0			(1,205	)
	$	0	$	(1,205	)	$	0	$	0		$	(60	)	$	(1,265	)
Over the counter
Forward Foreign Currency Contracts	$	0	$	0		$	0	$	125		$	0		$	125
Swap Agreements		0		0			0		0			(372	)		(372	)
	$	0	$	0		$	0	$	125		$	(372	)	$	(247	)
	$	0	$	(1,205	)	$	0	$	125		$	(432	)	$	(1,512	)

FAIR VALUE MEASUREMENTS

The following is a summary of the fair valuations according to the inputs used as of December 31, 2018 in valuing the Portfolio’s assets and liabilities:

Category and Subcategory	Level 1		Level 2		Level 3		Fair Value at 12/31/2018
Investments in Securities, at Value
Corporate Bonds & Notes
Banking & Finance	$	0	$	71,360	$	0	$	71,360
Industrials		0		656,694		0		656,694
Utilities		0		76,180		0		76,180
Non-Agency Mortgage-Backed Securities		0		1,228		0		1,228
Asset-Backed Securities		0		35		0		35
Short-Term Instruments
Repurchase Agreements		0		503		0		503
U.S. Treasury Bills		0		308		0		308
	$	0	$	806,308	$	0	$	806,308

Category and Subcategory	Level 1		Level 2			Level 3		Fair Value at 12/31/2018
Investments in Affiliates, at Value
Short-Term Instruments
Central Funds Used for Cash Management Purposes	$	81,295	$	0		$	0	$	81,295
Total Investments	$	81,295	$	806,308		$	0	$	887,603
Financial Derivative Instruments - Assets
Exchange-traded or centrally cleared	$	0	$	28		$	0	$	28
Financial Derivative Instruments - Liabilities
Exchange-traded or centrally cleared		0		(143	)		0		(143	)
Over the counter		0		(420	)		0		(420	)
	$	0	$	(563	)	$	0	$	(563	)
Total Financial Derivative Instruments	$	0	$	(535	)	$	0	$	(535	)
Totals	$	81,295	$	805,773		$	0	$	887,068

There were no significant transfers into or out of Level 3 during the period ended December 31, 2018.

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 21

Notes to Financial Statements

1. ORGANIZATION

PIMCO Variable Insurance Trust (the “Trust”) is a Delaware statutory trust established under a trust instrument dated October 3, 1997. The Trust is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Trust is designed to be used as an investment vehicle by separate accounts of insurance companies that fund variable annuity contracts and variable life insurance policies and by qualified pension and retirement plans. Information presented in these financial statements pertains to the Institutional Class, Administrative Class and Advisor Class shares of the PIMCO High Yield Portfolio (the “Portfolio”) offered by the Trust. Pacific Investment Management Company LLC (“PIMCO”) serves as the investment adviser (the “Adviser”) for the Portfolio.

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Portfolio is treated as an investment company under the reporting requirements of U.S. GAAP. The functional and reporting currency for the Portfolio is the U.S. dollar. The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

(a) Securities Transactions and Investment Income  Securities transactions are recorded as of the trade date for financial reporting purposes. Securities purchased or sold on a when-issued or delayed-delivery basis may be settled beyond a standard settlement period for the security after the trade date. Realized gains (losses) from securities sold are recorded on the identified cost basis. Dividend income is recorded on the ex-dividend date, except certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Portfolio is informed of the ex-dividend date. Interest income, adjusted for the accretion of discounts and amortization of premiums, is recorded on the accrual basis from settlement date, with the exception of securities with a forward starting effective date, where interest income is recorded on the accrual basis from effective date. For convertible securities, premiums attributable to the conversion feature are not amortized. Estimated tax liabilities on certain foreign securities are recorded on an accrual basis and are reflected as components of interest income or net change in unrealized appreciation (depreciation) on investments on the Statement of

Operations, as appropriate. Tax liabilities realized as a result of such security sales are reflected as a component of net realized gain (loss) on investments on the Statement of Operations. Paydown gains (losses) on mortgage-related and other asset-backed securities, if any, are recorded as components of interest income on the Statement of Operations. Income or short-term capital gain distributions received from registered investment companies, if any, are recorded as dividend income. Long-term capital gain distributions received from registered investment companies, if any, are recorded as realized gains.

Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivable when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is probable.

(b) Foreign Currency Translation  The market values of foreign securities, currency holdings and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the current exchange rates each business day. Purchases and sales of securities and income and expense items denominated in foreign currencies, if any, are translated into U.S. dollars at the exchange rate in effect on the transaction date. The Portfolio does not separately report the effects of changes in foreign exchange rates from changes in market prices on securities held. Such changes are included in net realized gain (loss) and net change in unrealized appreciation (depreciation) from investments on the Statement of Operations. The Portfolio may invest in foreign currency-denominated securities and may engage in foreign currency transactions either on a spot (cash) basis at the rate prevailing in the currency exchange market at the time or through a forward foreign currency contract. Realized foreign exchange gains (losses) arising from sales of spot foreign currencies, currency gains (losses) realized between the trade and settlement dates on securities transactions and the difference between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid are included in net realized gain (loss) on foreign currency transactions on the Statement of Operations. Net unrealized foreign exchange gains (losses) arising from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period are included in net change in unrealized appreciation (depreciation) on foreign currency assets and liabilities on the Statement of Operations.

(c) Multi-Class Operations  Each class offered by the Trust has equal rights as to assets and voting privileges (except that shareholders of a class have exclusive voting rights regarding any matter relating solely to that class of shares). Income and non-class specific expenses are

22 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

allocated daily to each class on the basis of the relative net assets. Realized and unrealized capital gains (losses) are allocated daily based on the relative net assets of each class of the Portfolio. Class specific expenses, where applicable, currently include supervisory and administrative and distribution and servicing fees. Under certain circumstances, the per share net asset value (“NAV”) of a class of the Portfolio’s shares may be different from the per share NAV of another class of shares as a result of the different daily expense accruals applicable to each class of shares.

(d) Distributions to Shareholders  Distributions from net investment income, if any, are declared daily and distributed to shareholders monthly. Net realized capital gains earned by the Portfolio, if any, will be distributed no less frequently than once each year.

Income distributions and capital gain distributions are determined in accordance with income tax regulations which may differ from U.S. GAAP. Differences between tax regulations and U.S. GAAP may cause timing differences between income and capital gain recognition. Further, the character of investment income and capital gains may be different for certain transactions under the two methods of accounting. As a result, income distributions and capital gain distributions declared during a fiscal period may differ significantly from the net investment income (loss) and realized gains (losses) reported on the Portfolio’s annual financial statements presented under U.S. GAAP.

If the Portfolio estimates that a portion of its distribution may be comprised of amounts from sources other than net investment income in accordance with its policies and good accounting practices, the Portfolio will notify shareholders of the estimated composition of such distribution through a Section 19 Notice. For these purposes, the Portfolio estimates the source or sources from which a distribution is paid, to the close of the period as of which it is paid, in reference to its internal accounting records and related accounting practices. If, based on such accounting records and practices, it is estimated that a particular distribution does not include capital gains or paid-in surplus or other capital sources, a Section 19 Notice generally would not be issued. It is important to note that differences exist between the Portfolio’s daily internal accounting records and practices, the Portfolio’s financial statements presented in accordance with U.S. GAAP, and recordkeeping practices under income tax regulations. For instance, the Portfolio’s internal accounting records and practices may take into account, among other factors, tax-related characteristics of certain sources of distributions that differ from treatment under U.S. GAAP. Examples of such differences may include, among others, the treatment of paydowns on mortgage-backed securities purchased at a discount and periodic payments under interest rate swap contracts. Accordingly, among other consequences, it is possible that the Portfolio may not issue a Section 19 Notice in situations where the Portfolio’s

financial statements prepared later and in accordance with U.S. GAAP and/or the final tax character of those distributions might later report that the sources of those distributions included capital gains and/or a return of capital. Final determination of a distribution’s tax character will be provided to shareholders when such information is available.

Distributions classified as a tax basis return of capital, if any, are reflected on the Statements of Changes in Net Assets and have been recorded to paid in capital on the Statement of Assets and Liabilities. In addition, other amounts have been reclassified between distributable earnings (accumulated loss) and paid in capital on the Statement of Assets and Liabilities to more appropriately conform U.S. GAAP to tax characterizations of distributions.

(e) New Accounting Pronouncements  In August 2016, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”), ASU 2016-15, which amends Accounting Standards Codification (“ASC”) 230 to clarify guidance on the classification of certain cash receipts and cash payments in the Statement of Cash Flows. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In November 2016, the FASB issued ASU 2016-18 which amends ASC 230 to provide guidance on the classification and presentation of changes in restricted cash and restricted cash equivalents on the Statement of Cash Flows. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In March 2017, the FASB issued ASU 2017-08 which provides guidance related to the amortization period for certain purchased callable debt securities held at a premium. The ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In August 2018, the FASB issued ASU 2018-13 which modifies certain disclosure requirements for fair value measurements in ASC 820. The ASU is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. At this time, management has elected to early adopt the amendments that allow for removal of certain disclosure requirements. Management plans to adopt the amendments that require additional fair value measurement disclosures for annual periods beginning after December 15, 2019, and interim periods within those annual periods. Management is currently evaluating the impact of these changes on the financial statements.

ANNUAL REPORT DECEMBER 31, 2018 23

Notes to Financial Statements (Cont.)

In August 2018, the U.S. Securities and Exchange Commission (“SEC”) adopted amendments to certain rules and forms for the purpose of disclosure update and simplification. The compliance date for these amendments is 30 days after date of publication in the Federal Register, which was on October 4, 2018. Management has adopted these amendments and the changes are incorporated throughout all periods presented in the financial statements.

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

(a) Investment Valuation Policies  The price of the Portfolio’s shares is based on the Portfolio’s NAV. The NAV of the Portfolio, or each of its share classes, as applicable, is determined by dividing the total value of portfolio investments and other assets, less any liabilities attributable to the Portfolio or class, by the total number of shares outstanding of the Portfolio or class.

On each day that the New York Stock Exchange (“NYSE”) is open, Portfolio shares are ordinarily valued as of the close of regular trading (“NYSE Close”). Information that becomes known to the Portfolio or its agents after the time as of which NAV has been calculated on a particular day will not generally be used to retroactively adjust the price of a security or the NAV determined earlier that day. The Portfolio reserves the right to change the time as of which its NAV is calculated if the Portfolio closes earlier, or as permitted by the SEC.

For purposes of calculating a NAV, portfolio securities and other assets for which market quotes are readily available are valued at market value. Market value is generally determined on the basis of official closing prices or the last reported sales prices, or if no sales are reported, based on quotes obtained from established market makers or prices (including evaluated prices) supplied by the Portfolio’s approved pricing services, quotation reporting systems and other third-party sources (together, “Pricing Services”). The Portfolio will normally use pricing data for domestic equity securities received shortly after the NYSE Close and does not normally take into account trading, clearances or settlements that take place after the NYSE Close. If market value pricing is used, a foreign (non-U.S.) equity security traded on a foreign exchange or on more than one exchange is typically valued using pricing information from the exchange considered by the Adviser to be the primary exchange. A foreign (non-U.S.) equity security will be valued as of the close of trading on the foreign exchange, or the NYSE Close, if the NYSE Close occurs before the end of trading on the foreign exchange. Domestic and foreign (non-U.S.) fixed income securities, non-exchange traded derivatives, and equity options are normally valued on the basis of quotes obtained from brokers and dealers or Pricing Services using data reflecting the earlier closing of the principal markets for those securities. Prices obtained from Pricing

Services may be based on, among other things, information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics. Certain fixed income securities purchased on a delayed-delivery basis are marked to market daily until settlement at the forward settlement date. Exchange-traded options, except equity options, futures and options on futures are valued at the settlement price determined by the relevant exchange. Swap agreements are valued on the basis of bid quotes obtained from brokers and dealers or market-based prices supplied by Pricing Services. The Portfolio’s investments in open-end management investment companies, other than exchange-traded funds (“ETFs”), are valued at the NAVs of such investments. Open-end management investment companies may include affiliated funds.

If a foreign (non-U.S.) equity security’s value has materially changed after the close of the security’s primary exchange or principal market but before the NYSE Close, the security may be valued at fair value based on procedures established and approved by the Board of Trustees of the Trust (the “Board”). Foreign (non-U.S.) equity securities that do not trade when the NYSE is open are also valued at fair value. With respect to foreign (non-U.S.) equity securities, the Portfolio may determine the fair value of investments based on information provided by Pricing Services and other third-party vendors, which may recommend fair value or adjustments with reference to other securities, indices or assets. In considering whether fair valuation is required and in determining fair values, the Portfolio may, among other things, consider significant events (which may be considered to include changes in the value of U.S. securities or securities indices) that occur after the close of the relevant market and before the NYSE Close. The Portfolio may utilize modeling tools provided by third-party vendors to determine fair values of foreign (non-U.S.) securities. For these purposes, any movement in the applicable reference index or instrument (“zero trigger”) between the earlier close of the applicable foreign market and the NYSE Close may be deemed to be a significant event, prompting the application of the pricing model (effectively resulting in daily fair valuations). Foreign exchanges may permit trading in foreign (non-U.S.) equity securities on days when the Trust is not open for business, which may result in the Portfolio’s portfolio investments being affected when shareholders are unable to buy or sell shares.

Senior secured floating rate loans for which an active secondary market exists to a reliable degree will be valued at the mean of the last available bid/ask prices in the market for such loans, as provided by a Pricing Service. Senior secured floating rate loans for which an active secondary market does not exist to a reliable degree will be valued at fair value, which is intended to approximate market value. In valuing a senior secured floating rate loan at fair value, the factors considered

24 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

may include, but are not limited to, the following: (a) the creditworthiness of the borrower and any intermediate participants, (b) the terms of the loan, (c) recent prices in the market for similar loans, if any, and (d) recent prices in the market for instruments of similar quality, rate, period until next interest rate reset and maturity.

Investments valued in currencies other than the U.S. dollar are converted to the U.S. dollar using exchange rates obtained from Pricing Services. As a result, the value of such investments and, in turn, the NAV of the Portfolio’s shares may be affected by changes in the value of currencies in relation to the U.S. dollar. The value of investments traded in markets outside the United States or denominated in currencies other than the U.S. dollar may be affected significantly on a day that the Trust is not open for business. As a result, to the extent that the Portfolio holds foreign (non-U.S.) investments, the value of those investments may change at times when shareholders are unable to buy or sell shares and the value of such investments will be reflected in the Portfolio’s next calculated NAV.

Investments for which market quotes or market based valuations are not readily available are valued at fair value as determined in good faith by the Board or persons acting at their direction. The Board has adopted methods for valuing securities and other assets in circumstances where market quotes are not readily available, and has delegated to the Adviser the responsibility for applying the fair valuation methods. In the event that market quotes or market based valuations are not readily available, and the security or asset cannot be valued pursuant to a Board approved valuation method, the value of the security or asset will be determined in good faith by the Board. Market quotes are considered not readily available in circumstances where there is an absence of current or reliable market-based data (e.g., trade information, bid/ask information, indicative market quotations (“Broker Quotes”), Pricing Services’ prices), including where events occur after the close of the relevant market, but prior to the NYSE Close, that materially affect the values of the Portfolio’s securities or assets. In addition, market quotes are considered not readily available when, due to extraordinary circumstances, the exchanges or markets on which the securities trade do not open for trading for the entire day and no other market prices are available. The Board has delegated, to the Adviser, the responsibility for monitoring significant events that may materially affect the values of the Portfolio’s securities or assets and for determining whether the value of the applicable securities or assets should be reevaluated in light of such significant events.

When the Portfolio uses fair valuation to determine the value of a portfolio security or other asset for purposes of calculating its NAV, such investments will not be priced on the basis of quotes from the primary market in which they are traded, but rather may be priced by

another method that the Board or persons acting at their direction believe reflects fair value. Fair valuation may require subjective determinations about the value of a security. While the Trust’s policy is intended to result in a calculation of the Portfolio’s NAV that fairly reflects security values as of the time of pricing, the Trust cannot ensure that fair values determined by the Board or persons acting at their direction would accurately reflect the price that the Portfolio could obtain for a security if it were to dispose of that security as of the time of pricing (for instance, in a forced or distressed sale). The prices used by the Portfolio may differ from the value that would be realized if the securities were sold. The Portfolio’s use of fair valuation may also help to deter “stale price arbitrage” as discussed under the “Frequent or Excessive Purchases, Exchanges and Redemptions” section in the Portfolio’s prospectus.

(b) Fair Value Hierarchy  U.S. GAAP describes fair value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into levels (Level 1, 2, or 3). The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Levels 1, 2, and 3 of the fair value hierarchy are defined as follows:

^∎  Level 1 — Quoted prices in active markets or exchanges for identical assets and liabilities.

^∎  Level 2 — Significant other observable inputs, which may include, but are not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market corroborated inputs.

^∎  Level 3 — Significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, which may include assumptions made by the Board or persons acting at their direction that are used in determining the fair value of investments.

In accordance with the requirements of U.S. GAAP, the amounts of transfers into and out of Level 3, if material, are disclosed in the Notes to Schedule of Investments for the Portfolio.

For fair valuations using significant unobservable inputs, U.S. GAAP requires a reconciliation of the beginning to ending balances for reported fair values that presents changes attributable to realized gain

ANNUAL REPORT DECEMBER 31, 2018 25

Notes to Financial Statements (Cont.)

(loss), unrealized appreciation (depreciation), purchases and sales, accrued discounts (premiums), and transfers into and out of the Level 3 category during the period. The end of period value is used for the transfers between Levels of the Portfolio’s assets and liabilities. Additionally, U.S. GAAP requires quantitative information regarding the significant unobservable inputs used in the determination of fair value of assets or liabilities categorized as Level 3 in the fair value hierarchy. In accordance with the requirements of U.S. GAAP, a fair value hierarchy, and if material, a Level 3 reconciliation and details of significant unobservable inputs, have been included in the Notes to Schedule of Investments for the Portfolio.

(c) Valuation Techniques and the Fair Value Hierarchy

Level 1 and Level 2 trading assets and trading liabilities, at fair value The valuation methods (or “techniques”) and significant inputs used in determining the fair values of portfolio securities or other assets and liabilities categorized as Level 1 and Level 2 of the fair value hierarchy are as follows:

Fixed income securities including corporate, convertible and municipal bonds and notes, U.S. government agencies, U.S. treasury obligations, sovereign issues, bank loans, convertible preferred securities and non-U.S. bonds are normally valued on the basis of quotes obtained from brokers and dealers or Pricing Services that use broker-dealer quotations, reported trades or valuation estimates from their internal pricing models. The Pricing Services’ internal models use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar assets. Securities that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

Mortgage-related and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also normally valued by Pricing Services that use broker-dealer quotations, reported trades or valuation estimates from their internal pricing models. The pricing models for these securities usually consider tranche-level attributes, current market data, estimated cash flows and market-based yield spreads for each tranche, and incorporate deal collateral performance, as available. Mortgage-related and asset-backed securities that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

Investments in registered open-end investment companies (other than ETFs) will be valued based upon the NAVs of such investments and are categorized as Level 1 of the fair value hierarchy. Investments in unregistered open-end investment companies will be calculated based upon the NAVs of such investments and are considered Level 1 provided that the NAVs are observable, calculated daily and are the value at which both purchases and sales will be conducted.

Equity exchange-traded options and over the counter financial derivative instruments, such as forward foreign currency contracts and options contracts derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors. These contracts are normally valued on the basis of quotes obtained from a quotation reporting system, established market makers or Pricing Services (normally determined as of the NYSE Close). Depending on the product and the terms of the transaction, financial derivative instruments can be valued by Pricing Services using a series of techniques, including simulation pricing models. The pricing models use inputs that are observed from actively quoted markets such as quoted prices, issuer details, indices, bid/ask spreads, interest rates, implied volatilities, yield curves, dividends and exchange rates. Financial derivative instruments that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

Centrally cleared swaps and over the counter swaps derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors. They are valued using a broker-dealer bid quotation or on market-based prices provided by Pricing Services (normally determined as of the NYSE close). Centrally cleared swaps and over the counter swaps can be valued by Pricing Services using a series of techniques, including simulation pricing models. The pricing models may use inputs that are observed from actively quoted markets such as the overnight index swap rate (“OIS”), London Interbank Offered Rate (“LIBOR”) forward rate, interest rates, yield curves and credit spreads. These securities are categorized as Level 2 of the fair value hierarchy.

Level 3 trading assets and trading liabilities, at fair value  When a fair valuation method is applied by the Adviser that uses significant unobservable inputs, investments will be priced by a method that the Board or persons acting at their direction believe reflects fair value and are categorized as Level 3 of the fair value hierarchy.

Short-term debt instruments (such as commercial paper) having a remaining maturity of 60 days or less may be valued at amortized cost, so long as the amortized cost value of such short-term debt instruments is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. These securities are categorized as Level 2 or Level 3 of the fair value hierarchy depending on the source of the base price.

4. SECURITIES AND OTHER INVESTMENTS

(a) Investments in Affiliates

The Portfolio may invest in the PIMCO Short Asset Portfolio and the PIMCO Short-Term Floating NAV Portfolio III (“Central Funds”) to the extent permitted by the Act and rules thereunder. The Central Funds

26 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

are registered investment companies created for use solely by the series of the Trust and other series of registered investment companies advised by the Adviser, in connection with their cash management activities. The main investments of the Central Funds are money market and short maturity fixed income instruments. The Central Funds may incur expenses related to their investment activities, but do not pay Investment Advisory Fees or Supervisory and Administrative Fees to the Adviser. The Central Funds are considered to be affiliated with the Portfolio. The tables below show the Portfolio’s transactions in and earnings from investments in the affiliated Funds for the period ended December 31, 2018 (amounts in thousands^†):

Investment in PIMCO Short Asset Portfolio

Market Value 12/31/2017		Purchases at Cost		Proceeds from Sales			Net Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)		Market Value 12/31/2018		Dividend Income(1)		Realized Net Capital  Gain Distributions(1)
$	20,022	$	25,244	$	(45,209	)	$	(61	)	$	4	$	0	$	274	$	12

Investment in PIMCO Short-Term Floating NAV Portfolio III

Market Value 12/31/2017		Purchases at Cost		Proceeds from Sales			Net Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)		Market Value 12/31/2018		Dividend Income(1)		Realized Net Capital Gain Distributions(1)
$	58,912	$	363,780	$	(341,400	)	$	(7	)	$	10	$	81,295	$	1,780	$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽¹⁾  The tax characterization of distributions is determined in accordance with Federal income tax regulations and may contain a return of capital. The actual tax characterization of distributions received is determined at the end of the fiscal year of the affiliated fund. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

(b) Investments in Securities

The Portfolio may utilize the investments and strategies described below to the extent permitted by the Portfolio’s investment policies.

Loans and Other Indebtedness, Loan Participations and Assignments  are direct debt instruments which are interests in amounts owed to lenders or lending syndicates by corporate, governmental, or other borrowers. The Portfolio’s investments in loans may be in the form of participations in loans or assignments of all or a portion of loans from third parties or investments in or originations of loans by the Portfolio. A loan is often administered by a bank or other financial institution (the “agent”) that acts as agent for all holders. The agent administers the terms of the loan, as specified in the loan agreement. The Portfolio may invest in multiple series or tranches of a loan, which may have varying terms and carry different associated risks. When the Portfolio purchases assignments from agents it acquires direct rights against the borrowers of the loans. These loans may include participations in bridge loans, which are loans taken out by borrowers for a short period (typically less than one year) pending arrangement of more permanent financing through, for example, the issuance of bonds, frequently high yield bonds issued for the purpose of acquisitions.

The types of loans and related investments in which the Portfolio may invest include, among others, senior loans, subordinated loans (including second lien loans, B-Notes and mezzanine loans), whole loans, commercial real estate and other commercial loans and structured loans. The Portfolio may originate loans or acquire direct interests in loans through primary loan distributions and/or in private

transactions. In the case of subordinated loans, there may be significant indebtedness ranking ahead of the borrower’s obligation to the holder of such a loan, including in the event of the borrower’s insolvency. Mezzanine loans are typically secured by a pledge of an equity interest in the mortgage borrower that owns the real estate rather than an interest in a mortgage.

Investments in loans may include unfunded loan commitments, which are contractual obligations for funding. Unfunded loan commitments may include revolving credit facilities, which may obligate the Portfolio to supply additional cash to the borrower on demand. Unfunded loan commitments represent a future obligation in full, even though a percentage of the committed amount may not be utilized by the borrower. When investing in a loan participation, the Portfolio has the right to receive payments of principal, interest and any fees to which it is entitled only from the agent selling the loan agreement and only upon receipt of payments by the agent from the borrower. The Portfolio may receive a commitment fee based on the undrawn portion of the underlying line of credit portion of a loan. In certain circumstances, the Portfolio may receive a penalty fee upon the prepayment of a loan by a borrower. Fees earned or paid are recorded as a component of interest income or interest expense, respectively, on the Statement of Operations. Unfunded loan commitments are reflected as a liability on the Statement of Assets and Liabilities.

Mortgage-Related and Other Asset-Backed Securities  directly or indirectly represent a participation in, or are secured by and payable from, loans on real property. Mortgage-related securities are created from pools of residential or commercial mortgage loans, including mortgage loans

ANNUAL REPORT DECEMBER 31, 2018 27

Notes to Financial Statements (Cont.)

made by savings and loan institutions, mortgage bankers, commercial banks and others. These securities provide a monthly payment which consists of both interest and principal. Interest may be determined by fixed or adjustable rates. The rate of prepayments on underlying mortgages will affect the price and volatility of a mortgage-related security, and may have the effect of shortening or extending the effective duration of the security relative to what was anticipated at the time of purchase. The timely payment of principal and interest of certain mortgage-related securities is guaranteed with the full faith and credit of the U.S. Government. Pools created and guaranteed by non-governmental issuers, including government-sponsored corporations, may be supported by various forms of insurance or guarantees, but there can be no assurance that private insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Many of the risks of investing in mortgage-related securities secured by commercial mortgage loans reflect the effects of local and other economic conditions on real estate markets, the ability of tenants to make lease payments, and the ability of a property to attract and retain tenants. These securities may be less liquid and may exhibit greater price volatility than other types of mortgage-related or other asset-backed securities. Other asset-backed securities are created from many types of assets, including, but not limited to, auto loans, accounts receivable, such as credit card receivables and hospital account receivables, home equity loans, student loans, boat loans, mobile home loans, recreational vehicle loans, manufactured housing loans, aircraft leases, computer leases and syndicated bank loans.

Collateralized Mortgage Obligations  (“CMOs”) are debt obligations of a legal entity that are collateralized by whole mortgage loans or private mortgage bonds and divided into classes. CMOs are structured into multiple classes, often referred to as “tranches”, with each class bearing a different stated maturity and entitled to a different schedule for payments of principal and interest, including prepayments. CMOs may be less liquid and may exhibit greater price volatility than other types of mortgage-related or asset-backed securities.

Payment In-Kind Securities  (“PIKs”) may give the issuer the option at each interest payment date of making interest payments in either cash and/or additional debt securities. Those additional debt securities usually have the same terms, including maturity dates and interest rates, and associated risks as the original bonds. The daily market quotations of the original bonds may include the accrued interest (referred to as a dirty price) and require a pro rata adjustment from the unrealized appreciation (depreciation) on investments to interest receivable on the Statement of Assets and Liabilities.

Perpetual Bonds  are fixed income securities with no maturity date but pay a coupon in perpetuity (with no specified ending or maturity date). Unlike typical fixed income securities, there is no obligation for perpetual bonds to repay principal. The coupon payments, however,

are mandatory. While perpetual bonds have no maturity date, they may have a callable date in which the perpetuity is eliminated and the issuer may return the principal received on the specified call date. Additionally, a perpetual bond may have additional features, such as interest rate increases at periodic dates or an increase as of a predetermined point in the future.

Securities Issued by U.S. Government Agencies or Government-Sponsored Enterprises  are obligations of and, in certain cases, guaranteed by, the U.S. Government, its agencies or instrumentalities. Some U.S. Government securities, such as Treasury bills, notes and bonds, and securities guaranteed by the Government National Mortgage Association (“GNMA” or “Ginnie Mae”), are supported by the full faith and credit of the U.S. Government; others, such as those of the Federal Home Loan Banks, are supported by the right of the issuer to borrow from the U.S. Department of the Treasury (the “U.S. Treasury”); and others, such as those of the Federal National Mortgage Association (“FNMA” or “Fannie Mae”), are supported by the discretionary authority of the U.S. Government to purchase the agency’s obligations. U.S. Government securities may include zero coupon securities. Zero coupon securities do not distribute interest on a current basis and tend to be subject to a greater risk than interest-paying securities.

Government-related guarantors (i.e., not backed by the full faith and credit of the U.S. Government) include FNMA and the Federal Home Loan Mortgage Corporation (“FHLMC” or “Freddie Mac”). FNMA is a government-sponsored corporation. FNMA purchases conventional (i.e., not insured or guaranteed by any government agency) residential mortgages from a list of approved seller/servicers which include state and federally chartered savings and loan associations, mutual savings banks, commercial banks and credit unions and mortgage bankers. Pass-through securities issued by FNMA are guaranteed as to timely payment of principal and interest by FNMA, but are not backed by the full faith and credit of the U.S. Government. FHLMC issues Participation Certificates (“PCs”), which are pass-through securities, each representing an undivided interest in a pool of residential mortgages. FHLMC guarantees the timely payment of interest and ultimate collection of principal, but PCs are not backed by the full faith and credit of the U.S. Government.

When-Issued Transactions  are purchases or sales made on a when-issued basis. These transactions are made conditionally because a security, although authorized, has not yet been issued in the market. Transactions to purchase or sell securities on a when-issued basis involve a commitment by the Portfolio to purchase or sell these securities for a predetermined price or yield, with payment and delivery taking place beyond the customary settlement period. The Portfolio may sell when-issued securities before they are delivered, which may result in a realized gain (loss).

28 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

5. BORROWINGS AND OTHER FINANCING TRANSACTIONS

The Portfolio may enter into the borrowings and other financing transactions described below to the extent permitted by the Portfolio’s investment policies.

The following disclosures contain information on the Portfolio’s ability to lend or borrow cash or securities to the extent permitted under the Act, which may be viewed as borrowing or financing transactions by the Portfolio. The location of these instruments in the Portfolio’s financial statements is described below.

(a) Line of Credit  The Portfolio entered into a 364-day senior unsecured revolving credit agreement with State Street Bank & Trust Company and other commercial banks to be utilized for temporary purposes to fund shareholder redemptions or for other short-term liquidity purposes. State Street Bank & Trust Company serves as both a bank and as an agent for the other banks that are parties to the agreement. The Portfolio pays financing charges based on a combination of LIBOR-based variable plus a credit spread. The Portfolio also pays a fee of 0.15% per annum on the unused commitment amounts. As of December 31, 2018, if applicable any outstanding borrowings would be disclosed as a payable for line of credit on the Statement of Assets and Liabilities. Commitment, upfront and interest fees, if any, paid by the Portfolio are disclosed as part of the interest expense on the Statement of Operations.

During the period, there were no borrowings on this line of credit. The maximum available commitment and related fees for the revolving credit agreement are:

Maximum Available Commitment*	Expiration Date	Commitment and Upfront Fees
$    50,000,000	09/03/2019	$    111,024

* Maximum available commitment prior to renewal on September 4, 2018, for the Portfolio was $57,000,000. The agreement expires on September 3, 2019 unless extended or renewed.

(b) Repurchase Agreements  Under the terms of a typical repurchase agreement, the Portfolio purchases an underlying debt obligation (collateral) subject to an obligation of the seller to repurchase, and the Portfolio to resell, the obligation at an agreed-upon price and time. In an open maturity repurchase agreement, there is no pre-determined repurchase date and the agreement can be terminated by the Portfolio or counterparty at any time. The underlying securities for all repurchase agreements are held by the Portfolio’s custodian or designated subcustodians under tri-party repurchase agreements and in certain instances will remain in custody with the counterparty. The market value of the collateral must be equal to or exceed the total amount of the repurchase obligations, including interest. Repurchase agreements,

if any, including accrued interest, are included on the Statement of

Assets and Liabilities. Interest earned is recorded as a component of interest income on the Statement of Operations. In periods of increased demand for collateral, the Portfolio may pay a fee for the receipt of collateral, which may result in interest expense to the Portfolio.

(c) Reverse Repurchase Agreements  In a reverse repurchase agreement, the Portfolio delivers a security in exchange for cash to a financial institution, the counterparty, with a simultaneous agreement to repurchase the same or substantially the same security at an agreed upon price and date. In an open maturity reverse repurchase agreement, there is no pre-determined repurchase date and the agreement can be terminated by the Portfolio or counterparty at any time. The Portfolio is entitled to receive principal and interest payments, if any, made on the security delivered to the counterparty during the term of the agreement. Cash received in exchange for securities delivered plus accrued interest payments to be made by the Portfolio to counterparties are reflected as a liability on the Statement of Assets and Liabilities. Interest payments made by the Portfolio to counterparties are recorded as a component of interest expense on the Statement of Operations. In periods of increased demand for the security, the Portfolio may receive a fee for use of the security by the counterparty, which may result in interest income to the Portfolio. The Portfolio will segregate assets determined to be liquid by the Adviser or will otherwise cover its obligations under reverse repurchase agreements.

6. FINANCIAL DERIVATIVE INSTRUMENTS

The Portfolio may enter into the financial derivative instruments described below to the extent permitted by the Portfolio’s investment policies.

The following disclosures contain information on how and why the Portfolio uses financial derivative instruments, and how financial derivative instruments affect the Portfolio’s financial position, results of operations and cash flows. The location and fair value amounts of these instruments on the Statement of Assets and Liabilities and the net realized gain (loss) and net change in unrealized appreciation (depreciation) on the Statement of Operations, each categorized by type of financial derivative contract and related risk exposure, are included in a table in the Notes to Schedule of Investments. The financial derivative instruments outstanding as of period end and the amounts of net realized gain (loss) and net change in unrealized appreciation (depreciation) on financial derivative instruments during the period, as disclosed in the Notes to Schedule of Investments, serve as indicators of the volume of financial derivative activity for the Portfolio.

(a) Forward Foreign Currency Contracts  may be engaged, in connection with settling planned purchases or sales of securities, to hedge the currency exposure associated with some or all of the

ANNUAL REPORT DECEMBER 31, 2018 29

Notes to Financial Statements (Cont.)

Portfolio’s securities or as part of an investment strategy. A forward foreign currency contract is an agreement between two parties to buy and sell a currency at a set price on a future date. The market value of a forward foreign currency contract fluctuates with changes in foreign currency exchange rates. Forward foreign currency contracts are marked to market daily, and the change in value is recorded by the Portfolio as an unrealized gain (loss). Realized gains (losses) are equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed and are recorded upon delivery or receipt of the currency. These contracts may involve market risk in excess of the unrealized gain (loss) reflected on the Statement of Assets and Liabilities. In addition, the Portfolio could be exposed to risk if the counterparties are unable to meet the terms of the contracts or if the value of the currency changes unfavorably to the U.S. dollar. To mitigate such risk, cash or securities may be exchanged as collateral pursuant to the terms of the underlying contracts.

(b) Options Contracts  may be written or purchased to enhance returns or to hedge an existing position or future investment. The Portfolio may write call and put options on securities and financial derivative instruments it owns or in which it may invest. Writing put options tends to increase the Portfolio’s exposure to the underlying instrument. Writing call options tends to decrease the Portfolio’s exposure to the underlying instrument. When the Portfolio writes a call or put, an amount equal to the premium received is recorded and subsequently marked to market to reflect the current value of the option written. These amounts are included on the Statement of Assets and Liabilities. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options which are exercised or closed are added to the proceeds or offset against amounts paid on the underlying futures, swap, security or currency transaction to determine the realized gain (loss). Certain options may be written with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. The Portfolio as a writer of an option has no control over whether the underlying instrument may be sold (“call”) or purchased (“put”) and as a result bears the market risk of an unfavorable change in the price of the instrument underlying the written option. There is the risk the Portfolio may not be able to enter into a closing transaction because of an illiquid market.

Purchasing call options tends to increase the Portfolio’s exposure to the underlying instrument. Purchasing put options tends to decrease the Portfolio’s exposure to the underlying instrument. The Portfolio pays a premium which is included as an asset on the Statement of Assets and Liabilities and subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options which expire are treated as realized losses. Certain options may be purchased with

premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. The risk associated with purchasing put and call options is limited to the premium paid. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the underlying investment transaction to determine the realized gain (loss) when the underlying transaction is executed.

Credit Default Swaptions  may be written or purchased to hedge exposure to the credit risk of an investment without making a commitment to the underlying instrument. A credit default swaption is an option to sell or buy credit protection on a specific reference by entering into a pre-defined swap agreement by some specified date in the future.

Options on Exchange-Traded Futures Contracts  (“Futures Option”) may be written or purchased to hedge an existing position or future investment, for speculative purposes or to manage exposure to market movements. A Futures Option is an option contract in which the underlying instrument is a single futures contract.

(c) Swap Agreements  are bilaterally negotiated agreements between the Portfolio and a counterparty to exchange or swap investment cash flows, assets, foreign currencies or market-linked returns at specified, future intervals. Swap agreements may be privately negotiated in the over the counter market (“OTC swaps”) or may be cleared through a third party, known as a central counterparty or derivatives clearing organization (“Centrally Cleared Swaps”). The Portfolio may enter into asset, credit default, cross-currency, interest rate, total return, variance and other forms of swap agreements to manage its exposure to credit, currency, interest rate, commodity, equity and inflation risk. In connection with these agreements, securities or cash may be identified as collateral or margin in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default or bankruptcy/insolvency.

Centrally Cleared Swaps are marked to market daily based upon valuations as determined from the underlying contract or in accordance with the requirements of the central counterparty or derivatives clearing organization. Changes in market value, if any, are reflected as a component of net change in unrealized appreciation (depreciation) on the Statement of Operations. Daily changes in valuation of centrally cleared swaps (“Swap Variation Margin”), if any, are disclosed within centrally cleared financial derivative instruments on the Statement of Assets and Liabilities. Centrally Cleared and OTC swap payments received or paid at the beginning of the measurement period are included on the Statement of Assets and Liabilities and represent premiums paid or received upon entering into the swap agreement to compensate for differences between the stated terms of the swap

30 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

agreement and prevailing market conditions (credit spreads, currency exchange rates, interest rates, and other relevant factors). Upfront premiums received (paid) are initially recorded as liabilities (assets) and subsequently marked to market to reflect the current value of the swap. These upfront premiums are recorded as realized gain (loss) on the Statement of Operations upon termination or maturity of the swap. A liquidation payment received or made at the termination of the swap is recorded as realized gain (loss) on the Statement of Operations. Net periodic payments received or paid by the Portfolio are included as part of realized gain (loss) on the Statement of Operations.

For purposes of applying certain of the Portfolio’s investment policies and restrictions, swap agreements, like other derivative instruments, may be valued by the Portfolio at market value, notional value or full exposure value. In the case of a credit default swap, in applying certain of the Portfolio’s investment policies and restrictions, the Portfolio will value the credit default swap at its notional value or its full exposure value (i.e., the sum of the notional amount for the contract plus the market value), but may value the credit default swap at market value for purposes of applying certain of the Portfolio’s other investment policies and restrictions. For example, the Portfolio may value credit default swaps at full exposure value for purposes of the Portfolio’s credit quality guidelines (if any) because such value in general better reflects the Portfolio’s actual economic exposure during the term of the credit default swap agreement. As a result, the Portfolio may, at times, have notional exposure to an asset class (before netting) that is greater or lesser than the stated limit or restriction noted in the Portfolio’s prospectus. In this context, both the notional amount and the market value may be positive or negative depending on whether the Portfolio is selling or buying protection through the credit default swap. The manner in which certain securities or other instruments are valued by the Portfolio for purposes of applying investment policies and restrictions may differ from the manner in which those investments are valued by other types of investors.

Entering into swap agreements involves, to varying degrees, elements of interest, credit, market and documentation risk in excess of the amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of contractual terms in the agreements and that there may be unfavorable changes in interest rates or the values of the asset upon which the swap is based.

The Portfolio’s maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from the counterparty over the contract’s remaining life, to the extent that amount is positive. The risk may be mitigated by having a master netting arrangement between the Portfolio and the counterparty and

by the posting of collateral to the Portfolio to cover the Portfolio’s exposure to the counterparty.

To the extent the Portfolio has a policy to limit the net amount owed to or to be received from a single counterparty under existing swap agreements, such limitation only applies to counterparties to OTC swaps and does not apply to centrally cleared swaps where the counterparty is a central counterparty or derivatives clearing organization.

Credit Default Swap Agreements  on corporate, loan, sovereign, U.S. municipal or U.S. Treasury issues are entered into to provide a measure of protection against defaults of the issuers (i.e., to reduce risk where the Portfolio owns or has exposure to the referenced obligation) or to take an active long or short position with respect to the likelihood of a particular issuer’s default. Credit default swap agreements involve one party making a stream of payments (referred to as the buyer of protection) to another party (the seller of protection) in exchange for the right to receive a specified return in the event that the referenced entity, obligation or index, as specified in the swap agreement, undergoes a certain credit event. As a seller of protection on credit default swap agreements, the Portfolio will generally receive from the buyer of protection a fixed rate of income throughout the term of the swap provided that there is no credit event. As the seller, the Portfolio would effectively add leverage to its portfolio because, in addition to its total net assets, the Portfolio would be subject to investment exposure on the notional amount of the swap.

If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. If the Portfolio is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. Recovery values are estimated by market makers considering either industry standard recovery rates or entity specific factors and considerations until a credit event occurs. If a credit event has occurred, the recovery value is determined by a facilitated auction whereby a

ANNUAL REPORT DECEMBER 31, 2018 31

Notes to Financial Statements (Cont.)

minimum number of allowable broker bids, together with a specified valuation method, are used to calculate the settlement value. The ability to deliver other obligations may result in a cheapest-to-deliver option (the buyer of protection’s right to choose the deliverable obligation with the lowest value following a credit event).

Credit default swap agreements on credit indices involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising the credit index. A credit index is a basket of credit instruments or exposures designed to be representative of some part of the credit market as a whole. These indices are made up of reference credits that are judged by a poll of dealers to be the most liquid entities in the credit default swap market based on the sector of the index. Components of the indices may include, but are not limited to, investment grade securities, high yield securities, asset-backed securities, emerging markets, and/or various credit ratings within each sector. Credit indices are traded using credit default swaps with standardized terms including a fixed spread and standard maturity dates. An index credit default swap references all the names in the index, and if there is a default, the credit event is settled based on that name’s weight in the index. The composition of the indices changes periodically, usually every six months, and for most indices, each name has an equal weight in the index. The Portfolio may use credit default swaps on credit indices to hedge a portfolio of credit default swaps or bonds, which is less expensive than it would be to buy many credit default swaps to achieve a similar effect. Credit default swaps on indices are instruments for protecting investors owning bonds against default, and traders use them to speculate on changes in credit quality.

Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate, loan, sovereign, U.S. municipal or U.S. Treasury issues as of period end, if any, are disclosed in the Notes to Schedule of Investments. They serve as an indicator of the current status of payment/performance risk and represent the likelihood or risk of default for the reference entity. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. For credit default swap agreements on asset-backed securities and credit indices, the quoted market prices and resulting values serve as the indicator of the current status of the payment/performance risk. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a

deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

The maximum potential amount of future payments (undiscounted) that the Portfolio as a seller of protection could be required to make under a credit default swap agreement equals the notional amount of the agreement. Notional amounts of each individual credit default swap agreement outstanding as of period end for which the Portfolio is the seller of protection are disclosed in the Notes to Schedule of Investments. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Portfolio for the same referenced entity or entities.

Interest Rate Swap Agreements  may be entered into to help hedge against interest rate risk exposure and to maintain the Portfolio’s ability to generate income at prevailing market rates. The value of the fixed rate bonds that the Portfolio holds may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, the Portfolio may enter into interest rate swap agreements. Interest rate swap agreements involve the exchange by the Portfolio with another party for their respective commitment to pay or receive interest on the notional amount of principal. Certain forms of interest rate swap agreements may include: (i) interest rate caps, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates exceed a specified rate, or “cap”, (ii) interest rate floors, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates fall below a specified rate, or “floor”, (iii) interest rate collars, under which a party sells a cap and purchases a floor or vice versa in an attempt to protect itself against interest rate movements exceeding given minimum or maximum levels, (iv) callable interest rate swaps, under which the buyer pays an upfront fee in consideration for the right to early terminate the swap transaction in whole, at zero cost and at a predetermined date and time prior to the maturity date, (v) spreadlocks, which allow the interest rate swap users to lock in the forward differential (or spread) between the interest rate swap rate and a specified benchmark, or (vi) basis swaps, under which two parties can exchange variable interest rates based on different segments of money markets.

Total Return Swap Agreements  are entered into to gain or mitigate exposure to the underlying reference asset. Total return swap agreements involve commitments where single or multiple cash flows are exchanged based on the price of an underlying reference asset and on a fixed or variable interest rate. Total return swap agreements may

32 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

involve commitments to pay interest in exchange for a market-linked return. One counterparty pays out the total return of a specific underlying reference asset, which may include a single security, a basket of securities, or an index, and in return receives a fixed or variable rate. At the maturity date, a net cash flow is exchanged where the total return is equivalent to the return of the underlying reference asset less a financing rate, if any. As a receiver, the Portfolio would receive payments based on any net positive total return and would owe payments in the event of a net negative total return. As the payer, the Portfolio would owe payments on any net positive total return, and would receive payments in the event of a net negative total return.

7. PRINCIPAL RISKS

The principal risks of investing in the Portfolio, which could adversely affect its net asset value, yield and total return, are listed below. Please see “Description of Principal Risks” in the Portfolio’s prospectus for a more detailed description of the risks of investing in the Portfolio.

Interest Rate Risk  is the risk that fixed income securities will decline in value because of an increase in interest rates; a portfolio with a longer average portfolio duration will be more sensitive to changes in interest rates than a portfolio with a shorter average portfolio duration.

Call Risk  is the risk that an issuer may exercise its right to redeem a fixed income security earlier than expected (a call). Issuers may call outstanding securities prior to their maturity for a number of reasons (e.g., declining interest rates, changes in credit spreads and improvements in the issuer’s credit quality). If an issuer calls a security that the Portfolio has invested in, the Portfolio may not recoup the full amount of its initial investment and may be forced to reinvest in lower-yielding securities, securities with greater credit risks or securities with other, less favorable features.

Credit Risk  is the risk that the Portfolio could lose money if the issuer or guarantor of a fixed income security, or the counterparty to a derivative contract, is unable or unwilling to meet its financial obligations.

High Yield Risk  is the risk that high yield securities and unrated securities of similar credit quality (commonly known as “junk bonds”) are subject to greater levels of credit, call and liquidity risks. High yield securities are considered primarily speculative with respect to the issuer’s continuing ability to make principal and interest payments, and may be more volatile than higher-rated securities of similar maturity.

Market Risk  is the risk that the value of securities owned by the Portfolio may go up or down, sometimes rapidly or unpredictably, due to factors affecting securities markets generally or particular industries.

Issuer Risk  is the risk that the value of a security may decline for a reason directly related to the issuer, such as management performance, financial leverage and reduced demand for the issuer’s goods or services.

Liquidity Risk  is the risk that a particular investment may be difficult to purchase or sell and that the Portfolio may be unable to sell illiquid securities at an advantageous time or price or achieve its desired level of exposure to a certain sector. Liquidity risk may result from the lack of an active market, reduced number and capacity of traditional market participants to make a market in fixed income securities, and may be magnified in a rising interest rate environment or other circumstances where investor redemptions from fixed income mutual funds may be higher than normal, causing increased supply in the market due to selling activity.

Derivatives Risk  is the risk of investing in derivative instruments (such as futures, swaps and structured securities), including leverage, liquidity, interest rate, market, credit and management risks, mispricing or valuation complexity. Changes in the value of the derivative may not correlate perfectly with, and may be more sensitive to market events than, the underlying asset, rate or index, and the Portfolio could lose more than the initial amount invested. The Portfolio’s use of derivatives may result in losses to the Portfolio, a reduction in the Portfolio’s returns and/or increased volatility. Over-the-counter (“OTC”) derivatives are also subject to the risk that a counterparty to the transaction will not fulfill its contractual obligations to the other party, as many of the protections afforded to centrally-cleared derivative transactions might not be available for OTC derivatives. For derivatives traded on an exchange or through a central counterparty, credit risk resides with the Portfolio’s clearing broker, or the clearinghouse itself, rather than with a counterparty in an OTC derivative transaction. Changes in regulation relating to a mutual fund’s use of derivatives and related instruments could potentially limit or impact the Portfolio’s ability to invest in derivatives, limit the Portfolio’s ability to employ certain strategies that use derivatives and/or adversely affect the value of derivatives and the Portfolio’s performance.

Equity Risk  is the risk that the value of equity securities, such as common stocks and preferred securities, may decline due to general market conditions which are not specifically related to a particular company or to factors affecting a particular industry or industries. Equity securities generally have greater price volatility than fixed income securities.

Mortgage-Related and Other Asset-Backed Securities Risk  is the risk of investing in mortgage-related and other asset-backed securities, including interest rate risk, extension risk, prepayment risk, and credit risk.

ANNUAL REPORT DECEMBER 31, 2018 33

Notes to Financial Statements (Cont.)

Foreign (Non-U.S.) Investment Risk  is the risk that investing in foreign (non-U.S.) securities may result in the Portfolio experiencing more rapid and extreme changes in value than a portfolio that invests exclusively in securities of U.S. companies, due to smaller markets, differing reporting, accounting and auditing standards, increased risk of delayed settlement of portfolio transactions or loss of certificates of portfolio securities, and the risk of unfavorable foreign government actions, including nationalization, expropriation or confiscatory taxation, currency blockage, or political changes or diplomatic developments. Foreign securities may also be less liquid and more difficult to value than securities of U.S. issuers.

Emerging Markets Risk  is the risk of investing in emerging market securities, primarily increased foreign (non-U.S.) investment risk.

Sovereign Debt Risk  is the risk that investments in fixed income instruments issued by sovereign entities may decline in value as a result of default or other adverse credit event resulting from an issuer’s inability or unwillingness to make principal or interest payments in a timely fashion.

Currency Risk  is the risk that foreign (non-U.S.) currencies will change in value relative to the U.S. dollar and affect the Portfolio’s investments in foreign (non-U.S.) currencies or in securities that trade in, and receive revenues in, or in derivatives that provide exposure to, foreign (non-U.S.) currencies.

Leveraging Risk  is the risk that certain transactions of the Portfolio, such as reverse repurchase agreements, loans of portfolio securities, and the use of when-issued, delayed delivery or forward commitment transactions, or derivative instruments, may give rise to leverage, magnifying gains and losses and causing the Portfolio to be more volatile than if it had not been leveraged. This means that leverage entails a heightened risk of loss.

Management Risk  is the risk that the investment techniques and risk analyses applied by PIMCO will not produce the desired results and that legislative, regulatory, or tax restrictions, policies or developments may affect the investment techniques available to PIMCO and the individual portfolio manager in connection with managing the Portfolio. There is no guarantee that the investment objective of the Portfolio will be achieved.

Short Exposure Risk  is the risk of entering into short sales, including the potential loss of more money than the actual cost of the investment, and the risk that the third party to the short sale will not fulfill its contractual obligations, causing a loss to the Portfolio.

8. MASTER NETTING ARRANGEMENTS

The Portfolio may be subject to various netting arrangements (“Master Agreements”) with select counterparties. Master Agreements govern the terms of certain transactions, and are intended to reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that is intended to improve legal certainty. Each type of Master Agreement governs certain types of transactions. Different types of transactions may be traded out of different legal entities or affiliates of a particular organization, resulting in the need for multiple agreements with a single counterparty. As the Master Agreements are specific to unique operations of different asset types, they allow the Portfolio to close out and net its total exposure to a counterparty in the event of a default with respect to all the transactions governed under a single Master Agreement with a counterparty. For financial reporting purposes the Statement of Assets and Liabilities generally presents derivative assets and liabilities on a gross basis, which reflects the full risks and exposures prior to netting.

Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. Under most Master Agreements, collateral is routinely transferred if the total net exposure to certain transactions (net of existing collateral already in place) governed under the relevant Master Agreement with a counterparty in a given account exceeds a specified threshold, which typically ranges from zero to $250,000 depending on the counterparty and the type of Master Agreement. United States Treasury Bills and U.S. dollar cash are generally the preferred forms of collateral, although other securities may be used depending on the terms outlined in the applicable Master Agreement. Securities and cash pledged as collateral are reflected as assets on the Statement of Assets and Liabilities as either a component of Investments at value (securities) or Deposits with counterparty. Cash collateral received is not typically held in a segregated account and as such is reflected as a liability on the Statement of Assets and Liabilities as Deposits from counterparty. The market value of any securities received as collateral is not reflected as a component of NAV. The Portfolio’s overall exposure to counterparty risk can change substantially within a short period, as it is affected by each transaction subject to the relevant Master Agreement.

Master Repurchase Agreements and Global Master Repurchase Agreements (individually and collectively “Master Repo Agreements”) govern repurchase, reverse repurchase, and certain sale-buyback transactions between the Portfolio and select counterparties. Master Repo Agreements maintain provisions for, among other things, initiation, income payments, events of default, and maintenance of collateral. The market value of transactions under the Master Repo Agreement,

34 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

collateral pledged or received, and the net exposure by counterparty as of period end are disclosed in the Notes to Schedule of Investments.

Master Securities Forward Transaction Agreements (“Master Forward Agreements”) govern certain forward settling transactions, such as TBA securities, delayed-delivery or certain sale-buyback transactions by and between the Portfolio and select counterparties. The Master Forward Agreements maintain provisions for, among other things, transaction initiation and confirmation, payment and transfer, events of default, termination, and maintenance of collateral. The market value of forward settling transactions, collateral pledged or received, and the net exposure by counterparty as of period end is disclosed in the Notes to Schedule of Investments.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Such transactions require posting of initial margin as determined by each relevant clearing agency which is segregated in an account at a futures commission merchant (“FCM”) registered with the Commodity Futures Trading Commission (“CFTC”). In the United States, counterparty risk may be reduced as creditors of an FCM cannot have a claim to Portfolio assets in the segregated account. Portability of exposure reduces risk to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives unless the parties have agreed to a separate arrangement in respect of portfolio margining. The market value or accumulated unrealized appreciation (depreciation), initial margin posted, and any unsettled variation margin as of period end are disclosed in the Notes to Schedule of Investments.

International Swaps and Derivatives Association, Inc. Master Agreements and Credit Support Annexes (“ISDA Master Agreements”) govern bilateral OTC derivative transactions entered into by the Portfolio with select counterparties. ISDA Master Agreements maintain provisions for general obligations, representations, agreements, collateral posting and events of default or termination. Events of termination include conditions that may entitle counterparties to elect to terminate early and cause settlement of all outstanding transactions under the applicable ISDA Master Agreement. Any election to terminate early could be material to the financial statements. In limited circumstances, the ISDA Master Agreement may contain additional provisions that add counterparty protection beyond coverage of existing daily exposure if the counterparty has a decline in credit quality below a predefined level. These amounts, if any, may be segregated with a third-party custodian. The market value of OTC financial derivative instruments, collateral received or pledged, and net exposure by counterparty as of period end are disclosed in the Notes to Schedule of Investments.

9. FEES AND EXPENSES

(a) Investment Advisory Fee  PIMCO is a majority-owned subsidiary of Allianz Asset Management of America L.P. (“Allianz Asset Management”) and serves as the Adviser to the Trust, pursuant to an investment advisory contract. The Adviser receives a monthly fee from the Portfolio at an annual rate based on average daily net assets (the “Investment Advisory Fee”). The Investment Advisory Fee for all classes is charged at an annual rate as noted in the table in note (b) below.

(b) Supervisory and Administrative Fee  PIMCO serves as administrator (the “Administrator”) and provides supervisory and administrative services to the Trust for which it receives a monthly supervisory and administrative fee based on each share class’s average daily net assets (the “Supervisory and Administrative Fee”). As the Administrator, PIMCO bears the costs of various third-party services, including audit, custodial, portfolio accounting, legal, transfer agency and printing costs.

The Investment Advisory Fee and Supervisory and Administrative Fees for all classes, as applicable, are charged at the annual rate as noted in the following table (calculated as a percentage of the Portfolio’s average daily net assets attributable to each class):

Investment Advisory Fee		Supervisory and Administrative Fee
All Classes		Institutional Class		Administrative Class		Advisor Class
	0.25%		0.35%		0.35%		0.35%

(c) Distribution and Servicing Fees  PIMCO Investments LLC, a wholly-owned subsidiary of PIMCO, serves as the distributor (“Distributor”) of the Trust’s shares.

The Trust has adopted an Administrative Services Plan with respect to the Administrative Class shares of the Portfolio pursuant to Rule 12b-1 under the Act (the “Administrative Plan”). Under the terms of the Administrative Plan, the Trust is permitted to compensate the Distributor, out of the Administrative Class assets of the Portfolio, in an amount up to 0.15% on an annual basis of the average daily net assets of that class, for providing or procuring through financial intermediaries administrative, recordkeeping and investor services for Administrative Class shareholders of the Portfolio.

The Trust has adopted a separate Distribution and Servicing Plan for the Advisor Class shares of the Portfolio (the “Distribution and Servicing Plan”). The Distribution and Servicing Plan has been adopted pursuant to Rule 12b-1 under the Act. The Distribution and Servicing Plan permits the Portfolio to compensate the Distributor for providing or procuring through financial intermediaries, distribution, administrative, recordkeeping, shareholder and/or related services with respect to Advisor Class shares. The Distribution and Servicing Plan

ANNUAL REPORT DECEMBER 31, 2018 35

Notes to Financial Statements (Cont.)

permits the Portfolio to make total payments at an annual rate of up to 0.25% of its average daily net assets attributable to its Advisor Class shares.

	Distribution Fee		Servicing Fee
Administrative Class		—		0.15%
Advisor Class		0.25%		—

(d) Portfolio Expenses  PIMCO provides or procures supervisory and administrative services for shareholders and also bears the costs of various third-party services required by the Portfolio, including audit, custodial, portfolio accounting, legal, transfer agency and printing costs. The Trust is responsible for the following expenses: (i) taxes and governmental fees; (ii) brokerage fees and commissions and other portfolio transaction expenses; (iii) the costs of borrowing money, including interest expense; (iv) fees and expenses of the Trustees who are not “interested persons” of PIMCO or the Trust, and any counsel retained exclusively for their benefit; (v) extraordinary expense, including costs of litigation and indemnification expenses; (vi) organizational expenses; and (vii) any expenses allocated or allocable to a specific class of shares, which include service fees payable with respect to the Administrative Class Shares, and may include certain other expenses as permitted by the Trust’s Multi-Class Plan adopted pursuant to Rule 18f-3 under the Act and subject to review and approval by the Trustees. The ratio of expenses to average net assets per share class, as disclosed on the Financial Highlights, may differ from the annual portfolio operating expenses per share class.

Each Trustee, other than those affiliated with PIMCO or its affiliates, receives an annual retainer of $41,200, plus $4,250 for each Board meeting attended in person, $850 for each committee meeting attended and $750 for each Board meeting attended telephonically, plus reimbursement of related expenses. In addition, the audit committee chair receives an additional annual retainer of $8,000, the valuation oversight committee lead receives an additional annual retainer of $8,500 (to the extent there are co-leads of the valuation oversight committee, the annual retainer will be split evenly between the co-leads, so that each co-lead individually receives an additional annual retainer of $4,250) and each other committee chair receives an additional annual retainer of $5,500. The Lead Independent Trustee receives an annual retainer of $7,000.

These expenses are allocated on a pro rata basis to each Portfolio of the Trust according to its respective net assets. The Trust pays no compensation directly to any Trustee or any other officer who is affiliated with the Administrator, all of whom receive remuneration for their services to the Trust from the Administrator or its affiliates.

(e) Expense Limitation  Pursuant to the Expense Limitation Agreement, PIMCO has agreed to waive a portion of the Portfolio’s Supervisory and

Administrative Fee, or reimburse the Portfolio, to the extent that the Portfolio’s organizational expenses, pro rata share of expenses related to obtaining or maintaining a Legal Entity Identifier and pro rata share of Trustee Fees exceed 0.0049%, the “Expense Limit” (calculated as a percentage of the Portfolio’s average daily net assets attributable to each class). The Expense Limitation Agreement will automatically renew for one-year terms unless PIMCO provides written notice to the Trust at least 30 days prior to the end of the then current term.

Under certain conditions,PIMCO may be reimbursed for these waived amounts in future periods, not to exceed thirty-six months after the waiver. At December 31, 2018, there were no recoverable amounts.

10. RELATED PARTY TRANSACTIONS

The Adviser, Administrator, and Distributor are related parties. Fees paid to these parties are disclosed in Note 9, Fees and Expenses, and the accrued related party fee amounts are disclosed on the Statement of Assets and Liabilities.

11. GUARANTEES AND INDEMNIFICATIONS

Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust (including the Trust’s investment manager) is indemnified, to the extent permitted by the Act, against certain liabilities that may arise out of performance of their duties to the Portfolio. Additionally, in the normal course of business, the Portfolio enters into contracts that contain a variety of indemnification clauses. The Portfolio’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Portfolio that have not yet occurred. However, the Portfolio has not had prior claims or losses pursuant to these contracts.

12. PURCHASES AND SALES OF SECURITIES

The length of time the Portfolio has held a particular security is not generally a consideration in investment decisions. A change in the securities held by the Portfolio is known as “portfolio turnover.” The Portfolio may engage in frequent and active trading of portfolio securities to achieve its investment objective, particularly during periods of volatile market movements. High portfolio turnover may involve correspondingly greater transaction costs to the Portfolio, including brokerage commissions or dealer mark-ups and other transaction costs on the sale of securities and reinvestments in other securities. Such sales may also result in realization of taxable capital gains, including short-term capital gains (which are generally taxed at ordinary income tax rates). The transaction costs and tax effects associated with portfolio turnover may adversely affect a shareholder’s performance. The portfolio turnover rates are reported in the Financial Highlights.

36 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

Purchases and sales of securities (excluding short-term investments) for the period ended December 31, 2018, were as follows (amounts in thousands^†):

U.S. Government/Agency				All Other
Purchases		Sales		Purchases		Sales
$	5,815	$	5,806	$	147,400	$	221,457

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

13. SHARES OF BENEFICIAL INTEREST

The Trust may issue an unlimited number of shares of beneficial interest with a $0.001 par value. Changes in shares of beneficial interest were as follows (shares and amounts in thousands^†):

	Year Ended 12/31/2018						Year Ended 12/31/2017
	Shares			Amount			Shares			Amount
Receipts for shares sold
Institutional Class		81		$	627			101		$	794
Administrative Class		16,429			126,024			37,857			297,942
Advisor Class		5,954			46,010			4,908			38,747
Issued as reinvestment of distributions
Institutional Class		69			525			66			525
Administrative Class		6,377			48,606			6,559			51,769
Advisor Class		193			1,472			245			1,937
Cost of shares redeemed
Institutional Class		(264	)		(2,020	)		(70	)		(549	)
Administrative Class		(35,438	)		(269,894	)		(50,789	)		(399,872	)
Advisor Class		(7,698	)		(58,544	)		(6,690	)		(52,436	)
Net increase (decrease) resulting from Portfolio share transactions		(14,297	)	$	(107,194	)		(7,813	)	$	(61,143	)

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

As of December 31, 2018, one shareholder owned 10% or more of the Portfolio’s total outstanding shares comprising 67% of the Portfolio, and the shareholder is a related party of the Portfolio. Related parties may include, but are not limited to, the investment adviser and its affiliates, affiliated broker dealers, fund of funds and directors or employees of the Trust or Adviser.

14. REGULATORY AND LITIGATION MATTERS

The Portfolio is not named as a defendant in any material litigation or arbitration proceedings and is not aware of any material litigation or claim pending or threatened against it. The foregoing speaks only as of the date of this report.

15. FEDERAL INCOME TAX MATTERS

The Portfolio intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code (the “Code”) and distribute all of its taxable income and net realized gains, if applicable, to shareholders. Accordingly, no provision for Federal income taxes has been made.

The Portfolio may be subject to local withholding taxes, including those imposed on realized capital gains. Any applicable foreign capital gains tax is accrued daily based upon net unrealized gains, and may be payable following the sale of any applicable investments.

In accordance with U.S. GAAP, the Adviser has reviewed the Portfolio’s tax positions for all open tax years. As of December 31, 2018, the Portfolio has recorded no liability for net unrecognized tax benefits relating to uncertain income tax positions it has taken or expects to take in future tax returns.

The Portfolio files U.S. federal, state, and local tax returns as required. The Portfolio’s tax returns are subject to examination by relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return but which can be extended to six years in certain circumstances. Tax returns for open years have incorporated no uncertain tax positions that require a provision for income taxes.

Shares of the Portfolio currently are sold to segregated asset accounts (“Separate Accounts”) of insurance companies that fund variable annuity contracts and variable life insurance policies (“Variable Contracts”). Please refer to the prospectus for the Separate Account and Variable Contract for information regarding Federal income tax treatment of distributions to the Separate Account.

ANNUAL REPORT DECEMBER 31, 2018 37

Notes to Financial Statements (Cont.)

December 31, 2018

As of December 31, 2018, the components of distributable taxable earnings are as follows (amounts in thousands^†):

	Undistributed Ordinary Income(1)		Undistributed Long-Term Capital Gains		Net Tax Basis Unrealized Appreciation/ (Depreciation)(2)			Other Book-to-Tax Accounting Differences(3)		Accumulated Capital Losses(4)			Qualified Late-Year Loss Deferral - Capital(5)		Qualified Late-Year Loss Deferral - Ordinary(6)
PIMCO High Yield Portfolio	$	5,458	$	0	($	49,708	)	$	0	($	17,496	)	$	0	$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽¹⁾  Includes undistributed short-term capital gains, if any.

⁽²⁾  Adjusted for open wash sale loss deferrals and the accelerated recognition of unrealized gain or loss on certain options and forward contracts for federal income tax, purposes. Also adjusted for differences between book and tax realized and unrealized gain (loss) on swap contracts, and Lehman securities.

⁽³⁾  Represents differences in income tax regulations and financial accounting principles generally accepted in the United States.

⁽⁴⁾  Capital losses available to offset future net capital gains expire in varying amounts as shown below.

⁽⁵⁾  Capital losses realized during the period November 1, 2018 through December 31, 2018 which the Portfolio elected to defer to the following taxable year pursuant to income tax regulations.

⁽⁶⁾  Specified losses realized during the period November 1, 2018 through December 31, 2018 which the Portfolio elected to defer to the following taxable year pursuant to income tax regulations.

Under the Regulated Investment Company Modernization Act of 2010, a fund is permitted to carry forward any new capital losses for an unlimited period. Additionally, such capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term under previous law.

As of December 31, 2018, the Portfolio had the following post-effective capital losses with no expiration (amounts in thousands^†):

	Short-Term		Long-Term
PIMCO High Yield Portfolio	$	0	$	17,496

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

As of December 31, 2018, the aggregate cost and the net unrealized appreciation/(depreciation) of investments for federal income tax purposes are as follows (amounts in thousands^†):

	Federal Tax Cost		Unrealized Appreciation		Unrealized (Depreciation)			Net Unrealized Appreciation/ (Depreciation)(7)
PIMCO High Yield Portfolio	$	937,289	$	5,304	($	55,010	)	($	49,706	)

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽⁷⁾  Primary differences, if any, between book and tax net unrealized appreciation/(depreciation) on investments are attributable to open wash sale loss deferrals, unrealized gain or loss on certain options and forward contracts, realized and unrealized gain (loss) swap contracts, and Lehman securities.

For the fiscal year ended December 31, 2018 and December 31, 2017, respectively, the Portfolio made the following tax basis distributions (amounts in thousands^†):

	December 31, 2018						December 31, 2017
	Ordinary Income Distributions(8)		Long-Term Capital Gain Distributions		Return of Capital(9)		Ordinary Income Distributions(8)		Long-Term Capital Gain Distributions		Return of Capital(9)
PIMCO High Yield Portfolio	$	50,603	$	0	$	0	$	54,231	$	0	$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽⁸⁾  Includes short-term capital gains distributed, if any.

⁽⁹⁾  A portion of the distributions made represents a tax return of capital. Return of capital distributions have been reclassified from undistributed net investment income to paid-in capital to more appropriately conform financial accounting to tax accounting.

38 PIMCO VARIABLE INSURANCE TRUST

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of PIMCO Variable Insurance Trust and Shareholders of PIMCO High Yield Portfolio

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of PIMCO High Yield Portfolio (one of the portfolios constituting PIMCO Variable Insurance Trust, referred to hereafter as the “Portfolio”) as of December 31, 2018, the related statement of operations for the year ended December 31, 2018, the statement of changes in net assets for each of the two years in the period ended December 31, 2018, including the related notes, and the financial highlights for each of the five years in the period ended December 31, 2018 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Portfolio as of December 31, 2018, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended December 31, 2018 and the financial highlights for each of the five years in the period ended December 31, 2018 in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Portfolio’s management. Our responsibility is to express an opinion on the Portfolio’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Portfolio in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2018 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

Kansas City, Missouri

February 20, 2019

We have served as the auditor of one or more investment companies in PIMCO Variable Insurance Trust since 1998.

ANNUAL REPORT DECEMBER 31, 2018 39

Glossary: (abbreviations that may be used in the preceding statements)

(Unaudited)

Counterparty Abbreviations:
BCY	Barclays Capital, Inc.	BRC	Barclays Bank PLC	GST	Goldman Sachs International
BOA	Bank of America N.A.	CBK	Citibank N.A.	JPM	JPMorgan Chase Bank N.A.
BPS	BNP Paribas S.A.	FICC	Fixed Income Clearing Corporation	MYC	Morgan Stanley Capital Services, Inc.
Currency Abbreviations:
EUR	Euro	USD (or $)	United States Dollar
Exchange Abbreviations:
CBOT	Chicago Board of Trade	OTC	Over the Counter
Index/Spread Abbreviations:
CDX.HY	Credit Derivatives Index - High Yield
Other Abbreviations:
ALT	Alternate Loan Trust	LIBOR	London Interbank Offered Rate	TBA	To-Be-Announced
DAC	Designated Activity Company	PIK	Payment-in-Kind	TBD	To-Be-Determined

40 PIMCO VARIABLE INSURANCE TRUST

Federal Income Tax Information

(Unaudited)

As required by the Internal Revenue Code (the “Code”) and Treasury Regulations, if applicable, shareholders must be notified regarding the status of qualified dividend income and the dividend received deduction.

Dividend Received Deduction.  Corporate shareholders are generally entitled to take the dividend received deduction on the portion of a Fund’s dividend distribution that qualifies under tax law. The percentage of the following Portfolio’s fiscal 2018 ordinary income dividend that qualifies for the corporate dividend received deduction is set forth in the table below.

Qualified Dividend Income.  Under the Jobs and Growth Tax Relief Reconciliation Act of 2003 (the “Act”), the percentage of ordinary dividends paid during the calendar year designated as “qualified dividend income”, as defined in the Act, subject to reduced tax rates in 2018 is set forth for the Portfolio in the table below.

Qualified Interest Income and Qualified Short-Term Capital Gain (for non-U.S. resident shareholders only).  Under the American Jobs Creation Act of 2004, the amounts of ordinary dividends paid during the fiscal year ended December 31, 2018 considered to be derived from “qualified interest income,” as defined in Section 871(k)(1)(E) of the Code, and therefore designated as interest-related dividends, as defined in Section 871(k)(1)(C) of the Code are set forth in the table below. Further, the amounts of ordinary dividends paid during the fiscal year ended December 31, 2018 considered to be derived from “qualified short-term capital gain,” as defined in Section 871(k)(2)(D) of the Code, and therefore designated as qualified short-term gain dividends, as defined by Section 871(k)(2)(C) of the Code are also set forth in the table below.

	Dividend Received Deduction %		Qualified Dividend Income %		Qualified Interest Income (000s† )		Qualified Short-Term Capital Gain (000s†)
PIMCO High Yield Portfolio		0.00%		0.00%	$	50,431	$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

Shareholders are advised to consult their own tax advisor with respect to the tax consequences of their investment in the Trust. In January 2019, you will be advised on IRS Form 1099-DIV as to the federal tax status of the dividends and distributions received by you in calendar year 2018.

ANNUAL REPORT DECEMBER 31, 2018 41

Management of the Trust

The charts below identify the Trustees and executive officers of the Trust. Unless otherwise indicated, the address of all persons below is 650 Newport Center Drive, Newport Beach, CA 92660.

The Portfolio’s Statement of Additional Information includes more information about the Trustees and Officers. To request a free copy, call PIMCO at (888) 87-PIMCO or visit the Portfolio’s website at www.pimco.com/pvit.

Name, Year of Birth and Position Held with Trust*	Term of Office and Length of Time Served†	Principal Occupation(s) During Past 5 Years	Number of Funds in Fund Complex Overseen by Trustee	Other Public Company and Investment Company Directorships Held by Trustee During the Past 5 Years
Interested Trustees1
Peter G. Strelow** (1970) Chairman of the Board and Trustee	05/2017 to present Chairman of the Board - 02/2019 to present	Managing Director and Co-Chief Operating Officer, PIMCO. President of the Trust, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Chief Administrative Officer, PIMCO.	153	Chairman and Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT.
Brent R. Harris** (1959) Trustee	08/1997 to present	Managing Director, PIMCO. Senior Vice President of the Trust, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Formerly, member of Executive Committee, PIMCO.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT; Director, StocksPLUS® Management, Inc; and member of Board of Governors, Investment Company Institute. Formerly, Chairman, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT.
Independent Trustees
George E. Borst (1948) Trustee	04/2015 to present	Executive Advisor, McKinsey & Company (since 10/14); Formerly, Executive Advisor, Toyota Financial Services (10/13-12/14); and CEO, Toyota Financial Services (1/01-9/13).	132	Trustee, PIMCO Funds and PIMCO ETF Trust; Director, MarineMax Inc.
Jennifer Holden Dunbar (1963) Trustee	04/2015 to present	Managing Director, Dunbar Partners, LLC (business consulting and investments). Formerly, Partner, Leonard Green & Partners, L.P.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT; Director, PS Business Parks; Director, Big 5 Sporting Goods Corporation.
Kym M. Hubbard (1957) Trustee	02/2017 to present	Formerly, Global Head of Investments, Chief Investment Officer and Treasurer, Ernst & Young.	132	Trustee, PIMCO Funds and PIMCO ETF Trust; Director, State Auto Financial Corporation.
Gary F. Kennedy (1955) Trustee	04/2015 to present	Formerly, Senior Vice President, General Counsel and Chief Compliance Officer, American Airlines and AMR Corporation (now American Airlines Group) (1/03-1/14).	132	Trustee, PIMCO Funds and PIMCO ETF Trust.
Peter B. McCarthy (1950) Trustee	04/2015 to present	Formerly, Assistant Secretary and Chief Financial Officer, United States Department of Treasury; Deputy Managing Director, Institute of International Finance.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Ronald C. Parker (1951) Lead Independent Trustee	07/2009 to present Lead Independent Trustee - 02/2017 to present	Director of Roseburg Forest Products Company. Formerly, Chairman of the Board, The Ford Family Foundation; and President, Chief Executive Officer, Hampton Affiliates (forestry products).	153	Lead Independent Trustee, PIMCO Funds and PIMCO ETF Trust; Trustee, PIMCO Equity Series and PIMCO Equity Series VIT.

* Unless otherwise noted, the information for the individuals listed is as of December 31, 2018.

** Effective February 13, 2019, Mr. Strelow became the Chairman of the Trust.

¹  Mr. Harris and Mr. Strelow are “interested persons” of the Trust (as that term is defined in the 1940 Act) because of their affiliations with PIMCO.

^†  Trustees serve until their successors are duly elected and qualified.

42 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

Executive Officers

Name, Year of Birth and Position Held with Trust	Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years*
Peter G. Strelow (1970) President	01/2015 to present	Managing Director and Co-Chief Operating Officer, PIMCO. President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Chief Administrative Officer, PIMCO.
Joshua D. Ratner (1976)** Chief Legal Officer	11/2018 to present Vice President - Senior Counsel and Secretary 11/2013 to 11/2018 Assistant Secretary 10/2007 to 01/2011	Executive Vice President and Deputy General Counsel, PIMCO. Chief Legal Officer, PIMCO Investments LLC. Chief Legal Officer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Jennifer E. Durham (1970) Chief Compliance Officer	07/2004 to present	Managing Director and Chief Compliance Officer, PIMCO. Chief Compliance Officer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Brent R. Harris (1959) Senior Vice President	01/2015 to present President 03/2009 to 01/2015	Managing Director, PIMCO. Senior Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Formerly, member of Executive Committee, PIMCO.
Ryan G. Leshaw (1980) Vice President, Senior Counsel and Secretary	11/2018 to present Assistant Secretary 05/2012 to 11/2018	Senior Vice President and Senior Counsel, PIMCO. Vice President, Senior Counsel and Secretary, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Assistant Secretary, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Associate, Willkie Farr & Gallagher LLP.
Wu-Kwan Kit (1981) Assistant Secretary	08/2017 to present	Senior Vice President and Senior Counsel, PIMCO. Assistant Secretary, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Vice President, Senior Counsel and Secretary, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Assistant General Counsel, VanEck Associates Corp.
Stacie D. Anctil (1969) Vice President	05/2015 to present Assistant Treasurer 11/2003 to 05/2015	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
William G. Galipeau (1974) Vice President	11/2013 to present	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Eric D. Johnson (1970) Vice President	05/2011 to present	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Henrik P. Larsen (1970) Vice President	02/1999 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Bijal Y. Parikh (1978) Vice President	02/2017 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Greggory S. Wolf (1970) Vice President	05/2011 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Trent W. Walker (1974) Treasurer	11/2013 to present	Executive Vice President, PIMCO. Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Erik C. Brown (1967)** Assistant Treasurer	02/2001 to present	Executive Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Colleen D. Miller (1980)** Assistant Treasurer	02/2017 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Christopher M. Morin (1980) Assistant Treasurer	08/2016 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Jason J. Nagler (1982)** Assistant Treasurer	05/2015 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.

* The term “PIMCO-Sponsored Closed-End Funds” as used herein includes: PIMCO California Municipal Income Fund, PIMCO California Municipal Income Fund II, PIMCO California Municipal Income Fund III, PIMCO Municipal Income Fund, PIMCO Municipal Income Fund II, PIMCO Municipal Income Fund III, PIMCO New York Municipal Income Fund, PIMCO New York Municipal Income Fund II, PIMCO New York Municipal Income Fund III, PCM Fund Inc., PIMCO Corporate & Income Opportunity Fund, PIMCO Corporate & Income Strategy Fund, PIMCO Dynamic Credit and Mortgage Income Fund, PIMCO Dynamic Income Fund, PIMCO Global StocksPLUS^® & Income Fund, PIMCO High Income Fund, PIMCO Income Opportunity Fund, PIMCO Income Strategy Fund, PIMCO Income Strategy Fund II and PIMCO Strategic Income Fund, Inc.; the term “PIMCO-Sponsored Interval Funds” as used herein includes: PIMCO Flexible Credit Income Fund and PIMCO Flexible Municipal Income Fund.

** The address of these officers is Pacific Investment Management Company LLC, 1633 Broadway, New York, New York 10019.

ANNUAL REPORT DECEMBER 31, 2018 43

Privacy Policy¹

(Unaudited)

The Trust^2,3 considers customer privacy to be a fundamental aspect of its relationships with shareholders and is committed to maintaining the confidentiality, integrity and security of its current, prospective and former shareholders’ non-public personal information. The Trust has developed policies that are designed to protect this confidentiality, while allowing shareholder needs to be served.

OBTAINING PERSONAL INFORMATION

In the course of providing shareholders with products and services, the Trust and certain service providers to the Trust, such as the Trust’s investment advisers or sub-advisers (“Advisers”), may obtain non-public personal information about shareholders, which may come from sources such as account applications and other forms, from other written, electronic or verbal correspondence, from shareholder transactions, from a shareholder’s brokerage or financial advisory firm, financial advisor or consultant, and/or from information captured on applicable websites.

RESPECTING YOUR PRIVACY

As a matter of policy, the Trust does not disclose any non-public personal information provided by shareholders or gathered by the Trust to non-affiliated third parties, except as required or permitted by law or as necessary for such third parties to perform their agreements with respect to the Trust. As is common in the industry, non-affiliated companies may from time to time be used to provide certain services, such as preparing and mailing prospectuses, reports, account statements and other information, conducting research on shareholder satisfaction and gathering shareholder proxies. The Trust or its affiliates may also retain non-affiliated companies to market the Trust’s shares or products which use the Trust’s shares and enter into joint marketing arrangements with them and other companies. These companies may have access to a shareholder’s personal and account information, but are permitted to use this information solely to provide the specific service or as otherwise permitted by law. In most cases, the shareholders will be clients of a third party, but the Trust may also provide a shareholder’s personal and account information to the shareholder’s respective brokerage or financial advisory firm and/or financial advisor or consultant.

SHARING INFORMATION WITH THIRD PARTIES

The Trust reserves the right to disclose or report personal or account information to non-affiliated third parties in limited circumstances where the Trust believes in good faith that disclosure is required under law, to cooperate with regulators or law enforcement authorities, to protect its rights or property, or upon reasonable request by any fund advised by PIMCO in which a shareholder has invested. In addition, the Trust may disclose information about a shareholder or a shareholder’s accounts to a non-affiliated third party at the shareholder’s request or with the consent of the shareholder.

SHARING INFORMATION WITH AFFILIATES

The Trust may share shareholder information with its affiliates in connection with servicing shareholders’ accounts, and subject to applicable law may provide shareholders with information about products and services that the Trust or its Advisers, distributors or their affiliates (“Service Affiliates”) believe may be of interest to such shareholders. The information that the Trust may share may include, for

example, a shareholder’s participation in the Trust or in other investment programs sponsored by a Service Affiliate, a shareholder’s ownership of certain types of accounts (such as IRAs), information about the Trust’s experiences or transactions with a shareholder, information captured on applicable websites, or other data about a shareholder’s accounts, subject to applicable law. The Trust’s Service Affiliates, in turn, are not permitted to share shareholder information with non-affiliated entities, except as required or permitted by law.

PROCEDURES TO SAFEGUARD PRIVATE INFORMATION

The Trust takes seriously the obligation to safeguard shareholder non-public personal information. In addition to this policy, the Trust has implemented procedures that are designed to restrict access to a shareholder’s non-public personal information to internal personnel who need to know that information to perform their jobs, such as servicing shareholder accounts or notifying shareholders of new products or services. Physical, electronic and procedural safeguards are in place to guard a shareholder’s non-public personal information.

INFORMATION COLLECTED FROM WEBSITES

Websites maintained by the Trust or its service providers may use a variety of technologies to collect information that help the Trust and its service providers understand how the website is used. Information collected from your web browser (including small files stored on your device that are commonly referred to as “cookies”) allow the websites to recognize your web browser and help to personalize and improve your user experience and enhance navigation of the website. In addition, the Trust or its Service Affiliates may use third parties to place advertisements for the Trust on other websites, including banner advertisements. Such third parties may collect anonymous information through the use of cookies or action tags (such as web beacons). The information these third parties collect is generally limited to technical and web navigation information, such as your IP address, web pages visited and browser type, and does not include personally identifiable information such as name, address, phone number or email address. If you are a registered user of the Trust’s website, the Trust or their service providers or third party firms engaged by the Trust or their service providers may collect or share information submitted by you, which may include personally identifiable information. This information can be useful to the Trust when assessing and offering services and website features. You can change your cookie preferences by changing the setting on your web browser to delete or reject cookies. If you delete or reject cookies, some website pages may not function properly. The Trust does not look for web browser “do not track” requests.

CHANGES TO THE PRIVACY POLICY

From time to time, the Trust may update or revise this privacy policy. If there are changes to the terms of this privacy policy, documents containing the revised policy on the relevant website will be updated.

¹ Amended as of February 15, 2017.

² PIMCO Investments LLC (“PI”) serves as the Trust’s distributor. This Privacy Policy applies to the activities of PI to the extent that PI regularly effects or engages in transactions with or for a Trust shareholder who is the record owner of such shares. For purposes of this Privacy Policy, references to “the Trust” shall include PI when acting in this capacity.

³ When distributing this Policy, the Trust may combine the distribution with any similar distribution of its investment adviser’s privacy policy. The distributed, combined policy may be written in the first person (i.e., by using “we” instead of “the Trust”).

44 PIMCO VARIABLE INSURANCE TRUST

Approval of Investment Advisory Contract and Other Agreements

(Unaudited)

Approval of Renewal of the Amended and Restated Investment Advisory Contract, Supervision and Administration Agreement and Amended and Restated Asset Allocation Sub-Advisory Agreement

At a meeting held on August 20-21, 2018, the Board of Trustees (the “Board”) of PIMCO Variable Insurance Trust (the “Trust”), including the Trustees who are not “interested persons” of the Trust under the Investment Company Act of 1940, as amended (the “Independent Trustees”), considered and unanimously approved the renewal of the Amended and Restated Investment Advisory Contract (the “Investment Advisory Contract”) between the Trust, on behalf of each of the Trust’s series (the “Portfolios”), and Pacific Investment Management Company LLC (“PIMCO”) for an additional one-year term through August 31, 2019. The Board also considered and unanimously approved the renewal of the Supervision and Administration Agreement (together with the Investment Advisory Contract, the “Agreements”) between the Trust, on behalf of the Portfolios, and PIMCO for an additional one-year term through August 31, 2019. In addition, the Board considered and unanimously approved the renewal of the Amended and Restated Asset Allocation Sub-Advisory Agreement (the “Asset Allocation Agreement”) between PIMCO, on behalf of PIMCO All Asset Portfolio and PIMCO All Asset All Authority Portfolio, each a series of the Trust, and Research Affiliates, LLC (“Research Affiliates”) for an additional one-year term through August 31, 2019.

The information, material factors and conclusions that formed the basis for the Board’s approvals are summarized below.

1. INFORMATION RECEIVED

(a) Materials Reviewed:  During the course of the past year, the Trustees received a wide variety of materials relating to the services provided by PIMCO and Research Affiliates to the Trust. At each of its quarterly meetings, the Board reviewed the Portfolios’ investment performance and a significant amount of information relating to Portfolio operations, including shareholder services, valuation and custody, the Portfolios’ compliance program and other information relating to the nature, extent and quality of services provided by PIMCO and Research Affiliates to the Trust and each of the Portfolios, as applicable. In considering whether to approve the renewal of the Agreements and the Asset Allocation Agreement, the Board reviewed additional information, including, but not limited to, comparative industry data with regard to investment performance, advisory and supervisory and administrative fees and expenses, financial information for PIMCO and, where relevant, Research Affiliates, information regarding the profitability to PIMCO of its relationship with the Portfolios, information about the personnel providing investment management services, other advisory services and supervisory and administrative services to the Portfolios, and information about the fees

charged and services provided to other clients with similar investment mandates as the Portfolios, where applicable. In addition, the Board reviewed materials provided by counsel to the Trust and the Independent Trustees, which included, among other things, memoranda outlining legal duties of the Board in considering the renewal of the Agreements and the Asset Allocation Agreement.

(b) Review Process:  In connection with considering the renewal of the Agreements and the Asset Allocation Agreement, the Board reviewed written materials prepared by PIMCO and, where applicable, Research Affiliates in response to requests from counsel to the Trust and the Independent Trustees encompassing a wide variety of topics. The Board requested and received assistance and advice regarding, among other things, applicable legal standards from counsel to the Trust and the Independent Trustees, and reviewed comparative fee and performance data prepared at the Board’s request by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company performance information and fee and expense data. The Board received information on matters related to the Agreements and the Asset Allocation Agreement and met both as a full Board and in a separate session of the Independent Trustees, without management present, at the August 20-21, 2018 meeting. The Independent Trustees also conducted in-person meetings with counsel to the Trust and the Independent Trustees, including one on July 18, 2018, to discuss the Lipper Report, as defined below, and certain aspects of the 2018 15(c) materials presented and other matters deemed relevant to their consideration of the renewal of the Agreements and the Asset Allocation Agreement. In connection with its review of the Agreements, the Board received comparative information on the performance and the fees and expenses of other peer group funds and share classes. In addition, the Independent Trustees requested and received supplemental information.

The approval determinations were made on the basis of each Trustee’s business judgment after consideration and evaluation of all the information presented. Individual Trustees may have given different weights to certain factors and assigned various degrees of materiality to information received in connection with the approval process. In deciding to approve the renewal of the Agreements and the Asset Allocation Agreement, the Board did not identify any single factor or particular information that, in isolation, was controlling. The discussion below is intended to summarize the broad factors and information that figured prominently in the Board’s consideration of the renewal of the Agreements and the Asset Allocation Agreement, but is not intended to summarize all of the factors considered by the Board.

2. NATURE, EXTENT AND QUALITY OF SERVICES

(a) PIMCO, Research Affiliates, their Personnel, and Resources:  The Board considered the depth and quality of PIMCO’s investment management process, including: the experience, capability and integrity

ANNUAL REPORT DECEMBER 31, 2018 45

Approval of Investment Advisory Contract and Other Agreements (Cont.)

of its senior management and other personnel; the overall financial strength and stability of its organization; and the ability of its organizational structure to address changes in the Portfolios’ asset levels. The Board also considered the various services in addition to portfolio management that PIMCO provides under the Investment Advisory Contract. The Board noted that PIMCO makes available to its investment professionals a variety of resources and systems relating to investment management, compliance, trading, performance and portfolio accounting. The Board also noted PIMCO’s commitment to enhancing and investing in its global infrastructure, technology capabilities, risk management processes and the specialized talent needed to stay at the forefront of the competitive investment management industry and to strengthen its ability to deliver services under the Agreements. The Board considered PIMCO’s policies, procedures and systems reasonably designed to assure compliance with applicable laws and regulations and its commitment to further developing and strengthening these programs, its oversight of matters that may involve conflicts of interest between the Portfolios’ investments and those of other accounts managed by PIMCO, and its efforts to keep the Trustees informed about matters relevant to the Portfolios and their shareholders. The Board also considered PIMCO’s continuous investment in new disciplines and talented personnel, which has enhanced PIMCO’s services to the Portfolios and has allowed PIMCO to introduce innovative new portfolios over time. In addition, the Board considered the nature and quality of services provided by PIMCO to the wholly-owned subsidiaries of certain applicable Portfolios.

The Trustees considered that PIMCO has continued to strengthen the process it uses to actively manage counterparty risk and to assess the financial stability of counterparties with which the Portfolios do business, to manage collateral and to protect Portfolios from an unforeseen deterioration in the creditworthiness of trading counterparties. The Trustees noted that, consistent with its fiduciary duty, PIMCO executes transactions through a competitive best execution process and uses only those counterparties that meet its stringent and monitored criteria. The Trustees considered that PIMCO’s collateral management team utilizes a counterparty risk system to analyze portfolio level exposure and collateral being exchanged with counterparties.

In addition, the Trustees considered new services and service enhancements that PIMCO has implemented since the Board renewed the Agreements in 2017, including, but not limited to upgrading the global network and infrastructure to support trading and risk management systems; enhancing and continuing to expand capabilities within the pre-trade compliance platform; enhancing flexible client reporting capabilities to support increased differentiation within local markets; developing new application and database frameworks to support new trading strategies; expanding proprietary applications

suites to enrich capabilities across Compliance, Analytics, Risk Management, Client Reporting, Attribution and Customer Relationship management; continuing investment in its enterprise risk management function, including PIMCO’s cybersecurity program and global business continuity functions; oversight by the Americas Fund Oversight Committee, which provides senior-level oversight and supervision focused on new and ongoing fund-related business opportunities; engaging a third party service provider to implement the SEC reporting modernization regime; expanding the Fund Treasurer’s Office; enhancing a proprietary application to provide portfolio managers with more timely and high quality income reporting; developing a global tax management application that will enable investment professionals to access foreign market and security tax information on a real-time basis; enhancing reporting of tax reporting for portfolio managers for income products with improved transparency on tax factors impacting income generation and dividend yield; upgrading a proprietary application to allow shareholder subscription and redemption data to pass to portfolio managers more quickly and efficiently; and continuing to expand the pricing portal and the proprietary performance reconciliation tool.

Similarly, the Board considered the asset allocation services provided by Research Affiliates to the PIMCO All Asset Portfolio and PIMCO All Asset All Authority Portfolio. The Board further considered PIMCO’s oversight of Research Affiliates in connection with Research Affiliates providing asset allocation services to the Asset Portfolio and All Asset All Authority Portfolio. The Board also considered the depth and quality of Research Affiliates’ investment management and research capabilities, the experience and capabilities of its portfolio management personnel and the overall financial strength of the organization.

Ultimately, the Board concluded that the nature, extent and quality of services provided or procured by PIMCO under the Agreements and provided by Research Affiliates under the Asset Allocation Agreement are likely to continue to benefit the Portfolios and their respective shareholders, as applicable.

(b) Other Services:  The Board also considered the nature, extent and quality of supervisory and administrative services provided by PIMCO to the Portfolios under the Supervision and Administration Agreement.

The Board considered the terms of the Supervision and Administration Agreement, under which the Trust pays for the supervisory and administrative services provided pursuant to that agreement under what is essentially an all-in fee structure (the “unified fee”). In return, PIMCO provides or procures certain supervisory and administrative services and bears the costs of various third party services required by the Portfolios, including audit, custodial, portfolio accounting, legal, transfer agency, sub-accounting and printing costs. The Board noted that the scope and complexity, as well as the costs, of the supervisory

46 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

and administrative services provided by PIMCO under the Supervision and Administration Agreement continue to increase. The Board considered PIMCO’s provision of supervisory and administrative services and its supervision of the Trust’s third party service providers to assure that these service providers continue to provide a high level of service relative to alternatives available in the market.

Ultimately, the Board concluded that the nature, extent and quality of the services provided by PIMCO has benefited, and will likely continue to benefit, the Portfolios and their shareholders.

3. INVESTMENT PERFORMANCE

The Board reviewed information from PIMCO concerning the Portfolios’ performance, as available, over short- and long-term periods ended March 31, 2018 and other performance data, as available, over short- and long-term periods ended June 30, 2018 (the “PIMCO Report”) and from Broadridge concerning the Portfolios’ performance, as available, over short- and long-term periods ended March 31, 2018 (the “Lipper Report”).

The Board considered information regarding both the short- and long-term investment performance of each Portfolio relative to its peer group and relevant benchmark index as provided to the Board in advance of each of its quarterly meetings throughout the year, including the PIMCO Report and Lipper Report, which were provided in advance of the August 20-21, 2018 meeting. The Trustees noted that many of the Portfolios outperformed their respective Lipper medians on a net-of-fees basis over the three-, five- and ten-year periods ended March 31, 2018. The Board also noted that, as of March 31, 2018, the Administrative Class of 72%, 35% and 73% of the Portfolios outperformed their respective Lipper category median on a net-of-fees basis over the three-, five- and ten-year periods, respectively. The Trustees considered that other classes of each Portfolio would have substantially similar performance to that of the Administrative Class of the relevant Portfolio on a relative basis because all of the classes are invested in the same portfolio of investments and that differences in performance among classes could principally be attributed to differences in the supervisory and administrative fees and distribution and servicing expenses of each class. The Board also considered that the investment objectives of certain of the Portfolios may not always be identical to those of the other funds in their respective peer groups and that the Lipper categories do not: separate funds based upon maturity or duration; account for the applicable Portfolios’ hedging strategies; distinguish between enhanced index and actively managed equity strategies; include as many subsets as the Portfolios offer (i.e., Portfolios may be placed in a “catch-all” Lipper category to which they do not properly belong); or account for certain fee waivers. The Board noted that, due to these differences, performance comparisons between certain of the Portfolios and their so-called peers may not be

particularly relevant to the consideration of Portfolio performance but found the comparative information supported its overall evaluation.

The Board noted that performance for a majority of the Portfolios has been mixed compared to their respective benchmark indexes over the five-year period ended March 31, 2018. The Board noted that, as of March 31, 2018, 70%, 23% and 92% of the Trust’s assets (based on Administrative Class performance) outperformed their respective benchmarks on a net-of-fees basis over the three-, five- and ten-year periods, respectively. The Board also discussed actions that have been taken by PIMCO to attempt to improve performance and took note of PIMCO’s plans to monitor performance going forward.

The Board considered PIMCO’s discussion of the intensive nature of managing bond funds, noting that it requires the management of a number of factors, including: varying maturities; prepayments; collateral management; counterparty management; pay-downs; credit and corporate events; workouts; derivatives; net new issuance in the bond market; and decreased market maker inventory levels. The Board noted that in addition to managing these factors, PIMCO must also balance risk controls and strategic positions in each portfolio it manages, including the Portfolios. Despite these challenges, the Board noted PIMCO’s ability to generate non-market correlated excess performance for its clients over time, including the Trust.

The Board ultimately concluded, within the context of all of its considerations in connection with the Agreements, that PIMCO’s performance record and process in managing the Portfolios indicates that its continued management is likely to benefit the Portfolios and their shareholders, and merits the approval of the renewal of the Agreements.

4. ADVISORY FEES, SUPERVISORY AND ADMINISTRATIVE FEES AND TOTAL EXPENSES

The Board considered that PIMCO seeks to price new funds and classes to scale. PIMCO reported to the Board that, in proposing fees for any Portfolio or class of shares, it considers a number of factors, including, but not limited to, the type and complexity of the services provided, the cost of providing services, the risk assumed by PIMCO in the development of products and the provision of services and the competitive marketplace for financial products. Fees charged to or proposed for different Portfolios for advisory services and supervisory and administrative services may vary in light of these various factors. The Board considered that portfolio pricing generally is not driven by comparison to passively-managed products.

In addition, PIMCO reported to the Board that it periodically reviews the fees charged to the Portfolios. The Board noted that, based upon this review, PIMCO may propose advisory fee or supervisory and administrative fee changes where (i) a Portfolio’s long-term performance warrants additional consideration; (ii) there is a notable aid to market

ANNUAL REPORT DECEMBER 31, 2018 47

Approval of Investment Advisory Contract and Other Agreements (Cont.)

position; (iii) a Portfolio’s fee does not reflect the current level of supervision or administrative fees provided to the Portfolio; or (iv) PIMCO would like to change a Portfolio’s overall strategic positioning.

The Board reviewed the advisory fees, supervisory and administrative fees and total expenses of the Portfolios (each as a percentage of average net assets) and compared such amounts with the average and median fee and expense levels of other similar funds. The Board also reviewed information relating to the sub-advisory fees paid to Research Affiliates with respect to applicable Portfolios, taking into account that PIMCO compensates Research Affiliates from the advisory fees paid by such Portfolios to PIMCO. With respect to advisory fees, the Board reviewed data from Broadridge that compared the average and median advisory fees of other funds in a “Peer Group” of comparable funds, as well as the universe of other similar funds. The Board noted that a number of Portfolios have total expense ratios that fall below the average and median expense ratios in their Peer Group and Lipper universe. In addition, the Board considered fee waivers in place for certain of the Portfolios and also noted the fee waivers in place with respect to the advisory fee and supervisory and administrative fee that might result from investments by applicable Portfolios in their respective wholly-owned subsidiaries. The Board also considered that PIMCO reviews the Portfolios’ fee levels and carefully considers changes where appropriate.

The Board also reviewed data comparing the Portfolios’ advisory fees to the standard and negotiated fee rates PIMCO charges to separate accounts, collective investment trusts and sub-advised clients with similar investment strategies. In cases where the fees for other clients were lower than those charged to the Portfolios, the Trustees noted that the differences in fees were attributable to various factors, including, but not limited to, differences in the advisory and other services provided by PIMCO to the Portfolios, differences in the number or extent of the services provided by PIMCO to the Portfolios, the manner in which similar portfolios may be managed, different requirements with respect to liquidity management and the implementation of other regulatory requirements, and the fact that separate accounts may have other contractual arrangements or arrangements across PIMCO strategies that justify different levels of fees. The Board considered that, with respect to collective investment trusts, PIMCO performs fewer or less extensive services because collective investment trusts are generally exempt from SEC regulation; investors in a collective investment trust may receive shareholder services from a trustee bank, rather than PIMCO; collective investment trusts have less regulatory disclosure; and the management structure of collective investment trusts differs from that of funds. The Trustees also considered that PIMCO faces increased entrepreneurial, legal and regulatory risk in sponsoring and managing mutual funds and ETFs as compared to separate accounts, external sub-advised funds or other investment products.

Regarding advisory fees charged by PIMCO in its capacity as sub-adviser to third party/unaffiliated funds, the Trustees took into account that such fees may be lower than the fees charged by PIMCO to serve as adviser to the Portfolios. The Trustees also took into account that there are various reasons for any such differences in fees, including, but not limited to, the fact that PIMCO may be subject to varying levels of entrepreneurial risk and regulatory requirements, differing legal liabilities on a contract-by-contract basis and different servicing requirements when PIMCO does not serve as the sponsor of a fund and is not principally responsible for all aspects of a fund’s investment program and operations as compared to when PIMCO serves as investment adviser and sponsor.

The Board considered the Portfolios’ supervisory and administrative fees, comparing them to similar funds in the report supplied by Broadridge. The Board also considered that as the Portfolios’ business has become increasingly complex and the number of Portfolios has grown over time, PIMCO has provided an increasingly broad array of fund supervisory and administrative functions. In addition, the Board considered the Trust’s unified fee structure, under which the Trust pays for the supervisory and administrative services it requires for one set fee. In return for this unified fee, PIMCO provides or procures supervisory and administrative services and bears the costs of various third party services required by the Portfolios, including audit, custodial, portfolio accounting, legal, transfer agency, sub-accounting and printing costs. The Board further considered that many other funds pay for comparable services separately, and thus it is difficult to directly compare the Trust’s unified supervisory and administrative fees with the fees paid by other funds for administrative services alone. The Board also considered that the unified supervisory and administrative fee leads to Portfolio fees that are fixed over the contract period, rather than variable. The Board noted that, although the unified fee structure does not have breakpoints, it implicitly reflects economies of scale by fixing the absolute level of Portfolio fees at competitive levels over the contract period even if the Portfolios’ operating costs rise when assets remain flat or decrease. Other factors the Board considered in assessing the unified fee include PIMCO’s approach of pricing Portfolios to scale at inception and reinvesting in other important areas of the business that support the Portfolios. The Board considered that the Portfolios’ unified fee structure meant that fees were not impacted by recent outflows in certain Portfolios, unlike funds without a unified fee structure, which may see increased expense ratios when fixed costs, such as service provider costs, are passed through to a smaller asset base. The Board considered historical advisory and supervisory and administrative fee reductions implemented for different Portfolios and classes, noting that the unified fee can be increased or decreased in subsequent contractual periods and is subject to the periodic reviews discussed above. The Board noted that, with few exceptions, PIMCO

48 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

has generally maintained Portfolio fees at the same level as implemented when the unified fee was adopted, and has reduced fees for a number of Portfolios in prior years. The Board concluded that the Portfolios’ supervisory and administrative fees were reasonable in relation to the value of the services provided, including the services provided to different classes of shareholders, and that the expenses assumed contractually by PIMCO under the Supervision and Administration Agreement represent, in effect, a cap on overall Portfolio fees during the contractual period, which is beneficial to the Portfolios and their shareholders.

The Board considered the Portfolios’ total expenses and discussed with PIMCO those Portfolios and/or classes of Portfolios that had above median total expenses. The Board noted that many of the Portfolios are unique products that have few peers, if any, and cannot easily be grouped with comparable funds. Upon comparing the Portfolios’ total expenses to other funds in the “Peer Groups” provided by Broadridge, the Board found total expenses of each Portfolio to be reasonable.

The Trustees also considered the advisory fees charged to the Portfolios that operate as funds of funds (the “Funds of Funds”) and the advisory services provided in exchange for such fees. The Trustees determined that such services were in addition to the advisory services provided to the underlying funds in which the Funds of Funds may invest and, therefore, such services were not duplicative of the advisory services provided to the underlying funds. The Board also considered the various fee waiver agreements in place for the Funds of Funds. The Board noted that PIMCO is continuing waivers for these Funds of Funds, as well as for certain other Portfolios of the Trust.

Based on the information presented by PIMCO, Research Affiliates and Broadridge, members of the Board determined, in the exercise of their business judgment, that the level of the advisory fees and supervisory and administrative fees charged by PIMCO under the Agreements, as well as the total expenses of each Portfolio, after the proposals to decrease the management fee, are reasonable.

5. ADVISER COSTS, LEVEL OF PROFITS AND ECONOMIES OF SCALE

The Board reviewed information regarding PIMCO’s costs of providing services to the Funds as a whole, as well as the resulting level of profits to PIMCO under both the adjusted asset profitability method and the profit and loss profitability method, which were each utilized to calculate profitability. To the extent applicable, the Board also reviewed information regarding the portion of a Portfolio’s advisory fee retained by PIMCO, following the payment of sub-advisory fees to Research Affiliates, with respect to the Portfolio. Additionally, the Board noted that profit margins with respect to the Trust shows that the Trust is profitable, although less so than PIMCO Funds due to payments made

by PIMCO to participating insurance companies. The Board further noted PIMCO’s engagement of a third party to review and to make recommendations regarding PIMCO’s processes supporting its profitability estimation materials. The Board also noted that it had received information regarding the structure and manner in which PIMCO’s investment professionals were compensated, and PIMCO’s view of the relationship of such compensation to the attraction and retention of quality personnel. The Board considered PIMCO’s need to invest in global infrastructure, technology capabilities, risk management processes and qualified personnel to reinforce and offer new services and to accommodate changing regulatory requirements.

With respect to potential economies of scale, the Board noted that PIMCO shares the benefits of economies of scale with the Portfolios and their shareholders in a number of ways, including investing in portfolio and trade operations management, firm technology, middle and back office support, legal and compliance, and fund administration logistics, senior management supervision, governance and oversight of those services, and through fee reductions or waivers, the pricing of Portfolios to scale from inception, and the enhancement of services provided to the Portfolios in return for fees paid. The Board reviewed the history of the Portfolios’ fee structure. The Board considered that the Portfolios’ unified fee rates had been set competitively and/or priced to scale from inception, had been held steady during the contractual period at that scaled competitive rate for most Portfolios as assets grew, or as assets declined in the case of some Portfolios, and continued to be competitive compared with peers. The Board also considered that the unified fee is a transparent means of informing a Portfolio’s shareholders of the fees associated with the Portfolio, and that the Portfolio bears certain expenses that are not covered by the advisory fee or the unified fee. The Board further considered the challenges that arise when managing large funds, which can result in certain “diseconomies” of scale and noted that PIMCO has continued to reinvest in many areas of the business to support the Portfolios.

The Trustees considered that the unified fee has provided inherent economies of scale because a Portfolio maintains competitive fixed fees over the annual contract period even if the particular Portfolio’s assets decline and/or operating costs rise. The Trustees further considered that, in contrast, breakpoints may be a proxy for charging higher fees on lower asset levels and that when a fund’s assets decline, breakpoints may reverse, which causes expense ratios to increase. The Trustees also considered that, unlike the Portfolios’ unified fee structure, funds with “pass through” administrative fee structures may experience increased expense ratios when fixed dollar fees are charged against declining fund assets. The Trustees also considered that the unified fee protects shareholders from a rise in operating costs that may result from, among other things, PIMCO’s investments in various business enhancements and infrastructure, including those referenced above. The Trustees noted that PIMCO’s investments in these areas are extensive.

ANNUAL REPORT DECEMBER 31, 2018 49

Approval of Investment Advisory Contract and Other Agreements (Cont.)

(Unaudited)

The Board concluded that the Portfolios’ cost structures were reasonable and that PIMCO is appropriately sharing economies of scale, if any, through the Portfolios’ unified fee structure, generally pricing Portfolios to scale at inception and reinvesting in its business to provide enhanced and expanded services to the Portfolios and their shareholders.

6. ANCILLARY BENEFITS

The Board considered other benefits realized by PIMCO and its affiliates as a result of PIMCO’s relationship with the Trust. Such benefits may include possible ancillary benefits to PIMCO’s institutional investment management business due to the reputation and market penetration of the Trust or third party service providers’ relationship-level fee concessions, which decrease fees paid by PIMCO. The Board also considered that affiliates of PIMCO provide distribution and/or shareholder services to the Portfolios and their shareholders, for which they may be compensated through distribution and servicing fees paid pursuant to the Portfolios’ Rule 12b-1 plans or otherwise. The Board reviewed PIMCO’s soft dollar policies and procedures, noting that while PIMCO has the authority to receive the benefit of research provided by broker-dealers executing portfolio transactions on behalf of the Portfolios, it has adopted a policy not to enter into contractual soft dollar arrangements.

7. CONCLUSIONS

Based on their review, including their comprehensive consideration and evaluation of each of the broad factors and information summarized above, the Independent Trustees and the Board as a whole concluded that the nature, extent and quality of the services rendered to the Portfolios by PIMCO and Research Affiliates supported the renewal of the Agreements and the Asset Allocation Agreement. The Independent Trustees and the Board as a whole concluded that the Agreements and the Asset Allocation Agreement continued to be fair and reasonable to the Portfolios and their shareholders, that the Portfolios’ shareholders received reasonable value in return for the fees paid to PIMCO by the Portfolios under the Agreements and the fees paid to Research Affiliates by PIMCO under the Asset Allocation Agreement, and that the renewal of the Agreements and the Asset Allocation Agreement was in the best interests of the Portfolios and their shareholders.

50 PIMCO VARIABLE INSURANCE TRUST

General Information

Investment Adviser and Administrator

Pacific Investment Management Company LLC

650 Newport Center Drive

Newport Beach, CA 92660

Distributor

PIMCO Investments LLC

1633 Broadway

New York, NY 10019

Custodian

State Street Bank and Trust Company

801 Pennsylvania Avenue

Kansas City, MO 64105

Transfer Agent

DST Asset Manager Solutions, Inc.

430 W 7th Street STE 219024

Kansas City, MO 64105-1407

Legal Counsel

Dechert LLP

1900 K Street, N.W.

Washington, D.C. 20006

Independent Registered Public Accounting Firm

PricewaterhouseCoopers LLP

1100 Walnut Street, Suite 1300

Kansas City, MO 64106

This report is submitted for the general information of the shareholders of the PIMCO Variable Insurance Trust.

pimco.com/pvit

PVIT12AR_123118

PIMCO VARIABLE INSURANCE TRUST

Annual Report

December 31, 2018

PIMCO Income Portfolio

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, you may not be receiving paper copies of the Portfolio’s shareholder reports from the insurance company that offers your contract unless you specifically request paper copies from the insurance company or from your financial intermediary. Instead, the shareholder reports will be made available on a website, and the insurance company will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the insurance company electronically by following the instructions provided by the insurance company.

You may elect to receive all future reports in paper free of charge from the insurance company. You should contact the insurance company if you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all portfolio companies available under your contract at the insurance company.

Table of Contents

	Page
Chairman’s Letter		2
Important Information About the PIMCO Income Portfolio		4
Portfolio Summary		6
Expense Example		7
Financial Highlights		8
Statement of Assets and Liabilities		10
Statement of Operations		11
Statements of Changes in Net Assets		12
Schedule of Investments		13
Notes to Financial Statements		27
Report of Independent Registered Public Accounting Firm		46
Glossary		47
Federal Income Tax Information		48
Management of the Trust		49
Privacy Policy		51
Approval of Investment Advisory Contract and Other Agreements		52

This material is authorized for use only when preceded or accompanied by the current PIMCO Variable Insurance Trust (the “Trust”) prospectus for the Portfolio. (The variable product prospectus may be obtained by contacting your Investment Consultant.)

Chairman’s Letter

Dear PIMCO Variable Insurance Trust Shareholder,

Following this letter is the PIMCO Variable Insurance Trust Annual Report, which covers the 12-month reporting period ended December 31, 2018. On the subsequent pages you will find specific details regarding investment results and discussion of the factors that most affected performance during the reporting period.

For the 12-month reporting period ended December 31, 2018

The U.S. economy continued to expand during the reporting period. Looking back, U.S. gross domestic product (“GDP”) grew at an annual pace of 2.2% during the first quarter of 2018. During the second quarter of 2018, GDP growth rose to an annual pace of 4.2%, the strongest since the third quarter of 2014. GDP then expanded at an annual pace of 3.4% during the third quarter of the year. Finally, the Commerce Department’s initial reading for fourth-quarter 2018 GDP has been delayed due to the partial government shutdown.

The Federal Reserve (the “Fed”) continued to normalize monetary policy during the reporting period. During its meetings that concluded in March, June, September and December 2018, the Fed raised the federal funds rate in 0.25% increments. The Fed’s December rate hike pushed the federal funds rate to a range between 2.25% and 2.50%. In addition, the Fed continued to reduce its balance sheet during the reporting period.

Economic activity outside the U.S. initially accelerated during the reporting period, but moderated as it progressed. Against this backdrop, the European Central Bank (the “ECB”) and the Bank of Japan largely maintained their highly accommodative monetary policies, while other central banks took a more hawkish stance. The Bank of England raised rates at its meeting in August 2018 and the Bank of Canada raised rates twice during the reporting period. Meanwhile, the ECB ended its quantitative easing program in December 2018, but indicated that it does not expect to raise interest rates “at least through the summer of 2019.”

The U.S. Treasury yield curve flattened during the reporting period as short-term rates moved up more than longer-term rates. In our view, the increase in rates at the short end of the yield curve was mostly due to Fed interest rate increases. The yield on the benchmark 10-year U.S. Treasury note was 2.69% at the end of the reporting period, up from 2.40% on December 31, 2017. U.S. Treasuries, as measured by the Bloomberg Barclays U.S. Treasury Index, returned 0.86% over the 12 months ended December 31, 2018. Meanwhile, the Bloomberg Barclays U.S. Aggregate Bond Index, a widely used index of U.S. investment grade bonds, returned 0.01% over the period. Riskier fixed income asset classes, including high yield corporate bonds and emerging market debt, generated weak results versus the broad U.S. market. The ICE BofAML U.S. High Yield Index returned -2.27% over the reporting period, whereas emerging market external debt, as represented by the JPMorgan Emerging Markets Bond Index (EMBI) Global, returned -4.61% over the reporting period. Emerging market local bonds, as represented by the JPMorgan Government Bond Index-Emerging Markets Global Diversified Index (Unhedged), returned -6.21% over the period.

Global equities produced poor results during the reporting period. U.S. equities moved sharply higher over the first nine months of the period. We believe this rally was driven by a number of factors, including corporate profits that often exceeded expectations. However, U.S. equities fell sharply during the fourth quarter of 2018. We believe this was triggered by a number of factors, including signs of moderating global growth, concerns over future Fed rate hikes, the ongoing trade dispute between the U.S. and China and the partial U.S. government shutdown. All told, U.S. equities, as represented by the S&P 500 Index, returned -4.38% during the reporting period. Elsewhere, emerging market equities, as measured by the MSCI Emerging Markets Index, returned -14.58% during the reporting period, whereas global equities, as represented by the MSCI World Index, returned -8.71%. Elsewhere, Japanese equities, as represented by the Nikkei 225 Index (in JPY), returned -10.39% during the reporting period and European equities, as represented by the MSCI Europe Index (in EUR), returned -10.57%.

Commodity prices fluctuated and generally declined during the reporting period. When the reporting period began, West Texas crude oil was approximately $65 a barrel, but by the end it was roughly $45 a barrel. This was driven in

2 PIMCO VARIABLE INSURANCE TRUST

part by increased supply and declining global demand. Elsewhere, gold and copper prices also moved lower during the reporting period.

Finally, during the reporting period the foreign exchange markets experienced periods of volatility, due in part to signs of decoupling economic growth and central bank policies, along with a number of geopolitical events. The U.S. dollar produced mixed results against other major currencies during the reporting period. For example, the U.S. dollar appreciated 4.71% and 5.90% versus the euro and the British pound, respectively, whereas the U.S. dollar depreciated 2.66% versus the yen during the reporting period.

Thank you for the assets you have placed with us. We deeply value your trust, and we will continue to work diligently to meet your broad investment needs.

Sincerely,     Brent R. Harris Chairman of the Board,
PIMCO Variable Insurance Trust  

Past performance is no guarantee of future results. Unless otherwise noted, index returns reflect the reinvestment of income distributions and capital gains, if any, but do not reflect fees, brokerage commissions or other expenses of investing. It is not possible to invest directly in an unmanaged index.

ANNUAL REPORT DECEMBER 31, 2018 3

Important Information About the PIMCO Income Portfolio

PIMCO Variable Insurance Trust (the “Trust”) is an open-end management investment company that includes the PIMCO Income Portfolio (the “Portfolio”). The Portfolio is only available as a funding vehicle under variable life insurance policies or variable annuity contracts issued by insurance companies (“Variable Contracts”). Individuals may not purchase shares of the Portfolio directly. Shares of the Portfolio also may be sold to qualified pension and retirement plans outside of the separate account context.

We believe that bond funds have an important role to play in a well-diversified investment portfolio. It is important to note, however, that in an environment where interest rates may trend upward, rising rates would negatively impact the performance of most bond funds, and fixed income securities and other instruments held by the Portfolio are likely to decrease in value. A wide variety of factors can cause interest rates to rise (e.g., central bank monetary policies, inflation rates, general economic conditions, etc.). In addition, changes in interest rates can be sudden and unpredictable, and there is no guarantee that management will anticipate such movement accurately. The Portfolio may lose money as a result of movements in interest rates.

As of the date of this report, interest rates in the U.S. and many parts of the world, including certain European countries, are at or near historically low levels. Thus, the Portfolio currently faces a heightened level of interest rate risk, especially since the Fed has ended its quantitative easing program and has begun, and may continue, to raise interest rates. To the extent the Fed continues to raise interest rates, there is a risk that rates across the financial system may rise. Further, while bond markets have steadily grown over the past three decades, dealer inventories of corporate bonds are near historic lows in relation to market size. As a result, there has been a significant reduction in the ability of dealers to “make markets.”

Bond funds and individual bonds with a longer duration (a measure used to determine the sensitivity of a security’s price to changes in interest rates) tend to be more sensitive to changes in interest rates, usually making them more volatile than securities or funds with shorter durations. All of the factors mentioned above, individually or collectively, could lead to increased volatility and/or lower liquidity in the fixed income markets or negatively impact the Portfolio’s performance or cause the Portfolio to incur losses. As a result, the Portfolio may experience increased shareholder redemptions, which,

among other things, could further reduce the net assets of the Portfolio.

The Portfolio may be subject to various risks as described in the Portfolio’s prospectus and in the Principal Risks in the Notes to Financial Statements.

The geographical classification of foreign (non-U.S.) securities in this report are classified by the country of incorporation of a holding. In certain instances, a security’s country of incorporation may be different from its country of economic exposure.

The United States presidential administration’s enforcement of tariffs on goods from other countries, with a focus on China, has contributed to international trade tensions and may impact portfolio securities.

The United Kingdom’s decision to leave the European Union may impact Portfolio returns. This decision may cause substantial volatility in foreign exchange markets, lead to weakness in the exchange rate of the British pound, result in a sustained period of market uncertainty, and destabilize some or all of the other European Union member countries and/or the Eurozone.

On the Portfolio Summary page in this Shareholder Report, the Average Annual Total Return table and Cumulative Returns chart measure performance assuming that any dividend and capital gain distributions were reinvested. The Cumulative Returns chart reflects only Administrative Class performance. Performance may vary by share class based on each class’s expense ratios. The Portfolio measures its performance against at least one broad-based securities market index (“benchmark index”). The benchmark index does not take into account fees, expenses, or taxes. The Portfolio’s past performance, before and after taxes, is not necessarily an indication of how the Portfolio will perform in the future. There is no assurance that the Portfolio, even if the Portfolio has experienced high or unusual performance for one or more periods, will experience similar levels of performance in the future. High performance is defined as a significant increase in either 1) the Portfolio’s total return in excess of that of the Portfolio’s benchmark between reporting periods or 2) the Portfolio’s total return in excess of the Portfolio’s historical returns between reporting periods. Unusual performance is defined as a significant change in the Portfolio’s performance as compared to one or more previous reporting periods.

The following table discloses the inception dates of the Portfolio and its respective share classes along with the Portfolio’s diversification status as of period end:

Portfolio Name

Portfolio Inception

Institutional Class

Class M

Administrative Class

Advisor Class

Diversification Status

PIMCO Income Portfolio

04/29/16

04/29/16

—

04/29/16

04/29/16

Diversified

4 PIMCO VARIABLE INSURANCE TRUST

An investment in the Portfolio is not a bank deposit and is not guaranteed or insured by the Federal Deposit Insurance Corporation (“FDIC”) or any other government agency. It is possible to lose money on investments in the Portfolio.

The Trustees are responsible generally for overseeing the management of the Trust. The Trustees authorize the Trust to enter into service agreements with the Adviser, the Distributor, the Administrator and other service providers in order to provide, and in some cases authorize service providers to procure through other parties, necessary or desirable services on behalf of the Trust and the Portfolio. Shareholders are not parties to or third-party beneficiaries of such service agreements. Neither this Portfolio’s prospectus nor summary prospectus, the Trust’s Statement of Additional Information (“SAI”), any contracts filed as exhibits to the Trust’s registration statement, nor any other communications, disclosure documents or regulatory filings (including this report) from or on behalf of the Trust or the Portfolio creates a contract between or among any shareholder of the Portfolio, on the one hand, and the Trust, the Portfolio, a service provider to the Trust or the Portfolio, and/or the Trustees or officers of the Trust, on the other hand. The Trustees (or the Trust and its officers, service providers or other delegates acting under authority of the Trustees) may amend the most recent prospectus or use a new prospectus, summary prospectus or SAI with respect to the Portfolio or the Trust, and/or amend, file and/or issue any other communications, disclosure documents or regulatory filings, and may amend or enter into any contracts to which the Trust or the Portfolio is a party, and interpret the investment objective(s), policies, restrictions and contractual provisions applicable to the Portfolio, without shareholder input or approval, except in circumstances in which shareholder approval is specifically required by law (such as changes to fundamental investment policies) or where a shareholder approval requirement is specifically disclosed in the Trust’s then-current prospectus or SAI.

PIMCO has adopted written proxy voting policies and procedures (“Proxy Policy”) as required by Rule 206(4)-6 under the Investment Advisers Act of 1940, as amended. The Proxy Policy has been adopted by the Trust as the policies and procedures that PIMCO will use when voting proxies on behalf of the Portfolio. A description of the policies and procedures that PIMCO uses to vote proxies relating to portfolio securities of the Portfolio, and information about how the Portfolio voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, are available without charge, upon request, by calling the Trust at (888) 87-PIMCO, on the Portfolio’s website at www.pimco.com/pvit, and on the Securities and Exchange Commission’s (“SEC”) website at www.sec.gov.

The Trust files a complete schedule of the Portfolio’s holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. A copy of the Portfolio’s Form N-Q is available on the SEC’s website at www.sec.gov. A copy of the Portfolio’s Form N-Q is also available without charge, upon request, by calling the Trust at (888) 87-PIMCO and on the Portfolio’s website at www.pimco.com/pvit.

The SEC adopted a rule that, beginning in 2021, generally will allow shareholder reports to be delivered to investors by providing access to such reports online free of charge and by mailing a notice that the report is electronically available. Pursuant to the rule, investors may still elect to receive a complete shareholder report in the mail. Instructions for electing to receive paper copies of the Portfolio’s shareholder reports going forward may be found on the front cover of this report.

The SEC adopted amendments to certain disclosure requirements relating to open-end investment companies’ liquidity risk management programs. Effective December 1, 2019, large fund complexes will be required to include in their shareholder reports a discussion of their liquidity risk management programs’ operations over the past year.

ANNUAL REPORT DECEMBER 31, 2018 5

PIMCO Income Portfolio

Cumulative Returns Through December 31, 2018

$10,000 invested at the end of the month when the Portfolio’s Administrative Class commenced operations.

Allocation Breakdown as of 12/31/2018^†§

Corporate Bonds & Notes	28.5%
U.S. Treasury Obligations	21.6%
Asset-Backed Securities	19.2%
U.S. Government Agencies	11.2%
Short-Term Instruments‡	7.5%
Non-Agency Mortgage-Backed Securities	5.7%
Sovereign Issues	3.6%
Loan Participations and Assignments	2.5%
Other	0.2%

^†  % of Investments, at value.

^§  Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.

^‡  Includes Central Funds Used for Cash Management Purposes.

Average Annual Total Return for the period ended December 31, 2018
		1 Year		Inception≈
	PIMCO Income Portfolio Institutional Class		0.54%		5.45%
	PIMCO Income Portfolio Administrative Class		0.39%		5.29%
	PIMCO Income Portfolio Advisor Class		0.29%		5.19%
	Bloomberg Barclays U.S. Aggregate Index±		0.01%		1.03%	¨

All Portfolio returns are net of fees and expenses.

^≈ For class inception dates please refer to the Important Information.

^¨ Average annual total return since 4/29/2016

^± Bloomberg Barclays U.S. Aggregate Index represents securities that are SEC-registered, taxable, and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. These major sectors are subdivided into more specific indices that are calculated and reported on a regular basis.

It is not possible to invest directly in an unmanaged index.

Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. The Portfolio’s performance does not reflect the deduction of additional charges and expenses imposed in connection with investing in Variable Contracts, which will reduce returns. Differences in the Portfolio’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the prices of individual positions (which may be sourced from different pricing vendors or other sources) used by the Portfolio and the index. For performance current to the most recent month-end, visit www.pimco.com/pvit or via (888) 87-PIMCO.

The Portfolio’s total annual operating expense ratio in effect as of period end were 0.67% for Institutional Class shares, 0.82% for Administrative Class shares, and 0.92% for Advisor Class shares. Details regarding any changes to the Portfolio’s operating expenses, subsequent to period end, can be found in the Portfolio’s current prospectus, as supplemented.

Investment Objective and Strategy Overview

PIMCO Income Portfolio seeks to maximize current income, with long-term capital appreciation as a secondary objective, by investing under normal circumstances at least 65% of its total assets in a multi-sector portfolio of Fixed Income Instruments of varying maturities, which may be represented by forwards or derivatives such as options, futures contracts or swap agreements. “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 Portfolio will seek to maintain a high and consistent level of dividend income by investing in a broad array of fixed income sectors and utilizing strategies that seek to optimize portfolio income (i.e., strategies that prioritize current income over total return). The capital appreciation sought by the Portfolio generally arises from decreases in interest rates or improving credit fundamentals for a particular sector or security. Portfolio strategies may change from time to time. Please refer to the Portfolio’s current prospectus for more information regarding the Portfolio’s strategy.

Portfolio Insights

The following affected performance during the reporting period:

» Exposure to U.S. interest rates contributed to performance, as U.S. interest rates decreased.

» Positions in non-agency mortgage-backed securities contributed to performance, as total returns in these securities were positive.

» A long U.S. dollar bias versus developed market currencies, including the Japanese yen and Australian dollar, contributed to performance, as the U.S. dollar appreciated.

» Exposure to the U.S. cash rate contributed to performance, as the short-term rates continued to rise.

» Long exposure to high yield and investment grade corporate credit detracted from performance, as spreads widened.

» Long exposure to emerging market debt detracted from performance, as total returns were negative.

» Long exposure to emerging market currencies (including the Argentine peso and Turkish lira) detracted from performance, as the currencies depreciated.

6 PIMCO VARIABLE INSURANCE TRUST

Expense Example PIMCO Income Portfolio

Example

As a shareholder of the Portfolio, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees (if applicable), and other Portfolio expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in the Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds.

The Expense Example does not reflect any fees or other expenses imposed by the Variable Contracts. If it did, the expenses reflected in the Expense Example would be higher. The Example is based on an investment of $1,000 invested at the beginning of the period and held from July 1, 2018 to December 31, 2018 unless noted otherwise in the table and footnotes below.

Actual Expenses

The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60), then multiply the result by the number in the appropriate row for your share class, in the column titled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other portfolios. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other portfolios.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information under the heading “Hypothetical (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different portfolios. In addition, if these transactional costs were included, your costs would have been higher.

Expense ratios may vary period to period because of various factors, such as an increase in expenses that are not covered by the management fees such as fees and expenses of the independent trustees and their counsel, extraordinary expenses and interest expense.

	Actual						Hypothetical (5% return before expenses)
	Beginning Account Value (07/01/18)		Ending Account Value (12/31/18)		Expenses Paid During Period*		Beginning Account Value (07/01/18)		Ending Account Value (12/31/18)		Expenses Paid During Period*		Net Annualized Expense Ratio**
Institutional Class	$	1,000.00	$	1,009.70	$	4.81	$	1,000.00	$	1,020.42	$	4.84		0.95	%
Administrative Class		1,000.00		1,008.90		5.57		1,000.00		1,019.66		5.60		1.10
Advisor Class		1,000.00		1,008.40		6.07		1,000.00		1,019.16		6.11		1.20

* Expenses Paid During Period are equal to the net annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Overall fees and expenses of investing in the Portfolio will be higher because the example does not reflect variable contract fees and expenses.

** Net Annualized Expense Ratio is reflective of any applicable contractual fee waivers and/or expense reimbursements or voluntary fee waivers. Details regarding fee waivers, if any, can be found in Note 9, Fees and Expenses, in the Notes to Financial Statements.

ANNUAL REPORT DECEMBER 31, 2018 7

Financial Highlights PIMCO Income Portfolio

			Investment Operations							Less Distributions(b)
Selected Per Share Data for the Year or Period Ended^:	Net Asset Value Beginning of Year or Period		Net Investment Income (Loss)(a)		Net Realized/ Unrealized Gain (Loss)			Total		From Net Investment Income			From Net Realized Capital Gain			Total
Institutional Class
12/31/2018	$	10.74	$	0.45	$	(0.40	)	$	0.05	$	(0.35	)	$	(0.07	)	$	(0.42	)
12/31/2017		10.19		0.36		0.47			0.83		(0.28	)		0.00			(0.28	)
04/29/2016 - 12/31/2016		10.00		0.18		0.41			0.59		(0.38	)		(0.02	)		(0.40	)
Administrative Class
12/31/2018		10.74		0.40		(0.37	)		0.03		(0.33	)		(0.07	)		(0.40	)
12/31/2017		10.19		0.35		0.47			0.82		(0.27	)		0.00			(0.27	)
04/29/2016 - 12/31/2016		10.00		0.22		0.36			0.58		(0.37	)		(0.02	)		(0.39	)
Advisor Class
12/31/2018		10.74		0.39		(0.37	)		0.02		(0.32	)		(0.07	)		(0.39	)
12/31/2017		10.19		0.33		0.48			0.81		(0.26	)		0.00			(0.26	)
04/29/2016 - 12/31/2016		10.00		0.20		0.37			0.57		(0.36	)		(0.02	)		(0.38	)

^ A zero balance may reflect actual amounts rounding to less than $0.01 or 0.01%.

* Annualized

^(a)  Per share amounts based on average number of shares outstanding during the year or period.

^(b)  The tax characterization of distributions is determined in accordance with Federal income tax regulations. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

8 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

					Ratios/Supplemental Data
							Ratios to Average Net Assets
Net Asset Value End of Year or Period		Total Return			Net Assets End of Year or Period (000s)		Expenses			Expenses Excluding Waivers			Expenses Excluding Interest Expense			Expenses Excluding Interest Expense and Waivers			Net Investment Income (Loss)			Portfolio Turnover Rate
$	10.37		0.54	%	$	1,382		0.89	%		0.89	%		0.65	%		0.65	%		4.29	%		188	%
	10.74		8.24			29		0.67			0.67			0.65			0.65			3.38			206
	10.19		5.92			26		0.65	*		0.69	*		0.65	*		0.69	*		2.69	*		203
	10.37		0.39			96,244		1.04			1.04			0.80			0.80			3.83			188
	10.74		8.08			85,702		0.82			0.82			0.80			0.80			3.27			206
	10.19		5.82			17,864		0.80	*		0.84	*		0.80	*		0.84	*		3.19	*		203
	10.37		0.29			181,869		1.14			1.14			0.90			0.90			3.73			188
	10.74		7.97			170,758		0.92			0.92			0.90			0.90			3.13			206
	10.19		5.74			168,696		0.90	*		0.94	*		0.90	*		0.94	*		2.92	*		203

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 9

Statement of Assets and Liabilities PIMCO Income Portfolio

(Amounts in thousands†, except per share amounts)	December 31, 2018
Assets:
Investments, at value
Investments in securities*	$	365,264
Investments in Affiliates		5,549
Financial Derivative Instruments
Exchange-traded or centrally cleared		268
Over the counter		1,717
Cash		76
Deposits with counterparty		2,984
Foreign currency, at value		1,309
Receivable for investments sold		2,337
Receivable for TBA investments sold		44,009
Interest and/or dividends receivable		2,245
Dividends receivable from Affiliates		5
Reimbursement receivable from PIMCO		3
Total Assets		425,766
Liabilities:
Borrowings & Other Financing Transactions
Payable for reverse repurchase agreements	$	55,079
Payable for short sales		4,533
Financial Derivative Instruments
Exchange-traded or centrally cleared		175
Over the counter		1,744
Payable for investments purchased		514
Payable for investments in Affiliates purchased		5
Payable for TBA investments purchased		81,930
Payable for unfunded loan commitments		99
Deposits from counterparty		1,853
Payable for Portfolio shares redeemed		142
Accrued investment advisory fees		57
Accrued supervisory and administrative fees		91
Accrued distribution fees		37
Accrued servicing fees		12
Total Liabilities		146,271
Net Assets	$	279,495
Net Assets Consist of:
Paid in capital	$	274,637
Distributable earnings (accumulated loss)		4,858
Net Assets	$	279,495
Net Assets:
Institutional Class	$	1,382
Administrative Class		96,244
Advisor Class		181,869
Shares Issued and Outstanding:
Institutional Class		133
Administrative Class		9,284
Advisor Class		17,545
Net Asset Value Per Share Outstanding:
Institutional Class	$	10.37
Administrative Class		10.37
Advisor Class		10.37
Cost of investments in securities	$	363,323
Cost of investments in Affiliates	$	5,549
Cost of foreign currency held	$	1,295
Proceeds received on short sales	$	4,472
Cost or premiums of financial derivative instruments, net	$	(2,699	)
* Includes repurchase agreements of:	$	1,321

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

10 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

Statement of Operations PIMCO Income Portfolio

(Amounts in thousands†)	Year Ended December 31, 2018
Investment Income:
Interest	$	12,583
Dividends		2
Dividends from Investments in Affiliates		49
Total Income		12,634
Expenses:
Investment advisory fees		648
Supervisory and administrative fees		1,037
Servicing fees - Administrative Class		122
Distribution and/or servicing fees - Advisor Class		444
Trustee fees		7
Interest expense		626
Miscellaneous expense		13
Total Expenses		2,897
Waiver and/or Reimbursement by PIMCO		(7	)
Net Expenses		2,890
Net Investment Income (Loss)		9,744
Net Realized Gain (Loss):
Investments in securities		(1,405	)
Investments in Affiliates		1
Exchange-traded or centrally cleared financial derivative instruments		(1,480	)
Over the counter financial derivative instruments		2,393
Short sales		(107	)
Foreign currency		(434	)
Net Realized Gain (Loss)		(1,032	)
Net Change in Unrealized Appreciation (Depreciation):
Investments in securities		(9,115	)
Exchange-traded or centrally cleared financial derivative instruments		395
Over the counter financial derivative instruments		850
Short sales		(6	)
Foreign currency assets and liabilities		83
Net Change in Unrealized Appreciation (Depreciation)		(7,793	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	919

^† A zero balance may reflect actual amounts rounding to less than one thousand.

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 11

Statements of Changes in Net Assets PIMCO Income Portfolio

(Amounts in thousands†)	Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets from:
Operations:
Net investment income (loss)	$	9,744		$	7,083
Net realized gain (loss)		(1,032	)		1,767
Net change in unrealized appreciation (depreciation)		(7,793	)		7,662
Net Increase (Decrease) in Net Assets Resulting from Operations		919			16,512
Distributions to Shareholders:
From net investment income and/or net realized capital gains*
Institutional Class		(22	)		(1	)
Administrative Class		(3,271	)		(1,437	)
Advisor Class		(6,765	)		(4,095	)
Total Distributions(a)		(10,058	)		(5,533	)
Portfolio Share Transactions:
Net increase (decrease) resulting from Portfolio share transactions**		32,145			58,924
Total Increase (Decrease) in Net Assets		23,006			69,903
Net Assets:
Beginning of year		256,489			186,586
End of year	$	279,495		$	256,489

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

* See Note 2, New Accounting Pronouncements, in the Notes to Financial Statements for more information.

** See Note 13, Shares of Beneficial Interest, in the Notes to Financial Statements.

^(a)  The tax characterization of distributions is determined in accordance with Federal income tax regulations. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

12 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

Schedule of Investments PIMCO Income Portfolio

December 31, 2018

(Amounts in thousands*, except number of shares, contracts and units, if any)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
INVESTMENTS IN SECURITIES 130.7%
LOAN PARTICIPATIONS AND ASSIGNMENTS 3.3%
Altice France S.A.
6.455% due 08/14/2026	$		100	$		94
Avantor, Inc.
6.572% due 11/21/2024			47			46
Avolon Holdings Ltd.
4.470% due 01/15/2025			166			160
Axalta Coating Systems U.S. Holdings, Inc.
4.553% due 06/01/2024			10			9
Beacon Roofing Supply, Inc.
4.682% due 01/02/2025			20			19
BWAY Holding Co.
5.658% due 04/03/2024			20			19
Caesars Resort Collection LLC
5.272% due 12/22/2024			198			190
Community Health Systems, Inc.
5.957% due 01/27/2021			505			486
Concordia International Corp.
7.887% due 09/06/2024			100			95
Core & Main LP
5.707% - 5.738% due 08/01/2024			10			10
Cortes NP Acquisition Corp.
6.707% due 11/30/2023 «			75			69
Diamond Resorts Corp.
6.272% due 09/02/2023			98			91
Dubai World
1.750% - 2.000% due 09/30/2022			500			468
Envision Healthcare Corp.
6.273% due 10/10/2025			200			187
Financial & Risk U.S. Holdings, Inc.
6.272% due 10/01/2025			400			375
Forest City Enterprises LP
6.383% due 12/07/2025 «			100			98
Hilton Worldwide Finance LLC
4.256% due 10/25/2023			1,104			1,065
iHeartCommunications, Inc.
TBD% due 01/30/2019 ^(b)			1,122			750
TBD% due 07/30/2019 ^(b)			170			114
Intelsat Jackson Holdings S.A.
6.256% due 11/27/2023			150			146
6.625% due 01/02/2024			57			57
KFC Holding Co.
4.220% due 04/03/2025			1,564			1,526
Las Vegas Sands LLC
4.272% due 03/27/2025			1,136			1,087
McDermott Technology Americas, Inc.
7.522% due 05/12/2025			14			13
Messer Industrie GmbH
TBD% due 10/01/2025			100			96
MH Sub LLC
6.254% due 09/13/2024			40			38
Multi Color Corp.
4.522% due 10/31/2024 «			7			7
NCI Building Systems, Inc.
6.175% due 04/12/2025 «			139			127
Neiman Marcus Group Ltd. LLC
5.630% due 10/25/2020			568			484
PetSmart, Inc.
5.380% due 03/11/2022			50			39
Post Holdings, Inc.
4.510% due 05/24/2024			12			12
RPI Finance Trust
4.522% due 03/27/2023			32			31
Sequa Mezzanine Holdings LLC
7.408% due 11/28/2021 «			209			200
11.520% due 04/28/2022 «			40			38
Sprint Communications, Inc.
5.063% due 02/02/2024			98			94
SS&C Technologies Holdings Europe SARL
4.772% due 04/16/2025			91			87

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
SS&C Technologies, Inc.
4.772% due 04/16/2025	$		258	$		245
Starfruit Finco B.V
5.599% due 10/01/2025 «			100			94
TEX Operations Co. LLC
4.522% due 08/04/2023			40			39
Unitymedia Hessen GmbH & Co. KG
2.750% due 01/15/2027	EUR		100			114
Univision Communications, Inc.
5.272% due 03/15/2024	$		99			90
Valeant Pharmaceuticals International, Inc.
5.129% due 11/27/2025			59			56
5.379% due 06/02/2025			5			5
West Corp.
6.527% due 10/10/2024			26			24
Total Loan Participations and Assignments (Cost $9,490)						9,094
CORPORATE BONDS & NOTES 37.8%
BANKING & FINANCE 20.3%
Aircastle Ltd.
5.500% due 02/15/2022			1,290			1,321
7.625% due 04/15/2020			1,400			1,465
Ally Financial, Inc.
4.250% due 04/15/2021			700			690
8.000% due 03/15/2020			200			207
8.000% due 11/01/2031			3			3
Ambac LSNI LLC
7.803% due 02/12/2023 •			369			371
American International Group, Inc.
5.750% due 04/01/2048 •			50			44
American Tower Corp.
3.000% due 06/15/2023			50			48
5.900% due 11/01/2021			1,110			1,174
Ardonagh Midco PLC
8.375% due 07/15/2023	GBP		200			216
Assurant, Inc.
4.200% due 09/27/2023	$		22			22
Athene Holding Ltd.
4.125% due 01/12/2028			22			20
Avolon Holdings Funding Ltd.
5.125% due 10/01/2023			1,270			1,216
5.500% due 01/15/2023			70			68
AXA Equitable Holdings, Inc.
3.900% due 04/20/2023			8			8
4.350% due 04/20/2028			52			49
5.000% due 04/20/2048			30			26
Banco Santander S.A.
6.250% due 09/11/2021 •(h)(i)	EUR		100			113
Bank of America Corp.
5.875% due 03/15/2028 •(h)	$		1,012			923
Barclays Bank PLC
7.625% due 11/21/2022 (i)			800			830
Barclays PLC
1.500% due 09/03/2023	EUR		200			223
3.250% due 01/17/2033	GBP		100			113
4.009% (US0003M + 1.380%) due 05/16/2024 ~	$		200			191
4.338% due 05/16/2024 •			200			195
4.375% due 01/12/2026			1,000			952
4.610% due 02/15/2023 •			200			198
6.500% due 09/15/2019 •(h)(i)	EUR		500			560
7.250% due 03/15/2023 •(h)(i)	GBP		400			511
7.750% due 09/15/2023 •(h)(i)	$		600			579
7.875% due 09/15/2022 •(h)(i)	GBP		300			384
8.000% due 12/15/2020 •(h)(i)	EUR		400			487
BGC Partners, Inc.
5.375% due 07/24/2023	$		2,200			2,234
Boston Properties LP
3.200% due 01/15/2025			17			16
Brighthouse Financial, Inc.
3.700% due 06/22/2027			34			29

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Brixmor Operating Partnership LP
3.591% (US0003M + 1.050%) due 02/01/2022 ~	$		64	$		64
Brookfield Finance, Inc.
3.900% due 01/25/2028			36			34
4.700% due 09/20/2047			80			74
CBL & Associates LP
5.950% due 12/15/2026			4			3
CIT Group, Inc.
4.125% due 03/09/2021			24			24
5.250% due 03/07/2025			13			13
Citigroup, Inc.
3.740% (US0003M + 1.100%) due 05/17/2024 ~			180			176
Cooperatieve Rabobank UA
5.500% due 06/29/2020 •(h)(i)	EUR		200			235
6.625% due 06/29/2021 •(h)(i)			1,600			1,996
Credit Suisse Group AG
7.500% due 07/17/2023 •(h)(i)	$		200			195
Crown Castle International Corp.
3.200% due 09/01/2024			12			11
3.650% due 09/01/2027			60			56
CTR Partnership LP
5.250% due 06/01/2025			28			27
Deutsche Bank AG
0.184% (EUR003M + 0.500%) due 12/07/2020 ~	EUR		200			223
1.875% due 02/28/2020	GBP		100			126
2.700% due 07/13/2020	$		74			72
3.406% (US0003M + 0.970%) due 07/13/2020 ~			77			75
4.250% due 02/04/2021			200			197
4.250% due 10/14/2021			1,370			1,340
Digital Realty Trust LP
3.700% due 08/15/2027			5			5
Emerald Bay S.A.
0.000% due 10/08/2020 (e)	EUR		11			12
EPR Properties
4.750% due 12/15/2026	$		8			8
4.950% due 04/15/2028			10			10
Equinix, Inc.
2.875% due 03/15/2024	EUR		100			115
2.875% due 02/01/2026			100			109
ERP Operating LP
3.500% due 03/01/2028	$		18			18
Fairfax Financial Holdings Ltd.
4.850% due 04/17/2028			23			22
FCE Bank PLC
1.875% due 06/24/2021	EUR		300			343
Fortress Transportation & Infrastructure Investors LLC
6.500% due 10/01/2025	$		118			111
6.750% due 03/15/2022			182			183
Freedom Mortgage Corp.
8.250% due 04/15/2025			5			4
GE Capital European Funding Unlimited Co.
2.250% due 07/20/2020	EUR		100			118
GE Capital UK Funding Unlimited Co.
4.125% due 09/13/2023	GBP		100			130
4.375% due 07/31/2019			10			13
General Motors Financial Co., Inc.
3.550% due 04/09/2021	$		22			22
GLP Capital LP
5.250% due 06/01/2025			30			30
5.300% due 01/15/2029			72			71
Goldman Sachs Group, Inc.
4.306% (US0003M + 1.600%) due 11/29/2023 ~			100			99
Goodman U.S. Finance Three LLC
3.700% due 03/15/2028			66			63
Howard Hughes Corp.
5.375% due 03/15/2025			63			60
HSBC Holdings PLC
3.240% (US0003M + 0.600%) due 05/18/2021 ~			200			197

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 13

Schedule of Investments PIMCO Income Portfolio (Cont.)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
3.426% (US0003M + 0.650%) due 09/11/2021 ~	$		1,600	$		1,579
3.600% due 05/25/2023			230			229
4.156% (US0003M + 1.380%) due 09/12/2026 ~			200			197
4.292% due 09/12/2026 •			200			198
5.875% due 09/28/2026 •(h)(i)	GBP		200			244
6.500% due 03/23/2028 •(h)(i)	$		200			182
Hudson Pacific Properties LP
3.950% due 11/01/2027			13			12
Hunt Cos., Inc.
6.250% due 02/15/2026			10			9
ING Groep NV
4.100% due 10/02/2023			200			200
International Lease Finance Corp.
6.250% due 05/15/2019			1,375			1,387
iStar, Inc.
4.625% due 09/15/2020			5			5
5.250% due 09/15/2022			19			18
JPMorgan Chase & Co.
3.390% (US0003M + 0.900%) due 04/25/2023 ~			234			231
3.411% (US0003M + 0.610%) due 06/18/2022 ~			520			515
Kennedy-Wilson, Inc.
5.875% due 04/01/2024			28			26
KSA Sukuk Ltd.
2.894% due 04/20/2022			300			293
Life Storage LP
3.875% due 12/15/2027			10			10
Lifestorage LP
3.500% due 07/01/2026			900			845
Lloyds Bank PLC
3.300% due 05/07/2021			200			199
Lloyds Banking Group PLC
4.050% due 08/16/2023			200			198
7.000% due 06/27/2019 •(h)(i)	GBP		500			639
7.500% due 06/27/2024 •(h)(i)	$		200			193
7.500% due 09/27/2025 •(h)(i)			400			387
7.625% due 06/27/2023 •(h)(i)	GBP		400			526
7.875% due 06/27/2029 •(h)(i)			750			1,028
LoanCore Capital Markets LLC
6.875% due 06/01/2020	$		2,700			2,702
Meiji Yasuda Life Insurance Co.
5.100% due 04/26/2048 •			200			198
MetLife, Inc.
5.875% due 03/15/2028 •(h)			6			6
National Australia Bank Ltd.
1.375% due 07/12/2019			300			298
Nationwide Building Society
3.766% due 03/08/2024 •			200			193
4.302% due 03/08/2029 •			200			188
4.363% due 08/01/2024 •			1,290			1,265
Navient Corp.
5.000% due 10/26/2020			4			4
5.875% due 03/25/2021			1,100			1,057
6.500% due 06/15/2022			150			140
Newmark Group, Inc.
6.125% due 11/15/2023			32			32
Nissan Motor Acceptance Corp.
2.350% due 03/04/2019			600			599
Nykredit Realkredit A/S
2.500% due 10/01/2047	DKK		914			147
Oppenheimer Holdings, Inc.
6.750% due 07/01/2022	$		16			16
Physicians Realty LP
3.950% due 01/15/2028			24			23
Provident Funding Associates LP
6.375% due 06/15/2025			9			8
QNB Finance Ltd.
4.015% (US0003M + 1.570%) due 07/18/2021 ~			200			201
4.068% (US0003M + 1.450%) due 08/11/2021 ~			1,400			1,396

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Royal Bank of Scotland Group PLC
3.498% due 05/15/2023 •	$		200	$		192
3.875% due 09/12/2023			200			192
4.086% (US0003M + 1.470%) due 05/15/2023 ~			200			194
5.076% due 01/27/2030 •			200			193
7.500% due 08/10/2020 •(h)(i)			200			198
8.000% due 08/10/2025 •(h)(i)			1,800			1,800
8.625% due 08/15/2021 •(h)(i)			200			207
Santander Holdings USA, Inc.
3.400% due 01/18/2023			24			23
3.700% due 03/28/2022			17			17
4.400% due 07/13/2027			21			20
4.450% due 12/03/2021			53			54
Santander UK Group Holdings PLC
7.375% due 06/24/2022 •(h)(i)	GBP		1,950			2,502
Santander UK PLC
3.400% due 06/01/2021	$		200			199
SBA Tower Trust
2.877% due 07/15/2046			900			884
SL Green Operating Partnership LP
3.250% due 10/15/2022			8			8
Societe Generale S.A.
7.375% due 10/04/2023 •(h)(i)			300			280
Springleaf Finance Corp.
5.625% due 03/15/2023			500			462
6.125% due 05/15/2022			234			228
6.875% due 03/15/2025			29			26
8.250% due 12/15/2020			1,700			1,764
Starwood Property Trust, Inc.
4.750% due 03/15/2025			30			27
Stichting AK Rabobank Certificaten
6.500% due 12/29/2049 (h)	EUR		100			124
STORE Capital Corp.
4.500% due 03/15/2028	$		16			15
UBS Group Funding Switzerland AG
5.750% due 02/19/2022 •(h)(i)	EUR		1,650			2,009
UDR, Inc.
3.500% due 01/15/2028	$		11			10
4.625% due 01/10/2022			3			3
UniCredit SpA
7.830% due 12/04/2023			1,490			1,560
VEREIT Operating Partnership LP
3.950% due 08/15/2027			20			19
VICI Properties LLC
8.000% due 10/15/2023			474			512
Volkswagen Bank GmbH
0.625% due 09/08/2021	EUR		1,300			1,479
Vornado Realty LP
3.500% due 01/15/2025	$		14			13
Wells Fargo & Co.
3.597% (US0003M + 1.110%) due 01/24/2023 ~			1,500			1,486
Welltower, Inc.
3.950% due 09/01/2023			20			20
4.250% due 04/15/2028			22			22
WeWork Cos., Inc.
7.875% due 05/01/2025			30			27
						56,762
INDUSTRIALS 12.6%
AbbVie, Inc.
3.375% due 11/14/2021			100			100
3.750% due 11/14/2023			70			70
4.250% due 11/14/2028			6			6
Air Canada Pass-Through Trust
3.600% due 09/15/2028			648			624
3.700% due 07/15/2027			10			10
Altice Financing S.A.
5.250% due 02/15/2023	EUR		2,630			3,046
Altice France S.A.
6.250% due 05/15/2024	$		200			187

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
7.375% due 05/01/2026	$		1,700	$		1,564
Altice Luxembourg S.A.
7.250% due 05/15/2022	EUR		200			214
American Airlines Pass-Through Trust
3.350% due 04/15/2031	$		19			18
4.000% due 01/15/2027			750			746
Andeavor Logistics LP
3.500% due 12/01/2022			4			4
4.250% due 12/01/2027			6			6
Aptiv PLC
3.150% due 11/19/2020			696			691
Arrow Electronics, Inc.
3.250% due 09/08/2024			12			11
Bacardi Ltd.
4.450% due 05/15/2025			100			99
4.700% due 05/15/2028			100			96
Bausch Health Cos., Inc.
5.500% due 11/01/2025			10			9
6.500% due 03/15/2022			129			130
7.000% due 03/15/2024			56			57
Bayer U.S. Finance LLC
2.750% due 07/15/2021			4			4
3.452% (US0003M + 0.630%) due 06/25/2021 ~			200			197
BC Unlimited Liability Co.
4.250% due 05/15/2024			89			82
British Airways Pass-Through Trust
4.625% due 12/20/2025			234			240
Broadcom Corp.
3.000% due 01/15/2022			158			152
3.625% due 01/15/2024			16			15
3.875% due 01/15/2027			59			53
Campbell Soup Co.
3.288% (US0003M + 0.500%) due 03/16/2020 ~			50			50
3.418% (US0003M + 0.630%) due 03/15/2021 ~			40			39
Charter Communications Operating LLC
3.579% due 07/23/2020			1,300			1,299
4.191% (US0003M + 1.650%) due 02/01/2024 ~			268			264
4.200% due 03/15/2028			54			51
4.500% due 02/01/2024			22			22
Cigna Corp.
3.138% (US0003M + 0.350%) due 03/17/2020 ~			1,070			1,063
Clear Channel Worldwide Holdings, Inc.
6.500% due 11/15/2022			78			78
7.625% due 03/15/2020			50			49
Cleveland-Cliffs, Inc.
4.875% due 01/15/2024			14			13
Comcast Corp.
3.038% (US0003M + 0.630%) due 04/15/2024 ~			72			70
3.127% (US0003M + 0.330%) due 10/01/2020 ~			68			68
3.237% (US0003M + 0.440%) due 10/01/2021 ~			24			24
Community Health Systems, Inc.
5.125% due 08/01/2021			504			470
6.250% due 03/31/2023			696			635
8.625% due 01/15/2024			363			359
CVS Pass-Through Trust
5.789% due 01/10/2026			271			281
DAE Funding LLC
4.000% due 08/01/2020			254			248
4.500% due 08/01/2022			28			27
5.000% due 08/01/2024			62			60
5.250% due 11/15/2021			100			99
5.750% due 11/15/2023			100			99
Diamond Resorts International, Inc.
7.750% due 09/01/2023			312			301
Discovery Communications LLC
2.950% due 03/20/2023			14			13

14 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
3.950% due 03/20/2028	$		18	$		17
DISH DBS Corp.
7.875% due 09/01/2019			592			606
EMC Corp.
2.650% due 06/01/2020			1,350			1,297
Energy Transfer Operating LP
4.200% due 09/15/2023			28			28
4.950% due 06/15/2028			40			39
6.000% due 06/15/2048			8			8
Energy Transfer Partners LP
5.000% due 10/01/2022			1,050			1,072
EQT Corp.
3.567% (US0003M + 0.770%) due 10/01/2020 ~			37			36
Equifax, Inc.
3.486% (US0003M + 0.870%) due 08/15/2021 ~			34			34
3.600% due 08/15/2021			12			12
Exela Intermediate LLC
10.000% due 07/15/2023			43			41
General Electric Co.
0.375% due 05/17/2022	EUR		100			108
2.200% due 01/09/2020	$		31			31
3.100% due 01/09/2023			30			28
3.450% due 05/15/2024			1			1
5.000% due 01/21/2021 •(h)			527			404
5.550% due 05/04/2020			14			14
5.550% due 01/05/2026			166			163
5.875% due 01/14/2038			8			8
6.150% due 08/07/2037			1			1
6.875% due 01/10/2039			18			19
General Mills, Inc.
2.976% (US0003M + 0.540%) due 04/16/2021 ~			51			50
3.200% due 04/16/2021			9			9
HCA, Inc.
5.875% due 03/15/2022			1,230			1,264
Hilton Domestic Operating Co., Inc.
5.125% due 05/01/2026			52			50
Hyundai Capital America
3.601% due 09/18/2020 •			72			72
iHeartCommunications, Inc.
9.000% due 12/15/2019 ^(b)			836			564
9.000% due 03/01/2021 ^(b)			2,000			1,350
9.000% due 09/15/2022 ^(b)			82			55
10.625% due 03/15/2023 ^(b)			251			169
11.250% due 03/01/2021 ^(b)			188			123
IHS Markit Ltd.
4.000% due 03/01/2026			2			2
Imperial Brands Finance PLC
3.750% due 07/21/2022			1,300			1,291
Incitec Pivot Finance LLC
6.000% due 12/10/2019			8			8
Intelsat Connect Finance S.A.
9.500% due 02/15/2023			60			52
Intelsat Jackson Holdings S.A.
5.500% due 08/01/2023			180			158
8.000% due 02/15/2024			126			130
8.500% due 10/15/2024			169			165
9.750% due 07/15/2025			42			42
Intelsat Luxembourg S.A.
7.750% due 06/01/2021 ^			164			150
Keurig Dr Pepper, Inc.
3.200% due 11/15/2021			706			694
Marriott Ownership Resorts, Inc.
6.500% due 09/15/2026			34			33
Mitchells & Butlers Finance PLC
6.013% due 12/15/2030	GBP		12			18
Molson Coors Brewing Co.
2.100% due 07/15/2021	$		1,000			965
NetApp, Inc.
3.300% due 09/29/2024			6			6
Netflix, Inc.
4.625% due 05/15/2029	EUR		100			113

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Newcrest Finance Pty. Ltd.
4.450% due 11/15/2021	$		1,350	$		1,367
Nokia Oyj
4.375% due 06/12/2027			14			13
Norwegian Air Shuttle ASA Pass-Through Trust
4.875% due 11/10/2029			395			388
ONEOK Partners LP
3.375% due 10/01/2022			11			11
Ortho-Clinical Diagnostics, Inc.
6.625% due 05/15/2022			111			100
Park Aerospace Holdings Ltd.
3.625% due 03/15/2021			36			35
4.500% due 03/15/2023			93			87
5.250% due 08/15/2022			60			58
5.500% due 02/15/2024			31			30
Penske Truck Leasing Co. LP
3.375% due 02/01/2022			930			920
Pernod Ricard S.A.
4.450% due 01/15/2022			1,440			1,470
Petroleos de Venezuela S.A.
5.375% due 04/12/2027 ^(b)			385			58
5.500% due 04/12/2037 ^(b)			382			59
6.000% due 05/16/2024 ^(b)			141			22
6.000% due 11/15/2026 ^(b)			63			9
9.750% due 05/17/2035 ^(b)			100			19
Petroleos Mexicanos
6.500% due 03/13/2027			60			57
6.750% due 09/21/2047			10			8
PetSmart, Inc.
5.875% due 06/01/2025			38			28
Radiate Holdco LLC
6.875% due 02/15/2023			30			27
Refinitiv U.S. Holdings, Inc.
4.500% due 05/15/2026	EUR		100			112
6.250% due 05/15/2026	$		50			48
Sands China Ltd.
5.125% due 08/08/2025			200			198
5.400% due 08/08/2028			200			194
Shelf Drilling Holdings Ltd.
8.250% due 02/15/2025			7			6
Sky Ltd.
3.125% due 11/26/2022			2			2
SoftBank Group Corp.
4.000% due 04/20/2023	EUR		300			355
Southern Co.
2.350% due 07/01/2021	$		1,200			1,167
Spirit Issuer PLC
6.582% due 03/28/2025	GBP		405			522
Sprint Spectrum Co. LLC
5.152% due 09/20/2029	$		400			394
Sunoco LP
4.875% due 01/15/2023			20			20
Syngenta Finance NV
3.698% due 04/24/2020			200			199
T-Mobile USA, Inc.
4.750% due 02/01/2028			8			7
Tech Data Corp.
3.700% due 02/15/2022			10			10
4.950% due 02/15/2027			12			11
Tenet Healthcare Corp.
4.625% due 07/15/2024			86			80
Teva Pharmaceutical Finance BV
3.650% due 11/10/2021			8			8
Teva Pharmaceutical Finance Netherlands BV
1.700% due 07/19/2019			8			8
3.250% due 04/15/2022	EUR		100			116
Textron, Inc.
3.168% (US0003M + 0.550%) due 11/10/2020 ~	$		110			109
Triumph Group, Inc.
4.875% due 04/01/2021			24			22
5.250% due 06/01/2022			12			11

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
United Technologies Corp.
3.279% (US0003M + 0.650%) due 08/16/2021 ~	$		30	$		30
3.650% due 08/16/2023			80			80
4.125% due 11/16/2028			74			74
Univision Communications, Inc.
5.125% due 05/15/2023			283			255
5.125% due 02/15/2025			538			473
UPCB Finance Ltd.
3.625% due 06/15/2029	EUR		100			109
VMware, Inc.
2.300% due 08/21/2020	$		26			25
2.950% due 08/21/2022			34			32
3.900% due 08/21/2027			20			18
VOC Escrow Ltd.
5.000% due 02/15/2028			22			20
Wabtec Corp.
3.838% (US0003M + 1.050%) due 09/15/2021 ~			43			43
Western Digital Corp.
4.750% due 02/15/2026			110			96
Wyndham Destinations, Inc.
3.900% due 03/01/2023			4			4
4.250% due 03/01/2022			2			2
5.400% due 04/01/2024			11			11
5.750% due 04/01/2027			47			43
Yara International ASA
4.750% due 06/01/2028			46			46
						35,339
UTILITIES 4.9%
AT&T, Inc.
3.386% (US0003M + 0.950%) due 07/15/2021 ~			197			196
3.956% (US0003M + 1.180%) due 06/12/2024 ~			72			70
4.900% due 08/15/2037			134			125
5.000% due 03/01/2021			3			3
CenturyLink, Inc.
5.625% due 04/01/2020			1,200			1,199
China Shenhua Overseas Capital Co. Ltd.
3.125% due 01/20/2020			600			597
Chugoku Electric Power Co., Inc.
2.701% due 03/16/2020			550			546
Enable Midstream Partners LP
4.950% due 05/15/2028			25			24
FirstEnergy Corp.
2.850% due 07/15/2022			1,400			1,366
Gazprom OAO Via Gaz Capital S.A.
4.950% due 07/19/2022			800			809
6.510% due 03/07/2022			500			523
9.250% due 04/23/2019			2,400			2,435
ITC Holdings Corp.
2.700% due 11/15/2022			14			14
Odebrecht Drilling Norbe Ltd.
6.350% due 12/01/2021			6			6
Odebrecht Offshore Drilling Finance Ltd.
6.720% due 12/01/2022			5			5
ONEOK, Inc.
4.250% due 02/01/2022			1,200			1,212
4.550% due 07/15/2028			34			34
5.200% due 07/15/2048			20			19
Pacific Gas & Electric Co.
2.450% due 08/15/2022			39			35
2.950% due 03/01/2026			22			18
3.250% due 09/15/2021			24			22
3.250% due 06/15/2023			4			4
3.500% due 10/01/2020			55			53
3.750% due 02/15/2024			2			2
3.750% due 08/15/2042			8			6
4.250% due 05/15/2021			16			15
4.450% due 04/15/2042			5			4
Petrobras Global Finance BV
5.999% due 01/27/2028			397			375

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 15

Schedule of Investments PIMCO Income Portfolio (Cont.)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
6.125% due 01/17/2022	$		394	$		405
6.250% due 12/14/2026	GBP		700			925
7.375% due 01/17/2027	$		330			340
8.750% due 05/23/2026			68			76
Public Service Enterprise Group, Inc.
2.000% due 11/15/2021			2			2
Southern California Edison Co.
3.650% due 03/01/2028			4			4
5.750% due 04/01/2035			4			4
6.000% due 01/15/2034			2			2
6.650% due 04/01/2029			12			13
Sprint Capital Corp.
6.900% due 05/01/2019			121			122
Sprint Communications, Inc.
7.000% due 08/15/2020			800			821
Sprint Corp.
7.250% due 09/15/2021			1,130			1,159
7.625% due 03/01/2026			43			43
Telstra Corp. Ltd.
4.800% due 10/12/2021			2			2
Transocean Phoenix Ltd.
7.750% due 10/15/2024			10			10
Transocean Proteus Ltd.
6.250% due 12/01/2024			2			2
Verizon Communications, Inc.
5.250% due 03/16/2037			39			41
						13,688
Total Corporate Bonds & Notes (Cost $108,029)						105,789
CONVERTIBLE BONDS & NOTES 0.0%
INDUSTRIALS 0.0%
Caesars Entertainment Corp.
5.000% due 10/01/2024			104			130
Total Convertible Bonds & Notes (Cost $195)						130
MUNICIPAL BONDS & NOTES 0.2%
ILLINOIS 0.2%
Illinois State General Obligation Bonds, (BABs), Series 2010
6.630% due 02/01/2035			40			43
6.725% due 04/01/2035			10			11
7.350% due 07/01/2035			10			11
Illinois State General Obligation Bonds, Series 2003
5.100% due 06/01/2033			355			339
						404
PUERTO RICO 0.0%
Commonwealth of Puerto Rico General Obligation Bonds, Series 2007
5.250% due 07/01/2037 ^(b)			15			8
Commonwealth of Puerto Rico General Obligation Bonds, Series 2008
5.125% due 07/01/2028 ^(b)			5			3
5.700% due 07/01/2023 ^(b)			25			13
Commonwealth of Puerto Rico General Obligation Bonds, Series 2009
5.750% due 07/01/2038 ^(b)			10			5
6.000% due 07/01/2039 ^(b)			5			3
Commonwealth of Puerto Rico General Obligation Bonds, Series 2011
5.375% due 07/01/2030 ^(b)			25			14
6.500% due 07/01/2040 ^(b)			5			3
Commonwealth of Puerto Rico General Obligation Bonds, Series 2012
5.000% due 07/01/2041 ^(b)			55			29
5.500% due 07/01/2039 ^(b)			75			40
						118
Total Municipal Bonds & Notes (Cost $475)						522

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
U.S. GOVERNMENT AGENCIES 14.9%
Fannie Mae
3.000% due 08/01/2027 - 09/01/2027	$		519	$		521
Fannie Mae, TBA
3.000% due 02/01/2034			1,000			997
3.500% due 01/01/2049 - 02/01/2049			8,700			8,698
4.000% due 01/01/2049 - 02/01/2049			19,700			20,075
Freddie Mac, TBA
3.000% due 01/01/2049			10,000			9,748
Ginnie Mae
2.914% due 04/20/2066 •			1,267			1,268
5.137% due 09/20/2066 ~			366			407
Total U.S. Government Agencies (Cost $41,293)						41,714
U.S. TREASURY OBLIGATIONS 28.6%
U.S. Treasury Bonds
2.875% due 11/15/2046			1,400			1,364
3.000% due 08/15/2048			10			10
U.S. Treasury Inflation Protected Securities (g)
0.750% due 07/15/2028			2,216			2,171
U.S. Treasury Notes
1.375% due 04/30/2021 (k)			2,800			2,731
1.750% due 11/30/2021 (m)			1,900			1,862
1.750% due 03/31/2022			700			685
1.750% due 05/15/2022 (o)			700			684
1.750% due 09/30/2022			1,400			1,363
1.750% due 05/15/2023			1,400			1,357
1.875% due 01/31/2022 (k)			11,200			11,003
1.875% due 02/28/2022 (k)			3,100			3,044
1.875% due 08/31/2022			1,400			1,370
1.875% due 08/31/2024 (k)			1,100			1,062
2.000% due 07/31/2022			900			886
2.000% due 05/31/2024			1,300			1,265
2.000% due 06/30/2024			2,300			2,237
2.125% due 12/31/2021 (k)			3,600			3,565
2.125% due 06/30/2022			2,400			2,372
2.125% due 02/29/2024			1,500			1,472
2.125% due 07/31/2024			1,100			1,076
2.125% due 09/30/2024 (k)			3,200			3,128
2.250% due 12/31/2023 (k)			7,630			7,535
2.250% due 01/31/2024 (o)			370			365
2.250% due 10/31/2024 (k)			6,600			6,492
2.250% due 11/15/2024 (k)			2,600			2,556
2.375% due 05/15/2027 (k)			556			545
2.500% due 05/15/2024 (k)			4,000			3,994
2.500% due 01/31/2025 (k)			13,800			13,752
2.750% due 02/15/2024 (o)			100			101
Total U.S. Treasury Obligations (Cost $80,896)						80,047
NON-AGENCY MORTGAGE-BACKED SECURITIES 7.6%
American Home Mortgage Investment Trust
7.100% due 06/25/2036 Ø			6,460			2,362
Banc of America Alternative Loan Trust
6.000% due 01/25/2035			196			196
Chase Mortgage Finance Trust
4.224% due 12/25/2035 ^~			1,892			1,837
Eurosail PLC
1.850% due 06/13/2045 •	GBP		2,199			2,738
Grifonas Finance PLC
0.014% due 08/28/2039 •	EUR		1,357			1,375
HarborView Mortgage Loan Trust
2.710% due 03/19/2036 ^•	$		95			88
Juno Eclipse Ltd.
0.000% due 11/20/2022 •	EUR		570			647
MASTR Adjustable Rate Mortgages Trust
3.056% due 09/25/2037 •	$		11,500			5,248
OBX Trust
3.356% due 04/25/2048 •			2,293			2,290
Ripon Mortgages PLC
1.689% due 08/20/2056 •	GBP		1,249			1,585

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
WaMu Mortgage Pass-Through Certificates Trust
3.500% due 03/25/2033 ~	$		99	$		100
Washington Mutual Mortgage Pass-Through Certificates Trust
3.007% due 10/25/2046 •			3,911			2,717
Wells Fargo Mortgage-Backed Securities Trust
4.869% due 01/25/2035 ~			10			11
Total Non-Agency Mortgage-Backed Securities (Cost $21,349)						21,194
ASSET-BACKED SECURITIES 25.5%
Aegis Asset-Backed Securities Trust
2.676% due 01/25/2037 •			5,866			4,620
ALESCO Preferred Funding Ltd.
3.304% due 12/23/2034 •			740			702
Ameriquest Mortgage Securities Trust
2.846% due 04/25/2036 •			2,400			2,361
Arbor Realty Commercial Real Estate Notes Ltd.
3.445% due 08/15/2027 •			1,400			1,396
Aspen Funding Ltd.
4.014% due 07/10/2037 •			328			327
Asset-Backed Funding Certificates Trust
2.646% due 11/25/2036 •			5,029			3,367
Citigroup Mortgage Loan Trust
2.666% due 12/25/2036 •			2,042			1,307
Citigroup Mortgage Loan Trust, Inc.
2.766% due 03/25/2037 •			33			30
Countrywide Asset-Backed Certificates
2.726% due 05/25/2037 •			2,800			2,663
2.726% due 06/25/2047 •			900			858
Countrywide Asset-Backed Certificates Trust
3.036% due 05/25/2036 •			9,800			9,222
EFS Volunteer LLC
3.340% due 10/25/2035 •			1,287			1,290
First Franklin Mortgage Loan Trust
2.626% due 12/25/2036 •			852			807
Flatiron CLO Ltd.
3.609% due 01/17/2026 •			1,014			1,013
Harley Marine Financing LLC
5.682% due 05/15/2043			98			70
Home Equity Mortgage Loan Asset-Backed Trust
2.806% due 03/25/2036 •			5,000			4,523
HSI Asset Securitization Corp. Trust
2.616% due 12/25/2036 •			1,234			448
2.646% due 01/25/2037 •			4,016			3,211
IXIS Real Estate Capital Trust
2.656% due 01/25/2037 •			4,316			2,113
JPMorgan Mortgage Acquisition Trust
2.756% due 07/25/2036 •			2,400			2,372
Legacy Mortgage Asset Trust
4.256% due 01/28/2070 •			3,961			4,035
LP Credit Card ABS Master Trust
3.830% due 08/20/2024 •			1,229			1,232
Merrill Lynch Mortgage Investors Trust
2.576% due 04/25/2047 •			6,866			4,059
Morgan Stanley ABS Capital, Inc. Trust
2.576% due 10/25/2036 •			2,805			1,758
2.586% due 11/25/2036 •			6,058			4,123
2.776% due 03/25/2036 •			1,948			1,911
Option One Mortgage Loan Trust
2.866% due 01/25/2036 •			5,000			4,438
Saxon Asset Securities Trust
4.256% due 12/25/2037 •			2,067			2,063
SoFi Consumer Loan Program Trust
3.200% due 08/25/2027			1,954			1,951
Symphony CLO Ltd.
3.716% due 07/14/2026 •			1,846			1,846
Trapeza CDO Ltd.
2.900% due 01/25/2035 •			1,162			1,103
Total Asset-Backed Securities (Cost $64,378)						71,219

16 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
SOVEREIGN ISSUES 4.7%
Argentina Government International Bond
2.260% due 12/31/2038 Ø	EUR		306	$		196
2.500% due 12/31/2038 Ø	$		6,476			3,573
3.375% due 01/15/2023	EUR		100			91
5.250% due 01/15/2028			500			413
5.625% due 01/26/2022	$		135			114
5.875% due 01/11/2028			300			217
7.820% due 12/31/2033	EUR		69			66
41.328% (BADLARPP) due 10/04/2022 ~	ARS		26			1
48.797% (BADLARPP + 3.250%) due 03/01/2020 ~			400			11
50.225% (BADLARPP + 2.000%) due 04/03/2022 ~(a)			24,770			634
50.950% (BADLARPP + 2.500%) due 03/11/2019 ~(a)			1,324			35
59.257% (ARLLMONP) due 06/21/2020 ~(a)			25,049			716
Autonomous Community of Catalonia
4.900% due 09/15/2021	EUR		100			123
Brazil Letras do Tesouro Nacional
0.000% due 04/01/2019 (e)	BRL		6,380			1,622
Emirate of Abu Dhabi Government International Bond
2.500% due 10/11/2022	$		300			292
3.125% due 10/11/2027			300			287
4.125% due 10/11/2047			300			288
Kazakhstan Government International Bond
1.550% due 11/09/2023	EUR		100			115
2.375% due 11/09/2028			100			114
Kuwait International Government Bond
2.750% due 03/20/2022	$		274			269
3.500% due 03/20/2027			900			897
Peru Government International Bond
5.940% due 02/12/2029	PEN		560			170
6.150% due 08/12/2032			700			212
6.350% due 08/12/2028			200			62
8.200% due 08/12/2026			210			73
Qatar Government International Bond
3.875% due 04/23/2023	$		200			203
5.103% due 04/23/2048			200			211
Republic of Greece Government International Bond
4.750% due 04/17/2019	EUR		288			334
Saudi Government International Bond
2.875% due 03/04/2023	$		200			193
4.500% due 10/26/2046			400			363
4.625% due 10/04/2047			400			367
5.000% due 04/17/2049			200			193

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Turkey Government International Bond
5.625% due 03/30/2021	$		100	$		100
7.250% due 12/23/2023			400			412
Venezuela Government International Bond
6.000% due 12/09/2020 ^(b)			122			28
7.000% due 03/31/2038 ^(b)			43			10
7.650% due 04/21/2025 ^(b)			105			24
8.250% due 10/13/2024 ^(b)			157			37
9.000% due 05/07/2023 ^(b)			46			10
9.250% due 09/15/2027 ^(b)			143			34
9.250% due 05/07/2028 ^(b)			83			19
11.750% due 10/21/2026 ^(b)			10			3
11.950% due 08/05/2031 ^(b)			300			72
Total Sovereign Issues (Cost $15,055)						13,204
		SHARES
COMMON STOCKS 0.1%
CONSUMER DISCRETIONARY 0.1%
Caesars Entertainment Corp. (c)			21,610			147
Total Common Stocks (Cost $273)						147
PREFERRED SECURITIES 0.0%
BANKING & FINANCE 0.0%
Nationwide Building Society
10.250% ~			250			45
Total Preferred Securities (Cost $51)						45
		PRINCIPAL AMOUNT (000S)
SHORT-TERM INSTRUMENTS 8.0%
CERTIFICATES OF DEPOSIT 0.2%
Barclays Bank PLC
2.890% (US0003M + 0.400%) due 10/25/2019 ~	$		476			476
COMMERCIAL PAPER 1.9%
HSBC Holdings PLC
2.141% due 01/10/2019	CAD		3,400			2,489
Royal Bank of Canada
2.115% due 01/10/2019			4,000			2,929
						5,418

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
REPURCHASE AGREEMENTS (j) 0.5%
				$		1,321
ARGENTINA TREASURY BILLS 0.1%
(2.268)% due 01/31/2019 - 06/28/2019 (d)(e)	ARS		7,602			222
GREECE TREASURY BILLS 0.2%
1.267% due 03/15/2019 (e)(f)	EUR		424			485
JAPAN TREASURY BILLS 5.1%
(0.213)% due 03/25/2019 (e)(f)	JPY		1,560,000			14,237
Total Short-Term Instruments (Cost $21,839)						22,159
Total Investments in Securities (Cost $363,323)						365,264
		SHARES
INVESTMENTS IN AFFILIATES 2.0%
SHORT-TERM INSTRUMENTS 2.0%
CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 2.0%
PIMCO Short-Term Floating NAV Portfolio III			561,461			5,549
Total Short-Term Instruments (Cost $5,549)						5,549
Total Investments in Affiliates (Cost $5,549)						5,549
Total Investments 132.7% (Cost $368,872)				$		370,813
Financial Derivative Instruments (l)(n) 0.0% (Cost or Premiums, net $(2,699))						66
Other Assets and Liabilities, net (32.7)%						(91,384	)
Net Assets 100.0%				$		279,495

NOTES TO SCHEDULE OF INVESTMENTS:

* A zero balance may reflect actual amounts rounding to less than one thousand.

^ Security is in default.

« Security valued using significant unobservable inputs (Level 3).

~ Variable or Floating rate security. Rate shown is the rate in effect as of period end. Certain variable rate securities are not based on a published reference rate and spread, rather are determined by the issuer or agent and are based on current market conditions. Reference rate is as of reset date, which may vary by security. These securities may not indicate a reference rate and/or spread in their description.

• Rate shown is the rate in effect as of period end. The rate may be based on a fixed rate, a capped rate or a floor rate and may convert to a variable or floating rate in the future. These securities do not indicate a reference rate and spread in their description.

Ø Coupon represents a rate which changes periodically based on a predetermined schedule or event. Rate shown is the rate in effect as of period end.

(a) Interest only security.

(b) Security is not accruing income as of the date of this report.

(c) Security did not produce income within the last twelve months.

(d) Coupon represents a weighted average yield to maturity.

(e) Zero coupon security.

(f) Coupon represents a yield to maturity.

(g) Principal amount of security is adjusted for inflation.

(h) Perpetual maturity; date shown, if applicable, represents next contractual call date.

(i) Contingent convertible security.

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 17

Schedule of Investments PIMCO Income Portfolio (Cont.)

BORROWINGS AND OTHER FINANCING TRANSACTIONS

(j)  REPURCHASE AGREEMENTS:

Counterparty	Lending Rate			Settlement Date		Maturity Date		Principal Amount		Collateralized By	Collateral (Received)			Repurchase Agreements, at Value		Repurchase Agreement Proceeds to  be Received(1)
BOS		2.500	%		12/28/2018		01/04/2019	$	1,321	U.S. Treasury Notes 2.875% due 10/31/2023	$	(1,328	)	$	1,321	$	1,321
Total Repurchase Agreements											$	(1,328	)	$	1,321	$	1,321

REVERSE REPURCHASE AGREEMENTS:

Counterparty	Borrowing Rate(2)			Settlement Date		Maturity Date		Amount Borrowed(2)			Payable for Reverse Repurchase Agreements
GRE		2.440	%		10/18/2018		01/18/2019	$	(4,922	)	$	(4,947	)
		2.540			11/13/2018		02/13/2019		(5,141	)		(5,159	)
		2.550			11/07/2018		02/07/2019		(19,300	)		(19,377	)
IND		2.570			11/20/2018		01/22/2019		(5,570	)		(5,586	)
SCX		2.850			12/18/2018		01/17/2019		(19,986	)		(20,010	)
Total Reverse Repurchase Agreements											$	(55,079	)

SHORT SALES:

Description	Coupon		Maturity Date		Principal Amount		Proceeds			Payable for Short Sales(3)
U.S. Government Agencies (0.3)%
Fannie Mae, TBA		3.000%		02/01/2049	$	1,000	$	(961	)	$	(975	)
U.S. Treasury Obligations (1.3)%
U.S. Treasury Notes		2.875		10/31/2023		1,300		(1,315	)		(1,328	)
U.S. Treasury Notes		2.875		08/15/2028		2,170		(2,196	)		(2,230	)
Total U.S. Treasury Obligations								(3,511	)		(3,558	)
Total Short Sales (1.6)%							$	(4,472	)	$	(4,533	)

BORROWINGS AND OTHER FINANCING TRANSACTIONS SUMMARY

The following is a summary by counterparty of the market value of Borrowings and Other Financing Transactions and collateral pledged/(received) as of December 31, 2018:

Counterparty	Repurchase Agreement Proceeds to  be Received(1)		Payable for Reverse Repurchase Agreements			Payable for Sale-Buyback Transactions		Payable for Short Sales(3)			Total Borrowings and Other Financing Transactions			Collateral Pledged/(Received)			Net Exposure(4)
Global/Master Repurchase Agreement
BOS	$	1,321	$	0		$	0	$	0		$	1,321		$	(1,328	)	$	(7	)
GRE		0		(29,483	)		0		0			(29,483	)		29,351			(132	)
IND		0		(5,586	)		0		0			(5,586	)		5,649			63
SCX		0		(20,010	)		0		0			(20,010	)		20,081			71
Master Securities Forward Transaction Agreement
BCY		0		0			0		(1,328	)		(1,328	)		0			(1,328	)
BPG		0		0			0		(2,230	)		(2,230	)		0			(2,230	)
Total Borrowings and Other Financing Transactions	$	1,321	$	(55,079	)	$	0	$	(3,558	)

CERTAIN TRANSFERS ACCOUNTED FOR AS SECURED BORROWINGS

Remaining Contractual Maturity of the Agreements

	Overnight and Continuous		Up to 30 days			31-90 days			Greater Than 90 days		Total
Reverse Repurchase Agreements
U.S. Treasury Obligations	$	0	$	(30,543	)	$	(24,536	)	$	0	$	(55,079	)
Total Borrowings	$	0	$	(30,543	)	$	(24,536	)	$	0	$	(55,079	)
Payable for reverse repurchase agreements											$	(55,079	)

18 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

(k) Securities with an aggregate market value of $55,630 have been pledged as collateral under the terms of the above master agreements as of December 31, 2018.

⁽¹⁾ Includes accrued interest.

⁽²⁾ The average amount of borrowings outstanding during the period ended December 31, 2018 was $(28,402) at a weighted average interest rate of 2.088%. Average borrowings may include sale-buyback transactions and reverse repurchase agreements, if held during the period.

⁽³⁾ Payable for short sales includes $30 of accrued interest.

⁽⁴⁾ Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from borrowings and other financing transactions can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information regarding master netting arrangements.

(l)   FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED

FUTURES CONTRACTS:

LONG FUTURES CONTRACTS

Description	Expiration Month		# of Contracts		Notional Amount		Unrealized Appreciation/ (Depreciation)		Variation Margin
									Asset		Liability
Australia Government 10-Year Bond March Futures		03/2019		21		1,962	$	22	$	9	$	0
U.S. Treasury 10-Year Note March Futures		03/2019		361		44,048		1,056		141		0
							$	1,078	$	150	$	0

SHORT FUTURES CONTRACTS

Description	Expiration Month		# of Contracts		Notional Amount			Unrealized Appreciation/ (Depreciation)		Variation Margin
										Asset		Liability
United Kingdom Long Gilt March Futures		03/2019		58		(9,106	)	$	22	$	10	$	(29	)
Total Futures Contracts								$	1,100	$	160	$	(29	)

SWAP AGREEMENTS:

CREDIT DEFAULT SWAPS ON CORPORATE ISSUES - SELL PROTECTION⁽¹⁾

Reference Entity	Fixed Receive Rate			Payment Frequency	Maturity Date		Implied Credit Spread at December 31, 2018(3)			Notional Amount(4)		Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)		Market Value(5)			Variation Margin
																				Asset		Liability
Deutsche Bank AG		1.000	%	Quarterly		06/20/2019		1.146	%	EUR	300	$	(1	)	$	1	$	0		$	0	$	0
Deutsche Bank AG		1.000		Quarterly		12/20/2019		1.450			100		(1	)		0		(1	)		0		0
												$	(2	)	$	1	$	(1	)	$	0	$	0

CREDIT DEFAULT SWAPS ON CREDIT INDICES - BUY PROTECTION⁽²⁾

Index/Tranches	Fixed (Pay) Rate	Payment Frequency	Maturity Date		Notional Amount(4)		Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)		Market Value(5)			Variation Margin
															Asset		Liability
CDX.HY-30 5-Year Index	(5.000)%	Quarterly		06/20/2023	$	1,760		$    (119	)	$	62	$	(57	)	$	0	$	(2	)
CDX.HY-31 5-Year Index	(5.000)	Quarterly		12/20/2023		5,800		(391	)		263		(128	)		0		(10	)
CDX.IG-30 5-Year Index	(1.000)	Quarterly		06/20/2023		10,570		(186	)		96		(90	)		0		(4	)
								$    (696	)	$	421	$	(275	)	$	0	$	(16	)

CREDIT DEFAULT SWAPS ON CREDIT INDICES - SELL PROTECTION⁽¹⁾

Index/Tranches	Fixed Receive Rate	Payment Frequency	Maturity Date		Notional Amount(4)		Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Market Value(5)			Variation Margin
																Asset		Liability
CDX.EM-28 5-Year Index	1.000%	Quarterly		12/20/2022	$	776	$	(30	)	$	11		$	(19	)	$	1	$	0
CDX.EM-30 5-Year Index	1.000	Quarterly		12/20/2023		3,900		(189	)		7			(182	)		2		0
CDX.IG-31 5-Year Index	1.000	Quarterly		12/20/2023		10,800		67			(3	)		64			4		0
							$	(152	)	$	15		$	(137	)	$	7	$	0

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 19

Schedule of Investments PIMCO Income Portfolio (Cont.)

INTEREST RATE SWAPS

Pay/Receive Floating Rate	Floating Rate Index	Fixed Rate	Payment Frequency	Maturity Date		Notional Amount		Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Market Value			Variation Margin
																	Asset		Liability
Pay	3-Month  USD-LIBOR	2.750%	Semi-Annual		12/19/2023	$	12,300	$	(245	)	$	340		$	95		$	24	$	0
Receive	3-Month  USD-LIBOR	2.250	Semi-Annual		06/20/2028		1,300		85			(36	)		49			0		(5	)
Receive	3-Month  USD-LIBOR	2.750	Semi-Annual		12/20/2047		3,800		(199	)		288			89			0		(22	)
Receive	3-Month  USD-LIBOR	3.000	Semi-Annual		12/19/2048		6,700		20			(211	)		(191	)		0		(40	)
Receive	3-Month  ZAR-JIBAR	7.250	Quarterly		09/19/2023	ZAR	22,200		(7	)		31			24			0		(2	)
Receive	3-Month  ZAR-JIBAR	8.000	Quarterly		03/15/2024		1,300		(3	)		2			(1	)		0		0
Receive	3-Month  ZAR-JIBAR	8.250	Quarterly		03/15/2024		4,800		(15	)		7			(8	)		0		(1	)
Pay	3-Month  ZAR-JIBAR	7.750	Quarterly		09/19/2028		21,600		0			(42	)		(42	)		3		0
Pay	6-Month AUD-BBR-BBSW	2.750	Semi-Annual		06/17/2026	AUD	13,870		293			(55	)		238			32		0
Receive	6-Month AUD-BBR-BBSW	3.000	Semi-Annual		03/21/2027		1,090		10			24			34			3		0
Receive(6)	6-Month  EUR-EURIBOR	1.000	Annual		03/20/2029	EUR	1,800		7			(37	)		(30	)		0		(3	)
Pay(6)	6-Month  EUR-EURIBOR	1.000	Annual		06/19/2029		700		(2	)		(6	)		(8	)		0		(1	)
Receive(6)	6-Month  GBP-LIBOR	1.500	Semi-Annual		03/20/2029	GBP	4,600		74			(105	)		(31	)		0		(22	)
Receive	6-Month  JPY-LIBOR	0.354	Semi-Annual		01/18/2028	JPY	90,000		0			(17	)		(17	)		0		0
Receive	6-Month  JPY-LIBOR	0.354	Semi-Annual		02/16/2028		50,000		0			(9	)		(9	)		0		0
Receive	6-Month  JPY-LIBOR	0.300	Semi-Annual		03/20/2028		310,000		21			(63	)		(42	)		0		(1	)
Receive(6)	6-Month  JPY-LIBOR	0.450	Semi-Annual		03/20/2029		5,356,000		(242	)		(1,022	)		(1,264	)		0		(25	)
Receive(6)	6-Month  JPY-LIBOR	0.415	Semi-Annual		03/25/2029		50,000		0			(10	)		(10	)		0		0
Receive(6)	6-Month  JPY-LIBOR	0.400	Semi-Annual		03/27/2029		90,000		0			(17	)		(17	)		0		0
Receive(6)	6-Month  JPY-LIBOR	0.450	Semi-Annual		03/29/2029		90,000		(3	)		(18	)		(21	)		0		0
Pay	28-Day  MXN-TIIE	5.095	Lunar		02/05/2021	MXN	25,500		(28	)		(63	)		(91	)		2		0
Pay	28-Day  MXN-TIIE	5.615	Lunar		05/21/2021		14,500		0			(50	)		(50	)		1		0
Pay	28-Day  MXN-TIIE	5.680	Lunar		05/28/2021		14,900		0			(50	)		(50	)		1		0
Pay	28-Day  MXN-TIIE	5.610	Lunar		07/07/2021		2,000		(5	)		(2	)		(7	)		0		0
Pay	28-Day  MXN-TIIE	5.900	Lunar		07/20/2021		19,600		2			(66	)		(64	)		2		0
Pay	28-Day  MXN-TIIE	6.750	Lunar		08/31/2021		4,300		(3	)		(7	)		(10	)		0		0
Pay	28-Day  MXN-TIIE	5.798	Lunar		09/06/2021		10,200		(33	)		(2	)		(35	)		1		0
Pay	28-Day  MXN-TIIE	7.350	Lunar		11/17/2021		1,200		0			(2	)		(2	)		0		0
Pay	28-Day  MXN-TIIE	7.388	Lunar		11/17/2021		900		0			(1	)		(1	)		0		0
Pay	28-Day  MXN-TIIE	7.199	Lunar		12/03/2021		1,200		0			(2	)		(2	)		0		0
Pay	28-Day  MXN-TIIE	7.538	Lunar		02/23/2022		4,400		0			(7	)		(7	)		1		0
Pay	28-Day  MXN-TIIE	5.850	Lunar		05/02/2022		1,900		1			(9	)		(8	)		0		0
Pay	28-Day  MXN-TIIE	7.875	Lunar		12/16/2022		1,800		0			(2	)		(2	)		0		0
Pay	28-Day  MXN-TIIE	7.865	Lunar		12/27/2022		3,400		0			(4	)		(4	)		1		0
Pay	28-Day  MXN-TIIE	7.880	Lunar		12/27/2022		42,200		19			(71	)		(52	)		6		0
Pay	28-Day  MXN-TIIE	7.640	Lunar		01/03/2023		1,000		0			(2	)		(2	)		0		0
Pay	28-Day  MXN-TIIE	7.745	Lunar		01/05/2023		1,700		0			(2	)		(2	)		0		0
Pay	28-Day  MXN-TIIE	7.610	Lunar		01/23/2023		9,500		(3	)		(13	)		(16	)		1		0
Pay	28-Day  MXN-TIIE	7.805	Lunar		02/06/2023		3,800		0			(5	)		(5	)		1		0
Pay	28-Day  MXN-TIIE	7.820	Lunar		02/06/2023		3,900		(1	)		(4	)		(5	)		1		0
Pay	28-Day  MXN-TIIE	7.700	Lunar		05/02/2023		2,500		(1	)		(3	)		(4	)		0		0
Pay	28-Day  MXN-TIIE	5.795	Lunar		06/02/2023		2,900		0			(15	)		(15	)		0		0
Pay	28-Day  MXN-TIIE	6.350	Lunar		09/01/2023		900		0			(4	)		(4	)		0		0
Pay	28-Day  MXN-TIIE	5.950	Lunar		01/30/2026		3,000		(18	)		(5	)		(23	)		1		0
Pay	28-Day  MXN-TIIE	6.080	Lunar		03/10/2026		12,400		(43	)		(47	)		(90	)		3		0
Pay	28-Day  MXN-TIIE	6.490	Lunar		09/08/2026		3,800		2			(27	)		(25	)		1		0
Pay	28-Day  MXN-TIIE	7.380	Lunar		11/04/2026		200		0			(1	)		(1	)		0		0
Pay	28-Day  MXN-TIIE	7.865	Lunar		02/02/2027		9,000		13			(37	)		(24	)		2		0
Pay	28-Day  MXN-TIIE	8.010	Lunar		02/04/2027		2,900		0			(6	)		(6	)		1		0
Pay	28-Day  MXN-TIIE	7.818	Lunar		02/17/2027		5,200		0			(15	)		(15	)		1		0
Pay	28-Day  MXN-TIIE	7.150	Lunar		06/11/2027		26,500		(3	)		(130	)		(133	)		7		0
Pay	28-Day  MXN-TIIE	7.200	Lunar		06/11/2027		2,900		1			(15	)		(14	)		1		0
Pay	28-Day  MXN-TIIE	7.370	Lunar		10/11/2027		7,300		0			(33	)		(33	)		2		0
Receive	28-Day  MXN-TIIE	7.984	Lunar		12/10/2027		3,300		0			8			8			0		(1	)
Receive	28-Day  MXN-TIIE	7.990	Lunar		12/21/2027		100		0			0			0			0		0
Receive	28-Day  MXN-TIIE	8.005	Lunar		12/21/2027		18,900		(10	)		58			48			0		(5	)
Receive	28-Day  MXN-TIIE	8.030	Lunar		01/31/2028		300		0			1			1			0		0
Receive	28-Day  MXN-TIIE	8.050	Lunar		01/31/2028		2,100		1			4			5			0		(1	)
Pay	28-Day  MXN-TIIE	7.480	Lunar		06/18/2037		1,500		0			(12	)		(12	)		1		0
Receive	28-Day  MXN-TIIE	7.380	Lunar		08/14/2037		400		2			1			3			0		0
Pay	28-Day  MXN-TIIE	7.360	Lunar		08/21/2037		1,500		0			(13	)		(13	)		1		0
Receive	28-Day  MXN-TIIE	8.103	Lunar		01/04/2038		3,100		3			13			16			0		(1	)
								$	(310	)	$	(1,598	)	$	(1,908	)	$	101	$	(130	)
Total Swap Agreements								$	(1,160	)	$	(1,161	)	$	(2,321	)	$	108	$	(146	)

20 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED SUMMARY

The following is a summary of the market value and variation margin of Exchange-Traded or Centrally Cleared Financial Derivative Instruments as of December 31, 2018:

	Financial Derivative Assets								Financial Derivative Liabilities
	Market Value		Variation Margin Asset				Total		Market Value		Variation Margin Liability						Total
	Purchased Options		Futures		Swap Agreements				Written Options		Futures			Swap Agreements
Total Exchange-Traded or Centrally Cleared	$	0	$	160	$	108	$	268	$	0	$	(29	)	$	(146	)	$	(175	)

(m) Securities with an aggregate market value of $428 and cash of $2,984 have been pledged as collateral for exchange-traded and centrally cleared financial derivative instruments as of December 31, 2018. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information regarding master netting arrangements.

⁽¹⁾ If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽²⁾ If the Portfolio is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽³⁾ Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate or sovereign issues as of period end serve as indicators of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

⁽⁴⁾ The maximum potential amount the Portfolio could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

⁽⁵⁾ The prices and resulting values for credit default swap agreements serve as indicators of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced indices’ credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

⁽⁶⁾ This instrument has a forward starting effective date. See Note 2, Securities Transactions and Investment Income, in the Notes to Financial Statements for further information.

(n)  FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER

FORWARD FOREIGN CURRENCY CONTRACTS:

Counterparty	Settlement Month		Currency to be Delivered		Currency to be Received		Unrealized Appreciation/ (Depreciation)
							Asset		Liability
BOA		01/2019	BRL	6,292	$	1,604	$	0	$	(20	)
		01/2019	EUR	13,935		15,909		0		(68	)
		01/2019	TRY	44		8		0		0
		01/2019	$	617	ARS	25,106		38		0
		01/2019		1,624	BRL	6,292		0		0
		01/2019		302	DKK	1,975		1		0
		01/2019		459	RUB	31,158		0		(13	)
		02/2019		1,602	BRL	6,292		18		0
		04/2019	DKK	1,975	$	304		0		(1	)
BPS		01/2019	ARS	2,068		53		0		(2	)
		01/2019	BRL	8,708		2,247		1		0
		01/2019	TRY	1,202		225		0		(1	)
		01/2019	$	180	ARS	7,124		8		0
		01/2019		2,243	BRL	8,708		13		(9	)
		02/2019	CAD	7,188	$	5,386		115		0
		02/2019	$	1,367	TRY	7,941		95		0
		03/2019		49	ARS	2,068		1		0
		03/2019		3,579	TRY	20,471		144		0
BRC		01/2019	JPY	434,600	$	3,851		0		(115	)
		01/2019	MXN	6,319		310		0		(11	)
		03/2019	JPY	1,560,000		13,862		0		(461	)

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 21

Schedule of Investments PIMCO Income Portfolio (Cont.)

Counterparty	Settlement Month		Currency to be Delivered		Currency to be Received		Unrealized Appreciation/ (Depreciation)
							Asset		Liability
CBK		01/2019	AUD	9,416	$	6,898	$	265	$	0
		01/2019	EUR	303		346		0		(2	)
		01/2019	GBP	582		740		0		(2	)
		01/2019	TRY	1,744		316		0		(11	)
		01/2019	$	515	ARS	20,560		21		0
		01/2019		5,245	MXN	100,835		0		(130	)
		02/2019	TRY	340	$	63		0		0
		02/2019	$	2,620	JPY	296,525		93		0
GLM		01/2019	BRL	6,292	$	1,624		0		0
		01/2019	DKK	1,985		311		7		0
		01/2019	EUR	216		247		0		0
		01/2019	GBP	9,394		12,013		35		0
		01/2019	JPY	63,000		559		0		(16	)
		01/2019	$	1,600	BRL	6,292		24		0
		01/2019		3,933	RUB	260,531		0		(204	)
		02/2019	CAD	185	$	140		4		0
		02/2019	NZD	4,044		2,748		31		0
		02/2019	TRY	6,188		1,137		0		(3	)
		04/2019	BRL	6,380		1,612		0		(23	)
		07/2019	$	26	ARS	1,236		0		0
JPM		01/2019	TRY	100	$	19		0		0
MSB		01/2019	BRL	7,492		1,933		1		0
		01/2019	$	1,916	BRL	7,492		18		(1	)
		02/2019	BRL	6,292	$	1,602		0		(18	)
MYI		01/2019	EUR	290		330		0		(3	)
		04/2019	$	222	DKK	1,435		0		0
NGF		04/2019	ARS	678	$	16		0		0
RBC		02/2019	TRY	398		71		0		(3	)
SCX		01/2019	BRL	16,200		4,854		674		0
		01/2019	TRY	2,280		426		0		(2	)
		01/2019	$	4,181	BRL	16,200		0		(1	)
		01/2019		434	TRY	2,877		105		0
TOR		01/2019		287	AUD	405		0		(2	)
Total Forward Foreign Currency Contracts							$	1,712	$	(1,122	)

WRITTEN OPTIONS:

CREDIT DEFAULT SWAPTIONS ON CREDIT INDICES

Counterparty	Description	Buy/Sell Protection	Exercise Rate			Expiration Date		Notional Amount		Premiums (Received)			Market Value
BOA	Put - OTC CDX.HY-31 5-Year Index	Sell		102.500	%		01/16/2019	$	400	$	(2	)	$	(4	)
	Put - OTC CDX.IG-31 5-Year Index	Sell		0.850			01/16/2019		800		(1	)		(2	)
	Put - OTC CDX.IG-31 5-Year Index	Sell		0.900			01/16/2019		2,800		(3	)		(5	)
	Put - OTC CDX.IG-31 5-Year Index	Sell		1.100			02/20/2019		400		0			(1	)
	Put - OTC CDX.IG-31 5-Year Index	Sell		1.200			03/20/2019		2,100		(2	)		(4	)
BPS	Put - OTC CDX.HY-31 5-Year Index	Sell		102.000			02/20/2019		500		(4	)		(8	)
	Put - OTC CDX.IG-31 5-Year Index	Sell		0.850			01/16/2019		2,250		(2	)		(6	)
	Put - OTC CDX.IG-31 5-Year Index	Sell		1.000			01/16/2019		700		(1	)		0
	Put - OTC CDX.IG-31 5-Year Index	Sell		1.000			02/20/2019		600		(1	)		(1	)
BRC	Put - OTC CDX.IG-31 5-Year Index	Sell		1.000			01/16/2019		700		(1	)		0
	Put - OTC CDX.IG-31 5-Year Index	Sell		1.050			02/20/2019		500		(1	)		(1	)
CBK	Put - OTC CDX.HY-31 5-Year Index	Sell		101.000			01/16/2019		300		(1	)		(1	)
	Put - OTC CDX.HY-31 5-Year Index	Sell		102.000			01/16/2019		500		(2	)		(4	)
	Put - OTC CDX.IG-31 5-Year Index	Sell		0.950			01/16/2019		700		(1	)		(1	)
	Put - OTC CDX.IG-31 5-Year Index	Sell		1.000			01/16/2019		3,800		(3	)		(2	)
	Put - OTC CDX.IG-31 5-Year Index	Sell		1.050			02/20/2019		500		(1	)		(1	)
	Put - OTC CDX.IG-31 5-Year Index	Sell		1.100			02/20/2019		300		0			0
	Put - OTC CDX.IG-31 5-Year Index	Sell		1.050			03/20/2019		600		(1	)		(2	)
	Put - OTC CDX.IG-31 5-Year Index	Sell		1.100			03/20/2019		400		(1	)		(1	)
GST	Put - OTC CDX.IG-31 5-Year Index	Sell		0.900			01/16/2019		400		(1	)		(1	)
	Put - OTC CDX.IG-31 5-Year Index	Sell		0.900			02/20/2019		2,800		(3	)		(10	)
	Put - OTC CDX.IG-31 5-Year Index	Sell		2.400			09/18/2019		700		(1	)		(1	)
	Put - OTC iTraxx Europe 30 5-Year Index	Sell		2.400			09/18/2019	EUR	700		(1	)		(1	)

22 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

Counterparty	Description	Buy/Sell Protection	Exercise Rate			Expiration Date		Notional Amount		Premiums (Received)			Market Value
MYC	Put - OTC CDX.HY-31 5-Year Index	Sell		102.000	%		01/16/2019	$	200	$	(1	)	$	(2	)
	Put - OTC CDX.IG-31 5-Year Index	Sell		1.100			02/20/2019		700		(1	)		(1	)
	Put - OTC CDX.IG-31 5-Year Index	Sell		1.400			04/17/2019		500		(1	)		(1	)
Total Written Options										$	(37	)	$	(61	)

SWAP AGREEMENTS:

CREDIT DEFAULT SWAPS ON CORPORATE AND SOVEREIGN ISSUES - SELL PROTECTION⁽¹⁾

Counterparty	Reference Entity	Fixed Receive Rate			Payment Frequency	Maturity Date		Implied Credit Spread at December 31, 2018(2)			Notional Amount(3)			Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Swap Agreements, at Value(4)
																				Asset		Liability
BOA	Brazil Government International Bond		1.000	%	Quarterly		06/20/2023		1.903	%		$	500	$	(31	)	$	13		$	0	$	(18	)
	Mexico Government International Bond		1.000		Quarterly		06/20/2022		1.208				100		(2	)		1			0		(1	)
	Royal Bank of Scotland Group PLC		1.000		Quarterly		12/20/2023		2.925			EUR	100		(10	)		0			0		(10	)
	South Africa Government International Bond		1.000		Quarterly		06/20/2023		2.113			$	600		(36	)		9			0		(27	)
BPS	Brazil Government International Bond		1.000		Quarterly		06/20/2022		1.609				100		(6	)		4			0		(2	)
	Brazil Government International Bond		1.000		Quarterly		12/20/2022		1.717				900		(40	)		17			0		(23	)
	Brazil Government International Bond		1.000		Quarterly		06/20/2023		1.903				100		(6	)		2			0		(4	)
	Petrobras Global Finance BV		1.000		Quarterly		12/20/2021		1.967				100		(15	)		12			0		(3	)
BRC	Brazil Government International Bond		1.000		Quarterly		06/20/2023		1.903				100		(6	)		2			0		(4	)
	Qatar Government International Bond		1.000		Quarterly		12/20/2022		0.661				200		1			2			3		0
	Russia Government International Bond		1.000		Quarterly		12/20/2021		1.212				550		(15	)		12			0		(3	)
CBK	Argentine Republic Government International Bond		5.000		Quarterly		06/20/2023		8.005				12		0			(1	)		0		(1	)
	Brazil Government International Bond		1.000		Quarterly		12/20/2022		1.717				3,000		(116	)		38			0		(78	)
	Colombia Government International Bond		1.000		Quarterly		12/20/2022		1.307				100		(1	)		0			0		(1	)
	Deutsche Bank AG		1.000		Quarterly		12/20/2023		3.978			EUR	100		(15	)		0			0		(15	)
	Mexico Government International Bond		1.000		Quarterly		12/20/2023		1.549			$	100		(2	)		(1	)		0		(3	)
GST	Brazil Government International Bond		1.000		Quarterly		06/20/2023		1.903				500		(23	)		5			0		(18	)
	Mexico Government International Bond		1.000		Quarterly		12/20/2023		1.549				500		(9	)		(3	)		0		(12	)
	Petrobras Global Finance BV		1.000		Quarterly		06/20/2021		1.795				460		(86	)		77			0		(9	)
	Petrobras Global Finance BV		1.000		Quarterly		12/20/2021		1.967				600		(94	)		78			0		(16	)
	Russia Government International Bond		1.000		Quarterly		12/20/2022		1.357				4,660		(102	)		42			0		(60	)
MYC	South Africa Government International Bond		1.000		Quarterly		12/20/2022		1.969				1,200		(25	)		(17	)		0		(42	)
NGF	South Africa Government International Bond		1.000		Quarterly		12/20/2023		2.227				300		(15	)		(1	)		0		(16	)
														$	(654	)	$	291		$	3	$	(366	)

CREDIT DEFAULT SWAPS ON CREDIT INDICES - SELL PROTECTION⁽¹⁾

Counterparty	Index/Tranches	Fixed Receive Rate			Payment Frequency	Maturity Date		Notional Amount(3)		Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Swap Agreements, at Value(4)
																Asset		Liability
GST	CMBX.NA.AAA.10 Index		0.500	%	Monthly		11/17/2059	$	11,700	$	(255	)	$	128		$	0	$	(127	)
	CMBX.NA.AAA.9 Index		0.500		Monthly		09/17/2058		11,500		(594	)		552			0		(42	)
SAL	CMBX.NA.AAA.10 Index		0.500		Monthly		11/17/2059		2,400		1			(27	)		0		(26	)
										$	(848	)	$	653		$	0	$	(195	)

TOTAL RETURN SWAPS ON INTEREST RATE INDICES

Counterparty	Pay/Receive(5)	Underlying Reference	# of Units		Financing Rate	Payment Frequency	Maturity Date	Notional Amount		Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)		Swap Agreements, at Value
															Asset		Liability
CBK	Receive	iBoxx USD Liquid High Yield Index		N/A	3-Month USD LIBOR	Maturity	06/20/2019	$	200	$	0		$	1	$	1	$	0
GST	Receive	iBoxx USD Liquid High Yield Index		N/A	3-Month USD LIBOR	Maturity	03/20/2019		200		0			1		1		0
	Receive	iBoxx USD Liquid High Yield Index		N/A	3-Month USD LIBOR	Maturity	06/20/2019		100		0			0		0		0
										$	0		$	2	$	2	$	0
Total Swap Agreements										$	(1,502	)	$	946	$	5	$	(561	)

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 23

Schedule of Investments PIMCO Income Portfolio (Cont.)

FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER SUMMARY

The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral pledged/(received) as of December 31, 2018:

	Financial Derivative Assets								Financial Derivative Liabilities
Counterparty	Forward Foreign Currency Contracts		Purchased Options		Swap Agreements		Total Over the Counter		Forward Foreign Currency Contracts			Written Options			Swap Agreements			Total Over the Counter			Net Market Value of OTC Derivatives			Collateral Pledged/ (Received)			Net Exposure(6)
BOA	$	57	$	0	$	0	$	57	$	(102	)	$	(16	)	$	(56	)	$	(174	)	$	(117	)	$	0		$	(117	)
BPS		377		0		0		377		(12	)		(15	)		(32	)		(59	)		318			(260	)		58
BRC		0		0		3		3		(587	)		(1	)		(7	)		(595	)		(592	)		267			(325	)
CBK		379		0		1		380		(145	)		(12	)		(98	)		(255	)		125			0			125
GLM		101		0		0		101		(246	)		0			0			(246	)		(145	)		0			(145	)
GST		0		0		1		1		0			(13	)		(284	)		(297	)		(296	)		291			(5	)
MSB		19		0		0		19		(19	)		0			0			(19	)		0			0			0
MYC		0		0		0		0		0			(4	)		(42	)		(46	)		(46	)		0			(46	)
MYI		0		0		0		0		(3	)		0			0			(3	)		(3	)		0			(3	)
NGF		0		0		0		0		0			0			(16	)		(16	)		(16	)		0			(16	)
RBC		0		0		0		0		(3	)		0			0			(3	)		(3	)		0			(3	)
SAL		0		0		0		0		0			0			(26	)		(26	)		(26	)		0			(26	)
SCX		779		0		0		779		(3	)		0			0			(3	)		776			(760	)		16
TOR		0		0		0		0		(2	)		0			0			(2	)		(2	)		0			(2	)
Total Over the Counter	$	1,712	$	0	$	5	$	1,717	$	(1,122	)	$	(61	)	$	(561	)	$	(1,744	)

(o) Securities with an aggregate market value of $557 have been pledged as collateral for financial derivative instruments as governed by International Swaps and Derivatives Association, Inc. master agreements as of December 31, 2018.

⁽¹⁾ If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽²⁾ Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate or sovereign issues as of period end serve as indicators of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

⁽³⁾ The maximum potential amount the Portfolio could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

⁽⁴⁾ The prices and resulting values for credit default swap agreements serve as indicators of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced indices’ credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

⁽⁵⁾ Receive represents that the Portfolio receives payments for any positive net return on the underlying reference. The Portfolio makes payments for any negative net return on such underlying reference. Pay represents that the Portfolio receives payments for any negative net return on the underlying reference. The Portfolio makes payments for any positive net return on such underlying reference.

⁽⁶⁾ Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information regarding master netting arrangements.

24 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

FAIR VALUE OF FINANCIAL DERIVATIVE INSTRUMENTS

The following is a summary of the fair valuation of the Portfolio’s derivative instruments categorized by risk exposure. See Note 7, Principal Risks, in the Notes to Financial Statements on risks of the Portfolio.

Fair Values of Financial Derivative Instruments on the Statement of Assets and Liabilities as of December 31, 2018:

	Derivatives not accounted for as hedging instruments
	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Exchange Contracts		Interest Rate Contracts		Total
Financial Derivative Instruments - Assets
Exchange-traded or centrally cleared
Futures	$	0	$	0	$	0	$	0	$	160	$	160
Swap Agreements		0		7		0		0		101		108
	$	0	$	7	$	0	$	0	$	261	$	268
Over the counter
Forward Foreign Currency Contracts	$	0	$	0	$	0	$	1,712	$	0	$	1,712
Swap Agreements		0		3		0		0		2		5
	$	0	$	3	$	0	$	1,712	$	2	$	1,717
	$	0	$	10	$	0	$	1,712	$	263	$	1,985
Financial Derivative Instruments - Liabilities
Exchange-traded or centrally cleared
Futures	$	0	$	0	$	0	$	0	$	29	$	29
Swap Agreements		0		16		0		0		130		146
	$	0	$	16	$	0	$	0	$	159	$	175
Over the counter
Forward Foreign Currency Contracts	$	0	$	0	$	0	$	1,122	$	0	$	1,122
Written Options		0		48		0		0		13		61
Swap Agreements		0		561		0		0		0		561
	$	0	$	609	$	0	$	1,122	$	13	$	1,744
	$	0	$	625	$	0	$	1,122	$	172	$	1,919

The effect of Financial Derivative Instruments on the Statement of Operations for the period ended December 31, 2018:

	Derivatives not accounted for as hedging instruments
	Commodity Contracts		Credit Contracts			Equity Contracts		Foreign Exchange Contracts		Interest Rate Contracts			Total
Net Realized Gain (Loss) on Financial Derivative Instruments
Exchange-traded or centrally cleared
Futures	$	0	$	0		$	0	$	0	$	(702	)	$	(702	)
Swap Agreements		0		(179	)		0		0		(599	)		(778	)
	$	0	$	(179	)	$	0	$	0	$	(1,301	)	$	(1,480	)
Over the counter
Forward Foreign Currency Contracts	$	0	$	0		$	0	$	2,028	$	0		$	2,028
Written Options		0		91			0		0		21			112
Swap Agreements		0		271			0		0		(18	)		253
	$	0	$	362		$	0	$	2,028	$	3		$	2,393
	$	0	$	183		$	0	$	2,028	$	(1,298	)	$	913
Net Change in Unrealized Appreciation (Depreciation) on Financial Derivative Instruments
Exchange-traded or centrally cleared
Futures	$	0	$	0		$	0	$	0	$	1,178		$	1,178
Swap Agreements		0		314			0		0		(1,097	)		(783	)
	$	0	$	314		$	0	$	0	$	81		$	395
Over the counter
Forward Foreign Currency Contracts	$	0	$	0		$	0	$	1,088	$	0		$	1,088
Written Options		0		(18	)		0		0		(6	)		(24	)
Swap Agreements		0		(229	)		0		0		15			(214	)
	$	0	$	(247	)	$	0	$	1,088	$	9		$	850
	$	0	$	67		$	0	$	1,088	$	90		$	1,245

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 25

Schedule of Investments PIMCO Income Portfolio (Cont.)

December 31, 2018

FAIR VALUE MEASUREMENTS

The following is a summary of the fair valuations according to the inputs used as of December 31, 2018 in valuing the Portfolio’s assets and liabilities:

Category and Subcategory	Level 1		Level 2		Level 3		Fair Value at 12/31/2018
Investments in Securities, at Value
Loan Participations and Assignments	$	0	$	8,461	$	633	$	9,094
Corporate Bonds & Notes
Banking & Finance		0		56,762		0		56,762
Industrials		0		35,339		0		35,339
Utilities		0		13,688		0		13,688
Convertible Bonds & Notes
Industrials		0		130		0		130
Municipal Bonds & Notes
Illinois		0		404		0		404
Puerto Rico		0		118		0		118
U.S. Government Agencies		0		41,714		0		41,714
U.S. Treasury Obligations		0		80,047		0		80,047
Non-Agency Mortgage-Backed Securities		0		21,194		0		21,194
Asset-Backed Securities		0		71,219		0		71,219
Sovereign Issues		0		13,204		0		13,204
Common Stocks
Consumer Discretionary		147		0		0		147
Preferred Securities
Banking & Finance		0		45		0		45
Short-Term Instruments
Certificates of Deposit		0		476		0		476
Commercial Paper		0		5,418		0		5,418
Repurchase Agreements		0		1,321		0		1,321
Argentina Treasury Bills		0		222		0		222
Greece Treasury Bills		0		485		0		485
Japan Treasury Bills		0		14,237		0		14,237
	$	147	$	364,484	$	633	$	365,264

Category and Subcategory	Level 1			Level 2			Level 3		Fair Value at 12/31/2018
Investments in Affiliates, at Value
Short-Term Instruments
Central Funds Used for Cash Management Purposes	$	5,549		$	0		$	0	$	5,549
Total Investments	$	5,696		$	364,484		$	633	$	370,813
Short Sales, at Value - Liabilities
U.S. Government Agencies	$	0		$	(975	)	$	0	$	(975	)
U.S. Treasury Obligations		0			(3,558	)		0		(3,558	)
	$	0		$	(4,533	)	$	0	$	(4,533	)
Financial Derivative Instruments - Assets
Exchange-traded or centrally cleared		160			108			0		268
Over the counter		0			1,717			0		1,717
	$	160		$	1,825		$	0	$	1,985
Financial Derivative Instruments - Liabilities
Exchange-traded or centrally cleared		(29	)		(146	)		0		(175	)
Over the counter		0			(1,744	)		0		(1,744	)
	$	(29	)	$	(1,890	)	$	0	$	(1,919	)
Total Financial Derivative Instruments	$	131		$	(65	)	$	0	$	66
Totals	$	5,827		$	359,886		$	633	$	366,346

There were no significant transfers into or out of Level 3 during the period ended December 31, 2018.

26 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

Notes to Financial Statements

December 31, 2018

1. ORGANIZATION

PIMCO Variable Insurance Trust (the “Trust”) is a Delaware statutory trust established under a trust instrument dated October 3, 1997. The Trust is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Trust is designed to be used as an investment vehicle by separate accounts of insurance companies that fund variable annuity contracts and variable life insurance policies and by qualified pension and retirement plans. Information presented in these financial statements pertains to the Institutional Class, Administrative Class and Advisor Class shares of the PIMCO Income Portfolio (the “Portfolio”) offered by the Trust. Pacific Investment Management Company LLC (“PIMCO”) serves as the investment adviser (the “Adviser”) for the Portfolio.

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Portfolio is treated as an investment company under the reporting requirements of U.S. GAAP. The functional and reporting currency for the Portfolio is the U.S. dollar. The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

(a) Securities Transactions and Investment Income  Securities transactions are recorded as of the trade date for financial reporting purposes. Securities purchased or sold on a when-issued or delayed-delivery basis may be settled beyond a standard settlement period for the security after the trade date. Realized gains (losses) from securities sold are recorded on the identified cost basis. Dividend income is recorded on the ex-dividend date, except certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Portfolio is informed of the ex-dividend date. Interest income, adjusted for the accretion of discounts and amortization of premiums, is recorded on the accrual basis from settlement date, with the exception of securities with a forward starting effective date, where interest income is recorded on the accrual basis from effective date. For convertible securities, premiums attributable to the conversion feature are not amortized. Estimated tax liabilities on certain foreign securities are recorded on an accrual basis and are reflected as components of interest income or net change in unrealized appreciation (depreciation) on investments on the Statement of

Operations, as appropriate. Tax liabilities realized as a result of such security sales are reflected as a component of net realized gain (loss) on investments on the Statement of Operations. Paydown gains (losses) on mortgage-related and other asset-backed securities, if any, are recorded as components of interest income on the Statement of Operations. Income or short-term capital gain distributions received from registered investment companies, if any, are recorded as dividend income. Long-term capital gain distributions received from registered investment companies, if any, are recorded as realized gains.

Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivable when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is probable.

(b) Foreign Currency Translation  The market values of foreign securities, currency holdings and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the current exchange rates each business day. Purchases and sales of securities and income and expense items denominated in foreign currencies, if any, are translated into U.S. dollars at the exchange rate in effect on the transaction date. The Portfolio does not separately report the effects of changes in foreign exchange rates from changes in market prices on securities held. Such changes are included in net realized gain (loss) and net change in unrealized appreciation (depreciation) from investments on the Statement of Operations. The Portfolio may invest in foreign currency-denominated securities and may engage in foreign currency transactions either on a spot (cash) basis at the rate prevailing in the currency exchange market at the time or through a forward foreign currency contract. Realized foreign exchange gains (losses) arising from sales of spot foreign currencies, currency gains (losses) realized between the trade and settlement dates on securities transactions and the difference between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid are included in net realized gain (loss) on foreign currency transactions on the Statement of Operations. Net unrealized foreign exchange gains (losses) arising from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period are included in net change in unrealized appreciation (depreciation) on foreign currency assets and liabilities on the Statement of Operations.

(c) Multi-Class Operations  Each class offered by the Trust has equal rights as to assets and voting privileges (except that shareholders of a class have exclusive voting rights regarding any matter relating solely to that class of shares). Income and non-class specific expenses are

ANNUAL REPORT DECEMBER 31, 2018 27

Notes to Financial Statements (Cont.)

allocated daily to each class on the basis of the relative net assets. Realized and unrealized capital gains (losses) are allocated daily based on the relative net assets of each class of the Portfolio. Class specific expenses, where applicable, currently include supervisory and administrative and distribution and servicing fees. Under certain circumstances, the per share net asset value (“NAV”) of a class of the Portfolio’s shares may be different from the per share NAV of another class of shares as a result of the different daily expense accruals applicable to each class of shares.

(d) Distributions to Shareholders  Distributions from net investment income, if any, are declared daily and distributed to shareholders monthly. Net realized capital gains earned by the Portfolio, if any, will be distributed no less frequently than once each year.

Income distributions and capital gain distributions are determined in accordance with income tax regulations which may differ from U.S. GAAP. Differences between tax regulations and U.S. GAAP may cause timing differences between income and capital gain recognition. Further, the character of investment income and capital gains may be different for certain transactions under the two methods of accounting. As a result, income distributions and capital gain distributions declared during a fiscal period may differ significantly from the net investment income (loss) and realized gains (losses) reported on the Portfolio’s annual financial statements presented under U.S. GAAP.

If the Portfolio estimates that a portion of its distribution may be comprised of amounts from sources other than net investment income in accordance with its policies and good accounting practices, the Portfolio will notify shareholders of the estimated composition of such distribution through a Section 19 Notice. For these purposes, the Portfolio estimates the source or sources from which a distribution is paid, to the close of the period as of which it is paid, in reference to its internal accounting records and related accounting practices. If, based on such accounting records and practices, it is estimated that a particular distribution does not include capital gains or paid-in surplus or other capital sources, a Section 19 Notice generally would not be issued. It is important to note that differences exist between the Portfolio’s daily internal accounting records and practices, the Portfolio’s financial statements presented in accordance with U.S. GAAP, and recordkeeping practices under income tax regulations. For instance, the Portfolio’s internal accounting records and practices may take into account, among other factors, tax-related characteristics of certain sources of distributions that differ from treatment under U.S. GAAP. Examples of such differences may include, among others, the treatment of paydowns on mortgage-backed securities purchased at a discount and periodic payments under interest rate swap contracts. Accordingly, among other consequences, it is possible that the Portfolio may not issue a Section 19 Notice in situations where the Portfolio’s

financial statements prepared later and in accordance with U.S. GAAP and/or the final tax character of those distributions might later report that the sources of those distributions included capital gains and/or a return of capital. Final determination of a distribution’s tax character will be provided to shareholders when such information is available.

Distributions classified as a tax basis return of capital, if any, are reflected on the Statements of Changes in Net Assets and have been recorded to paid in capital on the Statement of Assets and Liabilities. In addition, other amounts have been reclassified between distributable earnings (accumulated loss) and paid in capital on the Statement of Assets and Liabilities to more appropriately conform U.S. GAAP to tax characterizations of distributions.

(e) New Accounting Pronouncements  In August 2016, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”), ASU 2016-15, which amends Accounting Standards Codification (“ASC”) 230 to clarify guidance on the classification of certain cash receipts and cash payments in the Statement of Cash Flows. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In November 2016, the FASB issued ASU 2016-18 which amends ASC 230 to provide guidance on the classification and presentation of changes in restricted cash and restricted cash equivalents on the Statement of Cash Flows. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In March 2017, the FASB issued ASU 2017-08 which provides guidance related to the amortization period for certain purchased callable debt securities held at a premium. The ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In August 2018, the FASB issued ASU 2018-13 which modifies certain disclosure requirements for fair value measurements in ASC 820. The ASU is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. At this time, management has elected to early adopt the amendments that allow for removal of certain disclosure requirements. Management plans to adopt the amendments that require additional fair value measurement disclosures for annual periods beginning after December 15, 2019, and

28 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

interim periods within those annual periods. Management is currently evaluating the impact of these changes on the financial statements.

In August 2018, the U.S. Securities and Exchange Commission (“SEC”) adopted amendments to certain rules and forms for the purpose of disclosure update and simplification. The compliance date for these amendments is 30 days after date of publication in the Federal Register, which was on October 4, 2018. Management has adopted these amendments and the changes are incorporated throughout all periods presented in the financial statements.

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

(a) Investment Valuation Policies  The price of the Portfolio’s shares is based on the Portfolio’s NAV. The NAV of the Portfolio, or each of its share classes, as applicable, is determined by dividing the total value of portfolio investments and other assets, less any liabilities attributable to the Portfolio or class, by the total number of shares outstanding of the Portfolio or class.

On each day that the New York Stock Exchange (“NYSE”) is open, Portfolio shares are ordinarily valued as of the close of regular trading (“NYSE Close”). Information that becomes known to the Portfolio or its agents after the time as of which NAV has been calculated on a particular day will not generally be used to retroactively adjust the price of a security or the NAV determined earlier that day. The Portfolio reserves the right to change the time as of which its NAV is calculated if the Portfolio closes earlier, or as permitted by the SEC.

For purposes of calculating a NAV, portfolio securities and other assets for which market quotes are readily available are valued at market value. Market value is generally determined on the basis of official closing prices or the last reported sales prices, or if no sales are reported, based on quotes obtained from established market makers or prices (including evaluated prices) supplied by the Portfolio’s approved pricing services, quotation reporting systems and other third-party sources (together, “Pricing Services”). The Portfolio will normally use pricing data for domestic equity securities received shortly after the NYSE Close and does not normally take into account trading, clearances or settlements that take place after the NYSE Close. If market value pricing is used, a foreign (non-U.S.) equity security traded on a foreign exchange or on more than one exchange is typically valued using pricing information from the exchange considered by the Adviser to be the primary exchange. A foreign (non-U.S.) equity security will be valued as of the close of trading on the foreign exchange, or the NYSE Close, if the NYSE Close occurs before the end of trading on the foreign exchange. Domestic and foreign (non-U.S.) fixed income securities, non-exchange traded derivatives, and equity options are normally valued on the basis of quotes obtained from brokers and

dealers or Pricing Services using data reflecting the earlier closing of the principal markets for those securities. Prices obtained from Pricing Services may be based on, among other things, information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics. Certain fixed income securities purchased on a delayed-delivery basis are marked to market daily until settlement at the forward settlement date. Exchange-traded options, except equity options, futures and options on futures are valued at the settlement price determined by the relevant exchange. Swap agreements are valued on the basis of bid quotes obtained from brokers and dealers or market-based prices supplied by Pricing Services. The Portfolio’s investments in open-end management investment companies, other than exchange-traded funds (“ETFs”), are valued at the NAVs of such investments. Open-end management investment companies may include affiliated funds.

If a foreign (non-U.S.) equity security’s value has materially changed after the close of the security’s primary exchange or principal market but before the NYSE Close, the security may be valued at fair value based on procedures established and approved by the Board of Trustees of the Trust (the “Board”). Foreign (non-U.S.) equity securities that do not trade when the NYSE is open are also valued at fair value. With respect to foreign (non-U.S.) equity securities, the Portfolio may determine the fair value of investments based on information provided by Pricing Services and other third-party vendors, which may recommend fair value or adjustments with reference to other securities, indices or assets. In considering whether fair valuation is required and in determining fair values, the Portfolio may, among other things, consider significant events (which may be considered to include changes in the value of U.S. securities or securities indices) that occur after the close of the relevant market and before the NYSE Close. The Portfolio may utilize modeling tools provided by third-party vendors to determine fair values of foreign (non-U.S.) securities. For these purposes, any movement in the applicable reference index or instrument (“zero trigger”) between the earlier close of the applicable foreign market and the NYSE Close may be deemed to be a significant event, prompting the application of the pricing model (effectively resulting in daily fair valuations). Foreign exchanges may permit trading in foreign (non-U.S.) equity securities on days when the Trust is not open for business, which may result in the Portfolio’s portfolio investments being affected when shareholders are unable to buy or sell shares.

Senior secured floating rate loans for which an active secondary market exists to a reliable degree will be valued at the mean of the last available bid/ask prices in the market for such loans, as provided by a Pricing Service. Senior secured floating rate loans for which an active secondary market does not exist to a reliable degree will be valued at

ANNUAL REPORT DECEMBER 31, 2018 29

Notes to Financial Statements (Cont.)

fair value, which is intended to approximate market value. In valuing a senior secured floating rate loan at fair value, the factors considered may include, but are not limited to, the following: (a) the creditworthiness of the borrower and any intermediate participants, (b) the terms of the loan, (c) recent prices in the market for similar loans, if any, and (d) recent prices in the market for instruments of similar quality, rate, period until next interest rate reset and maturity.

Investments valued in currencies other than the U.S. dollar are converted to the U.S. dollar using exchange rates obtained from Pricing Services. As a result, the value of such investments and, in turn, the NAV of the Portfolio’s shares may be affected by changes in the value of currencies in relation to the U.S. dollar. The value of investments traded in markets outside the United States or denominated in currencies other than the U.S. dollar may be affected significantly on a day that the Trust is not open for business. As a result, to the extent that the Portfolio holds foreign (non-U.S.) investments, the value of those investments may change at times when shareholders are unable to buy or sell shares and the value of such investments will be reflected in the Portfolio’s next calculated NAV.

Investments for which market quotes or market based valuations are not readily available are valued at fair value as determined in good faith by the Board or persons acting at their direction. The Board has adopted methods for valuing securities and other assets in circumstances where market quotes are not readily available, and has delegated to the Adviser the responsibility for applying the fair valuation methods. In the event that market quotes or market based valuations are not readily available, and the security or asset cannot be valued pursuant to a Board approved valuation method, the value of the security or asset will be determined in good faith by the Board. Market quotes are considered not readily available in circumstances where there is an absence of current or reliable market-based data (e.g., trade information, bid/ask information, indicative market quotations (“Broker Quotes”), Pricing Services’ prices), including where events occur after the close of the relevant market, but prior to the NYSE Close, that materially affect the values of the Portfolio’s securities or assets. In addition, market quotes are considered not readily available when, due to extraordinary circumstances, the exchanges or markets on which the securities trade do not open for trading for the entire day and no other market prices are available. The Board has delegated, to the Adviser, the responsibility for monitoring significant events that may materially affect the values of the Portfolio’s securities or assets and for determining whether the value of the applicable securities or assets should be reevaluated in light of such significant events.

When the Portfolio uses fair valuation to determine the value of a portfolio security or other asset for purposes of calculating its NAV, such investments will not be priced on the basis of quotes from the primary market in which they are traded, but rather may be priced by

another method that the Board or persons acting at their direction believe reflects fair value. Fair valuation may require subjective determinations about the value of a security. While the Trust’s policy is intended to result in a calculation of the Portfolio’s NAV that fairly reflects security values as of the time of pricing, the Trust cannot ensure that fair values determined by the Board or persons acting at their direction would accurately reflect the price that the Portfolio could obtain for a security if it were to dispose of that security as of the time of pricing (for instance, in a forced or distressed sale). The prices used by the Portfolio may differ from the value that would be realized if the securities were sold. The Portfolio’s use of fair valuation may also help to deter “stale price arbitrage” as discussed under the “Frequent or Excessive Purchases, Exchanges and Redemptions” section in the Portfolio’s prospectus.

(b) Fair Value Hierarchy  U.S. GAAP describes fair value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into levels (Level 1, 2, or 3). The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Levels 1, 2, and 3 of the fair value hierarchy are defined as follows:

^∎  Level 1 — Quoted prices in active markets or exchanges for identical assets and liabilities.

^∎  Level 2 — Significant other observable inputs, which may include, but are not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market corroborated inputs.

^∎  Level 3 — Significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, which may include assumptions made by the Board or persons acting at their direction that are used in determining the fair value of investments.

In accordance with the requirements of U.S. GAAP, the amounts of transfers into and out of Level 3, if material, are disclosed in the Notes to Schedule of Investments for the Portfolio.

For fair valuations using significant unobservable inputs, U.S. GAAP requires a reconciliation of the beginning to ending balances for reported fair values that presents changes attributable to realized gain

30 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

(loss), unrealized appreciation (depreciation), purchases and sales, accrued discounts (premiums), and transfers into and out of the Level 3 category during the period. The end of period value is used for the transfers between Levels of the Portfolio’s assets and liabilities. Additionally, U.S. GAAP requires quantitative information regarding the significant unobservable inputs used in the determination of fair value of assets or liabilities categorized as Level 3 in the fair value hierarchy. In accordance with the requirements of U.S. GAAP, a fair value hierarchy, and if material, a Level 3 reconciliation and details of significant unobservable inputs, have been included in the Notes to Schedule of Investments for the Portfolio.

(c) Valuation Techniques and the Fair Value Hierarchy

Level 1 and Level 2 trading assets and trading liabilities, at fair value  The valuation methods (or “techniques”) and significant inputs used in determining the fair values of portfolio securities or other assets and liabilities categorized as Level 1 and Level 2 of the fair value hierarchy are as follows:

Fixed income securities including corporate, convertible and municipal bonds and notes, U.S. government agencies, U.S. treasury obligations, sovereign issues, bank loans, convertible preferred securities and non-U.S. bonds are normally valued on the basis of quotes obtained from brokers and dealers or Pricing Services that use broker-dealer quotations, reported trades or valuation estimates from their internal pricing models. The Pricing Services’ internal models use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar assets. Securities that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

Mortgage-related and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also normally valued by Pricing Services that use broker-dealer quotations, reported trades or valuation estimates from their internal pricing models. The pricing models for these securities usually consider tranche-level attributes, current market data, estimated cash flows and market-based yield spreads for each tranche, and incorporate deal collateral performance, as available. Mortgage-related and asset-backed securities that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

Common stocks, ETFs, exchange-traded notes and financial derivative instruments, such as futures contracts, rights and warrants, or options on futures that are traded on a national securities exchange, are stated at the last reported sale or settlement price on the day of valuation. To the extent these securities are actively traded and valuation adjustments are not applied, they are categorized as Level 1 of the fair value hierarchy.

Valuation adjustments may be applied to certain securities that are solely traded on a foreign exchange to account for the market movement between the close of the foreign market and the NYSE Close. These securities are valued using Pricing Services that consider the correlation of the trading patterns of the foreign security to the intraday trading in the U.S. markets for investments. Securities using these valuation adjustments are categorized as Level 2 of the fair value hierarchy. Preferred securities and other equities traded on inactive markets or valued by reference to similar instruments are also categorized as Level 2 of the fair value hierarchy.

Investments in registered open-end investment companies (other than ETFs) will be valued based upon the NAVs of such investments and are categorized as Level 1 of the fair value hierarchy. Investments in unregistered open-end investment companies will be calculated based upon the NAVs of such investments and are considered Level 1 provided that the NAVs are observable, calculated daily and are the value at which both purchases and sales will be conducted.

Equity exchange-traded options and over the counter financial derivative instruments, such as forward foreign currency contracts and options contracts derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors. These contracts are normally valued on the basis of quotes obtained from a quotation reporting system, established market makers or Pricing Services (normally determined as of the NYSE Close). Depending on the product and the terms of the transaction, financial derivative instruments can be valued by Pricing Services using a series of techniques, including simulation pricing models. The pricing models use inputs that are observed from actively quoted markets such as quoted prices, issuer details, indices, bid/ask spreads, interest rates, implied volatilities, yield curves, dividends and exchange rates. Financial derivative instruments that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

Centrally cleared swaps and over the counter swaps derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors. They are valued using a broker-dealer bid quotation or on market-based prices provided by Pricing Services (normally determined as of the NYSE close). Centrally cleared swaps and over the counter swaps can be valued by Pricing Services using a series of techniques, including simulation pricing models. The pricing models may use inputs that are observed from actively quoted markets such as the overnight index swap rate (“OIS”), London Interbank Offered Rate (“LIBOR”) forward rate, interest rates, yield curves and credit spreads. These securities are categorized as Level 2 of the fair value hierarchy.

ANNUAL REPORT DECEMBER 31, 2018 31

Notes to Financial Statements (Cont.)

Level 3 trading assets and trading liabilities, at fair value  When a fair valuation method is applied by the Adviser that uses significant unobservable inputs, investments will be priced by a method that the Board or persons acting at their direction believe reflects fair value and are categorized as Level 3 of the fair value hierarchy.

Short-term debt instruments (such as commercial paper) having a remaining maturity of 60 days or less may be valued at amortized cost, so long as the amortized cost value of such short-term debt instruments is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. These securities are categorized as Level 2 or Level 3 of the fair value hierarchy depending on the source of the base price.

4. SECURITIES AND OTHER INVESTMENTS

(a) Investments in Affiliates

The Portfolio may invest in the PIMCO Short Asset Portfolio and the PIMCO Short-Term Floating NAV Portfolio III (“Central Funds”) to the extent permitted by the Act and rules thereunder. The Central Funds are registered investment companies created for use solely by the series of the Trust and other series of registered investment companies advised by the Adviser, in connection with their cash management activities. The main investments of the Central Funds are money market and short maturity fixed income instruments. The Central Funds may incur expenses related to their investment activities, but do not pay Investment Advisory Fees or Supervisory and Administrative Fees to the Adviser. The Central Funds are considered to be affiliated with the Portfolio. The table below shows the Portfolio’s transactions in and earnings from investments in the affiliated Funds for the period ended December 31, 2018 (amounts in thousands^†):

Investment in PIMCO Short-Term Floating NAV Portfolio III

Market Value 12/31/2017		Purchases at Cost		Proceeds from Sales			Net Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)		Market Value 12/31/2018		Dividend Income(1)		Realized Net Capital Gain Distributions(1)
$	1,200	$	128,448	$	(124,100	)	$	1	$	0	$	5,549	$	49	$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽¹⁾  The tax characterization of distributions is determined in accordance with Federal income tax regulations and may contain a return of capital. The actual tax characterization of distributions received is determined at the end of the fiscal year of the affiliated fund. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

(b) Investments in Securities

The Portfolio may utilize the investments and strategies described below to the extent permitted by the Portfolio’s investment policies.

Inflation-Indexed Bonds  are fixed income securities whose principal value is periodically adjusted by the rate of inflation. The interest rate on these bonds is generally fixed at issuance at a rate lower than typical bonds. Over the life of an inflation-indexed bond, however, interest will be paid based on a principal value which is adjusted for inflation. Any increase or decrease in the principal amount of an inflation-indexed bond will be included as interest income on the Statement of Operations, even though investors do not receive their principal until maturity. Repayment of the original bond principal upon maturity (as adjusted for inflation) is guaranteed in the case of U.S. Treasury Inflation-Protected Securities (“TIPS”). For bonds that do not provide a similar guarantee, the adjusted principal value of the bond repaid at maturity may be less than the original principal.

Loans and Other Indebtedness, Loan Participations and Assignments  are direct debt instruments which are interests in amounts owed to lenders or lending syndicates by corporate, governmental, or other borrowers. The Portfolio’s investments in loans

may be in the form of participations in loans or assignments of all or a portion of loans from third parties or investments in or originations of loans by the Portfolio. A loan is often administered by a bank or other financial institution (the “agent”) that acts as agent for all holders. The agent administers the terms of the loan, as specified in the loan agreement. The Portfolio may invest in multiple series or tranches of a loan, which may have varying terms and carry different associated risks. When the Portfolio purchases assignments from agents it acquires direct rights against the borrowers of the loans. These loans may include participations in bridge loans, which are loans taken out by borrowers for a short period (typically less than one year) pending arrangement of more permanent financing through, for example, the issuance of bonds, frequently high yield bonds issued for the purpose of acquisitions.

The types of loans and related investments in which the Portfolio may invest include, among others, senior loans, subordinated loans (including second lien loans, B-Notes and mezzanine loans), whole loans, commercial real estate and other commercial loans and structured loans. The Portfolio may originate loans or acquire direct interests in loans through primary loan distributions and/or in private transactions. In the case of subordinated loans, there may be

32 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

significant indebtedness ranking ahead of the borrower’s obligation to the holder of such a loan, including in the event of the borrower’s insolvency. Mezzanine loans are typically secured by a pledge of an equity interest in the mortgage borrower that owns the real estate rather than an interest in a mortgage.

Investments in loans may include unfunded loan commitments, which are contractual obligations for funding. Unfunded loan commitments may include revolving credit facilities, which may obligate the Portfolio to supply additional cash to the borrower on demand. Unfunded loan commitments represent a future obligation in full, even though a percentage of the committed amount may not be utilized by the borrower. When investing in a loan participation, the Portfolio has the right to receive payments of principal, interest and any fees to which it is entitled only from the agent selling the loan agreement and only upon receipt of payments by the agent from the borrower. The Portfolio may receive a commitment fee based on the undrawn portion of the underlying line of credit portion of a loan. In certain circumstances, the Portfolio may receive a penalty fee upon the prepayment of a loan by a borrower. Fees earned or paid are recorded as a component of interest income or interest expense, respectively, on the Statement of Operations. Unfunded loan commitments are reflected as a liability on the Statement of Assets and Liabilities.

Mortgage-Related and Other Asset-Backed Securities  directly or indirectly represent a participation in, or are secured by and payable from, loans on real property. Mortgage-related securities are created from pools of residential or commercial mortgage loans, including mortgage loans made by savings and loan institutions, mortgage bankers, commercial banks and others. These securities provide a monthly payment which consists of both interest and principal. Interest may be determined by fixed or adjustable rates. The rate of prepayments on underlying mortgages will affect the price and volatility of a mortgage-related security, and may have the effect of shortening or extending the effective duration of the security relative to what was anticipated at the time of purchase. The timely payment of principal and interest of certain mortgage-related securities is guaranteed with the full faith and credit of the U.S. Government. Pools created and guaranteed by non-governmental issuers, including government-sponsored corporations, may be supported by various forms of insurance or guarantees, but there can be no assurance that private insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Many of the risks of investing in mortgage-related securities secured by commercial mortgage loans reflect the effects of local and other economic conditions on real estate markets, the ability of tenants to make lease payments, and the ability of a property to attract and retain tenants. These securities may be less liquid and may exhibit greater price volatility than other types of

mortgage-related or other asset-backed securities. Other asset-backed securities are created from many types of assets, including, but not limited to, auto loans, accounts receivable, such as credit card receivables and hospital account receivables, home equity loans, student loans, boat loans, mobile home loans, recreational vehicle loans, manufactured housing loans, aircraft leases, computer leases and syndicated bank loans.

Collateralized Debt Obligations  (“CDOs”) include Collateralized Bond Obligations (“CBOs”), Collateralized Loan Obligations (“CLOs”) and other similarly structured securities. CBOs and CLOs are types of asset-backed securities. A CBO is a trust which is backed by a diversified pool of high risk, below investment grade fixed income securities. A CLO is a trust typically collateralized by a pool of loans, which may include, among others, domestic and foreign senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated below investment grade or equivalent unrated loans. The risks of an investment in a CDO depend largely on the type of the collateral securities and the class of the CDO in which the Portfolio invests. In addition to the normal risks associated with fixed income securities discussed elsewhere in this report and the Portfolio’s prospectus and statement of additional information (e.g., prepayment risk, credit risk, liquidity risk, market risk, structural risk, legal risk and interest rate risk (which may be exacerbated if the interest rate payable on a structured financing changes based on multiples of changes in interest rates or inversely to changes in interest rates)), CBOs, CLOs and other CDOs carry additional risks including, but not limited to, (i) the possibility that distributions from collateral securities will not be adequate to make interest or other payments, (ii) the quality of the collateral may decline in value or default, (iii) the risk that the Portfolio may invest in CBOs, CLOs, or other CDOs that are subordinate to other classes, and (iv) the complex structure of the security may not be fully understood at the time of investment and may produce disputes with the issuer or unexpected investment results.

Collateralized Mortgage Obligations  (“CMOs”) are debt obligations of a legal entity that are collateralized by whole mortgage loans or private mortgage bonds and divided into classes. CMOs are structured into multiple classes, often referred to as “tranches”, with each class bearing a different stated maturity and entitled to a different schedule for payments of principal and interest, including prepayments. CMOs may be less liquid and may exhibit greater price volatility than other types of mortgage-related or asset-backed securities.

Stripped Mortgage-Backed Securities  (“SMBS”) are derivative multi-class mortgage securities. SMBS are usually structured with two classes that receive different proportions of the interest and principal distributions on a pool of mortgage assets. An SMBS will have one class that will receive all of the interest (the interest-only or “IO” class),

ANNUAL REPORT DECEMBER 31, 2018 33

Notes to Financial Statements (Cont.)

while the other class will receive the entire principal (the principal-only or “PO” class). Payments received for IOs are included in interest income on the Statement of Operations. Because no principal will be received at the maturity of an IO, adjustments are made to the cost of the security on a monthly basis until maturity. These adjustments are included in interest income on the Statement of Operations. Payments received for POs are treated as reductions to the cost and par value of the securities.

Perpetual Bonds  are fixed income securities with no maturity date but pay a coupon in perpetuity (with no specified ending or maturity date). Unlike typical fixed income securities, there is no obligation for perpetual bonds to repay principal. The coupon payments, however, are mandatory. While perpetual bonds have no maturity date, they may have a callable date in which the perpetuity is eliminated and the issuer may return the principal received on the specified call date. Additionally, a perpetual bond may have additional features, such as interest rate increases at periodic dates or an increase as of a predetermined point in the future.

Securities Issued by U.S. Government Agencies or Government-Sponsored Enterprises  are obligations of and, in certain cases, guaranteed by, the U.S. Government, its agencies or instrumentalities. Some U.S. Government securities, such as Treasury bills, notes and bonds, and securities guaranteed by the Government National Mortgage Association (“GNMA” or “Ginnie Mae”), are supported by the full faith and credit of the U.S. Government; others, such as those of the Federal Home Loan Banks, are supported by the right of the issuer to borrow from the U.S. Department of the Treasury (the “U.S. Treasury”); and others, such as those of the Federal National Mortgage Association (“FNMA” or “Fannie Mae”), are supported by the discretionary authority of the U.S. Government to purchase the agency’s obligations. U.S. Government securities may include zero coupon securities. Zero coupon securities do not distribute interest on a current basis and tend to be subject to a greater risk than interest-paying securities.

Government-related guarantors (i.e., not backed by the full faith and credit of the U.S. Government) include FNMA and the Federal Home Loan Mortgage Corporation (“FHLMC” or “Freddie Mac”). FNMA is a government-sponsored corporation. FNMA purchases conventional (i.e., not insured or guaranteed by any government agency) residential mortgages from a list of approved seller/servicers which include state and federally chartered savings and loan associations, mutual savings banks, commercial banks and credit unions and mortgage bankers. Pass-through securities issued by FNMA are guaranteed as to timely payment of principal and interest by FNMA, but are not backed by the full faith and credit of the U.S. Government. FHLMC issues Participation Certificates (“PCs”), which are pass-through securities, each

representing an undivided interest in a pool of residential mortgages. FHLMC guarantees the timely payment of interest and ultimate collection of principal, but PCs are not backed by the full faith and credit of the U.S. Government.

Roll-timing strategies can be used where the Portfolio seeks to extend the expiration or maturity of a position, such as a TBA security on an underlying asset, by closing out the position before expiration and opening a new position with respect to substantially the same underlying asset with a later expiration date. TBA securities purchased or sold are reflected on the Statement of Assets and Liabilities as an asset or liability, respectively.

When-Issued Transactions  are purchases or sales made on a when-issued basis. These transactions are made conditionally because a security, although authorized, has not yet been issued in the market. Transactions to purchase or sell securities on a when-issued basis involve a commitment by the Portfolio to purchase or sell these securities for a predetermined price or yield, with payment and delivery taking place beyond the customary settlement period. The Portfolio may sell when-issued securities before they are delivered, which may result in a realized gain (loss).

5. BORROWINGS AND OTHER FINANCING TRANSACTIONS

The Portfolio may enter into the borrowings and other financing transactions described below to the extent permitted by the Portfolio’s investment policies.

The following disclosures contain information on the Portfolio’s ability to lend or borrow cash or securities to the extent permitted under the Act, which may be viewed as borrowing or financing transactions by the Portfolio. The location of these instruments in the Portfolio’s financial statements is described below.

(a) Repurchase Agreements  Under the terms of a typical repurchase agreement, the Portfolio purchases an underlying debt obligation (collateral) subject to an obligation of the seller to repurchase, and the Portfolio to resell, the obligation at an agreed-upon price and time. In an open maturity repurchase agreement, there is no pre-determined repurchase date and the agreement can be terminated by the Portfolio or counterparty at any time. The underlying securities for all repurchase agreements are held by the Portfolio’s custodian or designated subcustodians under tri-party repurchase agreements and in certain instances will remain in custody with the counterparty. The market value of the collateral must be equal to or exceed the total amount of the repurchase obligations, including interest. Repurchase agreements, if any, including accrued interest, are included on the Statement of Assets and Liabilities. Interest earned is recorded as a component of

34 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

interest income on the Statement of Operations. In periods of increased demand for collateral, the Portfolio may pay a fee for the receipt of collateral, which may result in interest expense to the Portfolio.

(b) Reverse Repurchase Agreements  In a reverse repurchase agreement, the Portfolio delivers a security in exchange for cash to a financial institution, the counterparty, with a simultaneous agreement to repurchase the same or substantially the same security at an agreed upon price and date. In an open maturity reverse repurchase agreement, there is no pre-determined repurchase date and the agreement can be terminated by the Portfolio or counterparty at any time. The Portfolio is entitled to receive principal and interest payments, if any, made on the security delivered to the counterparty during the term of the agreement. Cash received in exchange for securities delivered plus accrued interest payments to be made by the Portfolio to counterparties are reflected as a liability on the Statement of Assets and Liabilities. Interest payments made by the Portfolio to counterparties are recorded as a component of interest expense on the Statement of Operations. In periods of increased demand for the security, the Portfolio may receive a fee for use of the security by the counterparty, which may result in interest income to the Portfolio. The Portfolio will segregate assets determined to be liquid by the Adviser or will otherwise cover its obligations under reverse repurchase agreements.

(c) Sale-Buybacks  A sale-buyback financing transaction consists of a sale of a security by the Portfolio to a financial institution, the counterparty, with a simultaneous agreement to repurchase the same or substantially the same security at an agreed-upon price and date. The Portfolio is not entitled to receive principal and interest payments, if any, made on the security sold to the counterparty during the term of the agreement. The agreed-upon proceeds for securities to be repurchased by the Portfolio are reflected as a liability on the Statement of Assets and Liabilities. The Portfolio will recognize net income represented by the price differential between the price received for the transferred security and the agreed-upon repurchase price. This is commonly referred to as the ‘price drop’. A price drop consists of (i) the foregone interest and inflationary income adjustments, if any, the Portfolio would have otherwise received had the security not been sold and (ii) the negotiated financing terms between the Portfolio and counterparty. Foregone interest and inflationary income adjustments, if any, are recorded as components of interest income on the Statement of Operations. Interest payments based upon negotiated financing terms made by the Portfolio to counterparties are recorded as a component of interest expense on the Statement of Operations. In periods of increased demand for the security, the Portfolio may receive a fee for use of the security by the counterparty, which may result in interest income to the Portfolio. The Portfolio will segregate assets determined to be liquid by the Adviser or will otherwise cover its obligations under sale-buyback transactions.

(d) Short Sales  Short sales are transactions in which the Portfolio sells a security that it may not own. The Portfolio may make short sales of securities to (i) offset potential declines in long positions in similar securities, (ii) to increase the flexibility of the Portfolio, (iii) for investment return, (iv) as part of a risk arbitrage strategy, and (v) as part of its overall portfolio management strategies involving the use of derivative instruments. When the Portfolio engages in a short sale, it may borrow the security sold short and deliver it to the counterparty. The Portfolio will ordinarily have to pay a fee or premium to borrow a security and be obligated to repay the lender of the security any dividend or interest that accrues on the security during the period of the loan. Securities sold in short sale transactions and the dividend or interest payable on such securities, if any, are reflected as payable for short sales on the Statement of Assets and Liabilities. Short sales expose the Portfolio to the risk that it will be required to cover its short position at a time when the security or other asset has appreciated in value, thus resulting in losses to the Portfolio. A short sale is “against the box” if the Portfolio holds in its portfolio or has the right to acquire the security sold short, or securities identical to the security sold short, at no additional cost. The Portfolio will be subject to additional risks to the extent that it engages in short sales that are not “against the box.” The Portfolio’s loss on a short sale could theoretically be unlimited in cases where the Portfolio is unable, for whatever reason, to close out its short position.

6. FINANCIAL DERIVATIVE INSTRUMENTS

The Portfolio may enter into the financial derivative instruments described below to the extent permitted by the Portfolio’s investment policies.

The following disclosures contain information on how and why the Portfolio uses financial derivative instruments, and how financial derivative instruments affect the Portfolio’s financial position, results of operations and cash flows. The location and fair value amounts of these instruments on the Statement of Assets and Liabilities and the net realized gain (loss) and net change in unrealized appreciation (depreciation) on the Statement of Operations, each categorized by type of financial derivative contract and related risk exposure, are included in a table in the Notes to Schedule of Investments. The financial derivative instruments outstanding as of period end and the amounts of net realized gain (loss) and net change in unrealized appreciation (depreciation) on financial derivative instruments during the period, as disclosed in the Notes to Schedule of Investments, serve as indicators of the volume of financial derivative activity for the Portfolio.

(a) Forward Foreign Currency Contracts  may be engaged, in connection with settling planned purchases or sales of securities, to hedge the currency exposure associated with some or all of the

ANNUAL REPORT DECEMBER 31, 2018 35

Notes to Financial Statements (Cont.)

Portfolio’s securities or as part of an investment strategy. A forward foreign currency contract is an agreement between two parties to buy and sell a currency at a set price on a future date. The market value of a forward foreign currency contract fluctuates with changes in foreign currency exchange rates. Forward foreign currency contracts are marked to market daily, and the change in value is recorded by the Portfolio as an unrealized gain (loss). Realized gains (losses) are equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed and are recorded upon delivery or receipt of the currency. These contracts may involve market risk in excess of the unrealized gain (loss) reflected on the Statement of Assets and Liabilities. In addition, the Portfolio could be exposed to risk if the counterparties are unable to meet the terms of the contracts or if the value of the currency changes unfavorably to the U.S. dollar. To mitigate such risk, cash or securities may be exchanged as collateral pursuant to the terms of the underlying contracts.

(b) Futures Contracts  are agreements to buy or sell a security or other asset for a set price on a future date. The Portfolio may use futures contracts to manage its exposure to the securities markets or to movements in interest rates and currency values. The primary risks associated with the use of futures contracts are the imperfect correlation between the change in market value of the securities held by the Portfolio and the prices of futures contracts and the possibility of an illiquid market. Futures contracts are valued based upon their quoted daily settlement prices. Upon entering into a futures contract, the Portfolio is required to deposit with its futures broker an amount of cash, U.S. Government and Agency Obligations, or select sovereign debt, in accordance with the initial margin requirements of the broker or exchange. Futures contracts are marked to market daily and based on such movements in the price of the contracts, an appropriate payable or receivable for the change in value may be posted or collected by the Portfolio (“Futures Variation Margin”). Gains (losses) are recognized but not considered realized until the contracts expire or close. Futures contracts involve, to varying degrees, risk of loss in excess of the Futures Variation Margin included within exchange traded or centrally cleared financial derivative instruments on the Statement of Assets and Liabilities.

(c) Options Contracts  may be written or purchased to enhance returns or to hedge an existing position or future investment. The Portfolio may write call and put options on securities and financial derivative instruments it owns or in which it may invest. Writing put options tends to increase the Portfolio’s exposure to the underlying instrument. Writing call options tends to decrease the Portfolio’s exposure to the underlying instrument. When the Portfolio writes a call or put, an amount equal to the premium received is recorded and subsequently marked to market to reflect the current value of the option written.

These amounts are included on the Statement of Assets and Liabilities. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options which are exercised or closed are added to the proceeds or offset against amounts paid on the underlying futures, swap, security or currency transaction to determine the realized gain (loss). Certain options may be written with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. The Portfolio as a writer of an option has no control over whether the underlying instrument may be sold (“call”) or purchased (“put”) and as a result bears the market risk of an unfavorable change in the price of the instrument underlying the written option. There is the risk the Portfolio may not be able to enter into a closing transaction because of an illiquid market.

Purchasing call options tends to increase the Portfolio’s exposure to the underlying instrument. Purchasing put options tends to decrease the Portfolio’s exposure to the underlying instrument. The Portfolio pays a premium which is included as an asset on the Statement of Assets and Liabilities and subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options which expire are treated as realized losses. Certain options may be purchased with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. The risk associated with purchasing put and call options is limited to the premium paid. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the underlying investment transaction to determine the realized gain (loss) when the underlying transaction is executed.

Credit Default Swaptions  may be written or purchased to hedge exposure to the credit risk of an investment without making a commitment to the underlying instrument. A credit default swaption is an option to sell or buy credit protection on a specific reference by entering into a pre-defined swap agreement by some specified date in the future.

Interest Rate Swaptions  may be written or purchased to enter into a pre-defined swap agreement or to shorten, extend, cancel or otherwise modify an existing swap agreement, by some specified date in the future. The writer of the swaption becomes the counterparty to the swap if the buyer exercises. The interest rate swaption agreement will specify whether the buyer of the swaption will be a fixed-rate receiver or a fixed-rate payer upon exercise.

Options on Securities  may be written or purchased to enhance returns or to hedge an existing position or future investment. An option on a security uses a specified security as the underlying instrument for the option contract.

36 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

(d) Swap Agreements  are bilaterally negotiated agreements between the Portfolio and a counterparty to exchange or swap investment cash flows, assets, foreign currencies or market-linked returns at specified, future intervals. Swap agreements may be privately negotiated in the over the counter market (“OTC swaps”) or may be cleared through a third party, known as a central counterparty or derivatives clearing organization (“Centrally Cleared Swaps”). The Portfolio may enter into asset, credit default, cross-currency, interest rate, total return, variance and other forms of swap agreements to manage its exposure to credit, currency, interest rate, commodity, equity and inflation risk. In connection with these agreements, securities or cash may be identified as collateral or margin in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default or bankruptcy/insolvency.

Centrally Cleared Swaps are marked to market daily based upon valuations as determined from the underlying contract or in accordance with the requirements of the central counterparty or derivatives clearing organization. Changes in market value, if any, are reflected as a component of net change in unrealized appreciation (depreciation) on the Statement of Operations. Daily changes in valuation of centrally cleared swaps (“Swap Variation Margin”), if any, are disclosed within centrally cleared financial derivative instruments on the Statement of Assets and Liabilities. Centrally Cleared and OTC swap payments received or paid at the beginning of the measurement period are included on the Statement of Assets and Liabilities and represent premiums paid or received upon entering into the swap agreement to compensate for differences between the stated terms of the swap agreement and prevailing market conditions (credit spreads, currency exchange rates, interest rates, and other relevant factors). Upfront premiums received (paid) are initially recorded as liabilities (assets) and subsequently marked to market to reflect the current value of the swap. These upfront premiums are recorded as realized gain (loss) on the Statement of Operations upon termination or maturity of the swap. A liquidation payment received or made at the termination of the swap is recorded as realized gain (loss) on the Statement of Operations. Net periodic payments received or paid by the Portfolio are included as part of realized gain (loss) on the Statement of Operations.

For purposes of applying certain of the Portfolio’s investment policies and restrictions, swap agreements, like other derivative instruments, may be valued by the Portfolio at market value, notional value or full exposure value. In the case of a credit default swap, in applying certain of the Portfolio’s investment policies and restrictions, the Portfolio will value the credit default swap at its notional value or its full exposure value (i.e., the sum of the notional amount for the contract plus the market value), but may value the credit default swap at market value for purposes of applying certain of the Portfolio’s other investment

policies and restrictions. For example, the Portfolio may value credit default swaps at full exposure value for purposes of the Portfolio’s credit quality guidelines (if any) because such value in general better reflects the Portfolio’s actual economic exposure during the term of the credit default swap agreement. As a result, the Portfolio may, at times, have notional exposure to an asset class (before netting) that is greater or lesser than the stated limit or restriction noted in the Portfolio’s prospectus. In this context, both the notional amount and the market value may be positive or negative depending on whether the Portfolio is selling or buying protection through the credit default swap. The manner in which certain securities or other instruments are valued by the Portfolio for purposes of applying investment policies and restrictions may differ from the manner in which those investments are valued by other types of investors.

Entering into swap agreements involves, to varying degrees, elements of interest, credit, market and documentation risk in excess of the amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of contractual terms in the agreements and that there may be unfavorable changes in interest rates or the values of the asset upon which the swap is based.

The Portfolio’s maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from the counterparty over the contract’s remaining life, to the extent that amount is positive. The risk may be mitigated by having a master netting arrangement between the Portfolio and the counterparty and by the posting of collateral to the Portfolio to cover the Portfolio’s exposure to the counterparty.

To the extent the Portfolio has a policy to limit the net amount owed to or to be received from a single counterparty under existing swap agreements, such limitation only applies to counterparties to OTC swaps and does not apply to centrally cleared swaps where the counterparty is a central counterparty or derivatives clearing organization.

Credit Default Swap Agreements  on corporate, loan, sovereign, U.S. municipal or U.S. Treasury issues are entered into to provide a measure of protection against defaults of the issuers (i.e., to reduce risk where the Portfolio owns or has exposure to the referenced obligation) or to take an active long or short position with respect to the likelihood of a particular issuer’s default. Credit default swap agreements involve one party making a stream of payments (referred to as the buyer of protection) to another party (the seller of protection) in exchange for the right to receive a specified return in the event that the referenced entity, obligation or index, as specified in the swap agreement, undergoes a certain credit event. As a seller of protection on credit

ANNUAL REPORT DECEMBER 31, 2018 37

Notes to Financial Statements (Cont.)

default swap agreements, the Portfolio will generally receive from the buyer of protection a fixed rate of income throughout the term of the swap provided that there is no credit event. As the seller, the Portfolio would effectively add leverage to its portfolio because, in addition to its total net assets, the Portfolio would be subject to investment exposure on the notional amount of the swap.

If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. If the Portfolio is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. Recovery values are estimated by market makers considering either industry standard recovery rates or entity specific factors and considerations until a credit event occurs. If a credit event has occurred, the recovery value is determined by a facilitated auction whereby a minimum number of allowable broker bids, together with a specified valuation method, are used to calculate the settlement value. The ability to deliver other obligations may result in a cheapest-to-deliver option (the buyer of protection’s right to choose the deliverable obligation with the lowest value following a credit event).

Credit default swap agreements on credit indices involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising the credit index. A credit index is a basket of credit instruments or exposures designed to be representative of some part of the credit market as a whole. These indices are made up of reference credits that are judged by a poll of dealers to be the most liquid entities in the credit default swap market based on the sector of the index. Components of the indices may include, but are not limited to, investment grade securities, high yield securities, asset-backed securities, emerging markets, and/or various credit ratings within each sector. Credit indices are traded using credit default swaps with standardized terms including a fixed spread and standard maturity

dates. An index credit default swap references all the names in the index, and if there is a default, the credit event is settled based on that name’s weight in the index. The composition of the indices changes periodically, usually every six months, and for most indices, each name has an equal weight in the index. The Portfolio may use credit default swaps on credit indices to hedge a portfolio of credit default swaps or bonds, which is less expensive than it would be to buy many credit default swaps to achieve a similar effect. Credit default swaps on indices are instruments for protecting investors owning bonds against default, and traders use them to speculate on changes in credit quality.

Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate, loan, sovereign, U.S. municipal or U.S. Treasury issues as of period end, if any, are disclosed in the Notes to Schedule of Investments. They serve as an indicator of the current status of payment/performance risk and represent the likelihood or risk of default for the reference entity. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. For credit default swap agreements on asset-backed securities and credit indices, the quoted market prices and resulting values serve as the indicator of the current status of the payment/performance risk. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

The maximum potential amount of future payments (undiscounted) that the Portfolio as a seller of protection could be required to make under a credit default swap agreement equals the notional amount of the agreement. Notional amounts of each individual credit default swap agreement outstanding as of period end for which the Portfolio is the seller of protection are disclosed in the Notes to Schedule of Investments. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Portfolio for the same referenced entity or entities.

Interest Rate Swap Agreements  may be entered into to help hedge against interest rate risk exposure and to maintain the Portfolio’s ability to generate income at prevailing market rates. The value of the fixed rate bonds that the Portfolio holds may decrease if interest rates rise.

38 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, the Portfolio may enter into interest rate swap agreements. Interest rate swap agreements involve the exchange by the Portfolio with another party for their respective commitment to pay or receive interest on the notional amount of principal. Certain forms of interest rate swap agreements may include: (i) interest rate caps, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates exceed a specified rate, or “cap”, (ii) interest rate floors, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates fall below a specified rate, or “floor”, (iii) interest rate collars, under which a party sells a cap and purchases a floor or vice versa in an attempt to protect itself against interest rate movements exceeding given minimum or maximum levels, (iv) callable interest rate swaps, under which the buyer pays an upfront fee in consideration for the right to early terminate the swap transaction in whole, at zero cost and at a predetermined date and time prior to the maturity date, (v) spreadlocks, which allow the interest rate swap users to lock in the forward differential (or spread) between the interest rate swap rate and a specified benchmark, or (vi) basis swaps, under which two parties can exchange variable interest rates based on different segments of money markets.

Total Return Swap Agreements  are entered into to gain or mitigate exposure to the underlying reference asset. Total return swap agreements involve commitments where single or multiple cash flows are exchanged based on the price of an underlying reference asset and on a fixed or variable interest rate. Total return swap agreements may involve commitments to pay interest in exchange for a market-linked return. One counterparty pays out the total return of a specific underlying reference asset, which may include a single security, a basket of securities, or an index, and in return receives a fixed or variable rate. At the maturity date, a net cash flow is exchanged where the total return is equivalent to the return of the underlying reference asset less a financing rate, if any. As a receiver, the Portfolio would receive payments based on any net positive total return and would owe payments in the event of a net negative total return. As the payer, the Portfolio would owe payments on any net positive total return, and would receive payments in the event of a net negative total return.

7. PRINCIPAL RISKS

The principal risks of investing in the Portfolio, which could adversely affect its net asset value, yield and total return, are listed below. Please see “Description of Principal Risks” in the Portfolio’s prospectus for a more detailed description of the risks of investing in the Portfolio.

New/Small Portfolio Risk  is the risk that a new or smaller Portfolio’s performance may not represent how the Portfolio is expected to or may

perform in the long term. In addition, new Portfolios have limited operating histories for investors to evaluate and new and smaller Portfolios may not attract sufficient assets to achieve investment and trading efficiencies.

Interest Rate Risk  is the risk that fixed income securities will decline in value because of an increase in interest rates; a portfolio with a longer average portfolio duration will be more sensitive to changes in interest rates than a portfolio with a shorter average portfolio duration.

Call Risk  is the risk that an issuer may exercise its right to redeem a fixed income security earlier than expected (a call). Issuers may call outstanding securities prior to their maturity for a number of reasons (e.g., declining interest rates, changes in credit spreads and improvements in the issuer’s credit quality). If an issuer calls a security that the Portfolio has invested in, the Portfolio may not recoup the full amount of its initial investment and may be forced to reinvest in lower-yielding securities, securities with greater credit risks or securities with other, less favorable features.

Credit Risk  is the risk that the Portfolio could lose money if the issuer or guarantor of a fixed income security, or the counterparty to a derivative contract, is unable or unwilling to meet its financial obligations

High Yield Risk  is the risk that high yield securities and unrated securities of similar credit quality (commonly known as “junk bonds”) are subject to greater levels of credit, call and liquidity risks. High yield securities are considered primarily speculative with respect to the issuer’s continuing ability to make principal and interest payments, and may be more volatile than higher-rated securities of similar maturity.

Market Risk  is the risk that the value of securities owned by the Portfolio may go up or down, sometimes rapidly or unpredictably, due to factors affecting securities markets generally or particular industries.

Issuer Risk  is the risk that the value of a security may decline for a reason directly related to the issuer, such as management performance, financial leverage and reduced demand for the issuer’s goods or services.

Liquidity Risk  is the risk that a particular investment may be difficult to purchase or sell and that the Portfolio may be unable to sell illiquid securities at an advantageous time or price or achieve its desired level of exposure to a certain sector. Liquidity risk may result from the lack of an active market, reduced number and capacity of traditional market participants to make a market in fixed income securities, and may be magnified in a rising interest rate environment or other circumstances where investor redemptions from fixed income mutual funds may be higher than normal, causing increased supply in the market due to selling activity.

ANNUAL REPORT DECEMBER 31, 2018 39

Notes to Financial Statements (Cont.)

Derivatives Risk  is the risk of investing in derivative instruments (such as futures, swaps and structured securities), including leverage, liquidity, interest rate, market, credit and management risks, mispricing or valuation complexity. Changes in the value of the derivative may not correlate perfectly with, and may be more sensitive to market events than, the underlying asset, rate or index, and the Portfolio could lose more than the initial amount invested. The Portfolio’s use of derivatives may result in losses to the Portfolio, a reduction in the Portfolio’s returns and/or increased volatility. Over-the-counter (“OTC”) derivatives are also subject to the risk that a counterparty to the transaction will not fulfill its contractual obligations to the other party, as many of the protections afforded to centrally-cleared derivative transactions might not be available for OTC derivatives. For derivatives traded on an exchange or through a central counterparty, credit risk resides with the Portfolio’s clearing broker, or the clearinghouse itself, rather than with a counterparty in an OTC derivative transaction. Changes in regulation relating to a mutual fund’s use of derivatives and related instruments could potentially limit or impact the Portfolio’s ability to invest in derivatives, limit the Portfolio’s ability to employ certain strategies that use derivatives and/or adversely affect the value of derivatives and the Portfolio’s performance.

Equity Risk  is the risk that the value of equity securities, such as common stocks and preferred securities, may decline due to general market conditions which are not specifically related to a particular company or to factors affecting a particular industry or industries. Equity securities generally have greater price volatility than fixed income securities.

Mortgage-Related and Other Asset-Backed Securities Risk   is the risk of investing in mortgage-related and other asset-backed securities, including interest rate risk, extension risk, prepayment risk and credit risk.

Foreign (Non-U.S.) Investment Risk  is the risk that investing in foreign (non-U.S.) securities may result in the Portfolio experiencing more rapid and extreme changes in value than a portfolio that invests exclusively in securities of U.S. companies, due to smaller markets, differing reporting, accounting and auditing standards, increased risk of delayed settlement of portfolio transactions or loss of certificates of portfolio securities, and the risk of unfavorable foreign government actions, including nationalization, expropriation or confiscatory taxation, currency blockage, or political changes or diplomatic developments. Foreign securities may also be less liquid and more difficult to value than securities of U.S. issuers.

Emerging Markets Risk  is the risk of investing in emerging market securities, primarily increased foreign (non-U.S.) investment risk.

Sovereign Debt Risk  is the risk that investments in fixed income instruments issued by sovereign entities may decline in value as a result

of default or other adverse credit event resulting from an issuer’s inability or unwillingness to make principal or interest payments in a timely fashion.

Currency Risk  is the risk that foreign (non-U.S.) currencies will change in value relative to the U.S. dollar and affect the Portfolio’s investments in foreign (non-U.S.) currencies or in securities that trade in, and receive revenues in, or in derivatives that provide exposure to, foreign (non-U.S.) currencies.

Leveraging Risk  is the risk that certain transactions of the Portfolio, such as reverse repurchase agreements, loans of portfolio securities, and the use of when-issued, delayed delivery or forward commitment transactions, or derivative instruments, may give rise to leverage, magnifying gains and losses and causing the Portfolio to be more volatile than if it had not been leveraged. This means that leverage entails a heightened risk of loss.

Management Risk  is the risk that the investment techniques and risk analyses applied by PIMCO will not produce the desired results and that legislative, regulatory, or tax restrictions, policies or developments may affect the investment techniques available to PIMCO and the individual portfolio manager in connection with managing the Portfolio. There is no guarantee that the investment objective of the Portfolio will be achieved.

Short Exposure Risk  is the risk of entering into short sales, including the potential loss of more money than the actual cost of the investment, and the risk that the third party to the short sale will not fulfill its contractual obligations, causing a loss to the Portfolio.

Distribution Rate Risk  is the risk that the Portfolio’s distribution rate may change unexpectedly as a result of numerous factors, including changes in realized and projected market returns, fluctuations in market interest rates, Portfolio performance and other factors.

8. MASTER NETTING ARRANGEMENTS

The Portfolio may be subject to various netting arrangements (“Master Agreements”) with select counterparties. Master Agreements govern the terms of certain transactions, and are intended to reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that is intended to improve legal certainty. Each type of Master Agreement governs certain types of transactions. Different types of transactions may be traded out of different legal entities or affiliates of a particular organization, resulting in the need for multiple agreements with a single counterparty. As the Master Agreements are specific to unique operations of different asset types, they allow the Portfolio to close out and net its total exposure to a counterparty in the event of a default with respect to all the transactions governed under a single Master

40 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

Agreement with a counterparty. For financial reporting purposes the Statement of Assets and Liabilities generally presents derivative assets and liabilities on a gross basis, which reflects the full risks and exposures prior to netting.

Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. Under most Master Agreements, collateral is routinely transferred if the total net exposure to certain transactions (net of existing collateral already in place) governed under the relevant Master Agreement with a counterparty in a given account exceeds a specified threshold, which typically ranges from zero to $250,000 depending on the counterparty and the type of Master Agreement. United States Treasury Bills and U.S. dollar cash are generally the preferred forms of collateral, although other securities may be used depending on the terms outlined in the applicable Master Agreement. Securities and cash pledged as collateral are reflected as assets on the Statement of Assets and Liabilities as either a component of Investments at value (securities) or Deposits with counterparty. Cash collateral received is not typically held in a segregated account and as such is reflected as a liability on the Statement of Assets and Liabilities as Deposits from counterparty. The market value of any securities received as collateral is not reflected as a component of NAV. The Portfolio’s overall exposure to counterparty risk can change substantially within a short period, as it is affected by each transaction subject to the relevant Master Agreement.

Master Repurchase Agreements and Global Master Repurchase Agreements (individually and collectively “Master Repo Agreements”) govern repurchase, reverse repurchase, and certain sale-buyback transactions between the Portfolio and select counterparties. Master Repo Agreements maintain provisions for, among other things, initiation, income payments, events of default, and maintenance of collateral. The market value of transactions under the Master Repo Agreement, collateral pledged or received, and the net exposure by counterparty as of period end are disclosed in the Notes to Schedule of Investments.

Master Securities Forward Transaction Agreements (“Master Forward Agreements”) govern certain forward settling transactions, such as TBA securities, delayed-delivery or certain sale-buyback transactions by and between the Portfolio and select counterparties. The Master Forward Agreements maintain provisions for, among other things, transaction initiation and confirmation, payment and transfer, events of default, termination, and maintenance of collateral. The market value of forward settling transactions, collateral pledged or received, and the net exposure by counterparty as of period end is disclosed in the Notes to Schedule of Investments.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Such transactions require posting of initial margin as determined by each relevant clearing agency which is segregated in an account at a futures commission merchant (“FCM”) registered with the Commodity Futures Trading Commission (“CFTC”). In the United States, counterparty risk may be reduced as creditors of an FCM cannot have a claim to Portfolio assets in the segregated account. Portability of exposure reduces risk to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives unless the parties have agreed to a separate arrangement in respect of portfolio margining. The market value or accumulated unrealized appreciation (depreciation), initial margin posted, and any unsettled variation margin as of period end are disclosed in the Notes to Schedule of Investments.

International Swaps and Derivatives Association, Inc. Master Agreements and Credit Support Annexes (“ISDA Master Agreements”) govern bilateral OTC derivative transactions entered into by the Portfolio with select counterparties. ISDA Master Agreements maintain provisions for general obligations, representations, agreements, collateral posting and events of default or termination. Events of termination include conditions that may entitle counterparties to elect to terminate early and cause settlement of all outstanding transactions under the applicable ISDA Master Agreement. Any election to terminate early could be material to the financial statements. In limited circumstances, the ISDA Master Agreement may contain additional provisions that add counterparty protection beyond coverage of existing daily exposure if the counterparty has a decline in credit quality below a predefined level. These amounts, if any, may be segregated with a third-party custodian. The market value of OTC financial derivative instruments, collateral received or pledged, and net exposure by counterparty as of period end are disclosed in the Notes to Schedule of Investments.

9. FEES AND EXPENSES

(a) Investment Advisory Fee  PIMCO is a majority-owned subsidiary of Allianz Asset Management of America L.P. (“Allianz Asset Management”) and serves as the Adviser to the Trust, pursuant to an investment advisory contract. The Adviser receives a monthly fee from the Portfolio at an annual rate based on average daily net assets (the “Investment Advisory Fee”). The Investment Advisory Fee for all classes is charged at an annual rate as noted in the table in note (b) below.

(b) Supervisory and Administrative Fee  PIMCO serves as administrator (the “Administrator”) and provides supervisory and administrative services to the Trust for which it receives a monthly supervisory and administrative fee based on each share class’s average

ANNUAL REPORT DECEMBER 31, 2018 41

Notes to Financial Statements (Cont.)

daily net assets (the “Supervisory and Administrative Fee”). As the Administrator, PIMCO bears the costs of various third-party services, including audit, custodial, portfolio accounting, legal, transfer agency and printing costs.

The Investment Advisory Fee and Supervisory and Administrative Fees for all classes, as applicable, are charged at the annual rate as noted in the following table (calculated as a percentage of the Portfolio’s average daily net assets attributable to each class):

Investment Advisory Fee	Supervisory and Administrative Fee
All Classes	Institutional Class	Class M	Administrative Class	Advisor Class
0.25%	0.40%	0.40%*	0.40%	0.40%

* This particular share class has been registered with the SEC, but has not yet launched.

(c) Distribution and Servicing Fees  PIMCO Investments LLC, a wholly-owned subsidiary of PIMCO, serves as the distributor (“Distributor”) of the Trust’s shares.

The Trust has adopted an Administrative Services Plan with respect to the Administrative Class shares of the Portfolio pursuant to Rule 12b-1 under the Act (the “Administrative Plan”). Under the terms of the Administrative Plan, the Trust is permitted to compensate the Distributor, out of the Administrative Class assets of the Portfolio, in an amount up to 0.15% on an annual basis of the average daily net assets of that class, for providing or procuring through financial intermediaries administrative, recordkeeping and investor services for Administrative Class shareholders of the Portfolio.

The Trust has adopted a separate Distribution and Servicing Plan for the Advisor Class shares of the Portfolio (the “Distribution and Servicing Plan”). The Distribution and Servicing Plan has been adopted pursuant to Rule 12b-1 under the Act. The Distribution and Servicing Plan permits the Portfolio to compensate the Distributor for providing or procuring through financial intermediaries, distribution, administrative, recordkeeping, shareholder and/or related services with respect to Advisor Class shares. The Distribution and Servicing Plan permits the Portfolio to make total payments at an annual rate of up to 0.25% of its average daily net assets attributable to its Advisor Class and Class M shares. The Distribution and Servicing Plan for Class M shares also permits the Portfolio to compensate the Distributor for providing or procuring administrative, recordkeeping, and other investor services at an annual rate of up to 0.20% of its average daily net assets attributable to its Class M shares.

	Distribution Fee		Servicing Fee
Class M*		0.25%		0.20%
Administrative Class		—		0.15%
Advisor Class		0.25%		—

* This particular share class has been registered with the SEC, but has not yet launched.

(d) Portfolio Expenses  PIMCO provides or procures supervisory and administrative services for shareholders and also bears the costs of various third-party services required by the Portfolio, including audit, custodial, portfolio accounting, legal, transfer agency and printing costs. The Trust is responsible for the following expenses: (i) taxes and governmental fees; (ii) brokerage fees and commissions and other portfolio transaction expenses; (iii) the costs of borrowing money, including interest expense; (iv) fees and expenses of the Trustees who are not “interested persons” of PIMCO or the Trust, and any counsel retained exclusively for their benefit; (v) extraordinary expense, including costs of litigation and indemnification expenses; (vi) organizational expenses; and (vii) any expenses allocated or allocable to a specific class of shares, which include service fees payable with respect to the Administrative Class Shares, and may include certain other expenses as permitted by the Trust’s Multi-Class Plan adopted pursuant to Rule 18f-3 under the Act and subject to review and approval by the Trustees. The ratio of expenses to average net assets per share class, as disclosed on the Financial Highlights, may differ from the annual portfolio operating expenses per share class.

Each Trustee, other than those affiliated with PIMCO or its affiliates, receives an annual retainer of $41,200, plus $4,250 for each Board meeting attended in person, $850 for each committee meeting attended and $750 for each Board meeting attended telephonically, plus reimbursement of related expenses. In addition, the audit committee chair receives an additional annual retainer of $8,000, the valuation oversight committee lead receives an additional annual retainer of $8,500 (to the extent there are co-leads of the valuation oversight committee, the annual retainer will be split evenly between the co-leads, so that each co-lead individually receives an additional annual retainer of $4,250) and each other committee chair receives an additional annual retainer of $5,500. The Lead Independent Trustee receives an annual retainer of $7,000.

These expenses are allocated on a pro rata basis to each Portfolio of the Trust according to its respective net assets. The Trust pays no compensation directly to any Trustee or any other officer who is affiliated with the Administrator, all of whom receive remuneration for their services to the Trust from the Administrator or its affiliates.

(e) Expense Limitation  Pursuant to the Expense Limitation Agreement, PIMCO has agreed to waive a portion of the Portfolio’s Supervisory and Administrative Fee, or reimburse the Portfolio, to the extent that the Portfolio’s organizational expenses, pro rata share of expenses related to obtaining or maintaining a Legal Entity Identifier and pro rata share of Trustee Fees exceed 0.0049%, the “Expense Limit” (calculated as a percent of the Portfolio’s average daily net assets attributable to each class). The Expense Limitation Agreement will automatically renew for one-year terms unless PIMCO provides written notice to the Trust at least 30 days prior to the end of the then current term.

42 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

Under certain conditions, PIMCO may be reimbursed for these waived amounts in future periods, not to exceed thirty-six months after the waiver. The total recoverable amounts to PIMCO at December 31, 2018, were as follows (amounts in thousands^†):

Expiring within
12 months		13-24 months		25-36 months		Total
$	57	$	5	$	7	$	69

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

10. RELATED PARTY TRANSACTIONS

The Adviser, Administrator, and Distributor are related parties. Fees paid to these parties are disclosed in Note 9, Fees and Expenses, and the accrued related party fee amounts are disclosed on the Statement of Assets and Liabilities.

The Portfolio is permitted to purchase or sell securities from or to certain related affiliated portfolios under specified conditions outlined in procedures adopted by the Board. The procedures have been designed to ensure that any purchase or sale of securities by the Portfolio from or to another fund or portfolio that are, or could be, considered an affiliate, or an affiliate of an affiliate, by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers complies with Rule 17a-7 under the Act. Further, as defined under the procedures, each transaction is effected at the current market price. Purchases and sales of securities pursuant to Rule 17a-7 under the Act for the period ended December 31, 2018, were as follows (amounts in thousands^†):

Purchases		Sales
$	15,742	$	2,144

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

11. GUARANTEES AND INDEMNIFICATIONS

Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust (including the Trust’s investment

manager) is indemnified, to the extent permitted by the Act, against certain liabilities that may arise out of performance of their duties to the Portfolio. Additionally, in the normal course of business, the Portfolio enters into contracts that contain a variety of indemnification clauses. The Portfolio’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Portfolio that have not yet occurred. However, the Portfolio has not had prior claims or losses pursuant to these contracts.

12. PURCHASES AND SALES OF SECURITIES

The length of time the Portfolio has held a particular security is not generally a consideration in investment decisions. A change in the securities held by the Portfolio is known as “portfolio turnover.” The Portfolio may engage in frequent and active trading of portfolio securities to achieve its investment objective, particularly during periods of volatile market movements. High portfolio turnover may involve correspondingly greater transaction costs to the Portfolio, including brokerage commissions or dealer mark-ups and other transaction costs on the sale of securities and reinvestments in other securities. Such sales may also result in realization of taxable capital gains, including short-term capital gains (which are generally taxed at ordinary income tax rates). The transaction costs and tax effects associated with portfolio turnover may adversely affect a shareholder’s performance. The portfolio turnover rates are reported in the Financial Highlights.

Purchases and sales of securities (excluding short-term investments) for the period ended December 31, 2018, were as follows (amounts in thousands^†):

U.S. Government/Agency				All Other
Purchases		Sales		Purchases		Sales
$	531,435	$	515,670	$	119,756	$	45,527

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

ANNUAL REPORT DECEMBER 31, 2018 43

Notes to Financial Statements (Cont.)

13. SHARES OF BENEFICIAL INTEREST

The Trust may issue an unlimited number of shares of beneficial interest with a $0.001 par value. Changes in shares of beneficial interest were as follows (shares and amounts in thousands^†):

	Year Ended 12/31/2018						Year Ended 12/31/2017
	Shares			Amount			Shares			Amount
Receipts for shares sold
Institutional Class		128		$	1,347			0		$	0
Administrative Class		4,176			44,020			7,842			82,714
Advisor Class		2,797			29,529			1,060			11,377
Issued as reinvestment of distributions
Institutional Class		2			22			0			1
Administrative Class		312			3,271			135			1,437
Advisor Class		645			6,765			387			4,095
Cost of shares redeemed
Institutional Class		0			0			0			0
Administrative Class		(3,186	)		(33,836	)		(1,747	)		(18,553	)
Advisor Class		(1,800	)		(18,973	)		(2,093	)		(22,147	)
Net increase (decrease) resulting from Portfolio share transactions		3,074		$	32,145			5,584		$	58,924

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

As of December 31, 2018, three shareholders each owned 10% or more of the Portfolio’s total outstanding shares comprising 78% of the Portfolio.

14. REGULATORY AND LITIGATION MATTERS

The Portfolio is not named as a defendant in any material litigation or arbitration proceedings and is not aware of any material litigation or claim pending or threatened against it.

The foregoing speaks only as of the date of this report.

15. FEDERAL INCOME TAX MATTERS

The Portfolio intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code (the “Code”) and distribute all of its taxable income and net realized gains, if applicable, to shareholders. Accordingly, no provision for Federal income taxes has been made.

The Portfolio may be subject to local withholding taxes, including those imposed on realized capital gains. Any applicable foreign capital gains tax is accrued daily based upon net unrealized gains, and may be payable following the sale of any applicable investments.

In accordance with U.S. GAAP, the Adviser has reviewed the Portfolio’s tax positions for all open tax years. As of December 31, 2018, the Portfolio has recorded no liability for net unrecognized tax benefits relating to uncertain income tax positions it has taken or expects to take in future tax returns.

The Portfolio files U.S. federal, state, and local tax returns as required. The Portfolio’s tax returns are subject to examination by relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return but which can be extended to six years in certain circumstances. Tax returns for open years have incorporated no uncertain tax positions that require a provision for income taxes.

Shares of the Portfolio currently are sold to segregated asset accounts (“Separate Accounts”) of insurance companies that fund variable annuity contracts and variable life insurance policies (“Variable Contracts”). Please refer to the prospectus for the Separate Account and Variable Contract for information regarding Federal income tax treatment of distributions to the Separate Account.

44 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

As of December 31, 2018, the components of distributable taxable earnings are as follows (amounts in thousands^†):

	Undistributed Ordinary Income(1)		Undistributed Long-Term Capital Gains		Net Tax Basis Unrealized Appreciation/ (Depreciation)(2)		Other Book-to-Tax Accounting Differences(3)			Accumulated Capital Losses(4)			Qualified Late-Year Loss Deferral - Capital(5)		Qualified Late-Year Loss Deferral - Ordinary(6)
PIMCO Income Portfolio	$	4,805	$	0	$	1,040	($	2	)	($	985	)	$	0	$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽¹⁾  Includes undistributed short-term capital gains, if any.

⁽²⁾  Adjusted for open wash sale loss deferrals and the accelerated recognition of unrealized gain or loss on certain futures, and forward contracts for federal income tax, purposes. Also adjusted for differences between book and tax realized and unrealized gain (loss) on swap contracts, convertible preferred securities, and straddle loss deferrals.

⁽³⁾  Represents differences in income tax regulations and financial accounting principles generally accepted in the United States of America, mainly for organizational costs.

⁽⁴⁾  Capital losses available to offset future net capital gains expire in varying amounts as shown below.

⁽⁵⁾  Capital losses realized during the period November 1, 2018 through December 31, 2018 which the Portfolio elected to defer to the following taxable year pursuant to income tax regulations.

⁽⁶⁾  Specified losses realized during the period November 1, 2018 through December 31, 2018 which the Portfolio elected to defer to the following taxable year pursuant to income tax regulations.

Under the Regulated Investment Company Modernization Act of 2010, a fund is permitted to carry forward any new capital losses for an unlimited period. Additionally, such capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term under previous law.

As of December 31, 2018, the Portfolio had the following post-effective capital losses with no expiration (amounts in thousands^†):

	Short-Term		Long-Term
PIMCO Income Portfolio	$	841	$	144

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

As of December 31, 2018, the aggregate cost and the net unrealized appreciation/(depreciation) of investments for federal income tax purposes are as follows (amounts in thousands^†):

	Federal Tax Cost		Unrealized Appreciation		Unrealized (Depreciation)			Net Unrealized Appreciation/ (Depreciation)(7)
PIMCO Income Portfolio	$	364,091	$	12,257	($	11,317	)	$	940

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽⁷⁾  Primary differences, if any, between book and tax net unrealized appreciation/(depreciation) on investments are attributable to open wash sale loss deferrals, unrealized gain or loss on certain futures, and forward contracts, realized and unrealized gain (loss) swap contracts, straddle loss deferrals, and convertible preferred securities.

For the fiscal year ended December 31, 2018 and December 31, 2017, respectively, the Portfolio made the following tax basis distributions (amounts in thousands^†):

	December 31, 2018						December 31, 2017
	Ordinary Income Distributions(8)		Long-Term Capital Gain Distributions		Return of Capital(9)		Ordinary Income Distributions(8)		Long-Term Capital Gain Distributions		Return of Capital(9)
PIMCO Income Portfolio	$	9,714	$	344	$	0	$	5,533	$	0	$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽⁸⁾  Includes short-term capital gains distributed, if any.

⁽⁹⁾  A portion of the distributions made represents a tax return of capital. Return of capital distributions have been reclassified from undistributed net investment income to paid-in capital to more appropriately conform financial accounting to tax accounting.

ANNUAL REPORT DECEMBER 31, 2018 45

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of PIMCO Variable Insurance Trust and Shareholders of PIMCO Income Portfolio

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of PIMCO Income Portfolio (one of the portfolios constituting PIMCO Variable Insurance Trust, referred to hereafter as the “Portfolio”) as of December 31, 2018, the related statement of operations for the year ended December 31, 2018, the statement of changes in net assets for each of the two years in the period ended December 31, 2018, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Portfolio as of December 31, 2018, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended December 31, 2018 and the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Portfolio’s management. Our responsibility is to express an opinion on the Portfolio’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Portfolio in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2018 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

Kansas City, Missouri

February 20, 2019

We have served as the auditor of one or more investment companies in PIMCO Variable Insurance Trust since 1998.

46 PIMCO VARIABLE INSURANCE TRUST

Glossary: (abbreviations that may be used in the preceding statements)

(Unaudited)

Counterparty Abbreviations:
BCY	Barclays Capital, Inc.	GLM	Goldman Sachs Bank USA	MYI	Morgan Stanley & Co. International PLC
BOA	Bank of America N.A.	GRE	RBS Securities, Inc.	NGF	Nomura Global Financial Products, Inc.
BOS	Banc of America Securities LLC	GST	Goldman Sachs International	RBC	Royal Bank of Canada
BPG	BNP Paribas Securities Corp.	IND	Crédit Agricole Corporate and Investment Bank S.A.	SAL	Citigroup Global Markets, Inc.
BPS	BNP Paribas S.A.	JPM	JPMorgan Chase Bank N.A.	SCX	Standard Chartered Bank
BRC	Barclays Bank PLC	MSB	Morgan Stanley Bank, N.A	TOR	Toronto Dominion Bank
CBK	Citibank N.A.	MYC	Morgan Stanley Capital Services, Inc.	UBS	UBS Securities LLC
Currency Abbreviations:
ARS	Argentine Peso	EUR	Euro	PEN	Peruvian New Sol
AUD	Australian Dollar	GBP	British Pound	RUB	Russian Ruble
BRL	Brazilian Real	JPY	Japanese Yen	TRY	Turkish New Lira
CAD	Canadian Dollar	MXN	Mexican Peso	USD (or $)	United States Dollar
DKK	Danish Krone	NZD	New Zealand Dollar	ZAR	South African Rand
Exchange Abbreviations:
OTC	Over the Counter
Index/Spread Abbreviations:
BADLARPP	Argentina Badlar Floating Rate Notes	CDX.HY	Credit Derivatives Index - High Yield	CMBX	Commercial Mortgage-Backed Index
CDX.EM	Credit Derivatives Index - Emerging Markets	CDX.IG	Credit Derivatives Index - Investment Grade	US0003M	3 Month USD Swap Rate
Other Abbreviations:
ABS	Asset-Backed Security	CLO	Collateralized Loan Obligation	Lunar	Monthly payment based on 28-day periods. One year consists of 13 periods.
BABs	Build America Bonds	EURIBOR	Euro Interbank Offered Rate	TBA	To-Be-Announced
BBR	Bank Bill Rate	JIBAR	Johannesburg Interbank Agreed Rate	TBD%	Interest rate to be determined when loan settles or at the time of funding
BBSW	Bank Bill Swap Reference Rate	LIBOR	London Interbank Offered Rate	TIIE	Tasa de Interés Interbancaria de Equilibrio “Equilibrium Interbank Interest Rate”
CDO	Collateralized Debt Obligation

ANNUAL REPORT DECEMBER 31, 2018 47

Federal Income Tax Information

(Unaudited)

As required by the Internal Revenue Code (the “Code”) and Treasury Regulations, if applicable, shareholders must be notified regarding the status of qualified dividend income and the dividend received deduction.

Dividend Received Deduction.  Corporate shareholders are generally entitled to take the dividend received deduction on the portion of a Fund’s dividend distribution that qualifies under tax law. The percentage of the following Portfolio’s fiscal 2018 ordinary income dividend that qualifies for the corporate dividend received deduction is set forth in the table below.

Qualified Dividend Income.  Under the Jobs and Growth Tax Relief Reconciliation Act of 2003 (the “Act”), the percentage of ordinary dividends paid during the calendar year designated as “qualified dividend income”, as defined in the Act, subject to reduced tax rates in 2018 is set forth for the Portfolio in the table below.

Qualified Interest Income and Qualified Short-Term Capital Gain (for non-U.S. resident shareholders only).  Under the American Jobs Creation Act of 2004, the amounts of ordinary dividends paid during the fiscal year ended December 31, 2018 considered to be derived from “qualified interest income,” as defined in Section 871(k)(1)(E) of the Code, and therefore designated as interest-related dividends, as defined in Section 871(k)(1)(C) of the Code are set forth in the table below. Further, the amounts of ordinary dividends paid during the fiscal year ended December 31, 2018 considered to be derived from “qualified short-term capital gain,” as defined in Section 871(k)(2)(D) of the Code, and therefore designated as qualified short-term gain dividends, as defined by Section 871(k)(2)(C) of the Code are also set forth in the table below.

	Dividend Received Deduction %		Qualified Dividend Income %		Qualified Interest Income (000s† )		Qualified Short-Term Capital Gain (000s†)
PIMCO Income Portfolio		0.00%		0.00%	$	7,426	$	1,620

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

Shareholders are advised to consult their own tax advisor with respect to the tax consequences of their investment in the Trust. In January 2019, you will be advised on IRS Form 1099-DIV as to the federal tax status of the dividends and distributions received by you in calendar year 2018.

48 PIMCO VARIABLE INSURANCE TRUST

Management of the Trust

(Unaudited)

The charts below identify the Trustees and executive officers of the Trust. Unless otherwise indicated, the address of all persons below is 650 Newport Center Drive, Newport Beach, CA 92660.

The Portfolio’s Statement of Additional Information includes more information about the Trustees and Officers. To request a free copy, call PIMCO at (888) 87-PIMCO or visit the Portfolio’s website at www.pimco.com/pvit.

Name, Year of Birth and Position Held with Trust*	Term of Office and Length of Time Served†	Principal Occupation(s) During Past 5 Years	Number of Funds in Fund Complex Overseen by Trustee	Other Public Company and Investment Company Directorships Held by Trustee During the Past 5 Years
Interested Trustees1
Peter G. Strelow** (1970) Chairman of the Board and Trustee	05/2017 to present Chairman of the Board - 02/2019 to present	Managing Director and Co-Chief Operating Officer, PIMCO. President of the Trust, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Chief Administrative Officer, PIMCO.	153	Chairman and Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT.
Brent R. Harris** (1959) Trustee	08/1997 to present	Managing Director, PIMCO. Senior Vice President of the Trust, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Formerly, member of Executive Committee, PIMCO.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT; Director, StocksPLUS® Management, Inc; and member of Board of Governors, Investment Company Institute. Formerly, Chairman, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT.
Independent Trustees
George E. Borst (1948) Trustee	04/2015 to present	Executive Advisor, McKinsey & Company (since 10/14); Formerly, Executive Advisor, Toyota Financial Services (10/13-12/14); and CEO, Toyota Financial Services (1/01-9/13).	132	Trustee, PIMCO Funds and PIMCO ETF Trust; Director, MarineMax Inc.
Jennifer Holden Dunbar (1963) Trustee	04/2015 to present	Managing Director, Dunbar Partners, LLC (business consulting and investments). Formerly, Partner, Leonard Green & Partners, L.P.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT; Director, PS Business Parks; Director, Big 5 Sporting Goods Corporation.
Kym M. Hubbard (1957) Trustee	02/2017 to present	Formerly, Global Head of Investments, Chief Investment Officer and Treasurer, Ernst & Young.	132	Trustee, PIMCO Funds and PIMCO ETF Trust; Director, State Auto Financial Corporation.
Gary F. Kennedy (1955) Trustee	04/2015 to present	Formerly, Senior Vice President, General Counsel and Chief Compliance Officer, American Airlines and AMR Corporation (now American Airlines Group) (1/03-1/14).	132	Trustee, PIMCO Funds and PIMCO ETF Trust.
Peter B. McCarthy (1950) Trustee	04/2015 to present	Formerly, Assistant Secretary and Chief Financial Officer, United States Department of Treasury; Deputy Managing Director, Institute of International Finance.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Ronald C. Parker (1951) Lead Independent Trustee	07/2009 to present Lead Independent Trustee - 02/2017 to present	Director of Roseburg Forest Products Company. Formerly, Chairman of the Board, The Ford Family Foundation; and President, Chief Executive Officer, Hampton Affiliates (forestry products).	153	Lead Independent Trustee, PIMCO Funds and PIMCO ETF Trust; Trustee, PIMCO Equity Series and PIMCO Equity Series VIT.

* Unless otherwise noted, the information for the individuals listed is as of December 31, 2018.

** Effective February 13, 2019, Mr. Strelow became the Chairman of the Trust.

¹  Mr. Harris and Mr. Strelow are “interested persons” of the Trust (as that term is defined in the 1940 Act) because of their affiliations with PIMCO.

^†  Trustees serve until their successors are duly elected and qualified.

ANNUAL REPORT DECEMBER 31, 2018 49

Management of the Trust (Cont.)

(Unaudited)

Executive Officers

Name, Year of Birth and Position Held with Trust	Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years*
Peter G. Strelow (1970) President	01/2015 to present	Managing Director and Co-Chief Operating Officer, PIMCO. President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Chief Administrative Officer, PIMCO.
Joshua D. Ratner (1976)** Chief Legal Officer	11/2018 to present Vice President - Senior Counsel and Secretary 11/2013 to 11/2018 Assistant Secretary 10/2007 to 01/2011	Executive Vice President and Deputy General Counsel, PIMCO. Chief Legal Officer, PIMCO Investments LLC. Chief Legal Officer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Jennifer E. Durham (1970) Chief Compliance Officer	07/2004 to present	Managing Director and Chief Compliance Officer, PIMCO. Chief Compliance Officer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Brent R. Harris (1959) Senior Vice President	01/2015 to present President 03/2009 to 01/2015	Managing Director, PIMCO. Senior Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Formerly, member of Executive Committee, PIMCO.
Ryan G. Leshaw (1980) Vice President, Senior Counsel and Secretary	11/2018 to present Assistant Secretary 05/2012 to 11/2018	Senior Vice President and Senior Counsel, PIMCO. Vice President, Senior Counsel and Secretary, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Assistant Secretary, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Associate, Willkie Farr & Gallagher LLP.
Wu-Kwan Kit (1981) Assistant Secretary	08/2017 to present	Senior Vice President and Senior Counsel, PIMCO. Assistant Secretary, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Vice President, Senior Counsel and Secretary, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Assistant General Counsel, VanEck Associates Corp.
Stacie D. Anctil (1969) Vice President	05/2015 to present Assistant Treasurer 11/2003 to 05/2015	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
William G. Galipeau (1974) Vice President	11/2013 to present	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Eric D. Johnson (1970) Vice President	05/2011 to present	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Henrik P. Larsen (1970) Vice President	02/1999 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Bijal Y. Parikh (1978) Vice President	02/2017 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Greggory S. Wolf (1970) Vice President	05/2011 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Trent W. Walker (1974) Treasurer	11/2013 to present	Executive Vice President, PIMCO. Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Erik C. Brown (1967)** Assistant Treasurer	02/2001 to present	Executive Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Colleen D. Miller (1980)** Assistant Treasurer	02/2017 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Christopher M. Morin (1980) Assistant Treasurer	08/2016 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Jason J. Nagler (1982)** Assistant Treasurer	05/2015 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.

* The term “PIMCO-Sponsored Closed-End Funds” as used herein includes: PIMCO California Municipal Income Fund, PIMCO California Municipal Income Fund II, PIMCO California Municipal Income Fund III, PIMCO Municipal Income Fund, PIMCO Municipal Income Fund II, PIMCO Municipal Income Fund III, PIMCO New York Municipal Income Fund, PIMCO New York Municipal Income Fund II, PIMCO New York Municipal Income Fund III, PCM Fund Inc., PIMCO Corporate & Income Opportunity Fund, PIMCO Corporate & Income Strategy Fund, PIMCO Dynamic Credit and Mortgage Income Fund, PIMCO Dynamic Income Fund, PIMCO Global StocksPLUS^® & Income Fund, PIMCO High Income Fund, PIMCO Income Opportunity Fund, PIMCO Income Strategy Fund, PIMCO Income Strategy Fund II and PIMCO Strategic Income Fund, Inc.; the term “PIMCO-Sponsored Interval Funds” as used herein includes: PIMCO Flexible Credit Income Fund and PIMCO Flexible Municipal Income Fund.

** The address of these officers is Pacific Investment Management Company LLC, 1633 Broadway, New York, New York 10019.

50 PIMCO VARIABLE INSURANCE TRUST

Privacy Policy¹

(Unaudited)

The Trust^2,3 considers customer privacy to be a fundamental aspect of its relationships with shareholders and is committed to maintaining the confidentiality, integrity and security of its current, prospective and former shareholders’ non-public personal information. The Trust has developed policies that are designed to protect this confidentiality, while allowing shareholder needs to be served.

OBTAINING PERSONAL INFORMATION

In the course of providing shareholders with products and services, the Trust and certain service providers to the Trust, such as the Trust’s investment advisers or sub-advisers (“Advisers”), may obtain non-public personal information about shareholders, which may come from sources such as account applications and other forms, from other written, electronic or verbal correspondence, from shareholder transactions, from a shareholder’s brokerage or financial advisory firm, financial advisor or consultant, and/or from information captured on applicable websites.

RESPECTING YOUR PRIVACY

As a matter of policy, the Trust does not disclose any non-public personal information provided by shareholders or gathered by the Trust to non-affiliated third parties, except as required or permitted by law or as necessary for such third parties to perform their agreements with respect to the Trust. As is common in the industry, non-affiliated companies may from time to time be used to provide certain services, such as preparing and mailing prospectuses, reports, account statements and other information, conducting research on shareholder satisfaction and gathering shareholder proxies. The Trust or its affiliates may also retain non-affiliated companies to market the Trust’s shares or products which use the Trust’s shares and enter into joint marketing arrangements with them and other companies. These companies may have access to a shareholder’s personal and account information, but are permitted to use this information solely to provide the specific service or as otherwise permitted by law. In most cases, the shareholders will be clients of a third party, but the Trust may also provide a shareholder’s personal and account information to the shareholder’s respective brokerage or financial advisory firm and/or financial advisor or consultant.

SHARING INFORMATION WITH THIRD PARTIES

The Trust reserves the right to disclose or report personal or account information to non-affiliated third parties in limited circumstances where the Trust believes in good faith that disclosure is required under law, to cooperate with regulators or law enforcement authorities, to protect its rights or property, or upon reasonable request by any fund advised by PIMCO in which a shareholder has invested. In addition, the Trust may disclose information about a shareholder or a shareholder’s accounts to a non-affiliated third party at the shareholder’s request or with the consent of the shareholder.

SHARING INFORMATION WITH AFFILIATES

The Trust may share shareholder information with its affiliates in connection with servicing shareholders’ accounts, and subject to applicable law may provide shareholders with information about products and services that the Trust or its Advisers, distributors or their affiliates (“Service Affiliates”) believe may be of interest to such shareholders. The information that the Trust may share may include,

for example, a shareholder’s participation in the Trust or in other investment programs sponsored by a Service Affiliate, a shareholder’s ownership of certain types of accounts (such as IRAs), information about the Trust’s experiences or transactions with a shareholder, information captured on applicable websites, or other data about a shareholder’s accounts, subject to applicable law. The Trust’s Service Affiliates, in turn, are not permitted to share shareholder information with non-affiliated entities, except as required or permitted by law.

PROCEDURES TO SAFEGUARD PRIVATE INFORMATION

The Trust takes seriously the obligation to safeguard shareholder non-public personal information. In addition to this policy, the Trust has implemented procedures that are designed to restrict access to a shareholder’s non-public personal information to internal personnel who need to know that information to perform their jobs, such as servicing shareholder accounts or notifying shareholders of new products or services. Physical, electronic and procedural safeguards are in place to guard a shareholder’s non-public personal information.

INFORMATION COLLECTED FROM WEBSITES

Websites maintained by the Trust or its service providers may use a variety of technologies to collect information that help the Trust and its service providers understand how the website is used. Information collected from your web browser (including small files stored on your device that are commonly referred to as “cookies”) allow the websites to recognize your web browser and help to personalize and improve your user experience and enhance navigation of the website. In addition, the Trust or its Service Affiliates may use third parties to place advertisements for the Trust on other websites, including banner advertisements. Such third parties may collect anonymous information through the use of cookies or action tags (such as web beacons). The information these third parties collect is generally limited to technical and web navigation information, such as your IP address, web pages visited and browser type, and does not include personally identifiable information such as name, address, phone number or email address. If you are a registered user of the Trust’s website, the Trust or their service providers or third party firms engaged by the Trust or their service providers may collect or share information submitted by you, which may include personally identifiable information. This information can be useful to the Trust when assessing and offering services and website features. You can change your cookie preferences by changing the setting on your web browser to delete or reject cookies. If you delete or reject cookies, some website pages may not function properly. The Trust does not look for web browser “do not track” requests.

CHANGES TO THE PRIVACY POLICY

From time to time, the Trust may update or revise this privacy policy. If there are changes to the terms of this privacy policy, documents containing the revised policy on the relevant website will be updated.

¹ Amended as of February 15, 2017.

² PIMCO Investments LLC (“PI”) serves as the Trust’s distributor. This Privacy Policy applies to the activities of PI to the extent that PI regularly effects or engages in transactions with or for a Trust shareholder who is the record owner of such shares. For purposes of this Privacy Policy, references to “the Trust” shall include PI when acting in this capacity.

³ When distributing this Policy, the Trust may combine the distribution with any similar distribution of its investment adviser’s privacy policy. The distributed, combined policy may be written in the first person (i.e., by using “we” instead of “the Trust”).

ANNUAL REPORT DECEMBER 31, 2018 51

Approval of Investment Advisory Contract and Other Agreements

Approval of Renewal of the Amended and Restated Investment Advisory Contract, Supervision and Administration Agreement and Amended and Restated Asset Allocation Sub-Advisory Agreement

At a meeting held on August 20-21, 2018, the Board of Trustees (the “Board”) of PIMCO Variable Insurance Trust (the “Trust”), including the Trustees who are not “interested persons” of the Trust under the Investment Company Act of 1940, as amended (the “Independent Trustees”), considered and unanimously approved the renewal of the Amended and Restated Investment Advisory Contract (the “Investment Advisory Contract”) between the Trust, on behalf of each of the Trust’s series (the “Portfolios”), and Pacific Investment Management Company LLC (“PIMCO”) for an additional one-year term through August 31, 2019. The Board also considered and unanimously approved the renewal of the Supervision and Administration Agreement (together with the Investment Advisory Contract, the “Agreements”) between the Trust, on behalf of the Portfolios, and PIMCO for an additional one-year term through August 31, 2019. In addition, the Board considered and unanimously approved the renewal of the Amended and Restated Asset Allocation Sub-Advisory Agreement (the “Asset Allocation Agreement”) between PIMCO, on behalf of PIMCO All Asset Portfolio and PIMCO All Asset All Authority Portfolio, each a series of the Trust, and Research Affiliates, LLC (“Research Affiliates”) for an additional one-year term through August 31, 2019.

The information, material factors and conclusions that formed the basis for the Board’s approvals are summarized below.

1. INFORMATION RECEIVED

(a) Materials Reviewed:  During the course of the past year, the Trustees received a wide variety of materials relating to the services provided by PIMCO and Research Affiliates to the Trust. At each of its quarterly meetings, the Board reviewed the Portfolios’ investment performance and a significant amount of information relating to Portfolio operations, including shareholder services, valuation and custody, the Portfolios’ compliance program and other information relating to the nature, extent and quality of services provided by PIMCO and Research Affiliates to the Trust and each of the Portfolios, as applicable. In considering whether to approve the renewal of the Agreements and the Asset Allocation Agreement, the Board reviewed additional information, including, but not limited to, comparative industry data with regard to investment performance, advisory and supervisory and administrative fees and expenses, financial information for PIMCO and, where relevant, Research Affiliates, information regarding the profitability to PIMCO of its relationship with the Portfolios, information about the personnel providing investment management services, other advisory services and supervisory and administrative services to the Portfolios, and information about the fees

charged and services provided to other clients with similar investment mandates as the Portfolios, where applicable. In addition, the Board reviewed materials provided by counsel to the Trust and the Independent Trustees, which included, among other things, memoranda outlining legal duties of the Board in considering the renewal of the Agreements and the Asset Allocation Agreement.

(b) Review Process:  In connection with considering the renewal of the Agreements and the Asset Allocation Agreement, the Board reviewed written materials prepared by PIMCO and, where applicable, Research Affiliates in response to requests from counsel to the Trust and the Independent Trustees encompassing a wide variety of topics. The Board requested and received assistance and advice regarding, among other things, applicable legal standards from counsel to the Trust and the Independent Trustees, and reviewed comparative fee and performance data prepared at the Board’s request by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company performance information and fee and expense data. The Board received information on matters related to the Agreements and the Asset Allocation Agreement and met both as a full Board and in a separate session of the Independent Trustees, without management present, at the August 20-21, 2018 meeting. The Independent Trustees also conducted in-person meetings with counsel to the Trust and the Independent Trustees, including one on July 18, 2018, to discuss the Lipper Report, as defined below, and certain aspects of the 2018 15(c) materials presented and other matters deemed relevant to their consideration of the renewal of the Agreements and the Asset Allocation Agreement. In connection with its review of the Agreements, the Board received comparative information on the performance and the fees and expenses of other peer group funds and share classes. In addition, the Independent Trustees requested and received supplemental information.

The approval determinations were made on the basis of each Trustee’s business judgment after consideration and evaluation of all the information presented. Individual Trustees may have given different weights to certain factors and assigned various degrees of materiality to information received in connection with the approval process. In deciding to approve the renewal of the Agreements and the Asset Allocation Agreement, the Board did not identify any single factor or particular information that, in isolation, was controlling. The discussion below is intended to summarize the broad factors and information that figured prominently in the Board’s consideration of the renewal of the Agreements and the Asset Allocation Agreement, but is not intended to summarize all of the factors considered by the Board.

2. NATURE, EXTENT AND QUALITY OF SERVICES

(a) PIMCO, Research Affiliates, their Personnel, and Resources:  The Board considered the depth and quality of PIMCO’s investment management process, including: the experience, capability and integrity

52 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

of its senior management and other personnel; the overall financial strength and stability of its organization; and the ability of its organizational structure to address changes in the Portfolios’ asset levels. The Board also considered the various services in addition to portfolio management that PIMCO provides under the Investment Advisory Contract. The Board noted that PIMCO makes available to its investment professionals a variety of resources and systems relating to investment management, compliance, trading, performance and portfolio accounting. The Board also noted PIMCO’s commitment to enhancing and investing in its global infrastructure, technology capabilities, risk management processes and the specialized talent needed to stay at the forefront of the competitive investment management industry and to strengthen its ability to deliver services under the Agreements. The Board considered PIMCO’s policies, procedures and systems reasonably designed to assure compliance with applicable laws and regulations and its commitment to further developing and strengthening these programs, its oversight of matters that may involve conflicts of interest between the Portfolios’ investments and those of other accounts managed by PIMCO, and its efforts to keep the Trustees informed about matters relevant to the Portfolios and their shareholders. The Board also considered PIMCO’s continuous investment in new disciplines and talented personnel, which has enhanced PIMCO’s services to the Portfolios and has allowed PIMCO to introduce innovative new portfolios over time. In addition, the Board considered the nature and quality of services provided by PIMCO to the wholly-owned subsidiaries of certain applicable Portfolios.

The Trustees considered that PIMCO has continued to strengthen the process it uses to actively manage counterparty risk and to assess the financial stability of counterparties with which the Portfolios do business, to manage collateral and to protect Portfolios from an unforeseen deterioration in the creditworthiness of trading counterparties. The Trustees noted that, consistent with its fiduciary duty, PIMCO executes transactions through a competitive best execution process and uses only those counterparties that meet its stringent and monitored criteria. The Trustees considered that PIMCO’s collateral management team utilizes a counterparty risk system to analyze portfolio level exposure and collateral being exchanged with counterparties.

In addition, the Trustees considered new services and service enhancements that PIMCO has implemented since the Board renewed the Agreements in 2017, including, but not limited to upgrading the global network and infrastructure to support trading and risk management systems; enhancing and continuing to expand capabilities within the pre-trade compliance platform; enhancing flexible client reporting capabilities to support increased differentiation within local markets; developing new application and database frameworks to support new trading strategies; expanding proprietary applications

suites to enrich capabilities across Compliance, Analytics, Risk Management, Client Reporting, Attribution and Customer Relationship management; continuing investment in its enterprise risk management function, including PIMCO’s cybersecurity program and global business continuity functions; oversight by the Americas Fund Oversight Committee, which provides senior-level oversight and supervision focused on new and ongoing fund-related business opportunities; engaging a third party service provider to implement the SEC reporting modernization regime; expanding the Fund Treasurer’s Office; enhancing a proprietary application to provide portfolio managers with more timely and high quality income reporting; developing a global tax management application that will enable investment professionals to access foreign market and security tax information on a real-time basis; enhancing reporting of tax reporting for portfolio managers for income products with improved transparency on tax factors impacting income generation and dividend yield; upgrading a proprietary application to allow shareholder subscription and redemption data to pass to portfolio managers more quickly and efficiently; and continuing to expand the pricing portal and the proprietary performance reconciliation tool.

Similarly, the Board considered the asset allocation services provided by Research Affiliates to the PIMCO All Asset Portfolio and PIMCO All Asset All Authority Portfolio. The Board further considered PIMCO’s oversight of Research Affiliates in connection with Research Affiliates providing asset allocation services to the Asset Portfolio and All Asset All Authority Portfolio. The Board also considered the depth and quality of Research Affiliates’ investment management and research capabilities, the experience and capabilities of its portfolio management personnel and the overall financial strength of the organization.

Ultimately, the Board concluded that the nature, extent and quality of services provided or procured by PIMCO under the Agreements and provided by Research Affiliates under the Asset Allocation Agreement are likely to continue to benefit the Portfolios and their respective shareholders, as applicable.

(b) Other Services:  The Board also considered the nature, extent and quality of supervisory and administrative services provided by PIMCO to the Portfolios under the Supervision and Administration Agreement.

The Board considered the terms of the Supervision and Administration Agreement, under which the Trust pays for the supervisory and administrative services provided pursuant to that agreement under what is essentially an all-in fee structure (the “unified fee”). In return, PIMCO provides or procures certain supervisory and administrative services and bears the costs of various third party services required by the Portfolios, including audit, custodial, portfolio accounting, legal, transfer agency, sub-accounting and printing costs. The Board noted that the scope and complexity, as well as the costs, of the supervisory

ANNUAL REPORT DECEMBER 31, 2018 53

Approval of Investment Advisory Contract and Other Agreements (Cont.)

and administrative services provided by PIMCO under the Supervision and Administration Agreement continue to increase. The Board considered PIMCO’s provision of supervisory and administrative services and its supervision of the Trust’s third party service providers to assure that these service providers continue to provide a high level of service relative to alternatives available in the market.

Ultimately, the Board concluded that the nature, extent and quality of the services provided by PIMCO has benefited, and will likely continue to benefit, the Portfolios and their shareholders.

3. INVESTMENT PERFORMANCE

The Board reviewed information from PIMCO concerning the Portfolios’ performance, as available, over short- and long-term periods ended March 31, 2018 and other performance data, as available, over short- and long-term periods ended June 30, 2018 (the “PIMCO Report”) and from Broadridge concerning the Portfolios’ performance, as available, over short- and long-term periods ended March 31, 2018 (the “Lipper Report”).

The Board considered information regarding both the short- and long-term investment performance of each Portfolio relative to its peer group and relevant benchmark index as provided to the Board in advance of each of its quarterly meetings throughout the year, including the PIMCO Report and Lipper Report, which were provided in advance of the August 20-21, 2018 meeting. The Trustees noted that many of the Portfolios outperformed their respective Lipper medians on a net-of-fees basis over the three-, five- and ten-year periods ended March 31, 2018. The Board also noted that, as of March 31, 2018, the Administrative Class of 72%, 35% and 73% of the Portfolios outperformed their respective Lipper category median on a net-of-fees basis over the three-, five- and ten-year periods, respectively. The Trustees considered that other classes of each Portfolio would have substantially similar performance to that of the Administrative Class of the relevant Portfolio on a relative basis because all of the classes are invested in the same portfolio of investments and that differences in performance among classes could principally be attributed to differences in the supervisory and administrative fees and distribution and servicing expenses of each class. The Board also considered that the investment objectives of certain of the Portfolios may not always be identical to those of the other funds in their respective peer groups and that the Lipper categories do not: separate funds based upon maturity or duration; account for the applicable Portfolios’ hedging strategies; distinguish between enhanced index and actively managed equity strategies; include as many subsets as the Portfolios offer (i.e., Portfolios may be placed in a “catch-all” Lipper category to which they do not properly belong); or account for certain fee waivers. The Board noted that, due to these differences, performance comparisons between certain of the Portfolios and their so-called peers may not be

particularly relevant to the consideration of Portfolio performance but found the comparative information supported its overall evaluation.

The Board noted that performance for a majority of the Portfolios has been mixed compared to their respective benchmark indexes over the five-year period ended March 31, 2018. The Board noted that, as of March 31, 2018, 70%, 23% and 92% of the Trust’s assets (based on Administrative Class performance) outperformed their respective benchmarks on a net-of-fees basis over the three-, five- and ten-year periods, respectively. The Board also discussed actions that have been taken by PIMCO to attempt to improve performance and took note of PIMCO’s plans to monitor performance going forward.

The Board considered PIMCO’s discussion of the intensive nature of managing bond funds, noting that it requires the management of a number of factors, including: varying maturities; prepayments; collateral management; counterparty management; pay-downs; credit and corporate events; workouts; derivatives; net new issuance in the bond market; and decreased market maker inventory levels. The Board noted that in addition to managing these factors, PIMCO must also balance risk controls and strategic positions in each portfolio it manages, including the Portfolios. Despite these challenges, the Board noted PIMCO’s ability to generate non-market correlated excess performance for its clients over time, including the Trust.

The Board ultimately concluded, within the context of all of its considerations in connection with the Agreements, that PIMCO’s performance record and process in managing the Portfolios indicates that its continued management is likely to benefit the Portfolios and their shareholders, and merits the approval of the renewal of the Agreements.

4. ADVISORY FEES, SUPERVISORY AND ADMINISTRATIVE FEES AND TOTAL EXPENSES

The Board considered that PIMCO seeks to price new funds and classes to scale. PIMCO reported to the Board that, in proposing fees for any Portfolio or class of shares, it considers a number of factors, including, but not limited to, the type and complexity of the services provided, the cost of providing services, the risk assumed by PIMCO in the development of products and the provision of services and the competitive marketplace for financial products. Fees charged to or proposed for different Portfolios for advisory services and supervisory and administrative services may vary in light of these various factors. The Board considered that portfolio pricing generally is not driven by comparison to passively-managed products.

In addition, PIMCO reported to the Board that it periodically reviews the fees charged to the Portfolios. The Board noted that, based upon this review, PIMCO may propose advisory fee or supervisory and administrative fee changes where (i) a Portfolio’s long-term performance warrants additional consideration; (ii) there is a notable aid to market

54 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

position; (iii) a Portfolio’s fee does not reflect the current level of supervision or administrative fees provided to the Portfolio; or (iv) PIMCO would like to change a Portfolio’s overall strategic positioning.

The Board reviewed the advisory fees, supervisory and administrative fees and total expenses of the Portfolios (each as a percentage of average net assets) and compared such amounts with the average and median fee and expense levels of other similar funds. The Board also reviewed information relating to the sub-advisory fees paid to Research Affiliates with respect to applicable Portfolios, taking into account that PIMCO compensates Research Affiliates from the advisory fees paid by such Portfolios to PIMCO. With respect to advisory fees, the Board reviewed data from Broadridge that compared the average and median advisory fees of other funds in a “Peer Group” of comparable funds, as well as the universe of other similar funds. The Board noted that a number of Portfolios have total expense ratios that fall below the average and median expense ratios in their Peer Group and Lipper universe. In addition, the Board considered fee waivers in place for certain of the Portfolios and also noted the fee waivers in place with respect to the advisory fee and supervisory and administrative fee that might result from investments by applicable Portfolios in their respective wholly-owned subsidiaries. The Board also considered that PIMCO reviews the Portfolios’ fee levels and carefully considers changes where appropriate.

The Board also reviewed data comparing the Portfolios’ advisory fees to the standard and negotiated fee rates PIMCO charges to separate accounts, collective investment trusts and sub-advised clients with similar investment strategies. In cases where the fees for other clients were lower than those charged to the Portfolios, the Trustees noted that the differences in fees were attributable to various factors, including, but not limited to, differences in the advisory and other services provided by PIMCO to the Portfolios, differences in the number or extent of the services provided by PIMCO to the Portfolios, the manner in which similar portfolios may be managed, different requirements with respect to liquidity management and the implementation of other regulatory requirements, and the fact that separate accounts may have other contractual arrangements or arrangements across PIMCO strategies that justify different levels of fees. The Board considered that, with respect to collective investment trusts, PIMCO performs fewer or less extensive services because collective investment trusts are generally exempt from SEC regulation; investors in a collective investment trust may receive shareholder services from a trustee bank, rather than PIMCO; collective investment trusts have less regulatory disclosure; and the management structure of collective investment trusts differs from that of funds. The Trustees also considered that PIMCO faces increased entrepreneurial, legal and regulatory risk in sponsoring and managing mutual funds and ETFs as compared to separate accounts, external sub-advised funds or other investment products.

Regarding advisory fees charged by PIMCO in its capacity as sub-adviser to third party/unaffiliated funds, the Trustees took into account that such fees may be lower than the fees charged by PIMCO to serve as adviser to the Portfolios. The Trustees also took into account that there are various reasons for any such differences in fees, including, but not limited to, the fact that PIMCO may be subject to varying levels of entrepreneurial risk and regulatory requirements, differing legal liabilities on a contract-by-contract basis and different servicing requirements when PIMCO does not serve as the sponsor of a fund and is not principally responsible for all aspects of a fund’s investment program and operations as compared to when PIMCO serves as investment adviser and sponsor.

The Board considered the Portfolios’ supervisory and administrative fees, comparing them to similar funds in the report supplied by Broadridge. The Board also considered that as the Portfolios’ business has become increasingly complex and the number of Portfolios has grown over time, PIMCO has provided an increasingly broad array of fund supervisory and administrative functions. In addition, the Board considered the Trust’s unified fee structure, under which the Trust pays for the supervisory and administrative services it requires for one set fee. In return for this unified fee, PIMCO provides or procures supervisory and administrative services and bears the costs of various third party services required by the Portfolios, including audit, custodial, portfolio accounting, legal, transfer agency, sub-accounting and printing costs. The Board further considered that many other funds pay for comparable services separately, and thus it is difficult to directly compare the Trust’s unified supervisory and administrative fees with the fees paid by other funds for administrative services alone. The Board also considered that the unified supervisory and administrative fee leads to Portfolio fees that are fixed over the contract period, rather than variable. The Board noted that, although the unified fee structure does not have breakpoints, it implicitly reflects economies of scale by fixing the absolute level of Portfolio fees at competitive levels over the contract period even if the Portfolios’ operating costs rise when assets remain flat or decrease. Other factors the Board considered in assessing the unified fee include PIMCO’s approach of pricing Portfolios to scale at inception and reinvesting in other important areas of the business that support the Portfolios. The Board considered that the Portfolios’ unified fee structure meant that fees were not impacted by recent outflows in certain Portfolios, unlike funds without a unified fee structure, which may see increased expense ratios when fixed costs, such as service provider costs, are passed through to a smaller asset base. The Board considered historical advisory and supervisory and administrative fee reductions implemented for different Portfolios and classes, noting that the unified fee can be increased or decreased in subsequent contractual periods and is subject to the periodic reviews discussed above. The Board noted that, with few exceptions, PIMCO

ANNUAL REPORT DECEMBER 31, 2018 55

Approval of Investment Advisory Contract and Other Agreements (Cont.)

has generally maintained Portfolio fees at the same level as implemented when the unified fee was adopted, and has reduced fees for a number of Portfolios in prior years. The Board concluded that the Portfolios’ supervisory and administrative fees were reasonable in relation to the value of the services provided, including the services provided to different classes of shareholders, and that the expenses assumed contractually by PIMCO under the Supervision and Administration Agreement represent, in effect, a cap on overall Portfolio fees during the contractual period, which is beneficial to the Portfolios and their shareholders.

The Board considered the Portfolios’ total expenses and discussed with PIMCO those Portfolios and/or classes of Portfolios that had above median total expenses. The Board noted that many of the Portfolios are unique products that have few peers, if any, and cannot easily be grouped with comparable funds. Upon comparing the Portfolios’ total expenses to other funds in the “Peer Groups” provided by Broadridge, the Board found total expenses of each Portfolio to be reasonable.

The Trustees also considered the advisory fees charged to the Portfolios that operate as funds of funds (the “Funds of Funds”) and the advisory services provided in exchange for such fees. The Trustees determined that such services were in addition to the advisory services provided to the underlying funds in which the Funds of Funds may invest and, therefore, such services were not duplicative of the advisory services provided to the underlying funds. The Board also considered the various fee waiver agreements in place for the Funds of Funds. The Board noted that PIMCO is continuing waivers for these Funds of Funds, as well as for certain other Portfolios of the Trust.

Based on the information presented by PIMCO, Research Affiliates and Broadridge, members of the Board determined, in the exercise of their business judgment, that the level of the advisory fees and supervisory and administrative fees charged by PIMCO under the Agreements, as well as the total expenses of each Portfolio, after the proposals to decrease the management fee, are reasonable.

5. ADVISER COSTS, LEVEL OF PROFITS AND ECONOMIES OF SCALE

The Board reviewed information regarding PIMCO’s costs of providing services to the Funds as a whole, as well as the resulting level of profits to PIMCO under both the adjusted asset profitability method and the profit and loss profitability method, which were each utilized to calculate profitability. To the extent applicable, the Board also reviewed information regarding the portion of a Portfolio’s advisory fee retained by PIMCO, following the payment of sub-advisory fees to Research Affiliates, with respect to the Portfolio. Additionally, the Board noted that profit margins with respect to the Trust shows that the Trust is profitable, although less so than PIMCO Funds due to payments made

by PIMCO to participating insurance companies. The Board further noted PIMCO’s engagement of a third party to review and to make recommendations regarding PIMCO’s processes supporting its profitability estimation materials. The Board also noted that it had received information regarding the structure and manner in which PIMCO’s investment professionals were compensated, and PIMCO’s view of the relationship of such compensation to the attraction and retention of quality personnel. The Board considered PIMCO’s need to invest in global infrastructure, technology capabilities, risk management processes and qualified personnel to reinforce and offer new services and to accommodate changing regulatory requirements.

With respect to potential economies of scale, the Board noted that PIMCO shares the benefits of economies of scale with the Portfolios and their shareholders in a number of ways, including investing in portfolio and trade operations management, firm technology, middle and back office support, legal and compliance, and fund administration logistics, senior management supervision, governance and oversight of those services, and through fee reductions or waivers, the pricing of Portfolios to scale from inception, and the enhancement of services provided to the Portfolios in return for fees paid. The Board reviewed the history of the Portfolios’ fee structure. The Board considered that the Portfolios’ unified fee rates had been set competitively and/or priced to scale from inception, had been held steady during the contractual period at that scaled competitive rate for most Portfolios as assets grew, or as assets declined in the case of some Portfolios, and continued to be competitive compared with peers. The Board also considered that the unified fee is a transparent means of informing a Portfolio’s shareholders of the fees associated with the Portfolio, and that the Portfolio bears certain expenses that are not covered by the advisory fee or the unified fee. The Board further considered the challenges that arise when managing large funds, which can result in certain “diseconomies” of scale and noted that PIMCO has continued to reinvest in many areas of the business to support the Portfolios.

The Trustees considered that the unified fee has provided inherent economies of scale because a Portfolio maintains competitive fixed fees over the annual contract period even if the particular Portfolio’s assets decline and/or operating costs rise. The Trustees further considered that, in contrast, breakpoints may be a proxy for charging higher fees on lower asset levels and that when a fund’s assets decline, breakpoints may reverse, which causes expense ratios to increase. The Trustees also considered that, unlike the Portfolios’ unified fee structure, funds with “pass through” administrative fee structures may experience increased expense ratios when fixed dollar fees are charged against declining fund assets. The Trustees also considered that the unified fee protects shareholders from a rise in operating costs that may result from, among other things, PIMCO’s investments in various business enhancements and infrastructure, including those referenced above. The Trustees noted that PIMCO’s investments in these areas are extensive.

56 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

The Board concluded that the Portfolios’ cost structures were reasonable and that PIMCO is appropriately sharing economies of scale, if any, through the Portfolios’ unified fee structure, generally pricing Portfolios to scale at inception and reinvesting in its business to provide enhanced and expanded services to the Portfolios and their shareholders.

6. ANCILLARY BENEFITS

The Board considered other benefits realized by PIMCO and its affiliates as a result of PIMCO’s relationship with the Trust. Such benefits may include possible ancillary benefits to PIMCO’s institutional investment management business due to the reputation and market penetration of the Trust or third party service providers’ relationship-level fee concessions, which decrease fees paid by PIMCO. The Board also considered that affiliates of PIMCO provide distribution and/or shareholder services to the Portfolios and their shareholders, for which they may be compensated through distribution and servicing fees paid pursuant to the Portfolios’ Rule 12b-1 plans or otherwise. The Board reviewed PIMCO’s soft dollar policies and procedures, noting that while PIMCO has the authority to receive the benefit of research provided by broker-dealers executing portfolio transactions on behalf of the Portfolios, it has adopted a policy not to enter into contractual soft dollar arrangements.

7. CONCLUSIONS

Based on their review, including their comprehensive consideration and evaluation of each of the broad factors and information summarized above, the Independent Trustees and the Board as a whole concluded that the nature, extent and quality of the services rendered to the Portfolios by PIMCO and Research Affiliates supported the renewal of the Agreements and the Asset Allocation Agreement. The Independent Trustees and the Board as a whole concluded that the Agreements and the Asset Allocation Agreement continued to be fair and reasonable to the Portfolios and their shareholders, that the Portfolios’ shareholders received reasonable value in return for the fees paid to PIMCO by the Portfolios under the Agreements and the fees paid to Research Affiliates by PIMCO under the Asset Allocation Agreement, and that the renewal of the Agreements and the Asset Allocation Agreement was in the best interests of the Portfolios and their shareholders.

ANNUAL REPORT DECEMBER 31, 2018 57

General Information

Investment Adviser and Administrator

Pacific Investment Management Company LLC

650 Newport Center Drive

Newport Beach, CA 92660

Distributor

PIMCO Investments LLC

1633 Broadway

New York, NY 10019

Custodian

State Street Bank and Trust Company

801 Pennsylvania Avenue

Kansas City, MO 64105

Transfer Agent

DST Asset Manager Solutions, Inc.

430 W 7th Street STE 219024

Kansas City, MO 64105-1407

Legal Counsel

Dechert LLP

1900 K Street, N.W.

Washington, D.C. 20006

Independent Registered Public Accounting Firm

PricewaterhouseCoopers LLP

1100 Walnut Street, Suite 1300

Kansas City, MO 64106

This report is submitted for the general information of the shareholders of the PIMCO Variable Insurance Trust.

pimco.com/pvit

PVIT20AR_123118

PIMCO VARIABLE INSURANCE TRUST

Annual Report

December 31, 2018

PIMCO International Bond Portfolio (U.S. Dollar-Hedged)

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, you may not be receiving paper copies of the Portfolio’s shareholder reports from the insurance company that offers your contract unless you specifically request paper copies from the insurance company or from your financial intermediary. Instead, the shareholder reports will be made available on a website, and the insurance company will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the insurance company electronically by following the instructions provided by the insurance company.

You may elect to receive all future reports in paper free of charge from the insurance company. You should contact the insurance company if you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all portfolio companies available under your contract at the insurance company.

Table of Contents

	Page
Chairman’s Letter		2
Important Information About the PIMCO International Bond Portfolio (U.S. Dollar-Hedged)*		4
Portfolio Summary		6
Expense Example		7
Financial Highlights		8
Statement of Assets and Liabilities		10
Statement of Operations		11
Statements of Changes in Net Assets		12
Schedule of Investments		13
Notes to Financial Statements		32
Report of Independent Registered Public Accounting Firm		51
Glossary		52
Federal Income Tax Information		53
Management of the Trust		54
Privacy Policy		56
Approval of Investment Advisory Contract and Other Agreements		57

* Prior to July 30, 2018, the PIMCO International Bond Portfolio (U.S. Dollar-Hedged) was named the PIMCO Foreign Bond Portfolio (U.S. Dollar-Hedged).

This material is authorized for use only when preceded or accompanied by the current PIMCO Variable Insurance Trust (the “Trust”) prospectus for the Portfolio. (The variable product prospectus may be obtained by contacting your Investment Consultant.)

Chairman’s Letter

Dear PIMCO Variable Insurance Trust Shareholder,

Following this letter is the PIMCO Variable Insurance Trust Annual Report, which covers the 12-month reporting period ended December 31, 2018. On the subsequent pages you will find specific details regarding investment results and discussion of the factors that most affected performance during the reporting period.

For the 12-month reporting period ended December 31, 2018

The U.S. economy continued to expand during the reporting period. Looking back, U.S. gross domestic product (“GDP”) grew at an annual pace of 2.2% during the first quarter of 2018. During the second quarter of 2018, GDP growth rose to an annual pace of 4.2%, the strongest since the third quarter of 2014. GDP then expanded at an annual pace of 3.4% during the third quarter of the year. Finally, the Commerce Department’s initial reading for fourth-quarter 2018 GDP has been delayed due to the partial government shutdown.

The Federal Reserve (the “Fed”) continued to normalize monetary policy during the reporting period. During its meetings that concluded in March, June, September and December 2018, the Fed raised the federal funds rate in 0.25% increments. The Fed’s December rate hike pushed the federal funds rate to a range between 2.25% and 2.50%. In addition, the Fed continued to reduce its balance sheet during the reporting period.

Economic activity outside the U.S. initially accelerated during the reporting period, but moderated as it progressed. Against this backdrop, the European Central Bank (the “ECB”) and the Bank of Japan largely maintained their highly accommodative monetary policies, while other central banks took a more hawkish stance. The Bank of England raised rates at its meeting in August 2018 and the Bank of Canada raised rates twice during the reporting period. Meanwhile, the ECB ended its quantitative easing program in December 2018, but indicated that it does not expect to raise interest rates “at least through the summer of 2019.”

The U.S. Treasury yield curve flattened during the reporting period as short-term rates moved up more than longer-term rates. In our view, the increase in rates at the short end of the yield curve was mostly due to Fed interest rate increases. The yield on the benchmark 10-year U.S. Treasury note was 2.69% at the end of the reporting period, up from 2.40% on December 31, 2017. U.S. Treasuries, as measured by the Bloomberg Barclays U.S. Treasury Index, returned 0.86% over the 12 months ended December 31, 2018. Meanwhile, the Bloomberg Barclays U.S. Aggregate Bond Index, a widely used index of U.S. investment grade bonds, returned 0.01% over the period. Riskier fixed income asset classes, including high yield corporate bonds and emerging market debt, generated weak results versus the broad U.S. market. The ICE BofAML U.S. High Yield Index returned -2.27% over the reporting period, whereas emerging market external debt, as represented by the JPMorgan Emerging Markets Bond Index (EMBI) Global, returned -4.61% over the reporting period. Emerging market local bonds, as represented by the JPMorgan Government Bond Index-Emerging Markets Global Diversified Index (Unhedged), returned -6.21% over the period.

Global equities produced poor results during the reporting period. U.S. equities moved sharply higher over the first nine months of the period. We believe this rally was driven by a number of factors, including corporate profits that often exceeded expectations. However, U.S. equities fell sharply during the fourth quarter of 2018. We believe this was triggered by a number of factors, including signs of moderating global growth, concerns over future Fed rate hikes, the ongoing trade dispute between the U.S. and China and the partial U.S. government shutdown. All told, U.S. equities, as represented by the S&P 500 Index, returned -4.38% during the reporting period. Elsewhere, emerging market equities, as measured by the MSCI Emerging Markets Index, returned -14.58% during the reporting period, whereas global equities, as represented by the MSCI World Index, returned -8.71%. Elsewhere, Japanese equities, as represented by the Nikkei 225 Index (in JPY), returned -10.39% during the reporting period and European equities, as represented by the MSCI Europe Index (in EUR), returned -10.57%.

Commodity prices fluctuated and generally declined during the reporting period. When the reporting period began, West Texas crude oil was approximately $65 a barrel, but by the end it was roughly $45 a barrel. This was driven in

2 PIMCO VARIABLE INSURANCE TRUST

part by increased supply and declining global demand. Elsewhere, gold and copper prices also moved lower during the reporting period.

Finally, during the reporting period the foreign exchange markets experienced periods of volatility, due in part to signs of decoupling economic growth and central bank policies, along with a number of geopolitical events. The U.S. dollar produced mixed results against other major currencies during the reporting period. For example, the U.S. dollar appreciated 4.71% and 5.90% versus the euro and the British pound, respectively, whereas the U.S. dollar depreciated 2.66% versus the yen during the reporting period.

Thank you for the assets you have placed with us. We deeply value your trust, and we will continue to work diligently to meet your broad investment needs.

Sincerely,     Brent R. Harris Chairman of the Board,
PIMCO Variable Insurance Trust  

Past performance is no guarantee of future results. Unless otherwise noted, index returns reflect the reinvestment of income distributions and capital gains, if any, but do not reflect fees, brokerage commissions or other expenses of investing. It is not possible to invest directly in an unmanaged index.

ANNUAL REPORT DECEMBER 31, 2018 3

Important Information About the PIMCO International Bond Portfolio (U.S. Dollar-Hedged)

PIMCO Variable Insurance Trust (the “Trust”) is an open-end management investment company that includes the PIMCO International Bond Portfolio (U.S. Dollar-Hedged) (the “Portfolio”). The Portfolio is only available as a funding vehicle under variable life insurance policies or variable annuity contracts issued by insurance companies (“Variable Contracts”). Individuals may not purchase shares of the Portfolio directly. Shares of the Portfolio also may be sold to qualified pension and retirement plans outside of the separate account context.

We believe that bond funds have an important role to play in a well-diversified investment portfolio. It is important to note, however, that in an environment where interest rates may trend upward, rising rates would negatively impact the performance of most bond funds, and fixed income securities and other instruments held by the Portfolio are likely to decrease in value. A wide variety of factors can cause interest rates to rise (e.g., central bank monetary policies, inflation rates, general economic conditions, etc.). In addition, changes in interest rates can be sudden and unpredictable, and there is no guarantee that management will anticipate such movement accurately. The Portfolio may lose money as a result of movements in interest rates.

As of the date of this report, interest rates in the U.S. and many parts of the world, including certain European countries, are at or near historically low levels. Thus, the Portfolio currently faces a heightened level of interest rate risk, especially since the Fed has ended its quantitative easing program and has begun, and may continue, to raise interest rates. To the extent the Fed continues to raise interest rates, there is a risk that rates across the financial system may rise. Further, while bond markets have steadily grown over the past three decades, dealer inventories of corporate bonds are near historic lows in relation to market size. As a result, there has been a significant reduction in the ability of dealers to “make markets.”

Bond funds and individual bonds with a longer duration (a measure used to determine the sensitivity of a security’s price to changes in interest rates) tend to be more sensitive to changes in interest rates, usually making them more volatile than securities or funds with shorter durations. All of the factors mentioned above, individually or collectively, could lead to increased volatility and/or lower liquidity in the fixed income markets or negatively impact the Portfolio’s performance or cause the Portfolio to incur losses. As a result, the Portfolio may

experience increased shareholder redemptions which, among other things, could further reduce the net assets of the Portfolio.

The Portfolio may be subject to various risks as described in the Portfolio’s prospectus and in the Principal Risks in the Notes to Financial Statements.

The geographical classification of foreign (non-U.S.) securities in this report are classified by the country of incorporation of a holding. In certain instances, a security’s country of incorporation may be different from its country of economic exposure.

The United States presidential administration’s enforcement of tariffs on goods from other countries, with a focus on China, has contributed to international trade tensions and may impact portfolio securities.

The United Kingdom’s decision to leave the European Union may impact Portfolio returns. This decision may cause substantial volatility in foreign exchange markets, lead to weakness in the exchange rate of the British pound, result in a sustained period of market uncertainty, and destabilize some or all of the other European Union member countries and/or the Eurozone.

On the Portfolio Summary page in this Shareholder Report, the Average Annual Total Return table and Cumulative Returns chart measure performance assuming that any dividend and capital gain distributions were reinvested. The Cumulative Returns chart reflects only Administrative Class performance. Performance may vary by share class based on each class’s expense ratios. The Portfolio measures its performance against at least one broad-based securities market index (“benchmark index”). The benchmark index does not take into account fees, expenses, or taxes. The Portfolio’s past performance, before and after taxes, is not necessarily an indication of how the Portfolio will perform in the future. There is no assurance that the Portfolio, even if the Portfolio has experienced high or unusual performance for one or more periods, will experience similar levels of performance in the future. High performance is defined as a significant increase in either 1) the Portfolio’s total return in excess of that of the Portfolio’s benchmark between reporting periods or 2) the Portfolio’s total return in excess of the Portfolio’s historical returns between reporting periods. Unusual performance is defined as a significant change in the Portfolio’s performance as compared to one or more previous reporting periods.

The following table discloses the inception dates of the Portfolio and its respective share classes along with the Portfolio’s diversification status as of period end:

Portfolio Name	Portfolio Inception		Institutional Class		Administrative Class		Advisor Class		Diversification Status
PIMCO International Bond Portfolio (U.S. Dollar-Hedged)		02/16/99		04/10/00		02/16/99		04/30/14		Non-diversified

4 PIMCO VARIABLE INSURANCE TRUST

An investment in the Portfolio is not a bank deposit and is not guaranteed or insured by the Federal Deposit Insurance Corporation (“FDIC”) or any other government agency. It is possible to lose money on investments in the Portfolio.

The Trustees are responsible generally for overseeing the management of the Trust. The Trustees authorize the Trust to enter into service agreements with the Adviser, the Distributor, the Administrator and other service providers in order to provide, and in some cases authorize service providers to procure through other parties, necessary or desirable services on behalf of the Trust and the Portfolio. Shareholders are not parties to or third-party beneficiaries of such service agreements. Neither this Portfolio’s prospectus nor summary prospectus, the Trust’s Statement of Additional Information (“SAI”), any contracts filed as exhibits to the Trust’s registration statement, nor any other communications, disclosure documents or regulatory filings (including this report) from or on behalf of the Trust or the Portfolio creates a contract between or among any shareholder of the Portfolio, on the one hand, and the Trust, the Portfolio, a service provider to the Trust or the Portfolio, and/or the Trustees or officers of the Trust, on the other hand. The Trustees (or the Trust and its officers, service providers or other delegates acting under authority of the Trustees) may amend the most recent prospectus or use a new prospectus, summary prospectus or SAI with respect to the Portfolio or the Trust, and/or amend, file and/or issue any other communications, disclosure documents or regulatory filings, and may amend or enter into any contracts to which the Trust or the Portfolio is a party, and interpret the investment objective(s), policies, restrictions and contractual provisions applicable to the Portfolio, without shareholder input or approval, except in circumstances in which shareholder approval is specifically required by law (such as changes to fundamental investment policies) or where a shareholder approval requirement is specifically disclosed in the Trust’s then-current prospectus or SAI.

PIMCO has adopted written proxy voting policies and procedures (“Proxy Policy”) as required by Rule 206(4)-6 under the Investment Advisers Act of 1940, as amended. The Proxy Policy has been adopted by the Trust as the policies and procedures that PIMCO will use when voting proxies on behalf of the Portfolio. A description of the policies and procedures that PIMCO uses to vote proxies relating to portfolio securities of the Portfolio, and information about how the Portfolio voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, are available without charge, upon request, by calling the Trust at (888) 87-PIMCO, on the Portfolio’s website at www.pimco.com/pvit, and on the Securities and Exchange Commission’s (“SEC”) website at www.sec.gov.

The Trust files a complete schedule of the Portfolio’s holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. A copy of the Portfolio’s Form N-Q is available on the SEC’s website at www.sec.gov. A copy of the Portfolio’s Form N-Q is also available without charge, upon request, by calling the Trust at (888) 87-PIMCO and on the Portfolio’s website at www.pimco.com/pvit.

The SEC adopted a rule that, beginning in 2021, generally will allow shareholder reports to be delivered to investors by providing access to such reports online free of charge and by mailing a notice that the report is electronically available. Pursuant to the rule, investors may still elect to receive a complete shareholder report in the mail. Instructions for electing to receive paper copies of the Portfolio’s shareholder reports going forward may be found on the front cover of this report.

The SEC adopted amendments to certain disclosure requirements relating to open-end investment companies’ liquidity risk management programs. Effective December 1, 2019, large fund complexes will be required to include in their shareholder reports a discussion of their liquidity risk management programs’ operations over the past year.

ANNUAL REPORT DECEMBER 31, 2018 5

PIMCO International Bond Portfolio (U.S. Dollar-Hedged)

Cumulative Returns Through December 31, 2018

$10,000 invested at the end of the month when the Portfolio’s Administrative Class commenced operations.

Geographic Breakdown as of 12/31/2018^†§

United States‡	45.9%
United Kingdom	8.4%
Sweden	4.2%
Japan	3.9%
Canada	3.4%
France	3.2%
Cayman Islands	2.6%
Spain	2.6%
Denmark	2.5%
Italy	1.9%
Netherlands	1.6%
Saudi Arabia	1.6%
Ireland	1.2%
Slovenia	1.1%
Qatar	1.0%
Other	5.9%

^†  % of Investments, at value.

^§  Geographic Breakdown and % of investments exclude securities sold short, financial derivative instruments and short-term instruments, if any.

^‡  Includes Central Funds Used for Cash Management Purposes.

Average Annual Total Return for the period ended December 31, 2018
		1 Year		5 Years		10 Years		Inception≈
	PIMCO International Bond Portfolio (U.S. Dollar-Hedged) Institutional Class		2.27%		4.65%		6.55%		5.58%
	PIMCO International Bond Portfolio (U.S. Dollar-Hedged) Administrative Class		2.12%		4.49%		6.39%		5.18%
	PIMCO International Bond Portfolio (U.S. Dollar-Hedged) Advisor Class		2.02%		—		—		3.94%
	Bloomberg Barclays Global Aggregate ex-USD (USD Hedged) Index±		3.17%		4.11%		3.98%		4.51%¨

All Portfolio returns are net of fees and expenses.

^≈ For class inception dates please refer to the Important Information.

^¨ Average annual total return since 02/28/1999.

^± Bloomberg Barclays Global Aggregate ex-USD (USD Hedged) Index provides a broad-based measure of the global investment-grade fixed income markets. The major components of this index are the Pan-European Aggregate and the Asian-Pacific Aggregate Indices. The index also includes Eurodollar and Euro-Yen corporate bonds and Canadian Government securities.

It is not possible to invest directly in an unmanaged index.

Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. The Portfolio’s performance does not reflect the deduction of additional charges and expenses imposed in connection with investing in Variable Contracts, which will reduce returns. Differences in the Portfolio’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the prices of individual positions (which may be sourced from different pricing vendors or other sources) used by the Portfolio and the index. For performance current to the most recent month-end, visit www.pimco.com/pvit or via (888) 87-PIMCO.

The Portfolio’s total annual operating expense ratio in effect as of period end were 0.78% for Institutional Class shares, 0.93% for Administrative Class shares, and 1.03% for Advisor Class shares. Details regarding any changes to the Portfolio’s operating expenses, subsequent to period end, can be found in the Portfolio’s current prospectus, as supplemented.

Investment Objective and Strategy Overview

PIMCO International Bond Portfolio (U.S. Dollar-Hedged) seeks maximum total return, consistent with preservation of capital and prudent investment management, by investing under normal circumstances at least 80% of its assets in Fixed Income Instruments that are economically tied to at least three non-U.S. countries. The Portfolio’s investments in Fixed Income Instruments may be represented by forwards or derivatives such as options, futures contracts or swap agreements. “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 Portfolio will normally limit its foreign currency exposure (from non-U.S. dollar-denominated securities or currencies) to 20% of its assets. Portfolio strategies may change from time to time. Please refer to the Portfolio’s current prospectus for more information regarding the Portfolio’s strategy.

Portfolio Insights

The following affected performance during the reporting period:

» Overweight exposure to German and core eurozone duration contributed to performance relative to the benchmark.

» Positions in non-agency mortgage-backed securities contributed to relative performance, as these securities generated positive total returns.

» Underweight exposure to investment grade corporate credit contributed to relative performance, as spreads widened.

» Long exposure to a basket of emerging market currencies detracted from relative performance, as the MSCI Emerging Markets Currency index, which generally captures the overall performance of a basket of emerging market currencies, declined relative to the U.S. dollar.

» Holdings of sovereign emerging market external debt detracted from relative performance, as the JP Morgan Emerging Market Bond Index, which generally tracks the total return of emerging market external debt, fell.

» Underweight exposure to French duration detracted from performance relative to the benchmark, as rates fell.

6 PIMCO VARIABLE INSURANCE TRUST

Expense Example PIMCO International Bond Portfolio (U.S. Dollar-Hedged)

Example

As a shareholder of the Portfolio, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees (if applicable), and other Portfolio expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in the Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds.

The Expense Example does not reflect any fees or other expenses imposed by the Variable Contracts. If it did, the expenses reflected in the Expense Example would be higher. The Example is based on an investment of $1,000 invested at the beginning of the period and held from July 1, 2018 to December 31, 2018 unless noted otherwise in the table and footnotes below.

Actual Expenses

The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60), then multiply the result by the number in the appropriate row for your share class, in the column titled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other portfolios. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other portfolios.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information under the heading “Hypothetical (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different portfolios. In addition, if these transactional costs were included, your costs would have been higher.

Expense ratios may vary period to period because of various factors, such as an increase in expenses that are not covered by the management fees such as fees and expenses of the independent trustees and their counsel, extraordinary expenses and interest expense.

	Actual						Hypothetical (5% return before expenses)
	Beginning Account Value (07/01/18)		Ending Account Value (12/31/18)		Expenses Paid During Period*		Beginning Account Value (07/01/18)		Ending Account Value (12/31/18)		Expenses Paid During Period*		Net Annualized Expense Ratio**
Institutional Class	$	1,000.00	$	1,006.10	$	4.15	$	1,000.00	$	1,021.07	$	4.18		0.82	%
Administrative Class		1,000.00		1,005.40		4.90		1,000.00		1,020.32		4.94		0.97
Advisor Class		1,000.00		1,004.80		5.41		1,000.00		1,019.81		5.45		1.07

* Expenses Paid During Period are equal to the net annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Overall fees and expenses of investing in the Portfolio will be higher because the example does not reflect variable contract fees and expenses.

** Net Annualized Expense Ratio is reflective of any applicable contractual fee waivers and/or expense reimbursements or voluntary fee waivers. Details regarding fee waivers, if any, can be found in Note 9, Fees and Expenses, in the Notes to Financial Statements.

ANNUAL REPORT DECEMBER 31, 2018 7

Financial Highlights PIMCO International Bond Portfolio (U.S. Dollar-Hedged)

			Investment Operations							Less Distributions(b)
Selected Per Share Data for the Year or Period Ended^:	Net Asset Value Beginning of Year or Period		Net Investment Income (Loss)(a)		Net Realized/ Unrealized Gain (Loss)			Total		From Net Investment Income			From Net Realized Capital Gain			Total
Institutional Class
12/31/2018	$	10.79	$	0.20	$	0.05		$	0.25	$	(0.16	)	$	(0.04	)	$	(0.20	)
12/31/2017		11.02		0.15		0.17			0.32		(0.55	)		0.00			(0.55	)
12/31/2016		10.54		0.16		0.54			0.70		(0.18	)		(0.04	)		(0.22	)
12/31/2015		10.90		0.13		(0.09	)		0.04		(0.35	)		(0.05	)		(0.40	)
12/31/2014		10.05		0.21		0.92			1.13		(0.21	)		(0.07	)		(0.28	)
Administrative Class
12/31/2018		10.79		0.18		0.05			0.23		(0.14	)		(0.04	)		(0.18	)
12/31/2017		11.02		0.13		0.17			0.30		(0.53	)		0.00			(0.53	)
12/31/2016		10.54		0.14		0.54			0.68		(0.16	)		(0.04	)		(0.20	)
12/31/2015		10.90		0.10		(0.07	)		0.03		(0.34	)		(0.05	)		(0.39	)
12/31/2014		10.05		0.18		0.93			1.11		(0.19	)		(0.07	)		(0.26	)
Advisor Class
12/31/2018		10.79		0.17		0.05			0.22		(0.13	)		(0.04	)		(0.17	)
12/31/2017		11.02		0.12		0.17			0.29		(0.52	)		0.00			(0.52	)
12/31/2016		10.54		0.13		0.54			0.67		(0.15	)		(0.04	)		(0.19	)
12/31/2015		10.90		0.10		(0.08	)		0.02		(0.33	)		(0.05	)		(0.38	)
04/30/2014 - 12/31/2014		10.34		0.13		0.62			0.75		(0.12	)		(0.07	)		(0.19	)

^ A zero balance may reflect actual amounts rounding to less than $0.01 or 0.01%.

* Annualized

^(a)  Per share amounts based on average number of shares outstanding during the year or period.

^(b)  The tax characterization of distributions is determined in accordance with Federal income tax regulations. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

8 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

					Ratios/Supplemental Data
							Ratios to Average Net Assets
Net Asset Value End of Year or Period		Total Return			Net Assets End of Year or Period (000s)		Expenses			Expenses Excluding Waivers			Expenses Excluding Interest Expense			Expenses Excluding Interest Expense and Waivers			Net Investment Income (Loss)			Portfolio Turnover Rate
$	10.84		2.27	%	$	7,483		0.81	%		0.81	%		0.75	%		0.75	%		1.85	%		185	%
	10.79		2.92			6,705		0.78			0.78			0.75			0.75			1.37			158
	11.02		6.63			5,045		0.78			0.78			0.75			0.75			1.46			330
	10.54		0.44			3,001		0.75			0.75			0.75			0.75			1.15			302
	10.90		11.32			879		0.76			0.76			0.75			0.75			1.99			176
	10.84		2.12			78,640		0.96			0.96			0.90			0.90			1.70			185
	10.79		2.76			76,989		0.93			0.93			0.90			0.90			1.21			158
	11.02		6.48			64,537		0.93			0.93			0.90			0.90			1.31			330
	10.54		0.29			73,278		0.90			0.90			0.90			0.90			0.90			302
	10.90		11.16			89,343		0.91			0.91			0.90			0.90			1.73			176
	10.84		2.02			444,881		1.06			1.06			1.00			1.00			1.59			185
	10.79		2.66			431,545		1.03			1.03			1.00			1.00			1.11			158
	11.02		6.37			341,567		1.03			1.03			1.00			1.00			1.21			330
	10.54		0.19			221,379		1.00			1.00			1.00			1.00			0.90			302
	10.90		7.31			69,716		1.01	*		1.01	*		1.00	*		1.00	*		1.79	*		176

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 9

Statement of Assets and Liabilities PIMCO International Bond Portfolio (U.S. Dollar-Hedged)

(Amounts in thousands†, except per share amounts)	December 31, 2018
Assets:
Investments, at value
Investments in securities*	$	597,110
Investments in Affiliates		18,179
Financial Derivative Instruments
Exchange-traded or centrally cleared		668
Over the counter		3,518
Cash		9
Deposits with counterparty		2,693
Foreign currency, at value		3,594
Receivable for investments sold		23,360
Receivable for TBA investments sold		58,887
Receivable for Portfolio shares sold		195
Interest and/or dividends receivable		3,194
Dividends receivable from Affiliates		41
Other assets		3
Total Assets		711,451
Liabilities:
Borrowings & Other Financing Transactions
Payable for reverse repurchase agreements	$	8,646
Payable for short sales		5,621
Financial Derivative Instruments
Exchange-traded or centrally cleared		1,164
Over the counter		5,096
Payable for investments purchased		17,797
Payable for investments in Affiliates purchased		41
Payable for TBA investments purchased		139,986
Deposits from counterparty		1,457
Payable for Portfolio shares redeemed		207
Accrued investment advisory fees		110
Accrued supervisory and administrative fees		219
Accrued distribution fees		92
Accrued servicing fees		10
Other liabilities		1
Total Liabilities		180,447
Net Assets	$	531,004
Net Assets Consist of:
Paid in capital	$	527,721
Distributable earnings (accumulated loss)		3,283
Net Assets	$	531,004
Net Assets:
Institutional Class	$	7,483
Administrative Class		78,640
Advisor Class		444,881
Shares Issued and Outstanding:
Institutional Class		690
Administrative Class		7,255
Advisor Class		41,046
Net Asset Value Per Share Outstanding:
Institutional Class	$	10.84
Administrative Class		10.84
Advisor Class		10.84
Cost of investments in securities	$	599,589
Cost of investments in Affiliates	$	18,285
Cost of foreign currency held	$	3,526
Proceeds received on short sales	$	5,676
Cost or premiums of financial derivative instruments, net	$	6,503
* Includes repurchase agreements of:	$	381

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

10 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

Statement of Operations PIMCO International Bond Portfolio (U.S. Dollar-Hedged)

(Amounts in thousands†)	Year Ended December 31, 2018
Investment Income:
Interest, net of foreign taxes*	$	13,554
Dividends		13
Dividends from Investments in Affiliates		609
Total Income		14,176
Expenses:
Investment advisory fees		1,334
Supervisory and administrative fees		2,669
Servicing fees - Administrative Class		116
Distribution and/or servicing fees - Advisor Class		1,123
Trustee fees		15
Interest expense		312
Miscellaneous expense		3
Total Expenses		5,572
Net Investment Income (Loss)		8,604
Net Realized Gain (Loss):
Investments in securities		2,779
Investments in Affiliates		7
Net capital gain distributions received from Affiliate investments		13
Exchange-traded or centrally cleared financial derivative instruments		9,240
Over the counter financial derivative instruments		13,430
Short sales		(103	)
Foreign currency		(5,507	)
Net Realized Gain (Loss)		19,859
Net Change in Unrealized Appreciation (Depreciation):
Investments in securities		(16,998	)
Investments in Affiliates		(97	)
Exchange-traded or centrally cleared financial derivative instruments		(2,046	)
Over the counter financial derivative instruments		(2,333	)
Short sales		75
Foreign currency assets and liabilities		3,703
Net Change in Unrealized Appreciation (Depreciation)		(17,696	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	10,767
* Foreign tax withholdings	$	1

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 11

Statements of Changes in Net Assets PIMCO International Bond Portfolio (U.S. Dollar-Hedged)

(Amounts in thousands†)	Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets from:
Operations:
Net investment income (loss)	$	8,604		$	5,207
Net realized gain (loss)		19,859			1,892
Net change in unrealized appreciation (depreciation)		(17,696	)		5,210
Net Increase (Decrease) in Net Assets Resulting from Operations		10,767			12,309
Distributions to Shareholders:
From net investment income and/or net realized capital gains*
Institutional Class		(130	)		(321	)
Administrative Class		(1,265	)		(3,626	)
Advisor Class		(6,925	)		(19,788	)
Total Distributions(a)		(8,320	)		(23,735	)
Portfolio Share Transactions:
Net increase (decrease) resulting from Portfolio share transactions**		13,318			115,516
Total Increase (Decrease) in Net Assets		15,765			104,090
Net Assets:
Beginning of year		515,239			411,149
End of year	$	531,004		$	515,239

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

* See Note 2, New Accounting Pronouncements, in the Notes to Financial Statements for more information.

** See Note 13, Shares of Beneficial Interest, in the Notes to Financial Statements.

^(a)  The tax characterization of distributions is determined in accordance with Federal income tax regulations. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

12 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

Schedule of Investments PIMCO International Bond Portfolio (U.S. Dollar-Hedged)

December 31, 2018

(Amounts in thousands*, except number of shares, contracts and units, if any)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
INVESTMENTS IN SECURITIES 112.5%
ARGENTINA 0.1%
SOVEREIGN ISSUES 0.1%
Argentina Government International Bond
3.375% due 01/15/2023	EUR		200	$		182
50.225% (BADLARPP + 2.000%) due 04/03/2022 ~(a)	ARS		7,810			200
50.950% (BADLARPP + 2.500%) due 03/11/2019 ~(a)			466			12
59.257% (ARLLMONP) due 06/21/2020 ~(a)			11,900			341
Total Argentina (Cost $1,321)						735
AUSTRALIA 0.2%
ASSET-BACKED SECURITIES 0.1%
Driver Australia Five Trust
2.954% (BBSW1M + 0.930%) due 07/21/2026 ~	AUD		757			532
CORPORATE BONDS & NOTES 0.1%
Sydney Airport Finance Co. Pty. Ltd.
3.900% due 03/22/2023	$		300			299
SOVEREIGN ISSUES 0.0%
New South Wales Treasury Corp.
2.750% due 11/20/2025	AUD		130			103
Total Australia (Cost $1,024)						934
BRAZIL 0.5%
CORPORATE BONDS & NOTES 0.5%
Petrobras Global Finance BV
5.999% due 01/27/2028	$		1,517			1,432
6.125% due 01/17/2022			102			105
7.375% due 01/17/2027			1,200			1,235
Total Brazil (Cost $2,877)						2,772
CANADA 3.9%
CORPORATE BONDS & NOTES 1.7%
Air Canada Pass-Through Trust
3.300% due 07/15/2031	$		100			96
Bank of Nova Scotia
1.875% due 04/26/2021			1,200			1,172
Canadian Imperial Bank of Commerce
3.150% due 06/27/2021			500			503
Enbridge, Inc.
2.814% (US0003M + 0.400%) due 01/10/2020 ~			1,200			1,196
3.488% (US0003M + 0.700%) due 06/15/2020 ~			400			399
Fairfax Financial Holdings Ltd.
2.750% due 03/29/2028	EUR		500			571
HSBC Bank Canada
3.300% due 11/28/2021	$		1,200			1,213
Royal Bank of Canada
2.200% due 09/23/2019			400			398
2.300% due 03/22/2021			800			789
Toronto-Dominion Bank
2.250% due 03/15/2021			800			789
2.500% due 01/18/2022			2,000			1,977
						9,103
NON-AGENCY MORTGAGE-BACKED SECURITIES 0.2%
Canadian Mortgage Pools
2.259% due 06/01/2020	CAD		162			119
2.459% due 07/01/2020			454			333
2.459% due 08/01/2020			180			132

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Real Estate Asset Liquidity Trust
3.072% due 08/12/2053	CAD		575	$		420
						1,004
SOVEREIGN ISSUES 2.0%
Canadian Government Real Return Bond
1.500% due 12/01/2044 (f)			464			398
Province of Alberta
1.250% due 06/01/2020			1,100			797
2.350% due 06/01/2025			1,100			790
Province of British Columbia
2.300% due 06/18/2026			200			143
Province of Ontario
2.600% due 06/02/2025			9,900			7,238
3.500% due 06/02/2024			600			461
6.200% due 06/02/2031			100			98
Province of Quebec
3.000% due 09/01/2023			1,100			826
						10,751
Total Canada (Cost $21,529)						20,858
CAYMAN ISLANDS 3.1%
ASSET-BACKED SECURITIES 2.7%
Avery Point CLO Ltd.
3.565% due 01/18/2025 •	$		695			694
Cent CLO Ltd.
3.506% due 10/15/2026 •			1,400			1,388
Dryden Senior Loan Fund
3.336% due 10/15/2027 •			1,200			1,191
Evans Grove CLO Ltd.
3.627% due 05/28/2028 •			300			298
Flagship Ltd.
3.589% due 01/20/2026 •			995			994
LCM LP
3.379% due 10/20/2027 •			1,400			1,394
Marathon CLO Ltd.
3.516% due 11/21/2027 •			1,300			1,285
Mountain View CLO Ltd.
3.236% due 10/15/2026 •			300			300
Oaktree CLO Ltd.
3.689% due 10/20/2026 •			2,100			2,100
Octagon Investment Partners Ltd.
3.536% due 04/15/2026 •			654			654
Staniford Street CLO Ltd.
3.968% due 06/15/2025 •			549			550
Tralee CLO Ltd.
3.869% due 10/20/2028 •			1,300			1,278
Venture CLO Ltd.
3.316% due 04/15/2027 •			300			297
WhiteHorse Ltd.
3.379% due 04/17/2027 •			300			299
Zais CLO Ltd.
3.586% due 04/15/2028 •			1,400			1,397
						14,119
CORPORATE BONDS & NOTES 0.4%
Goodman HK Finance
4.375% due 06/19/2024			300			302
KSA Sukuk Ltd.
2.894% due 04/20/2022			500			488
Sands China Ltd.
4.600% due 08/08/2023			300			299
5.125% due 08/08/2025			200			198
5.400% due 08/08/2028			500			484
Tencent Holdings Ltd.
3.595% due 01/19/2028			200			188
						1,959
Total Cayman Islands (Cost $16,193)						16,078

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
DENMARK 2.9%
CORPORATE BONDS & NOTES 2.9%
Jyske Realkredit A/S
1.500% due 10/01/2037	DKK		3,800	$		587
2.000% due 10/01/2047			9,625			1,492
2.500% due 10/01/2047			80			13
Nordea Kredit Realkreditaktieselskab
2.000% due 10/01/2047			28,373			4,390
2.000% due 10/01/2050			2,948			452
2.500% due 10/01/2037			1,051			171
Nykredit Realkredit A/S
1.500% due 10/01/2037			2,300			356
2.000% due 10/01/2047			15,782			2,442
2.000% due 10/01/2050			3,045			465
2.500% due 10/01/2036			288			47
2.500% due 10/01/2047			31			5
Realkredit Danmark A/S
2.000% due 10/01/2047			26,367			4,085
2.500% due 07/01/2036			4,778			780
2.500% due 07/01/2047			79			13
Total Denmark (Cost $14,586)						15,298
FRANCE 3.7%
CORPORATE BONDS & NOTES 1.7%
Danone S.A.
1.691% due 10/30/2019	$		700			691
Dexia Credit Local S.A.
1.875% due 09/15/2021			2,000			1,949
2.250% due 02/18/2020			2,600			2,585
2.375% due 09/20/2022			600			589
2.500% due 01/25/2021			2,400			2,387
Electricite de France S.A.
4.600% due 01/27/2020			1,000			1,015
						9,216
SOVEREIGN ISSUES 2.0%
France Government International Bond
2.000% due 05/25/2048	EUR		7,400			9,209
3.250% due 05/25/2045			800			1,261
						10,470
Total France (Cost $18,776)						19,686
GERMANY 1.0%
CORPORATE BONDS & NOTES 1.0%
Deutsche Bank AG
2.700% due 07/13/2020	$		600			584
3.150% due 01/22/2021			500			483
3.284% (US0003M + 0.815%) due 01/22/2021 ~			1,300			1,241
4.250% due 10/14/2021			1,800			1,761
Deutsche Pfandbriefbank AG
1.625% due 08/30/2019			600			595
Landwirtschaftliche Rentenbank
4.750% due 03/12/2019	NZD		1,200			809
Total Germany (Cost $5,788)						5,473
GUERNSEY, CHANNEL ISLANDS 0.2%
CORPORATE BONDS & NOTES 0.2%
Credit Suisse Group Funding Guernsey Ltd.
3.800% due 06/09/2023	$		800			786
Total Guernsey, Channel Islands (Cost $798)						786
HONG KONG 0.2%
CORPORATE BONDS & NOTES 0.2%
AIA Group Ltd.
3.900% due 04/06/2028	$		400			401

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 13

Schedule of Investments PIMCO International Bond Portfolio (U.S. Dollar-Hedged) (Cont.)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
CNPC General Capital Ltd.
2.750% due 05/14/2019	$		500	$		500
Total Hong Kong (Cost $899)						901
INDIA 0.0%
CORPORATE BONDS & NOTES 0.0%
ICICI Bank Ltd.
3.500% due 03/18/2020	$		200			199
Total India (Cost $199)						199
INDONESIA 0.1%
CORPORATE BONDS & NOTES 0.1%
Indonesia Asahan Aluminium Persero PT
5.230% due 11/15/2021	$		300			304
Total Indonesia (Cost $298)						304
IRELAND 1.5%
ASSET-BACKED SECURITIES 0.5%
CVC Cordatus Loan Fund Ltd.
0.780% due 01/24/2028 •	EUR		800			916
Toro European CLO DAC
0.900% due 10/15/2030 •			1,300			1,483
						2,399
CORPORATE BONDS & NOTES 0.8%
AerCap Ireland Capital DAC
3.750% due 05/15/2019	$		1,500			1,500
4.625% due 10/30/2020			800			806
AIB Group PLC
4.750% due 10/12/2023			200			198
Iberdrola Finance Ireland DAC
5.000% due 09/11/2019			400			404
Shire Acquisitions Investments Ireland DAC
1.900% due 09/23/2019			700			690
SumitG Guaranteed Secured Obligation Issuer DAC
2.251% due 11/02/2020			400			393
						3,991
SOVEREIGN ISSUES 0.2%
Ireland Government International Bond
5.400% due 03/13/2025	EUR		700			1,048
Total Ireland (Cost $7,373)						7,438
ISRAEL 0.2%
SOVEREIGN ISSUES 0.2%
Israel Government International Bond
3.250% due 01/17/2028	$		500			491
4.125% due 01/17/2048			300			295
Total Israel (Cost $794)						786
ITALY 2.2%
CORPORATE BONDS & NOTES 0.7%
Intesa Sanpaolo SpA
6.250% due 05/16/2024 •(g)(h)	EUR		700			766
7.750% due 01/11/2027 •(g)(h)			800			963
UniCredit SpA
7.830% due 12/04/2023	$		1,200			1,256
Wind Tre SpA
3.125% due 01/20/2025	EUR		800			819
						3,804

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
SOVEREIGN ISSUES 1.5%
Italy Buoni Poliennali Del Tesoro
0.350% due 11/01/2021	EUR		2,600	$		2,932
1.450% due 11/15/2024			400			443
2.450% due 09/01/2033			400			428
2.500% due 11/15/2025			1,900			2,205
2.950% due 09/01/2038			1,200			1,309
3.450% due 03/01/2048			150			170
Italy Government International Bond
6.000% due 08/04/2028	GBP		400			584
						8,071
Total Italy (Cost $12,439)						11,875
JAPAN 4.6%
CORPORATE BONDS & NOTES 1.6%
Central Nippon Expressway Co. Ltd.
2.091% due 09/14/2021	$		700			678
3.122% (US0003M + 0.540%) due 08/04/2020 ~			2,600			2,595
Chugoku Electric Power Co., Inc.
2.701% due 03/16/2020			600			595
Meiji Yasuda Life Insurance Co.
5.100% due 04/26/2048 •			200			198
Mitsubishi UFJ Financial Group, Inc.
2.950% due 03/01/2021			230			228
3.455% due 03/02/2023			600			597
Mizuho Financial Group, Inc.
3.651% (US0003M + 0.880%) due 09/11/2022 ~			700			695
3.771% (US0003M + 1.000%) due 09/11/2024 ~			900			899
3.922% due 09/11/2024 •			500			506
ORIX Corp.
3.250% due 12/04/2024			200			194
Sumitomo Mitsui Financial Group, Inc.
4.447% (US0003M + 1.680%) due 03/09/2021 ~			600			612
Takeda Pharmaceutical Co. Ltd.
1.125% due 11/21/2022	EUR		500			577
						8,374
SOVEREIGN ISSUES 3.0%
Development Bank of Japan, Inc.
1.625% due 09/01/2021	$		1,200			1,161
Japan Bank for International Cooperation
2.375% due 07/21/2022			300			295
2.375% due 11/16/2022			200			196
3.250% due 07/20/2023			700			710
3.375% due 10/31/2023			300			306
Japan Finance Organization for Municipalities
2.125% due 04/13/2021			2,100			2,061
2.625% due 04/20/2022			1,600			1,581
Japan Government International Bond
0.300% due 06/20/2046	JPY		620,000			5,118
0.500% due 09/20/2046			350,000			3,045
Tokyo Metropolitan Government
2.000% due 05/17/2021	$		700			684
2.500% due 06/08/2022			600			590
						15,747
Total Japan (Cost $25,110)						24,121
JERSEY, CHANNEL ISLANDS 0.2%
CORPORATE BONDS & NOTES 0.2%
Aptiv PLC
3.150% due 11/19/2020	$		1,100			1,092
Total Jersey, Channel Islands (Cost $1,116)						1,092

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
KUWAIT 0.6%
SOVEREIGN ISSUES 0.6%
Kuwait International Government Bond
2.750% due 03/20/2022	$		200	$		197
3.500% due 03/20/2027			2,800			2,792
Total Kuwait (Cost $2,976)						2,989
LITHUANIA 0.2%
SOVEREIGN ISSUES 0.2%
Lithuania Government International Bond
6.125% due 03/09/2021	$		1,000			1,059
Total Lithuania (Cost $1,056)						1,059
LUXEMBOURG 0.3%
ASSET-BACKED SECURITIES 0.0%
Bavarian Sky S.A.
0.031% due 10/20/2024 •	EUR		174			199
CORPORATE BONDS & NOTES 0.3%
Aroundtown S.A.
1.625% due 01/31/2028			700			719
Emerald Bay S.A.
0.000% due 10/08/2020 (d)			289			312
Sberbank of Russia Via SB Capital S.A.
3.080% due 03/07/2019			400			461
						1,492
Total Luxembourg (Cost $1,758)						1,691
MULTINATIONAL 0.2%
CORPORATE BONDS & NOTES 0.2%
Preferred Term Securities Ltd.
3.188% (US0003M + 0.400%) due 06/23/2035 ~	$		949			930
Total Multinational (Cost $706)						930
NETHERLANDS 1.9%
ASSET-BACKED SECURITIES 0.1%
Chapel BV
0.042% due 07/17/2066 •	EUR		69			79
Penta CLO BV
0.790% due 08/04/2028 •			600			688
						767
CORPORATE BONDS & NOTES 1.8%
BNG Bank NV
4.550% due 02/15/2019	CAD		1,800			1,322
Cooperatieve Rabobank UA
3.125% due 04/26/2021	$		400			399
6.875% due 03/19/2020 (h)	EUR		700			867
ING Bank NV
2.625% due 12/05/2022	$		3,600			3,547
Mondelez International Holdings Netherlands BV
2.000% due 10/28/2021			500			479
Mylan NV
2.500% due 06/07/2019			110			110
NXP BV
4.125% due 06/01/2021			800			792
Schaeffler Finance BV
4.750% due 05/15/2023			500			481
Stichting AK Rabobank Certificaten
6.500% due 12/29/2049 (g)	EUR		150			187
Syngenta Finance NV
3.698% due 04/24/2020	$		700			695

14 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Teva Pharmaceutical Finance Netherlands BV
3.250% due 04/15/2022	EUR		300	$		347
Vonovia Finance BV
5.000% due 10/02/2023	$		100			104
						9,330
Total Netherlands (Cost $10,313)						10,097
NORWAY 0.3%
CORPORATE BONDS & NOTES 0.3%
DNB Boligkreditt A/S
2.500% due 03/28/2022	$		1,100			1,084
3.250% due 06/28/2023			500			505
						1,589
SOVEREIGN ISSUES 0.0%
Norway Government International Bond
3.750% due 05/25/2021	NOK		1,800			221
Total Norway (Cost $1,851)						1,810
POLAND 0.3%
SOVEREIGN ISSUES 0.3%
Poland Government International Bond
2.250% due 04/25/2022	PLN		6,600			1,787
Total Poland (Cost $1,654)						1,787
PORTUGAL 0.0%
CORPORATE BONDS & NOTES 0.0%
Banco Espirito Santo S.A.
4.000% due 01/21/2019 ^(b)	EUR		300			100
Total Portugal (Cost $338)						100
QATAR 1.2%
CORPORATE BONDS & NOTES 0.1%
Ras Laffan Liquefied Natural Gas Co. Ltd.
6.750% due 09/30/2019	$		400			408
SOVEREIGN ISSUES 1.1%
Qatar Government International Bond
3.875% due 04/23/2023			3,800			3,849
4.500% due 04/23/2028			1,800			1,883
						5,732
Total Qatar (Cost $5,986)						6,140
SAUDI ARABIA 1.8%
SOVEREIGN ISSUES 1.8%
Saudi Government International Bond
2.375% due 10/26/2021	$		3,700			3,569
2.875% due 03/04/2023			1,000			963
3.250% due 10/26/2026			400			375
3.625% due 03/04/2028			900			853
4.000% due 04/17/2025			1,900			1,887
4.500% due 04/17/2030			2,100			2,093
Total Saudi Arabia (Cost $9,932)						9,740
SINGAPORE 0.6%
CORPORATE BONDS & NOTES 0.6%
BOC Aviation Ltd.
2.375% due 09/15/2021	$		1,000			965
3.500% due 09/18/2027			300			282
Clifford Capital Pte. Ltd.
3.380% due 03/07/2028			600			599
DBS Bank Ltd.
3.300% due 11/27/2021			400			403

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Oversea-Chinese Banking Corp. Ltd.
3.090% (US0003M + 0.450%) due 05/17/2021 ~	$		700	$		700
PSA Treasury Pte. Ltd.
2.500% due 04/12/2026			400			372
Total Singapore (Cost $3,349)						3,321
SLOVENIA 1.3%
SOVEREIGN ISSUES 1.3%
Slovenia Government International Bond
4.125% due 02/18/2019	$		5,100			5,107
5.250% due 02/18/2024			1,419			1,529
Total Slovenia (Cost $6,599)						6,636
SOUTH KOREA 0.1%
CORPORATE BONDS & NOTES 0.1%
Kookmin Bank
2.125% due 10/21/2020	$		400			391
SOVEREIGN ISSUES 0.0%
Korea Hydro & Nuclear Power Co. Ltd.
3.750% due 07/25/2023			200			202
Total South Korea (Cost $594)						593
SPAIN 2.9%
ASSET-BACKED SECURITIES 0.0%
Driver Espana
0.031% due 12/21/2028 •	EUR		143			163
CORPORATE BONDS & NOTES 0.7%
Banco Bilbao Vizcaya Argentaria S.A.
6.750% due 02/18/2020 •(g)(h)			400			456
Banco Santander S.A.
3.848% due 04/12/2023	$		200			194
4.750% due 03/19/2025 •(g)(h)	EUR		200			183
6.250% due 09/11/2021 •(g)(h)			200			225
Telefonica Emisiones S.A.
5.134% due 04/27/2020	$		800			817
5.877% due 07/15/2019			2,000			2,024
						3,899
SOVEREIGN ISSUES 2.2%
Autonomous Community of Catalonia
4.220% due 04/26/2035	EUR		200			238
4.900% due 09/15/2021			1,100			1,357
4.950% due 02/11/2020			1,370			1,635
Autonomous Community of Valencia
4.900% due 03/17/2020			600			727
Spain Government International Bond
1.400% due 07/30/2028			5,100			5,837
2.900% due 10/31/2046			1,600			1,965
						11,759
Total Spain (Cost $15,640)						15,821
SUPRANATIONAL 0.1%
CORPORATE BONDS & NOTES 0.1%
European Investment Bank
0.500% due 06/21/2023	AUD		500			320
0.500% due 08/10/2023			400			255
Total Supranational (Cost $663)						575
SWEDEN 4.9%
CORPORATE BONDS & NOTES 4.9%
Danske Hypotek AB
1.000% due 12/21/2022	SEK		18,000			2,067

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Lansforsakringar Hypotek AB
1.250% due 09/20/2023	SEK		24,600	$		2,844
2.250% due 09/21/2022			17,600			2,112
Nordea Hypotek AB
1.000% due 04/08/2022			38,900			4,481
Skandinaviska Enskilda Banken AB
1.500% due 12/15/2021			14,000			1,637
Stadshypotek AB
1.500% due 12/15/2021			31,000			3,625
2.500% due 09/18/2019			1,000			115
2.500% due 04/05/2022	$		300			296
4.500% due 09/21/2022	SEK		22,000			2,854
Sveriges Sakerstallda Obligationer AB
1.250% due 06/15/2022			25,000			2,904
2.000% due 06/17/2026			6,000			712
Swedbank Hypotek AB
1.000% due 09/15/2021			3,900			450
1.000% due 06/15/2022			16,800			1,936
Total Sweden (Cost $25,940)						26,033
SWITZERLAND 1.1%
CORPORATE BONDS & NOTES 1.0%
Credit Suisse AG
6.500% due 08/08/2023 (h)	$		200			209
Credit Suisse Group AG
3.978% (US0003M + 1.200%) due 12/14/2023 ~			800			796
7.500% due 07/17/2023 •(g)(h)			800			782
UBS AG
2.200% due 06/08/2020			900			886
3.218% (US0003M + 0.480%) due 12/01/2020 ~			1,200			1,195
3.347% due 06/08/2020 •			1,400			1,400
						5,268
SOVEREIGN ISSUES 0.1%
Switzerland Government International Bond
3.500% due 04/08/2033	CHF		300			453
Total Switzerland (Cost $5,740)						5,721
UNITED ARAB EMIRATES 0.4%
CORPORATE BONDS & NOTES 0.1%
First Abu Dhabi Bank PJSC
2.250% due 02/11/2020	$		500			492
3.000% due 03/30/2022			200			195
						687
SOVEREIGN ISSUES 0.3%
Emirate of Abu Dhabi Government International Bond
2.500% due 10/11/2022			500			486
3.125% due 10/11/2027			900			862
						1,348
Total United Arab Emirates (Cost $2,089)						2,035
UNITED KINGDOM 9.7%
CORPORATE BONDS & NOTES 5.6%
Barclays Bank PLC
7.625% due 11/21/2022 (h)	$		3,300			3,426
Barclays PLC
3.650% due 03/16/2025			600			555
4.046% (US0003M + 1.430%) due 02/15/2023 ~			700			674
4.610% due 02/15/2023 •			1,300			1,290
4.728% (US0003M + 2.110%) due 08/10/2021 ~			600			605
6.500% due 09/15/2019 •(g)(h)	EUR		1,000			1,120
7.000% due 09/15/2019 •(g)(h)	GBP		200			250
7.750% due 09/15/2023 •(g)(h)	$		700			675
8.000% due 12/15/2020 •(g)(h)	EUR		200			243

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 15

Schedule of Investments PIMCO International Bond Portfolio (U.S. Dollar-Hedged) (Cont.)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
BAT International Finance PLC
1.625% due 09/09/2019	$		400	$		395
British Telecommunications PLC
2.350% due 02/14/2019			500			499
Co-operative Group Holdings Ltd.
6.875% due 07/08/2020 Ø	GBP		400			533
Frontier Finance PLC
8.000% due 03/23/2022			1,500			1,862
HSBC Holdings PLC
3.240% (US0003M + 0.600%) due 05/18/2021 ~	$		600			591
3.640% (US0003M + 1.000%) due 05/18/2024 ~			300			292
3.950% due 05/18/2024 •			400			398
4.750% due 07/04/2029 •(g)(h)	EUR		500			519
5.875% due 09/28/2026 •(g)(h)	GBP		600			733
6.500% due 03/23/2028 •(g)(h)	$		300			273
Imperial Brands Finance PLC
2.950% due 07/21/2020			800			788
Lloyds Bank PLC
4.875% due 03/30/2027	GBP		500			772
5.125% due 03/07/2025			700			1,060
Lloyds Banking Group PLC
7.000% due 06/27/2019 •(g)(h)			1,200			1,533
7.875% due 06/27/2029 •(g)(h)			200			274
Nationwide Building Society
3.766% due 03/08/2024 •	$		1,200			1,156
6.875% due 06/20/2019 •(g)(h)	GBP		300			387
Natwest Markets PLC
0.625% due 03/02/2022	EUR		300			334
RAC Bond Co. PLC
4.870% due 05/06/2046	GBP		300			366
Reckitt Benckiser Treasury Services PLC
2.375% due 06/24/2022	$		600			577
Royal Bank of Scotland Group PLC
4.372% (US0003M + 1.550%) due 06/25/2024 ~			1,000			956
4.519% due 06/25/2024 •			1,000			982
7.500% due 08/10/2020 •(g)(h)			500			496
Santander UK Group Holdings PLC
2.875% due 10/16/2020			1,700			1,674
2.875% due 08/05/2021			400			386
7.375% due 06/24/2022 •(g)(h)	GBP		200			257
Tesco PLC
6.125% due 02/24/2022			50			71
Tesco Property Finance PLC
5.411% due 07/13/2044			193			267
5.661% due 10/13/2041			98			140
7.623% due 07/13/2039			88			147
Virgin Media Secured Finance PLC
5.000% due 04/15/2027			500			605
Virgin Money PLC
2.250% due 04/21/2020			700			891
Vodafone Group PLC
3.426% (US0003M + 0.990%) due 01/16/2024 ~	$		500			488
3.750% due 01/16/2024			400			395
						29,935
NON-AGENCY MORTGAGE-BACKED SECURITIES 1.7%
Business Mortgage Finance PLC
2.887% due 02/15/2041 •	GBP		244			311
Dukinfield PLC
1.887% due 08/15/2045 •			650			828
Eurohome UK Mortgages PLC
1.056% due 06/15/2044 •			395			483
Eurosail PLC
1.067% due 06/10/2044 •			15			19
1.850% due 06/13/2045 •			572			717
Mansard Mortgages PLC
1.556% due 12/15/2049 •			153			188
Newgate Funding PLC
1.056% due 12/01/2050 •			300			355
1.906% due 12/15/2050 •			265			321

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Paragon Mortgages PLC
1.053% due 01/15/2039 •	GBP		734	$		868
Ripon Mortgages PLC
1.689% due 08/20/2056 •			1,499			1,901
RMAC Securities PLC
1.050% due 06/12/2044 •			469			557
Thrones PLC
1.737% due 11/15/2049 •			238			303
Towd Point Mortgage Funding PLC
1.805% due 04/20/2045 •			615			784
2.089% due 02/20/2054 •			1,123			1,433
						9,068
		SHARES
PREFERRED SECURITIES 0.0%
Nationwide Building Society
10.250% ~			960			171
		PRINCIPAL AMOUNT (000S)
SOVEREIGN ISSUES 2.4%
United Kingdom Gilt
3.250% due 01/22/2044	$		3,800			6,212
3.500% due 01/22/2045			600			1,028
4.250% due 12/07/2040			1,200			2,217
4.250% due 12/07/2046			1,600			3,119
						12,576
Total United Kingdom (Cost $53,958)						51,750
UNITED STATES 49.6%
ASSET-BACKED SECURITIES 5.6%
ACE Securities Corp. Home Equity Loan Trust
2.646% due 07/25/2036 •	$		1,428			1,142
Amortizing Residential Collateral Trust
3.206% due 10/25/2031 •			1			1
AMRESCO Residential Securities Corp. Mortgage Loan Trust
3.446% due 06/25/2029 •			1			1
Argent Mortgage Loan Trust
2.986% due 05/25/2035 •			1,874			1,778
Argent Securities, Inc. Asset-Backed Pass-Through Certificates
2.886% due 02/25/2036 •			606			468
Citigroup Mortgage Loan Trust
2.666% due 12/25/2036 •			583			373
2.766% due 03/25/2036 •			629			534
Citigroup Mortgage Loan Trust, Inc.
2.766% due 06/25/2037 •			2,700			2,606
Countrywide Asset-Backed Certificates
2.636% due 12/25/2036 ^•			423			390
2.646% due 06/25/2035 •			405			368
2.646% due 03/25/2037 •			1,895			1,730
2.646% due 06/25/2037 •			517			486
2.646% due 07/25/2037 •			375			339
2.646% due 06/25/2047 ^•			415			376
2.646% due 06/25/2047 •			1,303			1,211
2.656% due 04/25/2047 ^•			390			374
2.796% due 07/25/2036 •			421			414
4.788% due 08/25/2035 ^~			533			482
Countrywide Asset-Backed Certificates Trust
3.665% due 04/25/2035 •			1,000			1,009
Credit Suisse First Boston Mortgage Securities Corp.
3.126% due 01/25/2032 •			1			1
First Franklin Mortgage Loan Trust
2.621% due 07/25/2036 •			1,360			1,275
GSAMP Trust
3.151% due 11/25/2035 ^•			1,354			995
Home Equity Mortgage Loan Asset-Backed Trust
2.746% due 04/25/2037 •			602			452
HSI Asset Securitization Corp. Trust
2.766% due 04/25/2037 •			798			461

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Long Beach Mortgage Loan Trust
3.066% due 10/25/2034 •	$		12	$		12
Morgan Stanley ABS Capital, Inc. Trust
2.636% due 10/25/2036 •			157			148
Morgan Stanley Home Equity Loan Trust
2.606% due 12/25/2036 •			1,062			624
2.736% due 04/25/2037 •			871			571
Morgan Stanley Mortgage Loan Trust
5.919% due 09/25/2046 ^Ø			170			72
Nomura Home Equity Loan, Inc. Home Equity Loan Trust
2.796% due 03/25/2036 •			700			682
NovaStar Mortgage Funding Trust
2.636% due 03/25/2037 •			775			579
Option One Mortgage Loan Trust
2.646% due 01/25/2037 •			457			344
Renaissance Home Equity Loan Trust
5.056% due 12/25/2032 •			415			403
5.294% due 01/25/2037 Ø			642			340
5.675% due 06/25/2037 ^Ø			1,053			463
5.731% due 11/25/2036 Ø			1,011			564
Residential Asset Mortgage Products Trust
2.726% due 12/25/2035 •			427			374
2.966% due 12/25/2035 •			997			841
Residential Asset Securities Corp. Trust
2.756% due 11/25/2036 ^•			2,050			1,751
Saxon Asset Securities Trust
4.256% due 12/25/2037 •			402			376
4.306% due 05/25/2031 •			647			582
SLM Student Loan Trust
1.450% due 03/15/2038 •	GBP		633			781
Soundview Home Loan Trust
2.656% due 06/25/2037 •	$		89			63
2.756% due 11/25/2036 •			1,400			1,287
Structured Asset Investment Loan Trust
2.636% due 07/25/2036 •			510			408
2.816% due 01/25/2036 •			1,442			1,331
Terwin Mortgage Trust
3.446% due 11/25/2033 •			24			23
						29,885
CORPORATE BONDS & NOTES 16.7%
AIG Global Funding
3.277% (US0003M + 0.480%) due 07/02/2020 ~			1,000			1,000
Allergan Sales LLC
5.000% due 12/15/2021			600			618
Ally Financial, Inc.
8.000% due 11/01/2031			200			223
American Honda Finance Corp.
2.932% (US0003M + 0.350%) due 11/05/2021 ~			200			197
American Tower Corp.
3.450% due 09/15/2021			500			500
Anheuser-Busch InBev Finance, Inc.
2.650% due 02/01/2021			538			529
3.300% due 02/01/2023			500			487
AT&T, Inc.
1.800% due 09/05/2026	EUR		1,000			1,140
3.386% (US0003M + 0.950%) due 07/15/2021 ~	$		1,400			1,396
3.488% (US0003M + 0.750%) due 06/01/2021 ~			2,700			2,684
3.956% (US0003M + 1.180%) due 06/12/2024 ~			1,600			1,553
AXA Equitable Holdings, Inc.
3.900% due 04/20/2023			100			99
4.350% due 04/20/2028			200			189
Bank of America Corp.
5.875% due 03/15/2028 •(g)			700			638
BAT Capital Corp.
3.204% due 08/14/2020 •			400			396
3.222% due 08/15/2024			200			184
3.557% due 08/15/2027			700			623

16 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Bayer U.S. Finance LLC
3.452% (US0003M + 0.630%) due 06/25/2021 ~	$		300	$		296
3.798% (US0003M + 1.010%) due 12/15/2023 ~			500			478
3.875% due 12/15/2023			300			295
4.250% due 12/15/2025			300			293
4.375% due 12/15/2028			700			670
BMW U.S. Capital LLC
2.984% (US0003M + 0.370%) due 08/14/2020 ~			2,500			2,482
Boston Scientific Corp.
2.850% due 05/15/2020			1,100			1,093
Brandywine Operating Partnership LP
3.950% due 11/15/2027			500			476
Campbell Soup Co.
3.300% due 03/15/2021			200			199
3.650% due 03/15/2023			800			781
Cardinal Health, Inc.
1.948% due 06/14/2019			1,300			1,293
Cboe Global Markets, Inc.
1.950% due 06/28/2019			500			497
CenterPoint Energy Resources Corp.
3.550% due 04/01/2023			200			200
Charter Communications Operating LLC
3.750% due 02/15/2028			900			816
4.464% due 07/23/2022			1,300			1,313
6.384% due 10/23/2035			500			515
Citigroup, Inc.
2.050% due 06/07/2019			200			199
3.696% (US0003M + 0.930%) due 06/07/2019 ~			600			601
Citizens Bank N.A.
3.259% (US0003M + 0.570%) due 05/26/2020 ~			1,100			1,098
Conagra Brands, Inc.
2.908% (US0003M + 0.500%) due 10/09/2020 ~			900			890
Continental Resources, Inc.
4.375% due 01/15/2028			200			189
CVS Health Corp.
3.350% due 03/09/2021			200			199
3.700% due 03/09/2023			400			396
4.100% due 03/25/2025			300			298
4.300% due 03/25/2028			400			392
5.050% due 03/25/2048			100			98
D.R. Horton, Inc.
3.750% due 03/01/2019			1,000			1,000
4.000% due 02/15/2020			1,200			1,202
Daimler Finance North America LLC
2.250% due 03/02/2020			400			395
Dell International LLC
3.480% due 06/01/2019			1,400			1,396
Delta Air Lines, Inc.
2.875% due 03/13/2020			1,400			1,391
DISH DBS Corp.
5.125% due 05/01/2020			600			594
Dominion Energy Gas Holdings LLC
3.388% (US0003M + 0.600%) due 06/15/2021 ~			1,000			998
eBay, Inc.
2.150% due 06/05/2020			900			889
EQT Corp.
2.500% due 10/01/2020			500			489
3.000% due 10/01/2022			400			380
Equinix, Inc.
2.875% due 03/15/2024	EUR		300			344
ERAC USA Finance LLC
2.600% due 12/01/2021	$		1,200			1,168
Fidelity National Information Services, Inc.
0.400% due 01/15/2021	EUR		200			230
1.700% due 06/30/2022	GBP		200			251
Ford Motor Credit Co. LLC
1.897% due 08/12/2019	$		1,800			1,783
2.943% due 01/08/2019			500			500

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
3.408% (US0003M + 1.000%) due 01/09/2020 ~	$		700	$		693
GATX Corp.
3.302% (US0003M + 0.720%) due 11/05/2021 ~			1,200			1,188
General Mills, Inc.
3.200% due 04/16/2021			100			100
3.459% (US0003M + 1.010%) due 10/17/2023 ~			100			98
3.700% due 10/17/2023			100			100
General Motors Financial Co., Inc.
3.100% due 01/15/2019			1,100			1,100
3.550% due 04/09/2021			300			296
Georgia-Pacific LLC
3.163% due 11/15/2021			400			397
Goldman Sachs Group, Inc.
3.637% (US0003M + 1.160%) due 04/23/2020 ~			400			401
4.223% due 05/01/2029 •			100			96
Goodman U.S. Finance Three LLC
3.700% due 03/15/2028			600			572
Harley-Davidson Financial Services, Inc.
3.647% (US0003M + 0.940%) due 03/02/2021 ~			400			400
Harris Corp.
3.000% (US0003M + 0.480%) due 04/30/2020 ~			600			598
International Lease Finance Corp.
8.250% due 12/15/2020			500			538
JPMorgan Chase Bank N.A.
2.848% (US0003M + 0.340%) due 04/26/2021 ~			400			396
3.086% due 04/26/2021 •			800			797
Kilroy Realty LP
3.450% due 12/15/2024			100			97
Kinder Morgan, Inc.
5.000% due 02/15/2021			400			410
KLA-Tencor Corp.
4.125% due 11/01/2021			400			407
Kraft Heinz Foods Co.
3.188% (US0003M + 0.570%) due 02/10/2021 ~			900			893
McDonald’s Corp.
2.939% (US0003M + 0.430%) due 10/28/2021 ~			700			695
Mid-America Apartments LP
4.200% due 06/15/2028			600			604
Morgan Stanley
3.737% due 04/24/2024 •			1,000			993
MPLX LP
4.000% due 03/15/2028			300			282
MUFG Americas Holdings Corp.
3.000% due 02/10/2025			560			538
Nasdaq, Inc.
3.214% (US0003M + 0.390%) due 03/22/2019 ~			2,200			2,200
Navient Corp.
4.875% due 06/17/2019			414			413
8.000% due 03/25/2020			300			306
Newmont Mining Corp.
5.125% due 10/01/2019			800			808
NextEra Energy Capital Holdings, Inc.
3.053% (US0003M + 0.315%) due 09/03/2019 ~			1,100			1,099
3.107% (US0003M + 0.400%) due 08/21/2020 ~			500			500
Nissan Motor Acceptance Corp.
3.503% due 09/28/2022 •			1,000			969
Northwell Healthcare, Inc.
4.260% due 11/01/2047			400			381
Penske Truck Leasing Co. LP
3.950% due 03/10/2025			1,400			1,374
Protective Life Global Funding
2.262% due 04/08/2020			2,200			2,176

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Public Service Co. of Oklahoma
4.400% due 02/01/2021	$		200	$		204
Public Service Enterprise Group, Inc.
2.000% due 11/15/2021			400			384
QVC, Inc.
3.125% due 04/01/2019			800			798
RELX Capital, Inc.
8.625% due 01/15/2019			300			301
Rockwell Collins, Inc.
2.800% due 03/15/2022			900			875
Sempra Energy
3.238% (US0003M + 0.450%) due 03/15/2021 ~			800			784
SES Global Americas Holdings GP
2.500% due 03/25/2019			600			599
SL Green Operating Partnership LP
3.250% due 10/15/2022			500			483
Southern Co.
2.350% due 07/01/2021			500			486
3.104% (US0003M + 0.490%) due 02/14/2020 ~			1,400			1,398
Southern Power Co.
3.342% (US0003M + 0.550%) due 12/20/2020 ~			600			593
Spectra Energy Partners LP
3.451% (US0003M + 0.700%) due 06/05/2020 ~			100			99
Spirit AeroSystems, Inc.
3.950% due 06/15/2023			200			200
Springleaf Finance Corp.
5.250% due 12/15/2019			300			301
6.000% due 06/01/2020			400			402
Sprint Capital Corp.
6.900% due 05/01/2019			200			202
Sprint Communications, Inc.
7.000% due 03/01/2020			200			205
Sprint Spectrum Co. LLC
3.360% due 03/20/2023			413			408
4.738% due 09/20/2029			300			295
Textron, Inc.
3.168% (US0003M + 0.550%) due 11/10/2020 ~			700			694
Time Warner Cable LLC
5.000% due 02/01/2020			300			304
8.250% due 04/01/2019			400			405
UDR, Inc.
4.625% due 01/10/2022			200			206
United Technologies Corp.
3.279% (US0003M + 0.650%) due 08/16/2021 ~			300			299
Verizon Communications, Inc.
2.625% due 08/15/2026			400			363
3.716% (US0003M + 1.100%) due 05/15/2025 ~			700			679
4.125% due 03/16/2027			500			502
4.329% due 09/21/2028			1,012			1,019
Volkswagen Group of America Finance LLC
2.125% due 05/23/2019			2,100			2,090
2.450% due 11/20/2019			1,100			1,090
3.388% (US0003M + 0.770%) due 11/13/2020 ~			300			298
3.558% (US0003M + 0.940%) due 11/12/2021 ~			300			297
3.875% due 11/13/2020			200			201
4.000% due 11/12/2021			300			301
Wells Fargo & Co.
3.597% (US0003M + 1.110%) due 01/24/2023 ~			1,000			991
3.757% (US0003M + 1.230%) due 10/31/2023 ~			1,500			1,496
Wells Fargo Bank N.A.
3.550% due 08/14/2023			1,400			1,396
WRKCo, Inc.
3.750% due 03/15/2025			300			295

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 17

Schedule of Investments PIMCO International Bond Portfolio (U.S. Dollar-Hedged) (Cont.)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Zimmer Biomet Holdings, Inc.
2.700% due 04/01/2020	$		300	$		297
3.150% due 04/01/2022			2,100			2,055
						88,733
LOAN PARTICIPATIONS AND ASSIGNMENTS 0.2%
CenturyLink, Inc.
5.272% (LIBOR03M + 2.750%) due 01/31/2025 ~			495			464
Charter Communications Operating LLC
4.530% (LIBOR03M + 2.000%) due 04/30/2025 ~			585			562
						1,026
MUNICIPAL BONDS & NOTES 0.0%
Pasadena Public Financing Authority, California Revenue Bonds, (BABs), Series 2010
7.148% due 03/01/2043			100			140
NON-AGENCY MORTGAGE-BACKED SECURITIES 1.6%
American Home Mortgage Investment Trust
4.385% due 09/25/2045 •			21			21
Banc of America Alternative Loan Trust
6.500% due 04/25/2036 ^			435			399
Banc of America Mortgage Trust
3.707% due 02/25/2036 ^~			57			53
Bear Stearns Adjustable Rate Mortgage Trust
4.157% due 08/25/2033 ~			2			2
Bear Stearns ALT-A Trust
2.666% due 02/25/2034 •			42			42
3.867% due 08/25/2036 ^~			38			25
4.018% due 03/25/2036 ^~			120			102
4.144% due 11/25/2035 ^~			27			24
4.209% due 09/25/2035 ^~			25			21
Bear Stearns Structured Products, Inc. Trust
5.425% due 12/26/2046 ^~			26			24
Chase Mortgage Finance Trust
3.614% due 07/25/2037 ~			53			48
Citigroup Mortgage Loan Trust, Inc.
2.856% due 10/25/2035 •			2,070			1,639
4.680% due 09/25/2035 •			4			4
Citigroup Mortgage Loan Trust, Inc. Mortgage Pass-Through Certificates
4.132% due 09/25/2035 ^~			290			266
Countrywide Alternative Loan Trust
2.680% due 03/20/2046 •			63			57
2.786% due 02/25/2037 •			48			43
2.923% due 11/25/2035 •			12			11
3.157% due 12/25/2035 •			55			49
5.250% due 06/25/2035 ^			8			7
Countrywide Home Loan Mortgage Pass-Through Trust
2.966% due 05/25/2035 •			24			22
3.146% due 03/25/2035 •			44			40
3.166% due 02/25/2035 •			6			6
3.910% due 08/25/2034 ^~			14			13
4.290% due 11/25/2034 ~			6			6
5.500% due 01/25/2035			351			350
Credit Suisse First Boston Mortgage Securities Corp.
6.500% due 04/25/2033			1			1
Credit Suisse Mortgage Capital Mortgage-Backed Trust
5.500% due 08/25/2036 ^			1,521			1,427
5.863% due 02/25/2037 ^~			188			78
DBUBS Mortgage Trust
0.306% due 11/10/2046 ~(a)			400			2
0.709% due 11/10/2046 ~(a)			269			2
Deutsche ALT-A Securities, Inc. Mortgage Loan Trust
3.256% due 10/25/2047 •			876			774
GSR Mortgage Loan Trust
2.836% due 12/25/2034 •			39			37
3.818% due 04/25/2035 ~			240			242
4.354% due 01/25/2036 ^~			44			43

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
IndyMac Mortgage Loan Trust
2.716% due 05/25/2046 •	$		488	$		467
2.986% due 07/25/2035 •			21			20
JPMorgan Mortgage Trust
3.503% due 07/27/2037 ~			85			85
3.968% due 02/25/2036 ^~			26			21
Mellon Residential Funding Corp. Mortgage Pass-Through Trust
2.895% due 12/15/2030 •			5			5
Morgan Stanley Bank of America Merrill Lynch Trust
0.994% due 12/15/2048 ~(a)			942			31
Morgan Stanley Mortgage Loan Trust
4.293% due 06/25/2036 ~			30			31
Residential Accredit Loans, Inc. Trust
2.656% due 02/25/2047 •			32			19
2.686% due 06/25/2046 •			285			115
2.716% due 04/25/2046 •			475			218
Structured Adjustable Rate Mortgage Loan Trust
4.369% due 04/25/2034 ~			4			4
Structured Asset Mortgage Investments Trust
2.716% due 05/25/2036 •			12			11
2.726% due 05/25/2036 •			86			78
2.726% due 09/25/2047 •			122			115
2.966% due 05/25/2045 •			18			17
3.050% due 07/19/2034 •			2			2
3.130% due 09/19/2032 •			1			1
3.170% due 03/19/2034 •			4			3
3.657% due 08/25/2047 ^•			35			33
Structured Asset Securities Corp.
2.786% due 01/25/2036 •			273			253
Structured Asset Securities Corp. Mortgage Loan Trust
2.796% due 10/25/2036 •			520			465
TBW Mortgage-Backed Trust
5.970% due 09/25/2036 ^Ø			189			18
Thornburg Mortgage Securities Trust
4.323% due 06/25/2047 ^•			32			30
4.323% due 06/25/2047 •			4			4
Wachovia Mortgage Loan Trust LLC
4.537% due 10/20/2035 ^~			82			83
WaMu Mortgage Pass-Through Certificates Trust
2.329% due 02/27/2034 •			4			4
2.816% due 01/25/2045 •			93			93
3.137% due 06/25/2046 •			37			36
3.157% due 02/25/2046 •			84			84
3.500% due 03/25/2033 ~			9			9
3.672% due 03/25/2035 ~			45			45
3.734% due 04/25/2035 ~			34			34
3.860% due 12/25/2036 ^~			187			173
Washington Mutual Mortgage Pass-Through Certificates Trust
3.097% due 07/25/2046 ^•			24			17
Wells Fargo Mortgage-Backed Securities Trust
4.127% due 03/25/2035 ~			55			56
4.434% due 07/25/2036 ^~			31			30
4.561% due 04/25/2036 ~			2			2
4.649% due 03/25/2036 ^~			111			107
						8,699
U.S. GOVERNMENT AGENCIES 18.5%
Fannie Mae
2.626% due 03/25/2034 •			3			3
2.656% due 08/25/2034 •			2			2
2.665% due 09/25/2042 •			15			15
2.906% due 06/25/2036 •			26			26
3.253% due 10/01/2044 •			13			13
3.500% due 11/01/2021 - 03/01/2048			9,534			9,543
4.120% due 05/25/2035 ~			7			8
4.270% due 12/01/2034 •			3			3
4.490% due 11/01/2034 •			23			24
6.000% due 07/25/2044			9			10
Fannie Mae, TBA
3.500% due 01/01/2049 - 02/01/2049			64,300			64,298
4.000% due 02/01/2049			17,800			18,137

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Freddie Mac
1.567% due 01/15/2038 ~(a)	$		402	$		22
2.649% due 01/15/2038 •			402			400
2.955% due 12/15/2032 •			5			5
3.055% due 12/15/2037 •			8			8
3.357% due 10/25/2044 •			37			37
3.500% due 03/01/2035 •			5			5
4.040% due 04/01/2035 •			42			44
4.226% due 02/01/2029 •			2			2
Ginnie Mae
3.114% due 05/20/2066 - 06/20/2066 •			3,992			4,044
3.164% due 11/20/2066 •			664			675
3.625% due 04/20/2028 - 06/20/2030 •			2			2
NCUA Guaranteed Notes
2.850% due 11/05/2020 •			654			656
2.940% due 12/08/2020 •			193			194
						98,176
U.S. TREASURY OBLIGATIONS 7.0%
U.S. Treasury Inflation Protected Securities (f)
0.125% due 01/15/2022			112			109
0.125% due 04/15/2022 (l)			2,288			2,214
0.125% due 07/15/2024			160			153
0.375% due 07/15/2025 (l)			8,851			8,539
0.500% due 01/15/2028			9,124			8,714
0.625% due 04/15/2023			611			601
0.625% due 01/15/2026			53			52
1.000% due 02/15/2048			2,461			2,338
1.375% due 02/15/2044 (n)			868			898
2.000% due 01/15/2026			127			136
2.500% due 01/15/2029			1,296			1,476
3.875% due 04/15/2029			769			980
U.S. Treasury Notes
2.250% due 11/15/2025 (n)			100			98
2.625% due 06/15/2021 (n)			300			301
2.875% due 04/30/2025 (j)(l)(n)			10,600			10,789
						37,398
Total United States (Cost $262,396)						264,057
SHORT-TERM INSTRUMENTS 10.4%
REPURCHASE AGREEMENTS (i) 0.1%
						381
ARGENTINA TREASURY BILLS 0.1%
(1.727)% due 01/31/2019 - 04/30/2019 (c)(d)	ARS		13,562			379
FRANCE TREASURY BILLS 5.5%
(0.633)% due 01/04/2019 - 01/16/2019 (c)(d)	EUR		25,400			29,110
JAPAN TREASURY BILLS 4.2%
(0.159)% due 03/11/2019 (c)(d)	JPY		2,440,000			22,267
NETHERLANDS TREASURY BILLS 0.5%
(0.639)% due 01/31/2019 (d)(e)	EUR		2,400			2,752
Total Short-Term Instruments (Cost $54,931)						54,889
Total Investments in Securities (Cost $599,589)						597,110

18 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

	SHARES			MARKET VALUE (000S)
INVESTMENTS IN AFFILIATES 3.4%
SHORT-TERM INSTRUMENTS 3.4%
CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 3.4%
PIMCO Short Asset Portfolio		1,107,461	$		10,988
PIMCO Short-Term Floating NAV Portfolio III		727,532			7,191
Total Short-Term Instruments (Cost $18,285)					18,179
Total Investments in Affiliates (Cost $18,285)					18,179
Total Investments 115.9% (Cost $617,874)			$		615,289
Financial Derivative Instruments (k)(m) (0.4)% (Cost or Premiums, net $6,503)					(2,074	)
Other Assets and Liabilities, net (15.5)%					(82,211	)
Net Assets 100.0%			$		531,004

NOTES TO SCHEDULE OF INVESTMENTS:

* A zero balance may reflect actual amounts rounding to less than one thousand.

^ Security is in default.

~ Variable or Floating rate security. Rate shown is the rate in effect as of period end. Certain variable rate securities are not based on a published reference rate and spread, rather are determined by the issuer or agent and are based on current market conditions. Reference rate is as of reset date, which may vary by security. These securities may not indicate a reference rate and/or spread in their description.

• Rate shown is the rate in effect as of period end. The rate may be based on a fixed rate, a capped rate or a floor rate and may convert to a variable or floating rate in the future. These securities do not indicate a reference rate and spread in their description.

Ø Coupon represents a rate which changes periodically based on a predetermined schedule or event. Rate shown is the rate in effect as of period end.

(a) Interest only security.

(b) Security is not accruing income as of the date of this report.

(c) Coupon represents a weighted average yield to maturity.

(d) Zero coupon security.

(e) Coupon represents a yield to maturity.

(f) Principal amount of security is adjusted for inflation.

(g) Perpetual maturity; date shown, if applicable, represents next contractual call date.

(h) Contingent convertible security.

BORROWINGS AND OTHER FINANCING TRANSACTIONS

(i)  REPURCHASE AGREEMENTS:

Counterparty	Lending Rate			Settlement Date		Maturity Date		Principal Amount		Collateralized By	Collateral (Received)			Repurchase Agreements, at Value		Repurchase Agreement Proceeds to  be Received(1)
FICC		2.000	%		12/31/2018		01/02/2019	$	381	U.S. Treasury Notes 2.875% due 09/30/2023	$	(393	)	$	381	$	381
Total Repurchase Agreements											$	(393	)	$	381	$	381

REVERSE REPURCHASE AGREEMENTS:

Counterparty	Borrowing Rate(2)			Settlement Date		Maturity Date		Amount Borrowed(2)			Payable for Reverse Repurchase Agreements
GRE		2.540	%		11/13/2018		02/13/2019	$	(6,715	)	$	(6,739	)
		2.540			11/14/2018		02/14/2019		(1,901	)		(1,907	)
Total Reverse Repurchase Agreements											$	(8,646	)

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 19

Schedule of Investments PIMCO International Bond Portfolio (U.S. Dollar-Hedged) (Cont.)

SHORT SALES:

Description	Coupon		Maturity Date		Principal Amount			Proceeds			Payable for Short Sales(3)
Canada (1.1)%
Sovereign Issues (1.1)%
Canada Government Bond		2.750%		12/01/2048		CAD	6,800	$	(5,676	)	$	(5,621	)
Total Short Sales (1.1)%								$	(5,676	)	$	(5,621	)

BORROWINGS AND OTHER FINANCING TRANSACTIONS SUMMARY

The following is a summary by counterparty of the market value of Borrowings and Other Financing Transactions and collateral pledged/(received) as of December 31, 2018:

Counterparty	Repurchase Agreement Proceeds to  be Received(1)		Payable for Reverse Repurchase Agreements			Payable for Sale-Buyback Transactions		Payable for Short Sales(3)			Total Borrowings and Other Financing Transactions			Collateral Pledged/(Received)			Net Exposure(4)
Global/Master Repurchase Agreement
FICC	$	381	$	0		$	0	$	0		$	381		$	(393	)	$	(12	)
GRE		0		(8,646	)		0		0			(8,646	)		8,875			229
Master Securities Forward Transaction Agreement
TDM		0		0			0		(5,621	)		(5,621	)		0			(5,621	)
Total Borrowings and Other Financing Transactions	$	381	$	(8,646	)	$	0	$	(5,621	)

CERTAIN TRANSFERS ACCOUNTED FOR AS SECURED BORROWINGS

Remaining Contractual Maturity of the Agreements

	Overnight and Continuous		Up to 30 days		31-90 days			Greater Than 90 days		Total
Reverse Repurchase Agreements
U.S. Treasury Obligations	$	0	$	0	$	(8,646	)	$	0	$	(8,646	)
Total Borrowings	$	0	$	0	$	(8,646	)	$	0	$	(8,646	)
Payable for reverse repurchase agreements										$	(8,646	)

(j) Securities with an aggregate market value of $8,875 have been pledged as collateral under the terms of the above master agreements as of December 31, 2018.

⁽¹⁾ Includes accrued interest.

⁽²⁾ The average amount of borrowings outstanding during the period ended December 31, 2018 was $(15,639) at a weighted average interest rate of 0.626%. Average borrowings may include sale-buyback transactions and reverse repurchase agreements, if held during the period.

⁽³⁾ Payable for short sales includes $20 of accrued interest.

⁽⁴⁾ Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from borrowings and other financing transactions can only be netted across transactions governed under the same master agreement with the same legal entity See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information regarding master netting arrangements.

(k)  FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED

PURCHASED OPTIONS:

OPTIONS ON EXCHANGE-TRADED FUTURES CONTRACTS

Description	Strike Price		Expiration Date		# of Contracts		Notional Amount		Cost		Market Value
Call - CBOT U.S. Treasury 2-Year Note March 2019 Futures	$	107.875		02/22/2019		22	$	44	$	0	$	1
Put - CBOT U.S. Treasury 5-Year Note March 2019 Futures		104.000		02/22/2019		128		128		1		0
Put - CBOT U.S. Treasury 5-Year Note March 2019 Futures		107.250		02/22/2019		178		178		2		0
Put - CBOT U.S. Treasury Ultra Long-Term Bond March 2019 Futures		119.000		02/22/2019		22		22		0		0
Total Purchased Options									$	3	$	1

20 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

FUTURES CONTRACTS:

LONG FUTURES CONTRACTS
Description	Expiration Month		# of Contracts		Notional Amount				Unrealized Appreciation/ (Depreciation)			Variation Margin
												Asset		Liability
90-Day Eurodollar March Futures		03/2019		1,660		$	403,754		$	103		$	0	$	0
Australia Government 3-Year Note March Futures		03/2019		292			23,079			83			29		0
Australia Government 10-Year Bond March Futures		03/2019		62			5,794			56			28		0
Canada Government 10-Year Bond March Futures		03/2019		93			9,317			286			0		(3	)
Euro-Bobl March Futures		03/2019		260			39,477			86			0		(9	)
Euro-Bund 10-Year Bond March Futures		03/2019		15			2,811			21			0		(3	)
Euro-Buxl 30-Year Bond March Futures		03/2019		20			4,139			93			0		(19	)
Euro-Schatz March Futures		03/2019		349			44,761			15			0		(4	)
Japan Government 10-Year Bond March Futures		03/2019		31			43,126			234			42		(17	)
U.S. Treasury 5-Year Note March Futures		03/2019		441			50,577			633			110		0
U.S. Treasury Ultra Long-Term Bond March Futures		03/2019		27			4,338			210			16		0
United Kingdom 90-Day LIBOR Sterling Interest Rate September Futures		09/2019		995			156,856			140			8		(24	)
										$    1,960			$    233		$    (79	)
SHORT FUTURES CONTRACTS
Description	Expiration Month		# of Contracts		Notional Amount				Unrealized Appreciation/ (Depreciation)			Variation Margin
												Asset		Liability
90-Day Eurodollar December Futures		12/2019		233		$	(56,706	)	$	(123	)	$	0	$	(6	)
90-Day Eurodollar December Futures		12/2020		656			(159,949	)		(1,242	)		0		(57	)
90-Day Eurodollar March Futures		03/2020		771			(187,825	)		(475	)		0		(39	)
Call Options Strike @ EUR 133.000 on Euro-Bobl March 2019 Futures		02/2019		74			(19	)		(3	)		2		0
Call Options Strike @ EUR 164.500 on Euro-Bund 10-Year Bond March 2019 Futures		02/2019		33			(25	)		(9	)		4		0
Euro-BTP Italy Government Bond March Futures		03/2019		25			(3,661	)		(168	)		0		(2	)
Euro-OAT France Government 10-Year Bond March Futures		03/2019		260			(44,923	)		(210	)		63		0
Put Options Strike @ EUR 131.250 on Euro-Bobl March 2019 Futures		02/2019		74			(6	)		8			0		0
Put Options Strike @ EUR 160.000 on Euro-Bund 10-Year Bond March 2019 Futures		02/2019		33			(7	)		9			0		0
U.S. Treasury 2-Year Note March Futures		03/2019		25			(5,308	)		(37	)		0		(4	)
U.S. Treasury 10-Year Note March Futures		03/2019		3			(366	)		(9	)		0		(1	)
United Kingdom 90-Day LIBOR Sterling Interest Rate September Futures		09/2020		995			(156,618	)		(304	)		8		(48	)
United Kingdom Long Gilt March Futures		03/2019		140			(21,979	)		43			23		(71	)
									$	(2,520	)	$	100	$	(228	)
Total Futures Contracts									$	(560	)	$	333	$	(307	)

SWAP AGREEMENTS:

CREDIT DEFAULT SWAPS ON CORPORATE ISSUES - BUY PROTECTION⁽¹⁾

Reference Entity	Fixed (Pay) Rate			Payment Frequency		Maturity Date		Implied Credit Spread at December 31, 2018(3)			Notional Amount(4)			Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Market Value(5)			Variation Margin
																							Asset		Liability
BASF SE		(1.000	)%		Quarterly		12/20/2020		0.229	%		EUR	200	$	(6	)	$	2		$	(4	)	$	0	$	0
Navient Corp.		(5.000	)		Quarterly		03/20/2019		0.703			$	1,100		(49	)		37			(12	)		0		0
Reynolds American, Inc.		(1.000	)		Quarterly		12/20/2020		0.283				700		(15	)		5			(10	)		0		0
United Utilities PLC		(1.000	)		Quarterly		12/20/2020		0.292			EUR	200		(5	)		2			(3	)		0		0
														$	(75	)	$	46		$	(29	)	$	0	$	0
CREDIT DEFAULT SWAPS ON CORPORATE ISSUES - SELL PROTECTION(2)
Reference Entity	Fixed Receive Rate			Payment Frequency		Maturity Date		Implied Credit Spread at December 31, 2018(3)			Notional Amount(4)			Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Market Value(5)			Variation Margin
																							Asset		Liability
Berkshire Hathaway, Inc.		1.000	%		Quarterly		12/20/2022		0.648	%		$	700	$	13		$	(4	)	$	9		$	0	$	0
Daimler AG		1.000			Quarterly		12/20/2020		0.442			EUR	200		5			(2	)		3			0		0
Shell International Finance BV		1.000			Quarterly		12/20/2026		0.843				500		18			(11	)		7			0		(1	)
Tesco PLC		1.000			Quarterly		06/20/2022		1.146				800		0			(4	)		(4	)		0		(1	)
Tesco PLC		1.000			Quarterly		06/20/2025		2.005				400		(13	)		(15	)		(28	)		0		(1	)
														$	23		$	(36	)	$	(13	)	$	0	$	(3	)

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 21

Schedule of Investments PIMCO International Bond Portfolio (U.S. Dollar-Hedged) (Cont.)

CREDIT DEFAULT SWAPS ON CREDIT INDICES - BUY PROTECTION⁽¹⁾

Index/Tranches	Fixed (Pay) Rate			Payment Frequency	Maturity Date		Notional Amount(4)			Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Market Value(5)			Variation Margin
																			Asset		Liability
CDX.HY-31 5-Year Index		(5.000	)%	Quarterly		12/20/2023		$	3,400	$	(250	)	$	175		$	(75	)	$	0	$	(6	)
CDX.IG-28 5-Year Index		(1.000	)	Quarterly		06/20/2022			30,144		(531	)		214			(317	)		0		(8	)
CDX.IG-29 5-Year Index		(1.000	)	Quarterly		12/20/2022			41,000		(728	)		282			(446	)		0		(14	)
iTraxx Europe Main 26 5-Year Index		(1.000	)	Quarterly		12/20/2021		EUR	53,300		(1,532	)		563			(969	)		0		(83	)
iTraxx Europe Main 28 5-Year Index		(1.000	)	Quarterly		12/20/2022			35,200		(1,019	)		482			(537	)		0		(68	)
iTraxx Europe Senior 30 5-Year Index		(1.000	)	Quarterly		12/20/2023			4,200		6			14			20			0		(15	)
										$	(4,054	)	$	1,730		$	(2,324	)	$	0	$	(194	)
CREDIT DEFAULT SWAPS ON CREDIT INDICES - SELL PROTECTION(2)
	Fixed Receive Rate			Payment Frequency	Maturity Date		Notional Amount(4)			Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Market Value(5)			Variation Margin
Index/Tranches																			Asset		Liability
CDX.EM-30 5-Year Index		1.000	%	Quarterly		12/20/2023		$	300	$	(14	)	$	0		$	(14	)	$	0	$	0
iTraxx Europe Main 30 5-Year Index		1.000		Quarterly		12/20/2023		EUR	11,800		225			(142	)		83			28		0
										$	211		$	(142	)	$	69		$	28	$	0

INTEREST RATE SWAPS - BASIS SWAPS

Pay Floating Rate Index	Receive Floating Rate Index	Payment Frequency	Maturity Date		Notional Amount		Premiums Paid/(Received)		Unrealized Appreciation/ (Depreciation)			Market Value			Variation Margin
															Asset		Liability
3-Month USD-LIBOR(6)	1-Month USD-LIBOR + 0.117%	Quarterly		03/02/2020	$	33,900	$	0	$	8		$	8		$	0	$	(1	)
3-Month USD-LIBOR(6)	1-Month USD-LIBOR + 0.084%	Quarterly		04/26/2022		30,400		0		(4	)		(4	)		0		(2	)
3-Month USD-LIBOR	1-Month USD-LIBOR + 0.084%	Quarterly		06/12/2022		5,100		0		5			5			0		0
3-Month USD-LIBOR	1-Month USD-LIBOR + 0.070%	Quarterly		06/12/2022		3,900		0		6			6			0		0
3-Month USD-LIBOR	1-Month USD-LIBOR + 0.085%	Quarterly		06/19/2022		19,800		2		19			21			4		0
3-Month USD-LIBOR(6)	1-Month USD-LIBOR + 0.073%	Quarterly		04/27/2023		17,000		0		(1	)		(1	)		0		(1	)
							$	2	$	33		$	35		$	4	$	(4	)

INTEREST RATE SWAPS

Pay/Receive Floating Rate	Floating Rate Index	Fixed Rate			Payment Frequency	Maturity Date		Notional Amount			Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Market Value			Variation Margin
																				Asset		Liability
Receive	1-Day USD-Federal Funds Rate Compounded-OIS		2.673	%	Annual		04/30/2025		$	1,100	$	0		$	(28	)	$	(28	)	$	0	$	(3	)
Receive	1-Day USD-Federal Funds Rate Compounded-OIS		2.683		Annual		04/30/2025			3,500		2			(94	)		(92	)		0		(9	)
Receive	1-Day USD-Federal Funds Rate Compounded-OIS		2.684		Annual		04/30/2025			1,200		0			(31	)		(31	)		0		(3	)
Receive	1-Day USD-Federal Funds Rate Compounded-OIS		2.696		Annual		04/30/2025			1,100		0			(30	)		(30	)		0		(3	)
Receive	1-Day USD-Federal Funds Rate Compounded-OIS		2.710		Annual		04/30/2025			1,200		0			(33	)		(33	)		0		(3	)
Receive	1-Day USD-Federal Funds Rate Compounded-OIS		2.714		Annual		04/30/2025			2,300		0			(65	)		(65	)		0		(6	)
Receive	1-Year  BRL-CDI		8.880		Maturity		01/04/2021		BRL	800		1			7			8			0		0
Pay	3-Month CAD-Bank Bill		2.300		Semi-Annual		07/16/2020		CAD	39,500		(58	)		118			60			8		0
Receive	3-Month CAD-Bank Bill		1.750		Semi-Annual		12/16/2046			600		(86	)		1			(85	)		0		(3	)
Pay	3-Month CAD-Bank Bill		2.750		Semi-Annual		12/18/2048			7,400		(112	)		193			81			0		(38	)
Pay	3-Month  CHF-LIBOR		0.050		Annual		03/16/2026		CHF	1,400		(24	)		32			8			1		0
Receive(6)	3-Month  NZD-BBR		2.500		Semi-Annual		02/14/2020		NZD	7,520		9			17			26			0		0
Receive	3-Month  USD-LIBOR		2.000		Semi-Annual		12/20/2019		$	25,300		220			(29	)		191			2		0
Receive(6)	3-Month  USD-LIBOR		3.200		Semi-Annual		04/01/2020			502,000		33			1,182			1,215			16		0
Pay	3-Month  USD-LIBOR		1.750		Semi-Annual		06/20/2020			63,700		1,091			(174	)		917			2		0
Receive	3-Month  USD-LIBOR		2.750		Semi-Annual		12/19/2020			46,900		319			(385	)		(66	)		0		(7	)
Receive(6)	3-Month  USD-LIBOR		3.200		Semi-Annual		04/01/2021			502,000		1			(1,692	)		(1,691	)		0		(69	)
Receive	3-Month  USD-LIBOR		2.000		Semi-Annual		06/20/2023			11,100		414			(144	)		270			0		(20	)
Receive	3-Month  USD-LIBOR		1.750		Semi-Annual		12/21/2023			9,200		479			(121	)		358			0		(18	)
Receive	3-Month  USD-LIBOR		1.750		Semi-Annual		12/21/2026			15,200		1,224			(228	)		996			0		(49	)
Receive	3-Month  USD-LIBOR		2.250		Semi-Annual		06/20/2028			35,600		1,882			(534	)		1,348			0		(133	)
Receive	3-Month  USD-LIBOR		3.000		Semi-Annual		12/19/2028			5,600		(76	)		214			138			22		0
Receive(6)	3-Month  USD-LIBOR		3.000		Semi-Annual		06/19/2029			16,000		(200	)		(192	)		(392	)		0		(69	)
Receive	3-Month  USD-LIBOR		2.750		Semi-Annual		12/20/2047			8,700		269			(66	)		203			0		(50	)

22 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

Pay/Receive Floating Rate	Floating Rate Index	Fixed Rate			Payment Frequency		Maturity Date		Notional Amount			Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Market Value			Variation Margin
																					Asset		Liability
Receive	3-Month  USD-LIBOR		2.500	%		Semi-Annual		06/20/2048		$	4,000	$	445		$	(144	)	$	301		$	0	$	(22	)
Receive	3-Month  USD-LIBOR		3.000			Semi-Annual		12/19/2048			8,400		230			(470	)		(240	)		0		(50	)
Receive(6)	3-Month  USD-LIBOR		2.953			Semi-Annual		11/12/2049			800		(5	)		(9	)		(14	)		0		(5	)
Receive(6)	3-Month  USD-LIBOR		2.955			Semi-Annual		11/12/2049			2,900		(20	)		(33	)		(53	)		0		(18	)
Pay	3-Month  ZAR-JIBAR		7.250			Quarterly		06/20/2023		ZAR	7,600		4			(11	)		(7	)		1		0
Pay(6)	6-Month  EUR-EURIBOR		0.000			Annual		06/19/2021		EUR	12,700		7			24			31			2		0
Receive(6)	6-Month  EUR-EURIBOR		0.500			Annual		03/20/2024			58,500		161			698			859			47		0
Pay(6)	6-Month  EUR-EURIBOR		0.500			Annual		06/19/2024			25,000		132			148			280			22		0
Receive(6)	6-Month  EUR-EURIBOR		1.000			Annual		03/20/2029			34,400		(183	)		759			576			50		0
Pay(6)	6-Month  EUR-EURIBOR		1.000			Annual		06/19/2029			23,800		62			198			260			36		0
Receive(6)	6-Month  EUR-EURIBOR		1.500			Annual		03/20/2049			2,500		53			(134	)		(81	)		0		(2	)
Receive(6)	6-Month  GBP-LIBOR		1.250			Annual		09/18/2020		GBP	44,900		(3	)		73			70			0		(3	)
Receive(6)	6-Month  GBP-LIBOR		1.500			Annual		12/18/2020			37,900		107			53			160			1		0
Receive(6)	6-Month  GBP-LIBOR		1.000			Semi-Annual		03/20/2021			17,400		(117	)		35			(82	)		1		0
Receive(6)	6-Month  GBP-LIBOR		1.500			Annual		09/16/2021			44,900		(26	)		(116	)		(142	)		0		(18	)
Receive(6)	6-Month  GBP-LIBOR		1.500			Annual		12/16/2021			37,900		(17	)		(93	)		(110	)		0		(20	)
Receive(6)	6-Month  GBP-LIBOR		1.500			Semi-Annual		03/20/2024			1,900		(2	)		(19	)		(21	)		0		(3	)
Receive(6)	6-Month  GBP-LIBOR		1.500			Semi-Annual		03/20/2029			1,900		31			(44	)		(13	)		0		(18	)
Receive(6)	6-Month  GBP-LIBOR		1.750			Semi-Annual		03/20/2049			3,200		10			200			210			36		0
Pay(6)	6-Month  GBP-LIBOR		1.750			Semi-Annual		06/19/2049			400		28			(2	)		26			4		0
Receive(6)	6-Month  JPY-LIBOR		0.100			Semi-Annual		03/20/2024		JPY	4,080,000		(121	)		255			134			6		0
Receive(6)	6-Month  JPY-LIBOR		0.450			Semi-Annual		03/20/2029			1,770,000		(130	)		(288	)		(418	)		0		(8	)
Pay	6-Month  JPY-LIBOR		1.500			Semi-Annual		06/19/2033			2,090,000		2,911			228			3,139			25		0
Receive	6-Month  JPY-LIBOR		1.250			Semi-Annual		06/17/2035			150,000		157			25			182			2		0
Receive	6-Month  JPY-LIBOR		0.750			Semi-Annual		12/20/2038			684,282		89			(337	)		(248	)		0		(6	)
Receive	6-Month  JPY-LIBOR		1.000			Semi-Annual		03/21/2048			100,000		42			31			73			0		0
Receive	6-Month  JPY-LIBOR		1.000			Semi-Annual		12/20/2048			347,606		6			242			248			1		0
Pay	28-Day  MXN-TIIE		7.278			Lunar		03/22/2022		MXN	21,800		(5	)		(37	)		(42	)		2		0
Pay	28-Day  MXN-TIIE		7.317			Lunar		03/23/2022			18,100		(3	)		(31	)		(34	)		2		0
Receive	28-Day  MXN-TIIE		5.825			Lunar		01/12/2023			27,400		(95	)		(39	)		(134	)		4		0
												$	9,136		$	(920	)	$	8,216		$	293	$	(656	)
Total Swap Agreements												$	5,243		$	711		$	5,954		$	325	$	(857	)

FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED SUMMARY

The following is a summary of the market value and variation margin of Exchange-Traded or Centrally Cleared Financial Derivative Instruments as of December 31, 2018:

	Financial Derivative Assets								Financial Derivative Liabilities
	Market Value		Variation Margin Asset(7)						Market Value		Variation Margin Liability
	Purchased Options		Futures		Swap Agreements		Total		Written Options		Futures		Swap Agreements		Total
Total Exchange-Traded or Centrally Cleared	$	1	$	333	$	334	$	668	$	0	$	(307)	$	(857)	$	(1,164)

(l) Securities with an aggregate market value of $8,214 and cash of $2,693 have been pledged as collateral for exchange-traded and centrally cleared financial derivative instruments as of December 31, 2018. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information regarding master netting arrangements.

⁽¹⁾ If the Portfolio is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽²⁾ If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽³⁾ Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate or sovereign issues as of period end serve as indicators of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

⁽⁴⁾ The maximum potential amount the Portfolio could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

⁽⁵⁾ The prices and resulting values for credit default swap agreements serve as indicators of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced indices’ credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

⁽⁶⁾ This instrument has a forward starting effective date. See Note 2, Securities Transactions and Investment Income, in the Notes to Financial Statements for further information.

⁽⁷⁾ Unsettled variation margin asset of $9 for closed swap agreements is outstanding at period end.

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 23

Schedule of Investments PIMCO International Bond Portfolio (U.S. Dollar-Hedged) (Cont.)

(m)  FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER

FORWARD FOREIGN CURRENCY CONTRACTS:

Counterparty	Settlement Month		Currency to be Delivered		Currency to be Received		Unrealized Appreciation/ (Depreciation)
							Asset		Liability
AZD		06/2019	$	9,957	EUR	8,537	$	0	$	(35	)
BOA		01/2019	CAD	18,359	$	13,784		332		0
		01/2019	DKK	102,139		16,245		571		0
		01/2019	EUR	79,417		90,666		0		(386	)
		01/2019	GBP	1,678		2,142		4		0
		01/2019	SEK	227,980		25,192		0		(549	)
		01/2019	$	295	ARS	11,995		18		0
BPS		01/2019	BRL	1,130	$	294		2		0
		01/2019	CAD	497		364		0		0
		01/2019	$	292	BRL	1,130		0		0
		01/2019		2,128	GBP	1,694		31		0
		01/2019		1,145	KRW	1,290,521		12		0
		01/2019		1,059	NZD	1,557		0		(14	)
		02/2019	RON	10,827	EUR	2,316		0		(1	)
		03/2019	KRW	1,290,521	$	1,148		0		(14	)
		04/2019	CNH	2,984		431		0		(4	)
		04/2019	$	1,937	CNH	13,362		8		0
		07/2019		834		5,716		0		(2	)
BRC		01/2019	JPY	258,000	$	2,329		0		(25	)
		01/2019	$	686	EUR	600		2		0
		01/2019		1,615	NOK	13,766		0		(23	)
CBK		01/2019	AUD	8,254	$	6,047		232		0
		01/2019	BRL	11,875		3,041		0		(22	)
		01/2019	EUR	45,598		52,043		0		(235	)
		01/2019	NOK	1,890		221		3		0
		01/2019	NZD	1,158		802		25		0
		01/2019	SEK	17,020		1,893		0		(29	)
		01/2019	$	2,632	AUD	3,633		0		(72	)
		01/2019		3,065	BRL	11,875		0		(1	)
		01/2019		15,094	DKK	98,868		78		0
		01/2019		51	GBP	40		0		0
		01/2019		562	NOK	4,880		2		0
		01/2019		5,128	RUB	339,816		0		(264	)
		01/2019		1,018	SEK	9,151		15		0
		02/2019	CNH	9,929	$	1,428		0		(17	)
		02/2019	EUR	1,878		2,377		219		0
		02/2019	$	2,686	COP	8,488,874		0		(79	)
		03/2019	KRW	7,513,017	$	6,703		0		(61	)
		04/2019	DKK	98,868		15,215		0		(78	)
		05/2019	EUR	1,083		1,264		8		0
		06/2019	GBP	584		783		32		0
		06/2019	$	20,751	EUR	17,834		0		(23	)
		07/2019	CNH	6,175	$	916		17		0
		07/2019	$	834	CNH	5,716		0		(2	)
DUB		01/2019	BRL	17,541	$	4,527		1		0
		01/2019	$	4,556	BRL	17,541		0		(30	)
		01/2019		1,446	EUR	1,150		0		(127	)
		02/2019	BRL	17,541	$	4,547		29		0
		03/2019		2,418		632		11		0
		03/2019	$	538	MXN	11,542		43		0
		04/2019	SEK	2,204	EUR	214		0		(3	)
FBF		01/2019	$	434	RUB	29,351		0		(14	)
GLM		01/2019	BRL	4,497	$	1,173		13		0
		01/2019	CAD	1,425		1,065		21		0
		01/2019	CHF	1,586		1,603		0		(11	)
		01/2019	EUR	10,328		11,759		0		(78	)
		01/2019	GBP	23,383		29,901		86		0
		01/2019	NZD	775		533		13		0
		01/2019	SEK	4,817		533		0		(10	)
		01/2019	$	33	ARS	1,300		1		0
		01/2019		5,496	AUD	7,657		0		(102	)
		01/2019		1,161	BRL	4,497		0		0
		01/2019		2,133	CAD	2,853		0		(43	)
		01/2019		435	DKK	2,775		0		(9	)

24 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

Counterparty	Settlement Month		Currency to be Delivered		Currency to be Received		Unrealized Appreciation/ (Depreciation)
							Asset		Liability
		01/2019	$	1,868	EUR	1,635	$	7	$	0
		01/2019		639	JPY	72,300		21		0
		01/2019		1,349	MXN	27,733		61		0
		01/2019		1,863	NOK	16,090		1		(3	)
		01/2019		1,899	SEK	17,085		30		0
		02/2019		16	CLP	10,584		0		0
		02/2019		1,428	CNH	9,923		17		0
		03/2019	JPY	2,440,000	$	21,724		0		(649	)
HUS		01/2019	CAD	1,677		1,256		27		0
		01/2019	CHF	494		497		0		(6	)
		01/2019	EUR	22,442		25,737		65		(69	)
		01/2019	KRW	396,480		354		0		(1	)
		01/2019	PLN	6,526		1,777		33		0
		01/2019	$	4,871	AUD	6,743		0		(121	)
		01/2019		1,252	CAD	1,651		0		(43	)
		01/2019		610	EUR	537		5		0
		01/2019		512	GBP	406		5		0
		02/2019		716	AUD	900		0		(81	)
		03/2019	BRL	810	$	240		32		0
		03/2019	$	822	KRW	920,147		6		0
		03/2019		240	MXN	4,727		0		(2	)
		04/2019	ARS	7,239	$	169		0		(2	)
		05/2019	$	1,301	EUR	1,078		0		(51	)
		07/2019	CNH	39,550	$	5,793		37		0
		07/2019	$	5,999	CNH	41,175		0		(6	)
IND		01/2019	JPY	678,700	$	5,987		0		(207	)
		01/2019	MXN	18,822		924		0		(32	)
		04/2019	CNH	3,262		471		0		(4	)
JPM		01/2019	AUD	4,454		3,199		61		0
		01/2019	CAD	1,427		1,048		3		0
		01/2019	CHF	2,104		2,123		0		(18	)
		01/2019	EUR	1,842		2,100		0		(11	)
		01/2019	GBP	1,265		1,598		0		(14	)
		01/2019	KRW	894,041		799		0		(3	)
		01/2019	NOK	18,225		2,081		0		(27	)
		01/2019	$	1,568	AUD	2,226		0		0
		01/2019		1,431	EUR	1,256		9		0
		01/2019		539	NZD	803		0		0
		01/2019		3,208	SEK	28,956		59		0
		03/2019	IDR	1,392,000	$	96		0		0
		03/2019	$	574	KRW	642,736		5		0
		04/2019	EUR	416	SEK	4,267		5		0
		07/2019	CNH	1,835	$	270		3		0
MSB		04/2019	$	3,009	CNH	20,700		4		0
		07/2019	CNH	5,047	$	738		4		0
MYI		01/2019	AUD	740		532		11		0
		01/2019	JPY	241,607		2,143		0		(61	)
		01/2019	NZD	3,926		2,686		50		0
		01/2019	SEK	18,837		2,080		0		(46	)
		06/2021	$	38	EUR	30		0		(1	)
NGF		04/2019	CNH	4,009	$	579		0		(5	)
RBC		01/2019	EUR	2,400		2,735		0		(22	)
RYL		01/2019	$	111	CAD	150		0		(2	)
		01/2019		381	GBP	300		2		0
		04/2019	SEK	2,992	EUR	288		0		(8	)
SCX		01/2019	$	536	JPY	60,311		15		0
		04/2019	CNH	10,580	$	1,523		0		(17	)
		04/2019	$	2,087	CNH	14,390		8		0
SOG		03/2019	KRW	89,317	$	80		0		0
SSB		03/2019	TWD	42,075		1,376		0		(10	)
UAG		01/2019	EUR	45,401		51,784		0		(269	)
		01/2019	NOK	174		20		0		0
		01/2019	$	344	EUR	300		0		0
		01/2019		5,804	MXN	110,469		0		(201	)
Total Forward Foreign Currency Contracts							$	2,415	$	(4,355	)

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 25

Schedule of Investments PIMCO International Bond Portfolio (U.S. Dollar-Hedged) (Cont.)

PURCHASED OPTIONS:

FOREIGN CURRENCY OPTIONS

Counterparty	Description	Strike Price			Expiration Date		Notional Amount			Cost		Market Value
BRC	Call - OTC EUR versus USD		$	1.308		09/22/2021		EUR	500	$	31	$	19
	Put - OTC EUR versus USD			1.308		09/22/2021			500		36		51
GLM	Call - OTC USD versus CNH		CNH	7.110		02/11/2019		$	3,000		16		3
MSB	Call - OTC EUR versus USD		$	1.291		06/24/2021		EUR	438		27		16
	Put - OTC EUR versus USD			1.291		06/24/2021			438		32		41
Total Purchased Options										$	142	$	130

WRITTEN OPTIONS:

CREDIT DEFAULT SWAPTIONS ON CREDIT INDICES

Counterparty	Description	Buy/Sell Protection		Exercise Rate		Expiration Date		Notional Amount		Premiums (Received)			Market Value
BOA	Put - OTC CDX.IG-31 5-Year Index		Sell		0.900%		01/16/2019	$	1,000		$    (2	)	$	(2	)
	Put - OTC CDX.IG-31 5-Year Index		Sell		0.950		02/20/2019		1,100		(2	)		(3	)
	Put - OTC CDX.IG-31 5-Year Index		Sell		1.000		02/20/2019		1,100		(2	)		(2	)
	Put - OTC CDX.IG-31 5-Year Index		Sell		1.000		03/20/2019		1,400		(3	)		(4	)
	Put - OTC CDX.IG-31 5-Year Index		Sell		1.200		03/20/2019		1,600		(2	)		(3	)
BPS	Put - OTC CDX.IG-31 5-Year Index		Sell		1.000		02/20/2019		1,000		(1	)		(2	)
BRC	Put - OTC CDX.IG-31 5-Year Index		Sell		1.000		01/16/2019		1,300		(1	)		(1	)
	Put - OTC CDX.IG-31 5-Year Index		Sell		1.050		02/20/2019		1,100		(2	)		(2	)
	Put - OTC CDX.IG-31 5-Year Index		Sell		1.100		03/20/2019		500		(1	)		(1	)
CBK	Put - OTC CDX.IG-31 5-Year Index		Sell		0.950		01/16/2019		1,200		(1	)		(1	)
	Put - OTC CDX.IG-31 5-Year Index		Sell		1.000		01/16/2019		6,100		(5	)		(4	)
	Put - OTC CDX.IG-31 5-Year Index		Sell		0.950		02/20/2019		2,200		(4	)		(7	)
	Put - OTC CDX.IG-31 5-Year Index		Sell		1.050		02/20/2019		800		(1	)		(1	)
	Put - OTC CDX.IG-31 5-Year Index		Sell		1.050		03/20/2019		700		(1	)		(2	)
	Put - OTC CDX.IG-31 5-Year Index		Sell		1.100		03/20/2019		800		(2	)		(2	)
	Put - OTC CDX.IG-31 5-Year Index		Sell		1.200		03/20/2019		1,100		(1	)		(2	)
GST	Put - OTC CDX.IG-31 5-Year Index		Sell		0.900		01/16/2019		1,000		(1	)		(2	)
	Put - OTC CDX.IG-31 5-Year Index		Sell		2.400		09/18/2019		1,200		(2	)		(2	)
	Put - OTC iTraxx Europe 30 5-Year Index		Sell		2.400		09/18/2019	EUR	1,400		(3	)		(2	)
JPM	Put - OTC CDX.IG-31 5-Year Index		Sell		0.950		02/20/2019	$	1,000		(2	)		(3	)
	Put - OTC CDX.IG-31 5-Year Index		Sell		1.200		03/20/2019		600		(1	)		(1	)
MYC	Put - OTC CDX.IG-31 5-Year Index		Sell		0.900		01/16/2019		1,100		(2	)		(2	)
										$	(42	)	$	(51	)

FOREIGN CURRENCY OPTIONS

Counterparty	Description	Strike Price			Expiration Date		Notional Amount			Premiums (Received)			Market Value
CBK	Put - OTC GBP versus USD		$	1.315		06/14/2019		GBP	1,660	$	(53	)	$	(100	)
	Call - OTC GBP versus USD			1.440		06/14/2019			1,668		(24	)		(7	)
GLM	Put - OTC USD versus CNH		CNH	6.840		02/11/2019		$	3,000		(16	)		(17	)
										$	(93	)	$	(124	)
Total Written Options										$	(135	)	$	(175	)

SWAP AGREEMENTS:

CREDIT DEFAULT SWAPS ON SOVEREIGN ISSUES - BUY PROTECTION⁽¹⁾

Counterparty	Reference Entity	Fixed (Pay) Rate			Payment Frequency	Maturity Date		Implied Credit Spread at December 31, 2018(3)			Notional Amount(4)		Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Swap Agreements, at Value(5)
																			Asset		Liability
BOA	Japan Government International Bond		(1.000	)%	Quarterly		06/20/2022		0.154	%	$	200	$	(7	)	$	1		$	0	$	(6	)
BPS	Japan Government International Bond		(1.000	)	Quarterly		06/20/2022		0.154			1,700		(61	)		12			0		(49	)
	South Korea Government International Bond		(1.000	)	Quarterly		06/20/2023		0.346			3,000		(73	)		(11	)		0		(84	)
BRC	China Government International Bond		(1.000	)	Quarterly		06/20/2023		0.614			800		(15	)		2			0		(13	)

26 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

Counterparty	Reference Entity	Fixed (Pay) Rate			Payment Frequency		Maturity Date		Implied Credit Spread at December 31, 2018(3)			Notional Amount(4)		Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Swap Agreements, at Value(5)
																				Asset		Liability
	Japan Government International Bond		(1.000	) %		Quarterly		06/20/2022		0.154	%	$	1,200	$	(41	)	$	7		$	0	$	(34	)
	South Korea Government International Bond		(1.000	)		Quarterly		06/20/2023		0.346			2,000		(51	)		(5	)		0		(56	)
CBK	Japan Government International Bond		(1.000	)		Quarterly		06/20/2022		0.154			1,000		(35	)		6			0		(29	)
GST	China Government International Bond		(1.000	)		Quarterly		06/20/2023		0.614			1,600		(31	)		5			0		(26	)
	Japan Government International Bond		(1.000	)		Quarterly		06/20/2022		0.154			1,700		(59	)		10			0		(49	)
HUS	South Korea Government International Bond		(1.000	)		Quarterly		06/20/2023		0.346			800		(20	)		(2	)		0		(22	)
JPM	South Korea Government International Bond		(1.000	)		Quarterly		06/20/2023		0.346			200		(5	)		(1	)		0		(6	)
														$	(398	)	$	24		$	0	$	(374	)

CREDIT DEFAULT SWAPS ON CORPORATE AND SOVEREIGN ISSUES - SELL PROTECTION⁽²⁾

Counterparty	Reference Entity	Fixed Receive Rate			Payment Frequency	Maturity Date		Implied Credit Spread at December 31, 2018(3)			Notional Amount(4)			Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Swap Agreements, at Value(5)
																				Asset		Liability
GST	South Africa Government International Bond		1.000	%	Quarterly		12/20/2023		2.227	%		$	100	$	(5	)	$	0		$	0	$	(5	)
JPM	Royal Bank of Scotland Group PLC		1.000		Quarterly		12/20/2023		2.925			EUR	300		(28	)		(3	)		0		(31	)
	South Africa Government International Bond		1.000		Quarterly		06/20/2023		2.113			$	400		(21	)		3			0		(18	)
	South Africa Government International Bond		1.000		Quarterly		12/20/2023		2.227				600		(34	)		2			0		(32	)
NGF	South Africa Government International Bond		1.000		Quarterly		12/20/2023		2.227				200		(10	)		(1	)		0		(11	)
														$	(98	)	$	1		$	0	$	(97	)

CREDIT DEFAULT SWAPS ON CREDIT INDICES - BUY PROTECTION⁽¹⁾

Counterparty	Index/Tranches	Fixed (Pay) Rate			Payment Frequency	Maturity Date		Notional Amount(4)			Premiums Paid/(Received)		Unrealized Appreciation/ (Depreciation)			Swap Agreements, at Value(5)
																Asset		Liability
BPS	iTraxx Europe Subordinated 27 5-Year Index		(1.000	)%	Quarterly		06/20/2022		EUR	1,400	$	73	$	(37	)	$	36	$	0

CROSS-CURRENCY SWAPS

Counterparty	Receive	Pay	Payment Frequency	Maturity Date(6)		Notional Amount of Currency Received		Notional Amount of Currency Delivered		Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Swap Agreements, at Value
																Asset		Liability
CBK	Floating rate equal to 3-Month EUR-LIBOR less 0.27% based on the notional amount of currency received	Floating rate equal to 3-Month USD-LIBOR based on the notional amount of currency delivered	Maturity		06/19/2019		EUR      3,400	$	3,855	$	61		$	(29	)	$	32	$	0
DUB	Floating rate equal to 3-Month GBP-LIBOR less 0.055% based on the notional amount of currency received	Floating rate equal to 3-Month USD-LIBOR based on the notional amount of currency delivered	Maturity		10/13/2026		GBP         800		976		(1	)		29			28		0
GLM	Floating rate equal to 3-Month EUR-LIBOR less 0.283% based on the notional amount of currency received	Floating rate equal to 3-Month USD-LIBOR based on the notional amount of currency delivered	Maturity		06/19/2019		EUR    19,600		22,224		328			(143	)		185		0
	Floating rate equal to 3-Month EUR-LIBOR less 0.299% based on the notional amount of currency received	Floating rate equal to 3-Month USD-LIBOR based on the notional amount of currency delivered	Maturity		06/19/2019		17,200		19,502		378			(217	)		161		0

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 27

Schedule of Investments PIMCO International Bond Portfolio (U.S. Dollar-Hedged) (Cont.)

Counterparty	Receive	Pay	Payment Frequency	Maturity Date(6)		Notional Amount of Currency Received		Notional Amount of Currency Delivered		Premiums Paid/(Received)		Unrealized Appreciation/ (Depreciation)			Swap Agreements, at Value
															Asset		Liability
MYC	Floating rate equal to 3-Month EUR-LIBOR less 0.27% based on the notional amount of currency received	Floating rate equal to 3-Month USD-LIBOR based on the notional amount of currency delivered	Maturity		06/19/2019		EUR    25,600	$	29,027	$	458	$	(214	)	$	244	$	0
RYL	Floating rate equal to 3-Month GBP-LIBOR less 0.055% based on the notional amount of currency received	Floating rate equal to 3-Month USD-LIBOR based on the notional amount of currency delivered	Maturity		10/13/2026		GBP      1,000		1,220		29		5			34		0
TOR	Floating rate equal to 3-Month EUR-LIBOR less 0.265% based on the notional amount of currency received	Floating rate equal to 3-Month USD-LIBOR based on the notional amount of currency delivered	Maturity		06/19/2019		EUR    26,500		30,047		420		(167	)		253		0
										$	1,673	$	(736	)	$	937	$	0

INTEREST RATE SWAPS

Counterparty	Pay/ Receive Floating Rate	Floating Rate Index	Fixed Rate			Payment Frequency		Maturity Date	Notional Amount			Premiums Paid/(Received)		Unrealized Appreciation/ (Depreciation)			Swap Agreements, at Value
																	Asset		Liability
JPM	Receive	3-Month  KRW-KORIBOR		1.993	%		Quarterly	07/10/2027		KRW	3,206,400	$	0	$	(45	)	$	0	$	(45	)
SOG	Receive	3-Month  KRW-KORIBOR		2.030			Quarterly	07/10/2027			2,933,300		0		(50	)		0		(50	)
												$	0	$	(95	)	$	0	$	(95	)
Total Swap Agreements												$	1,250	$	(843	)	$	973	$	(566	)

FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER SUMMARY

The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral pledged/(received) as of December 31, 2018:

	Financial Derivative Assets								Financial Derivative Liabilities
Counterparty	Forward Foreign Currency Contracts		Purchased Options		Swap Agreements		Total Over the Counter		Forward Foreign Currency Contracts			Written Options			Swap Agreements			Total Over the Counter			Net Market Value of OTC Derivatives			Collateral Pledged/ (Received)			Net Exposure(7)
AZD	$	0	$	0	$	0	$	0	$	(35	)	$	0		$	0		$	(35	)	$	(35	)	$	0		$	(35	)
BOA		925		0		0		925		(935	)		(14	)		(6	)		(955	)		(30	)		(420	)		(450	)
BPS		53		0		36		89		(35	)		(2	)		(133	)		(170	)		(81	)		0			(81	)
BRC		2		70		0		72		(48	)		(4	)		(103	)		(155	)		(83	)		0			(83	)
CBK		631		0		32		663		(883	)		(126	)		(29	)		(1,038	)		(375	)		296			(79	)
DUB		84		0		28		112		(160	)		0			0			(160	)		(48	)		(50	)		(98	)
FBF		0		0		0		0		(14	)		0			0			(14	)		(14	)		0			(14	)
GLM		271		3		346		620		(905	)		(17	)		0			(922	)		(302	)		298			(4	)
GST		0		0		0		0		0			(6	)		(80	)		(86	)		(86	)		0			(86	)
HUS		210		0		0		210		(382	)		0			(22	)		(404	)		(194	)		0			(194	)
IND		0		0		0		0		(243	)		0			0			(243	)		(243	)		0			(243	)
JPM		145		0		0		145		(73	)		(4	)		(132	)		(209	)		(64	)		0			(64	)
MSB		8		57		0		65		0			0			0			0			65			(20	)		45
MYC		0		0		244		244		0			(2	)		0			(2	)		242			(430	)		(188	)
MYI		61		0		0		61		(108	)		0			0			(108	)		(47	)		0			(47	)
NGF		0		0		0		0		(5	)		0			(11	)		(16	)		(16	)		0			(16	)
RBC		0		0		0		0		(22	)		0			0			(22	)		(22	)		0			(22	)
RYL		2		0		34		36		(10	)		0			0			(10	)		26			(5	)		21
SCX		23		0		0		23		(17	)		0			0			(17	)		6			0			6
SOG		0		0		0		0		0			0			(50	)		(50	)		(50	)		0			(50	)
SSB		0		0		0		0		(10	)		0			0			(10	)		(10	)		0			(10	)
TOR		0		0		253		253		0			0			0			0			253			0			253
UAG		0		0		0		0		(470	)		0			0			(470	)		(470	)		395			(75	)
Total Over the Counter	$	2,415	$	130	$	973	$	3,518	$	(4,355	)	$	(175	)	$	(566	)	$	(5,096	)

28 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

(n) Securities with an aggregate market value of $989 have been pledged as collateral for financial derivative instruments as governed by International Swaps and Derivatives Association, Inc. master agreements as of December 31, 2018.

⁽¹⁾ If the Portfolio is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽²⁾ If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽³⁾ Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate or sovereign issues as of period end serve as indicators of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

⁽⁴⁾ The maximum potential amount the Portfolio could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

⁽⁵⁾ The prices and resulting values for credit default swap agreements serve as indicators of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced indices’ credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

⁽⁶⁾ At the maturity date, the notional amount of the currency received will be exchanged back for the notional amount of the currency delivered.

⁽⁷⁾ Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information regarding master netting arrangements.

FAIR VALUE OF FINANCIAL DERIVATIVE INSTRUMENTS

The following is a summary of the fair valuation of the Portfolio’s derivative instruments categorized by risk exposure. See Note 7, Principal Risks, in the Notes to Financial Statements on risks of the Portfolio.

Fair Values of Financial Derivative Instruments on the Statement of Assets and Liabilities as of December 31, 2018:

	Derivatives not accounted for as hedging instruments
	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Exchange Contracts		Interest Rate Contracts		Total
Financial Derivative Instruments - Assets
Exchange-traded or centrally cleared
Purchased Options	$	0	$	0	$	0	$	0	$	1	$	1
Futures		0		0		0		0		333		333
Swap Agreements		0		28		0		0		306		334
	$	0	$	28	$	0	$	0	$	640	$	668
Over the counter
Forward Foreign Currency Contracts	$	0	$	0	$	0	$	2,415	$	0	$	2,415
Purchased Options		0		0		0		130		0		130
Swap Agreements		0		36		0		937		0		973
	$	0	$	36	$	0	$	3,482	$	0	$	3,518
	$	0	$	64	$	0	$	3,482	$	640	$	4,186
Financial Derivative Instruments - Liabilities
Exchange-traded or centrally cleared
Futures	$	0	$	0	$	0	$	0	$	307	$	307
Swap Agreements		0		197		0		0		660		857
	$	0	$	197	$	0	$	0	$	967	$	1,164
Over the counter
Forward Foreign Currency Contracts	$	0	$	0	$	0	$	4,355	$	0	$	4,355
Written Options		0		51		0		124		0		175
Swap Agreements		0		471		0		0		95		566
	$	0	$	522	$	0	$	4,479	$	95	$	5,096
	$	0	$	719	$	0	$	4,479	$	1,062	$	6,260

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 29

Schedule of Investments PIMCO International Bond Portfolio (U.S. Dollar-Hedged) (Cont.)

The effect of Financial Derivative Instruments on the Statement of Operations for the period ended December 31, 2018:

	Derivatives not accounted for as hedging instruments
	Commodity Contracts		Credit Contracts			Equity Contracts		Foreign Exchange Contracts			Interest Rate Contracts			Total
Net Realized Gain (Loss) on Financial Derivative Instruments
Exchange-traded or centrally cleared
Purchased Options	$	0	$	0		$	0	$	0		$	45		$	45
Written Options		0		0			0		0			94			94
Futures		0		0			0		0			(2,588	)		(2,588	)
Swap Agreements		0		(2,441	)		0		0			14,130			11,689
	$	0	$	(2,441	)	$	0	$	0		$	11,681		$	9,240
Over the counter
Forward Foreign Currency Contracts	$	0	$	0		$	0	$	7,516		$	0		$	7,516
Purchased Options		0		0			0		40			(104	)		(64	)
Written Options		0		74			0		780			35			889
Swap Agreements		0		(85	)		0		5,197			(23	)		5,089
	$	0	$	(11	)	$	0	$	13,533		$	(92	)	$	13,430
	$	0	$	(2,452	)	$	0	$	13,533		$	11,589		$	22,670
Net Change in Unrealized Appreciation (Depreciation) on Financial Derivative Instruments
Exchange-traded or centrally cleared
Purchased Options	$	0	$	0		$	0	$	0		$	(13	)	$	(13	)
Written Options		0		0			0		0			(25	)		(25	)
Futures		0		0			0		0			(40	)		(40	)
Swap Agreements		0		2,809			0		0			(4,777	)		(1,968	)
	$	0	$	2,809		$	0	$	0		$	(4,855	)	$	(2,046	)
Over the counter
Forward Foreign Currency Contracts	$	0	$	0		$	0	$	2,182		$	0		$	2,182
Purchased Options		0		0			0		18			104			122
Written Options		0		(8	)		0		(116	)		(17	)		(141	)
Swap Agreements		0		42			0		(4,356	)		(182	)		(4,496	)
	$	0	$	34		$	0	$	(2,272	)	$	(95	)	$	(2,333	)
	$	0	$	2,843		$	0	$	(2,272	)	$	(4,950	)	$	(4,379	)

FAIR VALUE MEASUREMENTS

The following is a summary of the fair valuations according to the inputs used as of December 31, 2018 in valuing the Portfolio’s assets and liabilities:

Category and Subcategory	Level 1		Level 2		Level 3		Fair Value at 12/31/2018
Investments in Securities, at Value
Argentina
Sovereign Issues	$	0	$	735	$	0	$	735
Australia
Asset-Backed Securities		0		532		0		532
Corporate Bonds & Notes		0		299		0		299
Sovereign Issues		0		103		0		103
Brazil
Corporate Bonds & Notes		0		2,772		0		2,772
Canada
Corporate Bonds & Notes		0		9,103		0		9,103
Non-Agency Mortgage-Backed Securities		0		1,004		0		1,004
Sovereign Issues		0		10,751		0		10,751
Cayman Islands
Asset-Backed Securities		0		14,119		0		14,119
Corporate Bonds & Notes		0		1,959		0		1,959
Denmark
Corporate Bonds & Notes		0		15,298		0		15,298
France
Corporate Bonds & Notes		0		9,216		0		9,216
Sovereign Issues		0		10,470		0		10,470
Germany
Corporate Bonds & Notes		0		5,473		0		5,473
Guernsey, Channel Islands
Corporate Bonds & Notes		0		786		0		786

Category and Subcategory	Level 1		Level 2		Level 3		Fair Value at 12/31/2018
Hong Kong
Corporate Bonds & Notes	$	0	$	901	$	0	$	901
India
Corporate Bonds & Notes		0		199		0		199
Indonesia
Corporate Bonds & Notes		0		304		0		304
Ireland
Asset-Backed Securities		0		2,399		0		2,399
Corporate Bonds & Notes		0		3,991		0		3,991
Sovereign Issues		0		1,048		0		1,048
Israel
Sovereign Issues		0		786		0		786
Italy
Corporate Bonds & Notes		0		3,804		0		3,804
Sovereign Issues		0		8,071		0		8,071
Japan
Corporate Bonds & Notes		0		8,374		0		8,374
Sovereign Issues		0		15,747		0		15,747
Jersey, Channel Islands
Corporate Bonds & Notes		0		1,092		0		1,092
Kuwait
Sovereign Issues		0		2,989		0		2,989
Lithuania
Sovereign Issues		0		1,059		0		1,059
Luxembourg
Asset-Backed Securities		0		199		0		199
Corporate Bonds & Notes		0		1,492		0		1,492

30 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

Category and Subcategory	Level 1		Level 2		Level 3		Fair Value at 12/31/2018
Multinational
Corporate Bonds & Notes	$	0	$	930	$	0	$	930
Netherlands
Asset-Backed Securities		0		767		0		767
Corporate Bonds & Notes		0		9,330		0		9,330
Norway
Corporate Bonds & Notes		0		1,589		0		1,589
Sovereign Issues		0		221		0		221
Poland
Sovereign Issues		0		1,787		0		1,787
Portugal
Corporate Bonds & Notes		0		100		0		100
Qatar
Corporate Bonds & Notes		0		408		0		408
Sovereign Issues		0		5,732		0		5,732
Saudi Arabia
Sovereign Issues		0		9,740		0		9,740
Singapore
Corporate Bonds & Notes		0		3,321		0		3,321
Slovenia
Sovereign Issues		0		6,636		0		6,636
South Korea
Corporate Bonds & Notes		0		391		0		391
Sovereign Issues		0		202		0		202
Spain
Asset-Backed Securities		0		163		0		163
Corporate Bonds & Notes		0		3,899		0		3,899
Sovereign Issues		0		11,759		0		11,759
Supranational
Corporate Bonds & Notes		0		575		0		575
Sweden
Corporate Bonds & Notes		0		26,033		0		26,033
Switzerland
Corporate Bonds & Notes		0		5,268		0		5,268
Sovereign Issues		0		453		0		453
United Arab Emirates
Corporate Bonds & Notes		0		687		0		687
Sovereign Issues		0		1,348		0		1,348
United Kingdom
Corporate Bonds & Notes		0		29,935		0		29,935
Non-Agency Mortgage-Backed Securities		0		9,068		0		9,068
Preferred Securities		0		171		0		171
Sovereign Issues		0		12,576		0		12,576

Category and Subcategory	Level 1			Level 2			Level 3		Fair Value at 12/31/2018
United States
Asset-Backed Securities	$	0		$	29,885		$	0	$	29,885
Corporate Bonds & Notes		0			88,733			0		88,733
Loan Participations and Assignments		0			1,026			0		1,026
Municipal Bonds & Notes		0			140			0		140
Non-Agency Mortgage-Backed Securities		0			8,699			0		8,699
U.S. Government Agencies		0			98,176			0		98,176
U.S. Treasury Obligations		0			37,398			0		37,398
Short-Term Instruments
Repurchase Agreements		0			381			0		381
Argentina Treasury Bills		0			379			0		379
France Treasury Bills		0			29,110			0		29,110
Japan Treasury Bills		0			22,267			0		22,267
Netherlands Treasury Bills		0			2,752			0		2,752
	$	0		$	597,110		$	0	$	597,110
Investments in Affiliates, at Value
Short-Term Instruments
Central Funds Used for Cash Management Purposes	$	18,179		$	0		$	0	$	18,179
Total Investments	$	18,179		$	597,110		$	0	$	615,289
Short Sales, at Value - Liabilities
Canada
Sovereign Issues	$	0		$	(5,621	)	$	0	$	(5,621	)
Financial Derivative Instruments - Assets
Exchange-traded or centrally cleared		333			326			0		659
Over the counter		0			3,518			0		3,518
	$	333		$	3,844		$	0	$	4,177
Financial Derivative Instruments - Liabilities
Exchange-traded or centrally cleared		(307	)		(857	)		0		(1,164	)
Over the counter		0			(5,096	)		0		(5,096	)
	$	(307	)	$	(5,953	)	$	0	$	(6,260	)
Total Financial Derivative Instruments	$	26		$	(2,109	)	$	0	$	(2,083	)
Totals	$	18,205		$	589,380		$	0	$	607,585

There were no significant transfers into or out of Level 3 during the period ended December 31, 2018.

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 31

Notes to Financial Statements

1. ORGANIZATION

PIMCO Variable Insurance Trust (the “Trust”) is a Delaware statutory trust established under a trust instrument dated October 3, 1997. The Trust is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Trust is designed to be used as an investment vehicle by separate accounts of insurance companies that fund variable annuity contracts and variable life insurance policies and by qualified pension and retirement plans. Information presented in these financial statements pertains to the Institutional Class, Administrative Class and Advisor Class shares of the PIMCO International Bond Portfolio (U.S. Dollar-Hedged) (formerly the PIMCO Foreign Bond Portfolio (U.S. Dollar-Hedged)) (the “Portfolio”) offered by the Trust. Pacific Investment Management Company LLC (“PIMCO”) serves as the investment adviser (the “Adviser”) for the Portfolio.

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Portfolio is treated as an investment company under the reporting requirements of U.S. GAAP. The functional and reporting currency for the Portfolio is the U.S. dollar. The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

(a) Securities Transactions and Investment Income  Securities transactions are recorded as of the trade date for financial reporting purposes. Securities purchased or sold on a when-issued or delayed-delivery basis may be settled beyond a standard settlement period for the security after the trade date. Realized gains (losses) from securities sold are recorded on the identified cost basis. Dividend income is recorded on the ex-dividend date, except certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Portfolio is informed of the ex-dividend date. Interest income, adjusted for the accretion of discounts and amortization of premiums, is recorded on the accrual basis from settlement date, with the exception of securities with a forward starting effective date, where interest income is recorded on the accrual basis from effective date. For convertible securities, premiums attributable to the conversion feature are not amortized. Estimated tax liabilities on certain foreign securities are recorded on an accrual basis and are reflected as components of interest income or net change in unrealized appreciation (depreciation) on investments on the Statement of

Operations, as appropriate. Tax liabilities realized as a result of such security sales are reflected as a component of net realized gain (loss) on investments on the Statement of Operations. Paydown gains (losses) on mortgage-related and other asset-backed securities, if any, are recorded as components of interest income on the Statement of Operations. Income or short-term capital gain distributions received from registered investment companies, if any, are recorded as dividend income. Long-term capital gain distributions received from registered investment companies, if any, are recorded as realized gains.

Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivable when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is probable.

(b) Foreign Currency Translation  The market values of foreign securities, currency holdings and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the current exchange rates each business day. Purchases and sales of securities and income and expense items denominated in foreign currencies, if any, are translated into U.S. dollars at the exchange rate in effect on the transaction date. The Portfolio does not separately report the effects of changes in foreign exchange rates from changes in market prices on securities held. Such changes are included in net realized gain (loss) and net change in unrealized appreciation (depreciation) from investments on the Statement of Operations. The Portfolio may invest in foreign currency-denominated securities and may engage in foreign currency transactions either on a spot (cash) basis at the rate prevailing in the currency exchange market at the time or through a forward foreign currency contract. Realized foreign exchange gains (losses) arising from sales of spot foreign currencies, currency gains (losses) realized between the trade and settlement dates on securities transactions and the difference between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid are included in net realized gain (loss) on foreign currency transactions on the Statement of Operations. Net unrealized foreign exchange gains (losses) arising from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period are included in net change in unrealized appreciation (depreciation) on foreign currency assets and liabilities on the Statement of Operations.

(c) Multi-Class Operations  Each class offered by the Trust has equal rights as to assets and voting privileges (except that shareholders of a class have exclusive voting rights regarding any matter relating solely to that class of shares). Income and non-class specific expenses are

32 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

allocated daily to each class on the basis of the relative net assets. Realized and unrealized capital gains (losses) are allocated daily based on the relative net assets of each class of the Portfolio. Class specific expenses, where applicable, currently include supervisory and administrative and distribution and servicing fees. Under certain circumstances, the per share net asset value (“NAV”) of a class of the Portfolio’s shares may be different from the per share NAV of another class of shares as a result of the different daily expense accruals applicable to each class of shares.

(d) Distributions to Shareholders  Distributions from net investment income, if any, are declared daily and distributed to shareholders monthly. Net realized capital gains earned by the Portfolio, if any, will be distributed no less frequently than once each year.

Income distributions and capital gain distributions are determined in accordance with income tax regulations which may differ from U.S. GAAP. Differences between tax regulations and U.S. GAAP may cause timing differences between income and capital gain recognition. Further, the character of investment income and capital gains may be different for certain transactions under the two methods of accounting. As a result, income distributions and capital gain distributions declared during a fiscal period may differ significantly from the net investment income (loss) and realized gains (losses) reported on the Portfolio’s annual financial statements presented under U.S. GAAP.

If the Portfolio estimates that a portion of its distribution may be comprised of amounts from sources other than net investment income in accordance with its policies and good accounting practices, the Portfolio will notify shareholders of the estimated composition of such distribution through a Section 19 Notice. For these purposes, the Portfolio estimates the source or sources from which a distribution is paid, to the close of the period as of which it is paid, in reference to its internal accounting records and related accounting practices. If, based on such accounting records and practices, it is estimated that a particular distribution does not include capital gains or paid-in surplus or other capital sources, a Section 19 Notice generally would not be issued. It is important to note that differences exist between the Portfolio’s daily internal accounting records and practices, the Portfolio’s financial statements presented in accordance with U.S. GAAP, and recordkeeping practices under income tax regulations. For instance, the Portfolio’s internal accounting records and practices may take into account, among other factors, tax-related characteristics of certain sources of distributions that differ from treatment under U.S. GAAP. Examples of such differences may include, among others, the treatment of paydowns on mortgage-backed securities purchased at a discount and periodic payments under interest rate swap contracts. Accordingly, among other consequences, it is possible that the Portfolio may not issue a Section 19 Notice in situations where the Portfolio’s

financial statements prepared later and in accordance with U.S. GAAP and/or the final tax character of those distributions might later report that the sources of those distributions included capital gains and/or a return of capital. Final determination of a distribution’s tax character will be provided to shareholders when such information is available.

Distributions classified as a tax basis return of capital, if any, are reflected on the Statements of Changes in Net Assets and have been recorded to paid in capital on the Statement of Assets and Liabilities. In addition, other amounts have been reclassified between distributable earnings (accumulated loss) and paid in capital on the Statement of Assets and Liabilities to more appropriately conform U.S. GAAP to tax characterizations of distributions.

(e) New Accounting Pronouncements  In August 2016, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”), ASU 2016-15, which amends Accounting Standards Codification (“ASC”) 230 to clarify guidance on the classification of certain cash receipts and cash payments in the Statement of Cash Flows. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In November 2016, the FASB issued ASU 2016-18 which amends ASC 230 to provide guidance on the classification and presentation of changes in restricted cash and restricted cash equivalents on the Statement of Cash Flows. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In March 2017, the FASB issued ASU 2017-08 which provides guidance related to the amortization period for certain purchased callable debt securities held at a premium. The ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In August 2018, the FASB issued ASU 2018-13 which modifies certain disclosure requirements for fair value measurements in ASC 820. The ASU is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. At this time, management has elected to early adopt the amendments that allow for removal of certain disclosure requirements. Management plans to adopt the amendments that require additional fair value measurement disclosures for annual periods beginning after December 15, 2019, and interim

ANNUAL REPORT DECEMBER 31, 2018 33

Notes to Financial Statements (Cont.)

periods within those annual periods. Management is currently evaluating the impact of these changes on the financial statements.

In August 2018, the U.S. Securities and Exchange Commission (“SEC”) adopted amendments to certain rules and forms for the purpose of disclosure update and simplification. The compliance date for these amendments is 30 days after date of publication in the Federal Register, which was on October 4, 2018. Management has adopted these amendments and the changes are incorporated throughout all periods presented in the financial statements.

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

(a) Investment Valuation Policies  The price of the Portfolio’s shares is based on the Portfolio’s NAV. The NAV of the Portfolio, or each of its share classes, as applicable, is determined by dividing the total value of portfolio investments and other assets, less any liabilities attributable to the Portfolio or class, by the total number of shares outstanding of the Portfolio or class.

On each day that the New York Stock Exchange (“NYSE”) is open, Portfolio shares are ordinarily valued as of the close of regular trading (“NYSE Close”). Information that becomes known to the Portfolio or its agents after the time as of which NAV has been calculated on a particular day will not generally be used to retroactively adjust the price of a security or the NAV determined earlier that day. The Portfolio reserves the right to change the time as of which its NAV is calculated if the Portfolio closes earlier, or as permitted by the SEC.

For purposes of calculating a NAV, portfolio securities and other assets for which market quotes are readily available are valued at market value. Market value is generally determined on the basis of official closing prices or the last reported sales prices, or if no sales are reported, based on quotes obtained from established market makers or prices (including evaluated prices) supplied by the Portfolio’s approved pricing services, quotation reporting systems and other third-party sources (together, “Pricing Services”). The Portfolio will normally use pricing data for domestic equity securities received shortly after the NYSE Close and does not normally take into account trading, clearances or settlements that take place after the NYSE Close. If market value pricing is used, a foreign (non-U.S.) equity security traded on a foreign exchange or on more than one exchange is typically valued using pricing information from the exchange considered by the Adviser to be the primary exchange. A foreign (non-U.S.) equity security will be valued as of the close of trading on the foreign exchange, or the NYSE Close, if the NYSE Close occurs before the end of trading on the foreign exchange. Domestic and foreign (non-U.S.) fixed income securities, non-exchange traded derivatives, and equity options are normally valued on the basis of quotes obtained from brokers and

dealers or Pricing Services using data reflecting the earlier closing of the principal markets for those securities. Prices obtained from Pricing Services may be based on, among other things, information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics. Certain fixed income securities purchased on a delayed-delivery basis are marked to market daily until settlement at the forward settlement date. Exchange-traded options, except equity options, futures and options on futures are valued at the settlement price determined by the relevant exchange. Swap agreements are valued on the basis of bid quotes obtained from brokers and dealers or market-based prices supplied by Pricing Services. The Portfolio’s investments in open-end management investment companies, other than exchange-traded funds (“ETFs”), are valued at the NAVs of such investments. Open-end management investment companies may include affiliated funds.

If a foreign (non-U.S.) equity security’s value has materially changed after the close of the security’s primary exchange or principal market but before the NYSE Close, the security may be valued at fair value based on procedures established and approved by the Board of Trustees of the Trust (the “Board”). Foreign (non-U.S.) equity securities that do not trade when the NYSE is open are also valued at fair value. With respect to foreign (non-U.S.) equity securities, the Portfolio may determine the fair value of investments based on information provided by Pricing Services and other third-party vendors, which may recommend fair value or adjustments with reference to other securities, indices or assets. In considering whether fair valuation is required and in determining fair values, the Portfolio may, among other things, consider significant events (which may be considered to include changes in the value of U.S. securities or securities indices) that occur after the close of the relevant market and before the NYSE Close. The Portfolio may utilize modeling tools provided by third-party vendors to determine fair values of foreign (non-U.S.) securities. For these purposes, any movement in the applicable reference index or instrument (“zero trigger”) between the earlier close of the applicable foreign market and the NYSE Close may be deemed to be a significant event, prompting the application of the pricing model (effectively resulting in daily fair valuations). Foreign exchanges may permit trading in foreign (non-U.S.) equity securities on days when the Trust is not open for business, which may result in the Portfolio’s portfolio investments being affected when shareholders are unable to buy or sell shares.

Senior secured floating rate loans for which an active secondary market exists to a reliable degree will be valued at the mean of the last available bid/ask prices in the market for such loans, as provided by a Pricing Service. Senior secured floating rate loans for which an active secondary market does not exist to a reliable degree will be valued at

34 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

fair value, which is intended to approximate market value. In valuing a senior secured floating rate loan at fair value, the factors considered may include, but are not limited to, the following: (a) the creditworthiness of the borrower and any intermediate participants, (b) the terms of the loan, (c) recent prices in the market for similar loans, if any, and (d) recent prices in the market for instruments of similar quality, rate, period until next interest rate reset and maturity.

Investments valued in currencies other than the U.S. dollar are converted to the U.S. dollar using exchange rates obtained from Pricing Services. As a result, the value of such investments and, in turn, the NAV of the Portfolio’s shares may be affected by changes in the value of currencies in relation to the U.S. dollar. The value of investments traded in markets outside the United States or denominated in currencies other than the U.S. dollar may be affected significantly on a day that the Trust is not open for business. As a result, to the extent that the Portfolio holds foreign (non-U.S.) investments, the value of those investments may change at times when shareholders are unable to buy or sell shares and the value of such investments will be reflected in the Portfolio’s next calculated NAV.

Investments for which market quotes or market based valuations are not readily available are valued at fair value as determined in good faith by the Board or persons acting at their direction. The Board has adopted methods for valuing securities and other assets in circumstances where market quotes are not readily available, and has delegated to the Adviser the responsibility for applying the fair valuation methods. In the event that market quotes or market based valuations are not readily available, and the security or asset cannot be valued pursuant to a Board approved valuation method, the value of the security or asset will be determined in good faith by the Board. Market quotes are considered not readily available in circumstances where there is an absence of current or reliable market-based data (e.g., trade information, bid/ask information, indicative market quotations (“Broker Quotes”), Pricing Services’ prices), including where events occur after the close of the relevant market, but prior to the NYSE Close, that materially affect the values of the Portfolio’s securities or assets. In addition, market quotes are considered not readily available when, due to extraordinary circumstances, the exchanges or markets on which the securities trade do not open for trading for the entire day and no other market prices are available. The Board has delegated, to the Adviser, the responsibility for monitoring significant events that may materially affect the values of the Portfolio’s securities or assets and for determining whether the value of the applicable securities or assets should be reevaluated in light of such significant events.

When the Portfolio uses fair valuation to determine the value of a portfolio security or other asset for purposes of calculating its NAV,

such investments will not be priced on the basis of quotes from the primary market in which they are traded, but rather may be priced by another method that the Board or persons acting at their direction believe reflects fair value. Fair valuation may require subjective determinations about the value of a security. While the Trust’s policy is intended to result in a calculation of the Portfolio’s NAV that fairly reflects security values as of the time of pricing, the Trust cannot ensure that fair values determined by the Board or persons acting at their direction would accurately reflect the price that the Portfolio could obtain for a security if it were to dispose of that security as of the time of pricing (for instance, in a forced or distressed sale). The prices used by the Portfolio may differ from the value that would be realized if the securities were sold. The Portfolio’s use of fair valuation may also help to deter “stale price arbitrage” as discussed under the “Frequent or Excessive Purchases, Exchanges and Redemptions” section in the Portfolio’s prospectus.

(b) Fair Value Hierarchy  U.S. GAAP describes fair value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into levels (Level 1, 2, or 3). The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Levels 1, 2, and 3 of the fair value hierarchy are defined as follows:

^∎  Level 1 — Quoted prices in active markets or exchanges for identical assets and liabilities.

^∎  Level 2 — Significant other observable inputs, which may include, but are not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market corroborated inputs.

^∎  Level 3 — Significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, which may include assumptions made by the Board or persons acting at their direction that are used in determining the fair value of investments.

In accordance with the requirements of U.S. GAAP, the amounts of transfers into and out of Level 3, if material, are disclosed in the Notes to Schedule of Investments for the Portfolio.

For fair valuations using significant unobservable inputs, U.S. GAAP requires a reconciliation of the beginning to ending balances for

ANNUAL REPORT DECEMBER 31, 2018 35

Notes to Financial Statements (Cont.)

reported fair values that presents changes attributable to realized gain (loss), unrealized appreciation (depreciation), purchases and sales, accrued discounts (premiums), and transfers into and out of the Level 3 category during the period. The end of period value is used for the transfers between Levels of the Portfolio’s assets and liabilities. Additionally, U.S. GAAP requires quantitative information regarding the significant unobservable inputs used in the determination of fair value of assets or liabilities categorized as Level 3 in the fair value hierarchy. In accordance with the requirements of U.S. GAAP, a fair value hierarchy, and if material, a Level 3 reconciliation and details of significant unobservable inputs, have been included in the Notes to Schedule of Investments for the Portfolio.

(c) Valuation Techniques and the Fair Value Hierarchy

Level 1 and Level 2 trading assets and trading liabilities, at fair value  The valuation methods (or “techniques”) and significant inputs used in determining the fair values of portfolio securities or other assets and liabilities categorized as Level 1 and Level 2 of the fair value hierarchy are as follows:

Fixed income securities including corporate, convertible and municipal bonds and notes, U.S. government agencies, U.S. treasury obligations, sovereign issues, bank loans, convertible preferred securities and non-U.S. bonds are normally valued on the basis of quotes obtained from brokers and dealers or Pricing Services that use broker-dealer quotations, reported trades or valuation estimates from their internal pricing models. The Pricing Services’ internal models use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar assets. Securities that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

Fixed income securities purchased on a delayed-delivery basis or as a repurchase commitment in a sale-buyback transaction are marked to market daily until settlement at the forward settlement date and are categorized as Level 2 of the fair value hierarchy.

Mortgage-related and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also normally valued by Pricing Services that use broker-dealer quotations, reported trades or valuation estimates from their internal pricing models. The pricing models for these securities usually consider tranche-level attributes, current market data, estimated cash flows and market-based yield spreads for each tranche, and incorporate deal collateral performance, as available. Mortgage-related and asset-backed securities that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

Common stocks, ETFs, exchange-traded notes and financial derivative instruments, such as futures contracts, rights and warrants, or options on futures that are traded on a national securities exchange, are stated at the last reported sale or settlement price on the day of valuation. To the extent these securities are actively traded and valuation adjustments are not applied, they are categorized as Level 1 of the fair value hierarchy.

Valuation adjustments may be applied to certain securities that are solely traded on a foreign exchange to account for the market movement between the close of the foreign market and the NYSE Close. These securities are valued using Pricing Services that consider the correlation of the trading patterns of the foreign security to the intraday trading in the U.S. markets for investments. Securities using these valuation adjustments are categorized as Level 2 of the fair value hierarchy. Preferred securities and other equities traded on inactive markets or valued by reference to similar instruments are also categorized as Level 2 of the fair value hierarchy.

Investments in registered open-end investment companies (other than ETFs) will be valued based upon the NAVs of such investments and are categorized as Level 1 of the fair value hierarchy. Investments in unregistered open-end investment companies will be calculated based upon the NAVs of such investments and are considered Level 1 provided that the NAVs are observable, calculated daily and are the value at which both purchases and sales will be conducted.

Equity exchange-traded options and over the counter financial derivative instruments, such as forward foreign currency contracts and options contracts derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors. These contracts are normally valued on the basis of quotes obtained from a quotation reporting system, established market makers or Pricing Services (normally determined as of the NYSE Close). Depending on the product and the terms of the transaction, financial derivative instruments can be valued by Pricing Services using a series of techniques, including simulation pricing models. The pricing models use inputs that are observed from actively quoted markets such as quoted prices, issuer details, indices, bid/ask spreads, interest rates, implied volatilities, yield curves, dividends and exchange rates. Financial derivative instruments that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

Centrally cleared swaps and over the counter swaps derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors. They are valued using a broker-dealer bid quotation or on market-based prices provided by Pricing Services (normally determined as of the NYSE close). Centrally cleared

36 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

swaps and over the counter swaps can be valued by Pricing Services using a series of techniques, including simulation pricing models. The pricing models may use inputs that are observed from actively quoted markets such as the overnight index swap rate (“OIS”), London Interbank Offered Rate (“LIBOR”) forward rate, interest rates, yield curves and credit spreads. These securities are categorized as Level 2 of the fair value hierarchy.

Level 3 trading assets and trading liabilities, at fair value  When a fair valuation method is applied by the Adviser that uses significant unobservable inputs, investments will be priced by a method that the

Board or persons acting at their direction believe reflects fair value and are categorized as Level 3 of the fair value hierarchy.

Short-term debt instruments (such as commercial paper) having a remaining maturity of 60 days or less may be valued at amortized cost, so long as the amortized cost value of such short-term debt instruments is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. These securities are categorized as Level 2 or Level 3 of the fair value hierarchy depending on the source of the base price.

4. SECURITIES AND OTHER INVESTMENTS

(a) Investments in Affiliates

The Portfolio may invest in the PIMCO Short Asset Portfolio and the PIMCO Short-Term Floating NAV Portfolio III (“Central Funds”) to the extent permitted by the Act and rules thereunder. The Central Funds are registered investment companies created for use solely by the series of the Trust and other series of registered investment companies advised by the Adviser, in connection with their cash management activities. The main investments of the Central Funds are money market and short maturity fixed income instruments. The Central Funds may incur expenses related to their investment activities, but do not pay Investment Advisory Fees or Supervisory and Administrative Fees to the Adviser. The Central Funds are considered to be affiliated with the Portfolio. The tables below show the Portfolio’s transactions in and earnings from investments in the affiliated Funds for the period ended December 31, 2018 (amounts in thousands^†):

Investment in PIMCO Short Asset Portfolio

Market Value 12/31/2017		Purchases at Cost		Proceeds from Sales		Net Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)			Market Value 12/31/2018		Dividend Income(1)		Realized Net Capital  Gain Distributions(1)
$	10,777	$	309	$	0	$	0	$	(98	)	$	10,988	$	297	$	13

Investment in PIMCO Short-Term Floating NAV Portfolio III

Market Value 12/31/2017		Purchases at Cost		Proceeds from Sales			Net Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)		Market Value 12/31/2018		Dividend Income(1)		Realized Net Capital  Gain Distributions(1)
$	7,671	$	188,012	$	(188,500	)	$	7	$	1	$	7,191	$	312	$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽¹⁾  The tax characterization of distributions is determined in accordance with Federal income tax regulations and may contain a return of capital. The actual tax characterization of distributions received is determined at the end of the fiscal year of the affiliated fund. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

(b) Investments in Securities

The Portfolio may utilize the investments and strategies described below to the extent permitted by the Portfolio’s investment policies.

Inflation-Indexed Bonds are fixed income securities whose principal value is periodically adjusted by the rate of inflation. The interest rate on these bonds is generally fixed at issuance at a rate lower than typical bonds. Over the life of an inflation-indexed bond, however, interest will be paid based on a principal value which is adjusted for inflation. Any increase or decrease in the principal amount of an inflation-indexed bond will be included as interest income on the Statement of Operations, even though investors do not receive their principal until maturity. Repayment of the original bond principal upon

maturity (as adjusted for inflation) is guaranteed in the case of U.S. Treasury Inflation-Protected Securities (“TIPS”). For bonds that do not provide a similar guarantee, the adjusted principal value of the bond repaid at maturity may be less than the original principal.

Loans and Other Indebtedness, Loan Participations and Assignments are direct debt instruments which are interests in amounts owed to lenders or lending syndicates by corporate, governmental, or other borrowers. The Portfolio’s investments in loans may be in the form of participations in loans or assignments of all or a portion of loans from third parties or investments in or originations of loans by the Portfolio. A loan is often administered by a bank or other financial institution (the “agent”) that acts as agent for all holders. The

ANNUAL REPORT DECEMBER 31, 2018 37

Notes to Financial Statements (Cont.)

agent administers the terms of the loan, as specified in the loan agreement. The Portfolio may invest in multiple series or tranches of a loan, which may have varying terms and carry different associated risks. When the Portfolio purchases assignments from agents it acquires direct rights against the borrowers of the loans. These loans may include participations in bridge loans, which are loans taken out by borrowers for a short period (typically less than one year) pending arrangement of more permanent financing through, for example, the issuance of bonds, frequently high yield bonds issued for the purpose of acquisitions.

The types of loans and related investments in which the Portfolio may invest include, among others, senior loans, subordinated loans (including second lien loans, B-Notes and mezzanine loans), whole loans, commercial real estate and other commercial loans and structured loans. The Portfolio may originate loans or acquire direct interests in loans through primary loan distributions and/or in private transactions. In the case of subordinated loans, there may be significant indebtedness ranking ahead of the borrower’s obligation to the holder of such a loan, including in the event of the borrower’s insolvency. Mezzanine loans are typically secured by a pledge of an equity interest in the mortgage borrower that owns the real estate rather than an interest in a mortgage.

Investments in loans may include unfunded loan commitments, which are contractual obligations for funding. Unfunded loan commitments may include revolving credit facilities, which may obligate the Portfolio to supply additional cash to the borrower on demand. Unfunded loan commitments represent a future obligation in full, even though a percentage of the committed amount may not be utilized by the borrower. When investing in a loan participation, the Portfolio has the right to receive payments of principal, interest and any fees to which it is entitled only from the agent selling the loan agreement and only upon receipt of payments by the agent from the borrower. The Portfolio may receive a commitment fee based on the undrawn portion of the underlying line of credit portion of a loan. In certain circumstances, the Portfolio may receive a penalty fee upon the prepayment of a loan by a borrower. Fees earned or paid are recorded as a component of interest income or interest expense, respectively, on the Statement of Operations. Unfunded loan commitments are reflected as a liability on the Statement of Assets and Liabilities.

Mortgage-Related and Other Asset-Backed Securities directly or indirectly represent a participation in, or are secured by and payable from, loans on real property. Mortgage-related securities are created from pools of residential or commercial mortgage loans, including mortgage loans made by savings and loan institutions, mortgage bankers, commercial banks and others. These securities provide a monthly payment which consists of both interest and principal. Interest

may be determined by fixed or adjustable rates. The rate of prepayments on underlying mortgages will affect the price and volatility of a mortgage-related security, and may have the effect of shortening or extending the effective duration of the security relative to what was anticipated at the time of purchase. The timely payment of principal and interest of certain mortgage-related securities is guaranteed with the full faith and credit of the U.S. Government. Pools created and guaranteed by non-governmental issuers, including government-sponsored corporations, may be supported by various forms of insurance or guarantees, but there can be no assurance that private insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Many of the risks of investing in mortgage-related securities secured by commercial mortgage loans reflect the effects of local and other economic conditions on real estate markets, the ability of tenants to make lease payments, and the ability of a property to attract and retain tenants. These securities may be less liquid and may exhibit greater price volatility than other types of mortgage-related or other asset-backed securities. Other asset-backed securities are created from many types of assets, including, but not limited to, auto loans, accounts receivable, such as credit card receivables and hospital account receivables, home equity loans, student loans, boat loans, mobile home loans, recreational vehicle loans, manufactured housing loans, aircraft leases, computer leases and syndicated bank loans.

Collateralized Debt Obligations (“CDOs”) include Collateralized Bond Obligations (“CBOs”), Collateralized Loan Obligations (“CLOs”) and other similarly structured securities. CBOs and CLOs are types of asset-backed securities. A CBO is a trust which is backed by a diversified pool of high risk, below investment grade fixed income securities. A CLO is a trust typically collateralized by a pool of loans, which may include, among others, domestic and foreign senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated below investment grade or equivalent unrated loans. The risks of an investment in a CDO depend largely on the type of the collateral securities and the class of the CDO in which the Portfolio invests. In addition to the normal risks associated with fixed income securities discussed elsewhere in this report and the Portfolio’s prospectus and statement of additional information (e.g., prepayment risk, credit risk, liquidity risk, market risk, structural risk, legal risk and interest rate risk (which may be exacerbated if the interest rate payable on a structured financing changes based on multiples of changes in interest rates or inversely to changes in interest rates)), CBOs, CLOs and other CDOs carry additional risks including, but not limited to, (i) the possibility that distributions from collateral securities will not be adequate to make interest or other payments, (ii) the quality of the collateral may decline in value or default, (iii) the risk that the Portfolio may invest in CBOs, CLOs, or other CDOs that are subordinate to other

38 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

classes, and (iv) the complex structure of the security may not be fully understood at the time of investment and may produce disputes with the issuer or unexpected investment results.

Collateralized Mortgage Obligations (“CMOs”) are debt obligations of a legal entity that are collateralized by whole mortgage loans or private mortgage bonds and divided into classes. CMOs are structured into multiple classes, often referred to as “tranches”, with each class bearing a different stated maturity and entitled to a different schedule for payments of principal and interest, including prepayments. CMOs may be less liquid and may exhibit greater price volatility than other types of mortgage-related or asset-backed securities.

Stripped Mortgage-Backed Securities (“SMBS”) are derivative multi-class mortgage securities. SMBS are usually structured with two classes that receive different proportions of the interest and principal distributions on a pool of mortgage assets. An SMBS will have one class that will receive all of the interest (the interest-only or “IO” class), while the other class will receive the entire principal (the principal-only or “PO” class). Payments received for IOs are included in interest income on the Statement of Operations. Because no principal will be received at the maturity of an IO, adjustments are made to the cost of the security on a monthly basis until maturity. These adjustments are included in interest income on the Statement of Operations. Payments received for POs are treated as reductions to the cost and par value of the securities.

Perpetual Bonds are fixed income securities with no maturity date but pay a coupon in perpetuity (with no specified ending or maturity date). Unlike typical fixed income securities, there is no obligation for perpetual bonds to repay principal. The coupon payments, however, are mandatory. While perpetual bonds have no maturity date, they may have a callable date in which the perpetuity is eliminated and the issuer may return the principal received on the specified call date. Additionally, a perpetual bond may have additional features, such as interest rate increases at periodic dates or an increase as of a predetermined point in the future.

Securities Issued by U.S. Government Agencies or Government-Sponsored Enterprises are obligations of and, in certain cases, guaranteed by, the U.S. Government, its agencies or instrumentalities. Some U.S. Government securities, such as Treasury bills, notes and bonds, and securities guaranteed by the Government National Mortgage Association (“GNMA” or “Ginnie Mae”), are supported by the full faith and credit of the U.S. Government; others, such as those of the Federal Home Loan Banks, are supported by the right of the issuer to borrow from the U.S. Department of the Treasury (the “U.S. Treasury”); and others, such as those of the Federal National Mortgage Association (“FNMA” or “Fannie Mae”), are supported by

the discretionary authority of the U.S. Government to purchase the agency’s obligations. U.S. Government securities may include zero coupon securities. Zero coupon securities do not distribute interest on a current basis and tend to be subject to a greater risk than interest-paying securities.

Government-related guarantors (i.e., not backed by the full faith and credit of the U.S. Government) include FNMA and the Federal Home Loan Mortgage Corporation (“FHLMC” or “Freddie Mac”). FNMA is a government-sponsored corporation. FNMA purchases conventional (i.e., not insured or guaranteed by any government agency) residential mortgages from a list of approved seller/servicers which include state and federally chartered savings and loan associations, mutual savings banks, commercial banks and credit unions and mortgage bankers. Pass-through securities issued by FNMA are guaranteed as to timely payment of principal and interest by FNMA, but are not backed by the full faith and credit of the U.S. Government. FHLMC issues Participation Certificates (“PCs”), which are pass-through securities, each representing an undivided interest in a pool of residential mortgages. FHLMC guarantees the timely payment of interest and ultimate collection of principal, but PCs are not backed by the full faith and credit of the U.S. Government.

Roll-timing strategies can be used where the Portfolio seeks to extend the expiration or maturity of a position, such as a TBA security on an underlying asset, by closing out the position before expiration and opening a new position with respect to substantially the same underlying asset with a later expiration date. TBA securities purchased or sold are reflected on the Statement of Assets and Liabilities as an asset or liability, respectively.

5. BORROWINGS AND OTHER FINANCING TRANSACTIONS

The Portfolio may enter into the borrowings and other financing transactions described below to the extent permitted by the Portfolio’s investment policies.

The following disclosures contain information on the Portfolio’s ability to lend or borrow cash or securities to the extent permitted under the Act, which may be viewed as borrowing or financing transactions by the Portfolio. The location of these instruments in the Portfolio’s financial statements is described below.

(a) Repurchase Agreements  Under the terms of a typical repurchase agreement, the Portfolio purchases an underlying debt obligation (collateral) subject to an obligation of the seller to repurchase, and the Portfolio to resell, the obligation at an agreed-upon price and time. In an open maturity repurchase agreement, there is no pre-determined repurchase date and the agreement can be terminated by the Portfolio

ANNUAL REPORT DECEMBER 31, 2018 39

Notes to Financial Statements (Cont.)

or counterparty at any time. The underlying securities for all repurchase agreements are held by the Portfolio’s custodian or designated subcustodians under tri-party repurchase agreements and in certain instances will remain in custody with the counterparty. The market value of the collateral must be equal to or exceed the total amount of the repurchase obligations, including interest. Repurchase agreements, if any, including accrued interest, are included on the Statement of Assets and Liabilities. Interest earned is recorded as a component of interest income on the Statement of Operations. In periods of increased demand for collateral, the Portfolio may pay a fee for the receipt of collateral, which may result in interest expense to the Portfolio.

(b) Reverse Repurchase Agreements  In a reverse repurchase agreement, the Portfolio delivers a security in exchange for cash to a financial institution, the counterparty, with a simultaneous agreement to repurchase the same or substantially the same security at an agreed upon price and date. In an open maturity reverse repurchase agreement, there is no pre-determined repurchase date and the agreement can be terminated by the Portfolio or counterparty at any time. The Portfolio is entitled to receive principal and interest payments, if any, made on the security delivered to the counterparty during the term of the agreement. Cash received in exchange for securities delivered plus accrued interest payments to be made by the Portfolio to counterparties are reflected as a liability on the Statement of Assets and Liabilities. Interest payments made by the Portfolio to counterparties are recorded as a component of interest expense on the Statement of Operations. In periods of increased demand for the security, the Portfolio may receive a fee for use of the security by the counterparty, which may result in interest income to the Portfolio. The Portfolio will segregate assets determined to be liquid by the Adviser or will otherwise cover its obligations under reverse repurchase agreements.

(c) Sale-Buybacks  A sale-buyback financing transaction consists of a sale of a security by the Portfolio to a financial institution, the counterparty, with a simultaneous agreement to repurchase the same or substantially the same security at an agreed-upon price and date. The Portfolio is not entitled to receive principal and interest payments, if any, made on the security sold to the counterparty during the term of the agreement. The agreed-upon proceeds for securities to be repurchased by the Portfolio are reflected as a liability on the Statement of Assets and Liabilities. The Portfolio will recognize net income represented by the price differential between the price received for the transferred security and the agreed-upon repurchase price. This is commonly referred to as the ‘price drop’. A price drop consists of (i) the foregone interest and inflationary income adjustments, if any, the Portfolio would have otherwise received had the security not been sold and (ii) the negotiated financing terms between the Portfolio and

counterparty. Foregone interest and inflationary income adjustments, if any, are recorded as components of interest income on the Statement of Operations. Interest payments based upon negotiated financing terms made by the Portfolio to counterparties are recorded as a component of interest expense on the Statement of Operations. In periods of increased demand for the security, the Portfolio may receive a fee for use of the security by the counterparty, which may result in interest income to the Portfolio. The Portfolio will segregate assets determined to be liquid by the Adviser or will otherwise cover its obligations under sale-buyback transactions.

(d) Short Sales  Short sales are transactions in which the Portfolio sells a security that it may not own. The Portfolio may make short sales of securities to (i) offset potential declines in long positions in similar securities, (ii) to increase the flexibility of the Portfolio, (iii) for investment return, (iv) as part of a risk arbitrage strategy, and (v) as part of its overall portfolio management strategies involving the use of derivative instruments. When the Portfolio engages in a short sale, it may borrow the security sold short and deliver it to the counterparty. The Portfolio will ordinarily have to pay a fee or premium to borrow a security and be obligated to repay the lender of the security any dividend or interest that accrues on the security during the period of the loan. Securities sold in short sale transactions and the dividend or interest payable on such securities, if any, are reflected as payable for short sales on the Statement of Assets and Liabilities. Short sales expose the Portfolio to the risk that it will be required to cover its short position at a time when the security or other asset has appreciated in value, thus resulting in losses to the Portfolio. A short sale is “against the box” if the Portfolio holds in its portfolio or has the right to acquire the security sold short, or securities identical to the security sold short, at no additional cost. The Portfolio will be subject to additional risks to the extent that it engages in short sales that are not “against the box.” The Portfolio’s loss on a short sale could theoretically be unlimited in cases where the Portfolio is unable, for whatever reason, to close out its short position.

6. FINANCIAL DERIVATIVE INSTRUMENTS

The Portfolio may enter into the financial derivative instruments described below to the extent permitted by the Portfolio’s investment policies.

The following disclosures contain information on how and why the Portfolio uses financial derivative instruments, and how financial derivative instruments affect the Portfolio’s financial position, results of operations and cash flows. The location and fair value amounts of these instruments on the Statement of Assets and Liabilities and the net realized gain (loss) and net change in unrealized appreciation (depreciation) on the Statement of Operations, each categorized by type

40 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

of financial derivative contract and related risk exposure, are included in a table in the Notes to Schedule of Investments. The financial derivative instruments outstanding as of period end and the amounts of net realized gain (loss) and net change in unrealized appreciation (depreciation) on financial derivative instruments during the period, as disclosed in the Notes to Schedule of Investments, serve as indicators of the volume of financial derivative activity for the Portfolio.

(a) Forward Foreign Currency Contracts may be engaged, in connection with settling planned purchases or sales of securities, to hedge the currency exposure associated with some or all of the Portfolio’s securities or as part of an investment strategy. A forward foreign currency contract is an agreement between two parties to buy and sell a currency at a set price on a future date. The market value of a forward foreign currency contract fluctuates with changes in foreign currency exchange rates. Forward foreign currency contracts are marked to market daily, and the change in value is recorded by the Portfolio as an unrealized gain (loss). Realized gains (losses) are equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed and are recorded upon delivery or receipt of the currency. These contracts may involve market risk in excess of the unrealized gain (loss) reflected on the Statement of Assets and Liabilities. In addition, the Portfolio could be exposed to risk if the counterparties are unable to meet the terms of the contracts or if the value of the currency changes unfavorably to the U.S. dollar. To mitigate such risk, cash or securities may be exchanged as collateral pursuant to the terms of the underlying contracts.

(b) Futures Contracts are agreements to buy or sell a security or other asset for a set price on a future date. The Portfolio may use futures contracts to manage its exposure to the securities markets or to movements in interest rates and currency values. The primary risks associated with the use of futures contracts are the imperfect correlation between the change in market value of the securities held by the Portfolio and the prices of futures contracts and the possibility of an illiquid market. Futures contracts are valued based upon their quoted daily settlement prices. Upon entering into a futures contract, the Portfolio is required to deposit with its futures broker an amount of cash, U.S. Government and Agency Obligations, or select sovereign debt, in accordance with the initial margin requirements of the broker or exchange. Futures contracts are marked to market daily and based on such movements in the price of the contracts, an appropriate payable or receivable for the change in value may be posted or collected by the Portfolio (“Futures Variation Margin”). Gains (losses) are recognized but not considered realized until the contracts expire or close. Futures contracts involve, to varying degrees, risk of loss in excess of the Futures Variation Margin included within exchange traded or centrally cleared financial derivative instruments on the Statement of Assets and Liabilities.

(c) Options Contracts may be written or purchased to enhance returns or to hedge an existing position or future investment.The Portfolio may write call and put options on securities and financial derivative instruments it owns or in which it may invest. Writing put options tends to increase the Portfolio’s exposure to the underlying instrument. Writing call options tends to decrease the Portfolio’s exposure to the underlying instrument. When the Portfolio writes a call or put, an amount equal to the premium received is recorded and subsequently marked to market to reflect the current value of the option written. These amounts are included on the Statement of Assets and Liabilities. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options which are exercised or closed are added to the proceeds or offset against amounts paid on the underlying futures, swap, security or currency transaction to determine the realized gain (loss). Certain options may be written with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. The Portfolio as a writer of an option has no control over whether the underlying instrument may be sold (“call”) or purchased (“put”) and as a result bears the market risk of an unfavorable change in the price of the instrument underlying the written option. There is the risk the Portfolio may not be able to enter into a closing transaction because of an illiquid market.

Purchasing call options tends to increase the Portfolio’s exposure to the underlying instrument. Purchasing put options tends to decrease the Portfolio’s exposure to the underlying instrument. The Portfolio pays a premium which is included as an asset on the Statement of Assets and Liabilities and subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options which expire are treated as realized losses. Certain options may be purchased with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. The risk associated with purchasing put and call options is limited to the premium paid. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the underlying investment transaction to determine the realized gain (loss) when the underlying transaction is executed.

Credit Default Swaptions may be written or purchased to hedge exposure to the credit risk of an investment without making a commitment to the underlying instrument. A credit default swaption is an option to sell or buy credit protection on a specific reference by entering into a pre-defined swap agreement by some specified date in the future.

Foreign Currency Options may be written or purchased to be used as a short or long hedge against possible variations in foreign exchange rates or to gain exposure to foreign currencies.

ANNUAL REPORT DECEMBER 31, 2018 41

Notes to Financial Statements (Cont.)

Interest Rate Swaptions may be written or purchased to enter into a pre-defined swap agreement or to shorten, extend, cancel or otherwise modify an existing swap agreement, by some specified date in the future. The writer of the swaption becomes the counterparty to the swap if the buyer exercises. The interest rate swaption agreement will specify whether the buyer of the swaption will be a fixed-rate receiver or a fixed-rate payer upon exercise.

Options on Exchange-Traded Futures Contracts (“Futures Option”) may be written or purchased to hedge an existing position or future investment, for speculative purposes or to manage exposure to market movements. A Futures Option is an option contract in which the underlying instrument is a single futures contract.

Options on Securities may be written or purchased to enhance returns or to hedge an existing position or future investment. An option on a security uses a specified security as the underlying instrument for the option contract.

(d) Swap Agreements are bilaterally negotiated agreements between the Portfolio and a counterparty to exchange or swap investment cash flows, assets, foreign currencies or market-linked returns at specified, future intervals. Swap agreements may be privately negotiated in the over the counter market (“OTC swaps”) or may be cleared through a third party, known as a central counterparty or derivatives clearing organization (“Centrally Cleared Swaps”). The Portfolio may enter into asset, credit default, cross-currency, interest rate, total return, variance and other forms of swap agreements to manage its exposure to credit, currency, interest rate, commodity, equity and inflation risk. In connection with these agreements, securities or cash may be identified as collateral or margin in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default or bankruptcy/insolvency.

Centrally Cleared Swaps are marked to market daily based upon valuations as determined from the underlying contract or in accordance with the requirements of the central counterparty or derivatives clearing organization. Changes in market value, if any, are reflected as a component of net change in unrealized appreciation (depreciation) on the Statement of Operations. Daily changes in valuation of centrally cleared swaps (“Swap Variation Margin”), if any, are disclosed within centrally cleared financial derivative instruments on the Statement of Assets and Liabilities. Centrally Cleared and OTC swap payments received or paid at the beginning of the measurement period are included on the Statement of Assets and Liabilities and represent premiums paid or received upon entering into the swap agreement to compensate for differences between the stated terms of the swap agreement and prevailing market conditions (credit spreads, currency exchange rates, interest rates, and other relevant factors). Upfront

premiums received (paid) are initially recorded as liabilities (assets) and subsequently marked to market to reflect the current value of the swap. These upfront premiums are recorded as realized gain (loss) on the Statement of Operations upon termination or maturity of the swap. A liquidation payment received or made at the termination of the swap is recorded as realized gain (loss) on the Statement of Operations. Net periodic payments received or paid by the Portfolio are included as part of realized gain (loss) on the Statement of Operations.

For purposes of applying certain of the Portfolio’s investment policies and restrictions, swap agreements, like other derivative instruments, may be valued by the Portfolio at market value, notional value or full exposure value. In the case of a credit default swap, in applying certain of the Portfolio’s investment policies and restrictions, the Portfolio will value the credit default swap at its notional value or its full exposure value (i.e., the sum of the notional amount for the contract plus the market value), but may value the credit default swap at market value for purposes of applying certain of the Portfolio’s other investment policies and restrictions. For example, the Portfolio may value credit default swaps at full exposure value for purposes of the Portfolio’s credit quality guidelines (if any) because such value in general better reflects the Portfolio’s actual economic exposure during the term of the credit default swap agreement. As a result, the Portfolio may, at times, have notional exposure to an asset class (before netting) that is greater or lesser than the stated limit or restriction noted in the Portfolio’s prospectus. In this context, both the notional amount and the market value may be positive or negative depending on whether the Portfolio is selling or buying protection through the credit default swap. The manner in which certain securities or other instruments are valued by the Portfolio for purposes of applying investment policies and restrictions may differ from the manner in which those investments are valued by other types of investors.

Entering into swap agreements involves, to varying degrees, elements of interest, credit, market and documentation risk in excess of the amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of contractual terms in the agreements and that there may be unfavorable changes in interest rates or the values of the asset upon which the swap is based.

The Portfolio’s maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from the counterparty over the contract’s remaining life, to the extent that amount is positive. The risk may be mitigated by having a master netting arrangement between the Portfolio and the counterparty and by the posting of collateral to the Portfolio to cover the Portfolio’s exposure to the counterparty.

42 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

To the extent the Portfolio has a policy to limit the net amount owed to or to be received from a single counterparty under existing swap agreements, such limitation only applies to counterparties to OTC swaps and does not apply to centrally cleared swaps where the counterparty is a central counterparty or derivatives clearing organization.

Credit Default Swap Agreements on corporate, loan, sovereign, U.S. municipal or U.S. Treasury issues are entered into to provide a measure of protection against defaults of the issuers (i.e., to reduce risk where the Portfolio owns or has exposure to the referenced obligation) or to take an active long or short position with respect to the likelihood of a particular issuer’s default. Credit default swap agreements involve one party making a stream of payments (referred to as the buyer of protection) to another party (the seller of protection) in exchange for the right to receive a specified return in the event that the referenced entity, obligation or index, as specified in the swap agreement, undergoes a certain credit event. As a seller of protection on credit default swap agreements, the Portfolio will generally receive from the buyer of protection a fixed rate of income throughout the term of the swap provided that there is no credit event. As the seller, the Portfolio would effectively add leverage to its portfolio because, in addition to its total net assets, the Portfolio would be subject to investment exposure on the notional amount of the swap.

If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. If the Portfolio is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. Recovery values are estimated by market makers considering either industry standard recovery rates or entity specific factors and considerations until a credit event occurs. If a credit event has occurred, the recovery value is determined by a facilitated auction whereby a minimum number of allowable broker bids, together with a specified valuation method, are used to calculate the settlement value. The ability to deliver other obligations may result in a cheapest-to-deliver

option (the buyer of protection’s right to choose the deliverable obligation with the lowest value following a credit event).

Credit default swap agreements on credit indices involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising the credit index. A credit index is a basket of credit instruments or exposures designed to be representative of some part of the credit market as a whole. These indices are made up of reference credits that are judged by a poll of dealers to be the most liquid entities in the credit default swap market based on the sector of the index. Components of the indices may include, but are not limited to, investment grade securities, high yield securities, asset-backed securities, emerging markets, and/or various credit ratings within each sector. Credit indices are traded using credit default swaps with standardized terms including a fixed spread and standard maturity dates. An index credit default swap references all the names in the index, and if there is a default, the credit event is settled based on that name’s weight in the index. The composition of the indices changes periodically, usually every six months, and for most indices, each name has an equal weight in the index. The Portfolio may use credit default swaps on credit indices to hedge a portfolio of credit default swaps or bonds, which is less expensive than it would be to buy many credit default swaps to achieve a similar effect. Credit default swaps on indices are instruments for protecting investors owning bonds against default, and traders use them to speculate on changes in credit quality.

Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate, loan, sovereign, U.S. municipal or U.S. Treasury issues as of period end, if any, are disclosed in the Notes to Schedule of Investments. They serve as an indicator of the current status of payment/performance risk and represent the likelihood or risk of default for the reference entity. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. For credit default swap agreements on asset-backed securities and credit indices, the quoted market prices and resulting values serve as the indicator of the current status of the payment/performance risk. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

ANNUAL REPORT DECEMBER 31, 2018 43

Notes to Financial Statements (Cont.)

The maximum potential amount of future payments (undiscounted) that the Portfolio as a seller of protection could be required to make under a credit default swap agreement equals the notional amount of the agreement. Notional amounts of each individual credit default swap agreement outstanding as of period end for which the Portfolio is the seller of protection are disclosed in the Notes to Schedule of Investments. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Portfolio for the same referenced entity or entities.

Cross-Currency Swap Agreements are entered into to gain or mitigate exposure to currency risk. Cross-currency swap agreements involve two parties exchanging two different currencies with an agreement to reverse the exchange at a later date at specified exchange rates. The exchange of currencies at the inception date of the contract takes place at the current spot rate. The re-exchange at maturity may take place at the same exchange rate, a specified rate, or the then current spot rate. Interest payments, if applicable, are made between the parties based on interest rates available in the two currencies at the inception of the contract. The terms of cross-currency swap contracts may extend for many years. Cross-currency swaps are usually negotiated with commercial and investment banks. Some cross-currency swaps may not provide for exchanging principal cash flows, but only for exchanging interest cash flows.

Interest Rate Swap Agreements may be entered into to help hedge against interest rate risk exposure and to maintain the Portfolio’s ability to generate income at prevailing market rates. The value of the fixed rate bonds that the Portfolio holds may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, the Portfolio may enter into interest rate swap agreements. Interest rate swap agreements involve the exchange by the Portfolio with another party for their respective commitment to pay or receive interest on the notional amount of principal. Certain forms of interest rate swap agreements may include: (i) interest rate caps, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates exceed a specified rate, or “cap”, (ii) interest rate floors, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates fall below a specified rate, or “floor”, (iii) interest rate collars, under which a party sells a cap and purchases a floor or vice versa in an attempt to protect itself against interest rate movements exceeding given minimum or maximum levels, (iv) callable interest rate swaps, under which the buyer pays an upfront fee in consideration for the right to early terminate the swap

transaction in whole, at zero cost and at a predetermined date and time prior to the maturity date, (v) spreadlocks, which allow the interest rate swap users to lock in the forward differential (or spread) between the interest rate swap rate and a specified benchmark, or (vi) basis swaps, under which two parties can exchange variable interest rates based on different segments of money markets.

Volatility Swap Agreements are also known as forward volatility agreements and volatility swaps and are agreements in which the counterparties agree to make payments in connection with changes in the volatility (i.e., the magnitude of change over a specified period of time) of an underlying referenced instrument, such as a currency, rate, index, security or other financial instrument. Volatility swaps permit the parties to attempt to hedge volatility risk and/or take positions on the projected future volatility of an underlying referenced instrument. For example, the Portfolio may enter into a volatility swap in order to take the position that the referenced instrument’s volatility will increase over a particular period of time. If the referenced instrument’s volatility does increase over the specified time, the Portfolio will receive payment from its counterparty based upon the amount by which the referenced instrument’s realized volatility level exceeds a volatility level agreed upon by the parties. If the referenced instrument’s volatility does not increase over the specified time, the Portfolio will make a payment to the counterparty based upon the amount by which the referenced instrument’s realized volatility level falls below the volatility level agreed upon by the parties. At the maturity date, a net cash flow is exchanged, where the payoff amount is equivalent to the difference between the realized price volatility of the referenced instrument and the strike multiplied by the notional amount. As a receiver of the realized price volatility, the Portfolio would receive the payoff amount when the realized price volatility of the referenced instrument is greater than the strike and would owe the payoff amount when the volatility is less than the strike. As a payer of the realized price volatility, the Portfolio would owe the payoff amount when the realized price volatility of the referenced instrument is greater than the strike and would receive the payoff amount when the volatility is less than the strike. Payments on a volatility swap will be greater if they are based upon the mathematical square of volatility (i.e., the measured volatility multiplied by itself, which is referred to as “variance”). This type of volatility swap is frequently referred to as a variance swap.

7. PRINCIPAL RISKS

The principal risks of investing in the Portfolio, which could adversely affect its net asset value, yield and total return, are listed below. Please see “Description of Principal Risks” in the Portfolio’s prospectus for a more detailed description of the risks of investing in the Portfolio.

Interest Rate Risk is the risk that fixed income securities will decline in value because of an increase in interest rates; a portfolio with a longer

44 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

average portfolio duration will be more sensitive to changes in interest rates than a portfolio with a shorter average portfolio duration.

Call Risk is the risk that an issuer may exercise its right to redeem a fixed income security earlier than expected (a call). Issuers may call outstanding securities prior to their maturity for a number of reasons (e.g., declining interest rates, changes in credit spreads and improvements in the issuer’s credit quality). If an issuer calls a security that the Portfolio has invested in, the Portfolio may not recoup the full amount of its initial investment and may be forced to reinvest in lower-yielding securities, securities with greater credit risks or securities with other, less favorable features.

Credit Risk is the risk that the Portfolio could lose money if the issuer or guarantor of a fixed income security, or the counterparty to a derivative contract, is unable or unwilling to meet its financial obligations.

High Yield Risk is the risk that high yield securities and unrated securities of similar credit quality (commonly known as “junk bonds”) are subject to greater levels of credit, call and liquidity risks. High yield securities are considered primarily speculative with respect to the issuer’s continuing ability to make principal and interest payments, and may be more volatile than higher-rated securities of similar maturity.

Market Risk is the risk that the value of securities owned by the Portfolio may go up or down, sometimes rapidly or unpredictably, due to factors affecting securities markets generally or particular industries.

Issuer Risk is the risk that the value of a security may decline for a reason directly related to the issuer, such as management performance, financial leverage and reduced demand for the issuer’s goods or services.

Liquidity Risk is the risk that a particular investment may be difficult to purchase or sell and that the Portfolio may be unable to sell illiquid securities at an advantageous time or price or achieve its desired level of exposure to a certain sector. Liquidity risk may result from the lack of an active market, reduced number and capacity of traditional market participants to make a market in fixed income securities, and may be magnified in a rising interest rate environment or other circumstances where investor redemptions from fixed income mutual funds may be higher than normal, causing increased supply in the market due to selling activity.

Derivatives Risk isthe risk of investing in derivative instruments (such as futures, swaps and structured securities), including leverage, liquidity, interest rate, market, credit and management risks, mispricing or valuation complexity. Changes in the value of the derivative may not correlate perfectly with, and may be more sensitive to market events

than, the underlying asset, rate or index, and the Portfolio could lose more than the initial amount invested. The Portfolio’s use of derivatives may result in losses to the Portfolio, a reduction in the Portfolio’s returns and/or increased volatility. Over-the-counter (“OTC”) derivatives are also subject to the risk that a counterparty to the transaction will not fulfill its contractual obligations to the other party, as many of the protections afforded to centrally-cleared derivative transactions might not be available for OTC derivatives. For derivatives traded on an exchange or through a central counterparty, credit risk resides with the Portfolio’s clearing broker, or the clearinghouse itself, rather than with a counterparty in an OTC derivative transaction. Changes in regulation relating to a mutual fund’s use of derivatives and related instruments could potentially limit or impact the Portfolio’s ability to invest in derivatives, limit the Portfolio’s ability to employ certain strategies that use derivatives and/or adversely affect the value of derivatives and the Portfolio’s performance.

Equity Risk is the risk that the value of equity securities, such as common stocks and preferred securities, may decline due to general market conditions which are not specifically related to a particular company or to factors affecting a particular industry or industries. Equity securities generally have greater price volatility than fixed income securities.

Mortgage-Related and Other Asset-Backed Securities Risk is the risk of investing in mortgage-related and other asset-backed securities, including interest rate risk, extension risk, prepayment risk and credit risk.

Foreign (Non-U.S.) Investment Risk is the risk that investing in foreign (non-U.S.) securities may result in the Portfolio experiencing more rapid and extreme changes in value than a portfolio that invests exclusively in securities of U.S. companies, due to smaller markets, differing reporting, accounting and auditing standards, increased risk of delayed settlement of portfolio transactions or loss of certificates of portfolio securities, and the risk of unfavorable foreign government actions, including nationalization, expropriation or confiscatory taxation, currency blockage, or political changes or diplomatic developments. Foreign securities may also be less liquid and more difficult to value than securities of U.S. issuers.

Emerging Markets Risk is the risk of investing in emerging market securities, primarily increased foreign (non-U.S.) investment risk.

Sovereign Debt Risk is the risk that investments in fixed income instruments issued by sovereign entities may decline in value as a result of default or other adverse credit event resulting from an issuer’s inability or unwillingness to make principal or interest payments in a timely fashion.

ANNUAL REPORT DECEMBER 31, 2018 45

Notes to Financial Statements (Cont.)

Currency Risk is the risk that foreign (non-U.S.) currencies will change in value relative to the U.S. dollar and affect the Portfolio’s investments in foreign (non-U.S.) currencies or in securities that trade in, and receive revenues in, or in derivatives that provide exposure to, foreign (non-U.S.) currencies.

Issuer Non-Diversification Risk is the risk of focusing investments in a small number of issuers, including being more susceptible to risks associated with a single economic, political or regulatory occurrence than a more diversified portfolio might be. Portfolios that are “non-diversified” may invest a greater percentage of their assets in the securities of a single issuer (such as bonds issued by a particular state) than portfolios that are “diversified”.

Leveraging Risk is the risk that certain transactions of the Portfolio, such as reverse repurchase agreements, loans of portfolio securities, and the use of when-issued, delayed delivery or forward commitment transactions, or derivative instruments, may give rise to leverage, magnifying gains and losses and causing the Portfolio to be more volatile than if it had not been leveraged. This means that leverage entails a heightened risk of loss.

Management Risk is the risk that the investment techniques and risk analyses applied by PIMCO will not produce the desired results and that legislative, regulatory, or tax restrictions, policies or developments may affect the investment techniques available to PIMCO and the individual portfolio manager in connection with managing the Portfolio. There is no guarantee that the investment objective of the Portfolio will be achieved.

Short Exposure Risk is the risk of entering into short sales, including the potential loss of more money than the actual cost of the investment, and the risk that the third party to the short sale will not fulfill its contractual obligations, causing a loss to the Portfolio.

8. MASTER NETTING ARRANGEMENTS

The Portfolio may be subject to various netting arrangements (“Master Agreements”) with select counterparties. Master Agreements govern the terms of certain transactions, and are intended to reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that is intended to improve legal certainty. Each type of Master Agreement governs certain types of transactions. Different types of transactions may be traded out of different legal entities or affiliates of a particular organization, resulting in the need for multiple agreements with a single counterparty. As the Master Agreements are specific to unique operations of different asset types, they allow the Portfolio to close out and net its total exposure to a counterparty in the event of a default with respect to all the transactions governed under a single Master

Agreement with a counterparty. For financial reporting purposes the Statement of Assets and Liabilities generally presents derivative assets and liabilities on a gross basis, which reflects the full risks and exposures prior to netting.

Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. Under most Master Agreements, collateral is routinely transferred if the total net exposure to certain transactions (net of existing collateral already in place) governed under the relevant Master Agreement with a counterparty in a given account exceeds a specified threshold, which typically ranges from zero to $250,000 depending on the counterparty and the type of Master Agreement. United States Treasury Bills and U.S. dollar cash are generally the preferred forms of collateral, although other securities may be used depending on the terms outlined in the applicable Master Agreement. Securities and cash pledged as collateral are reflected as assets on the Statement of Assets and Liabilities as either a component of Investments at value (securities) or Deposits with counterparty. Cash collateral received is not typically held in a segregated account and as such is reflected as a liability on the Statement of Assets and Liabilities as Deposits from counterparty. The market value of any securities received as collateral is not reflected as a component of NAV. The Portfolio’s overall exposure to counterparty risk can change substantially within a short period, as it is affected by each transaction subject to the relevant Master Agreement.

Master Repurchase Agreements and Global Master Repurchase Agreements (individually and collectively “Master Repo Agreements”) govern repurchase, reverse repurchase, and certain sale-buyback transactions between the Portfolio and select counterparties. Master Repo Agreements maintain provisions for, among other things, initiation, income payments, events of default, and maintenance of collateral. The market value of transactions under the Master Repo Agreement, collateral pledged or received, and the net exposure by counterparty as of period end are disclosed in the Notes to Schedule of Investments.

Master Securities Forward Transaction Agreements (“Master Forward Agreements”) govern certain forward settling transactions, such as TBA securities, delayed-delivery or certain sale-buyback transactions by and between the Portfolio and select counterparties. The Master Forward Agreements maintain provisions for, among other things, transaction initiation and confirmation, payment and transfer, events of default, termination, and maintenance of collateral. The market value of forward settling transactions, collateral pledged or received, and the net exposure by counterparty as of period end is disclosed in the Notes to Schedule of Investments.

46 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Such transactions require posting of initial margin as determined by each relevant clearing agency which is segregated in an account at a futures commission merchant (“FCM”) registered with the Commodity Futures Trading Commission (“CFTC”). In the United States, counterparty risk may be reduced as creditors of an FCM cannot have a claim to Portfolio assets in the segregated account. Portability of exposure reduces risk to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives unless the parties have agreed to a separate arrangement in respect of portfolio margining. The market value or accumulated unrealized appreciation (depreciation), initial margin posted, and any unsettled variation margin as of period end are disclosed in the Notes to Schedule of Investments.

International Swaps and Derivatives Association, Inc. Master Agreements and Credit Support Annexes (“ISDA Master Agreements”) govern bilateral OTC derivative transactions entered into by the Portfolio with select counterparties. ISDA Master Agreements maintain provisions for general obligations, representations, agreements, collateral posting and events of default or termination. Events of termination include conditions that may entitle counterparties to elect to terminate early and cause settlement of all outstanding transactions under the applicable ISDA Master Agreement. Any election to terminate early could be material to the financial statements. In limited circumstances, the ISDA Master Agreement may contain additional provisions that add counterparty protection beyond coverage of existing daily exposure if the counterparty has a decline in credit quality below a predefined level. These amounts, if any, may be segregated with a third-party custodian. The market value of OTC financial derivative instruments, collateral received or pledged, and net exposure by counterparty as of period end are disclosed in the Notes to Schedule of Investments.

9. FEES AND EXPENSES

(a) Investment Advisory Fee  PIMCO is a majority-owned subsidiary of Allianz Asset Management of America L.P. (“Allianz Asset Management”) and serves as the Adviser to the Trust, pursuant to an investment advisory contract. The Adviser receives a monthly fee from the Portfolio at an annual rate based on average daily net assets (the “Investment Advisory Fee”). The Investment Advisory Fee for all classes is charged at an annual rate as noted in the table in note (b) below.

(b) Supervisory and Administrative Fee  PIMCO serves as administrator (the “Administrator”) and provides supervisory and administrative services to the Trust for which it receives a monthly supervisory and administrative fee based on each share class’s average

daily net assets (the “Supervisory and Administrative Fee”). As the Administrator, PIMCO bears the costs of various third-party services, including audit, custodial, portfolio accounting, legal, transfer agency and printing costs.

The Investment Advisory Fee and Supervisory and Administrative Fees for all classes, as applicable, are charged at the annual rate as noted in the following table (calculated as a percentage of the Portfolio’s average daily net assets attributable to each class):

Investment Advisory Fee		Supervisory and Administrative Fee
All Classes		Institutional Class		Administrative Class		Advisor Class
	0.25%		0.50%		0.50%		0.50%

(c) Distribution and Servicing Fees  PIMCO Investments LLC, a wholly-owned subsidiary of PIMCO, serves as the distributor (“Distributor”) of the Trust’s shares.

The Trust has adopted an Administrative Services Plan with respect to the Administrative Class shares of the Portfolio pursuant to Rule 12b-1 under the Act (the “Administrative Plan”). Under the terms of the Administrative Plan, the Trust is permitted to compensate the Distributor, out of the Administrative Class assets of the Portfolio, in an amount up to 0.15% on an annual basis of the average daily net assets of that class, for providing or procuring through financial intermediaries administrative, recordkeeping and investor services for Administrative Class shareholders of the Portfolio.

The Trust has adopted a separate Distribution and Servicing Plan for the Advisor Class shares of the Portfolio (the “Distribution and Servicing Plan”). The Distribution and Servicing Plan has been adopted pursuant to Rule 12b-1 under the Act. The Distribution and Servicing Plan permits the Portfolio to compensate the Distributor for providing or procuring through financial intermediaries, distribution, administrative, recordkeeping, shareholder and/or related services with respect to Advisor Class shares. The Distribution and Servicing Plan permits the Portfolio to make total payments at an annual rate of up to 0.25% of its average daily net assets attributable to its Advisor Class shares.

	Distribution Fee		Servicing Fee
Administrative Class		—		0.15%
Advisor Class		0.25%		—

(d)Portfolio Expenses  PIMCO provides or procures supervisory and administrative services for shareholders and also bears the costs of various third-party services required by the Portfolio, including audit, custodial, portfolio accounting, legal, transfer agency and printing costs. The Trust is responsible for the following expenses: (i) taxes and governmental fees; (ii) brokerage fees and commissions and other portfolio transaction expenses; (iii) the costs of borrowing money,

ANNUAL REPORT DECEMBER 31, 2018 47

Notes to Financial Statements (Cont.)

including interest expense; (iv) fees and expenses of the Trustees who are not “interested persons” of PIMCO or the Trust, and any counsel retained exclusively for their benefit; (v) extraordinary expense, including costs of litigation and indemnification expenses; (vi) organizational expenses; and (vii) any expenses allocated or allocable to a specific class of shares, which include service fees payable with respect to the Administrative Class Shares, and may include certain other expenses as permitted by the Trust’s Multi-Class Plan adopted pursuant to Rule 18f-3 under the Act and subject to review and approval by the Trustees. The ratio of expenses to average net assets per share class, as disclosed on the Financial Highlights, may differ from the annual portfolio operating expenses per share class.

Each Trustee, other than those affiliated with PIMCO or its affiliates, receives an annual retainer of $41,200, plus $4,250 for each Board meeting attended in person, $850 for each committee meeting attended and $750 for each Board meeting attended telephonically, plus reimbursement of related expenses. In addition, the audit committee chair receives an additional annual retainer of $8,000, the valuation oversight committee lead receives an additional annual retainer of $8,500 (to the extent there are co-leads of the valuation oversight committee, the annual retainer will be split evenly between the co-leads, so that each co-lead individually receives an additional retainer of $4,250) and each other committee chair receives an additional annual retainer of $5,500. The Lead Independent Trustee receives an annual retainer of $7,000.

These expenses are allocated on a pro rata basis to each Portfolio of the Trust according to its respective net assets. The Trust pays no compensation directly to any Trustee or any other officer who is affiliated with the Administrator, all of whom receive remuneration for their services to the Trust from the Administrator or its affiliates.

(e)Expense Limitation  Pursuant to the Expense Limitation Agreement, PIMCO has agreed to waive a portion of the Portfolio’s Supervisory and Administrative Fee, or reimburse the Portfolio, to the extent that the Portfolio’s organizational expenses, pro rata share of expenses related to obtaining or maintaining a Legal Entity Identifier and pro rata share of Trustee Fees exceed 0.0049%, the “Expense Limit” (calculated as a percentage of the Portfolio’s average daily net assets attributable to each class). The Expense Limitation Agreement will automatically renew for one-year terms unless PIMCO provides written notice to the Trust at least 30 days prior to the end of the then current term.

Under certain conditions,PIMCO may be reimbursed for amounts waived pursuant to the Expense Limitation Agreement in future periods, not to exceed thirty-six months after the waiver. At December 31, 2018, there were no recoverable amounts.

10. RELATED PARTY TRANSACTIONS

The Adviser, Administrator, and Distributor are related parties. Fees paid to these parties are disclosed in Note 9, Fees and Expenses, and the accrued related party fee amounts are disclosed on the Statement of Assets and Liabilities.

The Portfolio is permitted to purchase or sell securities from or to certain related affiliated portfolios under specified conditions outlined in procedures adopted by the Board. The procedures have been designed to ensure that any purchase or sale of securities by the Portfolio from or to another fund or portfolio that are, or could be, considered an affiliate, or an affiliate of an affiliate, by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers complies with Rule 17a-7 under the Act. Further, as defined under the procedures, each transaction is effected at the current market price. Purchases and sales of securities pursuant to Rule 17a-7 under the Act for the period ended December 31, 2018, were as follows (amounts in thousands^†):

Purchases		Sales
$	9,628	$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

11. GUARANTEES AND INDEMNIFICATIONS

Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust (including the Trust’s investment manager) is indemnified, to the extent permitted by the Act, against certain liabilities that may arise out of performance of their duties to the Portfolio. Additionally, in the normal course of business, the Portfolio enters into contracts that contain a variety of indemnification clauses. The Portfolio’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Portfolio that have not yet occurred. However, the Portfolio has not had prior claims or losses pursuant to these contracts.

12. PURCHASES AND SALES OF SECURITIES

The length of time the Portfolio has held a particular security is not generally a consideration in investment decisions. A change in the securities held by the Portfolio is known as “portfolio turnover.” The Portfolio may engage in frequent and active trading of portfolio securities to achieve its investment objective, particularly during periods of volatile market movements. High portfolio turnover may involve correspondingly greater transaction costs to the Portfolio, including brokerage commissions or dealer mark-ups and other transaction costs on the sale of securities and reinvestments in other securities. Such sales may also result in realization of taxable capital gains, including short-term capital gains (which are generally taxed at ordinary income tax rates). The transaction costs and tax effects associated with

48 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

portfolio turnover may adversely affect a shareholder’s performance. The portfolio turnover rates are reported in the Financial Highlights.

Purchases and sales of securities (excluding short-term investments) for the period ended December 31, 2018, were as follows (amounts in thousands^†):

U.S. Government/Agency				All Other
Purchases		Sales		Purchases		Sales
$	883,854	$	808,988	$	151,770	$	135,886

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

13. SHARES OF BENEFICIAL INTEREST

The Trust may issue an unlimited number of shares of beneficial interest with a $0.001 par value. Changes in shares of beneficial interest were as follows (shares and amounts in thousands^†):

	Year Ended 12/31/2018						Year Ended 12/31/2017
	Shares			Amount			Shares			Amount
Receipts for shares sold
Institutional Class		124		$	1,359			165		$	1,831
Administrative Class		3,018			32,763			2,644			29,459
Advisor Class		2,955			32,037			7,258			80,646
Issued as reinvestment of distributions
Institutional Class		12			130			30			321
Administrative Class		116			1,264			335			3,626
Advisor Class		638			6,925			1,827			19,788
Cost of shares redeemed
Institutional Class		(68	)		(743	)		(31	)		(341	)
Administrative Class		(3,016	)		(32,728	)		(1,700	)		(18,862	)
Advisor Class		(2,552	)		(27,689	)		(86	)		(952	)
Net increase (decrease) resulting from Portfolio share transactions		1,227		$	13,318			10,442		$	115,516

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

As of December 31, 2018, one shareholder owned 10% or more of the Portfolio’s total outstanding shares comprising 84% of the Portfolio.

14. REGULATORY AND LITIGATION MATTERS

The Portfolio is not named as a defendant in any material litigation or arbitration proceedings and is not aware of any material litigation or claim pending or threatened against it.

The foregoing speaks only as of the date of this report.

15. FEDERAL INCOME TAX MATTERS

The Portfolio intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code (the “Code”) and distribute all of its taxable income and net realized gains, if applicable, to shareholders. Accordingly, no provision for Federal income taxes has been made.

The Portfolio may be subject to local withholding taxes, including those imposed on realized capital gains. Any applicable foreign capital gains tax is accrued daily based upon net unrealized gains, and may be payable following the sale of any applicable investments.

In accordance with U.S. GAAP, the Adviser has reviewed the Portfolio’s tax positions for all open tax years. As of December 31, 2018, the Portfolio has recorded no liability for net unrecognized tax benefits relating to uncertain income tax positions it has taken or expects to take in future tax returns.

The Portfolio files U.S. federal, state, and local tax returns as required. The Portfolio’s tax returns are subject to examination by relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return but which can be extended to six years in certain circumstances. Tax returns for open years have incorporated no uncertain tax positions that require a provision for income taxes.

Shares of the Portfolio currently are sold to segregated asset accounts (“Separate Accounts”) of insurance companies that fund variable annuity contracts and variable life insurance policies (“Variable Contracts”). Please refer to the prospectus for the Separate Account and Variable Contract for information regarding Federal income tax treatment of distributions to the Separate Account.

ANNUAL REPORT DECEMBER 31, 2018 49

Notes to Financial Statements (Cont.)

December 31, 2018

As of December 31, 2018, the components of distributable taxable earnings are as follows (amounts in thousands^†):

	Undistributed Ordinary Income(1)		Undistributed Long-Term Capital Gains		Net Tax Basis Unrealized Appreciation/ (Depreciation)(2)			Other Book-to-Tax Accounting Differences(3)		Accumulated Capital Losses(4)		Qualified Late-Year Loss Deferral - Capital(5)		Qualified Late-Year Loss Deferral - Ordinary(6)
PIMCO International Bond Portfolio (U.S. Dollar-Hedged)	$	8,939	$	0	($	5,656	)	$	0	$	0	$	0	$	0

^† A zero balance may reflect actual amounts rounding to less than one thousand.

⁽¹⁾  Includes undistributed short-term capital gains, if any.

⁽²⁾ Adjusted for open wash sale loss deferrals and the accelerated recognition of unrealized gain or loss on certain futures, options and forward contracts for federal income tax, purposes. Also adjusted for differences between book and tax realized and unrealized gain (loss) on swap contracts, sale/buyback transactions, convertible preferred securities, straddle loss deferrals, and Lehman securities.

⁽³⁾  Represents differences in income tax regulations and financial accounting principles generally accepted in the United States of America.

⁽⁴⁾ Capital losses available to offset future net capital gains expire in varying amounts as shown below.

⁽⁵⁾ Capital losses realized during the period November 1, 2018 through December 31, 2018 which the Portfolio elected to defer to the following taxable year pursuant to income tax regulations.

⁽⁶⁾ Specified losses realized during the period November 1, 2018 through December 31, 2018 which the Portfolio elected to defer to the following taxable year pursuant to income tax regulations.

Under the Regulated Investment Company Modernization Act of 2010, a fund is permitted to carry forward any new capital losses for an unlimited period. Additionally, such capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term under previous law.

As of December 31, 2018, the Portfolio had the following post-effective capital losses with no expiration (amounts in thousands^†):

	Short-Term		Long-Term
PIMCO International Bond Portfolio (U.S. Dollar-Hedged)	$	0	$	0

† A zero balance may reflect actual amounts rounding to less than one thousand.

As of December 31, 2018, the aggregate cost and the net unrealized appreciation/(depreciation) of investments for federal income tax purposes are as follows (amounts in thousands^†):

	Federal Tax Cost		Unrealized Appreciation		Unrealized (Depreciation)			Net Unrealized Appreciation/ (Depreciation)(7)
PIMCO International Bond Portfolio (U.S. Dollar-Hedged)	$	619,014	$	19,864	($	25,393	)	($	5,529	)

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽⁷⁾  Primary differences, if any, between book and tax net unrealized appreciation/(depreciation) on investments are attributable to open wash sale loss deferrals, unrealized gain or loss on certain futures, options and forward contracts, sale/buyback transactions, realized and unrealized gain (loss) swap contracts, convertible preferred securities, straddle loss deferrals, and Lehman securities.

For the fiscal year ended December 31, 2018 and December 31, 2017, respectively, the Portfolio made the following tax basis distributions (amounts in thousands^†):

	December 31, 2018						December 31, 2017
	Ordinary Income Distributions(8)		Long-Term Capital Gain Distributions		Return of Capital(9)		Ordinary Income Distributions(8)		Long-Term Capital Gain Distributions		Return of Capital(9)
PIMCO International Bond Portfolio (U.S. Dollar-Hedged)	$	6,594	$	1,726	$	0	$	23,627	$	108	$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽⁸⁾  Includes short-term capital gains distributed, if any.

⁽⁹⁾  A portion of the distributions made represents a tax return of capital. Return of capital distributions have been reclassified from undistributed net investment income to paid-in capital to more appropriately conform financial accounting to tax accounting.

50 PIMCO VARIABLE INSURANCE TRUST

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of PIMCO Variable Insurance Trust and Shareholders of

PIMCO International Bond Portfolio (U.S. Dollar-Hedged)

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of PIMCO International Bond Portfolio (U.S. Dollar-Hedged) (one of the portfolios constituting PIMCO Variable Insurance Trust, referred to hereafter as the “Portfolio”) as of December 31, 2018, the related statement of operations for the year ended December 31, 2018, the statement of changes in net assets for each of the two years in the period ended December 31, 2018, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Portfolio as of December 31, 2018, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended December 31, 2018 and the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Portfolio’s management. Our responsibility is to express an opinion on the Portfolio’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Portfolio in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2018 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

Kansas City, Missouri

February 20, 2019

We have served as the auditor of one or more investment companies in PIMCO Variable Insurance Trust since 1998.

ANNUAL REPORT DECEMBER 31, 2018 51

Glossary: (abbreviations that may be used in the preceding statements)

(Unaudited)

Counterparty Abbreviations:
AZD	Australia and New Zealand Banking Group	GRE	RBS Securities, Inc.	RBC	Royal Bank of Canada
BOA	Bank of America N.A.	GST	Goldman Sachs International	RYL	Royal Bank of Scotland Group PLC
BPS	BNP Paribas S.A.	HUS	HSBC Bank USA N.A.	SCX	Standard Chartered Bank
BRC	Barclays Bank PLC	IND	Crédit Agricole Corporate and Investment Bank S.A.	SOG	Societe Generale
CBK	Citibank N.A.	JPM	JPMorgan Chase Bank N.A.	SSB	State Street Bank and Trust Co.
DUB	Deutsche Bank AG	MSB	Morgan Stanley Bank, N.A	TDM	TD Securities (USA) LLC
FBF	Credit Suisse International	MYC	Morgan Stanley Capital Services, Inc.	TOR	Toronto Dominion Bank
FICC	Fixed Income Clearing Corporation	MYI	Morgan Stanley & Co. International PLC	UAG	UBS AG Stamford
GLM	Goldman Sachs Bank USA	NGF	Nomura Global Financial Products, Inc.
Currency Abbreviations:
ARS	Argentine Peso	DKK	Danish Krone	NZD	New Zealand Dollar
AUD	Australian Dollar	EUR	Euro	PLN	Polish Zloty
BRL	Brazilian Real	GBP	British Pound	RON	Romanian New Leu
CAD	Canadian Dollar	IDR	Indonesian Rupiah	RUB	Russian Ruble
CHF	Swiss Franc	JPY	Japanese Yen	SEK	Swedish Krona
CLP	Chilean Peso	KRW	South Korean Won	TWD	Taiwanese Dollar
CNH	Chinese Renminbi (Offshore)	MXN	Mexican Peso	USD (or $)	United States Dollar
COP	Colombian Peso	NOK	Norwegian Krone	ZAR	South African Rand
Exchange Abbreviations:
CBOT	Chicago Board of Trade	OTC	Over the Counter
Index/Spread Abbreviations:
BADLARPP	Argentina Badlar Floating Rate Notes	CDX.HY	Credit Derivatives Index - High Yield	LIBOR03M	3 Month USD-LIBOR
BBSW1M	1 Month Bank Bill Swap Rate	CDX.IG	Credit Derivatives Index - Investment Grade	US0003M	3 Month USD Swap Rate
CDX.EM	Credit Derivatives Index - Emerging Markets
Other Abbreviations:
ABS	Asset-Backed Security	CLO	Collateralized Loan Obligation	Lunar	Monthly payment based on 28-day periods. One year consists of 13 periods.
ALT	Alternate Loan Trust	DAC	Designated Activity Company	NCUA	National Credit Union Administration
BABs	Build America Bonds	EURIBOR	Euro Interbank Offered Rate	OAT	Obligations Assimilables du Trésor
BBR	Bank Bill Rate	JIBAR	Johannesburg Interbank Agreed Rate	OIS	Overnight Index Swap
BBSW	Bank Bill Swap Reference Rate	KORIBOR	Korea Interbank Offered Rate	TBA	To-Be-Announced
BTP	Buoni del Tesoro Poliennali	LIBOR	London Interbank Offered Rate	TIIE	Tasa de Interés Interbancaria de Equilibrio “Equilibrium Interbank Interest Rate”
CDI	Brazil Interbank Deposit Rate

52 PIMCO VARIABLE INSURANCE TRUST

Federal Income Tax Information

(Unaudited)

As required by the Internal Revenue Code (the “Code”) and Treasury Regulations, if applicable, shareholders must be notified regarding the status of qualified dividend income and the dividend received deduction.

Dividend Received Deduction.  Corporate shareholders are generally entitled to take the dividend received deduction on the portion of a Fund’s dividend distribution that qualifies under tax law. The percentage of the following Portfolio’s fiscal 2018 ordinary income dividend that qualifies for the corporate dividend received deduction is set forth in the table below.

Qualified Dividend Income.  Under the Jobs and Growth Tax Relief Reconciliation Act of 2003 (the “Act”), the percentage of ordinary dividends paid during the calendar year designated as “qualified dividend income”, as defined in the Act, subject to reduced tax rates in 2018 is set forth for the Portfolio in the table below.

Qualified Interest Income and Qualified Short-Term Capital Gain (for non-U.S. resident shareholders only).  Under the American Jobs Creation Act of 2004, the amounts of ordinary dividends paid during the fiscal year ended December 31, 2018 considered to be derived from “qualified interest income,” as defined in Section 871(k)(1)(E) of the Code, and therefore designated as interest-related dividends, as defined in Section 871(k)(1)(C) of the Code are set forth in the table below. Further, the amounts of ordinary dividends paid during the fiscal year ended December 31, 2018 considered to be derived from “qualified short-term capital gain,” as defined in Section 871(k)(2)(D) of the Code, and therefore designated as qualified short-term gain dividends, as defined by Section 871(k)(2)(C) of the Code are also set forth in the table below.

	Dividend Received Deduction %		Qualified Dividend Income %		Qualified Interest Income (000s† )		Qualified Short-Term Capital Gain (000s†)
PIMCO International Bond Portfolio (U.S. Dollar-Hedged)		0.00%		0.00%	$	6,590	$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

Shareholders are advised to consult their own tax advisor with respect to the tax consequences of their investment in the Trust. In January 2019, you will be advised on IRS Form 1099-DIV as to the federal tax status of the dividends and distributions received by you in calendar year 2018.

ANNUAL REPORT DECEMBER 31, 2018 53

Management of the Trust

The charts below identify the Trustees and executive officers of the Trust. Unless otherwise indicated, the address of all persons below is 650 Newport Center Drive, Newport Beach, CA 92660.

The Portfolio’s Statement of Additional Information includes more information about the Trustees and Officers. To request a free copy, call PIMCO at (888) 87-PIMCO or visit the Portfolio’s website at www.pimco.com/pvit.

Name, Year of Birth and Position Held with Trust*	Term of Office and Length of Time Served†	Principal Occupation(s) During Past 5 Years	Number of Funds in Fund Complex Overseen by Trustee	Other Public Company and Investment Company Directorships Held by Trustee During the Past 5 Years
Interested Trustees1
Peter G. Strelow** (1970) Chairman of the Board and Trustee	05/2017 to present Chairman of the Board - 02/2019 to present	Managing Director and Co-Chief Operating Officer, PIMCO. President of the Trust, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Chief Administrative Officer, PIMCO.	153	Chairman and Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT.
Brent R. Harris** (1959) Trustee	08/1997 to present	Managing Director, PIMCO. Senior Vice President of the Trust, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Formerly, member of Executive Committee, PIMCO.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT; Director, StocksPLUS® Management, Inc; and member of Board of Governors, Investment Company Institute. Formerly, Chairman, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT.
Independent Trustees
George E. Borst (1948) Trustee	04/2015 to present	Executive Advisor, McKinsey & Company (since 10/14); Formerly, Executive Advisor, Toyota Financial Services (10/13-12/14); and CEO, Toyota Financial Services (1/01-9/13).	132	Trustee, PIMCO Funds and PIMCO ETF Trust; Director, MarineMax Inc.
Jennifer Holden Dunbar (1963) Trustee	04/2015 to present	Managing Director, Dunbar Partners, LLC (business consulting and investments). Formerly, Partner, Leonard Green & Partners, L.P.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT; Director, PS Business Parks; Director, Big 5 Sporting Goods Corporation.
Kym M. Hubbard (1957) Trustee	02/2017 to present	Formerly, Global Head of Investments, Chief Investment Officer and Treasurer, Ernst & Young.	132	Trustee, PIMCO Funds and PIMCO ETF Trust; Director, State Auto Financial Corporation.
Gary F. Kennedy (1955) Trustee	04/2015 to present	Formerly, Senior Vice President, General Counsel and Chief Compliance Officer, American Airlines and AMR Corporation (now American Airlines Group) (1/03-1/14).	132	Trustee, PIMCO Funds and PIMCO ETF Trust.
Peter B. McCarthy (1950) Trustee	04/2015 to present	Formerly, Assistant Secretary and Chief Financial Officer, United States Department of Treasury; Deputy Managing Director, Institute of International Finance.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Ronald C. Parker (1951) Lead Independent Trustee	07/2009 to present Lead Independent Trustee - 02/2017 to present	Director of Roseburg Forest Products Company. Formerly, Chairman of the Board, The Ford Family Foundation; and President, Chief Executive Officer, Hampton Affiliates (forestry products).	153	Lead Independent Trustee, PIMCO Funds and PIMCO ETF Trust; Trustee, PIMCO Equity Series and PIMCO Equity Series VIT.

* Unless otherwise noted, the information for the individuals listed is as of December 31, 2018.

** Effective February 13, 2019, Mr. Strelow became the Chairman of the Trust.

¹  Mr. Harris and Mr. Strelow are “interested persons” of the Trust (as that term is defined in the 1940 Act) because of their affiliations with PIMCO.

^†  Trustees serve until their successors are duly elected and qualified.

54 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

Executive Officers

Name, Year of Birth and Position Held with Trust	Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years*
Peter G. Strelow (1970) President	01/2015 to present	Managing Director and Co-Chief Operating Officer, PIMCO. President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Chief Administrative Officer, PIMCO.
Joshua D. Ratner (1976)** Chief Legal Officer	11/2018 to present Vice President - Senior Counsel and Secretary 11/2013 to 11/2018 Assistant Secretary 10/2007 to 01/2011	Executive Vice President and Deputy General Counsel, PIMCO. Chief Legal Officer, PIMCO Investments LLC. Chief Legal Officer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Jennifer E. Durham (1970) Chief Compliance Officer	07/2004 to present	Managing Director and Chief Compliance Officer, PIMCO. Chief Compliance Officer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Brent R. Harris (1959) Senior Vice President	01/2015 to present President 03/2009 to 01/2015	Managing Director, PIMCO. Senior Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Formerly, member of Executive Committee, PIMCO.
Ryan G. Leshaw (1980) Vice President, Senior Counsel and Secretary	11/2018 to present Assistant Secretary 05/2012 to 11/2018	Senior Vice President and Senior Counsel, PIMCO. Vice President, Senior Counsel and Secretary, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Assistant Secretary, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Associate, Willkie Farr & Gallagher LLP.
Wu-Kwan Kit (1981) Assistant Secretary	08/2017 to present	Senior Vice President and Senior Counsel, PIMCO. Assistant Secretary, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Vice President, Senior Counsel and Secretary, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Assistant General Counsel, VanEck Associates Corp.
Stacie D. Anctil (1969) Vice President	05/2015 to present Assistant Treasurer 11/2003 to 05/2015	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
William G. Galipeau (1974) Vice President	11/2013 to present	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Eric D. Johnson (1970) Vice President	05/2011 to present	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Henrik P. Larsen (1970) Vice President	02/1999 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Bijal Y. Parikh (1978) Vice President	02/2017 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Greggory S. Wolf (1970) Vice President	05/2011 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Trent W. Walker (1974) Treasurer	11/2013 to present	Executive Vice President, PIMCO. Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Erik C. Brown (1967)** Assistant Treasurer	02/2001 to present	Executive Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Colleen D. Miller (1980)** Assistant Treasurer	02/2017 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Christopher M. Morin (1980) Assistant Treasurer	08/2016 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Jason J. Nagler (1982)** Assistant Treasurer	05/2015 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.

* The term “PIMCO-Sponsored Closed-End Funds” as used herein includes: PIMCO California Municipal Income Fund, PIMCO California Municipal Income Fund II, PIMCO California Municipal Income Fund III, PIMCO Municipal Income Fund, PIMCO Municipal Income Fund II, PIMCO Municipal Income Fund III, PIMCO New York Municipal Income Fund, PIMCO New York Municipal Income Fund II, PIMCO New York Municipal Income Fund III, PCM Fund Inc., PIMCO Corporate & Income Opportunity Fund, PIMCO Corporate & Income Strategy Fund, PIMCO Dynamic Credit and Mortgage Income Fund, PIMCO Dynamic Income Fund, PIMCO Global StocksPLUS^® & Income Fund, PIMCO High Income Fund, PIMCO Income Opportunity Fund, PIMCO Income Strategy Fund, PIMCO Income Strategy Fund II and PIMCO Strategic Income Fund, Inc.; the term “PIMCO-Sponsored Interval Funds” as used herein includes: PIMCO Flexible Credit Income Fund and PIMCO Flexible Municipal Income Fund.

** The address of these officers is Pacific Investment Management Company LLC, 1633 Broadway, New York, New York 10019.

ANNUAL REPORT DECEMBER 31, 2018 55

Privacy Policy¹

(Unaudited)

The Trust^2,3 considers customer privacy to be a fundamental aspect of its relationships with shareholders and is committed to maintaining the confidentiality, integrity and security of its current, prospective and former shareholders’ non-public personal information. The Trust has developed policies that are designed to protect this confidentiality, while allowing shareholder needs to be served.

OBTAINING PERSONAL INFORMATION

In the course of providing shareholders with products and services, the Trust and certain service providers to the Trust, such as the Trust’s investment advisers or sub-advisers (“Advisers”), may obtain non-public personal information about shareholders, which may come from sources such as account applications and other forms, from other written, electronic or verbal correspondence, from shareholder transactions, from a shareholder’s brokerage or financial advisory firm, financial advisor or consultant, and/or from information captured on applicable websites.

RESPECTING YOUR PRIVACY

As a matter of policy, the Trust does not disclose any non-public personal information provided by shareholders or gathered by the Trust to non-affiliated third parties, except as required or permitted by law or as necessary for such third parties to perform their agreements with respect to the Trust. As is common in the industry, non-affiliated companies may from time to time be used to provide certain services, such as preparing and mailing prospectuses, reports, account statements and other information, conducting research on shareholder satisfaction and gathering shareholder proxies. The Trust or its affiliates may also retain non-affiliated companies to market the Trust’s shares or products which use the Trust’s shares and enter into joint marketing arrangements with them and other companies. These companies may have access to a shareholder’s personal and account information, but are permitted to use this information solely to provide the specific service or as otherwise permitted by law. In most cases, the shareholders will be clients of a third party, but the Trust may also provide a shareholder’s personal and account information to the shareholder’s respective brokerage or financial advisory firm and/or financial advisor or consultant.

SHARING INFORMATION WITH THIRD PARTIES

The Trust reserves the right to disclose or report personal or account information to non-affiliated third parties in limited circumstances where the Trust believes in good faith that disclosure is required under law, to cooperate with regulators or law enforcement authorities, to protect its rights or property, or upon reasonable request by any fund advised by PIMCO in which a shareholder has invested. In addition, the Trust may disclose information about a shareholder or a shareholder’s accounts to a non-affiliated third party at the shareholder’s request or with the consent of the shareholder.

SHARING INFORMATION WITH AFFILIATES

The Trust may share shareholder information with its affiliates in connection with servicing shareholders’ accounts, and subject to applicable law may provide shareholders with information about products and services that the Trust or its Advisers, distributors or their affiliates (“Service Affiliates”) believe may be of interest to such shareholders. The information that the Trust may share may include,

for example, a shareholder’s participation in the Trust or in other investment programs sponsored by a Service Affiliate, a shareholder’s ownership of certain types of accounts (such as IRAs), information about the Trust’s experiences or transactions with a shareholder, information captured on applicable websites, or other data about a shareholder’s accounts, subject to applicable law. The Trust’s Service Affiliates, in turn, are not permitted to share shareholder information with non-affiliated entities, except as required or permitted by law.

PROCEDURES TO SAFEGUARD PRIVATE INFORMATION

The Trust takes seriously the obligation to safeguard shareholder non-public personal information. In addition to this policy, the Trust has implemented procedures that are designed to restrict access to a shareholder’s non-public personal information to internal personnel who need to know that information to perform their jobs, such as servicing shareholder accounts or notifying shareholders of new products or services. Physical, electronic and procedural safeguards are in place to guard a shareholder’s non-public personal information.

INFORMATION COLLECTED FROM WEBSITES

Websites maintained by the Trust or its service providers may use a variety of technologies to collect information that help the Trust and its service providers understand how the website is used. Information collected from your web browser (including small files stored on your device that are commonly referred to as “cookies”) allow the websites to recognize your web browser and help to personalize and improve your user experience and enhance navigation of the website. In addition, the Trust or its Service Affiliates may use third parties to place advertisements for the Trust on other websites, including banner advertisements. Such third parties may collect anonymous information through the use of cookies or action tags (such as web beacons). The information these third parties collect is generally limited to technical and web navigation information, such as your IP address, web pages visited and browser type, and does not include personally identifiable information such as name, address, phone number or email address. If you are a registered user of the Trust’s website, the Trust or their service providers or third party firms engaged by the Trust or their service providers may collect or share information submitted by you, which may include personally identifiable information. This information can be useful to the Trust when assessing and offering services and website features. You can change your cookie preferences by changing the setting on your web browser to delete or reject cookies. If you delete or reject cookies, some website pages may not function properly. The Trust does not look for web browser “do not track” requests.

CHANGES TO THE PRIVACY POLICY

From time to time, the Trust may update or revise this privacy policy. If there are changes to the terms of this privacy policy, documents containing the revised policy on the relevant website will be updated.

¹ Amended as of February 15, 2017.

² PIMCO Investments LLC (“PI”) serves as the Trust’s distributor. This Privacy Policy applies to the activities of PI to the extent that PI regularly effects or engages in transactions with or for a Trust shareholder who is the record owner of such shares. For purposes of this Privacy Policy, references to “the Trust” shall include PI when acting in this capacity.

³ When distributing this Policy, the Trust may combine the distribution with any similar distribution of its investment adviser’s privacy policy. The distributed, combined policy may be written in the first person (i.e., by using “we” instead of “the Trust”).

56 PIMCO VARIABLE INSURANCE TRUST

Approval of Investment Advisory Contract and Other Agreements

(Unaudited)

Approval of Renewal of the Amended and Restated Investment Advisory Contract, Supervision and Administration Agreement and Amended and Restated Asset Allocation Sub-Advisory Agreement

At a meeting held on August 20-21, 2018, the Board of Trustees (the “Board”) of PIMCO Variable Insurance Trust (the “Trust”), including the Trustees who are not “interested persons” of the Trust under the Investment Company Act of 1940, as amended (the “Independent Trustees”), considered and unanimously approved the renewal of the Amended and Restated Investment Advisory Contract (the “Investment Advisory Contract”) between the Trust, on behalf of each of the Trust’s series (the “Portfolios”), and Pacific Investment Management Company LLC (“PIMCO”) for an additional one-year term through August 31, 2019. The Board also considered and unanimously approved the renewal of the Supervision and Administration Agreement (together with the Investment Advisory Contract, the “Agreements”) between the Trust, on behalf of the Portfolios, and PIMCO for an additional one-year term through August 31, 2019. In addition, the Board considered and unanimously approved the renewal of the Amended and Restated Asset Allocation Sub-Advisory Agreement (the “Asset Allocation Agreement”) between PIMCO, on behalf of PIMCO All Asset Portfolio and PIMCO All Asset All Authority Portfolio, each a series of the Trust, and Research Affiliates, LLC (“Research Affiliates”) for an additional one-year term through August 31, 2019.

The information, material factors and conclusions that formed the basis for the Board’s approvals are summarized below.

1. INFORMATION RECEIVED

(a) Materials Reviewed:  During the course of the past year, the Trustees received a wide variety of materials relating to the services provided by PIMCO and Research Affiliates to the Trust. At each of its quarterly meetings, the Board reviewed the Portfolios’ investment performance and a significant amount of information relating to Portfolio operations, including shareholder services, valuation and custody, the Portfolios’ compliance program and other information relating to the nature, extent and quality of services provided by PIMCO and Research Affiliates to the Trust and each of the Portfolios, as applicable. In considering whether to approve the renewal of the Agreements and the Asset Allocation Agreement, the Board reviewed additional information, including, but not limited to, comparative industry data with regard to investment performance, advisory and supervisory and administrative fees and expenses, financial information for PIMCO and, where relevant, Research Affiliates, information regarding the profitability to PIMCO of its relationship with the Portfolios, information about the personnel providing investment management services, other advisory services and supervisory and administrative services to the Portfolios, and information about the fees

charged and services provided to other clients with similar investment mandates as the Portfolios, where applicable. In addition, the Board reviewed materials provided by counsel to the Trust and the Independent Trustees, which included, among other things, memoranda outlining legal duties of the Board in considering the renewal of the Agreements and the Asset Allocation Agreement.

(b) Review Process:  In connection with considering the renewal of the Agreements and the Asset Allocation Agreement, the Board reviewed written materials prepared by PIMCO and, where applicable, Research Affiliates in response to requests from counsel to the Trust and the Independent Trustees encompassing a wide variety of topics. The Board requested and received assistance and advice regarding, among other things, applicable legal standards from counsel to the Trust and the Independent Trustees, and reviewed comparative fee and performance data prepared at the Board’s request by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company performance information and fee and expense data. The Board received information on matters related to the Agreements and the Asset Allocation Agreement and met both as a full Board and in a separate session of the Independent Trustees, without management present, at the August 20-21, 2018 meeting. The Independent Trustees also conducted in-person meetings with counsel to the Trust and the Independent Trustees, including one on July 18, 2018, to discuss the Lipper Report, as defined below, and certain aspects of the 2018 15(c) materials presented and other matters deemed relevant to their consideration of the renewal of the Agreements and the Asset Allocation Agreement. In connection with its review of the Agreements, the Board received comparative information on the performance and the fees and expenses of other peer group funds and share classes. In addition, the Independent Trustees requested and received supplemental information.

The approval determinations were made on the basis of each Trustee’s business judgment after consideration and evaluation of all the information presented. Individual Trustees may have given different weights to certain factors and assigned various degrees of materiality to information received in connection with the approval process. In deciding to approve the renewal of the Agreements and the Asset Allocation Agreement, the Board did not identify any single factor or particular information that, in isolation, was controlling. The discussion below is intended to summarize the broad factors and information that figured prominently in the Board’s consideration of the renewal of the Agreements and the Asset Allocation Agreement, but is not intended to summarize all of the factors considered by the Board.

2. NATURE, EXTENT AND QUALITY OF SERVICES

(a) PIMCO, Research Affiliates, their Personnel, and Resources:  The Board considered the depth and quality of PIMCO’s investment management process, including: the experience, capability and integrity

ANNUAL REPORT DECEMBER 31, 2018 57

Approval of Investment Advisory Contract and Other Agreements (Cont.)

of its senior management and other personnel; the overall financial strength and stability of its organization; and the ability of its organizational structure to address changes in the Portfolios’ asset levels. The Board also considered the various services in addition to portfolio management that PIMCO provides under the Investment Advisory Contract. The Board noted that PIMCO makes available to its investment professionals a variety of resources and systems relating to investment management, compliance, trading, performance and portfolio accounting. The Board also noted PIMCO’s commitment to enhancing and investing in its global infrastructure, technology capabilities, risk management processes and the specialized talent needed to stay at the forefront of the competitive investment management industry and to strengthen its ability to deliver services under the Agreements. The Board considered PIMCO’s policies, procedures and systems reasonably designed to assure compliance with applicable laws and regulations and its commitment to further developing and strengthening these programs, its oversight of matters that may involve conflicts of interest between the Portfolios’ investments and those of other accounts managed by PIMCO, and its efforts to keep the Trustees informed about matters relevant to the Portfolios and their shareholders. The Board also considered PIMCO’s continuous investment in new disciplines and talented personnel, which has enhanced PIMCO’s services to the Portfolios and has allowed PIMCO to introduce innovative new portfolios over time. In addition, the Board considered the nature and quality of services provided by PIMCO to the wholly-owned subsidiaries of certain applicable Portfolios.

The Trustees considered that PIMCO has continued to strengthen the process it uses to actively manage counterparty risk and to assess the financial stability of counterparties with which the Portfolios do business, to manage collateral and to protect Portfolios from an unforeseen deterioration in the creditworthiness of trading counterparties. The Trustees noted that, consistent with its fiduciary duty, PIMCO executes transactions through a competitive best execution process and uses only those counterparties that meet its stringent and monitored criteria. The Trustees considered that PIMCO’s collateral management team utilizes a counterparty risk system to analyze portfolio level exposure and collateral being exchanged with counterparties.

In addition, the Trustees considered new services and service enhancements that PIMCO has implemented since the Board renewed the Agreements in 2017, including, but not limited to upgrading the global network and infrastructure to support trading and risk management systems; enhancing and continuing to expand capabilities within the pre-trade compliance platform; enhancing flexible client reporting capabilities to support increased differentiation within local markets; developing new application and database frameworks to support new trading strategies; expanding proprietary applications

suites to enrich capabilities across Compliance, Analytics, Risk Management, Client Reporting, Attribution and Customer Relationship management; continuing investment in its enterprise risk management function, including PIMCO’s cybersecurity program and global business continuity functions; oversight by the Americas Fund Oversight Committee, which provides senior-level oversight and supervision focused on new and ongoing fund-related business opportunities; engaging a third party service provider to implement the SEC reporting modernization regime; expanding the Fund Treasurer’s Office; enhancing a proprietary application to provide portfolio managers with more timely and high quality income reporting; developing a global tax management application that will enable investment professionals to access foreign market and security tax information on a real-time basis; enhancing reporting of tax reporting for portfolio managers for income products with improved transparency on tax factors impacting income generation and dividend yield; upgrading a proprietary application to allow shareholder subscription and redemption data to pass to portfolio managers more quickly and efficiently; and continuing to expand the pricing portal and the proprietary performance reconciliation tool.

Similarly, the Board considered the asset allocation services provided by Research Affiliates to the PIMCO All Asset Portfolio and PIMCO All Asset All Authority Portfolio. The Board further considered PIMCO’s oversight of Research Affiliates in connection with Research Affiliates providing asset allocation services to the Asset Portfolio and All Asset All Authority Portfolio. The Board also considered the depth and quality of Research Affiliates’ investment management and research capabilities, the experience and capabilities of its portfolio management personnel and the overall financial strength of the organization.

Ultimately, the Board concluded that the nature, extent and quality of services provided or procured by PIMCO under the Agreements and provided by Research Affiliates under the Asset Allocation Agreement are likely to continue to benefit the Portfolios and their respective shareholders, as applicable.

(b) Other Services:  The Board also considered the nature, extent and quality of supervisory and administrative services provided by PIMCO to the Portfolios under the Supervision and Administration Agreement.

The Board considered the terms of the Supervision and Administration Agreement, under which the Trust pays for the supervisory and administrative services provided pursuant to that agreement under what is essentially an all-in fee structure (the “unified fee”). In return, PIMCO provides or procures certain supervisory and administrative services and bears the costs of various third party services required by the Portfolios, including audit, custodial, portfolio accounting, legal, transfer agency, sub-accounting and printing costs. The Board noted that the scope and complexity, as well as the costs, of the supervisory

58 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

and administrative services provided by PIMCO under the Supervision and Administration Agreement continue to increase. The Board considered PIMCO’s provision of supervisory and administrative services and its supervision of the Trust’s third party service providers to assure that these service providers continue to provide a high level of service relative to alternatives available in the market.

Ultimately, the Board concluded that the nature, extent and quality of the services provided by PIMCO has benefited, and will likely continue to benefit, the Portfolios and their shareholders.

3. INVESTMENT PERFORMANCE

The Board reviewed information from PIMCO concerning the Portfolios’ performance, as available, over short- and long-term periods ended March 31, 2018 and other performance data, as available, over short- and long-term periods ended June 30, 2018 (the “PIMCO Report”) and from Broadridge concerning the Portfolios’ performance, as available, over short- and long-term periods ended March 31, 2018 (the “Lipper Report”).

The Board considered information regarding both the short- and long-term investment performance of each Portfolio relative to its peer group and relevant benchmark index as provided to the Board in advance of each of its quarterly meetings throughout the year, including the PIMCO Report and Lipper Report, which were provided in advance of the August 20-21, 2018 meeting. The Trustees noted that many of the Portfolios outperformed their respective Lipper medians on a net-of-fees basis over the three-, five- and ten-year periods ended March 31, 2018. The Board also noted that, as of March 31, 2018, the Administrative Class of 72%, 35% and 73% of the Portfolios outperformed their respective Lipper category median on a net-of-fees basis over the three-, five- and ten-year periods, respectively. The Trustees considered that other classes of each Portfolio would have substantially similar performance to that of the Administrative Class of the relevant Portfolio on a relative basis because all of the classes are invested in the same portfolio of investments and that differences in performance among classes could principally be attributed to differences in the supervisory and administrative fees and distribution and servicing expenses of each class. The Board also considered that the investment objectives of certain of the Portfolios may not always be identical to those of the other funds in their respective peer groups and that the Lipper categories do not: separate funds based upon maturity or duration; account for the applicable Portfolios’ hedging strategies; distinguish between enhanced index and actively managed equity strategies; include as many subsets as the Portfolios offer (i.e., Portfolios may be placed in a “catch-all” Lipper category to which they do not properly belong); or account for certain fee waivers. The Board noted that, due to these differences, performance comparisons between certain of the Portfolios and their so-called peers may not be

particularly relevant to the consideration of Portfolio performance but found the comparative information supported its overall evaluation.

The Board noted that performance for a majority of the Portfolios has been mixed compared to their respective benchmark indexes over the five-year period ended March 31, 2018. The Board noted that, as of March 31, 2018, 70%, 23% and 92% of the Trust’s assets (based on Administrative Class performance) outperformed their respective benchmarks on a net-of-fees basis over the three-, five- and ten-year periods, respectively. The Board also discussed actions that have been taken by PIMCO to attempt to improve performance and took note of PIMCO’s plans to monitor performance going forward.

The Board considered PIMCO’s discussion of the intensive nature of managing bond funds, noting that it requires the management of a number of factors, including: varying maturities; prepayments; collateral management; counterparty management; pay-downs; credit and corporate events; workouts; derivatives; net new issuance in the bond market; and decreased market maker inventory levels. The Board noted that in addition to managing these factors, PIMCO must also balance risk controls and strategic positions in each portfolio it manages, including the Portfolios. Despite these challenges, the Board noted PIMCO’s ability to generate non-market correlated excess performance for its clients over time, including the Trust.

The Board ultimately concluded, within the context of all of its considerations in connection with the Agreements, that PIMCO’s performance record and process in managing the Portfolios indicates that its continued management is likely to benefit the Portfolios and their shareholders, and merits the approval of the renewal of the Agreements.

4. ADVISORY FEES, SUPERVISORY AND ADMINISTRATIVE FEES AND TOTAL EXPENSES

The Board considered that PIMCO seeks to price new funds and classes to scale. PIMCO reported to the Board that, in proposing fees for any Portfolio or class of shares, it considers a number of factors, including, but not limited to, the type and complexity of the services provided, the cost of providing services, the risk assumed by PIMCO in the development of products and the provision of services and the competitive marketplace for financial products. Fees charged to or proposed for different Portfolios for advisory services and supervisory and administrative services may vary in light of these various factors. The Board considered that portfolio pricing generally is not driven by comparison to passively-managed products.

In addition, PIMCO reported to the Board that it periodically reviews the fees charged to the Portfolios. The Board noted that, based upon this review, PIMCO may propose advisory fee or supervisory and administrative fee changes where (i) a Portfolio’s long-term performance warrants additional consideration; (ii) there is a notable aid to market

ANNUAL REPORT DECEMBER 31, 2018 59

Approval of Investment Advisory Contract and Other Agreements (Cont.)

position; (iii) a Portfolio’s fee does not reflect the current level of supervision or administrative fees provided to the Portfolio; or (iv) PIMCO would like to change a Portfolio’s overall strategic positioning.

The Board reviewed the advisory fees, supervisory and administrative fees and total expenses of the Portfolios (each as a percentage of average net assets) and compared such amounts with the average and median fee and expense levels of other similar funds. The Board also reviewed information relating to the sub-advisory fees paid to Research Affiliates with respect to applicable Portfolios, taking into account that PIMCO compensates Research Affiliates from the advisory fees paid by such Portfolios to PIMCO. With respect to advisory fees, the Board reviewed data from Broadridge that compared the average and median advisory fees of other funds in a “Peer Group” of comparable funds, as well as the universe of other similar funds. The Board noted that a number of Portfolios have total expense ratios that fall below the average and median expense ratios in their Peer Group and Lipper universe. In addition, the Board considered fee waivers in place for certain of the Portfolios and also noted the fee waivers in place with respect to the advisory fee and supervisory and administrative fee that might result from investments by applicable Portfolios in their respective wholly-owned subsidiaries. The Board also considered that PIMCO reviews the Portfolios’ fee levels and carefully considers changes where appropriate.

The Board also reviewed data comparing the Portfolios’ advisory fees to the standard and negotiated fee rates PIMCO charges to separate accounts, collective investment trusts and sub-advised clients with similar investment strategies. In cases where the fees for other clients were lower than those charged to the Portfolios, the Trustees noted that the differences in fees were attributable to various factors, including, but not limited to, differences in the advisory and other services provided by PIMCO to the Portfolios, differences in the number or extent of the services provided by PIMCO to the Portfolios, the manner in which similar portfolios may be managed, different requirements with respect to liquidity management and the implementation of other regulatory requirements, and the fact that separate accounts may have other contractual arrangements or arrangements across PIMCO strategies that justify different levels of fees. The Board considered that, with respect to collective investment trusts, PIMCO performs fewer or less extensive services because collective investment trusts are generally exempt from SEC regulation; investors in a collective investment trust may receive shareholder services from a trustee bank, rather than PIMCO; collective investment trusts have less regulatory disclosure; and the management structure of collective investment trusts differs from that of funds. The Trustees also considered that PIMCO faces increased entrepreneurial, legal and regulatory risk in sponsoring and managing mutual funds and ETFs as compared to separate accounts, external sub-advised funds or other investment products.

Regarding advisory fees charged by PIMCO in its capacity as sub-adviser to third party/unaffiliated funds, the Trustees took into account that such fees may be lower than the fees charged by PIMCO to serve as adviser to the Portfolios. The Trustees also took into account that there are various reasons for any such differences in fees, including, but not limited to, the fact that PIMCO may be subject to varying levels of entrepreneurial risk and regulatory requirements, differing legal liabilities on a contract-by-contract basis and different servicing requirements when PIMCO does not serve as the sponsor of a fund and is not principally responsible for all aspects of a fund’s investment program and operations as compared to when PIMCO serves as investment adviser and sponsor.

The Board considered the Portfolios’ supervisory and administrative fees, comparing them to similar funds in the report supplied by Broadridge. The Board also considered that as the Portfolios’ business has become increasingly complex and the number of Portfolios has grown over time, PIMCO has provided an increasingly broad array of fund supervisory and administrative functions. In addition, the Board considered the Trust’s unified fee structure, under which the Trust pays for the supervisory and administrative services it requires for one set fee. In return for this unified fee, PIMCO provides or procures supervisory and administrative services and bears the costs of various third party services required by the Portfolios, including audit, custodial, portfolio accounting, legal, transfer agency, sub-accounting and printing costs. The Board further considered that many other funds pay for comparable services separately, and thus it is difficult to directly compare the Trust’s unified supervisory and administrative fees with the fees paid by other funds for administrative services alone. The Board also considered that the unified supervisory and administrative fee leads to Portfolio fees that are fixed over the contract period, rather than variable. The Board noted that, although the unified fee structure does not have breakpoints, it implicitly reflects economies of scale by fixing the absolute level of Portfolio fees at competitive levels over the contract period even if the Portfolios’ operating costs rise when assets remain flat or decrease. Other factors the Board considered in assessing the unified fee include PIMCO’s approach of pricing Portfolios to scale at inception and reinvesting in other important areas of the business that support the Portfolios. The Board considered that the Portfolios’ unified fee structure meant that fees were not impacted by recent outflows in certain Portfolios, unlike funds without a unified fee structure, which may see increased expense ratios when fixed costs, such as service provider costs, are passed through to a smaller asset base. The Board considered historical advisory and supervisory and administrative fee reductions implemented for different Portfolios and classes, noting that the unified fee can be increased or decreased in subsequent contractual periods and is subject to the periodic reviews discussed above. The Board noted that, with few exceptions, PIMCO

60 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

has generally maintained Portfolio fees at the same level as implemented when the unified fee was adopted, and has reduced fees for a number of Portfolios in prior years. The Board concluded that the Portfolios’ supervisory and administrative fees were reasonable in relation to the value of the services provided, including the services provided to different classes of shareholders, and that the expenses assumed contractually by PIMCO under the Supervision and Administration Agreement represent, in effect, a cap on overall Portfolio fees during the contractual period, which is beneficial to the Portfolios and their shareholders.

The Board considered the Portfolios’ total expenses and discussed with PIMCO those Portfolios and/or classes of Portfolios that had above median total expenses. The Board noted that many of the Portfolios are unique products that have few peers, if any, and cannot easily be grouped with comparable funds. Upon comparing the Portfolios’ total expenses to other funds in the “Peer Groups” provided by Broadridge, the Board found total expenses of each Portfolio to be reasonable.

The Trustees also considered the advisory fees charged to the Portfolios that operate as funds of funds (the “Funds of Funds”) and the advisory services provided in exchange for such fees. The Trustees determined that such services were in addition to the advisory services provided to the underlying funds in which the Funds of Funds may invest and, therefore, such services were not duplicative of the advisory services provided to the underlying funds. The Board also considered the various fee waiver agreements in place for the Funds of Funds. The Board noted that PIMCO is continuing waivers for these Funds of Funds, as well as for certain other Portfolios of the Trust.

Based on the information presented by PIMCO, Research Affiliates and Broadridge, members of the Board determined, in the exercise of their business judgment, that the level of the advisory fees and supervisory and administrative fees charged by PIMCO under the Agreements, as well as the total expenses of each Portfolio, after the proposals to decrease the management fee, are reasonable.

5. ADVISER COSTS, LEVEL OF PROFITS AND ECONOMIES OF SCALE

The Board reviewed information regarding PIMCO’s costs of providing services to the Funds as a whole, as well as the resulting level of profits to PIMCO under both the adjusted asset profitability method and the profit and loss profitability method, which were each utilized to calculate profitability. To the extent applicable, the Board also reviewed information regarding the portion of a Portfolio’s advisory fee retained by PIMCO, following the payment of sub-advisory fees to Research Affiliates, with respect to the Portfolio. Additionally, the Board noted that profit margins with respect to the Trust shows that the Trust is profitable, although less so than PIMCO Funds due to payments made

by PIMCO to participating insurance companies. The Board further noted PIMCO’s engagement of a third party to review and to make recommendations regarding PIMCO’s processes supporting its profitability estimation materials. The Board also noted that it had received information regarding the structure and manner in which PIMCO’s investment professionals were compensated, and PIMCO’s view of the relationship of such compensation to the attraction and retention of quality personnel. The Board considered PIMCO’s need to invest in global infrastructure, technology capabilities, risk management processes and qualified personnel to reinforce and offer new services and to accommodate changing regulatory requirements.

With respect to potential economies of scale, the Board noted that PIMCO shares the benefits of economies of scale with the Portfolios and their shareholders in a number of ways, including investing in portfolio and trade operations management, firm technology, middle and back office support, legal and compliance, and fund administration logistics, senior management supervision, governance and oversight of those services, and through fee reductions or waivers, the pricing of Portfolios to scale from inception, and the enhancement of services provided to the Portfolios in return for fees paid. The Board reviewed the history of the Portfolios’ fee structure. The Board considered that the Portfolios’ unified fee rates had been set competitively and/or priced to scale from inception, had been held steady during the contractual period at that scaled competitive rate for most Portfolios as assets grew, or as assets declined in the case of some Portfolios, and continued to be competitive compared with peers. The Board also considered that the unified fee is a transparent means of informing a Portfolio’s shareholders of the fees associated with the Portfolio, and that the Portfolio bears certain expenses that are not covered by the advisory fee or the unified fee. The Board further considered the challenges that arise when managing large funds, which can result in certain “diseconomies” of scale and noted that PIMCO has continued to reinvest in many areas of the business to support the Portfolios.

The Trustees considered that the unified fee has provided inherent economies of scale because a Portfolio maintains competitive fixed fees over the annual contract period even if the particular Portfolio’s assets decline and/or operating costs rise. The Trustees further considered that, in contrast, breakpoints may be a proxy for charging higher fees on lower asset levels and that when a fund’s assets decline, breakpoints may reverse, which causes expense ratios to increase. The Trustees also considered that, unlike the Portfolios’ unified fee structure, funds with “pass through” administrative fee structures may experience increased expense ratios when fixed dollar fees are charged against declining fund assets. The Trustees also considered that the unified fee protects shareholders from a rise in operating costs that may result from, among other things, PIMCO’s investments in various business enhancements and infrastructure, including those referenced above. The Trustees noted that PIMCO’s investments in these areas are extensive.

ANNUAL REPORT DECEMBER 31, 2018 61

Approval of Investment Advisory Contract and Other Agreements (Cont.)

(Unaudited)

The Board concluded that the Portfolios’ cost structures were reasonable and that PIMCO is appropriately sharing economies of scale, if any, through the Portfolios’ unified fee structure, generally pricing Portfolios to scale at inception and reinvesting in its business to provide enhanced and expanded services to the Portfolios and their shareholders.

6. ANCILLARY BENEFITS

The Board considered other benefits realized by PIMCO and its affiliates as a result of PIMCO’s relationship with the Trust. Such benefits may include possible ancillary benefits to PIMCO’s institutional investment management business due to the reputation and market penetration of the Trust or third party service providers’ relationship-level fee concessions, which decrease fees paid by PIMCO. The Board also considered that affiliates of PIMCO provide distribution and/or shareholder services to the Portfolios and their shareholders, for which they may be compensated through distribution and servicing fees paid pursuant to the Portfolios’ Rule 12b-1 plans or otherwise. The Board reviewed PIMCO’s soft dollar policies and procedures, noting that while PIMCO has the authority to receive the benefit of research provided by broker-dealers executing portfolio transactions on behalf of the Portfolios, it has adopted a policy not to enter into contractual soft dollar arrangements.

7. CONCLUSIONS

Based on their review, including their comprehensive consideration and evaluation of each of the broad factors and information summarized above, the Independent Trustees and the Board as a whole concluded that the nature, extent and quality of the services rendered to the Portfolios by PIMCO and Research Affiliates supported the renewal of the Agreements and the Asset Allocation Agreement. The Independent Trustees and the Board as a whole concluded that the Agreements and the Asset Allocation Agreement continued to be fair and reasonable to the Portfolios and their shareholders, that the Portfolios’ shareholders received reasonable value in return for the fees paid to PIMCO by the Portfolios under the Agreements and the fees paid to Research Affiliates by PIMCO under the Asset Allocation Agreement, and that the renewal of the Agreements and the Asset Allocation Agreement was in the best interests of the Portfolios and their shareholders.

62 PIMCO VARIABLE INSURANCE TRUST

General Information

Investment Adviser and Administrator

Pacific Investment Management Company LLC

650 Newport Center Drive

Newport Beach, CA 92660

Distributor

PIMCO Investments LLC

1633 Broadway

New York, NY 10019

Custodian

State Street Bank and Trust Company

801 Pennsylvania Avenue

Kansas City, MO 64105

Transfer Agent

DST Asset Manager Solutions, Inc.

430 W 7th Street STE 219024

Kansas City, MO 64105-1407

Legal Counsel

Dechert LLP

1900 K Street, N.W.

Washington, D.C. 20006

Independent Registered Public Accounting Firm

PricewaterhouseCoopers LLP

1100 Walnut Street, Suite 1300

Kansas City, MO 64106

This report is submitted for the general information of the shareholders of the PIMCO Variable Insurance Trust.

pimco.com/pvit

PVIT06AR_123118

PIMCO VARIABLE INSURANCE TRUST

Annual Report

December 31, 2018

PIMCO International Bond Portfolio (Unhedged)

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, you may not be receiving paper copies of the Portfolio’s shareholder reports from the insurance company that offers your contract unless you specifically request paper copies from the insurance company or from your financial intermediary. Instead, the shareholder reports will be made available on a website, and the insurance company will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the insurance company electronically by following the instructions provided by the insurance company.

You may elect to receive all future reports in paper free of charge from the insurance company. You should contact the insurance company if you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all portfolio companies available under your contract at the insurance company.

Table of Contents

	Page
Chairman’s Letter		2
Important Information About the PIMCO International Bond Portfolio (Unhedged)*		4
Portfolio Summary		6
Expense Example		7
Financial Highlights		8
Statement of Assets and Liabilities		10
Statement of Operations		11
Statements of Changes in Net Assets		12
Schedule of Investments		13
Notes to Financial Statements		29
Report of Independent Registered Public Accounting Firm		48
Glossary		49
Federal Income Tax Information		50
Management of the Trust		51
Privacy Policy		53
Approval of Investment Advisory Contract and Other Agreements		54

* Prior to July 30, 2018, the PIMCO International Bond Portfolio (Unhedged) was named the PIMCO Foreign Bond Portfolio (Unhedged).

This material is authorized for use only when preceded or accompanied by the current PIMCO Variable Insurance Trust (the “Trust”) prospectus for the Portfolio. (The variable product prospectus may be obtained by contacting your Investment Consultant.)

Chairman’s Letter

Dear PIMCO Variable Insurance Trust Shareholder,

Following this letter is the PIMCO Variable Insurance Trust Annual Report, which covers the 12-month reporting period ended December 31, 2018. On the subsequent pages you will find specific details regarding investment results and discussion of the factors that most affected performance during the reporting period.

For the 12-month reporting period ended December 31, 2018

The U.S. economy continued to expand during the reporting period. Looking back, U.S. gross domestic product (“GDP”) grew at an annual pace of 2.2% during the first quarter of 2018. During the second quarter of 2018, GDP growth rose to an annual pace of 4.2%, the strongest since the third quarter of 2014. GDP then expanded at an annual pace of 3.4% during the third quarter of the year. Finally, the Commerce Department’s initial reading for fourth-quarter 2018 GDP has been delayed due to the partial government shutdown.

The Federal Reserve (the “Fed”) continued to normalize monetary policy during the reporting period. During its meetings that concluded in March, June, September and December 2018, the Fed raised the federal funds rate in 0.25% increments. The Fed’s December rate hike pushed the federal funds rate to a range between 2.25% and 2.50%. In addition, the Fed continued to reduce its balance sheet during the reporting period.

Economic activity outside the U.S. initially accelerated during the reporting period, but moderated as it progressed. Against this backdrop, the European Central Bank (the “ECB”) and the Bank of Japan largely maintained their highly accommodative monetary policies, while other central banks took a more hawkish stance. The Bank of England raised rates at its meeting in August 2018 and the Bank of Canada raised rates twice during the reporting period. Meanwhile, the ECB ended its quantitative easing program in December 2018, but indicated that it does not expect to raise interest rates “at least through the summer of 2019.”

The U.S. Treasury yield curve flattened during the reporting period as short-term rates moved up more than longer-term rates. In our view, the increase in rates at the short end of the yield curve was mostly due to Fed interest rate increases. The yield on the benchmark 10-year U.S. Treasury note was 2.69% at the end of the reporting period, up from 2.40% on December 31, 2017. U.S. Treasuries, as measured by the Bloomberg Barclays U.S. Treasury Index, returned 0.86% over the 12 months ended December 31, 2018. Meanwhile, the Bloomberg Barclays U.S. Aggregate Bond Index, a widely used index of U.S. investment grade bonds, returned 0.01% over the period. Riskier fixed income asset classes, including high yield corporate bonds and emerging market debt, generated weak results versus the broad U.S. market. The ICE BofAML U.S. High Yield Index returned -2.27% over the reporting period, whereas emerging market external debt, as represented by the JPMorgan Emerging Markets Bond Index (EMBI) Global, returned -4.61% over the reporting period. Emerging market local bonds, as represented by the JPMorgan Government Bond Index-Emerging Markets Global Diversified Index (Unhedged), returned -6.21% over the period.

Global equities produced poor results during the reporting period. U.S. equities moved sharply higher over the first nine months of the period. We believe this rally was driven by a number of factors, including corporate profits that often exceeded expectations. However, U.S. equities fell sharply during the fourth quarter of 2018. We believe this was triggered by a number of factors, including signs of moderating global growth, concerns over future Fed rate hikes, the ongoing trade dispute between the U.S. and China and the partial U.S. government shutdown. All told, U.S. equities, as represented by the S&P 500 Index, returned -4.38% during the reporting period. Elsewhere, emerging market equities, as measured by the MSCI Emerging Markets Index, returned -14.58% during the reporting period, whereas global equities, as represented by the MSCI World Index, returned -8.71%. Elsewhere, Japanese equities, as represented by the Nikkei 225 Index (in JPY), returned -10.39% during the reporting period and European equities, as represented by the MSCI Europe Index (in EUR), returned -10.57%.

Commodity prices fluctuated and generally declined during the reporting period. When the reporting period began, West Texas crude oil was approximately $65 a barrel, but by the end it was roughly $45 a barrel. This was driven in

2 PIMCO VARIABLE INSURANCE TRUST

part by increased supply and declining global demand. Elsewhere, gold and copper prices also moved lower during the reporting period.

Finally, during the reporting period the foreign exchange markets experienced periods of volatility, due in part to signs of decoupling economic growth and central bank policies, along with a number of geopolitical events. The U.S. dollar produced mixed results against other major currencies during the reporting period. For example, the U.S. dollar appreciated 4.71% and 5.90% versus the euro and the British pound, respectively, whereas the U.S. dollar depreciated 2.66% versus the yen during the reporting period.

Thank you for the assets you have placed with us. We deeply value your trust, and we will continue to work diligently to meet your broad investment needs.

Sincerely,     Brent R. Harris Chairman of the Board,
PIMCO Variable Insurance Trust  

Past performance is no guarantee of future results. Unless otherwise noted, index returns reflect the reinvestment of income distributions and capital gains, if any, but do not reflect fees, brokerage commissions or other expenses of investing. It is not possible to invest directly in an unmanaged index.

ANNUAL REPORT DECEMBER 31, 2018 3

Important Information About the PIMCO International Bond Portfolio (Unhedged)

PIMCO Variable Insurance Trust (the “Trust”) is an open-end management investment company that includes the PIMCO International Bond Portfolio (Unhedged) (the “Portfolio”). The Portfolio is only available as a funding vehicle under variable life insurance policies or variable annuity contracts issued by insurance companies (“Variable Contracts”). Individuals may not purchase shares of the Portfolio directly. Shares of the Portfolio also may be sold to qualified pension and retirement plans outside of the separate account context.

We believe that bond funds have an important role to play in a well-diversified investment portfolio. It is important to note, however, that in an environment where interest rates may trend upward, rising rates would negatively impact the performance of most bond funds, and fixed income securities and other instruments held by the Portfolio are likely to decrease in value. A wide variety of factors can cause interest rates to rise (e.g., central bank monetary policies, inflation rates, general economic conditions, etc.). In addition, changes in interest rates can be sudden and unpredictable, and there is no guarantee that management will anticipate such movement accurately. The Portfolio may lose money as a result of movements in interest rates.

As of the date of this report, interest rates in the U.S. and many parts of the world, including certain European countries, are at or near historically low levels. Thus, the Portfolio currently faces a heightened level of interest rate risk, especially since the Fed has ended its quantitative easing program and has begun, and may continue, to raise interest rates. To the extent the Fed continues to raise interest rates, there is a risk that rates across the financial system may rise. Further, while bond markets have steadily grown over the past three decades, dealer inventories of corporate bonds are near historic lows in relation to market size. As a result, there has been a significant reduction in the ability of dealers to “make markets.”

Bond funds and individual bonds with a longer duration (a measure used to determine the sensitivity of a security’s price to changes in interest rates) tend to be more sensitive to changes in interest rates, usually making them more volatile than securities or funds with shorter durations. All of the factors mentioned above, individually or collectively, could lead to increased volatility and/or lower liquidity in the fixed income markets or negatively impact the Portfolio’s performance or cause the Portfolio to incur losses. As a result, the Portfolio may

experience increased shareholder redemptions which, among other things, could further reduce the net assets of the Portfolio.

The Portfolio may be subject to various risks as described in the Portfolio’s prospectus and in the Principal Risks in the Notes to Financial Statements.

The geographical classification of foreign (non-U.S.) securities in this report are classified by the country of incorporation of a holding. In certain instances, a security’s country of incorporation may be different from its country of economic exposure.

The United States presidential administration’s enforcement of tariffs on goods from other countries, with a focus on China, has contributed to international trade tensions and may impact portfolio securities.

The United Kingdom’s decision to leave the European Union may impact Portfolio returns. This decision may cause substantial volatility in foreign exchange markets, lead to weakness in the exchange rate of the British pound, result in a sustained period of market uncertainty, and destabilize some or all of the other European Union member countries and/or the Eurozone.

On the Portfolio Summary page in this Shareholder Report, the Average Annual Total Return table and Cumulative Returns chart measure performance assuming that any dividend and capital gain distributions were reinvested. The Cumulative Returns chart reflects only Administrative Class performance. Performance may vary by share class based on each class’s expense ratios. The Portfolio measures its performance against at least one broad-based securities market index (“benchmark index”). The benchmark index does not take into account fees, expenses, or taxes. The Portfolio’s past performance, before and after taxes, is not necessarily an indication of how the Portfolio will perform in the future. There is no assurance that the Portfolio, even if the Portfolio has experienced high or unusual performance for one or more periods, will experience similar levels of performance in the future. High performance is defined as a significant increase in either 1) the Portfolio’s total return in excess of that of the Portfolio’s benchmark between reporting periods or 2) the Portfolio’s total return in excess of the Portfolio’s historical returns between reporting periods. Unusual performance is defined as a significant change in the Portfolio’s performance as compared to one or more previous reporting periods.

The following table discloses the inception dates of the Portfolio and its respective share classes along with the Portfolio’s diversification status as of period end:

Portfolio Name	Portfolio Inception		Institutional Class		Administrative Class		Advisor Class		Diversification Status
PIMCO International Bond Portfolio (Unhedged)		04/30/08		04/30/12		04/30/08		03/31/09		Non-diversified

4 PIMCO VARIABLE INSURANCE TRUST

An investment in the Portfolio is not a bank deposit and is not guaranteed or insured by the Federal Deposit Insurance Corporation (“FDIC”) or any other government agency. It is possible to lose money on investments in the Portfolio.

The Trustees are responsible generally for overseeing the management of the Trust. The Trustees authorize the Trust to enter into service agreements with the Adviser, the Distributor, the Administrator and other service providers in order to provide, and in some cases authorize service providers to procure through other parties, necessary or desirable services on behalf of the Trust and the Portfolio. Shareholders are not parties to or third-party beneficiaries of such service agreements. Neither this Portfolio’s prospectus nor summary prospectus, the Trust’s Statement of Additional Information (“SAI”), any contracts filed as exhibits to the Trust’s registration statement, nor any other communications, disclosure documents or regulatory filings (including this report) from or on behalf of the Trust or the Portfolio creates a contract between or among any shareholder of the Portfolio, on the one hand, and the Trust, the Portfolio, a service provider to the Trust or the Portfolio, and/or the Trustees or officers of the Trust, on the other hand. The Trustees (or the Trust and its officers, service providers or other delegates acting under authority of the Trustees) may amend the most recent prospectus or use a new prospectus, summary prospectus or SAI with respect to the Portfolio or the Trust, and/or amend, file and/or issue any other communications, disclosure documents or regulatory filings, and may amend or enter into any contracts to which the Trust or the Portfolio is a party, and interpret the investment objective(s), policies, restrictions and contractual provisions applicable to the Portfolio, without shareholder input or approval, except in circumstances in which shareholder approval is specifically required by law (such as changes to fundamental investment policies) or where a shareholder approval requirement is specifically disclosed in the Trust’s then-current prospectus or SAI.

PIMCO has adopted written proxy voting policies and procedures (“Proxy Policy”) as required by Rule 206(4)-6 under the Investment Advisers Act of 1940, as amended. The Proxy Policy has been adopted by the Trust as the policies and procedures that PIMCO will use when voting proxies on behalf of the Portfolio. A description of the policies and procedures that PIMCO uses to vote proxies relating to portfolio securities of the Portfolio, and information about how the Portfolio voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, are available without charge, upon request, by calling the Trust at (888) 87-PIMCO, on the Portfolio’s website at www.pimco.com/pvit, and on the Securities and Exchange Commission’s (“SEC”) website at www.sec.gov.

The Trust files a complete schedule of the Portfolio’s holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. A copy of the Portfolio’s Form N-Q is available on the SEC’s website at www.sec.gov. A copy of the Portfolio’s Form N-Q is also available without charge, upon request, by calling the Trust at (888) 87-PIMCO and on the Portfolio’s website at www.pimco.com/pvit.

The SEC adopted a rule that, beginning in 2021, generally will allow shareholder reports to be delivered to investors by providing access to such reports online free of charge and by mailing a notice that the report is electronically available. Pursuant to the rule, investors may still elect to receive a complete shareholder report in the mail. Instructions for electing to receive paper copies of the Portfolio’s shareholder reports going forward may be found on the front cover of this report.

The SEC adopted amendments to certain disclosure requirements relating to open-end investment companies’ liquidity risk management programs. Effective December 1, 2019, large fund complexes will be required to include in their shareholder reports a discussion of their liquidity risk management programs’ operations over the past year.

ANNUAL REPORT DECEMBER 31, 2018 5

PIMCO International Bond Portfolio (Unhedged)

Cumulative Returns Through December 31, 2018

$10,000 invested at the end of the month when the Portfolio’s Administrative Class commenced operations.

Geographic Breakdown

as of 12/31/2018^†§

United States‡	45.6%
United Kingdom	9.5%
Japan	5.7%
Sweden	4.5%
France	3.7%
Canada	3.2%
Denmark	3.0%
Cayman Islands	2.8%
Spain	2.1%
Italy	1.8%
Netherlands	1.7%
Slovenia	1.4%
Germany	1.3%
Qatar	1.1%
Saudi Arabia	1.1%
Other	5.0%

^†  % of Investments, at value.

^§  Geographic Breakdown and % of Investments exclude securities sold short, financial derivative instruments and short-term instruments, if any.

^‡  Includes Central Funds Used for Cash Management Purposes.

Average Annual Total Return for the period ended December 31, 2018
		1 Year		5 Years		10 Years		Inception≈
	PIMCO International Bond Portfolio (Unhedged) Institutional Class		(3.85)%		0.60%		—		(0.07)%
	PIMCO International Bond Portfolio (Unhedged) Administrative Class		(3.97)%		0.45%		2.24%		2.64%
	PIMCO International Bond Portfolio (Unhedged) Advisor Class		(4.07)%		0.35%		—		2.71%
	Bloomberg Barclays Global Aggregate ex-USD (USD Unhedged) Index±		(2.15)%		(0.01)%		1.74%		1.46%¨

All Portfolio returns are net of fees and expenses.

≈ For class inception dates please refer to the Important Information.

^¨ Average annual total return since 04/30/2008.

^± Bloomberg Barclays Global Aggregate ex-USD (USD Unhedged) Index provides a broad-based measure of the global investment-grade fixed income markets. The major components of this index are the Pan-European Aggregate and the Asian-Pacific Aggregate Indices. The index also includes Eurodollar and Euro-Yen corporate bonds and Canadian Government securities.

It is not possible to invest directly in an unmanaged index.

Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. The Portfolio’s performance does not reflect the deduction of additional charges and expenses imposed in connection with investing in Variable Contracts, which will reduce returns. Differences in the Portfolio’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the prices of individual positions (which may be sourced from different pricing vendors or other sources) used by the Portfolio and the index. For performance current to the most recent month-end, visit www.pimco.com/pvit or via (888) 87-PIMCO.

The Portfolio’s total annual operating expense ratio in effect as of period end were 0.84% for Institutional Class shares, 0.99% for Administrative Class shares, and 1.09% for Advisor Class shares. Details regarding any changes to the Portfolio’s operating expenses, subsequent to period end, can be found in the Portfolio’s current prospectus, as supplemented.

Investment Objective and Strategy Overview

PIMCO International Bond Portfolio (Unhedged) seeks maximum total return, consistent with preservation of capital and prudent investment management, by investing under normal circumstances at least 80% of its assets in Fixed Income Instruments that are economically tied to at least three non-U.S. countries. The Portfolio’s investments in Fixed Income Instruments may be represented by forwards or derivatives such as options, futures contracts or swap agreements. “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. Portfolio strategies may change from time to time. Please refer to the Portfolio’s current prospectus for more information regarding the Portfolio’s strategy.

Portfolio Insights

The following affected performance during the reporting period:

» Overweight exposure to core eurozone duration contributed to performance relative to the benchmark.

» Positions in non-agency mortgage-backed securities contributed to relative performance, as these securities generated positive total returns.

» U.S. interest rate strategies, particularly a combination of curve positioning and yield advantage, contributed to performance, as rates rose across the yield curve.

» Overweight exposure to select developed market currencies, particularly the Norwegian krone and Australian dollar, detracted from performance, as these currencies depreciated relative to the U.S. dollar.

» Overweight exposure to a basket of emerging markets currencies detracted from relative performance, as the MSCI Emerging Markets Currency index, which generally captures the overall performance of emerging market currencies, declined relative to the U.S. dollar.

» Holdings of sovereign emerging market external debt detracted from relative performance, as the JP Morgan Emerging Market Bond Index, which generally tracks the total return of emerging market external debt, fell.

6 PIMCO VARIABLE INSURANCE TRUST

Expense Example PIMCO International Bond Portfolio (Unhedged)

Example

As a shareholder of the Portfolio, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees (if applicable), and other Portfolio expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in the Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds.

The Expense Example does not reflect any fees or other expenses imposed by the Variable Contracts. If it did, the expenses reflected in the Expense Example would be higher. The Example is based on an investment of $1,000 invested at the beginning of the period and held from July 1, 2018 to December 31, 2018 unless noted otherwise in the table and footnotes below.

Actual Expenses

The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60), then multiply the result by the number in the appropriate row for your share class, in the column titled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other portfolios. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other portfolios.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information under the heading “Hypothetical (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different portfolios. In addition, if these transactional costs were included, your costs would have been higher.

Expense ratios may vary period to period because of various factors, such as an increase in expenses that are not covered by the management fees such as fees and expenses of the independent trustees and their counsel, extraordinary expenses and interest expense.

	Actual						Hypothetical (5% return before expenses)
	Beginning Account Value (07/01/18)		Ending Account Value (12/31/18)		Expenses Paid During Period*		Beginning Account Value (07/01/18)		Ending Account Value (12/31/18)		Expenses Paid During Period*		Net Annualized Expense Ratio**
Institutional Class	$	1,000.00	$	974.80	$	4.83	$	1,000.00	$	1,020.32	$	4.94		0.97	%
Administrative Class		1,000.00		974.30		5.57		1,000.00		1,019.56		5.70		1.12
Advisor Class		1,000.00		973.80		6.07		1,000.00		1,019.06		6.21		1.22

* Expenses Paid During Period are equal to the net annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Overall fees and expenses of investing in the Portfolio will be higher because the example does not reflect variable contract fees and expenses.

** Net Annualized Expense Ratio is reflective of any applicable contractual fee waivers and/or expense reimbursements or voluntary fee waivers. Details regarding fee waivers, if any, can be found in Note 9, Fees and Expenses, in the Notes to Financial Statements.

ANNUAL REPORT DECEMBER 31, 2018 7

Financial Highlights PIMCO International Bond Portfolio (Unhedged)

			Investment Operations								Less Distributions(b)
Selected Per Share Data for the Year Ended^:	Net Asset Value Beginning of Year		Net Investment Income (Loss)(a)		Net Realized/ Unrealized Gain (Loss)			Total			From Net Investment Income			From Net Realized Capital Gain			Tax Basis Return of Capital			Total
Institutional Class
12/31/2018	$	10.67	$	0.19	$	(0.60	)	$	(0.41	)	$	(0.51	)	$	(0.14	)	$	(0.03	)	$	(0.68	)
12/31/2017		9.78		0.14		0.93			1.07			(0.18	)		0.00			0.00			(0.18	)
12/31/2016		9.61		0.14		0.17			0.31			(0.14	)		0.00			0.00			(0.14	)
12/31/2015		10.53		0.17		(0.89	)		(0.72	)		0.00			(0.03	)		(0.17	)		(0.20	)
12/31/2014		10.74		0.27		(0.20	)		0.07			(0.25	)		(0.03	)		0.00			(0.28	)
Administrative Class
12/31/2018		10.67		0.18		(0.60	)		(0.42	)		(0.50	)		(0.14	)		(0.03	)		(0.67	)
12/31/2017		9.78		0.13		0.93			1.06			(0.17	)		0.00			0.00			(0.17	)
12/31/2016		9.61		0.12		0.17			0.29			(0.12	)		0.00			0.00			(0.12	)
12/31/2015		10.53		0.15		(0.89	)		(0.74	)		0.00			(0.03	)		(0.15	)		(0.18	)
12/31/2014		10.74		0.25		(0.20	)		0.05			(0.23	)		(0.03	)		0.00			(0.26	)
Advisor Class
12/31/2018		10.67		0.17		(0.60	)		(0.43	)		(0.49	)		(0.14	)		(0.03	)		(0.66	)
12/31/2017		9.78		0.12		0.93			1.05			(0.16	)		0.00			0.00			(0.16	)
12/31/2016		9.61		0.11		0.17			0.28			(0.11	)		0.00			0.00			(0.11	)
12/31/2015		10.53		0.14		(0.89	)		(0.75	)		0.00			(0.03	)		(0.14	)		(0.17	)
12/31/2014		10.74		0.24		(0.20	)		0.04			(0.22	)		(0.03	)		0.00			(0.25	)

^ A zero balance may reflect actual amounts rounding to less than $0.01 or 0.01%.

^(a)  Per share amounts based on average number of shares outstanding during the year.

^(b)  The tax characterization of distributions is determined in accordance with Federal income tax regulations. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

8 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

					Ratios/Supplemental Data
							Ratios to Average Net Assets
Net Asset Value End of Year		Total Return			Net Assets End of Year (000s)		Expenses			Expenses Excluding Waivers			Expenses Excluding Interest Expense			Expenses Excluding Interest Expense and Waivers			Net Investment Income (Loss)			Portfolio Turnover Rate
$	9.58		(3.85	)%	$	10		0.87	%		0.87	%		0.75	%		0.75	%		1.85	%		197	%
	10.67		10.96			10		0.84			0.84			0.75			0.75			1.37			216
	9.78		3.15			9		0.80			0.80			0.75			0.75			1.34			419
	9.61		(6.90	)		9		0.76			0.76			0.75			0.75			1.72			325
	10.53		0.57			10		0.76			0.76			0.75			0.75			2.45			277
	9.58		(3.97	)		9,420		1.02			1.02			0.90			0.90			1.72			197
	10.67		10.83			8,468		0.99			0.99			0.90			0.90			1.26			216
	9.78		3.00			7,731		0.95			0.95			0.90			0.90			1.19			419
	9.61		(7.07	)		9,790		0.91			0.91			0.90			0.90			1.54			325
	10.53		0.40			10,388		0.91			0.91			0.90			0.90			2.28			277
	9.58		(4.07	)		20,278		1.12			1.12			1.00			1.00			1.61			197
	10.67		10.72			22,498		1.09			1.09			1.00			1.00			1.14			216
	9.78		2.90			22,506		1.05			1.05			1.00			1.00			1.08			419
	9.61		(7.17	)		24,232		1.01			1.01			1.00			1.00			1.44			325
	10.53		0.30			28,547		1.01			1.01			1.00			1.00			2.17			277

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 9

Statement of Assets and Liabilities PIMCO International Bond Portfolio (Unhedged)

(Amounts in thousands†, except per share amounts)	December 31, 2018
Assets:
Investments, at value
Investments in securities*	$	36,175
Investments in Affiliates		778
Financial Derivative Instruments
Exchange-traded or centrally cleared		41
Over the counter		329
Cash		1
Deposits with counterparty		653
Foreign currency, at value		211
Receivable for investments sold		1,756
Receivable for Portfolio shares sold		3
Interest and/or dividends receivable		210
Dividends receivable from Affiliates		2
Total Assets		40,159
Liabilities:
Borrowings & Other Financing Transactions
Payable for reverse repurchase agreements	$	2,566
Payable for sale-buyback transactions		891
Payable for short sales		165
Financial Derivative Instruments
Exchange-traded or centrally cleared		68
Over the counter		605
Payable for investments purchased		1,572
Payable for investments in Affiliates purchased		2
Payable for TBA investments purchased		4,546
Deposits from counterparty		10
Payable for Portfolio shares redeemed		3
Accrued investment advisory fees		6
Accrued supervisory and administrative fees		12
Accrued distribution fees		4
Accrued servicing fees		1
Total Liabilities		10,451
Net Assets	$	29,708
Net Assets Consist of:
Paid in capital	$	29,854
Distributable earnings (accumulated loss)		(146	)
Net Assets	$	29,708
Net Assets:
Institutional Class	$	10
Administrative Class		9,420
Advisor Class		20,278
Shares Issued and Outstanding:
Institutional Class		1
Administrative Class		983
Advisor Class		2,116
Net Asset Value Per Share Outstanding:
Institutional Class	$	9.58
Administrative Class		9.58
Advisor Class		9.58
Cost of investments in securities	$	36,127
Cost of investments in Affiliates	$	784
Cost of foreign currency held	$	205
Proceeds received on short sales	$	167
Cost or premiums of financial derivative instruments, net	$	371
* Includes repurchase agreements of:	$	109

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

10 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

Statement of Operations PIMCO International Bond Portfolio (Unhedged)

(Amounts in thousands†)	Year Ended December 31, 2018
Investment Income:
Interest	$	884
Dividends from Investments in Affiliates		57
Total Income		941
Expenses:
Investment advisory fees		86
Supervisory and administrative fees		172
Servicing fees - Administrative Class		15
Distribution and/or servicing fees - Advisor Class		60
Trustee fees		1
Interest expense		43
Total Expenses		377
Net Investment Income (Loss)		564
Net Realized Gain (Loss):
Investments in securities		(168	)
Investments in Affiliates		(1	)
Net capital gain distributions received from Affiliate investments		1
Exchange-traded or centrally cleared financial derivative instruments		380
Over the counter financial derivative instruments		(939	)
Short sales		(1	)
Foreign currency		(315	)
Net Realized Gain (Loss)		(1,043	)
Net Change in Unrealized Appreciation (Depreciation):
Investments in securities		(832	)
Investments in Affiliates		(5	)
Exchange-traded or centrally cleared financial derivative instruments		48
Over the counter financial derivative instruments		(620	)
Short sales		2
Foreign currency assets and liabilities		281
Net Change in Unrealized Appreciation (Depreciation)		(1,126	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	(1,605	)

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 11

Statements of Changes in Net Assets PIMCO International Bond Portfolio (Unhedged)

(Amounts in thousands†)	Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets from:
Operations:
Net investment income (loss)	$	564		$	360
Net realized gain (loss)		(1,043	)		1,426
Net change in unrealized appreciation (depreciation)		(1,126	)		1,220
Net Increase (Decrease) in Net Assets Resulting from Operations		(1,605	)		3,006
Distributions to Shareholders:
From net investment income and/or net realized capital gains*
Institutional Class		(1	)		0
Administrative Class		(608	)		(140	)
Advisor Class		(1,303	)		(323	)
Tax basis return of capital
Institutional Class		(0	)		0
Administrative Class		(30	)		0
Advisor Class		(72	)		0
Total Distributions(a)		(2,014	)		(463	)
Portfolio Share Transactions:
Net increase (decrease) resulting from Portfolio share transactions**		2,351			(1,813	)
Total Increase (Decrease) in Net Assets		(1,268	)		730
Net Assets:
Beginning of year		30,976			30,246
End of year	$	29,708		$	30,976

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

* See Note 2, New Accounting Pronouncements, in the Notes to Financial Statements for more information.

** See Note 13, Shares of Beneficial Interest, in the Notes to Financial Statements.

^(a)  The tax characterization of distributions is determined in accordance with Federal income tax regulations. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

12 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

Schedule of Investments PIMCO International Bond Portfolio (Unhedged)

December 31, 2018

(Amounts in thousands*, except number of shares, contracts and units, if any)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
INVESTMENTS IN SECURITIES 121.8%
ARGENTINA 0.1%
SOVEREIGN ISSUES 0.1%
Argentina Government International Bond
50.225% (BADLARPP + 2.000%) due 04/03/2022 ~(a)	ARS		470	$		12
50.950% (BADLARPP + 2.500%) due 03/11/2019 ~(a)			24			1
59.257% (ARLLMONP) due 06/21/2020 ~(a)			680			19
Total Argentina (Cost $62)						32
AUSTRALIA 1.0%
CORPORATE BONDS & NOTES 0.7%
Sydney Airport Finance Co. Pty. Ltd.
3.900% due 03/22/2023	$		100			100
Woodside Finance Ltd.
4.600% due 05/10/2021			100			101
						201
SOVEREIGN ISSUES 0.3%
New South Wales Treasury Corp.
2.750% due 11/20/2025	AUD		130			103
Total Australia (Cost $334)						304
BRAZIL 0.5%
CORPORATE BONDS & NOTES 0.5%
Petrobras Global Finance BV
5.999% due 01/27/2028	$		136			128
6.125% due 01/17/2022			34			35
Total Brazil (Cost $168)						163
CANADA 3.9%
CORPORATE BONDS & NOTES 0.3%
Enbridge, Inc.
3.488% (US0003M + 0.700%) due 06/15/2020 ~	$		100			100
NON-AGENCY MORTGAGE-BACKED SECURITIES 0.1%
Canadian Mortgage Pools
2.459% due 07/01/2020	CAD		57			42
SOVEREIGN ISSUES 3.5%
Province of Alberta
2.350% due 06/01/2025			100			72
Province of Ontario
2.600% due 06/02/2025 (h)			1,200			878
Province of Quebec
3.500% due 12/01/2022			100			76
						1,026
Total Canada (Cost $1,204)						1,168
CAYMAN ISLANDS 3.5%
ASSET-BACKED SECURITIES 2.9%
Apex Credit CLO Ltd.
3.611% due 10/27/2028 •	$		100			100
Atrium Corp.
3.827% due 10/23/2024 •			250			251
Crown Point CLO Ltd.
3.975% due 10/20/2028 •			100			99
Dryden Senior Loan Fund
3.336% due 10/15/2027 •			100			99
Figueroa CLO Ltd.
3.642% due 06/20/2027 •			100			99

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Monarch Grove CLO
3.370% due 01/25/2028 •	$		100	$		99
Zais CLO Ltd.
3.586% due 04/15/2028 •			100			100
						847
CORPORATE BONDS & NOTES 0.6%
Sands China Ltd.
5.400% due 08/08/2028			200			194
Total Cayman Islands (Cost $1,049)						1,041
DENMARK 3.8%
CORPORATE BONDS & NOTES 3.8%
Jyske Realkredit A/S
1.500% due 10/01/2037	DKK		200			31
2.000% due 10/01/2047			368			57
Nordea Kredit Realkreditaktieselskab
1.500% due 10/01/2037			100			16
2.000% due 10/01/2047			917			142
2.000% due 10/01/2050			1,875			287
2.500% due 10/01/2037			58			10
3.000% due 10/01/2047			42			7
Nykredit Realkredit A/S
1.500% due 10/01/2037			100			15
2.000% due 10/01/2047			893			138
2.500% due 10/01/2036			60			10
2.500% due 10/01/2047			68			11
Realkredit Danmark A/S
2.000% due 10/01/2047			1,948			302
2.000% due 10/01/2050			295			45
2.500% due 07/01/2036			184			30
2.500% due 07/01/2047			59			9
3.000% due 07/01/2046			36			6
Total Denmark (Cost $1,085)						1,116
FRANCE 4.6%
CORPORATE BONDS & NOTES 1.9%
Altice France S.A.
5.625% due 05/15/2024	EUR		100			116
Danone S.A.
2.077% due 11/02/2021	$		200			193
Dexia Credit Local S.A.
2.500% due 01/25/2021			250			249
						558
SOVEREIGN ISSUES 2.7%
France Government International Bond
2.000% due 05/25/2048	EUR		400			498
3.250% due 05/25/2045			200			315
						813
Total France (Cost $1,272)						1,371
GERMANY 1.6%
CORPORATE BONDS & NOTES 1.6%
Deutsche Bank AG
2.700% due 07/13/2020	$		100			97
4.250% due 10/14/2021			200			195
Kreditanstalt fuer Wiederaufbau
6.000% due 08/20/2020	AUD		100			75
Volkswagen Bank GmbH
0.625% due 09/08/2021	EUR		100			114
Total Germany (Cost $519)						481

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
IRELAND 0.5%
SOVEREIGN ISSUES 0.5%
Ireland Government International Bond
5.400% due 03/13/2025	EUR		100	$		150
Total Ireland (Cost $138)						150
ITALY 2.2%
SOVEREIGN ISSUES 2.2%
Italy Buoni Poliennali Del Tesoro
1.450% due 11/15/2024 (h)	EUR		200			222
2.450% due 10/01/2023			50			59
2.500% due 11/15/2025			100			116
2.950% due 09/01/2038 (h)			100			109
Italy Government International Bond
6.000% due 08/04/2028	GBP		100			146
Total Italy (Cost $674)						652
JAPAN 7.1%
CORPORATE BONDS & NOTES 1.4%
Central Nippon Expressway Co. Ltd.
3.122% (US0003M + 0.540%) due 08/04/2020 ~	$		200			199
Sumitomo Mitsui Financial Group, Inc.
4.447% (US0003M + 1.680%) due 03/09/2021 ~			200			204
						403
SOVEREIGN ISSUES 5.7%
Development Bank of Japan, Inc.
1.625% due 09/01/2021			200			194
Japan Bank for International Cooperation
2.500% due 06/01/2022			200			197
Japan Finance Organization for Municipalities
2.625% due 04/20/2022			200			198
Japan Government International Bond
0.300% due 06/20/2046	JPY		80,000			660
0.500% due 09/20/2046			50,000			435
						1,684
Total Japan (Cost $2,201)						2,087
JERSEY, CHANNEL ISLANDS 0.3%
CORPORATE BONDS & NOTES 0.3%
Heathrow Funding Ltd.
4.875% due 07/15/2023	$		100			103
Total Jersey, Channel Islands (Cost $104)						103
KUWAIT 0.7%
SOVEREIGN ISSUES 0.7%
Kuwait International Government Bond
3.500% due 03/20/2027	$		200			199
Total Kuwait (Cost $198)						199
LITHUANIA 0.4%
SOVEREIGN ISSUES 0.4%
Lithuania Government International Bond
6.125% due 03/09/2021	$		100			106
Total Lithuania (Cost $106)						106
NETHERLANDS 2.1%
CORPORATE BONDS & NOTES 2.1%
Cooperatieve Rabobank UA
6.875% due 03/19/2020 (f)	EUR		100			124

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 13

Schedule of Investments PIMCO International Bond Portfolio (Unhedged) (Cont.)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Deutsche Telekom International Finance BV
1.950% due 09/19/2021	$		200	$		192
ING Bank NV
2.625% due 12/05/2022			250			246
Mylan NV
2.500% due 06/07/2019			55			55
Total Netherlands (Cost $626)						617
NORWAY 0.7%
CORPORATE BONDS & NOTES 0.7%
DNB Boligkreditt A/S
3.250% due 06/28/2023	$		200			202
Total Norway (Cost $200)						202
POLAND 0.4%
SOVEREIGN ISSUES 0.4%
Poland Government International Bond
2.250% due 04/25/2022	PLN		400			108
Total Poland (Cost $100)						108
QATAR 1.4%
SOVEREIGN ISSUES 1.4%
Qatar Government International Bond
3.875% due 04/23/2023	$		200			203
4.500% due 04/23/2028			200			209
Total Qatar (Cost $398)						412
SAUDI ARABIA 1.3%
SOVEREIGN ISSUES 1.3%
Saudi Government International Bond
2.375% due 10/26/2021	$		200			193
4.500% due 04/17/2030			200			199
Total Saudi Arabia (Cost $398)						392
SLOVENIA 1.7%
SOVEREIGN ISSUES 1.7%
Slovenia Government International Bond
4.125% due 02/18/2019	$		500			501
Total Slovenia (Cost $501)						501
SPAIN 2.6%
CORPORATE BONDS & NOTES 0.4%
Banco Santander S.A.
6.250% due 09/11/2021 •(e)(f)	EUR		100			113
SOVEREIGN ISSUES 2.2%
Autonomous Community of Catalonia
4.950% due 02/11/2020			150			179
Spain Government International Bond
1.400% due 07/30/2028			300			343
2.900% due 10/31/2046			100			123
						645
Total Spain (Cost $782)						758
SWEDEN 5.5%
CORPORATE BONDS & NOTES 5.5%
Danske Hypotek AB
1.000% due 12/21/2022	SEK		2,000			230
Lansforsakringar Hypotek AB
1.250% due 09/20/2023			1,500			173
2.250% due 09/21/2022			2,300			276

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Nordea Hypotek AB
1.000% due 04/08/2022	SEK		3,400	$		392
Skandinaviska Enskilda Banken AB
1.500% due 12/15/2021			500			58
Stadshypotek AB
1.500% due 12/15/2021			1,000			117
4.500% due 09/21/2022			2,000			260
Swedbank Hypotek AB
1.000% due 09/15/2021			600			69
1.000% due 06/15/2022			600			69
Total Sweden (Cost $1,647)						1,644
SWITZERLAND 1.0%
CORPORATE BONDS & NOTES 0.7%
UBS AG
3.347% due 06/08/2020 •	$		200			200
SOVEREIGN ISSUES 0.3%
Switzerland Government International Bond
3.500% due 04/08/2033	CHF		50			76
Total Switzerland (Cost $272)						276
UNITED ARAB EMIRATES 0.7%
SOVEREIGN ISSUES 0.7%
Emirate of Abu Dhabi Government International Bond
2.500% due 10/11/2022	$		200			194
Total United Arab Emirates (Cost $200)						194
UNITED KINGDOM 11.8%
CORPORATE BONDS & NOTES 6.3%
Barclays PLC
3.684% due 01/10/2023	$		200			192
4.046% (US0003M + 1.430%) due 02/15/2023 ~			200			193
6.500% due 09/15/2019 •(e)(f)	EUR		200			224
BG Energy Capital PLC
4.000% due 10/15/2021	$		200			203
British Telecommunications PLC
9.625% due 12/15/2030			60			81
Lloyds Bank PLC
4.875% due 03/30/2027	GBP		100			154
Nationwide Building Society
6.875% due 06/20/2019 •(e)(f)			100			129
Natwest Markets PLC
0.625% due 03/02/2022	EUR		100			111
Royal Bank of Scotland Group PLC
7.500% due 08/10/2020 •(e)(f)	$		200			199
Santander UK Group Holdings PLC
2.875% due 10/16/2020			200			197
Tesco Property Finance PLC
5.744% due 04/13/2040	GBP		49			70
Virgin Money PLC
2.250% due 04/21/2020			100			127
						1,880
NON-AGENCY MORTGAGE-BACKED SECURITIES 2.7%
Eurosail PLC
0.000% due 12/10/2044 •	EUR		26			29
0.000% due 03/13/2045 •			33			38
1.060% due 03/13/2045 •	GBP		67			83
Kensington Mortgage Securities PLC
0.000% due 06/14/2040 •	EUR		33			36
Mansard Mortgages PLC
1.556% due 12/15/2049 •	GBP		92			113
Newgate Funding PLC
1.906% due 12/15/2050 •			132			161

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Ripon Mortgages PLC
1.689% due 08/20/2056 •	GBP		83	$		106
RMAC Securities PLC
0.000% due 06/12/2044 •	EUR		100			107
1.073% due 06/12/2044 •	GBP		115			136
						809
SOVEREIGN ISSUES 2.8%
United Kingdom Gilt
1.500% due 07/22/2047			50			59
3.250% due 01/22/2044 (h)			350			572
3.500% due 01/22/2045 (h)			120			206
						837
Total United Kingdom (Cost $3,608)						3,526
UNITED STATES 54.0%
ASSET-BACKED SECURITIES 4.5%
Bayview Opportunity Master Fund Trust
4.090% due 05/28/2033 Ø	$		65			65
Citigroup Mortgage Loan Trust, Inc.
2.766% due 06/25/2037 •			200			193
Countrywide Asset-Backed Certificates
2.646% due 07/25/2037 •			25			23
2.726% due 06/25/2047 •			300			286
2.746% due 04/25/2037 •			61			48
Countrywide Asset-Backed Certificates Trust
3.166% due 08/25/2035 •			155			154
Panhandle-Plains Higher Education Authority, Inc.
3.927% due 10/01/2035 •			27			27
Renaissance Home Equity Loan Trust
5.056% due 12/25/2032 •			71			69
Saxon Asset Securities Trust
4.256% due 12/25/2037 •			67			63
SG Mortgage Securities Trust
2.656% due 10/25/2036 •			200			175
SLM Student Loan Trust
0.000% due 12/15/2023 •	EUR		18			20
Structured Asset Investment Loan Trust
4.231% due 10/25/2034 •	$		116			114
Structured Asset Securities Corp. Mortgage Loan Trust
2.641% due 07/25/2036 •			17			16
Terwin Mortgage Trust
3.446% due 11/25/2033 •			2			2
Vericrest Opportunity Loan Transferee LLC
3.125% due 09/25/2047 Ø			73			72
						1,327
CORPORATE BONDS & NOTES 19.4%
Ally Financial, Inc.
3.750% due 11/18/2019			100			100
8.000% due 11/01/2031			100			111
AT&T, Inc.
3.386% (US0003M + 0.950%) due 07/15/2021 ~			100			100
3.488% (US0003M + 0.750%) due 06/01/2021 ~			200			199
3.956% (US0003M + 1.180%) due 06/12/2024 ~			100			97
Bank of America Corp.
5.875% due 03/15/2028 •(e)			50			46
Bank of New York Mellon Corp.
2.200% due 08/16/2023			100			95
BAT Capital Corp.
3.204% due 08/14/2020 •			100			99
3.222% due 08/15/2024			100			92
Becton Dickinson and Co.
3.250% due 11/12/2020			100			99
Campbell Soup Co.
3.300% due 03/15/2021			100			100

14 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Cardinal Health, Inc.
1.948% due 06/14/2019	$		100	$		99
Celanese U.S. Holdings LLC
4.625% due 11/15/2022			100			103
Charter Communications Operating LLC
3.750% due 02/15/2028			100			91
CNH Industrial Capital LLC
4.875% due 04/01/2021			100			102
CVS Health Corp.
3.700% due 03/09/2023			100			99
D.R. Horton, Inc.
3.750% due 03/01/2019			100			100
Dell International LLC
3.480% due 06/01/2019			200			199
4.420% due 06/15/2021			100			100
Delta Air Lines, Inc.
2.875% due 03/13/2020			100			99
Discovery Communications LLC
2.800% due 06/15/2020			100			99
Dominion Energy Gas Holdings LLC
2.500% due 12/15/2019			100			99
Dresdner Funding Trust
8.151% due 06/30/2031			100			121
Energy Transfer Operating LP
4.650% due 06/01/2021			100			102
Enterprise Products Operating LLC
6.500% due 01/31/2019			100			100
ERAC USA Finance LLC
2.600% due 12/01/2021			100			97
Ford Motor Credit Co. LLC
2.425% due 06/12/2020			200			195
General Motors Financial Co., Inc.
3.258% (US0003M + 0.850%) due 04/09/2021 ~			100			98
HCA, Inc.
6.500% due 02/15/2020			100			103
Kinder Morgan Energy Partners LP
6.850% due 02/15/2020			100			104
KLA-Tencor Corp.
4.125% due 11/01/2021			100			102
Komatsu Finance America, Inc.
2.118% due 09/11/2020			200			196
Kraft Heinz Foods Co.
3.188% (US0003M + 0.570%) due 02/10/2021 ~			100			99
Mid-America Apartments LP
4.200% due 06/15/2028			100			101
Morgan Stanley
3.737% due 04/24/2024 •			100			99
MUFG Americas Holdings Corp.
3.000% due 02/10/2025			80			77
Nasdaq, Inc.
3.214% (US0003M + 0.390%) due 03/22/2019 ~			200			200
Navient Corp.
4.875% due 06/17/2019			69			69
Nissan Motor Acceptance Corp.
3.503% due 09/28/2022 •			100			97
Penske Truck Leasing Co. LP
3.950% due 03/10/2025			100			98
Plains All American Pipeline LP
5.750% due 01/15/2020			100			102
Progress Energy, Inc.
7.050% due 03/15/2019			100			101
QVC, Inc.
3.125% due 04/01/2019			100			100
Rockwell Collins, Inc.
2.800% due 03/15/2022			100			97
Ryder System, Inc.
2.650% due 03/02/2020			300			297
Springleaf Finance Corp.
8.250% due 12/15/2020			100			104

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Time Warner Cable LLC
4.125% due 02/15/2021	$		100	$		100
UnitedHealth Group, Inc.
3.750% due 07/15/2025			100			101
Verizon Communications, Inc.
2.625% due 08/15/2026			100			91
Wells Fargo & Co.
3.597% (US0003M + 1.110%) due 01/24/2023 ~			100			99
Zimmer Biomet Holdings, Inc.
3.550% due 04/01/2025			100			95
3.554% (US0003M + 0.750%) due 03/19/2021 ~			100			99
						5,772
LOAN PARTICIPATIONS AND ASSIGNMENTS 0.3%
Charter Communications Operating LLC
4.530% due 04/30/2025			98			94
NON-AGENCY MORTGAGE-BACKED SECURITIES 5.3%
Banc of America Alternative Loan Trust
6.500% due 04/25/2036 ^			87			80
BCAP LLC Trust
5.750% due 02/28/2037 ~			57			53
Bear Stearns ALT-A Trust
3.939% due 11/25/2036 ^~			79			65
Chase Mortgage Finance Trust
3.614% due 07/25/2037 ~			4			4
Citigroup Mortgage Loan Trust, Inc.
4.240% due 09/25/2035 •			6			6
Commercial Mortgage Trust
1.921% due 07/10/2046 ~(a)			391			9
Countrywide Alternative Loan Resecuritization Trust
6.000% due 08/25/2037 ^~			164			125
Countrywide Alternative Loan Trust
3.206% due 05/25/2036 •			275			166
Countrywide Home Loan Mortgage Pass-Through Trust
6.500% due 11/25/2047			64			53
DBUBS Mortgage Trust
0.306% due 11/10/2046 ~(a)			200			1
0.709% due 11/10/2046 ~(a)			134			1
Deutsche ALT-A Securities, Inc. Mortgage Loan Trust
2.696% due 08/25/2047 •			131			118
First Horizon Mortgage Pass-Through Trust
4.010% due 05/25/2037 ^~			24			20
GSR Mortgage Loan Trust
4.039% due 11/25/2035 ~			73			72
HarborView Mortgage Loan Trust
3.030% due 02/19/2036 •			229			193
Impac CMB Trust
3.226% due 10/25/2034 •			55			54
IndyMac Mortgage Loan Trust
2.986% due 07/25/2035 •			19			19
JPMorgan Alternative Loan Trust
4.330% due 12/25/2035 ^~			58			50
JPMorgan Chase Commercial Mortgage Securities Trust
3.379% due 09/15/2050			100			99
4.070% due 11/15/2043			175			177
JPMorgan Mortgage Trust
3.968% due 02/25/2036 ^~			13			11
Mellon Residential Funding Corp. Mortgage Pass-Through Trust
3.315% due 08/15/2032 •			26			25
Merrill Lynch Mortgage Investors Trust
3.677% due 02/25/2035 ~			7			7
Morgan Stanley Bank of America Merrill Lynch Trust
0.994% due 12/15/2048 ~(a)			290			9
Structured Asset Securities Corp.
2.786% due 01/25/2036 •			18			17
Thornburg Mortgage Securities Trust
4.323% due 06/25/2047 ^•			10			10

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
WaMu Mortgage Pass-Through Certificates Trust
3.672% due 03/25/2035 ~	$		54	$		55
3.770% due 03/25/2034 ~			57			59
3.994% due 09/25/2036 ~			12			12
Wells Fargo Mortgage-Backed Securities Trust
4.476% due 10/25/2035 ~			11			11
						1,581
U.S. GOVERNMENT AGENCIES 17.7%
Fannie Mae, TBA
3.500% due 01/01/2049			3,600			3,601
4.000% due 01/01/2049			1,000			1,020
Freddie Mac
1.567% due 01/15/2038 ~(a)			50			3
2.649% due 01/15/2038 •			50			50
3.055% due 12/15/2037 •			4			4
3.500% due 08/01/2047			491			491
NCUA Guaranteed Notes
2.940% due 12/08/2020 •			78			78
Small Business Administration
5.980% due 05/01/2022			12			13
						5,260
U.S. TREASURY OBLIGATIONS 6.8%
U.S. Treasury Inflation Protected Securities (d)
0.375% due 07/15/2025			107			103
0.500% due 01/15/2028 (h)			718			686
1.000% due 02/15/2048 (h)			308			292
2.500% due 01/15/2029			118			134
U.S. Treasury Notes
2.875% due 04/30/2025 (h)			800			814
						2,029
Total United States (Cost $15,787)						16,063
SHORT-TERM INSTRUMENTS 8.4%
CERTIFICATES OF DEPOSIT 0.3%
Lloyds Bank Corporate Markets PLC
3.324% (US0003M + 0.500%) due 09/24/2020 ~	$		100			100
REPURCHASE AGREEMENTS (g) 0.4%
						109
ARGENTINA TREASURY BILLS 0.1%
(2.232)% due 01/31/2019 - 04/30/2019 (b)(c)	ARS		601			17
FRANCE TREASURY BILLS 1.5%
(0.627)% due 01/04/2019 - 01/16/2019 (b)(c)	EUR		400			458
JAPAN TREASURY BILLS 6.1%
(0.161)% due 02/12/2019 - 03/11/2019 (b)(c)	JPY		200,000			1,825
Total Short-Term Instruments (Cost $2,494)						2,509
Total Investments in Securities (Cost $36,127)						36,175

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 15

Schedule of Investments PIMCO International Bond Portfolio (Unhedged) (Cont.)

	SHARES			MARKET VALUE (000S)
INVESTMENTS IN AFFILIATES 2.6%
SHORT-TERM INSTRUMENTS 2.6%
CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 2.6%
PIMCO Short Asset Portfolio		57,886	$		574
PIMCO Short-Term Floating NAV Portfolio III		20,606			204
Total Short-Term Instruments (Cost $784)					778
Total Investments in Affiliates (Cost $784)					778
Total Investments 124.4% (Cost $36,911)			$		36,953
Financial Derivative Instruments (i)(j) (1.0)% (Cost or Premiums, net $371)					(303	)
Other Assets and Liabilities, net (23.4)%					(6,942	)
Net Assets 100.0%			$		29,708

NOTES TO SCHEDULE OF INVESTMENTS:

* A zero balance may reflect actual amounts rounding to less than one thousand.

^ Security is in default.

~ Variable or Floating rate security. Rate shown is the rate in effect as of period end. Certain variable rate securities are not based on a published reference rate and spread, rather are determined by the issuer or agent and are based on current market conditions. Reference rate is as of reset date, which may vary by security. These securities may not indicate a reference rate and/or spread in their description.

• Rate shown is the rate in effect as of period end. The rate may be based on a fixed rate, a capped rate or a floor rate and may convert to a variable or floating rate in the future. These securities do not indicate a reference rate and spread in their description.

Ø Coupon represents a rate which changes periodically based on a predetermined schedule or event. Rate shown is the rate in effect as of period end.

(a) Interest only security.

(b) Coupon represents a weighted average yield to maturity.

(c) Zero coupon security.

(d) Principal amount of security is adjusted for inflation.

(e) Perpetual maturity; date shown, if applicable, represents next contractual call date.

(f) Contingent convertible security.

BORROWINGS AND OTHER FINANCING TRANSACTIONS

(g)  REPURCHASE AGREEMENTS:

Counterparty	Lending Rate			Settlement Date		Maturity Date		Principal Amount		Collateralized By	Collateral (Received)			Repurchase Agreements, at Value		Repurchase Agreement Proceeds to  be Received(1)
FICC		2.000	%		12/31/2018		01/02/2019	$	109	U.S. Treasury Notes 2.875% due 09/30/2023	$	(112	)	$	109	$	109
Total Repurchase Agreements											$	(112	)	$	109	$	109

REVERSE REPURCHASE AGREEMENTS:

Counterparty	Borrowing Rate(2)			Settlement Date		Maturity Date		Amount Borrowed(2)				Payable for Reverse Repurchase Agreements
BOS		2.500	%		11/08/2018		01/08/2019		$	(790	)	$	(793	)
BPS		(0.300	)		10/18/2018		01/22/2019		EUR	(271	)		(310	)
IND		0.830			10/04/2018		01/15/2019		GBP	(386	)		(493	)
		2.550			11/14/2018		01/14/2019		$	(285	)		(287	)
		2.570			11/20/2018		01/22/2019			(681	)		(683	)
Total Reverse Repurchase Agreements												$	(2,566	)

16 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

SALE-BUYBACK TRANSACTIONS:

Counterparty	Borrowing Rate(2)			Borrowing Date		Maturity Date		Amount Borrowed(2)				Payable  for Sale-Buyback Transactions(3)
BPS		2.060	%		11/15/2018		02/15/2019		CAD	(1,176	)	$	(891	)
Total Sale-Buyback Transactions												$	(891	)

SHORT SALES:

Description	Coupon		Maturity Date		Principal Amount			Proceeds			Payable for Short Sales(4)
Canada (0.6)%
Sovereign Issues (0.6)%
Canada Government Bond		2.750%		12/01/2048		CAD	200	$	(167	)	$	(165	)
Total Short Sales (0.6)%								$	(167	)	$	(165	)

BORROWINGS AND OTHER FINANCING TRANSACTIONS SUMMARY

The following is a summary by counterparty of the market value of Borrowings and Other Financing Transactions and collateral pledged/(received) as of December 31, 2018:

Counterparty	Repurchase Agreement Proceeds to  be Received(1)		Payable for Reverse Repurchase Agreements			Payable for Sale-Buyback Transactions(3)			Payable for Short Sales(4)			Total Borrowings and Other Financing Transactions			Collateral Pledged/(Received)			Net Exposure(5)
Global/Master Repurchase Agreement
BOS	$	0	$	(793	)	$	0		$	0		$	(793	)	$	814		$	21
BPS		0		(310	)		0			0			(310	)		331			21
FICC		109		0			0			0			109			(112	)		(3	)
IND		0		(1,463	)		0			0			(1,463	)		1,476			13
Master Securities Forward Transaction Agreement
BPS		0		0			(891	)		0			(891	)		877			(14	)
TDM		0		0			0			(165	)		(165	)		0			(165	)
Total Borrowings and Other Financing Transactions	$	109	$	(2,566	)	$	(891	)	$	(165	)

CERTAIN TRANSFERS ACCOUNTED FOR AS SECURED BORROWINGS

Remaining Contractual Maturity of the Agreements

	Overnight and Continuous		Up to 30 days			31-90 days			Greater Than 90 days		Total
Reverse Repurchase Agreements
Sovereign Issues	$	0	$	(803	)	$	0		$	0	$	(803	)
U.S. Treasury Obligations		0		(1,763	)		0			0		(1,763	)
Total	$	0	$	(2,566	)	$	0		$	0	$	(2,566	)
Sale-Buyback Transactions
Sovereign Issues		0		0			(891	)		0		(891	)
Total	$	0	$	0		$	(891	)	$	0	$	(891	)
Total Borrowings	$	0	$	(2,566	)	$	(891	)	$	0	$	(3,457	)
Payable for reverse repurchase agreements and sale-buyback financing transactions											$	(3,457	)

(h) Securities with an aggregate market value of $3,498 have been pledged as collateral under the terms of the above master agreements as of December 31, 2018.

⁽¹⁾ Includes accrued interest.

⁽²⁾ The average amount of borrowings outstanding during the period ended December 31, 2018 was $(2,559) at a weighted average interest rate of 1.080%. Average borrowings may include sale-buyback transactions and reverse repurchase agreements, if held during the period.

⁽³⁾ Payable for sale-buyback transactions includes $(2) of deferred price drop.

⁽⁴⁾ Payable for short sales includes $1 of accrued interest.

⁽⁵⁾ Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from borrowings and other financing transactions can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information regarding master netting arrangements.

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 17

Schedule of Investments PIMCO International Bond Portfolio (Unhedged) (Cont.)

(i)  FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED

PURCHASED OPTIONS:

OPTIONS ON EXCHANGE-TRADED FUTURES CONTRACTS

Description	Strike Price		Expiration Date		# of Contracts		Notional Amount		Cost		Market Value
Put - CBOT U.S. Treasury 10-Year Note March 2019 Futures	$	111.500		02/22/2019		1	$	1	$	0	$	0
Call - CBOT U.S. Treasury 10-Year Note March 2019 Futures		131.500		02/22/2019		3		3		0		0
Call - CBOT U.S. Treasury 10-Year Note March 2019 Futures		133.500		02/22/2019		2		2		0		0
Put - CBOT U.S. Treasury 5-Year Note March 2019 Futures		104.000		02/22/2019		14		14		0		0
Put - CBOT U.S. Treasury 5-Year Note March 2019 Futures		106.000		02/22/2019		9		9		0		0
Put - CBOT U.S. Treasury 5-Year Note March 2019 Futures		106.500		02/22/2019		5		5		0		0
Total Purchased Options									$	0	$	0

FUTURES CONTRACTS:

LONG FUTURES CONTRACTS

Description	Expiration Month		# of Contracts		Notional Amount		Unrealized Appreciation/ (Depreciation)		Variation Margin
									Asset		Liability
90-Day Eurodollar March Futures		03/2019		96	$	23,350	$	6	$	0	$	0
Australia Government 3-Year Note March Futures		03/2019		15		1,186		3		2		0
Australia Government 10-Year Bond March Futures		03/2019		3		280		3		1		0
Call Options Strike @ EUR 159.500 on Euro-BTP Italy Government Bond March 2019 Futures		02/2019		1		0		0		0		0
Call Options Strike @ EUR 165.000 on Euro-OAT France Government 10-Year Bond March 2019 Futures		02/2019		22		0		0		0		0
Call Options Strike @ EUR 166.000 on Euro-OAT France Government 10-Year Bond March 2019 Futures		02/2019		2		0		0		0		0
Canada Government 10-Year Bond March Futures		03/2019		1		100		3		0		0
Euro-Bobl March Futures		03/2019		9		1,367		3		0		0
Euro-Bund 10-Year Bond March Futures		03/2019		1		187		2		0		0
Euro-Buxl 30-Year Bond March Futures		03/2019		1		207		5		0		(1	)
Japan Government 10-Year Bond March Futures		03/2019		2		2,782		20		3		(1	)
Put Options Strike @ EUR 127.250 on Euro-Bobl March 2019 Futures		02/2019		11		0		0		0		0
U.S. Treasury 5-Year Note March Futures		03/2019		28		3,211		39		7		0
United Kingdom 90-Day LIBOR Sterling Interest Rate September Futures		09/2019		49		7,725		7		0		(1	)
							$	91	$	13	$	(3	)

SHORT FUTURES CONTRACTS

Description	Expiration Month		# of Contracts		Notional Amount			Unrealized Appreciation/ (Depreciation)			Variation Margin
											Asset		Liability
90-Day Eurodollar December Futures		12/2019		18	$	(4,381	)	$	(9	)	$	0	$	0
90-Day Eurodollar December Futures		12/2020		41		(9,997	)		(78	)		0		(4	)
90-Day Eurodollar March Futures		03/2020		37		(9,014	)		(23	)		0		(2	)
Call Options Strike @ EUR 133.000 on Euro-Bobl March 2019 Futures		02/2019		4		(1	)		0			0		0
Call Options Strike @ EUR 164.500 on Euro-Bund 10-Year Bond March 2019 Futures		02/2019		2		(2	)		(1	)		0		0
Euro-BTP Italy Government Bond March Futures		03/2019		2		(293	)		(14	)		0		0
Euro-OAT France Government 10-Year Bond March Futures		03/2019		18		(3,110	)		(18	)		4		0
Put Options Strike @ EUR 131.250 on Euro-Bobl March 2019 Futures		02/2019		4		0			1			0		0
Put Options Strike @ EUR 160.000 on Euro-Bund 10-Year Bond March 2019 Futures		02/2019		2		0			1			0		0
U.S. Treasury 10-Year Note March Futures		03/2019		5		(610	)		(15	)		0		(2	)
United Kingdom 90-Day LIBOR Sterling Interest Rate September Futures		09/2020		49		(7,713	)		(15	)		1		(2	)
United Kingdom Long Gilt March Futures		03/2019		11		(1,727	)		(1	)		2		(6	)
								$	(172	)	$	7	$	(16	)
Total Futures Contracts								$	(81	)	$	20	$	(19	)

SWAP AGREEMENTS:

CREDIT DEFAULT SWAPS ON CORPORATE ISSUES - BUY PROTECTION⁽¹⁾

Reference Entity	Fixed (Pay) Rate			Payment Frequency		Maturity Date		Implied Credit Spread at December 31, 2018(3)			Notional Amount(4)			Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)		Market Value(5)			Variation Margin
																						Asset		Liability
Reynolds American, Inc.		(1.000	)%		Quarterly		12/20/2020		0.283	%		$	100	$	(3	)	$	2	$	(1	)	$	0	$	0
United Utilities PLC		(1.000	)		Quarterly		12/20/2020		0.292			EUR	100		(2	)		0		(2	)		0		0
														$	(5	)	$	2	$	(3	)	$	0	$	0

18 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

CREDIT DEFAULT SWAPS ON CORPORATE ISSUES - SELL PROTECTION⁽²⁾

Reference Entity	Fixed Receive Rate	Payment Frequency		Maturity Date		Implied Credit Spread at December 31, 2018(3)			Notional Amount(4)			Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Market Value(5)			Variation Margin
																					Asset		Liability
Exelon Generation Co. LLC	1.000%		Quarterly		06/20/2022		0.601	%		$	100	$	0		$	1		$	1		$	0	$	0
Marks & Spencer PLC	1.000		Quarterly		12/20/2022		2.012			EUR	100		(1	)		(3	)		(4	)		0		0
Tesco PLC	1.000		Quarterly		06/20/2022		1.146				100		0			(1	)		(1	)		0		0
												$	(1	)	$	(3	)	$	(4	)	$	0	$	0

CREDIT DEFAULT SWAPS ON CREDIT INDICES - BUY PROTECTION⁽¹⁾

Index/Tranches	Fixed (Pay) Rate			Payment Frequency		Maturity Date		Notional Amount(4)			Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)		Market Value(5)			Variation Margin
																			Asset		Liability
CDX.HY-31 5-Year Index		(5.000	)%		Quarterly		12/20/2023		$	200	$	(15	)	$	11	$	(4	)	$	0	$	0
iTraxx Europe Main 26 5-Year Index		(1.000	)		Quarterly		12/20/2021		EUR	1,800		(55	)		22		(33	)		0		(3	)
iTraxx Europe Main 28 5-Year Index		(1.000	)		Quarterly		12/20/2022			4,000		(118	)		57		(61	)		0		(8	)
											$	(188	)	$	90	$	(98	)	$	0	$	(11	)

CREDIT DEFAULT SWAPS ON CREDIT INDICES - SELL PROTECTION⁽²⁾

Index/Tranches	Fixed Receive Rate	Payment Frequency		Maturity Date		Notional Amount(4)			Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Market Value(5)			Variation Margin
																		Asset		Liability
CDX.EM-30 5-Year Index	1.000%		Quarterly		12/20/2023		$	100	$	(5	)	$	0		$	(5	)	$	0	$	0
iTraxx Europe Main 30 5-Year Index	1.000		Quarterly		12/20/2023		EUR	700		13			(8	)		5			2		0
									$	8		$	(8	)	$	0		$	2	$	0

INTEREST RATE SWAPS - BASIS SWAPS

Pay Floating Rate Index	Receive Floating Rate Index	Payment Frequency	Maturity Date		Notional Amount		Premiums Paid/(Received)		Unrealized Appreciation/ (Depreciation)		Market Value		Variation Margin
													Asset		Liability
3-Month  USD-LIBOR(6)	1-Month USD-LIBOR  + 0.117%	Quarterly		03/02/2020	$	2,700	$	0	$	1	$	1	$	0	$	0
3-Month  USD-LIBOR(6)	1-Month USD-LIBOR  + 0.084%	Quarterly		04/26/2022		3,100		0		0		0		0		(1	)
3-Month  USD-LIBOR	1-Month USD-LIBOR  + 0.084%	Quarterly		06/12/2022		300		0		0		0		0		0
3-Month  USD-LIBOR	1-Month USD-LIBOR  + 0.070%	Quarterly		06/12/2022		300		0		0		0		0		0
3-Month  USD-LIBOR	1-Month USD-LIBOR  + 0.085%	Quarterly		06/19/2022		1,300		0		1		1		0		0
3-Month  USD-LIBOR(6)	1-Month USD-LIBOR  + 0.073%	Quarterly		04/27/2023		1,300		0		0		0		0		0
							$	0	$	2	$	2	$	0	$	(1	)

INTEREST RATE SWAPS

Pay/Receive Floating Rate	Floating Rate Index	Fixed Rate	Payment Frequency	Maturity Date		Notional Amount		Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Market Value			Variation Margin
																	Asset		Liability
Receive	1-Day USD-Federal  Funds Rate Compounded-OIS	2.673%	Annual		04/30/2025		100	$	0		$	(3	)	$	(3	)	$	0	$	0
Receive	1-Day USD-Federal  Funds Rate Compounded-OIS	2.683	Annual		04/30/2025		300		0			(8	)		(8	)		0		(1	)
Receive	1-Day USD-Federal  Funds Rate Compounded-OIS	2.684	Annual		04/30/2025		100		0			(3	)		(3	)		0		0
Receive	1-Day USD-Federal  Funds Rate Compounded-OIS	2.710	Annual		04/30/2025		100		0			(3	)		(3	)		0		0
Receive	1-Day USD-Federal  Funds Rate Compounded-OIS	2.714	Annual		04/30/2025		200		0			(6	)		(6	)		0		(1	)
Pay	1-Year  BRL-CDI	8.880	Maturity		01/04/2021	BRL	100		0			1			1			0		0
Pay	3-Month CAD-Bank  Bill	2.300	Semi-Annual		07/16/2020	CAD	2,800		(4	)		8			4			1		0
Receive	3-Month CAD-Bank  Bill	2.200	Semi-Annual		06/16/2026		400		1			3			4			0		0
Receive	3-Month CAD-Bank  Bill	3.000	Semi-Annual		03/19/2027		100		(5	)		2			(3	)		0		0
Receive	3-Month CAD-Bank  Bill	1.850	Semi-Annual		09/15/2027		100		3			0			3			0		0
Pay	3-Month CAD-Bank  Bill	1.750	Semi-Annual		12/16/2046		300		(41	)		(2	)		(43	)		0		(1	)
Pay	3-Month CAD-Bank  Bill	2.750	Semi-Annual		12/18/2048		200		(1	)		3			2			0		(1	)
Pay	3-Month  CHF-LIBOR	0.050	Annual		03/16/2026	CHF	200		(1	)		2			1			0		0
Pay (6)	3-Month  NZD-BBR	2.500	Semi-Annual		02/14/2020	NZD	460		0			2			2			0		0
Receive	3-Month  USD-LIBOR	2.000	Semi-Annual		12/20/2019	$	900		(2	)		9			7			0		0
Pay (6)	3-Month  USD-LIBOR	3.200	Semi-Annual		04/01/2020		25,700		2			60			62			1		0
Receive	3-Month  USD-LIBOR	1.750	Semi-Annual		06/20/2020		6,500		129			(35	)		94			0		0

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 19

Schedule of Investments PIMCO International Bond Portfolio (Unhedged) (Cont.)

Pay/Receive Floating Rate	Floating Rate Index	Fixed Rate	Payment Frequency	Maturity Date		Notional Amount		Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Market Value			Variation Margin
																	Asset		Liability
Receive	3-Month  USD-LIBOR	2.750%	Semi-Annual		12/19/2020	$	500	$	3		$	(4	)	$	(1	)	$	0	$	0
Receive(6)	3-Month  USD-LIBOR	3.200	Semi-Annual		04/01/2021		25,700		0			(87	)		(87	)		0		(4	)
Pay	3-Month  USD-LIBOR	2.750	Semi-Annual		12/19/2023		200		(3	)		5			2			0		0
Receive	3-Month  USD-LIBOR	1.750	Semi-Annual		12/21/2023		1,650		38			26			64			0		(3	)
Receive	3-Month  USD-LIBOR	2.250	Semi-Annual		06/20/2028		1,700		106			(41	)		65			0		(7	)
Receive(6)	3-Month  USD-LIBOR	3.000	Semi-Annual		06/19/2029		700		(9	)		(8	)		(17	)		0		(3	)
Receive	3-Month  USD-LIBOR	2.750	Semi-Annual		12/20/2047		350		(11	)		19			8			0		(2	)
Receive	3-Month  USD-LIBOR	2.500	Semi-Annual		06/20/2048		550		62			(21	)		41			0		(3	)
Receive	3-Month  USD-LIBOR	3.000	Semi-Annual		12/19/2048		300		8			(17	)		(9	)		0		(2	)
Receive(6)	3-Month  USD-LIBOR	2.953	Semi-Annual		11/12/2049		100		(5	)		3			(2	)		0		(1	)
Receive(6)	3-Month  USD-LIBOR	2.955	Semi-Annual		11/12/2049		300		(16	)		10			(6	)		0		(2	)
Pay	3-Month  ZAR-JIBAR	7.250	Quarterly		06/20/2023	ZAR	300		0			0			0			0		0
Pay(6)	6-Month  EUR-EURIBOR	0.000	Annual		03/20/2021	EUR	2,200		1			6			7			0		0
Pay(6)	6-Month  EUR-EURIBOR	0.000	Annual		06/19/2021		1,200		1			2			3			0		0
Pay(6)	6-Month  EUR-EURIBOR	0.500	Annual		03/20/2024		3,800		10			46			56			3		0
Pay(6)	6-Month  EUR-EURIBOR	0.500	Annual		06/19/2024		500		3			3			6			0		0
Pay(6)	6-Month  EUR-EURIBOR	1.000	Annual		03/20/2029		1,800		(10	)		40			30			3		0
Pay(6)	6-Month  EUR-EURIBOR	1.000	Annual		06/19/2029		1,700		4			15			19			3		0
Receive(6)	6-Month  EUR-EURIBOR	1.500	Annual		03/20/2049		250		6			(14	)		(8	)		0		0
Pay(6)	6-Month  GBP-LIBOR	1.250	Annual		09/18/2020	GBP	3,100		0			5			5			0		0
Pay(6)	6-Month  GBP-LIBOR	1.500	Annual		12/18/2020		2,600		7			4			11			0		0
Pay(6)	6-Month  GBP-LIBOR	1.000	Semi-Annual		03/20/2021		900		(6	)		2			(4	)		0		0
Receive(6)	6-Month  GBP-LIBOR	1.500	Annual		09/16/2021		3,100		(2	)		(8	)		(10	)		0		(1	)
Receive(6)	6-Month  GBP-LIBOR	1.500	Annual		12/16/2021		2,600		(1	)		(7	)		(8	)		0		(2	)
Receive(6)	6-Month  GBP-LIBOR	1.500	Semi-Annual		03/20/2024		100		0			(1	)		(1	)		0		0
Receive(6)	6-Month  GBP-LIBOR	1.500	Semi-Annual		03/20/2029		50		1			(1	)		0			0		(1	)
Pay(6)	6-Month  GBP-LIBOR	1.750	Semi-Annual		03/20/2049		200		0			13			13			2		0
Pay(6)	6-Month  JPY-LIBOR	0.100	Semi-Annual		03/20/2024	JPY	200,000		(6	)		13			7			0		0
Receive(6)	6-Month  JPY-LIBOR	0.450	Semi-Annual		03/20/2029		270,000		(18	)		(46	)		(64	)		0		(1	)
Pay	6-Month  JPY-LIBOR	1.500	Semi-Annual		06/19/2033		250,000		319			56			375			3		0
Pay	6-Month  JPY-LIBOR	1.250	Semi-Annual		06/17/2035		40,000		37			12			49			1		0
Receive	6-Month  JPY-LIBOR	1.500	Semi-Annual		12/21/2045		80,000		(105	)		(47	)		(152	)		0		(1	)
Receive	6-Month  JPY-LIBOR	0.500	Semi-Annual		09/20/2046		10,000		11			(6	)		5			0		0
Receive	6-Month  JPY-LIBOR	1.000	Semi-Annual		03/21/2048		10,000		(1	)		(6	)		(7	)		0		0
Pay	28-Day  MXN-TIIE	5.825	Lunar		01/12/2023	MXN	3,700		(17	)		(1	)		(18	)		1		0
								$	488		$	(5	)	$	483		$	18	$	(37	)
Total Swap Agreements								$	302		$	78		$	380		$	20	$	(49	)

FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED SUMMARY

The following is a summary of the market value and variation margin of Exchange-Traded or Centrally Cleared Financial Derivative Instruments as of December 31, 2018:

	Financial Derivative Assets								Financial Derivative Liabilities
	Market Value		Variation Margin Asset(7)				Total		Market Value		Variation Margin Liability			Total
	Purchased Options		Futures		Swap Agreements				Written Options		Futures		Swap Agreements
Total Exchange-Traded or Centrally Cleared	$	0	$	20	$	21	$	41	$	0		$    (19)	$    (49)		$    (68)

Cash of $653 has been pledged as collateral for exchange-traded and centrally cleared financial derivative instruments as of December 31, 2018. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information regarding master netting arrangements.

⁽¹⁾ If the Portfolio is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽²⁾ If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽³⁾ Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate or sovereign issues as of period end serve as indicators of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

20 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

⁽⁴⁾ The maximum potential amount the Portfolio could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

⁽⁵⁾ The prices and resulting values for credit default swap agreements serve as indicators of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced indices’ credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

⁽⁶⁾ This instrument has a forward starting effective date. See Note 2, Securities Transactions and Investment Income, in the Notes to Financial Statements for further information.

⁽⁷⁾ Unsettled variation margin asset of $1 for closed swap agreements is outstanding at period end.

(j)  FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER

FORWARD FOREIGN CURRENCY CONTRACTS:

Counterparty	Settlement Month		Currency to be Delivered		Currency to be Received			Unrealized Appreciation/ (Depreciation)
								Asset		Liability
AZD		01/2019	$	228		EUR	200	$	1	$	0
BOA		01/2019	DKK	5,353	$		851		29		0
		01/2019	EUR	1,590			1,815		0		(8	)
		01/2019	GBP	94			120		0		0
		01/2019	JPY	5,800			52		0		(1	)
		01/2019	SEK	11,800			1,304		0		(28	)
		01/2019	$	34		ARS	1,374		2		0
		01/2019		2,761		CAD	3,676		0		(67	)
		01/2019		800		DKK	5,256		6		0
		01/2019		2,881		EUR	2,524		12		0
		04/2019	DKK	5,256	$		807		0		(6	)
BPS		01/2019	BRL	73			19		0		0
		01/2019	CHF	39			40		0		0
		01/2019	KRW	1,119			1		0		0
		01/2019	$	19		BRL	73		0		0
		01/2019		58		CAD	79		0		0
		01/2019		119		GBP	95		2		0
		01/2019		65		KRW	72,753		1		0
		01/2019		59		NZD	87		0		(1	)
		01/2019		567		PLN	2,136		4		0
		03/2019	KRW	72,753	$		65		0		(1	)
		04/2019	CNH	172			25		0		0
		04/2019	$	109		CNH	751		0		0
		07/2019		53			364		0		0
BRC		01/2019	MXN	367	$		18		0		(1	)
		01/2019	$	90		NOK	771		0		(1	)
		02/2019	RON	486	$		119		0		(1	)
CBK		01/2019	BRL	596			153		0		(1	)
		01/2019	EUR	2,579			2,944		0		(13	)
		01/2019	GBP	12			15		0		0
		01/2019	JPY	15,300			138		0		(2	)
		01/2019	NZD	110			76		2		0
		01/2019	SEK	905			101		0		(2	)
		01/2019	$	3,166		AUD	4,325		0		(120	)
		01/2019		154		BRL	596		0		0
		01/2019		177		EUR	155		1		0
		01/2019		86		NOK	735		0		(1	)
		01/2019		60		SEK	535		1		0
		02/2019	CNH	661	$		95		0		(1	)
		02/2019	EUR	123			156		14		0
		02/2019	JPY	20,000			178		0		(5	)
		02/2019	$	187		CLP	126,418		0		(5	)
		02/2019		151		COP	475,455		0		(4	)
		03/2019	KRW	430,707	$		384		0		(4	)
		05/2019	EUR	83			97		1		0
		06/2019	GBP	42			56		2		0
		06/2019	$	1,645		EUR	1,411		0		(5	)
		07/2019	CNH	394	$		59		1		0
		07/2019	$	53		CNH	364		0		0
DUB		01/2019	BRL	895	$		232		1		0
		01/2019		232		BRL	895		0		(1	)
		01/2019		126		EUR	100		0		(11	)
		02/2019	BRL	895	$		231		1		0
		03/2019		203			53		1		0
		03/2019	$	45		MXN	965		4		0

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 21

Schedule of Investments PIMCO International Bond Portfolio (Unhedged) (Cont.)

Counterparty	Settlement Month		Currency to be Delivered		Currency to be Received			Unrealized Appreciation/ (Depreciation)
								Asset		Liability
		04/2019	SEK	165		EUR	16	$	0	$	0
FBF		04/2019	EUR	31		SEK	318		0		0
GLM		01/2019	BRL	4	$		1		0		0
		01/2019	CAD	80			60		1		0
		01/2019	CHF	127			128		0		(1	)
		01/2019	EUR	456			520		0		(3	)
		01/2019	GBP	24			30		0		0
		01/2019	MXN	451			23		0		0
		01/2019	NOK	370			43		0		0
		01/2019	NZD	44			30		1		0
		01/2019	SEK	339			38		0		(1	)
		01/2019	$	312		AUD	435		0		(6	)
		01/2019		1		BRL	4		0		0
		01/2019		119		CAD	159		0		(2	)
		01/2019		27		DKK	175		0		(1	)
		01/2019		1,633		GBP	1,277		0		(5	)
		01/2019		72		MXN	1,478		3		0
		01/2019		59		NOK	510		0		0
		01/2019		102		SEK	920		2		0
		02/2019	CLP	126,636	$		182		0		(1	)
		02/2019	$	95		CNH	660		1		0
		03/2019	JPY	180,000	$		1,603		0		(48	)
		03/2019	$	791		IDR	11,625,262		8		0
		07/2019		7		ARS	321		0		0
HUS		01/2019	AUD	18	$		13		1		0
		01/2019	CAD	155			116		3		0
		01/2019	CHF	67			67		0		(1	)
		01/2019	DKK	115			18		0		0
		01/2019	EUR	104			125		6		0
		01/2019	GBP	9			11		0		0
		01/2019	KRW	22,400			20		0		0
		01/2019	PLN	396			108		2		0
		01/2019	$	242		AUD	335		0		(6	)
		01/2019		117		CAD	155		0		(4	)
		01/2019		45		EUR	40		0		0
		01/2019		28		GBP	22		0		0
		01/2019		2,938		NOK	25,227		0		(19	)
		02/2019		56		AUD	70		0		(6	)
		03/2019	BRL	68	$		20		3		0
		03/2019	$	50		KRW	55,970		0		0
		03/2019		20		MXN	394		0		0
		04/2019	ARS	680	$		16		0		0
		05/2019	$	100		EUR	83		0		(4	)
		07/2019	CNH	2,509	$		368		3		0
		07/2019	$	382		CNH	2,622		0		0
IND		01/2019	MXN	1,137	$		56		0		(2	)
		01/2019	$	2,128		JPY	241,200		74		0
		01/2019		2,466		NZD	3,625		0		(33	)
		04/2019	CNH	189	$		27		0		0
JPM		01/2019	AUD	820			600		23		0
		01/2019	CAD	79			58		0		0
		01/2019	CHF	117			118		0		(1	)
		01/2019	EUR	103			117		0		(1	)
		01/2019	GBP	84			106		0		(1	)
		01/2019	KRW	49,234			44		0		0
		01/2019	NOK	1,011			115		0		(2	)
		01/2019	RUB	876			13		1		0
		01/2019	$	87		AUD	124		0		0
		01/2019		60		EUR	53		1		0
		01/2019		1,131		MXN	21,622		0		(35	)
		01/2019		17		NOK	145		0		0
		01/2019		30		NZD	45		0		0
		01/2019		178		SEK	1,611		3		0
		03/2019	IDR	623,500	$		43		0		0
		03/2019	$	33		KRW	36,952		0		0
		07/2019	CNH	128	$		19		0		0
MSB		04/2019	$	172		CNH	1,183		0		0
		07/2019	CNH	319	$		47		0		0
MYI		01/2019	AUD	42			30		1		0

22 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

Counterparty	Settlement Month		Currency to be Delivered		Currency to be Received			Unrealized Appreciation/ (Depreciation)
								Asset		Liability
		01/2019	EUR	1,002	$		1,146	$	0	$	(3	)
		01/2019	JPY	13,471			120		0		(3	)
		01/2019	NZD	214			146		3		0
		01/2019	SEK	1,081			119		0		(3	)
		06/2021	$	3		EUR	2		0		0
NGF		04/2019	CNH	232	$		33		0		0
RBC		01/2019	$	44		NOK	385		1		0
RYL		01/2019	NZD	40	$		28		1		0
		01/2019	$	18		CHF	18		0		0
		01/2019		171		EUR	150		1		0
		04/2019	SEK	229			22		0		(1	)
SCX		01/2019	$	30		JPY	3,403		1		0
		04/2019	CNH	597	$		86		0		(1	)
		04/2019	$	116		CNH	799		0		0
SOG		01/2019		2,988		CHF	2,971		36		0
		01/2019		1,092		RUB	72,312		0		(57	)
		02/2019	RON	286		EUR	61		0		0
SSB		01/2019	$	39		GBP	30		0		0
		03/2019	SGD	24	$		18		0		0
		03/2019	TWD	2,403			79		0		(1	)
UAG		01/2019	EUR	2,568			2,928		0		(15	)
		01/2019	NOK	4			0		0		0
Total Forward Foreign Currency Contracts								$	266	$	(557	)

PURCHASED OPTIONS:

FOREIGN CURRENCY OPTIONS

Counterparty	Description	Strike Price			Expiration Date		Notional Amount			Cost		Market Value
BPS	Put - OTC AUD versus USD		$	0.640		01/02/2019		AUD	3,000	$	0	$	0
	Put - OTC EUR versus USD			1.040		01/02/2019		EUR	1,000		0		0
	Put - OTC GBP versus USD			1.070		01/02/2019		GBP	1,000		0		0
GLM	Call - OTC USD versus CHF		CHF	1.045		01/02/2019		$	3,000		1		0
	Call - OTC USD versus CNH		CNH	7.110		02/11/2019			200		1		0
HUS	Put - OTC AUD versus USD		$	0.620		01/31/2019		AUD	1,200		0		0
	Put - OTC AUD versus USD			0.609		02/25/2019			1,000		0		0
	Call - OTC USD versus CAD		CAD	1.415		01/04/2019		$	2,800		0		0
MSB	Call - OTC EUR versus USD		$	1.291		06/24/2021		EUR	31		2		1
	Put - OTC EUR versus USD			1.291		06/24/2021			31		2		3
Total Purchased Options										$	6	$	4

WRITTEN OPTIONS:

CREDIT DEFAULT SWAPTIONS ON CREDIT INDICES

Counterparty	Description	Buy/Sell Protection	Exercise Rate	Expiration Date		Notional Amount		Premiums (Received)			Market Value
BOA	Put - OTC CDX.IG-31 5-Year Index	Sell	0.900%		01/16/2019	$	100		$    0		$	0
	Put - OTC CDX.IG-31 5-Year Index	Sell	0.950		02/20/2019		100		0			(1	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.000		02/20/2019		100		0			0
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.200		03/20/2019		100		0			0
BPS	Put - OTC CDX.IG-31 5-Year Index	Sell	1.000		02/20/2019		100		0			0
CBK	Put - OTC CDX.IG-31 5-Year Index	Sell	0.950		01/16/2019		100		0			0
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.000		01/16/2019		400		(1	)		0
	Put - OTC CDX.IG-31 5-Year Index	Sell	0.950		02/20/2019		200		(1	)		(1	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.050		03/20/2019		100		0			(1	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.100		03/20/2019		100		0			0
GST	Put - OTC CDX.IG-31 5-Year Index	Sell	0.900		01/16/2019		100		0			0
	Put - OTC CDX.IG-31 5-Year Index	Sell	2.400		09/18/2019		100		0			0
	Put - OTC iTraxx Europe 30 5-Year Index	Sell	2.400		09/18/2019	EUR	100		0			0
									$    (2	)	$	(3	)

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 23

Schedule of Investments PIMCO International Bond Portfolio (Unhedged) (Cont.)

FOREIGN CURRENCY OPTIONS

Counterparty	Description	Strike Price			Expiration Date		Notional Amount			Premiums (Received)			Market Value
CBK	Put - OTC GBP versus USD		$	1.315		06/14/2019		GBP	119	$	(4	)	$	(7	)
	Call - OTC GBP versus USD			1.440		06/14/2019			124		(2	)		(1	)
GLM	Put - OTC USD versus CNH		CNH	6.840		02/11/2019		$	200		(1	)		(1	)
										$	(7	)	$	(9	)
Total Written Options										$	(9	)	$	(12	)

SWAP AGREEMENTS:

CREDIT DEFAULT SWAPS ON CORPORATE AND SOVEREIGN ISSUES - BUY PROTECTION⁽¹⁾

Counterparty	Reference Entity	Fixed (Pay) Rate			Payment Frequency		Maturity Date		Implied Credit Spread at December 31, 2018(3)			Notional Amount(4)		Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Swap Agreements, at Value(5)
																				Asset		Liability
BPS	Commerzbank AG		(1.000	)%		Quarterly		06/20/2022		2.274	%		EUR    100	$	5		$	0		$	5	$	0
	Japan Government International Bond		(1.000	)		Quarterly		06/20/2022		0.154			$    100		(4	)		1			0		(3	)
	South Korea Government International Bond		(1.000	)		Quarterly		06/20/2023		0.346			200		(5	)		0			0		(5	)
BRC	China Government International Bond		(1.000	)		Quarterly		06/20/2023		0.614			100		(2	)		0			0		(2	)
	Japan Government International Bond		(1.000	)		Quarterly		06/20/2022		0.154			100		(3	)		0			0		(3	)
	South Korea Government International Bond		(1.000	)		Quarterly		06/20/2023		0.346			50		(1	)		0			0		(1	)
CBK	Japan Government International Bond		(1.000	)		Quarterly		06/20/2022		0.154			100		(4	)		1			0		(3	)
GST	China Government International Bond		(1.000	)		Quarterly		06/20/2023		0.614			100		(2	)		0			0		(2	)
	Japan Government International Bond		(1.000	)		Quarterly		06/20/2022		0.154			100		(3	)		0			0		(3	)
HUS	South Korea Government International Bond		(1.000	)		Quarterly		06/20/2023		0.346			100		(2	)		(1	)		0		(3	)
														$	(21	)	$	1		$	5	$	(25	)

CREDIT DEFAULT SWAPS ON SOVEREIGN ISSUES - SELL PROTECTION⁽²⁾

Counterparty	Reference Entity	Fixed Receive Rate		Payment Frequency	Maturity Date		Implied Credit Spread at December 31, 2018(3)		Notional Amount(4)		Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)		Swap Agreements, at Value(5)
																Asset		Liability
JPM	South Africa Government International Bond		1.000%	Quarterly		12/20/2023		2.227%	$	100	$	(5	)	$	0	$	0	$	(5	)

CROSS-CURRENCY SWAPS

Counterparty	Receive	Pay	Payment Frequency		Maturity Date(6)		Notional Amount of Currency Received		Notional Amount of Currency Delivered		Premiums Paid/(Received)		Unrealized Appreciation/ (Depreciation)			Swap Agreements, at Value
																Asset		Liability
GLM	Floating rate equal to 3-Month EUR-LIBOR less 0.283% based on the notional amount of currency received	Floating rate equal to 3-Month USD-LIBOR based on the notional amount of currency delivered		Maturity		06/19/2019		EUR    1,100	$	1,247	$	18	$	(7	)	$	11	$	0
	Floating rate equal to 3-Month EUR-LIBOR less 0.299% based on the notional amount of currency received	Floating rate equal to 3-Month USD-LIBOR based on the notional amount of currency delivered		Maturity		06/19/2019		1,200		1,360		26		(15	)		11		0
MYC	Floating rate equal to 3-Month EUR-LIBOR less 0.27% based on the notional amount of currency received	Floating rate equal to 3-Month USD-LIBOR based on the notional amount of currency delivered		Maturity		06/19/2019		1,500		1,701		27		(13	)		14		0
RYL	Floating rate equal to 3-Month GBP-LIBOR less 0.055% based on the notional amount of currency received	Floating rate equal to 3-Month USD-LIBOR based on the notional amount of currency delivered		Maturity		10/13/2026		GBP       100		122		3		1			4		0

24 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

Counterparty	Receive	Pay	Payment Frequency		Maturity Date(5)		Notional Amount of Currency Received		Notional Amount of Currency Delivered		Premiums Paid/(Received)		Unrealized Appreciation/ (Depreciation)			Swap Agreements, at Value
																Asset		Liability
TOR	Floating rate equal to 3-Month EUR-LIBOR less 0.265% based on the notional amount of currency received	Floating rate equal to 3-Month USD-LIBOR based on the notional amount of currency delivered		Maturity		06/19/2019		EUR    1,500	$	1,701	$	24	$	(10	)	$	14	$	0
											$	98	$	(44	)	$	54	$	0

INTEREST RATE SWAPS

Counterparty	Pay/Receive Floating Rate	Floating Rate Index	Fixed Rate			Payment Frequency		Maturity Date	Notional Amount		Premiums Paid/(Received)		Unrealized Appreciation/ (Depreciation)			Swap Agreements, at Value
																Asset		Liability
BPS	Receive	3-Month  KRW-KORIBOR		2.020	%		Quarterly	07/10/2027		KRW    259,600	$	0	$	(4	)	$	0	$	(4	)
CBK	Receive	3-Month  KRW-KORIBOR		1.995			Quarterly	07/10/2027		135,200		0		(2	)		0		(2	)
											$	0	$	(6	)	$	0	$	(6	)
Total Swap Agreements											$	72	$	(49	)	$	59	$	(36	)

FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER SUMMARY

The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral (received) as of December 31, 2018:

	Financial Derivative Assets								Financial Derivative Liabilities
Counterparty	Forward Foreign Currency Contracts		Purchased Options		Swap Agreements		Total Over the Counter		Forward Foreign Currency Contracts			Written Options			Swap Agreements			Total Over the Counter			Net Market Value of OTC Derivatives			Collateral (Received)			Net Exposure(7)
AZD	$	1	$	0	$	0	$	1	$	0		$	0		$	0		$	0		$	1		$	0		$	1
BOA		49		0		0		49		(110	)		(1	)		0			(111	)		(62	)		0			(62	)
BPS		7		0		5		12		(2	)		0			(12	)		(14	)		(2	)		0			(2	)
BRC		0		0		0		0		(3	)		0			(6	)		(9	)		(9	)		0			(9	)
CBK		22		0		0		22		(163	)		(10	)		(5	)		(178	)		(156	)		0			(156	)
DUB		7		0		0		7		(12	)		0			0			(12	)		(5	)		0			(5	)
GLM		16		0		22		38		(68	)		(1	)		0			(69	)		(31	)		0			(31	)
GST		0		0		0		0		0			0			(5	)		(5	)		(5	)		0			(5	)
HUS		18		0		0		18		(40	)		0			(3	)		(43	)		(25	)		0			(25	)
IND		74		0		0		74		(35	)		0			0			(35	)		39			0			39
JPM		28		0		0		28		(40	)		0			(5	)		(45	)		(17	)		0			(17	)
MSB		0		4		0		4		0			0			0			0			4			(10	)		(6	)
MYC		0		0		14		14		0			0			0			0			14			0			14
MYI		4		0		0		4		(9	)		0			0			(9	)		(5	)		0			(5	)
RBC		1		0		0		1		0			0			0			0			1			0			1
RYL		2		0		4		6		(1	)		0			0			(1	)		5			0			5
SCX		1		0		0		1		(1	)		0			0			(1	)		0			0			0
SOG		36		0		0		36		(57	)		0			0			(57	)		(21	)		0			(21	)
SSB		0		0		0		0		(1	)		0			0			(1	)		(1	)		0			(1	)
TOR		0		0		14		14		0			0			0			0			14			0			14
UAG		0		0		0		0		(15	)		0			0			(15	)		(15	)		0			(15	)
Total Over the Counter	$	266	$	4	$	59	$	329	$	(557	)	$	(12	)	$	(36	)	$	(605	)

⁽¹⁾ If the Portfolio is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽²⁾ If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽³⁾ Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate or sovereign issues as of period end serve as indicators of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

⁽⁴⁾ The maximum potential amount the Portfolio could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 25

Schedule of Investments PIMCO International Bond Portfolio (Unhedged) (Cont.)

⁽⁵⁾ The prices and resulting values for credit default swap agreements serve as indicators of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced indices’ credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

⁽⁶⁾ At the maturity date, the notional amount of the currency received will be exchanged back for the notional amount of the currency delivered.

⁽⁷⁾ Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information regarding master netting arrangements.

FAIR VALUE OF FINANCIAL DERIVATIVE INSTRUMENTS

The following is a summary of the fair valuation of the Portfolio’s derivative instruments categorized by risk exposure. See Note 7, Principal Risks, in the Notes to Financial Statements on risks of the Portfolio.

Fair Values of Financial Derivative Instruments on the Statement of Assets and Liabilities as of December 31, 2018:

	Derivatives not accounted for as hedging instruments
	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Exchange Contracts		Interest Rate Contracts		Total
Financial Derivative Instruments - Assets
Exchange-traded or centrally cleared
Futures	$	0	$	0	$	0	$	0	$	20	$	20
Swap Agreements		0		2		0		0		19		21
	$	0	$	2	$	0	$	0	$	39	$	41
Over the counter
Forward Foreign Currency Contracts	$	0	$	0	$	0	$	266	$	0	$	266
Purchased Options		0		0		0		4		0		4
Swap Agreements		0		5		0		54		0		59
	$	0	$	5	$	0	$	324	$	0	$	329
	$	0	$	7	$	0	$	324	$	39	$	370
Financial Derivative Instruments - Liabilities
Exchange-traded or centrally cleared
Futures	$	0	$	0	$	0	$	0	$	19	$	19
Swap Agreements		0		11		0		0		38		49
	$	0	$	11	$	0	$	0	$	57	$	68
Over the counter
Forward Foreign Currency Contracts	$	0	$	0	$	0	$	557	$	0	$	557
Written Options		0		3		0		9		0		12
Swap Agreements		0		30		0		0		6		36
	$	0	$	33	$	0	$	566	$	6	$	605
	$	0	$	44	$	0	$	566	$	63	$	673

The effect of Financial Derivative Instruments on the Statement of Operations for the period ended December 31, 2018:

	Derivatives not accounted for as hedging instruments
	Commodity Contracts		Credit Contracts			Equity Contracts		Foreign Exchange Contracts			Interest Rate Contracts			Total
Net Realized Gain (Loss) on Financial Derivative Instruments
Exchange-traded or centrally cleared
Purchased Options	$	0	$	0		$	0	$	0		$	1		$	1
Written Options		0		0			0		0			6			6
Futures		0		0			0		0			(147	)		(147	)
Swap Agreements		0		(78	)		0		0			598			520
	$	0	$	(78	)	$	0	$	0		$	458		$	380
Over the counter
Forward Foreign Currency Contracts	$	0	$	0		$	0	$	(1,300	)	$	0		$	(1,300	)
Purchased Options		0		0			0		(2	)		(10	)		(12	)
Written Options		0		5			0		69			2			76
Swap Agreements		0		(2	)		0		300			(1	)		297
	$	0	$	3		$	0	$	(933	)	$	(9	)	$	(939	)
	$	0	$	(75	)	$	0	$	(933	)	$	449		$	(559	)

26 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

	Derivatives not accounted for as hedging instruments
	Commodity Contracts		Credit Contracts			Equity Contracts		Foreign Exchange Contracts			Interest Rate Contracts			Total
Net Change in Unrealized Appreciation (Depreciation) on Financial Derivative Instruments
Exchange-traded or centrally cleared
Written Options	$	0	$	0		$	0	$	0		$	(1	)	$	(1	)
Futures		0		0			0		0			(73	)		(73	)
Swap Agreements		0		93			0		0			29			122
	$	0	$	93		$	0	$	0		$	(45	)	$	48
Over the counter
Forward Foreign Currency Contracts	$	0	$	0		$	0	$	(358	)	$	0		$	(358	)
Purchased Options		0		0			0		0			10			10
Written Options		0		(1	)		0		(13	)		(1	)		(15	)
Swap Agreements		0		0			0		(245	)		(12	)		(257	)
	$	0	$	(1	)	$	0	$	(616	)	$	(3	)	$	(620	)
	$	0	$	92		$	0	$	(616	)	$	(48	)	$	(572	)

FAIR VALUE MEASUREMENTS

The following is a summary of the fair valuations according to the inputs used as of December 31, 2018 in valuing the Portfolio’s assets and liabilities:

Category and Subcategory	Level 1		Level 2		Level 3		Fair Value at 12/31/2018
Investments in Securities, at Value
Argentina
Sovereign Issues	$	0	$	32	$	0	$	32
Australia
Corporate Bonds & Notes		0		201		0		201
Sovereign Issues		0		103		0		103
Brazil
Corporate Bonds & Notes		0		163		0		163
Canada
Corporate Bonds & Notes		0		100		0		100
Non-Agency Mortgage-Backed Securities		0		42		0		42
Sovereign Issues		0		1,026		0		1,026
Cayman Islands
Asset-Backed Securities		0		847		0		847
Corporate Bonds & Notes		0		194		0		194
Denmark
Corporate Bonds & Notes		0		1,116		0		1,116
France
Corporate Bonds & Notes		0		558		0		558
Sovereign Issues		0		813		0		813
Germany
Corporate Bonds & Notes		0		481		0		481
Ireland
Sovereign Issues		0		150		0		150
Italy
Sovereign Issues		0		652		0		652
Japan
Corporate Bonds & Notes		0		403		0		403
Sovereign Issues		0		1,684		0		1,684
Jersey, Channel Islands
Corporate Bonds & Notes		0		103		0		103
Kuwait
Sovereign Issues		0		199		0		199
Lithuania
Sovereign Issues		0		106		0		106
Netherlands
Corporate Bonds & Notes		0		617		0		617
Norway
Corporate Bonds & Notes		0		202		0		202
Poland
Sovereign Issues		0		108		0		108
Qatar
Sovereign Issues		0		412		0		412
Saudi Arabia
Sovereign Issues		0		392		0		392
Slovenia
Sovereign Issues		0		501		0		501

Category and Subcategory	Level 1		Level 2			Level 3		Fair Value at 12/31/2018
Spain
Corporate Bonds & Notes	$	0	$	113		$	0	$	113
Sovereign Issues		0		645			0		645
Sweden
Corporate Bonds & Notes		0		1,644			0		1,644
Switzerland
Corporate Bonds & Notes		0		200			0		200
Sovereign Issues		0		76			0		76
United Arab Emirates
Sovereign Issues		0		194			0		194
United Kingdom
Corporate Bonds & Notes		0		1,880			0		1,880
Non-Agency Mortgage-Backed Securities		0		809			0		809
Sovereign Issues		0		837			0		837
United States
Asset-Backed Securities		0		1,327			0		1,327
Corporate Bonds & Notes		0		5,772			0		5,772
Loan Participations and Assignments		0		94			0		94
Non-Agency Mortgage-Backed Securities		0		1,581			0		1,581
U.S. Government Agencies		0		5,260			0		5,260
U.S. Treasury Obligations		0		2,029			0		2,029
Short-Term Instruments
Certificates of Deposit		0		100			0		100
Repurchase Agreements		0		109			0		109
Argentina Treasury Bills		0		17			0		17
France Treasury Bills		0		458			0		458
Japan Treasury Bills		0		1,825			0		1,825
	$	0	$	36,175		$	0	$	36,175
Investments in Affiliates, at Value
Short-Term Instruments
Central Funds Used for Cash Management Purposes		778		0			0		778
Total Investments	$	778	$	36,175		$	0	$	36,953
Short Sales, at Value - Liabilities
Canada
Sovereign Issues	$	0	$	(165	)	$	0	$	(165	)
Financial Derivative Instruments - Assets
Exchange-traded or centrally cleared		20		20			0		40
Over the counter		0		329			0		329
	$	20	$	349		$	0	$	369

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 27

Schedule of Investments PIMCO International Bond Portfolio (Unhedged) (Cont.)

December 31, 2018

Category and Subcategory	Level 1			Level 2			Level 3		Fair Value at 12/31/2018
Financial Derivative Instruments - Liabilities
Exchange-traded or centrally cleared	$	(19	)	$	(49	)	$	0	$	(68	)
Over the counter		0			(605	)		0		(605	)
	$	(19	)	$	(654	)	$	0	$	(673	)
Total Financial Derivative Instruments	$	1		$	(305	)	$	0	$	(304	)
Totals	$	779		$	35,705		$	0	$	36,484

There were no significant transfers into or out of Level 3 during the period ended December 31, 2018.

28 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

Notes to Financial Statements

December 31, 2018

1. ORGANIZATION

PIMCO Variable Insurance Trust (the “Trust”) is a Delaware statutory trust established under a trust instrument dated October 3, 1997. The Trust is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Trust is designed to be used as an investment vehicle by separate accounts of insurance companies that fund variable annuity contracts and variable life insurance policies and by qualified pension and retirement plans. Information presented in these financial statements pertains to the Institutional Class, Administrative Class and Advisor Class shares of the PIMCO International Bond Portfolio (Unhedged), (formerly, PIMCO Foreign Bond Portfolio (Unhedged)) (the “Portfolio”) offered by the Trust. Pacific Investment Management Company LLC (“PIMCO”) serves as the investment adviser (the “Adviser”) for the Portfolio.

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Portfolio is treated as an investment company under the reporting requirements of U.S. GAAP. The functional and reporting currency for the Portfolio is the U.S. dollar. The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

(a) Securities Transactions and Investment Income  Securities transactions are recorded as of the trade date for financial reporting purposes. Securities purchased or sold on a when-issued or delayed-delivery basis may be settled beyond a standard settlement period for the security after the trade date. Realized gains (losses) from securities sold are recorded on the identified cost basis. Dividend income is recorded on the ex-dividend date, except certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Portfolio is informed of the ex-dividend date. Interest income, adjusted for the accretion of discounts and amortization of premiums, is recorded on the accrual basis from settlement date, with the exception of securities with a forward starting effective date, where interest income is recorded on the accrual basis from effective date. For convertible securities, premiums attributable to the conversion feature are not amortized. Estimated tax liabilities on certain foreign securities are recorded on an accrual basis and are reflected as components of interest income or net change in unrealized

appreciation (depreciation) on investments on the Statement of Operations, as appropriate. Tax liabilities realized as a result of such security sales are reflected as a component of net realized gain (loss) on investments on the Statement of Operations. Paydown gains (losses) on mortgage-related and other asset-backed securities, if any, are recorded as components of interest income on the Statement of Operations. Income or short-term capital gain distributions received from registered investment companies, if any, are recorded as dividend income. Long-term capital gain distributions received from registered investment companies, if any, are recorded as realized gains.

Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivable when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is probable.

(b) Foreign Currency Translation  The market values of foreign securities, currency holdings and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the current exchange rates each business day. Purchases and sales of securities and income and expense items denominated in foreign currencies, if any, are translated into U.S. dollars at the exchange rate in effect on the transaction date. The Portfolio does not separately report the effects of changes in foreign exchange rates from changes in market prices on securities held. Such changes are included in net realized gain (loss) and net change in unrealized appreciation (depreciation) from investments on the Statement of Operations. The Portfolio may invest in foreign currency-denominated securities and may engage in foreign currency transactions either on a spot (cash) basis at the rate prevailing in the currency exchange market at the time or through a forward foreign currency contract. Realized foreign exchange gains (losses) arising from sales of spot foreign currencies, currency gains (losses) realized between the trade and settlement dates on securities transactions and the difference between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid are included in net realized gain (loss) on foreign currency transactions on the Statement of Operations. Net unrealized foreign exchange gains (losses) arising from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period are included in net change in unrealized appreciation (depreciation) on foreign currency assets and liabilities on the Statement of Operations.

(c) Multi-Class Operations  Each class offered by the Trust has equal rights as to assets and voting privileges (except that shareholders of a class have exclusive voting rights regarding any matter relating solely to that class of shares). Income and non-class specific expenses are

ANNUAL REPORT DECEMBER 31, 2018 29

Notes to Financial Statements (Cont.)

allocated daily to each class on the basis of the relative net assets. Realized and unrealized capital gains (losses) are allocated daily based on the relative net assets of each class of the Portfolio. Class specific expenses, where applicable, currently include supervisory and administrative and distribution and servicing fees. Under certain circumstances, the per share net asset value (“NAV”) of a class of the Portfolio’s shares may be different from the per share NAV of another class of shares as a result of the different daily expense accruals applicable to each class of shares.

(d) Distributions to Shareholders  Distributions from net investment income, if any, are declared daily and distributed to shareholders monthly. Net realized capital gains earned by the Portfolio, if any, will be distributed no less frequently than once each year.

Income distributions and capital gain distributions are determined in accordance with income tax regulations which may differ from U.S. GAAP. Differences between tax regulations and U.S. GAAP may cause timing differences between income and capital gain recognition. Further, the character of investment income and capital gains may be different for certain transactions under the two methods of accounting. As a result, income distributions and capital gain distributions declared during a fiscal period may differ significantly from the net investment income (loss) and realized gains (losses) reported on the Portfolio’s annual financial statements presented under U.S. GAAP.

If the Portfolio estimates that a portion of its distribution may be comprised of amounts from sources other than net investment income in accordance with its policies and good accounting practices, the Portfolio will notify shareholders of the estimated composition of such distribution through a Section 19 Notice. For these purposes, the Portfolio estimates the source or sources from which a distribution is paid, to the close of the period as of which it is paid, in reference to its internal accounting records and related accounting practices. If, based on such accounting records and practices, it is estimated that a particular distribution does not include capital gains or paid-in surplus or other capital sources, a Section 19 Notice generally would not be issued. It is important to note that differences exist between the Portfolio’s daily internal accounting records and practices, the Portfolio’s financial statements presented in accordance with U.S. GAAP, and recordkeeping practices under income tax regulations. For instance, the Portfolio’s internal accounting records and practices may take into account, among other factors, tax-related characteristics of certain sources of distributions that differ from treatment under U.S. GAAP. Examples of such differences may include, among others, the treatment of paydowns on mortgage-backed securities purchased at a discount and periodic payments under interest rate swap contracts. Accordingly, among other consequences, it is possible that the Portfolio may not issue a Section 19 Notice in situations where the Portfolio’s

financial statements prepared later and in accordance with U.S. GAAP and/or the final tax character of those distributions might later report that the sources of those distributions included capital gains and/or a return of capital. Final determination of a distribution’s tax character will be provided to shareholders when such information is available.

Distributions classified as a tax basis return of capital, if any, are reflected on the Statements of Changes in Net Assets and have been recorded to paid in capital on the Statement of Assets and Liabilities. In addition, other amounts have been reclassified between distributable earnings (accumulated loss) and paid in capital on the Statement of Assets and Liabilities to more appropriately conform U.S. GAAP to tax characterizations of distributions.

(e) New Accounting Pronouncements  In August 2016, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”), ASU 2016-15, which amends Accounting Standards Codification (“ASC”) 230 to clarify guidance on the classification of certain cash receipts and cash payments in the Statement of Cash Flows. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In November 2016, the FASB issued ASU 2016-18 which amends ASC 230 to provide guidance on the classification and presentation of changes in restricted cash and restricted cash equivalents on the Statement of Cash Flows. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In March 2017, the FASB issued ASU 2017-08 which provides guidance related to the amortization period for certain purchased callable debt securities held at a premium. The ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In August 2018, the FASB issued ASU 2018-13 which modifies certain disclosure requirements for fair value measurements in ASC 820. The ASU is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. At this time, management has elected to early adopt the amendments that allow for removal of certain disclosure requirements. Management plans to adopt the amendments that require additional fair value measurement disclosures for annual periods beginning after December 15, 2019, and

30 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

interim periods within those annual periods. Management is currently evaluating the impact of these changes on the financial statements.

In August 2018, the U.S. Securities and Exchange Commission (“SEC”) adopted amendments to certain rules and forms for the purpose of disclosure update and simplification. The compliance date for these amendments is 30 days after date of publication in the Federal Register, which was on October 4, 2018. Management has adopted these amendments and the changes are incorporated throughout all periods presented in the financial statements.

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

(a) Investment Valuation Policies  The price of the Portfolio’s shares is based on the Portfolio’s NAV. The NAV of the Portfolio, or each of its share classes, as applicable, is determined by dividing the total value of portfolio investments and other assets, less any liabilities attributable to the Portfolio or class, by the total number of shares outstanding of the Portfolio or class.

On each day that the New York Stock Exchange (“NYSE”) is open, Portfolio shares are ordinarily valued as of the close of regular trading (“NYSE Close”). Information that becomes known to the Portfolio or its agents after the time as of which NAV has been calculated on a particular day will not generally be used to retroactively adjust the price of a security or the NAV determined earlier that day. The Portfolio reserves the right to change the time as of which its NAV is calculated if the Portfolio closes earlier, or as permitted by the SEC.

For purposes of calculating a NAV, portfolio securities and other assets for which market quotes are readily available are valued at market value. Market value is generally determined on the basis of official closing prices or the last reported sales prices, or if no sales are reported, based on quotes obtained from established market makers or prices (including evaluated prices) supplied by the Portfolio’s approved pricing services, quotation reporting systems and other third-party sources (together, “Pricing Services”). The Portfolio will normally use pricing data for domestic equity securities received shortly after the NYSE Close and does not normally take into account trading, clearances or settlements that take place after the NYSE Close. If market value pricing is used, a foreign (non-U.S.) equity security traded on a foreign exchange or on more than one exchange is typically valued using pricing information from the exchange considered by the Adviser to be the primary exchange. A foreign (non-U.S.) equity security will be valued as of the close of trading on the foreign exchange, or the NYSE Close, if the NYSE Close occurs before the end of trading on the foreign exchange. Domestic and foreign (non-U.S.) fixed income securities, non-exchange traded derivatives, and equity options are normally valued on the basis of quotes obtained from brokers and

dealers or Pricing Services using data reflecting the earlier closing of the principal markets for those securities. Prices obtained from Pricing Services may be based on, among other things, information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics. Certain fixed income securities purchased on a delayed-delivery basis are marked to market daily until settlement at the forward settlement date. Exchange-traded options, except equity options, futures and options on futures are valued at the settlement price determined by the relevant exchange. Swap agreements are valued on the basis of bid quotes obtained from brokers and dealers or market-based prices supplied by Pricing Services. The Portfolio’s investments in open-end management investment companies, other than exchange-traded funds (“ETFs”), are valued at the NAVs of such investments. Open-end management investment companies may include affiliated funds.

If a foreign (non-U.S.) equity security’s value has materially changed after the close of the security’s primary exchange or principal market but before the NYSE Close, the security may be valued at fair value based on procedures established and approved by the Board of Trustees of the Trust (the “Board”). Foreign (non-U.S.) equity securities that do not trade when the NYSE is open are also valued at fair value. With respect to foreign (non-U.S.) equity securities, the Portfolio may determine the fair value of investments based on information provided by Pricing Services and other third-party vendors, which may recommend fair value or adjustments with reference to other securities, indices or assets. In considering whether fair valuation is required and in determining fair values, the Portfolio may, among other things, consider significant events (which may be considered to include changes in the value of U.S. securities or securities indices) that occur after the close of the relevant market and before the NYSE Close. The Portfolio may utilize modeling tools provided by third-party vendors to determine fair values of foreign (non-U.S.) securities. For these purposes, any movement in the applicable reference index or instrument (“zero trigger”) between the earlier close of the applicable foreign market and the NYSE Close may be deemed to be a significant event, prompting the application of the pricing model (effectively resulting in daily fair valuations). Foreign exchanges may permit trading in foreign (non-U.S.) equity securities on days when the Trust is not open for business, which may result in the Portfolio’s portfolio investments being affected when shareholders are unable to buy or sell shares.

Senior secured floating rate loans for which an active secondary market exists to a reliable degree will be valued at the mean of the last available bid/ask prices in the market for such loans, as provided by a Pricing Service. Senior secured floating rate loans for which an active secondary market does not exist to a reliable degree will be valued at fair value, which is intended to approximate market value. In valuing a

ANNUAL REPORT DECEMBER 31, 2018 31

Notes to Financial Statements (Cont.)

senior secured floating rate loan at fair value, the factors considered may include, but are not limited to, the following: (a) the creditworthiness of the borrower and any intermediate participants, (b) the terms of the loan, (c) recent prices in the market for similar loans, if any, and (d) recent prices in the market for instruments of similar quality, rate, period until next interest rate reset and maturity.

Investments valued in currencies other than the U.S. dollar are converted to the U.S. dollar using exchange rates obtained from Pricing Services. As a result, the value of such investments and, in turn, the NAV of the Portfolio’s shares may be affected by changes in the value of currencies in relation to the U.S. dollar. The value of investments traded in markets outside the United States or denominated in currencies other than the U.S. dollar may be affected significantly on a day that the Trust is not open for business. As a result, to the extent that the Portfolio holds foreign (non-U.S.) investments, the value of those investments may change at times when shareholders are unable to buy or sell shares and the value of such investments will be reflected in the Portfolio’s next calculated NAV.

Investments for which market quotes or market based valuations are not readily available are valued at fair value as determined in good faith by the Board or persons acting at their direction. The Board has adopted methods for valuing securities and other assets in circumstances where market quotes are not readily available, and has delegated to the Adviser the responsibility for applying the fair valuation methods. In the event that market quotes or market based valuations are not readily available, and the security or asset cannot be valued pursuant to a Board approved valuation method, the value of the security or asset will be determined in good faith by the Board. Market quotes are considered not readily available in circumstances where there is an absence of current or reliable market-based data (e.g., trade information, bid/ask information, indicative market quotations (“Broker Quotes”), Pricing Services’ prices), including where events occur after the close of the relevant market, but prior to the NYSE Close, that materially affect the values of the Portfolio’s securities or assets. In addition, market quotes are considered not readily available when, due to extraordinary circumstances, the exchanges or markets on which the securities trade do not open for trading for the entire day and no other market prices are available. The Board has delegated, to the Adviser, the responsibility for monitoring significant events that may materially affect the values of the Portfolio’s securities or assets and for determining whether the value of the applicable securities or assets should be reevaluated in light of such significant events.

When the Portfolio uses fair valuation to determine the value of a portfolio security or other asset for purposes of calculating its NAV, such investments will not be priced on the basis of quotes from the primary market in which they are traded, but rather may be priced by

another method that the Board or persons acting at their direction believe reflects fair value. Fair valuation may require subjective determinations about the value of a security. While the Trust’s policy is intended to result in a calculation of the Portfolio’s NAV that fairly reflects security values as of the time of pricing, the Trust cannot ensure that fair values determined by the Board or persons acting at their direction would accurately reflect the price that the Portfolio could obtain for a security if it were to dispose of that security as of the time of pricing (for instance, in a forced or distressed sale). The prices used by the Portfolio may differ from the value that would be realized if the securities were sold. The Portfolio’s use of fair valuation may also help to deter “stale price arbitrage” as discussed under the “Frequent or Excessive Purchases, Exchanges and Redemptions” section in the Portfolio’s prospectus.

(b) Fair Value Hierarchy  U.S. GAAP describes fair value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into levels (Level 1, 2, or 3). The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Levels 1, 2, and 3 of the fair value hierarchy are defined as follows:

^∎  Level 1 — Quoted prices in active markets or exchanges for identical assets and liabilities.

^∎  Level 2 — Significant other observable inputs, which may include, but are not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market corroborated inputs.

^∎  Level 3 — Significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, which may include assumptions made by the Board or persons acting at their direction that are used in determining the fair value of investments.

In accordance with the requirements of U.S. GAAP, the amounts of transfers into and out of Level 3, if material, are disclosed in the Notes to Schedule of Investments for the Portfolio.

For fair valuations using significant unobservable inputs, U.S. GAAP requires a reconciliation of the beginning to ending balances for reported fair values that presents changes attributable to realized gain (loss), unrealized appreciation (depreciation), purchases and sales,

32 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

accrued discounts (premiums), and transfers into and out of the Level 3 category during the period. The end of period value is used for the transfers between Levels of the Portfolio’s assets and liabilities. Additionally, U.S. GAAP requires quantitative information regarding the significant unobservable inputs used in the determination of fair value of assets or liabilities categorized as Level 3 in the fair value hierarchy. In accordance with the requirements of U.S. GAAP, a fair value hierarchy, and if material, a Level 3 reconciliation and details of significant unobservable inputs, have been included in the Notes to Schedule of Investments for the Portfolio.

(c) Valuation Techniques and the Fair Value Hierarchy

Level 1 and Level 2 trading assets and trading liabilities, at fair value  The valuation methods (or “techniques”) and significant inputs used in determining the fair values of portfolio securities or other assets and liabilities categorized as Level 1 and Level 2 of the fair value hierarchy are as follows:

Fixed income securities including corporate, convertible and municipal bonds and notes, U.S. government agencies, U.S. treasury obligations, sovereign issues, bank loans, convertible preferred securities and non-U.S. bonds are normally valued on the basis of quotes obtained from brokers and dealers or Pricing Services that use broker-dealer quotations, reported trades or valuation estimates from their internal pricing models. The Pricing Services’ internal models use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar assets. Securities that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

Fixed income securities purchased on a delayed-delivery basis or as a repurchase commitment in a sale-buyback transaction are marked to market daily until settlement at the forward settlement date and are categorized as Level 2 of the fair value hierarchy.

Mortgage-related and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also normally valued by Pricing Services that use broker-dealer quotations, reported trades or valuation estimates from their internal pricing models. The pricing models for these securities usually consider tranche-level attributes, current market data, estimated cash flows and market-based yield spreads for each tranche, and incorporate deal collateral performance, as available. Mortgage-related and asset-backed securities that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

Common stocks, ETFs, exchange-traded notes and financial derivative instruments, such as futures contracts, rights and warrants, or options

on futures that are traded on a national securities exchange, are stated at the last reported sale or settlement price on the day of valuation. To the extent these securities are actively traded and valuation adjustments are not applied, they are categorized as Level 1 of the fair value hierarchy.

Valuation adjustments may be applied to certain securities that are solely traded on a foreign exchange to account for the market movement between the close of the foreign market and the NYSE Close. These securities are valued using Pricing Services that consider the correlation of the trading patterns of the foreign security to the intraday trading in the U.S. markets for investments. Securities using these valuation adjustments are categorized as Level 2 of the fair value hierarchy. Preferred securities and other equities traded on inactive markets or valued by reference to similar instruments are also categorized as Level 2 of the fair value hierarchy.

Investments in registered open-end investment companies (other than ETFs) will be valued based upon the NAVs of such investments and are categorized as Level 1 of the fair value hierarchy. Investments in unregistered open-end investment companies will be calculated based upon the NAVs of such investments and are considered Level 1 provided that the NAVs are observable, calculated daily and are the value at which both purchases and sales will be conducted.

Equity exchange-traded options and over the counter financial derivative instruments, such as forward foreign currency contracts and options contracts derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors. These contracts are normally valued on the basis of quotes obtained from a quotation reporting system, established market makers or Pricing Services (normally determined as of the NYSE Close). Depending on the product and the terms of the transaction, financial derivative instruments can be valued by Pricing Services using a series of techniques, including simulation pricing models. The pricing models use inputs that are observed from actively quoted markets such as quoted prices, issuer details, indices, bid/ask spreads, interest rates, implied volatilities, yield curves, dividends and exchange rates. Financial derivative instruments that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

Centrally cleared swaps and over the counter swaps derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors. They are valued using a broker-dealer bid quotation or on market-based prices provided by Pricing Services (normally determined as of the NYSE close). Centrally cleared swaps and over the counter swaps can be valued by Pricing Services using a series of techniques, including simulation pricing models. The

ANNUAL REPORT DECEMBER 31, 2018 33

Notes to Financial Statements (Cont.)

pricing models may use inputs that are observed from actively quoted markets such as the overnight index swap rate (“OIS”), London Interbank Offered Rate (“LIBOR”) forward rate, interest rates, yield curves and credit spreads. These securities are categorized as Level 2 of the fair value hierarchy.

Level 3 trading assets and trading liabilities, at fair value  When a fair valuation method is applied by the Adviser that uses significant unobservable inputs, investments will be priced by a method that the Board or persons acting at their direction believe reflects fair value and are categorized as Level 3 of the fair value hierarchy.

Short-term debt instruments (such as commercial paper) having a remaining maturity of 60 days or less may be valued at amortized cost, so long as the amortized cost value of such short-term debt instruments is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. These securities are categorized as Level 2 or Level 3 of the fair value hierarchy depending on the source of the base price.

4. SECURITIES AND OTHER INVESTMENTS

(a) Investments in Affiliates

The Portfolio may invest in the PIMCO Short Asset Portfolio and the PIMCO Short-Term Floating NAV Portfolio III (“Central Funds”) to the extent permitted by the Act and rules thereunder. The Central Funds are registered investment companies created for use solely by the series of the Trust and other series of registered investment companies advised by the Adviser, in connection with their cash management activities. The main investments of the Central Funds are money market and short maturity fixed income instruments. The Central Funds may incur expenses related to their investment activities, but do not pay Investment Advisory Fees or Supervisory and Administrative Fees to the Adviser. The Central Funds are considered to be affiliated with the Portfolio. The tables below show the Portfolio’s transactions in and earnings from investments in the affiliated Funds for the period ended December 31, 2018 (amounts in thousands^†):

Investment in PIMCO Short Asset Portfolio

Market Value 12/31/2017		Purchases at Cost		Proceeds from Sales			Net Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Market Value 12/31/2018		Dividend Income(1)		Realized Net Capital Gain Distributions(1)
$	1,453	$	27	$	(900	)	$	(1	)	$	(5	)	$	574	$	27	$	1

Investment in PIMCO Short-Term Floating NAV Portfolio III

Market Value 12/31/2017		Purchases at Cost		Proceeds from Sales			Net Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)		Market Value 12/31/2018		Dividend Income(1)		Realized Net Capital Gain Distributions(1)
$	363	$	19,031	$	(19,190	)	$	0	$	0	$	204	$	30	$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽¹⁾  The tax characterization of distributions is determined in accordance with Federal income tax regulations and may contain a return of capital. The actual tax characterization of distributions received is determined at the end of the fiscal year of the affiliated fund. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

(b) Investments in Securities

The Portfolio may utilize the investments and strategies described below to the extent permitted by the Portfolio’s investment policies.

Inflation-Indexed Bonds  are fixed income securities whose principal value is periodically adjusted by the rate of inflation. The interest rate on these bonds is generally fixed at issuance at a rate lower than typical bonds. Over the life of an inflation-indexed bond, however, interest will be paid based on a principal value which is adjusted for inflation. Any increase or decrease in the principal amount of an inflation-indexed bond will be included as interest income on the Statement of Operations, even though investors do not receive their

principal until maturity. Repayment of the original bond principal upon maturity (as adjusted for inflation) is guaranteed in the case of U.S. Treasury Inflation-Protected Securities (“TIPS”). For bonds that do not provide a similar guarantee, the adjusted principal value of the bond repaid at maturity may be less than the original principal.

Loans and Other Indebtedness, Loan Participations and Assignments  are direct debt instruments which are interests in amounts owed to lenders or lending syndicates by corporate, governmental, or other borrowers. The Portfolio’s investments in loans may be in the form of participations in loans or assignments of all or a portion of loans from third parties or investments in or originations of

34 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

loans by the Portfolio. A loan is often administered by a bank or other financial institution (the “agent”) that acts as agent for all holders. The agent administers the terms of the loan, as specified in the loan agreement. The Portfolio may invest in multiple series or tranches of a loan, which may have varying terms and carry different associated risks. When the Portfolio purchases assignments from agents it acquires direct rights against the borrowers of the loans. These loans may include participations in bridge loans, which are loans taken out by borrowers for a short period (typically less than one year) pending arrangement of more permanent financing through, for example, the issuance of bonds, frequently high yield bonds issued for the purpose of acquisitions.

The types of loans and related investments in which the Portfolio may invest include, among others, senior loans, subordinated loans (including second lien loans, B-Notes and mezzanine loans), whole loans, commercial real estate and other commercial loans and structured loans. The Portfolio may originate loans or acquire direct interests in loans through primary loan distributions and/or in private transactions. In the case of subordinated loans, there may be significant indebtedness ranking ahead of the borrower’s obligation to the holder of such a loan, including in the event of the borrower’s insolvency. Mezzanine loans are typically secured by a pledge of an equity interest in the mortgage borrower that owns the real estate rather than an interest in a mortgage.

Investments in loans may include unfunded loan commitments, which are contractual obligations for funding. Unfunded loan commitments may include revolving credit facilities, which may obligate the Portfolio to supply additional cash to the borrower on demand. Unfunded loan commitments represent a future obligation in full, even though a percentage of the committed amount may not be utilized by the borrower. When investing in a loan participation, the Portfolio has the right to receive payments of principal, interest and any fees to which it is entitled only from the agent selling the loan agreement and only upon receipt of payments by the agent from the borrower. The Portfolio may receive a commitment fee based on the undrawn portion of the underlying line of credit portion of a loan. In certain circumstances, the Portfolio may receive a penalty fee upon the prepayment of a loan by a borrower. Fees earned or paid are recorded as a component of interest income or interest expense, respectively, on the Statement of Operations. Unfunded loan commitments are reflected as a liability on the Statement of Assets and Liabilities.

Mortgage-Related and Other Asset-Backed Securities  directly or indirectly represent a participation in, or are secured by and payable from, loans on real property. Mortgage-related securities are created from pools of residential or commercial mortgage loans, including mortgage loans made by savings and loan institutions, mortgage

bankers, commercial banks and others. These securities provide a monthly payment which consists of both interest and principal. Interest may be determined by fixed or adjustable rates. The rate of prepayments on underlying mortgages will affect the price and volatility of a mortgage-related security, and may have the effect of shortening or extending the effective duration of the security relative to what was anticipated at the time of purchase. The timely payment of principal and interest of certain mortgage-related securities is guaranteed with the full faith and credit of the U.S. Government. Pools created and guaranteed by non-governmental issuers, including government-sponsored corporations, may be supported by various forms of insurance or guarantees, but there can be no assurance that private insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Many of the risks of investing in mortgage-related securities secured by commercial mortgage loans reflect the effects of local and other economic conditions on real estate markets, the ability of tenants to make lease payments, and the ability of a property to attract and retain tenants. These securities may be less liquid and may exhibit greater price volatility than other types of mortgage-related or other asset-backed securities. Other asset-backed securities are created from many types of assets, including, but not limited to, auto loans, accounts receivable, such as credit card receivables and hospital account receivables, home equity loans, student loans, boat loans, mobile home loans, recreational vehicle loans, manufactured housing loans, aircraft leases, computer leases and syndicated bank loans.

Collateralized Debt Obligations  (“CDOs”) include Collateralized Bond Obligations (“CBOs”), Collateralized Loan Obligations (“CLOs”) and other similarly structured securities. CBOs and CLOs are types of asset-backed securities. A CBO is a trust which is backed by a diversified pool of high risk, below investment grade fixed income securities. A CLO is a trust typically collateralized by a pool of loans, which may include, among others, domestic and foreign senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated below investment grade or equivalent unrated loans. The risks of an investment in a CDO depend largely on the type of the collateral securities and the class of the CDO in which the Portfolio invests. In addition to the normal risks associated with fixed income securities discussed elsewhere in this report and the Portfolio’s prospectus and statement of additional information (e.g., prepayment risk, credit risk, liquidity risk, market risk, structural risk, legal risk and interest rate risk (which may be exacerbated if the interest rate payable on a structured financing changes based on multiples of changes in interest rates or inversely to changes in interest rates)), CBOs, CLOs and other CDOs carry additional risks including, but not limited to, (i) the possibility that distributions from collateral securities will not be adequate to make interest or other payments, (ii) the quality of the

ANNUAL REPORT DECEMBER 31, 2018 35

Notes to Financial Statements (Cont.)

collateral may decline in value or default, (iii) the risk that the Portfolio may invest in CBOs, CLOs, or other CDOs that are subordinate to other classes, and (iv) the complex structure of the security may not be fully understood at the time of investment and may produce disputes with the issuer or unexpected investment results.

Collateralized Mortgage Obligations  (“CMOs”) are debt obligations of a legal entity that are collateralized by whole mortgage loans or private mortgage bonds and divided into classes. CMOs are structured into multiple classes, often referred to as “tranches”, with each class bearing a different stated maturity and entitled to a different schedule for payments of principal and interest, including prepayments. CMOs may be less liquid and may exhibit greater price volatility than other types of mortgage-related or asset-backed securities.

Stripped Mortgage-Backed Securities  (“SMBS”) are derivative multi-class mortgage securities. SMBS are usually structured with two classes that receive different proportions of the interest and principal distributions on a pool of mortgage assets. An SMBS will have one class that will receive all of the interest (the interest-only or “IO” class), while the other class will receive the entire principal (the principal-only or “PO” class). Payments received for IOs are included in interest income on the Statement of Operations. Because no principal will be received at the maturity of an IO, adjustments are made to the cost of the security on a monthly basis until maturity. These adjustments are included in interest income on the Statement of Operations. Payments received for POs are treated as reductions to the cost and par value of the securities.

Perpetual Bonds  are fixed income securities with no maturity date but pay a coupon in perpetuity (with no specified ending or maturity date). Unlike typical fixed income securities, there is no obligation for perpetual bonds to repay principal. The coupon payments, however, are mandatory. While perpetual bonds have no maturity date, they may have a callable date in which the perpetuity is eliminated and the issuer may return the principal received on the specified call date. Additionally, a perpetual bond may have additional features, such as interest rate increases at periodic dates or an increase as of a predetermined point in the future.

Securities Issued by U.S. Government Agencies or Government-Sponsored Enterprises  are obligations of and, in certain cases, guaranteed by, the U.S. Government, its agencies or instrumentalities. Some U.S. Government securities, such as Treasury bills, notes and bonds, and securities guaranteed by the Government National Mortgage Association (“GNMA” or “Ginnie Mae”), are supported by the full faith and credit of the U.S. Government; others, such as those of the Federal Home Loan Banks, are supported by the right of the issuer to borrow from the U.S. Department of the Treasury (the “U.S.

Treasury”); and others, such as those of the Federal National Mortgage Association (“FNMA” or “Fannie Mae”), are supported by the discretionary authority of the U.S. Government to purchase the agency’s obligations. U.S. Government securities may include zero coupon securities. Zero coupon securities do not distribute interest on a current basis and tend to be subject to a greater risk than interest-paying securities.

Government-related guarantors (i.e., not backed by the full faith and credit of the U.S. Government) include FNMA and the Federal Home Loan Mortgage Corporation (“FHLMC” or “Freddie Mac”). FNMA is a government-sponsored corporation. FNMA purchases conventional (i.e., not insured or guaranteed by any government agency) residential mortgages from a list of approved seller/servicers which include state and federally chartered savings and loan associations, mutual savings banks, commercial banks and credit unions and mortgage bankers. Pass-through securities issued by FNMA are guaranteed as to timely payment of principal and interest by FNMA, but are not backed by the full faith and credit of the U.S. Government. FHLMC issues Participation Certificates (“PCs”), which are pass-through securities, each representing an undivided interest in a pool of residential mortgages. FHLMC guarantees the timely payment of interest and ultimate collection of principal, but PCs are not backed by the full faith and credit of the U.S. Government.

Roll-timing strategies can be used where the Portfolio seeks to extend the expiration or maturity of a position, such as a TBA security on an underlying asset, by closing out the position before expiration and opening a new position with respect to substantially the same underlying asset with a later expiration date. TBA securities purchased or sold are reflected on the Statement of Assets and Liabilities as an asset or liability, respectively.

5. BORROWINGS AND OTHER FINANCING TRANSACTIONS

The Portfolio may enter into the borrowings and other financing transactions described below to the extent permitted by the Portfolio’s investment policies.

The following disclosures contain information on the Portfolio’s ability to lend or borrow cash or securities to the extent permitted under the Act, which may be viewed as borrowing or financing transactions by the Portfolio. The location of these instruments in the Portfolio’s financial statements is described below.

(a) Repurchase Agreements  Under the terms of a typical repurchase agreement, the Portfolio purchases an underlying debt obligation (collateral) subject to an obligation of the seller to repurchase, and the Portfolio to resell, the obligation at an agreed-upon price and time. In

36 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

an open maturity repurchase agreement, there is no pre-determined repurchase date and the agreement can be terminated by the Portfolio or counterparty at any time. The underlying securities for all repurchase agreements are held by the Portfolio’s custodian or designated subcustodians under tri-party repurchase agreements and in certain instances will remain in custody with the counterparty. The market value of the collateral must be equal to or exceed the total amount of the repurchase obligations, including interest. Repurchase agreements, if any, including accrued interest, are included on the Statement of Assets and Liabilities. Interest earned is recorded as a component of interest income on the Statement of Operations. In periods of increased demand for collateral, the Portfolio may pay a fee for the receipt of collateral, which may result in interest expense to the Portfolio.

(b) Reverse Repurchase Agreements  In a reverse repurchase agreement, the Portfolio delivers a security in exchange for cash to a financial institution, the counterparty, with a simultaneous agreement to repurchase the same or substantially the same security at an agreed upon price and date. In an open maturity reverse repurchase agreement, there is no pre-determined repurchase date and the agreement can be terminated by the Portfolio or counterparty at any time. The Portfolio is entitled to receive principal and interest payments, if any, made on the security delivered to the counterparty during the term of the agreement. Cash received in exchange for securities delivered plus accrued interest payments to be made by the Portfolio to counterparties are reflected as a liability on the Statement of Assets and Liabilities. Interest payments made by the Portfolio to counterparties are recorded as a component of interest expense on the Statement of Operations. In periods of increased demand for the security, the Portfolio may receive a fee for use of the security by the counterparty, which may result in interest income to the Portfolio. The Portfolio will segregate assets determined to be liquid by the Adviser or will otherwise cover its obligations under reverse repurchase agreements.

(c) Sale-Buybacks  A sale-buyback financing transaction consists of a sale of a security by the Portfolio to a financial institution, the counterparty, with a simultaneous agreement to repurchase the same or substantially the same security at an agreed-upon price and date. The Portfolio is not entitled to receive principal and interest payments, if any, made on the security sold to the counterparty during the term of the agreement. The agreed-upon proceeds for securities to be repurchased by the Portfolio are reflected as a liability on the Statement of Assets and Liabilities. The Portfolio will recognize net income represented by the price differential between the price received for the transferred security and the agreed-upon repurchase price. This is commonly referred to as the ‘price drop’. A price drop consists of (i) the foregone interest and inflationary income adjustments, if any, the Portfolio would have otherwise received had the security not been sold

and (ii) the negotiated financing terms between the Portfolio and counterparty. Foregone interest and inflationary income adjustments, if any, are recorded as components of interest income on the Statement of Operations. Interest payments based upon negotiated financing terms made by the Portfolio to counterparties are recorded as a component of interest expense on the Statement of Operations. In periods of increased demand for the security, the Portfolio may receive a fee for use of the security by the counterparty, which may result in interest income to the Portfolio. The Portfolio will segregate assets determined to be liquid by the Adviser or will otherwise cover its obligations under sale-buyback transactions.

(d) Short Sales  Short sales are transactions in which the Portfolio sells a security that it may not own. The Portfolio may make short sales of securities to (i) offset potential declines in long positions in similar securities, (ii) to increase the flexibility of the Portfolio, (iii) for investment return, (iv) as part of a risk arbitrage strategy, and (v) as part of its overall portfolio management strategies involving the use of derivative instruments. When the Portfolio engages in a short sale, it may borrow the security sold short and deliver it to the counterparty. The Portfolio will ordinarily have to pay a fee or premium to borrow a security and be obligated to repay the lender of the security any dividend or interest that accrues on the security during the period of the loan. Securities sold in short sale transactions and the dividend or interest payable on such securities, if any, are reflected as payable for short sales on the Statement of Assets and Liabilities. Short sales expose the Portfolio to the risk that it will be required to cover its short position at a time when the security or other asset has appreciated in value, thus resulting in losses to the Portfolio. A short sale is “against the box” if the Portfolio holds in its portfolio or has the right to acquire the security sold short, or securities identical to the security sold short, at no additional cost. The Portfolio will be subject to additional risks to the extent that it engages in short sales that are not “against the box.” The Portfolio’s loss on a short sale could theoretically be unlimited in cases where the Portfolio is unable, for whatever reason, to close out its short position.

6. FINANCIAL DERIVATIVE INSTRUMENTS

The Portfolio may enter into the financial derivative instruments described below to the extent permitted by the Portfolio’s investment policies.

The following disclosures contain information on how and why the Portfolio uses financial derivative instruments, and how financial derivative instruments affect the Portfolio’s financial position, results of operations and cash flows. The location and fair value amounts of these instruments on the Statement of Assets and Liabilities and the net realized gain (loss) and net change in unrealized appreciation

ANNUAL REPORT DECEMBER 31, 2018 37

Notes to Financial Statements (Cont.)

(depreciation) on the Statement of Operations, each categorized by type of financial derivative contract and related risk exposure, are included in a table in the Notes to Schedule of Investments. The financial derivative instruments outstanding as of period end and the amounts of net realized gain (loss) and net change in unrealized appreciation (depreciation) on financial derivative instruments during the period, as disclosed in the Notes to Schedule of Investments, serve as indicators of the volume of financial derivative activity for the Portfolio.

(a) Forward Foreign Currency Contracts  may be engaged, in connection with settling planned purchases or sales of securities, to hedge the currency exposure associated with some or all of the Portfolio’s securities or as part of an investment strategy. A forward foreign currency contract is an agreement between two parties to buy and sell a currency at a set price on a future date. The market value of a forward foreign currency contract fluctuates with changes in foreign currency exchange rates. Forward foreign currency contracts are marked to market daily, and the change in value is recorded by the Portfolio as an unrealized gain (loss). Realized gains (losses) are equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed and are recorded upon delivery or receipt of the currency. These contracts may involve market risk in excess of the unrealized gain (loss) reflected on the Statement of Assets and Liabilities. In addition, the Portfolio could be exposed to risk if the counterparties are unable to meet the terms of the contracts or if the value of the currency changes unfavorably to the U.S. dollar. To mitigate such risk, cash or securities may be exchanged as collateral pursuant to the terms of the underlying contracts.

(b) Futures Contracts  are agreements to buy or sell a security or other asset for a set price on a future date. The Portfolio may use futures contracts to manage its exposure to the securities markets or to movements in interest rates and currency values. The primary risks associated with the use of futures contracts are the imperfect correlation between the change in market value of the securities held by the Portfolio and the prices of futures contracts and the possibility of an illiquid market. Futures contracts are valued based upon their quoted daily settlement prices. Upon entering into a futures contract, the Portfolio is required to deposit with its futures broker an amount of cash, U.S. Government and Agency Obligations, or select sovereign debt, in accordance with the initial margin requirements of the broker or exchange. Futures contracts are marked to market daily and based on such movements in the price of the contracts, an appropriate payable or receivable for the change in value may be posted or collected by the Portfolio (“Futures Variation Margin”). Gains (losses) are recognized but not considered realized until the contracts expire or close. Futures contracts involve, to varying degrees, risk of loss in

excess of the Futures Variation Margin included within exchange traded or centrally cleared financial derivative instruments on the Statement of Assets and Liabilities.

(c) Options Contracts  may be written or purchased to enhance returns or to hedge an existing position or future investment. The Portfolio may write call and put options on securities and financial derivative instruments it owns or in which it may invest. Writing put options tends to increase the Portfolio’s exposure to the underlying instrument. Writing call options tends to decrease the Portfolio’s exposure to the underlying instrument. When the Portfolio writes a call or put, an amount equal to the premium received is recorded and subsequently marked to market to reflect the current value of the option written. These amounts are included on the Statement of Assets and Liabilities. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options which are exercised or closed are added to the proceeds or offset against amounts paid on the underlying futures, swap, security or currency transaction to determine the realized gain (loss). Certain options may be written with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. The Portfolio as a writer of an option has no control over whether the underlying instrument may be sold (“call”) or purchased (“put”) and as a result bears the market risk of an unfavorable change in the price of the instrument underlying the written option. There is the risk the Portfolio may not be able to enter into a closing transaction because of an illiquid market.

Purchasing call options tends to increase the Portfolio’s exposure to the underlying instrument. Purchasing put options tends to decrease the Portfolio’s exposure to the underlying instrument. The Portfolio pays a premium which is included as an asset on the Statement of Assets and Liabilities and subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options which expire are treated as realized losses. Certain options may be purchased with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. The risk associated with purchasing put and call options is limited to the premium paid. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the underlying investment transaction to determine the realized gain (loss) when the underlying transaction is executed.

Credit Default Swaptions  may be written or purchased to hedge exposure to the credit risk of an investment without making a commitment to the underlying instrument. A credit default swaption is an option to sell or buy credit protection on a specific reference by entering into a pre-defined swap agreement by some specified date in the future.

38 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

Foreign Currency Options  may be written or purchased to be used as a short or long hedge against possible variations in foreign exchange rates or to gain exposure to foreign currencies.

Interest Rate Swaptions  may be written or purchased to enter into a pre-defined swap agreement or to shorten, extend, cancel or otherwise modify an existing swap agreement, by some specified date in the future. The writer of the swaption becomes the counterparty to the swap if the buyer exercises. The interest rate swaption agreement will specify whether the buyer of the swaption will be a fixed-rate receiver or a fixed-rate payer upon exercise.

Options on Exchange-Traded Futures Contracts  (“Futures Option”) may be written or purchased to hedge an existing position or future investment, for speculative purposes or to manage exposure to market movements. A Futures Option is an option contract in which the underlying instrument is a single futures contract.

Options on Securities  may be written or purchased to enhance returns or to hedge an existing position or future investment. An option on a security uses a specified security as the underlying instrument for the option contract.

(d) Swap Agreements  are bilaterally negotiated agreements between the Portfolio and a counterparty to exchange or swap investment cash flows, assets, foreign currencies or market-linked returns at specified, future intervals. Swap agreements may be privately negotiated in the over the counter market (“OTC swaps”) or may be cleared through a third party, known as a central counterparty or derivatives clearing organization (“Centrally Cleared Swaps”). The Portfolio may enter into asset, credit default, cross-currency, interest rate, total return, variance and other forms of swap agreements to manage its exposure to credit, currency, interest rate, commodity, equity and inflation risk. In connection with these agreements, securities or cash may be identified as collateral or margin in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default or bankruptcy/insolvency.

Centrally Cleared Swaps are marked to market daily based upon valuations as determined from the underlying contract or in accordance with the requirements of the central counterparty or derivatives clearing organization. Changes in market value, if any, are reflected as a component of net change in unrealized appreciation (depreciation) on the Statement of Operations. Daily changes in valuation of centrally cleared swaps (“Swap Variation Margin”), if any, are disclosed within centrally cleared financial derivative instruments on the Statement of Assets and Liabilities. Centrally Cleared and OTC swap payments received or paid at the beginning of the measurement period are included on the Statement of Assets and Liabilities and represent

premiums paid or received upon entering into the swap agreement to compensate for differences between the stated terms of the swap agreement and prevailing market conditions (credit spreads, currency exchange rates, interest rates, and other relevant factors). Upfront premiums received (paid) are initially recorded as liabilities (assets) and subsequently marked to market to reflect the current value of the swap. These upfront premiums are recorded as realized gain (loss) on the Statement of Operations upon termination or maturity of the swap. A liquidation payment received or made at the termination of the swap is recorded as realized gain (loss) on the Statement of Operations. Net periodic payments received or paid by the Portfolio are included as part of realized gain (loss) on the Statement of Operations.

For purposes of applying certain of the Portfolio’s investment policies and restrictions, swap agreements, like other derivative instruments, may be valued by the Portfolio at market value, notional value or full exposure value. In the case of a credit default swap, in applying certain of the Portfolio’s investment policies and restrictions, the Portfolio will value the credit default swap at its notional value or its full exposure value (i.e., the sum of the notional amount for the contract plus the market value), but may value the credit default swap at market value for purposes of applying certain of the Portfolio’s other investment policies and restrictions. For example, the Portfolio may value credit default swaps at full exposure value for purposes of the Portfolio’s credit quality guidelines (if any) because such value in general better reflects the Portfolio’s actual economic exposure during the term of the credit default swap agreement. As a result, the Portfolio may, at times, have notional exposure to an asset class (before netting) that is greater or lesser than the stated limit or restriction noted in the Portfolio’s prospectus. In this context, both the notional amount and the market value may be positive or negative depending on whether the Portfolio is selling or buying protection through the credit default swap. The manner in which certain securities or other instruments are valued by the Portfolio for purposes of applying investment policies and restrictions may differ from the manner in which those investments are valued by other types of investors.

Entering into swap agreements involves, to varying degrees, elements of interest, credit, market and documentation risk in excess of the amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of contractual terms in the agreements and that there may be unfavorable changes in interest rates or the values of the asset upon which the swap is based.

The Portfolio’s maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from the counterparty over the contract’s remaining life, to the extent that

ANNUAL REPORT DECEMBER 31, 2018 39

Notes to Financial Statements (Cont.)

amount is positive. The risk may be mitigated by having a master netting arrangement between the Portfolio and the counterparty and by the posting of collateral to the Portfolio to cover the Portfolio’s exposure to the counterparty.

To the extent the Portfolio has a policy to limit the net amount owed to or to be received from a single counterparty under existing swap agreements, such limitation only applies to counterparties to OTC swaps and does not apply to centrally cleared swaps where the counterparty is a central counterparty or derivatives clearing organization.

Credit Default Swap Agreements  on corporate, loan, sovereign, U.S. municipal or U.S. Treasury issues are entered into to provide a measure of protection against defaults of the issuers (i.e., to reduce risk where the Portfolio owns or has exposure to the referenced obligation) or to take an active long or short position with respect to the likelihood of a particular issuer’s default. Credit default swap agreements involve one party making a stream of payments (referred to as the buyer of protection) to another party (the seller of protection) in exchange for the right to receive a specified return in the event that the referenced entity, obligation or index, as specified in the swap agreement, undergoes a certain credit event. As a seller of protection on credit default swap agreements, the Portfolio will generally receive from the buyer of protection a fixed rate of income throughout the term of the swap provided that there is no credit event. As the seller, the Portfolio would effectively add leverage to its portfolio because, in addition to its total net assets, the Portfolio would be subject to investment exposure on the notional amount of the swap.

If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. If the Portfolio is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. Recovery values are estimated by market makers considering either industry standard recovery rates or entity specific factors and considerations until a credit event occurs. If a credit event has occurred,

the recovery value is determined by a facilitated auction whereby a minimum number of allowable broker bids, together with a specified valuation method, are used to calculate the settlement value. The ability to deliver other obligations may result in a cheapest-to-deliver option (the buyer of protection’s right to choose the deliverable obligation with the lowest value following a credit event).

Credit default swap agreements on credit indices involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising the credit index. A credit index is a basket of credit instruments or exposures designed to be representative of some part of the credit market as a whole. These indices are made up of reference credits that are judged by a poll of dealers to be the most liquid entities in the credit default swap market based on the sector of the index. Components of the indices may include, but are not limited to, investment grade securities, high yield securities, asset-backed securities, emerging markets, and/or various credit ratings within each sector. Credit indices are traded using credit default swaps with standardized terms including a fixed spread and standard maturity dates. An index credit default swap references all the names in the index, and if there is a default, the credit event is settled based on that name’s weight in the index. The composition of the indices changes periodically, usually every six months, and for most indices, each name has an equal weight in the index. The Portfolio may use credit default swaps on credit indices to hedge a portfolio of credit default swaps or bonds, which is less expensive than it would be to buy many credit default swaps to achieve a similar effect. Credit default swaps on indices are instruments for protecting investors owning bonds against default, and traders use them to speculate on changes in credit quality.

Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate, loan, sovereign, U.S. municipal or U.S. Treasury issues as of period end, if any, are disclosed in the Notes to Schedule of Investments. They serve as an indicator of the current status of payment/performance risk and represent the likelihood or risk of default for the reference entity. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. For credit default swap agreements on asset-backed securities and credit indices, the quoted market prices and resulting values serve as the indicator of the current status of the payment/performance risk. Increasing market values, in absolute terms when

40 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

The maximum potential amount of future payments (undiscounted) that the Portfolio as a seller of protection could be required to make under a credit default swap agreement equals the notional amount of the agreement. Notional amounts of each individual credit default swap agreement outstanding as of period end for which the Portfolio is the seller of protection are disclosed in the Notes to Schedule of Investments. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Portfolio for the same referenced entity or entities.

Cross-Currency Swap Agreements  are entered into to gain or mitigate exposure to currency risk. Cross-currency swap agreements involve two parties exchanging two different currencies with an agreement to reverse the exchange at a later date at specified exchange rates. The exchange of currencies at the inception date of the contract takes place at the current spot rate. The re-exchange at maturity may take place at the same exchange rate, a specified rate, or the then current spot rate. Interest payments, if applicable, are made between the parties based on interest rates available in the two currencies at the inception of the contract. The terms of cross-currency swap contracts may extend for many years. Cross-currency swaps are usually negotiated with commercial and investment banks. Some cross-currency swaps may not provide for exchanging principal cash flows, but only for exchanging interest cash flows.

Interest Rate Swap Agreements  may be entered into to help hedge against interest rate risk exposure and to maintain the Portfolio’s ability to generate income at prevailing market rates. The value of the fixed rate bonds that the Portfolio holds may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, the Portfolio may enter into interest rate swap agreements. Interest rate swap agreements involve the exchange by the Portfolio with another party for their respective commitment to pay or receive interest on the notional amount of principal. Certain forms of interest rate swap agreements may include: (i) interest rate caps, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates exceed a specified rate, or “cap”, (ii) interest rate floors, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates fall below a specified rate, or “floor”, (iii) interest rate collars, under which a party sells a cap and purchases a floor or vice versa in an attempt to protect itself against

interest rate movements exceeding given minimum or maximum levels, (iv) callable interest rate swaps, under which the buyer pays an upfront fee in consideration for the right to early terminate the swap transaction in whole, at zero cost and at a predetermined date and time prior to the maturity date, (v) spreadlocks, which allow the interest rate swap users to lock in the forward differential (or spread) between the interest rate swap rate and a specified benchmark, or (vi) basis swaps, under which two parties can exchange variable interest rates based on different segments of money markets.

7. PRINCIPAL RISKS

The principal risks of investing in the Portfolio, which could adversely affect its net asset value, yield and total return, are listed below. Please see “Description of Principal Risks” in the Portfolio’s prospectus for a more detailed description of the risks of investing in the Portfolio.

New/Small Portfolio Risk  is the risk that a new or smaller Portfolio’s performance may not represent how the Portfolio is expected to or may perform in the long term. In addition, new Portfolios have limited operating histories for investors to evaluate and new and smaller Portfolios may not attract sufficient assets to achieve investment and trading efficiencies.

Interest Rate Risk  is the risk that fixed income securities will decline in value because of an increase in interest rates; a portfolio with a longer average portfolio duration will be more sensitive to changes in interest rates than a portfolio with a shorter average portfolio duration.

Call Risk  is the risk that an issuer may exercise its right to redeem a fixed income security earlier than expected (a call). Issuers may call outstanding securities prior to their maturity for a number of reasons (e.g., declining interest rates, changes in credit spreads and improvements in the issuer’s credit quality). If an issuer calls a security that the Portfolio has invested in, the Portfolio may not recoup the full amount of its initial investment and may be forced to reinvest in lower-yielding securities, securities with greater credit risks or securities with other, less favorable features.

Credit Risk  is the risk that the Portfolio could lose money if the issuer or guarantor of a fixed income security, or the counterparty to a derivative contract, is unable or unwilling to meet its financial obligations.

High Yield Risk  is the risk that high yield securities and unrated securities of similar credit quality (commonly known as “junk bonds”) are subject to greater levels of credit, call and liquidity risks. High yield securities are considered primarily speculative with respect to the issuer’s continuing ability to make principal and interest payments, and may be more volatile than higher-rated securities of similar maturity.

ANNUAL REPORT DECEMBER 31, 2018 41

Notes to Financial Statements (Cont.)

Market Risk  is the risk that the value of securities owned by the Portfolio may go up or down, sometimes rapidly or unpredictably, due to factors affecting securities markets generally or particular industries.

Issuer Risk  is the risk that the value of a security may decline for a reason directly related to the issuer, such as management performance, financial leverage and reduced demand for the issuer’s goods or services.

Liquidity Risk  is the risk that a particular investment may be difficult to purchase or sell and that the Portfolio may be unable to sell illiquid securities at an advantageous time or price or achieve its desired level of exposure to a certain sector. Liquidity risk may result from the lack of an active market, reduced number and capacity of traditional market participants to make a market in fixed income securities, and may be magnified in a rising interest rate environment or other circumstances where investor redemptions from fixed income mutual funds may be higher than normal, causing increased supply in the market due to selling activity.

Derivatives Risk  is the risk of investing in derivative instruments (such as futures, swaps and structured securities), including leverage, liquidity, interest rate, market, credit and management risks, mispricing or valuation complexity. Changes in the value of the derivative may not correlate perfectly with, and may be more sensitive to market events than, the underlying asset, rate or index, and the Portfolio could lose more than the initial amount invested. The Portfolio’s use of derivatives may result in losses to the Portfolio, a reduction in the Portfolio’s returns and/or increased volatility. Over-the-counter (“OTC”) derivatives are also subject to the risk that a counterparty to the transaction will not fulfill its contractual obligations to the other party, as many of the protections afforded to centrally-cleared derivative transactions might not be available for OTC derivatives. For derivatives traded on an exchange or through a central counterparty, credit risk resides with the Portfolio’s clearing broker, or the clearinghouse itself, rather than with a counterparty in an OTC derivative transaction. Changes in regulation relating to a mutual fund’s use of derivatives and related instruments could potentially limit or impact the Portfolio’s ability to invest in derivatives, limit the Portfolio’s ability to employ certain strategies that use derivatives and/or adversely affect the value of derivatives and the Portfolio’s performance.

Equity Risk  is the risk that the value of equity securities, such as common stocks and preferred securities, may decline due to general market conditions which are not specifically related to a particular company or to factors affecting a particular industry or industries. Equity securities generally have greater price volatility than fixed income securities.

Mortgage-Related and Other Asset-Backed Securities Risk  is the risk of investing in mortgage-related and other asset-backed securities, including interest rate risk, extension risk, prepayment risk and credit risk.

Foreign (Non-U.S.) Investment Risk  is the risk that investing in foreign (non-U.S.) securities may result in the Portfolio experiencing more rapid and extreme changes in value than a portfolio that invests exclusively in securities of U.S. companies, due to smaller markets, differing reporting, accounting and auditing standards, increased risk of delayed settlement of portfolio transactions or loss of certificates of portfolio securities, and the risk of unfavorable foreign government actions, including nationalization, expropriation or confiscatory taxation, currency blockage, or political changes or diplomatic developments. Foreign securities may also be less liquid and more difficult to value than securities of U.S. issuers.

Emerging Markets Risk  is the risk of investing in emerging market securities, primarily increased foreign (non-U.S.) investment risk.

Sovereign Debt Risk  is the risk that investments in fixed income instruments issued by sovereign entities may decline in value as a result of default or other adverse credit event resulting from an issuer’s inability or unwillingness to make principal or interest payments in a timely fashion.

Currency Risk  is the risk that foreign (non-U.S.) currencies will change in value relative to the U.S. dollar and affect the Portfolio’s investments in foreign (non-U.S.) currencies or in securities that trade in, and receive revenues in, or in derivatives that provide exposure to, foreign (non-U.S.) currencies.

Issuer Non-Diversification Risk  is the risk of focusing investments in a small number of issuers, including being more susceptible to risks associated with a single economic, political or regulatory occurrence than a more diversified portfolio might be. Portfolios that are “non-diversified” may invest a greater percentage of their assets in the securities of a single issuer (such as bonds issued by a particular state) than portfolios that are “diversified”.

Leveraging Risk  is the risk that certain transactions of the Portfolio, such as reverse repurchase agreements, loans of portfolio securities, and the use of when-issued, delayed delivery or forward commitment transactions, or derivative instruments, may give rise to leverage, magnifying gains and losses and causing the Portfolio to be more volatile than if it had not been leveraged. This means that leverage entails a heightened risk of loss.

Management Risk  is the risk that the investment techniques and risk analyses applied by PIMCO will not produce the desired results and

42 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

that legislative, regulatory, or tax restrictions, policies or developments may affect the investment techniques available to PIMCO and the individual portfolio manager in connection with managing the Portfolio. There is no guarantee that the investment objective of the Portfolio will be achieved.

Short Exposure Risk  is the risk of entering into short sales, including the potential loss of more money than the actual cost of the investment, and the risk that the third party to the short sale will not fulfill its contractual obligations, causing a loss to the Portfolio.

8. MASTER NETTING ARRANGEMENTS

The Portfolio may be subject to various netting arrangements (“Master Agreements”) with select counterparties. Master Agreements govern the terms of certain transactions, and are intended to reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that is intended to improve legal certainty. Each type of Master Agreement governs certain types of transactions. Different types of transactions may be traded out of different legal entities or affiliates of a particular organization, resulting in the need for multiple agreements with a single counterparty. As the Master Agreements are specific to unique operations of different asset types, they allow the Portfolio to close out and net its total exposure to a counterparty in the event of a default with respect to all the transactions governed under a single Master Agreement with a counterparty. For financial reporting purposes the Statement of Assets and Liabilities generally presents derivative assets and liabilities on a gross basis, which reflects the full risks and exposures prior to netting.

Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. Under most Master Agreements, collateral is routinely transferred if the total net exposure to certain transactions (net of existing collateral already in place) governed under the relevant Master Agreement with a counterparty in a given account exceeds a specified threshold, which typically ranges from zero to $250,000 depending on the counterparty and the type of Master Agreement. United States Treasury Bills and U.S. dollar cash are generally the preferred forms of collateral, although other securities may be used depending on the terms outlined in the applicable Master Agreement. Securities and cash pledged as collateral are reflected as assets on the Statement of Assets and Liabilities as either a component of Investments at value (securities) or Deposits with counterparty. Cash collateral received is not typically held in a segregated account and as such is reflected as a liability on the Statement of Assets and Liabilities as Deposits from counterparty. The market value of any securities received as collateral is not reflected as a component of NAV. The Portfolio’s overall exposure to counterparty

risk can change substantially within a short period, as it is affected by each transaction subject to the relevant Master Agreement.

Master Repurchase Agreements and Global Master Repurchase Agreements (individually and collectively “Master Repo Agreements”) govern repurchase, reverse repurchase, and certain sale-buyback transactions between the Portfolio and select counterparties. Master Repo Agreements maintain provisions for, among other things, initiation, income payments, events of default, and maintenance of collateral. The market value of transactions under the Master Repo Agreement, collateral pledged or received, and the net exposure by counterparty as of period end are disclosed in the Notes to Schedule of Investments.

Master Securities Forward Transaction Agreements (“Master Forward Agreements”) govern certain forward settling transactions, such as TBA securities, delayed-delivery or certain sale-buyback transactions by and between the Portfolio and select counterparties. The Master Forward Agreements maintain provisions for, among other things, transaction initiation and confirmation, payment and transfer, events of default, termination, and maintenance of collateral. The market value of forward settling transactions, collateral pledged or received, and the net exposure by counterparty as of period end is disclosed in the Notes to Schedule of Investments.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Such transactions require posting of initial margin as determined by each relevant clearing agency which is segregated in an account at a futures commission merchant (“FCM”) registered with the Commodity Futures Trading Commission (“CFTC”). In the United States, counterparty risk may be reduced as creditors of an FCM cannot have a claim to Portfolio assets in the segregated account. Portability of exposure reduces risk to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives unless the parties have agreed to a separate arrangement in respect of portfolio margining. The market value or accumulated unrealized appreciation (depreciation), initial margin posted, and any unsettled variation margin as of period end are disclosed in the Notes to Schedule of Investments.

International Swaps and Derivatives Association, Inc. Master Agreements and Credit Support Annexes (“ISDA Master Agreements”) govern bilateral OTC derivative transactions entered into by the Portfolio with select counterparties. ISDA Master Agreements maintain provisions for general obligations, representations, agreements, collateral posting and events of default or termination. Events of termination include conditions that may entitle counterparties to elect to terminate early and cause settlement of all outstanding transactions under the applicable ISDA Master Agreement. Any election to

ANNUAL REPORT DECEMBER 31, 2018 43

Notes to Financial Statements (Cont.)

terminate early could be material to the financial statements. In limited circumstances, the ISDA Master Agreement may contain additional provisions that add counterparty protection beyond coverage of existing daily exposure if the counterparty has a decline in credit quality below a predefined level. These amounts, if any, may be segregated with a third-party custodian. The market value of OTC financial derivative instruments, collateral received or pledged, and net exposure by counterparty as of period end are disclosed in the Notes to Schedule of Investments.

9. FEES AND EXPENSES

(a) Investment Advisory Fee  PIMCO is a majority-owned subsidiary of Allianz Asset Management of America L.P. (“Allianz Asset Management”) and serves as the Adviser to the Trust, pursuant to an investment advisory contract. The Adviser receives a monthly fee from the Portfolio at an annual rate based on average daily net assets (the “Investment Advisory Fee”). The Investment Advisory Fee for all classes is charged at an annual rate as noted in the table in note (b) below.

(b) Supervisory and Administrative Fee  PIMCO serves as administrator (the “Administrator”) and provides supervisory and administrative services to the Trust for which it receives a monthly supervisory and administrative fee based on each share class’s average daily net assets (the “Supervisory and Administrative Fee”). As the Administrator, PIMCO bears the costs of various third-party services, including audit, custodial, portfolio accounting, legal, transfer agency and printing costs.

The Investment Advisory Fee and Supervisory and Administrative Fees for all classes, as applicable, are charged at the annual rate as noted in the following table (calculated as a percentage of the Portfolio’s average daily net assets attributable to each class):

Investment Advisory Fee			Supervisory and Administrative Fee
All Classes			Institutional Class			Administrative Class			Advisor Class
	0.25	%		0.50	%		0.50	%		0.50	%

(c) Distribution and Servicing Fees  PIMCO Investments LLC, a wholly-owned subsidiary of PIMCO, serves as the distributor (“Distributor”) of the Trust’s shares.

The Trust has adopted an Administrative Services Plan with respect to the Administrative Class shares of the Portfolio pursuant to Rule 12b-1 under the Act (the “Administrative Plan”). Under the terms of the Administrative Plan, the Trust is permitted to compensate the Distributor, out of the Administrative Class assets of the Portfolio, in an amount up to 0.15% on an annual basis of the average daily net assets of that class, for providing or procuring through financial intermediaries administrative, recordkeeping and investor services for Administrative Class shareholders of the Portfolio.

The Trust has adopted a separate Distribution and Servicing Plan for the Advisor Class shares of the Portfolio (the “Distribution and Servicing Plan”). The Distribution and Servicing Plan has been adopted pursuant to Rule 12b-1 under the Act. The Distribution and Servicing Plan permits the Portfolio to compensate the Distributor for providing or procuring through financial intermediaries, distribution, administrative, recordkeeping, shareholder and/or related services with respect to Advisor Class shares. The Distribution and Servicing Plan permits the Portfolio to make total payments at an annual rate of up to 0.25% of its average daily net assets attributable to its Advisor Class shares.

	Distribution Fee		Servicing Fee
Administrative Class		—		0.15%
Advisor Class		0.25%		—

(d) Portfolio Expenses  PIMCO provides or procures supervisory and administrative services for shareholders and also bears the costs of various third-party services required by the Portfolio, including audit, custodial, portfolio accounting, legal, transfer agency and printing costs. The Trust is responsible for the following expenses: (i) taxes and governmental fees; (ii) brokerage fees and commissions and other portfolio transaction expenses; (iii) the costs of borrowing money, including interest expense; (iv) fees and expenses of the Trustees who are not “interested persons” of PIMCO or the Trust, and any counsel retained exclusively for their benefit; (v) extraordinary expense, including costs of litigation and indemnification expenses; (vi) organizational expenses; and (vii) any expenses allocated or allocable to a specific class of shares, which include service fees payable with respect to the Administrative Class Shares, and may include certain other expenses as permitted by the Trust’s Multi-Class Plan adopted pursuant to Rule 18f-3 under the Act and subject to review and approval by the Trustees. The ratio of expenses to average net assets per share class, as disclosed on the Financial Highlights, may differ from the annual portfolio operating expenses per share class.

Each Trustee, other than those affiliated with PIMCO or its affiliates, receives an annual retainer of $41,200, plus $4,250 for each Board meeting attended in person, $850 for each committee meeting attended and $750 for each Board meeting attended telephonically, plus reimbursement of related expenses. In addition, the audit committee chair receives an additional annual retainer of $8,000, the valuation oversight committee lead receives an additional annual retainer of $8,500 (to the extent there are co-leads of the valuation oversight committee, the annual retainer will be split evenly between the co-leads, so that each co-lead individually receives an additional annual retainer of $4,250) and each other committee chair receives an additional annual retainer of $5,500. The Lead Independent Trustee receives an annual retainer of $7,000.

44 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

These expenses are allocated on a pro rata basis to each Portfolio of the Trust according to its respective net assets. The Trust pays no compensation directly to any Trustee or any other officer who is affiliated with the Administrator, all of whom receive remuneration for their services to the Trust from the Administrator or its affiliates.

(e) Expense Limitation  Pursuant to the Expense Limitation Agreement, PIMCO has agreed to waive a portion of the Portfolio’s Supervisory and Administrative Fee, or reimburse the Portfolio, to the extent that the Portfolio’s organizational expenses, pro rata share of expenses related to obtaining or maintaining a Legal Entity Identifier and pro rata share of Trustee Fees exceed 0.0049%, the “Expense Limit” (calculated as a percentage of the Portfolio’s average daily net assets attributable to each class). The Expense Limitation Agreement will automatically renew for one-year terms unless PIMCO provides written notice to the Trust at least 30 days prior to the end of the then current term.

Under certain conditions, PIMCO may be reimbursed for these waived amounts in future periods, not to exceed thirty-six months after the waiver. At December 31, 2018, there were no recoverable amounts.

10. RELATED PARTY TRANSACTIONS

The Adviser, Administrator, and Distributor are related parties. Fees paid to these parties are disclosed in Note 9, Fees and Expenses, and the accrued related party fee amounts are disclosed on the Statement of Assets and Liabilities.

The Portfolio is permitted to purchase or sell securities from or to certain related affiliated portfolios under specified conditions outlined in procedures adopted by the Board. The procedures have been designed to ensure that any purchase or sale of securities by the Portfolio from or to another fund or portfolio that are, or could be, considered an affiliate, or an affiliate of an affiliate, by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers complies with Rule 17a-7 under the Act. Further, as defined under the procedures, each transaction is effected at the current market price. Purchases and sales of securities pursuant to Rule 17a-7 under the Act for the period ended December 31, 2018, were as follows (amounts in thousands^†):

Purchases		Sales
$	1,292	$	77

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

11. GUARANTEES AND INDEMNIFICATIONS

Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust (including the Trust’s investment manager) is indemnified, to the extent permitted by the Act, against certain liabilities that may arise out of performance of their duties to the Portfolio. Additionally, in the normal course of business, the Portfolio enters into contracts that contain a variety of indemnification clauses. The Portfolio’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Portfolio that have not yet occurred. However, the Portfolio has not had prior claims or losses pursuant to these contracts.

12. PURCHASES AND SALES OF SECURITIES

The length of time the Portfolio has held a particular security is not generally a consideration in investment decisions. A change in the securities held by the Portfolio is known as “portfolio turnover.” The Portfolio may engage in frequent and active trading of portfolio securities to achieve its investment objective, particularly during periods of volatile market movements. High portfolio turnover may involve correspondingly greater transaction costs to the Portfolio, including brokerage commissions or dealer mark-ups and other transaction costs on the sale of securities and reinvestments in other securities. Such sales may also result in realization of taxable capital gains, including short-term capital gains (which are generally taxed at ordinary income tax rates). The transaction costs and tax effects associated with portfolio turnover may adversely affect a shareholder’s performance. The portfolio turnover rates are reported in the Financial Highlights.

Purchases and sales of securities (excluding short-term investments) for the period ended December 31, 2018, were as follows (amounts in thousands^†):

U.S. Government/Agency				All Other
Purchases		Sales		Purchases		Sales
$	58,807	$	55,490	$	12,073	$	9,180

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

ANNUAL REPORT DECEMBER 31, 2018 45

Notes to Financial Statements (Cont.)

13. SHARES OF BENEFICIAL INTEREST

The Trust may issue an unlimited number of shares of beneficial interest with a $0.001 par value. Changes in shares of beneficial interest were as follows (shares and amounts in thousands^†):

	Year Ended 12/31/2018						Year Ended 12/31/2017
	Shares			Amount			Shares			Amount
Receipts for shares sold
Institutional Class		0		$	0			0		$	0
Administrative Class		695			7,480			614			6,492
Advisor Class		1,057			11,379			375			3,954
Issued as reinvestment of distributions
Institutional Class		0			1			0			0
Administrative Class		65			638			13			140
Advisor Class		140			1,375			31			323
Cost of shares redeemed
Institutional Class		0			0			0			0
Administrative Class		(571	)		(6,006	)		(623	)		(6,575	)
Advisor Class		(1,190	)		(12,516	)		(598	)		(6,147	)
Net increase (decrease) resulting from Portfolio share transactions		196		$	2,351			(188	)	$	(1,813	)

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

As of December 31, 2018, two shareholders each owned 10% or more of the Portfolio’s total outstanding shares comprising 74% of the Portfolio.

14. REGULATORY AND LITIGATION MATTERS

The Portfolio is not named as a defendant in any material litigation or arbitration proceedings and is not aware of any material litigation or claim pending or threatened against it.

The foregoing speaks only as of the date of this report.

15. FEDERAL INCOME TAX MATTERS

The Portfolio intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code (the “Code”) and distribute all of its taxable income and net realized gains, if applicable, to shareholders. Accordingly, no provision for Federal income taxes has been made.

The Portfolio may be subject to local withholding taxes, including those imposed on realized capital gains. Any applicable foreign capital gains tax is accrued daily based upon net unrealized gains, and may be payable following the sale of any applicable investments.

In accordance with U.S. GAAP, the Adviser has reviewed the Portfolio’s tax positions for all open tax years. As of December 31, 2018, the Portfolio has recorded no liability for net unrecognized tax benefits relating to uncertain income tax positions it has taken or expects to take in future tax returns.

The Portfolio files U.S. federal, state, and local tax returns as required. The Portfolio’s tax returns are subject to examination by relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return but which can be extended to six years in certain circumstances. Tax returns for open years have incorporated no uncertain tax positions that require a provision for income taxes.

Shares of the Portfolio currently are sold to segregated asset accounts (“Separate Accounts”) of insurance companies that fund variable annuity contracts and variable life insurance policies (“Variable Contracts”). Please refer to the prospectus for the Separate Account and Variable Contract for information regarding Federal income tax treatment of distributions to the Separate Account.

46 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

As of December 31, 2018, the components of distributable taxable earnings are as follows (amounts in thousands^†):

	Undistributed Ordinary Income(1)		Undistributed Long-Term Capital Gains		Net Tax Basis Unrealized Appreciation/ (Depreciation)(2)			Other Book-to-Tax Accounting Differences(3)			Accumulated Capital Losses(4)			Qualified Late-Year Loss Deferral - Capital(5)		Qualified Late-Year Loss Deferral - Ordinary(6)
PIMCO International Bond Portfolio (Unhedged)	$	0	$	0	($	86	)	($	1	)	($	59	)	$	0	$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽¹⁾  Includes undistributed short-term capital gains, if any.

⁽²⁾  Adjusted for open wash sale loss deferrals and the accelerated recognition of unrealized gain or loss on certain futures, options and forward contracts for federal income tax, purposes. Also adjusted for differences between book and tax realized and unrealized gain (loss) on swap contracts, and straddle loss deferrals.

⁽³⁾  Represents differences in income tax regulations and financial accounting principles generally accepted in the United States of America, mainly for organizational costs.

⁽⁴⁾  Capital losses available to offset future net capital gains expire in varying amounts as shown below.

⁽⁵⁾  Capital losses realized during the period November 1, 2018 through December 31, 2018 which the Portfolio elected to defer to the following taxable year pursuant to income tax regulations.

⁽⁶⁾  Specified losses realized during the period November 1, 2018 through December 31, 2018 which the Portfolio elected to defer to the following taxable year pursuant to income tax regulations.

Under the Regulated Investment Company Modernization Act of 2010, a fund is permitted to carry forward any new capital losses for an unlimited period. Additionally, such capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term under previous law.

As of December 31, 2018, the Portfolio had the following post-effective capital losses with no expiration (amounts in thousands^†):

	Short-Term		Long-Term
PIMCO International Bond Portfolio (Unhedged)	$	0	$	59

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

As of December 31, 2018, the aggregate cost and the net unrealized appreciation/(depreciation) of investments for federal income tax purposes are as follows (amounts in thousands^†):

	Federal Tax Cost		Unrealized Appreciation		Unrealized (Depreciation)			Net Unrealized Appreciation/ (Depreciation)(7)
PIMCO International Bond Portfolio (Unhedged)	$	36,925	$	1,578	($	1,691	)	($	113	)

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽⁷⁾  Primary differences, if any, between book and tax net unrealized appreciation/(depreciation) on investments are attributable to open wash sale loss deferrals, unrealized gain or loss on certain futures, options and forward contracts, realized and unrealized gain (loss) swap contracts, and straddle loss deferrals.

For the fiscal year ended December 31, 2018 and December 31, 2017, respectively, the Portfolio made the following tax basis distributions (amounts in thousands^†):

	December 31, 2018						December 31, 2017
	Ordinary Income Distributions(8)		Long-Term Capital Gain Distributions		Return of Capital(9)		Ordinary Income Distributions(8)		Long-Term Capital Gain Distributions		Return of Capital(9)
PIMCO International Bond Portfolio (Unhedged)	$	1,696	$	216	$	102	$	463	$	0	$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽⁸⁾  Includes short-term capital gains distributed, if any.

⁽⁹⁾  A portion of the distributions made represents a tax return of capital. Return of capital distributions have been reclassified from undistributed net investment income to paid-in capital to more appropriately conform financial accounting to tax accounting.

ANNUAL REPORT DECEMBER 31, 2018 47

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of PIMCO Variable Insurance Trust and Shareholders of PIMCO International Bond Portfolio (Unhedged)

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of PIMCO International Bond Portfolio (Unhedged) (one of the portfolios constituting PIMCO Variable Insurance Trust, referred to hereafter as the “Portfolio”) as of December 31, 2018, the related statement of operations for the year ended December 31, 2018, the statement of changes in net assets for each of the two years in the period ended December 31, 2018, including the related notes, and the financial highlights for each of the five years in the period ended December 31, 2018 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Portfolio as of December 31, 2018, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended December 31, 2018 and the financial highlights for each of the five years in the period ended December 31, 2018 in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Portfolio’s management. Our responsibility is to express an opinion on the Portfolio’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Portfolio in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2018 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

Kansas City, Missouri

February 20, 2019

We have served as the auditor of one or more investment companies in PIMCO Variable Insurance Trust since 1998.

48 PIMCO VARIABLE INSURANCE TRUST

Glossary: (abbreviations that may be used in the preceding statements)

(Unaudited)

Counterparty Abbreviations:
AZD	Australia and New Zealand Banking Group	GLM	Goldman Sachs Bank USA	NGF	Nomura Global Financial Products, Inc.
BOA	Bank of America N.A.	GST	Goldman Sachs International	RBC	Royal Bank of Canada
BOS	Banc of America Securities LLC	HUS	HSBC Bank USA N.A.	RYL	Royal Bank of Scotland Group PLC
BPS	BNP Paribas S.A.	IND	Crédit Agricole Corporate and Investment Bank S.A.	SCX	Standard Chartered Bank
BRC	Barclays Bank PLC	JPM	JP Morgan Chase Bank N.A.	SOG	Societe Generale
CBK	Citibank N.A.	MSB	Morgan Stanley Bank, N.A	SSB	State Street Bank and Trust Co.
DUB	Deutsche Bank AG	MYC	Morgan Stanley Capital Services, Inc.	TOR	Toronto Dominion Bank
FBF	Credit Suisse International	MYI	Morgan Stanley & Co. International PLC	UAG	UBS AG Stamford
FICC	Fixed Income Clearing Corporation
Currency Abbreviations:
ARS	Argentine Peso	EUR	Euro	PLN	Polish Zloty
AUD	Australian Dollar	GBP	British Pound	RON	Romanian New Leu
BRL	Brazilian Real	IDR	Indonesian Rupiah	RUB	Russian Ruble
CAD	Canadian Dollar	JPY	Japanese Yen	SEK	Swedish Krona
CHF	Swiss Franc	KRW	South Korean Won	SGD	Singapore Dollar
CLP	Chilean Peso	MXN	Mexican Peso	TWD	Taiwanese Dollar
CNH	Chinese Renminbi (Offshore)	NOK	Norwegian Krone	USD (or $)	United States Dollar
COP	Colombian Peso	NZD	New Zealand Dollar	ZAR	South African Rand
DKK	Danish Krone
Exchange Abbreviations:
CBOT	Chicago Board of Trade	OTC	Over the Counter
Index/Spread Abbreviations:
BADLARPP	Argentina Badlar Floating Rate Notes	CDX.HY	Credit Derivatives Index - High Yield	US0003M	3 Month USD Swap Rate
CDX.EM	Credit Derivatives Index - Emerging Markets	CDX.IG	Credit Derivatives Index - Investment Grade
Other Abbreviations:
ABS	Asset-Backed Security	CLO	Collateralized Loan Obligation	NCUA	National Credit Union Administration
ALT	Alternate Loan Trust	EURIBOR	Euro Interbank Offered Rate	OAT	Obligations Assimilables du Trésor
BBR	Bank Bill Rate	JIBAR	Johannesburg Interbank Agreed Rate	OIS	Overnight Index Swap
BTP	Buoni del Tesoro Poliennali	KORIBOR	Korea Interbank Offered Rate	TBA	To-Be-Announced
CDI	Brazil Interbank Deposit Rate	LIBOR	London Interbank Offered Rate	TIIE	Tasa de Interés Interbancaria de Equilibrio “Equilibrium Interbank Interest Rate”
CDO	Collateralized Debt Obligation	Lunar	Monthly payment based on 28-day periods. One year consists of 13 periods.

ANNUAL REPORT DECEMBER 31, 2018 49

Federal Income Tax Information

(Unaudited)

As required by the Internal Revenue Code (the “Code”) and Treasury Regulations, if applicable, shareholders must be notified regarding the status of qualified dividend income and the dividend received deduction.

Dividend Received Deduction.  Corporate shareholders are generally entitled to take the dividend received deduction on the portion of a Fund’s dividend distribution that qualifies under tax law. The percentage of the following Portfolio’s fiscal 2018 ordinary income dividend that qualifies for the corporate dividend received deduction is set forth in the table below.

Qualified Dividend Income.  Under the Jobs and Growth Tax Relief Reconciliation Act of 2003 (the “Act”), the percentage of ordinary dividends paid during the calendar year designated as “qualified dividend income”, as defined in the Act, subject to reduced tax rates in 2018 is set forth for the Portfolio in the table below.

Qualified Interest Income and Qualified Short-Term Capital Gain (for non-U.S. resident shareholders only).  Under the American Jobs Creation Act of 2004, the amounts of ordinary dividends paid during the fiscal year ended December 31, 2018 considered to be derived from “qualified interest income,” as defined in Section 871(k)(1)(E) of the Code, and therefore designated as interest-related dividends, as defined in Section 871(k)(1)(C) of the Code are set forth in the table below. Further, the amounts of ordinary dividends paid during the fiscal year ended December 31, 2018 considered to be derived from “qualified short-term capital gain,” as defined in Section 871(k)(2)(D) of the Code, and therefore designated as qualified short-term gain dividends, as defined by Section 871(k)(2)(C) of the Code are also set forth in the table below.

	Dividend Received Deduction %		Qualified Dividend Income %		Qualified Interest Income (000s† )		Qualified Short-Term Capital Gain (000s†)
PIMCO International Bond Portfolio (Unhedged)		0.00%		0.00%	$	1,492	$	200

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

Shareholders are advised to consult their own tax advisor with respect to the tax consequences of their investment in the Trust. In January 2019, you will be advised on IRS Form 1099-DIV as to the federal tax status of the dividends and distributions received by you in calendar year 2018.

50 PIMCO VARIABLE INSURANCE TRUST

Management of the Trust

(Unaudited)

The charts below identify the Trustees and executive officers of the Trust. Unless otherwise indicated, the address of all persons below is 650 Newport Center Drive, Newport Beach, CA 92660.

The Portfolio’s Statement of Additional Information includes more information about the Trustees and Officers. To request a free copy, call PIMCO at (888) 87-PIMCO or visit the Portfolio’s website at www.pimco.com/pvit.

Name, Year of Birth and Position Held with Trust*	Term of Office and Length of Time Served†	Principal Occupation(s) During Past 5 Years	Number of Funds in Fund Complex Overseen by Trustee	Other Public Company and Investment Company Directorships Held by Trustee During the Past 5 Years
Interested Trustees1
Peter G. Strelow** (1970) Chairman of the Board and Trustee	05/2017 to present Chairman of the Board - 02/2019 to present	Managing Director and Co-Chief Operating Officer, PIMCO. President of the Trust, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Chief Administrative Officer, PIMCO.	153	Chairman and Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT.
Brent R. Harris** (1959) Trustee	08/1997 to present	Managing Director, PIMCO. Senior Vice President of the Trust, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Formerly, member of Executive Committee, PIMCO.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT; Director, StocksPLUS® Management, Inc; and member of Board of Governors, Investment Company Institute. Formerly, Chairman, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT.
Independent Trustees
George E. Borst (1948) Trustee	04/2015 to present	Executive Advisor, McKinsey & Company (since 10/14); Formerly, Executive Advisor, Toyota Financial Services (10/13-12/14); and CEO, Toyota Financial Services (1/01-9/13).	132	Trustee, PIMCO Funds and PIMCO ETF Trust; Director, MarineMax Inc.
Jennifer Holden Dunbar (1963) Trustee	04/2015 to present	Managing Director, Dunbar Partners, LLC (business consulting and investments). Formerly, Partner, Leonard Green & Partners, L.P.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT; Director, PS Business Parks; Director, Big 5 Sporting Goods Corporation.
Kym M. Hubbard (1957) Trustee	02/2017 to present	Formerly, Global Head of Investments, Chief Investment Officer and Treasurer, Ernst & Young.	132	Trustee, PIMCO Funds and PIMCO ETF Trust; Director, State Auto Financial Corporation.
Gary F. Kennedy (1955) Trustee	04/2015 to present	Formerly, Senior Vice President, General Counsel and Chief Compliance Officer, American Airlines and AMR Corporation (now American Airlines Group) (1/03-1/14).	132	Trustee, PIMCO Funds and PIMCO ETF Trust.
Peter B. McCarthy (1950) Trustee	04/2015 to present	Formerly, Assistant Secretary and Chief Financial Officer, United States Department of Treasury; Deputy Managing Director, Institute of International Finance.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Ronald C. Parker (1951) Lead Independent Trustee	07/2009 to present Lead Independent Trustee - 02/2017 to present	Director of Roseburg Forest Products Company. Formerly, Chairman of the Board, The Ford Family Foundation; and President, Chief Executive Officer, Hampton Affiliates (forestry products).	153	Lead Independent Trustee, PIMCO Funds and PIMCO ETF Trust; Trustee, PIMCO Equity Series and PIMCO Equity Series VIT.

* Unless otherwise noted, the information for the individuals listed is as of December 31, 2018.

** Effective February 13, 2019, Mr. Strelow became the Chairman of the Trust.

¹  Mr. Harris and Mr. Strelow are “interested persons” of the Trust (as that term is defined in the 1940 Act) because of their affiliations with PIMCO.

^†  Trustees serve until their successors are duly elected and qualified.

ANNUAL REPORT DECEMBER 31, 2018 51

Management of the Trust (Cont.)

(Unaudited)

Executive Officers

Name, Year of Birth and Position Held with Trust	Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years*
Peter G. Strelow (1970) President	01/2015 to present	Managing Director and Co-Chief Operating Officer, PIMCO. President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Chief Administrative Officer, PIMCO.
Joshua D. Ratner (1976)** Chief Legal Officer	11/2018 to present Vice President - Senior Counsel and Secretary 11/2013 to 11/2018 Assistant Secretary 10/2007 to 01/2011	Executive Vice President and Deputy General Counsel, PIMCO. Chief Legal Officer, PIMCO Investments LLC. Chief Legal Officer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Jennifer E. Durham (1970) Chief Compliance Officer	07/2004 to present	Managing Director and Chief Compliance Officer, PIMCO. Chief Compliance Officer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Brent R. Harris (1959) Senior Vice President	01/2015 to present President 03/2009 to 01/2015	Managing Director, PIMCO. Senior Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Formerly, member of Executive Committee, PIMCO.
Ryan G. Leshaw (1980) Vice President, Senior Counsel and Secretary	11/2018 to present Assistant Secretary 05/2012 to 11/2018	Senior Vice President and Senior Counsel, PIMCO. Vice President, Senior Counsel and Secretary, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Assistant Secretary, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Associate, Willkie Farr & Gallagher LLP.
Wu-Kwan Kit (1981) Assistant Secretary	08/2017 to present	Senior Vice President and Senior Counsel, PIMCO. Assistant Secretary, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Vice President, Senior Counsel and Secretary, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Assistant General Counsel, VanEck Associates Corp.
Stacie D. Anctil (1969) Vice President	05/2015 to present Assistant Treasurer 11/2003 to 05/2015	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
William G. Galipeau (1974) Vice President	11/2013 to present	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Eric D. Johnson (1970) Vice President	05/2011 to present	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Henrik P. Larsen (1970) Vice President	02/1999 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Bijal Y. Parikh (1978) Vice President	02/2017 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Greggory S. Wolf (1970) Vice President	05/2011 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Trent W. Walker (1974) Treasurer	11/2013 to present	Executive Vice President, PIMCO. Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Erik C. Brown (1967)** Assistant Treasurer	02/2001 to present	Executive Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Colleen D. Miller (1980)** Assistant Treasurer	02/2017 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Christopher M. Morin (1980) Assistant Treasurer	08/2016 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Jason J. Nagler (1982)** Assistant Treasurer	05/2015 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.

* The term “PIMCO-Sponsored Closed-End Funds” as used herein includes: PIMCO California Municipal Income Fund, PIMCO California Municipal Income Fund II, PIMCO California Municipal Income Fund III, PIMCO Municipal Income Fund, PIMCO Municipal Income Fund II, PIMCO Municipal Income Fund III, PIMCO New York Municipal Income Fund, PIMCO New York Municipal Income Fund II, PIMCO New York Municipal Income Fund III, PCM Fund Inc., PIMCO Corporate & Income Opportunity Fund, PIMCO Corporate & Income Strategy Fund, PIMCO Dynamic Credit and Mortgage Income Fund, PIMCO Dynamic Income Fund, PIMCO Global StocksPLUS^® & Income Fund, PIMCO High Income Fund, PIMCO Income Opportunity Fund, PIMCO Income Strategy Fund, PIMCO Income Strategy Fund II and PIMCO Strategic Income Fund, Inc.; the term “PIMCO-Sponsored Interval Funds” as used herein includes: PIMCO Flexible Credit Income Fund and PIMCO Flexible Municipal Income Fund.

** The address of these officers is Pacific Investment Management Company LLC, 1633 Broadway, New York, New York 10019.

52 PIMCO VARIABLE INSURANCE TRUST

Privacy Policy¹

(Unaudited)

The Trust^2,3 considers customer privacy to be a fundamental aspect of its relationships with shareholders and is committed to maintaining the confidentiality, integrity and security of its current, prospective and former shareholders’ non-public personal information. The Trust has developed policies that are designed to protect this confidentiality, while allowing shareholder needs to be served.

OBTAINING PERSONAL INFORMATION

In the course of providing shareholders with products and services, the Trust and certain service providers to the Trust, such as the Trust’s investment advisers or sub-advisers (“Advisers”), may obtain non-public personal information about shareholders, which may come from sources such as account applications and other forms, from other written, electronic or verbal correspondence, from shareholder transactions, from a shareholder’s brokerage or financial advisory firm, financial advisor or consultant, and/or from information captured on applicable websites.

RESPECTING YOUR PRIVACY

As a matter of policy, the Trust does not disclose any non-public personal information provided by shareholders or gathered by the Trust to non-affiliated third parties, except as required or permitted by law or as necessary for such third parties to perform their agreements with respect to the Trust. As is common in the industry, non-affiliated companies may from time to time be used to provide certain services, such as preparing and mailing prospectuses, reports, account statements and other information, conducting research on shareholder satisfaction and gathering shareholder proxies. The Trust or its affiliates may also retain non-affiliated companies to market the Trust’s shares or products which use the Trust’s shares and enter into joint marketing arrangements with them and other companies. These companies may have access to a shareholder’s personal and account information, but are permitted to use this information solely to provide the specific service or as otherwise permitted by law. In most cases, the shareholders will be clients of a third party, but the Trust may also provide a shareholder’s personal and account information to the shareholder’s respective brokerage or financial advisory firm and/or financial advisor or consultant.

SHARING INFORMATION WITH THIRD PARTIES

The Trust reserves the right to disclose or report personal or account information to non-affiliated third parties in limited circumstances where the Trust believes in good faith that disclosure is required under law, to cooperate with regulators or law enforcement authorities, to protect its rights or property, or upon reasonable request by any fund advised by PIMCO in which a shareholder has invested. In addition, the Trust may disclose information about a shareholder or a shareholder’s accounts to a non-affiliated third party at the shareholder’s request or with the consent of the shareholder.

SHARING INFORMATION WITH AFFILIATES

The Trust may share shareholder information with its affiliates in connection with servicing shareholders’ accounts, and subject to applicable law may provide shareholders with information about products and services that the Trust or its Advisers, distributors or their affiliates (“Service Affiliates”) believe may be of interest to such shareholders. The information that the Trust may share may include,

for example, a shareholder’s participation in the Trust or in other investment programs sponsored by a Service Affiliate, a shareholder’s ownership of certain types of accounts (such as IRAs), information about the Trust’s experiences or transactions with a shareholder, information captured on applicable websites, or other data about a shareholder’s accounts, subject to applicable law. The Trust’s Service Affiliates, in turn, are not permitted to share shareholder information with non-affiliated entities, except as required or permitted by law.

PROCEDURES TO SAFEGUARD PRIVATE INFORMATION

The Trust takes seriously the obligation to safeguard shareholder non-public personal information. In addition to this policy, the Trust has implemented procedures that are designed to restrict access to a shareholder’s non-public personal information to internal personnel who need to know that information to perform their jobs, such as servicing shareholder accounts or notifying shareholders of new products or services. Physical, electronic and procedural safeguards are in place to guard a shareholder’s non-public personal information.

INFORMATION COLLECTED FROM WEBSITES

Websites maintained by the Trust or its service providers may use a variety of technologies to collect information that help the Trust and its service providers understand how the website is used. Information collected from your web browser (including small files stored on your device that are commonly referred to as “cookies”) allow the websites to recognize your web browser and help to personalize and improve your user experience and enhance navigation of the website. In addition, the Trust or its Service Affiliates may use third parties to place advertisements for the Trust on other websites, including banner advertisements. Such third parties may collect anonymous information through the use of cookies or action tags (such as web beacons). The information these third parties collect is generally limited to technical and web navigation information, such as your IP address, web pages visited and browser type, and does not include personally identifiable information such as name, address, phone number or email address. If you are a registered user of the Trust’s website, the Trust or their service providers or third party firms engaged by the Trust or their service providers may collect or share information submitted by you, which may include personally identifiable information. This information can be useful to the Trust when assessing and offering services and website features. You can change your cookie preferences by changing the setting on your web browser to delete or reject cookies. If you delete or reject cookies, some website pages may not function properly. The Trust does not look for web browser “do not track” requests.

CHANGES TO THE PRIVACY POLICY

From time to time, the Trust may update or revise this privacy policy. If there are changes to the terms of this privacy policy, documents containing the revised policy on the relevant website will be updated.

¹ Amended as of February 15, 2017.

² PIMCO Investments LLC (“PI”) serves as the Trust’s distributor. This Privacy Policy applies to the activities of PI to the extent that PI regularly effects or engages in transactions with or for a Trust shareholder who is the record owner of such shares. For purposes of this Privacy Policy, references to “the Trust” shall include PI when acting in this capacity.

³ When distributing this Policy, the Trust may combine the distribution with any similar distribution of its investment adviser’s privacy policy. The distributed, combined policy may be written in the first person (i.e., by using “we” instead of “the Trust”).

ANNUAL REPORT DECEMBER 31, 2018 53

Approval of Investment Advisory Contract and Other Agreements

Approval of Renewal of the Amended and Restated Investment Advisory Contract, Supervision and Administration Agreement and Amended and Restated Asset Allocation Sub-Advisory Agreement

At a meeting held on August 20-21, 2018, the Board of Trustees (the “Board”) of PIMCO Variable Insurance Trust (the “Trust”), including the Trustees who are not “interested persons” of the Trust under the Investment Company Act of 1940, as amended (the “Independent Trustees”), considered and unanimously approved the renewal of the Amended and Restated Investment Advisory Contract (the “Investment Advisory Contract”) between the Trust, on behalf of each of the Trust’s series (the “Portfolios”), and Pacific Investment Management Company LLC (“PIMCO”) for an additional one-year term through August 31, 2019. The Board also considered and unanimously approved the renewal of the Supervision and Administration Agreement (together with the Investment Advisory Contract, the “Agreements”) between the Trust, on behalf of the Portfolios, and PIMCO for an additional one-year term through August 31, 2019. In addition, the Board considered and unanimously approved the renewal of the Amended and Restated Asset Allocation Sub-Advisory Agreement (the “Asset Allocation Agreement”) between PIMCO, on behalf of PIMCO All Asset Portfolio and PIMCO All Asset All Authority Portfolio, each a series of the Trust, and Research Affiliates, LLC (“Research Affiliates”) for an additional one-year term through August 31, 2019.

The information, material factors and conclusions that formed the basis for the Board’s approvals are summarized below.

1. INFORMATION RECEIVED

(a) Materials Reviewed:  During the course of the past year, the Trustees received a wide variety of materials relating to the services provided by PIMCO and Research Affiliates to the Trust. At each of its quarterly meetings, the Board reviewed the Portfolios’ investment performance and a significant amount of information relating to Portfolio operations, including shareholder services, valuation and custody, the Portfolios’ compliance program and other information relating to the nature, extent and quality of services provided by PIMCO and Research Affiliates to the Trust and each of the Portfolios, as applicable. In considering whether to approve the renewal of the Agreements and the Asset Allocation Agreement, the Board reviewed additional information, including, but not limited to, comparative industry data with regard to investment performance, advisory and supervisory and administrative fees and expenses, financial information for PIMCO and, where relevant, Research Affiliates, information regarding the profitability to PIMCO of its relationship with the Portfolios, information about the personnel providing investment management services, other advisory services and supervisory and administrative services to the Portfolios, and information about the fees

charged and services provided to other clients with similar investment mandates as the Portfolios, where applicable. In addition, the Board reviewed materials provided by counsel to the Trust and the Independent Trustees, which included, among other things, memoranda outlining legal duties of the Board in considering the renewal of the Agreements and the Asset Allocation Agreement.

(b) Review Process:  In connection with considering the renewal of the Agreements and the Asset Allocation Agreement, the Board reviewed written materials prepared by PIMCO and, where applicable, Research Affiliates in response to requests from counsel to the Trust and the Independent Trustees encompassing a wide variety of topics. The Board requested and received assistance and advice regarding, among other things, applicable legal standards from counsel to the Trust and the Independent Trustees, and reviewed comparative fee and performance data prepared at the Board’s request by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company performance information and fee and expense data. The Board received information on matters related to the Agreements and the Asset Allocation Agreement and met both as a full Board and in a separate session of the Independent Trustees, without management present, at the August 20-21, 2018 meeting. The Independent Trustees also conducted in-person meetings with counsel to the Trust and the Independent Trustees, including one on July 18, 2018, to discuss the Lipper Report, as defined below, and certain aspects of the 2018 15(c) materials presented and other matters deemed relevant to their consideration of the renewal of the Agreements and the Asset Allocation Agreement. In connection with its review of the Agreements, the Board received comparative information on the performance and the fees and expenses of other peer group funds and share classes. In addition, the Independent Trustees requested and received supplemental information.

The approval determinations were made on the basis of each Trustee’s business judgment after consideration and evaluation of all the information presented. Individual Trustees may have given different weights to certain factors and assigned various degrees of materiality to information received in connection with the approval process. In deciding to approve the renewal of the Agreements and the Asset Allocation Agreement, the Board did not identify any single factor or particular information that, in isolation, was controlling. The discussion below is intended to summarize the broad factors and information that figured prominently in the Board’s consideration of the renewal of the Agreements and the Asset Allocation Agreement, but is not intended to summarize all of the factors considered by the Board.

2. NATURE, EXTENT AND QUALITY OF SERVICES

(a) PIMCO, Research Affiliates, their Personnel, and Resources:  The Board considered the depth and quality of PIMCO’s investment management process, including: the experience, capability and integrity

54 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

of its senior management and other personnel; the overall financial strength and stability of its organization; and the ability of its organizational structure to address changes in the Portfolios’ asset levels. The Board also considered the various services in addition to portfolio management that PIMCO provides under the Investment Advisory Contract. The Board noted that PIMCO makes available to its investment professionals a variety of resources and systems relating to investment management, compliance, trading, performance and portfolio accounting. The Board also noted PIMCO’s commitment to enhancing and investing in its global infrastructure, technology capabilities, risk management processes and the specialized talent needed to stay at the forefront of the competitive investment management industry and to strengthen its ability to deliver services under the Agreements. The Board considered PIMCO’s policies, procedures and systems reasonably designed to assure compliance with applicable laws and regulations and its commitment to further developing and strengthening these programs, its oversight of matters that may involve conflicts of interest between the Portfolios’ investments and those of other accounts managed by PIMCO, and its efforts to keep the Trustees informed about matters relevant to the Portfolios and their shareholders. The Board also considered PIMCO’s continuous investment in new disciplines and talented personnel, which has enhanced PIMCO’s services to the Portfolios and has allowed PIMCO to introduce innovative new portfolios over time. In addition, the Board considered the nature and quality of services provided by PIMCO to the wholly-owned subsidiaries of certain applicable Portfolios.

The Trustees considered that PIMCO has continued to strengthen the process it uses to actively manage counterparty risk and to assess the financial stability of counterparties with which the Portfolios do business, to manage collateral and to protect Portfolios from an unforeseen deterioration in the creditworthiness of trading counterparties. The Trustees noted that, consistent with its fiduciary duty, PIMCO executes transactions through a competitive best execution process and uses only those counterparties that meet its stringent and monitored criteria. The Trustees considered that PIMCO’s collateral management team utilizes a counterparty risk system to analyze portfolio level exposure and collateral being exchanged with counterparties.

In addition, the Trustees considered new services and service enhancements that PIMCO has implemented since the Board renewed the Agreements in 2017, including, but not limited to upgrading the global network and infrastructure to support trading and risk management systems; enhancing and continuing to expand capabilities within the pre-trade compliance platform; enhancing flexible client reporting capabilities to support increased differentiation within local markets; developing new application and database frameworks to support new trading strategies; expanding proprietary applications

suites to enrich capabilities across Compliance, Analytics, Risk Management, Client Reporting, Attribution and Customer Relationship management; continuing investment in its enterprise risk management function, including PIMCO’s cybersecurity program and global business continuity functions; oversight by the Americas Fund Oversight Committee, which provides senior-level oversight and supervision focused on new and ongoing fund-related business opportunities; engaging a third party service provider to implement the SEC reporting modernization regime; expanding the Fund Treasurer’s Office; enhancing a proprietary application to provide portfolio managers with more timely and high quality income reporting; developing a global tax management application that will enable investment professionals to access foreign market and security tax information on a real-time basis; enhancing reporting of tax reporting for portfolio managers for income products with improved transparency on tax factors impacting income generation and dividend yield; upgrading a proprietary application to allow shareholder subscription and redemption data to pass to portfolio managers more quickly and efficiently; and continuing to expand the pricing portal and the proprietary performance reconciliation tool.

Similarly, the Board considered the asset allocation services provided by Research Affiliates to the PIMCO All Asset Portfolio and PIMCO All Asset All Authority Portfolio. The Board further considered PIMCO’s oversight of Research Affiliates in connection with Research Affiliates providing asset allocation services to the Asset Portfolio and All Asset All Authority Portfolio. The Board also considered the depth and quality of Research Affiliates’ investment management and research capabilities, the experience and capabilities of its portfolio management personnel and the overall financial strength of the organization.

Ultimately, the Board concluded that the nature, extent and quality of services provided or procured by PIMCO under the Agreements and provided by Research Affiliates under the Asset Allocation Agreement are likely to continue to benefit the Portfolios and their respective shareholders, as applicable.

(b) Other Services:  The Board also considered the nature, extent and quality of supervisory and administrative services provided by PIMCO to the Portfolios under the Supervision and Administration Agreement.

The Board considered the terms of the Supervision and Administration Agreement, under which the Trust pays for the supervisory and administrative services provided pursuant to that agreement under what is essentially an all-in fee structure (the “unified fee”). In return, PIMCO provides or procures certain supervisory and administrative services and bears the costs of various third party services required by the Portfolios, including audit, custodial, portfolio accounting, legal, transfer agency, sub-accounting and printing costs. The Board noted that the scope and complexity, as well as the costs, of the supervisory

ANNUAL REPORT DECEMBER 31, 2018 55

Approval of Investment Advisory Contract and Other Agreements (Cont.)

and administrative services provided by PIMCO under the Supervision and Administration Agreement continue to increase. The Board considered PIMCO’s provision of supervisory and administrative services and its supervision of the Trust’s third party service providers to assure that these service providers continue to provide a high level of service relative to alternatives available in the market.

Ultimately, the Board concluded that the nature, extent and quality of the services provided by PIMCO has benefited, and will likely continue to benefit, the Portfolios and their shareholders.

3. INVESTMENT PERFORMANCE

The Board reviewed information from PIMCO concerning the Portfolios’ performance, as available, over short- and long-term periods ended March 31, 2018 and other performance data, as available, over short- and long-term periods ended June 30, 2018 (the “PIMCO Report”) and from Broadridge concerning the Portfolios’ performance, as available, over short- and long-term periods ended March 31, 2018 (the “Lipper Report”).

The Board considered information regarding both the short- and long-term investment performance of each Portfolio relative to its peer group and relevant benchmark index as provided to the Board in advance of each of its quarterly meetings throughout the year, including the PIMCO Report and Lipper Report, which were provided in advance of the August 20-21, 2018 meeting. The Trustees noted that many of the Portfolios outperformed their respective Lipper medians on a net-of-fees basis over the three-, five- and ten-year periods ended March 31, 2018. The Board also noted that, as of March 31, 2018, the Administrative Class of 72%, 35% and 73% of the Portfolios outperformed their respective Lipper category median on a net-of-fees basis over the three-, five- and ten-year periods, respectively. The Trustees considered that other classes of each Portfolio would have substantially similar performance to that of the Administrative Class of the relevant Portfolio on a relative basis because all of the classes are invested in the same portfolio of investments and that differences in performance among classes could principally be attributed to differences in the supervisory and administrative fees and distribution and servicing expenses of each class. The Board also considered that the investment objectives of certain of the Portfolios may not always be identical to those of the other funds in their respective peer groups and that the Lipper categories do not: separate funds based upon maturity or duration; account for the applicable Portfolios’ hedging strategies; distinguish between enhanced index and actively managed equity strategies; include as many subsets as the Portfolios offer (i.e., Portfolios may be placed in a “catch-all” Lipper category to which they do not properly belong); or account for certain fee waivers. The Board noted that, due to these differences, performance comparisons between certain of the Portfolios and their so-called peers may not be

particularly relevant to the consideration of Portfolio performance but found the comparative information supported its overall evaluation.

The Board noted that performance for a majority of the Portfolios has been mixed compared to their respective benchmark indexes over the five-year period ended March 31, 2018. The Board noted that, as of March 31, 2018, 70%, 23% and 92% of the Trust’s assets (based on Administrative Class performance) outperformed their respective benchmarks on a net-of-fees basis over the three-, five- and ten-year periods, respectively. The Board also discussed actions that have been taken by PIMCO to attempt to improve performance and took note of PIMCO’s plans to monitor performance going forward.

The Board considered PIMCO’s discussion of the intensive nature of managing bond funds, noting that it requires the management of a number of factors, including: varying maturities; prepayments; collateral management; counterparty management; pay-downs; credit and corporate events; workouts; derivatives; net new issuance in the bond market; and decreased market maker inventory levels. The Board noted that in addition to managing these factors, PIMCO must also balance risk controls and strategic positions in each portfolio it manages, including the Portfolios. Despite these challenges, the Board noted PIMCO’s ability to generate non-market correlated excess performance for its clients over time, including the Trust.

The Board ultimately concluded, within the context of all of its considerations in connection with the Agreements, that PIMCO’s performance record and process in managing the Portfolios indicates that its continued management is likely to benefit the Portfolios and their shareholders, and merits the approval of the renewal of the Agreements.

4. ADVISORY FEES, SUPERVISORY AND ADMINISTRATIVE FEES AND TOTAL EXPENSES

The Board considered that PIMCO seeks to price new funds and classes to scale. PIMCO reported to the Board that, in proposing fees for any Portfolio or class of shares, it considers a number of factors, including, but not limited to, the type and complexity of the services provided, the cost of providing services, the risk assumed by PIMCO in the development of products and the provision of services and the competitive marketplace for financial products. Fees charged to or proposed for different Portfolios for advisory services and supervisory and administrative services may vary in light of these various factors. The Board considered that portfolio pricing generally is not driven by comparison to passively-managed products.

In addition, PIMCO reported to the Board that it periodically reviews the fees charged to the Portfolios. The Board noted that, based upon this review, PIMCO may propose advisory fee or supervisory and administrative fee changes where (i) a Portfolio’s long-term performance warrants additional consideration; (ii) there is a notable aid to market

56 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

position; (iii) a Portfolio’s fee does not reflect the current level of supervision or administrative fees provided to the Portfolio; or (iv) PIMCO would like to change a Portfolio’s overall strategic positioning.

The Board reviewed the advisory fees, supervisory and administrative fees and total expenses of the Portfolios (each as a percentage of average net assets) and compared such amounts with the average and median fee and expense levels of other similar funds. The Board also reviewed information relating to the sub-advisory fees paid to Research Affiliates with respect to applicable Portfolios, taking into account that PIMCO compensates Research Affiliates from the advisory fees paid by such Portfolios to PIMCO. With respect to advisory fees, the Board reviewed data from Broadridge that compared the average and median advisory fees of other funds in a “Peer Group” of comparable funds, as well as the universe of other similar funds. The Board noted that a number of Portfolios have total expense ratios that fall below the average and median expense ratios in their Peer Group and Lipper universe. In addition, the Board considered fee waivers in place for certain of the Portfolios and also noted the fee waivers in place with respect to the advisory fee and supervisory and administrative fee that might result from investments by applicable Portfolios in their respective wholly-owned subsidiaries. The Board also considered that PIMCO reviews the Portfolios’ fee levels and carefully considers changes where appropriate.

The Board also reviewed data comparing the Portfolios’ advisory fees to the standard and negotiated fee rates PIMCO charges to separate accounts, collective investment trusts and sub-advised clients with similar investment strategies. In cases where the fees for other clients were lower than those charged to the Portfolios, the Trustees noted that the differences in fees were attributable to various factors, including, but not limited to, differences in the advisory and other services provided by PIMCO to the Portfolios, differences in the number or extent of the services provided by PIMCO to the Portfolios, the manner in which similar portfolios may be managed, different requirements with respect to liquidity management and the implementation of other regulatory requirements, and the fact that separate accounts may have other contractual arrangements or arrangements across PIMCO strategies that justify different levels of fees. The Board considered that, with respect to collective investment trusts, PIMCO performs fewer or less extensive services because collective investment trusts are generally exempt from SEC regulation; investors in a collective investment trust may receive shareholder services from a trustee bank, rather than PIMCO; collective investment trusts have less regulatory disclosure; and the management structure of collective investment trusts differs from that of funds. The Trustees also considered that PIMCO faces increased entrepreneurial, legal and regulatory risk in sponsoring and managing mutual funds and ETFs as compared to separate accounts, external sub-advised funds or other investment products.

Regarding advisory fees charged by PIMCO in its capacity as sub-adviser to third party/unaffiliated funds, the Trustees took into account that such fees may be lower than the fees charged by PIMCO to serve as adviser to the Portfolios. The Trustees also took into account that there are various reasons for any such differences in fees, including, but not limited to, the fact that PIMCO may be subject to varying levels of entrepreneurial risk and regulatory requirements, differing legal liabilities on a contract-by-contract basis and different servicing requirements when PIMCO does not serve as the sponsor of a fund and is not principally responsible for all aspects of a fund’s investment program and operations as compared to when PIMCO serves as investment adviser and sponsor.

The Board considered the Portfolios’ supervisory and administrative fees, comparing them to similar funds in the report supplied by Broadridge. The Board also considered that as the Portfolios’ business has become increasingly complex and the number of Portfolios has grown over time, PIMCO has provided an increasingly broad array of fund supervisory and administrative functions. In addition, the Board considered the Trust’s unified fee structure, under which the Trust pays for the supervisory and administrative services it requires for one set fee. In return for this unified fee, PIMCO provides or procures supervisory and administrative services and bears the costs of various third party services required by the Portfolios, including audit, custodial, portfolio accounting, legal, transfer agency, sub-accounting and printing costs. The Board further considered that many other funds pay for comparable services separately, and thus it is difficult to directly compare the Trust’s unified supervisory and administrative fees with the fees paid by other funds for administrative services alone. The Board also considered that the unified supervisory and administrative fee leads to Portfolio fees that are fixed over the contract period, rather than variable. The Board noted that, although the unified fee structure does not have breakpoints, it implicitly reflects economies of scale by fixing the absolute level of Portfolio fees at competitive levels over the contract period even if the Portfolios’ operating costs rise when assets remain flat or decrease. Other factors the Board considered in assessing the unified fee include PIMCO’s approach of pricing Portfolios to scale at inception and reinvesting in other important areas of the business that support the Portfolios. The Board considered that the Portfolios’ unified fee structure meant that fees were not impacted by recent outflows in certain Portfolios, unlike funds without a unified fee structure, which may see increased expense ratios when fixed costs, such as service provider costs, are passed through to a smaller asset base. The Board considered historical advisory and supervisory and administrative fee reductions implemented for different Portfolios and classes, noting that the unified fee can be increased or decreased in subsequent contractual periods and is subject to the periodic reviews discussed above. The Board noted that, with few exceptions, PIMCO

ANNUAL REPORT DECEMBER 31, 2018 57

Approval of Investment Advisory Contract and Other Agreements (Cont.)

has generally maintained Portfolio fees at the same level as implemented when the unified fee was adopted, and has reduced fees for a number of Portfolios in prior years. The Board concluded that the Portfolios’ supervisory and administrative fees were reasonable in relation to the value of the services provided, including the services provided to different classes of shareholders, and that the expenses assumed contractually by PIMCO under the Supervision and Administration Agreement represent, in effect, a cap on overall Portfolio fees during the contractual period, which is beneficial to the Portfolios and their shareholders.

The Board considered the Portfolios’ total expenses and discussed with PIMCO those Portfolios and/or classes of Portfolios that had above median total expenses. The Board noted that many of the Portfolios are unique products that have few peers, if any, and cannot easily be grouped with comparable funds. Upon comparing the Portfolios’ total expenses to other funds in the “Peer Groups” provided by Broadridge, the Board found total expenses of each Portfolio to be reasonable.

The Trustees also considered the advisory fees charged to the Portfolios that operate as funds of funds (the “Funds of Funds”) and the advisory services provided in exchange for such fees. The Trustees determined that such services were in addition to the advisory services provided to the underlying funds in which the Funds of Funds may invest and, therefore, such services were not duplicative of the advisory services provided to the underlying funds. The Board also considered the various fee waiver agreements in place for the Funds of Funds. The Board noted that PIMCO is continuing waivers for these Funds of Funds, as well as for certain other Portfolios of the Trust.

Based on the information presented by PIMCO, Research Affiliates and Broadridge, members of the Board determined, in the exercise of their business judgment, that the level of the advisory fees and supervisory and administrative fees charged by PIMCO under the Agreements, as well as the total expenses of each Portfolio, after the proposals to decrease the management fee, are reasonable.

5. ADVISER COSTS, LEVEL OF PROFITS AND ECONOMIES OF SCALE

The Board reviewed information regarding PIMCO’s costs of providing services to the Funds as a whole, as well as the resulting level of profits to PIMCO under both the adjusted asset profitability method and the profit and loss profitability method, which were each utilized to calculate profitability. To the extent applicable, the Board also reviewed information regarding the portion of a Portfolio’s advisory fee retained by PIMCO, following the payment of sub-advisory fees to Research Affiliates, with respect to the Portfolio. Additionally, the Board noted that profit margins with respect to the Trust shows that the Trust is profitable, although less so than PIMCO Funds due to payments made

by PIMCO to participating insurance companies. The Board further noted PIMCO’s engagement of a third party to review and to make recommendations regarding PIMCO’s processes supporting its profitability estimation materials. The Board also noted that it had received information regarding the structure and manner in which PIMCO’s investment professionals were compensated, and PIMCO’s view of the relationship of such compensation to the attraction and retention of quality personnel. The Board considered PIMCO’s need to invest in global infrastructure, technology capabilities, risk management processes and qualified personnel to reinforce and offer new services and to accommodate changing regulatory requirements.

With respect to potential economies of scale, the Board noted that PIMCO shares the benefits of economies of scale with the Portfolios and their shareholders in a number of ways, including investing in portfolio and trade operations management, firm technology, middle and back office support, legal and compliance, and fund administration logistics, senior management supervision, governance and oversight of those services, and through fee reductions or waivers, the pricing of Portfolios to scale from inception, and the enhancement of services provided to the Portfolios in return for fees paid. The Board reviewed the history of the Portfolios’ fee structure. The Board considered that the Portfolios’ unified fee rates had been set competitively and/or priced to scale from inception, had been held steady during the contractual period at that scaled competitive rate for most Portfolios as assets grew, or as assets declined in the case of some Portfolios, and continued to be competitive compared with peers. The Board also considered that the unified fee is a transparent means of informing a Portfolio’s shareholders of the fees associated with the Portfolio, and that the Portfolio bears certain expenses that are not covered by the advisory fee or the unified fee. The Board further considered the challenges that arise when managing large funds, which can result in certain “diseconomies” of scale and noted that PIMCO has continued to reinvest in many areas of the business to support the Portfolios.

The Trustees considered that the unified fee has provided inherent economies of scale because a Portfolio maintains competitive fixed fees over the annual contract period even if the particular Portfolio’s assets decline and/or operating costs rise. The Trustees further considered that, in contrast, breakpoints may be a proxy for charging higher fees on lower asset levels and that when a fund’s assets decline, breakpoints may reverse, which causes expense ratios to increase. The Trustees also considered that, unlike the Portfolios’ unified fee structure, funds with “pass through” administrative fee structures may experience increased expense ratios when fixed dollar fees are charged against declining fund assets. The Trustees also considered that the unified fee protects shareholders from a rise in operating costs that may result from, among other things, PIMCO’s investments in various business enhancements and infrastructure, including those referenced above. The Trustees noted that PIMCO’s investments in these areas are extensive.

58 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

The Board concluded that the Portfolios’ cost structures were reasonable and that PIMCO is appropriately sharing economies of scale, if any, through the Portfolios’ unified fee structure, generally pricing Portfolios to scale at inception and reinvesting in its business to provide enhanced and expanded services to the Portfolios and their shareholders.

6. ANCILLARY BENEFITS

The Board considered other benefits realized by PIMCO and its affiliates as a result of PIMCO’s relationship with the Trust. Such benefits may include possible ancillary benefits to PIMCO’s institutional investment management business due to the reputation and market penetration of the Trust or third party service providers’ relationship-level fee concessions, which decrease fees paid by PIMCO. The Board also considered that affiliates of PIMCO provide distribution and/or shareholder services to the Portfolios and their shareholders, for which they may be compensated through distribution and servicing fees paid pursuant to the Portfolios’ Rule 12b-1 plans or otherwise. The Board reviewed PIMCO’s soft dollar policies and procedures, noting that while PIMCO has the authority to receive the benefit of research provided by broker-dealers executing portfolio transactions on behalf of the Portfolios, it has adopted a policy not to enter into contractual soft dollar arrangements.

7. CONCLUSIONS

Based on their review, including their comprehensive consideration and evaluation of each of the broad factors and information summarized above, the Independent Trustees and the Board as a whole concluded that the nature, extent and quality of the services rendered to the Portfolios by PIMCO and Research Affiliates supported the renewal of the Agreements and the Asset Allocation Agreement. The Independent Trustees and the Board as a whole concluded that the Agreements and the Asset Allocation Agreement continued to be fair and reasonable to the Portfolios and their shareholders, that the Portfolios’ shareholders received reasonable value in return for the fees paid to PIMCO by the Portfolios under the Agreements and the fees paid to Research Affiliates by PIMCO under the Asset Allocation Agreement, and that the renewal of the Agreements and the Asset Allocation Agreement was in the best interests of the Portfolios and their shareholders.

ANNUAL REPORT DECEMBER 31, 2018 59

General Information

Investment Adviser and Administrator

Pacific Investment Management Company LLC

650 Newport Center Drive

Newport Beach, CA 92660

Distributor

PIMCO Investments LLC

1633 Broadway

New York, NY 10019

Custodian

State Street Bank and Trust Company

801 Pennsylvania Avenue

Kansas City, MO 64105

Transfer Agent

DST Asset Manager Solutions, Inc.

430 W 7th Street STE 219024

Kansas City, MO 64105-1407

Legal Counsel

Dechert LLP

1900 K Street, N.W.

Washington, D.C. 20006

Independent Registered Public Accounting Firm

PricewaterhouseCoopers LLP

1100 Walnut Street, Suite 1300

Kansas City, MO 64106

This report is submitted for the general information of the shareholders of the PIMCO Variable Insurance Trust.

pimco.com/pvit

PVIT05AR_123118

PIMCO VARIABLE INSURANCE TRUST

Annual Report

December 31, 2018

PIMCO Long-Term U.S. Government Portfolio

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, you may not be receiving paper copies of the Portfolio’s shareholder reports from the insurance company that offers your contract unless you specifically request paper copies from the insurance company or from your financial intermediary. Instead, the shareholder reports will be made available on a website, and the insurance company will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the insurance company electronically by following the instructions provided by the insurance company.

You may elect to receive all future reports in paper free of charge from the insurance company. You should contact the insurance company if you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all portfolio companies available under your contract at the insurance company.

Table of Contents

	Page
Chairman’s Letter		2
Important Information About the PIMCO Long-Term U.S. Government Portfolio		4
Portfolio Summary		6
Expense Example		7
Financial Highlights		8
Statement of Assets and Liabilities		10
Statement of Operations		11
Statements of Changes in Net Assets		12
Statement of Cash Flows		13
Schedule of Investments		14
Notes to Financial Statements		21
Report of Independent Registered Public Accounting Firm		37
Glossary		38
Federal Income Tax Information		39
Management of the Trust		40
Privacy Policy		42
Approval of Investment Advisory Contract and Other Agreements		43

This material is authorized for use only when preceded or accompanied by the current PIMCO Variable Insurance Trust (the “Trust”) prospectus for the Portfolio. (The variable product prospectus may be obtained by contacting your Investment Consultant.)

Chairman’s Letter

Dear PIMCO Variable Insurance Trust Shareholder,

Following this letter is the PIMCO Variable Insurance Trust Annual Report, which covers the 12-month reporting period ended December 31, 2018. On the subsequent pages you will find specific details regarding investment results and discussion of the factors that most affected performance during the reporting period.

For the 12-month reporting period ended December 31, 2018

The U.S. economy continued to expand during the reporting period. Looking back, U.S. gross domestic product (“GDP”) grew at an annual pace of 2.2% during the first quarter of 2018. During the second quarter of 2018, GDP growth rose to an annual pace of 4.2%, the strongest since the third quarter of 2014. GDP then expanded at an annual pace of 3.4% during the third quarter of the year. Finally, the Commerce Department’s initial reading for fourth-quarter 2018 GDP has been delayed due to the partial government shutdown.

The Federal Reserve (the “Fed”) continued to normalize monetary policy during the reporting period. During its meetings that concluded in March, June, September and December 2018, the Fed raised the federal funds rate in 0.25% increments. The Fed’s December rate hike pushed the federal funds rate to a range between 2.25% and 2.50%. In addition, the Fed continued to reduce its balance sheet during the reporting period.

Economic activity outside the U.S. initially accelerated during the reporting period, but moderated as it progressed. Against this backdrop, the European Central Bank (the “ECB”) and the Bank of Japan largely maintained their highly accommodative monetary policies, while other central banks took a more hawkish stance. The Bank of England raised rates at its meeting in August 2018 and the Bank of Canada raised rates twice during the reporting period. Meanwhile, the ECB ended its quantitative easing program in December 2018, but indicated that it does not expect to raise interest rates “at least through the summer of 2019.”

The U.S. Treasury yield curve flattened during the reporting period as short-term rates moved up more than longer-term rates. In our view, the increase in rates at the short end of the yield curve was mostly due to Fed interest rate increases. The yield on the benchmark 10-year U.S. Treasury note was 2.69% at the end of the reporting period, up from 2.40% on December 31, 2017. U.S. Treasuries, as measured by the Bloomberg Barclays U.S. Treasury Index, returned 0.86% over the 12 months ended December 31, 2018. Meanwhile, the Bloomberg Barclays U.S. Aggregate Bond Index, a widely used index of U.S. investment grade bonds, returned 0.01% over the period. Riskier fixed income asset classes, including high yield corporate bonds and emerging market debt, generated weak results versus the broad U.S. market. The ICE BofAML U.S. High Yield Index returned -2.27% over the reporting period, whereas emerging market external debt, as represented by the JPMorgan Emerging Markets Bond Index (EMBI) Global, returned -4.61% over the reporting period. Emerging market local bonds, as represented by the JPMorgan Government Bond Index-Emerging Markets Global Diversified Index (Unhedged), returned -6.21% over the period.

Global equities produced poor results during the reporting period. U.S. equities moved sharply higher over the first nine months of the period. We believe this rally was driven by a number of factors, including corporate profits that often exceeded expectations. However, U.S. equities fell sharply during the fourth quarter of 2018. We believe this was triggered by a number of factors, including signs of moderating global growth, concerns over future Fed rate hikes, the ongoing trade dispute between the U.S. and China and the partial U.S. government shutdown. All told, U.S. equities, as represented by the S&P 500 Index, returned -4.38% during the reporting period. Elsewhere, emerging market equities, as measured by the MSCI Emerging Markets Index, returned -14.58% during the reporting period, whereas global equities, as represented by the MSCI World Index, returned -8.71%. Elsewhere, Japanese equities, as represented by the Nikkei 225 Index (in JPY), returned -10.39% during the reporting period and European equities, as represented by the MSCI Europe Index (in EUR), returned -10.57%.

Commodity prices fluctuated and generally declined during the reporting period. When the reporting period began, West Texas crude oil was approximately $65 a barrel, but by the end it was roughly $45 a barrel. This was driven in

2 PIMCO VARIABLE INSURANCE TRUST

part by increased supply and declining global demand. Elsewhere, gold and copper prices also moved lower during the reporting period.

Finally, during the reporting period the foreign exchange markets experienced periods of volatility, due in part to signs of decoupling economic growth and central bank policies, along with a number of geopolitical events. The U.S. dollar produced mixed results against other major currencies during the reporting period. For example, the U.S. dollar appreciated 4.71% and 5.90% versus the euro and the British pound, respectively, whereas the U.S. dollar depreciated 2.66% versus the yen during the reporting period.

Thank you for the assets you have placed with us. We deeply value your trust, and we will continue to work diligently to meet your broad investment needs.

Sincerely,     Brent R. Harris Chairman of the Board,
PIMCO Variable Insurance Trust  

Past performance is no guarantee of future results. Unless otherwise noted, index returns reflect the reinvestment of income distributions and capital gains, if any, but do not reflect fees, brokerage commissions or other expenses of investing. It is not possible to invest directly in an unmanaged index.

ANNUAL REPORT DECEMBER 31, 2018 3

Important Information About the PIMCO Long-Term U.S. Government Portfolio

PIMCO Variable Insurance Trust (the “Trust”) is an open-end management investment company that includes the PIMCO Long-Term U.S. Government Portfolio (the “Portfolio”). The Portfolio is only available as a funding vehicle under variable life insurance policies or variable annuity contracts issued by insurance companies (“Variable Contracts”). Individuals may not purchase shares of the Portfolio directly. Shares of the Portfolio also may be sold to qualified pension and retirement plans outside of the separate account context.

We believe that bond funds have an important role to play in a well- diversified investment portfolio. It is important to note, however, that in an environment where interest rates may trend upward, rising rates would negatively impact the performance of most bond funds, and fixed income securities and other instruments held by the Portfolio are likely to decrease in value. A wide variety of factors can cause interest rates to rise (e.g., central bank monetary policies, inflation rates, general economic conditions, etc.). In addition, changes in interest rates can be sudden and unpredictable, and there is no guarantee that management will anticipate such movement accurately. The Portfolio may lose money as a result of movements in interest rates.

As of the date of this report, interest rates in the U.S. and many parts of the world, including certain European countries, are at or near historically low levels. Thus, the Portfolio currently faces a heightened level of interest rate risk, especially since the Fed has ended its quantitative easing program and has begun, and may continue, to raise interest rates. To the extent the Fed continues to raise interest rates, there is a risk that rates across the financial system may rise. Further, while bond markets have steadily grown over the past three decades, dealer inventories of corporate bonds are near historic lows in relation to market size. As a result, there has been a significant reduction in the ability of dealers to “make markets.”

Bond funds and individual bonds with a longer duration (a measure used to determine the sensitivity of a security’s price to changes in interest rates) tend to be more sensitive to changes in interest rates, usually making them more volatile than securities or funds with shorter durations. All of the factors mentioned above, individually or collectively, could lead to increased volatility and/or lower liquidity in the fixed income markets or negatively impact the Portfolio’s performance or cause the Portfolio to incur losses. As a result, the Portfolio may

experience increased shareholder redemptions, which, among other things, could further reduce the net assets of the Portfolio.

The Portfolio may be subject to various risks as described in the Portfolio’s prospectus and in the Principal Risks in the Notes to Financial Statements.

The geographical classification of foreign (non-U.S.) securities in this report are classified by the country of incorporation of a holding. In certain instances, a security’s country of incorporation may be different from its country of economic exposure.

The United States presidential administration’s enforcement of tariffs on goods from other countries, with a focus on China, has contributed to international trade tensions and may impact portfolio securities.

The United Kingdom’s decision to leave the European Union may impact Portfolio returns. This decision may cause substantial volatility in foreign exchange markets, lead to weakness in the exchange rate of the British pound, result in a sustained period of market uncertainty, and destabilize some or all of the other European Union member countries and/or the Eurozone.

On the Portfolio Summary page in this Shareholder Report, the Average Annual Total Return table and Cumulative Returns chart measure performance assuming that any dividend and capital gain distributions were reinvested. The Cumulative Returns chart reflects only Administrative Class performance. Performance may vary by share class based on each class’s expense ratios. The Portfolio measures its performance against at least one broad-based securities market index (“benchmark index”). The benchmark index does not take into account fees, expenses, or taxes. The Portfolio’s past performance, before and after taxes, is not necessarily an indication of how the Portfolio will perform in the future. There is no assurance that the Portfolio, even if the Portfolio has experienced high or unusual performance for one or more periods, will experience similar levels of performance in the future. High performance is defined as a significant increase in either 1) the Portfolio’s total return in excess of that of the Portfolio’s benchmark between reporting periods or 2) the Portfolio’s total return in excess of the Portfolio’s historical returns between reporting periods. Unusual performance is defined as a significant change in the Portfolio’s performance as compared to one or more previous reporting periods.

The following table discloses the inception dates of the Portfolio and its respective share classes along with the Portfolio’s diversification status as of period end:

Portfolio Name	Portfolio Inception		Institutional Class		Administrative Class		Advisor Class		Diversification Status
PIMCO Long-Term U.S. Government Portfolio		04/30/99		04/10/00		04/30/99		09/30/09		Diversified

4 PIMCO VARIABLE INSURANCE TRUST

An investment in the Portfolio is not a bank deposit and is not guaranteed or insured by the Federal Deposit Insurance Corporation (“FDIC”) or any other government agency. It is possible to lose money on investments in the Portfolio.

The Trustees are responsible generally for overseeing the management of the Trust. The Trustees authorize the Trust to enter into service agreements with the Adviser, the Distributor, the Administrator and other service providers in order to provide, and in some cases authorize service providers to procure through other parties, necessary or desirable services on behalf of the Trust and the Portfolio. Shareholders are not parties to or third-party beneficiaries of such service agreements. Neither this Portfolio’s prospectus nor summary prospectus, the Trust’s Statement of Additional Information (“SAI”), any contracts filed as exhibits to the Trust’s registration statement, nor any other communications, disclosure documents or regulatory filings (including this report) from or on behalf of the Trust or the Portfolio creates a contract between or among any shareholder of the Portfolio, on the one hand, and the Trust, the Portfolio, a service provider to the Trust or the Portfolio, and/or the Trustees or officers of the Trust, on the other hand. The Trustees (or the Trust and its officers, service providers or other delegates acting under authority of the Trustees) may amend the most recent prospectus or use a new prospectus, summary prospectus or SAI with respect to the Portfolio or the Trust, and/or amend, file and/or issue any other communications, disclosure documents or regulatory filings, and may amend or enter into any contracts to which the Trust or the Portfolio is a party, and interpret the investment objective(s), policies, restrictions and contractual provisions applicable to the Portfolio, without shareholder input or approval, except in circumstances in which shareholder approval is specifically required by law (such as changes to fundamental investment policies) or where a shareholder approval requirement is specifically disclosed in the Trust’s then-current prospectus or SAI.

PIMCO has adopted written proxy voting policies and procedures (“Proxy Policy”) as required by Rule 206(4)-6 under the Investment Advisers Act of 1940, as amended. The Proxy Policy has been adopted by the Trust as the policies and procedures that PIMCO will use when voting proxies on behalf of the Portfolio. A description of the policies and procedures that PIMCO uses to vote proxies relating to portfolio securities of the Portfolio, and information about how the Portfolio voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, are available without charge, upon request, by calling the Trust at (888) 87-PIMCO, on the Portfolio’s website at www.pimco.com/pvit, and on the Securities and Exchange Commission’s (“SEC”) website at www.sec.gov.

The Trust files a complete schedule of the Portfolio’s holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. A copy of the Portfolio’s Form N-Q is available on the SEC’s website at www.sec.gov. A copy of the Portfolio’s Form N-Q is also available without charge, upon request, by calling the Trust at (888) 87-PIMCO and on the Portfolio’s website at www.pimco.com/pvit.

The SEC adopted a rule that, beginning in 2021, generally will allow shareholder reports to be delivered to investors by providing access to such reports online free of charge and by mailing a notice that the report is electronically available. Pursuant to the rule, investors may still elect to receive a complete shareholder report in the mail. Instructions for electing to receive paper copies of the Portfolio’s shareholder reports going forward may be found on the front cover of this report.

The SEC adopted amendments to certain disclosure requirements relating to open-end investment companies’ liquidity risk management programs. Effective December 1, 2019, large fund complexes will be required to include in their shareholder reports a discussion of their liquidity risk management programs’ operations over the past year.

ANNUAL REPORT DECEMBER 31, 2018 5

PIMCO Long-Term U.S. Government Portfolio

Cumulative Returns Through December 31, 2018

$10,000 invested at the end of the month when the Portfolio’s Administrative Class commenced operations.

Allocation Breakdown as of 12/31/2018^†§

U.S. Treasury Obligations	79.9%
U.S. Government Agencies	10.0%
Non-Agency Mortgage-Backed Securities	5.0%
Short-Term Instruments‡	3.8%
Other	1.3%

^†  % of Investments, at value.

^§  Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.

^‡  Includes Central Funds Used for Cash Management Purposes.

Average Annual Total Return for the period ended December 31, 2018
		1 Year		5 Years		10 Years		Inception≈
	PIMCO Long-Term U.S. Government Portfolio Institutional Class		(2.23)%		5.70%		5.12%		6.95%
	PIMCO Long-Term U.S. Government Portfolio Administrative Class		(2.38)%		5.54%		4.97%		6.69%
	PIMCO Long-Term U.S. Government Portfolio Advisor Class		(2.48)%		5.43%		—		5.27%
	Bloomberg Barclays Long-Term Treasury Index±		(1.84)%		5.93%		4.09%		6.40%¨

All Portfolio returns are net of fees and expenses.

^≈ For class inception dates please refer to the Important Information.

^¨ Average annual total return since 04/30/1999.

^± Bloomberg Barclays Long-Term Treasury Index consists of U.S. Treasury issues with maturities of 10 or more years.

It is not possible to invest directly in an unmanaged index.

Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. The Portfolio’s performance does not reflect the deduction of additional charges and expenses imposed in connection with investing in Variable Contracts, which will reduce returns. Differences in the Portfolio’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the prices of individual positions (which may be sourced from different pricing vendors or other sources) used by the Portfolio and the index. For performance current to the most recent month-end, visit www.pimco.com/pvit or via (888) 87-PIMCO.

The Portfolio’s total annual operating expense ratio in effect as of period end were 0.615% for Institutional Class shares, 0.765% for Administrative Class shares, and 0.865% for Advisor Class shares. Details regarding any changes to the Portfolio’s operating expenses, subsequent to period end, can be found in the Portfolio’s current prospectus, as supplemented.

Investment Objective and Strategy Overview

PIMCO Long-Term U.S. Government Portfolio seeks maximum total return, consistent with preservation of capital and prudent investment management, by investing under normal circumstances at least 80% of its assets in a diversified portfolio of fixed income securities that are issued or guaranteed by the U.S. government, its agencies or government-sponsored enterprises (“U.S. Government Securities”), which may be represented by forwards or derivatives such as options, futures contracts or swap agreements. Assets not invested in U.S. Government Securities may be invested in other types of Fixed Income Instruments. “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. Portfolio strategies may change from time to time. Please refer to the Portfolio’s current prospectus for more information regarding the Portfolio’s strategy.

Portfolio Insights

The following affected performance during the reporting period:

» The Portfolio’s overweight exposure to the intermediate portion of the U.S. Treasury yield curve detracted from performance, as rates rose.

» The Portfolio’s holding of Treasury Inflation-Protected Securities in lieu of nominal Treasuries detracted from performance, as breakeven inflation rates fell.

» Exposure to agency mortgage-backed securities contributed to performance, as those securities’ total return was positive.

» Exposure to agency debentures contributed to performance, as those securities’ total return was positive.

6 PIMCO VARIABLE INSURANCE TRUST

Expense Example PIMCO Long-Term U.S. Government Portfolio

Example

As a shareholder of the Portfolio, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees (if applicable), and other Portfolio expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in the Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds.

The Expense Example does not reflect any fees or other expenses imposed by the Variable Contracts. If it did, the expenses reflected in the Expense Example would be higher. The Example is based on an investment of $1,000 invested at the beginning of the period and held from July 1, 2018 to December 31, 2018 unless noted otherwise in the table and footnotes below.

Actual Expenses

The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60), then multiply the result by the number in the appropriate row for your share class, in the column titled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other portfolios. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other portfolios.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information under the heading “Hypothetical (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different portfolios. In addition, if these transactional costs were included, your costs would have been higher.

Expense ratios may vary period to period because of various factors, such as an increase in expenses that are not covered by the management fees such as fees and expenses of the independent trustees and their counsel, extraordinary expenses and interest expense.

	Actual						Hypothetical (5% return before expenses)
	Beginning Account Value (07/01/18)		Ending Account Value (12/31/18)		Expenses Paid During Period*		Beginning Account Value (07/01/18)		Ending Account Value (12/31/18)		Expenses Paid During Period*		Net Annualized Expense Ratio**
Institutional Class	$	1,000.00	$	1,011.60	$	3.93	$	1,000.00	$	1,021.30	$	3.95		0.78	%
Administrative Class		1,000.00		1,010.90		4.69		1,000.00		1,020.54		4.71		0.93
Advisor Class		1,000.00		1,010.30		5.19		1,000.00		1,020.04		5.22		1.03

* Expenses Paid During Period are equal to the net annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Overall fees and expenses of investing in the Portfolio will be higher because the example does not reflect variable contract fees and expenses.

** Net Annualized Expense Ratio is reflective of any applicable contractual fee waivers and/or expense reimbursements or voluntary fee waivers. Details regarding fee waivers, if any, can be found in Note 9, Fees and Expenses, in the Notes to Financial Statements.

ANNUAL REPORT DECEMBER 31, 2018 7

Financial Highlights PIMCO Long-Term U.S. Government Portfolio

			Investment Operations								Less Distributions(b)
Selected Per Share Data for the Year Ended^:	Net Asset Value Beginning of Year		Net Investment Income (Loss)(a)		Net Realized/ Unrealized Gain (Loss)			Total			From Net Investment Income			From Net Realized Capital Gain			Total
Institutional Class
12/31/2018	$	12.25	$	0.29	$	(0.58	)	$	(0.29	)	$	(0.29	)	$	(0.05	)	$	(0.34	)
12/31/2017		11.49		0.29		0.75			1.04			(0.28	)		0.00			(0.28	)
12/31/2016		11.64		0.29		(0.17	)		0.12			(0.27	)		0.00			(0.27	)
12/31/2015		12.05		0.32		(0.47	)		(0.15	)		(0.26	)		0.00			(0.26	)
12/31/2014		9.94		0.31		2.07			2.38			(0.27	)		0.00			(0.27	)
Administrative Class
12/31/2018		12.25		0.27		(0.57	)		(0.30	)		(0.28	)		(0.05	)		(0.33	)
12/31/2017		11.49		0.27		0.75			1.02			(0.26	)		0.00			(0.26	)
12/31/2016		11.64		0.27		(0.17	)		0.10			(0.25	)		0.00			(0.25	)
12/31/2015		12.05		0.30		(0.46	)		(0.16	)		(0.25	)		0.00			(0.25	)
12/31/2014		9.94		0.29		2.07			2.36			(0.25	)		0.00			(0.25	)
Advisor Class
12/31/2018		12.25		0.26		(0.58	)		(0.32	)		(0.26	)		(0.05	)		(0.31	)
12/31/2017		11.49		0.26		0.75			1.01			(0.25	)		0.00			(0.25	)
12/31/2016		11.64		0.25		(0.17	)		0.08			(0.23	)		0.00			(0.23	)
12/31/2015		12.05		0.29		(0.47	)		(0.18	)		(0.23	)		0.00			(0.23	)
12/31/2014		9.94		0.28		2.07			2.35			(0.24	)		0.00			(0.24	)

^ A zero balance may reflect actual amounts rounding to less than $0.01 or 0.01%.

^(a)  Per share amounts based on average number of shares outstanding during the year.

^(b)  The tax characterization of distributions is determined in accordance with Federal income tax regulations. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

8 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

					Ratios/Supplemental Data
							Ratios to Average Net Assets
Net Asset Value End of Year		Total Return			Net Assets End of Year (000s)		Expenses			Expenses Excluding Waivers			Expenses Excluding Interest Expense			Expenses Excluding Interest Expense and Waivers			Net Investment Income (Loss)			Portfolio Turnover Rate
$	11.62		(2.23	)%	$	39,235		0.835	%		0.835	%		0.475	%		0.475	%		2.51	%		164	%
	12.25		9.12			39,545		0.615			0.615			0.475			0.475			2.42			107
	11.49		0.82			36,070		0.565			0.565			0.475			0.475			2.31			135
	11.64		(1.24	)		9,375		0.515			0.515			0.475			0.475			2.65			34
	12.05		24.20			8,356		0.495			0.495			0.475			0.475			2.80			132
	11.62		(2.38	)		268,621		0.985			0.985			0.625			0.625			2.36			164
	12.25		8.95			249,568		0.765			0.765			0.625			0.625			2.27			107
	11.49		0.67			236,801		0.715			0.715			0.625			0.625			2.12			135
	11.64		(1.39	)		176,929		0.665			0.665			0.625			0.625			2.50			34
	12.05		24.01			164,964		0.645			0.645			0.625			0.625			2.65			132
	11.62		(2.48	)		22,243		1.085			1.085			0.725			0.725			2.26			164
	12.25		8.85			23,003		0.865			0.865			0.725			0.725			2.17			107
	11.49		0.57			19,143		0.815			0.815			0.725			0.725			2.02			135
	11.64		(1.49	)		18,897		0.765			0.765			0.725			0.725			2.40			34
	12.05		23.89			15,400		0.745			0.745			0.725			0.725			2.55			132

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 9

Statement of Assets and Liabilities PIMCO Long-Term U.S. Government Portfolio

(Amounts in thousands†, except per share amounts)	December 31, 2018
Assets:
Investments, at value
Investments in securities*	$	341,019
Investments in Affiliates		13,517
Financial Derivative Instruments
Exchange-traded or centrally cleared		610
Over the counter		1,060
Cash		1
Deposits with counterparty		1,321
Receivable for investments sold		394,492
Receivable for TBA investments sold		19,228
Receivable for Portfolio shares sold		48
Interest and/or dividends receivable		1,580
Dividends receivable from Affiliates		30
Total Assets		772,906
Liabilities:
Borrowings & Other Financing Transactions
Payable for reverse repurchase agreements	$	16,100
Payable for sale-buyback transactions		398,724
Payable for short sales		6,799
Financial Derivative Instruments
Exchange-traded or centrally cleared		550
Over the counter		1,039
Payable for investments in Affiliates purchased		30
Payable for TBA investments purchased		18,990
Deposits from counterparty		89
Payable for Portfolio shares redeemed		322
Accrued investment advisory fees		60
Accrued supervisory and administrative fees		67
Accrued distribution fees		4
Accrued servicing fees		33
Total Liabilities		442,807
Net Assets	$	330,099
Net Assets Consist of:
Paid in capital	$	341,240
Distributable earnings (accumulated loss)		(11,141	)
Net Assets	$	330,099
Net Assets:
Institutional Class	$	39,235
Administrative Class		268,621
Advisor Class		22,243
Shares Issued and Outstanding:
Institutional Class		3,375
Administrative Class		23,109
Advisor Class		1,914
Net Asset Value Per Share Outstanding:
Institutional Class	$	11.62
Administrative Class		11.62
Advisor Class		11.62
Cost of investments in securities	$	347,614
Cost of investments in Affiliates	$	13,633
Proceeds received on short sales	$	6,727
Cost or premiums of financial derivative instruments, net	$	1,695
* Includes repurchase agreements of:	$	169

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

10 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

Statement of Operations PIMCO Long-Term U.S. Government Portfolio

(Amounts in thousands†)	Year Ended December 31, 2018
Investment Income:
Interest	$	9,900
Dividends from Investments in Affiliates		407
Total Income		10,307
Expenses:
Investment advisory fees		694
Supervisory and administrative fees		771
Servicing fees - Administrative Class		372
Distribution and/or servicing fees - Advisor Class		54
Trustee fees		9
Interest expense		1,101
Total Expenses		3,001
Net Investment Income (Loss)		7,306
Net Realized Gain (Loss):
Investments in securities		(8,164	)
Investments in Affiliates		23
Net capital gain distributions received from Affiliate investments		13
Exchange-traded or centrally cleared financial derivative instruments		(1,047	)
Over the counter financial derivative instruments		(1,505	)
Short Sales		(1	)
Foreign currency		1
Net Realized Gain (Loss)		(10,680	)
Net Change in Unrealized Appreciation (Depreciation):
Investments in securities		(7,041	)
Investments in Affiliates		(105	)
Exchange-traded or centrally cleared financial derivative instruments		3,287
Over the counter financial derivative instruments		598
Foreign currency assets and liabilities		(2	)
Net Change in Unrealized Appreciation (Depreciation)		(3,263	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	(6,637	)

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 11

Statements of Changes in Net Assets PIMCO Long-Term U.S. Government Portfolio

(Amounts in thousands†)	Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets from:
Operations:
Net investment income (loss)	$	7,306		$	6,926
Net realized gain (loss)		(10,680	)		3,900
Net change in unrealized appreciation (depreciation)		(3,263	)		15,150
Net Increase (Decrease) in Net Assets Resulting from Operations		(6,637	)		25,976
Distributions to Shareholders:
From net investment income and/or net realized capital gains*
Institutional Class		(1,174	)		(887	)
Administrative Class		(7,201	)		(5,332	)
Advisor Class		(603	)		(449	)
Total Distributions(a)		(8,978	)		(6,668	)
Portfolio Share Transactions:
Net increase (decrease) resulting from Portfolio share transactions**		33,598			794
Total Increase (Decrease) in Net Assets		17,983			20,102
Net Assets:
Beginning of year		312,116			292,014
End of year	$	330,099		$	312,116

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

* See Note 2, New Accounting Pronouncements, in the Notes to Financial Statements for more information.

** See Note 13, Shares of Beneficial Interest, in the Notes to Financial Statements.

^(a)  The tax characterization of distributions is determined in accordance with Federal income tax regulations. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

12 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

Statement of Cash Flows PIMCO Long-Term U.S. Government Portfolio

(Amounts in thousands†)	Year Ended December 31, 2018
Cash Flows Provided by (Used for) Operating Activities:
Net increase (decrease) in net assets resulting from operations	$	(6,637	)
Adjustments to Reconcile Net Increase (Decrease) in Net Assets from Operations to Net Cash Provided by (Used for) Operating Activities:
Purchases of long-term securities		(600,256	)
Proceeds from sales of long-term securities		646,930
(Purchases) Proceeds from sales of short-term portfolio investments, net		(980	)
(Increase) decrease in deposits with counterparty		(1,143	)
(Increase) decrease in receivable for investments sold		(6,017	)
(Increase) decrease in interest and/or dividends receivable		380
(Increase) decrease in dividends receivable from Affiliates		(10	)
Proceeds from (Payments on) exchange-traded or centrally cleared financial derivative instruments		2,024
Proceeds from (Payments on) over the counter financial derivative instruments		(1,515	)
Increase (decrease) in payable for investments purchased		(11,924	)
Increase (decrease) in deposits from counterparty		(60	)
Increase (decrease) in accrued investment advisory fees		(1	)
Increase (decrease) in accrued supervisory and administrative fees		(1	)
Increase (decrease) in accrued distribution fees		(1	)
Proceeds from (Payments on) short sales transactions, net		(1,904	)
Proceeds from (Payments on) foreign currency transactions		(1	)
Increase (decrease) in other liabilities		(2	)
Net Realized (Gain) Loss
Investments in securities		8,164
Investments in Affiliates		(23	)
Net capital gain distributions received from Affiliate investments		(13	)
Exchange-traded or centrally cleared financial derivative instruments		1,047
Over the counter financial derivative instruments		1,505
Short sales		1
Foreign currency		(1	)
Net Change in Unrealized (Appreciation) Depreciation
Investments in securities		7,041
Investments in Affiliates		105
Exchange-traded or centrally cleared financial derivative instruments		(3,287	)
Over the counter financial derivative instruments		(598	)
Foreign currency assets and liabilities		2
Net amortization (accretion) on investments		(729	)
Net Cash Provided by (Used for) Operating Activities		32,096
Cash Flows Received from (Used for) Financing Activities:
Proceeds from shares sold		62,004
Payments on shares redeemed		(37,160	)
Cash distributions paid*		0
Proceeds from reverse repurchase agreements		28,527
Payments on reverse repurchase agreements		(12,427	)
Proceeds from sale-buyback transactions		3,422,716
Payments on sale-buyback transactions		(3,495,755	)
Net Cash Received from (Used for) Financing Activities		(32,095	)
Net Increase (Decrease) in Cash and Foreign Currency		1
Cash and Foreign Currency:
Beginning of year		0
End of year	$	1
* Reinvestment of distributions	$	8,978
Supplemental Disclosure of Cash Flow Information:
Interest expense paid during the year	$	1,046

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

A Statement of Cash Flows is presented when the Portfolio has a significant amount of borrowing during the year, based on the average total borrowing outstanding in relation to total assets or when substantially all of the Portfolio’s investments are not classified as Level 1 or 2 in the fair value hierarchy.

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 13

Schedule of Investments PIMCO Long-Term U.S. Government Portfolio

(Amounts in thousands*, except number of shares, contracts and units, if any)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
INVESTMENTS IN SECURITIES 103.3%
CORPORATE BONDS & NOTES 0.6%
INDUSTRIALS 0.5%
United Airlines Pass-Through Trust
2.875% due 04/07/2030	$		663	$		611
3.100% due 04/07/2030			663			614
Vessel Management Services, Inc.
3.432% due 08/15/2036			572			559
						1,784
UTILITIES 0.1%
BellSouth LLC
4.333% due 04/26/2021			400			401
Total Corporate Bonds & Notes (Cost $2,300)						2,185
U.S. GOVERNMENT AGENCIES 10.7%
Fannie Mae
0.000% due 05/15/2030 - 11/15/2030 (a)			2,500			1,714
2.375% due 07/25/2037 •			12			11
2.500% due 11/01/2046			296			279
3.000% due 09/25/2046			2,264			2,022
3.043% due 03/25/2028 ~			350			342
3.090% due 12/01/2036			1,700			1,569
3.406% due 04/25/2032 •			2			3
3.458% due 01/01/2033 •			3			4
3.580% due 08/01/2030			1,700			1,700
3.600% due 02/01/2040			1,459			1,433
4.250% due 05/25/2037			82			88
5.000% due 04/25/2032 - 08/25/2033			330			356
5.500% due 12/25/2035			106			117
6.080% due 09/01/2028			64			81
6.500% due 07/25/2031			76			84
6.625% due 11/15/2030			570			765
Fannie Mae, TBA
3.500% due 01/01/2049 - 02/01/2049			4,800			4,798
4.000% due 01/01/2049			800			816
5.500% due 01/01/2049			900			953
Federal Housing Administration
6.896% due 07/01/2020			14			14
Freddie Mac
0.000% due 03/15/2031 - 07/15/2032 (a)			2,700			1,761
2.855% due 01/15/2033 •			6			6
3.000% due 04/15/2053			1,366			1,257
3.155% due 02/15/2027 •			2			2
3.357% due 10/25/2044 •			25			25
3.455% due 02/15/2021 •			1			1
3.650% due 02/25/2028 ~			200			206
4.000% due 06/15/2032 - 09/15/2044			4,324			4,460
4.000% due 12/15/2042 •			700			605
5.500% due 08/15/2030 - 02/15/2034			283			312
6.750% due 03/15/2031			100			136
7.000% due 07/15/2023 - 12/01/2031			5			6
Ginnie Mae
3.500% due 01/20/2044			643			643
3.750% due 08/20/2030 •			3			3
6.000% due 08/20/2033			810			884
Residual Funding Corp. STRIPS
0.000% due 10/15/2020 - 01/15/2030 (a)			4,000			3,174
Resolution Funding Corp.
8.125% due 10/15/2019			1,600			1,664
Resolution Funding Corp. STRIPS
0.000% due 04/15/2028 - 04/15/2029 (a)			3,200			2,378
Small Business Administration
5.240% due 08/01/2023			45			47
5.290% due 12/01/2027			78			81
Tennessee Valley Authority STRIPS
0.000% due 05/01/2030 (a)			800			541
Total U.S. Government Agencies (Cost $35,025)						35,341

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
U.S. TREASURY OBLIGATIONS 85.7%
U.S. Treasury Bonds
2.500% due 02/15/2045	$		7,200	$		6,540
2.500% due 02/15/2046			4,070			3,683
2.500% due 05/15/2046			5,500			4,971
2.750% due 08/15/2042			3,000			2,878
2.750% due 11/15/2042			29,600			28,365
2.875% due 05/15/2043			14,780			14,461
2.875% due 08/15/2045			18,450			18,009
3.000% due 11/15/2044			1,590			1,591
3.000% due 05/15/2045			8,500			8,502
3.000% due 11/15/2045			10,100			10,101
3.000% due 08/15/2048 (d)			16,280			16,236
3.125% due 11/15/2041			30,000			30,782
3.125% due 02/15/2043			3,950			4,038
3.125% due 05/15/2048			3,730			3,808
3.375% due 05/15/2044			33,810			36,084
3.625% due 08/15/2043			5,100			5,657
3.875% due 08/15/2040			2,720			3,129
4.250% due 11/15/2040			500			605
4.375% due 05/15/2040			200			246
4.500% due 08/15/2039			200			250
4.750% due 02/15/2041			790			1,023
6.250% due 05/15/2030			400			537
U.S. Treasury Inflation Protected Securities (b)
0.125% due 04/15/2022			728			704
0.375% due 07/15/2027			62			59
0.500% due 01/15/2028			2,655			2,536
0.750% due 07/15/2028			4,634			4,540
0.750% due 02/15/2042			1,007			916
1.000% due 02/15/2048			1,436			1,364
1.375% due 02/15/2044			423			438
1.750% due 01/15/2028 (f)			1,231			1,308
2.500% due 01/15/2029			2,073			2,362
3.625% due 04/15/2028			313			384
U.S. Treasury Notes
2.000% due 11/30/2022 (f)			33,300			32,703
2.750% due 06/30/2025			2,400			2,426
2.875% due 05/15/2028			1,620			1,646
U.S. Treasury STRIPS (a)
0.000% due 02/15/2033			1,700			1,132
0.000% due 05/15/2034			500			321
0.000% due 08/15/2034			1,270			808
0.000% due 08/15/2035			25,270			15,597
0.000% due 08/15/2036			18,000			10,761
0.000% due 11/15/2036			2,700			1,601
Total U.S. Treasury Obligations (Cost $289,456)						283,102
NON-AGENCY MORTGAGE-BACKED SECURITIES 5.4%
Barclays Commercial Mortgage Securities Trust
4.197% due 08/10/2035			500			508
Bear Stearns Adjustable Rate Mortgage Trust
3.950% due 04/25/2033 ~			40			41
4.182% due 04/25/2033 ~			6			6
4.368% due 02/25/2034 ~			10			10
4.835% due 01/25/2034 ~			6			6
BWAY Mortgage Trust
3.454% due 03/10/2033			700			698
CityLine Commercial Mortgage Trust
2.778% due 11/10/2031 ~			1,600			1,569
Commercial Mortgage Trust
3.140% due 10/10/2036			1,700			1,643
3.815% due 04/10/2033 ~			500			493
Countrywide Alternative Loan Trust
2.716% due 05/25/2035 •			41			39
Countrywide Home Loan Mortgage Pass-Through Trust
3.146% due 03/25/2035 •			63			57
Credit Suisse First Boston Mortgage Securities Corp.
4.394% due 11/25/2032 ~			3			3
Credit Suisse First Boston Mortgage-Backed Pass-through Certificates
3.916% due 07/25/2033 ~			7			7
DBWF Mortgage Trust
3.791% due 12/10/2036			2,100			2,130

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
GS Mortgage Securities Trust
3.805% due 10/10/2035 ~	$		500	$		488
HarborView Mortgage Loan Trust
2.600% due 03/19/2037 •			42			40
2.910% due 05/19/2035 •			33			32
4.463% due 07/19/2035 ^~			10			9
Hilton USA Trust
3.719% due 11/05/2038			900			896
Impac CMB Trust
4.671% due 09/25/2034 Ø			131			135
JPMorgan Chase Commercial Mortgage Securities Trust
2.798% due 10/05/2031			1,700			1,673
JPMorgan Mortgage Trust
4.327% due 07/25/2035 ~			84			87
Morgan Stanley Bank of America Merrill Lynch Trust
3.514% due 12/15/2049			1,800			1,822
Morgan Stanley Capital Trust
4.418% due 07/11/2040			600			631
Motel 6 Trust
3.375% due 08/15/2034 •			1,148			1,131
Residential Accredit Loans, Inc. Trust
6.000% due 06/25/2036 ^			48			44
Residential Funding Mortgage Securities, Inc. Trust
6.500% due 03/25/2032			4			4
Sequoia Mortgage Trust
2.820% due 07/20/2033 •			44			42
Structured Adjustable Rate Mortgage Loan Trust
2.726% due 05/25/2037 •			76			76
Structured Asset Mortgage Investments Trust
3.130% due 09/19/2032 •			36			35
3.310% due 10/19/2033 •			18			17
VNDO Trust
3.805% due 01/10/2035			1,900			1,923
WaMu Mortgage Pass-Through Certificates Trust
2.579% due 10/25/2046 •			48			46
3.157% due 08/25/2046 •			179			168
3.557% due 08/25/2042 •			2			2
Washington Mutual Mortgage Pass-Through Certificates Trust
3.391% due 05/25/2033 ~			5			5
3.686% due 02/25/2033 ~			1			1
4.391% due 02/25/2033 ~			1			1
Wells Fargo Commercial Mortgage Trust
2.933% due 11/15/2059			900			888
Worldwide Plaza Trust
3.526% due 11/10/2036			300			297
Total Non-Agency Mortgage-Backed Securities (Cost $18,151)						17,703
ASSET-BACKED SECURITIES 0.8%
Bear Stearns Asset-Backed Securities Trust
3.506% due 11/25/2042 •			35			35
ECMC Group Student Loan Trust
3.256% due 02/27/2068 •			268			268
LA Arena Funding LLC
7.656% due 12/15/2026			15			17
OneMain Direct Auto Receivables Trust
3.430% due 12/16/2024			1,500			1,504
Renaissance Home Equity Loan Trust
3.195% due 08/25/2033 •			3			3
3.506% due 12/25/2033 •			16			16
SLM Student Loan Trust
3.090% due 10/25/2029 •			300			301
3.990% due 04/25/2023 •			362			364
Specialty Underwriting & Residential Finance Trust
3.186% due 01/25/2034 •			12			11
Total Asset-Backed Securities (Cost $2,513)						2,519

14 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

		MARKET VALUE (000S)
SHORT-TERM INSTRUMENTS 0.1%
REPURCHASE AGREEMENTS (c) 0.1%
	$		169
Total Short-Term Instruments (Cost $169)			169
Total Investments in Securities (Cost $347,614)			341,019

	SHARES			MARKET VALUE (000S)
INVESTMENTS IN AFFILIATES 4.1%
SHORT-TERM INSTRUMENTS 4.1%
CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 4.1%
PIMCO Short Asset Portfolio		1,175,580	$		11,664
PIMCO Short-Term Floating NAV Portfolio III		187,477			1,853
Total Short-Term Instruments (Cost $13,633)					13,517
Total Investments in Affiliates (Cost $13,633)					13,517

		MARKET VALUE (000S)
Total Investments 107.4% (Cost $361,247)	$		354,536
Financial Derivative Instruments (e)(g) 0.0% (Cost or Premiums, net $1,695)			81
Other Assets and Liabilities, net (7.4)%			(24,518	)
Net Assets 100.0%	$		330,099

NOTES TO SCHEDULE OF INVESTMENTS:

* A zero balance may reflect actual amounts rounding to less than one thousand.

^ Security is in default.

~ Variable or Floating rate security. Rate shown is the rate in effect as of period end. Certain variable rate securities are not based on a published reference rate and spread, rather are determined by the issuer or agent and are based on current market conditions. Reference rate is as of reset date, which may vary by security. These securities may not indicate a reference rate and/or spread in their description.

• Rate shown is the rate in effect as of period end. The rate may be based on a fixed rate, a capped rate or a floor rate and may convert to a variable or floating rate in the future. These securities do not indicate a reference rate and spread in their description.

Ø Coupon represents a rate which changes periodically based on a predetermined schedule or event. Rate shown is the rate in effect as of period end.

(a) Zero coupon security.

(b) Principal amount of security is adjusted for inflation.

BORROWINGS AND OTHER FINANCING TRANSACTIONS

(c)  REPURCHASE AGREEMENTS:

Counterparty	Lending Rate			Settlement Date		Maturity Date		Principal Amount		Collateralized By	Collateral (Received)			Repurchase Agreements, at Value		Repurchase Agreement Proceeds to  be Received(1)
FICC		2.000	%		12/31/2018		01/02/2019	$	169	U.S. Treasury Notes 2.875% due 09/30/2023	$	(174	)	$	169	$	169
Total Repurchase Agreements											$	(174	)	$	169	$	169

REVERSE REPURCHASE AGREEMENTS:

Counterparty	Borrowing Rate(2)			Settlement Date		Maturity Date		Amount Borrowed(2)			Payable for Reverse Repurchase Agreements
SGY		2.500	%		12/12/2018		01/14/2019	$	(16,077	)	$	(16,100	)
Total Reverse Repurchase Agreements											$	(16,100	)

SALE-BUYBACK TRANSACTIONS:

Counterparty	Borrowing Rate(2)			Borrowing Date		Maturity Date		Amount Borrowed(2)			Payable  for Sale-Buyback Transactions(3)
BPG		2.980	%		01/02/2019		01/03/2019	$	(230,189	)	$	(230,189	)
		2.990			01/02/2019		01/03/2019		(29,992	)		(29,992	)
GSC		2.850			12/10/2018		01/10/2019		(2,333	)		(2,338	)
		2.850			12/12/2018		01/23/2019		(600	)		(601	)
		3.000			01/03/2019		01/04/2019		(134,284	)		(134,284	)
MSC		2.690			11/28/2018		01/09/2019		(1,317	)		(1,320	)
Total Sale-Buyback Transactions											$	(398,724	)

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 15

Schedule of Investments PIMCO Long-Term U.S. Government Portfolio (Cont.)

SHORT SALES:

Description	Coupon			Maturity Date		Principal Amount		Proceeds			Payable for Short Sales
U.S. Government Agencies (2.1)%
Fannie Mae, TBA		3.000	%		01/01/2049	$	2,300	$	(2,186	)	$	(2,244	)
Fannie Mae, TBA		4.500			02/01/2049		4,400		(4,541	)		(4,555	)
Total Short Sales (2.1)%								$	(6,727	)	$	(6,799	)

BORROWINGS AND OTHER FINANCING TRANSACTIONS SUMMARY

The following is a summary by counterparty of the market value of Borrowings and Other Financing Transactions and collateral pledged/(received) as of December 31, 2018:

Counterparty	Repurchase Agreement Proceeds to  be Received(1)		Payable for Reverse Repurchase Agreements			Payable  for Sale-Buyback Transactions(3)			Total Borrowings and Other Financing Transactions			Collateral Pledged/(Received)			Net Exposure(4)
Global/Master Repurchase Agreement
FICC	$	169	$	0		$	0		$	169		$	(174	)	$	(5	)
SGY		0		(16,100	)		0			(16,100	)		15,971			(129	)
Master Securities Forward Transaction Agreement
BPG		0		0			(260,181	)		(260,181	)		261,162			981
GSC		0		0			(137,223	)		(137,223	)		137,230			7
MSC		0		0			(1,320	)		(1,320	)		1,429			109
Total Borrowings and Other Financing Transactions	$	169	$	(16,100	)	$	(398,724	)

CERTAIN TRANSFERS ACCOUNTED FOR AS SECURED BORROWINGS

Remaining Contractual Maturity of the Agreements

	Overnight and Continuous		Up to 30 days			31-90 days		Greater Than 90 days		Total
Reverse Repurchase Agreements
U.S. Treasury Obligations	$	0	$	(16,100	)	$	0	$	0	$	(16,100	)
Total	$	0	$	(16,100	)	$	0	$	0	$	(16,100	)
Sale-Buyback Transactions
U.S. Treasury Obligations		0		(398,724	)		0		0		(398,724	)
Total	$	0	$	(398,724	)	$	0	$	0	$	(398,724	)
Total Borrowings	$	0	$	(414,824	)	$	0	$	0	$	(414,824	)
Payable for reverse repurchase agreements and sale-buyback financing transactions										$	(414,824	)

(d) Securities with an aggregate market value of $416,057 have been pledged as collateral under the terms of the above master agreements as of December 31, 2018.

⁽¹⁾ Includes accrued interest.

⁽²⁾ The average amount of borrowings outstanding during the period ended December 31, 2018 was $(55,958) at a weighted average interest rate of 1.846%. Average borrowings may include sale-buyback transactions and reverse repurchase agreements, if held during the period.

⁽³⁾ Payable for sale-buyback transactions includes $(36) of deferred price drop.

⁽⁴⁾ Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from borrowings and other financing transactions can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information regarding master netting arrangements.

(e)  FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED

PURCHASED OPTIONS:

OPTIONS ON EXCHANGE-TRADED FUTURES CONTRACTS

Description	Strike Price		Expiration Date		# of Contracts		Notional Amount		Cost		Market Value
Put - CBOT U.S. Treasury 10-Year Note March 2019 Futures	$	106.500		02/22/2019		104	$	104	$	1	$	0
Put - CBOT U.S. Treasury 10-Year Note March 2019 Futures		111.000		02/22/2019		5		5		0		0
Put - CBOT U.S. Treasury 10-Year Note March 2019 Futures		111.500		02/22/2019		1		1		0		0
Put - CBOT U.S. Treasury 10-Year Note March 2019 Futures		112.000		02/22/2019		14		14		0		0
Put - CBOT U.S. Treasury 10-Year Note March 2019 Futures		112.500		02/22/2019		27		27		0		0
Total Purchased Options									$	1	$	0

16 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

WRITTEN OPTIONS:

OPTIONS ON EXCHANGE-TRADED FUTURES CONTRACTS

Description	Strike Price		Expiration Date		# of Contracts		Notional Amount		Premiums (Received)			Market Value
Put - CBOT U.S. Treasury 10-Year Note February 2019 Futures	$	119.000		01/25/2019		10	$	10	$	(2	)	$	0
Put - CBOT U.S. Treasury 10-Year Note February 2019 Futures		119.500		01/25/2019		35		35		(7	)		(1	)
Put - CBOT U.S. Treasury 10-Year Note February 2019 Futures		120.500		01/25/2019		21		21		(7	)		(2	)
Call - CBOT U.S. Treasury 10-Year Note February 2019 Futures		121.000		01/25/2019		10		10		(2	)		(11	)
Call - CBOT U.S. Treasury 10-Year Note February 2019 Futures		121.500		01/25/2019		25		25		(6	)		(18	)
Call - CBOT U.S. Treasury 10-Year Note February 2019 Futures		122.000		01/25/2019		31		31		(9	)		(15	)
Total Written Options									$	(33	)	$	(47	)

FUTURES CONTRACTS:

LONG FUTURES CONTRACTS

Description	Expiration Month		# of Contracts		Notional Amount		Unrealized Appreciation/ (Depreciation)		Variation Margin
									Asset		Liability
90-Day Eurodollar June Futures		06/2019		222	$	54,010	$	164	$	3	$	0
U.S. Treasury 5-Year Note March Futures		03/2019		114		13,074		208		28		0
U.S. Treasury 10-Year Note March Futures		03/2019		454		55,395		1,326		177		0
U.S. Treasury Ultra Long-Term Bond March Futures		03/2019		567		91,092		4,763		337		0
							$	6,461	$	545	$	0

SHORT FUTURES CONTRACTS

Description	Expiration Month		# of Contracts		Notional Amount			Unrealized Appreciation/ (Depreciation)			Variation Margin
											Asset		Liability
90-Day Eurodollar June Futures		06/2020		222	$	(54,115	)	$	(344	)	$	0	$	(14	)
U.S. Treasury 2-Year Note March Futures		03/2019		324		(68,789	)		(471	)		0		(46	)
U.S. Treasury 10-Year Ultra March Futures		03/2019		306		(39,804	)		(1,277	)		0		(143	)
U.S. Treasury 30-Year Bond March Futures		03/2019		144		(21,024	)		(960	)		0		(68	)
								$	(3,052	)	$	0	$	(271	)
Total Futures Contracts								$	3,409		$	545	$	(271	)

SWAP AGREEMENTS:

INTEREST RATE SWAPS

Pay/Receive Floating Rate	Floating Rate Index	Fixed Rate			Payment Frequency		Maturity Date		Notional Amount		Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Market Value			Variation Margin
																				Asset		Liability
Receive	1-Day USD-Federal Funds Rate Compounded-OIS		2.545	%		Annual		12/20/2047	$	1,000	$	2		$	(4	)	$	(2	)	$	0	$	(3	)
Receive	3-Month  USD-LIBOR		2.160			Semi-Annual		04/27/2019		61,200		47			111			158			0		(8	)
Pay(1)	3-Month  USD-LIBOR		2.600			Semi-Annual		03/16/2021		172,900		(75	)		187			112			38		0
Receive(1)	3-Month  USD-LIBOR		2.643			Semi-Annual		03/16/2022		172,900		88			(355	)		(267	)		0		(74	)
Receive	3-Month  USD-LIBOR		2.250			Semi-Annual		06/20/2028		3,900		49			99			148			0		(15	)
Pay	3-Month  USD-LIBOR		2.910			Semi-Annual		09/04/2028		1,000		0			24			24			4		0
Pay	3-Month  USD-LIBOR		3.210			Semi-Annual		11/15/2028		1,200		(3	)		55			52			5		0
Pay	3-Month  USD-LIBOR		3.220			Semi-Annual		11/15/2028		3,400		(9	)		160			151			14		0
Receive(1)	3-Month  USD-LIBOR		3.250			Semi-Annual		12/20/2037		6,400		(33	)		(63	)		(96	)		0		(9	)
Receive	3-Month  USD-LIBOR		2.384			Semi-Annual		09/07/2047		7,100		220			431			651			0		(39	)
Receive	3-Month  USD-LIBOR		2.750			Semi-Annual		12/20/2047		500		34			(22	)		12			0		(3	)
Receive	3-Month  USD-LIBOR		2.500			Semi-Annual		06/20/2048		11,000		1,068			(241	)		827			0		(61	)
Receive	3-Month  USD-LIBOR		3.000			Semi-Annual		12/19/2048		3,400		216			(313	)		(97	)		0		(20	)
Receive	CPURNSA		2.137			Maturity		01/15/2029		1,900		(9	)		39			30			4		0
Total Swap Agreements											$	1,595		$	108		$	1,703		$	65	$	(232	)

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 17

Schedule of Investments PIMCO Long-Term U.S. Government Portfolio (Cont.)

FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED SUMMARY

The following is a summary of the market value and variation margin of Exchange-Traded or Centrally Cleared Financial Derivative Instruments as of December 31, 2018:

	Financial Derivative Assets								Financial Derivative Liabilities
	Market Value		Variation Margin Asset				Total		Market Value		Variation Margin Liability				Total
	Purchased Options		Futures		Swap Agreements				Written Options		Futures		Swap Agreements
Total Exchange-Traded or Centrally Cleared	$	0	$	545	$	65	$	610	$	(47)	$	(271)	$	(232)	$	(550)

(f) Securities with an aggregate market value of $1,286 and cash of $1,321 have been pledged as collateral for exchange-traded and centrally cleared financial derivative instruments as of December 31, 2018. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information regarding master netting arrangements.

⁽¹⁾ This instrument has a forward starting effective date. See Note 2, Securities Transactions and Investment Income, in the Notes to Financial Statements for further information.

(g)  FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER

PURCHASED OPTIONS:

INTEREST RATE SWAPTIONS

Counterparty	Description	Floating Rate Index	Pay/Receive Floating Rate		Exercise Rate			Expiration Date		Notional Amount			Cost		Market Value
BOA	Put - OTC 10-Year Interest Rate Swap	3-Month  USD-LIBOR		Receive		3.400	%		05/16/2019		$	14,600	$	186	$	17
	Put - OTC 30-Year Interest Rate Swap	3-Month  USD-LIBOR		Receive		2.700			05/13/2019			800		69		41
	Put - OTC 30-Year Interest Rate Swap	3-Month  USD-LIBOR		Receive		3.750			02/07/2020			3,100		128		26
CBK	Put - OTC 30-Year Interest Rate Swap	3-Month  USD-LIBOR		Receive		3.550			05/09/2019			2,700		50		5
JPM	Put - OTC 30-Year Interest Rate Swap	3-Month  USD-LIBOR		Receive		3.580			11/07/2019			1,100		23		9
MYC	Call - OTC 2-Year Interest Rate Swap(1)	3-Month  USD-LIBOR		Pay		3.250			01/31/2019			32,400		97		460
	Call - OTC 2-Year Interest Rate Swap	3-Month  USD-LIBOR		Pay		2.450			05/11/2020			72,200		190		485
	Put - OTC 30-Year Interest Rate Swap	3-Month  USD-LIBOR		Receive		3.710			09/16/2019			4,300		94		17
Total Purchased Options													$	837	$	1,060

WRITTEN OPTIONS:

INFLATION-CAPPED OPTIONS

Counterparty	Description	Initial Index		Floating Rate	Expiration Date	Notional Amount		Premiums (Received)			Market Value
CBK	Floor - OTC CPURNSA		216.687	Maximum of [(1 + 0.000%)10 - (Final Index/Initial Index)] or 0	04/07/2020	$	2,400	$	(21	)	$	0

INTEREST RATE SWAPTIONS

Counterparty	Description	Floating Rate Index	Pay/Receive Floating Rate	Exercise Rate			Expiration Date		Notional Amount		Premiums (Received)			Market Value
BOA	Put - OTC 5-Year Interest Rate Swap	3-Month  USD-LIBOR	Pay		2.500	%		05/13/2019	$	3,700	$	(67	)	$	(36	)
	Put - OTC 10-Year Interest Rate Swap	3-Month  USD-LIBOR	Pay		3.750			05/16/2019		14,600		(66	)		(4	)
	Put - OTC 10-Year Interest Rate Swap	3-Month  USD-LIBOR	Pay		4.000			02/07/2020		7,700		(127	)		(16	)
CBK	Put - OTC 5-Year Interest Rate Swap	3-Month  USD-LIBOR	Pay		3.520			05/09/2019		12,000		(51	)		(1	)
JPM	Put - OTC 5-Year Interest Rate Swap	3-Month  USD-LIBOR	Pay		3.560			11/07/2019		4,600		(24	)		(5	)
MYC	Call - OTC 2-Year Interest Rate Swap(1)	3-Month  USD-LIBOR	Receive		3.000			01/31/2019		32,400		(36	)		(310	)
	Call - OTC 2-Year Interest Rate Swap(1)	3-Month  USD-LIBOR	Receive		3.125			01/31/2019		32,400		(61	)		(384	)
	Put - OTC 5-Year Interest Rate Swap	3-Month  USD-LIBOR	Pay		3.710			09/16/2019		17,600		(93	)		(8	)
	Call - OTC 10-Year Interest Rate Swap	3-Month  USD-LIBOR	Receive		2.510			05/11/2020		14,700		(159	)		(275	)
											$	(684	)	$	(1,039	)
Total Written Options											$	(705	)	$	(1,039	)

18 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER SUMMARY

The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral (received) as of December 31, 2018:

	Financial Derivative Assets								Financial Derivative Liabilities
Counterparty	Forward Foreign Currency Contracts		Purchased Options		Swap Agreements		Total Over the Counter		Forward Foreign Currency Contracts		Written Options			Swap Agreements		Total Over the Counter			Net Market Value of OTC Derivatives			Collateral (Received)			Net Exposure(2)
BOA	$	0	$	84	$	0	$	84	$	0	$	(56	)	$	0	$	(56	)	$	28		$	0		$	28
CBK		0		5		0		5		0		(1	)		0		(1	)		4			0			4
JPM		0		9		0		9		0		(5	)		0		(5	)		4			0			4
MYC		0		962		0		962		0		(977	)		0		(977	)		(15	)		(89	)		(104	)
Total Over the Counter	$	0	$	1,060	$	0	$	1,060	$	0	$	(1,039	)	$	0	$	(1,039	)

⁽¹⁾ The underlying instrument has a forward starting effective date. See Note 2, Securities Transactions and Investment Income, in the Notes to Financial Statements for further information.

⁽²⁾ Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information regarding master netting arrangements.

FAIR VALUE OF FINANCIAL DERIVATIVE INSTRUMENTS

The following is a summary of the fair valuation of the Portfolio’s derivative instruments categorized by risk exposure. See Note 7, Principal Risks, in the Notes to Financial Statements on risks of the Portfolio.

Fair Values of Financial Derivative Instruments on the Statement of Assets and Liabilities as of December 31, 2018:

	Derivatives not accounted for as hedging instruments
	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Exchange Contracts		Interest Rate Contracts		Total
Financial Derivative Instruments - Assets
Exchange-traded or centrally cleared
Futures	$	0	$	0	$	0	$	0	$	545	$	545
Swap Agreements		0		0		0		0		65		65
	$	0	$	0	$	0	$	0	$	610	$	610
Over the counter
Purchased Options	$	0	$	0	$	0	$	0	$	1,060	$	1,060
	$	0	$	0	$	0	$	0	$	1,670	$	1,670
Financial Derivative Instruments - Liabilities
Exchange-traded or centrally cleared
Written Options	$	0	$	0	$	0	$	0	$	47	$	47
Futures		0		0		0		0		271		271
Swap Agreements		0		0		0		0		232		232
	$	0	$	0	$	0	$	0	$	550	$	550
Over the counter
Written Options	$	0	$	0	$	0	$	0	$	1,039	$	1,039
	$	0	$	0	$	0	$	0	$	1,589	$	1,589

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 19

Schedule of Investments PIMCO Long-Term U.S. Government Portfolio (Cont.)

December 31, 2018

The effect of Financial Derivative Instruments on the Statement of Operations for the period ended December 31, 2018:

	Derivatives not accounted for as hedging instruments
	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Exchange Contracts		Interest Rate Contracts			Total
Net Realized Gain (Loss) on Financial Derivative Instruments
Exchange-traded or centrally cleared
Purchased Options	$	0	$	0	$	0	$	0	$	(8	)	$	(8	)
Written Options		0		0		0		0		161			161
Futures		0		0		0		0		(2,614	)		(2,614	)
Swap Agreements		0		0		0		0		1,414			1,414
	$	0	$	0	$	0	$	0	$	(1,047	)	$	(1,047	)
Over the counter
Purchased Options	$	0	$	0	$	0	$	0	$	730		$	730
Written Options		0		0		0		0		(2,235	)		(2,235	)
	$	0	$	0	$	0	$	0	$	(1,505	)	$	(1,505	)
	$	0	$	0	$	0	$	0	$	(2,552	)	$	(2,552	)
Net Change in Unrealized Appreciation (Depreciation) on Financial Derivative Instruments
Exchange-traded or centrally cleared
Purchased Options	$	0	$	0	$	0	$	0	$	1		$	1
Written Options		0		0		0		0		12			12
Futures		0		0		0		0		3,329			3,329
Swap Agreements		0		0		0		0		(55	)		(55	)
	$	0	$	0	$	0	$	0	$	3,287		$	3,287
Over the counter
Purchased Options	$	0	$	0	$	0	$	0	$	596		$	596
Written Options		0		0		0		0		2			2
	$	0	$	0	$	0	$	0	$	598		$	598
	$	0	$	0	$	0	$	0	$	3,885		$	3,885

FAIR VALUE MEASUREMENTS

The following is a summary of the fair valuations according to the inputs used as of December 31, 2018 in valuing the Portfolio’s assets and liabilities:

Category and Subcategory	Level 1		Level 2		Level 3		Fair Value at 12/31/2018
Investments in Securities, at Value
Corporate Bonds & Notes
Industrials	$	0	$	1,784	$	0	$	1,784
Utilities		0		401		0		401
U.S. Government Agencies		0		35,341		0		35,341
U.S. Treasury Obligations		0		283,102		0		283,102
Non-Agency Mortgage-Backed Securities		0		17,703		0		17,703
Asset-Backed Securities		0		2,519		0		2,519
Short-Term Instruments
Repurchase Agreements		0		169		0		169
	$	0	$	341,019	$	0	$	341,019
Investments in Affiliates, at Value
Short-Term Instruments
Central Funds Used for Cash Management Purposes	$	13,517	$	0	$	0	$	13,517
Total Investments	$	13,517	$	341,019	$	0	$	354,536

Category and Subcategory	Level 1			Level 2			Level 3		Fair Value at 12/31/2018
Short Sales, at Value - Liabilities
U.S. Government Agencies	$	0		$	(6,799	)	$	0	$	(6,799	)
Financial Derivative Instruments - Assets
Exchange-traded or centrally cleared		545			65			0		610
Over the counter		0			1,060			0		1,060
	$	545		$	1,125		$	0	$	1,670
Financial Derivative Instruments - Liabilities
Exchange-traded or centrally cleared		(271	)		(279	)		0		(550	)
Over the counter		0			(1,039	)		0		(1,039	)
	$	(271	)	$	(1,318	)	$	0	$	(1,589	)
Total Financial Derivative Instruments	$	274		$	(193	)	$	0	$	81
Totals	$	13,791		$	334,027		$	0	$	347,818

There were no significant transfers into or out of Level 3 during the period ended December 31, 2018.

20 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

Notes to Financial Statements

December 31, 2018

1. ORGANIZATION

PIMCO Variable Insurance Trust (the “Trust”) is a Delaware statutory trust established under a trust instrument dated October 3, 1997. The Trust is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Trust is designed to be used as an investment vehicle by separate accounts of insurance companies that fund variable annuity contracts and variable life insurance policies and by qualified pension and retirement plans. Information presented in these financial statements pertains to the Institutional Class, Administrative Class and Advisor Class shares of the PIMCO Long-Term U.S. Government Portfolio (the “Portfolio”) offered by the Trust. Pacific Investment Management Company LLC (“PIMCO”) serves as the investment adviser (the “Adviser”) for the Portfolio.

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Portfolio is treated as an investment company under the reporting requirements of U.S. GAAP. The functional and reporting currency for the Portfolio is the U.S. dollar. The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

(a) Securities Transactions and Investment Income  Securities transactions are recorded as of the trade date for financial reporting purposes. Securities purchased or sold on a when-issued or delayed-delivery basis may be settled beyond a standard settlement period for the security after the trade date. Realized gains (losses) from securities sold are recorded on the identified cost basis. Dividend income is recorded on the ex-dividend date, except certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Portfolio is informed of the ex-dividend date. Interest income, adjusted for the accretion of discounts and amortization of premiums, is recorded on the accrual basis from settlement date, with the exception of securities with a forward starting effective date, where interest income is recorded on the accrual basis from effective date. For convertible securities, premiums attributable to the conversion feature are not amortized. Estimated tax liabilities on certain foreign securities are recorded on an accrual basis and are reflected as components of interest income or net change in unrealized appreciation (depreciation) on investments on the Statement of

Operations, as appropriate. Tax liabilities realized as a result of such security sales are reflected as a component of net realized gain (loss) on investments on the Statement of Operations. Paydown gains (losses) on mortgage-related and other asset-backed securities, if any, are recorded as components of interest income on the Statement of Operations. Income or short-term capital gain distributions received from registered investment companies, if any, are recorded as dividend income. Long-term capital gain distributions received from registered investment companies, if any, are recorded as realized gains.

Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivable when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is probable.

(b) Multi-Class Operations  Each class offered by the Trust has equal rights as to assets and voting privileges (except that shareholders of a class have exclusive voting rights regarding any matter relating solely to that class of shares). Income and non-class specific expenses are allocated daily to each class on the basis of the relative net assets. Realized and unrealized capital gains (losses) are allocated daily based on the relative net assets of each class of the Portfolio. Class specific expenses, where applicable, currently include supervisory and administrative and distribution and servicing fees. Under certain circumstances, the per share net asset value (“NAV”) of a class of the Portfolio’s shares may be different from the per share NAV of another class of shares as a result of the different daily expense accruals applicable to each class of shares.

(c) Distributions to Shareholders  Distributions from net investment income, if any, are declared daily and distributed to shareholders monthly. Net realized capital gains earned by the Portfolio, if any, will be distributed no less frequently than once each year.

Income distributions and capital gain distributions are determined in accordance with income tax regulations which may differ from U.S. GAAP. Differences between tax regulations and U.S. GAAP may cause timing differences between income and capital gain recognition. Further, the character of investment income and capital gains may be different for certain transactions under the two methods of accounting. As a result, income distributions and capital gain distributions declared during a fiscal period may differ significantly from the net investment income (loss) and realized gains (losses) reported on the Portfolio’s annual financial statements presented under U.S. GAAP.

If the Portfolio estimates that a portion of its distribution may be comprised of amounts from sources other than net investment income

ANNUAL REPORT DECEMBER 31, 2018 21

Notes to Financial Statements (Cont.)

in accordance with its policies and good accounting practices, the Portfolio will notify shareholders of the estimated composition of such distribution through a Section 19 Notice. For these purposes, the Portfolio estimates the source or sources from which a distribution is paid, to the close of the period as of which it is paid, in reference to its internal accounting records and related accounting practices. If, based on such accounting records and practices, it is estimated that a particular distribution does not include capital gains or paid-in surplus or other capital sources, a Section 19 Notice generally would not be issued. It is important to note that differences exist between the Portfolio’s daily internal accounting records and practices, the Portfolio’s financial statements presented in accordance with U.S. GAAP, and recordkeeping practices under income tax regulations. For instance, the Portfolio’s internal accounting records and practices may take into account, among other factors, tax-related characteristics of certain sources of distributions that differ from treatment under U.S. GAAP. Examples of such differences may include, among others, the treatment of paydowns on mortgage-backed securities purchased at a discount and periodic payments under interest rate swap contracts. Accordingly, among other consequences, it is possible that the Portfolio may not issue a Section 19 Notice in situations where the Portfolio’s financial statements prepared later and in accordance with U.S. GAAP and/or the final tax character of those distributions might later report that the sources of those distributions included capital gains and/or a return of capital. Final determination of a distribution’s tax character will be provided to shareholders when such information is available.

Distributions classified as a tax basis return of capital, if any, are reflected on the Statements of Changes in Net Assets and have been recorded to paid in capital on the Statement of Assets and Liabilities. In addition, other amounts have been reclassified between distributable earnings (accumulated loss) and paid in capital on the Statement of Assets and Liabilities to more appropriately conform U.S. GAAP to tax characterizations of distributions.

(d) New Accounting Pronouncements  In August 2016, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”), ASU 2016-15, which amends Accounting Standards Codification (“ASC”) 230 to clarify guidance on the classification of certain cash receipts and cash payments in the Statement of Cash Flows. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In November 2016, the FASB issued ASU 2016-18 which amends ASC 230 to provide guidance on the classification and presentation of changes in restricted cash and restricted cash equivalents on the Statement of Cash Flows. The ASU is effective for annual periods

beginning after December 15, 2017, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In March 2017, the FASB issued ASU 2017-08 which provides guidance related to the amortization period for certain purchased callable debt securities held at a premium. The ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In August 2018, the FASB issued ASU 2018-13 which modifies certain disclosure requirements for fair value measurements in ASC 820. The ASU is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. At this time, management has elected to early adopt the amendments that allow for removal of certain disclosure requirements. Management plans to adopt the amendments that require additional fair value measurement disclosures for annual periods beginning after December 15, 2019, and interim periods within those annual periods. Management is currently evaluating the impact of these changes on the financial statements.

In August 2018, the U.S. Securities and Exchange Commission (“SEC”) adopted amendments to certain rules and forms for the purpose of disclosure update and simplification. The compliance date for these amendments is 30 days after date of publication in the Federal Register, which was on October 4, 2018. Management has adopted these amendments and the changes are incorporated throughout all periods presented in the financial statements.

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

(a) Investment Valuation Policies  The price of the Portfolio’s shares is based on the Portfolio’s NAV. The NAV of the Portfolio, or each of its share classes, as applicable, is determined by dividing the total value of portfolio investments and other assets, less any liabilities attributable to the Portfolio or class, by the total number of shares outstanding of the Portfolio or class.

On each day that the New York Stock Exchange (“NYSE”) is open, Portfolio shares are ordinarily valued as of the close of regular trading (“NYSE Close”). Information that becomes known to the Portfolio or its agents after the time as of which NAV has been calculated on a particular day will not generally be used to retroactively adjust the price of a security or the NAV determined earlier that day. The Portfolio reserves the right to change the time as of which its NAV is calculated if the Portfolio closes earlier, or as permitted by the SEC.

22 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

For purposes of calculating a NAV, portfolio securities and other assets for which market quotes are readily available are valued at market value. Market value is generally determined on the basis of official closing prices or the last reported sales prices, or if no sales are reported, based on quotes obtained from established market makers or prices (including evaluated prices) supplied by the Portfolio’s approved pricing services, quotation reporting systems and other third-party sources (together, “Pricing Services”). The Portfolio will normally use pricing data for domestic equity securities received shortly after the NYSE Close and does not normally take into account trading, clearances or settlements that take place after the NYSE Close. If market value pricing is used, a foreign (non-U.S.) equity security traded on a foreign exchange or on more than one exchange is typically valued using pricing information from the exchange considered by the Adviser to be the primary exchange. A foreign (non-U.S.) equity security will be valued as of the close of trading on the foreign exchange, or the NYSE Close, if the NYSE Close occurs before the end of trading on the foreign exchange. Domestic and foreign (non-U.S.) fixed income securities, non-exchange traded derivatives, and equity options are normally valued on the basis of quotes obtained from brokers and dealers or Pricing Services using data reflecting the earlier closing of the principal markets for those securities. Prices obtained from Pricing Services may be based on, among other things, information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics. Certain fixed income securities purchased on a delayed-delivery basis are marked to market daily until settlement at the forward settlement date. Exchange-traded options, except equity options, futures and options on futures are valued at the settlement price determined by the relevant exchange. Swap agreements are valued on the basis of bid quotes obtained from brokers and dealers or market-based prices supplied by Pricing Services. The Portfolio’s investments in open-end management investment companies, other than exchange-traded funds (“ETFs”), are valued at the NAVs of such investments. Open-end management investment companies may include affiliated funds.

If a foreign (non-U.S.) equity security’s value has materially changed after the close of the security’s primary exchange or principal market but before the NYSE Close, the security may be valued at fair value based on procedures established and approved by the Board of Trustees of the Trust (the “Board”). Foreign (non-U.S.) equity securities that do not trade when the NYSE is open are also valued at fair value. With respect to foreign (non-U.S.) equity securities, the Portfolio may determine the fair value of investments based on information provided by Pricing Services and other third-party vendors, which may recommend fair value or adjustments with reference to other securities, indices or assets. In considering whether fair valuation is required and in determining fair values, the Portfolio may, among other things,

consider significant events (which may be considered to include changes in the value of U.S. securities or securities indices) that occur after the close of the relevant market and before the NYSE Close. The Portfolio may utilize modeling tools provided by third-party vendors to determine fair values of foreign (non-U.S.) securities. For these purposes, any movement in the applicable reference index or instrument (“zero trigger”) between the earlier close of the applicable foreign market and the NYSE Close may be deemed to be a significant event, prompting the application of the pricing model (effectively resulting in daily fair valuations). Foreign exchanges may permit trading in foreign (non-U.S.) equity securities on days when the Trust is not open for business, which may result in the Portfolio’s portfolio investments being affected when shareholders are unable to buy or sell shares.

Senior secured floating rate loans for which an active secondary market exists to a reliable degree will be valued at the mean of the last available bid/ask prices in the market for such loans, as provided by a Pricing Service. Senior secured floating rate loans for which an active secondary market does not exist to a reliable degree will be valued at fair value, which is intended to approximate market value. In valuing a senior secured floating rate loan at fair value, the factors considered may include, but are not limited to, the following: (a) the creditworthiness of the borrower and any intermediate participants, (b) the terms of the loan, (c) recent prices in the market for similar loans, if any, and (d) recent prices in the market for instruments of similar quality, rate, period until next interest rate reset and maturity.

Investments valued in currencies other than the U.S. dollar are converted to the U.S. dollar using exchange rates obtained from Pricing Services. As a result, the value of such investments and, in turn, the NAV of the Portfolio’s shares may be affected by changes in the value of currencies in relation to the U.S. dollar. The value of investments traded in markets outside the United States or denominated in currencies other than the U.S. dollar may be affected significantly on a day that the Trust is not open for business. As a result, to the extent that the Portfolio holds foreign (non-U.S.) investments, the value of those investments may change at times when shareholders are unable to buy or sell shares and the value of such investments will be reflected in the Portfolio’s next calculated NAV.

Investments for which market quotes or market based valuations are not readily available are valued at fair value as determined in good faith by the Board or persons acting at their direction. The Board has adopted methods for valuing securities and other assets in circumstances where market quotes are not readily available, and has delegated to the Adviser the responsibility for applying the fair valuation methods. In the event that market quotes or market based valuations are not readily available, and the security or asset cannot be

ANNUAL REPORT DECEMBER 31, 2018 23

Notes to Financial Statements (Cont.)

valued pursuant to a Board approved valuation method, the value of the security or asset will be determined in good faith by the Board. Market quotes are considered not readily available in circumstances where there is an absence of current or reliable market-based data (e.g., trade information, bid/ask information, indicative market quotations (“Broker Quotes”), Pricing Services’ prices), including where events occur after the close of the relevant market, but prior to the NYSE Close, that materially affect the values of the Portfolio’s securities or assets. In addition, market quotes are considered not readily available when, due to extraordinary circumstances, the exchanges or markets on which the securities trade do not open for trading for the entire day and no other market prices are available. The Board has delegated, to the Adviser, the responsibility for monitoring significant events that may materially affect the values of the Portfolio’s securities or assets and for determining whether the value of the applicable securities or assets should be reevaluated in light of such significant events.

When the Portfolio uses fair valuation to determine the value of a portfolio security or other asset for purposes of calculating its NAV, such investments will not be priced on the basis of quotes from the primary market in which they are traded, but rather may be priced by another method that the Board or persons acting at their direction believe reflects fair value. Fair valuation may require subjective determinations about the value of a security. While the Trust’s policy is intended to result in a calculation of the Portfolio’s NAV that fairly reflects security values as of the time of pricing, the Trust cannot ensure that fair values determined by the Board or persons acting at their direction would accurately reflect the price that the Portfolio could obtain for a security if it were to dispose of that security as of the time of pricing (for instance, in a forced or distressed sale). The prices used by the Portfolio may differ from the value that would be realized if the securities were sold. The Portfolio’s use of fair valuation may also help to deter “stale price arbitrage” as discussed under the “Frequent or Excessive Purchases, Exchanges and Redemptions” section in the Portfolio’s prospectus.

(b) Fair Value Hierarchy  U.S. GAAP describes fair value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into levels (Level 1, 2, or 3). The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Levels 1, 2, and 3 of the fair value hierarchy are defined as follows:

^∎  Level 1 — Quoted prices in active markets or exchanges for identical assets and liabilities.

^∎  Level 2 — Significant other observable inputs, which may include, but are not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market corroborated inputs.

^∎  Level 3 — Significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, which may include assumptions made by the Board or persons acting at their direction that are used in determining the fair value of investments.

In accordance with the requirements of U.S. GAAP, the amounts of transfers into and out of Level 3, if material, are disclosed in the Notes to Schedule of Investments for the Portfolio.

For fair valuations using significant unobservable inputs, U.S. GAAP requires a reconciliation of the beginning to ending balances for reported fair values that presents changes attributable to realized gain (loss), unrealized appreciation (depreciation), purchases and sales, accrued discounts (premiums), and transfers into and out of the Level 3 category during the period. The end of period value is used for the transfers between Levels of the Portfolio’s assets and liabilities. Additionally, U.S. GAAP requires quantitative information regarding the significant unobservable inputs used in the determination of fair value of assets or liabilities categorized as Level 3 in the fair value hierarchy. In accordance with the requirements of U.S. GAAP, a fair value hierarchy, and if material, a Level 3 reconciliation and details of significant unobservable inputs, have been included in the Notes to Schedule of Investments for the Portfolio.

(c) Valuation Techniques and the Fair Value Hierarchy

Level 1 and Level 2 trading assets and trading liabilities, at fair value  The valuation methods (or “techniques”) and significant inputs used in determining the fair values of portfolio securities or other assets and liabilities categorized as Level 1 and Level 2 of the fair value hierarchy are as follows:

Fixed income securities including corporate, convertible and municipal bonds and notes, U.S. government agencies, U.S. treasury obligations, sovereign issues, bank loans, convertible preferred securities and non-U.S. bonds are normally valued on the basis of quotes obtained from brokers and dealers or Pricing Services that use broker-dealer quotations, reported trades or valuation estimates from their internal pricing models. The Pricing Services’ internal models use inputs that are

24 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar assets. Securities that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

Fixed income securities purchased on a delayed-delivery basis or as a repurchase commitment in a sale-buyback transaction are marked to market daily until settlement at the forward settlement date and are categorized as Level 2 of the fair value hierarchy.

Mortgage-related and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also normally valued by Pricing Services that use broker-dealer quotations, reported trades or valuation estimates from their internal pricing models. The pricing models for these securities usually consider tranche-level attributes, current market data, estimated cash flows and market-based yield spreads for each tranche, and incorporate deal collateral performance, as available. Mortgage-related and asset-backed securities that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

Common stocks, ETFs, exchange-traded notes and financial derivative instruments, such as futures contracts, rights and warrants, or options on futures that are traded on a national securities exchange, are stated at the last reported sale or settlement price on the day of valuation. To the extent these securities are actively traded and valuation adjustments are not applied, they are categorized as Level 1 of the fair value hierarchy.

Investments in registered open-end investment companies (other than ETFs) will be valued based upon the NAVs of such investments and are categorized as Level 1 of the fair value hierarchy. Investments in unregistered open-end investment companies will be calculated based upon the NAVs of such investments and are considered Level 1 provided that the NAVs are observable, calculated daily and are the value at which both purchases and sales will be conducted.

Equity exchange-traded options and over the counter financial derivative instruments, such as forward foreign currency contracts and options contracts derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors. These contracts are normally valued on the basis of quotes obtained from a quotation reporting system, established market makers or Pricing Services (normally determined as of the NYSE Close). Depending on the product and the terms of the transaction, financial derivative instruments can be valued by Pricing Services using a series of techniques, including simulation pricing models. The pricing models

use inputs that are observed from actively quoted markets such as quoted prices, issuer details, indices, bid/ask spreads, interest rates, implied volatilities, yield curves, dividends and exchange rates. Financial derivative instruments that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

Centrally cleared swaps and over the counter swaps derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors. They are valued using a broker-dealer bid quotation or on market-based prices provided by Pricing Services (normally determined as of the NYSE close). Centrally cleared swaps and over the counter swaps can be valued by Pricing Services using a series of techniques, including simulation pricing models. The pricing models may use inputs that are observed from actively quoted markets such as the overnight index swap rate (“OIS”), London Interbank Offered Rate (“LIBOR”) forward rate, interest rates, yield curves and credit spreads. These securities are categorized as Level 2 of the fair value hierarchy.

Level 3 trading assets and trading liabilities, at fair value  When a fair valuation method is applied by the Adviser that uses significant unobservable inputs, investments will be priced by a method that the Board or persons acting at their direction believe reflects fair value and are categorized as Level 3 of the fair value hierarchy.

Short-term debt instruments (such as commercial paper) having a remaining maturity of 60 days or less may be valued at amortized cost, so long as the amortized cost value of such short-term debt instruments is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. These securities are categorized as Level 2 or Level 3 of the fair value hierarchy depending on the source of the base price.

4. SECURITIES AND OTHER INVESTMENTS

(a) Investments in Affiliates

The Portfolio may invest in the PIMCO Short Asset Portfolio and the PIMCO Short-Term Floating NAV Portfolio III (“Central Funds”) to the extent permitted by the Act and rules thereunder. The Central Funds are registered investment companies created for use solely by the series of the Trust and other series of registered investment companies advised by the Adviser, in connection with their cash management activities. The main investments of the Central Funds are money market and short maturity fixed income instruments. The Central Funds may incur expenses related to their investment activities, but do not pay Investment Advisory Fees or Supervisory and Administrative Fees to the

ANNUAL REPORT DECEMBER 31, 2018 25

Notes to Financial Statements (Cont.)

Adviser. The Central Funds are considered to be affiliated with the Portfolio. The tables below show the Portfolio’s transactions in and earnings from investments in the affiliated Funds for the period ended December 31, 2018 (amounts in thousands^†):

Investment in PIMCO Short Asset Portfolio

Market Value 12/31/2017		Purchases at Cost		Proceeds from Sales		Net Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)			Market Value 12/31/2018		Dividend Income(1)		Realized Net Capital  Gain Distributions(1)
$	11,440	$	329	$	0	$	0	$	(105	)	$	11,664	$	315	$	13

Investment in PIMCO Short-Term Floating NAV Portfolio III

Market Value 12/31/2017		Purchases at Cost		Proceeds from Sales			Net Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)		Market Value 12/31/2018		Dividend Income(1)		Realized Net Capital  Gain Distributions(1)
$	1,038	$	776,392	$	(775,600	)	$	23	$	0	$	1,853	$	92	$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽¹⁾  The tax characterization of distributions is determined in accordance with Federal income tax regulations and may contain a return of capital. The actual tax characterization of distributions received is determined at the end of the fiscal year of the affiliated fund. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

(b) Investments in Securities

The Portfolio may utilize the investments and strategies described below to the extent permitted by the Portfolio’s investment policies.

Delayed-Delivery Transactions involve a commitment by the Portfolio to purchase or sell securities for a predetermined price or yield, with payment and delivery taking place beyond the customary settlement period. When delayed-delivery transactions are outstanding, the Portfolio will designate or receive as collateral liquid assets in an amount sufficient to meet the purchase price or respective obligations. When purchasing a security on a delayed-delivery basis, the Portfolio assumes the rights and risks of ownership of the security, including the risk of price and yield fluctuations, and takes such fluctuations into account when determining its NAV. The Portfolio may dispose of or renegotiate a delayed-delivery transaction after it is entered into, which may result in a realized gain (loss). When the Portfolio has sold a security on a delayed delivery basis, the Portfolio does not participate in future gains (losses) with respect to the security.

Inflation-Indexed Bonds are fixed income securities whose principal value is periodically adjusted by the rate of inflation. The interest rate on these bonds is generally fixed at issuance at a rate lower than typical bonds. Over the life of an inflation-indexed bond, however, interest will be paid based on a principal value which is adjusted for inflation. Any increase or decrease in the principal amount of an inflation-indexed bond will be included as interest income on the Statement of Operations, even though investors do not receive their principal until maturity. Repayment of the original bond principal upon maturity (as adjusted for inflation) is guaranteed in the case of U.S. Treasury Inflation-Protected Securities (“TIPS”). For bonds that do not provide a similar guarantee, the adjusted principal value of the bond repaid at maturity may be less than the original principal.

Mortgage-Related and Other Asset-Backed Securities directly or indirectly represent a participation in, or are secured by and payable from, loans on real property. Mortgage-related securities are created from pools of residential or commercial mortgage loans, including mortgage loans made by savings and loan institutions, mortgage bankers, commercial banks and others. These securities provide a monthly payment which consists of both interest and principal. Interest may be determined by fixed or adjustable rates. The rate of prepayments on underlying mortgages will affect the price and volatility of a mortgage-related security, and may have the effect of shortening or extending the effective duration of the security relative to what was anticipated at the time of purchase. The timely payment of principal and interest of certain mortgage-related securities is guaranteed with the full faith and credit of the U.S. Government. Pools created and guaranteed by non-governmental issuers, including government-sponsored corporations, may be supported by various forms of insurance or guarantees, but there can be no assurance that private insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Many of the risks of investing in mortgage-related securities secured by commercial mortgage loans reflect the effects of local and other economic conditions on real estate markets, the ability of tenants to make lease payments, and the ability of a property to attract and retain tenants. These securities may be less liquid and may exhibit greater price volatility than other types of mortgage-related or other asset-backed securities. Other asset-backed securities are created from many types of assets, including, but not limited to, auto loans, accounts receivable, such as credit card receivables and hospital account receivables, home equity loans, student loans, boat loans, mobile home loans, recreational vehicle loans, manufactured housing loans, aircraft leases, computer leases and syndicated bank loans.

26 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

Collateralized Mortgage Obligations (“CMOs”) are debt obligations of a legal entity that are collateralized by whole mortgage loans or private mortgage bonds and divided into classes. CMOs are structured into multiple classes, often referred to as “tranches”, with each class bearing a different stated maturity and entitled to a different schedule for payments of principal and interest, including prepayments. CMOs may be less liquid and may exhibit greater price volatility than other types of mortgage-related or asset-backed securities.

Securities Issued by U.S. Government Agencies or Government-Sponsored Enterprises are obligations of and, in certain cases, guaranteed by, the U.S. Government, its agencies or instrumentalities. Some U.S. Government securities, such as Treasury bills, notes and bonds, and securities guaranteed by the Government National Mortgage Association (“GNMA” or “Ginnie Mae”), are supported by the full faith and credit of the U.S. Government; others, such as those of the Federal Home Loan Banks, are supported by the right of the issuer to borrow from the U.S. Department of the Treasury (the “U.S. Treasury”); and others, such as those of the Federal National Mortgage Association (“FNMA” or “Fannie Mae”), are supported by the discretionary authority of the U.S. Government to purchase the agency’s obligations. U.S. Government securities may include zero coupon securities. Zero coupon securities do not distribute interest on a current basis and tend to be subject to a greater risk than interest-paying securities.

Government-related guarantors (i.e., not backed by the full faith and credit of the U.S. Government) include FNMA and the Federal Home Loan Mortgage Corporation (“FHLMC” or “Freddie Mac”). FNMA is a government-sponsored corporation. FNMA purchases conventional (i.e., not insured or guaranteed by any government agency) residential mortgages from a list of approved seller/servicers which include state and federally chartered savings and loan associations, mutual savings banks, commercial banks and credit unions and mortgage bankers. Pass-through securities issued by FNMA are guaranteed as to timely payment of principal and interest by FNMA, but are not backed by the full faith and credit of the U.S. Government. FHLMC issues Participation Certificates (“PCs”), which are pass-through securities, each representing an undivided interest in a pool of residential mortgages. FHLMC guarantees the timely payment of interest and ultimate collection of principal, but PCs are not backed by the full faith and credit of the U.S. Government.

Roll-timing strategies can be used where the Portfolio seeks to extend the expiration or maturity of a position, such as a TBA security on an underlying asset, by closing out the position before expiration and opening a new position with respect to substantially the same underlying asset with a later expiration date. TBA securities purchased or sold are reflected on the Statement of Assets and Liabilities as an asset or liability, respectively.

Separate Trading of Registered Interest and Principal of Securities (“STRIPS”) are U.S. Treasury fixed income securities in which the principal is separated, or stripped, from the interest and each takes the form of zero coupon securities. A STRIP is sold at a significant discount to face value and offers no interest payments; rather, investors receive payment at maturity. Zero coupon securities do not distribute interest on a current basis and tend to be subject to greater risk than interest-paying securities.

When-Issued Transactions are purchases or sales made on a when-issued basis. These transactions are made conditionally because a security, although authorized, has not yet been issued in the market. Transactions to purchase or sell securities on a when-issued basis involve a commitment by the Portfolio to purchase or sell these securities for a predetermined price or yield, with payment and delivery taking place beyond the customary settlement period. The Portfolio may sell when-issued securities before they are delivered, which may result in a realized gain (loss).

5. BORROWINGS AND OTHER FINANCING TRANSACTIONS

The Portfolio may enter into the borrowings and other financing transactions described below to the extent permitted by the Portfolio’s investment policies.

The following disclosures contain information on the Portfolio’s ability to lend or borrow cash or securities to the extent permitted under the Act, which may be viewed as borrowing or financing transactions by the Portfolio. The location of these instruments in the Portfolio’s financial statements is described below.

(a) Repurchase Agreements  Under the terms of a typical repurchase agreement, the Portfolio purchases an underlying debt obligation (collateral) subject to an obligation of the seller to repurchase, and the Portfolio to resell, the obligation at an agreed-upon price and time. In an open maturity repurchase agreement, there is no pre-determined repurchase date and the agreement can be terminated by the Portfolio or counterparty at any time. The underlying securities for all repurchase agreements are held by the Portfolio’s custodian or designated subcustodians under tri-party repurchase agreements and in certain instances will remain in custody with the counterparty. The market value of the collateral must be equal to or exceed the total amount of the repurchase obligations, including interest. Repurchase agreements, if any, including accrued interest, are included on the Statement of Assets and Liabilities. Interest earned is recorded as a component of interest income on the Statement of Operations. In periods of increased demand for collateral, the Portfolio may pay a fee for the receipt of collateral, which may result in interest expense to the Portfolio.

ANNUAL REPORT DECEMBER 31, 2018 27

Notes to Financial Statements (Cont.)

(b) Reverse Repurchase Agreements  In a reverse repurchase agreement, the Portfolio delivers a security in exchange for cash to a financial institution, the counterparty, with a simultaneous agreement to repurchase the same or substantially the same security at an agreed upon price and date. In an open maturity reverse repurchase agreement, there is no pre-determined repurchase date and the agreement can be terminated by the Portfolio or counterparty at any time. The Portfolio is entitled to receive principal and interest payments, if any, made on the security delivered to the counterparty during the term of the agreement. Cash received in exchange for securities delivered plus accrued interest payments to be made by the Portfolio to counterparties are reflected as a liability on the Statement of Assets and Liabilities. Interest payments made by the Portfolio to counterparties are recorded as a component of interest expense on the Statement of Operations. In periods of increased demand for the security, the Portfolio may receive a fee for use of the security by the counterparty, which may result in interest income to the Portfolio. The Portfolio will segregate assets determined to be liquid by the Adviser or will otherwise cover its obligations under reverse repurchase agreements.

(c) Sale-Buybacks  A sale-buyback financing transaction consists of a sale of a security by the Portfolio to a financial institution, the counterparty, with a simultaneous agreement to repurchase the same or substantially the same security at an agreed-upon price and date. The Portfolio is not entitled to receive principal and interest payments, if any, made on the security sold to the counterparty during the term of the agreement. The agreed-upon proceeds for securities to be repurchased by the Portfolio are reflected as a liability on the Statement of Assets and Liabilities. The Portfolio will recognize net income represented by the price differential between the price received for the transferred security and the agreed-upon repurchase price. This is commonly referred to as the ‘price drop’. A price drop consists of (i) the foregone interest and inflationary income adjustments, if any, the Portfolio would have otherwise received had the security not been sold and (ii) the negotiated financing terms between the Portfolio and counterparty. Foregone interest and inflationary income adjustments, if any, are recorded as components of interest income on the Statement of Operations. Interest payments based upon negotiated financing terms made by the Portfolio to counterparties are recorded as a component of interest expense on the Statement of Operations. In periods of increased demand for the security, the Portfolio may receive a fee for use of the security by the counterparty, which may result in interest income to the Portfolio. The Portfolio will segregate assets determined to be liquid by the Adviser or will otherwise cover its obligations under sale-buyback transactions.

(d) Short Sales  Short sales are transactions in which the Portfolio sells a security that it may not own. The Portfolio may make short sales of

securities to (i) offset potential declines in long positions in similar securities, (ii) to increase the flexibility of the Portfolio, (iii) for investment return, (iv) as part of a risk arbitrage strategy, and (v) as part of its overall portfolio management strategies involving the use of derivative instruments. When the Portfolio engages in a short sale, it may borrow the security sold short and deliver it to the counterparty. The Portfolio will ordinarily have to pay a fee or premium to borrow a security and be obligated to repay the lender of the security any dividend or interest that accrues on the security during the period of the loan. Securities sold in short sale transactions and the dividend or interest payable on such securities, if any, are reflected as payable for short sales on the Statement of Assets and Liabilities. Short sales expose the Portfolio to the risk that it will be required to cover its short position at a time when the security or other asset has appreciated in value, thus resulting in losses to the Portfolio. A short sale is “against the box” if the Portfolio holds in its portfolio or has the right to acquire the security sold short, or securities identical to the security sold short, at no additional cost. The Portfolio will be subject to additional risks to the extent that it engages in short sales that are not “against the box.” The Portfolio’s loss on a short sale could theoretically be unlimited in cases where the Portfolio is unable, for whatever reason, to close out its short position.

6. FINANCIAL DERIVATIVE INSTRUMENTS

The Portfolio may enter into the financial derivative instruments described below to the extent permitted by the Portfolio’s investment policies.

The following disclosures contain information on how and why the Portfolio uses financial derivative instruments, and how financial derivative instruments affect the Portfolio’s financial position, results of operations and cash flows. The location and fair value amounts of these instruments on the Statement of Assets and Liabilities and the net realized gain (loss) and net change in unrealized appreciation (depreciation) on the Statement of Operations, each categorized by type of financial derivative contract and related risk exposure, are included in a table in the Notes to Schedule of Investments. The financial derivative instruments outstanding as of period end and the amounts of net realized gain (loss) and net change in unrealized appreciation (depreciation) on financial derivative instruments during the period, as disclosed in the Notes to Schedule of Investments, serve as indicators of the volume of financial derivative activity for the Portfolio.

(a) Futures Contracts are agreements to buy or sell a security or other asset for a set price on a future date. The Portfolio may use futures contracts to manage its exposure to the securities markets or to movements in interest rates and currency values. The primary risks

28 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

associated with the use of futures contracts are the imperfect correlation between the change in market value of the securities held by the Portfolio and the prices of futures contracts and the possibility of an illiquid market. Futures contracts are valued based upon their quoted daily settlement prices. Upon entering into a futures contract, the Portfolio is required to deposit with its futures broker an amount of cash, U.S. Government and Agency Obligations, or select sovereign debt, in accordance with the initial margin requirements of the broker or exchange. Futures contracts are marked to market daily and based on such movements in the price of the contracts, an appropriate payable or receivable for the change in value may be posted or collected by the Portfolio (“Futures Variation Margin”). Gains (losses) are recognized but not considered realized until the contracts expire or close. Futures contracts involve, to varying degrees, risk of loss in excess of the Futures Variation Margin included within exchange traded or centrally cleared financial derivative instruments on the Statement of Assets and Liabilities.

(b) Options Contracts may be written or purchased to enhance returns or to hedge an existing position or future investment. The Portfolio may write call and put options on securities and financial derivative instruments it owns or in which it may invest. Writing put options tends to increase the Portfolio’s exposure to the underlying instrument. Writing call options tends to decrease the Portfolio’s exposure to the underlying instrument. When the Portfolio writes a call or put, an amount equal to the premium received is recorded and subsequently marked to market to reflect the current value of the option written. These amounts are included on the Statement of Assets and Liabilities. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options which are exercised or closed are added to the proceeds or offset against amounts paid on the underlying futures, swap, security or currency transaction to determine the realized gain (loss). Certain options may be written with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. The Portfolio as a writer of an option has no control over whether the underlying instrument may be sold (“call”) or purchased (“put”) and as a result bears the market risk of an unfavorable change in the price of the instrument underlying the written option. There is the risk the Portfolio may not be able to enter into a closing transaction because of an illiquid market.

Purchasing call options tends to increase the Portfolio’s exposure to the underlying instrument. Purchasing put options tends to decrease the Portfolio’s exposure to the underlying instrument. The Portfolio pays a premium which is included as an asset on the Statement of Assets and Liabilities and subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options which expire

are treated as realized losses. Certain options may be purchased with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. The risk associated with purchasing put and call options is limited to the premium paid. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the underlying investment transaction to determine the realized gain (loss) when the underlying transaction is executed.

Inflation-Capped Options may be written or purchased to enhance returns or for hedging opportunities. The purpose of purchasing inflation-capped options is to protect the Portfolio from inflation erosion above a certain rate on a given notional exposure. A floor can be used to give downside protection to investments in inflation-linked products.

Interest Rate-Capped Options may be written or purchased to enhance returns or for hedging opportunities. The purpose of purchasing interest rate-capped options is to protect the Portfolio from floating rate risk above a certain rate on a given notional exposure. A floor can be used to give downside protection to investments in interest rate linked products.

Interest Rate Swaptions may be written or purchased to enter into a pre-defined swap agreement or to shorten, extend, cancel or otherwise modify an existing swap agreement, by some specified date in the future. The writer of the swaption becomes the counterparty to the swap if the buyer exercises. The interest rate swaption agreement will specify whether the buyer of the swaption will be a fixed-rate receiver or a fixed-rate payer upon exercise.

Options on Exchange-Traded Futures Contracts (“Futures Option”) may be written or purchased to hedge an existing position or future investment, for speculative purposes or to manage exposure to market movements. A Futures Option is an option contract in which the underlying instrument is a single futures contract.

Options on Securities may be written or purchased to enhance returns or to hedge an existing position or future investment. An option on a security uses a specified security as the underlying instrument for the option contract.

(c) Swap Agreements are bilaterally negotiated agreements between the Portfolio and a counterparty to exchange or swap investment cash flows, assets, foreign currencies or market-linked returns at specified, future intervals. Swap agreements may be privately negotiated in the over the counter market (“OTC swaps”) or may be cleared through a third party, known as a central counterparty or derivatives clearing organization (“Centrally Cleared Swaps”). The Portfolio may enter into asset, credit default, cross-currency, interest rate, total return, variance and other forms of swap agreements to manage its exposure to credit,

ANNUAL REPORT DECEMBER 31, 2018 29

Notes to Financial Statements (Cont.)

currency, interest rate, commodity, equity and inflation risk. In connection with these agreements, securities or cash may be identified as collateral or margin in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default or bankruptcy/insolvency.

Centrally Cleared Swaps are marked to market daily based upon valuations as determined from the underlying contract or in accordance with the requirements of the central counterparty or derivatives clearing organization. Changes in market value, if any, are reflected as a component of net change in unrealized appreciation (depreciation) on the Statement of Operations. Daily changes in valuation of centrally cleared swaps (“Swap Variation Margin”), if any, are disclosed within centrally cleared financial derivative instruments on the Statement of Assets and Liabilities. Centrally Cleared and OTC swap payments received or paid at the beginning of the measurement period are included on the Statement of Assets and Liabilities and represent premiums paid or received upon entering into the swap agreement to compensate for differences between the stated terms of the swap agreement and prevailing market conditions (credit spreads, currency exchange rates, interest rates, and other relevant factors). Upfront premiums received (paid) are initially recorded as liabilities (assets) and subsequently marked to market to reflect the current value of the swap. These upfront premiums are recorded as realized gain (loss) on the Statement of Operations upon termination or maturity of the swap. A liquidation payment received or made at the termination of the swap is recorded as realized gain (loss) on the Statement of Operations. Net periodic payments received or paid by the Portfolio are included as part of realized gain (loss) on the Statement of Operations.

For purposes of applying certain of the Portfolio’s investment policies and restrictions, swap agreements, like other derivative instruments, may be valued by the Portfolio at market value, notional value or full exposure value. In the case of a credit default swap, in applying certain of the Portfolio’s investment policies and restrictions, the Portfolio will value the credit default swap at its notional value or its full exposure value (i.e., the sum of the notional amount for the contract plus the market value), but may value the credit default swap at market value for purposes of applying certain of the Portfolio’s other investment policies and restrictions. For example, the Portfolio may value credit default swaps at full exposure value for purposes of the Portfolio’s credit quality guidelines (if any) because such value in general better reflects the Portfolio’s actual economic exposure during the term of the credit default swap agreement. As a result, the Portfolio may, at times, have notional exposure to an asset class (before netting) that is greater or lesser than the stated limit or restriction noted in the Portfolio’s prospectus. In this context, both the notional amount and the market value may be positive or negative depending on whether the Portfolio

is selling or buying protection through the credit default swap. The manner in which certain securities or other instruments are valued by the Portfolio for purposes of applying investment policies and restrictions may differ from the manner in which those investments are valued by other types of investors.

Entering into swap agreements involves, to varying degrees, elements of interest, credit, market and documentation risk in excess of the amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of contractual terms in the agreements and that there may be unfavorable changes in interest rates or the values of the asset upon which the swap is based.

The Portfolio’s maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from the counterparty over the contract’s remaining life, to the extent that amount is positive. The risk may be mitigated by having a master netting arrangement between the Portfolio and the counterparty and by the posting of collateral to the Portfolio to cover the Portfolio’s exposure to the counterparty.

To the extent the Portfolio has a policy to limit the net amount owed to or to be received from a single counterparty under existing swap agreements, such limitation only applies to counterparties to OTC swaps and does not apply to centrally cleared swaps where the counterparty is a central counterparty or derivatives clearing organization.

Interest Rate Swap Agreements may be entered into to help hedge against interest rate risk exposure and to maintain the Portfolio’s ability to generate income at prevailing market rates. The value of the fixed rate bonds that the Portfolio holds may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, the Portfolio may enter into interest rate swap agreements. Interest rate swap agreements involve the exchange by the Portfolio with another party for their respective commitment to pay or receive interest on the notional amount of principal. Certain forms of interest rate swap agreements may include: (i) interest rate caps, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates exceed a specified rate, or “cap”, (ii) interest rate floors, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates fall below a specified rate, or “floor”, (iii) interest rate collars, under which a party sells a cap and purchases a floor or vice versa in an attempt to protect itself against interest rate movements exceeding given minimum or maximum levels, (iv) callable interest rate swaps, under which the buyer pays an upfront fee in consideration for the right to early terminate the swap

30 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

transaction in whole, at zero cost and at a predetermined date and time prior to the maturity date, (v) spreadlocks, which allow the interest rate swap users to lock in the forward differential (or spread) between the interest rate swap rate and a specified benchmark, or (vi) basis swaps, under which two parties can exchange variable interest rates based on different segments of money markets.

7. PRINCIPAL RISKS

The principal risks of investing in the Portfolio, which could adversely affect its net asset value, yield and total return, are listed below. Please see “Description of Principal Risks” in the Portfolio’s prospectus for a more detailed description of the risks of investing in the Portfolio.

Interest Rate Risk is the risk that fixed income securities will decline in value because of an increase in interest rates; a portfolio with a longer average portfolio duration will be more sensitive to changes in interest rates than a portfolio with a shorter average portfolio duration.

Call Risk is the risk that an issuer may exercise its right to redeem a fixed income security earlier than expected (a call). Issuers may call outstanding securities prior to their maturity for a number of reasons (e.g., declining interest rates, changes in credit spreads and improvements in the issuer’s credit quality). If an issuer calls a security that the Portfolio has invested in, the Portfolio may not recoup the full amount of its initial investment and may be forced to reinvest in lower-yielding securities, securities with greater credit risks or securities with other, less favorable features.

Credit Risk is the risk that the Portfolio could lose money if the issuer or guarantor of a fixed income security, or the counterparty to a derivative contract, is unable or unwilling to meet its financial obligations.

Market Risk is the risk that the value of securities owned by the Portfolio may go up or down, sometimes rapidly or unpredictably, due to factors affecting securities markets generally or particular industries.

Issuer Risk is the risk that the value of a security may decline for a reason directly related to the issuer, such as management performance, financial leverage and reduced demand for the issuer’s goods or services.

Derivatives Risk is the risk of investing in derivative instruments (such as futures, swaps and structured securities), including leverage, liquidity, interest rate, market, credit and management risks, mispricing or valuation complexity. Changes in the value of the derivative may not correlate perfectly with, and may be more sensitive to market events than, the underlying asset, rate or index, and the Portfolio could lose more than the initial amount invested. The Portfolio’s use of derivatives may result in losses to the Portfolio, a reduction in the Portfolio’s returns and/or increased volatility. Over-the-counter (“OTC”) derivatives are also subject to the risk that a counterparty to the

transaction will not fulfill its contractual obligations to the other party, as many of the protections afforded to centrally-cleared derivative transactions might not be available for OTC derivatives. For derivatives traded on an exchange or through a central counterparty, credit risk resides with the Portfolio’s clearing broker, or the clearinghouse itself, rather than with a counterparty in an OTC derivative transaction. Changes in regulation relating to a mutual fund’s use of derivatives and related instruments could potentially limit or impact the Portfolio’s ability to invest in derivatives, limit the Portfolio’s ability to employ certain strategies that use derivatives and/or adversely affect the value of derivatives and the Portfolio’s performance.

Equity Risk is the risk that the value of equity securities, such as common stocks and preferred securities, may decline due to general market conditions which are not specifically related to a particular company or to factors affecting a particular industry or industries. Equity securities generally have greater price volatility than fixed income securities.

Mortgage-Related and Other Asset-Backed Securities Risk is the risk of investing in mortgage-related and other asset-backed securities, including interest rate risk, extension risk, prepayment risk and credit risk.

Leveraging Risk is the risk that certain transactions of the Portfolio, such as reverse repurchase agreements, loans of portfolio securities, and the use of when-issued, delayed delivery or forward commitment transactions, or derivative instruments, may give rise to leverage, magnifying gains and losses and causing the Portfolio to be more volatile than if it had not been leveraged. This means that leverage entails a heightened risk of loss.

Management Risk is the risk that the investment techniques and risk analyses applied by PIMCO will not produce the desired results and that legislative, regulatory, or tax restrictions, policies or developments may affect the investment techniques available to PIMCO and the individual portfolio manager in connection with managing the Portfolio. There is no guarantee that the investment objective of the Portfolio will be achieved.

Short Exposure Risk is the risk of entering into short sales, including the potential loss of more money than the actual cost of the investment, and the risk that the third party to the short sale will not fulfill its contractual obligations, causing a loss to the Portfolio.

8. MASTER NETTING ARRANGEMENTS

The Portfolio may be subject to various netting arrangements (“Master Agreements”) with select counterparties. Master Agreements govern the terms of certain transactions, and are intended to reduce the

ANNUAL REPORT DECEMBER 31, 2018 31

Notes to Financial Statements (Cont.)

counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that is intended to improve legal certainty. Each type of Master Agreement governs certain types of transactions. Different types of transactions may be traded out of different legal entities or affiliates of a particular organization, resulting in the need for multiple agreements with a single counterparty. As the Master Agreements are specific to unique operations of different asset types, they allow the Portfolio to close out and net its total exposure to a counterparty in the event of a default with respect to all the transactions governed under a single Master Agreement with a counterparty. For financial reporting purposes the Statement of Assets and Liabilities generally presents derivative assets and liabilities on a gross basis, which reflects the full risks and exposures prior to netting.

Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. Under most Master Agreements, collateral is routinely transferred if the total net exposure to certain transactions (net of existing collateral already in place) governed under the relevant Master Agreement with a counterparty in a given account exceeds a specified threshold, which typically ranges from zero to $250,000 depending on the counterparty and the type of Master Agreement. United States Treasury Bills and U.S. dollar cash are generally the preferred forms of collateral, although other securities may be used depending on the terms outlined in the applicable Master Agreement. Securities and cash pledged as collateral are reflected as assets on the Statement of Assets and Liabilities as either a component of Investments at value (securities) or Deposits with counterparty. Cash collateral received is not typically held in a segregated account and as such is reflected as a liability on the Statement of Assets and Liabilities as Deposits from counterparty. The market value of any securities received as collateral is not reflected as a component of NAV. The Portfolio’s overall exposure to counterparty risk can change substantially within a short period, as it is affected by each transaction subject to the relevant Master Agreement.

Master Repurchase Agreements and Global Master Repurchase Agreements (individually and collectively “Master Repo Agreements”) govern repurchase, reverse repurchase, and certain sale-buyback transactions between the Portfolio and select counterparties. Master Repo Agreements maintain provisions for, among other things, initiation, income payments, events of default, and maintenance of collateral. The market value of transactions under the Master Repo Agreement, collateral pledged or received, and the net exposure by counterparty as of period end are disclosed in the Notes to Schedule of Investments.

Master Securities Forward Transaction Agreements (“Master Forward Agreements”) govern certain forward settling transactions, such as TBA

securities, delayed-delivery or certain sale-buyback transactions by and between the Portfolio and select counterparties. The Master Forward Agreements maintain provisions for, among other things, transaction initiation and confirmation, payment and transfer, events of default, termination, and maintenance of collateral. The market value of forward settling transactions, collateral pledged or received, and the net exposure by counterparty as of period end is disclosed in the Notes to Schedule of Investments.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Such transactions require posting of initial margin as determined by each relevant clearing agency which is segregated in an account at a futures commission merchant (“FCM”) registered with the Commodity Futures Trading Commission (“CFTC”). In the United States, counterparty risk may be reduced as creditors of an FCM cannot have a claim to Portfolio assets in the segregated account. Portability of exposure reduces risk to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives unless the parties have agreed to a separate arrangement in respect of portfolio margining. The market value or accumulated unrealized appreciation (depreciation), initial margin posted, and any unsettled variation margin as of period end are disclosed in the Notes to Schedule of Investments.

International Swaps and Derivatives Association, Inc. Master Agreements and Credit Support Annexes (“ISDA Master Agreements”) govern bilateral OTC derivative transactions entered into by the Portfolio with select counterparties. ISDA Master Agreements maintain provisions for general obligations, representations, agreements, collateral posting and events of default or termination. Events of termination include conditions that may entitle counterparties to elect to terminate early and cause settlement of all outstanding transactions under the applicable ISDA Master Agreement. Any election to terminate early could be material to the financial statements. In limited circumstances, the ISDA Master Agreement may contain additional provisions that add counterparty protection beyond coverage of existing daily exposure if the counterparty has a decline in credit quality below a predefined level. These amounts, if any, may be segregated with a third-party custodian. The market value of OTC financial derivative instruments, collateral received or pledged, and net exposure by counterparty as of period end are disclosed in the Notes to Schedule of Investments.

9. FEES AND EXPENSES

(a) Investment Advisory Fee  PIMCO is a majority-owned subsidiary of Allianz Asset Management of America L.P. (“Allianz Asset Management”) and serves as the Adviser to the Trust, pursuant to an

32 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

investment advisory contract. The Adviser receives a monthly fee from the Portfolio at an annual rate based on average daily net assets (the “Investment Advisory Fee”). The Investment Advisory Fee for all classes is charged at an annual rate as noted in the table in note (b) below.

(b) Supervisory and Administrative Fee  PIMCO serves as administrator (the “Administrator”) and provides supervisory and administrative services to the Trust for which it receives a monthly supervisory and administrative fee based on each share class’s average daily net assets (the “Supervisory and Administrative Fee”). As the Administrator, PIMCO bears the costs of various third-party services, including audit, custodial, portfolio accounting, legal, transfer agency and printing costs.

The Investment Advisory Fee and Supervisory and Administrative Fees for all classes, as applicable, are charged at the annual rate as noted in the following table (calculated as a percentage of the Portfolio’s average daily net assets attributable to each class):

Investment Advisory Fee		Supervisory and Administrative Fee
All Classes		Institutional Class		Administrative Class		Advisor Class
	0.225%		0.25%		0.25%		0.25%

(c) Distribution and Servicing Fees  PIMCO Investments LLC, a wholly-owned subsidiary of PIMCO, serves as the distributor (“Distributor”) of the Trust’s shares.

The Trust has adopted an Administrative Services Plan with respect to the Administrative Class shares of the Portfolio pursuant to Rule 12b-1 under the Act (the “Administrative Plan”). Under the terms of the Administrative Plan, the Trust is permitted to compensate the Distributor, out of the Administrative Class assets of the Portfolio, in an amount up to 0.15% on an annual basis of the average daily net assets of that class, for providing or procuring through financial intermediaries administrative, recordkeeping and investor services for Administrative Class shareholders of the Portfolio.

The Trust has adopted a separate Distribution and Servicing Plan for the Advisor Class shares of the Portfolio (the “Distribution and Servicing Plan”). The Distribution and Servicing Plan has been adopted pursuant to Rule 12b-1 under the Act. The Distribution and Servicing Plan permits the Portfolio to compensate the Distributor for providing or procuring through financial intermediaries, distribution, administrative, recordkeeping, shareholder and/or related services with respect to Advisor Class shares. The Distribution and Servicing Plan permits the Portfolio to make total payments at an annual rate of up to 0.25% of its average daily net assets attributable to its Advisor Class shares.

	Distribution Fee		Servicing Fee
Administrative Class		—		0.15%
Advisor Class		0.25%		—

(d) Portfolio Expenses  PIMCO provides or procures supervisory and administrative services for shareholders and also bears the costs of various third-party services required by the Portfolio, including audit, custodial, portfolio accounting, legal, transfer agency and printing costs. The Trust is responsible for the following expenses: (i) taxes and governmental fees; (ii) brokerage fees and commissions and other portfolio transaction expenses; (iii) the costs of borrowing money, including interest expense; (iv) fees and expenses of the Trustees who are not “interested persons” of PIMCO or the Trust, and any counsel retained exclusively for their benefit; (v) extraordinary expense, including costs of litigation and indemnification expenses; (vi) organizational expenses; and (vii) any expenses allocated or allocable to a specific class of shares, which include service fees payable with respect to the Administrative Class Shares, and may include certain other expenses as permitted by the Trust’s Multi-Class Plan adopted pursuant to Rule 18f-3 under the Act and subject to review and approval by the Trustees. The ratio of expenses to average net assets per share class, as disclosed on the Financial Highlights, may differ from the annual portfolio operating expenses per share class.

Each Trustee, other than those affiliated with PIMCO or its affiliates, receives an annual retainer of $41,200, plus $4,250 for each Board meeting attended in person, $850 for each committee meeting attended and $750 for each Board meeting attended telephonically, plus reimbursement of related expenses. In addition, the audit committee chair receives an additional annual retainer of $8,000, the valuation oversight committee lead receives an additional annual retainer of $8,500 (to the extent there are co-leads of the valuation oversight committee, the annual retainer will be split evenly between the co-leads, so that each co-lead individually receives an additional annual retainer of $4,250) and each other committee chair receives an additional annual retainer of $5,500. The Lead Independent Trustee receives an annual retainer of $7,000.

These expenses are allocated on a pro rata basis to each Portfolio of the Trust according to its respective net assets. The Trust pays no compensation directly to any Trustee or any other officer who is affiliated with the Administrator, all of whom receive remuneration for their services to the Trust from the Administrator or its affiliates.

(e) Expense Limitation  Pursuant to the Expense Limitation Agreement, PIMCO has agreed to waive a portion of the Portfolio’s Supervisory and Administrative Fee, or reimburse the Portfolio, to the extent that the Portfolio’s organizational expenses, pro rata share of expenses related to obtaining or maintaining a Legal Entity Identifier and pro rata share of Trustee Fees exceed 0.0049%, the “Expense Limit” (calculated as a percentage of the Portfolio’s average daily net assets attributable to each class). The Expense Limitation Agreement will automatically

ANNUAL REPORT DECEMBER 31, 2018 33

Notes to Financial Statements (Cont.)

renew for one-year terms unless PIMCO provides written notice to the Trust at least 30 days prior to the end of the then current term.

Under certain conditions, PIMCO may be reimbursed for these waived amounts in future periods, not to exceed thirty-six months after the waiver. At December 31, 2018, there were no recoverable amounts.

10. RELATED PARTY TRANSACTIONS

The Adviser, Administrator, and Distributor are related parties. Fees paid to these parties are disclosed in Note 9, Fees and Expenses, and the accrued related party fee amounts are disclosed on the Statement of Assets and Liabilities.

11. GUARANTEES AND INDEMNIFICATIONS

Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust (including the Trust’s investment manager) is indemnified, to the extent permitted by the Act, against certain liabilities that may arise out of performance of their duties to the Portfolio. Additionally, in the normal course of business, the Portfolio enters into contracts that contain a variety of indemnification clauses. The Portfolio’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Portfolio that have not yet occurred. However, the Portfolio has not had prior claims or losses pursuant to these contracts.

12. PURCHASES AND SALES OF SECURITIES

The length of time the Portfolio has held a particular security is not generally a consideration in investment decisions. A change in the securities held by the Portfolio is known as “portfolio turnover.” The Portfolio may engage in frequent and active trading of portfolio securities to achieve its investment objective, particularly during periods of volatile market movements. High portfolio turnover may involve correspondingly greater transaction costs to the Portfolio, including brokerage commissions or dealer mark-ups and other transaction costs on the sale of securities and reinvestments in other securities. Such sales may also result in realization of taxable capital gains, including short-term capital gains (which are generally taxed at ordinary income tax rates). The transaction costs and tax effects associated with portfolio turnover may adversely affect a shareholder’s performance. The portfolio turnover rates are reported in the Financial Highlights.

Purchases and sales of securities (excluding short-term investments) for the period ended December 31, 2018, were as follows (amounts in thousands^†):

U.S. Government/Agency				All Other
Purchases		Sales		Purchases		Sales
$	595,306	$	643,857	$	7,077	$	3,270

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

13. SHARES OF BENEFICIAL INTEREST

The Trust may issue an unlimited number of shares of beneficial interest with a $0.001 par value. Changes in shares of beneficial interest were as follows (shares and amounts in thousands^†):

	Year Ended 12/31/2018						Year Ended 12/31/2017
	Shares			Amount			Shares			Amount
Receipts for shares sold
Institutional Class		737		$	8,452			503		$	5,994
Administrative Class		4,284			49,295			1,324			15,862
Advisor Class		375			4,304			456			5,424
Issued as reinvestment of distributions
Institutional Class		102			1,174			74			887
Administrative Class		627			7,201			446			5,332
Advisor Class		52			603			38			449
Cost of shares redeemed
Institutional Class		(693	)		(7,996	)		(487	)		(5,879	)
Administrative Class		(2,182	)		(24,940	)		(1,998	)		(23,925	)
Advisor Class		(391	)		(4,495	)		(282	)		(3,350	)
Net increase (decrease) resulting from Portfolio share transactions		2,911		$	33,598			74		$	794

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

As of December 31, 2018, two shareholders each owned 10% or more of the Portfolio’s total outstanding shares comprising 64% of the Portfolio.

34 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

14. REGULATORY AND LITIGATION MATTERS

The Portfolio is not named as a defendant in any material litigation or arbitration proceedings and is not aware of any material litigation or claim pending or threatened against it.

The foregoing speaks only as of the date of this report.

15. FEDERAL INCOME TAX MATTERS

The Portfolio intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code (the “Code”) and distribute all of its taxable income and net realized gains, if applicable, to shareholders. Accordingly, no provision for Federal income taxes has been made.

The Portfolio may be subject to local withholding taxes, including those imposed on realized capital gains. Any applicable foreign capital gains tax is accrued daily based upon net unrealized gains, and may be payable following the sale of any applicable investments.

In accordance with U.S. GAAP, the Adviser has reviewed the Portfolio’s tax positions for all open tax years. As of December 31, 2018, the Portfolio has recorded no liability for net unrecognized tax benefits relating to uncertain income tax positions it has taken or expects to take in future tax returns.

The Portfolio files U.S. federal, state, and local tax returns as required. The Portfolio’s tax returns are subject to examination by relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return but which can be extended to six years in certain circumstances. Tax returns for open years have incorporated no uncertain tax positions that require a provision for income taxes.

Shares of the Portfolio currently are sold to segregated asset accounts (“Separate Accounts”) of insurance companies that fund variable annuity contracts and variable life insurance policies (“Variable Contracts”). Please refer to the prospectus for the Separate Account and Variable Contract for information regarding Federal income tax treatment of distributions to the Separate Account.

As of December 31, 2018, the components of distributable taxable earnings are as follows (amounts in thousands^†):

	Undistributed Ordinary Income(1)		Undistributed Long-Term Capital Gains		Net Tax Basis Unrealized Appreciation/ (Depreciation)(2)			Other Book-to-Tax Accounting Differences(3)		Accumulated Capital Losses(4)			Qualified Late-Year Loss Deferral - Capital(5)		Qualified Late-Year Loss Deferral - Ordinary(6)
PIMCO Long-Term U.S. Government Portfolio	$	3,353	$	0	$	(8,484	)	$	0	$	(6,010	)	$	0	$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽¹⁾  Includes undistributed short-term capital gains, if any.

⁽²⁾  Adjusted for open wash sale loss deferrals and the accelerated recognition of unrealized gain or loss on certain futures, and options for federal income tax, purposes. Also adjusted for differences between book and tax realized and unrealized gain (loss) on swap contracts, sale/buyback transactions, straddle loss deferrals, and Lehman securities.

⁽³⁾  Represents differences in income tax regulations and financial accounting principles generally accepted in the United States of America.

⁽⁴⁾  Capital losses available to offset future net capital gains expire in varying amounts as shown below.

⁽⁵⁾  Capital losses realized during the period November 1, 2018 through December 31, 2018 which the Portfolio elected to defer to the following taxable year pursuant to income tax regulations.

⁽⁶⁾  Specified losses realized during the period November 1, 2018 through December 31, 2018 which the Portfolio elected to defer to the following taxable year pursuant to income tax regulations.

Under the Regulated Investment Company Modernization Act of 2010, a fund is permitted to carry forward any new capital losses for an unlimited period. Additionally, such capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term under previous law.

As of December 31, 2018, the Portfolio had the following post-effective capital losses with no expiration (amounts in thousands^†):

	Short-Term		Long-Term
PIMCO Long-Term U.S. Government Portfolio	$	275	$	5,735

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

ANNUAL REPORT DECEMBER 31, 2018 35

Notes to Financial Statements (Cont.)

December 31, 2018

As of December 31, 2018, the aggregate cost and the net unrealized appreciation/(depreciation) of investments for federal income tax purposes are as follows (amounts in thousands^†):

	Federal Tax Cost		Unrealized Appreciation		Unrealized (Depreciation)			Net  Unrealized Appreciation/ (Depreciation)(7)
PIMCO Long-Term U.S. Government Portfolio	$	361,304	$	14,193	$	(22,676	)	$	(8,483	)

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽⁷⁾  Primary differences, if any, between book and tax net unrealized appreciation/(depreciation) on investments are attributable to open wash sale loss deferrals, unrealized gain or loss on certain futures, and options contracts, sale/buyback transactions, realized and unrealized gain (loss) swap contracts, straddle loss deferrals, and Lehman securities.

For the fiscal year ended December 31, 2018 and December 31, 2017, respectively, the Portfolio made the following tax basis distributions (amounts in thousands^†):

	December 31, 2018						December 31, 2017
	Ordinary Income Distributions(8)		Long-Term Capital Gain Distributions		Return of Capital(9)		Ordinary Income Distributions(8)		Long-Term Capital Gain Distributions		Return of Capital(9)
PIMCO Long-Term U.S. Government Portfolio	$	7,451	$	1,527	$	0	$	6,668	$	0	$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽⁸⁾  Includes short-term capital gains distributed, if any.

⁽⁹⁾  A portion of the distributions made represents a tax return of capital. Return of capital distributions have been reclassified from undistributed net investment income to paid-in capital to more appropriately conform financial accounting to tax accounting.

36 PIMCO VARIABLE INSURANCE TRUST

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of PIMCO Variable Insurance Trust and Shareholders of

PIMCO Long-Term U.S. Government Portfolio

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of PIMCO Long-Term U.S. Government Portfolio (one of the portfolios constituting PIMCO Variable Insurance Trust, referred to hereafter as the “Portfolio”) as of December 31, 2018, the related statements of operations and cash flows for the year ended December 31, 2018, the statement of changes in net assets for each of the two years in the period ended December 31, 2018, including the related notes, and the financial highlights for each of the five years in the period ended December 31, 2018 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Portfolio as of December 31, 2018, the results of its operations and its cash flows for the year then ended, the changes in its net assets for each of the two years in the period ended December 31, 2018 and the financial highlights for each of the five years in the period ended December 31, 2018 in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Portfolio’s management. Our responsibility is to express an opinion on the Portfolio’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Portfolio in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2018 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

Kansas City, Missouri

February 20, 2019

We have served as the auditor of one or more investment companies in PIMCO Variable Insurance Trust since 1998.

ANNUAL REPORT DECEMBER 31, 2018 37

Glossary: (abbreviations that may be used in the preceding statements)

(Unaudited)

Counterparty Abbreviations:
BOA	Bank of America N.A.	FICC	Fixed Income Clearing Corporation	MSC	Morgan Stanley & Co., Inc.
BPG	BNP Paribas Securities Corp.	GSC	Goldman Sachs & Co.	MYC	Morgan Stanley Capital Services, Inc.
CBK	Citibank N.A.	JPM	JPMorgan Chase Bank N.A.	SGY	Societe Generale, New York
Currency Abbreviations:
USD (or $)	United States Dollar
Exchange Abbreviations:
CBOT	Chicago Board of Trade	OTC	Over the Counter
Index/Spread Abbreviations:
CPURNSA	Consumer Price All Urban Non-Seasonally Adjusted Index
Other Abbreviations:
LIBOR	London Interbank Offered Rate	OIS	Overnight Index Swap	TBA	To-Be-Announced

38 PIMCO VARIABLE INSURANCE TRUST

Federal Income Tax Information

(Unaudited)

As required by the Internal Revenue Code (the “Code”) and Treasury Regulations, if applicable, shareholders must be notified regarding the status of qualified dividend income and the dividend received deduction.

Dividend Received Deduction.  Corporate shareholders are generally entitled to take the dividend received deduction on the portion of a Fund’s dividend distribution that qualifies under tax law. The percentage of the following Portfolio’s fiscal 2018 ordinary income dividend that qualifies for the corporate dividend received deduction is set forth in the table below.

Qualified Dividend Income.  Under the Jobs and Growth Tax Relief Reconciliation Act of 2003 (the “Act”), the percentage of ordinary dividends paid during the calendar year designated as “qualified dividend income”, as defined in the Act, subject to reduced tax rates in 2018 is set forth for the Portfolio in the table below.

Qualified Interest Income and Qualified Short-Term Capital Gain (for non-U.S. resident shareholders only).  Under the American Jobs Creation Act of 2004, the amounts of ordinary dividends paid during the fiscal year ended December 31, 2018 considered to be derived from “qualified interest income,” as defined in Section 871(k)(1)(E) of the Code, and therefore designated as interest-related dividends, as defined in Section 871(k)(1)(C) of the Code are set forth in the table below. Further, the amounts of ordinary dividends paid during the fiscal year ended December 31, 2018 considered to be derived from “qualified short-term capital gain,” as defined in Section 871(k)(2)(D) of the Code, and therefore designated as qualified short-term gain dividends, as defined by Section 871(k)(2)(C) of the Code are also set forth in the table below.

	Dividend Received Deduction %		Qualified Dividend Income %		Qualified Interest Income (000s† )		Qualified Short-Term Capital Gain (000s†)
PIMCO Long-Term U.S. Government Portfolio		0.00%		0.00%	$	7,448	$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

Shareholders are advised to consult their own tax advisor with respect to the tax consequences of their investment in the Trust. In January 2019, you will be advised on IRS Form 1099-DIV as to the federal tax status of the dividends and distributions received by you in calendar year 2018.

ANNUAL REPORT DECEMBER 31, 2018 39

Management of the Trust

The charts below identify the Trustees and executive officers of the Trust. Unless otherwise indicated, the address of all persons below is 650 Newport Center Drive, Newport Beach, CA 92660.

The Portfolio’s Statement of Additional Information includes more information about the Trustees and Officers. To request a free copy, call PIMCO at (888) 87-PIMCO or visit the Portfolio’s website at www.pimco.com/pvit.

Name, Year of Birth and Position Held with Trust*	Term of Office and Length of Time Served†	Principal Occupation(s) During Past 5 Years	Number of Funds in Fund Complex Overseen by Trustee	Other Public Company and Investment Company Directorships Held by Trustee During the Past 5 Years
Interested Trustees1
Peter G. Strelow** (1970) Chairman of the Board and Trustee	05/2017 to present Chairman of the Board - 02/2019 to present	Managing Director and Co-Chief Operating Officer, PIMCO. President of the Trust, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Chief Administrative Officer, PIMCO.	153	Chairman and Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT.
Brent R. Harris** (1959) Trustee	08/1997 to present	Managing Director, PIMCO. Senior Vice President of the Trust, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Formerly, member of Executive Committee, PIMCO.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT; Director, StocksPLUS® Management, Inc; and member of Board of Governors, Investment Company Institute. Formerly, Chairman, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT.
Independent Trustees
George E. Borst (1948) Trustee	04/2015 to present	Executive Advisor, McKinsey & Company (since 10/14); Formerly, Executive Advisor, Toyota Financial Services (10/13-12/14); and CEO, Toyota Financial Services (1/01-9/13).	132	Trustee, PIMCO Funds and PIMCO ETF Trust; Director, MarineMax Inc.
Jennifer Holden Dunbar (1963) Trustee	04/2015 to present	Managing Director, Dunbar Partners, LLC (business consulting and investments). Formerly, Partner, Leonard Green & Partners, L.P.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT; Director, PS Business Parks; Director, Big 5 Sporting Goods Corporation.
Kym M. Hubbard (1957) Trustee	02/2017 to present	Formerly, Global Head of Investments, Chief Investment Officer and Treasurer, Ernst & Young.	132	Trustee, PIMCO Funds and PIMCO ETF Trust; Director, State Auto Financial Corporation.
Gary F. Kennedy (1955) Trustee	04/2015 to present	Formerly, Senior Vice President, General Counsel and Chief Compliance Officer, American Airlines and AMR Corporation (now American Airlines Group) (1/03-1/14).	132	Trustee, PIMCO Funds and PIMCO ETF Trust.
Peter B. McCarthy (1950) Trustee	04/2015 to present	Formerly, Assistant Secretary and Chief Financial Officer, United States Department of Treasury; Deputy Managing Director, Institute of International Finance.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Ronald C. Parker (1951) Lead Independent Trustee	07/2009 to present Lead Independent Trustee - 02/2017 to present	Director of Roseburg Forest Products Company. Formerly, Chairman of the Board, The Ford Family Foundation; and President, Chief Executive Officer, Hampton Affiliates (forestry products).	153	Lead Independent Trustee, PIMCO Funds and PIMCO ETF Trust; Trustee, PIMCO Equity Series and PIMCO Equity Series VIT.

* Unless otherwise noted, the information for the individuals listed is as of December 31, 2018.

** Effective February 13, 2019, Mr. Strelow became the Chairman of the Trust.

¹  Mr. Harris and Mr. Strelow are “interested persons” of the Trust (as that term is defined in the 1940 Act) because of their affiliations with PIMCO.

^†  Trustees serve until their successors are duly elected and qualified.

40 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

Executive Officers

Name, Year of Birth and Position Held with Trust	Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years*
Peter G. Strelow (1970) President	01/2015 to present	Managing Director and Co-Chief Operating Officer, PIMCO. President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Chief Administrative Officer, PIMCO.
Joshua D. Ratner (1976)** Chief Legal Officer	11/2018 to present Vice President - Senior Counsel and Secretary 11/2013 to 11/2018 Assistant Secretary 10/2007 to 01/2011	Executive Vice President and Deputy General Counsel, PIMCO. Chief Legal Officer, PIMCO Investments LLC. Chief Legal Officer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Jennifer E. Durham (1970) Chief Compliance Officer	07/2004 to present	Managing Director and Chief Compliance Officer, PIMCO. Chief Compliance Officer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Brent R. Harris (1959) Senior Vice President	01/2015 to present President 03/2009 to 01/2015	Managing Director, PIMCO. Senior Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Formerly, member of Executive Committee, PIMCO.
Ryan G. Leshaw (1980) Vice President, Senior Counsel and Secretary	11/2018 to present Assistant Secretary 05/2012 to 11/2018	Senior Vice President and Senior Counsel, PIMCO. Vice President, Senior Counsel and Secretary, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Assistant Secretary, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Associate, Willkie Farr & Gallagher LLP.
Wu-Kwan Kit (1981) Assistant Secretary	08/2017 to present	Senior Vice President and Senior Counsel, PIMCO. Assistant Secretary, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Vice President, Senior Counsel and Secretary, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Assistant General Counsel, VanEck Associates Corp.
Stacie D. Anctil (1969) Vice President	05/2015 to present Assistant Treasurer 11/2003 to 05/2015	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
William G. Galipeau (1974) Vice President	11/2013 to present	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Eric D. Johnson (1970) Vice President	05/2011 to present	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Henrik P. Larsen (1970) Vice President	02/1999 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Bijal Y. Parikh (1978) Vice President	02/2017 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Greggory S. Wolf (1970) Vice President	05/2011 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Trent W. Walker (1974) Treasurer	11/2013 to present	Executive Vice President, PIMCO. Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Erik C. Brown (1967)** Assistant Treasurer	02/2001 to present	Executive Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Colleen D. Miller (1980)** Assistant Treasurer	02/2017 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Christopher M. Morin (1980) Assistant Treasurer	08/2016 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Jason J. Nagler (1982)** Assistant Treasurer	05/2015 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.

* The term “PIMCO-Sponsored Closed-End Funds” as used herein includes: PIMCO California Municipal Income Fund, PIMCO California Municipal Income Fund II, PIMCO California Municipal Income Fund III, PIMCO Municipal Income Fund, PIMCO Municipal Income Fund II, PIMCO Municipal Income Fund III, PIMCO New York Municipal Income Fund, PIMCO New York Municipal Income Fund II, PIMCO New York Municipal Income Fund III, PCM Fund Inc., PIMCO Corporate & Income Opportunity Fund, PIMCO Corporate & Income Strategy Fund, PIMCO Dynamic Credit and Mortgage Income Fund, PIMCO Dynamic Income Fund, PIMCO Global StocksPLUS^® & Income Fund, PIMCO High Income Fund, PIMCO Income Opportunity Fund, PIMCO Income Strategy Fund, PIMCO Income Strategy Fund II and PIMCO Strategic Income Fund, Inc.; the term “PIMCO-Sponsored Interval Funds” as used herein includes: PIMCO Flexible Credit Income Fund and PIMCO Flexible Municipal Income Fund.

** The address of these officers is Pacific Investment Management Company LLC, 1633 Broadway, New York, New York 10019.

ANNUAL REPORT DECEMBER 31, 2018 41

Privacy Policy¹

(Unaudited)

The Trust^2,3 considers customer privacy to be a fundamental aspect of its relationships with shareholders and is committed to maintaining the confidentiality, integrity and security of its current, prospective and former shareholders’ non-public personal information. The Trust has developed policies that are designed to protect this confidentiality, while allowing shareholder needs to be served.

OBTAINING PERSONAL INFORMATION

In the course of providing shareholders with products and services, the Trust and certain service providers to the Trust, such as the Trust’s investment advisers or sub-advisers (“Advisers”), may obtain non-public personal information about shareholders, which may come from sources such as account applications and other forms, from other written, electronic or verbal correspondence, from shareholder transactions, from a shareholder’s brokerage or financial advisory firm, financial advisor or consultant, and/or from information captured on applicable websites.

RESPECTING YOUR PRIVACY

As a matter of policy, the Trust does not disclose any non-public personal information provided by shareholders or gathered by the Trust to non-affiliated third parties, except as required or permitted by law or as necessary for such third parties to perform their agreements with respect to the Trust. As is common in the industry, non-affiliated companies may from time to time be used to provide certain services, such as preparing and mailing prospectuses, reports, account statements and other information, conducting research on shareholder satisfaction and gathering shareholder proxies. The Trust or its affiliates may also retain non-affiliated companies to market the Trust’s shares or products which use the Trust’s shares and enter into joint marketing arrangements with them and other companies. These companies may have access to a shareholder’s personal and account information, but are permitted to use this information solely to provide the specific service or as otherwise permitted by law. In most cases, the shareholders will be clients of a third party, but the Trust may also provide a shareholder’s personal and account information to the shareholder’s respective brokerage or financial advisory firm and/or financial advisor or consultant.

SHARING INFORMATION WITH THIRD PARTIES

The Trust reserves the right to disclose or report personal or account information to non-affiliated third parties in limited circumstances where the Trust believes in good faith that disclosure is required under law, to cooperate with regulators or law enforcement authorities, to protect its rights or property, or upon reasonable request by any fund advised by PIMCO in which a shareholder has invested. In addition, the Trust may disclose information about a shareholder or a shareholder’s accounts to a non-affiliated third party at the shareholder’s request or with the consent of the shareholder.

SHARING INFORMATION WITH AFFILIATES

The Trust may share shareholder information with its affiliates in connection with servicing shareholders’ accounts, and subject to applicable law may provide shareholders with information about products and services that the Trust or its Advisers, distributors or their affiliates (“Service Affiliates”) believe may be of interest to such shareholders. The information that the Trust may share may include,

for example, a shareholder’s participation in the Trust or in other investment programs sponsored by a Service Affiliate, a shareholder’s ownership of certain types of accounts (such as IRAs), information about the Trust’s experiences or transactions with a shareholder, information captured on applicable websites, or other data about a shareholder’s accounts, subject to applicable law. The Trust’s Service Affiliates, in turn, are not permitted to share shareholder information with non-affiliated entities, except as required or permitted by law.

PROCEDURES TO SAFEGUARD PRIVATE INFORMATION

The Trust takes seriously the obligation to safeguard shareholder non-public personal information. In addition to this policy, the Trust has implemented procedures that are designed to restrict access to a shareholder’s non-public personal information to internal personnel who need to know that information to perform their jobs, such as servicing shareholder accounts or notifying shareholders of new products or services. Physical, electronic and procedural safeguards are in place to guard a shareholder’s non-public personal information.

INFORMATION COLLECTED FROM WEBSITES

Websites maintained by the Trust or its service providers may use a variety of technologies to collect information that help the Trust and its service providers understand how the website is used. Information collected from your web browser (including small files stored on your device that are commonly referred to as “cookies”) allow the websites to recognize your web browser and help to personalize and improve your user experience and enhance navigation of the website. In addition, the Trust or its Service Affiliates may use third parties to place advertisements for the Trust on other websites, including banner advertisements. Such third parties may collect anonymous information through the use of cookies or action tags (such as web beacons). The information these third parties collect is generally limited to technical and web navigation information, such as your IP address, web pages visited and browser type, and does not include personally identifiable information such as name, address, phone number or email address. If you are a registered user of the Trust’s website, the Trust or their service providers or third party firms engaged by the Trust or their service providers may collect or share information submitted by you, which may include personally identifiable information. This information can be useful to the Trust when assessing and offering services and website features. You can change your cookie preferences by changing the setting on your web browser to delete or reject cookies. If you delete or reject cookies, some website pages may not function properly. The Trust does not look for web browser “do not track” requests.

CHANGES TO THE PRIVACY POLICY

From time to time, the Trust may update or revise this privacy policy. If there are changes to the terms of this privacy policy, documents containing the revised policy on the relevant website will be updated.

¹ Amended as of February 15, 2017.

² PIMCO Investments LLC (“PI”) serves as the Trust’s distributor. This Privacy Policy applies to the activities of PI to the extent that PI regularly effects or engages in transactions with or for a Trust shareholder who is the record owner of such shares. For purposes of this Privacy Policy, references to “the Trust” shall include PI when acting in this capacity.

³ When distributing this Policy, the Trust may combine the distribution with any similar distribution of its investment adviser’s privacy policy. The distributed, combined policy may be written in the first person (i.e., by using “we” instead of “the Trust”).

42 PIMCO VARIABLE INSURANCE TRUST

Approval of Investment Advisory Contract and Other Agreements

(Unaudited)

Approval of Renewal of the Amended and Restated Investment Advisory Contract, Supervision and Administration Agreement and Amended and Restated Asset Allocation Sub-Advisory Agreement

At a meeting held on August 20-21, 2018, the Board of Trustees (the “Board”) of PIMCO Variable Insurance Trust (the “Trust”), including the Trustees who are not “interested persons” of the Trust under the Investment Company Act of 1940, as amended (the “Independent Trustees”), considered and unanimously approved the renewal of the Amended and Restated Investment Advisory Contract (the “Investment Advisory Contract”) between the Trust, on behalf of each of the Trust’s series (the “Portfolios”), and Pacific Investment Management Company LLC (“PIMCO”) for an additional one-year term through August 31, 2019. The Board also considered and unanimously approved the renewal of the Supervision and Administration Agreement (together with the Investment Advisory Contract, the “Agreements”) between the Trust, on behalf of the Portfolios, and PIMCO for an additional one-year term through August 31, 2019. In addition, the Board considered and unanimously approved the renewal of the Amended and Restated Asset Allocation Sub-Advisory Agreement (the “Asset Allocation Agreement”) between PIMCO, on behalf of PIMCO All Asset Portfolio and PIMCO All Asset All Authority Portfolio, each a series of the Trust, and Research Affiliates, LLC (“Research Affiliates”) for an additional one-year term through August 31, 2019.

The information, material factors and conclusions that formed the basis for the Board’s approvals are summarized below.

1. INFORMATION RECEIVED

(a) Materials Reviewed:  During the course of the past year, the Trustees received a wide variety of materials relating to the services provided by PIMCO and Research Affiliates to the Trust. At each of its quarterly meetings, the Board reviewed the Portfolios’ investment performance and a significant amount of information relating to Portfolio operations, including shareholder services, valuation and custody, the Portfolios’ compliance program and other information relating to the nature, extent and quality of services provided by PIMCO and Research Affiliates to the Trust and each of the Portfolios, as applicable. In considering whether to approve the renewal of the Agreements and the Asset Allocation Agreement, the Board reviewed additional information, including, but not limited to, comparative industry data with regard to investment performance, advisory and supervisory and administrative fees and expenses, financial information for PIMCO and, where relevant, Research Affiliates, information regarding the profitability to PIMCO of its relationship with the Portfolios, information about the personnel providing investment management services, other advisory services and supervisory and administrative services to the Portfolios, and information about the fees

charged and services provided to other clients with similar investment mandates as the Portfolios, where applicable. In addition, the Board reviewed materials provided by counsel to the Trust and the Independent Trustees, which included, among other things, memoranda outlining legal duties of the Board in considering the renewal of the Agreements and the Asset Allocation Agreement.

(b) Review Process:  In connection with considering the renewal of the Agreements and the Asset Allocation Agreement, the Board reviewed written materials prepared by PIMCO and, where applicable, Research Affiliates in response to requests from counsel to the Trust and the Independent Trustees encompassing a wide variety of topics. The Board requested and received assistance and advice regarding, among other things, applicable legal standards from counsel to the Trust and the Independent Trustees, and reviewed comparative fee and performance data prepared at the Board’s request by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company performance information and fee and expense data. The Board received information on matters related to the Agreements and the Asset Allocation Agreement and met both as a full Board and in a separate session of the Independent Trustees, without management present, at the August 20-21, 2018 meeting. The Independent Trustees also conducted in-person meetings with counsel to the Trust and the Independent Trustees, including one on July 18, 2018, to discuss the Lipper Report, as defined below, and certain aspects of the 2018 15(c) materials presented and other matters deemed relevant to their consideration of the renewal of the Agreements and the Asset Allocation Agreement. In connection with its review of the Agreements, the Board received comparative information on the performance and the fees and expenses of other peer group funds and share classes. In addition, the Independent Trustees requested and received supplemental information.

The approval determinations were made on the basis of each Trustee’s business judgment after consideration and evaluation of all the information presented. Individual Trustees may have given different weights to certain factors and assigned various degrees of materiality to information received in connection with the approval process. In deciding to approve the renewal of the Agreements and the Asset Allocation Agreement, the Board did not identify any single factor or particular information that, in isolation, was controlling. The discussion below is intended to summarize the broad factors and information that figured prominently in the Board’s consideration of the renewal of the Agreements and the Asset Allocation Agreement, but is not intended to summarize all of the factors considered by the Board.

2. NATURE, EXTENT AND QUALITY OF SERVICES

(a) PIMCO, Research Affiliates, their Personnel, and Resources:  The Board considered the depth and quality of PIMCO’s investment management process, including: the experience, capability and integrity

ANNUAL REPORT DECEMBER 31, 2018 43

Approval of Investment Advisory Contract and Other Agreements (Cont.)

of its senior management and other personnel; the overall financial strength and stability of its organization; and the ability of its organizational structure to address changes in the Portfolios’ asset levels. The Board also considered the various services in addition to portfolio management that PIMCO provides under the Investment Advisory Contract. The Board noted that PIMCO makes available to its investment professionals a variety of resources and systems relating to investment management, compliance, trading, performance and portfolio accounting. The Board also noted PIMCO’s commitment to enhancing and investing in its global infrastructure, technology capabilities, risk management processes and the specialized talent needed to stay at the forefront of the competitive investment management industry and to strengthen its ability to deliver services under the Agreements. The Board considered PIMCO’s policies, procedures and systems reasonably designed to assure compliance with applicable laws and regulations and its commitment to further developing and strengthening these programs, its oversight of matters that may involve conflicts of interest between the Portfolios’ investments and those of other accounts managed by PIMCO, and its efforts to keep the Trustees informed about matters relevant to the Portfolios and their shareholders. The Board also considered PIMCO’s continuous investment in new disciplines and talented personnel, which has enhanced PIMCO’s services to the Portfolios and has allowed PIMCO to introduce innovative new portfolios over time. In addition, the Board considered the nature and quality of services provided by PIMCO to the wholly-owned subsidiaries of certain applicable Portfolios.

The Trustees considered that PIMCO has continued to strengthen the process it uses to actively manage counterparty risk and to assess the financial stability of counterparties with which the Portfolios do business, to manage collateral and to protect Portfolios from an unforeseen deterioration in the creditworthiness of trading counterparties. The Trustees noted that, consistent with its fiduciary duty, PIMCO executes transactions through a competitive best execution process and uses only those counterparties that meet its stringent and monitored criteria. The Trustees considered that PIMCO’s collateral management team utilizes a counterparty risk system to analyze portfolio level exposure and collateral being exchanged with counterparties.

In addition, the Trustees considered new services and service enhancements that PIMCO has implemented since the Board renewed the Agreements in 2017, including, but not limited to upgrading the global network and infrastructure to support trading and risk management systems; enhancing and continuing to expand capabilities within the pre-trade compliance platform; enhancing flexible client reporting capabilities to support increased differentiation within local markets; developing new application and database frameworks to support new trading strategies; expanding proprietary applications

suites to enrich capabilities across Compliance, Analytics, Risk Management, Client Reporting, Attribution and Customer Relationship management; continuing investment in its enterprise risk management function, including PIMCO’s cybersecurity program and global business continuity functions; oversight by the Americas Fund Oversight Committee, which provides senior-level oversight and supervision focused on new and ongoing fund-related business opportunities; engaging a third party service provider to implement the SEC reporting modernization regime; expanding the Fund Treasurer’s Office; enhancing a proprietary application to provide portfolio managers with more timely and high quality income reporting; developing a global tax management application that will enable investment professionals to access foreign market and security tax information on a real-time basis; enhancing reporting of tax reporting for portfolio managers for income products with improved transparency on tax factors impacting income generation and dividend yield; upgrading a proprietary application to allow shareholder subscription and redemption data to pass to portfolio managers more quickly and efficiently; and continuing to expand the pricing portal and the proprietary performance reconciliation tool.

Similarly, the Board considered the asset allocation services provided by Research Affiliates to the PIMCO All Asset Portfolio and PIMCO All Asset All Authority Portfolio. The Board further considered PIMCO’s oversight of Research Affiliates in connection with Research Affiliates providing asset allocation services to the Asset Portfolio and All Asset All Authority Portfolio. The Board also considered the depth and quality of Research Affiliates’ investment management and research capabilities, the experience and capabilities of its portfolio management personnel and the overall financial strength of the organization.

Ultimately, the Board concluded that the nature, extent and quality of services provided or procured by PIMCO under the Agreements and provided by Research Affiliates under the Asset Allocation Agreement are likely to continue to benefit the Portfolios and their respective shareholders, as applicable.

(b) Other Services:  The Board also considered the nature, extent and quality of supervisory and administrative services provided by PIMCO to the Portfolios under the Supervision and Administration Agreement.

The Board considered the terms of the Supervision and Administration Agreement, under which the Trust pays for the supervisory and administrative services provided pursuant to that agreement under what is essentially an all-in fee structure (the “unified fee”). In return, PIMCO provides or procures certain supervisory and administrative services and bears the costs of various third party services required by the Portfolios, including audit, custodial, portfolio accounting, legal, transfer agency, sub-accounting and printing costs. The Board noted that the scope and complexity, as well as the costs, of the supervisory

44 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

and administrative services provided by PIMCO under the Supervision and Administration Agreement continue to increase. The Board considered PIMCO’s provision of supervisory and administrative services and its supervision of the Trust’s third party service providers to assure that these service providers continue to provide a high level of service relative to alternatives available in the market.

Ultimately, the Board concluded that the nature, extent and quality of the services provided by PIMCO has benefited, and will likely continue to benefit, the Portfolios and their shareholders.

3. INVESTMENT PERFORMANCE

The Board reviewed information from PIMCO concerning the Portfolios’ performance, as available, over short- and long-term periods ended March 31, 2018 and other performance data, as available, over short- and long-term periods ended June 30, 2018 (the “PIMCO Report”) and from Broadridge concerning the Portfolios’ performance, as available, over short- and long-term periods ended March 31, 2018 (the “Lipper Report”).

The Board considered information regarding both the short- and long-term investment performance of each Portfolio relative to its peer group and relevant benchmark index as provided to the Board in advance of each of its quarterly meetings throughout the year, including the PIMCO Report and Lipper Report, which were provided in advance of the August 20-21, 2018 meeting. The Trustees noted that many of the Portfolios outperformed their respective Lipper medians on a net-of-fees basis over the three-, five- and ten-year periods ended March 31, 2018. The Board also noted that, as of March 31, 2018, the Administrative Class of 72%, 35% and 73% of the Portfolios outperformed their respective Lipper category median on a net-of-fees basis over the three-, five- and ten-year periods, respectively. The Trustees considered that other classes of each Portfolio would have substantially similar performance to that of the Administrative Class of the relevant Portfolio on a relative basis because all of the classes are invested in the same portfolio of investments and that differences in performance among classes could principally be attributed to differences in the supervisory and administrative fees and distribution and servicing expenses of each class. The Board also considered that the investment objectives of certain of the Portfolios may not always be identical to those of the other funds in their respective peer groups and that the Lipper categories do not: separate funds based upon maturity or duration; account for the applicable Portfolios’ hedging strategies; distinguish between enhanced index and actively managed equity strategies; include as many subsets as the Portfolios offer (i.e., Portfolios may be placed in a “catch-all” Lipper category to which they do not properly belong); or account for certain fee waivers. The Board noted that, due to these differences, performance comparisons between certain of the Portfolios and their so-called peers may not be

particularly relevant to the consideration of Portfolio performance but found the comparative information supported its overall evaluation.

The Board noted that performance for a majority of the Portfolios has been mixed compared to their respective benchmark indexes over the five-year period ended March 31, 2018. The Board noted that, as of March 31, 2018, 70%, 23% and 92% of the Trust’s assets (based on Administrative Class performance) outperformed their respective benchmarks on a net-of-fees basis over the three-, five- and ten-year periods, respectively. The Board also discussed actions that have been taken by PIMCO to attempt to improve performance and took note of PIMCO’s plans to monitor performance going forward.

The Board considered PIMCO’s discussion of the intensive nature of managing bond funds, noting that it requires the management of a number of factors, including: varying maturities; prepayments; collateral management; counterparty management; pay-downs; credit and corporate events; workouts; derivatives; net new issuance in the bond market; and decreased market maker inventory levels. The Board noted that in addition to managing these factors, PIMCO must also balance risk controls and strategic positions in each portfolio it manages, including the Portfolios. Despite these challenges, the Board noted PIMCO’s ability to generate non-market correlated excess performance for its clients over time, including the Trust.

The Board ultimately concluded, within the context of all of its considerations in connection with the Agreements, that PIMCO’s performance record and process in managing the Portfolios indicates that its continued management is likely to benefit the Portfolios and their shareholders, and merits the approval of the renewal of the Agreements.

4. ADVISORY FEES, SUPERVISORY AND ADMINISTRATIVE FEES AND TOTAL EXPENSES

The Board considered that PIMCO seeks to price new funds and classes to scale. PIMCO reported to the Board that, in proposing fees for any Portfolio or class of shares, it considers a number of factors, including, but not limited to, the type and complexity of the services provided, the cost of providing services, the risk assumed by PIMCO in the development of products and the provision of services and the competitive marketplace for financial products. Fees charged to or proposed for different Portfolios for advisory services and supervisory and administrative services may vary in light of these various factors. The Board considered that portfolio pricing generally is not driven by comparison to passively-managed products.

In addition, PIMCO reported to the Board that it periodically reviews the fees charged to the Portfolios. The Board noted that, based upon this review, PIMCO may propose advisory fee or supervisory and administrative fee changes where (i) a Portfolio’s long-term performance warrants additional consideration; (ii) there is a notable aid to market

ANNUAL REPORT DECEMBER 31, 2018 45

Approval of Investment Advisory Contract and Other Agreements (Cont.)

position; (iii) a Portfolio’s fee does not reflect the current level of supervision or administrative fees provided to the Portfolio; or (iv) PIMCO would like to change a Portfolio’s overall strategic positioning.

The Board reviewed the advisory fees, supervisory and administrative fees and total expenses of the Portfolios (each as a percentage of average net assets) and compared such amounts with the average and median fee and expense levels of other similar funds. The Board also reviewed information relating to the sub-advisory fees paid to Research Affiliates with respect to applicable Portfolios, taking into account that PIMCO compensates Research Affiliates from the advisory fees paid by such Portfolios to PIMCO. With respect to advisory fees, the Board reviewed data from Broadridge that compared the average and median advisory fees of other funds in a “Peer Group” of comparable funds, as well as the universe of other similar funds. The Board noted that a number of Portfolios have total expense ratios that fall below the average and median expense ratios in their Peer Group and Lipper universe. In addition, the Board considered fee waivers in place for certain of the Portfolios and also noted the fee waivers in place with respect to the advisory fee and supervisory and administrative fee that might result from investments by applicable Portfolios in their respective wholly-owned subsidiaries. The Board also considered that PIMCO reviews the Portfolios’ fee levels and carefully considers changes where appropriate.

The Board also reviewed data comparing the Portfolios’ advisory fees to the standard and negotiated fee rates PIMCO charges to separate accounts, collective investment trusts and sub-advised clients with similar investment strategies. In cases where the fees for other clients were lower than those charged to the Portfolios, the Trustees noted that the differences in fees were attributable to various factors, including, but not limited to, differences in the advisory and other services provided by PIMCO to the Portfolios, differences in the number or extent of the services provided by PIMCO to the Portfolios, the manner in which similar portfolios may be managed, different requirements with respect to liquidity management and the implementation of other regulatory requirements, and the fact that separate accounts may have other contractual arrangements or arrangements across PIMCO strategies that justify different levels of fees. The Board considered that, with respect to collective investment trusts, PIMCO performs fewer or less extensive services because collective investment trusts are generally exempt from SEC regulation; investors in a collective investment trust may receive shareholder services from a trustee bank, rather than PIMCO; collective investment trusts have less regulatory disclosure; and the management structure of collective investment trusts differs from that of funds. The Trustees also considered that PIMCO faces increased entrepreneurial, legal and regulatory risk in sponsoring and managing mutual funds and ETFs as compared to separate accounts, external sub-advised funds or other investment products.

Regarding advisory fees charged by PIMCO in its capacity as sub-adviser to third party/unaffiliated funds, the Trustees took into account that such fees may be lower than the fees charged by PIMCO to serve as adviser to the Portfolios. The Trustees also took into account that there are various reasons for any such differences in fees, including, but not limited to, the fact that PIMCO may be subject to varying levels of entrepreneurial risk and regulatory requirements, differing legal liabilities on a contract-by-contract basis and different servicing requirements when PIMCO does not serve as the sponsor of a fund and is not principally responsible for all aspects of a fund’s investment program and operations as compared to when PIMCO serves as investment adviser and sponsor.

The Board considered the Portfolios’ supervisory and administrative fees, comparing them to similar funds in the report supplied by Broadridge. The Board also considered that as the Portfolios’ business has become increasingly complex and the number of Portfolios has grown over time, PIMCO has provided an increasingly broad array of fund supervisory and administrative functions. In addition, the Board considered the Trust’s unified fee structure, under which the Trust pays for the supervisory and administrative services it requires for one set fee. In return for this unified fee, PIMCO provides or procures supervisory and administrative services and bears the costs of various third party services required by the Portfolios, including audit, custodial, portfolio accounting, legal, transfer agency, sub-accounting and printing costs. The Board further considered that many other funds pay for comparable services separately, and thus it is difficult to directly compare the Trust’s unified supervisory and administrative fees with the fees paid by other funds for administrative services alone. The Board also considered that the unified supervisory and administrative fee leads to Portfolio fees that are fixed over the contract period, rather than variable. The Board noted that, although the unified fee structure does not have breakpoints, it implicitly reflects economies of scale by fixing the absolute level of Portfolio fees at competitive levels over the contract period even if the Portfolios’ operating costs rise when assets remain flat or decrease. Other factors the Board considered in assessing the unified fee include PIMCO’s approach of pricing Portfolios to scale at inception and reinvesting in other important areas of the business that support the Portfolios. The Board considered that the Portfolios’ unified fee structure meant that fees were not impacted by recent outflows in certain Portfolios, unlike funds without a unified fee structure, which may see increased expense ratios when fixed costs, such as service provider costs, are passed through to a smaller asset base. The Board considered historical advisory and supervisory and administrative fee reductions implemented for different Portfolios and classes, noting that the unified fee can be increased or decreased in subsequent contractual periods and is subject to the periodic reviews discussed above. The Board noted that, with few exceptions, PIMCO

46 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

has generally maintained Portfolio fees at the same level as implemented when the unified fee was adopted, and has reduced fees for a number of Portfolios in prior years. The Board concluded that the Portfolios’ supervisory and administrative fees were reasonable in relation to the value of the services provided, including the services provided to different classes of shareholders, and that the expenses assumed contractually by PIMCO under the Supervision and Administration Agreement represent, in effect, a cap on overall Portfolio fees during the contractual period, which is beneficial to the Portfolios and their shareholders.

The Board considered the Portfolios’ total expenses and discussed with PIMCO those Portfolios and/or classes of Portfolios that had above median total expenses. The Board noted that many of the Portfolios are unique products that have few peers, if any, and cannot easily be grouped with comparable funds. Upon comparing the Portfolios’ total expenses to other funds in the “Peer Groups” provided by Broadridge, the Board found total expenses of each Portfolio to be reasonable.

The Trustees also considered the advisory fees charged to the Portfolios that operate as funds of funds (the “Funds of Funds”) and the advisory services provided in exchange for such fees. The Trustees determined that such services were in addition to the advisory services provided to the underlying funds in which the Funds of Funds may invest and, therefore, such services were not duplicative of the advisory services provided to the underlying funds. The Board also considered the various fee waiver agreements in place for the Funds of Funds. The Board noted that PIMCO is continuing waivers for these Funds of Funds, as well as for certain other Portfolios of the Trust.

Based on the information presented by PIMCO, Research Affiliates and Broadridge, members of the Board determined, in the exercise of their business judgment, that the level of the advisory fees and supervisory and administrative fees charged by PIMCO under the Agreements, as well as the total expenses of each Portfolio, after the proposals to decrease the management fee, are reasonable.

5. ADVISER COSTS, LEVEL OF PROFITS AND ECONOMIES OF SCALE

The Board reviewed information regarding PIMCO’s costs of providing services to the Funds as a whole, as well as the resulting level of profits to PIMCO under both the adjusted asset profitability method and the profit and loss profitability method, which were each utilized to calculate profitability. To the extent applicable, the Board also reviewed information regarding the portion of a Portfolio’s advisory fee retained by PIMCO, following the payment of sub-advisory fees to Research Affiliates, with respect to the Portfolio. Additionally, the Board noted that profit margins with respect to the Trust shows that the Trust is profitable, although less so than PIMCO Funds due to payments made

by PIMCO to participating insurance companies. The Board further noted PIMCO’s engagement of a third party to review and to make recommendations regarding PIMCO’s processes supporting its profitability estimation materials. The Board also noted that it had received information regarding the structure and manner in which PIMCO’s investment professionals were compensated, and PIMCO’s view of the relationship of such compensation to the attraction and retention of quality personnel. The Board considered PIMCO’s need to invest in global infrastructure, technology capabilities, risk management processes and qualified personnel to reinforce and offer new services and to accommodate changing regulatory requirements.

With respect to potential economies of scale, the Board noted that PIMCO shares the benefits of economies of scale with the Portfolios and their shareholders in a number of ways, including investing in portfolio and trade operations management, firm technology, middle and back office support, legal and compliance, and fund administration logistics, senior management supervision, governance and oversight of those services, and through fee reductions or waivers, the pricing of Portfolios to scale from inception, and the enhancement of services provided to the Portfolios in return for fees paid. The Board reviewed the history of the Portfolios’ fee structure. The Board considered that the Portfolios’ unified fee rates had been set competitively and/or priced to scale from inception, had been held steady during the contractual period at that scaled competitive rate for most Portfolios as assets grew, or as assets declined in the case of some Portfolios, and continued to be competitive compared with peers. The Board also considered that the unified fee is a transparent means of informing a Portfolio’s shareholders of the fees associated with the Portfolio, and that the Portfolio bears certain expenses that are not covered by the advisory fee or the unified fee. The Board further considered the challenges that arise when managing large funds, which can result in certain “diseconomies” of scale and noted that PIMCO has continued to reinvest in many areas of the business to support the Portfolios.

The Trustees considered that the unified fee has provided inherent economies of scale because a Portfolio maintains competitive fixed fees over the annual contract period even if the particular Portfolio’s assets decline and/or operating costs rise. The Trustees further considered that, in contrast, breakpoints may be a proxy for charging higher fees on lower asset levels and that when a fund’s assets decline, breakpoints may reverse, which causes expense ratios to increase. The Trustees also considered that, unlike the Portfolios’ unified fee structure, funds with “pass through” administrative fee structures may experience increased expense ratios when fixed dollar fees are charged against declining fund assets. The Trustees also considered that the unified fee protects shareholders from a rise in operating costs that may result from, among other things, PIMCO’s investments in various business enhancements and infrastructure, including those referenced above. The Trustees noted that PIMCO’s investments in these areas are extensive.

ANNUAL REPORT DECEMBER 31, 2018 47

Approval of Investment Advisory Contract and Other Agreements (Cont.)

(Unaudited)

The Board concluded that the Portfolios’ cost structures were reasonable and that PIMCO is appropriately sharing economies of scale, if any, through the Portfolios’ unified fee structure, generally pricing Portfolios to scale at inception and reinvesting in its business to provide enhanced and expanded services to the Portfolios and their shareholders.

6. ANCILLARY BENEFITS

The Board considered other benefits realized by PIMCO and its affiliates as a result of PIMCO’s relationship with the Trust. Such benefits may include possible ancillary benefits to PIMCO’s institutional investment management business due to the reputation and market penetration of the Trust or third party service providers’ relationship-level fee concessions, which decrease fees paid by PIMCO. The Board also considered that affiliates of PIMCO provide distribution and/or shareholder services to the Portfolios and their shareholders, for which they may be compensated through distribution and servicing fees paid pursuant to the Portfolios’ Rule 12b-1 plans or otherwise. The Board reviewed PIMCO’s soft dollar policies and procedures, noting that while PIMCO has the authority to receive the benefit of research provided by broker-dealers executing portfolio transactions on behalf of the Portfolios, it has adopted a policy not to enter into contractual soft dollar arrangements.

7. CONCLUSIONS

Based on their review, including their comprehensive consideration and evaluation of each of the broad factors and information summarized above, the Independent Trustees and the Board as a whole concluded that the nature, extent and quality of the services rendered to the Portfolios by PIMCO and Research Affiliates supported the renewal of the Agreements and the Asset Allocation Agreement. The Independent Trustees and the Board as a whole concluded that the Agreements and the Asset Allocation Agreement continued to be fair and reasonable to the Portfolios and their shareholders, that the Portfolios’ shareholders received reasonable value in return for the fees paid to PIMCO by the Portfolios under the Agreements and the fees paid to Research Affiliates by PIMCO under the Asset Allocation Agreement, and that the renewal of the Agreements and the Asset Allocation Agreement was in the best interests of the Portfolios and their shareholders.

48 PIMCO VARIABLE INSURANCE TRUST

General Information

Investment Adviser and Administrator

Pacific Investment Management Company LLC

650 Newport Center Drive

Newport Beach, CA 92660

Distributor

PIMCO Investments LLC

1633 Broadway

New York, NY 10019

Custodian

State Street Bank and Trust Company

801 Pennsylvania Avenue

Kansas City, MO 64105

Transfer Agent

DST Asset Manager Solutions, Inc.

430 W 7th Street STE 219024

Kansas City, MO 64105-1407

Legal Counsel

Dechert LLP

1900 K Street, N.W.

Washington, D.C. 20006

Independent Registered Public Accounting Firm

PricewaterhouseCoopers LLP

1100 Walnut Street, Suite 1300

Kansas City, MO 64106

This report is submitted for the general information of the shareholders of the PIMCO Variable Insurance Trust.

pimco.com/pvit

PVIT13AR_123118

PIMCO VARIABLE INSURANCE TRUST

Annual Report

December 31, 2018

PIMCO Low Duration Portfolio

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, you may not be receiving paper copies of the Portfolio’s shareholder reports from the insurance company that offers your contract unless you specifically request paper copies from the insurance company or from your financial intermediary. Instead, the shareholder reports will be made available on a website, and the insurance company will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the insurance company electronically by following the instructions provided by the insurance company.

You may elect to receive all future reports in paper free of charge from the insurance company. You should contact the insurance company if you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all portfolio companies available under your contract at the insurance company.

Table of Contents

	Page
Chairman’s Letter		2
Important Information About the PIMCO Low Duration Portfolio		4
Portfolio Summary		6
Expense Example		7
Financial Highlights		8
Statement of Assets and Liabilities		10
Statement of Operations		11
Statements of Changes in Net Assets		12
Schedule of Investments		13
Notes to Financial Statements		24
Report of Independent Registered Public Accounting Firm		43
Glossary		44
Federal Income Tax Information		45
Management of the Trust		46
Privacy Policy		48
Approval of Investment Advisory Contract and Other Agreements		49

This material is authorized for use only when preceded or accompanied by the current PIMCO Variable Insurance Trust (the “Trust”) prospectus for the Portfolio. (The variable product prospectus may be obtained by contacting your Investment Consultant.)

Chairman’s Letter

Dear PIMCO Variable Insurance Trust Shareholder,

Following this letter is the PIMCO Variable Insurance Trust Annual Report, which covers the 12-month reporting period ended December 31, 2018. On the subsequent pages you will find specific details regarding investment results and discussion of the factors that most affected performance during the reporting period.

For the 12-month reporting period ended December 31, 2018

The U.S. economy continued to expand during the reporting period. Looking back, U.S. gross domestic product (“GDP”) grew at an annual pace of 2.2% during the first quarter of 2018. During the second quarter of 2018, GDP growth rose to an annual pace of 4.2%, the strongest since the third quarter of 2014. GDP then expanded at an annual pace of 3.4% during the third quarter of the year. Finally, the Commerce Department’s initial reading for fourth-quarter 2018 GDP has been delayed due to the partial government shutdown.

The Federal Reserve (the “Fed”) continued to normalize monetary policy during the reporting period. During its meetings that concluded in March, June, September and December 2018, the Fed raised the federal funds rate in 0.25% increments. The Fed’s December rate hike pushed the federal funds rate to a range between 2.25% and 2.50%. In addition, the Fed continued to reduce its balance sheet during the reporting period.

Economic activity outside the U.S. initially accelerated during the reporting period, but moderated as it progressed. Against this backdrop, the European Central Bank (the “ECB”) and the Bank of Japan largely maintained their highly accommodative monetary policies, while other central banks took a more hawkish stance. The Bank of England raised rates at its meeting in August 2018 and the Bank of Canada raised rates twice during the reporting period. Meanwhile, the ECB ended its quantitative easing program in December 2018, but indicated that it does not expect to raise interest rates “at least through the summer of 2019.”

The U.S. Treasury yield curve flattened during the reporting period as short-term rates moved up more than longer-term rates. In our view, the increase in rates at the short end of the yield curve was mostly due to Fed interest rate increases. The yield on the benchmark 10-year U.S. Treasury note was 2.69% at the end of the reporting period, up from 2.40% on December 31, 2017. U.S. Treasuries, as measured by the Bloomberg Barclays U.S. Treasury Index, returned 0.86% over the 12 months ended December 31, 2018. Meanwhile, the Bloomberg Barclays U.S. Aggregate Bond Index, a widely used index of U.S. investment grade bonds, returned 0.01% over the period. Riskier fixed income asset classes, including high yield corporate bonds and emerging market debt, generated weak results versus the broad U.S. market. The ICE BofAML U.S. High Yield Index returned -2.27% over the reporting period, whereas emerging market external debt, as represented by the JPMorgan Emerging Markets Bond Index (EMBI) Global, returned -4.61% over the reporting period. Emerging market local bonds, as represented by the JPMorgan Government Bond Index-Emerging Markets Global Diversified Index (Unhedged), returned -6.21% over the period.

Global equities produced poor results during the reporting period. U.S. equities moved sharply higher over the first nine months of the period. We believe this rally was driven by a number of factors, including corporate profits that often exceeded expectations. However, U.S. equities fell sharply during the fourth quarter of 2018. We believe this was triggered by a number of factors, including signs of moderating global growth, concerns over future Fed rate hikes, the ongoing trade dispute between the U.S. and China and the partial U.S. government shutdown. All told, U.S. equities, as represented by the S&P 500 Index, returned -4.38% during the reporting period. Elsewhere, emerging market equities, as measured by the MSCI Emerging Markets Index, returned -14.58% during the reporting period, whereas global equities, as represented by the MSCI World Index, returned -8.71%. Elsewhere, Japanese equities, as represented by the Nikkei 225 Index (in JPY), returned -10.39% during the reporting period and European equities, as represented by the MSCI Europe Index (in EUR), returned -10.57%.

Commodity prices fluctuated and generally declined during the reporting period. When the reporting period began, West Texas crude oil was approximately $65 a barrel, but by the end it was roughly $45 a barrel. This was driven in

2 PIMCO VARIABLE INSURANCE TRUST

part by increased supply and declining global demand. Elsewhere, gold and copper prices also moved lower during the reporting period.

Finally, during the reporting period the foreign exchange markets experienced periods of volatility, due in part to signs of decoupling economic growth and central bank policies, along with a number of geopolitical events. The U.S. dollar produced mixed results against other major currencies during the reporting period. For example, the U.S. dollar appreciated 4.71% and 5.90% versus the euro and the British pound, respectively, whereas the U.S. dollar depreciated 2.66% versus the yen during the reporting period.

Thank you for the assets you have placed with us. We deeply value your trust, and we will continue to work diligently to meet your broad investment needs.

Sincerely,     Brent R. Harris Chairman of the Board,
PIMCO Variable Insurance Trust  

Past performance is no guarantee of future results. Unless otherwise noted, index returns reflect the reinvestment of income distributions and capital gains, if any, but do not reflect fees, brokerage commissions or other expenses of investing. It is not possible to invest directly in an unmanaged index.

ANNUAL REPORT DECEMBER 31, 2018 3

Important Information About the PIMCO Low Duration Portfolio

PIMCO Variable Insurance Trust (the “Trust”) is an open-end management investment company that includes the PIMCO Low Duration Portfolio (the “Portfolio”). The Portfolio is only available as a funding vehicle under variable life insurance policies or variable annuity contracts issued by insurance companies (“Variable Contracts”). Individuals may not purchase shares of the Portfolio directly. Shares of the Portfolio also may be sold to qualified pension and retirement plans outside of the separate account context.

We believe that bond funds have an important role to play in a well-diversified investment portfolio. It is important to note, however, that in an environment where interest rates may trend upward, rising rates would negatively impact the performance of most bond funds, and fixed income securities and other instruments held by the Portfolio are likely to decrease in value. A wide variety of factors can cause interest rates to rise (e.g., central bank monetary policies, inflation rates, general economic conditions, etc.). In addition, changes in interest rates can be sudden and unpredictable, and there is no guarantee that management will anticipate such movement accurately. The Portfolio may lose money as a result of movements in interest rates.

As of the date of this report, interest rates in the U.S. and many parts of the world, including certain European countries, are at or near historically low levels. Thus, the Portfolio currently faces a heightened level of interest rate risk, especially since the Fed has ended its quantitative easing program and has begun, and may continue, to raise interest rates. To the extent the Fed continues to raise interest rates, there is a risk that rates across the financial system may rise. Further, while bond markets have steadily grown over the past three decades, dealer inventories of corporate bonds are near historic lows in relation to market size. As a result, there has been a significant reduction in the ability of dealers to “make markets.”

Bond funds and individual bonds with a longer duration (a measure used to determine the sensitivity of a security’s price to changes in interest rates) tend to be more sensitive to changes in interest rates, usually making them more volatile than securities or funds with shorter durations. All of the factors mentioned above, individually or collectively, could lead to increased volatility and/or lower liquidity in the fixed income markets or negatively impact the Portfolio’s performance or cause the Portfolio to incur losses. As a result, the Portfolio may experience increased shareholder redemptions, which, among other things, could further reduce the net assets of the Portfolio.

The Portfolio may be subject to various risks as described in the Portfolio’s prospectus and in the Principal Risks in the Notes to Financial Statements.

The geographical classification of foreign (non-U.S.) securities in this report are classified by the country of incorporation of a holding. In certain instances, a security’s country of incorporation may be different from its country of economic exposure.

The United States presidential administration’s enforcement of tariffs on goods from other countries, with a focus on China, has contributed to international trade tensions and may impact portfolio securities.

The United Kingdom’s decision to leave the European Union may impact Portfolio returns. This decision may cause substantial volatility in foreign exchange markets, lead to weakness in the exchange rate of the British pound, result in a sustained period of market uncertainty, and destabilize some or all of the other European Union member countries and/or the Eurozone.

On the Portfolio Summary page in this Shareholder Report, the Average Annual Total Return table and Cumulative Returns chart measure performance assuming that any dividend and capital gain distributions were reinvested. The Cumulative Returns chart reflects only Administrative Class performance. Performance may vary by share class based on each class’s expense ratios. The Portfolio measures its performance against at least one broad-based securities market index (“benchmark index”). The benchmark index does not take into account fees, expenses, or taxes. The Portfolio’s past performance, before and after taxes, is not necessarily an indication of how the Portfolio will perform in the future. There is no assurance that the Portfolio, even if the Portfolio has experienced high or unusual performance for one or more periods, will experience similar levels of performance in the future. High performance is defined as a significant increase in either 1) the Portfolio’s total return in excess of that of the Portfolio’s benchmark between reporting periods or 2) the Portfolio’s total return in excess of the Portfolio’s historical returns between reporting periods. Unusual performance is defined as a significant change in the Portfolio’s performance as compared to one or more previous reporting periods.

The following table discloses the inception dates of the Portfolio and its respective share classes along with the Portfolio’s diversification status as of period end:

Portfolio Name	Portfolio Inception		Institutional Class		Administrative Class		Advisor Class		Diversification Status
PIMCO Low Duration Portfolio		02/16/99		04/10/00		02/16/99		03/31/06		Diversified

4 PIMCO VARIABLE INSURANCE TRUST

An investment in the Portfolio is not a bank deposit and is not guaranteed or insured by the Federal Deposit Insurance Corporation (“FDIC”) or any other government agency. It is possible to lose money on investments in the Portfolio.

The Trustees are responsible generally for overseeing the management of the Trust. The Trustees authorize the Trust to enter into service agreements with the Adviser, the Distributor, the Administrator and other service providers in order to provide, and in some cases authorize service providers to procure through other parties, necessary or desirable services on behalf of the Trust and the Portfolio. Shareholders are not parties to or third-party beneficiaries of such service agreements. Neither this Portfolio’s prospectus nor summary prospectus, the Trust’s Statement of Additional Information (“SAI”), any contracts filed as exhibits to the Trust’s registration statement, nor any other communications, disclosure documents or regulatory filings (including this report) from or on behalf of the Trust or the Portfolio creates a contract between or among any shareholder of the Portfolio, on the one hand, and the Trust, the Portfolio, a service provider to the Trust or the Portfolio, and/or the Trustees or officers of the Trust, on the other hand. The Trustees (or the Trust and its officers, service providers or other delegates acting under authority of the Trustees) may amend the most recent prospectus or use a new prospectus, summary prospectus or SAI with respect to the Portfolio or the Trust, and/or amend, file and/or issue any other communications, disclosure documents or regulatory filings, and may amend or enter into any contracts to which the Trust or the Portfolio is a party, and interpret the investment objective(s), policies, restrictions and contractual provisions applicable to the Portfolio, without shareholder input or approval, except in circumstances in which shareholder approval is specifically required by law (such as changes to fundamental investment policies) or where a shareholder approval requirement is specifically disclosed in the Trust’s then-current prospectus or SAI.

PIMCO has adopted written proxy voting policies and procedures (“Proxy Policy”) as required by Rule 206(4)-6 under the Investment Advisers Act of 1940, as amended. The Proxy Policy has been adopted by the Trust as the policies and procedures that PIMCO will use when voting proxies on behalf of the Portfolio. A description of the policies and procedures that PIMCO uses to vote proxies relating to portfolio securities of the Portfolio, and information about how the Portfolio voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, are available without charge, upon request, by calling the Trust at (888) 87-PIMCO, on the Portfolio’s website at www.pimco.com/pvit, and on the Securities and Exchange Commission’s (“SEC”) website at www.sec.gov.

The Trust files a complete schedule of the Portfolio’s holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. A copy of the Portfolio’s Form N-Q is available on the SEC’s website at www.sec.gov. A copy of the Portfolio’s Form N-Q is also available without charge, upon request, by calling the Trust at (888) 87-PIMCO and on the Portfolio’s website at www.pimco.com/pvit.

The SEC adopted a rule that, beginning in 2021, generally will allow shareholder reports to be delivered to investors by providing access to such reports online free of charge and by mailing a notice that the report is electronically available. Pursuant to the rule, investors may still elect to receive a complete shareholder report in the mail. Instructions for electing to receive paper copies of the Portfolio’s shareholder reports going forward may be found on the front cover of this report.

The SEC adopted amendments to certain disclosure requirements relating to open-end investment companies’ liquidity risk management programs. Effective December 1, 2019, large fund complexes will be required to include in their shareholder reports a discussion of their liquidity risk management programs’ operations over the past year.

ANNUAL REPORT DECEMBER 31, 2018 5

PIMCO Low Duration Portfolio

Cumulative Returns Through December 31, 2018

$10,000 invested at the end of the month when the Portfolio’s Administrative Class commenced operations.

Allocation Breakdown as of 12/31/2018^†§

U.S. Government Agencies	38.7%
Corporate Bonds & Notes	33.9%
Short-Term Instruments‡	12.2%
Asset-Backed Securities	7.6%
Sovereign Issues	3.6%
Non-Agency Mortgage-Backed Securities	1.8%
U.S. Treasury Obligations	1.7%
Loan Participations and Assignments	0.5%

^†  % of Investments, at value.

^§  Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.

^‡ Includes Central Funds Used for Cash Management Purposes.

Average Annual Total Return for the period ended December 31, 2018
		1 Year		5 Years		10 Years		Inception≈
	PIMCO Low Duration Portfolio Institutional Class		0.49%		1.00%		3.05%		3.65%
	PIMCO Low Duration Portfolio Administrative Class		0.34%		0.85%		2.90%		3.49%
	PIMCO Low Duration Portfolio Advisor Class		0.24%		0.75%		2.79%		3.01%
	ICE BofAML 1-3 Year U.S. Treasury Index±		1.58%		0.81%		0.95%		2.83%¨

All Portfolio returns are net of fees and expenses.

≈ For class inception dates please refer to the Important Information.

^¨ Average annual total return since 02/16/1999.

^± The ICE BofAML 1-3 Year U.S. Treasury Index is an unmanaged index comprised of U.S. Treasury securities, other than inflation-protection securities and STRIPS, with at least $1 billion in outstanding face value and a remaining term to final maturity of at least one year and less than three years.

It is not possible to invest directly in an unmanaged index.

Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. The Portfolio’s performance does not reflect the deduction of additional charges and expenses imposed in connection with investing in Variable Contracts, which will reduce returns. Differences in the Portfolio’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the prices of individual positions (which may be sourced from different pricing vendors or other sources) used by the Portfolio and the index. For performance current to the most recent month-end, visit www.pimco.com/pvit or via (888) 87-PIMCO.

The Portfolio’s total annual operating expense ratio in effect as of period end were 0.50% for Institutional Class shares, 0.65% for Administrative Class shares, and 0.75% for Advisor Class shares. Details regarding any changes to the Portfolio’s operating expenses, subsequent to period end, can be found in the Portfolio’s current prospectus, as supplemented.

Investment Objective and Strategy Overview

PIMCO Low Duration Portfolio seeks maximum total return, consistent with preservation of capital and prudent investment management, by investing under normal circumstances at least 65% of its total assets in a diversified portfolio of Fixed Income Instruments of varying maturities, which may be represented by forwards or derivatives, such as options, futures contracts or swap agreements. “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. Portfolio strategies may change from time to time. Please refer to the Portfolio’s current prospectus for more information regarding the Portfolio’s strategy.

Portfolio Insights

The following affected performance during the reporting period:

» Underweight exposure to U.S. rates contributed to performance, as U.S. interest rates rose.

» Overweight exposure to Brazilian duration contributed to performance, as Brazilian rates fell.

» Holdings of agency mortgage-backed securities detracted from performance, as spreads widened.

» Long exposure to the Argentine peso versus the U.S. dollar detracted from performance, as the Argentine peso depreciated against the U.S. dollar.

» Underweight exposure to Japanese duration detracted from performance, as Japanese rates fell.

6 PIMCO VARIABLE INSURANCE TRUST

Expense Example PIMCO Low Duration Portfolio

Example

As a shareholder of the Portfolio, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees (if applicable), and other Portfolio expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in the Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds.

The Expense Example does not reflect any fees or other expenses imposed by the Variable Contracts. If it did, the expenses reflected in the Expense Example would be higher. The Example is based on an investment of $1,000 invested at the beginning of the period and held from July 1, 2018 to December 31, 2018 unless noted otherwise in the table and footnotes below.

Actual Expenses

The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60), then multiply the result by the number in the appropriate row for your share class, in the column titled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other portfolios. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other portfolios.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information under the heading “Hypothetical (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different portfolios. In addition, if these transactional costs were included, your costs would have been higher.

Expense ratios may vary period to period because of various factors, such as an increase in expenses that are not covered by the management fees such as fees and expenses of the independent trustees and their counsel, extraordinary expenses and interest expense.

			Actual						Hypothetical (5% return before expenses)
	Beginning Account Value (07/01/18)		Ending Account Value (12/31/18)		Expenses Paid During Period*		Beginning Account Value (07/01/18)		Ending Account Value (12/31/18)		Expenses Paid During Period*		Net Annualized Expense Ratio**
Institutional Class	$	1,000.00	$	1,008.30	$	3.39	$	1,000.00	$	1,021.83	$	3.41		0.67	%
Administrative Class		1,000.00		1,007.50		4.15		1,000.00		1,021.07		4.18		0.82
Advisor Class		1,000.00		1,007.00		4.65		1,000.00		1,020.57		4.69		0.92

* Expenses Paid During Period are equal to the net annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Overall fees and expenses of investing in the Portfolio will be higher because the example does not reflect variable contract fees and expenses.

** Net Annualized Expense Ratio is reflective of any applicable contractual fee waivers and/or expense reimbursements or voluntary fee waivers. Details regarding fee waivers, if any, can be found in Note 9, Fees and Expenses, in the Notes to Financial Statements.

ANNUAL REPORT DECEMBER 31, 2018 7

Financial Highlights PIMCO Low Duration Portfolio

			Investment Operations							Less Distributions(b)
Selected Per Share Data for the Year Ended^:	Net Asset Value Beginning of Year		Net Investment Income (Loss)(a)		Net Realized/ Unrealized Gain (Loss)			Total		From Net Investment Income			From Net Realized Capital Gain		Tax Basis Return of Capital			Total
Institutional Class
12/31/2018	$	10.24	$	0.20	$	(0.15	)	$	0.05	$	(0.21	)	$	0.00	$	0.00		$	(0.21	)
12/31/2017		10.24		0.15		0.00			0.15		(0.13	)		0.00		(0.02	)		(0.15	)
12/31/2016		10.25		0.16		0.00			0.16		(0.09	)		0.00		(0.08	)		(0.17	)
12/31/2015		10.58		0.15		(0.10	)		0.05		(0.38	)		0.00		0.00			(0.38	)
12/31/2014		10.61		0.10		0.01			0.11		(0.14	)		0.00		0.00			(0.14	)
Administrative Class
12/31/2018		10.24		0.20		(0.17	)		0.03		(0.19	)		0.00		0.00			(0.19	)
12/31/2017		10.24		0.13		0.01			0.14		(0.12	)		0.00		(0.02	)		(0.14	)
12/31/2016		10.25		0.14		0.00			0.14		(0.07	)		0.00		(0.08	)		(0.15	)
12/31/2015		10.58		0.14		(0.11	)		0.03		(0.36	)		0.00		0.00			(0.36	)
12/31/2014		10.61		0.10		(0.01	)		0.09		(0.12	)		0.00		0.00			(0.12	)
Advisor Class
12/31/2018		10.24		0.19		(0.17	)		0.02		(0.18	)		0.00		0.00			(0.18	)
12/31/2017		10.24		0.12		0.01			0.13		(0.11	)		0.00		(0.02	)		(0.13	)
12/31/2016		10.25		0.13		0.00			0.13		(0.06	)		0.00		(0.08	)		(0.14	)
12/31/2015		10.58		0.13		(0.11	)		0.02		(0.35	)		0.00		0.00			(0.35	)
12/31/2014		10.61		0.09		(0.01	)		0.08		(0.11	)		0.00		0.00			(0.11	)

^ A zero balance may reflect actual amounts rounding to less than $0.01 or 0.01%.

^(a)  Per share amounts based on average number of shares outstanding during the year.

^(b)  The tax characterization of distributions is determined in accordance with Federal income tax regulations. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

8 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

					Ratios/Supplemental Data
							Ratios to Average Net Assets
Net Asset Value End of Year		Total Return			Net Assets End of Year (000s)		Expenses			Expenses Excluding Waivers			Expenses Excluding Interest Expense			Expenses Excluding Interest Expense and Waivers			Net Investment Income (Loss)			Portfolio Turnover Rate
$	10.08		0.49	%	$	8,588		0.59	%		0.59	%		0.50	%		0.50	%		2.02	%		624	%
	10.24		1.50			15,368		0.50			0.50			0.50			0.50			1.44			544
	10.24		1.56			8,710		0.50			0.50			0.50			0.50			1.59			391
	10.25		0.47			8,291		0.51			0.51			0.50			0.50			1.39			181
	10.58		1.00			13,590		0.50			0.50			0.50			0.50			0.96			208
	10.08		0.34			1,197,654		0.74			0.74			0.65			0.65			1.94			624
	10.24		1.35			1,272,418		0.65			0.65			0.65			0.65			1.31			544
	10.24		1.41			1,248,263		0.65			0.65			0.65			0.65			1.40			391
	10.25		0.31			1,323,009		0.66			0.66			0.65			0.65			1.32			181
	10.58		0.85			1,481,605		0.65			0.65			0.65			0.65			0.90			208
	10.08		0.24			757,166		0.84			0.84			0.75			0.75			1.85			624
	10.24		1.25			761,611		0.75			0.75			0.75			0.75			1.21			544
	10.24		1.30			717,542		0.75			0.75			0.75			0.75			1.31			391
	10.25		0.21			677,728		0.76			0.76			0.75			0.75			1.25			181
	10.58		0.75			647,468		0.75			0.75			0.75			0.75			0.80			208

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 9

Statement of Assets and Liabilities PIMCO Low Duration Portfolio

(Amounts in thousands†, except per share amounts)	December 31, 2018
Assets:
Investments, at value
Investments in securities*	$	2,365,404
Investments in Affiliates		270,003
Financial Derivative Instruments
Exchange-traded or centrally cleared		1,317
Over the counter		21,467
Cash		45
Deposits with counterparty		15,570
Foreign currency, at value		3,617
Receivable for investments sold		1,465
Receivable for TBA investments sold		595,613
Receivable for Portfolio shares sold		1,780
Interest and/or dividends receivable		8,759
Dividends receivable from Affiliates		601
Total Assets		3,285,641
Liabilities:
Borrowings & Other Financing Transactions
Payable for reverse repurchase agreements	$	157,691
Payable for short sales		83,031
Financial Derivative Instruments
Exchange-traded or centrally cleared		2,178
Over the counter		19,324
Payable for investments purchased		131,371
Payable for investments in Affiliates purchased		601
Payable for TBA investments purchased		909,215
Deposits from counterparty		12,658
Payable for Portfolio shares redeemed		5,034
Accrued investment advisory fees		402
Accrued supervisory and administrative fees		402
Accrued distribution fees		155
Accrued servicing fees		148
Other liabilities		23
Total Liabilities		1,322,233
Net Assets	$	1,963,408
Net Assets Consist of:
Paid in capital	$	2,036,756
Distributable earnings (accumulated loss)		(73,348	)
Net Assets	$	1,963,408
Net Assets:
Institutional Class	$	8,588
Administrative Class		1,197,654
Advisor Class		757,166
Shares Issued and Outstanding:
Institutional Class		852
Administrative Class		118,850
Advisor Class		75,137
Net Asset Value Per Share Outstanding:
Institutional Class	$	10.08
Administrative Class		10.08
Advisor Class		10.08
Cost of investments in securities	$	2,363,058
Cost of investments in Affiliates	$	271,724
Cost of foreign currency held	$	3,618
Proceeds received on short sales	$	82,907
Cost or premiums of financial derivative instruments, net	$	3,368
* Includes repurchase agreements of:	$	1,122

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

10 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

Statement of Operations PIMCO Low Duration Portfolio

(Amounts in thousands†)	Year Ended December 31, 2018
Investment Income:
Interest, net of foreign taxes*	$	46,657
Dividends		1
Dividends from Investments in Affiliates		7,203
Total Income		53,861
Expenses:
Investment advisory fees		5,011
Supervisory and administrative fees		5,011
Servicing fees - Administrative Class		1,846
Distribution and/or servicing fees - Advisor Class		1,900
Trustee fees		58
Interest expense		1,787
Miscellaneous expense		6
Total Expenses		15,619
Net Investment Income (Loss)		38,242
Net Realized Gain (Loss):
Investments in securities		6,571
Investments in Affiliates		11
Net capital gain distributions received from Affiliate investments		237
Exchange-traded or centrally cleared financial derivative instruments		(2,722	)
Over the counter financial derivative instruments		(23,121	)
Foreign currency		(1,921	)
Net Realized Gain (Loss)		(20,945	)
Net Change in Unrealized Appreciation (Depreciation):
Investments in securities		(41,051	)
Investments in Affiliates		(1,838	)
Exchange-traded or centrally cleared financial derivative instruments		(12,091	)
Over the counter financial derivative instruments		42,252
Foreign currency assets and liabilities		(228	)
Net Change in Unrealized Appreciation (Depreciation)		(12,956	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	4,341
* Foreign tax withholdings	$	32

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 11

Statements of Changes in Net Assets PIMCO Low Duration Portfolio

(Amounts in thousands†)	Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets from:
Operations:
Net investment income (loss)	$	38,242		$	25,610
Net realized gain (loss)		(20,945	)		(760	)
Net change in unrealized appreciation (depreciation)		(12,956	)		1,782
Net Increase (Decrease) in Net Assets Resulting from Operations		4,341			26,632
Distributions to Shareholders:
From net investment income and/or net realized capital gains*
Institutional Class		(269	)		(153	)
Administrative Class		(23,503	)		(13,953	)
Advisor Class		(13,801	)		(7,617	)
Tax basis return of capital
Institutional Class		0			(28	)
Administrative Class		0			(2,787	)
Advisor Class		0			(1,664	)
Total Distributions(a)		(37,573	)		(26,202	)
Portfolio Share Transactions:
Net increase (decrease) resulting from Portfolio share transactions**		(52,757	)		74,452
Total Increase (Decrease) in Net Assets		(85,989	)		74,882
Net Assets:
Beginning of year		2,049,397			1,974,515
End of year	$	1,963,408		$	2,049,397

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

* See Note 2, New Accounting Pronouncements, in the Notes to Financial Statements for more information.

** See Note 13, Shares of Beneficial Interest, in the Notes to Financial Statements.

^(a) The tax characterization of distributions is determined in accordance with Federal income tax regulations. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

12 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

Schedule of Investments PIMCO Low Duration Portfolio

December 31, 2018

(Amounts in thousands*, except number of shares, contracts and units, if any)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
INVESTMENTS IN SECURITIES 120.5%
LOAN PARTICIPATIONS AND ASSIGNMENTS 0.6%
State Of Qatar
3.603% due 12/21/2020 «	$		6,000	$		5,970
Toyota Motor Credit Corp.
3.393% (LIBOR03M + 0.580%) due 09/28/2020 «~			6,000			5,986
Total Loan Participations and Assignments (Cost $11,929)						11,956
CORPORATE BONDS & NOTES 45.5%
BANKING & FINANCE 30.6%
ABN AMRO Bank NV
3.261% (US0003M + 0.570%) due 08/27/2021 ~			5,100			5,073
AIG Global Funding
3.282% (US0003M + 0.460%) due 06/25/2021 ~			3,000			2,978
Ally Financial, Inc.
3.500% due 01/27/2019			1,700			1,700
7.500% due 09/15/2020			100			104
8.000% due 03/15/2020			200			207
American Express Co.
3.165% (US0003M + 0.525%) due 05/17/2021 ~			5,900			5,875
3.192% (US0003M + 0.600%) due 11/05/2021 ~			5,000			4,982
3.700% due 11/05/2021			5,000			5,048
American Express Credit Corp.
2.375% due 05/26/2020			5,400			5,344
American Tower Corp.
2.800% due 06/01/2020			9,900			9,826
3.400% due 02/15/2019			6,500			6,504
Australia & New Zealand Banking Group Ltd.
3.100% (US0003M + 0.460%) due 05/17/2021 ~			4,650			4,639
3.300% due 05/17/2021			5,000			4,996
AvalonBay Communities, Inc.
3.625% due 10/01/2020			3,000			3,017
Aviation Capital Group LLC
3.190% (US0003M + 0.670%) due 07/30/2021 ~			3,100			3,077
3.688% (US0003M + 0.950%) due 06/01/2021 ~			4,900			4,893
Banco Santander S.A.
3.545% (US0003M + 1.120%) due 04/12/2023 ~			2,400			2,355
Bank of America Corp.
3.437% (US0003M + 0.960%) due 07/23/2024 ~			1,200			1,179
3.447% (US0003M + 0.650%) due 10/01/2021 ~			900			894
3.499% due 05/17/2022 •			4,000			4,002
3.541% (US0003M + 0.790%) due 03/05/2024 ~			8,300			8,070
3.629% (US0003M + 1.160%) due 01/20/2023 ~			200			200
Bank of Nova Scotia
1.875% due 04/26/2021			3,900			3,809
Barclays Bank PLC
14.000% due 06/15/2019 •(f)	GBP		400			535
Barclays PLC
4.046% (US0003M + 1.430%) due 02/15/2023 ~	$		6,900			6,642
4.610% due 02/15/2023 •			6,900			6,846
4.728% (US0003M + 2.110%) due 08/10/2021 ~			4,900			4,942
Branch Banking & Trust Co.
1.450% due 05/10/2019			1,083			1,077
Brixmor Operating Partnership LP
3.591% (US0003M + 1.050%) due 02/01/2022 ~			5,000			4,983
Citibank N.A.
2.861% (US0003M + 0.320%) due 05/01/2020 ~			1,100			1,096

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
3.047% (US0003M + 0.570%) due 07/23/2021 ~	$		4,900	$		4,857
3.050% due 05/01/2020			5,000			4,994
Citigroup, Inc.
2.750% due 04/25/2022			1,100			1,067
3.199% (US0003M + 0.690%) due 10/27/2022 ~			5,000			4,881
3.696% (US0003M + 0.930%) due 06/07/2019 ~			1,100			1,103
4.183% (US0003M + 1.380%) due 03/30/2021 ~			4,300			4,330
Citizens Bank N.A.
2.500% due 03/14/2019			2,500			2,498
Compass Bank
3.501% (US0003M + 0.730%) due 06/11/2021 ~			5,000			4,924
Credit Suisse Group Funding Guernsey Ltd.
4.735% (US0003M + 2.290%) due 04/16/2021 ~			5,800			5,966
DBS Bank Ltd.
3.300% due 11/27/2021			5,900			5,950
Deutsche Bank AG
0.184% (EUR003M + 0.500%) due 12/07/2020 ~	EUR		5,000			5,579
3.766% (US0003M + 1.290%) due 02/04/2021 ~	$		5,000			4,864
4.250% due 10/14/2021			2,500			2,446
4.528% (US0003M + 1.910%) due 05/10/2019 ~			6,500			6,479
Dexia Credit Local S.A.
2.500% due 01/25/2021			6,200			6,167
Ford Motor Credit Co. LLC
3.512% (US0003M + 0.930%) due 11/04/2019 ~			6,000			5,979
3.754% (US0003M + 0.930%) due 09/24/2020 ~			5,000			4,912
3.988% (US0003M + 1.580%) due 01/08/2019 ~			5,600			5,600
5.750% due 02/01/2021			600			612
GE Capital European Funding Unlimited Co.
0.000% (EUR003M + 0.225%) due 05/17/2021 ~	EUR		400			437
4.350% due 11/03/2021			1,300			1,611
General Motors Financial Co., Inc.
2.400% due 05/09/2019	$		2,200			2,192
3.100% due 01/15/2019			3,501			3,501
3.200% due 07/13/2020			7,000			6,915
3.366% (US0003M + 0.930%) due 04/13/2020 ~			3,860			3,837
3.996% (US0003M + 1.560%) due 01/15/2020 ~			3,900			3,919
4.496% (US0003M + 2.060%) due 01/15/2019 ~			5,500			5,503
Goldman Sachs Group, Inc.
3.427% (US0003M + 0.750%) due 02/23/2023 ~			6,200			5,995
3.552% (US0003M + 0.730%) due 12/27/2020 ~			9,600			9,563
3.637% (US0003M + 1.160%) due 04/23/2020 ~			5,684			5,705
3.850% (US0003M + 1.360%) due 04/23/2021 ~			1,300			1,310
3.988% (US0003M + 1.200%) due 09/15/2020 ~			4,500			4,522
6.000% due 06/15/2020			2,000			2,071
Harley-Davidson Financial Services, Inc.
3.146% (US0003M + 0.500%) due 05/21/2020 ~			5,100			5,094
3.647% (US0003M + 0.940%) due 03/02/2021 ~			4,900			4,896
HSBC Holdings PLC
3.240% (US0003M + 0.600%) due 05/18/2021 ~			4,800			4,730
3.426% (US0003M + 0.650%) due 09/11/2021 ~			4,800			4,738
HSBC USA, Inc.
3.228% (US0003M + 0.610%) due 11/13/2019 ~			12,900			12,914

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
International Lease Finance Corp.
5.875% due 04/01/2019	$		1,500	$		1,506
6.250% due 05/15/2019			2,250			2,270
Jackson National Life Global Funding
2.736% (US0003M + 0.300%) due 10/15/2020 ~			5,000			4,952
John Deere Capital Corp.
3.316% (US0003M + 0.550%) due 06/07/2023 ~			3,500			3,445
JPMorgan Chase & Co.
3.367% (US0003M + 0.890%) due 07/23/2024 ~			5,000			4,889
3.411% (US0003M + 0.610%) due 06/18/2022 ~			3,000			2,968
3.714% (US0003M + 1.205%) due 10/29/2020 ~			5,800			5,856
JPMorgan Chase Bank N.A.
2.848% (US0003M + 0.340%) due 04/26/2021 ~			10,000			9,911
2.868% (US0003M + 0.250%) due 02/13/2020 ~			7,100			7,092
2.968% (US0003M + 0.230%) due 09/01/2020 ~			4,000			3,985
3.010% (SOFRRATE + 0.550%) due 10/19/2020 ~			4,000			3,993
Lloyds Bank PLC
3.079% (US0003M + 0.490%) due 05/07/2021 ~			5,000			4,951
Lloyds Banking Group PLC
3.590% (US0003M + 0.800%) due 06/21/2021 ~			4,000			3,962
Macquarie Bank Ltd.
3.629% (US0003M + 1.120%) due 07/29/2020 ~			8,900			8,949
Metropolitan Life Global Funding
1.950% due 09/15/2021			2,500			2,415
2.300% due 04/10/2019			3,000			2,995
Mitsubishi UFJ Financial Group, Inc.
3.478% (US0003M + 0.740%) due 03/02/2023 ~			10,200			10,037
4.618% (US0003M + 1.880%) due 03/01/2021 ~			535			548
Mizuho Financial Group, Inc.
3.331% (BBSW3M + 1.400%) due 07/19/2023 ~	AUD		6,700			4,717
3.541% (US0003M + 0.790%) due 03/05/2023 ~	$		5,100			5,017
Morgan Stanley
3.916% (US0003M + 1.375%) due 02/01/2019 ~			5,600			5,605
7.300% due 05/13/2019			2,200			2,234
MUFG Bank Ltd.
2.350% due 09/08/2019			3,600			3,580
Nasdaq, Inc.
3.214% (US0003M + 0.390%) due 03/22/2019 ~			700			700
National Rural Utilities Cooperative Finance Corp.
3.178% (US0003M + 0.375%) due 06/30/2021 ~			5,400			5,360
Natwest Markets PLC
0.084% (EUR003M + 0.400%) due 03/02/2020 ~	EUR		4,400			5,019
Navient Corp.
8.000% due 03/25/2020	$		300			306
Nissan Motor Acceptance Corp.
2.350% due 03/04/2019			200			200
NTT Finance Corp.
1.900% due 07/21/2021			2,800			2,701
Oversea-Chinese Banking Corp. Ltd.
3.090% (US0003M + 0.450%) due 05/17/2021 ~			6,000			5,998
Regions Bank
3.118% (US0003M + 0.500%) due 08/13/2021 ~			5,600			5,501
Reliance Standard Life Global Funding
2.500% due 01/15/2020			1,000			990
Royal Bank of Canada
3.350% due 10/22/2021			10,000			10,108

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 13

Schedule of Investments PIMCO Low Duration Portfolio (Cont.)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Royal Bank of Scotland Group PLC
6.400% due 10/21/2019	$		5,000	$		5,105
Santander UK PLC
3.276% (US0003M + 0.660%) due 11/15/2021 ~			5,900			5,848
3.358% (US0003M + 0.620%) due 06/01/2021 ~			5,000			4,947
SBA Tower Trust
2.877% due 07/15/2046			1,400			1,376
Siam Commercial Bank PCL
3.500% due 04/07/2019			4,900			4,906
Skandinaviska Enskilda Banken AB
3.070% (US0003M + 0.430%) due 05/17/2021 ~			5,000			4,969
SL Green Operating Partnership LP
3.609% (US0003M + 0.980%) due 08/16/2021 ~			6,000			5,966
Standard Chartered PLC
3.558% (US0003M + 1.150%) due 01/20/2023 ~			4,900			4,865
Sumitomo Mitsui Banking Corp.
2.514% due 01/17/2020			400			397
2.799% (US0003M + 0.350%) due 01/17/2020 ~			4,800			4,797
2.806% (US0003M + 0.370%) due 10/16/2020 ~			6,000			5,962
Sumitomo Mitsui Trust Bank Ltd.
3.244% (US0003M + 0.440%) due 09/19/2019 ~			6,000			6,003
Svenska Handelsbanken AB
3.159% (US0003M + 0.470%) due 05/24/2021 ~			4,900			4,857
Synchrony Bank
3.650% due 05/24/2021			5,200			5,091
Synchrony Financial
3.812% (US0003M + 1.230%) due 02/03/2020 ~			5,600			5,597
Toronto-Dominion Bank
3.350% due 10/22/2021			6,000			6,065
Toyota Motor Credit Corp.
2.125% due 07/18/2019			1,500			1,492
3.040% due 05/17/2022 •			5,000			4,947
U.S. Bank N.A.
2.737% (US0003M + 0.250%) due 07/24/2020 ~			5,000			4,989
2.828% (US0003M + 0.320%) due 04/26/2021 ~			4,000			3,986
3.050% due 07/24/2020			5,000			4,994
3.150% due 04/26/2021			6,100			6,107
UBS AG
2.450% due 12/01/2020			3,850			3,781
3.027% (US0003M + 0.320%) due 05/28/2019 ~			7,200			7,199
3.347% due 06/08/2020 •			2,400			2,400
UBS Group Funding Switzerland AG
4.216% due 04/14/2021 •			9,900			10,062
Unibail-Rodamco SE
3.206% (US0003M + 0.770%) due 04/16/2019 ~			9,800			9,818
UniCredit SpA
7.830% due 12/04/2023			10,700			11,205
Wells Fargo & Co.
3.349% (US0003M + 0.880%) due 07/22/2020 ~			2,000			2,004
4.076% (US0003M + 1.340%) due 03/04/2021 ~			4,000			4,043
Wells Fargo Bank N.A.
2.940% (SOFRRATE + 0.480%) due 03/25/2020 ~			5,000			4,977
2.977% (US0003M + 0.500%) due 07/23/2021 ~			5,000			4,973
2.987% (US0003M + 0.510%) due 10/22/2021 ~			2,000			1,977
Westpac Banking Corp.
2.896% (US0003M + 0.280%) due 05/15/2020 ~			4,900			4,877
						600,896

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
INDUSTRIALS 12.5%
AbbVie, Inc.
2.300% due 05/14/2021	$		3,200	$		3,127
3.375% due 11/14/2021			3,100			3,100
Adani Ports & Special Economic Zone Ltd.
3.500% due 07/29/2020			4,300			4,258
Amazon.com, Inc.
1.900% due 08/21/2020			4,200			4,140
Aptiv PLC
3.150% due 11/19/2020			1,895			1,882
BAT Capital Corp.
3.204% due 08/14/2020 •			6,200			6,140
Bayer U.S. Finance LLC
3.452% (US0003M + 0.630%) due 06/25/2021 ~			6,100			6,021
Boston Scientific Corp.
2.850% due 05/15/2020			2,800			2,782
Broadcom Corp.
2.375% due 01/15/2020			4,000			3,951
Caesars Resort Collection LLC
5.250% due 10/15/2025			750			647
Campbell Soup Co.
3.288% (US0003M + 0.500%) due 03/16/2020 ~			9,000			8,921
3.418% (US0003M + 0.630%) due 03/15/2021 ~			4,100			4,022
Charter Communications Operating LLC
3.579% due 07/23/2020			4,900			4,896
4.464% due 07/23/2022			2,100			2,122
Comcast Corp.
3.127% (US0003M + 0.330%) due 10/01/2020 ~			1,700			1,693
3.237% (US0003M + 0.440%) due 10/01/2021 ~			500			495
Conagra Brands, Inc.
2.908% (US0003M + 0.500%) due 10/09/2020 ~			2,500			2,473
Constellation Brands, Inc.
2.250% due 11/06/2020			1,710			1,678
CVS Health Corp.
3.125% due 03/09/2020			5,100			5,091
3.397% (US0003M + 0.630%) due 03/09/2020 ~			6,100			6,090
D.R. Horton, Inc.
3.750% due 03/01/2019			1,900			1,900
Daimler Finance North America LLC
2.972% (US0003M + 0.390%) due 05/04/2020 ~			5,000			4,973
3.132% (US0003M + 0.550%) due 05/04/2021 ~			5,000			4,957
Dell International LLC
3.480% due 06/01/2019			2,700			2,692
Diageo Capital PLC
2.880% (US0003M + 0.240%) due 05/18/2020 ~			2,400			2,391
3.000% due 05/18/2020			2,600			2,602
DISH DBS Corp.
7.875% due 09/01/2019			2,190			2,240
Dominion Energy Gas Holdings LLC
2.500% due 12/15/2019			2,300			2,283
DXC Technology Co.
3.688% (US0003M + 0.950%) due 03/01/2021 ~			1,231			1,230
Energy Transfer Partners LP
5.750% due 09/01/2020			1,630			1,673
Flex Ltd.
4.625% due 02/15/2020			2,100			2,111
General Electric Co.
0.000% (EUR003M + 0.300%) due 05/28/2020 •	EUR		700			786
6.000% due 08/07/2019	$		2,500			2,527
General Mills, Inc.
2.976% (US0003M + 0.540%) due 04/16/2021 ~			1,000			985

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Georgia-Pacific LLC
5.400% due 11/01/2020	$		6,800	$		7,046
GlaxoSmithKline Capital PLC
2.964% (US0003M + 0.350%) due 05/14/2021 ~			5,100			5,067
Harris Corp.
3.000% (US0003M + 0.480%) due 04/30/2020 ~			4,400			4,388
3.166% due 02/27/2019 ~			4,400			4,399
Hyundai Capital America
3.601% due 09/18/2020 •			6,700			6,674
Keurig Dr Pepper, Inc.
3.551% due 05/25/2021			7,100			7,093
Kinder Morgan Energy Partners LP
9.000% due 02/01/2019			700			703
Kinder Morgan, Inc.
5.000% due 02/15/2021			300			307
Kraft Heinz Foods Co.
2.800% due 07/02/2020			3,300			3,272
3.375% due 06/15/2021			3,200			3,194
Local Initiatives Support Corp.
3.005% due 03/01/2022			1,300			1,296
Marathon Oil Corp.
2.700% due 06/01/2020			1,850			1,823
Marriott International, Inc.
3.229% (US0003M + 0.600%) due 12/01/2020 ~			4,900			4,890
Masco Corp.
3.500% due 04/01/2021			2,887			2,875
McDonald’s Corp.
2.939% (US0003M + 0.430%) due 10/28/2021 ~			5,000			4,967
Medtronic, Inc.
2.500% due 03/15/2020			1,200			1,194
MGM Resorts International
8.625% due 02/01/2019			1,300			1,308
Minera y Metalurgica del Boleo SAPI de C.V.
2.875% due 05/07/2019			4,900			4,896
Mondelez International, Inc.
3.000% due 05/07/2020			7,000			6,975
Mylan NV
3.750% due 12/15/2020			1,600			1,600
Newell Brands, Inc.
2.600% due 03/29/2019			245			245
Novartis Securities Investment Ltd.
5.125% due 02/10/2019			1,600			1,603
Oracle Corp.
1.900% due 09/15/2021			9,900			9,611
Sprint Spectrum Co. LLC
3.360% due 03/20/2023			1,422			1,408
Takeda Pharmaceutical Co. Ltd.
3.800% due 11/26/2020			3,900			3,925
Thermo Fisher Scientific, Inc.
4.700% due 05/01/2020			600			614
Time Warner Cable LLC
8.750% due 02/14/2019			1,100			1,106
United Technologies Corp.
3.279% (US0003M + 0.650%) due 08/16/2021 ~			5,200			5,182
Virgin Media Receivables Financing Notes DAC
5.500% due 09/15/2024	GBP		5,900			7,244
Volkswagen Group of America Finance LLC
2.450% due 11/20/2019	$		4,200			4,161
3.388% (US0003M + 0.770%) due 11/13/2020 ~			5,900			5,862
3.558% (US0003M + 0.940%) due 11/12/2021 ~			5,900			5,845
3.875% due 11/13/2020			5,900			5,930
4.000% due 11/12/2021			5,900			5,916
WestRock RKT Co.
4.450% due 03/01/2019			400			401
Zimmer Biomet Holdings, Inc.
2.700% due 04/01/2020			2,300			2,278
3.554% (US0003M + 0.750%) due 03/19/2021 ~			2,300			2,279
						244,456

14 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
UTILITIES 2.4%
AT&T, Inc.
2.300% due 03/11/2019	$		2,000	$		1,997
3.086% (US0003M + 0.650%) due 01/15/2020 ~			1,000			998
3.386% (US0003M + 0.950%) due 07/15/2021 ~			1,600			1,595
3.488% (US0003M + 0.750%) due 06/01/2021 ~			5,900			5,864
BellSouth LLC
4.333% due 04/26/2021			5,100			5,116
British Telecommunications PLC
2.350% due 02/14/2019			5,100			5,093
Chugoku Electric Power Co., Inc.
2.701% due 03/16/2020			2,100			2,085
Commonwealth Edison Co.
2.150% due 01/15/2019			5,100			5,098
Consolidated Edison Co. of New York, Inc.
3.222% (US0003M + 0.400%) due 06/25/2021 ~			5,200			5,151
DTE Energy Co.
2.400% due 12/01/2019			3,700			3,663
NextEra Energy Capital Holdings, Inc.
3.107% (US0003M + 0.400%) due 08/21/2020 ~			6,000			5,994
Sempra Energy
3.238% (US0003M + 0.450%) due 03/15/2021 ~			5,000			4,900
						47,554
Total Corporate Bonds & Notes (Cost $896,958)						892,906
U.S. GOVERNMENT AGENCIES 52.0%
Fannie Mae
1.000% due 01/25/2043			152			138
2.375% due 12/25/2036 - 07/25/2037 •			250			246
2.665% due 09/25/2042 •			216			215
2.856% due 03/25/2044 •			39			39
3.006% due 12/25/2022 •			6			6
3.253% due 07/01/2042 - 06/01/2043 •			177			176
3.303% due 09/01/2041 •			118			117
3.306% due 04/25/2023 •			20			20
3.355% due 06/17/2027 •			18			19
3.356% due 02/25/2023 •			1			1
3.406% due 05/25/2022 •			1			1
3.453% due 09/01/2040 •			0			1
3.500% due 07/01/2047 - 12/01/2047			29,845			29,893
3.500% due 10/01/2047 - 11/01/2047 (h)			44,618			44,658
3.844% due 11/01/2035 •			24			25
3.905% due 07/01/2035 •			21			22
4.000% due 08/01/2044 - 12/01/2048			225,485			230,106
4.000% due 10/01/2048 (h)			75,043			76,597
4.258% due 12/01/2036 •			6			7
4.269% due 09/01/2035 •			116			121
4.293% due 05/01/2038 •			2,228			2,336
4.500% due 01/01/2020 - 08/01/2046			7,809			8,112
5.000% due 05/01/2027 - 04/25/2033			120			126
5.188% due 09/01/2034 •			3			3
5.379% due 12/25/2042 ~			5			6
5.500% due 12/01/2028			16			17
6.000% due 02/01/2033 - 01/01/2039			1,424			1,553
6.500% due 04/01/2036			75			81
Fannie Mae, TBA
3.000% due 01/01/2049			19,600			19,128
3.500% due 01/01/2049 - 02/01/2049			20,700			20,698
4.000% due 01/01/2049 - 02/01/2049			265,900			270,951

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
4.500% due 02/01/2049	$		57,000	$		59,007
5.500% due 01/01/2049			500			530
Freddie Mac
2.000% due 11/15/2026			3,943			3,868
2.355% due 12/25/2036 •			126			127
2.636% due 08/25/2031 •			86			85
2.699% due 12/15/2042 •			6,427			6,427
3.156% due 02/25/2045 •			165			164
4.000% due 08/01/2048			52,853			53,943
4.000% due 09/01/2048 (h)			41,329			42,160
4.295% due 07/01/2035 •			40			41
4.521% due 09/01/2035 •			143			149
5.000% due 08/01/2024 - 12/01/2041			251			265
5.752% due 08/15/2044 •			3,361			3,514
6.500% due 07/25/2043			41			46
Ginnie Mae
2.734% due 06/20/2065 •			3,104			3,110
2.834% due 10/20/2065 •			8,837			8,886
2.854% due 07/20/2063 •			3,317			3,329
3.114% due 05/20/2066 •			1,057			1,071
3.164% due 04/20/2066 •			6,971			7,077
3.524% due 07/20/2067 •			7,715			7,945
5.000% due 02/20/2041 (a)			20			0
5.000% due 09/20/2048			77,980			81,386
Ginnie Mae, TBA
5.000% due 01/01/2049			30,900			32,151
Total U.S. Government Agencies (Cost $1,010,289)						1,020,700
U.S. TREASURY OBLIGATIONS 2.2%
U.S. Treasury Inflation Protected Securities (e)
0.125% due 04/15/2022			16,428			15,898
0.625% due 04/15/2023			28,707			28,243
Total U.S. Treasury Obligations (Cost $44,066)						44,141
NON-AGENCY MORTGAGE-BACKED SECURITIES 2.4%
Adjustable Rate Mortgage Trust
4.156% due 09/25/2035 ^~			406			380
American Home Mortgage Investment Trust
4.250% due 10/25/2034 •			34			34
4.885% due 02/25/2045 •			68			69
Banc of America Funding Trust
4.447% due 01/20/2047 ^~			252			241
Banc of America Mortgage Trust
4.460% due 05/25/2033 ~			134			137
4.487% due 07/25/2034 ~			320			326
4.640% due 08/25/2034 ~			755			769
6.500% due 10/25/2031			3			4
BCAP LLC Trust
2.540% due 01/26/2036 •			2,203			2,177
Bear Stearns Adjustable Rate Mortgage Trust
3.950% due 04/25/2033 ~			2			2
4.263% due 07/25/2034 ~			141			139
4.427% due 01/25/2035 ~			73			71
4.452% due 01/25/2035 ~			1,809			1,793
4.835% due 01/25/2034 ~			11			11
Bear Stearns ALT-A Trust
2.666% due 02/25/2034 •			267			266
Bear Stearns Structured Products, Inc. Trust
4.348% due 01/26/2036 ^~			545			493
5.425% due 12/26/2046 ^~			337			315
Chevy Chase Funding LLC Mortgage-Backed Certificates
2.786% due 01/25/2035 •			34			33
Citigroup Mortgage Loan Trust
4.380% due 08/25/2035 ^~			240			183
4.490% due 05/25/2035 •			59			59
Countrywide Alternative Loan Trust
6.000% due 10/25/2033			8			8
Countrywide Home Loan Mortgage Pass-Through Trust
4.225% due 02/20/2035 ~			256			258
4.274% due 11/20/2034 ~			538			548

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
4.290% due 11/25/2034 ~	$		307	$		305
4.667% due 02/20/2036 ^•			289			263
Credit Suisse First Boston Mortgage Securities Corp.
2.885% due 03/25/2032 ~			1			1
Credit Suisse Mortgage Capital Certificates
3.975% due 09/26/2047 ~			99			100
Eurosail PLC
0.044% due 12/10/2044 •	EUR		78			88
1.600% due 09/13/2045 •	GBP		54			69
1.850% (BP0003M + 0.950%) due 06/13/2045 ~			7,836			9,994
First Horizon Alternative Mortgage Securities Trust
4.225% due 09/25/2034 ~	$		473			468
First Horizon Mortgage Pass-Through Trust
4.261% due 08/25/2035 ~			114			94
4.565% due 02/25/2035 ~			1,143			1,144
Firstmac Mortgage Funding Trust
2.945% due 03/08/2049 •	AUD		3,851			2,700
3.195% due 03/08/2049 •			6,100			4,283
GMAC Mortgage Corp. Loan Trust
4.638% due 11/19/2035 ~	$		68			66
Great Hall Mortgages PLC
2.931% due 06/18/2039 •			1,373			1,323
GS Mortgage Securities Corp. Trust
3.980% due 02/10/2029			5,000			5,022
GS Mortgage Securities Trust
1.961% due 11/10/2045 ~(a)			2,183			135
GSR Mortgage Loan Trust
4.300% due 09/25/2035 ~			268			274
4.680% due 09/25/2034 ~			64			66
HarborView Mortgage Loan Trust
2.910% due 05/19/2035 •			74			71
4.065% due 07/19/2035 ^~			340			323
Holmes Master Issuer PLC
2.796% due 10/15/2054 •			4,100			4,089
Impac CMB Trust
3.506% due 07/25/2033 •			81			79
JPMorgan Chase Commercial Mortgage Securities Trust
1.781% due 10/15/2045 ~(a)			14,400			747
JPMorgan Mortgage Trust
5.750% due 01/25/2036 ^			16			12
Juno Eclipse Ltd.
0.000% due 11/20/2022 •	EUR		471			535
Merrill Lynch Mortgage Investors Trust
2.756% due 11/25/2035 •	$		80			76
3.166% due 09/25/2029 •			543			537
Opteum Mortgage Acceptance Corp. Asset-Backed Pass-Through Certificates
2.786% due 12/25/2035 •			405			375
PHHMC Trust
5.527% due 07/18/2035 ~			271			268
Prime Mortgage Trust
2.906% due 02/25/2034 •			4			4
Residential Funding Mortgage Securities, Inc. Trust
4.451% due 09/25/2035 ^~			580			483
Structured Adjustable Rate Mortgage Loan Trust
3.557% due 01/25/2035 ^•			173			163
4.209% due 08/25/2035 ~			155			154
4.232% due 02/25/2034 ~			151			152
4.406% due 08/25/2034 ~			198			199
Structured Asset Mortgage Investments Trust
2.786% due 02/25/2036 ^•			113			107
3.130% due 09/19/2032 •			2			2
WaMu Mortgage Pass-Through Certificates Trust
2.776% due 12/25/2045 •			85			84
3.186% due 01/25/2045 •			536			531
3.557% due 06/25/2042 •			15			14
Wells Fargo Commercial Mortgage Trust
1.783% due 10/15/2045 ~(a)			3,697			201
Wells Fargo Mortgage-Backed Securities Trust
3.994% due 03/25/2035 ~			96			98
4.607% due 09/25/2034 ~			2,137			2,194
4.607% due 03/25/2036 ~			143			145

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 15

Schedule of Investments PIMCO Low Duration Portfolio (Cont.)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
4.869% due 01/25/2035 ~	$		135	$		138
4.973% due 12/25/2034 ~			109			112
Total Non-Agency Mortgage-Backed Securities (Cost $49,351)						46,604
ASSET-BACKED SECURITIES 10.2%
ACE Securities Corp. Home Equity Loan Trust
2.566% due 10/25/2036 •			64			33
3.406% due 12/25/2034 •			1,307			1,275
Ameriquest Mortgage Securities, Inc. Asset-Backed Pass-Through Certificates
3.006% due 09/25/2035 •			7,100			7,126
Asset-Backed Funding Certificates Trust
3.181% due 06/25/2035 •			4,134			4,146
Asset-Backed Securities Corp. Home Equity Loan Trust
4.105% due 03/15/2032 •			75			76
Bear Stearns Asset-Backed Securities Trust
3.506% due 10/25/2037 •			1,256			1,260
Black Diamond CLO Ltd.
3.499% due 02/06/2026 •			2,783			2,779
CARDS Trust
2.805% due 04/17/2023 •			10,000			10,015
3.047% due 04/17/2023			10,000			10,005
Chesapeake Funding LLC
2.825% due 08/15/2030 •			8,000			7,982
3.230% due 08/15/2030			6,000			6,029
Citigroup Mortgage Loan Trust, Inc.
3.226% due 09/25/2035 ^•			1,587			1,592
Countrywide Asset-Backed Certificates
3.206% due 12/25/2033 •			1,030			1,016
3.306% due 03/25/2033 •			628			622
Credit Suisse First Boston Mortgage Securities Corp.
3.126% due 01/25/2032 •			6			6
Crown Point CLO Ltd.
3.389% due 07/17/2028 •			3,000			2,990
Discover Card Execution Note Trust
1.900% due 10/17/2022			5,100			5,031
Edsouth Indenture LLC
3.656% due 09/25/2040 •			822			827
Enterprise Fleet Financing LLC
3.380% due 05/20/2024			5,000			5,022
Evans Grove CLO Ltd.
3.627% due 05/28/2028 •			5,000			4,965
Exeter Automobile Receivables Trust
2.900% due 01/18/2022			3,469			3,465
Figueroa CLO Ltd.
3.336% due 01/15/2027 •			5,000			4,997
First Franklin Mortgage Loan Trust
3.226% due 05/25/2035 •			42			42
Ford Credit Auto Owner Trust
2.440% due 01/15/2027			4,000			3,968
Ford Credit Floorplan Master Owner Trust
2.735% due 05/15/2023 •			5,100			5,077
Gallatin CLO Ltd.
3.485% due 01/21/2028 •			5,000			4,977
GE-WMC Mortgage Securities Trust
2.546% due 08/25/2036 •			9			6
GM Financial Consumer Automobile
1.510% due 03/16/2020			183			183
GMF Floorplan Owner Revolving Trust
2.835% due 03/15/2023 •			3,900			3,905
Gracechurch Card Funding PLC
2.855% due 07/15/2022 •			5,000			5,009
GSAMP Trust
2.896% due 01/25/2036 •			1,067			1,058
Hertz Fleet Lease Funding LP
3.230% due 05/10/2032			5,000			5,018
JPMorgan Mortgage Acquisition Corp.
2.686% due 02/25/2036 •			22			22
2.736% due 05/25/2035 •			37			37
Massachusetts Educational Financing Authority
3.440% due 04/25/2038 •			265			266

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
MMAF Equipment Finance LLC
2.920% due 07/12/2021	$		4,960	$		4,956
NovaStar Mortgage Funding Trust
2.826% due 05/25/2036 •			4,220			4,158
NYMT Residential LLC
4.000% due 03/25/2021 Ø			220			220
Octagon Investment Partners Ltd.
3.536% due 04/15/2026 •			2,379			2,379
OSCAR U.S. Funding Trust LLC
2.437% due 08/12/2019			183			183
3.150% due 08/10/2021			5,000			4,999
Palmer Square CLO Ltd.
3.466% due 08/15/2026 •			4,765			4,736
Palmer Square Loan Funding Ltd.
3.086% due 07/15/2026 •			4,601			4,558
Panhandle-Plains Higher Education Authority, Inc.
3.927% due 10/01/2035 •			800			805
Penarth Master Issuer PLC
2.835% due 03/18/2022 •			5,100			5,093
RAAC Trust
2.986% due 03/25/2037 •			194			194
Renaissance Home Equity Loan Trust
3.506% due 12/25/2033 •			2,456			2,432
Residential Asset Securities Corp. Trust
3.391% due 01/25/2034 •			2,670			2,653
SLC Student Loan Trust
2.888% due 09/15/2026 •			2,149			2,146
2.898% due 03/15/2027 •			4,095			4,078
SLM Student Loan Trust
2.580% due 10/25/2024 •			1,255			1,254
2.640% due 10/25/2029 •			4,395			4,375
2.990% due 04/25/2024 •			2,147			2,151
3.040% due 10/26/2026 •			535			535
SoFi Consumer Loan Program LLC
2.200% due 11/25/2026			1,574			1,566
3.050% due 12/26/2025			1,814			1,811
Sound Point CLO Ltd.
3.359% due 01/20/2028 •			5,000			4,960
Structured Asset Investment Loan Trust
3.211% due 03/25/2034 •			469			463
3.481% due 10/25/2033 •			217			217
TICP CLO Ltd.
3.309% due 04/20/2028 •			6,100			6,039
Upstart Securitization Trust
3.015% due 08/20/2025			1,667			1,666
Wellfleet CLO Ltd.
3.609% due 10/20/2027 •			6,000			5,999
Wells Fargo Home Equity Asset-Backed Securities Trust
2.766% due 05/25/2036 •			364			365
Westlake Automobile Receivables Trust
2.840% due 09/15/2021			5,409			5,401
WhiteHorse Ltd.
3.379% due 04/17/2027 •			5,000			4,975
Zais CLO Ltd.
3.586% due 04/15/2028 •			5,000			4,990
Total Asset-Backed Securities (Cost $198,372)						201,184
SOVEREIGN ISSUES 4.9%
Argentina Government International Bond
4.000% due 03/06/2020	ARS		76,500			2,569
6.250% due 04/22/2019	$		5,000			5,052
59.257% (ARLLMONP) due 06/21/2020 ~(a)	ARS		1,530			45
Brazil Letras do Tesouro Nacional
0.000% due 04/01/2019 (d)	BRL		259,800			66,039
Japan Finance Organization for Municipalities
2.000% due 09/08/2020	$		8,400			8,264
Provincia de Buenos Aires
53.677% due 04/12/2025 •(a)	ARS		2,763			63
Spain Government International Bond
4.000% due 04/30/2020	EUR		11,600			14,072
Total Sovereign Issues (Cost $99,677)						96,104

		SHARES			MARKET VALUE (000S)
CONVERTIBLE PREFERRED SECURITIES 0.0%
INDUSTRIALS 0.0%
Motors Liquidation Co. «(b)			4,000	$		0
Total Convertible Preferred Securities (Cost $0)						0
		PRINCIPAL AMOUNT (000s)
SHORT-TERM INSTRUMENTS 2.7%
CERTIFICATES OF DEPOSIT 1.1%
Barclays Bank PLC
2.890% (US0003M + 0.400%) due 10/25/2019 ~	$		10,000			10,006
Lloyds Bank Corporate Markets PLC
2.908% (US0003M + 0.500%) due 10/26/2020 ~			5,000			5,001
3.324% (US0003M + 0.500%) due 09/24/2020 ~			6,000			6,002
						21,009
COMMERCIAL PAPER 0.3%
Campbell Soup Co.
2.900% due 01/14/2019			5,000			4,995
REPURCHASE AGREEMENTS (g) 0.1%
						1,122
SHORT-TERM NOTES 0.3%
Pepper Residential Securities Trust
2.955% due 03/16/2019 •			5,100			5,094
ARGENTINA TREASURY BILLS 0.3%
1.487% due 02/22/2019 - 05/31/2019 (c)(d)	ARS		209,198			5,916
GREECE TREASURY BILLS 0.4%
0.996% due 03/15/2019 (c)(d)	EUR		7,600			8,695
U.S. TREASURY BILLS 0.2%
2.361% due 01/31/2019 -03/14/2019 (c)(d)(j)(l)	$		4,995			4,978
Total Short-Term Instruments (Cost $52,416)						51,809
Total Investments in Securities (Cost $2,363,058)						2,365,404
		SHARES
INVESTMENTS IN AFFILIATES 13.7%
SHORT-TERM INSTRUMENTS 13.7%
CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 13.7%
PIMCO Short Asset Portfolio			20,738,504			205,767
PIMCO Short-Term Floating NAV Portfolio III			6,498,953			64,236
Total Short-Term Instruments (Cost $271,724)						270,003
Total Investments in Affiliates (Cost $271,724)						270,003
Total Investments 134.2% (Cost $2,634,782)				$		2,635,407
Financial Derivative Instruments (i)(k) 0.1% (Cost or Premiums, net $3,368)						1,282
Other Assets and Liabilities, net (34.3)%						(673,281	)
Net Assets 100.0%				$		1,963,408

16 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

NOTES TO SCHEDULE OF INVESTMENTS:

* A zero balance may reflect actual amounts rounding to less than one thousand.

^ Security is in default.

« Security valued using significant unobservable inputs (Level 3).

~ Variable or Floating rate security. Rate shown is the rate in effect as of period end. Certain variable rate securities are not based on a published reference rate and spread, rather are determined by the issuer or agent and are based on current market conditions. Reference rate is as of reset date, which may vary by security. These securities may not indicate a reference rate and/or spread in their description.

• Rate shown is the rate in effect as of period end. The rate may be based on a fixed rate, a capped rate or a floor rate and may convert to a variable or floating rate in the future. These securities do not indicate a reference rate and spread in their description.

Ø Coupon represents a rate which changes periodically based on a predetermined schedule or event. Rate shown is the rate in effect as of period end.

(a) Interest only security.

(b) Security did not produce income within the last twelve months.

(c) Coupon represents a weighted average yield to maturity.

(d) Zero coupon security.

(e) Principal amount of security is adjusted for inflation.

(f) Perpetual maturity; date shown, if applicable, represents next contractual call date.

BORROWINGS AND OTHER FINANCING TRANSACTIONS

(g)  REPURCHASE AGREEMENTS:

Counterparty	Lending Rate			Settlement Date		Maturity Date		Principal Amount		Collateralized By	Collateral (Received)			Repurchase Agreements, at Value		Repurchase Agreement Proceeds to  be Received(1)
FICC		2.000	%		12/31/2018		01/02/2019	$	1,122	U.S. Treasury Notes 2.875% due 09/30/2023	$	(1,148	)	$	1,122	$	1,122
Total Repurchase Agreements											$	(1,148	)	$	1,122	$	1,122

REVERSE REPURCHASE AGREEMENTS:

Counterparty	Borrowing Rate(2)			Settlement Date		Maturity Date		Amount Borrowed(2)			Payable for Reverse Repurchase Agreements
BSN		2.710	%		12/13/2018		01/14/2019	$	(157,454	)	$	(157,691	)
Total Reverse Repurchase Agreements											$	(157,691	)

SHORT SALES:

Description	Coupon			Maturity Date		Principal Amount		Proceeds			Payable for Short Sales
U.S. Government Agencies (4.2)%
Fannie Mae, TBA		6.000	%		01/01/2049	$	1,500	$	(1,613	)	$	(1,611	)
Freddie Mac, TBA		5.000			01/01/2049		250		(262	)		(262	)
Ginnie Mae, TBA		5.000			01/01/2049		78,000		(81,032	)		(81,158	)
Total Short Sales (4.2)%								$	(82,907	)	$	(83,031	)

BORROWINGS AND OTHER FINANCING TRANSACTIONS SUMMARY

The following is a summary by counterparty of the market value of Borrowings and Other Financing Transactions and collateral pledged/(received) as of December 31, 2018:

Counterparty	Repurchase Agreement Proceeds to  be Received(1)		Payable for Reverse Repurchase Agreements			Payable for Sale-Buyback Transactions		Total Borrowings and Other Financing Transactions			Collateral Pledged/(Received)			Net Exposure(3)
Global/Master Repurchase Agreement
BSN	$	0	$	(157,691	)	$	0	$	(157,691	)	$	162,441		$	4,750
FICC		1,122		0			0		1,122			(1,148	)		(26	)
Total Borrowings and Other Financing Transactions	$	1,122	$	(157,691	)	$	0

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 17

Schedule of Investments PIMCO Low Duration Portfolio (Cont.)

CERTAIN TRANSFERS ACCOUNTED FOR AS SECURED BORROWINGS

Remaining Contractual Maturity of the Agreements

	Overnight and Continuous		Up to 30 days			31-90 days		Greater Than 90 days		Total
Reverse Repurchase Agreements
U.S. Government Agencies	$	0	$	(157,691	)	$	0	$	0	$	(157,691	)
Total Borrowings	$	0	$	(157,691	)	$	0	$	0	$	(157,691	)
Payable for reverse repurchase agreements										$	(157,691	)

(h) Securities with an aggregate market value of $163,414 have been pledged as collateral under the terms of the above master agreements as of December 31, 2018.

⁽¹⁾ Includes accrued interest.

⁽²⁾ The average amount of borrowings outstanding during the period ended December 31, 2018 was $(62,890) at a weighted average interest rate of 2.371%. Average borrowings may include sale-buyback transactions and reverse repurchase agreements, if held during the period.

⁽³⁾ Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from borrowings and other financing transactions can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information regarding master netting arrangements.

(i)  FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED

PURCHASED OPTIONS:

OPTIONS ON EXCHANGE-TRADED FUTURES CONTRACTS

Description	Strike Price		Expiration Date		# of Contracts		Notional Amount		Cost		Market Value
Call - CBOT U.S. Treasury 10-Year Note March 2019 Futures	$	131.000		02/22/2019		2,149	$	2,149	$	18	$	30
Put - CBOT U.S. Treasury 2-Year Note March 2019 Futures		103.500		02/22/2019		1,281		2,562		11		2
Put - CBOT U.S. Treasury 2-Year Note March 2019 Futures		103.750		02/22/2019		2,035		4,070		17		2
Put - CBOT U.S. Treasury 5-Year Note March 2019 Futures		103.750		02/22/2019		1,015		1,015		9		1
Total Purchased Options									$	55	$	35

FUTURES CONTRACTS:

LONG FUTURES CONTRACTS

Description	Expiration Month		# of Contracts		Notional Amount		Unrealized Appreciation/ (Depreciation)			Variation Margin
										Asset		Liability
3-Month Euribor June Futures		06/2019		2,012	$	577,983	$	35		$	0	$	(29	)
90-Day Eurodollar March Futures		03/2019		1,340		325,922		(608	)		0		0
90-Day Eurodollar September Futures		09/2019		603		146,740		419			15		0
Euro-Bund 10-Year Bond March Futures		03/2019		726		136,035		1,555			0		(158	)
U.S. Treasury 2-Year Note March Futures		03/2019		5,567		1,181,944		7,991			783		0
U.S. Treasury 5-Year Note March Futures		03/2019		486		55,738		917			148		0
							$	10,309		$	946	$	(187	)

SHORT FUTURES CONTRACTS

Description	Expiration Month		# of Contracts		Notional Amount			Unrealized Appreciation/ (Depreciation)			Variation Margin
											Asset		Liability
90-Day Eurodollar December Futures		12/2020		801	$	(195,304	)	$	(908	)	$	0	$	(70	)
90-Day Eurodollar June Futures		06/2020		870		(212,073	)		(783	)		2		(40	)
90-Day Eurodollar March Futures		03/2020		203		(49,453	)		(190	)		0		(10	)
90-Day Eurodollar September Futures		09/2020		1,101		(268,493	)		(1,556	)		0		(81	)
Euro-BTP Italy Government Bond March Futures		03/2019		1,235		(174,322	)		(5,027	)		0		(89	)
Euro-OAT France Government 10-Year Bond March Futures		03/2019		597		(103,149	)		(216	)		144		0
U.S. Treasury 10-Year Note March Futures		03/2019		2,794		(340,912	)		(7,825	)		0		(1,070	)
U.S. Treasury 30-Year Bond March Futures		03/2019		47		(6,862	)		(311	)		0		(22	)
United Kingdom 90-Day LIBOR Sterling Interest Rate June Futures		06/2020		870		(136,991	)		(167	)		14		(35	)
United Kingdom 90-Day LIBOR Sterling Interest Rate March Futures		03/2020		870		(137,039	)		(160	)		14		(28	)
United Kingdom Long Gilt March Futures		03/2019		88		(13,815	)		(115	)		14		(45	)
								$	(17,258	)	$	188	$	(1,490	)
Total Futures Contracts								$	(6,949	)	$	1,134	$	(1,677	)

18 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

SWAP AGREEMENTS:

CREDIT DEFAULT SWAPS ON CORPORATE ISSUES - SELL PROTECTION⁽¹⁾

Reference Entity	Fixed Receive Rate			Payment Frequency		Maturity Date		Implied Credit Spread at December 31, 2018(2)			Notional Amount(3)			Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Market Value(4)			Variation Margin
																							Asset		Liability
Berkshire Hathaway, Inc.		1.000	%		Quarterly		12/20/2023		0.865	%		$	1,000	$	23		$	(16	)	$	7		$	1	$	0
Deutsche Bank AG		1.000			Quarterly		06/20/2019		1.146			EUR	4,000		(12	)		10			(2	)		1		0
General Electric Co.		1.000			Quarterly		12/20/2020		1.653			$	2,000		(59	)		35			(24	)		0		0
MetLife, Inc.		1.000			Quarterly		03/20/2019		0.128				1,700		17			(13	)		4			0		0
														$	(31	)	$	16		$	(15	)	$	2	$	0

INTEREST RATE SWAPS

Pay/Receive Floating Rate	Floating Rate Index	Fixed Rate			Payment Frequency		Maturity Date		Notional Amount			Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Market Value			Variation Margin
																					Asset		Liability
Receive	3-Month  USD-LIBOR		2.500	%		Semi-Annual		12/20/2027		$	33,500	$	1,064		$	(536	)	$	528		$	0	$	(122	)
Receive	3-Month  USD-LIBOR		2.250			Semi-Annual		06/20/2028			24,100		1,289			(377	)		912			0		(90	)
Receive(5)	6-Month  GBP-LIBOR		1.500			Semi-Annual		03/20/2029		GBP	30,800		530			(737	)		(207	)		0		(148	)
Pay(5)	6-Month  JPY-LIBOR		0.100			Semi-Annual		03/20/2024		JPY	10,270,000		321			16			337			17		0
Receive	6-Month  JPY-LIBOR		0.300			Semi-Annual		03/18/2026			9,450,000		(114	)		(1,336	)		(1,450	)		0		(12	)
Pay	6-Month  JPY-LIBOR		0.380			Semi-Annual		06/18/2028			1,640,000		201			117			318			5		0
Receive	6-Month  JPY-LIBOR		0.750			Semi-Annual		03/20/2038			3,120,000		69			(1,307	)		(1,238	)		0		(10	)
Receive	6-Month  JPY-LIBOR		1.000			Semi-Annual		03/21/2048			340,000		(11	)		(237	)		(248	)		2		0
Pay	28-Day  MXN-TIIE		8.700			Lunar		11/02/2020		MXN	244,900		(14	)		32			18			20		0
Pay	28-Day  MXN-TIIE		8.735			Lunar		11/06/2020			222,200		0			27			27			19		0
Pay	28-Day  MXN-TIIE		8.748			Lunar		11/06/2020			988,300		0			132			132			83		0
Receive	28-Day  MXN-TIIE		8.720			Lunar		11/13/2020			432,700		49			(96	)		(47	)		0		(36	)
Receive	28-Day  MXN-TIIE		8.683			Lunar		11/27/2020			453,700		0			(29	)		(29	)		0		(38	)
Receive	28-Day  MXN-TIIE		8.855			Lunar		12/03/2020			524,200		0			(127	)		(127	)		0		(45	)
												$	3,384		$	(4,458	)	$	(1,074	)	$	146	$	(501	)
Total Swap Agreements												$	3,353		$	(4,442	)	$	(1,089	)	$	148	$	(501	)

FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED SUMMARY

The following is a summary of the market value and variation margin of Exchange-Traded or Centrally Cleared Financial Derivative Instruments as of December 31, 2018:

	Financial Derivative Assets								Financial Derivative Liabilities
	Market Value		Variation Margin Asset				Total		Market Value		Variation Margin Liability				Total
	Purchased Options		Futures		Swap Agreements				Written Options		Futures		Swap Agreements
Total Exchange-Traded or Centrally Cleared	$	35	$	1,134	$	148	$	1,317	$	0	$	(1,677)	$	(501)	$	(2,178)

(j) Securities with an aggregate market value of $1,391 and cash of $15,570 have been pledged as collateral for exchange-traded and centrally cleared financial derivative instruments as of December 31, 2018. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information regarding master netting arrangements.

⁽¹⁾ If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽²⁾ Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on issues as of period end serve as indicators of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

⁽³⁾ The maximum potential amount the Portfolio could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

⁽⁴⁾ The prices and resulting values for credit default swap agreements serve as indicators of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced indices’ credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

⁽⁵⁾ This instrument has a forward starting effective date. See Note 2, Securities Transactions and Investment Income, in the Notes to Financial Statements for further information.

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 19

Schedule of Investments PIMCO Low Duration Portfolio (Cont.)

(k)  FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER

FORWARD FOREIGN CURRENCY CONTRACTS:

Counterparty	Settlement Month		Currency to be Delivered		Currency to be Received		Unrealized Appreciation/ (Depreciation)
							Asset		Liability
AZD		03/2019	$	16,325	SGD	22,260	$	35	$	0
BOA		01/2019	ARS	24,981	$	614		0		(38	)
		01/2019	BRL	210,200		56,083		1,849		0
		01/2019	CAD	14,651		11,003		268		0
		01/2019	MXN	177,234		8,750		0		(259	)
		01/2019	$	54,248	BRL	210,200		0		(13	)
		02/2019	GBP	18,259	$	23,263		30		(89	)
BPS		01/2019	JPY	3,570,000		31,571		0		(1,022	)
		01/2019	MXN	167,066		8,197		0		(296	)
		01/2019	$	11,819	CAD	15,825		0		(224	)
		02/2019		12,935	JPY	1,452,100		355		0
		03/2019		5,315	SGD	7,259		21		0
		03/2019		11,958	TRY	68,407		481		0
BRC		01/2019	MXN	29,620	$	1,472		0		(34	)
		02/2019	EUR	1,904		2,173		0		(16	)
		02/2019	GBP	18,763		24,050		84		0
		02/2019	JPY	4,563,600		40,620		0		(1,145	)
		02/2019	$	1,010	EUR	882		4		0
		02/2019		1,571	GBP	1,239		12		0
CBK		01/2019	AUD	16,987	$	12,444		477		0
		01/2019	MXN	74,436		3,635		0		(149	)
		01/2019	$	147	MXN	2,984		5		0
		02/2019	EUR	1,512	$	1,729		0		(10	)
		02/2019	GBP	4,631		5,825		0		(91	)
		02/2019	JPY	18,410,000		164,426		0		(4,020	)
		02/2019	$	17,784	EUR	15,594		147		0
		02/2019		58,395	JPY	6,606,800		2,070		0
GLM		01/2019	ARS	105,813	$	2,700		0		(67	)
		01/2019	BRL	34,800		8,981		2		0
		01/2019	MXN	585,233		28,403		0		(1,347	)
		01/2019	$	9,239	BRL	34,800		0		(260	)
		02/2019	EUR	2,112	$	2,421		0		(7	)
		02/2019	$	64,149	GBP	50,141		140		(243	)
		02/2019		114,323	JPY	12,910,000		3,800		0
HUS		01/2019	MXN	848,033	$	42,185		0		(827	)
		01/2019	$	1,023	ARS	39,903		17		0
		01/2019		31,540	JPY	3,570,000		1,053		0
		01/2019		26,911	MXN	554,316		1,212		0
		02/2019	EUR	1,823	$	2,080		0		(16	)
		02/2019	JPY	4,854,800		43,157		0		(1,274	)
		02/2019	$	15,835	EUR	13,894		141		0
		02/2019		48,639	JPY	5,500,000		1,685		0
		03/2019	EUR	4,200	$	5,365		524		0
		03/2019	SGD	10,601		7,739		0		(53	)
		03/2019	THB	10,231		311		0		(4	)
IND		01/2019	$	9,852	MXN	200,601		346		0
		02/2019		23,192	JPY	2,620,000		765		0
JPM		01/2019	ARS	14,922	$	375		0		(14	)
		01/2019	BRL	255,900		67,474		1,448		0
		01/2019	$	67,941	BRL	255,900		0		(1,915	)
		01/2019		3,225	MXN	65,643		112		0
		02/2019	EUR	684	$	784		0		(3	)
		02/2019	GBP	1,752		2,218		0		(19	)
		02/2019	JPY	3,055,400		27,300		0		(662	)
		02/2019	TRY	96,120		16,052		0		(1,644	)
		02/2019	$	5,775	JPY	647,400		150		0
		02/2019		757	TRY	4,247		25		0
		03/2019	SGD	13,435	$	9,821		0		(54	)
		04/2019	BRL	259,800		68,536		1,944		0
MSB		01/2019		31,900		8,233		2		0
		01/2019	$	8,174	BRL	31,900		56		0
MYI		01/2019	JPY	2,300,000	$	20,643		0		(367	)
		02/2019		4,664,300	$	41,985		0		(682	)

20 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

Counterparty	Settlement Month		Currency to be Delivered		Currency to be Received		Unrealized Appreciation/ (Depreciation)
							Asset		Liability
RBC		02/2019	$	10,846	GBP	8,391	$	0	$	(128	)
RYL		01/2019		20,307	JPY	2,300,000		703		0
SCX		01/2019		24,423	GBP	19,102		0		(66	)
		01/2019		3,634	TRY	24,071		881		0
		02/2019		123	RUB	8,141		0		(7	)
SSB		01/2019		272	MXN	5,542		10		0
		02/2019	EUR	55,514	$	62,913		0		(921	)
		03/2019	$	124	MYR	520		2		0
UAG		01/2019		36,637	MXN	697,392		0		(1,266	)
		02/2019	GBP	50,516	$	65,134		611		0
Total Forward Foreign Currency Contracts							$	21,467	$	(19,252	)

PURCHASED OPTIONS:

OPTIONS ON SECURITIES

Counterparty	Description	Strike Price		Expiration Date		Notional Amount			Cost		Market Value
GSC	Put - OTC Fannie Mae, TBA 4.000% due 01/01/2049	$	78.000		01/07/2019		$	20,000	$	2	$	0
JPM	Put - OTC Fannie Mae, TBA 3.000% due 01/01/2049		68.000		01/07/2019			2,000		0		0
	Put - OTC Fannie Mae, TBA 4.500% due 01/01/2049		71.000		01/07/2019			1,000		0		0
Total Purchased Options									$	2	$	0

WRITTEN OPTIONS:

CREDIT DEFAULT SWAPTIONS ON CREDIT INDICES

Counterparty	Description	Buy/Sell Protection		Exercise Rate			Expiration Date		Notional Amount		Premiums (Received)			Market Value
BPS	Put - OTC CDX.IG-31 5-Year Index		Sell		1.000	%		02/20/2019	$	11,600	$	(15	)	$	(25	)
CBK	Put - OTC CDX.IG-31 5-Year Index		Sell		1.050			03/20/2019		14,600		(23	)		(40	)
GST	Put - OTC CDX.IG-31 5-Year Index		Sell		1.100			02/20/2019		5,400		(4	)		(7	)
Total Written Options											$	(42	)	$	(72	)

FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER SUMMARY

The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral pledged/(received) as of December 31, 2018:

	Financial Derivative Assets								Financial Derivative Liabilities
Counterparty	Forward Foreign Currency Contracts		Purchased Options		Swap Agreements		Total Over the Counter		Forward Foreign Currency Contracts			Written Options			Swap Agreements		Total Over the Counter			Net Market Value of OTC Derivatives			Collateral Pledged/ (Received)			Net Exposure(1)
AZD	$	35	$	0	$	0	$	35	$	0		$	0		$	0	$	0		$	35		$	0		$	35
BOA		2,147		0		0		2,147		(399	)		0			0		(399	)		1,748			(1,870	)		(122	)
BPS		857		0		0		857		(1,542	)		(25	)		0		(1,567	)		(710	)		360			(350	)
BRC		100		0		0		100		(1,195	)		0			0		(1,195	)		(1,095	)		462			(633	)
CBK		2,699		0		0		2,699		(4,270	)		(40	)		0		(4,310	)		(1,611	)		824			(787	)
DUB		0		0		0		0		0			0			0		0			0			(40	)		(40	)
GLM		3,942		0		0		3,942		(1,924	)		0			0		(1,924	)		2,018			(990	)		1,028
GST		0		0		0		0		0			(7	)		0		(7	)		(7	)		0			(7	)
HUS		4,632		0		0		4,632		(2,174	)		0			0		(2,174	)		2,458			(2,250	)		208
IND		1,111		0		0		1,111		0			0			0		0			1,111			(860	)		251
JPM		3,679		0		0		3,679		(4,311	)		0			0		(4,311	)		(632	)		266			(366	)
MSB		58		0		0		58		0			0			0		0			58			0			58
MYI		0		0		0		0		(1,049	)		0			0		(1,049	)		(1,049	)		319			(730	)
RBC		0		0		0		0		(128	)		0			0		(128	)		(128	)		277			149
RYL		703		0		0		703		0			0			0		0			703			(820	)		(117	)
SCX		881		0		0		881		(73	)		0			0		(73	)		808			(660	)		148
SSB		12		0		0		12		(921	)		0			0		(921	)		(909	)		851			(58	)
UAG		611		0		0		611		(1,266	)		0			0		(1,266	)		(655	)		225			(430	)
Total Over the Counter	$	21,467	$	0	$	0	$	21,467	$	(19,252	)	$	(72	)	$	0	$	(19,324	)

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 21

Schedule of Investments PIMCO Low Duration Portfolio (Cont.)

(l) Securities with an aggregate market value of $3,584 have been pledged as collateral for financial derivative instruments as governed by International Swaps and Derivatives Association, Inc. master agreements as of December 31, 2018.

⁽¹⁾ Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information regarding master netting arrangements.

FAIR VALUE OF FINANCIAL DERIVATIVE INSTRUMENTS

The following is a summary of the fair valuation of the Portfolio’s derivative instruments categorized by risk exposure. See Note 7, Principal Risks, in the Notes to Financial Statements on risks of the Portfolio.

Fair Values of Financial Derivative Instruments on the Statement of Assets and Liabilities as of December 31, 2018:

	Derivatives not accounted for as hedging instruments
	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Exchange Contracts		Interest Rate Contracts		Total
Financial Derivative Instruments - Assets
Exchange-traded or centrally cleared
Purchased Options	$	0	$	0	$	0	$	0	$	35	$	35
Futures		0		0		0		0		1,134		1,134
Swap Agreements		0		2		0		0		146		148
	$	0	$	2	$	0	$	0	$	1,315	$	1,317
Over the counter
Forward Foreign Currency Contracts	$	0	$	0	$	0	$	21,467	$	0	$	21,467
	$	0	$	2	$	0	$	21,467	$	1,315	$	22,784
Financial Derivative Instruments - Liabilities
Exchange-traded or centrally cleared
Futures	$	0	$	0	$	0	$	0	$	1,677	$	1,677
Swap Agreements		0		0		0		0		501		501
	$	0	$	0	$	0	$	0	$	2,178	$	2,178
Over the counter
Forward Foreign Currency Contracts	$	0	$	0	$	0	$	19,252	$	0	$	19,252
Written Options		0		72		0		0		0		72
	$	0	$	72	$	0	$	19,252	$	0	$	19,324
	$	0	$	72	$	0	$	19,252	$	2,178	$	21,502

The effect of Financial Derivative Instruments on the Statement of Operations for the period ended December 31, 2018:

	Derivatives not accounted for as hedging instruments
	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Exchange Contracts			Interest Rate Contracts			Total
Net Realized Gain (Loss) on Financial Derivative Instruments
Exchange-traded or centrally cleared
Purchased Options	$	0	$	0	$	0	$	0		$	72		$	72
Written Options		0		0		0		0			97			97
Futures		0		0		0		0			(10,441	)		(10,441	)
Swap Agreements		0		231		0		0			7,319			7,550
	$	0	$	231	$	0	$	0		$	(2,953	)	$	(2,722	)
Over the counter
Forward Foreign Currency Contracts	$	0	$	0	$	0	$	(26,656	)	$	0		$	(26,656	)
Purchased Options		0		0		0		(6	)		(26	)		(32	)
Written Options		0		75		0		3,316			151			3,542
Swap Agreements		0		25		0		0			0			25
	$	0	$	100	$	0	$	(23,346	)	$	125		$	(23,121	)
	$	0	$	331	$	0	$	(23,346	)	$	(2,828	)	$	(25,843	)

22 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

	Derivatives not accounted for as hedging instruments
	Commodity Contracts		Credit Contracts			Equity Contracts		Foreign Exchange Contracts			Interest Rate Contracts			Total
Net Change in Unrealized Appreciation (Depreciation) on Financial Derivative Instruments
Exchange-traded or centrally cleared
Purchased Options	$	0	$	0		$	0	$	0		$	(65	)	$	(65	)
Written Options		0		0			0		0			(99	)		(99	)
Futures		0		0			0		0			(5,571	)		(5,571	)
Swap Agreements		0		(12	)		0		0			(6,344	)		(6,356	)
	$	0	$	(12	)	$	0	$	0		$	(12,079	)	$	(12,091	)
Over the counter
Forward Foreign Currency Contracts	$	0	$	0		$	0	$	42,412		$	0		$	42,412
Purchased Options		0		0			0		0			(1	)		(1	)
Written Options		0		(29	)		0		(111	)		0			(140	)
Swap Agreements		0		(19	)		0		0			0			(19	)
	$	0	$	(48	)	$	0	$	42,301		$	(1	)	$	42,252
	$	0	$	(60	)	$	0	$	42,301		$	(12,080	)	$	30,161

FAIR VALUE MEASUREMENTS

The following is a summary of the fair valuations according to the inputs used as of December 31, 2018 in valuing the Portfolio’s assets and liabilities:

Category and Subcategory	Level 1		Level 2		Level 3		Fair Value at 12/31/2018
Investments in Securities, at Value
Loan Participations and Assignments	$	0	$	0	$	11,956	$	11,956
Corporate Bonds & Notes
Banking & Finance		0		600,896		0		600,896
Industrials		0		244,456		0		244,456
Utilities		0		47,554		0		47,554
U.S. Government Agencies		0		1,020,700		0		1,020,700
U.S. Treasury Obligations		0		44,141		0		44,141
Non-Agency Mortgage-Backed Securities		0		46,604		0		46,604
Asset-Backed Securities		0		201,184		0		201,184
Sovereign Issues		0		96,104		0		96,104
Short-Term Instruments
Certificates of Deposit		0		21,009		0		21,009
Commercial Paper		0		4,995		0		4,995
Repurchase Agreements		0		1,122		0		1,122
Short-Term Notes		0		5,094		0		5,094
Argentina Treasury Bills		0		5,916		0		5,916
Greece Treasury Bills		0		8,695		0		8,695
U.S. Treasury Bills		0		4,978		0		4,978
	$	0	$	2,353,448	$	11,956	$	2,365,404
Investments in Affiliates, at Value
Short-Term Instruments
Central Funds Used for Cash Management Purposes	$	270,003	$	0	$	0	$	270,003
Total Investments	$	270,003	$	2,353,448	$	11,956	$	2,635,407

Category and Subcategory	Level 1			Level 2			Level 3		Fair Value at 12/31/2018
Short Sales, at Value - Liabilities
U.S. Government Agencies	$	0		$	(83,031	)	$	0	$	(83,031	)
Financial Derivative Instruments - Assets
Exchange-traded or centrally cleared		1,134			183			0		1,317
Over the counter		0			21,467			0		21,467
	$	1,134		$	21,650		$	0	$	22,784
Financial Derivative Instruments - Liabilities
Exchange-traded or centrally cleared		(1,677	)		(501	)		0		(2,178	)
Over the counter		0			(19,324	)		0		(19,324	)
	$	(1,677	)	$	(19,825	)	$	0	$	(21,502	)
Total Financial Derivative Instruments	$	(543	)	$	1,825		$	0	$	1,282
Totals	$	269,460		$	2,272,242		$	11,956	$	2,553,658

There were no significant transfers into or out of Level 3 during the period ended December 31, 2018.

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 23

Notes to Financial Statements

1. ORGANIZATION

PIMCO Variable Insurance Trust (the “Trust”) is a Delaware statutory trust established under a trust instrument dated October 3, 1997. The Trust is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Trust is designed to be used as an investment vehicle by separate accounts of insurance companies that fund variable annuity contracts and variable life insurance policies and by qualified pension and retirement plans. Information presented in these financial statements pertains to the Institutional Class, Administrative Class and Advisor Class shares of the PIMCO Low Duration Portfolio (the “Portfolio”) offered by the Trust. Pacific Investment Management Company LLC (“PIMCO”) serves as the investment adviser (the “Adviser”) for the Portfolio.

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Portfolio is treated as an investment company under the reporting requirements of U.S. GAAP. The functional and reporting currency for the Portfolio is the U.S. dollar. The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

(a) Securities Transactions and Investment Income  Securities transactions are recorded as of the trade date for financial reporting purposes. Securities purchased or sold on a when-issued or delayed-delivery basis may be settled beyond a standard settlement period for the security after the trade date. Realized gains (losses) from securities sold are recorded on the identified cost basis. Dividend income is recorded on the ex-dividend date, except certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Portfolio is informed of the ex-dividend date. Interest income, adjusted for the accretion of discounts and amortization of premiums, is recorded on the accrual basis from settlement date, with the exception of securities with a forward starting effective date, where interest income is recorded on the accrual basis from effective date. For convertible securities, premiums attributable to the conversion feature are not amortized. Estimated tax liabilities on certain foreign securities are recorded on an accrual basis and are reflected as components of interest income or net change in unrealized appreciation (depreciation) on investments on the Statement of

Operations, as appropriate. Tax liabilities realized as a result of such security sales are reflected as a component of net realized gain (loss) on investments on the Statement of Operations. Paydown gains (losses) on mortgage-related and other asset-backed securities, if any, are recorded as components of interest income on the Statement of Operations. Income or short-term capital gain distributions received from registered investment companies, if any, are recorded as dividend income. Long-term capital gain distributions received from registered investment companies, if any, are recorded as realized gains.

Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivable when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is probable.

(b) Foreign Currency Translation  The market values of foreign securities, currency holdings and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the current exchange rates each business day. Purchases and sales of securities and income and expense items denominated in foreign currencies, if any, are translated into U.S. dollars at the exchange rate in effect on the transaction date. The Portfolio does not separately report the effects of changes in foreign exchange rates from changes in market prices on securities held. Such changes are included in net realized gain (loss) and net change in unrealized appreciation (depreciation) from investments on the Statement of Operations. The Portfolio may invest in foreign currency-denominated securities and may engage in foreign currency transactions either on a spot (cash) basis at the rate prevailing in the currency exchange market at the time or through a forward foreign currency contract. Realized foreign exchange gains (losses) arising from sales of spot foreign currencies, currency gains (losses) realized between the trade and settlement dates on securities transactions and the difference between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid are included in net realized gain (loss) on foreign currency transactions on the Statement of Operations. Net unrealized foreign exchange gains (losses) arising from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period are included in net change in unrealized appreciation (depreciation) on foreign currency assets and liabilities on the Statement of Operations.

(c) Multi-Class Operations  Each class offered by the Trust has equal rights as to assets and voting privileges (except that shareholders of a class have exclusive voting rights regarding any matter relating solely to that class of shares). Income and non-class specific expenses are

24 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

allocated daily to each class on the basis of the relative net assets. Realized and unrealized capital gains (losses) are allocated daily based on the relative net assets of each class of the Portfolio. Class specific expenses, where applicable, currently include supervisory and administrative and distribution and servicing fees. Under certain circumstances, the per share net asset value (“NAV”) of a class of the Portfolio’s shares may be different from the per share NAV of another class of shares as a result of the different daily expense accruals applicable to each class of shares.

(d) Distributions to Shareholders  Distributions from net investment income, if any, are declared daily and distributed to shareholders monthly. Net realized capital gains earned by the Portfolio, if any, will be distributed no less frequently than once each year.

Income distributions and capital gain distributions are determined in accordance with income tax regulations which may differ from U.S. GAAP. Differences between tax regulations and U.S. GAAP may cause timing differences between income and capital gain recognition. Further, the character of investment income and capital gains may be different for certain transactions under the two methods of accounting. As a result, income distributions and capital gain distributions declared during a fiscal period may differ significantly from the net investment income (loss) and realized gains (losses) reported on the Portfolio’s annual financial statements presented under U.S. GAAP.

If the Portfolio estimates that a portion of its distribution may be comprised of amounts from sources other than net investment income in accordance with its policies and good accounting practices, the Portfolio will notify shareholders of the estimated composition of such distribution through a Section 19 Notice. For these purposes, the Portfolio estimates the source or sources from which a distribution is paid, to the close of the period as of which it is paid, in reference to its internal accounting records and related accounting practices. If, based on such accounting records and practices, it is estimated that a particular distribution does not include capital gains or paid-in surplus or other capital sources, a Section 19 Notice generally would not be issued. It is important to note that differences exist between the Portfolio’s daily internal accounting records and practices, the Portfolio’s financial statements presented in accordance with U.S. GAAP, and recordkeeping practices under income tax regulations. For instance, the Portfolio’s internal accounting records and practices may take into account, among other factors, tax-related characteristics of certain sources of distributions that differ from treatment under U.S. GAAP. Examples of such differences may include, among others, the treatment of paydowns on mortgage-backed securities purchased at a discount and periodic payments under interest rate swap contracts. Accordingly, among other consequences, it is possible that the Portfolio may not issue a Section 19 Notice in situations where the Portfolio’s

financial statements prepared later and in accordance with U.S. GAAP and/or the final tax character of those distributions might later report that the sources of those distributions included capital gains and/or a return of capital. Final determination of a distribution’s tax character will be provided to shareholders when such information is available.

Distributions classified as a tax basis return of capital, if any, are reflected on the Statements of Changes in Net Assets and have been recorded to paid in capital on the Statement of Assets and Liabilities. In addition, other amounts have been reclassified between distributable earnings (accumulated loss) and paid in capital on the Statement of Assets and Liabilities to more appropriately conform U.S. GAAP to tax characterizations of distributions.

(e) New Accounting Pronouncements  In August 2016, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”), ASU 2016-15, which amends Accounting Standards Codification (“ASC”) 230 to clarify guidance on the classification of certain cash receipts and cash payments in the Statement of Cash Flows. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In November 2016, the FASB issued ASU 2016-18 which amends ASC 230 to provide guidance on the classification and presentation of changes in restricted cash and restricted cash equivalents on the Statement of Cash Flows. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In March 2017, the FASB issued ASU 2017-08 which provides guidance related to the amortization period for certain purchased callable debt securities held at a premium. The ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In August 2018, the FASB issued ASU 2018-13 which modifies certain disclosure requirements for fair value measurements in ASC 820. The ASU is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. At this time, management has elected to early adopt the amendments that allow for removal of certain disclosure requirements. Management plans to adopt the amendments that require additional fair value measurement disclosures for annual periods beginning after December 15, 2019, and

ANNUAL REPORT DECEMBER 31, 2018 25

Notes to Financial Statements (Cont.)

interim periods within those annual periods. Management is currently evaluating the impact of these changes on the financial statements.

In August 2018, the U.S. Securities and Exchange Commission (“SEC”) adopted amendments to certain rules and forms for the purpose of disclosure update and simplification. The compliance date for these amendments is 30 days after date of publication in the Federal Register, which was on October 4, 2018. Management has adopted these amendments and the changes are incorporated throughout all periods presented in the financial statements.

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

(a) Investment Valuation Policies  The price of the Portfolio’s shares is based on the Portfolio’s NAV. The NAV of the Portfolio, or each of its share classes, as applicable, is determined by dividing the total value of portfolio investments and other assets, less any liabilities attributable to the Portfolio or class, by the total number of shares outstanding of the Portfolio or class.

On each day that the New York Stock Exchange (“NYSE”) is open, Portfolio shares are ordinarily valued as of the close of regular trading (“NYSE Close”). Information that becomes known to the Portfolio or its agents after the time as of which NAV has been calculated on a particular day will not generally be used to retroactively adjust the price of a security or the NAV determined earlier that day. The Portfolio reserves the right to change the time as of which its NAV is calculated if the Portfolio closes earlier, or as permitted by the SEC.

For purposes of calculating a NAV, portfolio securities and other assets for which market quotes are readily available are valued at market value. Market value is generally determined on the basis of official closing prices or the last reported sales prices, or if no sales are reported, based on quotes obtained from established market makers or prices (including evaluated prices) supplied by the Portfolio’s approved pricing services, quotation reporting systems and other third-party sources (together, “Pricing Services”). The Portfolio will normally use pricing data for domestic equity securities received shortly after the NYSE Close and does not normally take into account trading, clearances or settlements that take place after the NYSE Close. If market value pricing is used, a foreign (non-U.S.) equity security traded on a foreign exchange or on more than one exchange is typically valued using pricing information from the exchange considered by the Adviser to be the primary exchange. A foreign (non-U.S.) equity security will be valued as of the close of trading on the foreign exchange, or the NYSE Close, if the NYSE Close occurs before the end of trading on the foreign exchange. Domestic and foreign (non-U.S.) fixed income securities, non-exchange traded derivatives, and equity options are normally valued on the basis of quotes obtained from brokers and

dealers or Pricing Services using data reflecting the earlier closing of the principal markets for those securities. Prices obtained from Pricing Services may be based on, among other things, information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics. Certain fixed income securities purchased on a delayed-delivery basis are marked to market daily until settlement at the forward settlement date. Exchange-traded options, except equity options, futures and options on futures are valued at the settlement price determined by the relevant exchange. Swap agreements are valued on the basis of bid quotes obtained from brokers and dealers or market-based prices supplied by Pricing Services. The Portfolio’s investments in open-end management investment companies, other than exchange-traded funds (“ETFs”), are valued at the NAVs of such investments. Open-end management investment companies may include affiliated funds.

If a foreign (non-U.S.) equity security’s value has materially changed after the close of the security’s primary exchange or principal market but before the NYSE Close, the security may be valued at fair value based on procedures established and approved by the Board of Trustees of the Trust (the “Board”). Foreign (non-U.S.) equity securities that do not trade when the NYSE is open are also valued at fair value. With respect to foreign (non-U.S.) equity securities, the Portfolio may determine the fair value of investments based on information provided by Pricing Services and other third-party vendors, which may recommend fair value or adjustments with reference to other securities, indices or assets. In considering whether fair valuation is required and in determining fair values, the Portfolio may, among other things, consider significant events (which may be considered to include changes in the value of U.S. securities or securities indices) that occur after the close of the relevant market and before the NYSE Close. The Portfolio may utilize modeling tools provided by third-party vendors to determine fair values of foreign (non-U.S.) securities. For these purposes, any movement in the applicable reference index or instrument (“zero trigger”) between the earlier close of the applicable foreign market and the NYSE Close may be deemed to be a significant event, prompting the application of the pricing model (effectively resulting in daily fair valuations). Foreign exchanges may permit trading in foreign (non-U.S.) equity securities on days when the Trust is not open for business, which may result in the Portfolio’s portfolio investments being affected when shareholders are unable to buy or sell shares.

Senior secured floating rate loans for which an active secondary market exists to a reliable degree will be valued at the mean of the last available bid/ask prices in the market for such loans, as provided by a Pricing Service. Senior secured floating rate loans for which an active secondary market does not exist to a reliable degree will be valued at

26 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

fair value, which is intended to approximate market value. In valuing a senior secured floating rate loan at fair value, the factors considered may include, but are not limited to, the following: (a) the creditworthiness of the borrower and any intermediate participants, (b) the terms of the loan, (c) recent prices in the market for similar loans, if any, and (d) recent prices in the market for instruments of similar quality, rate, period until next interest rate reset and maturity.

Investments valued in currencies other than the U.S. dollar are converted to the U.S. dollar using exchange rates obtained from Pricing Services. As a result, the value of such investments and, in turn, the NAV of the Portfolio’s shares may be affected by changes in the value of currencies in relation to the U.S. dollar. The value of investments traded in markets outside the United States or denominated in currencies other than the U.S. dollar may be affected significantly on a day that the Trust is not open for business. As a result, to the extent that the Portfolio holds foreign (non-U.S.) investments, the value of those investments may change at times when shareholders are unable to buy or sell shares and the value of such investments will be reflected in the Portfolio’s next calculated NAV.

Investments for which market quotes or market based valuations are not readily available are valued at fair value as determined in good faith by the Board or persons acting at their direction. The Board has adopted methods for valuing securities and other assets in circumstances where market quotes are not readily available, and has delegated to the Adviser the responsibility for applying the fair valuation methods. In the event that market quotes or market based valuations are not readily available, and the security or asset cannot be valued pursuant to a Board approved valuation method, the value of the security or asset will be determined in good faith by the Board. Market quotes are considered not readily available in circumstances where there is an absence of current or reliable market-based data (e.g., trade information, bid/ask information, indicative market quotations (“Broker Quotes”), Pricing Services’ prices), including where events occur after the close of the relevant market, but prior to the NYSE Close, that materially affect the values of the Portfolio’s securities or assets. In addition, market quotes are considered not readily available when, due to extraordinary circumstances, the exchanges or markets on which the securities trade do not open for trading for the entire day and no other market prices are available. The Board has delegated, to the Adviser, the responsibility for monitoring significant events that may materially affect the values of the Portfolio’s securities or assets and for determining whether the value of the applicable securities or assets should be reevaluated in light of such significant events.

When the Portfolio uses fair valuation to determine the value of a portfolio security or other asset for purposes of calculating its NAV,

such investments will not be priced on the basis of quotes from the primary market in which they are traded, but rather may be priced by another method that the Board or persons acting at their direction believe reflects fair value. Fair valuation may require subjective determinations about the value of a security. While the Trust’s policy is intended to result in a calculation of the Portfolio’s NAV that fairly reflects security values as of the time of pricing, the Trust cannot ensure that fair values determined by the Board or persons acting at their direction would accurately reflect the price that the Portfolio could obtain for a security if it were to dispose of that security as of the time of pricing (for instance, in a forced or distressed sale). The prices used by the Portfolio may differ from the value that would be realized if the securities were sold. The Portfolio’s use of fair valuation may also help to deter “stale price arbitrage” as discussed under the “Frequent or Excessive Purchases, Exchanges and Redemptions” section in the Portfolio’s prospectus.

(b) Fair Value Hierarchy  U.S. GAAP describes fair value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into levels (Level 1, 2, or 3). The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Levels 1, 2, and 3 of the fair value hierarchy are defined as follows:

^∎  Level 1 — Quoted prices in active markets or exchanges for identical assets and liabilities.

^∎  Level 2 — Significant other observable inputs, which may include, but are not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market corroborated inputs.

^∎  Level 3 — Significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, which may include assumptions made by the Board or persons acting at their direction that are used in determining the fair value of investments.

In accordance with the requirements of U.S. GAAP, the amounts of transfers into and out of Level 3, if material, are disclosed in the Notes to Schedule of Investments for the Portfolio.

ANNUAL REPORT DECEMBER 31, 2018 27

Notes to Financial Statements (Cont.)

For fair valuations using significant unobservable inputs, U.S. GAAP requires a reconciliation of the beginning to ending balances for reported fair values that presents changes attributable to realized gain (loss), unrealized appreciation (depreciation), purchases and sales, accrued discounts (premiums), and transfers into and out of the Level 3 category during the period. The end of period value is used for the transfers between Levels of the Portfolio’s assets and liabilities. Additionally, U.S. GAAP requires quantitative information regarding the significant unobservable inputs used in the determination of fair value of assets or liabilities categorized as Level 3 in the fair value hierarchy. In accordance with the requirements of U.S. GAAP, a fair value hierarchy, and if material, a Level 3 reconciliation and details of significant unobservable inputs, have been included in the Notes to Schedule of Investments for the Portfolio.

(c) Valuation Techniques and the Fair Value Hierarchy

Level 1 and Level 2 trading assets and trading liabilities, at fair value  The valuation methods (or “techniques”) and significant inputs used in determining the fair values of portfolio securities or other assets and liabilities categorized as Level 1 and Level 2 of the fair value hierarchy are as follows:

Fixed income securities including corporate, convertible and municipal bonds and notes, U.S. government agencies, U.S. treasury obligations, sovereign issues, bank loans, convertible preferred securities and non-U.S. bonds are normally valued on the basis of quotes obtained from brokers and dealers or Pricing Services that use broker-dealer quotations, reported trades or valuation estimates from their internal pricing models. The Pricing Services’ internal models use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar assets. Securities that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

Fixed income securities purchased on a delayed-delivery basis or as a repurchase commitment in a sale-buyback transaction are marked to market daily until settlement at the forward settlement date and are categorized as Level 2 of the fair value hierarchy.

Mortgage-related and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also normally valued by Pricing Services that use broker-dealer quotations, reported trades or valuation estimates from their internal pricing models. The pricing models for these securities usually consider tranche-level attributes, current market data, estimated cash flows and market-based yield spreads for each tranche, and incorporate deal collateral performance, as available. Mortgage-related and asset-backed securities that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

Common stocks, ETFs, exchange-traded notes and financial derivative instruments, such as futures contracts, rights and warrants, or options on futures that are traded on a national securities exchange, are stated at the last reported sale or settlement price on the day of valuation. To the extent these securities are actively traded and valuation adjustments are not applied, they are categorized as Level 1 of the fair value hierarchy.

Valuation adjustments may be applied to certain securities that are solely traded on a foreign exchange to account for the market movement between the close of the foreign market and the NYSE Close. These securities are valued using Pricing Services that consider the correlation of the trading patterns of the foreign security to the intraday trading in the U.S. markets for investments. Securities using these valuation adjustments are categorized as Level 2 of the fair value hierarchy. Preferred securities and other equities traded on inactive markets or valued by reference to similar instruments are also categorized as Level 2 of the fair value hierarchy.

Investments in registered open-end investment companies (other than ETFs) will be valued based upon the NAVs of such investments and are categorized as Level 1 of the fair value hierarchy. Investments in unregistered open-end investment companies will be calculated based upon the NAVs of such investments and are considered Level 1 provided that the NAVs are observable, calculated daily and are the value at which both purchases and sales will be conducted.

Equity exchange-traded options and over the counter financial derivative instruments, such as forward foreign currency contracts and options contracts derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors. These contracts are normally valued on the basis of quotes obtained from a quotation reporting system, established market makers or Pricing Services (normally determined as of the NYSE Close). Depending on the product and the terms of the transaction, financial derivative instruments can be valued by Pricing Services using a series of techniques, including simulation pricing models. The pricing models use inputs that are observed from actively quoted markets such as quoted prices, issuer details, indices, bid/ask spreads, interest rates, implied volatilities, yield curves, dividends and exchange rates. Financial derivative instruments that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

Centrally cleared swaps and over the counter swaps derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors. They are valued using a broker-dealer bid quotation or on market-based prices provided by Pricing Services (normally determined as of the NYSE close). Centrally cleared

28 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

swaps and over the counter swaps can be valued by Pricing Services using a series of techniques, including simulation pricing models. The pricing models may use inputs that are observed from actively quoted markets such as the overnight index swap rate (“OIS”), London Interbank Offered Rate (“LIBOR”) forward rate, interest rates, yield curves and credit spreads. These securities are categorized as Level 2 of the fair value hierarchy.

Level 3 trading assets and trading liabilities, at fair value  When a fair valuation method is applied by the Adviser that uses significant unobservable inputs, investments will be priced by a method that the

Board or persons acting at their direction believe reflects fair value and are categorized as Level 3 of the fair value hierarchy.

Short-term debt instruments (such as commercial paper) having a remaining maturity of 60 days or less may be valued at amortized cost, so long as the amortized cost value of such short-term debt instruments is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. These securities are categorized as Level 2 or Level 3 of the fair value hierarchy depending on the source of the base price.

4. SECURITIES AND OTHER INVESTMENTS

(a) Investments in Affiliates

The Portfolio may invest in the PIMCO Short Asset Portfolio and the PIMCO Short-Term Floating NAV Portfolio III (“Central Funds”) to the extent permitted by the Act and rules thereunder. The Central Funds are registered investment companies created for use solely by the series of the Trust and other series of registered investment companies advised by the Adviser, in connection with their cash management activities. The main investments of the Central Funds are money market and short maturity fixed income instruments. The Central Funds may incur expenses related to their investment activities, but do not pay Investment Advisory Fees or Supervisory and Administrative Fees to the Adviser. The Central Funds are considered to be affiliated with the Portfolio. The tables below show the Portfolio’s transactions in and earnings from investments in the affiliated Funds for the period ended December 31, 2018 (amounts in thousands^†):

Investment in PIMCO Short Asset Portfolio

Market Value 12/31/2017		Purchases at Cost		Proceeds from Sales		Net Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)			Market Value 12/31/2018		Dividend Income(1)		Realized Net Capital  Gain Distributions(1)
$	150,731	$	56,886	$	0	$	0	$	(1,850	)	$	205,767	$	5,449	$	237

Investment in PIMCO Short-Term Floating NAV Portfolio III

Market Value 12/31/2017		Purchases at Cost		Proceeds from Sales			Net Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)		Market Value 12/31/2018		Dividend Income(1)		Realized Net Capital  Gain Distributions(1)
$	32,359	$	1,791,454	$	(1,759,600	)	$	11	$	12	$	64,236	$	1,754	$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽¹⁾  The tax characterization of distributions is determined in accordance with Federal income tax regulations and may contain a return of capital. The actual tax characterization of distributions received is determined at the end of the fiscal year of the affiliated fund. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

(b) Investments in Securities

The Portfolio may utilize the investments and strategies described below to the extent permitted by the Portfolio’s investment policies.

Inflation-Indexed Bonds  are fixed income securities whose principal value is periodically adjusted by the rate of inflation. The interest rate on these bonds is generally fixed at issuance at a rate lower than typical bonds. Over the life of an inflation-indexed bond, however, interest will be paid based on a principal value which is adjusted for inflation. Any increase or decrease in the principal amount of an inflation-indexed bond will be included as interest income on the Statement of Operations, even though investors do not receive their principal until maturity. Repayment of the original bond principal upon

maturity (as adjusted for inflation) is guaranteed in the case of U.S. Treasury Inflation-Protected Securities (“TIPS”). For bonds that do not provide a similar guarantee, the adjusted principal value of the bond repaid at maturity may be less than the original principal.

Loans and Other Indebtedness, Loan Participations and Assignments  are direct debt instruments which are interests in amounts owed to lenders or lending syndicates by corporate, governmental, or other borrowers. The Portfolio’s investments in loans may be in the form of participations in loans or assignments of all or a portion of loans from third parties or investments in or originations of loans by the Portfolio. A loan is often administered by a bank or other financial institution (the “agent”) that acts as agent for all holders. The agent administers the terms of the loan, as specified in the loan

ANNUAL REPORT DECEMBER 31, 2018 29

Notes to Financial Statements (Cont.)

agreement. The Portfolio may invest in multiple series or tranches of a loan, which may have varying terms and carry different associated risks. When the Portfolio purchases assignments from agents it acquires direct rights against the borrowers of the loans. These loans may include participations in bridge loans, which are loans taken out by borrowers for a short period (typically less than one year) pending arrangement of more permanent financing through, for example, the issuance of bonds, frequently high yield bonds issued for the purpose of acquisitions.

The types of loans and related investments in which the Portfolio may invest include, among others, senior loans, subordinated loans (including second lien loans, B-Notes and mezzanine loans), whole loans, commercial real estate and other commercial loans and structured loans. The Portfolio may originate loans or acquire direct interests in loans through primary loan distributions and/or in private transactions. In the case of subordinated loans, there may be significant indebtedness ranking ahead of the borrower’s obligation to the holder of such a loan, including in the event of the borrower’s insolvency. Mezzanine loans are typically secured by a pledge of an equity interest in the mortgage borrower that owns the real estate rather than an interest in a mortgage.

Investments in loans may include unfunded loan commitments, which are contractual obligations for funding. Unfunded loan commitments may include revolving credit facilities, which may obligate the Portfolio to supply additional cash to the borrower on demand. Unfunded loan commitments represent a future obligation in full, even though a percentage of the committed amount may not be utilized by the borrower. When investing in a loan participation, the Portfolio has the right to receive payments of principal, interest and any fees to which it is entitled only from the agent selling the loan agreement and only upon receipt of payments by the agent from the borrower. The Portfolio may receive a commitment fee based on the undrawn portion of the underlying line of credit portion of a loan. In certain circumstances, the Portfolio may receive a penalty fee upon the prepayment of a loan by a borrower. Fees earned or paid are recorded as a component of interest income or interest expense, respectively, on the Statement of Operations. Unfunded loan commitments are reflected as a liability on the Statement of Assets and Liabilities.

Mortgage-Related and Other Asset-Backed Securities  directly or indirectly represent a participation in, or are secured by and payable from, loans on real property. Mortgage-related securities are created from pools of residential or commercial mortgage loans, including mortgage loans made by savings and loan institutions, mortgage bankers, commercial banks and others. These securities provide a monthly payment which consists of both interest and principal. Interest may be determined by fixed or adjustable rates. The rate of

prepayments on underlying mortgages will affect the price and volatility of a mortgage-related security, and may have the effect of shortening or extending the effective duration of the security relative to what was anticipated at the time of purchase. The timely payment of principal and interest of certain mortgage-related securities is guaranteed with the full faith and credit of the U.S. Government. Pools created and guaranteed by non-governmental issuers, including government-sponsored corporations, may be supported by various forms of insurance or guarantees, but there can be no assurance that private insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Many of the risks of investing in mortgage-related securities secured by commercial mortgage loans reflect the effects of local and other economic conditions on real estate markets, the ability of tenants to make lease payments, and the ability of a property to attract and retain tenants. These securities may be less liquid and may exhibit greater price volatility than other types of mortgage-related or other asset-backed securities. Other asset-backed securities are created from many types of assets, including, but not limited to, auto loans, accounts receivable, such as credit card receivables and hospital account receivables, home equity loans, student loans, boat loans, mobile home loans, recreational vehicle loans, manufactured housing loans, aircraft leases, computer leases and syndicated bank loans.

Collateralized Debt Obligations  (“CDOs”) include Collateralized Bond Obligations (“CBOs”), Collateralized Loan Obligations (“CLOs”) and other similarly structured securities. CBOs and CLOs are types of asset-backed securities. A CBO is a trust which is backed by a diversified pool of high risk, below investment grade fixed income securities. A CLO is a trust typically collateralized by a pool of loans, which may include, among others, domestic and foreign senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated below investment grade or equivalent unrated loans. The risks of an investment in a CDO depend largely on the type of the collateral securities and the class of the CDO in which the Portfolio invests. In addition to the normal risks associated with fixed income securities discussed elsewhere in this report and the Portfolio’s prospectus and statement of additional information (e.g., prepayment risk, credit risk, liquidity risk, market risk, structural risk, legal risk and interest rate risk (which may be exacerbated if the interest rate payable on a structured financing changes based on multiples of changes in interest rates or inversely to changes in interest rates)), CBOs, CLOs and other CDOs carry additional risks including, but not limited to, (i) the possibility that distributions from collateral securities will not be adequate to make interest or other payments, (ii) the quality of the collateral may decline in value or default, (iii) the risk that the Portfolio may invest in CBOs, CLOs, or other CDOs that are subordinate to other classes, and (iv) the complex structure of the security may not be fully

30 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

understood at the time of investment and may produce disputes with the issuer or unexpected investment results.

Collateralized Mortgage Obligations  (“CMOs”) are debt obligations of a legal entity that are collateralized by whole mortgage loans or private mortgage bonds and divided into classes. CMOs are structured into multiple classes, often referred to as “tranches”, with each class bearing a different stated maturity and entitled to a different schedule for payments of principal and interest, including prepayments. CMOs may be less liquid and may exhibit greater price volatility than other types of mortgage-related or asset-backed securities.

Stripped Mortgage-Backed Securities  (“SMBS”) are derivative multi-class mortgage securities. SMBS are usually structured with two classes that receive different proportions of the interest and principal distributions on a pool of mortgage assets. An SMBS will have one class that will receive all of the interest (the interest-only or “IO” class), while the other class will receive the entire principal (the principal-only or “PO” class). Payments received for IOs are included in interest income on the Statement of Operations. Because no principal will be received at the maturity of an IO, adjustments are made to the cost of the security on a monthly basis until maturity. These adjustments are included in interest income on the Statement of Operations. Payments received for POs are treated as reductions to the cost and par value of the securities.

Perpetual Bonds  are fixed income securities with no maturity date but pay a coupon in perpetuity (with no specified ending or maturity date). Unlike typical fixed income securities, there is no obligation for perpetual bonds to repay principal. The coupon payments, however, are mandatory. While perpetual bonds have no maturity date, they may have a callable date in which the perpetuity is eliminated and the issuer may return the principal received on the specified call date. Additionally, a perpetual bond may have additional features, such as interest rate increases at periodic dates or an increase as of a predetermined point in the future.

Securities Issued by U.S. Government Agencies or Government-Sponsored Enterprises  are obligations of and, in certain cases, guaranteed by, the U.S. Government, its agencies or instrumentalities. Some U.S. Government securities, such as Treasury bills, notes and bonds, and securities guaranteed by the Government National Mortgage Association (“GNMA” or “Ginnie Mae”), are supported by the full faith and credit of the U.S. Government; others, such as those of the Federal Home Loan Banks, are supported by the right of the issuer to borrow from the U.S. Department of the Treasury (the “U.S. Treasury”); and others, such as those of the Federal National Mortgage Association (“FNMA” or “Fannie Mae”), are supported by the discretionary authority of the U.S. Government to purchase the

agency’s obligations. U.S. Government securities may include zero coupon securities. Zero coupon securities do not distribute interest on a current basis and tend to be subject to a greater risk than interest-paying securities.

Government-related guarantors (i.e., not backed by the full faith and credit of the U.S. Government) include FNMA and the Federal Home Loan Mortgage Corporation (“FHLMC” or “Freddie Mac”). FNMA is a government-sponsored corporation. FNMA purchases conventional (i.e., not insured or guaranteed by any government agency) residential mortgages from a list of approved seller/servicers which include state and federally chartered savings and loan associations, mutual savings banks, commercial banks and credit unions and mortgage bankers. Pass-through securities issued by FNMA are guaranteed as to timely payment of principal and interest by FNMA, but are not backed by the full faith and credit of the U.S. Government. FHLMC issues Participation Certificates (“PCs”), which are pass-through securities, each representing an undivided interest in a pool of residential mortgages. FHLMC guarantees the timely payment of interest and ultimate collection of principal, but PCs are not backed by the full faith and credit of the U.S. Government.

Roll-timing strategies can be used where the Portfolio seeks to extend the expiration or maturity of a position, such as a TBA security on an underlying asset, by closing out the position before expiration and opening a new position with respect to substantially the same underlying asset with a later expiration date. TBA securities purchased or sold are reflected on the Statement of Assets and Liabilities as an asset or liability, respectively.

When-Issued Transactions  are purchases or sales made on a when-issued basis. These transactions are made conditionally because a security, although authorized, has not yet been issued in the market. Transactions to purchase or sell securities on a when-issued basis involve a commitment by the Portfolio to purchase or sell these securities for a predetermined price or yield, with payment and delivery taking place beyond the customary settlement period. The Portfolio may sell when-issued securities before they are delivered, which may result in a realized gain (loss).

5. BORROWINGS AND OTHER FINANCING TRANSACTIONS

The Portfolio may enter into the borrowings and other financing transactions described below to the extent permitted by the Portfolio’s investment policies.

The following disclosures contain information on the Portfolio’s ability to lend or borrow cash or securities to the extent permitted under the Act, which may be viewed as borrowing or financing transactions by

ANNUAL REPORT DECEMBER 31, 2018 31

Notes to Financial Statements (Cont.)

the Portfolio. The location of these instruments in the Portfolio’s financial statements is described below.

(a) Repurchase Agreements  Under the terms of a typical repurchase agreement, the Portfolio purchases an underlying debt obligation (collateral) subject to an obligation of the seller to repurchase, and the Portfolio to resell, the obligation at an agreed-upon price and time. In an open maturity repurchase agreement, there is no pre-determined repurchase date and the agreement can be terminated by the Portfolio or counterparty at any time. The underlying securities for all repurchase agreements are held by the Portfolio’s custodian or designated subcustodians under tri-party repurchase agreements and in certain instances will remain in custody with the counterparty. The market value of the collateral must be equal to or exceed the total amount of the repurchase obligations, including interest. Repurchase agreements, if any, including accrued interest, are included on the Statement of Assets and Liabilities. Interest earned is recorded as a component of interest income on the Statement of Operations. In periods of increased demand for collateral, the Portfolio may pay a fee for the receipt of collateral, which may result in interest expense to the Portfolio.

(b) Reverse Repurchase Agreements  In a reverse repurchase agreement, the Portfolio delivers a security in exchange for cash to a financial institution, the counterparty, with a simultaneous agreement to repurchase the same or substantially the same security at an agreed upon price and date. In an open maturity reverse repurchase agreement, there is no pre-determined repurchase date and the agreement can be terminated by the Portfolio or counterparty at any time. The Portfolio is entitled to receive principal and interest payments, if any, made on the security delivered to the counterparty during the term of the agreement. Cash received in exchange for securities delivered plus accrued interest payments to be made by the Portfolio to counterparties are reflected as a liability on the Statement of Assets and Liabilities. Interest payments made by the Portfolio to counterparties are recorded as a component of interest expense on the Statement of Operations. In periods of increased demand for the security, the Portfolio may receive a fee for use of the security by the counterparty, which may result in interest income to the Portfolio. The Portfolio will segregate assets determined to be liquid by the Adviser or will otherwise cover its obligations under reverse repurchase agreements.

(c) Short Sales  Short sales are transactions in which the Portfolio sells a security that it may not own. The Portfolio may make short sales of securities to (i) offset potential declines in long positions in similar securities, (ii) to increase the flexibility of the Portfolio, (iii) for investment return, (iv) as part of a risk arbitrage strategy, and (v) as part of its overall portfolio management strategies involving the use of derivative instruments. When the Portfolio engages in a short sale, it may borrow the security sold short and deliver it to the counterparty.

The Portfolio will ordinarily have to pay a fee or premium to borrow a security and be obligated to repay the lender of the security any dividend or interest that accrues on the security during the period of the loan. Securities sold in short sale transactions and the dividend or interest payable on such securities, if any, are reflected as payable for short sales on the Statement of Assets and Liabilities. Short sales expose the Portfolio to the risk that it will be required to cover its short position at a time when the security or other asset has appreciated in value, thus resulting in losses to the Portfolio. A short sale is “against the box” if the Portfolio holds in its portfolio or has the right to acquire the security sold short, or securities identical to the security sold short, at no additional cost. The Portfolio will be subject to additional risks to the extent that it engages in short sales that are not “against the box.” The Portfolio’s loss on a short sale could theoretically be unlimited in cases where the Portfolio is unable, for whatever reason, to close out its short position.

6. FINANCIAL DERIVATIVE INSTRUMENTS

The Portfolio may enter into the financial derivative instruments described below to the extent permitted by the Portfolio’s investment policies.

The following disclosures contain information on how and why the Portfolio uses financial derivative instruments, and how financial derivative instruments affect the Portfolio’s financial position, results of operations and cash flows. The location and fair value amounts of these instruments on the Statement of Assets and Liabilities and the net realized gain (loss) and net change in unrealized appreciation (depreciation) on the Statement of Operations, each categorized by type of financial derivative contract and related risk exposure, are included in a table in the Notes to Schedule of Investments. The financial derivative instruments outstanding as of period end and the amounts of net realized gain (loss) and net change in unrealized appreciation (depreciation) on financial derivative instruments during the period, as disclosed in the Notes to Schedule of Investments, serve as indicators of the volume of financial derivative activity for the Portfolio.

(a) Forward Foreign Currency Contracts  may be engaged, in connection with settling planned purchases or sales of securities, to hedge the currency exposure associated with some or all of the Portfolio’s securities or as part of an investment strategy. A forward foreign currency contract is an agreement between two parties to buy and sell a currency at a set price on a future date. The market value of a forward foreign currency contract fluctuates with changes in foreign currency exchange rates. Forward foreign currency contracts are marked to market daily, and the change in value is recorded by the Portfolio as an unrealized gain (loss). Realized gains (losses) are equal

32 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

to the difference between the value of the contract at the time it was opened and the value at the time it was closed and are recorded upon delivery or receipt of the currency. These contracts may involve market risk in excess of the unrealized gain (loss) reflected on the Statement of Assets and Liabilities. In addition, the Portfolio could be exposed to risk if the counterparties are unable to meet the terms of the contracts or if the value of the currency changes unfavorably to the U.S. dollar. To mitigate such risk, cash or securities may be exchanged as collateral pursuant to the terms of the underlying contracts.

(b) Futures Contracts  are agreements to buy or sell a security or other asset for a set price on a future date. The Portfolio may use futures contracts to manage its exposure to the securities markets or to movements in interest rates and currency values. The primary risks associated with the use of futures contracts are the imperfect correlation between the change in market value of the securities held by the Portfolio and the prices of futures contracts and the possibility of an illiquid market. Futures contracts are valued based upon their quoted daily settlement prices. Upon entering into a futures contract, the Portfolio is required to deposit with its futures broker an amount of cash, U.S. Government and Agency Obligations, or select sovereign debt, in accordance with the initial margin requirements of the broker or exchange. Futures contracts are marked to market daily and based on such movements in the price of the contracts, an appropriate payable or receivable for the change in value may be posted or collected by the Portfolio (“Futures Variation Margin”). Gains (losses) are recognized but not considered realized until the contracts expire or close. Futures contracts involve, to varying degrees, risk of loss in excess of the Futures Variation Margin included within exchange traded or centrally cleared financial derivative instruments on the Statement of Assets and Liabilities.

(c) Options Contracts  may be written or purchased to enhance returns or to hedge an existing position or future investment. The Portfolio may write call and put options on securities and financial derivative instruments it owns or in which it may invest. Writing put options tends to increase the Portfolio’s exposure to the underlying instrument. Writing call options tends to decrease the Portfolio’s exposure to the underlying instrument. When the Portfolio writes a call or put, an amount equal to the premium received is recorded and subsequently marked to market to reflect the current value of the option written. These amounts are included on the Statement of Assets and Liabilities. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options which are exercised or closed are added to the proceeds or offset against amounts paid on the underlying futures, swap, security or currency transaction to determine the realized gain (loss). Certain options may be written with premiums to be determined on a future date. The

premiums for these options are based upon implied volatility parameters at specified terms. The Portfolio as a writer of an option has no control over whether the underlying instrument may be sold (“call”) or purchased (“put”) and as a result bears the market risk of an unfavorable change in the price of the instrument underlying the written option. There is the risk the Portfolio may not be able to enter into a closing transaction because of an illiquid market.

Purchasing call options tends to increase the Portfolio’s exposure to the underlying instrument. Purchasing put options tends to decrease the Portfolio’s exposure to the underlying instrument. The Portfolio pays a premium which is included as an asset on the Statement of Assets and Liabilities and subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options which expire are treated as realized losses. Certain options may be purchased with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. The risk associated with purchasing put and call options is limited to the premium paid. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the underlying investment transaction to determine the realized gain (loss) when the underlying transaction is executed.

Credit Default Swaptions  may be written or purchased to hedge exposure to the credit risk of an investment without making a commitment to the underlying instrument. A credit default swaption is an option to sell or buy credit protection on a specific reference by entering into a pre-defined swap agreement by some specified date in the future.

Foreign Currency Options  may be written or purchased to be used as a short or long hedge against possible variations in foreign exchange rates or to gain exposure to foreign currencies.

Options on Exchange-Traded Futures Contracts  (“Futures Option”) may be written or purchased to hedge an existing position or future investment, for speculative purposes or to manage exposure to market movements. A Futures Option is an option contract in which the underlying instrument is a single futures contract.

Options on Securities  may be written or purchased to enhance returns or to hedge an existing position or future investment. An option on a security uses a specified security as the underlying instrument for the option contract.

(d) Swap Agreements  are bilaterally negotiated agreements between the Portfolio and a counterparty to exchange or swap investment cash flows, assets, foreign currencies or market-linked returns at specified, future intervals. Swap agreements may be privately negotiated in the over the counter market (“OTC swaps”) or may be cleared through a

ANNUAL REPORT DECEMBER 31, 2018 33

Notes to Financial Statements (Cont.)

third party, known as a central counterparty or derivatives clearing organization (“Centrally Cleared Swaps”). The Portfolio may enter into asset, credit default, cross-currency, interest rate, total return, variance and other forms of swap agreements to manage its exposure to credit, currency, interest rate, commodity, equity and inflation risk. In connection with these agreements, securities or cash may be identified as collateral or margin in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default or bankruptcy/insolvency.

Centrally Cleared Swaps are marked to market daily based upon valuations as determined from the underlying contract or in accordance with the requirements of the central counterparty or derivatives clearing organization. Changes in market value, if any, are reflected as a component of net change in unrealized appreciation (depreciation) on the Statement of Operations. Daily changes in valuation of centrally cleared swaps (“Swap Variation Margin”), if any, are disclosed within centrally cleared financial derivative instruments on the Statement of Assets and Liabilities. Centrally Cleared and OTC swap payments received or paid at the beginning of the measurement period are included on the Statement of Assets and Liabilities and represent premiums paid or received upon entering into the swap agreement to compensate for differences between the stated terms of the swap agreement and prevailing market conditions (credit spreads, currency exchange rates, interest rates, and other relevant factors). Upfront premiums received (paid) are initially recorded as liabilities (assets) and subsequently marked to market to reflect the current value of the swap. These upfront premiums are recorded as realized gain (loss) on the Statement of Operations upon termination or maturity of the swap. A liquidation payment received or made at the termination of the swap is recorded as realized gain (loss) on the Statement of Operations. Net periodic payments received or paid by the Portfolio are included as part of realized gain (loss) on the Statement of Operations.

For purposes of applying certain of the Portfolio’s investment policies and restrictions, swap agreements, like other derivative instruments, may be valued by the Portfolio at market value, notional value or full exposure value. In the case of a credit default swap, in applying certain of the Portfolio’s investment policies and restrictions, the Portfolio will value the credit default swap at its notional value or its full exposure value (i.e., the sum of the notional amount for the contract plus the market value), but may value the credit default swap at market value for purposes of applying certain of the Portfolio’s other investment policies and restrictions. For example, the Portfolio may value credit default swaps at full exposure value for purposes of the Portfolio’s credit quality guidelines (if any) because such value in general better reflects the Portfolio’s actual economic exposure during the term of the credit default swap agreement. As a result, the Portfolio may, at times,

have notional exposure to an asset class (before netting) that is greater or lesser than the stated limit or restriction noted in the Portfolio’s prospectus. In this context, both the notional amount and the market value may be positive or negative depending on whether the Portfolio is selling or buying protection through the credit default swap. The manner in which certain securities or other instruments are valued by the Portfolio for purposes of applying investment policies and restrictions may differ from the manner in which those investments are valued by other types of investors.

Entering into swap agreements involves, to varying degrees, elements of interest, credit, market and documentation risk in excess of the amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of contractual terms in the agreements and that there may be unfavorable changes in interest rates or the values of the asset upon which the swap is based.

The Portfolio’s maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from the counterparty over the contract’s remaining life, to the extent that amount is positive. The risk may be mitigated by having a master netting arrangement between the Portfolio and the counterparty and by the posting of collateral to the Portfolio to cover the Portfolio’s exposure to the counterparty.

To the extent the Portfolio has a policy to limit the net amount owed to or to be received from a single counterparty under existing swap agreements, such limitation only applies to counterparties to OTC swaps and does not apply to centrally cleared swaps where the counterparty is a central counterparty or derivatives clearing organization.

Credit Default Swap Agreements  on corporate, loan, sovereign, U.S. municipal or U.S. Treasury issues are entered into to provide a measure of protection against defaults of the issuers (i.e., to reduce risk where the Portfolio owns or has exposure to the referenced obligation) or to take an active long or short position with respect to the likelihood of a particular issuer’s default. Credit default swap agreements involve one party making a stream of payments (referred to as the buyer of protection) to another party (the seller of protection) in exchange for the right to receive a specified return in the event that the referenced entity, obligation or index, as specified in the swap agreement, undergoes a certain credit event. As a seller of protection on credit default swap agreements, the Portfolio will generally receive from the buyer of protection a fixed rate of income throughout the term of the swap provided that there is no credit event. As the seller, the Portfolio would effectively add leverage to its portfolio because, in addition to its

34 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

total net assets, the Portfolio would be subject to investment exposure on the notional amount of the swap.

If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. If the Portfolio is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. Recovery values are estimated by market makers considering either industry standard recovery rates or entity specific factors and considerations until a credit event occurs. If a credit event has occurred, the recovery value is determined by a facilitated auction whereby a minimum number of allowable broker bids, together with a specified valuation method, are used to calculate the settlement value. The ability to deliver other obligations may result in a cheapest-to-deliver option (the buyer of protection’s right to choose the deliverable obligation with the lowest value following a credit event).

Credit default swap agreements on credit indices involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising the credit index. A credit index is a basket of credit instruments or exposures designed to be representative of some part of the credit market as a whole. These indices are made up of reference credits that are judged by a poll of dealers to be the most liquid entities in the credit default swap market based on the sector of the index. Components of the indices may include, but are not limited to, investment grade securities, high yield securities, asset-backed securities, emerging markets, and/or various credit ratings within each sector. Credit indices are traded using credit default swaps with standardized terms including a fixed spread and standard maturity dates. An index credit default swap references all the names in the index, and if there is a default, the credit event is settled based on that name’s weight in the index. The composition of the indices changes periodically, usually every six months, and for most indices, each name

has an equal weight in the index. The Portfolio may use credit default swaps on credit indices to hedge a portfolio of credit default swaps or bonds, which is less expensive than it would be to buy many credit default swaps to achieve a similar effect. Credit default swaps on indices are instruments for protecting investors owning bonds against default, and traders use them to speculate on changes in credit quality.

Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate, loan, sovereign, U.S. municipal or U.S. Treasury issues as of period end, if any, are disclosed in the Notes to Schedule of Investments. They serve as an indicator of the current status of payment/performance risk and represent the likelihood or risk of default for the reference entity. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. For credit default swap agreements on asset-backed securities and credit indices, the quoted market prices and resulting values serve as the indicator of the current status of the payment/performance risk. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

The maximum potential amount of future payments (undiscounted) that the Portfolio as a seller of protection could be required to make under a credit default swap agreement equals the notional amount of the agreement. Notional amounts of each individual credit default swap agreement outstanding as of period end for which the Portfolio is the seller of protection are disclosed in the Notes to Schedule of Investments. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Portfolio for the same referenced entity or entities.

Interest Rate Swap Agreements  may be entered into to help hedge against interest rate risk exposure and to maintain the Portfolio’s ability to generate income at prevailing market rates. The value of the fixed rate bonds that the Portfolio holds may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, the Portfolio may enter into interest rate swap agreements. Interest rate swap agreements involve the exchange by the Portfolio with another party for their respective

ANNUAL REPORT DECEMBER 31, 2018 35

Notes to Financial Statements (Cont.)

commitment to pay or receive interest on the notional amount of principal. Certain forms of interest rate swap agreements may include: (i) interest rate caps, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates exceed a specified rate, or “cap”, (ii) interest rate floors, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates fall below a specified rate, or “floor”, (iii) interest rate collars, under which a party sells a cap and purchases a floor or vice versa in an attempt to protect itself against interest rate movements exceeding given minimum or maximum levels, (iv) callable interest rate swaps, under which the buyer pays an upfront fee in consideration for the right to early terminate the swap transaction in whole, at zero cost and at a predetermined date and time prior to the maturity date, (v) spreadlocks, which allow the interest rate swap users to lock in the forward differential (or spread) between the interest rate swap rate and a specified benchmark, or (vi) basis swaps, under which two parties can exchange variable interest rates based on different segments of money markets.

7. PRINCIPAL RISKS

The principal risks of investing in the Portfolio, which could adversely affect its net asset value, yield and total return, are listed below. Please see “Description of Principal Risks” in the Portfolio’s prospectus for a more detailed description of the risks of investing in the Portfolio.

Interest Rate Risk  is the risk that fixed income securities will decline in value because of an increase in interest rates; a portfolio with a longer average portfolio duration will be more sensitive to changes in interest rates than a portfolio with a shorter average portfolio duration.

Call Risk  is the risk that an issuer may exercise its right to redeem a fixed income security earlier than expected (a call). Issuers may call outstanding securities prior to their maturity for a number of reasons (e.g., declining interest rates, changes in credit spreads and improvements in the issuer’s credit quality). If an issuer calls a security that the Portfolio has invested in, the Portfolio may not recoup the full amount of its initial investment and may be forced to reinvest in lower-yielding securities, securities with greater credit risks or securities with other, less favorable features.

Credit Risk  is the risk that the Portfolio could lose money if the issuer or guarantor of a fixed income security, or the counterparty to a derivative contract, is unable or unwilling to meet its financial obligations.

High Yield Risk  is the risk that high yield securities and unrated securities of similar credit quality (commonly known as “junk bonds”) are subject to greater levels of credit, call and liquidity risks. High yield securities are considered primarily speculative with respect to the

issuer’s continuing ability to make principal and interest payments, and may be more volatile than higher-rated securities of similar maturity.

Market Risk  is the risk that the value of securities owned by the Portfolio may go up or down, sometimes rapidly or unpredictably, due to factors affecting securities markets generally or particular industries.

Issuer Risk  is the risk that the value of a security may decline for a reason directly related to the issuer, such as management performance, financial leverage and reduced demand for the issuer’s goods or services.

Liquidity Risk  is the risk that a particular investment may be difficult to purchase or sell and that the Portfolio may be unable to sell illiquid securities at an advantageous time or price or achieve its desired level of exposure to a certain sector. Liquidity risk may result from the lack of an active market, reduced number and capacity of traditional market participants to make a market in fixed income securities, and may be magnified in a rising interest rate environment or other circumstances where investor redemptions from fixed income mutual funds may be higher than normal, causing increased supply in the market due to selling activity.

Derivatives Risk  is the risk of investing in derivative instruments (such as futures, swaps and structured securities), including leverage, liquidity, interest rate, market, credit and management risks, mispricing or valuation complexity. Changes in the value of the derivative may not correlate perfectly with, and may be more sensitive to market events than, the underlying asset, rate or index, and the Portfolio could lose more than the initial amount invested. The Portfolio’s use of derivatives may result in losses to the Portfolio, a reduction in the Portfolio’s returns and/or increased volatility. Over-the-counter (“OTC”) derivatives are also subject to the risk that a counterparty to the transaction will not fulfill its contractual obligations to the other party, as many of the protections afforded to centrally-cleared derivative transactions might not be available for OTC derivatives. For derivatives traded on an exchange or through a central counterparty, credit risk resides with the Portfolio’s clearing broker, or the clearinghouse itself, rather than with a counterparty in an OTC derivative transaction. Changes in regulation relating to a mutual fund’s use of derivatives and related instruments could potentially limit or impact the Portfolio’s ability to invest in derivatives, limit the Portfolio’s ability to employ certain strategies that use derivatives and/or adversely affect the value of derivatives and the Portfolio’s performance.

Equity Risk  is the risk that the value of equity securities, such as common stocks and preferred securities, may decline due to general market conditions which are not specifically related to a particular

36 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

company or to factors affecting a particular industry or industries. Equity securities generally have greater price volatility than fixed income securities.

Mortgage-Related and Other Asset-Backed Securities Risk  is the risk of investing in mortgage-related and other asset-backed securities, including interest rate risk, extension risk, prepayment risk and credit risk.

Foreign (Non-U.S.) Investment Risk  is the risk that investing in foreign (non-U.S.) securities may result in the Portfolio experiencing more rapid and extreme changes in value than a portfolio that invests exclusively in securities of U.S. companies, due to smaller markets, differing reporting, accounting and auditing standards, increased risk of delayed settlement of portfolio transactions or loss of certificates of portfolio securities, and the risk of unfavorable foreign government actions, including nationalization, expropriation or confiscatory taxation, currency blockage, or political changes or diplomatic developments. Foreign securities may also be less liquid and more difficult to value than securities of U.S. issuers.

Emerging Markets Risk  is the risk of investing in emerging market securities, primarily increased foreign (non-U.S.) investment risk.

Sovereign Debt Risk  is the risk that investments in fixed income instruments issued by sovereign entities may decline in value as a result of default or other adverse credit event resulting from an issuer’s inability or unwillingness to make principal or interest payments in a timely fashion.

Currency Risk  is the risk that foreign (non-U.S.) currencies will change in value relative to the U.S. dollar and affect the Portfolio’s investments in foreign (non-U.S.) currencies or in securities that trade in, and receive revenues in, or in derivatives that provide exposure to, foreign (non-U.S.) currencies.

Leveraging Risk  is the risk that certain transactions of the Portfolio, such as reverse repurchase agreements, loans of portfolio securities, and the use of when-issued, delayed delivery or forward commitment transactions, or derivative instruments, may give rise to leverage, magnifying gains and losses and causing the Portfolio to be more volatile than if it had not been leveraged. This means that leverage entails a heightened risk of loss.

Management Risk  is the risk that the investment techniques and risk analyses applied by PIMCO will not produce the desired results and that legislative, regulatory, or tax restrictions, policies or developments may affect the investment techniques available to PIMCO and the individual portfolio manager in connection with managing the Portfolio. There is no guarantee that the investment objective of the Portfolio will be achieved.

Short Exposure Risk  is the risk of entering into short sales, including the potential loss of more money than the actual cost of the investment, and the risk that the third party to the short sale will not fulfill its contractual obligations, causing a loss to the Portfolio.

8. MASTER NETTING ARRANGEMENTS

The Portfolio may be subject to various netting arrangements (“Master Agreements”) with select counterparties. Master Agreements govern the terms of certain transactions, and are intended to reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that is intended to improve legal certainty. Each type of Master Agreement governs certain types of transactions. Different types of transactions may be traded out of different legal entities or affiliates of a particular organization, resulting in the need for multiple agreements with a single counterparty. As the Master Agreements are specific to unique operations of different asset types, they allow the Portfolio to close out and net its total exposure to a counterparty in the event of a default with respect to all the transactions governed under a single Master Agreement with a counterparty. For financial reporting purposes the Statement of Assets and Liabilities generally presents derivative assets and liabilities on a gross basis, which reflects the full risks and exposures prior to netting.

Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. Under most Master Agreements, collateral is routinely transferred if the total net exposure to certain transactions (net of existing collateral already in place) governed under the relevant Master Agreement with a counterparty in a given account exceeds a specified threshold, which typically ranges from zero to $250,000 depending on the counterparty and the type of Master Agreement. United States Treasury Bills and U.S. dollar cash are generally the preferred forms of collateral, although other securities may be used depending on the terms outlined in the applicable Master Agreement. Securities and cash pledged as collateral are reflected as assets on the Statement of Assets and Liabilities as either a component of Investments at value (securities) or Deposits with counterparty. Cash collateral received is not typically held in a segregated account and as such is reflected as a liability on the Statement of Assets and Liabilities as Deposits from counterparty. The market value of any securities received as collateral is not reflected as a component of NAV. The Portfolio’s overall exposure to counterparty risk can change substantially within a short period, as it is affected by each transaction subject to the relevant Master Agreement.

Master Repurchase Agreements and Global Master Repurchase Agreements (individually and collectively “Master Repo Agreements”) govern repurchase, reverse repurchase, and certain sale-buyback

ANNUAL REPORT DECEMBER 31, 2018 37

Notes to Financial Statements (Cont.)

transactions between the Portfolio and select counterparties. Master Repo Agreements maintain provisions for, among other things, initiation, income payments, events of default, and maintenance of collateral. The market value of transactions under the Master Repo Agreement, collateral pledged or received, and the net exposure by counterparty as of period end are disclosed in the Notes to Schedule of Investments.

Master Securities Forward Transaction Agreements (“Master Forward Agreements”) govern certain forward settling transactions, such as TBA securities, delayed-delivery or certain sale-buyback transactions by and between the Portfolio and select counterparties. The Master Forward Agreements maintain provisions for, among other things, transaction initiation and confirmation, payment and transfer, events of default, termination, and maintenance of collateral. The market value of forward settling transactions, collateral pledged or received, and the net exposure by counterparty as of period end is disclosed in the Notes to Schedule of Investments.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Such transactions require posting of initial margin as determined by each relevant clearing agency which is segregated in an account at a futures commission merchant (“FCM”) registered with the Commodity Futures Trading Commission (“CFTC”). In the United States, counterparty risk may be reduced as creditors of an FCM cannot have a claim to Portfolio assets in the segregated account. Portability of exposure reduces risk to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives unless the parties have agreed to a separate arrangement in respect of portfolio margining. The market value or accumulated unrealized appreciation (depreciation), initial margin posted, and any unsettled variation margin as of period end are disclosed in the Notes to Schedule of Investments.

Prime Broker Arrangements may be entered into to facilitate execution and/or clearing of listed equity option transactions or short sales of equity securities between the Portfolio and selected counterparties. The arrangements provide guidelines surrounding the rights, obligations, and other events, including, but not limited to, margin, execution, and settlement. These agreements maintain provisions for, among other things, payments, maintenance of collateral, events of default, and termination. Margin and other assets delivered as collateral are typically in the possession of the prime broker and would offset any obligations due to the prime broker. The market values of listed options and securities sold short and related collateral are disclosed in the Notes to Schedule of Investments.

International Swaps and Derivatives Association, Inc. Master Agreements and Credit Support Annexes (“ISDA Master Agreements”) govern bilateral OTC derivative transactions entered into by the Portfolio with select counterparties. ISDA Master Agreements maintain provisions for general obligations, representations, agreements, collateral posting and events of default or termination. Events of termination include conditions that may entitle counterparties to elect to terminate early and cause settlement of all outstanding transactions under the applicable ISDA Master Agreement. Any election to terminate early could be material to the financial statements. In limited circumstances, the ISDA Master Agreement may contain additional provisions that add counterparty protection beyond coverage of existing daily exposure if the counterparty has a decline in credit quality below a predefined level. These amounts, if any, may be segregated with a third-party custodian. The market value of OTC financial derivative instruments, collateral received or pledged, and net exposure by counterparty as of period end are disclosed in the Notes to Schedule of Investments.

9. FEES AND EXPENSES

(a) Investment Advisory Fee  PIMCO is a majority-owned subsidiary of Allianz Asset Management of America L.P. (“Allianz Asset Management”) and serves as the Adviser to the Trust, pursuant to an investment advisory contract. The Adviser receives a monthly fee from the Portfolio at an annual rate based on average daily net assets (the “Investment Advisory Fee”). The Investment Advisory Fee for all classes is charged at an annual rate as noted in the table in note (b) below.

(b) Supervisory and Administrative Fee PIMCO serves as administrator (the “Administrator”) and provides supervisory and administrative services to the Trust for which it receives a monthly supervisory and administrative fee based on each share class’s average daily net assets (the “Supervisory and Administrative Fee”). As the Administrator, PIMCO bears the costs of various third-party services, including audit, custodial, portfolio accounting, legal, transfer agency and printing costs.

The Investment Advisory Fee and Supervisory and Administrative Fees for all classes, as applicable, are charged at the annual rate as noted in the following table (calculated as a percentage of the Portfolio’s average daily net assets attributable to each class):

Investment Advisory Fee		Supervisory and Administrative Fee
All Classes		Institutional Class		Administrative Class		Advisor Class
	0.25%		0.25%		0.25%		0.25%

(c) Distribution and Servicing Fees  PIMCO Investments LLC, a wholly-owned subsidiary of PIMCO, serves as the distributor (“Distributor”) of the Trust’s shares.

38 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

The Trust has adopted an Administrative Services Plan with respect to the Administrative Class shares of the Portfolio pursuant to Rule 12b-1 under the Act (the “Administrative Plan”). Under the terms of the Administrative Plan, the Trust is permitted to compensate the Distributor, out of the Administrative Class assets of the Portfolio, in an amount up to 0.15% on an annual basis of the average daily net assets of that class, for providing or procuring through financial intermediaries administrative, recordkeeping and investor services for Administrative Class shareholders of the Portfolio.

The Trust has adopted a separate Distribution and Servicing Plan for the Advisor Class shares of the Portfolio (the “Distribution and Servicing Plan”). The Distribution and Servicing Plan has been adopted pursuant to Rule 12b-1 under the Act. The Distribution and Servicing Plan permits the Portfolio to compensate the Distributor for providing or procuring through financial intermediaries, distribution, administrative, recordkeeping, shareholder and/or related services with respect to Advisor Class shares. The Distribution and Servicing Plan permits the Portfolio to make total payments at an annual rate of up to 0.25% of its average daily net assets attributable to its Advisor Class shares.

	Distribution Fee		Servicing Fee
Administrative Class		—		0.15%
Advisor Class		0.25%		—

(d) Portfolio Expenses  PIMCO provides or procures supervisory and administrative services for shareholders and also bears the costs of various third-party services required by the Portfolio, including audit, custodial, portfolio accounting, legal, transfer agency and printing costs. The Trust is responsible for the following expenses: (i) taxes and governmental fees; (ii) brokerage fees and commissions and other portfolio transaction expenses; (iii) the costs of borrowing money, including interest expense; (iv) fees and expenses of the Trustees who are not “interested persons” of PIMCO or the Trust, and any counsel retained exclusively for their benefit; (v) extraordinary expense, including costs of litigation and indemnification expenses; (vi) organizational expenses; and (vii) any expenses allocated or allocable to a specific class of shares, which include service fees payable with respect to the Administrative Class Shares, and may include certain other expenses as permitted by the Trust’s Multi-Class Plan adopted pursuant to Rule 18f-3 under the Act and subject to review and approval by the Trustees. The ratio of expenses to average net assets per share class, as disclosed on the Financial Highlights, may differ from the annual portfolio operating expenses per share class.

Each Trustee, other than those affiliated with PIMCO or its affiliates, receives an annual retainer of $41,200, plus $4,250 for each Board meeting attended in person, $850 for each committee meeting

attended and $750 for each Board meeting attended telephonically, plus reimbursement of related expenses. In addition, the audit committee chair receives an additional annual retainer of $8,000, the valuation oversight committee lead receives an additional annual retainer of $8,500 (to the extent there are co-leads of the valuation oversight committee, the annual retainer will be split evenly between the co-leads, so that each co-lead individually receives an additional annual retainer of $4,250) and each other committee chair receives an additional annual retainer of $5,500. The Lead Independent Trustee receives an annual retainer of $7,000.

These expenses are allocated on a pro rata basis to each Portfolio of the Trust according to its respective net assets. The Trust pays no compensation directly to any Trustee or any other officer who is affiliated with the Administrator, all of whom receive remuneration for their services to the Trust from the Administrator or its affiliates.

(e) Expense Limitation  Pursuant to the Expense Limitation Agreement, PIMCO has agreed to waive a portion of the Portfolio’s Supervisory and Administrative Fee, or reimburse the Portfolio, to the extent that the Portfolio’s organizational expenses, pro rata share of expenses related to obtaining or maintaining a Legal Entity Identifier and pro rata share of Trustee Fees exceed 0.0049%, the “Expense Limit” (calculated as a percentage of the Portfolio’s average daily net assets attributable to each class). The Expense Limitation Agreement will automatically renew for one-year terms unless PIMCO provides written notice to the Trust at least 30 days prior to the end of the then current term.

Under certain conditions, PIMCO may be reimbursed for amounts waived pursuant to the Expense Limitation Agreement in future periods, not to exceed thirty-six months after the waiver. At December 31, 2018, there were no recoverable amounts.

10. RELATED PARTY TRANSACTIONS

The Adviser, Administrator, and Distributor are related parties. Fees paid to these parties are disclosed in Note 9, Fees and Expenses, and the accrued related party fee amounts are disclosed on the Statement of Assets and Liabilities.

The Portfolio is permitted to purchase or sell securities from or to certain related affiliated portfolios under specified conditions outlined in procedures adopted by the Board. The procedures have been designed to ensure that any purchase or sale of securities by the Portfolio from or to another fund or portfolio that are, or could be, considered an affiliate, or an affiliate of an affiliate, by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers complies with Rule 17a-7 under the Act. Further, as defined under the procedures, each transaction is effected at the current market price. Purchases and sales

ANNUAL REPORT DECEMBER 31, 2018 39

Notes to Financial Statements (Cont.)

of securities pursuant to Rule 17a-7 under the Act for the period ended December 31, 2018, were as follows (amounts in thousands^†):

Purchases		Sales
$	57,086	$	25,750

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

11. GUARANTEES AND INDEMNIFICATIONS

Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust (including the Trust’s investment manager) is indemnified, to the extent permitted by the Act, against certain liabilities that may arise out of performance of their duties to the Portfolio. Additionally, in the normal course of business, the Portfolio enters into contracts that contain a variety of indemnification clauses. The Portfolio’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Portfolio that have not yet occurred. However, the Portfolio has not had prior claims or losses pursuant to these contracts.

12. PURCHASES AND SALES OF SECURITIES

The length of time the Portfolio has held a particular security is not generally a consideration in investment decisions. A change in the

securities held by the Portfolio is known as “portfolio turnover.” The Portfolio may engage in frequent and active trading of portfolio securities to achieve its investment objective, particularly during periods of volatile market movements. High portfolio turnover may involve correspondingly greater transaction costs to the Portfolio, including brokerage commissions or dealer mark-ups and other transaction costs on the sale of securities and reinvestments in other securities. Such sales may also result in realization of taxable capital gains, including short-term capital gains (which are generally taxed at ordinary income tax rates). The transaction costs and tax effects associated with portfolio turnover may adversely affect a shareholder’s performance. The portfolio turnover rates are reported in the Financial Highlights.

Purchases and sales of securities (excluding short-term investments) for the period ended December 31, 2018, were as follows (amounts in thousands^†):

U.S. Government/Agency				All Other
Purchases		Sales		Purchases		Sales
$	10,839,318	$	10,139,701	$	945,819	$	634,528

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

13. SHARES OF BENEFICIAL INTEREST

The Trust may issue an unlimited number of shares of beneficial interest with a $0.001 par value. Changes in shares of beneficial interest were as follows (shares and amounts in thousands^†):

	Year Ended 12/31/2018						Year Ended 12/31/2017
	Shares			Amount			Shares			Amount
Receipts for shares sold
Institutional Class		704		$	7,161			1,014		$	10,391
Administrative Class		21,599			218,880			35,577			364,467
Advisor Class		12,624			128,015			15,484			158,679
Issued as reinvestment of distributions
Institutional Class		27			269			18			181
Administrative Class		2,322			23,503			1,633			16,740
Advisor Class		1,364			13,801			906			9,281
Cost of shares redeemed
Institutional Class		(1,379	)		(13,956	)		(382	)		(3,909	)
Administrative Class		(29,282	)		(296,700	)		(34,889	)		(357,250	)
Advisor Class		(13,197	)		(133,730	)		(12,111	)		(124,128	)
Net increase (decrease) resulting from Portfolio share transactions		(5,218	)	$	(52,757	)		7,250		$	74,452

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

As of December 31, 2018, two shareholders each owned 10% or more of the Portfolio’s total outstanding shares comprising 39% of the Portfolio.

14. REGULATORY AND LITIGATION MATTERS

The Portfolio is not named as a defendant in any material litigation or arbitration proceedings and is not aware of any material litigation or claim pending or threatened against it.

The foregoing speaks only as of the date of this report.

40 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

15. FEDERAL INCOME TAX MATTERS

The Portfolio intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code (the “Code”) and distribute all of its taxable income and net realized gains, if applicable, to shareholders. Accordingly, no provision for Federal income taxes has been made.

The Portfolio may be subject to local withholding taxes, including those imposed on realized capital gains. Any applicable foreign capital gains tax is accrued daily based upon net unrealized gains, and may be payable following the sale of any applicable investments.

In accordance with U.S. GAAP, the Adviser has reviewed the Portfolio’s tax positions for all open tax years. As of December 31, 2018, the Portfolio has recorded no liability for net unrecognized tax benefits relating to uncertain income tax positions it has taken or expects to take in future tax returns.

The Portfolio files U.S. federal, state, and local tax returns as required. The Portfolio’s tax returns are subject to examination by relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return but which can be extended to six years in certain circumstances. Tax returns for open years have incorporated no uncertain tax positions that require a provision for income taxes.

Shares of the Portfolio currently are sold to segregated asset accounts (“Separate Accounts”) of insurance companies that fund variable annuity contracts and variable life insurance policies (“Variable Contracts”). Please refer to the prospectus for the Separate Account and Variable Contract for information regarding Federal income tax treatment of distributions to the Separate Account.

As of December 31, 2018, the components of distributable taxable earnings are as follows (amounts in thousands^†):

	Undistributed Ordinary Income(1)		Undistributed Long-Term Capital Gains		Net Tax Basis Unrealized Appreciation/ (Depreciation)(2)			Other Book-to-Tax Accounting Differences(3)		Accumulated Capital Losses(4)			Qualified Late-Year Loss Deferral - Capital(5)		Qualified Late-Year Loss Deferral - Ordinary(6)
PIMCO Low Duration Portfolio	$	0	$	0	$	(7,112	)	$	0	$	(62,135	)	$	0	$	(4,101	)

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽¹⁾  Includes undistributed short-term capital gains, if any.

⁽²⁾  Adjusted for open wash sale loss deferrals and the accelerated recognition of unrealized gain or loss on certain futures, options and forward contracts for federal income tax, purposes. Also adjusted for differences between book and tax realized and unrealized gain (loss) on swap contracts, straddle loss deferrals, and Lehman securities.

⁽³⁾  Represents differences in income tax regulations and financial accounting principles generally accepted in the United States of America, mainly for distributions payable at fiscal year-end and organizational costs.

⁽⁴⁾  Capital losses available to offset future net capital gains expire in varying amounts as shown below.

⁽⁵⁾  Capital losses realized during the period November 1, 2018 through December 31, 2018 which the Portfolio elected to defer to the following taxable year pursuant to income tax regulations.

⁽⁶⁾  Specified losses realized during the period November 1, 2018 through December 31, 2018 which the Portfolio elected to defer to the following taxable year pursuant to income tax regulations.

Under the Regulated Investment Company Modernization Act of 2010, a fund is permitted to carry forward any new capital losses for an unlimited period. Additionally, such capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term under previous law.

As of December 31, 2018, the Portfolio had the following post-effective capital losses with no expiration (amounts in thousands^†):

	Short-Term		Long-Term
PIMCO Low Duration Portfolio	$	36,558	$	25,577

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

ANNUAL REPORT DECEMBER 31, 2018 41

Notes to Financial Statements (Cont.)

December 31, 2018

As of December 31, 2018, the aggregate cost and the net unrealized appreciation/(depreciation) of investments for federal income tax purposes are as follows (amounts in thousands^†):

	Federal Tax Cost		Unrealized Appreciation		Unrealized (Depreciation)			Net Unrealized Appreciation/ (Depreciation)(7)
PIMCO Low Duration Portfolio	$	2,553,618	$	49,814	$	(56,917	)	$	(7,103	)

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽⁷⁾  Primary differences, if any, between book and tax net unrealized appreciation/(depreciation) on investments are attributable to open wash sale loss deferrals, unrealized gain or loss on certain futures, options and forward contracts, realized and unrealized gain (loss) swap contracts, straddle loss deferrals, and Lehman securities.

For the fiscal year ended December 31, 2018 and December 31, 2017, respectively, the Portfolio made the following tax basis distributions (amounts in thousands^†):

	December 31, 2018						December 31, 2017
	Ordinary Income Distributions(8)		Long-Term Capital Gain Distributions		Return of Capital(9)		Ordinary Income Distributions(8)		Long-Term Capital Gain Distributions		Return of Capital(9)
PIMCO Low Duration Portfolio	$	37,573	$	0	$	0	$	21,723	$	0	$	4,479

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽⁸⁾  Includes short-term capital gains distributed, if any.

⁽⁹⁾  A portion of the distributions made represents a tax return of capital. Return of capital distributions have been reclassified from undistributed net investment income to paid-in capital to more appropriately conform financial accounting to tax accounting.

42 PIMCO VARIABLE INSURANCE TRUST

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of PIMCO Variable Insurance Trust and Shareholders of PIMCO Low Duration Portfolio

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of PIMCO Low Duration Portfolio (one of the portfolios constituting PIMCO Variable Insurance Trust, referred to hereafter as the “Portfolio”) as of December 31, 2018, the related statement of operations for the year ended December 31, 2018, the statement of changes in net assets for each of the two years in the period ended December 31, 2018, including the related notes, and the financial highlights for each of the five years in the period ended December 31, 2018 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Portfolio as of December 31, 2018, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended December 31, 2018 and the financial highlights for each of the five years in the period ended December 31, 2018 in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Portfolio’s management. Our responsibility is to express an opinion on the Portfolio’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Portfolio in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2018 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

Kansas City, Missouri

February 20, 2019

We have served as the auditor of one or more investment companies in PIMCO Variable Insurance Trust since 1998.

ANNUAL REPORT DECEMBER 31, 2018 43

Glossary: (abbreviations that may be used in the preceding statements)

(Unaudited)

Counterparty Abbreviations:
AZD	Australia and New Zealand Banking Group	FICC	Fixed Income Clearing Corporation	MSB	Morgan Stanley Bank, N.A
BOA	Bank of America N.A.	GLM	Goldman Sachs Bank USA	MYI	Morgan Stanley & Co. International PLC
BPS	BNP Paribas S.A.	GSC	Goldman Sachs & Co.	RBC	Royal Bank of Canada
BRC	Barclays Bank PLC	GST	Goldman Sachs International	RYL	Royal Bank of Scotland Group PLC
BSN	Bank of Nova Scotia	HUS	HSBC Bank USA N.A.	SCX	Standard Chartered Bank
CBK	Citibank N.A.	IND	Crédit Agricole Corporate and Investment Bank S.A.	SSB	State Street Bank and Trust Co.
DUB	Deutsche Bank AG	JPM	JP Morgan Chase Bank N.A.	UAG	UBS AG Stamford
Currency Abbreviations:
ARS	Argentine Peso	GBP	British Pound	SGD	Singapore Dollar
AUD	Australian Dollar	JPY	Japanese Yen	THB	Thai Baht
BRL	Brazilian Real	MXN	Mexican Peso	TRY	Turkish New Lira
CAD	Canadian Dollar	MYR	Malaysian Ringgit	USD (or $)	United States Dollar
EUR	Euro	RUB	Russian Ruble
Exchange Abbreviations:
CBOT	Chicago Board of Trade	OTC	Over the Counter
Index/Spread Abbreviations:
BP0003M	3 Month GBP-LIBOR	EUR003M	3 Month EUR Swap Rate	SOFRRATE	Secured Overnight Financing Rate
CDX.IG	Credit Derivatives Index - Investment Grade	LIBOR03M	3 Month USD-LIBOR	US0003M	3 Month USD Swap Rate
Other Abbreviations:
ALT	Alternate Loan Trust	EURIBOR	Euro Interbank Offered Rate	OAT	Obligations Assimilables du Trésor
BTP	Buoni del Tesoro Poliennali	LIBOR	London Interbank Offered Rate	TBA	To-Be-Announced
CLO	Collateralized Loan Obligation	Lunar	Monthly payment based on 28-day periods. One year consists of 13 periods.	TIIE	Tasa de Interés Interbancaria de Equilibrio “Equilibrium Interbank Interest Rate”
DAC	Designated Activity Company

44 PIMCO VARIABLE INSURANCE TRUST

Federal Income Tax Information

(Unaudited)

As required by the Internal Revenue Code (the “Code”) and Treasury Regulations, if applicable, shareholders must be notified regarding the status of qualified dividend income and the dividend received deduction.

Dividend Received Deduction.  Corporate shareholders are generally entitled to take the dividend received deduction on the portion of a Fund’s dividend distribution that qualifies under tax law. The percentage of the following Portfolio’s fiscal 2018 ordinary income dividend that qualifies for the corporate dividend received deduction is set forth in the table below.

Qualified Dividend Income.  Under the Jobs and Growth Tax Relief Reconciliation Act of 2003 (the “Act”), the percentage of ordinary dividends paid during the calendar year designated as “qualified dividend income”, as defined in the Act, subject to reduced tax rates in 2018 is set forth for the Portfolio in the table below.

Qualified Interest Income and Qualified Short-Term Capital Gain (for non-U.S. resident shareholders only).  Under the American Jobs Creation Act of 2004, the amounts of ordinary dividends paid during the fiscal year ended December 31, 2018 considered to be derived from “qualified interest income,” as defined in Section 871(k)(1)(E) of the Code, and therefore designated as interest-related dividends, as defined in Section 871(k)(1)(C) of the Code are set forth in the table below. Further, the amounts of ordinary dividends paid during the fiscal year ended December 31, 2018 considered to be derived from “qualified short-term capital gain,” as defined in Section 871(k)(2)(D) of the Code, and therefore designated as qualified short-term gain dividends, as defined by Section 871(k)(2)(C) of the Code are also set forth in the table below.

	Dividend Received Deduction %		Qualified Dividend Income %		Qualified Interest Income (000s† )		Qualified Short-Term Capital Gain (000s†)
PIMCO Low Duration Portfolio		0.00%		0.00%	$	37,573	$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

Shareholders are advised to consult their own tax advisor with respect to the tax consequences of their investment in the Trust. In January 2019, you will be advised on IRS Form 1099-DIV as to the federal tax status of the dividends and distributions received by you in calendar year 2018.

ANNUAL REPORT DECEMBER 31, 2018 45

Management of the Trust

The charts below identify the Trustees and executive officers of the Trust. Unless otherwise indicated, the address of all persons below is 650 Newport Center Drive, Newport Beach, CA 92660.

The Portfolio’s Statement of Additional Information includes more information about the Trustees and Officers. To request a free copy, call PIMCO at (888) 87-PIMCO or visit the Portfolio’s website at www.pimco.com/pvit.

Name, Year of Birth and Position Held with Trust*	Term of Office and Length of Time Served†	Principal Occupation(s) During Past 5 Years	Number of Funds in Fund Complex Overseen by Trustee	Other Public Company and Investment Company Directorships Held by Trustee During the Past 5 Years
Interested Trustees1
Peter G. Strelow** (1970) Chairman of the Board and Trustee	05/2017 to present Chairman of the Board - 02/2019 to present	Managing Director and Co-Chief Operating Officer, PIMCO. President of the Trust, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Chief Administrative Officer, PIMCO.	153	Chairman and Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT.
Brent R. Harris** (1959) Trustee	08/1997 to present	Managing Director, PIMCO. Senior Vice President of the Trust, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Formerly, member of Executive Committee, PIMCO.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT; Director, StocksPLUS® Management, Inc; and member of Board of Governors, Investment Company Institute. Formerly, Chairman, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT.
Independent Trustees
George E. Borst (1948) Trustee	04/2015 to present	Executive Advisor, McKinsey & Company (since 10/14); Formerly, Executive Advisor, Toyota Financial Services (10/13-12/14); and CEO, Toyota Financial Services (1/01-9/13).	132	Trustee, PIMCO Funds and PIMCO ETF Trust; Director, MarineMax Inc.
Jennifer Holden Dunbar (1963) Trustee	04/2015 to present	Managing Director, Dunbar Partners, LLC (business consulting and investments). Formerly, Partner, Leonard Green & Partners, L.P.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT; Director, PS Business Parks; Director, Big 5 Sporting Goods Corporation.
Kym M. Hubbard (1957) Trustee	02/2017 to present	Formerly, Global Head of Investments, Chief Investment Officer and Treasurer, Ernst & Young.	132	Trustee, PIMCO Funds and PIMCO ETF Trust; Director, State Auto Financial Corporation.
Gary F. Kennedy (1955) Trustee	04/2015 to present	Formerly, Senior Vice President, General Counsel and Chief Compliance Officer, American Airlines and AMR Corporation (now American Airlines Group) (1/03-1/14).	132	Trustee, PIMCO Funds and PIMCO ETF Trust.
Peter B. McCarthy (1950) Trustee	04/2015 to present	Formerly, Assistant Secretary and Chief Financial Officer, United States Department of Treasury; Deputy Managing Director, Institute of International Finance.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Ronald C. Parker (1951) Lead Independent Trustee	07/2009 to present Lead Independent Trustee - 02/2017 to present	Director of Roseburg Forest Products Company. Formerly, Chairman of the Board, The Ford Family Foundation; and President, Chief Executive Officer, Hampton Affiliates (forestry products).	153	Lead Independent Trustee, PIMCO Funds and PIMCO ETF Trust; Trustee, PIMCO Equity Series and PIMCO Equity Series VIT.

* Unless otherwise noted, the information for the individuals listed is as of December 31, 2018.

** Effective February 13, 2019, Mr. Strelow became the Chairman of the Trust.

¹  Mr. Harris and Mr. Strelow are “interested persons” of the Trust (as that term is defined in the 1940 Act) because of their affiliations with PIMCO.

^†  Trustees serve until their successors are duly elected and qualified.

46 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

Executive Officers

Name, Year of Birth and Position Held with Trust	Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years*
Peter G. Strelow (1970) President	01/2015 to present	Managing Director and Co-Chief Operating Officer, PIMCO. President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Chief Administrative Officer, PIMCO.
Joshua D. Ratner (1976)** Chief Legal Officer	11/2018 to present Vice President - Senior Counsel and Secretary 11/2013 to 11/2018 Assistant Secretary 10/2007 to 01/2011	Executive Vice President and Deputy General Counsel, PIMCO. Chief Legal Officer, PIMCO Investments LLC. Chief Legal Officer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Jennifer E. Durham (1970) Chief Compliance Officer	07/2004 to present	Managing Director and Chief Compliance Officer, PIMCO. Chief Compliance Officer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Brent R. Harris (1959) Senior Vice President	01/2015 to present President 03/2009 to 01/2015	Managing Director, PIMCO. Senior Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Formerly, member of Executive Committee, PIMCO.
Ryan G. Leshaw (1980) Vice President, Senior Counsel and Secretary	11/2018 to present Assistant Secretary 05/2012 to 11/2018	Senior Vice President and Senior Counsel, PIMCO. Vice President, Senior Counsel and Secretary, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Assistant Secretary, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Associate, Willkie Farr & Gallagher LLP.
Wu-Kwan Kit (1981) Assistant Secretary	08/2017 to present	Senior Vice President and Senior Counsel, PIMCO. Assistant Secretary, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Vice President, Senior Counsel and Secretary, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Assistant General Counsel, VanEck Associates Corp.
Stacie D. Anctil (1969) Vice President	05/2015 to present Assistant Treasurer 11/2003 to 05/2015	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
William G. Galipeau (1974) Vice President	11/2013 to present	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Eric D. Johnson (1970) Vice President	05/2011 to present	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Henrik P. Larsen (1970) Vice President	02/1999 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Bijal Y. Parikh (1978) Vice President	02/2017 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Greggory S. Wolf (1970) Vice President	05/2011 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Trent W. Walker (1974) Treasurer	11/2013 to present	Executive Vice President, PIMCO. Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Erik C. Brown (1967)** Assistant Treasurer	02/2001 to present	Executive Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Colleen D. Miller (1980)** Assistant Treasurer	02/2017 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Christopher M. Morin (1980) Assistant Treasurer	08/2016 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Jason J. Nagler (1982)** Assistant Treasurer	05/2015 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.

* The term “PIMCO-Sponsored Closed-End Funds” as used herein includes: PIMCO California Municipal Income Fund, PIMCO California Municipal Income Fund II, PIMCO California Municipal Income Fund III, PIMCO Municipal Income Fund, PIMCO Municipal Income Fund II, PIMCO Municipal Income Fund III, PIMCO New York Municipal Income Fund, PIMCO New York Municipal Income Fund II, PIMCO New York Municipal Income Fund III, PCM Fund Inc., PIMCO Corporate & Income Opportunity Fund, PIMCO Corporate & Income Strategy Fund, PIMCO Dynamic Credit and Mortgage Income Fund, PIMCO Dynamic Income Fund, PIMCO Global StocksPLUS^® & Income Fund, PIMCO High Income Fund, PIMCO Income Opportunity Fund, PIMCO Income Strategy Fund, PIMCO Income Strategy Fund II and PIMCO Strategic Income Fund, Inc.; the term “PIMCO-Sponsored Interval Funds” as used herein includes: PIMCO Flexible Credit Income Fund and PIMCO Flexible Municipal Income Fund.

** The address of these officers is Pacific Investment Management Company LLC, 1633 Broadway, New York, New York 10019.

ANNUAL REPORT DECEMBER 31, 2018 47

Privacy Policy¹

(Unaudited)

The Trust^2,3 considers customer privacy to be a fundamental aspect of its relationships with shareholders and is committed to maintaining the confidentiality, integrity and security of its current, prospective and former shareholders’ non-public personal information. The Trust has developed policies that are designed to protect this confidentiality, while allowing shareholder needs to be served.

OBTAINING PERSONAL INFORMATION

In the course of providing shareholders with products and services, the Trust and certain service providers to the Trust, such as the Trust’s investment advisers or sub-advisers (“Advisers”), may obtain non-public personal information about shareholders, which may come from sources such as account applications and other forms, from other written, electronic or verbal correspondence, from shareholder transactions, from a shareholder’s brokerage or financial advisory firm, financial advisor or consultant, and/or from information captured on applicable websites.

RESPECTING YOUR PRIVACY

As a matter of policy, the Trust does not disclose any non-public personal information provided by shareholders or gathered by the Trust to non-affiliated third parties, except as required or permitted by law or as necessary for such third parties to perform their agreements with respect to the Trust. As is common in the industry, non-affiliated companies may from time to time be used to provide certain services, such as preparing and mailing prospectuses, reports, account statements and other information, conducting research on shareholder satisfaction and gathering shareholder proxies. The Trust or its affiliates may also retain non-affiliated companies to market the Trust’s shares or products which use the Trust’s shares and enter into joint marketing arrangements with them and other companies. These companies may have access to a shareholder’s personal and account information, but are permitted to use this information solely to provide the specific service or as otherwise permitted by law. In most cases, the shareholders will be clients of a third party, but the Trust may also provide a shareholder’s personal and account information to the shareholder’s respective brokerage or financial advisory firm and/or financial advisor or consultant.

SHARING INFORMATION WITH THIRD PARTIES

The Trust reserves the right to disclose or report personal or account information to non-affiliated third parties in limited circumstances where the Trust believes in good faith that disclosure is required under law, to cooperate with regulators or law enforcement authorities, to protect its rights or property, or upon reasonable request by any fund advised by PIMCO in which a shareholder has invested. In addition, the Trust may disclose information about a shareholder or a shareholder’s accounts to a non-affiliated third party at the shareholder’s request or with the consent of the shareholder.

SHARING INFORMATION WITH AFFILIATES

The Trust may share shareholder information with its affiliates in connection with servicing shareholders’ accounts, and subject to applicable law may provide shareholders with information about products and services that the Trust or its Advisers, distributors or their affiliates (“Service Affiliates”) believe may be of interest to such shareholders. The information that the Trust may share may include,

for example, a shareholder’s participation in the Trust or in other investment programs sponsored by a Service Affiliate, a shareholder’s ownership of certain types of accounts (such as IRAs), information about the Trust’s experiences or transactions with a shareholder, information captured on applicable websites, or other data about a shareholder’s accounts, subject to applicable law. The Trust’s Service Affiliates, in turn, are not permitted to share shareholder information with non-affiliated entities, except as required or permitted by law.

PROCEDURES TO SAFEGUARD PRIVATE INFORMATION

The Trust takes seriously the obligation to safeguard shareholder non-public personal information. In addition to this policy, the Trust has implemented procedures that are designed to restrict access to a shareholder’s non-public personal information to internal personnel who need to know that information to perform their jobs, such as servicing shareholder accounts or notifying shareholders of new products or services. Physical, electronic and procedural safeguards are in place to guard a shareholder’s non-public personal information.

INFORMATION COLLECTED FROM WEBSITES

Websites maintained by the Trust or its service providers may use a variety of technologies to collect information that help the Trust and its service providers understand how the website is used. Information collected from your web browser (including small files stored on your device that are commonly referred to as “cookies”) allow the websites to recognize your web browser and help to personalize and improve your user experience and enhance navigation of the website. In addition, the Trust or its Service Affiliates may use third parties to place advertisements for the Trust on other websites, including banner advertisements. Such third parties may collect anonymous information through the use of cookies or action tags (such as web beacons). The information these third parties collect is generally limited to technical and web navigation information, such as your IP address, web pages visited and browser type, and does not include personally identifiable information such as name, address, phone number or email address. If you are a registered user of the Trust’s website, the Trust or their service providers or third party firms engaged by the Trust or their service providers may collect or share information submitted by you, which may include personally identifiable information. This information can be useful to the Trust when assessing and offering services and website features. You can change your cookie preferences by changing the setting on your web browser to delete or reject cookies. If you delete or reject cookies, some website pages may not function properly. The Trust does not look for web browser “do not track” requests.

CHANGES TO THE PRIVACY POLICY

From time to time, the Trust may update or revise this privacy policy. If there are changes to the terms of this privacy policy, documents containing the revised policy on the relevant website will be updated.

¹ Amended as of February 15, 2017.

² PIMCO Investments LLC (“PI”) serves as the Trust’s distributor. This Privacy Policy applies to the activities of PI to the extent that PI regularly effects or engages in transactions with or for a Trust shareholder who is the record owner of such shares. For purposes of this Privacy Policy, references to “the Trust” shall include PI when acting in this capacity.

³ When distributing this Policy, the Trust may combine the distribution with any similar distribution of its investment adviser’s privacy policy. The distributed, combined policy may be written in the first person (i.e., by using “we” instead of “the Trust”).

48 PIMCO VARIABLE INSURANCE TRUST

Approval of Investment Advisory Contract and Other Agreements

(Unaudited)

Approval of Renewal of the Amended and Restated Investment Advisory Contract, Supervision and Administration Agreement and Amended and Restated Asset Allocation Sub-Advisory Agreement

At a meeting held on August 20-21, 2018, the Board of Trustees (the “Board”) of PIMCO Variable Insurance Trust (the “Trust”), including the Trustees who are not “interested persons” of the Trust under the Investment Company Act of 1940, as amended (the “Independent Trustees”), considered and unanimously approved the renewal of the Amended and Restated Investment Advisory Contract (the “Investment Advisory Contract”) between the Trust, on behalf of each of the Trust’s series (the “Portfolios”), and Pacific Investment Management Company LLC (“PIMCO”) for an additional one-year term through August 31, 2019. The Board also considered and unanimously approved the renewal of the Supervision and Administration Agreement (together with the Investment Advisory Contract, the “Agreements”) between the Trust, on behalf of the Portfolios, and PIMCO for an additional one-year term through August 31, 2019. In addition, the Board considered and unanimously approved the renewal of the Amended and Restated Asset Allocation Sub-Advisory Agreement (the “Asset Allocation Agreement”) between PIMCO, on behalf of PIMCO All Asset Portfolio and PIMCO All Asset All Authority Portfolio, each a series of the Trust, and Research Affiliates, LLC (“Research Affiliates”) for an additional one-year term through August 31, 2019.

The information, material factors and conclusions that formed the basis for the Board’s approvals are summarized below.

1. INFORMATION RECEIVED

(a) Materials Reviewed:  During the course of the past year, the Trustees received a wide variety of materials relating to the services provided by PIMCO and Research Affiliates to the Trust. At each of its quarterly meetings, the Board reviewed the Portfolios’ investment performance and a significant amount of information relating to Portfolio operations, including shareholder services, valuation and custody, the Portfolios’ compliance program and other information relating to the nature, extent and quality of services provided by PIMCO and Research Affiliates to the Trust and each of the Portfolios, as applicable. In considering whether to approve the renewal of the Agreements and the Asset Allocation Agreement, the Board reviewed additional information, including, but not limited to, comparative industry data with regard to investment performance, advisory and supervisory and administrative fees and expenses, financial information for PIMCO and, where relevant, Research Affiliates, information regarding the profitability to PIMCO of its relationship with the Portfolios, information about the personnel providing investment management services, other advisory services and supervisory and administrative services to the Portfolios, and information about the fees

charged and services provided to other clients with similar investment mandates as the Portfolios, where applicable. In addition, the Board reviewed materials provided by counsel to the Trust and the Independent Trustees, which included, among other things, memoranda outlining legal duties of the Board in considering the renewal of the Agreements and the Asset Allocation Agreement.

(b) Review Process:  In connection with considering the renewal of the Agreements and the Asset Allocation Agreement, the Board reviewed written materials prepared by PIMCO and, where applicable, Research Affiliates in response to requests from counsel to the Trust and the Independent Trustees encompassing a wide variety of topics. The Board requested and received assistance and advice regarding, among other things, applicable legal standards from counsel to the Trust and the Independent Trustees, and reviewed comparative fee and performance data prepared at the Board’s request by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company performance information and fee and expense data. The Board received information on matters related to the Agreements and the Asset Allocation Agreement and met both as a full Board and in a separate session of the Independent Trustees, without management present, at the August 20-21, 2018 meeting. The Independent Trustees also conducted in-person meetings with counsel to the Trust and the Independent Trustees, including one on July 18, 2018, to discuss the Lipper Report, as defined below, and certain aspects of the 2018 15(c) materials presented and other matters deemed relevant to their consideration of the renewal of the Agreements and the Asset Allocation Agreement. In connection with its review of the Agreements, the Board received comparative information on the performance and the fees and expenses of other peer group funds and share classes. In addition, the Independent Trustees requested and received supplemental information.

The approval determinations were made on the basis of each Trustee’s business judgment after consideration and evaluation of all the information presented. Individual Trustees may have given different weights to certain factors and assigned various degrees of materiality to information received in connection with the approval process. In deciding to approve the renewal of the Agreements and the Asset Allocation Agreement, the Board did not identify any single factor or particular information that, in isolation, was controlling. The discussion below is intended to summarize the broad factors and information that figured prominently in the Board’s consideration of the renewal of the Agreements and the Asset Allocation Agreement, but is not intended to summarize all of the factors considered by the Board.

2. NATURE, EXTENT AND QUALITY OF SERVICES

(a) PIMCO, Research Affiliates, their Personnel, and Resources:  The Board considered the depth and quality of PIMCO’s investment management process, including: the experience, capability and integrity

ANNUAL REPORT DECEMBER 31, 2018 49

Approval of Investment Advisory Contract and Other Agreements (Cont.)

of its senior management and other personnel; the overall financial strength and stability of its organization; and the ability of its organizational structure to address changes in the Portfolios’ asset levels. The Board also considered the various services in addition to portfolio management that PIMCO provides under the Investment Advisory Contract. The Board noted that PIMCO makes available to its investment professionals a variety of resources and systems relating to investment management, compliance, trading, performance and portfolio accounting. The Board also noted PIMCO’s commitment to enhancing and investing in its global infrastructure, technology capabilities, risk management processes and the specialized talent needed to stay at the forefront of the competitive investment management industry and to strengthen its ability to deliver services under the Agreements. The Board considered PIMCO’s policies, procedures and systems reasonably designed to assure compliance with applicable laws and regulations and its commitment to further developing and strengthening these programs, its oversight of matters that may involve conflicts of interest between the Portfolios’ investments and those of other accounts managed by PIMCO, and its efforts to keep the Trustees informed about matters relevant to the Portfolios and their shareholders. The Board also considered PIMCO’s continuous investment in new disciplines and talented personnel, which has enhanced PIMCO’s services to the Portfolios and has allowed PIMCO to introduce innovative new portfolios over time. In addition, the Board considered the nature and quality of services provided by PIMCO to the wholly-owned subsidiaries of certain applicable Portfolios.

The Trustees considered that PIMCO has continued to strengthen the process it uses to actively manage counterparty risk and to assess the financial stability of counterparties with which the Portfolios do business, to manage collateral and to protect Portfolios from an unforeseen deterioration in the creditworthiness of trading counterparties. The Trustees noted that, consistent with its fiduciary duty, PIMCO executes transactions through a competitive best execution process and uses only those counterparties that meet its stringent and monitored criteria. The Trustees considered that PIMCO’s collateral management team utilizes a counterparty risk system to analyze portfolio level exposure and collateral being exchanged with counterparties.

In addition, the Trustees considered new services and service enhancements that PIMCO has implemented since the Board renewed the Agreements in 2017, including, but not limited to upgrading the global network and infrastructure to support trading and risk management systems; enhancing and continuing to expand capabilities within the pre-trade compliance platform; enhancing flexible client reporting capabilities to support increased differentiation within local markets; developing new application and database frameworks to support new trading strategies; expanding proprietary applications

suites to enrich capabilities across Compliance, Analytics, Risk Management, Client Reporting, Attribution and Customer Relationship management; continuing investment in its enterprise risk management function, including PIMCO’s cybersecurity program and global business continuity functions; oversight by the Americas Fund Oversight Committee, which provides senior-level oversight and supervision focused on new and ongoing fund-related business opportunities; engaging a third party service provider to implement the SEC reporting modernization regime; expanding the Fund Treasurer’s Office; enhancing a proprietary application to provide portfolio managers with more timely and high quality income reporting; developing a global tax management application that will enable investment professionals to access foreign market and security tax information on a real-time basis; enhancing reporting of tax reporting for portfolio managers for income products with improved transparency on tax factors impacting income generation and dividend yield; upgrading a proprietary application to allow shareholder subscription and redemption data to pass to portfolio managers more quickly and efficiently; and continuing to expand the pricing portal and the proprietary performance reconciliation tool.

Similarly, the Board considered the asset allocation services provided by Research Affiliates to the PIMCO All Asset Portfolio and PIMCO All Asset All Authority Portfolio. The Board further considered PIMCO’s oversight of Research Affiliates in connection with Research Affiliates providing asset allocation services to the Asset Portfolio and All Asset All Authority Portfolio. The Board also considered the depth and quality of Research Affiliates’ investment management and research capabilities, the experience and capabilities of its portfolio management personnel and the overall financial strength of the organization.

Ultimately, the Board concluded that the nature, extent and quality of services provided or procured by PIMCO under the Agreements and provided by Research Affiliates under the Asset Allocation Agreement are likely to continue to benefit the Portfolios and their respective shareholders, as applicable.

(b) Other Services:  The Board also considered the nature, extent and quality of supervisory and administrative services provided by PIMCO to the Portfolios under the Supervision and Administration Agreement.

The Board considered the terms of the Supervision and Administration Agreement, under which the Trust pays for the supervisory and administrative services provided pursuant to that agreement under what is essentially an all-in fee structure (the “unified fee”). In return, PIMCO provides or procures certain supervisory and administrative services and bears the costs of various third party services required by the Portfolios, including audit, custodial, portfolio accounting, legal, transfer agency, sub-accounting and printing costs. The Board noted that the scope and complexity, as well as the costs, of the supervisory

50 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

and administrative services provided by PIMCO under the Supervision and Administration Agreement continue to increase. The Board considered PIMCO’s provision of supervisory and administrative services and its supervision of the Trust’s third party service providers to assure that these service providers continue to provide a high level of service relative to alternatives available in the market.

Ultimately, the Board concluded that the nature, extent and quality of the services provided by PIMCO has benefited, and will likely continue to benefit, the Portfolios and their shareholders.

3. INVESTMENT PERFORMANCE

The Board reviewed information from PIMCO concerning the Portfolios’ performance, as available, over short- and long-term periods ended March 31, 2018 and other performance data, as available, over short- and long-term periods ended June 30, 2018 (the “PIMCO Report”) and from Broadridge concerning the Portfolios’ performance, as available, over short- and long-term periods ended March 31, 2018 (the “Lipper Report”).

The Board considered information regarding both the short- and long-term investment performance of each Portfolio relative to its peer group and relevant benchmark index as provided to the Board in advance of each of its quarterly meetings throughout the year, including the PIMCO Report and Lipper Report, which were provided in advance of the August 20-21, 2018 meeting. The Trustees noted that many of the Portfolios outperformed their respective Lipper medians on a net-of-fees basis over the three-, five- and ten-year periods ended March 31, 2018. The Board also noted that, as of March 31, 2018, the Administrative Class of 72%, 35% and 73% of the Portfolios outperformed their respective Lipper category median on a net-of-fees basis over the three-, five- and ten-year periods, respectively. The Trustees considered that other classes of each Portfolio would have substantially similar performance to that of the Administrative Class of the relevant Portfolio on a relative basis because all of the classes are invested in the same portfolio of investments and that differences in performance among classes could principally be attributed to differences in the supervisory and administrative fees and distribution and servicing expenses of each class. The Board also considered that the investment objectives of certain of the Portfolios may not always be identical to those of the other funds in their respective peer groups and that the Lipper categories do not: separate funds based upon maturity or duration; account for the applicable Portfolios’ hedging strategies; distinguish between enhanced index and actively managed equity strategies; include as many subsets as the Portfolios offer (i.e., Portfolios may be placed in a “catch-all” Lipper category to which they do not properly belong); or account for certain fee waivers. The Board noted that, due to these differences, performance comparisons between certain of the Portfolios and their so-called peers may not be

particularly relevant to the consideration of Portfolio performance but found the comparative information supported its overall evaluation.

The Board noted that performance for a majority of the Portfolios has been mixed compared to their respective benchmark indexes over the five-year period ended March 31, 2018. The Board noted that, as of March 31, 2018, 70%, 23% and 92% of the Trust’s assets (based on Administrative Class performance) outperformed their respective benchmarks on a net-of-fees basis over the three-, five- and ten-year periods, respectively. The Board also discussed actions that have been taken by PIMCO to attempt to improve performance and took note of PIMCO’s plans to monitor performance going forward.

The Board considered PIMCO’s discussion of the intensive nature of managing bond funds, noting that it requires the management of a number of factors, including: varying maturities; prepayments; collateral management; counterparty management; pay-downs; credit and corporate events; workouts; derivatives; net new issuance in the bond market; and decreased market maker inventory levels. The Board noted that in addition to managing these factors, PIMCO must also balance risk controls and strategic positions in each portfolio it manages, including the Portfolios. Despite these challenges, the Board noted PIMCO’s ability to generate non-market correlated excess performance for its clients over time, including the Trust.

The Board ultimately concluded, within the context of all of its considerations in connection with the Agreements, that PIMCO’s performance record and process in managing the Portfolios indicates that its continued management is likely to benefit the Portfolios and their shareholders, and merits the approval of the renewal of the Agreements.

4. ADVISORY FEES, SUPERVISORY AND ADMINISTRATIVE FEES AND TOTAL EXPENSES

The Board considered that PIMCO seeks to price new funds and classes to scale. PIMCO reported to the Board that, in proposing fees for any Portfolio or class of shares, it considers a number of factors, including, but not limited to, the type and complexity of the services provided, the cost of providing services, the risk assumed by PIMCO in the development of products and the provision of services and the competitive marketplace for financial products. Fees charged to or proposed for different Portfolios for advisory services and supervisory and administrative services may vary in light of these various factors. The Board considered that portfolio pricing generally is not driven by comparison to passively-managed products.

In addition, PIMCO reported to the Board that it periodically reviews the fees charged to the Portfolios. The Board noted that, based upon this review, PIMCO may propose advisory fee or supervisory and administrative fee changes where (i) a Portfolio’s long-term performance warrants additional consideration; (ii) there is a notable aid to market

ANNUAL REPORT DECEMBER 31, 2018 51

Approval of Investment Advisory Contract and Other Agreements (Cont.)

position; (iii) a Portfolio’s fee does not reflect the current level of supervision or administrative fees provided to the Portfolio; or (iv) PIMCO would like to change a Portfolio’s overall strategic positioning.

The Board reviewed the advisory fees, supervisory and administrative fees and total expenses of the Portfolios (each as a percentage of average net assets) and compared such amounts with the average and median fee and expense levels of other similar funds. The Board also reviewed information relating to the sub-advisory fees paid to Research Affiliates with respect to applicable Portfolios, taking into account that PIMCO compensates Research Affiliates from the advisory fees paid by such Portfolios to PIMCO. With respect to advisory fees, the Board reviewed data from Broadridge that compared the average and median advisory fees of other funds in a “Peer Group” of comparable funds, as well as the universe of other similar funds. The Board noted that a number of Portfolios have total expense ratios that fall below the average and median expense ratios in their Peer Group and Lipper universe. In addition, the Board considered fee waivers in place for certain of the Portfolios and also noted the fee waivers in place with respect to the advisory fee and supervisory and administrative fee that might result from investments by applicable Portfolios in their respective wholly-owned subsidiaries. The Board also considered that PIMCO reviews the Portfolios’ fee levels and carefully considers changes where appropriate.

The Board also reviewed data comparing the Portfolios’ advisory fees to the standard and negotiated fee rates PIMCO charges to separate accounts, collective investment trusts and sub-advised clients with similar investment strategies. In cases where the fees for other clients were lower than those charged to the Portfolios, the Trustees noted that the differences in fees were attributable to various factors, including, but not limited to, differences in the advisory and other services provided by PIMCO to the Portfolios, differences in the number or extent of the services provided by PIMCO to the Portfolios, the manner in which similar portfolios may be managed, different requirements with respect to liquidity management and the implementation of other regulatory requirements, and the fact that separate accounts may have other contractual arrangements or arrangements across PIMCO strategies that justify different levels of fees. The Board considered that, with respect to collective investment trusts, PIMCO performs fewer or less extensive services because collective investment trusts are generally exempt from SEC regulation; investors in a collective investment trust may receive shareholder services from a trustee bank, rather than PIMCO; collective investment trusts have less regulatory disclosure; and the management structure of collective investment trusts differs from that of funds. The Trustees also considered that PIMCO faces increased entrepreneurial, legal and regulatory risk in sponsoring and managing mutual funds and ETFs as compared to separate accounts, external sub-advised funds or other investment products.

Regarding advisory fees charged by PIMCO in its capacity as sub-adviser to third party/unaffiliated funds, the Trustees took into account that such fees may be lower than the fees charged by PIMCO to serve as adviser to the Portfolios. The Trustees also took into account that there are various reasons for any such differences in fees, including, but not limited to, the fact that PIMCO may be subject to varying levels of entrepreneurial risk and regulatory requirements, differing legal liabilities on a contract-by-contract basis and different servicing requirements when PIMCO does not serve as the sponsor of a fund and is not principally responsible for all aspects of a fund’s investment program and operations as compared to when PIMCO serves as investment adviser and sponsor.

The Board considered the Portfolios’ supervisory and administrative fees, comparing them to similar funds in the report supplied by Broadridge. The Board also considered that as the Portfolios’ business has become increasingly complex and the number of Portfolios has grown over time, PIMCO has provided an increasingly broad array of fund supervisory and administrative functions. In addition, the Board considered the Trust’s unified fee structure, under which the Trust pays for the supervisory and administrative services it requires for one set fee. In return for this unified fee, PIMCO provides or procures supervisory and administrative services and bears the costs of various third party services required by the Portfolios, including audit, custodial, portfolio accounting, legal, transfer agency, sub-accounting and printing costs. The Board further considered that many other funds pay for comparable services separately, and thus it is difficult to directly compare the Trust’s unified supervisory and administrative fees with the fees paid by other funds for administrative services alone. The Board also considered that the unified supervisory and administrative fee leads to Portfolio fees that are fixed over the contract period, rather than variable. The Board noted that, although the unified fee structure does not have breakpoints, it implicitly reflects economies of scale by fixing the absolute level of Portfolio fees at competitive levels over the contract period even if the Portfolios’ operating costs rise when assets remain flat or decrease. Other factors the Board considered in assessing the unified fee include PIMCO’s approach of pricing Portfolios to scale at inception and reinvesting in other important areas of the business that support the Portfolios. The Board considered that the Portfolios’ unified fee structure meant that fees were not impacted by recent outflows in certain Portfolios, unlike funds without a unified fee structure, which may see increased expense ratios when fixed costs, such as service provider costs, are passed through to a smaller asset base. The Board considered historical advisory and supervisory and administrative fee reductions implemented for different Portfolios and classes, noting that the unified fee can be increased or decreased in subsequent contractual periods and is subject to the periodic reviews discussed above. The Board noted that, with few exceptions, PIMCO

52 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

has generally maintained Portfolio fees at the same level as implemented when the unified fee was adopted, and has reduced fees for a number of Portfolios in prior years. The Board concluded that the Portfolios’ supervisory and administrative fees were reasonable in relation to the value of the services provided, including the services provided to different classes of shareholders, and that the expenses assumed contractually by PIMCO under the Supervision and Administration Agreement represent, in effect, a cap on overall Portfolio fees during the contractual period, which is beneficial to the Portfolios and their shareholders.

The Board considered the Portfolios’ total expenses and discussed with PIMCO those Portfolios and/or classes of Portfolios that had above median total expenses. The Board noted that many of the Portfolios are unique products that have few peers, if any, and cannot easily be grouped with comparable funds. Upon comparing the Portfolios’ total expenses to other funds in the “Peer Groups” provided by Broadridge, the Board found total expenses of each Portfolio to be reasonable.

The Trustees also considered the advisory fees charged to the Portfolios that operate as funds of funds (the “Funds of Funds”) and the advisory services provided in exchange for such fees. The Trustees determined that such services were in addition to the advisory services provided to the underlying funds in which the Funds of Funds may invest and, therefore, such services were not duplicative of the advisory services provided to the underlying funds. The Board also considered the various fee waiver agreements in place for the Funds of Funds. The Board noted that PIMCO is continuing waivers for these Funds of Funds, as well as for certain other Portfolios of the Trust.

Based on the information presented by PIMCO, Research Affiliates and Broadridge, members of the Board determined, in the exercise of their business judgment, that the level of the advisory fees and supervisory and administrative fees charged by PIMCO under the Agreements, as well as the total expenses of each Portfolio, after the proposals to decrease the management fee, are reasonable.

5. ADVISER COSTS, LEVEL OF PROFITS AND ECONOMIES OF SCALE

The Board reviewed information regarding PIMCO’s costs of providing services to the Funds as a whole, as well as the resulting level of profits to PIMCO under both the adjusted asset profitability method and the profit and loss profitability method, which were each utilized to calculate profitability. To the extent applicable, the Board also reviewed information regarding the portion of a Portfolio’s advisory fee retained by PIMCO, following the payment of sub-advisory fees to Research Affiliates, with respect to the Portfolio. Additionally, the Board noted that profit margins with respect to the Trust shows that the Trust is profitable, although less so than PIMCO Funds due to payments made

by PIMCO to participating insurance companies. The Board further noted PIMCO’s engagement of a third party to review and to make recommendations regarding PIMCO’s processes supporting its profitability estimation materials. The Board also noted that it had received information regarding the structure and manner in which PIMCO’s investment professionals were compensated, and PIMCO’s view of the relationship of such compensation to the attraction and retention of quality personnel. The Board considered PIMCO’s need to invest in global infrastructure, technology capabilities, risk management processes and qualified personnel to reinforce and offer new services and to accommodate changing regulatory requirements.

With respect to potential economies of scale, the Board noted that PIMCO shares the benefits of economies of scale with the Portfolios and their shareholders in a number of ways, including investing in portfolio and trade operations management, firm technology, middle and back office support, legal and compliance, and fund administration logistics, senior management supervision, governance and oversight of those services, and through fee reductions or waivers, the pricing of Portfolios to scale from inception, and the enhancement of services provided to the Portfolios in return for fees paid. The Board reviewed the history of the Portfolios’ fee structure. The Board considered that the Portfolios’ unified fee rates had been set competitively and/or priced to scale from inception, had been held steady during the contractual period at that scaled competitive rate for most Portfolios as assets grew, or as assets declined in the case of some Portfolios, and continued to be competitive compared with peers. The Board also considered that the unified fee is a transparent means of informing a Portfolio’s shareholders of the fees associated with the Portfolio, and that the Portfolio bears certain expenses that are not covered by the advisory fee or the unified fee. The Board further considered the challenges that arise when managing large funds, which can result in certain “diseconomies” of scale and noted that PIMCO has continued to reinvest in many areas of the business to support the Portfolios.

The Trustees considered that the unified fee has provided inherent economies of scale because a Portfolio maintains competitive fixed fees over the annual contract period even if the particular Portfolio’s assets decline and/or operating costs rise. The Trustees further considered that, in contrast, breakpoints may be a proxy for charging higher fees on lower asset levels and that when a fund’s assets decline, breakpoints may reverse, which causes expense ratios to increase. The Trustees also considered that, unlike the Portfolios’ unified fee structure, funds with “pass through” administrative fee structures may experience increased expense ratios when fixed dollar fees are charged against declining fund assets. The Trustees also considered that the unified fee protects shareholders from a rise in operating costs that may result from, among other things, PIMCO’s investments in various business enhancements and infrastructure, including those referenced above. The Trustees noted that PIMCO’s investments in these areas are extensive.

ANNUAL REPORT DECEMBER 31, 2018 53

Approval of Investment Advisory Contract and Other Agreements (Cont.)

(Unaudited)

The Board concluded that the Portfolios’ cost structures were reasonable and that PIMCO is appropriately sharing economies of scale, if any, through the Portfolios’ unified fee structure, generally pricing Portfolios to scale at inception and reinvesting in its business to provide enhanced and expanded services to the Portfolios and their shareholders.

6. ANCILLARY BENEFITS

The Board considered other benefits realized by PIMCO and its affiliates as a result of PIMCO’s relationship with the Trust. Such benefits may include possible ancillary benefits to PIMCO’s institutional investment management business due to the reputation and market penetration of the Trust or third party service providers’ relationship-level fee concessions, which decrease fees paid by PIMCO. The Board also considered that affiliates of PIMCO provide distribution and/or shareholder services to the Portfolios and their shareholders, for which they may be compensated through distribution and servicing fees paid pursuant to the Portfolios’ Rule 12b-1 plans or otherwise. The Board reviewed PIMCO’s soft dollar policies and procedures, noting that while PIMCO has the authority to receive the benefit of research provided by broker-dealers executing portfolio transactions on behalf of the Portfolios, it has adopted a policy not to enter into contractual soft dollar arrangements.

7. CONCLUSIONS

Based on their review, including their comprehensive consideration and evaluation of each of the broad factors and information summarized above, the Independent Trustees and the Board as a whole concluded that the nature, extent and quality of the services rendered to the Portfolios by PIMCO and Research Affiliates supported the renewal of the Agreements and the Asset Allocation Agreement. The Independent Trustees and the Board as a whole concluded that the Agreements and the Asset Allocation Agreement continued to be fair and reasonable to the Portfolios and their shareholders, that the Portfolios’ shareholders received reasonable value in return for the fees paid to PIMCO by the Portfolios under the Agreements and the fees paid to Research Affiliates by PIMCO under the Asset Allocation Agreement, and that the renewal of the Agreements and the Asset Allocation Agreement was in the best interests of the Portfolios and their shareholders.

54 PIMCO VARIABLE INSURANCE TRUST

General Information

Investment Adviser and Administrator

Pacific Investment Management Company LLC

650 Newport Center Drive

Newport Beach, CA 92660

Distributor

PIMCO Investments LLC

1633 Broadway

New York, NY 10019

Custodian

State Street Bank and Trust Company

801 Pennsylvania Avenue

Kansas City, MO 64105

Transfer Agent

DST Asset Manager Solutions, Inc.

430 W 7th Street STE 219024

Kansas City, MO 64105-1407

Legal Counsel

Dechert LLP

1900 K Street, N.W.

Washington, D.C. 20006

Independent Registered Public Accounting Firm

PricewaterhouseCoopers LLP

1100 Walnut Street, Suite 1300

Kansas City, MO 64106

This report is submitted for the general information of the shareholders of the Portfolio listed on the Report cover.

pimco.com/pvit

PVIT14AR_123118

PIMCO VARIABLE INSURANCE TRUST

Annual Report

December 31, 2018

PIMCO Real Return Portfolio

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, you may not be receiving paper copies of the Portfolio’s shareholder reports from the insurance company that offers your contract unless you specifically request paper copies from the insurance company or from your financial intermediary. Instead, the shareholder reports will be made available on a website, and the insurance company will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the insurance company electronically by following the instructions provided by the insurance company.

You may elect to receive all future reports in paper free of charge from the insurance company. You should contact the insurance company if you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all portfolio companies available under your contract at the insurance company.

Table of Contents

	Page
Chairman’s Letter		2
Important Information About the PIMCO Real Return Portfolio		4
Portfolio Summary		6
Expense Example		7
Financial Highlights		8
Statement of Assets and Liabilities		10
Statement of Operations		11
Statements of Changes in Net Assets		12
Statement of Cash Flows		13
Schedule of Investments		14
Notes to Financial Statements		28
Report of Independent Registered Public Accounting Firm		47
Glossary		48
Federal Income Tax Information		49
Management of the Trust		50
Privacy Policy		52
Approval of Investment Advisory Contract and Other Agreements		53

This material is authorized for use only when preceded or accompanied by the current PIMCO Variable Insurance Trust (the “Trust”) prospectus for the Portfolio. (The variable product prospectus may be obtained by contacting your Investment Consultant.)

Chairman’s Letter

Dear PIMCO Variable Insurance Trust Shareholder,

Following this letter is the PIMCO Variable Insurance Trust Annual Report, which covers the 12-month reporting period ended December 31, 2018. On the subsequent pages you will find specific details regarding investment results and discussion of the factors that most affected performance during the reporting period.

For the 12-month reporting period ended December 31, 2018

The U.S. economy continued to expand during the reporting period. Looking back, U.S. gross domestic product (“GDP”) grew at an annual pace of 2.2% during the first quarter of 2018. During the second quarter of 2018, GDP growth rose to an annual pace of 4.2%, the strongest since the third quarter of 2014. GDP then expanded at an annual pace of 3.4% during the third quarter of the year. Finally, the Commerce Department’s initial reading for fourth-quarter 2018 GDP has been delayed due to the partial government shutdown.

The Federal Reserve (the “Fed”) continued to normalize monetary policy during the reporting period. During its meetings that concluded in March, June, September and December 2018, the Fed raised the federal funds rate in 0.25% increments. The Fed’s December rate hike pushed the federal funds rate to a range between 2.25% and 2.50%. In addition, the Fed continued to reduce its balance sheet during the reporting period.

Economic activity outside the U.S. initially accelerated during the reporting period, but moderated as it progressed. Against this backdrop, the European Central Bank (the “ECB”) and the Bank of Japan largely maintained their highly accommodative monetary policies, while other central banks took a more hawkish stance. The Bank of England raised rates at its meeting in August 2018 and the Bank of Canada raised rates twice during the reporting period. Meanwhile, the ECB ended its quantitative easing program in December 2018, but indicated that it does not expect to raise interest rates “at least through the summer of 2019.”

The U.S. Treasury yield curve flattened during the reporting period as short-term rates moved up more than longer-term rates. In our view, the increase in rates at the short end of the yield curve was mostly due to Fed interest rate increases. The yield on the benchmark 10-year U.S. Treasury note was 2.69% at the end of the reporting period, up from 2.40% on December 31, 2017. U.S. Treasuries, as measured by the Bloomberg Barclays U.S. Treasury Index, returned 0.86% over the 12 months ended December 31, 2018. Meanwhile, the Bloomberg Barclays U.S. Aggregate Bond Index, a widely used index of U.S. investment grade bonds, returned 0.01% over the period. Riskier fixed income asset classes, including high yield corporate bonds and emerging market debt, generated weak results versus the broad U.S. market. The ICE BofAML U.S. High Yield Index returned -2.27% over the reporting period, whereas emerging market external debt, as represented by the JPMorgan Emerging Markets Bond Index (EMBI) Global, returned -4.61% over the reporting period. Emerging market local bonds, as represented by the JPMorgan Government Bond Index-Emerging Markets Global Diversified Index (Unhedged), returned -6.21% over the period.

Global equities produced poor results during the reporting period. U.S. equities moved sharply higher over the first nine months of the period. We believe this rally was driven by a number of factors, including corporate profits that often exceeded expectations. However, U.S. equities fell sharply during the fourth quarter of 2018. We believe this was triggered by a number of factors, including signs of moderating global growth, concerns over future Fed rate hikes, the ongoing trade dispute between the U.S. and China and the partial U.S. government shutdown. All told, U.S. equities, as represented by the S&P 500 Index, returned -4.38% during the reporting period. Elsewhere, emerging market equities, as measured by the MSCI Emerging Markets Index, returned -14.58% during the reporting period, whereas global equities, as represented by the MSCI World Index, returned -8.71%. Elsewhere, Japanese equities, as represented by the Nikkei 225 Index (in JPY), returned -10.39% during the reporting period and European equities, as represented by the MSCI Europe Index (in EUR), returned -10.57%.

Commodity prices fluctuated and generally declined during the reporting period. When the reporting period began, West Texas crude oil was approximately $65 a barrel, but by the end it was roughly $45 a barrel. This was driven in

2 PIMCO VARIABLE INSURANCE TRUST

part by increased supply and declining global demand. Elsewhere, gold and copper prices also moved lower during the reporting period.

Finally, during the reporting period the foreign exchange markets experienced periods of volatility, due in part to signs of decoupling economic growth and central bank policies, along with a number of geopolitical events. The U.S. dollar produced mixed results against other major currencies during the reporting period. For example, the U.S. dollar appreciated 4.71% and 5.90% versus the euro and the British pound, respectively, whereas the U.S. dollar depreciated 2.66% versus the yen during the reporting period.

Thank you for the assets you have placed with us. We deeply value your trust, and we will continue to work diligently to meet your broad investment needs.

  Sincerely,     Brent R. Harris Chairman of the Board,
PIMCO Variable Insurance Trust  

Past performance is no guarantee of future results. Unless otherwise noted, index returns reflect the reinvestment of income distributions and capital gains, if any, but do not reflect fees, brokerage commissions or other expenses of investing. It is not possible to invest directly in an unmanaged index.

ANNUAL REPORT DECEMBER 31, 2018 3

Important Information About the PIMCO Real Return Portfolio

PIMCO Variable Insurance Trust (the “Trust”) is an open-end management investment company that includes the PIMCO Real Return Portfolio (the “Portfolio”). The Portfolio is only available as a funding vehicle under variable life insurance policies or variable annuity contracts issued by insurance companies (“Variable Contracts”). Individuals may not purchase shares of the Portfolio directly. Shares of the Portfolio also may be sold to qualified pension and retirement plans outside of the separate account context.

We believe that bond funds have an important role to play in a well-diversified investment portfolio. It is important to note, however, that in an environment where interest rates may trend upward, rising rates would negatively impact the performance of most bond funds, and fixed income securities and other instruments held by the Portfolio are likely to decrease in value. A wide variety of factors can cause interest rates to rise (e.g., central bank monetary policies, inflation rates, general economic conditions, etc.). In addition, changes in interest rates can be sudden and unpredictable, and there is no guarantee that management will anticipate such movement accurately. The Portfolio may lose money as a result of movements in interest rates.

As of the date of this report, interest rates in the U.S. and many parts of the world, including certain European countries, are at or near historically low levels. Thus, the Portfolio currently faces a heightened level of interest rate risk, especially since the Fed has ended its quantitative easing program and has begun, and may continue, to raise interest rates. To the extent the Fed continues to raise interest rates, there is a risk that rates across the financial system may rise. Further, while bond markets have steadily grown over the past three decades, dealer inventories of corporate bonds are near historic lows in relation to market size. As a result, there has been a significant reduction in the ability of dealers to “make markets.”

Bond funds and individual bonds with a longer duration (a measure used to determine the sensitivity of a security’s price to changes in interest rates) tend to be more sensitive to changes in interest rates, usually making them more volatile than securities or funds with shorter durations. All of the factors mentioned above, individually or collectively, could lead to increased volatility and/or lower liquidity in the fixed income markets or negatively impact the Portfolio’s performance or cause the Portfolio to incur losses. As a result, the Portfolio may

experience increased shareholder redemptions, which, among other things, could further reduce the net assets of the Portfolio.

The Portfolio may be subject to various risks as described in the Portfolio’s prospectus and in the Principal Risks in the Notes to Financial Statements.

The geographical classification of foreign (non-U.S.) securities in this report are classified by the country of incorporation of a holding. In certain instances, a security’s country of incorporation may be different from its country of economic exposure.

The United States presidential administration’s enforcement of tariffs on goods from other countries, with a focus on China, has contributed to international trade tensions and may impact portfolio securities.

The United Kingdom’s decision to leave the European Union may impact Portfolio returns. This decision may cause substantial volatility in foreign exchange markets, lead to weakness in the exchange rate of the British pound, result in a sustained period of market uncertainty, and destabilize some or all of the other European Union member countries and/or the Eurozone.

On the Portfolio Summary page in this Shareholder Report, the Average Annual Total Return table and Cumulative Returns chart measure performance assuming that any dividend and capital gain distributions were reinvested. The Cumulative Returns chart reflects only Administrative Class performance. Performance may vary by share class based on each class’s expense ratios. The Portfolio measures its performance against at least one broad-based securities market index (“benchmark index”). The benchmark index does not take into account fees, expenses, or taxes. The Portfolio’s past performance, before and after taxes, is not necessarily an indication of how the Portfolio will perform in the future. There is no assurance that the Portfolio, even if the Portfolio has experienced high or unusual performance for one or more periods, will experience similar levels of performance in the future. High performance is defined as a significant increase in either 1) the Portfolio’s total return in excess of that of the Portfolio’s benchmark between reporting periods or 2) the Portfolio’s total return in excess of the Portfolio’s historical returns between reporting periods. Unusual performance is defined as a significant change in the Portfolio’s performance as compared to one or more previous reporting periods.

The following table discloses the inception dates of the Portfolio and its respective share classes along with the Portfolio’s diversification status as of period end:

Portfolio Name	Portfolio Inception		Institutional Class		Administrative Class		Advisor Class		Diversification Status
PIMCO Real Return Portfolio		09/30/99		04/10/00		09/30/99		02/28/06		Diversified

4 PIMCO VARIABLE INSURANCE TRUST

An investment in the Portfolio is not a bank deposit and is not guaranteed or insured by the Federal Deposit Insurance Corporation (“FDIC”) or any other government agency. It is possible to lose money on investments in the Portfolio.

The Trustees are responsible generally for overseeing the management of the Trust. The Trustees authorize the Trust to enter into service agreements with the Adviser, the Distributor, the Administrator and other service providers in order to provide, and in some cases authorize service providers to procure through other parties, necessary or desirable services on behalf of the Trust and the Portfolio. Shareholders are not parties to or third-party beneficiaries of such service agreements. Neither this Portfolio’s prospectus nor summary prospectus, the Trust’s Statement of Additional Information (“SAI”), any contracts filed as exhibits to the Trust’s registration statement, nor any other communications, disclosure documents or regulatory filings (including this report) from or on behalf of the Trust or the Portfolio creates a contract between or among any shareholder of the Portfolio, on the one hand, and the Trust, the Portfolio, a service provider to the Trust or the Portfolio, and/or the Trustees or officers of the Trust, on the other hand. The Trustees (or the Trust and its officers, service providers or other delegates acting under authority of the Trustees) may amend the most recent prospectus or use a new prospectus, summary prospectus or SAI with respect to the Portfolio or the Trust, and/or amend, file and/or issue any other communications, disclosure documents or regulatory filings, and may amend or enter into any contracts to which the Trust or the Portfolio is a party, and interpret the investment objective(s), policies, restrictions and contractual provisions applicable to the Portfolio, without shareholder input or approval, except in circumstances in which shareholder approval is specifically required by law (such as changes to fundamental investment policies) or where a shareholder approval requirement is specifically disclosed in the Trust’s then-current prospectus or SAI.

PIMCO has adopted written proxy voting policies and procedures (“Proxy Policy”) as required by Rule 206(4)-6 under the Investment Advisers Act of 1940, as amended. The Proxy Policy has been adopted by the Trust as the policies and procedures that PIMCO will use when voting proxies on behalf of the Portfolio. A description of the policies and procedures that PIMCO uses to vote proxies relating to portfolio securities of the Portfolio, and information about how the Portfolio voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, are available without charge, upon request, by calling the Trust at (888) 87-PIMCO, on the Portfolio’s website at www.pimco.com/pvit, and on the Securities and Exchange Commission’s (“SEC”) website at www.sec.gov.

The Trust files a complete schedule of the Portfolio’s holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. A copy of the Portfolio’s Form N-Q is available on the SEC’s website at www.sec.gov. A copy of the Portfolio’s Form N-Q is also available without charge, upon request, by calling the Trust at (888) 87-PIMCO and on the Portfolio’s website at www.pimco.com/pvit.

The SEC adopted a rule that, beginning in 2021, generally will allow shareholder reports to be delivered to investors by providing access to such reports online free of charge and by mailing a notice that the report is electronically available. Pursuant to the rule, investors may still elect to receive a complete shareholder report in the mail. Instructions for electing to receive paper copies of the Portfolio’s shareholder reports going forward may be found on the front cover of this report.

The SEC adopted amendments to certain disclosure requirements relating to open-end investment companies’ liquidity risk management programs. Effective December 1, 2019, large fund complexes will be required to include in their shareholder reports a discussion of their liquidity risk management programs’ operations over the past year.

ANNUAL REPORT DECEMBER 31, 2018 5

PIMCO Real Return Portfolio

Cumulative Returns Through December 31, 2018

$10,000 invested at the end of the month when the Portfolio’s Administrative Class commenced operations.

Allocation Breakdown as of 12/31/2018^†§

U.S. Treasury Obligations	67.2%
U.S. Government Agencies	11.9%
Corporate Bonds & Notes	6.5%
Short-Term Instruments‡	4.9%
Asset-Backed Securities	4.3%
Sovereign Issues	3.7%
Non-Agency Mortgage-Backed Securities	1.5%

^†  % of Investments, at value.

^§  Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.

^‡  Includes Central Funds Used for Cash Management Purposes.

Average Annual Total Return for the period ended December 31, 2018
		1 Year		5 Years		10 Years		Inception≈
	PIMCO Real Return Portfolio Institutional Class		(2.06)%		1.51%		4.35%		5.50%
	PIMCO Real Return Portfolio Administrative Class		(2.21)%		1.35%		4.20%		5.46%
	PIMCO Real Return Portfolio Advisor Class		(2.31)%		1.25%		4.09%		3.39%
	Bloomberg Barclays U.S. TIPS Index±		(1.26)%		1.69%		3.64%		5.28%	¨

All Portfolio returns are net of fees and expenses.

^≈ For class inception dates please refer to the Important Information.

^¨ Average annual total return since 04/10/2000.

^± Bloomberg Barclays U.S. TIPS Index is an unmanaged market index comprised of all U.S. Treasury Inflation-Protected Securities rated investment grade (Baa3 or better), have at least one year to final maturity, and at least $500 million par amount outstanding.

It is not possible to invest directly in an unmanaged index.

Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. The Portfolio’s performance does not reflect the deduction of additional charges and expenses imposed in connection with investing in Variable Contracts, which will reduce returns. Differences in the Portfolio’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the prices of individual positions (which may be sourced from different pricing vendors or other sources) used by the Portfolio and the index. For performance current to the most recent month-end, visit www.pimco.com/pvit or via (888) 87-PIMCO.

The Portfolio’s total annual operating expense ratio in effect as of period end were 0.89% for Institutional Class shares, 1.04% for Administrative Class shares, and 1.14% for Advisor Class shares. Details regarding any changes to the Portfolio’s operating expenses, subsequent to period end, can be found in the Portfolio’s current prospectus, as supplemented.

Investment Objective and Strategy Overview

PIMCO Real Return Portfolio seeks maximum real return, consistent with preservation of real capital and prudent investment management, by investing under normal circumstances at least 80% of its net assets in inflation-indexed bonds of varying maturities issued by the U.S. and non-U.S. governments, their agencies or instrumentalities and corporations, which may be represented by forwards or derivatives such as options, futures contracts or swap agreements. Assets not invested in inflation-indexed bonds may be invested in other types of Fixed Income Instruments. “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. Inflation-indexed bonds are fixed income securities that are structured to provide protection against inflation. Portfolio strategies may change from time to time. Please refer to the Portfolio’s current prospectus for more information regarding the Portfolio’s strategy.

Portfolio Insights

The following affected performance during the reporting period:

» Exposure to U.S. Treasury Inflation-Protected Securities (“TIPS”) detracted from absolute performance as U.S. TIPS, as measured by the Bloomberg Barclays U.S. TIPS Index, posted negative returns.

» Overweight exposure to U.S. real duration detracted from relative performance, as U.S. real yields rose.

» Underweight exposure to U.K. nominal duration over a portion of the period detracted from relative performance, as U.K. nominal yields fell over the same period.

» Exposure to external emerging market debt detracted from relative performance, as external emerging market debt yield spreads widened.

» Overweight exposure to the Argentine peso detracted from relative performance, as the currency depreciated.

» Underweight exposure to U.S. nominal duration contributed to relative performance, as U.S. nominal yields rose.

6 PIMCO VARIABLE INSURANCE TRUST

Expense Example PIMCO Real Return Portfolio

Example

As a shareholder of the Portfolio, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees (if applicable), and other Portfolio expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in the Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds.

The Expense Example does not reflect any fees or other expenses imposed by the Variable Contracts. If it did, the expenses reflected in the Expense Example would be higher. The Example is based on an investment of $1,000 invested at the beginning of the period and held from July 1, 2018 to December 31, 2018 unless noted otherwise in the table and footnotes below.

Actual Expenses

The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60), then multiply the result by the number in the appropriate row for your share class, in the column titled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other portfolios. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other portfolios.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information under the heading “Hypothetical (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different portfolios. In addition, if these transactional costs were included, your costs would have been higher.

Expense ratios may vary period to period because of various factors, such as an increase in expenses that are not covered by the management fees such as fees and expenses of the independent trustees and their counsel, extraordinary expenses and interest expense.

	Actual						Hypothetical (5% return before expenses)
	Beginning Account Value (07/01/18)		Ending Account Value (12/31/18)		Expenses Paid During Period*		Beginning Account Value (07/01/18)		Ending Account Value (12/31/18)		Expenses Paid During Period*		Net Annualized Expense Ratio**
Institutional Class	$	1,000.00	$	982.10	$	6.74	$	1,000.00	$	1,018.40	$	6.87		1.35	%
Administrative Class		1,000.00		981.40		7.49		1,000.00		1,017.64		7.63		1.50
Advisor Class		1,000.00		980.90		7.99		1,000.00		1,017.14		8.13		1.60

* Expenses Paid During Period are equal to the net annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Overall fees and expenses of investing in the Portfolio will be higher because the example does not reflect variable contract fees and expenses.

** Net Annualized Expense Ratio is reflective of any applicable contractual fee waivers and/or expense reimbursements or voluntary fee waivers. Details regarding fee waivers, if any, can be found in Note 9, Fees and Expenses, in the Notes to Financial Statements.

ANNUAL REPORT DECEMBER 31, 2018 7

Financial Highlights PIMCO Real Return Portfolio

			Investment Operations								Less Distributions(b)
Selected Per Share Data for the Year Ended^:	Net Asset Value Beginning of Year		Net Investment Income (Loss)(a)		Net Realized/ Unrealized Gain (Loss)			Total			From Net Investment Income			From Net Realized Capital Gain		Tax Basis Return of Capital			Total
Institutional Class
12/31/2018	$	12.42	$	0.34	$	(0.59	)	$	(0.25	)	$	(0.32	)	$	0.00	$	0.00		$	(0.32	)
12/31/2017		12.27		0.32		0.14			0.46			(0.26	)		0.00		(0.05	)		(0.31	)
12/31/2016		11.93		0.30		0.34			0.64			(0.18	)		0.00		(0.12	)		(0.30	)
12/31/2015		12.81		0.12		(0.45	)		(0.33	)		(0.55	)		0.00		0.00			(0.55	)
12/31/2014		12.60		0.30		0.11			0.41			(0.20	)		0.00		0.00			(0.20	)
Administrative Class
12/31/2018		12.42		0.32		(0.59	)		(0.27	)		(0.30	)		0.00		0.00			(0.30	)
12/31/2017		12.27		0.30		0.14			0.44			(0.24	)		0.00		(0.05	)		(0.29	)
12/31/2016		11.93		0.29		0.33			0.62			(0.16	)		0.00		(0.12	)		(0.28	)
12/31/2015		12.81		0.09		(0.44	)		(0.35	)		(0.53	)		0.00		0.00			(0.53	)
12/31/2014		12.60		0.28		0.11			0.39			(0.18	)		0.00		0.00			(0.18	)
Advisor Class
12/31/2018		12.42		0.32		(0.60	)		(0.28	)		(0.29	)		0.00		0.00			(0.29	)
12/31/2017		12.27		0.29		0.14			0.43			(0.23	)		0.00		(0.05	)		(0.28	)
12/31/2016		11.93		0.28		0.33			0.61			(0.15	)		0.00		(0.12	)		(0.27	)
12/31/2015		12.81		0.09		(0.45	)		(0.36	)		(0.52	)		0.00		0.00			(0.52	)
12/31/2014		12.60		0.27		0.11			0.38			(0.17	)		0.00		0.00			(0.17	)

^ A zero balance may reflect actual amounts rounding to less than $0.01 or 0.01%.

^(a)  Per share amounts based on average number of shares outstanding during the year.

^(b)  The tax characterization of distributions is determined in accordance with Federal income tax regulations. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

8 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

					Ratios/Supplemental Data
							Ratios to Average Net Assets
Net Asset Value End of Year		Total Return			Net Assets End of Year (000s)		Expenses			Expenses Excluding Waivers			Expenses Excluding Interest Expense			Expenses Excluding Interest Expense and Waivers			Net Investment Income (Loss)			Portfolio Turnover Rate
$	11.85		(2.06	)%	$	180,506		1.27	%		1.27	%		0.50	%		0.50	%		2.80	%		234	%
	12.42		3.81			181,673		0.89			0.89			0.50			0.50			2.60			157
	12.27		5.35			154,072		0.76			0.76			0.50			0.50			2.42			132
	11.93		(2.56	)		168,482		0.63			0.63			0.50			0.50			0.91			114
	12.81		3.25			161,389		0.55			0.55			0.50			0.50			2.27			96
	11.85		(2.21	)		1,266,321		1.42			1.42			0.65			0.65			2.67			234
	12.42		3.65			1,476,888		1.04			1.04			0.65			0.65			2.40			157
	12.27		5.19			1,789,709		0.91			0.91			0.65			0.65			2.38			132
	11.93		(2.70	)		2,037,284		0.78			0.78			0.65			0.65			0.71			114
	12.81		3.09			2,393,913		0.70			0.70			0.65			0.65			2.19			96
	11.85		(2.31	)		386,746		1.52			1.52			0.75			0.75			2.60			234
	12.42		3.55			520,684		1.14			1.14			0.75			0.75			2.35			157
	12.27		5.09			506,438		1.01			1.01			0.75			0.75			2.31			132
	11.93		(2.80	)		513,250		0.88			0.88			0.75			0.75			0.67			114
	12.81		2.99			481,759		0.80			0.80			0.75			0.75			2.06			96

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 9

Statement of Assets and Liabilities PIMCO Real Return Portfolio

(Amounts in thousands†, except per share amounts)	December 31, 2018
Assets:
Investments, at value
Investments in securities*	$	2,914,397
Investments in Affiliates		75,916
Financial Derivative Instruments
Exchange-traded or centrally cleared		1,905
Over the counter		5,771
Deposits with counterparty		7,723
Foreign currency, at value		5,319
Receivable for investments sold		210,145
Receivable for investments sold on a delayed-delivery basis		9,532
Receivable for TBA investments sold		431,291
Receivable for Portfolio shares sold		1,136
Interest and/or dividends receivable		10,859
Dividends receivable from Affiliates		95
Total Assets		3,674,089
Liabilities:
Borrowings & Other Financing Transactions
Payable for sale-buyback transactions	$	1,041,555
Payable for short sales		44,208
Financial Derivative Instruments
Exchange-traded or centrally cleared		3,303
Over the counter		2,883
Payable for investments purchased		11,573
Payable for investments in Affiliates purchased		95
Payable for TBA investments purchased		715,792
Deposits from counterparty		11,302
Payable for Portfolio shares redeemed		8,692
Overdraft due to custodian		88
Accrued investment advisory fees		380
Accrued supervisory and administrative fees		380
Accrued distribution fees		80
Accrued servicing fees		158
Other liabilities		27
Total Liabilities		1,840,516
Net Assets	$	1,833,573
Net Assets Consist of:
Paid in capital	$	2,085,568
Distributable earnings (accumulated loss)		(251,995	)
Net Assets	$	1,833,573
Net Assets:
Institutional Class	$	180,506
Administrative Class		1,266,321
Advisor Class		386,746
Shares Issued and Outstanding:
Institutional Class		15,230
Administrative Class		106,846
Advisor Class		32,632
Net Asset Value Per Share Outstanding:
Institutional Class	$	11.85
Administrative Class		11.85
Advisor Class		11.85
Cost of investments in securities	$	2,985,521
Cost of investments in Affiliates	$	75,901
Cost of foreign currency held	$	5,299
Proceeds received on short sales	$	43,292
Cost or premiums of financial derivative instruments, net	$	(6,542	)
* Includes repurchase agreements of:	$	596

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

10 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

Statement of Operations PIMCO Real Return Portfolio

(Amounts in thousands†)	Year Ended December 31, 2018
Investment Income:
Interest	$	83,287
Dividends from Investments in Affiliates		275
Total Income		83,562
Expenses:
Investment advisory fees		5,099
Supervisory and administrative fees		5,099
Servicing fees - Administrative Class		2,065
Distribution and/or servicing fees - Advisor Class		1,207
Trustee fees		59
Interest expense		15,608
Miscellaneous expense		1
Total Expenses		29,138
Net Investment Income (Loss)		54,424
Net Realized Gain (Loss):
Investments in securities		(46,014	)
Investments in Affiliates		27
Exchange-traded or centrally cleared financial derivative instruments		12,978
Over the counter financial derivative instruments		11,062
Foreign currency		(981	)
Net Realized Gain (Loss)		(22,928	)
Net Change in Unrealized Appreciation (Depreciation):
Investments in securities		(81,822	)
Investments in Affiliates		13
Exchange-traded or centrally cleared financial derivative instruments		(10,503	)
Over the counter financial derivative instruments		14,184
Foreign currency assets and liabilities		(138	)
Net Change in Unrealized Appreciation (Depreciation)		(78,266	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	(46,770	)

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 11

Statements of Changes in Net Assets PIMCO Real Return Portfolio

(Amounts in thousands†)	Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets from:
Operations:
Net investment income (loss)	$	54,424		$	53,907
Net realized gain (loss)		(22,928	)		(35,786	)
Net change in unrealized appreciation (depreciation)		(78,266	)		61,521
Net Increase (Decrease) in Net Assets Resulting from Operations		(46,770	)		79,642
Distributions to Shareholders:
From net investment income and/or net realized capital gains*
Institutional Class		(4,703	)		(3,530	)
Administrative Class		(34,114	)		(30,279	)
Advisor Class		(11,632	)		(9,717	)
Tax basis return of capital
Institutional Class		0			(656	)
Administrative Class		0			(6,183	)
Advisor Class		0			(2,042	)
Total Distributions(a)		(50,449	)		(52,407	)
Portfolio Share Transactions:
Net increase (decrease) resulting from Portfolio share transactions**		(248,453	)		(298,209	)
Total Increase (Decrease) in Net Assets		(345,672	)		(270,974	)
Net Assets:
Beginning of year		2,179,245			2,450,219
End of year	$	1,833,573		$	2,179,245

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

* See Note 2, New Accounting Pronouncements, in the Notes to Financial Statements for more information.

** See Note 14, Shares of Beneficial Interest, in the Notes to Financial Statements.

^(a)  The tax characterization of distributions is determined in accordance with Federal income tax regulations. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

12 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

Statement of Cash Flows

Year Ended December 31, 2018
(Amounts in thousands†)	PIMCO Real Return Portfolio
Cash Flows Provided by (Used for) Operating Activities:
Net increase (decrease) in net assets resulting from operations	$	(46,770	)
Adjustments to Reconcile Net Increase (Decrease) in Net Assets from Operations to Net Cash Provided by (Used for) Operating Activities:
Purchases of long-term securities		(6,911,311	)
Proceeds from sales of long-term securities		6,887,442
(Purchases) Proceeds from sales of short-term portfolio investments, net		90,358
(Increase) decrease in deposits with counterparty		(1,733	)
(Increase) decrease in receivable for investments sold		(76,132	)
(Increase) decrease in interest and/or dividends receivable		718
(Increase) decrease in dividends receivable from Affiliates		(18	)
Proceeds from (Payments on) exchange-traded or centrally cleared financial derivative instruments		4,019
Proceeds from (Payments on) over the counter financial derivative instruments		12,706
Increase (decrease) in payable for investments purchased		104,554
Increase (decrease) in deposits from counterparty		10,490
Increase (decrease) in accrued investment advisory fees		(95	)
Increase (decrease) in accrued supervisory and administrative fees		(95	)
Increase (decrease) in accrued distribution fees		(33	)
Increase (decrease) in accrued servicing fees		(34	)
Proceeds from (Payments on) short sales transactions, net		(23,145	)
Proceeds from (Payments on) foreign currency transactions		(1,119	)
Increase (decrease) in other liabilities		(13	)
Net Realized (Gain) Loss
Investments in securities		46,014
Investments in Affiliates		(27	)
Exchange-traded or centrally cleared financial derivative instruments		(12,978	)
Over the counter financial derivative instruments		(11,062	)
Foreign currency		981
Net Change in Unrealized (Appreciation) Depreciation
Investments in securities		81,822
Investments in Affiliates		(13	)
Exchange-traded or centrally cleared financial derivative instruments		10,503
Over the counter financial derivative instruments		(14,184	)
Foreign currency assets and liabilities		138
Net amortization (accretion) on investments		8,883
Net Cash Provided by (Used for) Operating Activities		159,866
Cash Flows Received from (Used for) Financing Activities:
Proceeds from shares sold		177,860
Payments on shares redeemed		(393,586	)
Increase (decrease) in overdraft due to custodian		(111	)
Net borrowing of line of credit		0
Cash distributions paid*		(40	)
Proceeds from reverse repurchase agreements		6,174
Payments on reverse repurchase agreements		(46,567	)
Proceeds from sale-buyback transactions		17,935,500
Payments on sale-buyback transactions		(17,837,100	)
Net Cash Received from (Used for) Financing Activities		(157,870	)
Net Increase (Decrease) in Cash and Foreign Currency		1,996
Cash and Foreign Currency:
Beginning of year		3,323
End of year	$	5,319
* Reinvestment of distributions	$	50,409
Supplemental Disclosure of Cash Flow Information:
Interest expense paid during the year	$	15,962

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

A Statement of Cash Flows is presented when the Portfolio has a significant amount of borrowing during the year, based on the average total borrowing outstanding in relation to total assets or when substantially all of the Portfolio’s investments are not classified as Level 1 or 2 in the fair value hierarchy.

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 13

Schedule of Investments PIMCO Real Return Portfolio

(Amounts in thousands*, except number of shares, contracts and units, if any)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
INVESTMENTS IN SECURITIES 158.9%
LOAN PARTICIPATIONS AND ASSIGNMENTS 0.0%
Hilton Worldwide Finance LLC
4.256% (LIBOR03M + 1.750%) due 10/25/2023 ~	$		77	$		74
Total Loan Participations and Assignments (Cost $77)						74
CORPORATE BONDS & NOTES 10.6%
BANKING & FINANCE 5.1%
AerCap Ireland Capital DAC
3.750% due 05/15/2019			400			400
4.625% due 10/30/2020			100			101
Akelius Residential Property AB
3.375% due 09/23/2020	EUR		100			120
Ally Financial, Inc.
3.750% due 11/18/2019	$		190			190
American Tower Corp.
2.800% due 06/01/2020			190			189
Banco Bilbao Vizcaya Argentaria S.A.
6.750% due 02/18/2020 •(f)(g)	EUR		400			456
7.000% due 02/19/2019 •(f)(g)			600			687
Bank of America Corp.
5.875% due 03/15/2028 •(f)	$		1,220			1,112
Bank of Ireland
7.375% due 06/18/2020 •(f)(g)	EUR		400			479
Barclays PLC
6.500% due 09/15/2019 •(f)(g)			500			560
7.000% due 09/15/2019 •(f)(g)	GBP		200			250
8.000% due 12/15/2020 •(f)(g)	EUR		490			596
BBVA Bancomer S.A.
6.500% due 03/10/2021	$		600			624
Cooperatieve Rabobank UA
5.500% due 06/29/2020 •(f)(g)	EUR		1,800			2,118
6.625% due 06/29/2021 •(f)(g)			600			748
Credit Suisse Group Funding Guernsey Ltd.
3.800% due 09/15/2022	$		2,600			2,583
Deutsche Bank AG
4.250% due 10/14/2021			10,200			9,979
Ford Motor Credit Co. LLC
2.943% due 01/08/2019			100			100
General Motors Financial Co., Inc.
2.350% due 10/04/2019			190			188
3.678% (US0003M + 1.270%) due 10/04/2019 ~			100			100
Goldman Sachs Group, Inc.
3.988% (US0003M + 1.200%) due 09/15/2020 ~			9,550			9,597
ING Bank NV
2.625% due 12/05/2022			3,200			3,153
International Lease Finance Corp.
5.875% due 04/01/2019			580			582
6.250% due 05/15/2019			480			484
8.250% due 12/15/2020			2,310			2,486
John Deere Capital Corp.
3.114% (US0003M + 0.290%) due 06/22/2020 ~			6,940			6,944
Lloyds Banking Group PLC
3.590% (US0003M + 0.800%) due 06/21/2021 ~			2,800			2,773
6.375% due 06/27/2020 •(f)(g)	EUR		600			681
Macquarie Bank Ltd.
2.758% (US0003M + 0.350%) due 04/04/2019 ~	$		3,670			3,669
Mitsubishi UFJ Financial Group, Inc.
4.618% (US0003M + 1.880%) due 03/01/2021 ~			2,015			2,065
National Rural Utilities Cooperative Finance Corp.
3.178% (US0003M + 0.375%) due 06/30/2021 ~			960			953
Nationwide Building Society
6.875% due 06/20/2019 •(f)(g)	GBP		300			386

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Navient Corp.
4.875% due 06/17/2019	$		131	$		131
8.000% due 03/25/2020			2,140			2,180
Royal Bank of Scotland Group PLC
4.372% (US0003M + 1.550%) due 06/25/2024 ~			2,100			2,008
4.519% due 06/25/2024 •			1,400			1,375
7.500% due 08/10/2020 •(f)(g)			1,120			1,112
8.625% due 08/15/2021 •(f)(g)			400			415
SBA Tower Trust
2.877% due 07/15/2046			600			590
State Bank of India
3.358% (US0003M + 0.950%) due 04/06/2020 ~			4,300			4,305
Toronto-Dominion Bank
2.250% due 03/15/2021			4,600			4,539
UBS AG
3.347% due 06/08/2020 •			5,600			5,599
Unibail-Rodamco SE
3.206% (US0003M + 0.770%) due 04/16/2019 ~			5,500			5,510
UniCredit SpA
7.830% due 12/04/2023			10,150			10,629
						93,746
INDUSTRIALS 3.2%
Allergan Funding SCS
3.000% due 03/12/2020			1,160			1,156
Allergan Sales LLC
5.000% due 12/15/2021			1,540			1,585
Allergan, Inc.
3.375% due 09/15/2020			1,060			1,059
BAT Capital Corp.
3.204% due 08/14/2020 •			3,180			3,149
BAT International Finance PLC
2.750% due 06/15/2020			100			98
Charter Communications Operating LLC
3.579% due 07/23/2020			2,390			2,388
4.464% due 07/23/2022			140			142
D.R. Horton, Inc.
3.750% due 03/01/2019			100			100
Danone S.A.
2.077% due 11/02/2021			500			483
Dell International LLC
3.480% due 06/01/2019			10,800			10,769
4.420% due 06/15/2021			1,500			1,499
Discovery Communications LLC
3.502% (US0003M + 0.710%) due 09/20/2019 ~			480			480
Dominion Energy Gas Holdings LLC
3.388% (US0003M + 0.600%) due 06/15/2021 ~			2,700			2,693
EMC Corp.
2.650% due 06/01/2020			290			279
Enbridge, Inc.
2.814% (US0003M + 0.400%) due 01/10/2020 ~			3,570			3,559
3.488% (US0003M + 0.700%) due 06/15/2020 ~			4,920			4,904
Energy Transfer Partners LP
5.750% due 09/01/2020			100			103
EQT Corp.
4.875% due 11/15/2021			900			918
ERAC USA Finance LLC
4.500% due 08/16/2021			480			490
5.250% due 10/01/2020			390			403
General Electric Co.
5.550% due 05/04/2020			1,000			1,017
General Motors Co.
3.389% (US0003M + 0.800%) due 08/07/2020 ~			70			69

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Hewlett Packard Enterprise Co.
3.059% (US0003M + 0.720%) due 10/05/2021 ~	$		3,100	$		3,074
Kinder Morgan Energy Partners LP
9.000% due 02/01/2019			100			100
McDonald’s Corp.
2.939% (US0003M + 0.430%) due 10/28/2021 ~			5,500			5,464
Mondelez International Holdings Netherlands BV
2.000% due 10/28/2021			1,700			1,630
Ryder System, Inc.
2.450% due 09/03/2019			100			100
Sabine Pass Liquefaction LLC
5.625% due 02/01/2021			1,300			1,340
Sky Ltd.
2.625% due 09/16/2019			100			99
Spectra Energy Partners LP
3.451% (US0003M + 0.700%) due 06/05/2020 ~			100			99
Sprint Spectrum Co. LLC
3.360% due 03/20/2023			69			68
Sunoco Logistics Partners Operations LP
4.400% due 04/01/2021			500			506
Telefonica Emisiones S.A.
5.877% due 07/15/2019			390			395
Textron, Inc.
3.168% (US0003M + 0.550%) due 11/10/2020 ~			3,650			3,620
Thermo Fisher Scientific, Inc.
3.600% due 08/15/2021			1,800			1,806
Time Warner Cable LLC
5.000% due 02/01/2020			480			487
8.250% due 04/01/2019			100			101
TransCanada PipeLines Ltd.
3.800% due 10/01/2020			100			101
VMware, Inc.
3.900% due 08/21/2027			190			169
Volkswagen Group of America Finance LLC
2.125% due 05/23/2019			1,100			1,095
2.450% due 11/20/2019			300			297
						57,894
SPECIALTY FINANCE 0.3%
CIMIC Group Ltd.
1.000% due 02/25/2019 (h)	AUD		2,800			1,962
1.000% due 04/04/2019 (h)	$		800			791
1.000% due 07/03/2019 (h)	AUD		3,000			2,072
						4,825
UTILITIES 2.0%
American Electric Power Co., Inc.
2.150% due 11/13/2020	$		900			882
AT&T, Inc.
3.386% (US0003M + 0.950%) due 07/15/2021 ~			4,340			4,327
3.488% (US0003M + 0.750%) due 06/01/2021 ~			2,800			2,783
5.000% due 03/01/2021			100			103
5.150% due 02/15/2050			1,540			1,434
5.200% due 03/15/2020			960			981
5.300% due 08/15/2058			580			540
British Transco International Finance BV
0.000% due 11/04/2021 (c)			580			518
Consolidated Edison Co. of New York, Inc.
3.222% (US0003M + 0.400%) due 06/25/2021 ~			680			674
Duke Energy Corp.
3.114% (US0003M + 0.500%) due 05/14/2021 ~			5,690			5,665
Iberdrola Finance Ireland DAC
5.000% due 09/11/2019			100			101

14 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
NextEra Energy Capital Holdings, Inc.
3.053% (US0003M + 0.315%) due 09/03/2019 ~	$		3,520	$		3,516
3.107% (US0003M + 0.400%) due 08/21/2020 ~			3,570			3,567
Petrobras Global Finance BV
4.375% due 05/20/2023			62			59
5.299% due 01/27/2025			5,785			5,539
5.999% due 01/27/2028			540			510
6.125% due 01/17/2022			212			218
6.625% due 01/16/2034	GBP		100			128
Plains All American Pipeline LP
2.600% due 12/15/2019	$		100			99
Sempra Energy
3.238% (US0003M + 0.450%) due 03/15/2021 ~			1,350			1,323
Southern Power Co.
3.342% (US0003M + 0.550%) due 12/20/2020 ~			1,640			1,620
Sprint Communications, Inc.
7.000% due 03/01/2020			2,900			2,980
Sprint Corp.
7.250% due 09/15/2021			100			103
						37,670
Total Corporate Bonds & Notes (Cost $195,661)						194,135
MUNICIPAL BONDS & NOTES 0.0%
WEST VIRGINIA 0.0%
Tobacco Settlement Finance Authority, West Virginia Revenue Bonds, Series 2007
7.467% due 06/01/2047			625			614
Total Municipal Bonds & Notes (Cost $598)						614
U.S. GOVERNMENT AGENCIES 19.4%
Fannie Mae
2.375% due 12/25/2036 •			33			32
2.656% due 08/25/2034 •			30			30
2.856% due 07/25/2037 - 05/25/2042 •			52			53
2.946% due 05/25/2036 •			11			11
3.253% due 07/01/2044 - 09/01/2044 •			27			27
4.039% due 10/01/2035 •			38			40
4.120% due 05/25/2035 ~			209			220
Fannie Mae, TBA
3.500% due 02/01/2034 - 02/01/2049			172,240			172,264
4.000% due 02/01/2049			160,000			163,028
Freddie Mac
2.636% due 08/25/2031 •			34			34
2.649% due 07/15/2044 •			3,343			3,332
2.905% due 08/15/2033 - 09/15/2042 •			6,127			6,140
3.156% due 02/25/2045 •			607			604
3.357% due 10/25/2044 •			1,957			1,970
4.331% due 01/01/2034 •			64			67
4.626% due 12/01/2035 •			24			25
Ginnie Mae
3.247% due 04/20/2067 •			2,657			2,726
NCUA Guaranteed Notes
2.830% due 10/07/2020 •			1,011			1,013
2.940% due 12/08/2020 •			2,599			2,610
Small Business Administration
6.020% due 08/01/2028			400			429
Total U.S. Government Agencies (Cost $350,686)						354,655
U.S. TREASURY OBLIGATIONS 109.5%
U.S. Treasury Bonds
3.000% due 02/15/2048 (j)			140			140

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
U.S. Treasury Inflation Protected Securities (e)
0.125% due 04/15/2019	$		36,016	$		35,512
0.125% due 04/15/2020 (j)			123,455			120,720
0.125% due 04/15/2021 (j)(l)			190,641			185,477
0.125% due 01/15/2022			23,162			22,487
0.125% due 04/15/2022 (j)(l)			93,756			90,734
0.125% due 07/15/2022			32,403			31,480
0.125% due 01/15/2023			21,310			20,588
0.125% due 07/15/2024 (n)			26,656			25,571
0.125% due 07/15/2026			34,973			32,859
0.250% due 01/15/2025 (j)			88,372			84,656
0.375% due 07/15/2023			54,265			53,075
0.375% due 07/15/2025			31,754			30,635
0.375% due 01/15/2027 (n)			8,166			7,762
0.500% due 01/15/2028 (j)			62,629			59,812
0.625% due 07/15/2021 (j)(l)(n)			15,797			15,627
0.625% due 04/15/2023			18,448			18,149
0.625% due 01/15/2024			38,175			37,591
0.625% due 01/15/2026 (j)			181,428			176,724
0.625% due 02/15/2043 (j)			4,477			3,934
0.750% due 07/15/2028			5,742			5,625
0.750% due 02/15/2042			13,262			12,065
0.750% due 02/15/2045			56,801			50,926
0.875% due 02/15/2047			36,504			33,591
1.000% due 02/15/2046			28,285			26,883
1.000% due 02/15/2048			40,828			38,780
1.250% due 07/15/2020 (j)(l)(n)			1,171			1,169
1.375% due 01/15/2020 (j)			78,244			77,766
1.375% due 02/15/2044 (j)			65,430			67,715
1.750% due 01/15/2028 (j)			73,365			77,968
1.875% due 07/15/2019 (j)(l)(n)			9,712			9,683
2.000% due 01/15/2026 (j)			47,237			50,434
2.125% due 02/15/2040			40,447			47,651
2.125% due 02/15/2041			4,400			5,208
2.375% due 01/15/2025 (j)			119,576			129,334
2.375% due 01/15/2027			18,032			19,915
2.500% due 01/15/2029 (j)			112,800			128,508
3.375% due 04/15/2032			11,306			14,526
3.625% due 04/15/2028			45,564			55,967
3.875% due 04/15/2029 (j)			75,899			96,704
U.S. Treasury Notes
2.125% due 03/31/2024 (j)			3,670			3,598
2.750% due 02/15/2024 (j)(n)			770			779
Total U.S. Treasury Obligations (Cost $2,075,470)						2,008,328
NON-AGENCY MORTGAGE-BACKED SECURITIES 2.4%
Adjustable Rate Mortgage Trust
4.002% due 05/25/2036 ^~			160			148
Alliance Bancorp Trust
2.746% due 07/25/2037 •			984			872
American Home Mortgage Investment Trust
4.385% due 09/25/2045 •			112			111
Banc of America Funding Trust
2.690% due 07/20/2036 •			57			56
4.447% due 01/20/2047 ^~			215			205
4.631% due 02/20/2036 ~			280			277
Banc of America Mortgage Trust
3.707% due 02/25/2036 ^~			254			237
4.368% due 06/25/2035 ~			53			50
4.871% due 11/25/2034 ~			15			15
Bear Stearns Adjustable Rate Mortgage Trust
3.903% due 03/25/2035 ~			225			219
4.088% due 02/25/2036 ^~			82			77
4.176% due 07/25/2036 ^~			309			288
4.343% due 01/25/2035 ~			230			227
4.730% due 10/25/2035 •			448			453
Bear Stearns ALT-A Trust
4.018% due 03/25/2036 ^~			406			343
4.209% due 09/25/2035 ^~			1,079			896
Chase Mortgage Finance Trust
4.171% due 02/25/2037 ~			25			25
ChaseFlex Trust
6.000% due 02/25/2037 ^			384			267
Chevy Chase Funding LLC Mortgage-Backed Certificates
2.786% due 01/25/2035 •			8			8

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Citigroup Mortgage Loan Trust
3.925% due 03/25/2037 ^~	$		3,054	$		2,985
4.238% due 09/25/2037 ^~			572			550
4.490% due 05/25/2035 •			18			18
4.980% due 03/25/2036 ^•			439			422
Citigroup Mortgage Loan Trust, Inc.
3.890% due 09/25/2035 •			14			13
Civic Mortgage LLC
4.349% due 11/25/2022 Ø			1,523			1,524
Countrywide Alternative Loan Trust
2.616% due 06/25/2046 •			155			148
2.650% due 02/20/2047 ^•			428			348
2.686% due 05/25/2047 •			113			110
2.696% due 09/25/2046 ^•			3,264			3,007
2.786% due 12/25/2035 •			24			24
3.157% due 12/25/2035 •			77			68
6.000% due 03/25/2037 ^			4,266			3,064
Countrywide Home Loan Mortgage Pass-Through Trust
3.393% due 05/20/2036 ^~			81			76
4.531% due 11/19/2033 ~			10			10
5.500% due 08/25/2035 ^			64			60
6.000% due 04/25/2036			491			400
Credit Suisse Mortgage Capital Certificates
5.624% due 10/26/2036 ~			274			244
Deutsche ALT-B Securities, Inc. Mortgage Loan Trust
2.606% due 10/25/2036 ^•			11			9
Eurosail PLC
1.850% due 06/13/2045 •	GBP		2,603			3,250
First Horizon Alternative Mortgage Securities Trust
4.290% due 06/25/2034 ~	$		146			145
6.000% due 02/25/2037 ^			427			327
First Horizon Mortgage Pass-Through Trust
4.009% due 02/25/2035 ~			383			385
4.261% due 08/25/2035 ~			219			181
GreenPoint Mortgage Funding Trust
2.686% due 09/25/2046 •			401			372
2.946% due 06/25/2045 •			218			209
3.046% due 11/25/2045 •			142			125
GS Mortgage Securities Trust
4.592% due 08/10/2043			5,800			5,915
GSR Mortgage Loan Trust
4.300% due 09/25/2035 ~			197			200
4.332% due 07/25/2035 ~			251			252
4.447% due 12/25/2034 ~			314			315
4.807% due 01/25/2035 ~			96			96
HarborView Mortgage Loan Trust
2.810% due 06/20/2035 •			76			75
2.910% due 05/19/2035 •			63			62
3.030% due 02/19/2036 •			132			111
IndyMac Mortgage Loan Trust
2.786% due 07/25/2035 •			229			205
3.286% due 05/25/2034 •			25			24
4.261% due 12/25/2034 ~			84			84
4.460% due 11/25/2035 ^~			200			197
JPMorgan Mortgage Trust
3.503% due 07/27/2037 ~			552			551
4.101% due 07/25/2035 ~			293			300
4.336% due 02/25/2035 ~			153			152
4.366% due 08/25/2035 ^~			160			157
4.452% due 07/25/2035 ~			109			111
4.500% due 09/25/2035 ~			51			50
4.603% due 08/25/2035 ~			179			180
JPMorgan Resecuritization Trust
6.000% due 02/27/2037 ~			23			23
MASTR Adjustable Rate Mortgages Trust
4.438% due 11/21/2034 ~			127			130
Mellon Residential Funding Corp. Mortgage Pass-Through Certificates
3.155% due 11/15/2031 •			88			87
Mellon Residential Funding Corp. Mortgage Pass-Through Trust
2.895% due 12/15/2030 •			100			97
Merrill Lynch Mortgage Investors Trust
2.756% due 11/25/2035 •			100			95
3.969% due 12/25/2035 ~			154			142

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 15

Schedule of Investments PIMCO Real Return Portfolio (Cont.)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Morgan Stanley Mortgage Loan Trust
4.293% due 06/25/2036 ~	$		272	$		278
Residential Accredit Loans, Inc. Trust
2.915% due 08/25/2035 •			88			78
Residential Asset Securitization Trust
2.906% due 05/25/2035 •			730			626
6.500% due 09/25/2036 ^			273			189
Residential Funding Mortgage Securities, Inc. Trust
6.000% due 06/25/2037 ^			270			251
Sequoia Mortgage Trust
2.670% due 07/20/2036 •			649			622
3.170% due 10/19/2026 •			25			25
Structured Adjustable Rate Mortgage Loan Trust
3.557% due 01/25/2035 ^•			89			84
4.209% due 08/25/2035 ~			109			109
4.232% due 02/25/2034 ~			98			99
4.436% due 12/25/2034 ~			32			31
Structured Asset Mortgage Investments Trust
2.696% due 06/25/2036 •			70			69
2.716% due 04/25/2036 •			281			261
2.720% due 07/19/2035 •			600			590
3.130% due 10/19/2034 •			55			55
Swan Trust
3.332% due 04/25/2041 •	AUD		103			73
Vornado DP LLC Trust
4.004% due 09/13/2028	$		6,300			6,422
WaMu Mortgage Pass-Through Certificates Trust
2.579% due 07/25/2046 •			502			492
2.579% due 11/25/2046 •			75			74
2.863% due 12/25/2046 •			75			73
2.887% due 01/25/2047 •			498			500
2.927% due 05/25/2047 •			324			304
3.157% due 02/25/2046 •			109			108
3.357% due 11/25/2042 •			15			15
3.918% due 08/25/2035 ~			45			42
4.062% due 12/25/2035 ~			105			102
Wells Fargo Mortgage-Backed Securities Trust
4.607% due 09/25/2034 ~			28			29
Total Non-Agency Mortgage-Backed Securities (Cost $42,691)						44,060
ASSET-BACKED SECURITIES 7.1%
ACE Securities Corp. Home Equity Loan Trust
2.706% due 03/25/2037 •			468			272
Adagio CLO Ltd.
0.660% due 10/15/2029 •	EUR		500			569
Argent Mortgage Loan Trust
2.986% due 05/25/2035 •	$		809			768
Atrium Corp.
3.299% due 04/22/2027 •			2,000			1,977
Babson Euro CLO BV
0.503% due 10/25/2029 •	EUR		600			681
Benefit Street Partners CLO Ltd.
3.225% due 07/18/2027 •	$		1,100			1,091
Black Diamond CLO Designated Activity Co.
0.650% due 10/03/2029 •	EUR		1,660			1,878
3.448% due 10/03/2029 •	$		1,120			1,117
Brookside Mill CLO Ltd.
3.269% due 01/17/2028 •			2,130			2,106
Carlyle Global Market Strategies Euro CLO DAC
0.730% due 09/21/2029 •	EUR		300			343
Catamaran CLO Ltd.
3.359% due 01/27/2028 •	$		4,450			4,420
CIFC Funding Ltd.
3.216% due 04/15/2027 •			4,550			4,514
CIT Mortgage Loan Trust
3.856% due 10/25/2037 •			594			602
Citigroup Mortgage Loan Trust
2.586% due 01/25/2037 •			125			88
Citigroup Mortgage Loan Trust, Inc.
2.756% due 06/25/2037 •			6,037			6,023
College Loan Corp. Trust
2.740% due 01/25/2024 •			800			793

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
CoreVest American Finance Trust
2.968% due 10/15/2049	$		654	$		642
Countrywide Asset-Backed Certificates
2.696% due 11/25/2037 •			5,238			4,980
2.756% due 03/25/2037 •			1,260			1,184
3.915% due 04/25/2036 ~			3			3
Credit Suisse Mortgage Capital Trust
4.500% due 03/25/2021			1,406			1,411
Credit-Based Asset Servicing & Securitization LLC
2.726% due 07/25/2037 •			1,054			688
3.365% due 05/25/2035 •			386			384
Credit-Based Asset Servicing & Securitization Trust
2.566% due 11/25/2036 •			68			43
CVP Cascade CLO Ltd.
3.586% due 01/16/2026 •			430			430
Equity One Mortgage Pass-Through Trust
3.106% due 04/25/2034 •			77			70
First Franklin Mortgage Loan Trust
2.976% due 11/25/2036 •			2,400			2,114
Flagship Ltd.
3.589% due 01/20/2026 •			2,012			2,011
Fremont Home Loan Trust
2.641% due 10/25/2036 •			1,053			984
GSAMP Trust
2.576% due 12/25/2036 •			84			49
3.241% due 09/25/2035 ^•			91			90
3.481% due 03/25/2035 ^•			66			58
Halcyon Loan Advisors Funding Ltd.
3.389% due 04/20/2027 •			1,800			1,790
HSI Asset Securitization Corp. Trust
2.556% due 10/25/2036 •			6			3
IndyMac Mortgage Loan Trust
2.576% due 07/25/2036 •			691			303
Jamestown CLO Ltd.
3.126% due 07/15/2026 •			2,580			2,569
3.669% due 01/17/2027 •			5,333			5,330
Jubilee CLO BV
0.489% due 12/15/2029 •	EUR		2,400			2,725
0.522% due 07/12/2028 •			1,100			1,255
KVK CLO Ltd.
3.336% due 01/14/2028 •	$		610			603
Lehman ABS Manufactured Housing Contract Trust
7.170% due 04/15/2040 ^~			1,292			910
Lehman XS Trust
2.666% due 05/25/2036 •			1,460			1,446
5.012% due 06/25/2036 Ø			754			683
Long Beach Mortgage Loan Trust
2.626% due 08/25/2036 •			1,263			667
Marathon CLO Ltd.
3.516% due 11/21/2027 •			1,530			1,512
MASTR Asset-Backed Securities Trust
3.006% due 10/25/2035 ^•			78			73
Merrill Lynch Mortgage Investors Trust
2.586% due 09/25/2037 •			23			13
2.626% due 02/25/2037 •			311			135
Morgan Stanley IXIS Real Estate Capital Trust
2.556% due 11/25/2036 •			10			5
Navient Student Loan Trust
3.656% due 03/25/2066 •			3,086			3,101
NovaStar Mortgage Funding Trust
3.211% due 01/25/2036 •			2,025			2,004
OCP CLO Ltd.
3.236% due 07/15/2027 •			2,000			1,984
3.299% due 04/17/2027 •			1,400			1,386
3.328% due 10/26/2027 •			1,850			1,837
OHA Credit Partners Ltd.
3.479% due 10/20/2025 •			2,512			2,508
Park Place Securities, Inc.
2.976% due 09/25/2035 •			3,075			3,073
Park Place Securities, Inc. Asset-Backed Pass-Through Certificates
2.996% due 09/25/2035 •			775			772
3.556% due 10/25/2034 •			3,850			3,893

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
RAAC Trust
2.846% due 08/25/2036 •	$		675	$		676
Renaissance Home Equity Loan Trust
3.266% due 12/25/2032 •			62			61
Residential Asset Mortgage Products Trust
2.726% due 10/25/2034 •			46			46
Residential Asset Securities Corp. Trust
2.736% due 06/25/2036 •			5,000			4,824
Saxon Asset Securities Trust
2.816% due 09/25/2047 •			992			957
Securitized Asset-Backed Receivables LLC Trust
2.566% due 12/25/2036 ^•			306			105
2.656% due 07/25/2036 •			245			134
SLM Private Education Loan Trust
1.850% due 06/17/2030			789			784
4.705% due 06/16/2042 •			1,210			1,233
SLM Student Loan Trust
0.000% due 01/25/2024 •	EUR		1,401			1,599
0.000% due 06/17/2024 •			365			417
2.530% due 04/25/2019 •	$		1,241			1,239
3.040% due 10/25/2064 •			3,000			3,012
3.990% due 04/25/2023 •			4,888			4,917
SoFi Professional Loan Program LLC
2.050% due 01/25/2041			2,564			2,537
Sound Point CLO Ltd.
3.296% due 04/15/2027 •			3,300			3,285
3.349% due 07/20/2027 •			1,000			995
Soundview Home Loan Trust
2.566% due 11/25/2036 •			47			20
2.706% due 06/25/2037 •			2,118			1,575
Structured Asset Investment Loan Trust
2.946% due 12/25/2035 •			309			307
Structured Asset Securities Corp. Mortgage Loan Trust
3.849% due 04/25/2035 •			222			216
THL Credit Wind River CLO Ltd.
3.306% due 10/15/2027 •			400			400
Tralee CLO Ltd.
3.499% due 10/20/2027 •			2,600			2,589
Venture CLO Ltd.
3.256% due 04/15/2027 •			5,680			5,639
3.316% due 07/15/2027 •			2,200			2,179
Voya CLO Ltd.
3.210% due 07/25/2026 •			4,076			4,071
Z Capital Credit Partners CLO Ltd.
3.386% due 07/16/2027 •			3,610			3,590
Total Asset-Backed Securities (Cost $128,906)						130,370
SOVEREIGN ISSUES 6.0%
Argentina Government International Bond
5.875% due 01/11/2028			1,780			1,286
6.875% due 01/26/2027			4,530			3,468
41.328% (BADLARPP) due 10/04/2022 ~	ARS		300			12
48.797% (BADLARPP + 3.250%) due 03/01/2020 ~			200			5
50.225% (BADLARPP + 2.000%) due 04/03/2022 ~(a)			15,619			400
59.257% (ARLLMONP) due 06/21/2020 ~(a)			88,896			2,543
Australia Government International Bond
1.250% due 02/21/2022	AUD		6,860			4,934
3.000% due 09/20/2025			10,968			8,911
Autonomous Community of Catalonia
4.950% due 02/11/2020	EUR		960			1,146
Brazil Letras do Tesouro Nacional
0.000% due 04/01/2019 (c)	BRL		5,950			1,512
Canadian Government Real Return Bond
4.250% due 12/01/2026 (e)	CAD		5,741			5,388
France Government International Bond
1.850% due 07/25/2027 (e)	EUR		2,226			3,107
Italy Buoni Poliennali Del Tesoro
1.650% due 04/23/2020			956			1,120
2.100% due 09/15/2021 (e)			169			202
2.350% due 09/15/2024 (e)			5,001			6,051

16 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Japan Government International Bond
0.100% due 03/10/2028 (e)	JPY		524,196	$		4,936
Mexico Government International Bond
7.750% due 05/29/2031	MXN		53,861			2,529
New Zealand Government International Bond
2.000% due 09/20/2025	NZD		6,855			4,858
3.000% due 09/20/2030			15,232			11,980
Peru Government International Bond
5.940% due 02/12/2029	PEN		5,300			1,604
Qatar Government International Bond
3.875% due 04/23/2023	$		2,000			2,026
5.103% due 04/23/2048			1,500			1,579
Saudi Government International Bond
4.000% due 04/17/2025			3,170			3,149
United Kingdom Gilt
0.125% due 03/22/2026 (e)	GBP		10,686			15,910
0.125% due 03/22/2046 (e)			939			1,868
0.125% due 08/10/2048 (e)			704			1,452
0.125% due 11/22/2056 (e)			233			537
0.125% due 11/22/2065 (e)			806			2,140
0.750% due 11/22/2047 (e)			972			2,271
1.750% due 09/07/2037			6,090			7,775
1.875% due 11/22/2022 (e)			1,978			2,945
4.250% due 12/07/2027			1,540			2,479
Total Sovereign Issues (Cost $119,398)						110,123
SHORT-TERM INSTRUMENTS 3.9%
CERTIFICATES OF DEPOSIT 0.6%
Barclays Bank PLC
2.890% (US0003M + 0.400%) due 10/25/2019 ~	$		11,400			11,407

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
COMMERCIAL PAPER 1.3%
Bank of Montreal
2.068% due 01/04/2019	CAD		400	$		293
2.076% due 01/03/2019			1,200			879
2.093% due 01/02/2019			16,000			11,719
Energy Transfer Partners LP
3.650% due 03/07/2019	$		4,000			3,976
HSBC Bank Canada
2.094% due 01/08/2019	CAD		1,700			1,245
Royal Bank of Canada
2.055% due 01/02/2019			8,100			5,933
						24,045
REPURCHASE AGREEMENTS (i) 0.0%
						596
ARGENTINA TREASURY BILLS 0.1%
(7.428)% due 01/31/2019 - 04/30/2019 (b)(c)	ARS		40,624			1,198
JAPAN TREASURY BILLS 1.9%
(0.321)% due 02/04/2019 (c)(d)	JPY		3,750,000			34,218
U.S. TREASURY BILLS 0.0%
2.383% due 03/07/2019 (c)(d)(j)(n)	$		577			574
Total Short-Term Instruments (Cost $72,034)						72,038
Total Investments in Securities (Cost $2,985,521)						2,914,397

	SHARES			MARKET VALUE (000S)
INVESTMENTS IN AFFILIATES 4.2%
SHORT-TERM INSTRUMENTS 4.2%
CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 4.2%
PIMCO Short-Term Floating NAV Portfolio III		7,680,648	$		75,916
Total Short-Term Instruments (Cost $75,901)					75,916
Total Investments in Affiliates (Cost $75,901)					75,916
Total Investments 163.1% (Cost $3,061,422)			$		2,990,313
Financial Derivative Instruments (k)(m) 0.1% (Cost or Premiums, net $(6,542))					1,490
Other Assets and Liabilities, net (63.2)%					(1,158,230	)
Net Assets 100.0%			$		1,833,573

NOTES TO SCHEDULE OF INVESTMENTS:

* A zero balance may reflect actual amounts rounding to less than one thousand.

^ Security is in default.

~ Variable or Floating rate security. Rate shown is the rate in effect as of period end. Certain variable rate securities are not based on a published reference rate and spread, rather are determined by the issuer or agent and are based on current market conditions. Reference rate is as of reset date, which may vary by security. These securities may not indicate a reference rate and/or spread in their description.

• Rate shown is the rate in effect as of period end. The rate may be based on a fixed rate, a capped rate or a floor rate and may convert to a variable or floating rate in the future. These securities do not indicate a reference rate and spread in their description.

Ø Coupon represents a rate which changes periodically based on a predetermined schedule or event. Rate shown is the rate in effect as of period end.

(a) Interest only security.

(b) Coupon represents a weighted average yield to maturity.

(c) Zero coupon security.

(d) Coupon represents a yield to maturity.

(e) Principal amount of security is adjusted for inflation.

(f) Perpetual maturity; date shown, if applicable, represents next contractual call date.

(g) Contingent convertible security.

(h)  RESTRICTED SECURITIES:

Issuer Description	Coupon			Maturity Date		Acquisition Date		Cost		Market Value		Market Value as Percentage of Net Assets
CIMIC Group Ltd.		1.000	%		07/03/2019		12/19/2018		$    2,087	$	2,072		0.11	%
CIMIC Group Ltd.		1.000			02/25/2019		09/26/2018		2,023		1,962		0.11
CIMIC Group Ltd.		1.000			04/04/2019		09/26/2018		793		791		0.04
									$    4,903	$	4,825		0.26	%

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 17

Schedule of Investments PIMCO Real Return Portfolio (Cont.)

BORROWINGS AND OTHER FINANCING TRANSACTIONS

(i)  REPURCHASE AGREEMENTS:

Counterparty	Lending Rate			Settlement Date		Maturity Date		Principal Amount		Collateralized By	Collateral (Received)			Repurchase Agreements, at Value		Repurchase Agreement Proceeds to  be Received(1)
FICC		2.000	%		12/31/2018		01/02/2019	$	596	U.S. Treasury Notes 2.875% due 09/30/2023	$	(613	)	$	596	$	596
Total Repurchase Agreements											$	(613	)	$	596	$	596

SALE-BUYBACK TRANSACTIONS:

Counterparty	Borrowing Rate(2)			Borrowing Date		Maturity Date		Amount Borrowed(2)			Payable  for Sale-Buyback Transactions(3)
BCY		2.570	%		11/19/2018		01/18/2019	$	(71,479	)	$	(71,704	)
BPG		2.700			12/07/2018		02/07/2019		(20,349	)		(20,389	)
		2.980			01/02/2019		01/03/2019		(199,022	)		(199,022	)
GSC		2.860			12/12/2018		01/23/2019		(343,979	)		(344,553	)
MSC		2.670			11/21/2018		01/02/2019		(8,057	)		(8,082	)
		2.800			12/11/2018		01/11/2019		(144,868	)		(145,117	)
		2.920			12/12/2018		01/02/2019		(13,248	)		(13,270	)
		2.940			12/13/2018		01/03/2019		(2,694	)		(2,698	)
		2.960			12/13/2018		01/03/2019		(107,027	)		(107,203	)
		3.140			12/18/2018		01/02/2019		(71,715	)		(71,809	)
TDM		2.450			10/19/2018		01/22/2019		(42,426	)		(42,643	)
		2.630			11/20/2018		01/02/2019		(15,018	)		(15,065	)
Total Sale-Buyback Transactions											$	(1,041,555	)

SHORT SALES:

Description	Coupon		Maturity Date		Principal Amount		Proceeds			Payable for Short Sales
U.S. Government Agencies (2.4)% Fannie Mae, TBA		3.000%		01/01/2049	$	45,300	$	(43,292	)	$	(44,208	)
Total Short Sales (2.4)%							$	(43,292	)	$	(44,208	)

BORROWINGS AND OTHER FINANCING TRANSACTIONS SUMMARY

The following is a summary by counterparty of the market value of Borrowings and Other Financing Transactions and collateral pledged/(received) as of December 31, 2018:

Counterparty	Repurchase Agreement Proceeds to  be Received(1)		Payable for Reverse Repurchase Agreements		Payable  for Sale-Buyback Transactions(3)			Total Borrowings and Other Financing Transactions			Collateral Pledged/(Received)			Net Exposure(4)
Global/Master Repurchase Agreement
FICC	$	596	$	0	$	0		$	596		$	(613	)	$	(17	)
Master Securities Forward Transaction Agreement
BCY		0		0		(71,704	)		(71,704	)		71,204			(500	)
BPG		0		0		(219,411	)		(219,411	)		219,024			(387	)
BPS		0		0		0			0			266			266
GSC		0		0		(344,553	)		(344,553	)		343,591			(962	)
MSC		0		0		(348,179	)		(348,179	)		347,802			(377	)
TDM		0		0		(57,708	)		(57,708	)		57,401			(307	)
Total Borrowings and Other Financing Transactions	$	596	$	0	$	(1,041,555	)

CERTAIN TRANSFERS ACCOUNTED FOR AS SECURED BORROWINGS

Remaining Contractual Maturity of the Agreements

	Overnight and Continuous		Up to 30 days			31-90 days			Greater Than 90 days		Total
Sale-Buyback Transactions
U.S. Treasury Obligations	$	0	$	(1,021,166	)	$	(20,389	)	$	0	$	(1,041,555	)
Total Borrowings	$	0	$	(1,021,166	)	$	(20,389	)	$	0	$	(1,041,555	)
Payable for sale-buyback financing transactions											$	(1,041,555	)

18 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

(j) Securities with an aggregate market value of $1,040,036 have been pledged as collateral under the terms of the above master agreements as of December 31, 2018.

⁽¹⁾ Includes accrued interest.

⁽²⁾ The average amount of borrowings outstanding during the period ended December 31, 2018 was $(769,380) at a weighted average interest rate of 1.975%. Average borrowings may include sale-buyback transactions and reverse repurchase agreements, if held during the period.

⁽³⁾ Payable for sale-buyback transactions includes $(895) of deferred price drop.

⁽⁴⁾ Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from borrowings and other financing transactions can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information regarding master netting arrangements.

(k)  FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED

PURCHASED OPTIONS:

OPTIONS ON EXCHANGE-TRADED FUTURES CONTRACTS

Description	Strike Price		Expiration Date		# of Contracts		Notional Amount		Cost		Market Value
Put - CBOT U.S. Treasury 10-Year Note March 2019 Futures	$	112.000		02/22/2019		431	$	431	$	4	$	0
Put - CBOT U.S. Treasury 2-Year Note March 2019 Futures		103.750		02/22/2019		23		46		0		0
Call - CBOT U.S. Treasury 30-Year Bond March 2019 Futures		172.000		02/22/2019		90		90		1		1
Put - CBOT U.S. Treasury 5-Year Note March 2019 Futures		107.250		02/22/2019		50		50		0		0
Call - CBOT U.S. Treasury 5-Year Note March 2019 Futures		120.500		02/22/2019		69		69		1		1
Total Purchased Options									$	6	$	2

WRITTEN OPTIONS:

OPTIONS ON EXCHANGE-TRADED FUTURES CONTRACTS

Description	Strike Price		Expiration Date		# of Contracts		Notional Amount		Premiums (Received)			Market Value
Call - CBOT U.S. Treasury 10-Year Note February 2019 Futures	$	122.000		01/25/2019		35	$	35	$	(16	)	$	(16	)
Call - CBOT U.S. Treasury 10-Year Note February 2019 Futures		122.250		01/25/2019		53		53		(21	)		(21	)
Call - CBOT U.S. Treasury 10-Year Note March 2019 Futures		122.500		02/22/2019		70		70		(29	)		(29	)
Put - CBOT U.S. Treasury 30-Year Bond February 2019 Futures		141.000		01/25/2019		47		47		(35	)		(5	)
Call - CBOT U.S. Treasury 30-Year Bond March 2019 Futures		148.000		02/22/2019		35		35		(27	)		(27	)
Call - CBOT U.S. Treasury 5-Year Note February 2019 Futures		113.500		01/25/2019		139		139		(49	)		(157	)
Total Written Options									$	(177	)	$	(255	)

FUTURES CONTRACTS:

LONG FUTURES CONTRACTS

Description	Expiration Month		# of Contracts		Notional Amount		Unrealized Appreciation/ (Depreciation)			Variation Margin
										Asset		Liability
90-Day Eurodollar December Futures		12/2019		13	$	3,164	$	(4	)	$	0	$	0
90-Day Eurodollar June Futures		06/2019		1,101		267,860		599			14		0
90-Day Eurodollar March Futures		03/2019		13		3,162		(11	)		0		0
90-Day Eurodollar September Futures		09/2019		13		3,164		(6	)		0		0
Call Options Strike @ EUR 165.000 on Euro-OAT France Government 10-Year Bond March 2019 Futures		02/2019		495		6		(1	)		0		0
Euro-Bund 10-Year Bond March Futures		03/2019		241		45,158		582			0		(52	)
Put Options Strike @ EUR 152.000 on Euro-Bund 10-Year Bond March 2019 Futures		02/2019		241		3		0			0		0
U.S. Treasury 2-Year Note March Futures		03/2019		26		5,520		38			4		0
U.S. Treasury 5-Year Note March Futures		03/2019		58		6,652		106			15		0
U.S. Treasury 10-Year Note March Futures		03/2019		101		12,324		293			39		0
							$	1,596		$	72	$	(52	)

SHORT FUTURES CONTRACTS

Description	Expiration Month		# of Contracts		Notional Amount			Unrealized Appreciation/ (Depreciation)			Variation Margin
											Asset		Liability
90-Day Eurodollar June Futures		06/2020		1,088	$	(265,214	)	$	(1,213	)	$	0	$	(68	)
Australia Government 3-Year Note March Futures		03/2019		85		(6,718	)		(34	)		0		(8	)
Australia Government 10-Year Bond March Futures		03/2019		46		(4,299	)		(43	)		0		(20	)
Euro-BTP Italy Government Bond March Futures		03/2019		191		(27,952	)		(570	)		0		(13	)

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 19

Schedule of Investments PIMCO Real Return Portfolio (Cont.)

	Expiration Month		# of Contracts		Notional Amount			Unrealized Appreciation/ (Depreciation)			Variation Margin
Description											Asset		Liability
Euro-OAT France Government 10-Year Bond March Futures		03/2019		379	$	(65,483	)	$	(307	)	$	92	$	0
Japan Government 10-Year Bond March Futures		03/2019		22		(30,606	)		(143	)		12		(30	)
U.S. Treasury 10-Year Ultra March Futures		03/2019		624		(81,169	)		(2,604	)		0		(293	)
U.S. Treasury 30-Year Bond March Futures		03/2019		686		(100,156	)		(4,383	)		0		(322	)
U.S. Treasury Ultra Long-Term Bond March Futures		03/2019		69		(11,085	)		(583	)		0		(41	)
United Kingdom Long Gilt March Futures		03/2019		749		(117,587	)		(1,242	)		124		(382	)
								$	(11,122	)	$	228	$	(1,177	)
Total Futures Contracts								$	(9,526	)	$	300	$	(1,229	)

SWAP AGREEMENTS:

CREDIT DEFAULT SWAPS ON CORPORATE ISSUES - SELL PROTECTION⁽¹⁾

Reference Entity	Fixed Receive Rate			Payment Frequency		Maturity Date		Implied Credit Spread at December 31, 2018(3)			Notional Amount(4)			Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Market Value(5)			Variation Margin
																							Asset		Liability
Daimler AG		1.000	%		Quarterly		12/20/2020		0.442	%		EUR	720	$	12		$	(3	)	$	9		$	0	$	0
Deutsche Bank AG		1.000			Quarterly		12/20/2019		1.450				300		(2	)		1			(1	)		0		0
General Electric Co.		1.000			Quarterly		12/20/2020		1.653			$	400		(11	)		6			(5	)		0		0
General Electric Co.		1.000			Quarterly		12/20/2023		2.039				800		(45	)		9			(36	)		1		0
														$	(46	)	$	13		$	(33	)	$	1	$	0

CREDIT DEFAULT SWAPS ON CREDIT INDICES - BUY PROTECTION⁽²⁾

Index/Tranches	Fixed (Pay) Rate	Payment Frequency		Maturity Date		Notional Amount(4)			Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Market Value(5)			Variation Margin
																		Asset		Liability
CDX.HY-31 5-Year Index	(5.000)%		Quarterly		12/20/2023		$	11,800	$	(830	)	$	569		$	(261	)	$	0	$	(20	)
iTraxx Europe Main 26 5-Year Index	(1.000)		Quarterly		12/20/2021		EUR	11,800		(207	)		(8	)		(215	)		0		(18	)
iTraxx Europe Main 28 5-Year Index	(1.000)		Quarterly		12/20/2022			31,500		(888	)		408			(480	)		0		(61	)
									$	(1,925	)	$	969		$	(956	)	$	0	$	(99	)

INTEREST RATE SWAPS

Pay/Receive Floating Rate	Floating Rate Index	Fixed Rate			Payment Frequency	Maturity Date		Notional Amount			Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Market Value			Variation Margin
																				Asset		Liability
Receive	1-Day USD-Federal Funds Rate Compounded-OIS		2.000	%	Annual		12/15/2047		$	7,800	$	17		$	841		$	858		$	0	$	(18	)
Receive	1-Day USD-Federal Funds Rate Compounded-OIS		2.428		Annual		12/20/2047			1,600		4			31			35			0		(4	)
Receive	1-Day USD-Federal Funds Rate Compounded-OIS		2.478		Annual		12/20/2047			3,877		21			23			44			0		(10	)
Receive	1-Day USD-Federal Funds Rate Compounded-OIS		2.499		Annual		12/20/2047			1,250		3			6			9			0		(3	)
Receive	3-Month  NZD-BBR		3.250		Semi-Annual		03/21/2028		NZD	11,800		36			(532	)		(496	)		0		(27	)
Receive	3-Month  USD-LIBOR		1.750		Semi-Annual		06/20/2020		$	43,190		810			(188	)		622			1		0
Pay	3-Month  USD-LIBOR		2.250		Semi-Annual		12/20/2022			91,500		115			(1,249	)		(1,134	)		135		0
Pay	3-Month  USD-LIBOR		2.000		Semi-Annual		06/20/2023			13,900		(537	)		196			(341	)		24		0
Pay	3-Month  USD-LIBOR		2.678		Semi-Annual		10/25/2023			17,300		0			86			86			35		0
Pay	3-Month  USD-LIBOR		2.670		Semi-Annual		11/19/2023			14,000		0			61			61			29		0
Pay	3-Month  USD-LIBOR		2.681		Semi-Annual		12/12/2023			14,000		0			64			64			28		0
Pay	3-Month  USD-LIBOR		2.500		Semi-Annual		12/19/2023			19,600		(158	)		80			(78	)		38		0
Pay	3-Month  USD-LIBOR		2.750		Semi-Annual		12/19/2023			32,000		(216	)		472			256			65		0
Receive(6)	3-Month  USD-LIBOR		2.400		Semi-Annual		03/16/2026			26,900		(291	)		566			275			0		(77	)
Receive(6)	3-Month  USD-LIBOR		2.300		Semi-Annual		04/21/2026			34,000		(141	)		650			509			0		(98	)
Receive(6)	3-Month  USD-LIBOR		2.300		Semi-Annual		04/27/2026			40,600		(158	)		768			610			0		(117	)
Receive	3-Month  USD-LIBOR		2.250		Semi-Annual		06/15/2026			540		(28	)		42			14			0		(2	)
Receive(6)	3-Month  USD-LIBOR		1.850		Semi-Annual		07/27/2026			12,800		(20	)		478			458			0		(36	)
Receive(6)	3-Month  USD-LIBOR		2.000		Semi-Annual		07/27/2026			79,200		1,124			1,186			2,310			0		(223	)
Receive(6)	3-Month  USD-LIBOR		2.400		Semi-Annual		12/07/2026			8,500		96			13			109			0		(24	)
Receive	3-Month  USD-LIBOR		1.750		Semi-Annual		12/21/2026			2,200		(62	)		206			144			0		(7	)
Receive(6)	3-Month  USD-LIBOR		3.100		Semi-Annual		04/17/2028			44,390		(134	)		(367	)		(501	)		0		(93	)
Receive	3-Month  USD-LIBOR		2.720		Semi-Annual		07/18/2028			500		6			(10	)		(4	)		0		(2	)
Receive	3-Month  USD-LIBOR		2.765		Semi-Annual		07/18/2028			31,070		360			(735	)		(375	)		0		(121	)
Receive(6)	3-Month  USD-LIBOR		3.134		Semi-Annual		09/13/2028			43,000		0			(478	)		(478	)		0		(85	)
Receive	3-Month  USD-LIBOR		2.750		Semi-Annual		12/20/2047			786		40			(22	)		18			0		(4	)
Receive	3-Month  USD-LIBOR		2.500		Semi-Annual		06/20/2048			1,610		192			(71	)		121			0		(9	)

20 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

Pay/Receive Floating Rate	Floating Rate Index	Fixed Rate			Payment Frequency		Maturity Date		Notional Amount			Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Market Value			Variation Margin
																					Asset		Liability
Receive	3-Month  USD-LIBOR		2.750	%		Semi-Annual		12/19/2048		$	1,900	$	51		$	(6	)	$	45		$	0	$	(11	)
Receive	3-Month  USD-LIBOR		3.000			Semi-Annual		12/19/2048			9,000		537			(794	)		(257	)		0		(54	)
Receive(6)	6-Month  GBP-LIBOR		1.500			Semi-Annual		03/20/2029		GBP	8,070		130			(184	)		(54	)		0		(39	)
Receive(6)	6-Month  GBP-LIBOR		1.750			Semi-Annual		03/20/2049			15,590		(468	)		(557	)		(1,025	)		0		(175	)
Receive	6-Month  JPY-LIBOR		0.300			Semi-Annual		09/20/2027		JPY	450,000		(8	)		(56	)		(64	)		0		(1	)
Receive	6-Month  JPY-LIBOR		0.300			Semi-Annual		03/20/2028			340,000		(5	)		(41	)		(46	)		0		(1	)
Receive(6)	6-Month  JPY-LIBOR		0.450			Semi-Annual		03/20/2029			1,700,000		(92	)		(309	)		(401	)		0		(8	)
Receive	6-Month  JPY-LIBOR		1.500			Semi-Annual		12/21/2045			65,600		(99	)		(26	)		(125	)		0		(1	)
Pay	28-Day  MXN-TIIE		9.182			Lunar		11/28/2028		MXN	113,500		0			141			141			36		0
Receive	CPTFEMU		1.535			Maturity		06/15/2023		EUR	9,470		0			181			181			10		0
Receive	CPTFEMU		1.535			Maturity		03/15/2028			2,900		0			70			70			6		0
Receive	CPTFEMU		1.620			Maturity		05/15/2028			4,980		0			161			161			10		0
Pay	CPTFEMU		1.710			Maturity		03/15/2033			1,600		(2	)		(61	)		(63	)		0		(5	)
Receive	CPTFEMU		1.796			Maturity		11/15/2038			2,780		0			109			109			8		0
Receive	CPTFEMU		1.808			Maturity		11/15/2038			2,100		0			88			88			6		0
Receive	CPTFEMU		1.946			Maturity		03/15/2048			1,600		4			91			95			9		0
Receive	CPTFEMU		1.945			Maturity		11/15/2048			930		0			53			53			5		0
Receive	CPTFEMU		1.950			Maturity		11/15/2048			1,600		5			90			95			9		0
Pay	CPURNSA		2.070			Maturity		03/23/2019		$	7,580		0			(45	)		(45	)		0		(3	)
Pay	CPURNSA		1.980			Maturity		04/10/2019			11,520		0			(74	)		(74	)		8		0
Pay	CPURNSA		1.970			Maturity		04/27/2019			17,000		0			(115	)		(115	)		36		0
Pay	CPURNSA		1.925			Maturity		05/08/2019			6,160		0			(40	)		(40	)		14		0
Pay	CPURNSA		2.168			Maturity		07/15/2020			10,900		0			(115	)		(115	)		9		0
Pay	CPURNSA		2.027			Maturity		11/23/2020			10,200		0			(69	)		(69	)		1		0
Pay	CPURNSA		2.021			Maturity		11/25/2020			9,700		0			(65	)		(65	)		1		0
Pay	CPURNSA		1.550			Maturity		07/26/2021			7,200		244			(121	)		123			4		0
Pay	CPURNSA		1.603			Maturity		09/12/2021			5,560		168			(95	)		73			1		0
Pay	CPURNSA		2.069			Maturity		07/15/2022			3,700		0			(32	)		(32	)		0		0
Pay	CPURNSA		2.500			Maturity		07/15/2022			30,300		(2,696	)		(425	)		(3,121	)		0		(4	)
Pay	CPURNSA		2.210			Maturity		02/05/2023			20,900		0			(400	)		(400	)		0		(21	)
Pay	CPURNSA		2.263			Maturity		04/27/2023			14,090		(2	)		(342	)		(344	)		0		(4	)
Pay	CPURNSA		2.263			Maturity		05/09/2023			3,250		0			(78	)		(78	)		0		(1	)
Pay	CPURNSA		2.281			Maturity		05/10/2023			4,970		0			(131	)		(131	)		0		(10	)
Receive	CPURNSA		1.730			Maturity		07/26/2026			7,200		(386	)		218			(168	)		7		0
Receive	CPURNSA		1.800			Maturity		09/12/2026			17,300		(175	)		(88	)		(263	)		23		0
Receive	CPURNSA		1.801			Maturity		09/12/2026			5,560		(257	)		173			(84	)		7		0
Receive	CPURNSA		1.805			Maturity		09/12/2026			4,900		(224	)		152			(72	)		6		0
Receive	CPURNSA		1.780			Maturity		09/15/2026			4,600		(223	)		143			(80	)		6		0
Receive	CPURNSA		2.180			Maturity		09/20/2027			3,680		0			61			61			6		0
Receive	CPURNSA		2.150			Maturity		09/25/2027			3,600		0			49			49			6		0
Receive	CPURNSA		2.156			Maturity		10/17/2027			8,200		0			119			119			15		0
Receive	CPURNSA		2.335			Maturity		02/05/2028			10,610		23			368			391			26		0
Receive	CPURNSA		2.353			Maturity		05/09/2028			3,250		0			130			130			6		0
Receive	CPURNSA		2.360			Maturity		05/09/2028			4,890		0			199			199			9		0
Receive	CPURNSA		2.364			Maturity		05/10/2028			4,970		0			204			204			9		0
Receive	CPURNSA		2.379			Maturity		07/09/2028			3,700		(2	)		156			154			6		0
Pay	FRCPXTOB		1.000			Maturity		04/15/2020		EUR	950		0			(5	)		(5	)		0		(1	)
Pay	FRCPXTOB		1.160			Maturity		08/15/2020			430		0			(5	)		(5	)		0		0
Pay	FRCPXTOB		1.345			Maturity		06/15/2021			3,900		0			(57	)		(57	)		0		(3	)
Receive	FRCPXTOB		1.350			Maturity		01/15/2023			6,100		2			119			121			10		0
Receive	FRCPXTOB		1.575			Maturity		01/15/2028			2,590		0			102			102			8		0
Receive	FRCPXTOB		1.590			Maturity		02/15/2028			10,690		0			447			447			32		0
Receive	FRCPXTOB		1.606			Maturity		02/15/2028			1,560		0			68			68			5		0
Receive	FRCPXTOB		1.621			Maturity		07/15/2028			7,430		0			323			323			20		0
Receive	FRCPXTOB		1.910			Maturity		01/15/2038			1,890		5			147			152			5		0
Receive	UKRPI		3.513			Maturity		09/15/2028		GBP	3,700		0			(17	)		(17	)		28		0
Receive	UKRPI		3.578			Maturity		11/15/2028			7,710		0			46			46			59		0
Receive	UKRPI		3.593			Maturity		11/15/2028			3,380		0			28			28			26		0
Receive	UKRPI		3.595			Maturity		11/15/2028			1,760		0			15			15			13		0
Receive	UKRPI		3.633			Maturity		12/15/2028			3,500		0			48			48			25		0
Receive	UKRPI		3.350			Maturity		05/15/2030			6,870		97			(145	)		(48	)		63		0
Receive	UKRPI		3.400			Maturity		06/15/2030			17,400		192			(171	)		21			163		0
Receive	UKRPI		3.325			Maturity		08/15/2030			27,300		(70	)		(592	)		(662	)		240		0
Receive	UKRPI		3.300			Maturity		12/15/2030			400		(19	)		1			(18	)		4		0
Receive	UKRPI		3.470			Maturity		09/15/2032			16,010		0			(298	)		(298	)		176		0
Receive	UKRPI		3.500			Maturity		09/15/2033			770		1			(15	)		(14	)		9		0
Receive	UKRPI		3.579			Maturity		10/15/2033			1,390		0			14			14			17		0
Receive	UKRPI		3.358			Maturity		04/15/2035			2,700		(60	)		(7	)		(67	)		39		0
Pay	UKRPI		3.585			Maturity		10/15/2046			4,800		(322	)		31			(291	)		0		(139	)
Pay	UKRPI		3.428			Maturity		03/15/2047			9,740		609			(71	)		538			0		(279	)
												$	(1,963	)	$	810		$	(1,153	)	$	1,602	$	(1,720	)
Total Swap Agreements												$	(3,934	)	$	1,792		$	(2,142	)	$	1,603	$	(1,819	)

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 21

Schedule of Investments PIMCO Real Return Portfolio (Cont.)

FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED SUMMARY

The following is a summary of the market value and variation margin of Exchange-Traded or Centrally Cleared Financial Derivative Instruments as of December 31, 2018:

	Financial Derivative Assets								Financial Derivative Liabilities
	Market Value		Variation Margin Asset				Total		Market Value			Variation Margin Liability						Total
	Purchased Options		Futures		Swap Agreements				Written Options			Futures			Swap Agreements
Total Exchange-Traded or Centrally Cleared	$	2	$	300	$	1,603	$	1,905	$	(255	)	$	(1,229	)	$	(1,819	)	$	(3,303	)

(l) Securities with an aggregate market value of $15,717 and cash of $7,723 have been pledged as collateral for exchange-traded and centrally cleared financial derivative instruments as of December 31, 2018. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information regarding master netting arrangements.

⁽¹⁾ If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽²⁾ If the Portfolio is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽³⁾ Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on sovereign issues as of period end serve as indicators of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

⁽⁴⁾ The maximum potential amount the Portfolio could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

⁽⁵⁾ The prices and resulting values for credit default swap agreements serve as indicators of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced indices’ credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

⁽⁶⁾ This instrument has a forward starting effective date. See Note 2, Securities Transactions and Investment Income, in the Notes to Financial Statements for further information.

(m)  FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER

FORWARD FOREIGN CURRENCY CONTRACTS:

Counterparty	Settlement Month		Currency to be Delivered		Currency to be Received		Unrealized Appreciation/ (Depreciation)
							Asset		Liability
BOA		01/2019	ARS	37,612	$	924	$	0	$	(57	)
		01/2019	CAD	12,193		9,157		223		0
		01/2019	EUR	38,586		44,052		0		(187	)
BPS		01/2019	BRL	76,561		20,652		899		0
		01/2019	$	19,749	BRL	76,561		9		(5	)
		03/2019		143	INR	10,233		3		0
BRC		01/2019		972	ARS	37,612		9		0
		04/2019	ARS	41,878	$	972		0		0
CBK		01/2019	AUD	35,387		25,924		994		0
		01/2019	BRL	25,859		6,769		106		(9	)
		01/2019	GBP	2,122		2,717		11		0
		01/2019	NZD	182		125		3		0
		01/2019	$	6,674	BRL	25,859		0		(2	)
		02/2019	AUD	2,800	$	2,034		60		0
		02/2019	CAD	5,990		4,533		141		0
		02/2019	CHF	124		124		0		(2	)
		02/2019	JPY	1,875,000		16,626		0		(519	)
		02/2019	$	4,669	COP	14,906,815		0		(89	)
		03/2019	KRW	4,657,575	$	4,156		0		(38	)
DUB		01/2019	BRL	6,795		1,754		0		0
		01/2019	$	1,756	BRL	6,795		0		(3	)
		02/2019	BRL	6,795	$	1,752		2		0
		03/2019	$	2,979	IDR	43,788,900		31		0
FBF		04/2019	CNH	33,920	$	4,835		0		(103	)
GLM		01/2019	AUD	2,193		1,563		19		0
		01/2019	BRL	28,009		7,228		2		0

22 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

Counterparty	Settlement Month		Currency to be Delivered		Currency to be Received		Unrealized Appreciation/ (Depreciation)
							Asset		Liability
		01/2019	CAD	400	$	302	$	9	$	0
		01/2019	GBP	37,772		48,269		131		(24	)
		01/2019	JPY	64,600		573		0		(17	)
		01/2019	$	7,252	BRL	28,009		3		(28	)
		01/2019		6,523	EUR	5,738		55		0
		01/2019		1,371	GBP	1,082		9		0
		01/2019		1,770	RUB	117,243		0		(92	)
		04/2019	BRL	5,950	$	1,523		0		(2	)
HUS		01/2019	MXN	23,788		1,249		43		0
		01/2019	$	17	ARS	681		0		0
		01/2019		95	MXN	1,917		2		0
		02/2019	JPY	1,875,000	$	16,691		0		(454	)
		02/2019	$	22	ARS	913		1		0
IND		01/2019	CAD	1,700	$	1,283		37		0
		01/2019	NZD	23,372		15,900		211		0
		01/2019	$	6,481	JPY	734,686		224		0
JPM		01/2019	BRL	90,934	$	24,471		1,009		0
		01/2019	$	676	ARS	26,254		13		0
		01/2019		23,300	BRL	90,934		163		0
		01/2019		1,273	GBP	1,014		20		0
		04/2019		4,866	CNH	33,583		22		0
MSB		01/2019	BRL	66,984	$	17,270		4		(17	)
		01/2019	$	17,432	BRL	66,984		77		(225	)
		02/2019		1,495		5,871		17		0
MYI		01/2019	CAD	1,200	$	906		27		0
SCX		01/2019	BRL	39,000		10,445		383		0
		01/2019	CAD	24,100		18,259		606		0
		01/2019	$	9,988	BRL	39,000		74		0
SOG		01/2019		2,221	RUB	147,156		0		(115	)
SSB		03/2019	SGD	2,762	$	2,021		0		(9	)
		03/2019	TWD	61,519		2,012		0		(14	)
		03/2019	$	155	MYR	650		2		0
UAG		01/2019		2,135	AUD	3,000		0		(21	)
		07/2019	AUD	3,000	$	2,141		21		0
Total Forward Foreign Currency Contracts							$	5,675	$	(2,032	)

PURCHASED OPTIONS:

CREDIT DEFAULT SWAPTIONS ON CREDIT INDICES

Counterparty	Description	Buy/Sell Protection	Exercise Rate			Expiration Date		Notional Amount		Cost		Market Value
BPS	Put - OTC CDX.IG-31 5-Year Index	Buy		1.800	%		02/20/2019	$	21,400	$	3	$	1
GST	Put - OTC CDX.IG-31 5-Year Index	Buy		2.000			02/20/2019		111,700		11		3
Total Purchased Options										$	14	$	4

WRITTEN OPTIONS:

CREDIT DEFAULT SWAPTIONS ON CREDIT INDICES

Counterparty	Description	Buy/Sell Protection	Exercise Rate	Expiration Date		Notional Amount		Premiums (Received)			Market Value
BOA	Put - OTC CDX.IG-31 5-Year Index	Sell	0.850%		01/16/2019	$	5,200	$	(8	)	$	(14	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	0.900		01/16/2019		9,600		(14	)		(16	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	0.950		02/20/2019		4,700		(10	)		(13	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.000		02/20/2019		6,200		(13	)		(13	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.100		02/20/2019		2,400		(3	)		(3	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.000		03/20/2019		4,700		(9	)		(15	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.200		03/20/2019		7,100		(8	)		(12	)
BPS	Put - OTC CDX.IG-31 5-Year Index	Sell	1.000		02/20/2019		4,000		(5	)		(9	)
BRC	Put - OTC CDX.IG-31 5-Year Index	Sell	1.000		01/16/2019		4,100		(3	)		(3	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.050		02/20/2019		3,700		(6	)		(6	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.100		03/20/2019		2,100		(4	)		(5	)

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 23

Schedule of Investments PIMCO Real Return Portfolio (Cont.)

Counterparty	Description	Buy/Sell Protection		Exercise Rate		Expiration Date		Notional Amount		Premiums (Received)			Market Value
CBK	Put - OTC CDX.IG-31 5-Year Index		Sell		0.950%		01/16/2019	$	3,900	$	(5	)	$	(4	)
	Put - OTC CDX.IG-31 5-Year Index		Sell		1.000		01/16/2019		18,800		(15	)		(11	)
	Put - OTC CDX.IG-31 5-Year Index		Sell		0.950		02/20/2019		7,800		(15	)		(25	)
	Put - OTC CDX.IG-31 5-Year Index		Sell		1.050		02/20/2019		2,900		(5	)		(5	)
	Put - OTC CDX.IG-31 5-Year Index		Sell		1.100		02/20/2019		2,300		(2	)		(3	)
	Put - OTC CDX.IG-31 5-Year Index		Sell		1.050		03/20/2019		4,400		(7	)		(12	)
	Put - OTC CDX.IG-31 5-Year Index		Sell		1.100		03/20/2019		4,000		(8	)		(9	)
	Put - OTC CDX.IG-31 5-Year Index		Sell		1.200		03/20/2019		4,800		(5	)		(8	)
GST	Put - OTC CDX.IG-31 5-Year Index		Sell		0.900		01/16/2019		6,800		(7	)		(11	)
	Put - OTC CDX.IG-31 5-Year Index		Sell		1.100		02/20/2019		2,400		(2	)		(3	)
	Put - OTC CDX.IG-31 5-Year Index		Sell		2.400		09/18/2019		4,800		(8	)		(9	)
	Put - OTC iTraxx Europe 30 5-Year Index		Sell		2.400		09/18/2019	EUR	1,500		(3	)		(2	)
JPM	Put - OTC CDX.IG-31 5-Year Index		Sell		0.950		02/20/2019	$	4,200		(8	)		(12	)
	Put - OTC CDX.IG-31 5-Year Index		Sell		1.200		03/20/2019		3,600		(7	)		(6	)
MYC	Put - OTC CDX.IG-31 5-Year Index		Sell		0.900		01/16/2019		3,900		(6	)		(6	)
	Put - OTC CDX.IG-31 5-Year Index		Sell		1.100		02/20/2019		4,700		(5	)		(6	)
										$	(191	)	$	(241	)

FOREIGN CURRENCY OPTIONS

Counterparty	Description	Strike Price		Expiration Date		Notional Amount			Premiums (Received)			Market Value
HUS	Put - OTC EUR versus USD	$	1.100		02/13/2019		EUR	6,802	$	(40	)	$	(4	)

INFLATION-CAPPED OPTIONS

Counterparty	Description	Initial Index		Floating Rate	Expiration Date(1)		Notional Amount				Premiums (Received)			Market Value
CBK	Floor - OTC CPURNSA		216.687	Maximum of [(1 + 0.000%)10 - (Final Index/Initial Index)] or 0		04/07/2020			$	33,400	$	(298	)	$	0
	Floor - OTC CPURNSA		217.965	Maximum of [(1 + 0.000%)10 - (Final Index/Initial Index)] or 0		09/29/2020				4,400		(57	)		0
GLM	Cap - OTC CPALEMU		100.151	Maximum of [(Final Index/Initial Index - 1) - 3.000%] or 0		06/22/2035		EU	R	8,600		(391	)		(32	)
JPM	Cap - OTC CPURNSA		233.916	Maximum of [(Final Index/Initial Index - 1) - 4.000%] or 0		04/22/2024			$	34,300		(250	)		0
	Cap - OTC CPURNSA		234.781	Maximum of [(Final Index/Initial Index - 1) - 4.000%] or 0		05/16/2024				2,900		(20	)		0
	Floor - OTC YOY CPURNSA		234.812	Maximum of [0.000% - (Final Index/Initial Index - 1)] or 0		03/24/2020				33,100		(374	)		(15	)
	Floor - OTC YOY CPURNSA		238.654	Maximum of [0.000% - (Final Index/Initial Index - 1)] or 0		10/02/2020				14,800		(273	)		(14	)
											$	(1,663	)	$	(61	)

INTEREST RATE-CAPPED OPTIONS

Counterparty	Description	Exercise Rate		Floating Rate Index	Expiration Date		Notional Amount		Premiums (Received)			Market Value
MYC	Call - OTC  1-Year Interest Rate Floor(2)		0.000%	10-Year USD-ISDA -2-Year  USD-ISDA		01/02/2020	$	164,800	$	(128	)	$	(81	)
Total Written Options									$	(2,022	)	$	(387	)

SWAP AGREEMENTS:

CREDIT DEFAULT SWAPS ON SOVEREIGN ISSUES - SELL PROTECTION⁽³⁾

Counterparty	Reference Entity	Fixed Receive Rate		Payment Frequency	Maturity Date		Implied Credit Spread at December 31, 2018(4)		Notional Amount(5)		Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)		Swap Agreements, at Value
																Asset		Liability
DUB	Italy Government International Bond		1.000%	Quarterly		03/20/2019		0.227%	$	7,700	$	(133	)	$	149	$	16	$	0

CREDIT DEFAULT SWAPS ON CREDIT INDICES - SELL PROTECTION⁽³⁾

Counterparty	Index/Tranches	Fixed Receive Rate		Payment Frequency		Maturity Date		Notional Amount(5)		Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)		Swap Agreements, at Value(6)
															Asset		Liability
DUB	CMBX.NA.AAA.8 Index		0.500%		Monthly		10/17/2057		$    4,300	$	(224	)	$	233	$	9	$	0
GST	CMBX.NA.AAA.8 Index		0.500		Monthly		10/17/2057		1,400		(73	)		76		3		0
										$	(297	)	$	309	$	12	$	0

24 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

INTEREST RATE SWAPS

Counterparty	Pay/Receive Floating Rate	Floating Rate Index	Fixed Rate			Payment Frequency	Maturity Date		Notional Amount			Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Swap Agreements, at Value
																		Asset		Liability
BOA	Pay	CPURNSA		1.570	%	Maturity		11/23/2020		$	1,500	$	0		$	14		$	14	$	0
BRC	Receive	1-Year ILS-TELBOR		0.374		Annual		06/20/2020		ILS	14,310		0			8			8		0
	Pay	1-Year ILS-TELBOR		1.950		Annual		06/20/2028			3,080		0			(6	)		0		(6	)
DUB	Receive	1-Year ILS-TELBOR		0.414		Annual		06/20/2020			13,800		0			5			5		0
	Pay	1-Year ILS-TELBOR		2.100		Annual		06/20/2028			2,950		0			5			5		0
GLM	Receive	1-Year ILS-TELBOR		0.290		Annual		02/16/2020			27,210		0			4			4		0
	Receive	1-Year ILS-TELBOR		0.270		Annual		03/21/2020			16,700		0			8			8		0
	Receive	1-Year ILS-TELBOR		0.370		Annual		06/20/2020			11,170		1			6			7		0
	Pay	1-Year ILS-TELBOR		1.971		Annual		02/16/2028			5,730		0			8			8		0
	Pay	1-Year ILS-TELBOR		1.883		Annual		03/21/2028			3,500		0			(6	)		0		(6	)
	Pay	1-Year ILS-TELBOR		1.998		Annual		06/20/2028			2,390		0			(2	)		0		(2	)
HUS	Receive	1-Year ILS-TELBOR		0.370		Annual		06/20/2020			8,850		0			5			5		0
	Pay	1-Year ILS-TELBOR		1.998		Annual		06/20/2028			1,890		0			(2	)		0		(2	)
MYC	Pay	CPURNSA		1.788		Maturity		07/18/2026		$	5,200		0			(95	)		0		(95	)
	Pay	CPURNSA		1.810		Maturity		07/19/2026			12,000		0			(191	)		0		(191	)
	Pay	CPURNSA		1.800		Maturity		07/20/2026			7,600		0			(128	)		0		(128	)
	Pay	CPURNSA		1.805		Maturity		09/20/2026			2,200		0			(34	)		0		(34	)
												$	1		$	(401	)	$	64	$	(464	)
Total Swap Agreements												$	(429	)	$	57		$	92	$	(464	)

FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER SUMMARY

The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral pledged/(received) as of December 31, 2018:

	Financial Derivative Assets								Financial Derivative Liabilities
Counterparty	Forward Foreign Currency Contracts		Purchased Options		Swap Agreements		Total Over the Counter		Forward Foreign Currency Contracts			Written Options			Swap Agreements			Total Over the Counter			Net Market Value of OTC Derivatives			Collateral Pledged/ (Received)			Net Exposure(7)
BOA	$	223	$	0	$	14	$	237	$	(244	)	$	(86	)	$	0		$	(330	)	$	(93	)	$	0		$	(93	)
BPS		911		1		0		912		(5	)		(9	)		0			(14	)		898			(1,010	)		(112	)
BRC		9		0		8		17		0			(14	)		(6	)		(20	)		(3	)		0			(3	)
CBK		1,315		0		0		1,315		(659	)		(77	)		0			(736	)		579			(850	)		(271	)
DUB		33		0		35		68		(3	)		0			0			(3	)		65			(70	)		(5	)
FBF		0		0		0		0		(103	)		0			0			(103	)		(103	)		0			(103	)
GLM		228		0		27		255		(163	)		(32	)		(8	)		(203	)		52			(630	)		(578	)
GST		0		3		3		6		0			(25	)		0			(25	)		(19	)		0			(19	)
HUS		46		0		5		51		(454	)		(4	)		(2	)		(460	)		(409	)		307			(102	)
IND		472		0		0		472		0			0			0			0			472			(320	)		152
JPM		1,227		0		0		1,227		0			(47	)		0			(47	)		1,180			(1,230	)		(50	)
MSB		98		0		0		98		(242	)		0			0			(242	)		(144	)		0			(144	)
MYC		0		0		0		0		0			(93	)		(448	)		(541	)		(541	)		576			35
MYI		27		0		0		27		0			0			0			0			27			270			297
SCX		1,063		0		0		1,063		0			0			0			0			1,063			(930	)		133
SOG		0		0		0		0		(115	)		0			0			(115	)		(115	)		0			(115	)
SSB		2		0		0		2		(23	)		0			0			(23	)		(21	)		0			(21	)
UAG		21		0		0		21		(21	)		0			0			(21	)		0			0			0
Total Over the Counter	$	5,675	$	4	$	92	$	5,771	$	(2,032	)	$	(387	)	$	(464	)	$	(2,883	)

(n) Securities with an aggregate market value of $1,243 have been pledged as collateral for financial derivative instruments as governed by International Swaps and Derivatives Association, Inc. master agreements as of December 31, 2018.

⁽¹⁾ YOY options may have a series of expirations.

⁽²⁾ The underlying instrument has a forward starting effective date. See Note 2, Securities Transactions and Investment Income, in the Notes to Financial Statements for further information.

⁽³⁾ If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽⁴⁾ Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on sovereign issues as of period end serve as indicators of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 25

Schedule of Investments PIMCO Real Return Portfolio (Cont.)

⁽⁵⁾ The maximum potential amount the Portfolio could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

⁽⁶⁾ The prices and resulting values for credit default swap agreements serve as indicators of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced indices’ credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

⁽⁷⁾ Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information regarding master netting arrangements.

FAIR VALUE OF FINANCIAL DERIVATIVE INSTRUMENTS

The following is a summary of the fair valuation of the Portfolio’s derivative instruments categorized by risk exposure. See Note 7, Principal Risks, in the Notes to Financial Statements on risks of the Portfolio.

Fair Values of Financial Derivative Instruments on the Statement of Assets and Liabilities as of December 31, 2018:

	Derivatives not accounted for as hedging instruments
	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Exchange Contracts		Interest Rate Contracts		Total
Financial Derivative Instruments - Assets
Exchange-traded or centrally cleared
Purchased Options	$	0	$	0	$	0	$	0	$	2	$	2
Futures		0		0		0		0		300		300
Swap Agreements		0		1		0		0		1,602		1,603
	$	0	$	1	$	0	$	0	$	1,904	$	1,905
Over the counter
Forward Foreign Currency Contracts	$	0	$	0	$	0	$	5,675	$	0	$	5,675
Purchased Options		0		4		0		0		0		4
Swap Agreements		0		28		0		0		64		92
	$	0	$	32	$	0	$	5,675	$	64	$	5,771
	$	0	$	33	$	0	$	5,675	$	1,968	$	7,676
Financial Derivative Instruments - Liabilities
Exchange-traded or centrally cleared
Written Options	$	0	$	0	$	0	$	0	$	255	$	255
Futures		0		0		0		0		1,229		1,229
Swap Agreements		0		99		0		0		1,720		1,819
	$	0	$	99	$	0	$	0	$	3,204	$	3,303
Over the counter
Forward Foreign Currency Contracts	$	0	$	0	$	0	$	2,032	$	0	$	2,032
Written Options		0		241		0		4		142		387
Swap Agreements		0		0		0		0		464		464
	$	0	$	241	$	0	$	2,036	$	606	$	2,883
	$	0	$	340	$	0	$	2,036	$	3,810	$	6,186

The effect of Financial Derivative Instruments on the Statement of Operations for the period ended December 31, 2018:

	Derivatives not accounted for as hedging instruments
	Commodity Contracts		Credit Contracts			Equity Contracts		Foreign Exchange Contracts		Interest Rate Contracts			Total
Net Realized Gain (Loss) on Financial Derivative Instruments
Exchange-traded or centrally cleared
Purchased Options	$	0	$	0		$	0	$	0	$	133		$	133
Written Options		0		0			0		0		1,223			1,223
Futures		0		0			0		0		4,311			4,311
Swap Agreements		0		(1,997	)		0		0		9,308			7,311
	$	0	$	(1,997	)	$	0	$	0	$	14,975		$	12,978
Over the counter
Forward Foreign Currency Contracts	$	0	$	0		$	0	$	10,057	$	0		$	10,057
Purchased Options		0		0			0		31		(891	)		(860	)
Written Options		0		381			0		195		810			1,386
Swap Agreements		0		369			0		0		110			479
	$	0	$	750		$	0	$	10,283	$	29		$	11,062
	$	0	$	(1,247	)	$	0	$	10,283	$	15,004		$	24,040

26 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

	Derivatives not accounted for as hedging instruments
	Commodity Contracts		Credit Contracts			Equity Contracts		Foreign Exchange Contracts		Interest Rate Contracts			Total
Net Change in Unrealized Appreciation (Depreciation) on Financial Derivative Instruments
Exchange-traded or centrally cleared
Purchased Options	$	0	$	0		$	0	$	0	$	(41	)	$	(41	)
Written Options		0		0			0		0		(212	)		(212	)
Futures		0		0			0		0		(9,582	)		(9,582	)
Swap Agreements		0		1,499			0		0		(2,167	)		(668	)
	$	0	$	1,499		$	0	$	0	$	(12,002	)	$	(10,503	)
Over the counter
Forward Foreign Currency Contracts	$	0	$	0		$	0	$	12,977	$	0		$	12,977
Purchased Options		0		(10	)		0		0		990			980
Written Options		0		(49	)		0		35		(153	)		(167	)
Swap Agreements		0		(338	)		0		0		732			394
	$	0	$	(397	)	$	0	$	13,012	$	1,569		$	14,184
	$	0	$	1,102		$	0	$	13,012	$	(10,433	)	$	3,681

FAIR VALUE MEASUREMENTS

The following is a summary of the fair valuations according to the inputs used as of December 31, 2018 in valuing the Portfolio’s assets and liabilities:

Category and Subcategory	Level 1		Level 2		Level 3		Fair Value at 12/31/2018
Investments in Securities, at Value
Loan Participations and Assignments	$	0	$	74	$	0	$	74
Corporate Bonds & Notes
Banking & Finance		0		93,746		0		93,746
Industrials		0		57,894		0		57,894
Specialty Finance		0		4,825		0		4,825
Utilities		0		37,670		0		37,670
Municipal Bonds & Notes
West Virginia		0		614		0		614
U.S. Government Agencies		0		354,655		0		354,655
U.S. Treasury Obligations		0		2,008,328		0		2,008,328
Non-Agency Mortgage-Backed Securities		0		44,060		0		44,060
Asset-Backed Securities		0		130,370		0		130,370
Sovereign Issues		0		110,123		0		110,123
Short-Term Instruments
Certificates of Deposit		0		11,407		0		11,407
Commercial Paper		0		24,045		0		24,045
Repurchase Agreements		0		596		0		596
Argentina Treasury Bills		0		1,198		0		1,198
Japan Treasury Bills		0		34,218		0		34,218
U.S. Treasury Bills		0		574		0		574
	$	0	$	2,914,397	$	0	$	2,914,397
Investments in Affiliates, at Value
Short-Term Instruments
Central Funds Used for Cash Management Purposes	$	75,916	$	0	$	0	$	75,916
Total Investments	$	75,916	$	2,914,397	$	0	$	2,990,313

Category and Subcategory	Level 1			Level 2			Level 3		Fair Value at 12/31/2018
Short Sales, at Value - Liabilities
U.S. Government Agencies	$	0		$	(44,208	)	$	0	$	(44,208	)
Financial Derivative Instruments - Assets
Exchange-traded or centrally cleared		300			1,605			0		1,905
Over the counter		0			5,771			0		5,771
	$	300		$	7,376		$	0	$	7,676
Financial Derivative Instruments - Liabilities
Exchange-traded or centrally cleared		(1,306	)		(1,997	)		0		(3,303	)
Over the counter		0			(2,883	)		0		(2,883	)
	$	(1,306	)	$	(4,880	)	$	0	$	(6,186	)
Total Financial Derivative Instruments	$	(1,006	)	$	2,496		$	0	$	1,490
Totals	$	74,910		$	2,872,685		$	0	$	2,947,595

There were no significant transfers into or out of Level 3 during the period ended December 31, 2018.

ANNUAL REPORT DECEMBER 31, 2018 27

Notes to Financial Statements

1. ORGANIZATION

PIMCO Variable Insurance Trust (the “Trust”) is a Delaware statutory trust established under a trust instrument dated October 3, 1997. The Trust is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Trust is designed to be used as an investment vehicle by separate accounts of insurance companies that fund variable annuity contracts and variable life insurance policies and by qualified pension and retirement plans. Information presented in these financial statements pertains to the Institutional Class, Administrative Class and Advisor Class shares of the PIMCO Real Return Portfolio (the “Portfolio”) offered by the Trust. Pacific Investment Management Company LLC (“PIMCO”) serves as the investment adviser (the “Adviser”) for the Portfolio.

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Portfolio is treated as an investment company under the reporting requirements of U.S. GAAP. The functional and reporting currency for the Portfolio is the U.S. dollar. The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

(a) Securities Transactions and Investment Income  Securities transactions are recorded as of the trade date for financial reporting purposes. Securities purchased or sold on a when-issued or delayed-delivery basis may be settled beyond a standard settlement period for the security after the trade date. Realized gains (losses) from securities sold are recorded on the identified cost basis. Dividend income is recorded on the ex-dividend date, except certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Portfolio is informed of the ex-dividend date. Interest income, adjusted for the accretion of discounts and amortization of premiums, is recorded on the accrual basis from settlement date, with the exception of securities with a forward starting effective date, where interest income is recorded on the accrual basis from effective date. For convertible securities, premiums attributable to the conversion feature are not amortized. Estimated tax liabilities on certain foreign securities are recorded on an accrual basis and are reflected as components of interest income or net change in unrealized appreciation (depreciation) on investments on the Statement of

Operations, as appropriate. Tax liabilities realized as a result of such security sales are reflected as a component of net realized gain (loss) on investments on the Statement of Operations. Paydown gains (losses) on mortgage-related and other asset-backed securities, if any, are recorded as components of interest income on the Statement of Operations. Income or short-term capital gain distributions received from registered investment companies, if any, are recorded as dividend income. Long-term capital gain distributions received from registered investment companies, if any, are recorded as realized gains.

Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivable when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is probable.

(b) Foreign Currency Translation  The market values of foreign securities, currency holdings and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the current exchange rates each business day. Purchases and sales of securities and income and expense items denominated in foreign currencies, if any, are translated into U.S. dollars at the exchange rate in effect on the transaction date. The Portfolio does not separately report the effects of changes in foreign exchange rates from changes in market prices on securities held. Such changes are included in net realized gain (loss) and net change in unrealized appreciation (depreciation) from investments on the Statement of Operations. The Portfolio may invest in foreign currency-denominated securities and may engage in foreign currency transactions either on a spot (cash) basis at the rate prevailing in the currency exchange market at the time or through a forward foreign currency contract. Realized foreign exchange gains (losses) arising from sales of spot foreign currencies, currency gains (losses) realized between the trade and settlement dates on securities transactions and the difference between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid are included in net realized gain (loss) on foreign currency transactions on the Statement of Operations. Net unrealized foreign exchange gains (losses) arising from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period are included in net change in unrealized appreciation (depreciation) on foreign currency assets and liabilities on the Statement of Operations.

(c) Multi-Class Operations  Each class offered by the Trust has equal rights as to assets and voting privileges (except that shareholders of a class have exclusive voting rights regarding any matter relating solely to that class of shares). Income and non-class specific expenses are

28 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

allocated daily to each class on the basis of the relative net assets. Realized and unrealized capital gains (losses) are allocated daily based on the relative net assets of each class of the Portfolio. Class specific expenses, where applicable, currently include supervisory and administrative and distribution and servicing fees. Under certain circumstances, the per share net asset value (“NAV”) of a class of the Portfolio’s shares may be different from the per share NAV of another class of shares as a result of the different daily expense accruals applicable to each class of shares.

(d) Distributions to Shareholders  Distributions from net investment income, if any, are declared daily and distributed to shareholders monthly. Net realized capital gains earned by the Portfolio, if any, will be distributed no less frequently than once each year.

Income distributions and capital gain distributions are determined in accordance with income tax regulations which may differ from U.S. GAAP. Differences between tax regulations and U.S. GAAP may cause timing differences between income and capital gain recognition. Further, the character of investment income and capital gains may be different for certain transactions under the two methods of accounting. As a result, income distributions and capital gain distributions declared during a fiscal period may differ significantly from the net investment income (loss) and realized gains (losses) reported on the Portfolio’s annual financial statements presented under U.S. GAAP.

If the Portfolio estimates that a portion of its distribution may be comprised of amounts from sources other than net investment income in accordance with its policies and good accounting practices, the Portfolio will notify shareholders of the estimated composition of such distribution through a Section 19 Notice. For these purposes, the Portfolio estimates the source or sources from which a distribution is paid, to the close of the period as of which it is paid, in reference to its internal accounting records and related accounting practices. If, based on such accounting records and practices, it is estimated that a particular distribution does not include capital gains or paid-in surplus or other capital sources, a Section 19 Notice generally would not be issued. It is important to note that differences exist between the Portfolio’s daily internal accounting records and practices, the Portfolio’s financial statements presented in accordance with U.S. GAAP, and recordkeeping practices under income tax regulations. For instance, the Portfolio’s internal accounting records and practices may take into account, among other factors, tax-related characteristics of certain sources of distributions that differ from treatment under U.S. GAAP. Examples of such differences may include, among others, the treatment of paydowns on mortgage-backed securities purchased at a discount and periodic payments under interest rate swap contracts. Accordingly, among other consequences, it is possible that the Portfolio may not issue a Section 19 Notice in situations where the Portfolio’s

financial statements prepared later and in accordance with U.S. GAAP and/or the final tax character of those distributions might later report that the sources of those distributions included capital gains and/or a return of capital. Final determination of a distribution’s tax character will be provided to shareholders when such information is available.

Distributions classified as a tax basis return of capital, if any, are reflected on the Statements of Changes in Net Assets and have been recorded to paid in capital on the Statement of Assets and Liabilities. In addition, other amounts have been reclassified between distributable earnings (accumulated loss) and paid in capital on the Statement of Assets and Liabilities to more appropriately conform U.S. GAAP to tax characterizations of distributions.

(e) New Accounting Pronouncements  In August 2016, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”), ASU 2016-15, which amends Accounting Standards Codification (“ASC”) 230 to clarify guidance on the classification of certain cash receipts and cash payments in the Statement of Cash Flows. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In November 2016, the FASB issued ASU 2016-18 which amends ASC 230 to provide guidance on the classification and presentation of changes in restricted cash and restricted cash equivalents on the Statement of Cash Flows. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In March 2017, the FASB issued ASU 2017-08 which provides guidance related to the amortization period for certain purchased callable debt securities held at a premium. The ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In August 2018, the FASB issued ASU 2018-13 which modifies certain disclosure requirements for fair value measurements in ASC 820. The ASU is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. At this time, management has elected to early adopt the amendments that allow for removal of certain disclosure requirements. Management plans to adopt the amendments that require additional fair value measurement disclosures for annual periods beginning after December 15, 2019, and

ANNUAL REPORT DECEMBER 31, 2018 29

Notes to Financial Statements (Cont.)

interim periods within those annual periods. Management is currently evaluating the impact of these changes on the financial statements.

In August 2018, the U.S. Securities and Exchange Commission (“SEC”) adopted amendments to certain rules and forms for the purpose of disclosure update and simplification. The compliance date for these amendments is 30 days after date of publication in the Federal Register, which was on October 4, 2018. Management has adopted these amendments and the changes are incorporated throughout all periods presented in the financial statements.

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

(a) Investment Valuation Policies  The price of the Portfolio’s shares is based on the Portfolio’s NAV. The NAV of the Portfolio, or each of its share classes, as applicable, is determined by dividing the total value of portfolio investments and other assets, less any liabilities attributable to the Portfolio or class, by the total number of shares outstanding of the Portfolio or class.

On each day that the New York Stock Exchange (“NYSE”) is open, Portfolio shares are ordinarily valued as of the close of regular trading (“NYSE Close”). Information that becomes known to the Portfolio or its agents after the time as of which NAV has been calculated on a particular day will not generally be used to retroactively adjust the price of a security or the NAV determined earlier that day. The Portfolio reserves the right to change the time as of which its NAV is calculated if the Portfolio closes earlier, or as permitted by the SEC.

For purposes of calculating a NAV, portfolio securities and other assets for which market quotes are readily available are valued at market value. Market value is generally determined on the basis of official closing prices or the last reported sales prices, or if no sales are reported, based on quotes obtained from established market makers or prices (including evaluated prices) supplied by the Portfolio’s approved pricing services, quotation reporting systems and other third-party sources (together, “Pricing Services”). The Portfolio will normally use pricing data for domestic equity securities received shortly after the NYSE Close and does not normally take into account trading, clearances or settlements that take place after the NYSE Close. If market value pricing is used, a foreign (non-U.S.) equity security traded on a foreign exchange or on more than one exchange is typically valued using pricing information from the exchange considered by the Adviser to be the primary exchange. A foreign (non-U.S.) equity security will be valued as of the close of trading on the foreign exchange, or the NYSE Close, if the NYSE Close occurs before the end of trading on the foreign exchange. Domestic and foreign (non-U.S.) fixed income securities, non-exchange traded derivatives, and equity options are normally valued on the basis of quotes obtained from brokers and

dealers or Pricing Services using data reflecting the earlier closing of the principal markets for those securities. Prices obtained from Pricing Services may be based on, among other things, information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics. Certain fixed income securities purchased on a delayed-delivery basis are marked to market daily until settlement at the forward settlement date. Exchange-traded options, except equity options, futures and options on futures are valued at the settlement price determined by the relevant exchange. Swap agreements are valued on the basis of bid quotes obtained from brokers and dealers or market-based prices supplied by Pricing Services. The Portfolio’s investments in open-end management investment companies, other than exchange-traded funds (“ETFs”), are valued at the NAVs of such investments. Open-end management investment companies may include affiliated funds.

If a foreign (non-U.S.) equity security’s value has materially changed after the close of the security’s primary exchange or principal market but before the NYSE Close, the security may be valued at fair value based on procedures established and approved by the Board of Trustees of the Trust (the “Board”). Foreign (non-U.S.) equity securities that do not trade when the NYSE is open are also valued at fair value. With respect to foreign (non-U.S.) equity securities, the Portfolio may determine the fair value of investments based on information provided by Pricing Services and other third-party vendors, which may recommend fair value or adjustments with reference to other securities, indices or assets. In considering whether fair valuation is required and in determining fair values, the Portfolio may, among other things, consider significant events (which may be considered to include changes in the value of U.S. securities or securities indices) that occur after the close of the relevant market and before the NYSE Close. The Portfolio may utilize modeling tools provided by third-party vendors to determine fair values of foreign (non-U.S.) securities. For these purposes, any movement in the applicable reference index or instrument (“zero trigger”) between the earlier close of the applicable foreign market and the NYSE Close may be deemed to be a significant event, prompting the application of the pricing model (effectively resulting in daily fair valuations). Foreign exchanges may permit trading in foreign (non-U.S.) equity securities on days when the Trust is not open for business, which may result in the Portfolio’s portfolio investments being affected when shareholders are unable to buy or sell shares.

Senior secured floating rate loans for which an active secondary market exists to a reliable degree will be valued at the mean of the last available bid/ask prices in the market for such loans, as provided by a Pricing Service. Senior secured floating rate loans for which an active secondary market does not exist to a reliable degree will be valued at

30 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

fair value, which is intended to approximate market value. In valuing a senior secured floating rate loan at fair value, the factors considered may include, but are not limited to, the following: (a) the creditworthiness of the borrower and any intermediate participants, (b) the terms of the loan, (c) recent prices in the market for similar loans, if any, and (d) recent prices in the market for instruments of similar quality, rate, period until next interest rate reset and maturity.

Investments valued in currencies other than the U.S. dollar are converted to the U.S. dollar using exchange rates obtained from Pricing Services. As a result, the value of such investments and, in turn, the NAV of the Portfolio’s shares may be affected by changes in the value of currencies in relation to the U.S. dollar. The value of investments traded in markets outside the United States or denominated in currencies other than the U.S. dollar may be affected significantly on a day that the Trust is not open for business. As a result, to the extent that the Portfolio holds foreign (non-U.S.) investments, the value of those investments may change at times when shareholders are unable to buy or sell shares and the value of such investments will be reflected in the Portfolio’s next calculated NAV.

Investments for which market quotes or market based valuations are not readily available are valued at fair value as determined in good faith by the Board or persons acting at their direction. The Board has adopted methods for valuing securities and other assets in circumstances where market quotes are not readily available, and has delegated to the Adviser the responsibility for applying the fair valuation methods. In the event that market quotes or market based valuations are not readily available, and the security or asset cannot be valued pursuant to a Board approved valuation method, the value of the security or asset will be determined in good faith by the Board. Market quotes are considered not readily available in circumstances where there is an absence of current or reliable market-based data (e.g., trade information, bid/ask information, indicative market quotations (“Broker Quotes”), Pricing Services’ prices), including where events occur after the close of the relevant market, but prior to the NYSE Close, that materially affect the values of the Portfolio’s securities or assets. In addition, market quotes are considered not readily available when, due to extraordinary circumstances, the exchanges or markets on which the securities trade do not open for trading for the entire day and no other market prices are available. The Board has delegated, to the Adviser, the responsibility for monitoring significant events that may materially affect the values of the Portfolio’s securities or assets and for determining whether the value of the applicable securities or assets should be reevaluated in light of such significant events.

When the Portfolio uses fair valuation to determine the value of a portfolio security or other asset for purposes of calculating its NAV,

such investments will not be priced on the basis of quotes from the primary market in which they are traded, but rather may be priced by another method that the Board or persons acting at their direction believe reflects fair value. Fair valuation may require subjective determinations about the value of a security. While the Trust’s policy is intended to result in a calculation of the Portfolio’s NAV that fairly reflects security values as of the time of pricing, the Trust cannot ensure that fair values determined by the Board or persons acting at their direction would accurately reflect the price that the Portfolio could obtain for a security if it were to dispose of that security as of the time of pricing (for instance, in a forced or distressed sale). The prices used by the Portfolio may differ from the value that would be realized if the securities were sold. The Portfolio’s use of fair valuation may also help to deter “stale price arbitrage” as discussed under the “Frequent or Excessive Purchases, Exchanges and Redemptions” section in the Portfolio’s prospectus.

(b) Fair Value Hierarchy  U.S. GAAP describes fair value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into levels (Level 1, 2, or 3). The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Levels 1, 2, and 3 of the fair value hierarchy are defined as follows:

^∎  Level 1 — Quoted prices in active markets or exchanges for identical assets and liabilities.

^∎  Level 2 — Significant other observable inputs, which may include, but are not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market corroborated inputs.

^∎  Level 3 — Significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, which may include assumptions made by the Board or persons acting at their direction that are used in determining the fair value of investments.

In accordance with the requirements of U.S. GAAP, the amounts of transfers into and out of Level 3, if material, are disclosed in the Notes to Schedule of Investments for the Portfolio.

ANNUAL REPORT DECEMBER 31, 2018 31

Notes to Financial Statements (Cont.)

For fair valuations using significant unobservable inputs, U.S. GAAP requires a reconciliation of the beginning to ending balances for reported fair values that presents changes attributable to realized gain (loss), unrealized appreciation (depreciation), purchases and sales, accrued discounts (premiums), and transfers into and out of the Level 3 category during the period. The end of period value is used for the transfers between Levels of the Portfolio’s assets and liabilities. Additionally, U.S. GAAP requires quantitative information regarding the significant unobservable inputs used in the determination of fair value of assets or liabilities categorized as Level 3 in the fair value hierarchy. In accordance with the requirements of U.S. GAAP, a fair value hierarchy, and if material, a Level 3 reconciliation and details of significant unobservable inputs, have been included in the Notes to Schedule of Investments for the Portfolio.

(c) Valuation Techniques and the Fair Value Hierarchy

Level 1 and Level 2 trading assets and trading liabilities, at fair value  The valuation methods (or “techniques”) and significant inputs used in determining the fair values of portfolio securities or other assets and liabilities categorized as Level 1 and Level 2 of the fair value hierarchy are as follows:

Fixed income securities including corporate, convertible and municipal bonds and notes, U.S. government agencies, U.S. treasury obligations, sovereign issues, bank loans, convertible preferred securities and non-U.S. bonds are normally valued on the basis of quotes obtained from brokers and dealers or Pricing Services that use broker-dealer quotations, reported trades or valuation estimates from their internal pricing models. The Pricing Services’ internal models use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar assets. Securities that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

Fixed income securities purchased on a delayed-delivery basis or as a repurchase commitment in a sale-buyback transaction are marked to market daily until settlement at the forward settlement date and are categorized as Level 2 of the fair value hierarchy.

Mortgage-related and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also normally valued by Pricing Services that use broker-dealer quotations, reported trades or valuation estimates from their internal pricing models. The pricing models for these securities usually consider tranche-level attributes, current market data, estimated cash flows and market-based yield spreads for each tranche, and incorporate deal collateral performance, as available. Mortgage-related and asset-backed securities that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

Common stocks, ETFs, exchange-traded notes and financial derivative instruments, such as futures contracts, rights and warrants, or options on futures that are traded on a national securities exchange, are stated at the last reported sale or settlement price on the day of valuation. To the extent these securities are actively traded and valuation adjustments are not applied, they are categorized as Level 1 of the fair value hierarchy.

Valuation adjustments may be applied to certain securities that are solely traded on a foreign exchange to account for the market movement between the close of the foreign market and the NYSE Close. These securities are valued using Pricing Services that consider the correlation of the trading patterns of the foreign security to the intraday trading in the U.S. markets for investments. Securities using these valuation adjustments are categorized as Level 2 of the fair value hierarchy. Preferred securities and other equities traded on inactive markets or valued by reference to similar instruments are also categorized as Level 2 of the fair value hierarchy.

Investments in registered open-end investment companies (other than ETFs) will be valued based upon the NAVs of such investments and are categorized as Level 1 of the fair value hierarchy. Investments in unregistered open-end investment companies will be calculated based upon the NAVs of such investments and are considered Level 1 provided that the NAVs are observable, calculated daily and are the value at which both purchases and sales will be conducted.

Equity exchange-traded options and over the counter financial derivative instruments, such as forward foreign currency contracts and options contracts derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors. These contracts are normally valued on the basis of quotes obtained from a quotation reporting system, established market makers or Pricing Services (normally determined as of the NYSE Close). Depending on the product and the terms of the transaction, financial derivative instruments can be valued by Pricing Services using a series of techniques, including simulation pricing models. The pricing models use inputs that are observed from actively quoted markets such as quoted prices, issuer details, indices, bid/ask spreads, interest rates, implied volatilities, yield curves, dividends and exchange rates. Financial derivative instruments that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

Centrally cleared swaps and over the counter swaps derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors. They are valued using a broker-dealer bid quotation or on market-based prices provided by Pricing Services (normally determined as of the NYSE close). Centrally cleared

32 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

swaps and over the counter swaps can be valued by Pricing Services using a series of techniques, including simulation pricing models. The pricing models may use inputs that are observed from actively quoted markets such as the overnight index swap rate (“OIS”), London Interbank Offered Rate (“LIBOR”) forward rate, interest rates, yield curves and credit spreads. These securities are categorized as Level 2 of the fair value hierarchy.

Level 3 trading assets and trading liabilities, at fair value  When a fair valuation method is applied by the Adviser that uses significant unobservable inputs, investments will be priced by a method that the

Board or persons acting at their direction believe reflects fair value and are categorized as Level 3 of the fair value hierarchy.

Short-term debt instruments (such as commercial paper) having a remaining maturity of 60 days or less may be valued at amortized cost, so long as the amortized cost value of such short-term debt instruments is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. These securities are categorized as Level 2 or Level 3 of the fair value hierarchy depending on the source of the base price.

4. SECURITIES AND OTHER INVESTMENTS

(a) Investments in Affiliates

The Portfolio may invest in the PIMCO Short Asset Portfolio and the PIMCO Short-Term Floating NAV Portfolio III (“Central Funds”) to the extent permitted by the Act and rules thereunder. The Central Funds are registered investment companies created for use solely by the series of the Trust and other series of registered investment companies advised by the Adviser, in connection with their cash management activities. The main investments of the Central Funds are money market and short maturity fixed income instruments. The Central Funds may incur expenses related to their investment activities, but do not pay Investment Advisory Fees or Supervisory and Administrative Fees to the Adviser. The Central Funds are considered to be affiliated with the Portfolio. The table below shows the Portfolio’s transactions in and earnings from investments in the affiliated Funds for the period ended December 31, 2018 (amounts in thousands^†):

Investment in PIMCO Short-Term Floating NAV Portfolio III

Market Value 12/31/2017		Purchases at Cost		Proceeds from Sales			Net Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)		Market Value 12/31/2018		Dividend Income(1)		Realized Net Capital  Gain Distributions(1)
$	12,701	$	1,437,175	$	(1,374,000	)	$	27	$	13	$	75,916	$	275	$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽¹⁾  The tax characterization of distributions is determined in accordance with Federal income tax regulations and may contain a return of capital. The actual tax characterization of distributions received is determined at the end of the fiscal year of the affiliated fund. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

(b) Investments in Securities

The Portfolio may utilize the investments and strategies described below to the extent permitted by the Portfolio’s investment policies.

Delayed-Delivery Transactions  involve a commitment by the Portfolio to purchase or sell securities for a predetermined price or yield, with payment and delivery taking place beyond the customary settlement period. When delayed-delivery transactions are outstanding, the Portfolio will designate or receive as collateral liquid assets in an amount sufficient to meet the purchase price or respective obligations. When purchasing a security on a delayed-delivery basis, the Portfolio assumes the rights and risks of ownership of the security, including the risk of price and yield fluctuations, and takes such fluctuations into account when determining its NAV. The Portfolio may dispose of or renegotiate a delayed-delivery transaction after it is entered into, which may result in a realized gain (loss). When the Portfolio has sold a security on a delayed-delivery basis, the Portfolio does not participate in future gains (losses) with respect to the security.

Inflation-Indexed Bonds  are fixed income securities whose principal value is periodically adjusted by the rate of inflation. The interest rate on these bonds is generally fixed at issuance at a rate lower than typical bonds. Over the life of an inflation-indexed bond, however, interest will be paid based on a principal value which is adjusted for inflation. Any increase or decrease in the principal amount of an inflation-indexed bond will be included as interest income on the Statement of Operations, even though investors do not receive their principal until maturity. Repayment of the original bond principal upon maturity (as adjusted for inflation) is guaranteed in the case of U.S. Treasury Inflation-Protected Securities (“TIPS”). For bonds that do not provide a similar guarantee, the adjusted principal value of the bond repaid at maturity may be less than the original principal.

Loans and Other Indebtedness, Loan Participations and Assignments  are direct debt instruments which are interests in amounts owed to lenders or lending syndicates by corporate, governmental, or other borrowers. The Portfolio’s investments in loans

ANNUAL REPORT DECEMBER 31, 2018 33

Notes to Financial Statements (Cont.)

may be in the form of participations in loans or assignments of all or a portion of loans from third parties or investments in or originations of loans by the Portfolio. A loan is often administered by a bank or other financial institution (the “agent”) that acts as agent for all holders. The agent administers the terms of the loan, as specified in the loan agreement. The Portfolio may invest in multiple series or tranches of a loan, which may have varying terms and carry different associated risks. When the Portfolio purchases assignments from agents it acquires direct rights against the borrowers of the loans. These loans may include participations in bridge loans, which are loans taken out by borrowers for a short period (typically less than one year) pending arrangement of more permanent financing through, for example, the issuance of bonds, frequently high yield bonds issued for the purpose of acquisitions.

The types of loans and related investments in which the Portfolio may invest include, among others, senior loans, subordinated loans (including second lien loans, B-Notes and mezzanine loans), whole loans, commercial real estate and other commercial loans and structured loans. The Portfolio may originate loans or acquire direct interests in loans through primary loan distributions and/or in private transactions. In the case of subordinated loans, there may be significant indebtedness ranking ahead of the borrower’s obligation to the holder of such a loan, including in the event of the borrower’s insolvency. Mezzanine loans are typically secured by a pledge of an equity interest in the mortgage borrower that owns the real estate rather than an interest in a mortgage.

Investments in loans may include unfunded loan commitments, which are contractual obligations for funding. Unfunded loan commitments may include revolving credit facilities, which may obligate the Portfolio to supply additional cash to the borrower on demand. Unfunded loan commitments represent a future obligation in full, even though a percentage of the committed amount may not be utilized by the borrower. When investing in a loan participation, the Portfolio has the right to receive payments of principal, interest and any fees to which it is entitled only from the agent selling the loan agreement and only upon receipt of payments by the agent from the borrower. The Portfolio may receive a commitment fee based on the undrawn portion of the underlying line of credit portion of a loan. In certain circumstances, the Portfolio may receive a penalty fee upon the prepayment of a loan by a borrower. Fees earned or paid are recorded as a component of interest income or interest expense, respectively, on the Statement of Operations. Unfunded loan commitments are reflected as a liability on the Statement of Assets and Liabilities.

Mortgage-Related and Other Asset-Backed Securities  directly or indirectly represent a participation in, or are secured by and payable from, loans on real property. Mortgage-related securities are created

from pools of residential or commercial mortgage loans, including mortgage loans made by savings and loan institutions, mortgage bankers, commercial banks and others. These securities provide a monthly payment which consists of both interest and principal. Interest may be determined by fixed or adjustable rates. The rate of prepayments on underlying mortgages will affect the price and volatility of a mortgage-related security, and may have the effect of shortening or extending the effective duration of the security relative to what was anticipated at the time of purchase. The timely payment of principal and interest of certain mortgage-related securities is guaranteed with the full faith and credit of the U.S. Government. Pools created and guaranteed by non-governmental issuers, including government-sponsored corporations, may be supported by various forms of insurance or guarantees, but there can be no assurance that private insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Many of the risks of investing in mortgage-related securities secured by commercial mortgage loans reflect the effects of local and other economic conditions on real estate markets, the ability of tenants to make lease payments, and the ability of a property to attract and retain tenants. These securities may be less liquid and may exhibit greater price volatility than other types of mortgage-related or other asset-backed securities. Other asset-backed securities are created from many types of assets, including, but not limited to, auto loans, accounts receivable, such as credit card receivables and hospital account receivables, home equity loans, student loans, boat loans, mobile home loans, recreational vehicle loans, manufactured housing loans, aircraft leases, computer leases and syndicated bank loans.

Collateralized Debt Obligations  (“CDOs”) include Collateralized Bond Obligations (“CBOs”), Collateralized Loan Obligations (“CLOs”) and other similarly structured securities. CBOs and CLOs are types of asset-backed securities. A CBO is a trust which is backed by a diversified pool of high risk, below investment grade fixed income securities. A CLO is a trust typically collateralized by a pool of loans, which may include, among others, domestic and foreign senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated below investment grade or equivalent unrated loans. The risks of an investment in a CDO depend largely on the type of the collateral securities and the class of the CDO in which the Portfolio invests. In addition to the normal risks associated with fixed income securities discussed elsewhere in this report and the Portfolio’s prospectus and statement of additional information (e.g., prepayment risk, credit risk, liquidity risk, market risk, structural risk, legal risk and interest rate risk (which may be exacerbated if the interest rate payable on a structured financing changes based on multiples of changes in interest rates or inversely to changes in interest rates)), CBOs, CLOs and other CDOs carry additional risks including, but not limited to,

34 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

(i) the possibility that distributions from collateral securities will not be adequate to make interest or other payments, (ii) the quality of the collateral may decline in value or default, (iii) the risk that the Portfolio may invest in CBOs, CLOs, or other CDOs that are subordinate to other classes, and (iv) the complex structure of the security may not be fully understood at the time of investment and may produce disputes with the issuer or unexpected investment results.

Collateralized Mortgage Obligations  (“CMOs”) are debt obligations of a legal entity that are collateralized by whole mortgage loans or private mortgage bonds and divided into classes. CMOs are structured into multiple classes, often referred to as “tranches”, with each class bearing a different stated maturity and entitled to a different schedule for payments of principal and interest, including prepayments. CMOs may be less liquid and may exhibit greater price volatility than other types of mortgage-related or asset-backed securities.

Stripped Mortgage-Backed Securities  (“SMBS”) are derivative multi-class mortgage securities. SMBS are usually structured with two classes that receive different proportions of the interest and principal distributions on a pool of mortgage assets. An SMBS will have one class that will receive all of the interest (the interest-only or “IO” class), while the other class will receive the entire principal (the principal-only or “PO” class). Payments received for IOs are included in interest income on the Statement of Operations. Because no principal will be received at the maturity of an IO, adjustments are made to the cost of the security on a monthly basis until maturity. These adjustments are included in interest income on the Statement of Operations. Payments received for POs are treated as reductions to the cost and par value of the securities.

Perpetual Bonds  are fixed income securities with no maturity date but pay a coupon in perpetuity (with no specified ending or maturity date). Unlike typical fixed income securities, there is no obligation for perpetual bonds to repay principal. The coupon payments, however, are mandatory. While perpetual bonds have no maturity date, they may have a callable date in which the perpetuity is eliminated and the issuer may return the principal received on the specified call date. Additionally, a perpetual bond may have additional features, such as interest rate increases at periodic dates or an increase as of a predetermined point in the future.

Restricted Investments  are subject to legal or contractual restrictions on resale and may generally be sold privately, but may be required to be registered or exempted from such registration before being sold to the public. Private placement securities are generally considered to be restricted except for those securities traded between qualified institutional investors under the provisions of Rule 144A of the

Securities Act of 1933. Disposal of restricted investments may involve time-consuming negotiations and expenses, and prompt sale at an acceptable price may be difficult to achieve. Restricted investments held by the Portfolio at December 31, 2018 are disclosed in the Notes to Schedule of Investments.

Securities Issued by U.S. Government Agencies or Government-Sponsored Enterprises  are obligations of and, in certain cases, guaranteed by, the U.S. Government, its agencies or instrumentalities. Some U.S. Government securities, such as Treasury bills, notes and bonds, and securities guaranteed by the Government National Mortgage Association (“GNMA” or “Ginnie Mae”), are supported by the full faith and credit of the U.S. Government; others, such as those of the Federal Home Loan Banks, are supported by the right of the issuer to borrow from the U.S. Department of the Treasury (the “U.S. Treasury”); and others, such as those of the Federal National Mortgage Association (“FNMA” or “Fannie Mae”), are supported by the discretionary authority of the U.S. Government to purchase the agency’s obligations. U.S. Government securities may include zero coupon securities. Zero coupon securities do not distribute interest on a current basis and tend to be subject to a greater risk than interest-paying securities.

Government-related guarantors (i.e., not backed by the full faith and credit of the U.S. Government) include FNMA and the Federal Home Loan Mortgage Corporation (“FHLMC” or “Freddie Mac”). FNMA is a government-sponsored corporation. FNMA purchases conventional (i.e., not insured or guaranteed by any government agency) residential mortgages from a list of approved seller/servicers which include state and federally chartered savings and loan associations, mutual savings banks, commercial banks and credit unions and mortgage bankers. Pass-through securities issued by FNMA are guaranteed as to timely payment of principal and interest by FNMA, but are not backed by the full faith and credit of the U.S. Government. FHLMC issues Participation Certificates (“PCs”), which are pass-through securities, each representing an undivided interest in a pool of residential mortgages. FHLMC guarantees the timely payment of interest and ultimate collection of principal, but PCs are not backed by the full faith and credit of the U.S. Government.

Roll-timing strategies can be used where the Portfolio seeks to extend the expiration or maturity of a position, such as a TBA security on an underlying asset, by closing out the position before expiration and opening a new position with respect to substantially the same underlying asset with a later expiration date. TBA securities purchased or sold are reflected on the Statement of Assets and Liabilities as an asset or liability, respectively.

ANNUAL REPORT DECEMBER 31, 2018 35

Notes to Financial Statements (Cont.)

5. BORROWINGS AND OTHER FINANCING TRANSACTIONS

The Portfolio may enter into the borrowings and other financing transactions described below to the extent permitted by the Portfolio’s investment policies.

The following disclosures contain information on the Portfolio’s ability to lend or borrow cash or securities to the extent permitted under the Act, which may be viewed as borrowing or financing transactions by the Portfolio. The location of these instruments in the Portfolio’s financial statements is described below.

(a) Repurchase Agreements  Under the terms of a typical repurchase agreement, the Portfolio purchases an underlying debt obligation (collateral) subject to an obligation of the seller to repurchase, and the Portfolio to resell, the obligation at an agreed-upon price and time. In an open maturity repurchase agreement, there is no pre-determined repurchase date and the agreement can be terminated by the Portfolio or counterparty at any time. The underlying securities for all repurchase agreements are held by the Portfolio’s custodian or designated subcustodians under tri-party repurchase agreements and in certain instances will remain in custody with the counterparty. The market value of the collateral must be equal to or exceed the total amount of the repurchase obligations, including interest. Repurchase agreements, if any, including accrued interest, are included on the Statement of Assets and Liabilities. Interest earned is recorded as a component of interest income on the Statement of Operations. In periods of increased demand for collateral, the Portfolio may pay a fee for the receipt of collateral, which may result in interest expense to the Portfolio.

(b) Reverse Repurchase Agreements  In a reverse repurchase agreement, the Portfolio delivers a security in exchange for cash to a financial institution, the counterparty, with a simultaneous agreement to repurchase the same or substantially the same security at an agreed upon price and date. In an open maturity reverse repurchase agreement, there is no pre-determined repurchase date and the agreement can be terminated by the Portfolio or counterparty at any time. The Portfolio is entitled to receive principal and interest payments, if any, made on the security delivered to the counterparty during the term of the agreement. Cash received in exchange for securities delivered plus accrued interest payments to be made by the Portfolio to counterparties are reflected as a liability on the Statement of Assets and Liabilities. Interest payments made by the Portfolio to counterparties are recorded as a component of interest expense on the Statement of Operations. In periods of increased demand for the security, the Portfolio may receive a fee for use of the security by the counterparty, which may result in interest income to the Portfolio. The Portfolio will segregate assets determined to be liquid by the Adviser or will otherwise cover its obligations under reverse repurchase agreements.

(c) Sale-Buybacks  A sale-buyback financing transaction consists of a sale of a security by the Portfolio to a financial institution, the counterparty, with a simultaneous agreement to repurchase the same or substantially the same security at an agreed-upon price and date. The Portfolio is not entitled to receive principal and interest payments, if any, made on the security sold to the counterparty during the term of the agreement. The agreed-upon proceeds for securities to be repurchased by the Portfolio are reflected as a liability on the Statement of Assets and Liabilities. The Portfolio will recognize net income represented by the price differential between the price received for the transferred security and the agreed-upon repurchase price. This is commonly referred to as the ‘price drop’. A price drop consists of (i) the foregone interest and inflationary income adjustments, if any, the Portfolio would have otherwise received had the security not been sold and (ii) the negotiated financing terms between the Portfolio and counterparty. Foregone interest and inflationary income adjustments, if any, are recorded as components of interest income on the Statement of Operations. Interest payments based upon negotiated financing terms made by the Portfolio to counterparties are recorded as a component of interest expense on the Statement of Operations. In periods of increased demand for the security, the Portfolio may receive a fee for use of the security by the counterparty, which may result in interest income to the Portfolio. The Portfolio will segregate assets determined to be liquid by the Adviser or will otherwise cover its obligations under sale-buyback transactions.

(d) Short Sales  Short sales are transactions in which the Portfolio sells a security that it may not own. The Portfolio may make short sales of securities to (i) offset potential declines in long positions in similar securities, (ii) to increase the flexibility of the Portfolio, (iii) for investment return, (iv) as part of a risk arbitrage strategy, and (v) as part of its overall portfolio management strategies involving the use of derivative instruments. When the Portfolio engages in a short sale, it may borrow the security sold short and deliver it to the counterparty. The Portfolio will ordinarily have to pay a fee or premium to borrow a security and be obligated to repay the lender of the security any dividend or interest that accrues on the security during the period of the loan. Securities sold in short sale transactions and the dividend or interest payable on such securities, if any, are reflected as payable for short sales on the Statement of Assets and Liabilities. Short sales expose the Portfolio to the risk that it will be required to cover its short position at a time when the security or other asset has appreciated in value, thus resulting in losses to the Portfolio. A short sale is “against the box” if the Portfolio holds in its portfolio or has the right to acquire the security sold short, or securities identical to the security sold short, at no additional cost. The Portfolio will be subject to additional risks to the extent that it engages in short sales that are not “against the box.”

36 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

The Portfolio’s loss on a short sale could theoretically be unlimited in cases where the Portfolio is unable, for whatever reason, to close out its short position.

6. FINANCIAL DERIVATIVE INSTRUMENTS

The Portfolio may enter into the financial derivative instruments described below to the extent permitted by the Portfolio’s investment policies.

The following disclosures contain information on how and why the Portfolio uses financial derivative instruments, and how financial derivative instruments affect the Portfolio’s financial position, results of operations and cash flows. The location and fair value amounts of these instruments on the Statement of Assets and Liabilities and the net realized gain (loss) and net change in unrealized appreciation (depreciation) on the Statement of Operations, each categorized by type of financial derivative contract and related risk exposure, are included in a table in the Notes to Schedule of Investments. The financial derivative instruments outstanding as of period end and the amounts of net realized gain (loss) and net change in unrealized appreciation (depreciation) on financial derivative instruments during the period, as disclosed in the Notes to Schedule of Investments, serve as indicators of the volume of financial derivative activity for the Portfolio.

(a) Forward Foreign Currency Contracts  may be engaged, in connection with settling planned purchases or sales of securities, to hedge the currency exposure associated with some or all of the Portfolio’s securities or as part of an investment strategy. A forward foreign currency contract is an agreement between two parties to buy and sell a currency at a set price on a future date. The market value of a forward foreign currency contract fluctuates with changes in foreign currency exchange rates. Forward foreign currency contracts are marked to market daily, and the change in value is recorded by the Portfolio as an unrealized gain (loss). Realized gains (losses) are equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed and are recorded upon delivery or receipt of the currency. These contracts may involve market risk in excess of the unrealized gain (loss) reflected on the Statement of Assets and Liabilities. In addition, the Portfolio could be exposed to risk if the counterparties are unable to meet the terms of the contracts or if the value of the currency changes unfavorably to the U.S. dollar. To mitigate such risk, cash or securities may be exchanged as collateral pursuant to the terms of the underlying contracts.

(b) Futures Contracts  are agreements to buy or sell a security or other asset for a set price on a future date. The Portfolio may use futures contracts to manage its exposure to the securities markets or to movements in interest rates and currency values. The primary risks

associated with the use of futures contracts are the imperfect correlation between the change in market value of the securities held by the Portfolio and the prices of futures contracts and the possibility of an illiquid market. Futures contracts are valued based upon their quoted daily settlement prices. Upon entering into a futures contract, the Portfolio is required to deposit with its futures broker an amount of cash, U.S. Government and Agency Obligations, or select sovereign debt, in accordance with the initial margin requirements of the broker or exchange. Futures contracts are marked to market daily and based on such movements in the price of the contracts, an appropriate payable or receivable for the change in value may be posted or collected by the Portfolio (“Futures Variation Margin”). Gains (losses) are recognized but not considered realized until the contracts expire or close. Futures contracts involve, to varying degrees, risk of loss in excess of the Futures Variation Margin included within exchange traded or centrally cleared financial derivative instruments on the Statement of Assets and Liabilities.

(c) Options Contracts  may be written or purchased to enhance returns or to hedge an existing position or future investment. The Portfolio may write call and put options on securities and financial derivative instruments it owns or in which it may invest. Writing put options tends to increase the Portfolio’s exposure to the underlying instrument. Writing call options tends to decrease the Portfolio’s exposure to the underlying instrument. When the Portfolio writes a call or put, an amount equal to the premium received is recorded and subsequently marked to market to reflect the current value of the option written. These amounts are included on the Statement of Assets and Liabilities. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options which are exercised or closed are added to the proceeds or offset against amounts paid on the underlying futures, swap, security or currency transaction to determine the realized gain (loss). Certain options may be written with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. The Portfolio as a writer of an option has no control over whether the underlying instrument may be sold (“call”) or purchased (“put”) and as a result bears the market risk of an unfavorable change in the price of the instrument underlying the written option. There is the risk the Portfolio may not be able to enter into a closing transaction because of an illiquid market.

Purchasing call options tends to increase the Portfolio’s exposure to the underlying instrument. Purchasing put options tends to decrease the Portfolio’s exposure to the underlying instrument. The Portfolio pays a premium which is included as an asset on the Statement of Assets and Liabilities and subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options which expire

ANNUAL REPORT DECEMBER 31, 2018 37

Notes to Financial Statements (Cont.)

are treated as realized losses. Certain options may be purchased with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. The risk associated with purchasing put and call options is limited to the premium paid. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the underlying investment transaction to determine the realized gain (loss) when the underlying transaction is executed.

Credit Default Swaptions  may be written or purchased to hedge exposure to the credit risk of an investment without making a commitment to the underlying instrument. A credit default swaption is an option to sell or buy credit protection on a specific reference by entering into a pre-defined swap agreement by some specified date in the future.

Foreign Currency Options  may be written or purchased to be used as a short or long hedge against possible variations in foreign exchange rates or to gain exposure to foreign currencies.

Inflation-Capped Options  may be written or purchased to enhance returns or for hedging opportunities. The purpose of purchasing inflation-capped options is to protect the Portfolio from inflation erosion above a certain rate on a given notional exposure. A floor can be used to give downside protection to investments in inflation-linked products.

Interest Rate-Capped Options  may be written or purchased to enhance returns or for hedging opportunities. The purpose of purchasing interest rate-capped options is to protect the Portfolio from floating rate risk above a certain rate on a given notional exposure. A floor can be used to give downside protection to investments in interest rate linked products.

Interest Rate Swaptions  may be written or purchased to enter into a pre-defined swap agreement or to shorten, extend, cancel or otherwise modify an existing swap agreement, by some specified date in the future. The writer of the swaption becomes the counterparty to the swap if the buyer exercises. The interest rate swaption agreement will specify whether the buyer of the swaption will be a fixed-rate receiver or a fixed-rate payer upon exercise.

Options on Exchange-Traded Futures Contracts  (“Futures Option”) may be written or purchased to hedge an existing position or future investment, for speculative purposes or to manage exposure to market movements. A Futures Option is an option contract in which the underlying instrument is a single futures contract.

(d) Swap Agreements  are bilaterally negotiated agreements between the Portfolio and a counterparty to exchange or swap investment cash

flows, assets, foreign currencies or market-linked returns at specified, future intervals. Swap agreements may be privately negotiated in the over the counter market (“OTC swaps”) or may be cleared through a third party, known as a central counterparty or derivatives clearing organization (“Centrally Cleared Swaps”). The Portfolio may enter into asset, credit default, cross-currency, interest rate, total return, variance and other forms of swap agreements to manage its exposure to credit, currency, interest rate, commodity, equity and inflation risk. In connection with these agreements, securities or cash may be identified as collateral or margin in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default or bankruptcy/insolvency.

Centrally Cleared Swaps are marked to market daily based upon valuations as determined from the underlying contract or in accordance with the requirements of the central counterparty or derivatives clearing organization. Changes in market value, if any, are reflected as a component of net change in unrealized appreciation (depreciation) on the Statement of Operations. Daily changes in valuation of centrally cleared swaps (“Swap Variation Margin”), if any, are disclosed within centrally cleared financial derivative instruments on the Statement of Assets and Liabilities. Centrally Cleared and OTC swap payments received or paid at the beginning of the measurement period are included on the Statement of Assets and Liabilities and represent premiums paid or received upon entering into the swap agreement to compensate for differences between the stated terms of the swap agreement and prevailing market conditions (credit spreads, currency exchange rates, interest rates, and other relevant factors). Upfront premiums received (paid) are initially recorded as liabilities (assets) and subsequently marked to market to reflect the current value of the swap. These upfront premiums are recorded as realized gain (loss) on the Statement of Operations upon termination or maturity of the swap. A liquidation payment received or made at the termination of the swap is recorded as realized gain (loss) on the Statement of Operations. Net periodic payments received or paid by the Portfolio are included as part of realized gain (loss) on the Statement of Operations.

For purposes of applying certain of the Portfolio’s investment policies and restrictions, swap agreements, like other derivative instruments, may be valued by the Portfolio at market value, notional value or full exposure value. In the case of a credit default swap, in applying certain of the Portfolio’s investment policies and restrictions, the Portfolio will value the credit default swap at its notional value or its full exposure value (i.e., the sum of the notional amount for the contract plus the market value), but may value the credit default swap at market value for purposes of applying certain of the Portfolio’s other investment policies and restrictions. For example, the Portfolio may value credit default swaps at full exposure value for purposes of the Portfolio’s

38 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

credit quality guidelines (if any) because such value in general better reflects the Portfolio’s actual economic exposure during the term of the credit default swap agreement. As a result, the Portfolio may, at times, have notional exposure to an asset class (before netting) that is greater or lesser than the stated limit or restriction noted in the Portfolio’s prospectus. In this context, both the notional amount and the market value may be positive or negative depending on whether the Portfolio is selling or buying protection through the credit default swap. The manner in which certain securities or other instruments are valued by the Portfolio for purposes of applying investment policies and restrictions may differ from the manner in which those investments are valued by other types of investors.

Entering into swap agreements involves, to varying degrees, elements of interest, credit, market and documentation risk in excess of the amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of contractual terms in the agreements and that there may be unfavorable changes in interest rates or the values of the asset upon which the swap is based.

The Portfolio’s maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from the counterparty over the contract’s remaining life, to the extent that amount is positive. The risk may be mitigated by having a master netting arrangement between the Portfolio and the counterparty and by the posting of collateral to the Portfolio to cover the Portfolio’s exposure to the counterparty.

To the extent the Portfolio has a policy to limit the net amount owed to or to be received from a single counterparty under existing swap agreements, such limitation only applies to counterparties to OTC swaps and does not apply to centrally cleared swaps where the counterparty is a central counterparty or derivatives clearing organization.

Credit Default Swap Agreements  on corporate, loan, sovereign, U.S. municipal or U.S. Treasury issues are entered into to provide a measure of protection against defaults of the issuers (i.e., to reduce risk where the Portfolio owns or has exposure to the referenced obligation) or to take an active long or short position with respect to the likelihood of a particular issuer’s default. Credit default swap agreements involve one party making a stream of payments (referred to as the buyer of protection) to another party (the seller of protection) in exchange for the right to receive a specified return in the event that the referenced entity, obligation or index, as specified in the swap agreement, undergoes a certain credit event. As a seller of protection on credit default swap agreements, the Portfolio will generally receive from the buyer of protection a fixed rate of income throughout the term of the

swap provided that there is no credit event. As the seller, the Portfolio would effectively add leverage to its portfolio because, in addition to its total net assets, the Portfolio would be subject to investment exposure on the notional amount of the swap.

If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. If the Portfolio is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. Recovery values are estimated by market makers considering either industry standard recovery rates or entity specific factors and considerations until a credit event occurs. If a credit event has occurred, the recovery value is determined by a facilitated auction whereby a minimum number of allowable broker bids, together with a specified valuation method, are used to calculate the settlement value. The ability to deliver other obligations may result in a cheapest-to-deliver option (the buyer of protection’s right to choose the deliverable obligation with the lowest value following a credit event).

Credit default swap agreements on credit indices involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising the credit index. A credit index is a basket of credit instruments or exposures designed to be representative of some part of the credit market as a whole. These indices are made up of reference credits that are judged by a poll of dealers to be the most liquid entities in the credit default swap market based on the sector of the index. Components of the indices may include, but are not limited to, investment grade securities, high yield securities, asset-backed securities, emerging markets, and/or various credit ratings within each sector. Credit indices are traded using credit default swaps with standardized terms including a fixed spread and standard maturity dates. An index credit default swap references all the names in the index, and if there is a default, the credit event is settled based on that

ANNUAL REPORT DECEMBER 31, 2018 39

Notes to Financial Statements (Cont.)

name’s weight in the index. The composition of the indices changes periodically, usually every six months, and for most indices, each name has an equal weight in the index. The Portfolio may use credit default swaps on credit indices to hedge a portfolio of credit default swaps or bonds, which is less expensive than it would be to buy many credit default swaps to achieve a similar effect. Credit default swaps on indices are instruments for protecting investors owning bonds against default, and traders use them to speculate on changes in credit quality.

Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate, loan, sovereign, U.S. municipal or U.S. Treasury issues as of period end, if any, are disclosed in the Notes to Schedule of Investments. They serve as an indicator of the current status of payment/performance risk and represent the likelihood or risk of default for the reference entity. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. For credit default swap agreements on asset-backed securities and credit indices, the quoted market prices and resulting values serve as the indicator of the current status of the payment/performance risk. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

The maximum potential amount of future payments (undiscounted) that the Portfolio as a seller of protection could be required to make under a credit default swap agreement equals the notional amount of the agreement. Notional amounts of each individual credit default swap agreement outstanding as of period end for which the Portfolio is the seller of protection are disclosed in the Notes to Schedule of Investments. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Portfolio for the same referenced entity or entities.

Interest Rate Swap Agreements  may be entered into to help hedge against interest rate risk exposure and to maintain the Portfolio’s ability to generate income at prevailing market rates. The value of the fixed rate bonds that the Portfolio holds may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, the Portfolio may enter into interest

rate swap agreements. Interest rate swap agreements involve the exchange by the Portfolio with another party for their respective commitment to pay or receive interest on the notional amount of principal. Certain forms of interest rate swap agreements may include: (i) interest rate caps, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates exceed a specified rate, or “cap”, (ii) interest rate floors, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates fall below a specified rate, or “floor”, (iii) interest rate collars, under which a party sells a cap and purchases a floor or vice versa in an attempt to protect itself against interest rate movements exceeding given minimum or maximum levels, (iv) callable interest rate swaps, under which the buyer pays an upfront fee in consideration for the right to early terminate the swap transaction in whole, at zero cost and at a predetermined date and time prior to the maturity date, (v) spreadlocks, which allow the interest rate swap users to lock in the forward differential (or spread) between the interest rate swap rate and a specified benchmark, or (vi) basis swaps, under which two parties can exchange variable interest rates based on different segments of money markets.

Total Return Swap Agreements  are entered into to gain or mitigate exposure to the underlying reference asset. Total return swap agreements involve commitments where single or multiple cash flows are exchanged based on the price of an underlying reference asset and on a fixed or variable interest rate. Total return swap agreements may involve commitments to pay interest in exchange for a market-linked return. One counterparty pays out the total return of a specific underlying reference asset, which may include a single security, a basket of securities, or an index, and in return receives a fixed or variable rate. At the maturity date, a net cash flow is exchanged where the total return is equivalent to the return of the underlying reference asset less a financing rate, if any. As a receiver, the Portfolio would receive payments based on any net positive total return and would owe payments in the event of a net negative total return. As the payer, the Portfolio would owe payments on any net positive total return, and would receive payments in the event of a net negative total return.

7. PRINCIPAL RISKS

The principal risks of investing in the Portfolio, which could adversely affect its net asset value, yield and total return, are listed below. Please see “Description of Principal Risks” in the Portfolio’s prospectus for a more detailed description of the risks of investing in the Portfolio.

Interest Rate Risk  is the risk that fixed income securities will decline in value because of an increase in interest rates; a portfolio with a longer average portfolio duration will be more sensitive to changes in interest rates than a portfolio with a shorter average portfolio duration.

40 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

Call Risk  is the risk that an issuer may exercise its right to redeem a fixed income security earlier than expected (a call). Issuers may call outstanding securities prior to their maturity for a number of reasons (e.g., declining interest rates, changes in credit spreads and improvements in the issuer’s credit quality). If an issuer calls a security that the Portfolio has invested in, the Portfolio may not recoup the full amount of its initial investment and may be forced to reinvest in lower-yielding securities, securities with greater credit risks or securities with other, less favorable features.

Credit Risk  is the risk that the Portfolio could lose money if the issuer or guarantor of a fixed income security, or the counterparty to a derivative contract, is unable or unwilling to meet its financial obligations.

High Yield Risk  is the risk that high yield securities and unrated securities of similar credit quality (commonly known as “junk bonds”) are subject to greater levels of credit, call and liquidity risks. High yield securities are considered primarily speculative with respect to the issuer’s continuing ability to make principal and interest payments, and may be more volatile than higher-rated securities of similar maturity.

Market Risk  is the risk that the value of securities owned by the Portfolio may go up or down, sometimes rapidly or unpredictably, due to factors affecting securities markets generally or particular industries.

Issuer Risk  is the risk that the value of a security may decline for a reason directly related to the issuer, such as management performance, financial leverage and reduced demand for the issuer’s goods or services.

Liquidity Risk  is the risk that a particular investment may be difficult to purchase or sell and that the Portfolio may be unable to sell illiquid securities at an advantageous time or price or achieve its desired level of exposure to a certain sector. Liquidity risk may result from the lack of an active market, reduced number and capacity of traditional market participants to make a market in fixed income securities, and may be magnified in a rising interest rate environment or other circumstances where investor redemptions from fixed income mutual funds may be higher than normal, causing increased supply in the market due to selling activity.

Derivatives Risk  is the risk of investing in derivative instruments (such as futures, swaps and structured securities), including leverage, liquidity, interest rate, market, credit and management risks, mispricing or valuation complexity. Changes in the value of the derivative may not correlate perfectly with, and may be more sensitive to market events than, the underlying asset, rate or index, and the Portfolio could lose more than the initial amount invested. The Portfolio’s use of derivatives may result in losses to the Portfolio, a reduction in the Portfolio’s returns and/or increased volatility. Over-the-counter (“OTC”) derivatives are also subject to the risk that a counterparty to the

transaction will not fulfill its contractual obligations to the other party, as many of the protections afforded to centrally-cleared derivative transactions might not be available for OTC derivatives. For derivatives traded on an exchange or through a central counterparty, credit risk resides with the Portfolio’s clearing broker, or the clearinghouse itself, rather than with a counterparty in an OTC derivative transaction. Changes in regulation relating to a mutual fund’s use of derivatives and related instruments could potentially limit or impact the Portfolio’s ability to invest in derivatives, limit the Portfolio’s ability to employ certain strategies that use derivatives and/or adversely affect the value of derivatives and the Portfolio’s performance.

Equity Risk  is the risk that the value of equity securities, such as common stocks and preferred securities, may decline due to general market conditions which are not specifically related to a particular company or to factors affecting a particular industry or industries. Equity securities generally have greater price volatility than fixed income securities.

Mortgage-Related and Other Asset-Backed Securities Risk  is the risk of investing in mortgage-related and other asset-backed securities, including interest rate risk, extension risk, prepayment risk and credit risk.

Foreign (Non-U.S.) Investment Risk  is the risk that investing in foreign (non-U.S.) securities may result in the Portfolio experiencing more rapid and extreme changes in value than a portfolio that invests exclusively in securities of U.S. companies, due to smaller markets, differing reporting, accounting and auditing standards, increased risk of delayed settlement of portfolio transactions or loss of certificates of portfolio securities, and the risk of unfavorable foreign government actions, including nationalization, expropriation or confiscatory taxation, currency blockage, or political changes or diplomatic developments. Foreign securities may also be less liquid and more difficult to value than securities of U.S. issuers.

Emerging Markets Risk  is the risk of investing in emerging market securities, primarily increased foreign (non-U.S.) investment risk.

Sovereign Debt Risk  is the risk that investments in fixed income instruments issued by sovereign entities may decline in value as a result of default or other adverse credit event resulting from an issuer’s inability or unwillingness to make principal or interest payments in a timely fashion.

Currency Risk  is the risk that foreign (non-U.S.) currencies will change in value relative to the U.S. dollar and affect the Portfolio’s investments in foreign (non-U.S.) currencies or in securities that trade in, and receive revenues in, or in derivatives that provide exposure to, foreign (non-U.S.) currencies.

ANNUAL REPORT DECEMBER 31, 2018 41

Notes to Financial Statements (Cont.)

Leveraging Risk  is the risk that certain transactions of the Portfolio, such as reverse repurchase agreements, loans of portfolio securities, and the use of when-issued, delayed delivery or forward commitment transactions, or derivative instruments, may give rise to leverage, magnifying gains and losses and causing the Portfolio to be more volatile than if it had not been leveraged. This means that leverage entails a heightened risk of loss.

Management Risk  is the risk that the investment techniques and risk analyses applied by PIMCO will not produce the desired results and that legislative, regulatory, or tax restrictions, policies or developments may affect the investment techniques available to PIMCO and the individual portfolio manager in connection with managing the Portfolio. There is no guarantee that the investment objective of the Portfolio will be achieved.

Short Exposure Risk  is the risk of entering into short sales, including the potential loss of more money than the actual cost of the investment, and the risk that the third party to the short sale will not fulfill its contractual obligations, causing a loss to the Portfolio.

8. MASTER NETTING ARRANGEMENTS

The Portfolio may be subject to various netting arrangements (“Master Agreements”) with select counterparties. Master Agreements govern the terms of certain transactions, and are intended to reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that is intended to improve legal certainty. Each type of Master Agreement governs certain types of transactions. Different types of transactions may be traded out of different legal entities or affiliates of a particular organization, resulting in the need for multiple agreements with a single counterparty. As the Master Agreements are specific to unique operations of different asset types, they allow the Portfolio to close out and net its total exposure to a counterparty in the event of a default with respect to all the transactions governed under a single Master Agreement with a counterparty. For financial reporting purposes the Statement of Assets and Liabilities generally presents derivative assets and liabilities on a gross basis, which reflects the full risks and exposures prior to netting.

Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. Under most Master Agreements, collateral is routinely transferred if the total net exposure to certain transactions (net of existing collateral already in place) governed under the relevant Master Agreement with a counterparty in a given account exceeds a specified threshold, which typically ranges from zero to $250,000 depending on the counterparty and the type of Master Agreement. United States Treasury Bills and U.S. dollar cash are generally the preferred forms of collateral, although

other securities may be used depending on the terms outlined in the applicable Master Agreement. Securities and cash pledged as collateral are reflected as assets on the Statement of Assets and Liabilities as either a component of Investments at value (securities) or Deposits with counterparty. Cash collateral received is not typically held in a segregated account and as such is reflected as a liability on the Statement of Assets and Liabilities as Deposits from counterparty. The market value of any securities received as collateral is not reflected as a component of NAV. The Portfolio’s overall exposure to counterparty risk can change substantially within a short period, as it is affected by each transaction subject to the relevant Master Agreement.

Master Repurchase Agreements and Global Master Repurchase Agreements (individually and collectively “Master Repo Agreements”) govern repurchase, reverse repurchase, and certain sale-buyback transactions between the Portfolio and select counterparties. Master Repo Agreements maintain provisions for, among other things, initiation, income payments, events of default, and maintenance of collateral. The market value of transactions under the Master Repo Agreement, collateral pledged or received, and the net exposure by counterparty as of period end are disclosed in the Notes to Schedule of Investments.

Master Securities Forward Transaction Agreements (“Master Forward Agreements”) govern certain forward settling transactions, such as TBA securities, delayed-delivery or certain sale-buyback transactions by and between the Portfolio and select counterparties. The Master Forward Agreements maintain provisions for, among other things, transaction initiation and confirmation, payment and transfer, events of default, termination, and maintenance of collateral. The market value of forward settling transactions, collateral pledged or received, and the net exposure by counterparty as of period end is disclosed in the Notes to Schedule of Investments.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Such transactions require posting of initial margin as determined by each relevant clearing agency which is segregated in an account at a futures commission merchant (“FCM”) registered with the Commodity Futures Trading Commission (“CFTC”). In the United States, counterparty risk may be reduced as creditors of an FCM cannot have a claim to Portfolio assets in the segregated account. Portability of exposure reduces risk to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives unless the parties have agreed to a separate arrangement in respect of portfolio margining. The market value or accumulated unrealized appreciation (depreciation), initial margin posted, and any unsettled variation margin as of period end are disclosed in the Notes to Schedule of Investments.

42 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

International Swaps and Derivatives Association, Inc. Master Agreements and Credit Support Annexes (“ISDA Master Agreements”) govern bilateral OTC derivative transactions entered into by the Portfolio with select counterparties. ISDA Master Agreements maintain provisions for general obligations, representations, agreements, collateral posting and events of default or termination. Events of termination include conditions that may entitle counterparties to elect to terminate early and cause settlement of all outstanding transactions under the applicable ISDA Master Agreement. Any election to terminate early could be material to the financial statements. In limited circumstances, the ISDA Master Agreement may contain additional provisions that add counterparty protection beyond coverage of existing daily exposure if the counterparty has a decline in credit quality below a predefined level. These amounts, if any, may be segregated with a third-party custodian. The market value of OTC financial derivative instruments, collateral received or pledged, and net exposure by counterparty as of period end are disclosed in the Notes to Schedule of Investments.

9. FEES AND EXPENSES

(a) Investment Advisory Fee  PIMCO is a majority-owned subsidiary of Allianz Asset Management of America L.P. (“Allianz Asset Management”) and serves as the Adviser to the Trust, pursuant to an investment advisory contract. The Adviser receives a monthly fee from the Portfolio at an annual rate based on average daily net assets (the “Investment Advisory Fee”). The Investment Advisory Fee for all classes is charged at an annual rate as noted in the table in note (b) below.

(b) Supervisory and Administrative Fee  PIMCO serves as administrator (the “Administrator”) and provides supervisory and administrative services to the Trust for which it receives a monthly supervisory and administrative fee based on each share class’s average daily net assets (the “Supervisory and Administrative Fee”). As the Administrator, PIMCO bears the costs of various third-party services, including audit, custodial, portfolio accounting, legal, transfer agency and printing costs.

The Investment Advisory Fee and Supervisory and Administrative Fees for all classes, as applicable, are charged at the annual rate as noted in the following table (calculated as a percentage of the Portfolio’s average daily net assets attributable to each class):

Investment Advisory Fee		Supervisory and Administrative Fee
All Classes		Institutional Class		Administrative Class		Advisor Class
	0.25%		0.25%		0.25%		0.25%

(c) Distribution and Servicing Fees  PIMCO Investments LLC, a wholly-owned subsidiary of PIMCO, serves as the distributor (“Distributor”) of the Trust’s shares.

The Trust has adopted an Administrative Services Plan with respect to the Administrative Class shares of the Portfolio pursuant to Rule 12b-1 under the Act (the “Administrative Plan”). Under the terms of the Administrative Plan, the Trust is permitted to compensate the Distributor, out of the Administrative Class assets of the Portfolio, in an amount up to 0.15% on an annual basis of the average daily net assets of that class, for providing or procuring through financial intermediaries administrative, recordkeeping and investor services for Administrative Class shareholders of the Portfolio.

The Trust has adopted a separate Distribution and Servicing Plan for the Advisor Class shares of the Portfolio (the “Distribution and Servicing Plan”). The Distribution and Servicing Plan has been adopted pursuant to Rule 12b-1 under the Act. The Distribution and Servicing Plan permits the Portfolio to compensate the Distributor for providing or procuring through financial intermediaries, distribution, administrative, recordkeeping, shareholder and/or related services with respect to Advisor Class shares. The Distribution and Servicing Plan permits the Portfolio to make total payments at an annual rate of up to 0.25% of its average daily net assets attributable to its Advisor Class shares.

	Distribution Fee		Servicing Fee
Administrative Class		—		0.15%
Advisor Class		0.25%		—

(d)Portfolio Expenses  PIMCO provides or procures supervisory and administrative services for shareholders and also bears the costs of various third-party services required by the Portfolio, including audit, custodial, portfolio accounting, legal, transfer agency and printing costs. The Trust is responsible for the following expenses: (i) taxes and governmental fees; (ii) brokerage fees and commissions and other portfolio transaction expenses; (iii) the costs of borrowing money, including interest expense; (iv) fees and expenses of the Trustees who are not “interested persons” of PIMCO or the Trust, and any counsel retained exclusively for their benefit; (v) extraordinary expense, including costs of litigation and indemnification expenses; (vi) organizational expenses; and (vii) any expenses allocated or allocable to a specific class of shares, which include service fees payable with respect to the Administrative Class Shares, and may include certain other expenses as permitted by the Trust’s Multi-Class Plan adopted pursuant to Rule 18f-3 under the Act and subject to review and approval by the Trustees. The ratio of expenses to average net assets per share class, as disclosed on the Financial Highlights, may differ from the annual portfolio operating expenses per share class.

Each Trustee, other than those affiliated with PIMCO or its affiliates, receives an annual retainer of $41,200, plus $4,250 for each Board meeting attended in person, $850 for each committee meeting attended and $750 for each Board meeting attended telephonically,

ANNUAL REPORT DECEMBER 31, 2018 43

Notes to Financial Statements (Cont.)

plus reimbursement of related expenses. In addition, the audit committee chair receives an additional annual retainer of $8,000, the valuation oversight committee lead receives an additional annual retainer of $8,500 (to the extent there are co-leads of the valuation oversight committee, the annual retainer will be split evenly between the co-leads, so that each co-lead individually receives an additional annual retainer of $4,250) and each other committee chair receives an additional annual retainer of $5,500. The Lead Independent Trustee receives an annual retainer of $7,000.

These expenses are allocated on a pro rata basis to each Portfolio of the Trust according to its respective net assets. The Trust pays no compensation directly to any Trustee or any other officer who is affiliated with the Administrator, all of whom receive remuneration for their services to the Trust from the Administrator or its affiliates.

(e)Expense Limitation  Pursuant to the Expense Limitation Agreement, PIMCO has agreed to waive a portion of the Portfolio’s Supervisory and Administrative Fee, or reimburse the Portfolio, to the extent that the Portfolio’s organizational expenses, pro rata share of expenses related to obtaining or maintaining a Legal Entity Identifier and pro rata share of Trustee Fees exceed 0.0049%, the “Expense Limit” (calculated as a percentage of the Portfolio’s average daily net assets attributable to each class). The Expense Limitation Agreement will automatically renew for one-year terms unless PIMCO provides written notice to the Trust at least 30 days prior to the end of the then current term.

Under certain conditions, PIMCO may be reimbursed for these waived amounts in future periods, not to exceed thirty-six months after the waiver. At December 31, 2018, there were no recoverable amounts.

10. RELATED PARTY TRANSACTIONS

The Adviser, Administrator, and Distributor are related parties. Fees paid to these parties are disclosed in Note 9, Fees and Expenses, and the accrued related party fee amounts are disclosed on the Statement of Assets and Liabilities.

The Portfolio is permitted to purchase or sell securities from or to certain related affiliated portfolios under specified conditions outlined in procedures adopted by the Board. The procedures have been designed to ensure that any purchase or sale of securities by the Portfolio from or to another fund or portfolio that are, or could be, considered an affiliate, or an affiliate of an affiliate, by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers complies with Rule 17a-7 under the Act. Further, as defined under the procedures, each transaction is effected at the current market price. Purchases and sales of securities pursuant to Rule 17a-7 under the Act for the period ended December 31, 2018, were as follows (amounts in thousands^†):

Purchases		Sales
$	13,946	$	685

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

11. GUARANTEES AND INDEMNIFICATIONS

Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust (including the Trust’s investment manager) is indemnified, to the extent permitted by the Act, against certain liabilities that may arise out of performance of their duties to the Portfolio. Additionally, in the normal course of business, the Portfolio enters into contracts that contain a variety of indemnification clauses. The Portfolio’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Portfolio that have not yet occurred. However, the Portfolio has not had prior claims or losses pursuant to these contracts.

12. PURCHASES AND SALES OF SECURITIES

The length of time the Portfolio has held a particular security is not generally a consideration in investment decisions. A change in the securities held by the Portfolio is known as “portfolio turnover.” The Portfolio may engage in frequent and active trading of portfolio securities to achieve its investment objective, particularly during periods of volatile market movements. High portfolio turnover may involve correspondingly greater transaction costs to the Portfolio, including brokerage commissions or dealer mark-ups and other transaction costs on the sale of securities and reinvestments in other securities. Such sales may also result in realization of taxable capital gains, including short-term capital gains (which are generally taxed at ordinary income tax rates). The transaction costs and tax effects associated with portfolio turnover may adversely affect a shareholder’s performance. The portfolio turnover rates are reported in the Financial Highlights.

Purchases and sales of securities (excluding short-term investments) for the period ended December 31, 2018, were as follows (amounts in thousands^†):

U.S. Government/Agency				All Other
Purchases		Sales		Purchases		Sales
$	6,570,864	$	6,570,267	$	288,592	$	344,202

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

13. REDEMPTIONS IN-KIND

For the period ended December 31, 2018, the Portfolio realized gains or losses from in-kind redemptions of approximately (amounts in thousands^†):

Realized Gains		Realized Losses
$	330	$	(3,496	)

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

44 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

14. SHARES OF BENEFICIAL INTEREST

The Trust may issue an unlimited number of shares of beneficial interest with a $0.001 par value. Changes in shares of beneficial interest were as follows (shares and amounts in thousands^†):

	Year Ended 12/31/2018						Year Ended 12/31/2017
	Shares			Amount			Shares			Amount
Receipts for shares sold
Institutional Class		2,559		$	30,985			4,030		$	49,842
Administrative Class		10,517			127,667			15,340			189,659
Advisor Class		1,549			18,847			2,666			32,971
Issued as reinvestment of distributions
Institutional Class		388			4,703			339			4,186
Administrative Class		2,812			34,109			2,948			36,462
Advisor Class		955			11,597			951			11,759
Cost of shares redeemed
Institutional Class		(2,344	)		(28,390	)		(2,296	)		(28,393	)
Administrative Class		(25,393	)		(307,053	)		(45,203	)		(558,082	)
Advisor Class		(11,795	)		(140,918	)		(2,958	)		(36,613	)
Net increase (decrease) resulting from Portfolio share transactions		(20,752	)	$	(248,453	)		(24,183	)	$	(298,209	)

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

As of December 31, 2018, three shareholders each owned 10% or more of the Portfolio’s total outstanding shares comprising 46% of the Portfolio. One of the shareholders is a related party and comprises 17% of the Portfolio. Related parties may include, but are not limited to, the investment adviser and its affiliates, affiliated broker dealers, fund of funds and directors or employees of the Trust or Adviser.

15. REGULATORY AND LITIGATION MATTERS

The Portfolio is not named as a defendant in any material litigation or arbitration proceedings and is not aware of any material litigation or claim pending or threatened against it.

The foregoing speaks only as of the date of this report.

16. FEDERAL INCOME TAX MATTERS

The Portfolio intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code (the “Code”) and distribute all of its taxable income and net realized gains, if applicable, to shareholders. Accordingly, no provision for Federal income taxes has been made.

The Portfolio may be subject to local withholding taxes, including those imposed on realized capital gains. Any applicable foreign capital gains

tax is accrued daily based upon net unrealized gains, and may be payable following the sale of any applicable investments.

In accordance with U.S. GAAP, the Adviser has reviewed the Portfolio’s tax positions for all open tax years. As of December 31, 2018, the Portfolio has recorded no liability for net unrecognized tax benefits relating to uncertain income tax positions it has taken or expects to take in future tax returns.

The Portfolio files U.S. federal, state, and local tax returns as required. The Portfolio’s tax returns are subject to examination by relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return but which can be extended to six years in certain circumstances. Tax returns for open years have incorporated no uncertain tax positions that require a provision for income taxes.

Shares of the Portfolio currently are sold to segregated asset accounts (“Separate Accounts”) of insurance companies that fund variable annuity contracts and variable life insurance policies (“Variable Contracts”). Please refer to the prospectus for the Separate Account and Variable Contract for information regarding Federal income tax treatment of distributions to the Separate Account.

ANNUAL REPORT DECEMBER 31, 2018 45

Notes to Financial Statements (Cont.)

December 31, 2018

As of December 31, 2018, the components of distributable taxable earnings are as follows (amounts in thousands^†):

	Undistributed Ordinary Income(1)		Undistributed Long-Term Capital Gains		Net Tax Basis Unrealized Appreciation/ (Depreciation)(2)			Other Book-to-Tax Accounting Differences(3)		Accumulated Capital Losses(4)			Qualified Late-Year Loss Deferral - Capital(5)		Qualified Late-Year Loss Deferral - Ordinary(6)
PIMCO Real Return Portfolio	$	5,846	$	0	$	(86,302	)	$	0	$	(171,539	)	$	0	$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽¹⁾  Includes undistributed short-term capital gains, if any.

⁽²⁾  Adjusted for open wash sale loss deferrals and the accelerated recognition of unrealized gain or loss on certain futures, options and forward contracts for federal income tax, purposes. Also adjusted for differences between book and tax realized and unrealized gain (loss) on swap contracts, treasury inflation-protected securities (TIPS), sale/buyback transactions, convertible preferred securities, passive foreign investment companies (PFICs), return of capital distributions from underlying funds, in-kind transactions, straddle loss deferrals, and Lehman securities.

⁽³⁾  Represents differences in income tax regulations and financial accounting principles generally accepted in the United States of America, mainly for distributions payable at fiscal year-end and organizational costs.

⁽⁴⁾  Capital losses available to offset future net capital gains expire in varying amounts as shown below.

⁽⁵⁾  Capital losses realized during the period November 1, 2018 through December 31, 2018 which the Portfolio elected to defer to the following taxable year pursuant to income tax regulations.

⁽⁶⁾  Specified losses realized during the period November 1, 2018 through December 31, 2018 which the Portfolio elected to defer to the following taxable year pursuant to income tax regulations.

Under the Regulated Investment Company Modernization Act of 2010, a fund is permitted to carry forward any new capital losses for an unlimited period. Additionally, such capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term under previous law.

As of December 31, 2018, the Portfolio had the following post-effective capital losses with no expiration (amounts in thousands^†):

	Short-Term		Long-Term
PIMCO Real Return Portfolio	$	96,956	$	74,583

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

As of December 31, 2018, the aggregate cost and the net unrealized appreciation/(depreciation) of investments for federal income tax purposes are as follows (amounts in thousands^†):

	Federal Tax Cost		Unrealized Appreciation		Unrealized (Depreciation)			Net Unrealized Appreciation/ (Depreciation)(7)
PIMCO Real Return Portfolio	$	3,023,418	$	34,715	$	(121,061	)	$	(86,346	)

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽⁷⁾  Primary differences, if any, between book and tax net unrealized appreciation/(depreciation) on investments are attributable to open wash sale loss deferrals, unrealized gain or loss on certain futures, options and forward contracts, treasury inflation protected securities (TIPS), sale/buyback transactions, realized and unrealized gain (loss) swap contracts, in-kind transactions, passive foreign investment companies (PFICs), return of capital distributions from underlying funds, straddle loss deferrals, and Lehman securities.

For the fiscal year ended December 31, 2018 and December 31, 2017, respectively, the Portfolio made the following tax basis distributions (amounts in thousands^†):

	December 31, 2018						December 31, 2017
	Ordinary Income Distributions(8)		Long-Term Capital Gain Distributions		Return of Capital(9)		Ordinary Income Distributions(8)		Long-Term Capital Gain Distributions		Return of Capital(9)
PIMCO Real Return Portfolio	$	50,449	$	0	$	0	$	43,526	$	0	$	8,881

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽⁸⁾  Includes short-term capital gains distributed, if any.

⁽⁹⁾  A portion of the distributions made represents a tax return of capital. Return of capital distributions have been reclassified from undistributed net investment income to paid-in capital to more appropriately conform financial accounting to tax accounting.

46 PIMCO VARIABLE INSURANCE TRUST

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of PIMCO Variable Insurance Trust and Shareholders of PIMCO Real Return Portfolio

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of PIMCO Real Return Portfolio (one of the portfolios constituting PIMCO Variable Insurance Trust, referred to hereafter as the “Portfolio”) as of December 31, 2018, the related statements of operations and cash flows for the year ended December 31, 2018, the statement of changes in net assets for each of the two years in the period ended December 31, 2018, including the related notes, and the financial highlights for each of the five years in the period ended December 31, 2018 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Portfolio as of December 31, 2018, the results of its operations and its cash flows for the year then ended, the changes in its net assets for each of the two years in the period ended December 31, 2018 and the financial highlights for each of the five years in the period ended December 31, 2018 in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Portfolio’s management. Our responsibility is to express an opinion on the Portfolio’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Portfolio in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2018 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

Kansas City, Missouri

February 20, 2019

We have served as the auditor of one or more investment companies in PIMCO Variable Insurance Trust since 1998.

ANNUAL REPORT DECEMBER 31, 2018 47

Glossary: (abbreviations that may be used in the preceding statements)

(Unaudited)

Counterparty Abbreviations:
BCY	Barclays Capital, Inc.	FICC	Fixed Income Clearing Corporation	MSC	Morgan Stanley & Co., Inc.
BOA	Bank of America N.A.	GLM	Goldman Sachs Bank USA	MYC	Morgan Stanley Capital Services, Inc.
BPG	BNP Paribas Securities Corp.	GSC	Goldman Sachs & Co.	MYI	Morgan Stanley & Co. International PLC
BPS	BNP Paribas S.A.	GST	Goldman Sachs International	SCX	Standard Chartered Bank
BRC	Barclays Bank PLC	HUS	HSBC Bank USA N.A.	SOG	Societe Generale
CBK	Citibank N.A.	IND	Crédit Agricole Corporate and Investment Bank S.A.	SSB	State Street Bank and Trust Co.
DUB	Deutsche Bank AG	JPM	JP Morgan Chase Bank N.A.	TDM	TD Securities (USA) LLC
FBF	Credit Suisse International	MSB	Morgan Stanley Bank, N.A	UAG	UBS AG Stamford
Currency Abbreviations:
ARS	Argentine Peso	GBP	British Pound	MYR	Malaysian Ringgit
AUD	Australian Dollar	IDR	Indonesian Rupiah	NZD	New Zealand Dollar
BRL	Brazilian Real	ILS	Israeli Shekel	PEN	Peruvian New Sol
CAD	Canadian Dollar	INR	Indian Rupee	RUB	Russian Ruble
CHF	Swiss Franc	JPY	Japanese Yen	SGD	Singapore Dollar
CNH	Chinese Renminbi (Offshore)	KRW	South Korean Won	TWD	Taiwanese Dollar
COP	Colombian Peso	MXN	Mexican Peso	USD (or $)	United States Dollar
EUR	Euro
Exchange Abbreviations:
CBOT	Chicago Board of Trade	OTC	Over the Counter
Index/Spread Abbreviations:
BADLARPP	Argentina Badlar Floating Rate Notes	CPALEMU	Euro Area All Items Non-Seasonally Adjusted Index	ISDA	International Swaps and Derivatives Association, Inc.
CDX.HY	Credit Derivatives Index - High Yield	CPTFEMU	Eurozone HICP ex-Tobacco Index	LIBOR03M	3 Month USD-LIBOR
CDX.IG	Credit Derivatives Index - Investment Grade	CPURNSA	Consumer Price All Urban Non-Seasonally Adjusted Index	UKRPI	United Kingdom Retail Prices Index
CMBX	Commercial Mortgage-Backed Index	FRCPXTOB	France Consumer Price ex-Tobacco Index	US0003M	3 Month USD Swap Rate
Other Abbreviations:
ABS	Asset-Backed Security	DAC	Designated Activity Company	OIS	Overnight Index Swap
ALT	Alternate Loan Trust	LIBOR	London Interbank Offered Rate	TBA	To-Be-Announced
BBR	Bank Bill Rate	Lunar	Monthly payment based on 28-day periods. One year consists of 13 periods.	TELBOR	Tel Aviv Inter-Bank Offered Rate
BTP	Buoni del Tesoro Poliennali	NCUA	National Credit Union Administration	TIIE	Tasa de Interés Interbancaria de Equilibrio “Equilibrium Interbank Interest Rate”
CLO	Collateralized Loan Obligation	OAT	Obligations Assimilables du Trésor	YOY	Year-Over-Year

48 PIMCO VARIABLE INSURANCE TRUST

Federal Income Tax Information

(Unaudited)

As required by the Internal Revenue Code (the “Code”) and Treasury Regulations, if applicable, shareholders must be notified regarding the status of qualified dividend income and the dividend received deduction.

Dividend Received Deduction.  Corporate shareholders are generally entitled to take the dividend received deduction on the portion of a Fund’s dividend distribution that qualifies under tax law. The percentage of the following Portfolio’s fiscal 2018 ordinary income dividend that qualifies for the corporate dividend received deduction is set forth in the table below.

Qualified Dividend Income.  Under the Jobs and Growth Tax Relief Reconciliation Act of 2003 (the “Act”), the percentage of ordinary dividends paid during the calendar year designated as “qualified dividend income”, as defined in the Act, subject to reduced tax rates in 2018 is set forth for the Portfolio in the table below.

Qualified Interest Income and Qualified Short-Term Capital Gain (for non-U.S. resident shareholders only).  Under the American Jobs Creation Act of 2004, the amounts of ordinary dividends paid during the fiscal year ended December 31, 2018 considered to be derived from “qualified interest income,” as defined in Section 871(k)(1)(E) of the Code, and therefore designated as interest-related dividends, as defined in Section 871(k)(1)(C) of the Code are set forth in the table below. Further, the amounts of ordinary dividends paid during the fiscal year ended December 31, 2018 considered to be derived from “qualified short-term capital gain,” as defined in Section 871(k)(2)(D) of the Code, and therefore designated as qualified short-term gain dividends, as defined by Section 871(k)(2)(C) of the Code are also set forth in the table below.

	Dividend Received Deduction %		Qualified Dividend Income %		Qualified Interest Income (000s†)		Qualified Short-Term Capital Gain (000s†)
PIMCO Real Return Portfolio		0.00%		0.00%	$	50,449	$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

Shareholders are advised to consult their own tax advisor with respect to the tax consequences of their investment in the Trust. In January 2019, you will be advised on IRS Form 1099-DIV as to the federal tax status of the dividends and distributions received by you in calendar year 2018.

ANNUAL REPORT DECEMBER 31, 2018 49

Management of the Trust

The charts below identify the Trustees and executive officers of the Trust. Unless otherwise indicated, the address of all persons below is 650 Newport Center Drive, Newport Beach, CA 92660.

The Portfolio’s Statement of Additional Information includes more information about the Trustees and Officers. To request a free copy, call PIMCO at (888) 87-PIMCO or visit the Portfolio’s website at www.pimco.com/pvit.

Name, Year of Birth and Position Held with Trust*	Term of Office and Length of Time Served†	Principal Occupation(s) During Past 5 Years	Number of Funds in Fund Complex Overseen by Trustee	Other Public Company and Investment Company Directorships Held by Trustee During the Past 5 Years
Interested Trustees1
Peter G. Strelow** (1970) Chairman of the Board and Trustee	05/2017 to present Chairman of the Board - 02/2019 to present	Managing Director and Co-Chief Operating Officer, PIMCO. President of the Trust, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Chief Administrative Officer, PIMCO.	153	Chairman and Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT.
Brent R. Harris** (1959) Trustee	08/1997 to present	Managing Director, PIMCO. Senior Vice President of the Trust, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Formerly, member of Executive Committee, PIMCO.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT; Director, StocksPLUS® Management, Inc; and member of Board of Governors, Investment Company Institute. Formerly, Chairman, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT.
Independent Trustees
George E. Borst (1948) Trustee	04/2015 to present	Executive Advisor, McKinsey & Company (since 10/14); Formerly, Executive Advisor, Toyota Financial Services (10/13-12/14); and CEO, Toyota Financial Services (1/01-9/13).	132	Trustee, PIMCO Funds and PIMCO ETF Trust; Director, MarineMax Inc.
Jennifer Holden Dunbar (1963) Trustee	04/2015 to present	Managing Director, Dunbar Partners, LLC (business consulting and investments). Formerly, Partner, Leonard Green & Partners, L.P.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT; Director, PS Business Parks; Director, Big 5 Sporting Goods Corporation.
Kym M. Hubbard (1957) Trustee	02/2017 to present	Formerly, Global Head of Investments, Chief Investment Officer and Treasurer, Ernst & Young.	132	Trustee, PIMCO Funds and PIMCO ETF Trust; Director, State Auto Financial Corporation.
Gary F. Kennedy (1955) Trustee	04/2015 to present	Formerly, Senior Vice President, General Counsel and Chief Compliance Officer, American Airlines and AMR Corporation (now American Airlines Group) (1/03-1/14).	132	Trustee, PIMCO Funds and PIMCO ETF Trust.
Peter B. McCarthy (1950) Trustee	04/2015 to present	Formerly, Assistant Secretary and Chief Financial Officer, United States Department of Treasury; Deputy Managing Director, Institute of International Finance.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Ronald C. Parker (1951) Lead Independent Trustee	07/2009 to present Lead Independent Trustee - 02/2017 to present	Director of Roseburg Forest Products Company. Formerly, Chairman of the Board, The Ford Family Foundation; and President, Chief Executive Officer, Hampton Affiliates (forestry products).	153	Lead Independent Trustee, PIMCO Funds and PIMCO ETF Trust; Trustee, PIMCO Equity Series and PIMCO Equity Series VIT.

* Unless otherwise noted, the information for the individuals listed is as of December 31, 2018.

** Effective February 13, 2019, Mr. Strelow became the Chairman of the Trust.

¹  Mr. Harris and Mr. Strelow are “interested persons” of the Trust (as that term is defined in the 1940 Act) because of their affiliations with PIMCO.

^†  Trustees serve until their successors are duly elected and qualified.

50 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

Executive Officers

Name, Year of Birth and Position Held with Trust	Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years*
Peter G. Strelow (1970) President	01/2015 to present	Managing Director and Co-Chief Operating Officer, PIMCO. President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Chief Administrative Officer, PIMCO.
Joshua D. Ratner (1976)** Chief Legal Officer	11/2018 to present Vice President - Senior Counsel and Secretary 11/2013 to 11/2018 Assistant Secretary 10/2007 to 01/2011	Executive Vice President and Deputy General Counsel, PIMCO. Chief Legal Officer, PIMCO Investments LLC. Chief Legal Officer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Jennifer E. Durham (1970) Chief Compliance Officer	07/2004 to present	Managing Director and Chief Compliance Officer, PIMCO. Chief Compliance Officer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Brent R. Harris (1959) Senior Vice President	01/2015 to present President 03/2009 to 01/2015	Managing Director, PIMCO. Senior Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Formerly, member of Executive Committee, PIMCO.
Ryan G. Leshaw (1980) Vice President, Senior Counsel and Secretary	11/2018 to present Assistant Secretary 05/2012 to 11/2018	Senior Vice President and Senior Counsel, PIMCO. Vice President, Senior Counsel and Secretary, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Assistant Secretary, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Associate, Willkie Farr & Gallagher LLP.
Wu-Kwan Kit (1981) Assistant Secretary	08/2017 to present	Senior Vice President and Senior Counsel, PIMCO. Assistant Secretary, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Vice President, Senior Counsel and Secretary, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Assistant General Counsel, VanEck Associates Corp.
Stacie D. Anctil (1969) Vice President	05/2015 to present Assistant Treasurer 11/2003 to 05/2015	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
William G. Galipeau (1974) Vice President	11/2013 to present	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Eric D. Johnson (1970) Vice President	05/2011 to present	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Henrik P. Larsen (1970) Vice President	02/1999 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Bijal Y. Parikh (1978) Vice President	02/2017 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Greggory S. Wolf (1970) Vice President	05/2011 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Trent W. Walker (1974) Treasurer	11/2013 to present	Executive Vice President, PIMCO. Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Erik C. Brown (1967)** Assistant Treasurer	02/2001 to present	Executive Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Colleen D. Miller (1980)** Assistant Treasurer	02/2017 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Christopher M. Morin (1980) Assistant Treasurer	08/2016 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Jason J. Nagler (1982)** Assistant Treasurer	05/2015 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.

* The term “PIMCO-Sponsored Closed-End Funds” as used herein includes: PIMCO California Municipal Income Fund, PIMCO California Municipal Income Fund II, PIMCO California Municipal Income Fund III, PIMCO Municipal Income Fund, PIMCO Municipal Income Fund II, PIMCO Municipal Income Fund III, PIMCO New York Municipal Income Fund, PIMCO New York Municipal Income Fund II, PIMCO New York Municipal Income Fund III, PCM Fund Inc., PIMCO Corporate & Income Opportunity Fund, PIMCO Corporate & Income Strategy Fund, PIMCO Dynamic Credit and Mortgage Income Fund, PIMCO Dynamic Income Fund, PIMCO Global StocksPLUS^® & Income Fund, PIMCO High Income Fund, PIMCO Income Opportunity Fund, PIMCO Income Strategy Fund, PIMCO Income Strategy Fund II and PIMCO Strategic Income Fund, Inc.; the term “PIMCO-Sponsored Interval Funds” as used herein includes: PIMCO Flexible Credit Income Fund and PIMCO Flexible Municipal Income Fund.

** The address of these officers is Pacific Investment Management Company LLC, 1633 Broadway, New York, New York 10019.

ANNUAL REPORT DECEMBER 31, 2018 51

Privacy Policy¹

(Unaudited)

The Trust^2,3 considers customer privacy to be a fundamental aspect of its relationships with shareholders and is committed to maintaining the confidentiality, integrity and security of its current, prospective and former shareholders’ non-public personal information. The Trust has developed policies that are designed to protect this confidentiality, while allowing shareholder needs to be served.

OBTAINING PERSONAL INFORMATION

In the course of providing shareholders with products and services, the Trust and certain service providers to the Trust, such as the Trust’s investment advisers or sub-advisers (“Advisers”), may obtain non-public personal information about shareholders, which may come from sources such as account applications and other forms, from other written, electronic or verbal correspondence, from shareholder transactions, from a shareholder’s brokerage or financial advisory firm, financial advisor or consultant, and/or from information captured on applicable websites.

RESPECTING YOUR PRIVACY

As a matter of policy, the Trust does not disclose any non-public personal information provided by shareholders or gathered by the Trust to non-affiliated third parties, except as required or permitted by law or as necessary for such third parties to perform their agreements with respect to the Trust. As is common in the industry, non-affiliated companies may from time to time be used to provide certain services, such as preparing and mailing prospectuses, reports, account statements and other information, conducting research on shareholder satisfaction and gathering shareholder proxies. The Trust or its affiliates may also retain non-affiliated companies to market the Trust’s shares or products which use the Trust’s shares and enter into joint marketing arrangements with them and other companies. These companies may have access to a shareholder’s personal and account information, but are permitted to use this information solely to provide the specific service or as otherwise permitted by law. In most cases, the shareholders will be clients of a third party, but the Trust may also provide a shareholder’s personal and account information to the shareholder’s respective brokerage or financial advisory firm and/or financial advisor or consultant.

SHARING INFORMATION WITH THIRD PARTIES

The Trust reserves the right to disclose or report personal or account information to non-affiliated third parties in limited circumstances where the Trust believes in good faith that disclosure is required under law, to cooperate with regulators or law enforcement authorities, to protect its rights or property, or upon reasonable request by any fund advised by PIMCO in which a shareholder has invested. In addition, the Trust may disclose information about a shareholder or a shareholder’s accounts to a non-affiliated third party at the shareholder’s request or with the consent of the shareholder.

SHARING INFORMATION WITH AFFILIATES

The Trust may share shareholder information with its affiliates in connection with servicing shareholders’ accounts, and subject to applicable law may provide shareholders with information about products and services that the Trust or its Advisers, distributors or their affiliates (“Service Affiliates”) believe may be of interest to such shareholders. The information that the Trust may share may include, for example, a shareholder’s participation in the Trust or in other

investment programs sponsored by a Service Affiliate, a shareholder’s ownership of certain types of accounts (such as IRAs), information about the Trust’s experiences or transactions with a shareholder, information captured on applicable websites, or other data about a shareholder’s accounts, subject to applicable law. The Trust’s Service Affiliates, in turn, are not permitted to share shareholder information with non-affiliated entities, except as required or permitted by law.

PROCEDURES TO SAFEGUARD PRIVATE INFORMATION

The Trust takes seriously the obligation to safeguard shareholder non-public personal information. In addition to this policy, the Trust has implemented procedures that are designed to restrict access to a shareholder’s non-public personal information to internal personnel who need to know that information to perform their jobs, such as servicing shareholder accounts or notifying shareholders of new products or services. Physical, electronic and procedural safeguards are in place to guard a shareholder’s non-public personal information.

INFORMATION COLLECTED FROM WEBSITES

Websites maintained by the Trust or its service providers may use a variety of technologies to collect information that help the Trust and its service providers understand how the website is used. Information collected from your web browser (including small files stored on your device that are commonly referred to as “cookies”) allow the websites to recognize your web browser and help to personalize and improve your user experience and enhance navigation of the website. In addition, the Trust or its Service Affiliates may use third parties to place advertisements for the Trust on other websites, including banner advertisements. Such third parties may collect anonymous information through the use of cookies or action tags (such as web beacons). The information these third parties collect is generally limited to technical and web navigation information, such as your IP address, web pages visited and browser type, and does not include personally identifiable information such as name, address, phone number or email address. If you are a registered user of the Trust’s website, the Trust or their service providers or third party firms engaged by the Trust or their service providers may collect or share information submitted by you, which may include personally identifiable information. This information can be useful to the Trust when assessing and offering services and website features. You can change your cookie preferences by changing the setting on your web browser to delete or reject cookies. If you delete or reject cookies, some website pages may not function properly. The Trust does not look for web browser “do not track” requests.

CHANGES TO THE PRIVACY POLICY

From time to time, the Trust may update or revise this privacy policy. If there are changes to the terms of this privacy policy, documents containing the revised policy on the relevant website will be updated.

¹ Amended as of February 15, 2017.

² PIMCO Investments LLC (“PI”) serves as the Trust’s distributor. This Privacy Policy applies to the activities of PI to the extent that PI regularly effects or engages in transactions with or for a Trust shareholder who is the record owner of such shares. For purposes of this Privacy Policy, references to “the Trust” shall include PI when acting in this capacity.

³ When distributing this Policy, the Trust may combine the distribution with any similar distribution of its investment adviser’s privacy policy. The distributed, combined policy may be written in the first person (i.e., by using “we” instead of “the Trust”).

52 PIMCO VARIABLE INSURANCE TRUST

Approval of Investment Advisory Contract and Other Agreements

(Unaudited)

Approval of Renewal of the Amended and Restated Investment Advisory Contract, Supervision and Administration Agreement and Amended and Restated Asset Allocation Sub-Advisory Agreement

At a meeting held on August 20-21, 2018, the Board of Trustees (the “Board”) of PIMCO Variable Insurance Trust (the “Trust”), including the Trustees who are not “interested persons” of the Trust under the Investment Company Act of 1940, as amended (the “Independent Trustees”), considered and unanimously approved the renewal of the Amended and Restated Investment Advisory Contract (the “Investment Advisory Contract”) between the Trust, on behalf of each of the Trust’s series (the “Portfolios”), and Pacific Investment Management Company LLC (“PIMCO”) for an additional one-year term through August 31, 2019. The Board also considered and unanimously approved the renewal of the Supervision and Administration Agreement (together with the Investment Advisory Contract, the “Agreements”) between the Trust, on behalf of the Portfolios, and PIMCO for an additional one-year term through August 31, 2019. In addition, the Board considered and unanimously approved the renewal of the Amended and Restated Asset Allocation Sub-Advisory Agreement (the “Asset Allocation Agreement”) between PIMCO, on behalf of PIMCO All Asset Portfolio and PIMCO All Asset All Authority Portfolio, each a series of the Trust, and Research Affiliates, LLC (“Research Affiliates”) for an additional one-year term through August 31, 2019.

The information, material factors and conclusions that formed the basis for the Board’s approvals are summarized below.

1. INFORMATION RECEIVED

(a) Materials Reviewed:  During the course of the past year, the Trustees received a wide variety of materials relating to the services provided by PIMCO and Research Affiliates to the Trust. At each of its quarterly meetings, the Board reviewed the Portfolios’ investment performance and a significant amount of information relating to Portfolio operations, including shareholder services, valuation and custody, the Portfolios’ compliance program and other information relating to the nature, extent and quality of services provided by PIMCO and Research Affiliates to the Trust and each of the Portfolios, as applicable. In considering whether to approve the renewal of the Agreements and the Asset Allocation Agreement, the Board reviewed additional information, including, but not limited to, comparative industry data with regard to investment performance, advisory and supervisory and administrative fees and expenses, financial information for PIMCO and, where relevant, Research Affiliates, information regarding the profitability to PIMCO of its relationship with the Portfolios, information about the personnel providing investment management services, other advisory services and supervisory and administrative services to the Portfolios, and information about the fees

charged and services provided to other clients with similar investment mandates as the Portfolios, where applicable. In addition, the Board reviewed materials provided by counsel to the Trust and the Independent Trustees, which included, among other things, memoranda outlining legal duties of the Board in considering the renewal of the Agreements and the Asset Allocation Agreement.

(b) Review Process:  In connection with considering the renewal of the Agreements and the Asset Allocation Agreement, the Board reviewed written materials prepared by PIMCO and, where applicable, Research Affiliates in response to requests from counsel to the Trust and the Independent Trustees encompassing a wide variety of topics. The Board requested and received assistance and advice regarding, among other things, applicable legal standards from counsel to the Trust and the Independent Trustees, and reviewed comparative fee and performance data prepared at the Board’s request by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company performance information and fee and expense data. The Board received information on matters related to the Agreements and the Asset Allocation Agreement and met both as a full Board and in a separate session of the Independent Trustees, without management present, at the August 20-21, 2018 meeting. The Independent Trustees also conducted in-person meetings with counsel to the Trust and the Independent Trustees, including one on July 18, 2018, to discuss the Lipper Report, as defined below, and certain aspects of the 2018 15(c) materials presented and other matters deemed relevant to their consideration of the renewal of the Agreements and the Asset Allocation Agreement. In connection with its review of the Agreements, the Board received comparative information on the performance and the fees and expenses of other peer group funds and share classes. In addition, the Independent Trustees requested and received supplemental information.

The approval determinations were made on the basis of each Trustee’s business judgment after consideration and evaluation of all the information presented. Individual Trustees may have given different weights to certain factors and assigned various degrees of materiality to information received in connection with the approval process. In deciding to approve the renewal of the Agreements and the Asset Allocation Agreement, the Board did not identify any single factor or particular information that, in isolation, was controlling. The discussion below is intended to summarize the broad factors and information that figured prominently in the Board’s consideration of the renewal of the Agreements and the Asset Allocation Agreement, but is not intended to summarize all of the factors considered by the Board.

2. NATURE, EXTENT AND QUALITY OF SERVICES

(a) PIMCO, Research Affiliates, their Personnel, and Resources:  The Board considered the depth and quality of PIMCO’s investment management process, including: the experience, capability and integrity

ANNUAL REPORT DECEMBER 31, 2018 53

Approval of Investment Advisory Contract and Other Agreements (Cont.)

of its senior management and other personnel; the overall financial strength and stability of its organization; and the ability of its organizational structure to address changes in the Portfolios’ asset levels. The Board also considered the various services in addition to portfolio management that PIMCO provides under the Investment Advisory Contract. The Board noted that PIMCO makes available to its investment professionals a variety of resources and systems relating to investment management, compliance, trading, performance and portfolio accounting. The Board also noted PIMCO’s commitment to enhancing and investing in its global infrastructure, technology capabilities, risk management processes and the specialized talent needed to stay at the forefront of the competitive investment management industry and to strengthen its ability to deliver services under the Agreements. The Board considered PIMCO’s policies, procedures and systems reasonably designed to assure compliance with applicable laws and regulations and its commitment to further developing and strengthening these programs, its oversight of matters that may involve conflicts of interest between the Portfolios’ investments and those of other accounts managed by PIMCO, and its efforts to keep the Trustees informed about matters relevant to the Portfolios and their shareholders. The Board also considered PIMCO’s continuous investment in new disciplines and talented personnel, which has enhanced PIMCO’s services to the Portfolios and has allowed PIMCO to introduce innovative new portfolios over time. In addition, the Board considered the nature and quality of services provided by PIMCO to the wholly-owned subsidiaries of certain applicable Portfolios.

The Trustees considered that PIMCO has continued to strengthen the process it uses to actively manage counterparty risk and to assess the financial stability of counterparties with which the Portfolios do business, to manage collateral and to protect Portfolios from an unforeseen deterioration in the creditworthiness of trading counterparties. The Trustees noted that, consistent with its fiduciary duty, PIMCO executes transactions through a competitive best execution process and uses only those counterparties that meet its stringent and monitored criteria. The Trustees considered that PIMCO’s collateral management team utilizes a counterparty risk system to analyze portfolio level exposure and collateral being exchanged with counterparties.

In addition, the Trustees considered new services and service enhancements that PIMCO has implemented since the Board renewed the Agreements in 2017, including, but not limited to upgrading the global network and infrastructure to support trading and risk management systems; enhancing and continuing to expand capabilities within the pre-trade compliance platform; enhancing flexible client reporting capabilities to support increased differentiation within local markets; developing new application and database frameworks to support new trading strategies; expanding proprietary applications

suites to enrich capabilities across Compliance, Analytics, Risk Management, Client Reporting, Attribution and Customer Relationship management; continuing investment in its enterprise risk management function, including PIMCO’s cybersecurity program and global business continuity functions; oversight by the Americas Fund Oversight Committee, which provides senior-level oversight and supervision focused on new and ongoing fund-related business opportunities; engaging a third party service provider to implement the SEC reporting modernization regime; expanding the Fund Treasurer’s Office; enhancing a proprietary application to provide portfolio managers with more timely and high quality income reporting; developing a global tax management application that will enable investment professionals to access foreign market and security tax information on a real-time basis; enhancing reporting of tax reporting for portfolio managers for income products with improved transparency on tax factors impacting income generation and dividend yield; upgrading a proprietary application to allow shareholder subscription and redemption data to pass to portfolio managers more quickly and efficiently; and continuing to expand the pricing portal and the proprietary performance reconciliation tool.

Similarly, the Board considered the asset allocation services provided by Research Affiliates to the PIMCO All Asset Portfolio and PIMCO All Asset All Authority Portfolio. The Board further considered PIMCO’s oversight of Research Affiliates in connection with Research Affiliates providing asset allocation services to the Asset Portfolio and All Asset All Authority Portfolio. The Board also considered the depth and quality of Research Affiliates’ investment management and research capabilities, the experience and capabilities of its portfolio management personnel and the overall financial strength of the organization.

Ultimately, the Board concluded that the nature, extent and quality of services provided or procured by PIMCO under the Agreements and provided by Research Affiliates under the Asset Allocation Agreement are likely to continue to benefit the Portfolios and their respective shareholders, as applicable.

(b) Other Services:  The Board also considered the nature, extent and quality of supervisory and administrative services provided by PIMCO to the Portfolios under the Supervision and Administration Agreement.

The Board considered the terms of the Supervision and Administration Agreement, under which the Trust pays for the supervisory and administrative services provided pursuant to that agreement under what is essentially an all-in fee structure (the “unified fee”). In return, PIMCO provides or procures certain supervisory and administrative services and bears the costs of various third party services required by the Portfolios, including audit, custodial, portfolio accounting, legal, transfer agency, sub-accounting and printing costs. The Board noted that the scope and complexity, as well as the costs, of the supervisory

54 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

and administrative services provided by PIMCO under the Supervision and Administration Agreement continue to increase. The Board considered PIMCO’s provision of supervisory and administrative services and its supervision of the Trust’s third party service providers to assure that these service providers continue to provide a high level of service relative to alternatives available in the market.

Ultimately, the Board concluded that the nature, extent and quality of the services provided by PIMCO has benefited, and will likely continue to benefit, the Portfolios and their shareholders.

3. INVESTMENT PERFORMANCE

The Board reviewed information from PIMCO concerning the Portfolios’ performance, as available, over short- and long-term periods ended March 31, 2018 and other performance data, as available, over short- and long-term periods ended June 30, 2018 (the “PIMCO Report”) and from Broadridge concerning the Portfolios’ performance, as available, over short- and long-term periods ended March 31, 2018 (the “Lipper Report”).

The Board considered information regarding both the short- and long-term investment performance of each Portfolio relative to its peer group and relevant benchmark index as provided to the Board in advance of each of its quarterly meetings throughout the year, including the PIMCO Report and Lipper Report, which were provided in advance of the August 20-21, 2018 meeting. The Trustees noted that many of the Portfolios outperformed their respective Lipper medians on a net-of-fees basis over the three-, five- and ten-year periods ended March 31, 2018. The Board also noted that, as of March 31, 2018, the Administrative Class of 72%, 35% and 73% of the Portfolios outperformed their respective Lipper category median on a net-of-fees basis over the three-, five- and ten-year periods, respectively. The Trustees considered that other classes of each Portfolio would have substantially similar performance to that of the Administrative Class of the relevant Portfolio on a relative basis because all of the classes are invested in the same portfolio of investments and that differences in performance among classes could principally be attributed to differences in the supervisory and administrative fees and distribution and servicing expenses of each class. The Board also considered that the investment objectives of certain of the Portfolios may not always be identical to those of the other funds in their respective peer groups and that the Lipper categories do not: separate funds based upon maturity or duration; account for the applicable Portfolios’ hedging strategies; distinguish between enhanced index and actively managed equity strategies; include as many subsets as the Portfolios offer (i.e., Portfolios may be placed in a “catch-all” Lipper category to which they do not properly belong); or account for certain fee waivers. The Board noted that, due to these differences, performance comparisons between certain of the Portfolios and their so-called peers may not be

particularly relevant to the consideration of Portfolio performance but found the comparative information supported its overall evaluation.

The Board noted that performance for a majority of the Portfolios has been mixed compared to their respective benchmark indexes over the five-year period ended March 31, 2018. The Board noted that, as of March 31, 2018, 70%, 23% and 92% of the Trust’s assets (based on Administrative Class performance) outperformed their respective benchmarks on a net-of-fees basis over the three-, five- and ten-year periods, respectively. The Board also discussed actions that have been taken by PIMCO to attempt to improve performance and took note of PIMCO’s plans to monitor performance going forward.

The Board considered PIMCO’s discussion of the intensive nature of managing bond funds, noting that it requires the management of a number of factors, including: varying maturities; prepayments; collateral management; counterparty management; pay-downs; credit and corporate events; workouts; derivatives; net new issuance in the bond market; and decreased market maker inventory levels. The Board noted that in addition to managing these factors, PIMCO must also balance risk controls and strategic positions in each portfolio it manages, including the Portfolios. Despite these challenges, the Board noted PIMCO’s ability to generate non-market correlated excess performance for its clients over time, including the Trust.

The Board ultimately concluded, within the context of all of its considerations in connection with the Agreements, that PIMCO’s performance record and process in managing the Portfolios indicates that its continued management is likely to benefit the Portfolios and their shareholders, and merits the approval of the renewal of the Agreements.

4. ADVISORY FEES, SUPERVISORY AND ADMINISTRATIVE FEES AND TOTAL EXPENSES

The Board considered that PIMCO seeks to price new funds and classes to scale. PIMCO reported to the Board that, in proposing fees for any Portfolio or class of shares, it considers a number of factors, including, but not limited to, the type and complexity of the services provided, the cost of providing services, the risk assumed by PIMCO in the development of products and the provision of services and the competitive marketplace for financial products. Fees charged to or proposed for different Portfolios for advisory services and supervisory and administrative services may vary in light of these various factors. The Board considered that portfolio pricing generally is not driven by comparison to passively-managed products.

In addition, PIMCO reported to the Board that it periodically reviews the fees charged to the Portfolios. The Board noted that, based upon this review, PIMCO may propose advisory fee or supervisory and administrative fee changes where (i) a Portfolio’s long-term performance warrants additional consideration; (ii) there is a notable aid to market

ANNUAL REPORT DECEMBER 31, 2018 55

Approval of Investment Advisory Contract and Other Agreements (Cont.)

position; (iii) a Portfolio’s fee does not reflect the current level of supervision or administrative fees provided to the Portfolio; or (iv) PIMCO would like to change a Portfolio’s overall strategic positioning.

The Board reviewed the advisory fees, supervisory and administrative fees and total expenses of the Portfolios (each as a percentage of average net assets) and compared such amounts with the average and median fee and expense levels of other similar funds. The Board also reviewed information relating to the sub-advisory fees paid to Research Affiliates with respect to applicable Portfolios, taking into account that PIMCO compensates Research Affiliates from the advisory fees paid by such Portfolios to PIMCO. With respect to advisory fees, the Board reviewed data from Broadridge that compared the average and median advisory fees of other funds in a “Peer Group” of comparable funds, as well as the universe of other similar funds. The Board noted that a number of Portfolios have total expense ratios that fall below the average and median expense ratios in their Peer Group and Lipper universe. In addition, the Board considered fee waivers in place for certain of the Portfolios and also noted the fee waivers in place with respect to the advisory fee and supervisory and administrative fee that might result from investments by applicable Portfolios in their respective wholly-owned subsidiaries. The Board also considered that PIMCO reviews the Portfolios’ fee levels and carefully considers changes where appropriate.

The Board also reviewed data comparing the Portfolios’ advisory fees to the standard and negotiated fee rates PIMCO charges to separate accounts, collective investment trusts and sub-advised clients with similar investment strategies. In cases where the fees for other clients were lower than those charged to the Portfolios, the Trustees noted that the differences in fees were attributable to various factors, including, but not limited to, differences in the advisory and other services provided by PIMCO to the Portfolios, differences in the number or extent of the services provided by PIMCO to the Portfolios, the manner in which similar portfolios may be managed, different requirements with respect to liquidity management and the implementation of other regulatory requirements, and the fact that separate accounts may have other contractual arrangements or arrangements across PIMCO strategies that justify different levels of fees. The Board considered that, with respect to collective investment trusts, PIMCO performs fewer or less extensive services because collective investment trusts are generally exempt from SEC regulation; investors in a collective investment trust may receive shareholder services from a trustee bank, rather than PIMCO; collective investment trusts have less regulatory disclosure; and the management structure of collective investment trusts differs from that of funds. The Trustees also considered that PIMCO faces increased entrepreneurial, legal and regulatory risk in sponsoring and managing mutual funds and ETFs as compared to separate accounts, external sub-advised funds or other investment products.

Regarding advisory fees charged by PIMCO in its capacity as sub-adviser to third party/unaffiliated funds, the Trustees took into account that such fees may be lower than the fees charged by PIMCO to serve as adviser to the Portfolios. The Trustees also took into account that there are various reasons for any such differences in fees, including, but not limited to, the fact that PIMCO may be subject to varying levels of entrepreneurial risk and regulatory requirements, differing legal liabilities on a contract-by-contract basis and different servicing requirements when PIMCO does not serve as the sponsor of a fund and is not principally responsible for all aspects of a fund’s investment program and operations as compared to when PIMCO serves as investment adviser and sponsor.

The Board considered the Portfolios’ supervisory and administrative fees, comparing them to similar funds in the report supplied by Broadridge. The Board also considered that as the Portfolios’ business has become increasingly complex and the number of Portfolios has grown over time, PIMCO has provided an increasingly broad array of fund supervisory and administrative functions. In addition, the Board considered the Trust’s unified fee structure, under which the Trust pays for the supervisory and administrative services it requires for one set fee. In return for this unified fee, PIMCO provides or procures supervisory and administrative services and bears the costs of various third party services required by the Portfolios, including audit, custodial, portfolio accounting, legal, transfer agency, sub-accounting and printing costs. The Board further considered that many other funds pay for comparable services separately, and thus it is difficult to directly compare the Trust’s unified supervisory and administrative fees with the fees paid by other funds for administrative services alone. The Board also considered that the unified supervisory and administrative fee leads to Portfolio fees that are fixed over the contract period, rather than variable. The Board noted that, although the unified fee structure does not have breakpoints, it implicitly reflects economies of scale by fixing the absolute level of Portfolio fees at competitive levels over the contract period even if the Portfolios’ operating costs rise when assets remain flat or decrease. Other factors the Board considered in assessing the unified fee include PIMCO’s approach of pricing Portfolios to scale at inception and reinvesting in other important areas of the business that support the Portfolios. The Board considered that the Portfolios’ unified fee structure meant that fees were not impacted by recent outflows in certain Portfolios, unlike funds without a unified fee structure, which may see increased expense ratios when fixed costs, such as service provider costs, are passed through to a smaller asset base. The Board considered historical advisory and supervisory and administrative fee reductions implemented for different Portfolios and classes, noting that the unified fee can be increased or decreased in subsequent contractual periods and is subject to the periodic reviews discussed above. The Board noted that, with few exceptions, PIMCO

56 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

has generally maintained Portfolio fees at the same level as implemented when the unified fee was adopted, and has reduced fees for a number of Portfolios in prior years. The Board concluded that the Portfolios’ supervisory and administrative fees were reasonable in relation to the value of the services provided, including the services provided to different classes of shareholders, and that the expenses assumed contractually by PIMCO under the Supervision and Administration Agreement represent, in effect, a cap on overall Portfolio fees during the contractual period, which is beneficial to the Portfolios and their shareholders.

The Board considered the Portfolios’ total expenses and discussed with PIMCO those Portfolios and/or classes of Portfolios that had above median total expenses. The Board noted that many of the Portfolios are unique products that have few peers, if any, and cannot easily be grouped with comparable funds. Upon comparing the Portfolios’ total expenses to other funds in the “Peer Groups” provided by Broadridge, the Board found total expenses of each Portfolio to be reasonable.

The Trustees also considered the advisory fees charged to the Portfolios that operate as funds of funds (the “Funds of Funds”) and the advisory services provided in exchange for such fees. The Trustees determined that such services were in addition to the advisory services provided to the underlying funds in which the Funds of Funds may invest and, therefore, such services were not duplicative of the advisory services provided to the underlying funds. The Board also considered the various fee waiver agreements in place for the Funds of Funds. The Board noted that PIMCO is continuing waivers for these Funds of Funds, as well as for certain other Portfolios of the Trust.

Based on the information presented by PIMCO, Research Affiliates and Broadridge, members of the Board determined, in the exercise of their business judgment, that the level of the advisory fees and supervisory and administrative fees charged by PIMCO under the Agreements, as well as the total expenses of each Portfolio, after the proposals to decrease the management fee, are reasonable.

5. ADVISER COSTS, LEVEL OF PROFITS AND ECONOMIES OF SCALE

The Board reviewed information regarding PIMCO’s costs of providing services to the Funds as a whole, as well as the resulting level of profits to PIMCO under both the adjusted asset profitability method and the profit and loss profitability method, which were each utilized to calculate profitability. To the extent applicable, the Board also reviewed information regarding the portion of a Portfolio’s advisory fee retained by PIMCO, following the payment of sub-advisory fees to Research Affiliates, with respect to the Portfolio. Additionally, the Board noted that profit margins with respect to the Trust shows that the Trust is profitable, although less so than PIMCO Funds due to payments made

by PIMCO to participating insurance companies. The Board further noted PIMCO’s engagement of a third party to review and to make recommendations regarding PIMCO’s processes supporting its profitability estimation materials. The Board also noted that it had received information regarding the structure and manner in which PIMCO’s investment professionals were compensated, and PIMCO’s view of the relationship of such compensation to the attraction and retention of quality personnel. The Board considered PIMCO’s need to invest in global infrastructure, technology capabilities, risk management processes and qualified personnel to reinforce and offer new services and to accommodate changing regulatory requirements.

With respect to potential economies of scale, the Board noted that PIMCO shares the benefits of economies of scale with the Portfolios and their shareholders in a number of ways, including investing in portfolio and trade operations management, firm technology, middle and back office support, legal and compliance, and fund administration logistics, senior management supervision, governance and oversight of those services, and through fee reductions or waivers, the pricing of Portfolios to scale from inception, and the enhancement of services provided to the Portfolios in return for fees paid. The Board reviewed the history of the Portfolios’ fee structure. The Board considered that the Portfolios’ unified fee rates had been set competitively and/or priced to scale from inception, had been held steady during the contractual period at that scaled competitive rate for most Portfolios as assets grew, or as assets declined in the case of some Portfolios, and continued to be competitive compared with peers. The Board also considered that the unified fee is a transparent means of informing a Portfolio’s shareholders of the fees associated with the Portfolio, and that the Portfolio bears certain expenses that are not covered by the advisory fee or the unified fee. The Board further considered the challenges that arise when managing large funds, which can result in certain “diseconomies” of scale and noted that PIMCO has continued to reinvest in many areas of the business to support the Portfolios.

The Trustees considered that the unified fee has provided inherent economies of scale because a Portfolio maintains competitive fixed fees over the annual contract period even if the particular Portfolio’s assets decline and/or operating costs rise. The Trustees further considered that, in contrast, breakpoints may be a proxy for charging higher fees on lower asset levels and that when a fund’s assets decline, breakpoints may reverse, which causes expense ratios to increase. The Trustees also considered that, unlike the Portfolios’ unified fee structure, funds with “pass through” administrative fee structures may experience increased expense ratios when fixed dollar fees are charged against declining fund assets. The Trustees also considered that the unified fee protects shareholders from a rise in operating costs that may result from, among other things, PIMCO’s investments in various business enhancements and infrastructure, including those referenced above. The Trustees noted that PIMCO’s investments in these areas are extensive.

ANNUAL REPORT DECEMBER 31, 2018 57

Approval of Investment Advisory Contract and Other Agreements (Cont.)

(Unaudited)

The Board concluded that the Portfolios’ cost structures were reasonable and that PIMCO is appropriately sharing economies of scale, if any, through the Portfolios’ unified fee structure, generally pricing Portfolios to scale at inception and reinvesting in its business to provide enhanced and expanded services to the Portfolios and their shareholders.

6. ANCILLARY BENEFITS

The Board considered other benefits realized by PIMCO and its affiliates as a result of PIMCO’s relationship with the Trust. Such benefits may include possible ancillary benefits to PIMCO’s institutional investment management business due to the reputation and market penetration of the Trust or third party service providers’ relationship-level fee concessions, which decrease fees paid by PIMCO. The Board also considered that affiliates of PIMCO provide distribution and/or shareholder services to the Portfolios and their shareholders, for which they may be compensated through distribution and servicing fees paid pursuant to the Portfolios’ Rule 12b-1 plans or otherwise. The Board reviewed PIMCO’s soft dollar policies and procedures, noting that while PIMCO has the authority to receive the benefit of research provided by broker-dealers executing portfolio transactions on behalf of the Portfolios, it has adopted a policy not to enter into contractual soft dollar arrangements.

7. CONCLUSIONS

Based on their review, including their comprehensive consideration and evaluation of each of the broad factors and information summarized above, the Independent Trustees and the Board as a whole concluded that the nature, extent and quality of the services rendered to the Portfolios by PIMCO and Research Affiliates supported the renewal of the Agreements and the Asset Allocation Agreement. The Independent Trustees and the Board as a whole concluded that the Agreements and the Asset Allocation Agreement continued to be fair and reasonable to the Portfolios and their shareholders, that the Portfolios’ shareholders received reasonable value in return for the fees paid to PIMCO by the Portfolios under the Agreements and the fees paid to Research Affiliates by PIMCO under the Asset Allocation Agreement, and that the renewal of the Agreements and the Asset Allocation Agreement was in the best interests of the Portfolios and their shareholders.

58 PIMCO VARIABLE INSURANCE TRUST

General Information

Investment Adviser and Administrator

Pacific Investment Management Company LLC

650 Newport Center Drive

Newport Beach, CA 92660

Distributor

PIMCO Investments LLC

1633 Broadway

New York, NY 10019

Custodian

State Street Bank and Trust Company

801 Pennsylvania Avenue

Kansas City, MO 64105

Transfer Agent

DST Asset Manager Solutions, Inc.

430 W 7th Street STE 219024

Kansas City, MO 64105-1407

Legal Counsel

Dechert LLP

1900 K Street, N.W.

Washington, D.C. 20006

Independent Registered Public Accounting Firm

PricewaterhouseCoopers LLP

1100 Walnut Street, Suite 1300

Kansas City, MO 64106

This report is submitted for the general information of the shareholders of the Portfolio listed on the Report cover.

pimco.com/pvit

PVIT16AR_123118

PIMCO VARIABLE INSURANCE TRUST

Annual Report

December 31, 2018

PIMCO Short-Term Portfolio

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, you may not be receiving paper copies of the Portfolio’s shareholder reports from the insurance company that offers your contract unless you specifically request paper copies from the insurance company or from your financial intermediary. Instead, the shareholder reports will be made available on a website, and the insurance company will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the insurance company electronically by following the instructions provided by the insurance company.

You may elect to receive all future reports in paper free of charge from the insurance company. You should contact the insurance company if you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all portfolio companies available under your contract at the insurance company.

Table of Contents

	Page
Chairman’s Letter		2
Important Information About the PIMCO Short-Term Portfolio		4
Portfolio Summary		6
Expense Example		7
Financial Highlights		8
Statement of Assets and Liabilities		10
Statement of Operations		11
Statements of Changes in Net Assets		12
Schedule of Investments		13
Notes to Financial Statements		24
Report of Independent Registered Public Accounting Firm		42
Glossary		43
Federal Income Tax Information		44
Management of the Trust		45
Privacy Policy		47
Approval of Investment Advisory Contract and Other Agreements		48

This material is authorized for use only when preceded or accompanied by the current PIMCO Variable Insurance Trust (the “Trust”) prospectus for the Portfolio. (The variable product prospectus may be obtained by contacting your Investment Consultant.)

Chairman’s Letter

Dear PIMCO Variable Insurance Trust Shareholder,

Following this letter is the PIMCO Variable Insurance Trust Annual Report, which covers the 12-month reporting period ended December 31, 2018. On the subsequent pages you will find specific details regarding investment results and discussion of the factors that most affected performance during the reporting period.

For the 12-month reporting period ended December 31, 2018

The U.S. economy continued to expand during the reporting period. Looking back, U.S. gross domestic product (“GDP”) grew at an annual pace of 2.2% during the first quarter of 2018. During the second quarter of 2018, GDP growth rose to an annual pace of 4.2%, the strongest since the third quarter of 2014. GDP then expanded at an annual pace of 3.4% during the third quarter of the year. Finally, the Commerce Department’s initial reading for fourth-quarter 2018 GDP has been delayed due to the partial government shutdown.

The Federal Reserve (the “Fed”) continued to normalize monetary policy during the reporting period. During its meetings that concluded in March, June, September and December 2018, the Fed raised the federal funds rate in 0.25% increments. The Fed’s December rate hike pushed the federal funds rate to a range between 2.25% and 2.50%. In addition, the Fed continued to reduce its balance sheet during the reporting period.

Economic activity outside the U.S. initially accelerated during the reporting period, but moderated as it progressed. Against this backdrop, the European Central Bank (the “ECB”) and the Bank of Japan largely maintained their highly accommodative monetary policies, while other central banks took a more hawkish stance. The Bank of England raised rates at its meeting in August 2018 and the Bank of Canada raised rates twice during the reporting period. Meanwhile, the ECB ended its quantitative easing program in December 2018, but indicated that it does not expect to raise interest rates “at least through the summer of 2019.”

The U.S. Treasury yield curve flattened during the reporting period as short-term rates moved up more than longer-term rates. In our view, the increase in rates at the short end of the yield curve was mostly due to Fed interest rate increases. The yield on the benchmark 10-year U.S. Treasury note was 2.69% at the end of the reporting period, up from 2.40% on December 31, 2017. U.S. Treasuries, as measured by the Bloomberg Barclays U.S. Treasury Index, returned 0.86% over the 12 months ended December 31, 2018. Meanwhile, the Bloomberg Barclays U.S. Aggregate Bond Index, a widely used index of U.S. investment grade bonds, returned 0.01% over the period. Riskier fixed income asset classes, including high yield corporate bonds and emerging market debt, generated weak results versus the broad U.S. market. The ICE BofAML U.S. High Yield Index returned -2.27% over the reporting period, whereas emerging market external debt, as represented by the JPMorgan Emerging Markets Bond Index (EMBI) Global, returned -4.61% over the reporting period. Emerging market local bonds, as represented by the JPMorgan Government Bond Index-Emerging Markets Global Diversified Index (Unhedged), returned -6.21% over the period.

Global equities produced poor results during the reporting period. U.S. equities moved sharply higher over the first nine months of the period. We believe this rally was driven by a number of factors, including corporate profits that often exceeded expectations. However, U.S. equities fell sharply during the fourth quarter of 2018. We believe this was triggered by a number of factors, including signs of moderating global growth, concerns over future Fed rate hikes, the ongoing trade dispute between the U.S. and China and the partial U.S. government shutdown. All told, U.S. equities, as represented by the S&P 500 Index, returned -4.38% during the reporting period. Elsewhere, emerging market equities, as measured by the MSCI Emerging Markets Index, returned -14.58% during the reporting period, whereas global equities, as represented by the MSCI World Index, returned -8.71%. Elsewhere, Japanese equities, as represented by the Nikkei 225 Index (in JPY), returned -10.39% during the reporting period and European equities, as represented by the MSCI Europe Index (in EUR), returned -10.57%.

Commodity prices fluctuated and generally declined during the reporting period. When the reporting period began, West Texas crude oil was approximately $65 a barrel, but by the end it was roughly $45 a barrel. This was driven in

2 PIMCO VARIABLE INSURANCE TRUST

part by increased supply and declining global demand. Elsewhere, gold and copper prices also moved lower during the reporting period.

Finally, during the reporting period the foreign exchange markets experienced periods of volatility, due in part to signs of decoupling economic growth and central bank policies, along with a number of geopolitical events. The U.S. dollar produced mixed results against other major currencies during the reporting period. For example, the U.S. dollar appreciated 4.71% and 5.90% versus the euro and the British pound, respectively, whereas the U.S. dollar depreciated 2.66% versus the yen during the reporting period.

Thank you for the assets you have placed with us. We deeply value your trust, and we will continue to work diligently to meet your broad investment needs.

Sincerely,     Brent R. Harris Chairman of the Board,
PIMCO Variable Insurance Trust  

Past performance is no guarantee of future results. Unless otherwise noted, index returns reflect the reinvestment of income distributions and capital gains, if any, but do not reflect fees, brokerage commissions or other expenses of investing. It is not possible to invest directly in an unmanaged index.

ANNUAL REPORT DECEMBER 31, 2018 3

Important Information About the PIMCO Short-Term Portfolio

PIMCO Variable Insurance Trust (the “Trust”) is an open-end management investment company that includes the PIMCO Short-Term Portfolio (the “Portfolio”). The Portfolio is only available as a funding vehicle under variable life insurance policies or variable annuity contracts issued by insurance companies (“Variable Contracts”). Individuals may not purchase shares of the Portfolio directly. Shares of the Portfolio also may be sold to qualified pension and retirement plans outside of the separate account context.

We believe that bond funds have an important role to play in a well-diversified investment portfolio. It is important to note, however, that in an environment where interest rates may trend upward, rising rates would negatively impact the performance of most bond funds, and fixed income securities and other instruments held by the portfolio are likely to decrease in value. A wide variety of factors can cause interest rates to rise (e.g., central bank monetary policies, inflation rates, general economic conditions, etc.). In addition, changes in interest rates can be sudden and unpredictable, and there is no guarantee that management will anticipate such movement accurately. The Portfolio may lose money as a result of movements in interest rates.

As of the date of this report, interest rates in the U.S. and many parts of the world, including certain European countries, are at or near historically low levels. Thus, the Portfolio currently faces a heightened level of interest rate risk, especially since the Fed has ended its quantitative easing program and has begun, and may continue, to raise interest rates. To the extent the Fed continues to raise interest rates, there is a risk that rates across the financial system may rise. Further, while bond markets have steadily grown over the past three decades, dealer inventories of corporate bonds are near historic lows in relation to market size. As a result, there has been a significant reduction in the ability of dealers to “make markets.”

Bond funds and individual bonds with a longer duration (a measure used to determine the sensitivity of a security’s price to changes in interest rates) tend to be more sensitive to changes in interest rates, usually making them more volatile than securities or funds with shorter durations. All of the factors mentioned above, individually or collectively, could lead to increased volatility and/or lower liquidity in the fixed income markets or negatively impact the Portfolio’s performance or cause the Portfolio to incur losses. As a result, the Portfolio may experience

increased shareholder redemptions, which, among other things, could further reduce the net assets of the Portfolio.

The Portfolio may be subject to various risks as described in the Portfolio’s prospectus and in the Principal Risks in the Notes to Financial Statements.

The geographical classification of foreign (non-U.S.) securities in this report are classified by the country of incorporation of a holding. In certain instances, a security’s country of incorporation may be different from its country of economic exposure.

The United States presidential administration’s enforcement of tariffs on goods from other countries, with a focus on China, has contributed to international trade tensions and may impact portfolio securities.

The United Kingdom’s decision to leave the European Union may impact Portfolio returns. This decision may cause substantial volatility in foreign exchange markets, lead to weakness in the exchange rate of the British pound, result in a sustained period of market uncertainty, and destabilize some or all of the other European Union member countries and/or the Eurozone.

On the Portfolio Summary page in this Shareholder Report, the Average Annual Total Return table and Cumulative Returns chart measure performance assuming that any dividend and capital gain distributions were reinvested. The Cumulative Returns chart reflects only Administrative Class performance. Performance may vary by share class based on each class’s expense ratios. The Portfolio measures its performance against at least one broad-based securities market index (“benchmark index”). The benchmark index does not take into account fees, expenses, or taxes. The Portfolio’s past performance, before and after taxes, is not necessarily an indication of how the Portfolio will perform in the future. There is no assurance that the Portfolio, even if the Portfolio has experienced high or unusual performance for one or more periods, will experience similar levels of performance in the future. High performance is defined as a significant increase in either 1) the Portfolio’s total return in excess of that of the Portfolio’s benchmark between reporting periods or 2) the Portfolio’s total return in excess of the Portfolio’s historical returns between reporting periods. Unusual performance is defined as a significant change in the Portfolio’s performance as compared to one or more previous reporting periods.

The following table discloses the inception dates of the Portfolio and its respective share classes along with the Portfolio’s diversification status as of period end:

Portfolio Name	Portfolio Inception		Institutional Class		Administrative Class		Advisor Class		Diversification Status
PIMCO Short-Term Portfolio		09/30/99		04/28/00		09/30/99		09/30/09		Diversified

4 PIMCO VARIABLE INSURANCE TRUST

An investment in the Portfolio is not a bank deposit and is not guaranteed or insured by the Federal Deposit Insurance Corporation (“FDIC”) or any other government agency. It is possible to lose money on investments in the Portfolio.

The Trustees are responsible generally for overseeing the management of the Trust. The Trustees authorize the Trust to enter into service agreements with the Adviser, the Distributor, the Administrator and other service providers in order to provide, and in some cases authorize service providers to procure through other parties, necessary or desirable services on behalf of the Trust and the Portfolio. Shareholders are not parties to or third-party beneficiaries of such service agreements. Neither this Portfolio’s prospectus nor summary prospectus, the Trust’s Statement of Additional Information (“SAI”), any contracts filed as exhibits to the Trust’s registration statement, nor any other communications, disclosure documents or regulatory filings (including this report) from or on behalf of the Trust or the Portfolio creates a contract between or among any shareholder of the Portfolio, on the one hand, and the Trust, the Portfolio, a service provider to the Trust or the Portfolio, and/or the Trustees or officers of the Trust, on the other hand. The Trustees (or the Trust and its officers, service providers or other delegates acting under authority of the Trustees) may amend the most recent prospectus or use a new prospectus, summary prospectus or SAI with respect to the Portfolio or the Trust, and/or amend, file and/or issue any other communications, disclosure documents or regulatory filings, and may amend or enter into any contracts to which the Trust or the Portfolio is a party, and interpret the investment objective(s), policies, restrictions and contractual provisions applicable to the Portfolio, without shareholder input or approval, except in circumstances in which shareholder approval is specifically required by law (such as changes to fundamental investment policies) or where a shareholder approval requirement is specifically disclosed in the Trust’s then-current prospectus or SAI.

PIMCO has adopted written proxy voting policies and procedures (“Proxy Policy”) as required by Rule 206(4)-6 under the Investment Advisers Act of 1940, as amended. The Proxy Policy has been adopted by the Trust as the policies and procedures that PIMCO will use when voting proxies on behalf of the Portfolio. A description of the policies and procedures that PIMCO uses to vote proxies relating to portfolio securities of the Portfolio, and information about how the Portfolio voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, are available without charge, upon request, by calling the Trust at (888) 87-PIMCO, on the Portfolio’s website at www.pimco.com/pvit, and on the Securities and Exchange Commission’s (“SEC”) website at www.sec.gov.

The Trust files a complete schedule of the Portfolio’s holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. A copy of the Portfolio’s Form N-Q is available on the SEC’s website at www.sec.gov. A copy of the Portfolio’s Form N-Q is also available without charge, upon request, by calling the Trust at (888) 87-PIMCO and on the Portfolio’s website at www.pimco.com/pvit.

The SEC adopted a rule that, beginning in 2021, generally will allow shareholder reports to be delivered to investors by providing access to such reports online free of charge and by mailing a notice that the report is electronically available. Pursuant to the rule, investors may still elect to receive a complete shareholder report in the mail. Instructions for electing to receive paper copies of the Portfolio’s shareholder reports going forward may be found on the front cover of this report.

The SEC adopted amendments to certain disclosure requirements relating to open-end investment companies’ liquidity risk management programs. Effective December 1, 2019, large fund complexes will be required to include in their shareholder reports a discussion of their liquidity risk management programs’ operations over the past year.

ANNUAL REPORT DECEMBER 31, 2018 5

PIMCO Short-Term Portfolio

Cumulative Returns Through December 31, 2018

$10,000 invested at the end of the month when the Portfolio’s Administrative Class commenced operations.

Allocation Breakdown as of 12/31/2018^†§

Corporate Bonds & Notes	67.2%
Asset-Backed Securities	11.9%
U.S. Government Agencies	7.6%
Non-Agency Mortgage-Backed Securities	4.8%
U.S. Treasury Obligations	4.6%
Short-Term Instruments‡	1.5%
Sovereign Issues	1.4%
Other	1.0%

^†  % of Investments, at value.

^§  Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.

^‡  Includes Central Funds Used for Cash Management Purposes.

Average Annual Total Return for the period ended December 31, 2018
		1 Year		5 Years		10 Years		Inception≈
	PIMCO Short-Term Portfolio Institutional Class		1.68%		1.77%		2.32%		2.82%
	PIMCO Short-Term Portfolio Administrative Class		1.53%		1.62%		2.17%		2.75%
	PIMCO Short-Term Portfolio Advisor Class		1.43%		1.51%		—		1.47%
	FTSE 3-Month Treasury Bill Index± ª		1.86%		0.60%		0.35%		1.70%	¨

All Portfolio returns are net of fees and expenses.

^≈ For class inception dates please refer to the Important Information.

^¨ Average annual total return since 09/30/1999.

^± FTSE 3-Month Treasury Bill Index is an unmanaged index representing monthly return equivalents of yield averages of the last 3 month Treasury Bill issues.

^ª As of November, 2017, Citi’s fixed income indices were rebranded in connection with the London Stock Exchange Group’s acquisition of the Citi fixed income index business. After July 31, 2018, “Citi” was replaced in the indices’ names with “FTSE”. This change does not impact the manner in which the indices are constructed.

It is not possible to invest directly in an unmanaged index.

Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. The Portfolio’s performance does not reflect the deduction of additional charges and expenses imposed in connection with investing in Variable Contracts, which will reduce returns. Differences in the Portfolio’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the prices of individual positions (which may be sourced from different pricing vendors or other sources) used by the Portfolio and the index. For performance current to the most recent month-end, visit www.pimco.com/pvit or via (888) 87-PIMCO.

The Portfolio’s total annual operating expense ratio in effect as of period end were 0.60% for Institutional Class shares, 0.75% for Administrative Class shares, and 0.85% for Advisor Class shares. Details regarding any changes to the Portfolio’s operating expenses, subsequent to period end, can be found in the Portfolio’s current prospectus, as supplemented.

Investment Objective and Strategy Overview

PIMCO Short-Term Portfolio seeks maximum current income, consistent with preservation of capital and daily liquidity, by investing under normal circumstances at least 65% of its total assets in a diversified portfolio of Fixed Income Instruments of varying maturities, which may be represented by forwards or derivatives such as options, futures contracts or swap agreements. “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. Portfolio strategies may change from time to time. Please refer to the Portfolio’s current prospectus for more information regarding the Portfolio’s strategy.

Portfolio Insights

The following affected performance during the reporting period:

» Holdings of investment-grade corporate credit detracted from performance, as these securities generally posted negative total return.

» Long exposure to the British pound versus the U.S. dollar detracted from performance, as the pound appreciated versus the U.S. dollar.

» Overweight exposure to U.S. Treasury Inflation-Protected Securities detracted from performance, as these securities generally posted negative total returns.

» Overweight exposure to front-end Canadian duration contributed to performance, as front-end Canadian interest rates fell.

» Long U.S. dollar positions versus the euro contributed to performance, as the euro depreciated versus the U.S. dollar.

6 PIMCO VARIABLE INSURANCE TRUST

Expense Example PIMCO Short-Term Portfolio

Example

As a shareholder of the Portfolio, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees (if applicable), and other Portfolio expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in the Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds.

The Expense Example does not reflect any fees or other expenses imposed by the Variable Contracts. If it did, the expenses reflected in the Expense Example would be higher. The Example is based on an investment of $1,000 invested at the beginning of the period and held from July 1, 2018 to December 31, 2018 unless noted otherwise in the table and footnotes below.

Actual Expenses

The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60), then multiply the result by the number in the appropriate row for your share class, in the column titled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other portfolios. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other portfolios.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information under the heading “Hypothetical (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different portfolios. In addition, if these transactional costs were included, your costs would have been higher.

Expense ratios may vary period to period because of various factors, such as an increase in expenses that are not covered by the management fees such as fees and expenses of the independent trustees and their counsel, extraordinary expenses and interest expense.

	Actual						Hypothetical (5% return before expenses)
	Beginning Account Value (07/01/18)		Ending Account Value (12/31/18)		Expenses Paid During Period*		Beginning Account Value (07/01/18)		Ending Account Value (12/31/18)		Expenses Paid During Period*		Net Annualized Expense Ratio**
Institutional Class	$	1,000.00	$	1,006.20	$	2.63	$	1,000.00	$	1,022.58	$	2.65		0.52	%
Administrative Class		1,000.00		1,005.40		3.39		1,000.00		1,021.83		3.41		0.67
Advisor Class		1,000.00		1,004.90		3.89		1,000.00		1,021.32		3.92		0.77

* Expenses Paid During Period are equal to the net annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Overall fees and expenses of investing in the Portfolio will be higher because the example does not reflect variable contract fees and expenses.

** Net Annualized Expense Ratio is reflective of any applicable contractual fee waivers and/or expense reimbursements or voluntary fee waivers. Details regarding fee waivers, if any, can be found in Note 9, Fees and Expenses, in the Notes to Financial Statements.

ANNUAL REPORT DECEMBER 31, 2018 7

Financial Highlights PIMCO Short-Term Portfolio

			Investment Operations							Less Distributions(b)
Selected Per Share Data for the Year Ended^:	Net Asset Value Beginning of Year		Net Investment Income (Loss)(a)		Net Realized/ Unrealized Gain (Loss)			Total		From Net Investment Income			From Net Realized Capital Gain			Total			Net Asset Value End of Year
Institutional Class
12/31/2018	$	10.37	$	0.26	$	(0.09	)	$	0.17	$	(0.24	)	$	(0.01	)	$	(0.25	)	$	10.29
12/31/2017		10.30		0.21		0.05			0.26		(0.19	)		0.00			(0.19	)		10.37
12/31/2016		10.27		0.17		0.09			0.26		(0.18	)		(0.05	)		(0.23	)		10.30
12/31/2015		10.26		0.11		0.02			0.13		(0.11	)		(0.01	)		(0.12	)		10.27
12/31/2014		10.27		0.08		0.01			0.09		(0.09	)		(0.01	)		(0.10	)		10.26
Administrative Class
12/31/2018		10.37		0.24		(0.08	)		0.16		(0.23	)		(0.01	)		(0.24	)		10.29
12/31/2017		10.30		0.19		0.06			0.25		(0.18	)		0.00			(0.18	)		10.37
12/31/2016		10.27		0.15		0.09			0.24		(0.16	)		(0.05	)		(0.21	)		10.30
12/31/2015		10.26		0.09		0.03			0.12		(0.10	)		(0.01	)		(0.11	)		10.27
12/31/2014		10.27		0.06		0.01			0.07		(0.07	)		(0.01	)		(0.08	)		10.26
Advisor Class
12/31/2018		10.37		0.23		(0.09	)		0.14		(0.21	)		(0.01	)		(0.22	)		10.29
12/31/2017		10.30		0.18		0.06			0.24		(0.17	)		0.00			(0.17	)		10.37
12/31/2016		10.27		0.14		0.09			0.23		(0.15	)		(0.05	)		(0.20	)		10.30
12/31/2015		10.26		0.08		0.03			0.11		(0.09	)		(0.01	)		(0.10	)		10.27
12/31/2014		10.27		0.05		0.01			0.06		(0.06	)		(0.01	)		(0.07	)		10.26

^ A zero balance may reflect actual amounts rounding to less than $0.01 or 0.01%.

^(a)  Per share amounts based on average number of shares outstanding during the year.

^(b)  The tax characterization of distributions is determined in accordance with Federal income tax regulations. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

8 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

			Ratios/Supplemental Data
					Ratios to Average Net Assets
Total Return			Net Assets End of Year (000s)		Expenses			Expenses Excluding Waivers			Expenses Excluding Interest Expense			Expenses Excluding Interest Expense and Waivers			Net Investment Income (Loss)			Portfolio Turnover Rate
	1.68	%	$	8,352		0.51	%		0.51	%		0.45	%		0.45	%		2.47	%		71	%
	2.55			6,492		0.60			0.60			0.45			0.45			2.04			161
	2.52			6,534		0.48			0.48			0.45			0.45			1.66			862
	1.26			5,872		0.47			0.47			0.45			0.45			1.04			756
	0.86			6,217		0.46			0.46			0.45			0.45			0.76			328
	1.53			233,601		0.66			0.66			0.60			0.60			2.34			71
	2.40			140,075		0.75			0.75			0.60			0.60			1.88			161
	2.37			136,266		0.63			0.63			0.60			0.60			1.50			862
	1.11			139,039		0.62			0.62			0.60			0.60			0.91			756
	0.71			108,802		0.61			0.61			0.60			0.60			0.61			328
	1.43			189,730		0.76			0.76			0.70			0.70			2.22			71
	2.30			153,735		0.85			0.85			0.70			0.70			1.79			161
	2.27			135,645		0.73			0.73			0.70			0.70			1.40			862
	1.01			125,889		0.72			0.72			0.70			0.70			0.80			756
	0.61			111,808		0.71			0.71			0.70			0.70			0.51			328

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 9

Statement of Assets and Liabilities PIMCO Short-Term Portfolio

(Amounts in thousands†, except per share amounts)	December 31, 2018
Assets:
Investments, at value
Investments in securities*	$	455,085
Investments in Affiliates		2,155
Financial Derivative Instruments
Exchange-traded or centrally cleared		231
Over the counter		286
Cash		19
Deposits with counterparty		3,343
Foreign currency, at value		693
Receivable for investments sold		16
Receivable for Portfolio shares sold		2,019
Interest and/or dividends receivable		2,723
Dividends receivable from Affiliates		6
Total Assets		466,576
Liabilities:
Borrowings & Other Financing Transactions
Payable for reverse repurchase agreements	$	32,461
Financial Derivative Instruments
Exchange-traded or centrally cleared		586
Over the counter		620
Payable for investments in Affiliates purchased		6
Deposits from counterparty		110
Payable for Portfolio shares redeemed		874
Accrued investment advisory fees		88
Accrued supervisory and administrative fees		70
Accrued distribution fees		39
Accrued servicing fees		29
Other liabilities		10
Total Liabilities		34,893
Net Assets	$	431,683
Net Assets Consist of:
Paid in capital	$	432,159
Distributable earnings (accumulated loss)		(476	)
Net Assets	$	431,683
Net Assets:
Institutional Class	$	8,352
Administrative Class		233,601
Advisor Class		189,730
Shares Issued and Outstanding:
Institutional Class		812
Administrative Class		22,713
Advisor Class		18,447
Net Asset Value Per Share Outstanding:
Institutional Class	$	10.29
Administrative Class		10.29
Advisor Class		10.29
Cost of investments in securities	$	457,351
Cost of investments in Affiliates	$	2,155
Cost of foreign currency held	$	706
Cost or premiums of financial derivative instruments, net	$	(785	)
* Includes repurchase agreements of:	$	567

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

10 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

Statement of Operations PIMCO Short-Term Portfolio

(Amounts in thousands†)	Year Ended December 31, 2018
Investment Income:
Interest, net of foreign taxes*	$	10,695
Dividends		27
Dividends from Investments in Affiliates		139
Total Income		10,861
Expenses:
Investment advisory fees		907
Supervisory and administrative fees		726
Servicing fees - Administrative Class		281
Distribution and/or servicing fees - Advisor Class		420
Trustee fees		10
Interest expense		201
Total Expenses		2,545
Net Investment Income (Loss)		8,316
Net Realized Gain (Loss):
Investments in securities		227
Investments in Affiliates		4
Exchange-traded or centrally cleared financial derivative instruments		(77	)
Over the counter financial derivative instruments		220
Short sales		66
Foreign currency		254
Net Realized Gain (Loss)		694
Net Change in Unrealized Appreciation (Depreciation):
Investments in securities		(3,335	)
Investments in Affiliates		(1	)
Exchange-traded or centrally cleared financial derivative instruments		(1,273	)
Over the counter financial derivative instruments		67
Short sales		20
Foreign currency assets and liabilities		18
Net Change in Unrealized Appreciation (Depreciation)		(4,504	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	4,506
* Foreign tax withholdings	$	11

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 11

Statements of Changes in Net Assets PIMCO Short-Term Portfolio

(Amounts in thousands†)	Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets from:
Operations:
Net investment income (loss)	$	8,316		$	5,241
Net realized gain (loss)		694			1,464
Net change in unrealized appreciation (depreciation)		(4,504	)		(53	)
Net Increase (Decrease) in Net Assets Resulting from Operations		4,506			6,652
Distributions to Shareholders:
From net investment income and/or net realized capital gains*
Institutional Class		(176	)		(129	)
Administrative Class		(4,429	)		(2,307	)
Advisor Class		(3,738	)		(2,297	)
Total Distributions(a)		(8,343	)		(4,733	)
Portfolio Share Transactions:
Net increase (decrease) resulting from Portfolio share transactions**		135,218			19,938
Total Increase (Decrease) in Net Assets		131,381			21,857
Net Assets:
Beginning of year		300,302			278,445
End of year	$	431,683		$	300,302

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

* See Note 2, New Accounting Pronouncements, in the Notes to Financial Statements for more information.

** See Note 13, Shares of Beneficial Interest, in the Notes to Financial Statements.

^(a)  The tax characterization of distributions is determined in accordance with Federal income tax regulations. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

12 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

Schedule of Investments PIMCO Short-Term Portfolio

December 31, 2018

(Amounts in thousands*, except number of shares, contracts and units, if any)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
INVESTMENTS IN SECURITIES 105.4%
LOAN PARTICIPATIONS AND ASSIGNMENTS 0.5%
Las Vegas Sands LLC
4.272% due 03/27/2025	$		389	$		372
Toyota Motor Credit Corp.
3.393% due 09/28/2020 «			2,000			1,996
Total Loan Participations and Assignments (Cost $2,381)						2,368
CORPORATE BONDS & NOTES 71.2%
BANKING & FINANCE 34.0%
ADCB Finance Cayman Ltd.
2.625% due 03/10/2020			400			394
2.750% due 09/16/2019			400			398
AerCap Ireland Capital DAC
3.750% due 05/15/2019			800			800
4.625% due 10/30/2020			200			201
AIA Group Ltd.
3.312% (US0003M + 0.520%) due 09/20/2021 ~			800			797
AIG Global Funding
3.277% (US0003M + 0.480%) due 07/02/2020 ~			500			500
Air Lease Corp.
2.125% due 01/15/2020			300			296
2.750% due 01/15/2023			700			663
3.375% due 01/15/2019			600			600
3.500% due 01/15/2022			400			394
4.750% due 03/01/2020			200			203
Aircastle Ltd.
7.625% due 04/15/2020			500			523
Allstate Corp.
3.233% (US0003M + 0.430%) due 03/29/2021 ~			200			198
Ally Financial, Inc.
3.500% due 01/27/2019			300			300
4.125% due 03/30/2020			800			794
American Tower Corp.
2.800% due 06/01/2020			500			496
3.400% due 02/15/2019			500			500
Aozora Bank Ltd.
2.750% due 03/09/2020			1,200			1,191
Assurant, Inc.
4.072% (US0003M + 1.250%) due 03/26/2021 ~			800			800
Athene Global Funding
4.038% (US0003M + 1.230%) due 07/01/2022 ~(f)			3,500			3,517
AvalonBay Communities, Inc.
2.866% (US0003M + 0.430%) due 01/15/2021 ~			300			298
Aviation Capital Group LLC
3.190% (US0003M + 0.670%) due 07/30/2021 ~			1,000			993
3.688% (US0003M + 0.950%) due 06/01/2021 ~			200			200
Axis Bank Ltd.
3.250% due 05/21/2020			200			198
Bangkok Bank PCL
4.800% due 10/18/2020			400			409
Barclays PLC
2.750% due 11/08/2019			3,100			3,080
4.009% (US0003M + 1.380%) due 05/16/2024 ~			300			286
BOC Aviation Ltd.
2.375% due 09/15/2021			700			675
2.750% due 09/18/2022			900			867
3.000% due 03/30/2020			200			199
3.609% (US0003M + 1.050%) due 05/02/2021 ~(f)			1,700			1,708
Brixmor Operating Partnership LP
3.591% (US0003M + 1.050%) due 02/01/2022 ~			600			598

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Cantor Fitzgerald LP
7.875% due 10/15/2019	$		400	$		412
Citibank N.A.
3.061% (US0003M + 0.260%) due 09/18/2019 ~			1,000			999
Citigroup, Inc.
3.761% (US0003M + 1.023%) due 06/01/2024 ~			200			196
4.183% (US0003M + 1.380%) due 03/30/2021 ~			1,600			1,611
CNH Industrial Capital LLC
3.375% due 07/15/2019			1,500			1,489
Cooperatieve Rabobank UA
2.894% (US0003M + 0.480%) due 01/10/2023 ~			500			492
Credit Suisse Group Funding Guernsey Ltd.
4.735% (US0003M + 2.290%) due 04/16/2021 ~			2,000			2,057
Danske Bank A/S
1.650% due 09/06/2019			250			246
3.836% (US0003M + 1.060%) due 09/12/2023 ~			400			385
DBS Group Holdings Ltd.
3.257% (US0003M + 0.490%) due 06/08/2020 ~			500			500
Dexia Credit Local S.A.
2.250% due 02/18/2020			1,000			994
2.500% due 01/25/2021			500			497
Eksportfinans ASA
3.418% (US0003M + 0.800%) due 11/10/2020 ~			1,000			1,001
Emirates NBD PJSC
4.059% (US0003M + 1.550%) due 01/26/2020 ~			300			303
Erste Abwicklungsanstalt
2.977% (US0003M + 0.210%) due 03/09/2020 ~			800			802
Ford Motor Credit Co. LLC
2.021% due 05/03/2019			2,500			2,490
2.262% due 03/28/2019			1,000			997
2.343% due 11/02/2020			1,000			962
2.597% due 11/04/2019			500			495
2.989% (US0003M + 0.430%) due 11/02/2020 ~			300			292
3.448% due 08/12/2019 •			500			498
3.754% (US0003M + 0.930%) due 09/24/2020 ~			500			491
General Motors Financial Co., Inc.
2.350% due 10/04/2019			800			793
2.650% due 04/13/2020			400			394
3.150% due 01/15/2020			500			497
3.258% (US0003M + 0.850%) due 04/09/2021 ~			1,400			1,369
3.366% (US0003M + 0.930%) due 04/13/2020 ~			1,000			994
3.692% (US0003M + 1.100%) due 11/06/2021 ~			500			487
Goldman Sachs Group, Inc.
3.786% (US0003M + 1.170%) due 11/15/2021 ~(f)			1,300			1,297
Goodman U.S. Finance Two LLC
6.000% due 03/22/2022			500			532
Harley-Davidson Financial Services, Inc.
3.146% (US0003M + 0.500%) due 05/21/2020 ~			300			300
3.647% (US0003M + 0.940%) due 03/02/2021 ~			1,100			1,099
HSBC Holdings PLC
3.426% (US0003M + 0.650%) due 09/11/2021 ~			3,000			2,961
3.640% (US0003M + 1.000%) due 05/18/2024 ~			1,500			1,462
Hutchison Whampoa International Ltd.
7.625% due 04/09/2019			2,000			2,025
ICICI Bank Ltd.
3.125% due 08/12/2020			300			296
4.800% due 05/22/2019			1,700			1,707

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Indian Railway Finance Corp. Ltd.
3.917% due 02/26/2019	$		750	$		750
International Lease Finance Corp.
5.875% due 04/01/2019			900			904
6.250% due 05/15/2019			1,500			1,513
8.250% due 12/15/2020			1,100			1,184
Intesa Sanpaolo SpA
3.875% due 01/15/2019			1,500			1,500
JPMorgan Chase & Co.
3.411% (US0003M + 0.610%) due 06/18/2022 ~			1,400			1,385
Kasikornbank PCL
3.500% due 10/25/2019			500			501
LeasePlan Corp. NV
2.875% due 01/22/2019			1,300			1,300
Lincoln Finance Ltd.
6.875% due 04/15/2021	EUR		500			587
Lloyds Bank PLC
3.079% (US0003M + 0.490%) due 05/07/2021 ~	$		1,000			990
Lloyds Banking Group PLC
2.907% due 11/07/2023 •			500			473
3.590% (US0003M + 0.800%) due 06/21/2021 ~			400			396
7.000% due 06/27/2019 •(b)(c)	GBP		250			319
Macquarie Group Ltd.
4.172% (US0003M + 1.350%) due 03/27/2024 ~	$		1,800			1,763
7.625% due 08/13/2019			2,700			2,770
Mitsubishi UFJ Financial Group, Inc.
3.280% (US0003M + 0.790%) due 07/25/2022 ~			2,700			2,670
3.839% (US0003M + 1.060%) due 09/13/2021 ~			375			376
Mitsubishi UFJ Lease & Finance Co. Ltd.
2.250% due 09/07/2021			500			480
2.500% due 03/09/2020			1,000			990
3.252% (US0003M + 0.775%) due 07/23/2019 ~			900			901
Mitsubishi UFJ Trust & Banking Corp.
2.450% due 10/16/2019			1,000			994
Mizuho Bank Ltd.
2.650% due 09/25/2019			1,000			997
Mizuho Financial Group, Inc.
3.651% (US0003M + 0.880%) due 09/11/2022 ~			1,750			1,739
3.905% (US0003M + 1.480%) due 04/12/2021 ~			1,400			1,417
Morgan Stanley
3.168% (US0003M + 0.550%) due 02/10/2021 ~			2,300			2,275
3.414% (US0003M + 0.800%) due 02/14/2020 ~			800			800
5.500% due 01/26/2020			1,000			1,023
MUFG Bank Ltd.
2.350% due 09/08/2019			550			547
Nasdaq, Inc.
3.214% (US0003M + 0.390%) due 03/22/2019 ~			1,500			1,500
Navient Corp.
4.875% due 06/17/2019			483			481
6.625% due 07/26/2021			300			290
8.000% due 03/25/2020			800			815
Nissan Motor Acceptance Corp.
2.150% due 07/13/2020			500			488
3.086% (US0003M + 0.650%) due 07/13/2022 ~			500			486
3.308% (US0003M + 0.520%) due 03/15/2021 ~			1,000			985
3.326% (US0003M + 0.890%) due 01/13/2022 ~			1,800			1,769
3.503% due 09/28/2022 •			1,100			1,066
Nomura Holdings, Inc.
2.750% due 03/19/2019			800			799
6.700% due 03/04/2020			400			415

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 13

Schedule of Investments PIMCO Short-Term Portfolio (Cont.)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Nordea Bank Abp
3.647% (US0003M + 0.940%) due 08/30/2023 ~	$		1,000	$		990
NTT Finance Corp.
3.333% (US0003M + 0.530%) due 06/29/2020 ~			400			401
OMX Timber Finance Investments LLC
5.420% due 01/29/2020			1,010			1,028
ORIX Corp.
2.650% due 04/13/2021			2,500			2,440
2.900% due 07/18/2022			400			391
Protective Life Global Funding
3.333% (US0003M + 0.520%) due 06/28/2021 ~			500			496
Qatari Diar Finance Co.
5.000% due 07/21/2020			1,300			1,327
QNB Finance Ltd.
3.939% (US0003M + 1.350%) due 02/07/2020 ~			1,000			1,006
4.057% (US0003M + 1.350%) due 05/31/2021 ~			500			504
4.068% (US0003M + 1.450%) due 08/11/2021 ~			600			599
Royal Bank of Scotland Group PLC
4.086% (US0003M + 1.470%) due 05/15/2023 ~			2,900			2,815
6.400% due 10/21/2019			1,350			1,378
Santander Holdings USA, Inc.
4.450% due 12/03/2021			400			407
Santander UK Group Holdings PLC
2.875% due 10/16/2020			1,250			1,231
3.373% due 01/05/2024 •			500			475
Santander UK PLC
2.350% due 09/10/2019			1,500			1,489
3.358% (US0003M + 0.620%) due 06/01/2021 ~			500			495
Siam Commercial Bank PCL
3.500% due 04/07/2019			500			501
Sinochem Overseas Capital Co. Ltd.
4.500% due 11/12/2020			1,000			1,015
SL Green Operating Partnership LP
3.609% (US0003M + 0.980%) due 08/16/2021 ~			500			497
SMBC Aviation Capital Finance DAC
2.650% due 07/15/2021			500			487
3.000% due 07/15/2022			2,000			1,941
Springleaf Finance Corp.
5.250% due 12/15/2019			100			100
Standard Chartered PLC
2.100% due 08/19/2019			3,400			3,371
Starwood Property Trust, Inc.
3.625% due 02/01/2021			300			289
State Bank of India
3.358% (US0003M + 0.950%) due 04/06/2020 ~			1,400			1,402
3.622% due 04/17/2019			600			601
Sumitomo Mitsui Banking Corp.
2.092% due 10/18/2019			500			495
Sumitomo Mitsui Financial Group, Inc.
3.205% (US0003M + 0.780%) due 07/12/2022 ~			500			497
Sumitomo Mitsui Trust Bank Ltd.
2.050% due 10/18/2019			900			892
3.249% (US0003M + 0.510%) due 03/06/2019 ~			2,500			2,501
Svenska Handelsbanken AB
3.159% (US0003M + 0.470%) due 05/24/2021 ~			400			397
Synchrony Financial
2.600% due 01/15/2019			2,300			2,299
3.000% due 08/15/2019			1,500			1,490
3.812% (US0003M + 1.230%) due 02/03/2020 ~			400			400
Toyota Motor Credit Corp.
3.040% due 05/17/2022 •			1,000			989

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
UBS Group Funding Switzerland AG
4.216% due 04/14/2021 •	$		1,550	$		1,575
4.264% (US0003M + 1.440%) due 09/24/2020 ~			750			760
Unibail-Rodamco SE
3.206% (US0003M + 0.770%) due 04/16/2019 ~			1,500			1,503
VEREIT Operating Partnership LP
3.000% due 02/06/2019			2,500			2,499
WEA Finance LLC
2.700% due 09/17/2019			250			249
Wells Fargo Bank N.A.
2.940% (SOFRRATE + 0.480%) due 03/25/2020 ~			4,500			4,480
						146,838
INDUSTRIALS 28.7%
21st Century Fox America, Inc.
6.900% due 03/01/2019			700			704
Alibaba Group Holding Ltd.
2.500% due 11/28/2019			700			696
Alimentation Couche-Tard, Inc.
3.279% (US0003M + 0.500%) due 12/13/2019 ~			300			299
Allergan Funding SCS
3.000% due 03/12/2020			2,000			1,993
Andeavor Logistics LP
5.500% due 10/15/2019			1,000			1,009
Anthem, Inc.
2.250% due 08/15/2019			500			497
Arrow Electronics, Inc.
3.500% due 04/01/2022			600			592
AutoNation, Inc.
5.500% due 02/01/2020			500			511
BAT Capital Corp.
2.297% due 08/14/2020			300			293
3.204% due 08/14/2020 •			300			297
3.496% (US0003M + 0.880%) due 08/15/2022 ~			2,900			2,846
BAT International Finance PLC
1.625% due 09/09/2019			300			296
2.750% due 06/15/2020			500			491
Bayer U.S. Finance LLC
2.125% due 07/15/2019			500			496
2.375% due 10/08/2019			1,000			992
3.452% (US0003M + 0.630%) due 06/25/2021 ~			400			395
3.798% (US0003M + 1.010%) due 12/15/2023 ~			1,000			957
Becton Dickinson and Co.
2.133% due 06/06/2019			1,000			994
BMW U.S. Capital LLC
2.984% (US0003M + 0.370%) due 08/14/2020 ~			500			496
3.118% (US0003M + 0.500%) due 08/13/2021 ~			1,200			1,189
Broadcom Corp.
2.375% due 01/15/2020			3,900			3,852
Cardinal Health, Inc.
3.558% (US0003M + 0.770%) due 06/15/2022 ~			1,400			1,385
Central Nippon Expressway Co. Ltd.
2.079% due 11/05/2019			1,000			991
2.170% due 08/05/2019			600			597
2.381% due 09/17/2020			800			787
3.119% (US0003M + 0.560%) due 11/02/2021 ~			2,000			1,986
3.122% (US0003M + 0.540%) due 08/04/2020 ~			1,000			998
3.548% (US0003M + 0.810%) due 03/03/2022 •			2,500			2,499
3.599% (US0003M + 0.970%) due 02/16/2021 ~			1,000			1,005
Charter Communications Operating LLC
3.579% due 07/23/2020			800			799
4.191% (US0003M + 1.650%) due 02/01/2024 ~			3,400			3,345

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Cigna Corp.
3.326% (US0003M + 0.890%) due 07/15/2023 ~	$		1,000	$		985
3.438% (US0003M + 0.650%) due 09/17/2021 ~(f)			1,000			986
Cigna Holding Co.
5.125% due 06/15/2020			500			513
CNPC General Capital Ltd.
2.750% due 05/14/2019			700			700
Comcast Corp.
3.237% (US0003M + 0.440%) due 10/01/2021 ~			900			892
Conagra Brands, Inc.
3.219% (US0003M + 0.750%) due 10/22/2020 ~			200			199
Constellation Brands, Inc.
3.209% (US0003M + 0.700%) due 11/15/2021 ~			300			297
Continental Airlines Pass-Through Trust
5.500% due 04/29/2022			132			134
6.545% due 08/02/2020			72			72
CVS Health Corp.
3.487% (US0003M + 0.720%) due 03/09/2021 ~			400			397
D.R. Horton, Inc.
3.750% due 03/01/2019			400			400
DAE Funding LLC
4.000% due 08/01/2020			300			293
Daimler Finance North America LLC
2.972% (US0003M + 0.390%) due 05/04/2020 ~			1,500			1,492
3.048% (US0003M + 0.430%) due 02/12/2021 ~			500			495
3.112% (US0003M + 0.530%) due 05/05/2020 ~			2,175			2,168
Dell International LLC
3.480% due 06/01/2019			3,600			3,590
4.420% due 06/15/2021			200			200
Delta Air Lines, Inc.
2.875% due 03/13/2020			1,255			1,247
3.625% due 03/15/2022			250			245
Deutsche Telekom International Finance BV
1.500% due 09/19/2019			800			789
Discovery Communications LLC
2.750% due 11/15/2019			1,000			990
3.502% (US0003M + 0.710%) due 09/20/2019 ~			300			300
Dominion Energy Gas Holdings LLC
3.388% (US0003M + 0.600%) due 06/15/2021 ~(f)			400			399
DXC Technology Co.
3.688% (US0003M + 0.950%) due 03/01/2021 ~			308			308
EMC Corp.
2.650% due 06/01/2020			700			672
Enbridge, Inc.
2.814% (US0003M + 0.400%) due 01/10/2020 ~			1,700			1,695
Encana Corp.
6.500% due 05/15/2019			500			505
Energy Transfer Operating LP
9.000% due 04/15/2019			400			407
9.700% due 03/15/2019			500			506
Enterprise Products Operating LLC
6.500% due 01/31/2019			2,800			2,806
EQT Corp.
8.125% due 06/01/2019			1,800			1,831
Equifax, Inc.
3.486% (US0003M + 0.870%) due 08/15/2021 ~			950			940
Fresenius Medical Care U.S. Finance, Inc.
5.625% due 07/31/2019			1,100			1,113
GATX Corp.
3.302% (US0003M + 0.720%) due 11/05/2021 ~			1,000			990

14 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
General Electric Co.
2.100% due 12/11/2019	$		1,000	$		983
5.000% due 01/21/2021 •(b)			2,500			1,916
General Mills, Inc.
3.459% (US0003M + 1.010%) due 10/17/2023 ~			200			195
6.610% due 10/15/2022			500			528
General Motors Co.
3.389% (US0003M + 0.800%) due 08/07/2020 ~			400			396
Georgia-Pacific LLC
2.539% due 11/15/2019			600			596
Harris Corp.
3.000% (US0003M + 0.480%) due 04/30/2020 ~			1,000			997
3.166% due 02/27/2019 ~			600			600
HCA, Inc.
4.250% due 10/15/2019			900			899
Hewlett Packard Enterprise Co.
2.100% due 10/04/2019			1,300			1,286
3.059% (US0003M + 0.720%) due 10/05/2021 ~			1,000			992
Holcim U.S. Finance SARL & Cie SCS
6.000% due 12/30/2019			500			512
Hyundai Capital America
1.750% due 09/27/2019			1,000			987
2.000% due 07/01/2019			800			795
2.500% due 03/18/2019			300			299
2.550% due 02/06/2019			300			300
3.348% due 07/08/2021 •			400			399
3.596% (US0003M + 0.820%) due 03/12/2021 ~			800			794
3.601% due 09/18/2020 •			600			598
Imperial Brands Finance PLC
2.950% due 07/21/2020			950			936
Incitec Pivot Finance LLC
6.000% due 12/10/2019			1,500			1,533
Interpublic Group of Cos., Inc.
3.500% due 10/01/2020			400			401
Kinder Morgan Energy Partners LP
2.650% due 02/01/2019			300			300
Kinder Morgan, Inc.
3.050% due 12/01/2019			850			845
KLA-Tencor Corp.
3.375% due 11/01/2019			150			150
Kraft Heinz Foods Co.
3.188% (US0003M + 0.570%) due 02/10/2021 ~			1,000			992
Marriott International, Inc.
3.229% (US0003M + 0.600%) due 12/01/2020 ~			1,000			998
Masco Corp.
3.500% due 04/01/2021			200			199
McDonald’s Corp.
2.939% (US0003M + 0.430%) due 10/28/2021 ~			500			497
MGM Resorts International
6.750% due 10/01/2020			400			412
8.625% due 02/01/2019			300			302
Minera y Metalurgica del Boleo SAPI de C.V.
2.875% due 05/07/2019			900			899
Molson Coors Brewing Co.
1.450% due 07/15/2019			1,000			990
Mondelez International Holdings Netherlands BV
1.625% due 10/28/2019			500			493
Mylan NV
2.500% due 06/07/2019			1,547			1,540
3.750% due 12/15/2020			200			200
Pacific National Finance Pty. Ltd.
4.625% due 09/23/2020			300			304
Park Aerospace Holdings Ltd.
3.625% due 03/15/2021			200			193
Penske Truck Leasing Co. LP
3.050% due 01/09/2020			600			597

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Petroleos Mexicanos
8.000% due 05/03/2019	$		500	$		507
Petronas Capital Ltd.
5.250% due 08/12/2019			1,300			1,317
Phillips 66
3.289% (US0003M + 0.600%) due 02/26/2021 ~			500			495
QUALCOMM, Inc.
3.250% (US0003M + 0.730%) due 01/30/2023 ~(f)			200			199
QVC, Inc.
3.125% due 04/01/2019			1,200			1,197
Reckitt Benckiser Treasury Services PLC
3.384% (US0003M + 0.560%) due 06/24/2022 ~(f)			1,300			1,278
RELX Capital, Inc.
8.625% due 01/15/2019			319			320
Reynolds American, Inc.
3.250% due 06/12/2020			500			497
4.000% due 06/12/2022			100			99
Rockies Express Pipeline LLC
6.000% due 01/15/2019			1,000			1,001
Sabine Pass Liquefaction LLC
5.625% due 02/01/2021			200			206
6.250% due 03/15/2022			100			105
Shire Acquisitions Investments Ireland DAC
1.900% due 09/23/2019			4,700			4,635
Southern Co.
3.104% (US0003M + 0.490%) due 02/14/2020 ~			1,000			998
3.503% (US0003M + 0.700%) due 09/30/2020 ~			600			598
Southwest Airlines Co.
2.750% due 11/06/2019			500			498
Spectra Energy Partners LP
3.451% (US0003M + 0.700%) due 06/05/2020 ~			200			199
Spirit AeroSystems, Inc.
3.588% (US0003M + 0.800%) due 06/15/2021 ~			300			298
Syngenta Finance NV
3.698% due 04/24/2020			1,100			1,092
Takeda Pharmaceutical Co. Ltd.
3.800% due 11/26/2020			1,600			1,610
Telefonica Emisiones S.A.
5.134% due 04/27/2020			400			408
5.877% due 07/15/2019			1,000			1,012
Teva Pharmaceutical Finance Netherlands BV
1.700% due 07/19/2019			1,500			1,480
Textron, Inc.
3.168% (US0003M + 0.550%) due 11/10/2020 ~			600			595
Time Warner Cable LLC
5.000% due 02/01/2020			500			507
8.750% due 02/14/2019			300			302
United Technologies Corp.
3.279% (US0003M + 0.650%) due 08/16/2021 ~			1,300			1,296
VMware, Inc.
2.300% due 08/21/2020			1,200			1,176
2.950% due 08/21/2022			200			191
Volkswagen Group of America Finance LLC
2.400% due 05/22/2020			1,000			985
2.450% due 11/20/2019			1,400			1,387
2.450% due 11/20/2019 (f)			1,500			1,486
3.388% (US0003M + 0.770%) due 11/13/2020 ~			1,000			994
Vulcan Materials Co.
3.388% (US0003M + 0.600%) due 06/15/2020 ~			400			398
Wabtec Corp.
3.838% (US0003M + 1.050%) due 09/15/2021 ~			900			897
Woodside Finance Ltd.
4.600% due 05/10/2021			900			911

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Xerox Corp.
2.750% due 03/15/2019	$		500	$		498
ZF North America Capital, Inc.
4.000% due 04/29/2020			150			149
Zimmer Biomet Holdings, Inc.
3.554% (US0003M + 0.750%) due 03/19/2021 ~			1,000			991
Zoetis, Inc.
3.085% (US0003M + 0.440%) due 08/20/2021 ~			400			397
						123,905
SPECIALTY FINANCE 1.4%
CIMIC Group Ltd.
1.000% due 06/03/2019 (d)			4,000			3,916
Lloyds Banking Group PLC
3.000% due 02/04/2019 (d)			700			700
3.536% due 09/04/2019 (d)			400			399
3.536% due 09/02/2020 (d)			400			397
3.536% due 09/02/2021 (d)			400			396
						5,808
UTILITIES 7.1%
AT&T, Inc.
3.386% (US0003M + 0.950%) due 07/15/2021 ~			1,700			1,695
3.488% (US0003M + 0.750%) due 06/01/2021 ~			300			298
3.504% (US0003M + 0.890%) due 02/15/2023 ~			1,100			1,081
3.956% (US0003M + 1.180%) due 06/12/2024 ~			600			582
BellSouth LLC
4.333% due 04/26/2021			400			401
BP Capital Markets PLC
3.658% (US0003M + 0.870%) due 09/16/2021 ~			2,000			2,022
Chugoku Electric Power Co., Inc.
2.701% due 03/16/2020			500			496
CLP Power HK Finance Ltd.
4.750% due 03/19/2020			1,000			1,017
CNOOC Finance Australia Pty. Ltd.
2.625% due 05/05/2020			1,100			1,090
Duke Energy Corp.
3.114% (US0003M + 0.500%) due 05/14/2021 ~			1,300			1,294
Duke Energy Kentucky, Inc.
4.650% due 10/01/2019			1,000			1,010
Emera U.S. Finance LP
2.150% due 06/15/2019			500			496
Enable Midstream Partners LP
2.400% due 05/15/2019			1,000			994
Entergy Texas, Inc.
7.125% due 02/01/2019			1,000			1,003
Exelon Generation Co. LLC
2.950% due 01/15/2020			500			498
Israel Electric Corp. Ltd.
7.250% due 01/15/2019			199			199
9.375% due 01/28/2020			1,100			1,169
Mississippi Power Co.
3.472% (US0003M + 0.650%) due 03/27/2020 ~			600			599
NextEra Energy Capital Holdings, Inc.
3.107% (US0003M + 0.400%) due 08/21/2020 ~			1,500			1,499
Pennsylvania Electric Co.
5.200% due 04/01/2020			300			308
Plains All American Pipeline LP
2.600% due 12/15/2019			900			887
Ras Laffan Liquefied Natural Gas Co. Ltd.
5.298% due 09/30/2020			66			67
Sempra Energy
2.936% (US0003M + 0.500%) due 01/15/2021 ~			250			246

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 15

Schedule of Investments PIMCO Short-Term Portfolio (Cont.)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
3.238% (US0003M + 0.450%) due 03/15/2021 ~	$		800	$		784
Sinopec Group Overseas Development Ltd.
1.750% due 09/29/2019			800			792
2.125% due 05/03/2019			2,000			1,994
2.250% due 09/13/2020			700			687
2.500% due 04/28/2020			700			692
2.750% due 04/10/2019			500			500
Southern Power Co.
3.342% (US0003M + 0.550%) due 12/20/2020 ~			1,405			1,388
Sprint Capital Corp.
6.900% due 05/01/2019			300			303
State Grid Overseas Investment Ltd.
2.750% due 05/07/2019			400			400
Verizon Communications, Inc.
3.716% (US0003M + 1.100%) due 05/15/2025 ~			2,300			2,232
Vodafone Group PLC
3.426% (US0003M + 0.990%) due 01/16/2024 ~			1,400			1,367
WGL Holdings, Inc.
3.326% (US0003M + 0.550%) due 03/12/2020 ~			500			497
						30,587
Total Corporate Bonds & Notes (Cost $309,754)						307,138
MUNICIPAL BONDS & NOTES 0.6%
ARKANSAS 0.0%
Arkansas Student Loan Authority Revenue Bonds, Series 2010
3.589% due 11/25/2043 •			77			78
CALIFORNIA 0.4%
California Earthquake Authority Revenue Notes, Series 2014
2.805% due 07/01/2019			336			336
California State General Obligation Bonds, Series 2017
3.127% (US0001M + 0.780%) due 04/01/2047 ~			1,300			1,307
						1,643
UTAH 0.1%
Utah State Board of Regents Revenue Bonds, Series 2011
3.391% (US0003M + 0.850%) due 05/01/2029 ~			502			503
WASHINGTON 0.1%
Washington Health Care Facilities Authority Revenue Bonds, Series 2017
2.760% (MUNIPSA + 1.050%) due 01/01/2042 ~			300			305
Total Municipal Bonds & Notes (Cost $2,516)						2,529
U.S. GOVERNMENT AGENCIES 8.0%
Fannie Mae
2.375% due 12/25/2036 •			5			5
2.626% due 03/25/2034 •			3			3
2.656% due 08/25/2034 •			1			1
2.706% due 02/25/2037 •			42			42
2.856% due 05/25/2042 •			4			4
3.056% due 09/25/2041 •			80			80
3.186% due 12/25/2037 •			37			38
3.253% due 03/01/2044 - 07/01/2044 •			14			15
3.500% due 10/01/2047			12,407			12,418
4.000% due 07/01/2048			8,879			9,060
4.000% due 11/01/2048 (f)			9,218			9,406
4.630% due 10/01/2031 •			1			1

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Freddie Mac
2.355% due 12/25/2036 •	$		4	$		4
2.905% due 09/15/2041 •			24			24
3.155% due 02/15/2038 •			30			31
3.156% due 02/25/2045 •			60			60
3.357% due 10/25/2044 •			56			56
3.557% due 07/25/2044 •			21			22
Ginnie Mae
2.864% due 04/20/2062 •			230			231
2.914% due 10/20/2065 •			495			497
3.014% due 02/20/2062 •			188			189
3.114% due 01/20/2066 - 05/20/2066 •			574			582
3.164% due 11/20/2066 •			570			579
3.314% due 01/20/2066 - 03/20/2066 •			1,268			1,296
3.375% due 02/20/2032 •			4			4
NCUA Guaranteed Notes
2.737% due 12/07/2020 •			47			48
Total U.S. Government Agencies (Cost $34,130)						34,696
U.S. TREASURY OBLIGATIONS 4.9%
U.S. Treasury Inflation Protected Securities (a)
0.125% due 04/15/2022			6,863			6,642
0.625% due 04/15/2023			499			491
0.750% due 07/15/2028 (f)			14,104			13,816
Total U.S. Treasury Obligations (Cost $20,886)						20,949
NON-AGENCY MORTGAGE-BACKED SECURITIES 5.0%
AREIT Trust
3.287% due 11/14/2035 •			1,000			989
Atrium Hotel Portfolio Trust
3.405% due 06/15/2035 •			700			697
Bancorp Commercial Mortgage Trust
3.355% due 09/15/2035 •			973			972
Bear Stearns Adjustable Rate Mortgage Trust
4.689% due 01/25/2034 ~			2			2
Bear Stearns ALT-A Trust
4.209% due 09/25/2035 ^~			12			10
BX Trust
3.375% due 07/15/2034 •			216			214
Citigroup Commercial Mortgage Trust
3.305% due 07/15/2032 •			500			499
Citigroup Mortgage Loan Trust, Inc.
4.680% due 09/25/2035 •			4			4
Civic Mortgage LLC
4.349% due 11/25/2022 Ø			762			762
Cold Storage Trust
3.455% due 04/15/2036 •			800			787
Commercial Mortgage Trust
3.051% due 03/10/2046 •			290			288
Countrywide Home Loan Reperforming REMIC Trust
2.846% due 06/25/2035 •			7			7
Credit Suisse First Boston Mortgage Securities Corp.
2.885% due 03/25/2032 ~			2			2
3.884% due 06/25/2033 ~			6			6
Credit Suisse Mortgage Capital Trust
3.205% due 07/15/2032 •			1,000			995
GPMT Ltd.
3.379% due 11/21/2035 •			500			494
Great Wolf Trust
3.455% due 09/15/2034 •			400			393
GreenPoint Mortgage Funding Trust
2.946% due 06/25/2045 •			19			19
GS Mortgage Securities Corp. Trust
3.155% due 07/15/2032 •			400			396
GS Mortgage Securities Trust
3.648% due 01/10/2047			500			506
GSR Mortgage Loan Trust
4.300% due 09/25/2035 ~			6			7

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
HarborView Mortgage Loan Trust
2.910% due 05/19/2035 •	$		25	$		24
Holmes Master Issuer PLC
2.796% due 10/15/2054 •			1,000			997
2.856% due 10/15/2054 •			3,600			3,592
Impac CMB Trust
3.146% due 03/25/2035 •			187			182
JPMorgan Chase Commercial Mortgage Securities Trust
3.217% due 07/15/2034 •			1,000			991
3.365% due 06/15/2035 •			500			497
3.455% due 06/15/2032 •			400			393
Ladder Capital Commercial Mortgage Mortgage Trust
3.335% due 09/15/2034 •			1,050			1,046
Mellon Residential Funding Corp. Mortgage Pass-Through Trust
2.895% due 12/15/2030 •			3			2
Morgan Stanley Capital Trust
3.305% due 11/15/2034 •			800			792
MortgageIT Trust
3.146% due 02/25/2035 •			197			196
Motel 6 Trust
3.375% due 08/15/2034 •			1,435			1,413
Nomura Resecuritization Trust
4.084% due 12/26/2036 •			228			227
PFP Ltd.
3.335% due 07/14/2035 •			206			204
RBSSP Resecuritization Trust
2.815% due 10/26/2036 •			7			7
4.396% due 10/25/2035 ~			245			246
Sequoia Mortgage Trust
3.127% due 02/20/2034 •			227			217
Structured Asset Mortgage Investments Trust
2.720% due 07/19/2035 •			4			4
2.966% due 05/25/2045 •			27			26
3.130% due 09/19/2032 •			1			1
WaMu Mortgage Pass-Through Certificates Trust
3.157% due 02/25/2046 •			14			14
3.157% due 08/25/2046 •			18			17
3.357% due 11/25/2042 •			7			7
3.557% due 06/25/2042 •			1			1
Wells Fargo Commercial Mortgage Trust
3.282% due 12/13/2031 •			500			498
Wells Fargo-RBS Commercial Mortgage Trust
3.245% due 12/15/2045 •			925			929
3.655% due 06/15/2045 •			1,200			1,202
Total Non-Agency Mortgage-Backed Securities (Cost $21,938)						21,774
ASSET-BACKED SECURITIES 12.6%
Ally Auto Receivables Trust
2.640% due 02/16/2021			458			457
Bank of The West Auto Trust
1.780% due 02/15/2021			454			452
Bayview Opportunity Master Fund Trust
3.352% due 11/28/2032 Ø			54			54
3.844% due 04/28/2033 Ø			200			201
4.090% due 05/28/2033 Ø			327			328
CARDS Trust
2.715% due 10/17/2022 •			1,000			999
2.805% due 04/17/2023 •			1,000			1,002
Chesapeake Funding LLC
1.910% due 08/15/2029			709			700
3.230% due 08/15/2030			1,000			1,005
Colony American Finance Ltd.
2.544% due 06/15/2048			96			95
Commonbond Student Loan Trust
2.550% due 05/25/2041			246			238
Countrywide Asset-Backed Certificates
3.246% due 05/25/2032 •			1			1
Credit Suisse First Boston Mortgage Securities Corp.
3.246% due 08/25/2032 •			2			2
Credit Suisse Mortgage Capital Trust
4.500% due 03/25/2021			318			319

16 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Dorchester Park CLO DAC
3.369% due 04/20/2028 •	$		500	$		496
Drug Royalty LP
5.286% due 07/15/2023 •			57			57
ECMC Group Student Loan Trust
3.256% due 02/27/2068 •			626			626
Edsouth Indenture LLC
3.236% due 04/25/2039 •			83			82
EFS Volunteer LLC
3.340% due 10/25/2035 •			358			358
Emerson Park CLO Ltd.
3.416% due 07/15/2025 •			152			152
Enterprise Fleet Financing LLC
3.140% due 02/20/2024			700			700
Evans Grove CLO Ltd.
3.627% due 05/28/2028 •			1,700			1,688
Figueroa CLO Ltd.
3.336% due 01/15/2027 •			1,000			999
3.642% due 06/20/2027 •			500			497
Ford Credit Floorplan Master Owner Trust
2.855% due 10/15/2023 •			1,000			998
Fremont Home Loan Trust
3.241% due 01/25/2035 •			400			394
Gallatin CLO Ltd.
3.485% due 01/21/2028 •			1,200			1,195
3.486% (US0003M + 1.050%) due 07/15/2027 ~			1,300			1,295
GMF Floorplan Owner Revolving Trust
2.775% due 09/15/2022 •			400			400
3.500% due 09/15/2023			1,900			1,925
Hertz Fleet Lease Funding LP
3.230% due 05/10/2032			500			502
Jamestown CLO Ltd.
3.306% due 01/15/2028 •			500			493
Long Beach Mortgage Loan Trust
3.481% due 04/25/2035 •			1,000			1,000
LP Credit Card ABS Master Trust
3.830% due 08/20/2024 •			851			853
Marlette Funding Trust
3.060% due 07/17/2028			189			189
3.710% due 12/15/2028			975			978
Master Credit Card Trust
2.969% due 07/21/2024 •			500			499
MASTR Asset-Backed Securities Trust
2.556% due 11/25/2036 •			2			1
MMAF Equipment Finance LLC
2.920% due 07/12/2021			496			496
Mountain Hawk CLO Ltd.
3.289% due 07/20/2024 •			738			736
Mountain View CLO Ltd.
3.236% due 10/15/2026 •			1,000			998
Navient Private Education Loan Trust
2.650% due 12/15/2028			135			133
Navient Student Loan Trust
3.430% due 12/15/2059			1,000			1,005
3.656% due 03/25/2066 •			1,731			1,739
Nelnet Student Loan Trust
3.206% due 09/27/2038 •			2,376			2,394
4.327% due 11/25/2024 •			341			344
Northstar Education Finance, Inc.
3.206% due 12/26/2031 •			53			53
NovaStar Mortgage Funding Trust
3.166% due 01/25/2036 •			400			397
Oaktree CLO Ltd.
3.689% due 10/20/2026 •			2,000			2,000

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
OneMain Financial Issuance Trust
2.370% due 09/14/2032	$		500	$		492
OSCAR U.S. Funding Trust LLC
2.910% due 04/12/2021			467			467
3.150% due 08/10/2021			500			500
Palmer Square CLO Ltd.
3.466% due 08/15/2026 •			953			947
Penarth Master Issuer PLC
2.905% due 09/18/2022 •			500			499
Progress Residential Trust
3.855% due 01/17/2034 •			599			601
Prosper Marketplace Issuance Trust
3.350% due 10/15/2024			338			337
Renaissance Home Equity Loan Trust
2.866% due 11/25/2034 •			4			4
3.195% due 08/25/2033 •			4			4
3.506% due 12/25/2033 •			16			16
Residential Asset Mortgage Products Trust
3.186% due 05/25/2035 •			300			297
RMAT LP
4.090% due 05/25/2048 Ø			759			759
SBA Tower Trust
2.898% due 10/15/2044 Ø			300			298
SLC Student Loan Trust
2.676% due 05/15/2029 •			845			836
2.898% due 03/15/2027 •			1,179			1,174
SLM Student Loan Trust
2.600% due 01/25/2027 •			691			690
2.956% due 09/25/2043 •			880			875
3.258% due 12/15/2027 •			532			532
3.990% due 04/25/2023 •			1,360			1,372
SMB Private Education Loan Trust
2.775% due 12/16/2024 •			723			723
3.905% due 02/17/2032 •			159			162
SoFi Consumer Loan Program LLC
2.200% due 11/25/2026			91			90
2.500% due 05/26/2026			580			573
2.770% due 05/25/2026			182			181
SoFi Consumer Loan Program Trust
2.930% due 04/26/2027			341			340
3.200% due 08/25/2027			752			750
SoFi Professional Loan Program LLC
2.720% due 10/27/2036			196			193
4.106% due 06/25/2025 •			67			67
SoFi Professional Loan Program Trust
3.080% due 01/25/2048			453			452
Sound Point CLO Ltd.
3.296% due 04/15/2027 •			1,400			1,394
Springleaf Funding Trust
2.680% due 07/15/2030			600			590
Trillium Credit Card Trust
2.756% due 02/27/2023 •			1,500			1,497
Utah State Board of Regents
3.256% due 01/25/2057 •			1,715			1,713
Venture CLO Ltd.
3.316% due 04/15/2027 •			1,700			1,682
Vericrest Opportunity Loan Transferee LLC
3.125% due 09/25/2047 Ø			872			866
Total Asset-Backed Securities (Cost $54,588)						54,498
SOVEREIGN ISSUES 1.5%
Export-Import Bank of India
2.750% due 04/01/2020			300			297
2.750% due 08/12/2020			600			591
3.646% (US0003M + 1.000%) due 08/21/2022 ~			700			700
3.875% due 10/02/2019			500			502

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Japan Bank for International Cooperation
3.259% (US0003M + 0.570%) due 02/24/2020 ~	$		2,200	$		2,212
Japan Finance Organization for Municipalities
2.125% due 03/06/2019			1,000			999
Tokyo Metropolitan Government
2.500% due 06/08/2022			1,000			983
Total Sovereign Issues (Cost $6,309)						6,284
SHORT-TERM INSTRUMENTS 1.1%
CERTIFICATES OF DEPOSIT 0.5%
Itau CorpBanca
2.570% due 01/11/2019			700			700
Lloyds Bank Corporate Markets PLC
2.908% (US0003M + 0.500%) due 10/26/2020 ~			900			900
3.324% (US0003M + 0.500%) due 09/24/2020 ~			700			700
						2,300
COMMERCIAL PAPER 0.5%
AT&T, Inc.
3.000% due 05/28/2019			250			247
Campbell Soup Co.
2.900% due 01/15/2019			250			250
CNH Industrial Capital LLC
3.500% due 05/09/2019			400			395
Ford Motor Credit Co.
2.935% due 01/04/2019			500			500
VW CR, Inc.
3.050% due 07/02/2019			600			590
						1,982
REPURCHASE AGREEMENTS (e) 0.1%
						567
Total Short-Term Instruments (Cost $4,849)						4,849
Total Investments in Securities (Cost $457,351)						455,085
		SHARES
INVESTMENTS IN AFFILIATES 0.5%
SHORT-TERM INSTRUMENTS 0.5%
CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 0.5%
PIMCO Short-Term Floating NAV Portfolio III			218,048			2,155
Total Short-Term Instruments (Cost $2,155)						2,155
Total Investments in Affiliates (Cost $2,155)						2,155
Total Investments 105.9% (Cost $459,506)				$		457,240
Financial Derivative Instruments (g)(h) (0.2)% (Cost or Premiums, net $(785))						(689	)
Other Assets and Liabilities, net (5.7)%						(24,868	)
Net Assets 100.0%				$		431,683

NOTES TO SCHEDULE OF INVESTMENTS:    

* A zero balance may reflect actual amounts rounding to less than one thousand.

« Security valued using significant unobservable inputs (Level 3).

^ Security is in default.

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 17

Schedule of Investments PIMCO Short-Term Portfolio (Cont.)

~ Variable or Floating rate security. Rate shown is the rate in effect as of period end. Certain variable rate securities are not based on a published reference rate and spread, rather are determined by the issuer or agent and are based on current market conditions. Reference rate is as of reset date, which may vary by security. These securities may not indicate a reference rate and/or spread in their description.

• Rate shown is the rate in effect as of period end. The rate may be based on a fixed rate, a capped rate or a floor rate and may convert to a variable or floating rate in the future. These securities do not indicate a reference rate and spread in their description.

Ø Coupon represents a rate which changes periodically based on a predetermined schedule or event. Rate shown is the rate in effect as of period end.

(a) Principal amount of security is adjusted for inflation.

(b) Perpetual maturity; date shown, if applicable, represents next contractual call date.

(c) Contingent convertible security.

(d)  RESTRICTED SECURITIES:

Issuer Description	Coupon			Maturity Date		Acquisition Date		Cost		Market Value		Market Value as Percentage of Net Assets
CIMIC Group Ltd.		1.000	%		06/03/2019		12/19/2018		$3,916	$	3,916		0.91	%
Lloyds Banking Group PLC		3.000			02/04/2019		09/18/2017		700		700		0.16
Lloyds Banking Group PLC		3.536			09/04/2019		05/22/2018		400		399		0.09
Lloyds Banking Group PLC		3.536			09/02/2020		05/22/2018		400		397		0.09
Lloyds Banking Group PLC		3.536			09/02/2021		05/22/2018		400		396		0.09
									$    5,816	$	5,808		1.34	%

BORROWINGS AND OTHER FINANCING TRANSACTIONS

(e)  REPURCHASE AGREEMENTS:

Counterparty	Lending Rate			Settlement Date		Maturity Date		Principal Amount		Collateralized By	Collateral (Received)			Repurchase Agreements, at Value		Repurchase Agreement Proceeds to  be Received(1)
FICC		2.000	%		12/31/2018		01/02/2019	$	567	U.S. Treasury Notes 2.875% due 09/30/2023	$	(582	)	$	567	$	567
Total Repurchase Agreements											$	(582	)	$	567	$	567

REVERSE REPURCHASE AGREEMENTS:

Counterparty	Borrowing Rate(2)			Settlement Date		Maturity Date		Amount Borrowed(2)			Payable for Reverse Repurchase Agreements
BOS		2.500	%		12/17/2018		01/08/2019	$	(13,149	)	$	(13,163	)
CIW		2.850			12/19/2018		01/18/2019		(10,395	)		(10,407	)
CSN		2.720			12/13/2018		01/14/2019		(8,878	)		(8,891	)
Total Reverse Repurchase Agreements											$	(32,461	)

BORROWINGS AND OTHER FINANCING TRANSACTIONS SUMMARY

The following is a summary by counterparty of the market value of Borrowings and Other Financing Transactions and collateral pledged/(received) as of December 31, 2018:

Counterparty	Repurchase Agreement Proceeds to  be Received(1)		Payable for Reverse Repurchase Agreements			Payable for Sale-Buyback Transactions		Total Borrowings and Other Financing Transactions			Collateral Pledged/(Received)			Net Exposure(3)
Global/Master Repurchase Agreement
BOS	$	0	$	(13,163	)	$	0	$	(13,163	)	$	13,224		$	61
CIW		0		(10,407	)		0		(10,407	)		10,870			463
CSN		0		(8,891	)		0		(8,891	)		9,406			515
FICC		567		0			0		567			(582	)		(15	)
Total Borrowings and Other Financing Transactions	$	567	$	(32,461	)	$	0

18 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

CERTAIN TRANSFERS ACCOUNTED FOR AS SECURED BORROWINGS

Remaining Contractual Maturity of the Agreements

	Overnight and Continuous		Up to 30 days			31-90 days		Greater Than 90 days		Total
Reverse Repurchase Agreements
Corporate Bonds & Notes	$	0	$	(10,407	)	$	0	$	0	$	(10,407	)
U.S. Government Agencies		0		(8,891	)		0		0		(8,891	)
U.S. Treasury Obligations		0		(13,163	)		0		0		(13,163	)
Total Borrowings	$	0	$	(32,461	)	$	0	$	0	$	(32,461	)
Payable for reverse repurchase agreements										$	(32,461	)

(f) Securities with an aggregate market value of $33,500 have been pledged as collateral under the terms of the above master agreements as of December 31, 2018.

⁽¹⁾ Includes accrued interest.

⁽²⁾ The average amount of borrowings outstanding during the period ended December 31, 2018 was $(8,989) at a weighted average interest rate of 2.131%. Average borrowings may include sale-buyback transactions and reverse repurchase agreements, if held during the period.

⁽³⁾ Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from borrowings and other financing transactions can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information regarding master netting arrangements.

(g)  FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED

PURCHASED OPTIONS:

OPTIONS ON EXCHANGE-TRADED FUTURES CONTRACTS

Description	Strike Price		Expiration Date		# of Contracts		Notional Amount		Cost		Market Value
Call - CBOT U.S. Treasury 10-Year Note March 2019 Futures	$	129.500		02/22/2019		21	$	21	$	0	$	1
Call - CBOT U.S. Treasury 10-Year Note March 2019 Futures		132.000		02/22/2019		44		44		0		1
Put - CBOT U.S. Treasury 2-Year Note March 2019 Futures		103.250		02/22/2019		198		396		2		0
Put - CBOT U.S. Treasury 2-Year Note March 2019 Futures		103.500		02/22/2019		6		12		0		0
Put - CBOT U.S. Treasury 2-Year Note March 2019 Futures		103.750		02/22/2019		43		86		0		0
Call - CBOT U.S. Treasury 5-Year Note March 2019 Futures		120.000		02/22/2019		323		323		3		4
Call - CBOT U.S. Treasury 5-Year Note March 2019 Futures		120.250		02/22/2019		102		102		1		1
Call - CBOT U.S. Treasury 5-Year Note March 2019 Futures		120.500		02/22/2019		553		553		5		3
Total Purchased Options									$	11	$	10

FUTURES CONTRACTS:

LONG FUTURES CONTRACTS

Description	Expiration Month		# of Contracts		Notional Amount		Unrealized Appreciation/ (Depreciation)			Variation Margin
										Asset		Liability
3-Month Canada Bankers Acceptance December Futures		12/2019		149	$	26,673	$	146		$	8	$	0
3-Month Canada Bankers Acceptance June Futures		06/2020		146		26,142		189			13		0
3-Month Canada Bankers Acceptance March Futures		03/2020		47		8,415		50			3		0
30-Day Federal Fund February Futures		02/2019		206		83,780		(4	)		0		0
90-Day Eurodollar December Futures		12/2019		111		27,015		15			3		0
90-Day Eurodollar March Futures		03/2019		214		52,050		58			0		0
U.S. Treasury 2-Year Note March Futures		03/2019		1,007		213,799		1,465			142		0
United Kingdom 90-Day LIBOR Sterling Interest Rate March Futures		03/2019		1,338		211,173		(21	)		11		0
United Kingdom 90-Day LIBOR Sterling Interest Rate September Futures		09/2019		270		42,564		(10	)		2		(6	)
							$	1,888		$	182	$	(6	)

SHORT FUTURES CONTRACTS

Description	Expiration Month		# of Contracts		Notional Amount			Unrealized Appreciation/ (Depreciation)			Variation Margin
											Asset		Liability
90-Day Eurodollar December Futures		12/2020		111	$	(27,065	)	$	(22	)	$	0	$	(10	)
90-Day Eurodollar March Futures		03/2020		232		(56,518	)		(340	)		0		(12	)
U.S. Treasury 5-Year Note March Futures		03/2019		1,181		(135,446	)		(2,143	)		0		(295	)
U.S. Treasury Ultra Long-Term Bond March Futures		03/2019		33		(5,302	)		(279	)		0		(20	)
United Kingdom 90-Day LIBOR Sterling Interest Rate March Futures		03/2020		631		(99,393	)		0			10		(20	)

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 19

Schedule of Investments PIMCO Short-Term Portfolio (Cont.)

Description	Expiration Month		# of Contracts		Notional Amount			Unrealized Appreciation/ (Depreciation)			Variation Margin
											Asset		Liability
United Kingdom 90-Day LIBOR Sterling Interest Rate March Futures		03/2022		707	$	(111,094	)	$	(18	)	$	0	$	(56	)
United Kingdom 90-Day LIBOR Sterling Interest Rate September Futures		09/2020		270		(42,499	)		(3	)		3		(13	)
								$	(2,805	)	$	13	$	(426	)
Total Futures Contracts								$	(917	)	$	195	$	(432	)

SWAP AGREEMENTS:

CREDIT DEFAULT SWAPS ON CORPORATE ISSUES - SELL PROTECTION⁽¹⁾

Reference Entity	Fixed Receive Rate			Payment Frequency		Maturity Date		Implied Credit Spread at December 31, 2018(3)			Notional Amount(4)		Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Market Value(5)			Variation Margin
																						Asset		Liability
General Electric Co.		1.000	%		Quarterly		12/20/2020		1.653	%	$	100	$	(2	)	$	1		$	(1	)	$	0	$	0
General Electric Co.		1.000			Quarterly		12/20/2023		2.039			400		(12	)		(6	)		(18	)		0		0
													$	(14	)	$	(5	)	$	(19	)	$	0	$	0

CREDIT DEFAULT SWAPS ON CREDIT INDICES - BUY PROTECTION⁽²⁾

Index/Tranches	Fixed (Pay) Rate			Payment Frequency	Maturity Date		Notional Amount(4)		Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)		Market Value(5)			Variation Margin
																	Asset		Liability
CDX.HY-31 5-Year Index		(5.000	)%	Quarterly		12/20/2023	$	19,000	$	(995	)	$	575	$	(420	)	$	0	$	(32	)

INTEREST RATE SWAPS

Pay/Receive Floating Rate	Floating Rate Index	Fixed Rate			Payment Frequency	Maturity Date		Notional Amount		Premiums Paid/(Received)		Unrealized Appreciation/ (Depreciation)			Market Value			Variation Margin
																		Asset		Liability
Pay(6)	3-Month  USD-LIBOR		12.500	%	Quarterly		06/21/2020	$	226,000	$	7	$	(20	)	$	(13	)	$	17	$	0
Receive	3-Month  USD-LIBOR		2.750		Semi-Annual		12/19/2023		52,800		201		(611	)		(410	)		0		(103	)
Receive	3-Month  USD-LIBOR		3.000		Semi-Annual		12/19/2028		5,000		84		(204	)		(120	)		0		(19	)
										$	292	$	(835	)	$	(543	)	$	17	$	(122	)

INTEREST RATE SWAPS - BASIS SWAPS

Pay Floating Rate Index	Receive Floating Rate Index	Payment Frequency	Maturity Date		Notional Amount		Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Market Value			Variation Margin
																Asset		Liability
3-Month USD-LIBOR	01-Month USD-LIBOR + 0.139%	Quarterly		05/10/2021		54,350	$	0		$	(11	)	$	(11	)	$	5	$	0
3-Month USD-LIBOR	01-Month USD-LIBOR + 0.136%	Quarterly		05/11/2021		27,200		0			(4	)		(4	)		2		0
3-Month USD-LIBOR	01-Month USD-LIBOR + 0.139%	Quarterly		05/14/2021		34,050		0			(9	)		(9	)		2		0
3-Month USD-LIBOR	01-Month USD-LIBOR + 0.095%	Quarterly		05/21/2022		18,600		0			10			10			0		0
							$	0		$	(14	)	$	(14	)	$	9	$	0
Total Swap Agreements							$	(717	)	$	(279	)	$	(996	)	$	26	$	(154	)

FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED SUMMARY

The following is a summary of the market value and variation margin of Exchange-Traded or Centrally Cleared Financial Derivative Instruments as of December 31, 2018:

	Financial Derivative Assets								Financial Derivative Liabilities
	Market Value		Variation Margin Asset						Market Value		Variation Margin Liability
	Purchased Options		Futures		Swap Agreements		Total		Written Options		Futures		Swap Agreements		Total
Total Exchange-Traded or Centrally Cleared	$	10	$	195	$	26	$	231	$	0	$	(432)	$	(154)	$	(586)

Cash of $3,343 has been pledged as collateral for exchange-traded and centrally cleared financial derivative instruments as of December 31, 2018. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information regarding master netting arrangements.

⁽¹⁾ If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

20 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

⁽²⁾ If the Portfolio is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽³⁾ Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on issues as of period end serve as indicators of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

⁽⁴⁾ The maximum potential amount the Portfolio could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

⁽⁵⁾ The prices and resulting values for credit default swap agreements serve as indicators of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced indices’ credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

⁽⁶⁾ This instrument has a forward starting effective date. See Note 2, Securities Transactions and Investment Income, in the Notes to Financial Statements for further information.

(h)  FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER

FORWARD FOREIGN CURRENCY CONTRACTS:

Counterparty	Settlement Month		Currency to be Delivered		Currency to be Received		Unrealized Appreciation/ (Depreciation)
							Asset		Liability
BOA		01/2019	EUR	11,728	$	13,389	$	0	$	(57	)
CBK		01/2019		4,178		4,764		0		(26	)
		01/2019	GBP	528		673		0		0
GLM		01/2019		141		178		0		(2	)
JPM		01/2019	JPY	365,600		3,233		0		(104	)
		01/2019	$	527	EUR	461		2		0
		01/2019		41	MXN	792		0		(1	)
RYL		01/2019		8,579	JPY	955,000		137		0
SCX		01/2019	CAD	272	$	204		4		0
SSB		01/2019	$	2,146	JPY	242,300		65		0
UAG		01/2019	JPY	1,131,100	$	9,985		0		(338	)
		01/2019	$	2,670	JPY	301,100		78		0
Total Forward Foreign Currency Contracts							$	286	$	(528	)

WRITTEN OPTIONS:

CREDIT DEFAULT SWAPTIONS ON CREDIT INDICES

Counterparty	Description	Buy/Sell Protection		Exercise Rate		Expiration Date		Notional Amount		Premiums (Received)			Market Value
BOA	Put - OTC CDX.IG-31 5-Year Index		Sell		0.850%		01/16/2019	$	2,400	$	(3	)	$	(7	)
	Put - OTC CDX.IG-31 5-Year Index		Sell		0.900		01/16/2019		5,000		(7	)		(8	)
	Put - OTC CDX.IG-31 5-Year Index		Sell		0.950		02/20/2019		1,200		(3	)		(3	)
	Put - OTC CDX.IG-31 5-Year Index		Sell		1.000		02/20/2019		3,000		(6	)		(6	)
	Put - OTC CDX.IG-31 5-Year Index		Sell		1.200		03/20/2019		1,900		(2	)		(3	)
BRC	Put - OTC CDX.IG-31 5-Year Index		Sell		1.000		01/16/2019		2,100		(2	)		(1	)
	Put - OTC CDX.IG-31 5-Year Index		Sell		1.050		02/20/2019		3,200		(6	)		(5	)
	Put - OTC CDX.IG-31 5-Year Index		Sell		1.100		03/20/2019		1,200		(2	)		(3	)
CBK	Put - OTC CDX.IG-31 5-Year Index		Sell		0.950		01/16/2019		2,100		(3	)		(2	)
	Put - OTC CDX.IG-31 5-Year Index		Sell		1.000		01/16/2019		11,900		(10	)		(7	)
	Put - OTC CDX.IG-31 5-Year Index		Sell		0.950		02/20/2019		4,700		(9	)		(15	)
	Put - OTC CDX.IG-31 5-Year Index		Sell		1.100		03/20/2019		1,800		(4	)		(4	)
GST	Put - OTC CDX.IG-31 5-Year Index		Sell		0.900		01/16/2019		3,600		(4	)		(6	)
	Put - OTC CDX.IG-31 5-Year Index		Sell		2.400		09/18/2019		2,600		(4	)		(5	)
JPM	Put - OTC CDX.IG-31 5-Year Index		Sell		0.950		02/20/2019		2,100		(4	)		(6	)
	Put - OTC CDX.IG-31 5-Year Index		Sell		1.200		03/20/2019		2,200		(4	)		(4	)
MYC	Put - OTC CDX.IG-31 5-Year Index		Sell		0.900		01/16/2019		4,200		(6	)		(7	)
Total Written Options										$	(79	)	$	(92	)

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 21

Schedule of Investments PIMCO Short-Term Portfolio (Cont.)

FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER SUMMARY

The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral (received) as of December 31, 2018:

	Financial Derivative Assets								Financial Derivative Liabilities
Counterparty	Forward Foreign Currency Contracts		Purchased Options		Swap Agreements		Total Over the Counter		Forward Foreign Currency Contracts			Written Options			Swap Agreements		Total Over the Counter			Net Market Value of OTC Derivatives			Collateral (Received)			Net Exposure(1)
BOA	$	0	$	0	$	0	$	0	$	(57	)	$	(27	)	$	0	$	(84	)	$	(84	)	$	0		$	(84	)
BRC		0		0		0		0		0			(9	)		0		(9	)		(9	)		0			(9	)
CBK		0		0		0		0		(26	)		(28	)		0		(54	)		(54	)		0			(54	)
GLM		0		0		0		0		(2	)		0			0		(2	)		(2	)		0			(2	)
GST		0		0		0		0		0			(11	)		0		(11	)		(11	)		0			(11	)
JPM		2		0		0		2		(105	)		(10	)		0		(115	)		(113	)		0			(113	)
MYC		0		0		0		0		0			(7	)		0		(7	)		(7	)		0			(7	)
RYL		137		0		0		137		0			0			0		0			137			(110	)		27
SCX		4		0		0		4		0			0			0		0			4			0			4
SSB		65		0		0		65		0			0			0		0			65			0			65
UAG		78		0		0		78		(338	)		0			0		(338	)		(260	)		0			(260	)
Total Over the Counter	$	286	$	0	$	0	$	286	$	(528	)	$	(92	)	$	0	$	(620	)

⁽¹⁾ Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information regarding master netting arrangements.

FAIR VALUE OF FINANCIAL DERIVATIVE INSTRUMENTS

The following is a summary of the fair valuation of the Portfolio’s derivative instruments categorized by risk exposure. See Note 7, Principal Risks, in the Notes to Financial Statements on risks of the Portfolio.

Fair Values of Financial Derivative Instruments on the Statement of Assets and Liabilities as of December 31, 2018:

	Derivatives not accounted for as hedging instruments
	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Exchange Contracts		Interest Rate Contracts		Total
Financial Derivative Instruments - Assets
Exchange-traded or centrally cleared
Purchased Options	$	0	$	0	$	0	$	0	$	10	$	10
Futures		0		0		0		0		195		195
Swap Agreements		0		0		0		0		26		26
	$	0	$	0	$	0	$	0	$	231	$	231
Over the counter
Forward Foreign Currency Contracts	$	0	$	0	$	0	$	286	$	0	$	286
	$	0	$	0	$	0	$	286	$	231	$	517
Financial Derivative Instruments - Liabilities
Exchange-traded or centrally cleared
Futures	$	0	$	0	$	0	$	0	$	432	$	432
Swap Agreements		0		32		0		0		122		154
	$	0	$	32	$	0	$	0	$	554	$	586
Over the counter
Forward Foreign Currency Contracts	$	0	$	0	$	0	$	528	$	0	$	528
Written Options		0		92		0		0		0		92
	$	0	$	92	$	0	$	528	$	0	$	620
	$	0	$	124	$	0	$	528	$	554	$	1,206

22 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

The effect of Financial Derivative Instruments on the Statement of Operations for the period ended December 31, 2018:

	Derivatives not accounted for as hedging instruments
	Commodity Contracts		Credit Contracts			Equity Contracts		Foreign Exchange Contracts		Interest Rate Contracts			Total
Net Realized Gain (Loss) on Financial Derivative Instruments
Exchange-traded or centrally cleared
Purchased Options	$	0	$	0		$	0	$	0	$	(21	)	$	(21	)
Written Options		0		0			0		0		15			15
Futures		0		0			0		0		205			205
Swap Agreements		0		(313	)		0		0		37			(276	)
	$	0	$	(313	)	$	0	$	0	$	236		$	(77	)
Over the counter
Forward Foreign Currency Contracts	$	0	$	0		$	0	$	286	$	0		$	286
Purchased Options		0		0			0		0		24			24
Written Options		0		52			0		22		(164	)		(90	)
	$	0	$	52		$	0	$	308	$	(140	)	$	220
	$	0	$	(261	)	$	0	$	308	$	96		$	143
Net Change in Unrealized Appreciation (Depreciation) on Financial Derivative Instruments
Exchange-traded or centrally cleared
Purchased Options	$	0	$	0		$	0	$	0	$	(1	)	$	(1	)
Futures		0		0			0		0		(1,037	)		(1,037	)
Swap Agreements		0		467			0		0		(702	)		(235	)
	$	0	$	467		$	0	$	0	$	(1,740	)	$	(1,273	)
Over the counter
Forward Foreign Currency Contracts	$	0	$	0		$	0	$	80	$	0		$	80
Written Options		0		(13	)		0		0		0			(13	)
	$	0	$	(13	)	$	0	$	80	$	0		$	67
	$	0	$	454		$	0	$	80	$	(1,740	)	$	(1,206	)

FAIR VALUE MEASUREMENTS

The following is a summary of the fair valuations according to the inputs used as of December 31, 2018 in valuing the Portfolio’s assets and liabilities:

Category and Subcategory	Level 1		Level 2		Level 3		Fair Value at 12/31/2018
Investments in Securities, at Value
Loan Participations and Assignments	$	0	$	372	$	1,996	$	2,368
Corporate Bonds & Notes
Banking & Finance		0		146,838		0		146,838
Industrials		0		123,905		0		123,905
Specialty Finance		0		5,808		0		5,808
Utilities		0		30,587		0		30,587
Municipal Bonds & Notes
Arkansas		0		78		0		78
California		0		1,643		0		1,643
Utah		0		503		0		503
Washington		0		305		0		305
U.S. Government Agencies		0		34,696		0		34,696
U.S. Treasury Obligations		0		20,949		0		20,949
Non-Agency Mortgage-Backed Securities		0		21,774		0		21,774
Asset-Backed Securities		0		54,498		0		54,498
Sovereign Issues		0		6,284		0		6,284
Short-Term Instruments
Certificates of Deposit		0		2,300		0		2,300
Commercial Paper		0		1,982		0		1,982
Repurchase Agreements		0		567		0		567
	$	0	$	453,089	$	1,996	$	455,085

Category and Subcategory	Level 1			Level 2			Level 3		Fair Value at 12/31/2018
Investments in Affiliates, at Value
Short-Term Instruments
Central Funds Used for Cash Management Purposes	$	2,155		$	0		$	0	$	2,155
Total Investments	$	2,155		$	453,089		$	1,996	$	457,240
Financial Derivative Instruments - Assets
Exchange-traded or centrally cleared		195			36			0		231
Over the counter		0			286			0		286
	$	195		$	322		$	0	$	517
Financial Derivative Instruments - Liabilities
Exchange-traded or centrally cleared		(432	)		(154	)		0		(586	)
Over the counter		0			(620	)		0		(620	)
	$	(432	)	$	(774	)	$	0	$	(1,206	)
Total Financial Derivative Instruments	$	(237	)	$	(452	)	$	0	$	(689	)
Totals	$	1,918		$	452,637		$	1,996	$	456,551

There were no significant transfers into or out of Level 3 during the period ended December 31, 2018.

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 23

Notes to Financial Statements

1. ORGANIZATION

PIMCO Variable Insurance Trust (the “Trust”) is a Delaware statutory trust established under a trust instrument dated October 3, 1997. The Trust is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Trust is designed to be used as an investment vehicle by separate accounts of insurance companies that fund variable annuity contracts and variable life insurance policies and by qualified pension and retirement plans. Information presented in these financial statements pertains to the Institutional Class, Administrative Class and Advisor Class shares of the PIMCO Short-Term Portfolio (the “Portfolio”) offered by the Trust. Pacific Investment Management Company LLC (“PIMCO”) serves as the investment adviser (the “Adviser”) for the Portfolio.

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Portfolio is treated as an investment company under the reporting requirements of U.S. GAAP. The functional and reporting currency for the Portfolio is the U.S. dollar. The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

(a) Securities Transactions and Investment Income  Securities transactions are recorded as of the trade date for financial reporting purposes. Securities purchased or sold on a when-issued or delayed-delivery basis may be settled beyond a standard settlement period for the security after the trade date. Realized gains (losses) from securities sold are recorded on the identified cost basis. Dividend income is recorded on the ex-dividend date, except certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Portfolio is informed of the ex-dividend date. Interest income, adjusted for the accretion of discounts and amortization of premiums, is recorded on the accrual basis from settlement date, with the exception of securities with a forward starting effective date, where interest income is recorded on the accrual basis from effective date. For convertible securities, premiums attributable to the conversion feature are not amortized. Estimated tax liabilities on certain foreign securities are recorded on an accrual basis and are reflected as components of interest income or net change in unrealized appreciation (depreciation) on investments on the Statement of

Operations, as appropriate. Tax liabilities realized as a result of such security sales are reflected as a component of net realized gain (loss) on investments on the Statement of Operations. Paydown gains (losses) on mortgage-related and other asset-backed securities, if any, are recorded as components of interest income on the Statement of Operations. Income or short-term capital gain distributions received from registered investment companies, if any, are recorded as dividend income. Long-term capital gain distributions received from registered investment companies, if any, are recorded as realized gains.

(b) Foreign Currency Translation  The market values of foreign securities, currency holdings and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the current exchange rates each business day. Purchases and sales of securities and income and expense items denominated in foreign currencies, if any, are translated into U.S. dollars at the exchange rate in effect on the transaction date. The Portfolio does not separately report the effects of changes in foreign exchange rates from changes in market prices on securities held. Such changes are included in net realized gain (loss) and net change in unrealized appreciation (depreciation) from investments on the Statement of Operations. The Portfolio may invest in foreign currency-denominated securities and may engage in foreign currency transactions either on a spot (cash) basis at the rate prevailing in the currency exchange market at the time or through a forward foreign currency contract. Realized foreign exchange gains (losses) arising from sales of spot foreign currencies, currency gains (losses) realized between the trade and settlement dates on securities transactions and the difference between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid are included in net realized gain (loss) on foreign currency transactions on the Statement of Operations. Net unrealized foreign exchange gains (losses) arising from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period are included in net change in unrealized appreciation (depreciation) on foreign currency assets and liabilities on the Statement of Operations.

(c) Multi-Class Operations  Each class offered by the Trust has equal rights as to assets and voting privileges (except that shareholders of a class have exclusive voting rights regarding any matter relating solely to that class of shares). Income and non-class specific expenses are allocated daily to each class on the basis of the relative net assets. Realized and unrealized capital gains (losses) are allocated daily based on the relative net assets of each class of the Portfolio. Class specific expenses, where applicable, currently include supervisory and administrative and distribution and servicing fees. Under certain circumstances, the per share net asset value (“NAV”) of a class of the

24 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

Portfolio’s shares may be different from the per share NAV of another class of shares as a result of the different daily expense accruals applicable to each class of shares.

(d) Distributions to Shareholders  Distributions from net investment income, if any, are declared daily and distributed to shareholders monthly. Net realized capital gains earned by the Portfolio, if any, will be distributed no less frequently than once each year.

Income distributions and capital gain distributions are determined in accordance with income tax regulations which may differ from U.S. GAAP. Differences between tax regulations and U.S. GAAP may cause timing differences between income and capital gain recognition. Further, the character of investment income and capital gains may be different for certain transactions under the two methods of accounting. As a result, income distributions and capital gain distributions declared during a fiscal period may differ significantly from the net investment income (loss) and realized gains (losses) reported on the Portfolio’s annual financial statements presented under U.S. GAAP.

If the Portfolio estimates that a portion of its distribution may be comprised of amounts from sources other than net investment income in accordance with its policies and good accounting practices, the Portfolio will notify shareholders of the estimated composition of such distribution through a Section 19 Notice. For these purposes, the Portfolio estimates the source or sources from which a distribution is paid, to the close of the period as of which it is paid, in reference to its internal accounting records and related accounting practices. If, based on such accounting records and practices, it is estimated that a particular distribution does not include capital gains or paid-in surplus or other capital sources, a Section 19 Notice generally would not be issued. It is important to note that differences exist between the Portfolio’s daily internal accounting records and practices, the Portfolio’s financial statements presented in accordance with U.S. GAAP, and recordkeeping practices under income tax regulations. For instance, the Portfolio’s internal accounting records and practices may take into account, among other factors, tax-related characteristics of certain sources of distributions that differ from treatment under U.S. GAAP. Examples of such differences may include, among others, the treatment of paydowns on mortgage-backed securities purchased at a discount and periodic payments under interest rate swap contracts. Accordingly, among other consequences, it is possible that the Portfolio may not issue a Section 19 Notice in situations where the Portfolio’s financial statements prepared later and in accordance with U.S. GAAP and/or the final tax character of those distributions might later report that the sources of those distributions included capital gains and/or a return of capital. Final determination of a distribution’s tax character will be provided to shareholders when such information is available.

Distributions classified as a tax basis return of capital, if any, are reflected on the Statements of Changes in Net Assets and have been recorded to paid in capital on the Statement of Assets and Liabilities. In addition, other amounts have been reclassified between distributable earnings (accumulated loss) and paid in capital on the Statement of Assets and Liabilities to more appropriately conform U.S. GAAP to tax characterizations of distributions.

(e) New Accounting Pronouncements  In August 2016, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”), ASU 2016-15, which amends Accounting Standards Codification (“ASC”) 230 to clarify guidance on the classification of certain cash receipts and cash payments in the Statement of Cash Flows. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In November 2016, the FASB issued ASU 2016-18 which amends ASC 230 to provide guidance on the classification and presentation of changes in restricted cash and restricted cash equivalents on the Statement of Cash Flows. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In March 2017, the FASB issued ASU 2017-08 which provides guidance related to the amortization period for certain purchased callable debt securities held at a premium. The ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In August 2018, the FASB issued ASU 2018-13 which modifies certain disclosure requirements for fair value measurements in ASC 820. The ASU is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. At this time, management has elected to early adopt the amendments that allow for removal of certain disclosure requirements. Management plans to adopt the amendments that require additional fair value measurement disclosures for annual periods beginning after December 15, 2019, and interim periods within those annual periods. Management is currently evaluating the impact of these changes on the financial statements.

In August 2018, the U.S. Securities and Exchange Commission (“SEC”) adopted amendments to certain rules and forms for the purpose of disclosure update and simplification. The compliance date for these

ANNUAL REPORT DECEMBER 31, 2018 25

Notes to Financial Statements (Cont.)

amendments is 30 days after date of publication in the Federal Register, which was on October 4, 2018. Management has adopted these amendments and the changes are incorporated throughout all periods presented in the financial statements.

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

(a) Investment Valuation Policies  The price of the Portfolio’s shares is based on the Portfolio’s NAV. The NAV of the Portfolio, or each of its share classes, as applicable, is determined by dividing the total value of portfolio investments and other assets, less any liabilities attributable to the Portfolio or class, by the total number of shares outstanding of the Portfolio or class.

On each day that the New York Stock Exchange (“NYSE”) is open, Portfolio shares are ordinarily valued as of the close of regular trading (“NYSE Close”). Information that becomes known to the Portfolio or its agents after the time as of which NAV has been calculated on a particular day will not generally be used to retroactively adjust the price of a security or the NAV determined earlier that day. The Portfolio reserves the right to change the time as of which its NAV is calculated if the Portfolio closes earlier, or as permitted by the SEC.

For purposes of calculating a NAV, portfolio securities and other assets for which market quotes are readily available are valued at market value. Market value is generally determined on the basis of official closing prices or the last reported sales prices, or if no sales are reported, based on quotes obtained from established market makers or prices (including evaluated prices) supplied by the Portfolio’s approved pricing services, quotation reporting systems and other third-party sources (together, “Pricing Services”). The Portfolio will normally use pricing data for domestic equity securities received shortly after the NYSE Close and does not normally take into account trading, clearances or settlements that take place after the NYSE Close. If market value pricing is used, a foreign (non-U.S.) equity security traded on a foreign exchange or on more than one exchange is typically valued using pricing information from the exchange considered by the Adviser to be the primary exchange. A foreign (non-U.S.) equity security will be valued as of the close of trading on the foreign exchange, or the NYSE Close, if the NYSE Close occurs before the end of trading on the foreign exchange. Domestic and foreign (non-U.S.) fixed income securities, non-exchange traded derivatives, and equity options are normally valued on the basis of quotes obtained from brokers and dealers or Pricing Services using data reflecting the earlier closing of the principal markets for those securities. Prices obtained from Pricing Services may be based on, among other things, information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics.

Certain fixed income securities purchased on a delayed-delivery basis are marked to market daily until settlement at the forward settlement date. Exchange-traded options, except equity options, futures and options on futures are valued at the settlement price determined by the relevant exchange. Swap agreements are valued on the basis of bid quotes obtained from brokers and dealers or market-based prices supplied by Pricing Services. The Portfolio’s investments in open-end management investment companies, other than exchange-traded funds (“ETFs”), are valued at the NAVs of such investments. Open-end management investment companies may include affiliated funds.

If a foreign (non-U.S.) equity security’s value has materially changed after the close of the security’s primary exchange or principal market but before the NYSE Close, the security may be valued at fair value based on procedures established and approved by the Board of Trustees of the Trust (the “Board”). Foreign (non-U.S.) equity securities that do not trade when the NYSE is open are also valued at fair value. With respect to foreign (non-U.S.) equity securities, the Portfolio may determine the fair value of investments based on information provided by Pricing Services and other third-party vendors, which may recommend fair value or adjustments with reference to other securities, indices or assets. In considering whether fair valuation is required and in determining fair values, the Portfolio may, among other things, consider significant events (which may be considered to include changes in the value of U.S. securities or securities indices) that occur after the close of the relevant market and before the NYSE Close. The Portfolio may utilize modeling tools provided by third-party vendors to determine fair values of foreign (non-U.S.) securities. For these purposes, any movement in the applicable reference index or instrument (“zero trigger”) between the earlier close of the applicable foreign market and the NYSE Close may be deemed to be a significant event, prompting the application of the pricing model (effectively resulting in daily fair valuations). Foreign exchanges may permit trading in foreign (non-U.S.) equity securities on days when the Trust is not open for business, which may result in the Portfolio’s portfolio investments being affected when shareholders are unable to buy or sell shares.

Senior secured floating rate loans for which an active secondary market exists to a reliable degree will be valued at the mean of the last available bid/ask prices in the market for such loans, as provided by a Pricing Service. Senior secured floating rate loans for which an active secondary market does not exist to a reliable degree will be valued at fair value, which is intended to approximate market value. In valuing a senior secured floating rate loan at fair value, the factors considered may include, but are not limited to, the following: (a) the creditworthiness of the borrower and any intermediate participants, (b) the terms of the loan, (c) recent prices in the market for similar

26 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

loans, if any, and (d) recent prices in the market for instruments of similar quality, rate, period until next interest rate reset and maturity.

Investments valued in currencies other than the U.S. dollar are converted to the U.S. dollar using exchange rates obtained from Pricing Services. As a result, the value of such investments and, in turn, the NAV of the Portfolio’s shares may be affected by changes in the value of currencies in relation to the U.S. dollar. The value of investments traded in markets outside the United States or denominated in currencies other than the U.S. dollar may be affected significantly on a day that the Trust is not open for business. As a result, to the extent that the Portfolio holds foreign (non-U.S.) investments, the value of those investments may change at times when shareholders are unable to buy or sell shares and the value of such investments will be reflected in the Portfolio’s next calculated NAV.

Investments for which market quotes or market based valuations are not readily available are valued at fair value as determined in good faith by the Board or persons acting at their direction. The Board has adopted methods for valuing securities and other assets in circumstances where market quotes are not readily available, and has delegated to the Adviser the responsibility for applying the fair valuation methods. In the event that market quotes or market based valuations are not readily available, and the security or asset cannot be valued pursuant to a Board approved valuation method, the value of the security or asset will be determined in good faith by the Board. Market quotes are considered not readily available in circumstances where there is an absence of current or reliable market-based data (e.g., trade information, bid/ask information, indicative market quotations (“Broker Quotes”), Pricing Services’ prices), including where events occur after the close of the relevant market, but prior to the NYSE Close, that materially affect the values of the Portfolio’s securities or assets. In addition, market quotes are considered not readily available when, due to extraordinary circumstances, the exchanges or markets on which the securities trade do not open for trading for the entire day and no other market prices are available. The Board has delegated, to the Adviser, the responsibility for monitoring significant events that may materially affect the values of the Portfolio’s securities or assets and for determining whether the value of the applicable securities or assets should be reevaluated in light of such significant events.

When the Portfolio uses fair valuation to determine the value of a portfolio security or other asset for purposes of calculating its NAV, such investments will not be priced on the basis of quotes from the primary market in which they are traded, but rather may be priced by another method that the Board or persons acting at their direction believe reflects fair value. Fair valuation may require subjective determinations about the value of a security. While the Trust’s policy is intended to result in a calculation of the Portfolio’s NAV that fairly reflects security values as of the time of pricing, the Trust cannot ensure

that fair values determined by the Board or persons acting at their direction would accurately reflect the price that the Portfolio could obtain for a security if it were to dispose of that security as of the time of pricing (for instance, in a forced or distressed sale). The prices used by the Portfolio may differ from the value that would be realized if the securities were sold. The Portfolio’s use of fair valuation may also help to deter “stale price arbitrage” as discussed under the “Frequent or Excessive Purchases, Exchanges and Redemptions” section in the Portfolio’s prospectus.

(b) Fair Value Hierarchy  U.S. GAAP describes fair value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into levels (Level 1, 2, or 3). The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Levels 1, 2, and 3 of the fair value hierarchy are defined as follows:

^∎  Level 1 — Quoted prices in active markets or exchanges for identical assets and liabilities.

^∎  Level 2 — Significant other observable inputs, which may include, but are not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market corroborated inputs.

^∎  Level 3 — Significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, which may include assumptions made by the Board or persons acting at their direction that are used in determining the fair value of investments.

In accordance with the requirements of U.S. GAAP, the amounts of transfers into and out of Level 3, if material, are disclosed in the Notes to Schedule of Investments for the Portfolio.

For fair valuations using significant unobservable inputs, U.S. GAAP requires a reconciliation of the beginning to ending balances for reported fair values that presents changes attributable to realized gain (loss), unrealized appreciation (depreciation), purchases and sales, accrued discounts (premiums), and transfers into and out of the Level 3 category during the period. The end of period value is used for the transfers between Levels of the Portfolio’s assets and liabilities. Additionally, U.S. GAAP requires quantitative information regarding the

ANNUAL REPORT DECEMBER 31, 2018 27

Notes to Financial Statements (Cont.)

significant unobservable inputs used in the determination of fair value of assets or liabilities categorized as Level 3 in the fair value hierarchy. In accordance with the requirements of U.S. GAAP, a fair value hierarchy, and if material, a Level 3 reconciliation and details of significant unobservable inputs, have been included in the Notes to Schedule of Investments for the Portfolio.

(c) Valuation Techniques and the Fair Value Hierarchy Level 1 and Level 2 trading assets and trading liabilities, at fair value  The valuation methods (or “techniques”) and significant inputs used in determining the fair values of portfolio securities or other assets and liabilities categorized as Level 1 and Level 2 of the fair value hierarchy are as follows:

Fixed income securities including corporate, convertible and municipal bonds and notes, U.S. government agencies, U.S. treasury obligations, sovereign issues, bank loans, convertible preferred securities and non-U.S. bonds are normally valued on the basis of quotes obtained from brokers and dealers or Pricing Services that use broker-dealer quotations, reported trades or valuation estimates from their internal pricing models. The Pricing Services’ internal models use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar assets. Securities that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

Fixed income securities purchased on a delayed-delivery basis or as a repurchase commitment in a sale-buyback transaction are marked to market daily until settlement at the forward settlement date and are categorized as Level 2 of the fair value hierarchy.

Mortgage-related and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also normally valued by Pricing Services that use broker-dealer quotations, reported trades or valuation estimates from their internal pricing models. The pricing models for these securities usually consider tranche-level attributes, current market data, estimated cash flows and market-based yield spreads for each tranche, and incorporate deal collateral performance, as available. Mortgage-related and asset-backed securities that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

Common stocks, ETFs, exchange-traded notes and financial derivative instruments, such as futures contracts, rights and warrants, or options on futures that are traded on a national securities exchange, are stated at the last reported sale or settlement price on the day of valuation. To the extent these securities are actively traded and valuation adjustments are not applied, they are categorized as Level 1 of the fair value hierarchy.

Valuation adjustments may be applied to certain securities that are solely traded on a foreign exchange to account for the market movement between the close of the foreign market and the NYSE Close. These securities are valued using Pricing Services that consider the correlation of the trading patterns of the foreign security to the intraday trading in the U.S. markets for investments. Securities using these valuation adjustments are categorized as Level 2 of the fair value hierarchy. Preferred securities and other equities traded on inactive markets or valued by reference to similar instruments are also categorized as Level 2 of the fair value hierarchy.

Investments in registered open-end investment companies (other than ETFs) will be valued based upon the NAVs of such investments and are categorized as Level 1 of the fair value hierarchy. Investments in unregistered open-end investment companies will be calculated based upon the NAVs of such investments and are considered Level 1 provided that the NAVs are observable, calculated daily and are the value at which both purchases and sales will be conducted.

Equity exchange-traded options and over the counter financial derivative instruments, such as forward foreign currency contracts and options contracts derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors. These contracts are normally valued on the basis of quotes obtained from a quotation reporting system, established market makers or Pricing Services (normally determined as of the NYSE Close). Depending on the product and the terms of the transaction, financial derivative instruments can be valued by Pricing Services using a series of techniques, including simulation pricing models. The pricing models use inputs that are observed from actively quoted markets such as quoted prices, issuer details, indices, bid/ask spreads, interest rates, implied volatilities, yield curves, dividends and exchange rates. Financial derivative instruments that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

Centrally cleared swaps and over the counter swaps derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors. They are valued using a broker-dealer bid quotation or on market-based prices provided by Pricing Services (normally determined as of the NYSE close). Centrally cleared swaps and over the counter swaps can be valued by Pricing Services using a series of techniques, including simulation pricing models. The pricing models may use inputs that are observed from actively quoted markets such as the overnight index swap rate (“OIS”), London Interbank Offered Rate (“LIBOR”) forward rate, interest rates, yield curves and credit spreads. These securities are categorized as Level 2 of the fair value hierarchy.

28 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

Level 3 trading assets and trading liabilities, at fair value  When a fair valuation method is applied by the Adviser that uses significant unobservable inputs, investments will be priced by a method that the Board or persons acting at their direction believe reflects fair value and are categorized as Level 3 of the fair value hierarchy.

Short-term debt instruments (such as commercial paper) having a remaining maturity of 60 days or less may be valued at amortized cost, so long as the amortized cost value of such short-term debt instruments is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. These securities are categorized as Level 2 or Level 3 of the fair value hierarchy depending on the source of the base price.

4. SECURITIES AND OTHER INVESTMENTS

(a) Investments in Affiliates

The Portfolio may invest in the PIMCO Short Asset Portfolio and the PIMCO Short-Term Floating NAV Portfolio III (“Central Funds”) to the extent permitted by the Act and rules thereunder. The Central Funds are registered investment companies created for use solely by the series of the Trust and other series of registered investment companies advised by the Adviser, in connection with their cash management activities. The main investments of the Central Funds are money market and short maturity fixed income instruments. The Central Funds may incur expenses related to their investment activities, but do not pay Investment Advisory Fees or Supervisory and Administrative Fees to the Adviser. The Central Funds are considered to be affiliated with the Portfolio. The table below shows the Portfolio’s transactions in and earnings from investments in the affiliated Funds for the period ended December 31, 2018 (amounts in thousands^†):

Investment in PIMCO Short-Term Floating NAV Portfolio III

Market Value 12/31/2017		Purchases at Cost		Proceeds from Sales			Net Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)			Market Value 12/31/2018		Dividend Income(1)		Realized Net Capital Gain Distributions(1)
$	7,212	$	318,040	$	(323,100	)	$	4	$	(1	)	$	2,155	$	139	$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽¹⁾  The tax characterization of distributions is determined in accordance with Federal income tax regulations and may contain a return of capital. The actual tax characterization of distributions received is determined at the end of the fiscal year of the affiliated fund. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

(b) Investments in Securities

The Portfolio may utilize the investments and strategies described below to the extent permitted by the Portfolio’s investment policies.

Inflation-Indexed Bonds  are fixed income securities whose principal value is periodically adjusted by the rate of inflation. The interest rate on these bonds is generally fixed at issuance at a rate lower than typical bonds. Over the life of an inflation-indexed bond, however, interest will be paid based on a principal value which is adjusted for inflation. Any increase or decrease in the principal amount of an inflation-indexed bond will be included as interest income on the Statement of Operations, even though investors do not receive their principal until maturity. Repayment of the original bond principal upon maturity (as adjusted for inflation) is guaranteed in the case of U.S. Treasury Inflation-Protected Securities (“TIPS”). For bonds that do not provide a similar guarantee, the adjusted principal value of the bond repaid at maturity may be less than the original principal.

Loans and Other Indebtedness, Loan Participations and Assignments  are direct debt instruments which are interests in amounts owed to lenders or lending syndicates by corporate, governmental, or other borrowers. The Portfolio’s investments in loans

may be in the form of participations in loans or assignments of all or a portion of loans from third parties or investments in or originations of loans by the Portfolio. A loan is often administered by a bank or other financial institution (the “agent”) that acts as agent for all holders. The agent administers the terms of the loan, as specified in the loan agreement. The Portfolio may invest in multiple series or tranches of a loan, which may have varying terms and carry different associated risks. When the Portfolio purchases assignments from agents it acquires direct rights against the borrowers of the loans. These loans may include participations in bridge loans, which are loans taken out by borrowers for a short period (typically less than one year) pending arrangement of more permanent financing through, for example, the issuance of bonds, frequently high yield bonds issued for the purpose of acquisitions.

The types of loans and related investments in which the Portfolio may invest include, among others, senior loans, subordinated loans (including second lien loans, B-Notes and mezzanine loans), whole loans, commercial real estate and other commercial loans and structured loans. The Portfolio may originate loans or acquire direct interests in loans through primary loan distributions and/or in private transactions. In the case of subordinated loans, there may be

ANNUAL REPORT DECEMBER 31, 2018 29

Notes to Financial Statements (Cont.)

significant indebtedness ranking ahead of the borrower’s obligation to the holder of such a loan, including in the event of the borrower’s insolvency. Mezzanine loans are typically secured by a pledge of an equity interest in the mortgage borrower that owns the real estate rather than an interest in a mortgage.

Investments in loans may include unfunded loan commitments, which are contractual obligations for funding. Unfunded loan commitments may include revolving credit facilities, which may obligate the Portfolio to supply additional cash to the borrower on demand. Unfunded loan commitments represent a future obligation in full, even though a percentage of the committed amount may not be utilized by the borrower. When investing in a loan participation, the Portfolio has the right to receive payments of principal, interest and any fees to which it is entitled only from the agent selling the loan agreement and only upon receipt of payments by the agent from the borrower. The Portfolio may receive a commitment fee based on the undrawn portion of the underlying line of credit portion of a loan. In certain circumstances, the Portfolio may receive a penalty fee upon the prepayment of a loan by a borrower. Fees earned or paid are recorded as a component of interest income or interest expense, respectively, on the Statement of Operations. Unfunded loan commitments are reflected as a liability on the Statement of Assets and Liabilities.

Mortgage-Related and Other Asset-Backed Securities  directly or indirectly represent a participation in, or are secured by and payable from, loans on real property. Mortgage-related securities are created from pools of residential or commercial mortgage loans, including mortgage loans made by savings and loan institutions, mortgage bankers, commercial banks and others. These securities provide a monthly payment which consists of both interest and principal. Interest may be determined by fixed or adjustable rates. The rate of prepayments on underlying mortgages will affect the price and volatility of a mortgage-related security, and may have the effect of shortening or extending the effective duration of the security relative to what was anticipated at the time of purchase. The timely payment of principal and interest of certain mortgage-related securities is guaranteed with the full faith and credit of the U.S. Government. Pools created and guaranteed by non-governmental issuers, including government-sponsored corporations, may be supported by various forms of insurance or guarantees, but there can be no assurance that private insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Many of the risks of investing in mortgage-related securities secured by commercial mortgage loans reflect the effects of local and other economic conditions on real estate markets, the ability of tenants to make lease payments, and the ability of a property to attract and retain tenants. These securities may be less liquid and may exhibit greater price volatility than other types of

mortgage-related or other asset-backed securities. Other asset-backed securities are created from many types of assets, including, but not limited to, auto loans, accounts receivable, such as credit card receivables and hospital account receivables, home equity loans, student loans, boat loans, mobile home loans, recreational vehicle loans, manufactured housing loans, aircraft leases, computer leases and syndicated bank loans.

Collateralized Debt Obligations  (“CDOs”) include Collateralized Bond Obligations (“CBOs”), Collateralized Loan Obligations (“CLOs”) and other similarly structured securities. CBOs and CLOs are types of asset-backed securities. A CBO is a trust which is backed by a diversified pool of high risk, below investment grade fixed income securities. A CLO is a trust typically collateralized by a pool of loans, which may include, among others, domestic and foreign senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated below investment grade or equivalent unrated loans. The risks of an investment in a CDO depend largely on the type of the collateral securities and the class of the CDO in which the Portfolio invests. In addition to the normal risks associated with fixed income securities discussed elsewhere in this report and the Portfolio’s prospectus and statement of additional information (e.g., prepayment risk, credit risk, liquidity risk, market risk, structural risk, legal risk and interest rate risk (which may be exacerbated if the interest rate payable on a structured financing changes based on multiples of changes in interest rates or inversely to changes in interest rates)), CBOs, CLOs and other CDOs carry additional risks including, but not limited to, (i) the possibility that distributions from collateral securities will not be adequate to make interest or other payments, (ii) the quality of the collateral may decline in value or default, (iii) the risk that the Portfolio may invest in CBOs, CLOs, or other CDOs that are subordinate to other classes, and (iv) the complex structure of the security may not be fully understood at the time of investment and may produce disputes with the issuer or unexpected investment results.

Collateralized Mortgage Obligations  (“CMOs”) are debt obligations of a legal entity that are collateralized by whole mortgage loans or private mortgage bonds and divided into classes. CMOs are structured into multiple classes, often referred to as “tranches”, with each class bearing a different stated maturity and entitled to a different schedule for payments of principal and interest, including prepayments. CMOs may be less liquid and may exhibit greater price volatility than other types of mortgage-related or asset-backed securities.

Perpetual Bonds  are fixed income securities with no maturity date but pay a coupon in perpetuity (with no specified ending or maturity date). Unlike typical fixed income securities, there is no obligation for perpetual bonds to repay principal. The coupon payments, however, are mandatory. While perpetual bonds have no maturity date, they may

30 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

have a callable date in which the perpetuity is eliminated and the issuer may return the principal received on the specified call date. Additionally, a perpetual bond may have additional features, such as interest rate increases at periodic dates or an increase as of a predetermined point in the future.

Restricted Investments  are subject to legal or contractual restrictions on resale and may generally be sold privately, but may be required to be registered or exempted from such registration before being sold to the public. Private placement securities are generally considered to be restricted except for those securities traded between qualified institutional investors under the provisions of Rule 144A of the Securities Act of 1933. Disposal of restricted investments may involve time-consuming negotiations and expenses, and prompt sale at an acceptable price may be difficult to achieve. Restricted investments held by the Portfolio at December 31, 2018 are disclosed in the Notes to Schedule of Investments.

Securities Issued by U.S. Government Agencies or Government-Sponsored Enterprises  are obligations of and, in certain cases, guaranteed by, the U.S. Government, its agencies or instrumentalities. Some U.S. Government securities, such as Treasury bills, notes and bonds, and securities guaranteed by the Government National Mortgage Association (“GNMA” or “Ginnie Mae”), are supported by the full faith and credit of the U.S. Government; others, such as those of the Federal Home Loan Banks, are supported by the right of the issuer to borrow from the U.S. Department of the Treasury (the “U.S. Treasury”); and others, such as those of the Federal National Mortgage Association (“FNMA” or “Fannie Mae”), are supported by the discretionary authority of the U.S. Government to purchase the agency’s obligations. U.S. Government securities may include zero coupon securities. Zero coupon securities do not distribute interest on a current basis and tend to be subject to a greater risk than interest-paying securities.

Government-related guarantors (i.e., not backed by the full faith and credit of the U.S. Government) include FNMA and the Federal Home Loan Mortgage Corporation (“FHLMC” or “Freddie Mac”). FNMA is a government-sponsored corporation. FNMA purchases conventional (i.e., not insured or guaranteed by any government agency) residential mortgages from a list of approved seller/servicers which include state and federally chartered savings and loan associations, mutual savings banks, commercial banks and credit unions and mortgage bankers. Pass-through securities issued by FNMA are guaranteed as to timely payment of principal and interest by FNMA, but are not backed by the full faith and credit of the U.S. Government. FHLMC issues Participation Certificates (“PCs”), which are pass-through securities, each representing an undivided interest in a pool of residential mortgages. FHLMC guarantees the timely payment of interest and ultimate

collection of principal, but PCs are not backed by the full faith and credit of the U.S. Government.

When-Issued Transactions  are purchases or sales made on a when-issued basis. These transactions are made conditionally because a security, although authorized, has not yet been issued in the market. Transactions to purchase or sell securities on a when-issued basis involve a commitment by the Portfolio to purchase or sell these securities for a predetermined price or yield, with payment and delivery taking place beyond the customary settlement period. The Portfolio may sell when-issued securities before they are delivered, which may result in a realized gain (loss).

5. BORROWINGS AND OTHER FINANCING TRANSACTIONS

The Portfolio may enter into the borrowings and other financing transactions described below to the extent permitted by the Portfolio’s investment policies.

The following disclosures contain information on the Portfolio’s ability to lend or borrow cash or securities to the extent permitted under the Act, which may be viewed as borrowing or financing transactions by the Portfolio. The location of these instruments in the Portfolio’s financial statements is described below.

(a) Repurchase Agreements  Under the terms of a typical repurchase agreement, the Portfolio purchases an underlying debt obligation (collateral) subject to an obligation of the seller to repurchase, and the Portfolio to resell, the obligation at an agreed-upon price and time. In an open maturity repurchase agreement, there is no pre-determined repurchase date and the agreement can be terminated by the Portfolio or counterparty at any time. The underlying securities for all repurchase agreements are held by the Portfolio’s custodian or designated subcustodians under tri-party repurchase agreements and in certain instances will remain in custody with the counterparty. The market value of the collateral must be equal to or exceed the total amount of the repurchase obligations, including interest. Repurchase agreements, if any, including accrued interest, are included on the Statement of Assets and Liabilities. Interest earned is recorded as a component of interest income on the Statement of Operations. In periods of increased demand for collateral, the Portfolio may pay a fee for the receipt of collateral, which may result in interest expense to the Portfolio.

(b) Reverse Repurchase Agreements  In a reverse repurchase agreement, the Portfolio delivers a security in exchange for cash to a financial institution, the counterparty, with a simultaneous agreement to repurchase the same or substantially the same security at an agreed upon price and date. In an open maturity reverse repurchase agreement, there is no pre-determined repurchase date and the agreement can be

ANNUAL REPORT DECEMBER 31, 2018 31

Notes to Financial Statements (Cont.)

terminated by the Portfolio or counterparty at any time. The Portfolio is entitled to receive principal and interest payments, if any, made on the security delivered to the counterparty during the term of the agreement. Cash received in exchange for securities delivered plus accrued interest payments to be made by the Portfolio to counterparties are reflected as a liability on the Statement of Assets and Liabilities. Interest payments made by the Portfolio to counterparties are recorded as a component of interest expense on the Statement of Operations. In periods of increased demand for the security, the Portfolio may receive a fee for use of the security by the counterparty, which may result in interest income to the Portfolio. The Portfolio will segregate assets determined to be liquid by the Adviser or will otherwise cover its obligations under reverse repurchase agreements.

(c) Sale-Buybacks  A sale-buyback financing transaction consists of a sale of a security by the Portfolio to a financial institution, the counterparty, with a simultaneous agreement to repurchase the same or substantially the same security at an agreed-upon price and date. The Portfolio is not entitled to receive principal and interest payments, if any, made on the security sold to the counterparty during the term of the agreement. The agreed-upon proceeds for securities to be repurchased by the Portfolio are reflected as a liability on the Statement of Assets and Liabilities. The Portfolio will recognize net income represented by the price differential between the price received for the transferred security and the agreed-upon repurchase price. This is commonly referred to as the ‘price drop’. A price drop consists of (i) the foregone interest and inflationary income adjustments, if any, the Portfolio would have otherwise received had the security not been sold and (ii) the negotiated financing terms between the Portfolio and counterparty. Foregone interest and inflationary income adjustments, if any, are recorded as components of interest income on the Statement of Operations. Interest payments based upon negotiated financing terms made by the Portfolio to counterparties are recorded as a component of interest expense on the Statement of Operations. In periods of increased demand for the security, the Portfolio may receive a fee for use of the security by the counterparty, which may result in interest income to the Portfolio. The Portfolio will segregate assets determined to be liquid by the Adviser or will otherwise cover its obligations under sale-buyback transactions.

(d) Short Sales  Short sales are transactions in which the Portfolio sells a security that it may not own. The Portfolio may make short sales of securities to (i) offset potential declines in long positions in similar securities, (ii) to increase the flexibility of the Portfolio, (iii) for investment return, (iv) as part of a risk arbitrage strategy, and (v) as part of its overall portfolio management strategies involving the use of derivative instruments. When the Portfolio engages in a short sale, it may borrow the security sold short and deliver it to the counterparty. The Portfolio will

ordinarily have to pay a fee or premium to borrow a security and be obligated to repay the lender of the security any dividend or interest that accrues on the security during the period of the loan. Securities sold in short sale transactions and the dividend or interest payable on such securities, if any, are reflected as payable for short sales on the Statement of Assets and Liabilities. Short sales expose the Portfolio to the risk that it will be required to cover its short position at a time when the security or other asset has appreciated in value, thus resulting in losses to the Portfolio. A short sale is “against the box” if the Portfolio holds in its portfolio or has the right to acquire the security sold short, or securities identical to the security sold short, at no additional cost. The Portfolio will be subject to additional risks to the extent that it engages in short sales that are not “against the box.” The Portfolio’s loss on a short sale could theoretically be unlimited in cases where the Portfolio is unable, for whatever reason, to close out its short position.

6. FINANCIAL DERIVATIVE INSTRUMENTS

The Portfolio may enter into the financial derivative instruments described below to the extent permitted by the Portfolio’s investment policies.

The following disclosures contain information on how and why the Portfolio uses financial derivative instruments, and how financial derivative instruments affect the Portfolio’s financial position, results of operations and cash flows. The location and fair value amounts of these instruments on the Statement of Assets and Liabilities and the net realized gain (loss) and net change in unrealized appreciation (depreciation) on the Statement of Operations, each categorized by type of financial derivative contract and related risk exposure, are included in a table in the Notes to Schedule of Investments. The financial derivative instruments outstanding as of period end and the amounts of net realized gain (loss) and net change in unrealized appreciation (depreciation) on financial derivative instruments during the period, as disclosed in the Notes to Schedule of Investments, serve as indicators of the volume of financial derivative activity for the Portfolio.

(a) Forward Foreign Currency Contracts  may be engaged, in connection with settling planned purchases or sales of securities, to hedge the currency exposure associated with some or all of the Portfolio’s securities or as part of an investment strategy. A forward foreign currency contract is an agreement between two parties to buy and sell a currency at a set price on a future date. The market value of a forward foreign currency contract fluctuates with changes in foreign currency exchange rates. Forward foreign currency contracts are marked to market daily, and the change in value is recorded by the Portfolio as an unrealized gain (loss). Realized gains (losses) are equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed and are recorded upon delivery or receipt of the currency. These contracts may involve market

32 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

risk in excess of the unrealized gain (loss) reflected on the Statement of Assets and Liabilities. In addition, the Portfolio could be exposed to risk if the counterparties are unable to meet the terms of the contracts or if the value of the currency changes unfavorably to the U.S. dollar. To mitigate such risk, cash or securities may be exchanged as collateral pursuant to the terms of the underlying contracts.

(b) Futures Contracts  are agreements to buy or sell a security or other asset for a set price on a future date. The Portfolio may use futures contracts to manage its exposure to the securities markets or to movements in interest rates and currency values. The primary risks associated with the use of futures contracts are the imperfect correlation between the change in market value of the securities held by the Portfolio and the prices of futures contracts and the possibility of an illiquid market. Futures contracts are valued based upon their quoted daily settlement prices. Upon entering into a futures contract, the Portfolio is required to deposit with its futures broker an amount of cash, U.S. Government and Agency Obligations, or select sovereign debt, in accordance with the initial margin requirements of the broker or exchange. Futures contracts are marked to market daily and based on such movements in the price of the contracts, an appropriate payable or receivable for the change in value may be posted or collected by the Portfolio (“Futures Variation Margin”). Gains (losses) are recognized but not considered realized until the contracts expire or close. Futures contracts involve, to varying degrees, risk of loss in excess of the Futures Variation Margin included within exchange traded or centrally cleared financial derivative instruments on the Statement of Assets and Liabilities.

(c) Options Contracts  may be written or purchased to enhance returns or to hedge an existing position or future investment. The Portfolio may write call and put options on securities and financial derivative instruments it owns or in which it may invest. Writing put options tends to increase the Portfolio’s exposure to the underlying instrument. Writing call options tends to decrease the Portfolio’s exposure to the underlying instrument. When the Portfolio writes a call or put, an amount equal to the premium received is recorded and subsequently marked to market to reflect the current value of the option written. These amounts are included on the Statement of Assets and Liabilities. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options which are exercised or closed are added to the proceeds or offset against amounts paid on the underlying futures, swap, security or currency transaction to determine the realized gain (loss). Certain options may be written with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. The Portfolio as a writer of an option has no control over whether the underlying instrument may be sold

(“call”) or purchased (“put”) and as a result bears the market risk of an unfavorable change in the price of the instrument underlying the written option. There is the risk the Portfolio may not be able to enter into a closing transaction because of an illiquid market.

Purchasing call options tends to increase the Portfolio’s exposure to the underlying instrument. Purchasing put options tends to decrease the Portfolio’s exposure to the underlying instrument. The Portfolio pays a premium which is included as an asset on the Statement of Assets and Liabilities and subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options which expire are treated as realized losses. Certain options may be purchased with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. The risk associated with purchasing put and call options is limited to the premium paid. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the underlying investment transaction to determine the realized gain (loss) when the underlying transaction is executed.

Credit Default Swaptions  may be written or purchased to hedge exposure to the credit risk of an investment without making a commitment to the underlying instrument. A credit default swaption is an option to sell or buy credit protection on a specific reference by entering into a pre-defined swap agreement by some specified date in the future.

Interest Rate Swaptions  may be written or purchased to enter into a pre-defined swap agreement or to shorten, extend, cancel or otherwise modify an existing swap agreement, by some specified date in the future. The writer of the swaption becomes the counterparty to the swap if the buyer exercises. The interest rate swaption agreement will specify whether the buyer of the swaption will be a fixed-rate receiver or a fixed-rate payer upon exercise.

Options on Exchange-Traded Futures Contracts  (“Futures Option”) may be written or purchased to hedge an existing position or future investment, for speculative purposes or to manage exposure to market movements. A Futures Option is an option contract in which the underlying instrument is a single futures contract.

(d) Swap Agreements  are bilaterally negotiated agreements between the Portfolio and a counterparty to exchange or swap investment cash flows, assets, foreign currencies or market-linked returns at specified, future intervals. Swap agreements may be privately negotiated in the over the counter market (“OTC swaps”) or may be cleared through a third party, known as a central counterparty or derivatives clearing organization (“Centrally Cleared Swaps”). The Portfolio may enter into asset, credit default, cross-currency, interest rate, total return, variance

ANNUAL REPORT DECEMBER 31, 2018 33

Notes to Financial Statements (Cont.)

and other forms of swap agreements to manage its exposure to credit, currency, interest rate, commodity, equity and inflation risk. In connection with these agreements, securities or cash may be identified as collateral or margin in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default or bankruptcy/insolvency.

Centrally Cleared Swaps are marked to market daily based upon valuations as determined from the underlying contract or in accordance with the requirements of the central counterparty or derivatives clearing organization. Changes in market value, if any, are reflected as a component of net change in unrealized appreciation (depreciation) on the Statement of Operations. Daily changes in valuation of centrally cleared swaps (“Swap Variation Margin”), if any, are disclosed within centrally cleared financial derivative instruments on the Statement of Assets and Liabilities. Centrally Cleared and OTC swap payments received or paid at the beginning of the measurement period are included on the Statement of Assets and Liabilities and represent premiums paid or received upon entering into the swap agreement to compensate for differences between the stated terms of the swap agreement and prevailing market conditions (credit spreads, currency exchange rates, interest rates, and other relevant factors). Upfront premiums received (paid) are initially recorded as liabilities (assets) and subsequently marked to market to reflect the current value of the swap. These upfront premiums are recorded as realized gain (loss) on the Statement of Operations upon termination or maturity of the swap. A liquidation payment received or made at the termination of the swap is recorded as realized gain (loss) on the Statement of Operations. Net periodic payments received or paid by the Portfolio are included as part of realized gain (loss) on the Statement of Operations.

For purposes of applying certain of the Portfolio’s investment policies and restrictions, swap agreements, like other derivative instruments, may be valued by the Portfolio at market value, notional value or full exposure value. In the case of a credit default swap, in applying certain of the Portfolio’s investment policies and restrictions, the Portfolio will value the credit default swap at its notional value or its full exposure value (i.e., the sum of the notional amount for the contract plus the market value), but may value the credit default swap at market value for purposes of applying certain of the Portfolio’s other investment policies and restrictions. For example, the Portfolio may value credit default swaps at full exposure value for purposes of the Portfolio’s credit quality guidelines (if any) because such value in general better reflects the Portfolio’s actual economic exposure during the term of the credit default swap agreement. As a result, the Portfolio may, at times, have notional exposure to an asset class (before netting) that is greater or lesser than the stated limit or restriction noted in the Portfolio’s prospectus. In this context, both the notional amount and the market

value may be positive or negative depending on whether the Portfolio is selling or buying protection through the credit default swap. The manner in which certain securities or other instruments are valued by the Portfolio for purposes of applying investment policies and restrictions may differ from the manner in which those investments are valued by other types of investors.

Entering into swap agreements involves, to varying degrees, elements of interest, credit, market and documentation risk in excess of the amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of contractual terms in the agreements and that there may be unfavorable changes in interest rates or the values of the asset upon which the swap is based.

The Portfolio’s maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from the counterparty over the contract’s remaining life, to the extent that amount is positive. The risk may be mitigated by having a master netting arrangement between the Portfolio and the counterparty and by the posting of collateral to the Portfolio to cover the Portfolio’s exposure to the counterparty.

To the extent the Portfolio has a policy to limit the net amount owed to or to be received from a single counterparty under existing swap agreements, such limitation only applies to counterparties to OTC swaps and does not apply to centrally cleared swaps where the counterparty is a central counterparty or derivatives clearing organization.

Credit Default Swap Agreements  on corporate, loan, sovereign, U.S. municipal or U.S. Treasury issues are entered into to provide a measure of protection against defaults of the issuers (i.e., to reduce risk where the Portfolio owns or has exposure to the referenced obligation) or to take an active long or short position with respect to the likelihood of a particular issuer’s default. Credit default swap agreements involve one party making a stream of payments (referred to as the buyer of protection) to another party (the seller of protection) in exchange for the right to receive a specified return in the event that the referenced entity, obligation or index, as specified in the swap agreement, undergoes a certain credit event. As a seller of protection on credit default swap agreements, the Portfolio will generally receive from the buyer of protection a fixed rate of income throughout the term of the swap provided that there is no credit event. As the seller, the Portfolio would effectively add leverage to its portfolio because, in addition to its total net assets, the Portfolio would be subject to investment exposure on the notional amount of the swap.

34 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. If the Portfolio is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. Recovery values are estimated by market makers considering either industry standard recovery rates or entity specific factors and considerations until a credit event occurs. If a credit event has occurred, the recovery value is determined by a facilitated auction whereby a minimum number of allowable broker bids, together with a specified valuation method, are used to calculate the settlement value. The ability to deliver other obligations may result in a cheapest-to-deliver option (the buyer of protection’s right to choose the deliverable obligation with the lowest value following a credit event).

Credit default swap agreements on credit indices involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising the credit index. A credit index is a basket of credit instruments or exposures designed to be representative of some part of the credit market as a whole. These indices are made up of reference credits that are judged by a poll of dealers to be the most liquid entities in the credit default swap market based on the sector of the index. Components of the indices may include, but are not limited to, investment grade securities, high yield securities, asset-backed securities, emerging markets, and/or various credit ratings within each sector. Credit indices are traded using credit default swaps with standardized terms including a fixed spread and standard maturity dates. An index credit default swap references all the names in the index, and if there is a default, the credit event is settled based on that name’s weight in the index. The composition of the indices changes periodically, usually every six months, and for most indices, each name has an equal weight in the index. The Portfolio may use credit default swaps on credit indices to hedge a portfolio of credit default swaps or bonds, which is less expensive than it would be to buy many credit

default swaps to achieve a similar effect. Credit default swaps on indices are instruments for protecting investors owning bonds against default, and traders use them to speculate on changes in credit quality.

Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate, loan, sovereign, U.S. municipal or U.S. Treasury issues as of period end, if any, are disclosed in the Notes to Schedule of Investments. They serve as an indicator of the current status of payment/performance risk and represent the likelihood or risk of default for the reference entity. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. For credit default swap agreements on asset-backed securities and credit indices, the quoted market prices and resulting values serve as the indicator of the current status of the payment/performance risk. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

The maximum potential amount of future payments (undiscounted) that the Portfolio as a seller of protection could be required to make under a credit default swap agreement equals the notional amount of the agreement. Notional amounts of each individual credit default swap agreement outstanding as of period end for which the Portfolio is the seller of protection are disclosed in the Notes to Schedule of Investments. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Portfolio for the same referenced entity or entities.

Interest Rate Swap Agreements  may be entered into to help hedge against interest rate risk exposure and to maintain the Portfolio’s ability to generate income at prevailing market rates. The value of the fixed rate bonds that the Portfolio holds may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, the Portfolio may enter into interest rate swap agreements. Interest rate swap agreements involve the exchange by the Portfolio with another party for their respective commitment to pay or receive interest on the notional amount of principal. Certain forms of interest rate swap agreements may include: (i) interest rate caps, under which, in return for a premium, one party

ANNUAL REPORT DECEMBER 31, 2018 35

Notes to Financial Statements (Cont.)

agrees to make payments to the other to the extent that interest rates exceed a specified rate, or “cap”, (ii) interest rate floors, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates fall below a specified rate, or “floor”, (iii) interest rate collars, under which a party sells a cap and purchases a floor or vice versa in an attempt to protect itself against interest rate movements exceeding given minimum or maximum levels, (iv) callable interest rate swaps, under which the buyer pays an upfront fee in consideration for the right to early terminate the swap transaction in whole, at zero cost and at a predetermined date and time prior to the maturity date, (v) spreadlocks, which allow the interest rate swap users to lock in the forward differential (or spread) between the interest rate swap rate and a specified benchmark, or (vi) basis swaps, under which two parties can exchange variable interest rates based on different segments of money markets.

7. PRINCIPAL RISKS

The principal risks of investing in the Portfolio, which could adversely affect its net asset value, yield and total return, are listed below. Please see “Description of Principal Risks” in the Portfolio’s prospectus for a more detailed description of the risks of investing in the Portfolio.

Interest Rate Risk  is the risk that fixed income securities will decline in value because of an increase in interest rates; a portfolio with a longer average portfolio duration will be more sensitive to changes in interest rates than a portfolio with a shorter average portfolio duration.

Call Risk  is the risk that an issuer may exercise its right to redeem a fixed income security earlier than expected (a call). Issuers may call outstanding securities prior to their maturity for a number of reasons (e.g., declining interest rates, changes in credit spreads and improvements in the issuer’s credit quality). If an issuer calls a security that the Portfolio has invested in, the Portfolio may not recoup the full amount of its initial investment and may be forced to reinvest in lower-yielding securities, securities with greater credit risks or securities with other, less favorable features.

Credit Risk  is the risk that the Portfolio could lose money if the issuer or guarantor of a fixed income security, or the counterparty to a derivative contract, is unable or unwilling to meet its financial obligations.

High Yield Risk  is the risk that high yield securities and unrated securities of similar credit quality (commonly known as “junk bonds”) are subject to greater levels of credit, call and liquidity risks. High yield securities are considered primarily speculative with respect to the issuer’s continuing ability to make principal and interest payments, and may be more volatile than higher-rated securities of similar maturity.

Market Risk  is the risk that the value of securities owned by the Portfolio may go up or down, sometimes rapidly or unpredictably, due to factors affecting securities markets generally or particular industries.

Issuer Risk  is the risk that the value of a security may decline for a reason directly related to the issuer, such as management performance, financial leverage and reduced demand for the issuer’s goods or services.

Liquidity Risk  is the risk that a particular investment may be difficult to purchase or sell and that the Portfolio may be unable to sell illiquid securities at an advantageous time or price or achieve its desired level of exposure to a certain sector. Liquidity risk may result from the lack of an active market, reduced number and capacity of traditional market participants to make a market in fixed income securities, and may be magnified in a rising interest rate environment or other circumstances where investor redemptions from fixed income mutual funds may be higher than normal, causing increased supply in the market due to selling activity.

Derivatives Risk  is the risk of investing in derivative instruments (such as futures, swaps and structured securities), including leverage, liquidity, interest rate, market, credit and management risks, mispricing or valuation complexity. Changes in the value of the derivative may not correlate perfectly with, and may be more sensitive to market events than, the underlying asset, rate or index, and the Portfolio could lose more than the initial amount invested. The Portfolio’s use of derivatives may result in losses to the Portfolio, a reduction in the Portfolio’s returns and/or increased volatility. Over-the-counter (“OTC”) derivatives are also subject to the risk that a counterparty to the transaction will not fulfill its contractual obligations to the other party, as many of the protections afforded to centrally-cleared derivative transactions might not be available for OTC derivatives. For derivatives traded on an exchange or through a central counterparty, credit risk resides with the Portfolio’s clearing broker, or the clearinghouse itself, rather than with a counterparty in an OTC derivative transaction. Changes in regulation relating to a mutual fund’s use of derivatives and related instruments could potentially limit or impact the Portfolio’s ability to invest in derivatives, limit the Portfolio’s ability to employ certain strategies that use derivatives and/or adversely affect the value of derivatives and the Portfolio’s performance.

Equity Risk  is the risk that the value of equity securities, such as common stocks and preferred securities, may decline due to general market conditions which are not specifically related to a particular company or to factors affecting a particular industry or industries. Equity securities generally have greater price volatility than fixed income securities.

36 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

Mortgage-Related and Other Asset-Backed Securities Risk  is the risks of investing in mortgage-related and other asset-backed securities, including interest rate risk, extension risk, prepayment risk and credit risk.

Foreign (Non-U.S.) Investment Risk  is the risk that investing in foreign (non-U.S.) securities may result in the Portfolio experiencing more rapid and extreme changes in value than a portfolio that invests exclusively in securities of U.S. companies, due to smaller markets, differing reporting, accounting and auditing standards, increased risk of delayed settlement of portfolio transactions or loss of certificates of portfolio securities, and the risk of unfavorable foreign government actions, including nationalization, expropriation or confiscatory taxation, currency blockage, or political changes or diplomatic developments. Foreign securities may also be less liquid and more difficult to value than securities of U.S. issuers.

Emerging Markets Risk  is the risk of investing in emerging market securities, primarily increased foreign (non-U.S.) investment risk.

Sovereign Debt Risk  is the risk that investments in fixed income instruments issued by sovereign entities may decline in value as a result of default or other adverse credit event resulting from an issuer’s inability or unwillingness to make principal or interest payments in a timely fashion.

Currency Risk  is the risk that foreign (non-U.S.) currencies will change in value relative to the U.S. dollar and affect the Portfolio’s investments in foreign (non-U.S.) currencies or in securities that trade in, and receive revenues in, or in derivatives that provide exposure to, foreign (non-U.S.) currencies.

Leveraging Risk  is the risk that certain transactions of the Portfolio, such as reverse repurchase agreements, loans of portfolio securities, and the use of when-issued, delayed delivery or forward commitment transactions, or derivative instruments, may give rise to leverage, magnifying gains and losses and causing the Portfolio to be more volatile than if it had not been leveraged. This means that leverage entails a heightened risk of loss.

Management Risk  is the risk that the investment techniques and risk analyses applied by PIMCO will not produce the desired results and that legislative, regulatory, or tax restrictions, policies or developments may affect the investment techniques available to PIMCO and the individual portfolio manager in connection with managing the Portfolio. There is no guarantee that the investment objective of the Portfolio will be achieved.

Short Exposure Risk  is the risk of entering into short sales, including the potential loss of more money than the actual cost of the

investment, and the risk that the third party to the short sale will not fulfill its contractual obligations, causing a loss to the Portfolio.

8. MASTER NETTING ARRANGEMENTS

The Portfolio may be subject to various netting arrangements (“Master Agreements”) with select counterparties. Master Agreements govern the terms of certain transactions, and are intended to reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that is intended to improve legal certainty. Each type of Master Agreement governs certain types of transactions. Different types of transactions may be traded out of different legal entities or affiliates of a particular organization, resulting in the need for multiple agreements with a single counterparty. As the Master Agreements are specific to unique operations of different asset types, they allow the Portfolio to close out and net its total exposure to a counterparty in the event of a default with respect to all the transactions governed under a single Master Agreement with a counterparty. For financial reporting purposes the Statement of Assets and Liabilities generally presents derivative assets and liabilities on a gross basis, which reflects the full risks and exposures prior to netting.

Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. Under most Master Agreements, collateral is routinely transferred if the total net exposure to certain transactions (net of existing collateral already in place) governed under the relevant Master Agreement with a counterparty in a given account exceeds a specified threshold, which typically ranges from zero to $250,000 depending on the counterparty and the type of Master Agreement. United States Treasury Bills and U.S. dollar cash are generally the preferred forms of collateral, although other securities may be used depending on the terms outlined in the applicable Master Agreement. Securities and cash pledged as collateral are reflected as assets on the Statement of Assets and Liabilities as either a component of Investments at value (securities) or Deposits with counterparty. Cash collateral received is not typically held in a segregated account and as such is reflected as a liability on the Statement of Assets and Liabilities as Deposits from counterparty. The market value of any securities received as collateral is not reflected as a component of NAV. The Portfolio’s overall exposure to counterparty risk can change substantially within a short period, as it is affected by each transaction subject to the relevant Master Agreement.

Master Repurchase Agreements and Global Master Repurchase Agreements (individually and collectively “Master Repo Agreements”) govern repurchase, reverse repurchase, and certain sale-buyback transactions between the Portfolio and select counterparties. Master Repo Agreements maintain provisions for, among other things, initiation, income payments, events of default, and maintenance of

ANNUAL REPORT DECEMBER 31, 2018 37

Notes to Financial Statements (Cont.)

collateral. The market value of transactions under the Master Repo Agreement, collateral pledged or received, and the net exposure by counterparty as of period end are disclosed in the Notes to Schedule of Investments.

Master Securities Forward Transaction Agreements (“Master Forward Agreements”) govern certain forward settling transactions, such as TBA securities, delayed-delivery or certain sale-buyback transactions by and between the Portfolio and select counterparties. The Master Forward Agreements maintain provisions for, among other things, transaction initiation and confirmation, payment and transfer, events of default, termination, and maintenance of collateral. The market value of forward settling transactions, collateral pledged or received, and the net exposure by counterparty as of period end is disclosed in the Notes to Schedule of Investments.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Such transactions require posting of initial margin as determined by each relevant clearing agency which is segregated in an account at a futures commission merchant (“FCM”) registered with the Commodity Futures Trading Commission (“CFTC”). In the United States, counterparty risk may be reduced as creditors of an FCM cannot have a claim to Portfolio assets in the segregated account. Portability of exposure reduces risk to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives unless the parties have agreed to a separate arrangement in respect of portfolio margining. The market value or accumulated unrealized appreciation (depreciation), initial margin posted, and any unsettled variation margin as of period end are disclosed in the Notes to Schedule of Investments.

International Swaps and Derivatives Association, Inc. Master Agreements and Credit Support Annexes (“ISDA Master Agreements”) govern bilateral OTC derivative transactions entered into by the Portfolio with select counterparties. ISDA Master Agreements maintain provisions for general obligations, representations, agreements, collateral posting and events of default or termination. Events of termination include conditions that may entitle counterparties to elect to terminate early and cause settlement of all outstanding transactions under the applicable ISDA Master Agreement. Any election to terminate early could be material to the financial statements. In limited circumstances, the ISDA Master Agreement may contain additional provisions that add counterparty protection beyond coverage of existing daily exposure if the counterparty has a decline in credit quality below a predefined level. These amounts, if any, may be segregated with a third-party custodian. The market value of OTC financial derivative instruments, collateral received or pledged, and net exposure by counterparty as of period end are disclosed in the Notes to Schedule of Investments.

9. FEES AND EXPENSES

(a) Investment Advisory Fee  PIMCO is a majority-owned subsidiary of Allianz Asset Management of America L.P. (“Allianz Asset Management”) and serves as the Adviser to the Trust, pursuant to an investment advisory contract. The Adviser receives a monthly fee from the Portfolio at an annual rate based on average daily net assets (the “Investment Advisory Fee”). The Investment Advisory Fee for all classes is charged at an annual rate as noted in the table in note (b) below.

(b) Supervisory and Administrative Fee  PIMCO serves as administrator (the “Administrator”) and provides supervisory and administrative services to the Trust for which it receives a monthly supervisory and administrative fee based on each share class’s average daily net assets (the “Supervisory and Administrative Fee”). As the Administrator, PIMCO bears the costs of various third-party services, including audit, custodial, portfolio accounting, legal, transfer agency and printing costs.

The Investment Advisory Fee and Supervisory and Administrative Fees for all classes, as applicable, are charged at the annual rate as noted in the following table (calculated as a percentage of the Portfolio’s average daily net assets attributable to each class):

Investment Advisory Fee		Supervisory and Administrative Fee
All Classes		Institutional Class		Administrative Class		Advisor Class
	0.25%		0.20%		0.20%		0.20%

(c) Distribution and Servicing Fees  PIMCO Investments LLC, a wholly-owned subsidiary of PIMCO, serves as the distributor (“Distributor”) of the Trust’s shares.

The Trust has adopted an Administrative Services Plan with respect to the Administrative Class shares of the Portfolio pursuant to Rule 12b-1 under the Act (the “Administrative Plan”). Under the terms of the Administrative Plan, the Trust is permitted to compensate the Distributor, out of the Administrative Class assets of the Portfolio, in an amount up to 0.15% on an annual basis of the average daily net assets of that class, for providing or procuring through financial intermediaries administrative, recordkeeping and investor services for Administrative Class shareholders of the Portfolio.

The Trust has adopted a separate Distribution and Servicing Plan for the Advisor Class shares of the Portfolio (the “Distribution and Servicing Plan”). The Distribution and Servicing Plan has been adopted pursuant to Rule 12b-1 under the Act. The Distribution and Servicing Plan permits the Portfolio to compensate the Distributor for providing or procuring through financial intermediaries, distribution, administrative, recordkeeping, shareholder and/or related services with respect to Advisor Class shares. The Distribution and Servicing Plan

38 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

permits the Portfolio to make total payments at an annual rate of up to 0.25% of its average daily net assets attributable to its Advisor Class shares.

	Distribution Fee		Servicing Fee
Administrative Class		—		0.15%
Advisor Class		0.25%		—

(d) Portfolio Expenses  PIMCO provides or procures supervisory and administrative services for shareholders and also bears the costs of various third-party services required by the Portfolio, including audit, custodial, portfolio accounting, legal, transfer agency and printing costs. The Trust is responsible for the following expenses: (i) taxes and governmental fees; (ii) brokerage fees and commissions and other portfolio transaction expenses; (iii) the costs of borrowing money, including interest expense; (iv) fees and expenses of the Trustees who are not “interested persons” of PIMCO or the Trust, and any counsel retained exclusively for their benefit; (v) extraordinary expense, including costs of litigation and indemnification expenses; (vi) organizational expenses; and (vii) any expenses allocated or allocable to a specific class of shares, which include service fees payable with respect to the Administrative Class Shares, and may include certain other expenses as permitted by the Trust’s Multi-Class Plan adopted pursuant to Rule 18f-3 under the Act and subject to review and approval by the Trustees. The ratio of expenses to average net assets per share class, as disclosed on the Financial Highlights, may differ from the annual portfolio operating expenses per share class.

Each Trustee, other than those affiliated with PIMCO or its affiliates, receives an annual retainer of $41,200, plus $4,250 for each Board meeting attended in person, $850 for each committee meeting attended and $750 for each Board meeting attended telephonically, plus reimbursement of related expenses. In addition, the audit committee chair receives an additional annual retainer of $8,000, the valuation oversight committee lead receives an additional annual retainer of $8,500 (to the extent there are co-leads of the valuation oversight committee, the annual retainer will be split evenly between the co-leads, so that each co-lead individually receives an additional annual retainer of $4,250) and each other committee chair receives an additional annual retainer of $5,500. The Lead Independent Trustee receives an annual retainer of $7,000.

These expenses are allocated on a pro rata basis to each Portfolio of the Trust according to its respective net assets. The Trust pays no compensation directly to any Trustee or any other officer who is affiliated with the Administrator, all of whom receive remuneration for their services to the Trust from the Administrator or its affiliates.

(e) Expense Limitation  Pursuant to the Expense Limitation Agreement, PIMCO has agreed to waive a portion of the Portfolio’s Supervisory and

Administrative Fee, or reimburse the Portfolio, to the extent that the Portfolio’s organizational expenses, pro rata share of expenses related to obtaining or maintaining a Legal Entity Identifier and pro rata share of Trustee Fees exceed 0.0049%, the “Expense Limit” (calculated as a percentage of the Portfolio’s average daily net assets attributable to each class). The Expense Limitation Agreement will automatically renew for one-year terms unless PIMCO provides written notice to the Trust at least 30 days prior to the end of the then current term.

Under certain conditions, PIMCO may be reimbursed for these waived amounts in future periods, not to exceed thirty-six months after the waiver. At December 31, 2018, there were no recoverable amounts.

10. RELATED PARTY TRANSACTIONS

The Adviser, Administrator, and Distributor are related parties. Fees paid to these parties are disclosed in Note 9, Fees and Expenses, and the accrued related party fee amounts are disclosed on the Statement of Assets and Liabilities.

The Portfolio is permitted to purchase or sell securities from or to certain related affiliated portfolios under specified conditions outlined in procedures adopted by the Board. The procedures have been designed to ensure that any purchase or sale of securities by the Portfolio from or to another fund or portfolio that are, or could be, considered an affiliate, or an affiliate of an affiliate, by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers complies with Rule 17a-7 under the Act. Further, as defined under the procedures, each transaction is effected at the current market price. Purchases and sales of securities pursuant to Rule 17a-7 under the Act for the period ended December 31, 2018, were as follows (amounts in thousands^†):

Purchases		Sales
$	21,634	$	21,303

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

11. GUARANTEES AND INDEMNIFICATIONS

Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust (including the Trust’s investment manager) is indemnified, to the extent permitted by the Act, against certain liabilities that may arise out of performance of their duties to the Portfolio. Additionally, in the normal course of business, the Portfolio enters into contracts that contain a variety of indemnification clauses. The Portfolio’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Portfolio that have not yet occurred. However, the Portfolio has not had prior claims or losses pursuant to these contracts.

ANNUAL REPORT DECEMBER 31, 2018 39

Notes to Financial Statements (Cont.)

12. PURCHASES AND SALES OF SECURITIES

The length of time the Portfolio has held a particular security is not generally a consideration in investment decisions. A change in the securities held by the Portfolio is known as “portfolio turnover.” The Portfolio may engage in frequent and active trading of portfolio securities to achieve its investment objective, particularly during periods of volatile market movements. High portfolio turnover may involve correspondingly greater transaction costs to the Portfolio, including brokerage commissions or dealer mark-ups and other transaction costs on the sale of securities and reinvestments in other securities. Such sales may also result in realization of taxable capital gains, including

short-term capital gains (which are generally taxed at ordinary income tax rates). The transaction costs and tax effects associated with portfolio turnover may adversely affect a shareholder’s performance. The portfolio turnover rates are reported in the Financial Highlights.

Purchases and sales of securities (excluding short-term investments) for the period ended December 31, 2018, were as follows (amounts in thousands^†):

U.S. Government/Agency				All Other
Purchases		Sales		Purchases		Sales
$	119,363	$	109,694	$	250,725	$	115,695

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

13. SHARES OF BENEFICIAL INTEREST

The Trust may issue an unlimited number of shares of beneficial interest with a $0.001 par value. Changes in shares of beneficial interest were as follows (shares and amounts in thousands^†):

	Year Ended 12/31/2018						Year Ended 12/31/2017
	Shares			Amount			Shares			Amount
Receipts for shares sold
Institutional Class		330		$	3,413			181		$	1,860
Administrative Class		19,062			197,743			6,402			66,229
Advisor Class		6,424			66,627			3,887			40,212
Issued as reinvestment of distributions
Institutional Class		17			176			12			128
Administrative Class		427			4,429			222			2,301
Advisor Class		361			3,738			222			2,297
Cost of shares redeemed
Institutional Class		(161	)		(1,665	)		(201	)		(2,079	)
Administrative Class		(10,278	)		(106,501	)		(6,346	)		(65,635	)
Advisor Class		(3,157	)		(32,742	)		(2,454	)		(25,375	)
Net increase (decrease) resulting from Portfolio share transactions		13,025		$	135,218			1,925		$	19,938

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

As of December 31, 2018, five shareholders each owned 10% or more of the Portfolio’s total outstanding shares comprising 74% of the Portfolio.

14. REGULATORY AND LITIGATION MATTERS

The Portfolio is not named as a defendant in any material litigation or arbitration proceedings and is not aware of any material litigation or claim pending or threatened against it.

The foregoing speaks only as of the date of this report.

15. FEDERAL INCOME TAX MATTERS

The Portfolio intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code (the “Code”) and distribute all of its taxable income and net realized gains, if applicable, to shareholders. Accordingly, no provision for Federal income taxes has been made.

The Portfolio may be subject to local withholding taxes, including those imposed on realized capital gains. Any applicable foreign capital gains tax is accrued daily based upon net unrealized gains, and may be payable following the sale of any applicable investments.

In accordance with U.S. GAAP, the Adviser has reviewed the Portfolio’s tax positions for all open tax years. As of December 31, 2018, the Portfolio has recorded no liability for net unrecognized tax benefits relating to uncertain income tax positions it has taken or expects to take in future tax returns.

The Portfolio files U.S. federal, state, and local tax returns as required. The Portfolio’s tax returns are subject to examination by relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return but which can be extended to six years in certain circumstances. Tax returns for

40 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

open years have incorporated no uncertain tax positions that require a provision for income taxes.

Shares of the Portfolio currently are sold to segregated asset accounts (“Separate Accounts”) of insurance companies that fund variable

annuity contracts and variable life insurance policies (“Variable Contracts”). Please refer to the prospectus for the Separate Account and Variable Contract for information regarding Federal income tax treatment of distributions to the Separate Account.

As of December 31, 2018, the components of distributable taxable earnings are as follows (amounts in thousands^†):

	Undistributed Ordinary Income(1)		Undistributed Long-Term Capital Gains		Net Tax Basis Unrealized Appreciation/ (Depreciation)(2)			Other Book-to-Tax Accounting Differences(3)		Accumulated Capital Losses(4)			Qualified Late-Year Loss Deferral - Capital(5)		Qualified Late-Year Loss Deferral - Ordinary(6)
PIMCO Short-Term Portfolio	$	3,365	$	0	$	(2,294	)	$	0	$	(1,547	)	$	0	$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽¹⁾  Includes undistributed short-term capital gains, if any.

⁽²⁾  Adjusted for open wash sale loss deferrals and the accelerated recognition of unrealized gain or loss on certain futures, options and forward contracts for federal income tax purposes. Also adjusted for differences between book and tax realized and unrealized gain (loss) on swap contracts, and straddle loss deferrals.

⁽³⁾  Represents differences in income tax regulations and financial accounting principles generally accepted in the United States of America.

⁽⁴⁾  Capital losses available to offset future net capital gains expire in varying amounts as shown below.

⁽⁵⁾  Capital losses realized during the period November 1, 2018 through December 31, 2018 which the Portfolio elected to defer to the following taxable year pursuant to income tax regulations.

⁽⁶⁾  Specified losses realized during the period November 1, 2018 through December 31, 2018 which the Portfolio elected to defer to the following taxable year pursuant to income tax regulations.

Under the Regulated Investment Company Modernization Act of 2010, a fund is permitted to carry forward any new capital losses for an unlimited period. Additionally, such capital losses that are carried

forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term under previous law.

As of December 31, 2018, the Portfolio had the following post-effective capital losses with no expiration (amounts in thousands^†):

	Short-Term		Long-Term
PIMCO Short-Term Portfolio	$	436	$	1,111

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

As of December 31, 2018, the aggregate cost and the net unrealized appreciation/(depreciation) of investments for federal income tax purposes are as follows (amounts in thousands^†):

	Federal Tax Cost		Unrealized Appreciation		Unrealized (Depreciation)			Net Unrealized Appreciation/ (Depreciation)(7)
PIMCO Short-Term Portfolio	$	457,303	$	3,785	$	(6,083	)	$	(2,298	)

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽⁷⁾  Primary differences, if any, between book and tax net unrealized appreciation/(depreciation) on investments are attributable to open wash sale loss deferrals, unrealized gain or loss on certain futures, options and forward contracts, realized and unrealized gain (loss) swap contracts, and straddle loss deferrals.

For the fiscal year ended December 31, 2018 and December 31, 2017, respectively, the Portfolio made the following tax basis distributions (amounts in thousands^†):

	December 31, 2018						December 31, 2017
	Ordinary Income Distributions(8)		Long-Term Capital Gain Distributions		Return of Capital(9)		Ordinary Income Distributions(8)		Long-Term Capital Gain Distributions		Return of Capital(9)
PIMCO Short-Term Portfolio	$	7,817	$	526	$	0	$	4,733	$	0	$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽⁸⁾  Includes short-term capital gains distributed, if any.

⁽⁹⁾  A portion of the distributions made represents a tax return of capital. Return of capital distributions have been reclassified from undistributed net investment income to paid-in capital to more appropriately conform financial accounting to tax accounting.

ANNUAL REPORT DECEMBER 31, 2018 41

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of PIMCO Variable Insurance Trust and Shareholders of PIMCO Short-Term Portfolio

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of PIMCO Short-Term Portfolio (one of the portfolios constituting PIMCO Variable Insurance Trust, referred to hereafter as the “Portfolio”) as of December 31, 2018, the related statement of operations for the year ended December 31, 2018, the statement of changes in net assets for each of the two years in the period ended December 31, 2018, including the related notes, and the financial highlights for each of the five years in the period ended December 31, 2018 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Portfolio as of December 31, 2018, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended December 31, 2018 and the financial highlights for each of the five years in the period ended December 31, 2018 in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Portfolio’s management. Our responsibility is to express an opinion on the Portfolio’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Portfolio in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2018 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

Kansas City, Missouri

February 20, 2019

We have served as the auditor of one or more investment companies in PIMCO Variable Insurance Trust since 1998.

42 PIMCO VARIABLE INSURANCE TRUST

Glossary: (abbreviations that may be used in the preceding statements)

(Unaudited)

Counterparty Abbreviations:
BOA	Bank of America N.A.	CSN	Credit Suisse AG (New York)	MYC	Morgan Stanley Capital Services, Inc.
BOS	Banc of America Securities LLC	FICC	Fixed Income Clearing Corporation	RYL	Royal Bank of Scotland Group PLC
BRC	Barclays Bank PLC	GLM	Goldman Sachs Bank USA	SCX	Standard Chartered Bank
CBK	Citibank N.A.	GST	Goldman Sachs International	SSB	State Street Bank and Trust Co.
CIW	CIBC World Markets Corp.	JPM	JP Morgan Chase Bank N.A.	UAG	UBS AG Stamford
Currency Abbreviations:
CAD	Canadian Dollar	GBP	British Pound	MXN	Mexican Peso
EUR	Euro	JPY	Japanese Yen	USD (or $)	United States Dollar
Exchange Abbreviations:
CBOT	Chicago Board of Trade	OTC	Over the Counter
Index/Spread Abbreviations:
CDX.HY	Credit Derivatives Index - High Yield	SOFRRATE	Secured Overnight Financing Rate	US0003M	3 Month USD Swap Rate
CDX.IG	Credit Derivatives Index - Investment Grade	US0001M	1 Month USD Swap Rate
Other Abbreviations:
ABS	Asset-Backed Security	DAC	Designated Activity Company	REMIC	Real Estate Mortgage Investment Conduit
ALT	Alternate Loan Trust	LIBOR	London Interbank Offered Rate	TBA	To-Be-Announced
CLO	Collateralized Loan Obligation	NCUA	National Credit Union Administration

ANNUAL REPORT DECEMBER 31, 2018 43

Federal Income Tax Information

(Unaudited)

As required by the Internal Revenue Code (the “Code”) and Treasury Regulations, if applicable, shareholders must be notified regarding the status of qualified dividend income and the dividend received deduction.

Dividend Received Deduction.  Corporate shareholders are generally entitled to take the dividend received deduction on the portion of a Fund’s dividend distribution that qualifies under tax law. The percentage of the following Portfolio’s fiscal 2018 ordinary income dividend that qualifies for the corporate dividend received deduction is set forth in the table below.

Qualified Dividend Income.  Under the Jobs and Growth Tax Relief Reconciliation Act of 2003 (the “Act”), the percentage of ordinary dividends paid during the calendar year designated as “qualified dividend income”, as defined in the Act, subject to reduced tax rates in 2018 is set forth for the Portfolio in the table below.

Qualified Interest Income and Qualified Short-Term Capital Gain (for non-U.S. resident shareholders only).  Under the American Jobs Creation Act of 2004, the amounts of ordinary dividends paid during the fiscal year ended December 31, 2018 considered to be derived from “qualified interest income,” as defined in Section 871(k)(1)(E) of the Code, and therefore designated as interest-related dividends, as defined in Section 871(k)(1)(C) of the Code are set forth in the table below. Further, the amounts of ordinary dividends paid during the fiscal year ended December 31, 2018 considered to be derived from “qualified short-term capital gain,” as defined in Section 871(k)(2)(D) of the Code, and therefore designated as qualified short-term gain dividends, as defined by Section 871(k)(2)(C) of the Code are also set forth in the table below.

	Dividend Received Deduction %		Qualified Dividend Income %		Qualified Interest Income (000s†)		Qualified Short-Term Capital Gain (000s†)
PIMCO Short-Term Portfolio		0.00%		0.00%	$	7,813	$	0

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

Shareholders are advised to consult their own tax advisor with respect to the tax consequences of their investment in the Trust. In January 2019, you will be advised on IRS Form 1099-DIV as to the federal tax status of the dividends and distributions received by you in calendar year 2018.

44 PIMCO VARIABLE INSURANCE TRUST

Management of the Trust

(Unaudited)

The charts below identify the Trustees and executive officers of the Trust. Unless otherwise indicated, the address of all persons below is 650 Newport Center Drive, Newport Beach, CA 92660.

The Portfolio’s Statement of Additional Information includes more information about the Trustees and Officers. To request a free copy, call PIMCO at (888) 87-PIMCO or visit the Portfolio’s website at www.pimco.com/pvit.

Name, Year of Birth and Position Held with Trust*	Term of Office and Length of Time Served†	Principal Occupation(s) During Past 5 Years	Number of Funds in Fund Complex Overseen by Trustee	Other Public Company and Investment Company Directorships Held by Trustee During the Past 5 Years
Interested Trustees1
Peter G. Strelow** (1970) Chairman of the Board and Trustee	05/2017 to present Chairman of the Board - 02/2019 to present	Managing Director and Co-Chief Operating Officer, PIMCO. President of the Trust, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Chief Administrative Officer, PIMCO.	153	Chairman and Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT.
Brent R. Harris** (1959) Trustee	08/1997 to present	Managing Director, PIMCO. Senior Vice President of the Trust, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Formerly, member of Executive Committee, PIMCO.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT; Director, StocksPLUS® Management, Inc; and member of Board of Governors, Investment Company Institute. Formerly, Chairman, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT.
Independent Trustees
George E. Borst (1948) Trustee	04/2015 to present	Executive Advisor, McKinsey & Company (since 10/14); Formerly, Executive Advisor, Toyota Financial Services (10/13-12/14); and CEO, Toyota Financial Services (1/01-9/13).	132	Trustee, PIMCO Funds and PIMCO ETF Trust; Director, MarineMax Inc.
Jennifer Holden Dunbar (1963) Trustee	04/2015 to present	Managing Director, Dunbar Partners, LLC (business consulting and investments). Formerly, Partner, Leonard Green & Partners, L.P.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT; Director, PS Business Parks; Director, Big 5 Sporting Goods Corporation.
Kym M. Hubbard (1957) Trustee	02/2017 to present	Formerly, Global Head of Investments, Chief Investment Officer and Treasurer, Ernst & Young.	132	Trustee, PIMCO Funds and PIMCO ETF Trust; Director, State Auto Financial Corporation.
Gary F. Kennedy (1955) Trustee	04/2015 to present	Formerly, Senior Vice President, General Counsel and Chief Compliance Officer, American Airlines and AMR Corporation (now American Airlines Group) (1/03-1/14).	132	Trustee, PIMCO Funds and PIMCO ETF Trust.
Peter B. McCarthy (1950) Trustee	04/2015 to present	Formerly, Assistant Secretary and Chief Financial Officer, United States Department of Treasury; Deputy Managing Director, Institute of International Finance.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Ronald C. Parker (1951) Lead Independent Trustee	07/2009 to present Lead Independent Trustee - 02/2017 to present	Director of Roseburg Forest Products Company. Formerly, Chairman of the Board, The Ford Family Foundation; and President, Chief Executive Officer, Hampton Affiliates (forestry products).	153	Lead Independent Trustee, PIMCO Funds and PIMCO ETF Trust; Trustee, PIMCO Equity Series and PIMCO Equity Series VIT.

* Unless otherwise noted, the information for the individuals listed is as of December 31, 2018.

** Effective February 13, 2019, Mr. Strelow became the Chairman of the Trust.

¹  Mr. Harris and Mr. Strelow are “interested persons” of the Trust (as that term is defined in the 1940 Act) because of their affiliations with PIMCO.

^†  Trustees serve until their successors are duly elected and qualified.

ANNUAL REPORT DECEMBER 31, 2018 45

Management of the Trust (Cont.)

(Unaudited)

Executive Officers

Name, Year of Birth and Position Held with Trust	Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years*
Peter G. Strelow (1970) President	01/2015 to present	Managing Director and Co-Chief Operating Officer, PIMCO. President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Chief Administrative Officer, PIMCO.
Joshua D. Ratner (1976)** Chief Legal Officer	11/2018 to present Vice President - Senior Counsel and Secretary 11/2013 to 11/2018 Assistant Secretary 10/2007 to 01/2011	Executive Vice President and Deputy General Counsel, PIMCO. Chief Legal Officer, PIMCO Investments LLC. Chief Legal Officer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Jennifer E. Durham (1970) Chief Compliance Officer	07/2004 to present	Managing Director and Chief Compliance Officer, PIMCO. Chief Compliance Officer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Brent R. Harris (1959) Senior Vice President	01/2015 to present President 03/2009 to 01/2015	Managing Director, PIMCO. Senior Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Formerly, member of Executive Committee, PIMCO.
Ryan G. Leshaw (1980) Vice President, Senior Counsel and Secretary	11/2018 to present Assistant Secretary 05/2012 to 11/2018	Senior Vice President and Senior Counsel, PIMCO. Vice President, Senior Counsel and Secretary, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Assistant Secretary, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Associate, Willkie Farr & Gallagher LLP.
Wu-Kwan Kit (1981) Assistant Secretary	08/2017 to present	Senior Vice President and Senior Counsel, PIMCO. Assistant Secretary, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Vice President, Senior Counsel and Secretary, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Assistant General Counsel, VanEck Associates Corp.
Stacie D. Anctil (1969) Vice President	05/2015 to present Assistant Treasurer 11/2003 to 05/2015	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
William G. Galipeau (1974) Vice President	11/2013 to present	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Eric D. Johnson (1970) Vice President	05/2011 to present	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Henrik P. Larsen (1970) Vice President	02/1999 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Bijal Y. Parikh (1978) Vice President	02/2017 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Greggory S. Wolf (1970) Vice President	05/2011 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Trent W. Walker (1974) Treasurer	11/2013 to present	Executive Vice President, PIMCO. Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Erik C. Brown (1967)** Assistant Treasurer	02/2001 to present	Executive Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Colleen D. Miller (1980)** Assistant Treasurer	02/2017 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Christopher M. Morin (1980) Assistant Treasurer	08/2016 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Jason J. Nagler (1982)** Assistant Treasurer	05/2015 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.

* The term “PIMCO-Sponsored Closed-End Funds” as used herein includes: PIMCO California Municipal Income Fund, PIMCO California Municipal Income Fund II, PIMCO California Municipal Income Fund III, PIMCO Municipal Income Fund, PIMCO Municipal Income Fund II, PIMCO Municipal Income Fund III, PIMCO New York Municipal Income Fund, PIMCO New York Municipal Income Fund II, PIMCO New York Municipal Income Fund III, PCM Fund Inc., PIMCO Corporate & Income Opportunity Fund, PIMCO Corporate & Income Strategy Fund, PIMCO Dynamic Credit and Mortgage Income Fund, PIMCO Dynamic Income Fund, PIMCO Global StocksPLUS^® & Income Fund, PIMCO High Income Fund, PIMCO Income Opportunity Fund, PIMCO Income Strategy Fund, PIMCO Income Strategy Fund II and PIMCO Strategic Income Fund, Inc.; the term “PIMCO-Sponsored Interval Funds” as used herein includes: PIMCO Flexible Credit Income Fund and PIMCO Flexible Municipal Income Fund.

** The address of these officers is Pacific Investment Management Company LLC, 1633 Broadway, New York, New York 10019.

46 PIMCO VARIABLE INSURANCE TRUST

Privacy Policy¹

(Unaudited)

The Trust^2,3 considers customer privacy to be a fundamental aspect of its relationships with shareholders and is committed to maintaining the confidentiality, integrity and security of its current, prospective and former shareholders’ non-public personal information. The Trust has developed policies that are designed to protect this confidentiality, while allowing shareholder needs to be served.

OBTAINING PERSONAL INFORMATION

In the course of providing shareholders with products and services, the Trust and certain service providers to the Trust, such as the Trust’s investment advisers or sub-advisers (“Advisers”), may obtain non-public personal information about shareholders, which may come from sources such as account applications and other forms, from other written, electronic or verbal correspondence, from shareholder transactions, from a shareholder’s brokerage or financial advisory firm, financial advisor or consultant, and/or from information captured on applicable websites.

RESPECTING YOUR PRIVACY

As a matter of policy, the Trust does not disclose any non-public personal information provided by shareholders or gathered by the Trust to non-affiliated third parties, except as required or permitted by law or as necessary for such third parties to perform their agreements with respect to the Trust. As is common in the industry, non-affiliated companies may from time to time be used to provide certain services, such as preparing and mailing prospectuses, reports, account statements and other information, conducting research on shareholder satisfaction and gathering shareholder proxies. The Trust or its affiliates may also retain non-affiliated companies to market the Trust’s shares or products which use the Trust’s shares and enter into joint marketing arrangements with them and other companies. These companies may have access to a shareholder’s personal and account information, but are permitted to use this information solely to provide the specific service or as otherwise permitted by law. In most cases, the shareholders will be clients of a third party, but the Trust may also provide a shareholder’s personal and account information to the shareholder’s respective brokerage or financial advisory firm and/or financial advisor or consultant.

SHARING INFORMATION WITH THIRD PARTIES

The Trust reserves the right to disclose or report personal or account information to non-affiliated third parties in limited circumstances where the Trust believes in good faith that disclosure is required under law, to cooperate with regulators or law enforcement authorities, to protect its rights or property, or upon reasonable request by any fund advised by PIMCO in which a shareholder has invested. In addition, the Trust may disclose information about a shareholder or a shareholder’s accounts to a non-affiliated third party at the shareholder’s request or with the consent of the shareholder.

SHARING INFORMATION WITH AFFILIATES

The Trust may share shareholder information with its affiliates in connection with servicing shareholders’ accounts, and subject to applicable law may provide shareholders with information about products and services that the Trust or its Advisers, distributors or their affiliates (“Service Affiliates”) believe may be of interest to such shareholders. The information that the Trust may share may include,

for example, a shareholder’s participation in the Trust or in other investment programs sponsored by a Service Affiliate, a shareholder’s ownership of certain types of accounts (such as IRAs), information about the Trust’s experiences or transactions with a shareholder, information captured on applicable websites, or other data about a shareholder’s accounts, subject to applicable law. The Trust’s Service Affiliates, in turn, are not permitted to share shareholder information with non-affiliated entities, except as required or permitted by law.

PROCEDURES TO SAFEGUARD PRIVATE INFORMATION

The Trust takes seriously the obligation to safeguard shareholder non-public personal information. In addition to this policy, the Trust has implemented procedures that are designed to restrict access to a shareholder’s non-public personal information to internal personnel who need to know that information to perform their jobs, such as servicing shareholder accounts or notifying shareholders of new products or services. Physical, electronic and procedural safeguards are in place to guard a shareholder’s non-public personal information.

INFORMATION COLLECTED FROM WEBSITES

Websites maintained by the Trust or its service providers may use a variety of technologies to collect information that help the Trust and its service providers understand how the website is used. Information collected from your web browser (including small files stored on your device that are commonly referred to as “cookies”) allow the websites to recognize your web browser and help to personalize and improve your user experience and enhance navigation of the website. In addition, the Trust or its Service Affiliates may use third parties to place advertisements for the Trust on other websites, including banner advertisements. Such third parties may collect anonymous information through the use of cookies or action tags (such as web beacons). The information these third parties collect is generally limited to technical and web navigation information, such as your IP address, web pages visited and browser type, and does not include personally identifiable information such as name, address, phone number or email address. If you are a registered user of the Trust’s website, the Trust or their service providers or third party firms engaged by the Trust or their service providers may collect or share information submitted by you, which may include personally identifiable information. This information can be useful to the Trust when assessing and offering services and website features. You can change your cookie preferences by changing the setting on your web browser to delete or reject cookies. If you delete or reject cookies, some website pages may not function properly. The Trust does not look for web browser “do not track” requests.

CHANGES TO THE PRIVACY POLICY

From time to time, the Trust may update or revise this privacy policy. If there are changes to the terms of this privacy policy, documents containing the revised policy on the relevant website will be updated.

¹ Amended as of February 15, 2017.

² PIMCO Investments LLC (“PI”) serves as the Trust’s distributor. This Privacy Policy applies to the activities of PI to the extent that PI regularly effects or engages in transactions with or for a Trust shareholder who is the record owner of such shares. For purposes of this Privacy Policy, references to “the Trust” shall include PI when acting in this capacity.

³ When distributing this Policy, the Trust may combine the distribution with any similar distribution of its investment adviser’s privacy policy. The distributed, combined policy may be written in the first person (i.e., by using “we” instead of “the Trust”).

ANNUAL REPORT DECEMBER 31, 2018 47

Approval of Investment Advisory Contract and Other Agreements

Approval of Renewal of the Amended and Restated Investment Advisory Contract, Supervision and Administration Agreement and Amended and Restated Asset Allocation Sub-Advisory Agreement

At a meeting held on August 20-21, 2018, the Board of Trustees (the “Board”) of PIMCO Variable Insurance Trust (the “Trust”), including the Trustees who are not “interested persons” of the Trust under the Investment Company Act of 1940, as amended (the “Independent Trustees”), considered and unanimously approved the renewal of the Amended and Restated Investment Advisory Contract (the “Investment Advisory Contract”) between the Trust, on behalf of each of the Trust’s series (the “Portfolios”), and Pacific Investment Management Company LLC (“PIMCO”) for an additional one-year term through August 31, 2019. The Board also considered and unanimously approved the renewal of the Supervision and Administration Agreement (together with the Investment Advisory Contract, the “Agreements”) between the Trust, on behalf of the Portfolios, and PIMCO for an additional one-year term through August 31, 2019. In addition, the Board considered and unanimously approved the renewal of the Amended and Restated Asset Allocation Sub-Advisory Agreement (the “Asset Allocation Agreement”) between PIMCO, on behalf of PIMCO All Asset Portfolio and PIMCO All Asset All Authority Portfolio, each a series of the Trust, and Research Affiliates, LLC (“Research Affiliates”) for an additional one-year term through August 31, 2019.

The information, material factors and conclusions that formed the basis for the Board’s approvals are summarized below.

1. INFORMATION RECEIVED

(a) Materials Reviewed:  During the course of the past year, the Trustees received a wide variety of materials relating to the services provided by PIMCO and Research Affiliates to the Trust. At each of its quarterly meetings, the Board reviewed the Portfolios’ investment performance and a significant amount of information relating to Portfolio operations, including shareholder services, valuation and custody, the Portfolios’ compliance program and other information relating to the nature, extent and quality of services provided by PIMCO and Research Affiliates to the Trust and each of the Portfolios, as applicable. In considering whether to approve the renewal of the Agreements and the Asset Allocation Agreement, the Board reviewed additional information, including, but not limited to, comparative industry data with regard to investment performance, advisory and supervisory and administrative fees and expenses, financial information for PIMCO and, where relevant, Research Affiliates, information regarding the profitability to PIMCO of its relationship with the Portfolios, information about the personnel providing investment management services, other advisory services and supervisory and administrative services to the Portfolios, and information about the fees

charged and services provided to other clients with similar investment mandates as the Portfolios, where applicable. In addition, the Board reviewed materials provided by counsel to the Trust and the Independent Trustees, which included, among other things, memoranda outlining legal duties of the Board in considering the renewal of the Agreements and the Asset Allocation Agreement.

(b) Review Process:  In connection with considering the renewal of the Agreements and the Asset Allocation Agreement, the Board reviewed written materials prepared by PIMCO and, where applicable, Research Affiliates in response to requests from counsel to the Trust and the Independent Trustees encompassing a wide variety of topics. The Board requested and received assistance and advice regarding, among other things, applicable legal standards from counsel to the Trust and the Independent Trustees, and reviewed comparative fee and performance data prepared at the Board’s request by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company performance information and fee and expense data. The Board received information on matters related to the Agreements and the Asset Allocation Agreement and met both as a full Board and in a separate session of the Independent Trustees, without management present, at the August 20-21, 2018 meeting. The Independent Trustees also conducted in-person meetings with counsel to the Trust and the Independent Trustees, including one on July 18, 2018, to discuss the Lipper Report, as defined below, and certain aspects of the 2018 15(c) materials presented and other matters deemed relevant to their consideration of the renewal of the Agreements and the Asset Allocation Agreement. In connection with its review of the Agreements, the Board received comparative information on the performance and the fees and expenses of other peer group funds and share classes. In addition, the Independent Trustees requested and received supplemental information.

The approval determinations were made on the basis of each Trustee’s business judgment after consideration and evaluation of all the information presented. Individual Trustees may have given different weights to certain factors and assigned various degrees of materiality to information received in connection with the approval process. In deciding to approve the renewal of the Agreements and the Asset Allocation Agreement, the Board did not identify any single factor or particular information that, in isolation, was controlling. The discussion below is intended to summarize the broad factors and information that figured prominently in the Board’s consideration of the renewal of the Agreements and the Asset Allocation Agreement, but is not intended to summarize all of the factors considered by the Board.

2. NATURE, EXTENT AND QUALITY OF SERVICES

(a) PIMCO, Research Affiliates, their Personnel, and Resources:  The Board considered the depth and quality of PIMCO’s investment management process, including: the experience, capability and integrity

48 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

of its senior management and other personnel; the overall financial strength and stability of its organization; and the ability of its organizational structure to address changes in the Portfolios’ asset levels. The Board also considered the various services in addition to portfolio management that PIMCO provides under the Investment Advisory Contract. The Board noted that PIMCO makes available to its investment professionals a variety of resources and systems relating to investment management, compliance, trading, performance and portfolio accounting. The Board also noted PIMCO’s commitment to enhancing and investing in its global infrastructure, technology capabilities, risk management processes and the specialized talent needed to stay at the forefront of the competitive investment management industry and to strengthen its ability to deliver services under the Agreements. The Board considered PIMCO’s policies, procedures and systems reasonably designed to assure compliance with applicable laws and regulations and its commitment to further developing and strengthening these programs, its oversight of matters that may involve conflicts of interest between the Portfolios’ investments and those of other accounts managed by PIMCO, and its efforts to keep the Trustees informed about matters relevant to the Portfolios and their shareholders. The Board also considered PIMCO’s continuous investment in new disciplines and talented personnel, which has enhanced PIMCO’s services to the Portfolios and has allowed PIMCO to introduce innovative new portfolios over time. In addition, the Board considered the nature and quality of services provided by PIMCO to the wholly-owned subsidiaries of certain applicable Portfolios.

The Trustees considered that PIMCO has continued to strengthen the process it uses to actively manage counterparty risk and to assess the financial stability of counterparties with which the Portfolios do business, to manage collateral and to protect Portfolios from an unforeseen deterioration in the creditworthiness of trading counterparties. The Trustees noted that, consistent with its fiduciary duty, PIMCO executes transactions through a competitive best execution process and uses only those counterparties that meet its stringent and monitored criteria. The Trustees considered that PIMCO’s collateral management team utilizes a counterparty risk system to analyze portfolio level exposure and collateral being exchanged with counterparties.

In addition, the Trustees considered new services and service enhancements that PIMCO has implemented since the Board renewed the Agreements in 2017, including, but not limited to upgrading the global network and infrastructure to support trading and risk management systems; enhancing and continuing to expand capabilities within the pre-trade compliance platform; enhancing flexible client reporting capabilities to support increased differentiation within local markets; developing new application and database frameworks to support new trading strategies; expanding proprietary applications

suites to enrich capabilities across Compliance, Analytics, Risk Management, Client Reporting, Attribution and Customer Relationship management; continuing investment in its enterprise risk management function, including PIMCO’s cybersecurity program and global business continuity functions; oversight by the Americas Fund Oversight Committee, which provides senior-level oversight and supervision focused on new and ongoing fund-related business opportunities; engaging a third party service provider to implement the SEC reporting modernization regime; expanding the Fund Treasurer’s Office; enhancing a proprietary application to provide portfolio managers with more timely and high quality income reporting; developing a global tax management application that will enable investment professionals to access foreign market and security tax information on a real-time basis; enhancing reporting of tax reporting for portfolio managers for income products with improved transparency on tax factors impacting income generation and dividend yield; upgrading a proprietary application to allow shareholder subscription and redemption data to pass to portfolio managers more quickly and efficiently; and continuing to expand the pricing portal and the proprietary performance reconciliation tool.

Similarly, the Board considered the asset allocation services provided by Research Affiliates to the PIMCO All Asset Portfolio and PIMCO All Asset All Authority Portfolio. The Board further considered PIMCO’s oversight of Research Affiliates in connection with Research Affiliates providing asset allocation services to the Asset Portfolio and All Asset All Authority Portfolio. The Board also considered the depth and quality of Research Affiliates’ investment management and research capabilities, the experience and capabilities of its portfolio management personnel and the overall financial strength of the organization.

Ultimately, the Board concluded that the nature, extent and quality of services provided or procured by PIMCO under the Agreements and provided by Research Affiliates under the Asset Allocation Agreement are likely to continue to benefit the Portfolios and their respective shareholders, as applicable.

(b) Other Services:  The Board also considered the nature, extent and quality of supervisory and administrative services provided by PIMCO to the Portfolios under the Supervision and Administration Agreement.

The Board considered the terms of the Supervision and Administration Agreement, under which the Trust pays for the supervisory and administrative services provided pursuant to that agreement under what is essentially an all-in fee structure (the “unified fee”). In return, PIMCO provides or procures certain supervisory and administrative services and bears the costs of various third party services required by the Portfolios, including audit, custodial, portfolio accounting, legal, transfer agency, sub-accounting and printing costs. The Board noted that the scope and complexity, as well as the costs, of the supervisory

ANNUAL REPORT DECEMBER 31, 2018 49

Approval of Investment Advisory Contract and Other Agreements (Cont.)

and administrative services provided by PIMCO under the Supervision and Administration Agreement continue to increase. The Board considered PIMCO’s provision of supervisory and administrative services and its supervision of the Trust’s third party service providers to assure that these service providers continue to provide a high level of service relative to alternatives available in the market.

Ultimately, the Board concluded that the nature, extent and quality of the services provided by PIMCO has benefited, and will likely continue to benefit, the Portfolios and their shareholders.

3. INVESTMENT PERFORMANCE

The Board reviewed information from PIMCO concerning the Portfolios’ performance, as available, over short- and long-term periods ended March 31, 2018 and other performance data, as available, over short- and long-term periods ended June 30, 2018 (the “PIMCO Report”) and from Broadridge concerning the Portfolios’ performance, as available, over short- and long-term periods ended March 31, 2018 (the “Lipper Report”).

The Board considered information regarding both the short- and long-term investment performance of each Portfolio relative to its peer group and relevant benchmark index as provided to the Board in advance of each of its quarterly meetings throughout the year, including the PIMCO Report and Lipper Report, which were provided in advance of the August 20-21, 2018 meeting. The Trustees noted that many of the Portfolios outperformed their respective Lipper medians on a net-of-fees basis over the three-, five- and ten-year periods ended March 31, 2018. The Board also noted that, as of March 31, 2018, the Administrative Class of 72%, 35% and 73% of the Portfolios outperformed their respective Lipper category median on a net-of-fees basis over the three-, five- and ten-year periods, respectively. The Trustees considered that other classes of each Portfolio would have substantially similar performance to that of the Administrative Class of the relevant Portfolio on a relative basis because all of the classes are invested in the same portfolio of investments and that differences in performance among classes could principally be attributed to differences in the supervisory and administrative fees and distribution and servicing expenses of each class. The Board also considered that the investment objectives of certain of the Portfolios may not always be identical to those of the other funds in their respective peer groups and that the Lipper categories do not: separate funds based upon maturity or duration; account for the applicable Portfolios’ hedging strategies; distinguish between enhanced index and actively managed equity strategies; include as many subsets as the Portfolios offer (i.e., Portfolios may be placed in a “catch-all” Lipper category to which they do not properly belong); or account for certain fee waivers. The Board noted that, due to these differences, performance comparisons between certain of the Portfolios and their so-called peers may not be

particularly relevant to the consideration of Portfolio performance but found the comparative information supported its overall evaluation.

The Board noted that performance for a majority of the Portfolios has been mixed compared to their respective benchmark indexes over the five-year period ended March 31, 2018. The Board noted that, as of March 31, 2018, 70%, 23% and 92% of the Trust’s assets (based on Administrative Class performance) outperformed their respective benchmarks on a net-of-fees basis over the three-, five- and ten-year periods, respectively. The Board also discussed actions that have been taken by PIMCO to attempt to improve performance and took note of PIMCO’s plans to monitor performance going forward.

The Board considered PIMCO’s discussion of the intensive nature of managing bond funds, noting that it requires the management of a number of factors, including: varying maturities; prepayments; collateral management; counterparty management; pay-downs; credit and corporate events; workouts; derivatives; net new issuance in the bond market; and decreased market maker inventory levels. The Board noted that in addition to managing these factors, PIMCO must also balance risk controls and strategic positions in each portfolio it manages, including the Portfolios. Despite these challenges, the Board noted PIMCO’s ability to generate non-market correlated excess performance for its clients over time, including the Trust.

The Board ultimately concluded, within the context of all of its considerations in connection with the Agreements, that PIMCO’s performance record and process in managing the Portfolios indicates that its continued management is likely to benefit the Portfolios and their shareholders, and merits the approval of the renewal of the Agreements.

4. ADVISORY FEES, SUPERVISORY AND ADMINISTRATIVE FEES AND TOTAL EXPENSES

The Board considered that PIMCO seeks to price new funds and classes to scale. PIMCO reported to the Board that, in proposing fees for any Portfolio or class of shares, it considers a number of factors, including, but not limited to, the type and complexity of the services provided, the cost of providing services, the risk assumed by PIMCO in the development of products and the provision of services and the competitive marketplace for financial products. Fees charged to or proposed for different Portfolios for advisory services and supervisory and administrative services may vary in light of these various factors. The Board considered that portfolio pricing generally is not driven by comparison to passively-managed products.

In addition, PIMCO reported to the Board that it periodically reviews the fees charged to the Portfolios. The Board noted that, based upon this review, PIMCO may propose advisory fee or supervisory and administrative fee changes where (i) a Portfolio’s long-term performance warrants additional consideration; (ii) there is a notable aid to market

50 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

position; (iii) a Portfolio’s fee does not reflect the current level of supervision or administrative fees provided to the Portfolio; or (iv) PIMCO would like to change a Portfolio’s overall strategic positioning.

The Board reviewed the advisory fees, supervisory and administrative fees and total expenses of the Portfolios (each as a percentage of average net assets) and compared such amounts with the average and median fee and expense levels of other similar funds. The Board also reviewed information relating to the sub-advisory fees paid to Research Affiliates with respect to applicable Portfolios, taking into account that PIMCO compensates Research Affiliates from the advisory fees paid by such Portfolios to PIMCO. With respect to advisory fees, the Board reviewed data from Broadridge that compared the average and median advisory fees of other funds in a “Peer Group” of comparable funds, as well as the universe of other similar funds. The Board noted that a number of Portfolios have total expense ratios that fall below the average and median expense ratios in their Peer Group and Lipper universe. In addition, the Board considered fee waivers in place for certain of the Portfolios and also noted the fee waivers in place with respect to the advisory fee and supervisory and administrative fee that might result from investments by applicable Portfolios in their respective wholly-owned subsidiaries. The Board also considered that PIMCO reviews the Portfolios’ fee levels and carefully considers changes where appropriate.

The Board also reviewed data comparing the Portfolios’ advisory fees to the standard and negotiated fee rates PIMCO charges to separate accounts, collective investment trusts and sub-advised clients with similar investment strategies. In cases where the fees for other clients were lower than those charged to the Portfolios, the Trustees noted that the differences in fees were attributable to various factors, including, but not limited to, differences in the advisory and other services provided by PIMCO to the Portfolios, differences in the number or extent of the services provided by PIMCO to the Portfolios, the manner in which similar portfolios may be managed, different requirements with respect to liquidity management and the implementation of other regulatory requirements, and the fact that separate accounts may have other contractual arrangements or arrangements across PIMCO strategies that justify different levels of fees. The Board considered that, with respect to collective investment trusts, PIMCO performs fewer or less extensive services because collective investment trusts are generally exempt from SEC regulation; investors in a collective investment trust may receive shareholder services from a trustee bank, rather than PIMCO; collective investment trusts have less regulatory disclosure; and the management structure of collective investment trusts differs from that of funds. The Trustees also considered that PIMCO faces increased entrepreneurial, legal and regulatory risk in sponsoring and managing mutual funds and ETFs as compared to separate accounts, external sub-advised funds or other investment products.

Regarding advisory fees charged by PIMCO in its capacity as sub-adviser to third party/unaffiliated funds, the Trustees took into account that such fees may be lower than the fees charged by PIMCO to serve as adviser to the Portfolios. The Trustees also took into account that there are various reasons for any such differences in fees, including, but not limited to, the fact that PIMCO may be subject to varying levels of entrepreneurial risk and regulatory requirements, differing legal liabilities on a contract-by-contract basis and different servicing requirements when PIMCO does not serve as the sponsor of a fund and is not principally responsible for all aspects of a fund’s investment program and operations as compared to when PIMCO serves as investment adviser and sponsor.

The Board considered the Portfolios’ supervisory and administrative fees, comparing them to similar funds in the report supplied by Broadridge. The Board also considered that as the Portfolios’ business has become increasingly complex and the number of Portfolios has grown over time, PIMCO has provided an increasingly broad array of fund supervisory and administrative functions. In addition, the Board considered the Trust’s unified fee structure, under which the Trust pays for the supervisory and administrative services it requires for one set fee. In return for this unified fee, PIMCO provides or procures supervisory and administrative services and bears the costs of various third party services required by the Portfolios, including audit, custodial, portfolio accounting, legal, transfer agency, sub-accounting and printing costs. The Board further considered that many other funds pay for comparable services separately, and thus it is difficult to directly compare the Trust’s unified supervisory and administrative fees with the fees paid by other funds for administrative services alone. The Board also considered that the unified supervisory and administrative fee leads to Portfolio fees that are fixed over the contract period, rather than variable. The Board noted that, although the unified fee structure does not have breakpoints, it implicitly reflects economies of scale by fixing the absolute level of Portfolio fees at competitive levels over the contract period even if the Portfolios’ operating costs rise when assets remain flat or decrease. Other factors the Board considered in assessing the unified fee include PIMCO’s approach of pricing Portfolios to scale at inception and reinvesting in other important areas of the business that support the Portfolios. The Board considered that the Portfolios’ unified fee structure meant that fees were not impacted by recent outflows in certain Portfolios, unlike funds without a unified fee structure, which may see increased expense ratios when fixed costs, such as service provider costs, are passed through to a smaller asset base. The Board considered historical advisory and supervisory and administrative fee reductions implemented for different Portfolios and classes, noting that the unified fee can be increased or decreased in subsequent contractual periods and is subject to the periodic reviews discussed above. The Board noted that, with few exceptions, PIMCO

ANNUAL REPORT DECEMBER 31, 2018 51

Approval of Investment Advisory Contract and Other Agreements (Cont.)

has generally maintained Portfolio fees at the same level as implemented when the unified fee was adopted, and has reduced fees for a number of Portfolios in prior years. The Board concluded that the Portfolios’ supervisory and administrative fees were reasonable in relation to the value of the services provided, including the services provided to different classes of shareholders, and that the expenses assumed contractually by PIMCO under the Supervision and Administration Agreement represent, in effect, a cap on overall Portfolio fees during the contractual period, which is beneficial to the Portfolios and their shareholders.

The Board considered the Portfolios’ total expenses and discussed with PIMCO those Portfolios and/or classes of Portfolios that had above median total expenses. The Board noted that many of the Portfolios are unique products that have few peers, if any, and cannot easily be grouped with comparable funds. Upon comparing the Portfolios’ total expenses to other funds in the “Peer Groups” provided by Broadridge, the Board found total expenses of each Portfolio to be reasonable.

The Trustees also considered the advisory fees charged to the Portfolios that operate as funds of funds (the “Funds of Funds”) and the advisory services provided in exchange for such fees. The Trustees determined that such services were in addition to the advisory services provided to the underlying funds in which the Funds of Funds may invest and, therefore, such services were not duplicative of the advisory services provided to the underlying funds. The Board also considered the various fee waiver agreements in place for the Funds of Funds. The Board noted that PIMCO is continuing waivers for these Funds of Funds, as well as for certain other Portfolios of the Trust.

Based on the information presented by PIMCO, Research Affiliates and Broadridge, members of the Board determined, in the exercise of their business judgment, that the level of the advisory fees and supervisory and administrative fees charged by PIMCO under the Agreements, as well as the total expenses of each Portfolio, after the proposals to decrease the management fee, are reasonable.

5. ADVISER COSTS, LEVEL OF PROFITS AND ECONOMIES OF SCALE

The Board reviewed information regarding PIMCO’s costs of providing services to the Funds as a whole, as well as the resulting level of profits to PIMCO under both the adjusted asset profitability method and the profit and loss profitability method, which were each utilized to calculate profitability. To the extent applicable, the Board also reviewed information regarding the portion of a Portfolio’s advisory fee retained by PIMCO, following the payment of sub-advisory fees to Research Affiliates, with respect to the Portfolio. Additionally, the Board noted that profit margins with respect to the Trust shows that the Trust is profitable, although less so than PIMCO Funds due to payments made

by PIMCO to participating insurance companies. The Board further noted PIMCO’s engagement of a third party to review and to make recommendations regarding PIMCO’s processes supporting its profitability estimation materials. The Board also noted that it had received information regarding the structure and manner in which PIMCO’s investment professionals were compensated, and PIMCO’s view of the relationship of such compensation to the attraction and retention of quality personnel. The Board considered PIMCO’s need to invest in global infrastructure, technology capabilities, risk management processes and qualified personnel to reinforce and offer new services and to accommodate changing regulatory requirements.

With respect to potential economies of scale, the Board noted that PIMCO shares the benefits of economies of scale with the Portfolios and their shareholders in a number of ways, including investing in portfolio and trade operations management, firm technology, middle and back office support, legal and compliance, and fund administration logistics, senior management supervision, governance and oversight of those services, and through fee reductions or waivers, the pricing of Portfolios to scale from inception, and the enhancement of services provided to the Portfolios in return for fees paid. The Board reviewed the history of the Portfolios’ fee structure. The Board considered that the Portfolios’ unified fee rates had been set competitively and/or priced to scale from inception, had been held steady during the contractual period at that scaled competitive rate for most Portfolios as assets grew, or as assets declined in the case of some Portfolios, and continued to be competitive compared with peers. The Board also considered that the unified fee is a transparent means of informing a Portfolio’s shareholders of the fees associated with the Portfolio, and that the Portfolio bears certain expenses that are not covered by the advisory fee or the unified fee. The Board further considered the challenges that arise when managing large funds, which can result in certain “diseconomies” of scale and noted that PIMCO has continued to reinvest in many areas of the business to support the Portfolios.

The Trustees considered that the unified fee has provided inherent economies of scale because a Portfolio maintains competitive fixed fees over the annual contract period even if the particular Portfolio’s assets decline and/or operating costs rise. The Trustees further considered that, in contrast, breakpoints may be a proxy for charging higher fees on lower asset levels and that when a fund’s assets decline, breakpoints may reverse, which causes expense ratios to increase. The Trustees also considered that, unlike the Portfolios’ unified fee structure, funds with “pass through” administrative fee structures may experience increased expense ratios when fixed dollar fees are charged against declining fund assets. The Trustees also considered that the unified fee protects shareholders from a rise in operating costs that may result from, among other things, PIMCO’s investments in various business enhancements and infrastructure, including those referenced above. The Trustees noted that PIMCO’s investments in these areas are extensive.

52 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

The Board concluded that the Portfolios’ cost structures were reasonable and that PIMCO is appropriately sharing economies of scale, if any, through the Portfolios’ unified fee structure, generally pricing Portfolios to scale at inception and reinvesting in its business to provide enhanced and expanded services to the Portfolios and their shareholders.

6. ANCILLARY BENEFITS

The Board considered other benefits realized by PIMCO and its affiliates as a result of PIMCO’s relationship with the Trust. Such benefits may include possible ancillary benefits to PIMCO’s institutional investment management business due to the reputation and market penetration of the Trust or third party service providers’ relationship-level fee concessions, which decrease fees paid by PIMCO. The Board also considered that affiliates of PIMCO provide distribution and/or shareholder services to the Portfolios and their shareholders, for which they may be compensated through distribution and servicing fees paid pursuant to the Portfolios’ Rule 12b-1 plans or otherwise. The Board reviewed PIMCO’s soft dollar policies and procedures, noting that while PIMCO has the authority to receive the benefit of research provided by broker-dealers executing portfolio transactions on behalf of the Portfolios, it has adopted a policy not to enter into contractual soft dollar arrangements.

7. CONCLUSIONS

Based on their review, including their comprehensive consideration and evaluation of each of the broad factors and information summarized above, the Independent Trustees and the Board as a whole concluded that the nature, extent and quality of the services rendered to the Portfolios by PIMCO and Research Affiliates supported the renewal of the Agreements and the Asset Allocation Agreement. The Independent Trustees and the Board as a whole concluded that the Agreements and the Asset Allocation Agreement continued to be fair and reasonable to the Portfolios and their shareholders, that the Portfolios’ shareholders received reasonable value in return for the fees paid to PIMCO by the Portfolios under the Agreements and the fees paid to Research Affiliates by PIMCO under the Asset Allocation Agreement, and that the renewal of the Agreements and the Asset Allocation Agreement was in the best interests of the Portfolios and their shareholders.

ANNUAL REPORT DECEMBER 31, 2018 53

General Information

Investment Adviser and Administrator

Pacific Investment Management Company LLC

650 Newport Center Drive

Newport Beach, CA 92660

Distributor

PIMCO Investments LLC

1633 Broadway

New York, NY 10019

Custodian

State Street Bank and Trust Company

801 Pennsylvania Avenue

Kansas City, MO 64105

Transfer Agent

DST Asset Manager Solutions, Inc.

430 W 7th Street STE 219024

Kansas City, MO 64105-1407

Legal Counsel

Dechert LLP

1900 K Street, N.W.

Washington, D.C. 20006

Independent Registered Public Accounting Firm

PricewaterhouseCoopers LLP

1100 Walnut Street, Suite 1300

Kansas City, MO 64106

This report is submitted for the general information of the shareholders of the Portfolio listed on the Report cover.

pimco.com/pvit

PVIT17AR_123118

PIMCO VARIABLE INSURANCE TRUST

Annual Report

December 31, 2018

PIMCO Total Return Portfolio

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, you may not be receiving paper copies of the Portfolio’s shareholder reports from the insurance company that offers your contract unless you specifically request paper copies from the insurance company or from your financial intermediary. Instead, the shareholder reports will be made available on a website, and the insurance company will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the insurance company electronically by following the instructions provided by the insurance company.

You may elect to receive all future reports in paper free of charge from the insurance company. You should contact the insurance company if you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all portfolio companies available under your contract at the insurance company.

Table of Contents

	Page
Chairman’s Letter		2
Important Information About the PIMCO Total Return Portfolio		4
Portfolio Summary		6
Expense Example		7
Financial Highlights		8
Statement of Assets and Liabilities		10
Statement of Operations		11
Statements of Changes in Net Assets		12
Schedule of Investments		13
Notes to Financial Statements		29
Report of Independent Registered Public Accounting Firm		48
Glossary		49
Federal Income Tax Information		50
Management of the Trust		51
Privacy Policy		53
Approval of Investment Advisory Contract and Other Agreements		54

This material is authorized for use only when preceded or accompanied by the current PIMCO Variable Insurance Trust (the “Trust”) prospectus for the Portfolio. (The variable product prospectus may be obtained by contacting your Investment Consultant.)

Chairman’s Letter

Dear PIMCO Variable Insurance Trust Shareholder,

Following this letter is the PIMCO Variable Insurance Trust Annual Report, which covers the 12-month reporting period ended December 31, 2018. On the subsequent pages you will find specific details regarding investment results and discussion of the factors that most affected performance during the reporting period.

For the 12-month reporting period ended December 31, 2018

The U.S. economy continued to expand during the reporting period. Looking back, U.S. gross domestic product (“GDP”) grew at an annual pace of 2.2% during the first quarter of 2018. During the second quarter of 2018, GDP growth rose to an annual pace of 4.2%, the strongest since the third quarter of 2014. GDP then expanded at an annual pace of 3.4% during the third quarter of the year. Finally, the Commerce Department’s initial reading for fourth-quarter 2018 GDP has been delayed due to the partial government shutdown.

The Federal Reserve (the “Fed”) continued to normalize monetary policy during the reporting period. During its meetings that concluded in March, June, September and December 2018, the Fed raised the federal funds rate in 0.25% increments. The Fed’s December rate hike pushed the federal funds rate to a range between 2.25% and 2.50%. In addition, the Fed continued to reduce its balance sheet during the reporting period.

Economic activity outside the U.S. initially accelerated during the reporting period, but moderated as it progressed. Against this backdrop, the European Central Bank (the “ECB”) and the Bank of Japan largely maintained their highly accommodative monetary policies, while other central banks took a more hawkish stance. The Bank of England raised rates at its meeting in August 2018 and the Bank of Canada raised rates twice during the reporting period. Meanwhile, the ECB ended its quantitative easing program in December 2018, but indicated that it does not expect to raise interest rates “at least through the summer of 2019.”

The U.S. Treasury yield curve flattened during the reporting period as short-term rates moved up more than longer-term rates. In our view, the increase in rates at the short end of the yield curve was mostly due to Fed interest rate increases. The yield on the benchmark 10-year U.S. Treasury note was 2.69% at the end of the reporting period, up from 2.40% on December 31, 2017. U.S. Treasuries, as measured by the Bloomberg Barclays U.S. Treasury Index, returned 0.86% over the 12 months ended December 31, 2018. Meanwhile, the Bloomberg Barclays U.S. Aggregate Bond Index, a widely used index of U.S. investment grade bonds, returned 0.01% over the period. Riskier fixed income asset classes, including high yield corporate bonds and emerging market debt, generated weak results versus the broad U.S. market. The ICE BofAML U.S. High Yield Index returned -2.27% over the reporting period, whereas emerging market external debt, as represented by the JPMorgan Emerging Markets Bond Index (EMBI) Global, returned -4.61% over the reporting period. Emerging market local bonds, as represented by the JPMorgan Government Bond Index-Emerging Markets Global Diversified Index (Unhedged), returned -6.21% over the period.

Global equities produced poor results during the reporting period. U.S. equities moved sharply higher over the first nine months of the period. We believe this rally was driven by a number of factors, including corporate profits that often exceeded expectations. However, U.S. equities fell sharply during the fourth quarter of 2018. We believe this was triggered by a number of factors, including signs of moderating global growth, concerns over future Fed rate hikes, the ongoing trade dispute between the U.S. and China and the partial U.S. government shutdown. All told, U.S. equities, as represented by the S&P 500 Index, returned -4.38% during the reporting period. Elsewhere, emerging market equities, as measured by the MSCI Emerging Markets Index, returned -14.58% during the reporting period, whereas global equities, as represented by the MSCI World Index, returned -8.71%. Elsewhere, Japanese equities, as represented by the Nikkei 225 Index (in JPY), returned -10.39% during the reporting period and European equities, as represented by the MSCI Europe Index (in EUR), returned -10.57%.

Commodity prices fluctuated and generally declined during the reporting period. When the reporting period began, West Texas crude oil was approximately $65 a barrel, but by the end it was roughly $45 a barrel. This was driven in

2 PIMCO VARIABLE INSURANCE TRUST

part by increased supply and declining global demand. Elsewhere, gold and copper prices also moved lower during the reporting period.

Finally, during the reporting period the foreign exchange markets experienced periods of volatility, due in part to signs of decoupling economic growth and central bank policies, along with a number of geopolitical events. The U.S. dollar produced mixed results against other major currencies during the reporting period. For example, the U.S. dollar appreciated 4.71% and 5.90% versus the euro and the British pound, respectively, whereas the U.S. dollar depreciated 2.66% versus the yen during the reporting period.

Thank you for the assets you have placed with us. We deeply value your trust, and we will continue to work diligently to meet your broad investment needs.

Sincerely,   Brent R. Harris Chairman of the Board,
PIMCO Variable Insurance Trust

Past performance is no guarantee of future results. Unless otherwise noted, index returns reflect the reinvestment of income distributions and capital gains, if any, but do not reflect fees, brokerage commissions or other expenses of investing. It is not possible to invest directly in an unmanaged index.

ANNUAL REPORT DECEMBER 31, 2018 3

Important Information About the PIMCO Total Return Portfolio

PIMCO Variable Insurance Trust (the “Trust”) is an open-end management investment company that includes the PIMCO Total Return Portfolio (the “Portfolio”). The Portfolio is only available as a funding vehicle under variable life insurance policies or variable annuity contracts issued by insurance companies (“Variable Contracts”). Individuals may not purchase shares of the Portfolio directly. Shares of the Portfolio also may be sold to qualified pension and retirement plans outside of the separate account context.

We believe that bond funds have an important role to play in a well-diversified investment portfolio. It is important to note, however, that in an environment where interest rates may trend upward, rising rates would negatively impact the performance of most bond funds, and fixed income securities and other instruments held by the Portfolio are likely to decrease in value. A wide variety of factors can cause interest rates to rise (e.g., central bank monetary policies, inflation rates, general economic conditions, etc.). In addition, changes in interest rates can be sudden and unpredictable, and there is no guarantee that management will anticipate such movement accurately. The Portfolio may lose money as a result of movements in interest rates.

As of the date of this report, interest rates in the U.S. and many parts of the world, including certain European countries, are at or near historically low levels. Thus, the Portfolio currently faces a heightened level of interest rate risk, especially since the Fed has ended its quantitative easing program and has begun, and may continue, to raise interest rates. To the extent the Fed continues to raise interest rates, there is a risk that rates across the financial system may rise. Further, while bond markets have steadily grown over the past three decades, dealer inventories of corporate bonds are near historic lows in relation to market size. As a result, there has been a significant reduction in the ability of dealers to “make markets.”

Bond funds and individual bonds with a longer duration (a measure used to determine the sensitivity of a security’s price to changes in interest rates) tend to be more sensitive to changes in interest rates, usually making them more volatile than securities or funds with shorter durations. All of the factors mentioned above, individually or collectively, could lead to increased volatility and/or lower liquidity in the fixed income markets or negatively impact the Portfolio’s performance or cause the Portfolio to incur losses. As a result, the Portfolio may experience

increased shareholder redemptions, which, among other things, could further reduce the net assets of the Portfolio.

The Portfolio may be subject to various risks as described in the Portfolio’s prospectus and in the Principal Risks in the Notes to Financial Statements.

The geographical classification of foreign (non-U.S.) securities in this report are classified by the country of incorporation of a holding. In

certain instances, a security’s country of incorporation may be different from its country of economic exposure.

The United States presidential administration’s enforcement of tariffs on goods from other countries, with a focus on China, has contributed to international trade tensions and may impact portfolio securities.

The United Kingdom’s decision to leave the European Union may impact Portfolio returns. This decision may cause substantial volatility in foreign exchange markets, lead to weakness in the exchange rate of the British pound, result in a sustained period of market uncertainty, and destabilize some or all of the other European Union member countries and/or the Eurozone.

On the Portfolio Summary page in this Shareholder Report, the Average Annual Total Return table and Cumulative Returns chart measure performance assuming that any dividend and capital gain distributions were reinvested. The Cumulative Returns chart reflects only Administrative Class performance. Performance may vary by share class based on each class’s expense ratios. The Portfolio measures its performance against at least one broad-based securities market index (“benchmark index”). The benchmark index does not take into account fees, expenses, or taxes. The Portfolio’s past performance, before and after taxes, is not necessarily an indication of how the Portfolio will perform in the future. There is no assurance that the Portfolio, even if the Portfolio has experienced high or unusual performance for one or more periods, will experience similar levels of performance in the future. High performance is defined as a significant increase in either 1) the Portfolio’s total return in excess of that of the Portfolio’s benchmark between reporting periods or 2) the Portfolio’s total return in excess of the Portfolio’s historical returns between reporting periods. Unusual performance is defined as a significant change in the Portfolio’s performance as compared to one or more previous reporting periods.

The following table discloses the inception dates of the Portfolio and its respective share classes along with the Portfolio’s diversification status as of period end:

Portfolio Name	Portfolio Inception		Institutional Class		Administrative Class		Advisor Class		Diversification Status
PIMCO Total Return Portfolio		12/31/97		04/10/00		12/31/97		02/28/06		Diversified

4 PIMCO VARIABLE INSURANCE TRUST

An investment in the Portfolio is not a bank deposit and is not guaranteed or insured by the Federal Deposit Insurance Corporation (“FDIC”) or any other government agency. It is possible to lose money on investments in the Portfolio.

The Trustees are responsible generally for overseeing the management of the Trust. The Trustees authorize the Trust to enter into service agreements with the Adviser, the Distributor, the Administrator and other service providers in order to provide, and in some cases authorize service providers to procure through other parties, necessary or desirable services on behalf of the Trust and the Portfolio. Shareholders are not parties to or third-party beneficiaries of such service agreements. Neither this Portfolio’s prospectus nor summary prospectus, the Trust’s Statement of Additional Information (“SAI”), any contracts filed as exhibits to the Trust’s registration statement, nor any other communications, disclosure documents or regulatory filings (including this report) from or on behalf of the Trust or the Portfolio creates a contract between or among any shareholder of the Portfolio, on the one hand, and the Trust, the Portfolio, a service provider to the Trust or the Portfolio, and/or the Trustees or officers of the Trust, on the other hand. The Trustees (or the Trust and its officers, service providers or other delegates acting under authority of the Trustees) may amend the most recent prospectus or use a new prospectus, summary prospectus or SAI with respect to the Portfolio or the Trust, and/or amend, file and/or issue any other communications, disclosure documents or regulatory filings, and may amend or enter into any contracts to which the Trust or the Portfolio is a party, and interpret the investment objective(s), policies, restrictions and contractual provisions applicable to the Portfolio, without shareholder input or approval, except in circumstances in which shareholder approval is specifically required by law (such as changes to fundamental investment policies) or where a shareholder approval requirement is specifically disclosed in the Trust’s then-current prospectus or SAI.

PIMCO has adopted written proxy voting policies and procedures (“Proxy Policy”) as required by Rule 206(4)-6 under the Investment Advisers Act of 1940, as amended. The Proxy Policy has been adopted by the Trust as the policies and procedures that PIMCO will use when voting proxies on behalf of the Portfolio. A description of the policies and procedures that PIMCO uses to vote proxies relating to portfolio securities of the Portfolio, and information about how the Portfolio voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, are available without charge, upon request, by calling the Trust at (888) 87-PIMCO, on the Portfolio’s website at www.pimco.com/pvit, and on the Securities and Exchange Commission’s (“SEC”) website at www.sec.gov.

The Trust files a complete schedule of the Portfolio’s holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. A copy of the Portfolio’s Form N-Q is available on the SEC’s website at www.sec.gov. A copy of the Portfolio’s Form N-Q is also available without charge, upon request, by calling the Trust at (888) 87-PIMCO and on the Portfolio’s website at www.pimco.com/pvit.

The SEC adopted a rule that, beginning in 2021, generally will allow shareholder reports to be delivered to investors by providing access to such reports online free of charge and by mailing a notice that the report is electronically available. Pursuant to the rule, investors may still elect to receive a complete shareholder report in the mail. Instructions for electing to receive paper copies of the Portfolio’s shareholder reports going forward may be found on the front cover of this report.

The SEC adopted amendments to certain disclosure requirements relating to open-end investment companies’ liquidity risk management programs. Effective December 1, 2019, large fund complexes will be required to include in their shareholder reports a discussion of their liquidity risk management programs’ operations over the past year.

ANNUAL REPORT DECEMBER 31, 2018 5

PIMCO Total Return Portfolio

Cumulative Returns Through December 31, 2018

$10,000 invested at the end of the month when the Portfolio’s Administrative Class commenced operations.

Allocation Breakdown as of 12/31/2018^†§

U.S. Government Agencies	44.0%
Corporate Bonds & Notes	31.5%
Asset-Backed Securities	9.4%
Short-Term Instruments‡	6.4%
Non-Agency Mortgage-Backed Securities	4.7%
Sovereign Issues	2.0%
U.S. Treasury Obligations	1.3%
Others	0.7%

^†   % of Investments, at value.

^§  Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.

^‡  Includes Central Funds Used for Cash Management Purposes.

Average Annual Total Return for the period ended December 31, 2018
		1 Year		5 Years		10 Years		Inception≈
	PIMCO Total Return Portfolio Institutional Class		(0.38)%		2.49%		4.57%		5.43%
	PIMCO Total Return Portfolio Administrative Class		(0.53)%		2.33%		4.41%		5.19%
	PIMCO Total Return Portfolio Advisor Class		(0.63)%		2.23%		4.31%		4.63%
	Bloomberg Barclays U.S. Aggregate Index±		0.01%		2.52%		3.48%		4.74%¨

All Portfolio returns are net of fees and expenses.

≈ For class inception dates please refer to the Important Information.

^¨ Average annual total return since 12/31/1997.

^± Bloomberg Barclays U.S. Aggregate Index represents securities that are SEC-registered, taxable, and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. These major sectors are subdivided into more specific indices that are calculated and reported on a regular basis.

It is not possible to invest directly in an unmanaged index.

Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. The Portfolio’s performance does not reflect the deduction of additional charges and expenses imposed in connection with investing in Variable Contracts, which will reduce returns. Differences in the Portfolio’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the prices of individual positions (which may be sourced from different pricing vendors or other sources) used by the Portfolio and the index. For performance current to the most recent month-end, visit www.pimco.com/pvit or via (888) 87-PIMCO.

The Portfolios total annual operating expense ratio in effect as of period end were 0.54% for Institutional Class shares, 0.69% for Administrative Class shares, and 0.79% for Advisor Class shares. Details regarding any changes to the Portfolio’s operating expenses, subsequent to period end, can be found in the Portfolio’s current prospectus, as supplemented.

Investment Objective and Strategy Overview

PIMCO Total Return Portfolio seeks maximum total return, consistent with preservation of capital and prudent investment management, by investing under normal circumstances at least 65% of its total assets in a diversified portfolio of Fixed Income Instruments of varying maturities, which may be represented by forwards or derivatives such as options, futures contracts, or swap agreements. “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. Portfolio strategies may change from time to time. Please refer to the Portfolio’s current prospectus for more information regarding the Portfolio’s strategy.

Portfolio Insights

The following affected performance during the reporting period:

» U.S. interest rate strategies, particularly a combination of yield advantage and underweight exposure to the long end of the yield curve, contributed to relative performance, as rates rose.

» Positions in non-agency mortgage-backed securities (“MBS”) contributed to relative performance, as total returns in these securities were positive.

» Long duration exposure in Brazil, particularly in the beginning and middle of the period as exposure increased, contributed to relative performance, due to a combination of yield advantage and falling or declining rates.

» Short exposure to duration in Japan detracted from relative performance, as rates fell.

» Positions in agency MBS detracted from performance, as excess returns in these securities were negative.

» Short exposure to the Japanese yen, particularly in the beginning of the reporting period and in the last month of the reporting period, detracted from performance, as the currency appreciated relative to the U.S. dollar.

6 PIMCO VARIABLE INSURANCE TRUST

Expense Example PIMCO Total Return Portfolio

Example

As a shareholder of the Portfolio, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees (if applicable), and other Portfolio expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in the Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds.

The Expense Example does not reflect any fees or other expenses imposed by the Variable Contracts. If it did, the expenses reflected in the Expense Example would be higher. The Example is based on an investment of $1,000 invested at the beginning of the period and held from July 1, 2018 to December 31, 2018 unless noted otherwise in the table and footnotes below.

Actual Expenses

The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60), then multiply the result by the number in the appropriate row for your share class, in the column titled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other portfolios. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other portfolios.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information under the heading “Hypothetical (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different portfolios. In addition, if these transactional costs were included, your costs would have been higher.

Expense ratios may vary period to period because of various factors, such as an increase in expenses that are not covered by the management fees such as fees and expenses of the independent trustees and their counsel, extraordinary expenses and interest expense.

	Actual						Hypothetical (5% return before expenses)
	Beginning Account Value (07/01/18)		Ending Account Value (12/31/18)		Expenses Paid During Period*		Beginning Account Value (07/01/18)		Ending Account Value (12/31/18)		Expenses Paid During Period*		Net Annualized Expense Ratio**
Institutional Class	$	1,000.00	$	1,012.80	$	4.01	$	1,000.00	$	1,021.22	$	4.02		0.79	%
Administrative Class		1,000.00		1,012.00		4.77		1,000.00		1,020.47		4.79		0.94
Advisor Class		1,000.00		1,011.50		5.27		1,000.00		1,019.96		5.30		1.04

* Expenses Paid During Period are equal to the net annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Overall fees and expenses of investing in the Portfolio will be higher because the example does not reflect variable contract fees and expenses.

** Net Annualized Expense Ratio is reflective of any applicable contractual fee waivers and/or expense reimbursements or voluntary fee waivers. Details regarding fee waivers, if any, can be found in Note 9, Fees and Expenses, in the Notes to Financial Statements.

ANNUAL REPORT DECEMBER 31, 2018 7

Financial Highlights PIMCO Total Return Portfolio

			Investment Operations								Less Distributions(b)
Selected Per Share Data for the Year Ended^:	Net Asset Value Beginning of Year		Net Investment Income (Loss)(a)		Net Realized/ Unrealized Gain (Loss)			Total			From Net Investment Income			From Net Realized Capital Gain			Total			Net Asset Value End of Year
Institutional Class
12/31/2018	$	10.94	$	0.30	$	(0.34	)	$	(0.04	)	$	(0.29	)	$	(0.13	)	$	(0.42	)	$	10.48
12/31/2017		10.64		0.26		0.28			0.54			(0.24	)		0.00			(0.24	)		10.94
12/31/2016		10.58		0.29		0.01			0.30			(0.24	)		0.00			(0.24	)		10.64
12/31/2015		11.20		0.30		(0.23	)		0.07			(0.57	)		(0.12	)		(0.69	)		10.58
12/31/2014		10.98		0.19		0.29			0.48			(0.26	)		0.00			(0.26	)		11.20
Administrative Class
12/31/2018		10.94		0.28		(0.34	)		(0.06	)		(0.27	)		(0.13	)		(0.40	)		10.48
12/31/2017		10.64		0.25		0.27			0.52			(0.22	)		0.00			(0.22	)		10.94
12/31/2016		10.58		0.28		0.00			0.28			(0.22	)		0.00			(0.22	)		10.64
12/31/2015		11.20		0.30		(0.25	)		0.05			(0.55	)		(0.12	)		(0.67	)		10.58
12/31/2014		10.98		0.18		0.29			0.47			(0.25	)		0.00			(0.25	)		11.20
Advisor Class
12/31/2018		10.94		0.27		(0.34	)		(0.07	)		(0.26	)		(0.13	)		(0.39	)		10.48
12/31/2017		10.64		0.24		0.27			0.51			(0.21	)		0.00			(0.21	)		10.94
12/31/2016		10.58		0.26		0.01			0.27			(0.21	)		0.00			(0.21	)		10.64
12/31/2015		11.20		0.29		(0.25	)		0.04			(0.54	)		(0.12	)		(0.66	)		10.58
12/31/2014		10.98		0.17		0.29			0.46			(0.24	)		0.00			(0.24	)		11.20

^ A zero balance may reflect actual amounts rounding to less than $0.01 or 0.01%.

^(a)  Per share amounts based on average number of shares outstanding during the year.

^(b)  The tax characterization of distributions is determined in accordance with Federal income tax regulations. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

8 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

			Ratios/Supplemental Data
					Ratios to Average Net Assets
Total Return			Net Assets End of Year (000s)		Expenses			Expenses Excluding Waivers			Expenses Excluding Interest Expense			Expenses Excluding Interest Expense and Waivers			Net Investment Income (Loss)			Portfolio Turnover Rate
	(0.38	)%	$	83,675		0.76	%		0.76	%		0.50	%		0.50	%		2.78	%		631	%
	5.07			83,041		0.54			0.54			0.50			0.50			2.43			574
	2.83			92,502		0.51			0.51			0.50			0.50			2.71			512
	0.60			80,007		0.51			0.51			0.50			0.50			2.65			462
	4.43			214,717		0.50			0.50			0.50			0.50			1.73			313
	(0.53	)		3,961,602		0.91			0.91			0.65			0.65			2.62			631
	4.91			4,456,274		0.69			0.69			0.65			0.65			2.28			574
	2.68			4,728,701		0.66			0.66			0.65			0.65			2.56			512
	0.45			5,059,606		0.66			0.66			0.65			0.65			2.68			462
	4.28			6,244,893		0.65			0.65			0.65			0.65			1.59			313
	(0.63	)		2,420,067		1.01			1.01			0.75			0.75			2.51			631
	4.81			2,955,716		0.79			0.79			0.75			0.75			2.19			574
	2.57			2,693,074		0.76			0.76			0.75			0.75			2.46			512
	0.35			2,607,844		0.76			0.76			0.75			0.75			2.62			462
	4.17			2,439,681		0.75			0.75			0.75			0.75			1.51			313

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 9

Statement of Assets and Liabilities PIMCO Total Return Portfolio

(Amounts in thousands†, except per share amounts)	December 31, 2018
Assets:
Investments, at value
Investments in securities*	$	9,138,631
Investments in Affiliates		515,092
Financial Derivative Instruments
Exchange-traded or centrally cleared		10,134
Over the counter		59,978
Cash		249
Deposits with counterparty		78,751
Foreign currency, at value		13,695
Receivable for investments sold		1,965
Receivable for TBA investments sold		2,771,337
Receivable for Portfolio shares sold		3,512
Interest and/or dividends receivable		34,851
Dividends receivable from Affiliates		1,068
Total Assets		12,629,263
Liabilities:
Borrowings & Other Financing Transactions
Payable for reverse repurchase agreements	$	36,912
Payable for sale-buyback transactions		10,768
Payable for short sales		160,732
Financial Derivative Instruments
Exchange-traded or centrally cleared		6,557
Over the counter		52,345
Payable for investments purchased		73,608
Payable for investments in Affiliates purchased		1,068
Payable for TBA investments purchased		5,720,070
Deposits from counterparty		77,658
Payable for Portfolio shares redeemed		20,473
Accrued investment advisory fees		1,330
Accrued supervisory and administrative fees		1,330
Accrued distribution fees		495
Accrued servicing fees		491
Other liabilities		82
Total Liabilities		6,163,919
Net Assets	$	6,465,344
Net Assets Consist of:
Paid in capital	$	6,585,352
Distributable earnings (accumulated loss)		(120,008	)
Net Assets	$	6,465,344
Net Assets:
Institutional Class	$	83,675
Administrative Class		3,961,602
Advisor Class		2,420,067
Shares Issued and Outstanding:
Institutional Class		7,985
Administrative Class		378,074
Advisor Class		230,958
Net Asset Value Per Share Outstanding:
Institutional Class	$	10.48
Administrative Class		10.48
Advisor Class		10.48
Cost of investments in securities	$	9,128,437
Cost of investments in Affiliates	$	518,383
Cost of foreign currency held	$	14,076
Proceeds received on short sales	$	158,608
Cost or premiums of financial derivative instruments, net	$	(10,803	)
* Includes repurchase agreements of:	$	17,110

^†   A zero balance may reflect actual amounts rounding to less than one thousand.

10 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

Statement of Operations PIMCO Total Return Portfolio

(Amounts in thousands†)	Year Ended December 31, 2018
Investment Income:
Interest, net of foreign taxes*	$	232,776
Dividends from Investments in Affiliates		14,478
Total Income		247,254
Expenses:
Investment advisory fees		17,498
Supervisory and administrative fees		17,498
Servicing fees - Administrative Class		6,297
Distribution and/or servicing fees - Advisor Class		6,801
Trustee fees		204
Interest expense		18,302
Miscellaneous expense		45
Total Expenses		66,645
Net Investment Income (Loss)		180,609
Net Realized Gain (Loss):
Investments in securities		(120,988	)
Investments in Affiliates		176
Net capital gain distributions received from Affiliate investments		430
Exchange-traded or centrally cleared financial derivative instruments		11,670
Over the counter financial derivative instruments		(19,923	)
Short sales		(260	)
Foreign currency		(6,355	)
Net Realized Gain (Loss)		(135,250	)
Net Change in Unrealized Appreciation (Depreciation):
Investments in securities		(200,935	)
Investments in Affiliates		(3,311	)
Exchange-traded or centrally cleared financial derivative instruments		(8,151	)
Over the counter financial derivative instruments		113,573
Short sales		(86	)
Foreign currency assets and liabilities		(864	)
Net Change in Unrealized Appreciation (Depreciation)		(99,774	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	(54,415	)
* Foreign tax withholdings	$	73

^†   A zero balance may reflect actual amounts rounding to less than one thousand.

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 11

Statements of Changes in Net Assets PIMCO Total Return Portfolio

(Amounts in thousands†)	Year Ended December 31, 2018			Year Ended December 31, 2017
Increase (Decrease) in Net Assets from:
Operations:
Net investment income (loss)	$	180,609		$	167,626
Net realized gain (loss)		(135,250	)		98,759
Net change in unrealized appreciation (depreciation)		(99,774	)		85,254
Net Increase (Decrease) in Net Assets Resulting from Operations		(54,415	)		351,639
Distributions to Shareholders:
From net investment income and/or net realized capital gains*
Institutional Class		(3,171	)		(1,947	)
Administrative Class		(154,859	)		(91,412	)
Advisor Class		(95,177	)		(55,074	)
Total Distributions(a)		(253,207	)		(148,433	)
Portfolio Share Transactions:
Net increase (decrease) resulting from Portfolio share transactions**		(722,065	)		(222,452	)
Total Increase (Decrease) in Net Assets		(1,029,687	)		(19,246	)
Net Assets:
Beginning of year		7,495,031			7,514,277
End of year	$	6,465,344		$	7,495,031

^†   A zero balance may reflect actual amounts rounding to less than one thousand.

* See Note 2, New Accounting Pronouncements, in the Notes to Financial Statements for more information.

** See Note 14, Shares of Beneficial Interest, in the Notes to Financial Statements.

^(a)  The tax characterization of distributions is determined in accordance with Federal income tax regulations. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

12 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

Schedule of Investments PIMCO Total Return Portfolio

December 31, 2018

(Amounts in thousands*, except number of shares, contracts and units, if any)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
INVESTMENTS IN SECURITIES 141.3%
LOAN PARTICIPATIONS AND ASSIGNMENTS 0.9%
Avolon Holdings Ltd.
4.470% (LIBOR03M + 2.000%) due 01/15/2025 ~	$		12,792	$		12,348
Qatar National Bank SAQ
3.516% due 12/22/2020			9,700			9,619
State Of Qatar
3.603% (LIBOR03M + 0.800%) due 12/21/2020 «~			16,000			15,920
Swissport Financing SARL
4.750% (EUR003M + 4.750%) due 02/08/2022 ~	EUR		715			821
Toyota Motor Credit Corp.
3.393% (LIBOR03M + 0.580%) due 09/28/2020 «~	$		17,500			17,460
Total Loan Participations and Assignments (Cost $56,533)						56,168
CORPORATE BONDS & NOTES 47.0%
BANKING & FINANCE 30.4%
ABN AMRO Bank NV
2.450% due 06/04/2020			3,600			3,558
AerCap Ireland Capital DAC
3.500% due 05/26/2022			4,738			4,597
3.500% due 01/15/2025			700			640
3.950% due 02/01/2022			2,350			2,309
AIG Global Funding
3.350% due 06/25/2021			3,800			3,786
Alexandria Real Estate Equities, Inc.
4.300% due 01/15/2026			7,200			7,213
4.500% due 07/30/2029			4,500			4,508
Ally Financial, Inc.
4.125% due 03/30/2020			1,300			1,290
Ambac LSNI LLC
7.803% due 02/12/2023 •			1,531			1,539
American Express Co.
3.375% due 05/17/2021			6,700			6,714
American Honda Finance Corp.
2.932% (US0003M + 0.350%) due 11/05/2021 ~			5,460			5,383
Australia & New Zealand Banking Group Ltd.
3.100% (US0003M + 0.460%) due 05/17/2021 ~			16,500			16,461
3.300% due 05/17/2021			16,800			16,788
Aviation Capital Group LLC
3.875% due 05/01/2023			19,200			18,828
4.125% due 08/01/2025			16,700			16,236
Banco Bilbao Vizcaya Argentaria S.A.
8.875% due 04/14/2021 •(g)(h)	EUR		2,000			2,489
Banco Espirito Santo S.A.
4.000% due 01/21/2019 ^(c)			7,700			2,558
Bank of America Corp.
3.419% due 12/20/2028 •	$		4,669			4,369
3.447% (US0003M + 0.650%) due 10/01/2021 ~			14,500			14,399
3.487% (US0003M + 1.000%) due 04/24/2023 ~			21,500			21,281
3.541% (US0003M + 0.790%) due 03/05/2024 ~			17,900			17,404
3.550% due 03/05/2024 •			12,900			12,751
4.000% due 04/01/2024			5,205			5,237
4.125% due 01/22/2024			4,900			4,970
Bank of Nova Scotia
1.875% due 04/26/2021			20,500			20,022
Banque Federative du Credit Mutuel S.A.
3.429% (US0003M + 0.960%) due 07/20/2023 ~			13,400			13,238
Barclays Bank PLC
5.125% due 01/08/2020			3,500			3,555
7.625% due 11/21/2022 (h)			800			831
10.179% due 06/12/2021			5,700			6,411
Barclays PLC
3.200% due 08/10/2021 (k)			19,100			18,566
4.039% (US0003M + 1.625%) due 01/10/2023 ~			21,700			21,175

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
4.728% (US0003M + 2.110%) due 08/10/2021 ~	$		33,800	$		34,092
7.000% due 09/15/2019 •(g)(h)	GBP		500			625
8.000% due 12/15/2020 •(g)(h)	EUR		400			487
BBVA Bancomer S.A.
6.500% due 03/10/2021	$		6,100			6,344
7.250% due 04/22/2020			6,100			6,332
Blackstone CQP Holdco LP
6.500% due 03/20/2021			33,500			33,753
BNP Paribas S.A.
3.500% due 03/01/2023			18,000			17,467
Boston Properties LP
4.500% due 12/01/2028			13,000			13,326
Brixmor Operating Partnership LP
3.591% (US0003M + 1.050%) due 02/01/2022 ~			4,400			4,385
Cantor Fitzgerald LP
6.500% due 06/17/2022			8,200			8,701
Capital One Financial Corp.
2.400% due 10/30/2020			17,700			17,333
2.970% (US0003M + 0.450%) due 10/30/2020 ~			17,900			17,777
3.450% due 04/30/2021			4,800			4,793
CIT Group, Inc.
6.125% due 03/09/2028			2,100			2,095
Citigroup, Inc.
2.700% due 10/27/2022			18,600			17,945
2.750% due 04/25/2022			10,500			10,188
2.876% due 07/24/2023 •			2,000			1,936
3.204% (US0003M + 0.790%) due 01/10/2020 ~			21,700			21,732
3.761% (US0003M + 1.023%) due 06/01/2024 ~			16,500			16,174
4.168% (US0003M + 1.430%) due 09/01/2023 ~			1,000			1,001
Cooperatieve Rabobank UA
5.500% due 06/29/2020 •(g)(h)	EUR		600			706
6.875% due 03/19/2020 (h)			7,900			9,788
Credit Suisse AG
6.500% due 08/08/2023 (h)	$		3,800			3,973
Credit Suisse Group Funding Guernsey Ltd.
3.450% due 04/16/2021			11,000			10,966
3.800% due 09/15/2022			14,400			14,306
3.800% due 06/09/2023			8,000			7,858
4.735% (US0003M + 2.290%) due 04/16/2021 ~			22,800			23,454
Deutsche Bank AG
2.500% due 02/13/2019			3,400			3,394
2.850% due 05/10/2019			34,200			33,998
3.300% due 11/16/2022			13,800			12,800
3.406% (US0003M + 0.970%) due 07/13/2020 ~			9,100			8,863
3.950% due 02/27/2023			12,500			11,812
4.250% due 10/14/2021			11,700			11,447
4.528% (US0003M + 1.910%) due 05/10/2019 ~			8,400			8,373
Dexia Credit Local S.A.
2.375% due 09/20/2022			32,600			32,014
European Investment Bank
0.500% due 08/10/2023	AUD		2,600			1,657
Ford Motor Credit Co. LLC
0.054% due 12/01/2021 •	EUR		4,995			5,346
0.114% due 05/14/2021 •			600			658
2.343% due 11/02/2020	$		2,169			2,087
2.943% due 01/08/2019			13,200			13,200
3.305% (US0003M + 0.880%) due 10/12/2021 ~			8,750			8,400
3.606% (US0003M + 0.830%) due 03/12/2019 ~			7,200			7,195
3.754% (US0003M + 0.930%) due 09/24/2020 ~			16,500			16,209
3.851% (US0003M + 1.235%) due 02/15/2023 ~			13,500			12,496
General Motors Financial Co., Inc.
0.364% (EUR003M + 0.680%) due 05/10/2021 •	EUR		4,100			4,576
2.350% due 10/04/2019	$		2,600			2,578

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
2.450% due 11/06/2020	$		6,970	$		6,772
3.150% due 01/15/2020			9,000			8,947
3.200% due 07/13/2020			5,585			5,517
3.258% (US0003M + 0.850%) due 04/09/2021 ~			10,000			9,776
3.366% (US0003M + 0.930%) due 04/13/2020 ~			21,300			21,171
3.700% due 11/24/2020			3,586			3,573
GLP Capital LP
5.250% due 06/01/2025			3,200			3,185
5.750% due 06/01/2028			5,100			5,170
Goldman Sachs Group, Inc.
3.200% due 02/23/2023			18,200			17,669
3.307% (US0003M + 0.780%) due 10/31/2022 ~			23,500			22,910
3.500% due 01/23/2025			3,500			3,322
3.750% due 05/22/2025			16,890			16,181
3.786% (US0003M + 1.170%) due 05/15/2026 ~			8,400			8,070
3.988% (US0003M + 1.200%) due 09/15/2020 ~			7,900			7,939
6.000% due 06/15/2020			5,740			5,943
Goodman U.S. Finance Three LLC
3.700% due 03/15/2028			11,200			10,686
GSPA Monetization Trust
6.422% due 10/09/2029			6,929			7,990
Harley-Davidson Financial Services, Inc.
3.550% due 05/21/2021			17,100			17,141
3.647% (US0003M + 0.940%) due 03/02/2021 ~			16,300			16,287
HCP, Inc.
4.000% due 12/01/2022			4,100			4,097
Highwoods Realty LP
4.125% due 03/15/2028			3,600			3,531
Hospitality Properties Trust
4.250% due 02/15/2021			6,600			6,622
4.500% due 06/15/2023			4,500			4,542
4.950% due 02/15/2027			13,100			12,864
HSBC Holdings PLC
3.400% due 03/08/2021			17,900			17,853
3.426% (US0003M + 0.650%) due 09/11/2021 ~			16,100			15,893
3.640% (US0003M + 1.000%) due 05/18/2024 ~			13,000			12,669
3.908% (US0003M + 1.500%) due 01/05/2022 ~			22,900			23,139
5.007% (US0003M + 2.240%) due 03/08/2021 ~			11,500			11,783
6.000% due 09/29/2023 •(g)(h)(k)	EUR		2,100			2,552
6.250% due 03/23/2023 •(g)(h)	$		20,000			18,775
ING Groep NV
3.150% due 03/29/2022			5,200			5,117
4.625% due 01/06/2026			4,700			4,741
International Lease Finance Corp.
8.250% due 12/15/2020			4,248			4,571
Jackson National Life Global Funding
3.300% due 06/11/2021			18,900			18,896
Jefferies Finance LLC
7.375% due 04/01/2020			600			601
JPMorgan Chase & Co.
2.550% due 03/01/2021			6,400			6,311
2.776% due 04/25/2023 •			1,900			1,843
3.797% due 07/23/2024 •			16,900			16,940
3.866% (US0003M + 1.100%) due 06/07/2021 ~			26,500			26,690
JPMorgan Chase Bank N.A.
2.848% (US0003M + 0.340%) due 04/26/2021 ~			28,800			28,542
3.086% due 04/26/2021 •			1,500			1,494
Lloyds Bank PLC
3.300% due 05/07/2021			15,600			15,557
7.500% due 04/02/2032 Ø			15,000			12,054
12.000% due 12/16/2024 •(g)			36,435			42,793
Lloyds Banking Group PLC
3.000% due 01/11/2022			1,700			1,646
7.000% due 06/27/2019 •(g)(h)	GBP		9,200			11,754
7.625% due 06/27/2023 •(g)(h)			5,200			6,835

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 13

Schedule of Investments PIMCO Total Return Portfolio (Cont.)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Mitsubishi UFJ Financial Group, Inc.
3.455% due 03/02/2023	$		21,300	$		21,180
3.478% (US0003M + 0.740%) due 03/02/2023 ~			17,800			17,515
Mizuho Financial Group, Inc.
3.549% due 03/05/2023			17,800			17,772
Morgan Stanley
3.168% (US0003M + 0.550%) due 02/10/2021 ~			21,500			21,266
Nasdaq, Inc.
3.214% (US0003M + 0.390%) due 03/22/2019 ~			21,700			21,695
National Australia Bank Ltd.
2.250% due 03/16/2021			18,300			18,046
3.625% due 06/20/2023			5,000			4,993
Oversea-Chinese Banking Corp. Ltd.
3.090% (US0003M + 0.450%) due 05/17/2021 ~			13,400			13,396
Physicians Realty LP
4.300% due 03/15/2027			2,250			2,190
Public Storage
3.094% due 09/15/2027			12,000			11,258
QNB Finance Ltd.
4.015% (US0003M + 1.570%) due 07/18/2021 ~			16,800			16,904
Realty Income Corp.
3.000% due 01/15/2027			7,300			6,803
Regions Bank
3.374% due 08/13/2021 •			17,000			16,935
Royal Bank of Canada
2.300% due 03/22/2021			18,500			18,250
Royal Bank of Scotland Group PLC
2.500% due 03/22/2023	EUR		6,100			7,135
7.500% due 08/10/2020 •(g)(h)	$		4,900			4,863
8.625% due 08/15/2021 •(g)(h)			400			415
Santander UK Group Holdings PLC
1.125% due 09/08/2023	EUR		400			441
2.875% due 08/05/2021	$		6,800			6,568
Santander UK PLC
2.375% due 03/16/2020			5,700			5,638
Senior Housing Properties Trust
4.750% due 02/15/2028			10,600			10,024
Skandinaviska Enskilda Banken AB
3.070% (US0003M + 0.430%) due 05/17/2021 ~			16,900			16,794
3.250% due 05/17/2021			17,100			17,086
Societe Generale S.A.
4.250% due 09/14/2023			16,300			16,204
Society of Lloyd’s
4.750% due 10/30/2024	GBP		1,700			2,266
Springleaf Finance Corp.
6.125% due 05/15/2022	$		18,400			17,935
Sumitomo Mitsui Financial Group, Inc.
2.934% due 03/09/2021			18,500			18,310
Svenska Handelsbanken AB
3.350% due 05/24/2021			17,600			17,596
Synchrony Bank
3.650% due 05/24/2021			17,500			17,132
Toronto-Dominion Bank
2.250% due 03/15/2021			1,900			1,875
2.500% due 01/18/2022			21,100			20,858
3.350% due 10/22/2021			10,300			10,412
U.S. Bank N.A.
2.737% (US0003M + 0.250%) due 07/24/2020 ~			7,000			6,985
3.150% due 04/26/2021			20,300			20,325
UBS AG
3.347% due 06/08/2020 •			30,000			29,996
3.588% (US0003M + 0.850%) due 06/01/2020 ~			3,400			3,415
5.125% due 05/15/2024 (h)			1,700			1,696
7.625% due 08/17/2022 (h)			3,700			3,950
UBS Group Funding Switzerland AG
3.000% due 04/15/2021			20,800			20,645
4.125% due 09/24/2025			3,800			3,779
4.125% due 04/15/2026			14,400			14,328

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
UniCredit SpA
7.830% due 12/04/2023	$		35,700	$		37,384
Unigel Luxembourg S.A.
10.500% due 01/22/2024			10,100			10,555
United Overseas Bank Ltd.
3.200% due 04/23/2021			14,400			14,412
Ventas Realty LP
3.250% due 10/15/2026			4,100			3,815
VEREIT Operating Partnership LP
4.625% due 11/01/2025			9,600			9,636
Volkswagen Bank GmbH
0.625% due 09/08/2021	EUR		2,500			2,844
Washington Prime Group LP
5.950% due 08/15/2024 (k)	$		7,000			6,148
Wells Fargo & Co.
6.558% (US0003M + 3.770%) due 03/15/2019 ~(g)			36,400			36,218
Westpac Banking Corp.
3.050% due 05/15/2020			17,200			17,213
Weyerhaeuser Co.
4.700% due 03/15/2021			600			615
						1,966,414
INDUSTRIALS 12.9%
AbbVie, Inc.
2.900% due 11/06/2022			13,390			13,040
3.375% due 11/14/2021			1,800			1,800
Altice Financing S.A.
6.625% due 02/15/2023			11,200			10,780
Altice France S.A.
6.250% due 05/15/2024			7,300			6,835
American Airlines Pass-Through Trust
3.000% due 04/15/2030			7,562			7,168
3.250% due 04/15/2030			3,871			3,698
Andeavor Logistics LP
5.500% due 10/15/2019			8,631			8,705
Arrow Electronics, Inc.
3.500% due 04/01/2022			1,700			1,678
Bacardi Ltd.
4.450% due 05/15/2025			12,600			12,454
Baker Hughes a GE Co. LLC
2.773% due 12/15/2022			7,400			7,103
BAT Capital Corp.
2.764% due 08/15/2022			15,350			14,511
3.222% due 08/15/2024			8,700			8,022
3.557% due 08/15/2027			1,800			1,602
Bayer U.S. Finance LLC
3.798% (US0003M + 1.010%) due 12/15/2023 ~			7,700			7,368
4.250% due 12/15/2025			13,200			12,872
Broadcom Corp.
3.875% due 01/15/2027			3,600			3,237
Campbell Soup Co.
3.650% due 03/15/2023			14,600			14,251
Celgene Corp.
2.875% due 08/15/2020			2,287			2,272
Centene Corp.
5.375% due 06/01/2026			12,900			12,577
CenterPoint Energy Resources Corp.
3.550% due 04/01/2023			8,600			8,612
Charter Communications Operating LLC
4.464% due 07/23/2022			2,400			2,425
Conagra Brands, Inc.
3.800% due 10/22/2021			10,600			10,610
Constellation Brands, Inc.
2.650% due 11/07/2022			2,400			2,300
CVS Health Corp.
2.750% due 12/01/2022			8,511			8,198
3.500% due 07/20/2022			1,619			1,609
4.300% due 03/25/2028			21,300			20,896
Daimler Finance North America LLC
2.972% (US0003M + 0.390%) due 05/04/2020 ~			9,250			9,200

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
3.100% due 05/04/2020	$		17,200	$		17,107
3.422% (US0003M + 0.840%) due 05/04/2023 ~			16,900			16,735
3.700% due 05/04/2023			16,900			16,833
Danone S.A.
3.000% due 06/15/2022			1,060			1,042
Dell International LLC
4.420% due 06/15/2021			9,771			9,766
5.450% due 06/15/2023			12,600			12,834
Delta Air Lines, Inc.
3.400% due 04/19/2021			7,700			7,640
Deutsche Telekom International Finance BV
2.820% due 01/19/2022			16,416			16,064
Dominion Energy Gas Holdings LLC
3.388% (US0003M + 0.600%) due 06/15/2021 ~			20,100			20,051
eBay, Inc.
2.600% due 07/15/2022			2,600			2,515
EMC Corp.
2.650% due 06/01/2020			11,600			11,143
Enterprise Products Operating LLC
3.500% due 02/01/2022			2,430			2,438
5.200% due 09/01/2020			2,700			2,784
ERAC USA Finance LLC
4.500% due 08/16/2021			3,400			3,471
Express Scripts Holding Co.
3.050% due 11/30/2022			3,550			3,439
Full House Resorts, Inc.
8.575% due 01/31/2024 «			3,950			3,648
General Electric Co.
2.962% (US0003M + 0.380%) due 05/05/2026 ~			4,000			3,223
5.000% due 01/21/2021 •(g)			9,300			7,126
6.150% due 08/07/2037			200			196
6.875% due 01/10/2039			1,800			1,890
General Mills, Inc.
6.610% due 10/15/2022			10,000			10,567
GlaxoSmithKline Capital PLC
3.125% due 05/14/2021			12,300			12,323
Hyundai Capital America
3.601% due 09/18/2020 •			6,000			5,977
Keurig Dr Pepper, Inc.
3.551% due 05/25/2021			2,300			2,298
4.057% due 05/25/2023			11,100			11,065
Kraft Heinz Foods Co.
2.800% due 07/02/2020			6,708			6,651
3.188% (US0003M + 0.570%) due 02/10/2021 ~			5,027			4,987
4.000% due 06/15/2023			20,300			20,266
Marathon Oil Corp.
2.800% due 11/01/2022			8,089			7,604
Marriott International, Inc.
4.150% due 12/01/2023			16,800			16,845
McDonald’s Corp.
2.939% (US0003M + 0.430%) due 10/28/2021 ~			9,600			9,537
Melco Resorts Finance Ltd.
4.875% due 06/06/2025			2,000			1,841
Microchip Technology, Inc.
3.922% due 06/01/2021			10,105			10,029
Mondelez International, Inc.
3.000% due 05/07/2020			9,600			9,566
MPLX LP
4.000% due 03/15/2028			6,900			6,483
NetApp, Inc.
3.375% due 06/15/2021			3,000			2,990
Northwest Airlines Pass-Through Trust
7.150% due 04/01/2021 «			1,106			1,098
NXP BV
4.875% due 03/01/2024			6,700			6,738
Odebrecht Oil & Gas Finance Ltd.
0.000% due 01/30/2019 (e)(g)			299			5
0.000% due 01/31/2019 (e)(g)			4,702			84
Oracle Corp.
1.900% due 09/15/2021			9,600			9,320

14 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Park Aerospace Holdings Ltd.
4.500% due 03/15/2023	$		4,100	$		3,844
Philip Morris International, Inc.
2.375% due 08/17/2022			20,700			19,903
Platin GmbH
6.875% due 06/15/2023	EUR		11,400			12,607
Reckitt Benckiser Treasury Services PLC
2.375% due 06/24/2022	$		9,600			9,225
Reliance Holding USA, Inc.
4.500% due 10/19/2020			4,600			4,654
Sabine Pass Liquefaction LLC
5.625% due 02/01/2021			9,880			10,182
Sands China Ltd.
5.125% due 08/08/2025			17,600			17,459
Seven & i Holdings Co. Ltd.
3.350% due 09/17/2021			13,000			13,042
Shire Acquisitions Investments Ireland DAC
1.900% due 09/23/2019			2,600			2,564
Southern Co.
2.350% due 07/01/2021			14,500			14,105
Sprint Spectrum Co. LLC
4.738% due 09/20/2029			16,200			15,937
5.152% due 09/20/2029			10,700			10,539
Syngenta Finance NV
3.933% due 04/23/2021			12,100			11,941
Takeda Pharmaceutical Co. Ltd.
4.000% due 11/26/2021			19,600			19,880
Teva Pharmaceutical Finance Netherlands BV
4.500% due 03/01/2025	EUR		11,400			13,255
United Technologies Corp.
3.279% (US0003M + 0.650%) due 08/16/2021 ~	$		1,800			1,794
Virgin Media Receivables Financing Notes DAC
5.500% due 09/15/2024	GBP		12,700			15,593
VMware, Inc.
2.950% due 08/21/2022	$		19,933			19,015
Volkswagen Group of America Finance LLC
3.388% (US0003M + 0.770%) due 11/13/2020 ~			15,000			14,904
3.875% due 11/13/2020			8,400			8,443
4.000% due 11/12/2021			8,289			8,311
4.625% due 11/13/2025			6,400			6,339
4.750% due 11/13/2028			16,300			15,827
Wabtec Corp.
3.838% (US0003M + 1.050%) due 09/15/2021 ~			7,390			7,366
Walt Disney Co.
2.125% due 09/13/2022			5,000			4,767
Wynn Las Vegas LLC
5.500% due 03/01/2025			18,000			16,830
Zimmer Biomet Holdings, Inc.
2.700% due 04/01/2020			700			693
Zoetis, Inc.
3.085% (US0003M + 0.440%) due 08/20/2021 ~			7,500			7,448
						836,509
SPECIALTY FINANCE 0.1%
Lloyds Banking Group PLC
3.679% due 09/04/2019 (i)			1,400			1,396
3.679% due 09/02/2020 (i)			1,400			1,391
3.679% due 09/02/2021 (i)			1,400			1,385
						4,172
UTILITIES 3.6%
AT&T, Inc.
3.086% (US0003M + 0.650%) due 01/15/2020 ~			14,100			14,077
3.386% (US0003M + 0.950%) due 07/15/2021 ~			15,510			15,464
3.400% due 05/15/2025			11,300			10,637

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
3.488% (US0003M + 0.750%) due 06/01/2021 ~	$		19,800	$		19,680
3.956% (US0003M + 1.180%) due 06/12/2024 ~			16,600			16,114
BellSouth LLC
4.333% due 04/26/2021			13,600			13,643
Duke Energy Corp.
2.400% due 08/15/2022			3,460			3,327
3.050% due 08/15/2022			1,300			1,275
3.114% (US0003M + 0.500%) due 05/14/2021 ~			16,800			16,726
Electricite de France S.A.
4.600% due 01/27/2020			2,800			2,841
Enel Finance International NV
2.875% due 05/25/2022			10,120			9,542
4.250% due 09/14/2023			17,500			17,128
Genesis Energy LP
6.750% due 08/01/2022			4,300			4,214
NextEra Energy Capital Holdings, Inc.
3.107% (US0003M + 0.400%) due 08/21/2020 ~			20,200			20,180
NiSource, Inc.
2.650% due 11/17/2022			4,600			4,408
Odebrecht Drilling Norbe Ltd.
6.350% due 12/01/2021			4,133			3,990
Odebrecht Drilling Norbe Ltd. (6.350% Cash or 7.350% PIK)
7.350% due 12/01/2026 (b)			8,478			4,822
Odebrecht Offshore Drilling Finance Ltd.
6.720% due 12/01/2022			1,075			1,004
Odebrecht Offshore Drilling Finance Ltd. (6.720% Cash or 7.720% PIK)
7.720% due 12/01/2026 (b)			4,000			1,070
PacifiCorp
3.350% due 07/01/2025			1,525			1,496
Petrobras Global Finance BV
6.125% due 01/17/2022			4,347			4,472
Sempra Energy
3.238% (US0003M + 0.450%) due 03/15/2021 ~			21,300			20,873
Verizon Communications, Inc.
3.376% due 02/15/2025			27,614			26,828
						233,811
Total Corporate Bonds & Notes (Cost $3,081,667)						3,040,906
MUNICIPAL BONDS & NOTES 0.2%
ILLINOIS 0.1%
Chicago, Illinois General Obligation Bonds, Series 2015
7.750% due 01/01/2042			8,040			8,615
IOWA 0.0%
Iowa Tobacco Settlement Authority Revenue Bonds, Series 2005
6.500% due 06/01/2023			420			426
TEXAS 0.1%
Texas Public Finance Authority Revenue Notes, Series 2014
8.250% due 07/01/2024			3,985			4,051
Total Municipal Bonds & Notes (Cost $12,317)						13,092
U.S. GOVERNMENT AGENCIES 65.7%
Fannie Mae
1.758% due 08/25/2055 ~(a)			15,435			817
2.310% due 08/01/2022			4,500			4,432
2.375% due 12/25/2036 - 07/25/2037 •			855			843
2.670% due 08/01/2022			709			705
2.749% due 09/25/2046 •			3,293			3,298

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
2.756% due 05/25/2037 •	$		52	$		53
2.856% due 03/25/2044 •			541			541
2.870% due 09/01/2027			6,400			6,240
2.916% due 09/25/2035 •			329			330
3.000% due 09/01/2020 - 06/01/2030			53,278			53,349
3.206% due 10/25/2037 •			519			526
3.253% due 06/01/2043 - 07/01/2044 •			810			805
3.330% due 11/01/2021			1,213			1,233
3.453% due 09/01/2040 •			3			3
3.500% due 08/01/2029 - 10/01/2048			2,633			2,642
3.532% due 01/01/2025 •			2			2
3.825% due 04/01/2035 •			740			764
3.922% due 11/01/2035 •			24			25
3.931% due 10/01/2032 •			146			152
4.000% due 01/01/2026 - 12/01/2048			367,754			375,268
4.120% due 05/25/2035 ~			90			94
4.207% due 08/01/2035 •			332			346
4.258% due 12/01/2036 •			195			203
4.293% due 05/01/2038 •			8,509			8,920
4.378% due 09/01/2039 •			17			17
4.500% due 12/01/2020 - 09/01/2045			20,592			21,448
4.662% due 08/01/2035 •			27			28
4.715% due 09/01/2035 •			44			46
5.000% due 06/01/2025 - 08/01/2044			6,404			6,772
5.188% due 09/01/2034 •			86			91
5.500% due 09/01/2019 - 07/01/2041			15,899			17,048
6.000% due 09/01/2021 - 01/01/2039			5,077			5,499
6.500% due 11/01/2034			24			26
7.000% due 04/25/2023 - 06/01/2032			212			228
Fannie Mae, TBA
3.000% due 01/01/2049			568,000			554,307
3.500% due 02/01/2034 - 02/01/2049			1,237,895			1,238,215
4.000% due 01/01/2049 - 02/01/2049			907,000			924,253
4.500% due 02/01/2049			64,000			66,253
5.500% due 01/01/2049			13,000			13,768
6.000% due 01/01/2049			4,000			4,297
Freddie Mac
1.259% due 08/25/2022 ~(a)			51,109			1,944
2.905% due 11/15/2030 •			2			2
2.955% due 09/15/2030 •			4			4
3.156% due 02/25/2045 •			142			142
3.175% due 05/15/2037 •			178			181
3.500% due 02/01/2048 - 10/01/2048			74,802			74,824
4.000% due 04/01/2029 - 11/01/2048			324,585			331,154
4.500% due 03/01/2029 - 09/01/2041			2,037			2,111
5.500% due 10/01/2034 - 10/01/2038			1,784			1,925
6.000% due 02/01/2033 - 05/01/2040			3,141			3,427
6.500% due 04/15/2029 - 10/01/2037			32			34
7.000% due 06/15/2023			104			110
7.500% due 07/15/2030 - 03/01/2032			39			44
8.500% due 08/01/2024			2			2
Freddie Mac, TBA
3.000% due 01/01/2049			78,000			76,031
3.500% due 01/01/2049			18,000			17,996
4.500% due 01/01/2049			48,900			50,639
6.000% due 01/01/2049			1,000			1,076
Ginnie Mae
2.649% due 10/20/2043 •			15,444			15,445
2.764% due 08/20/2066 •			3,264			3,264
2.914% due 07/20/2065 - 08/20/2065 •			26,530			26,655
2.964% due 07/20/2063 •			9,209			9,225

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 15

Schedule of Investments PIMCO Total Return Portfolio (Cont.)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
3.000% due 03/15/2045 - 08/15/2045	$		9,011	$		8,883
3.084% due 10/20/2066 •			11,158			11,295
3.114% due 06/20/2066 •			6,097			6,179
3.125% due 10/20/2029 - 11/20/2029 •			39			40
3.144% due 08/20/2066 •			16,886			17,136
3.247% due 04/20/2067 •			12,716			13,047
3.314% due 01/20/2066 •			4,458			4,554
3.375% due 02/20/2027 - 02/20/2032 •			106			110
3.500% due 10/20/2048 - 11/20/2048			12,969			13,068
3.527% due 06/20/2067 •			625			640
3.625% (H15T1Y + 1.500%) due 04/20/2026 ~			17			18
3.625% due 05/20/2030 •			1			1
3.750% due 07/20/2030 •			2			2
5.137% due 09/20/2066 ~			20,790			23,092
6.000% due 12/15/2038 - 11/15/2039			22			24
Ginnie Mae, TBA
4.000% due 01/01/2049			46,500			47,626
5.000% due 01/01/2049 - 03/01/2049			163,500			170,001
Small Business Administration
5.130% due 09/01/2023			5			5
6.290% due 01/01/2021			4			5
Total U.S. Government Agencies (Cost $4,191,799)						4,245,848
U.S. TREASURY OBLIGATIONS 2.0%
U.S. Treasury Inflation Protected Securities (f)
0.375% due 01/15/2027			12,980			12,338
0.625% due 01/15/2024			8,019			7,897
0.625% due 01/15/2026 (k)			48,425			47,169
0.750% due 07/15/2028			32,637			31,971
0.875% due 02/15/2047 (m)(o)			8,590			7,905
U.S. Treasury Notes
1.750% due 09/30/2022 (k)(m)(o)			20,665			20,125
Total U.S. Treasury Obligations (Cost $128,522)						127,405
NON-AGENCY MORTGAGE-BACKED SECURITIES 6.9%
Alba PLC
1.076% due 03/17/2039 •	GBP		11,237			13,314
American Home Mortgage Investment Trust
4.885% due 02/25/2045 •	$		409			414
6.700% due 06/25/2036 Ø			11,998			4,391
Banc of America Funding Trust
4.356% due 05/25/2035 ~			383			402
6.000% due 03/25/2037 ^			3,177			2,795
Banc of America Mortgage Trust
3.910% due 03/25/2035 ~			3,548			3,470
4.460% due 05/25/2033 ~			440			450
6.500% due 10/25/2031			51			52
BCAP LLC Trust
2.716% due 05/25/2047 •			3,490			3,208
4.931% due 03/26/2037 Ø			585			580
Bear Stearns Adjustable Rate Mortgage Trust
2.781% due 11/25/2030 ~			1			1
3.950% due 04/25/2033 ~			102			103
4.005% due 04/25/2034 ~			475			477
4.035% due 02/25/2033 ~			11			10
4.170% due 11/25/2034 ~			1,150			1,119
4.263% due 07/25/2034 ~			467			458
4.337% due 02/25/2033 ~			7			7
4.427% due 01/25/2035 ~			235			229
4.523% due 01/25/2035 ~			112			113
4.835% due 01/25/2034 ~			238			243
4.910% due 02/25/2036 •			59			59
Bear Stearns ALT-A Trust
3.839% due 05/25/2036 ^~			2,238			1,605
4.032% due 05/25/2035 ~			1,320			1,334
4.209% due 09/25/2035 ^~			771			641

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Bear Stearns Structured Products, Inc. Trust
4.348% due 01/26/2036 ^~	$		1,772	$		1,603
5.425% due 12/26/2046 ^~			1,139			1,066
Business Mortgage Finance PLC
2.887% due 02/15/2041 •	GBP		3,111			3,955
BX Trust
3.375% due 07/15/2034 •	$		12,978			12,866
CFCRE Commercial Mortgage Trust
3.644% due 12/10/2054			7,037			7,144
Chase Mortgage Finance Trust
3.743% due 01/25/2036 ^~			2,252			2,008
Citigroup Mortgage Loan Trust
4.820% due 10/25/2035 •			136			138
5.500% due 12/25/2035			3,543			2,873
Citigroup Mortgage Loan Trust, Inc.
3.897% due 05/25/2035 ~			665			669
4.240% due 09/25/2035 •			6,991			7,079
Countrywide Alternative Loan Trust
2.660% due 09/20/2046 •			7,288			6,140
2.696% due 09/25/2046 ^•			16,498			15,197
2.706% due 05/25/2036 •			1,239			1,097
3.506% due 08/25/2035 ^•			3,842			2,740
6.000% due 03/25/2035			15,386			14,279
6.000% due 02/25/2037 ^			7,982			5,722
Countrywide Home Loan Mortgage Pass-Through Trust
4.225% due 02/20/2035 ~			848			854
4.290% due 11/25/2034 ~			996			990
4.592% due 02/20/2036 ^•			243			212
Credit Suisse First Boston Mortgage Securities Corp.
5.302% due 06/25/2032 ~			16			15
Deutsche ALT-A Securities, Inc. Mortgage Loan Trust
2.656% due 03/25/2037 ^•			4,962			4,543
3.006% due 02/25/2035 •			284			280
Eurosail PLC
1.050% due 03/13/2045 •	GBP		1,753			2,168
1.060% due 03/13/2045 •			5,982			7,472
First Horizon Alternative Mortgage Securities Trust
3.772% due 08/25/2035 ^~	$		2,721			2,424
First Horizon Mortgage Pass-Through Trust
4.099% due 10/25/2035 ^~			2,574			2,470
Great Hall Mortgages PLC
2.931% due 06/18/2039 •			3,727			3,591
GS Mortgage Securities Corp.
3.120% due 05/10/2050			13,200			13,173
GS Mortgage Securities Corp. Trust
2.856% due 05/10/2034			10,700			10,614
3.203% due 02/10/2029			5,500			5,490
3.980% due 02/10/2029			17,150			17,226
GS Mortgage Securities Trust
3.602% due 10/10/2049 ~			3,037			3,042
GSR Mortgage Loan Trust
4.300% due 09/25/2035 ~			1,726			1,760
4.464% due 11/25/2035 ~			413			417
HarborView Mortgage Loan Trust
2.910% due 05/19/2035 •			328			318
3.053% due 10/19/2035 •			2,694			2,295
4.056% due 12/19/2035 ^~			2,772			2,218
4.065% due 07/19/2035 ^~			1,126			1,068
Hilton USA Trust
2.828% due 11/05/2035			14,400			14,136
IndyMac Adjustable Rate Mortgage Trust
3.947% due 01/25/2032 ~			1			1
IndyMac Mortgage Loan Trust
2.676% due 01/25/2037 ^•			2,594			2,458
3.559% due 06/25/2036 ~			6,676			5,734
JPMorgan Chase Commercial Mortgage Securities Trust
3.455% due 06/15/2032 •			20,200			19,833
JPMorgan Mortgage Trust
4.090% due 08/25/2034 ~			2,272			2,257
4.124% due 06/25/2035 ~			357			363
4.196% due 10/25/2036 ^~			3,410			3,057
5.750% due 01/25/2036 ^			478			368
Landmark Mortgage Securities PLC
1.083% due 04/17/2044 •	GBP		19,614			23,572

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
LMREC, Inc.
3.484% due 02/22/2032 •	$		13,600	$		13,564
MASTR Adjustable Rate Mortgages Trust
2.897% due 01/25/2047 ^•			3,004			2,458
Merrill Lynch Mortgage Investors Trust
2.756% due 11/25/2035 •			37			36
4.121% due 04/25/2035 ~			2,337			2,237
Morgan Stanley Bank of America Merrill Lynch Trust
3.069% due 02/15/2048			3,100			3,100
3.557% due 12/15/2047			7,200			7,329
Morgan Stanley Mortgage Loan Trust
4.065% due 07/25/2035 ^~			2,784			2,563
MortgageIT Trust
2.816% due 12/25/2035 •			2,650			2,597
MSSG Trust
3.397% due 09/13/2039			17,400			17,061
Prime Mortgage Trust
2.906% due 02/25/2034 •			68			65
3.006% due 02/25/2035 •			3,219			3,103
RBSSP Resecuritization Trust
4.212% due 12/25/2035 ~			11,657			11,938
Residential Accredit Loans, Inc. Trust
2.606% due 05/25/2037 •			9,109			8,315
3.906% due 08/25/2036 ^•			3,852			3,689
4.745% due 12/25/2035 ^~			457			413
6.000% due 09/25/2036			899			791
6.500% due 09/25/2036 ^			5,910			4,285
Residential Asset Securitization Trust
2.956% due 10/25/2035 •			1,686			1,476
Residential Funding Mortgage Securities, Inc. Trust
5.500% due 11/25/2035 ^			1,691			1,626
6.000% due 06/25/2037 ^			2,552			2,375
Structured Adjustable Rate Mortgage Loan Trust
2.706% due 04/25/2047 •			1,925			1,747
Structured Asset Mortgage Investments Trust
2.720% due 07/19/2035 •			1,389			1,368
3.130% due 09/19/2032 •			19			18
Suntrust Adjustable Rate Mortgage Loan Trust
4.158% due 02/25/2037 ^~			2,428			2,177
Tharaldson Hotel Portfolio Trust
3.133% due 11/11/2034 •			8,483			8,429
Thornburg Mortgage Securities Trust
4.323% due 06/25/2047 ^•			10,508			9,603
4.373% due 03/25/2037 ^•			1,299			1,160
Wachovia Mortgage Loan Trust LLC
4.694% due 05/20/2036 ^~			2,506			2,456
WaMu Mortgage Pass-Through Certificates Trust
2.796% due 10/25/2045 •			306			303
3.006% due 02/25/2045 •			10,256			10,124
3.386% due 05/25/2037 ^~			4,489			3,744
3.693% due 12/25/2036 ^~			331			319
3.898% due 07/25/2037 ^~			2,366			2,182
Warwick Finance Residential Mortgages PLC
0.000% due 12/21/2049 (e)	GBP		0			1,876
1.710% due 12/21/2049 •			22,431			28,381
2.410% due 12/21/2049 •			2,259			2,863
2.910% due 12/21/2049 •			1,179			1,497
3.410% due 12/21/2049 •			674			854
3.910% due 12/21/2049 •			674			848
Wells Fargo Mortgage-Backed Securities Trust
4.309% due 07/25/2036 ^~	$		4,501			4,405
4.607% due 03/25/2036 ~			782			796
4.869% due 01/25/2035 ~			439			450
4.973% due 12/25/2034 ~			355			363
Total Non-Agency Mortgage-Backed Securities (Cost $454,116)						449,454
ASSET-BACKED SECURITIES 14.0%
Accredited Mortgage Loan Trust
2.636% due 02/25/2037 •			637			638
2.766% due 09/25/2036 •			7,862			7,673
Allegro CLO Ltd.
3.740% due 01/30/2026 •			5,238			5,240

16 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Ally Master Owner Trust
2.775% due 07/15/2022 •	$		19,600	$		19,540
American Express Credit Account Master Trust
1.640% due 12/15/2021			26,900			26,776
Ameriquest Mortgage Securities, Inc. Asset-Backed Pass-Through Certificates
2.976% due 11/25/2035 •			8,600			8,325
Argent Securities Trust
2.656% due 07/25/2036 •			18,824			7,036
2.696% due 03/25/2036 •			6,465			3,825
Atrium Corp.
3.299% due 04/22/2027 •			16,000			15,813
Avery Point CLO Ltd.
3.590% due 04/25/2026 •			8,186			8,188
Bear Stearns Asset-Backed Securities Trust
2.656% due 11/25/2036 •			9,101			8,874
2.666% due 08/25/2036 •			1,278			1,513
3.631% due 02/25/2035 •			7,077			7,110
Capital Auto Receivables Asset Trust
2.640% due 10/20/2020 •			9,200			9,193
CARDS Trust
2.715% due 10/17/2022 •			18,200			18,189
2.805% due 04/17/2023 •			16,900			16,925
3.047% due 04/17/2023			16,900			16,908
Cent CLO Ltd.
3.506% due 10/15/2026 •			16,800			16,661
Chase Issuance Trust
2.755% due 01/15/2022 •			14,300			14,325
Chesapeake Funding LLC
3.230% due 08/15/2030			13,700			13,766
Citigroup Mortgage Loan Trust
3.126% due 12/25/2035 •			576			577
6.750% due 05/25/2036 Ø			4,146			3,034
Countrywide Asset-Backed Certificates
2.646% due 06/25/2047 ^•			3,372			3,054
2.656% due 07/25/2036 ^•			2,947			2,944
2.656% due 01/25/2037 •			702			701
2.676% due 06/25/2037 •			3,118			3,112
2.736% due 05/25/2037 •			7,400			6,959
2.906% due 06/25/2036 •			6,600			6,476
3.256% due 05/25/2034 •			2,322			2,318
Countrywide Asset-Backed Certificates Trust
3.306% due 08/25/2047 •			1,549			1,537
Credit Suisse Mortgage Capital Trust
4.500% due 03/25/2021			10,026			10,063
Credit-Based Asset Servicing & Securitization Trust
2.566% due 11/25/2036 •			399			250
Discover Card Execution Note Trust
2.995% due 09/15/2021 •			14,200			14,210
EMC Mortgage Loan Trust
3.246% due 05/25/2040 •			109			108
Figueroa CLO Ltd.
3.336% due 01/15/2027 •			16,800			16,788
3.642% due 06/20/2027 •			16,800			16,694
First Franklin Mortgage Loan Trust
3.241% due 09/25/2035 •			741			744
Flagship Credit Auto Trust
1.850% due 07/15/2021			1,888			1,879
Ford Credit Floorplan Master Owner Trust
2.735% due 05/15/2023 •			28,800			28,668
Fremont Home Loan Trust
2.566% due 01/25/2037 •			75			42
2.916% due 11/25/2035 •			8,100			7,323
Golden Credit Card Trust
2.855% due 02/15/2021 •			14,400			14,401
GSAA Trust
5.995% due 03/25/2046 ^~			9,424			6,346
GSAMP Trust
2.596% due 06/25/2036 •			4,302			2,830
Halcyon Loan Advisors Funding Ltd.
3.569% due 10/22/2025 •			21,500			21,460
Home Equity Loan Trust
2.736% due 04/25/2037 •			19,200			17,227

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Hyundai Auto Lease Securitization Trust
2.735% due 12/16/2019 •	$		1,882	$		1,882
Jamestown CLO Ltd.
3.320% due 07/25/2027 •			6,400			6,337
JMP Credit Advisors CLO Ltd.
3.299% due 01/17/2028 •			20,800			20,751
JPMorgan Mortgage Acquisition Corp.
2.896% due 05/25/2035 •			4,500			4,459
2.916% due 10/25/2035 ^•			7,200			6,962
JPMorgan Mortgage Acquisition Trust
2.766% due 03/25/2037 •			1,900			1,867
Lehman XS Trust
2.686% due 06/25/2036 •			2,810			2,393
LoanCore Issuer Ltd.
3.585% due 05/15/2028 •			16,700			16,681
Long Beach Mortgage Loan Trust
5.506% due 11/25/2032 •			10			11
LP Credit Card ABS Master Trust
3.830% due 08/20/2024 •			18,907			18,951
MASTR Asset-Backed Securities Trust
2.746% due 03/25/2036 •			5,929			4,291
3.086% due 12/25/2035 •			4,906			4,906
MidOcean Credit CLO
3.236% due 04/15/2027 •			4,700			4,687
Monarch Grove CLO
3.370% due 01/25/2028 •			10,600			10,493
Morgan Stanley ABS Capital, Inc. Trust
2.656% due 07/25/2036 •			7,925			4,038
2.756% due 08/25/2036 •			14,771			9,447
Mountain Hawk CLO Ltd.
3.645% due 04/18/2025 •			9,611			9,615
Navient Private Education Loan Trust
3.955% due 01/16/2035 •			634			634
NovaStar Mortgage Funding Trust
2.746% due 11/25/2036 •			3,136			1,432
OCP CLO Ltd.
3.236% due 07/15/2027 •			11,600			11,508
OneMain Direct Auto Receivables Trust
3.430% due 12/16/2024			16,800			16,840
Option One Mortgage Loan Trust
2.646% due 03/25/2037 •			6,486			5,800
2.726% due 05/25/2037 •			11,949			8,287
Option One Mortgage Loan Trust Asset-Backed Certificates
2.966% due 11/25/2035 •			13,900			13,357
OSCAR U.S. Funding Trust LLC
2.910% due 04/12/2021			3,428			3,423
Palmer Square CLO Ltd.
3.466% due 08/15/2026 •			12,769			12,693
RAAC Trust
2.846% due 02/25/2036 •			1,168			1,164
Renaissance Home Equity Loan Trust
5.285% due 01/25/2037 Ø			12,752			6,749
Residential Asset Mortgage Products Trust
3.186% due 04/25/2035 •			7,300			7,286
Residential Asset Securities Corp. Trust
2.666% due 06/25/2036 •			835			835
2.746% due 09/25/2036 •			8,500			8,422
2.756% due 04/25/2037 •			3,783			3,746
2.906% due 02/25/2036 •			6,500			6,191
3.166% due 12/25/2035 •			5,106			4,220
3.376% due 05/25/2035 •			634			637
Santander Retail Auto Lease Trust
2.710% due 10/20/2020			11,521			11,500
Securitized Asset-Backed Receivables LLC Trust
2.636% due 05/25/2037 ^•			1,198			891
SG Mortgage Securities Trust
2.776% due 02/25/2036 •			2,697			1,788
SLM Student Loan Trust
0.000% due 12/15/2023 •	EUR		1,981			2,265
3.258% due 12/15/2027 •	$		11,543			11,555
3.338% due 12/15/2025 •			14,604			14,679
SMB Private Education Loan Trust
2.805% due 03/16/2026 •			9,235			9,230

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
SoFi Professional Loan Program Trust
2.640% due 08/25/2047	$		16,227	$		16,155
Soundview Home Loan Trust
2.616% due 02/25/2037 •			1,864			712
3.406% due 10/25/2037 •			20,921			17,421
Specialty Underwriting & Residential Finance Trust
2.656% due 11/25/2037 •			17,398			13,043
Structured Asset Securities Corp. Mortgage Loan Trust
2.956% due 05/25/2037 •			6,600			6,262
Sudbury Mill CLO Ltd.
3.599% due 01/17/2026 •			7,811			7,807
3.619% due 01/17/2026 •			7,811			7,815
Symphony CLO Ltd.
3.466% due 10/15/2025 •			16,595			16,474
Telos CLO Ltd.
3.719% due 01/17/2027 •			9,400			9,400
Tralee CLO Ltd.
3.869% due 10/20/2028 •			15,100			14,849
Upstart Securitization Trust
3.887% due 08/20/2025			4,800			4,790
VB-S1 Issuer LLC
6.901% due 06/15/2046			2,400			2,492
Venture CLO Ltd.
3.256% due 04/15/2027 •			12,600			12,510
3.286% due 01/15/2028 •			9,700			9,613
Vericrest Opportunity Loan Transferee LLC
3.250% due 06/25/2047 Ø			4,119			4,109
Volkswagen Auto Loan Enhanced Trust
3.050% due 08/20/2021			16,300			16,325
Voya CLO Ltd.
3.210% due 07/25/2026 •			7,525			7,516
WaMu Asset-Backed Certificates WaMu Trust
2.756% due 04/25/2037 •			6,570			3,422
Wells Fargo Home Equity Asset-Backed Securities Trust
3.391% due 11/25/2035 •			1,700			1,706
Westlake Automobile Receivables Trust
2.980% due 01/18/2022			9,200			9,197
Zais CLO Ltd.
3.586% due 04/15/2028 •			17,700			17,666
Total Asset-Backed Securities (Cost $885,460)						908,450
SOVEREIGN ISSUES 3.0%
Argentina Government International Bond
4.000% due 03/06/2020	ARS		268,800			8,784
59.257% (ARLLMONP) due 06/21/2020 ~(a)			1,990			57
Autonomous Community of Catalonia
4.950% due 02/11/2020	EUR		9,600			11,456
Development Bank of Japan, Inc.
2.125% due 09/01/2022	$		18,000			17,491
Japan Finance Organization for Municipalities
2.625% due 04/20/2022			21,400			21,141
3.375% due 09/27/2023			26,400			26,844
Japan International Cooperation Agency
2.750% due 04/27/2027			14,000			13,568
Province of Ontario
1.650% due 09/27/2019			2,700			2,679
3.150% due 06/02/2022	CAD		7,300			5,490
4.000% due 10/07/2019	$		700			706
4.000% due 06/02/2021	CAD		20,500			15,657
4.200% due 06/02/2020			12,000			9,054
4.400% due 06/02/2019			5,400			3,997
4.400% due 04/14/2020	$		600			613
Province of Quebec
2.750% due 08/25/2021			16,400			16,412
3.500% due 07/29/2020			2,900			2,937
3.500% due 12/01/2022	CAD		6,000			4,583
3.750% due 09/01/2024			4,600			3,586
4.500% due 12/01/2020			2,400			1,838
Provincia de Buenos Aires
53.677% due 04/12/2025 •(a)	ARS		35,575			810
Qatar Government International Bond
3.875% due 04/23/2023	$		18,100			18,334

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 17

Schedule of Investments PIMCO Total Return Portfolio (Cont.)

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
Republic of Greece Government International Bond
4.750% due 04/17/2019	EUR		5,300	$		6,143
Total Sovereign Issues (Cost $211,600)						192,180
SHORT-TERM INSTRUMENTS 1.6%
CERTIFICATES OF DEPOSIT 0.2%
Lloyds Bank Corporate Markets PLC
3.324% (US0003M + 0.500%) due 09/24/2020 ~	$		16,500			16,504
COMMERCIAL PAPER 0.2%
Mondelez International, Inc.
3.100% due 02/27/2019			16,300			16,220
REPURCHASE AGREEMENTS (j) 0.3%
						17,110

		PRINCIPAL AMOUNT (000S)			MARKET VALUE (000S)
ARGENTINA TREASURY BILLS 0.3%
0.810% due 02/22/2019 - 05/31/2019 (d)(e)	ARS		686,249	$		19,367
GREECE TREASURY BILLS 0.3%
1.251% due 03/15/2019 (d)(e)	EUR		14,800			16,932
U.S. TREASURY BILLS 0.3%
2.345% due 01/03/2019 - 02/26/2019 (d)(e)(m)(o)	$		19,041			18,995
Total Short-Term Instruments (Cost $106,423)						105,128
Total Investments in Securities (Cost $9,128,437)						9,138,631

	SHARES			MARKET VALUE (000S)
INVESTMENTS IN AFFILIATES 8.0%
SHORT-TERM INSTRUMENTS 8.0%
CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 8.0%
PIMCO Short Asset Portfolio		37,563,090	$		372,701
PIMCO Short-Term Floating NAV Portfolio III		14,406,192			142,391
Total Short-Term Instruments (Cost $518,383)					515,092
Total Investments in Affiliates (Cost $518,383)					515,092
Total Investments 149.3% (Cost $9,646,820)			$		9,653,723
Financial Derivative Instruments (l)(n) 0.2% (Cost or Premiums, net $(10,803))					11,210
Other Assets and Liabilities, net (49.5)%					(3,199,589	)
Net Assets 100.0%			$		6,465,344

NOTES TO SCHEDULE OF INVESTMENTS:

* A zero balance may reflect actual amounts rounding to less than one thousand.

^ Security is in default.

« Security valued using significant unobservable inputs (Level 3).

~ Variable or Floating rate security. Rate shown is the rate in effect as of period end. Certain variable rate securities are not based on a published reference rate and spread, rather are determined by the issuer or agent and are based on current market conditions. Reference rate is as of reset date, which may vary by security. These securities may not indicate a reference rate and/or spread in their description.

• Rate shown is the rate in effect as of period end. The rate may be based on a fixed rate, a capped rate or a floor rate and may convert to a variable or floating rate in the future. These securities do not indicate a reference rate and spread in their description.

Ø Coupon represents a rate which changes periodically based on a predetermined schedule or event. Rate shown is the rate in effect as of period end.

(a) Interest only security.

(b) Payment in-kind security.

(c) Security is not accruing income as of the date of this report.

(d) Coupon represents a weighted average yield to maturity.

(e) Zero coupon security.

(f) Principal amount of security is adjusted for inflation.

(g) Perpetual maturity; date shown, if applicable, represents next contractual call date.

(h) Contingent convertible security.

(i)  RESTRICTED SECURITIES:

Issuer Description	Coupon	Maturity Date		Acquisition Date		Cost		Market Value		Market Value as Percentage of Net Assets
Lloyds Banking Group PLC	3.679%		09/04/2019		05/22/2018	$	1,400	$	1,396		0.02	%
Lloyds Banking Group PLC	3.679		09/02/2020		05/22/2018		1,400		1,391		0.02
Lloyds Banking Group PLC	3.679		09/02/2021		05/22/2018		1,400		1,385		0.02
						$	4,200	$	4,172		0.06	%

18 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

BORROWINGS AND OTHER FINANCING TRANSACTIONS

(j)  REPURCHASE AGREEMENTS:

Counterparty	Lending Rate			Settlement Date		Maturity Date		Principal Amount		Collateralized By	Collateral (Received)			Repurchase Agreements, at Value		Repurchase Agreement Proceeds to be Received(1)
BOS		2.150	%		12/19/2018		01/03/2019	$	3,394	Pacific Gas & Electric Co. 3.950% due 12/01/2047	$	(3,383	)	$	3,394	$	3,397
BOS		2.150			01/03/2019		01/17/2019		3,350	Pacific Gas & Electric Co. 3.950% due 12/01/2047		(3,383	)		3,350		3,353
FICC		2.000			12/31/2018		01/02/2019		5,611	U.S. Treasury Notes 2.875% due 09/30/2023		(5,727	)		5,611		5,611
SAL		2.030			12/18/2018		01/03/2019		2,395	Pacific Gas & Electric Co. 3.950% due 12/01/2047		(2,384	)		2,395		2,397
SAL		2.100			01/03/2019		01/17/2019		2,360	Pacific Gas & Electric Co. 3.950% due 12/01/2047		(2,383	)		2,360		2,362
Total Repurchase Agreements											$	(17,260	)	$	17,110	$	17,120

REVERSE REPURCHASE AGREEMENTS:

Counterparty	Borrowing Rate(2)			Settlement Date		Maturity Date			Amount Borrowed(2)				Payable for Reverse Repurchase Agreements
BOM		2.740	%		12/31/2018		02/28/2019			$	(32,482	)	$	(32,487	)
BRC		(0.850	)		11/19/2018		TBD	(3)		EUR	(773	)		(885	)
		2.450			12/24/2018		TBD	(3)		$	(2,576	)		(2,577	)
TDM		2.350			12/21/2018		TBD	(3)			(962	)		(963	)
Total Reverse Repurchase Agreements													$	(36,912	)

SALE-BUYBACK TRANSACTIONS:

Counterparty	Borrowing Rate(2)			Borrowing Date		Maturity Date		Amount Borrowed(2)			Payable for Sale-Buyback Transactions(4)
MSC		4.000	%		12/31/2018		01/02/2019	$	(10,767	)	$	(10,768	)
Total Sale-Buyback Transactions											$	(10,768	)

SHORT SALES:

Description	Coupon			Maturity Date		Principal Amount		Proceeds			Payable for Short Sales(5)
Corporate Bonds & Notes (0.1)%
Utilities (0.1)%
Pacific Gas & Electric Co.		3.950	%		12/01/2047	$	7,500	$	(5,656	)	$	(5,767	)
Total Corporate Bonds & Notes									(5,656	)		(5,767	)
U.S. Government Agencies (2.4)%
Freddie Mac, TBA		4.000			01/01/2049		152,000		(152,952	)		(154,965	)
Total Short Sales (2.5)%								$	(158,608	)	$	(160,732	)

BORROWINGS AND OTHER FINANCING TRANSACTIONS SUMMARY

The following is a summary by counterparty of the market value of Borrowings and Other Financing Transactions and collateral pledged/(received) as of December 31, 2018:

Counterparty	Repurchase Agreement Proceeds to be Received(1)		Payable for Reverse Repurchase Agreements			Payable for Sale-Buyback Transactions			Payable for Short  Sales(5)			Total Borrowings and Other Financing Transactions			Collateral Pledged/(Received)			Net Exposure(6)
Global/Master Repurchase Agreement
BOM	$	0	$	(32,487	)	$	0		$	0		$	(32,487	)	$	32,441		$	(45	)
BOS		6,750		0			0			0			6,750			(6,766	)		(16	)
BRC		0		(3,462	)		0			0			(3,462	)		3,622			160
FICC		5,611		0			0			0			5,611			(5,727	)		(116	)
SAL		4,759		0			0			0			4,759			(4,767	)		(8	)
TDM		0		(963	)		0			0			(963	)		972			9
Master Securities Forward Transaction Agreement
MSC		0		0			(10,768	)		(5,767	)		(16,535	)		10,739			(5,796	)
Total Borrowings and Other Financing Transactions	$	17,120	$	(36,912	)	$	(10,768	)	$	(5,767	)

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 19

Schedule of Investments PIMCO Total Return Portfolio (Cont.)

CERTAIN TRANSFERS ACCOUNTED FOR AS SECURED BORROWINGS

Remaining Contractual Maturity of the Agreements

	Overnight and Continuous		Up to 30 days			31-90 days			Greater Than 90 days			Total
Reverse Repurchase Agreements
Corporate Bonds & Notes	$	0	$	0		$	0		$	(4,425	)	$	(4,425	)
U.S. Treasury Obligations		0		0			(32,487	)		0			(32,487	)
Total	$	0	$	0		$	(32,487	)	$	(4,425	)	$	(36,912	)
Sale-Buyback Transactions
U.S. Treasury Obligations		0		(10,768	)		0			0			(10,768	)
Total	$	0	$	(10,768	)	$	0		$	0		$	(10,768	)
Total Borrowings	$	0	$	(10,768	)	$	(32,487	)	$	(4,425	)	$	(47,680	)
Payable for reverse repurchase agreements and sale-buyback financing transactions												$	(47,680	)

(k) Securities with an aggregate market value of $47,774 have been pledged as collateral under the terms of the above master agreements as of December 31, 2018.

⁽¹⁾ Includes accrued interest.

⁽²⁾ The average amount of borrowings outstanding during the period ended December 31, 2018 was $(854,861) at a weighted average interest rate of 1.978%. Average borrowings may include sale-buyback transactions and reverse repurchase agreements, if held during the period.

⁽³⁾ Open maturity reverse repurchase agreement.

⁽⁴⁾ Payable for sale-buyback transactions includes $(1) of deferred price drop.

⁽⁵⁾ Payable for short sales includes $26 of accrued interest.

⁽⁶⁾ Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from borrowings and other financing transactions can only be netted across transactions governed under the same master agreement with the same legal Entity. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information regarding master netting arrangements.

(l)  FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED

PURCHASED OPTIONS:

OPTIONS ON EXCHANGE-TRADED FUTURES CONTRACTS

Description	Strike Price		Expiration Date		# of Contracts		Notional Amount		Cost		Market Value
Put - CBOT U.S. Treasury 10-Year Note March 2019 Futures	$	106.500		02/22/2019		2,935	$	2,935	$	25	$	3
Call - CBOT U.S. Treasury 10-Year Note March 2019 Futures		131.500		02/22/2019		784		784		7		11
Call - CBOT U.S. Treasury 10-Year Note March 2019 Futures		132.000		02/22/2019		385		385		3		5
Call - CBOT U.S. Treasury 10-Year Note March 2019 Futures		133.500		02/22/2019		118		118		1		0
Call - CBOT U.S. Treasury 10-Year Note March 2019 Futures		136.500		02/22/2019		3		3		0		0
Call - CBOT U.S. Treasury 10-Year Note March 2019 Futures		137.500		02/22/2019		17		17		0		0
Call - CBOT U.S. Treasury 30-Year Bond March 2019 Futures		169.000		02/22/2019		3,429		3,429		28		103
Put - CBOT U.S. Treasury 5-Year Note March 2019 Futures		103.750		02/22/2019		19,284		19,284		165		21
Put - CBOT U.S. Treasury Ultra Long-Term Bond March 2019 Futures		110.000		02/22/2019		256		256		2		0
Put - CBOT U.S. Treasury Ultra Long-Term Bond March 2019 Futures		119.000		02/22/2019		2,490		2,490		21		3
Put - CBOT U.S. Treasury Ultra Long-Term Bond March 2019 Futures		120.000		02/22/2019		279		279		3		0
Total Purchased Options									$	255	$	146

FUTURES CONTRACTS:

LONG FUTURES CONTRACTS

Description	Expiration Month		# of Contracts		Notional Amount			Unrealized Appreciation/ (Depreciation)			Variation Margin
											Asset		Liability
3-Month Euribor June Futures		06/2019		3,563		$	1,023,536	$	(7	)	$	0	$	(51	)
90-Day Eurodollar March Futures		03/2019		782			190,202		8			0		0
Call Options Strike @ EUR 160.000 on Euro-BTP Italy Government Bond March 2019 Futures		02/2019		674			8		(1	)		0		0
Call Options Strike @ EUR 162.000 on Euro-OAT France Government 10-Year Bond March 2019 Futures		02/2019		900			10		(1	)		0		0
Call Options Strike @ EUR 166.000 on Euro-OAT France Government 10-Year Bond March 2019 Futures		02/2019		1,755			20		(2	)		0		0
Euro-Bund 10-Year Bond March Futures		03/2019		3,301			618,528		4,658			0		(719	)
Put Options Strike @ EUR 147.000 on Euro-Bund 10-Year Bond March 2019 Futures		02/2019		2,894			33		(3	)		0		0

20 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

Description	Expiration Month		# of Contracts		Notional Amount				Unrealized Appreciation/ (Depreciation)			Variation Margin
												Asset		Liability
Put Options Strike @ EUR 149.500 on Euro-Bund 10-Year Bond March 2019 Futures		02/2019		264		$	3		$	0		$	0	$	0
U.S. Treasury 5-Year Note March Futures		03/2019		17,493			2,006,228			33,103			4,373		0
U.S. Treasury Ultra Long-Term Bond March Futures		03/2019		3,797			610,012			31,791			2,255		0
									$	69,546		$	6,628	$	(770	)
SHORT FUTURES CONTRACTS
	Expiration Month		# of Contracts		Notional Amount				Unrealized Appreciation/ (Depreciation)			Variation Margin
Description												Asset		Liability
90-Day Eurodollar December Futures		12/2020		972		$	(236,998	)	$	(1,010	)	$	0	$	(85	)
90-Day Eurodollar June Futures		06/2020		2,991			(729,094	)		(1,606	)		3		(168	)
90-Day Eurodollar March Futures		03/2020		561			(136,667	)		(505	)		0		(28	)
90-Day Eurodollar September Futures		09/2020		1,616			(394,082	)		(714	)		0		(87	)
Australia Government 10-Year Bond March Futures		03/2019		2,378			(222,223	)		(2,782	)		0		(1,053	)
Canada Government 10-Year Bond March Futures		03/2019		545			(54,600	)		(1,685	)		20		0
Euro-BTP Italy Government Bond March Futures		03/2019		4,741			(694,318	)		(25,971	)		0		(326	)
Euro-Buxl 30-Year Bond March Futures		03/2019		782			(161,831	)		(3,836	)		735		0
Euro-OAT France Government 10-Year Bond March Futures		03/2019		3,602			(622,350	)		(275	)		866		0
U.S. Treasury 10-Year Note March Futures		03/2019		1,567			(191,198	)		(3,087	)		0		(513	)
U.S. Treasury 30-Year Bond March Futures		03/2019		3,101			(452,746	)		(20,681	)		0		(1,454	)
United Kingdom Long Gilt March Futures		03/2019		398			(62,483	)		(571	)		66		(203	)
									$	(62,723	)	$	1,690	$	(3,917	)
Total Futures Contracts									$	6,823		$	8,318	$	(4,687	)

SWAP AGREEMENTS:

CREDIT DEFAULT SWAPS ON CORPORATE ISSUES - SELL PROTECTION⁽¹⁾

	Fixed Receive Rate			Payment Frequency	Maturity Date		Implied Credit Spread at December 31, 2018(3)			Notional Amount(4)		Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Market Value(5)			Variation Margin
Reference Entity																					Asset		Liability
General Electric Co.		1.000	%	Quarterly		12/20/2023		2.039	%	$	12,400	$	(703	)	$	143		$	(560	)	$	4	$	0
Morgan Stanley		1.000		Quarterly		12/20/2020		0.467			12,100		201			(73	)		128			0		(1	)
Rolls-Royce PLC		1.000		Quarterly		12/20/2023		1.289		EUR	14,400		(199	)		(26	)		(225	)		5		0
Tesco PLC		1.000		Quarterly		06/20/2022		1.146			15,000		(732	)		652			(80	)		0		(17	)
												$	(1,433	)	$	696		$	(737	)	$	9	$	(18	)

CREDIT DEFAULT SWAPS ON CREDIT INDICES - BUY PROTECTION⁽²⁾

Index/Tranches	Fixed (Pay) Rate			Payment Frequency		Maturity Date		Notional Amount(4)		Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)		Market Value(5)			Variation Margin
																		Asset		Liability
CDX.IG-30 5-Year Index		(1.000	)%		Quarterly		06/20/2023	$	146,700	$	(2,546	)	$	1,304	$	(1,242	)	$	0	$	(50	)

CREDIT DEFAULT SWAPS ON CREDIT INDICES - SELL PROTECTION⁽¹⁾

Index/Tranches	Fixed Receive Rate			Payment Frequency		Maturity Date		Notional Amount(4)		Premiums Paid/(Received)		Unrealized Appreciation/ (Depreciation)			Market Value(5)		Variation Margin
																	Asset		Liability
CDX.HY-30 5-Year Index		5.000	%		Quarterly		06/20/2023	$	16,300	$	993	$	(463	)	$	530	$	24	$	0
CDX.HY-31 5-Year Index		5.000			Quarterly		12/20/2023		2,700		143		(83	)		60		4		0
CDX.IG-31 5-Year Index		1.000			Quarterly		12/20/2023		506,300		5,364		(2,335	)		3,029		186		0
										$	6,500	$	(2,881	)	$	3,619	$	214	$	0

INTEREST RATE SWAPS

Pay/Receive Floating Rate	Floating Rate Index	Fixed Rate	Payment Frequency	Maturity Date		Notional Amount		Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Market Value			Variation Margin
																	Asset		Liability
Receive	3-Month CAD-Bank Bill	1.750%	Semi-Annual		12/16/2046	CAD	5,800	$	712		$	113		$	825		$	25	$	0
Pay	3-Month USD-LIBOR	1.951	Semi-Annual		12/05/2019	$	539,400		0			(4,295	)		(4,295	)		0		(27	)
Pay	3-Month USD-LIBOR	2.800	Semi-Annual		08/22/2023		180,000		(4,137	)		7,228			3,091			352		0
Pay(6)	6-Month EUR-EURIBOR	1.000	Annual		03/20/2029	EUR	218,500		(950	)		4,611			3,661			320		0

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 21

Schedule of Investments PIMCO Total Return Portfolio (Cont.)

Pay/Receive Floating Rate	Floating Rate Index	Fixed Rate	Payment Frequency		Maturity Date		Notional Amount		Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Market Value			Variation Margin
																		Asset		Liability
Pay(6)	6-Month EUR-EURIBOR	1.000%		Annual		06/19/2029	EUR	79,600	$	248		$	622		$	870		$	120	$	0
Pay	6-Month EUR-EURIBOR	1.613		Annual		07/04/2042		26,000		0			1,862			1,862			32		0
Pay	6-Month EUR-EURIBOR	1.623		Annual		07/04/2042		27,400		0			2,028			2,028			34		0
Pay	6-Month EUR-EURIBOR	1.624		Annual		07/04/2042		63,600		0			4,731			4,731			80		0
Pay(6)	6-Month EUR-EURIBOR	1.500		Annual		03/20/2049		22,600		(452	)		1,180			728			20		0
Receive(6)	6-Month GBP-LIBOR	1.250		Semi-Annual		03/20/2024	GBP	80,300		1,487			(1,146	)		341			0		(139	)
Receive(6)	6-Month GBP-LIBOR	1.500		Semi-Annual		03/20/2029		66,400		1,142			(1,589	)		(447	)		0		(318	)
Receive(6)	6-Month GBP-LIBOR	1.750		Semi-Annual		03/20/2049		28,100		(173	)		(1,674	)		(1,847	)		0		(315	)
Receive(6)	6-Month GBP-LIBOR	1.750		Semi-Annual		06/19/2049		37,500		(2,604	)		202			(2,402	)		0		(422	)
Receive	6-Month JPY-LIBOR	0.300		Semi-Annual		03/18/2026	JPY	65,350,000		(3,919	)		(6,110	)		(10,029	)		38		(36	)
Receive	6-Month JPY-LIBOR	0.300		Semi-Annual		09/20/2027		7,200,000		(375	)		(651	)		(1,026	)		0		(10	)
Receive	6-Month JPY-LIBOR	0.300		Semi-Annual		03/20/2028		1,700,000		118			(347	)		(229	)		0		(4	)
Pay	6-Month JPY-LIBOR	0.380		Semi-Annual		06/18/2028		17,350,000		663			2,706			3,369			57		0
Receive	6-Month JPY-LIBOR	0.399		Semi-Annual		06/18/2028		2,750,000		(2	)		(577	)		(579	)		0		(9	)
Receive(6)	6-Month JPY-LIBOR	0.450		Semi-Annual		03/20/2029		2,870,000		(212	)		(465	)		(677	)		0		(13	)
Receive	6-Month JPY-LIBOR	0.750		Semi-Annual		03/20/2038		8,990,000		338			(3,905	)		(3,567	)		0		(30	)
Receive	6-Month JPY-LIBOR	0.800		Semi-Annual		10/22/2038		690,000		0			(323	)		(323	)		0		(6	)
Receive	6-Month JPY-LIBOR	0.705		Semi-Annual		10/31/2038		2,050,000		131			(736	)		(605	)		0		(18	)
Receive	6-Month JPY-LIBOR	0.785		Semi-Annual		11/12/2038		1,050,000		4			(461	)		(457	)		0		(10	)
Receive	6-Month JPY-LIBOR	0.750		Semi-Annual		12/20/2038		8,880,000		538			(3,758	)		(3,220	)		0		(82	)
Receive	6-Month JPY-LIBOR	1.000		Semi-Annual		03/21/2048		720,000		(22	)		(504	)		(526	)		3		0
Pay	28-Day MXN-TIIE	8.075		Lunar		08/26/2020	MXN	2,293,300		(1,332	)		334			(998	)		175		0
Pay	28-Day MXN-TIIE	8.700		Lunar		11/02/2020		1,954,600		(113	)		259			146			161		0
Pay	28-Day MXN-TIIE	8.735		Lunar		11/06/2020		154,800		0			19			19			13		0
Pay	28-Day MXN-TIIE	8.720		Lunar		11/13/2020		200,400		(14	)		36			22			17		0
Receive	28-Day MXN-TIIE	8.683		Lunar		11/27/2020		1,511,600		0			(96	)		(96	)		0		(127	)
Receive	28-Day MXN-TIIE	8.855		Lunar		12/03/2020		2,757,900		51			(720	)		(669	)		0		(236	)
									$	(8,873	)	$	(1,426	)	$	(10,299	)	$	1,447	$	(1,802	)
Total Swap Agreements									$	(6,352	)	$	(2,307	)	$	(8,659	)	$	1,670	$	(1,870	)

FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED SUMMARY

The following is a summary of the market value and variation margin of Exchange-Traded or Centrally Cleared Financial Derivative Instruments as of December 31, 2018:

	Financial Derivative Assets								Financial Derivative Liabilities
	Market Value		Variation Margin Asset						Market Value		Variation Margin Liability
	Purchased Options		Futures		Swap Agreements		Total		Written Options		Futures		Swap Agreements		Total
Total Exchange-Traded or Centrally Cleared	$	146	$	8,318	$	1,670	$	10,134	$	0	$	(4,687)	$	(1,870)	$	(6,557)

(m) Securities with an aggregate market value of $21,955 and cash of $78,751 have been pledged as collateral for exchange-traded and centrally cleared financial derivative instruments as of December 31, 2018. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information regarding master netting arrangements.

⁽¹⁾ If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽²⁾ If the Portfolio is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽³⁾ Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate or sovereign issues as of period end serve as indicators of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

⁽⁴⁾ The maximum potential amount the Portfolio could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

⁽⁵⁾ The prices and resulting values for credit default swap agreements serve as indicators of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced indices’ credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

⁽⁶⁾ This instrument has a forward starting effective date. See Note 2, Securities Transactions and Investment Income, in the Notes to Financial Statements for further information.

22 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

(n)  FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER

FORWARD FOREIGN CURRENCY CONTRACTS:

Counterparty	Settlement Month		Currency to be Delivered		Currency to be Received		Unrealized Appreciation/ (Depreciation)
							Asset		Liability
AZD		02/2019	$	15,226	JPY	1,721,300	$	528	$	0
		03/2019		34,743	SGD	47,372		75		0
BOA		01/2019	ARS	148,581	$	3,650		0		(225	)
		01/2019	CAD	64,095		48,130		1,169		0
		01/2019	MXN	336,250		16,534		0		(559	)
		01/2019	$	14,993	EUR	13,133		64		0
		02/2019	GBP	60,235	$	76,756		104		(286	)
		02/2019	JPY	800,500		7,260		0		(66	)
		03/2019	$	9,931	SGD	13,586		54		0
BPS		01/2019	MXN	539,354	$	26,463		0		(955	)
		02/2019	$	17,599	JPY	1,975,700		482		0
		03/2019		17,715	SGD	24,196		69		0
		03/2019		18,328	TRY	104,845		738		0
		05/2019	ARS	160,524	$	3,666		0		(5	)
BRC		01/2019		111,641		2,800		0		(79	)
		01/2019	$	1,661	ARS	64,273		15		0
		02/2019	EUR	9,840	$	11,245		0		(70	)
		02/2019	GBP	65,514		83,974		294		0
		02/2019	JPY	17,865,200		159,110		0		(4,390	)
		02/2019	$	6,632	EUR	5,792		28		0
		02/2019		11,529	GBP	9,065		59		(9	)
		04/2019	ARS	71,564	$	1,661		0		(1	)
CBK		01/2019	BRL	7,601		1,947		0		(14	)
		01/2019	JPY	2,850,000		25,223		0		(796	)
		01/2019	MXN	961,342		46,726		0		(2,143	)
		01/2019	$	1,962	BRL	7,601		0		0
		01/2019		45,152	TRY	295,258		10,237		0
		02/2019	EUR	10,959	$	12,527		0		(74	)
		02/2019	GBP	46,828		60,470		957		(300	)
		02/2019	JPY	45,200,000		403,697		0		(9,871	)
		02/2019	NOK	1,090		129		2		0
		02/2019	$	22,241	EUR	19,466		152		(9	)
		02/2019		22,908	GBP	17,808		0		(162	)
		02/2019		195,786	JPY	22,111,700		6,578		0
		03/2019		387	KRW	433,985		4		0
FBF		04/2019	CNH	1,796	$	256		0		(5	)
GLM		01/2019	ARS	207,707		5,300		0		(131	)
		01/2019	AUD	6,454		4,629		82		0
		01/2019	BRL	4,400		1,136		0		0
		01/2019	MXN	1,537,704		74,789		0		(3,379	)
		01/2019	$	4,969	AUD	6,798		0		(180	)
		01/2019		1,168	BRL	4,400		0		(33	)
		01/2019		6,569	RUB	435,076		0		(343	)
		02/2019	EUR	15,186	$	17,406		1		(57	)
		02/2019	ILS	1,659		451		6		0
		02/2019	$	16,502	EUR	14,452		116		0
		02/2019		210,810	GBP	164,792		468		(790	)
		02/2019		280,805	JPY	31,710,000		9,333		0
HUS		01/2019	MXN	1,377,249	$	68,510		0		(1,343	)
		01/2019	$	2,162	ARS	84,308		37		0
		01/2019		24,172	JPY	2,736,000		807		0
		01/2019		81,067	MXN	1,667,812		3,561		0
		02/2019	EUR	8,313	$	9,520		0		(39	)
		02/2019	JPY	15,529,100		138,043		0		(4,077	)
		02/2019	$	53,825	EUR	47,228		481		0
		02/2019		119,298	JPY	13,490,000		4,132		0
		03/2019	EUR	15,400	$	19,672		1,922		0
		03/2019	SGD	35,003		25,552		0		(175	)
		03/2019	THB	32,947		1,001		0		(13	)
		04/2019	ARS	3,722		88		0		(1	)
		05/2019	$	3,685	ARS	160,524		0		(15	)
IND		01/2019		19,699	MXN	401,115		691		0
		02/2019		171,729	JPY	19,400,000		5,664		0
		03/2019		10,089	SGD	13,759		24		0

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 23

Schedule of Investments PIMCO Total Return Portfolio (Cont.)

Counterparty	Settlement Month		Currency to be Delivered		Currency to be Received		Unrealized Appreciation/ (Depreciation)
							Asset		Liability
JPM		01/2019	AUD	5,840	$	4,312	$	198	$	0
		01/2019	BRL	41,200		11,158		528		0
		01/2019	$	10,633	BRL	41,200		0		(3	)
		01/2019		32,583	MXN	665,255		1,158		0
		02/2019	EUR	3,706	$	4,253		0		(9	)
		02/2019	GBP	7,639		9,672		0		(85	)
		02/2019	JPY	10,507,500		93,915		0		(2,248	)
		02/2019	TRY	458,926		76,766		0		(7,724	)
		02/2019	$	20,080	JPY	2,251,100		522		0
		03/2019	SGD	12,987	$	9,479		0		(67	)
MSB		01/2019	BRL	36,800		9,497		2		0
		01/2019	$	9,431	BRL	36,800		64		0
MYI		01/2019		19,398	MXN	394,866		674		0
		02/2019	JPY	23,717,900	$	213,250		0		(3,660	)
NGF		03/2019	INR	14,380		201		0		(4	)
RBC		02/2019	EUR	144,106		163,282		0		(2,420	)
		02/2019	$	14,144	GBP	10,943		0		(167	)
SCX		01/2019	AUD	6,302	$	4,605		165		0
		01/2019	$	49,621	GBP	38,810		0		(134	)
		01/2019		8,505	TRY	56,334		2,063		0
		02/2019	RUB	397,353	$	5,992		318		0
SOG		03/2019	SGD	38,838		28,358		0		(187	)
SSB		01/2019	$	911	MXN	18,588		33		0
		03/2019	SGD	354	$	259		0		(1	)
UAG		01/2019	$	20,860	MXN	397,074		0		(721	)
		02/2019	GBP	162,773	$	210,186		2,277		0
		04/2019	EUR	5,500		6,933		575		0
Total Forward Foreign Currency Contracts							$	57,511	$	(48,025	)

PURCHASED OPTIONS:

INTEREST RATE SWAPTIONS

Counterparty	Description	Floating Rate Index	Pay/Receive Floating Rate	Exercise Rate			Expiration Date		Notional Amount			Cost		Market Value
BOA	Put - OTC 30-Year Interest Rate Swap	3-Month USD-LIBOR	Receive		2.945	%		12/09/2019		$	24,100	$	1,157	$	1,040
	Put - OTC 30-Year Interest Rate Swap	3-Month USD-LIBOR	Receive		2.945			12/11/2019			25,300		1,194		1,097
GLM	Put - OTC 30-Year Interest Rate Swap	3-Month USD-LIBOR	Receive		2.943			12/12/2019			6,100		293		266
												$	2,644	$	2,403

OPTIONS ON SECURITIES

Counterparty	Description	Strike Price		Expiration Date		Notional Amount			Cost		Market Value
GSC	Put - OTC Fannie Mae, TBA 4.000% due 01/01/2049	$	78.000		01/07/2019		$	45,000	$	4	$	0
JPM	Put - OTC Fannie Mae, TBA 3.000% due 01/01/2049		68.000		01/07/2019			5,000		0		0
	Put - OTC Fannie Mae, TBA 3.500% due 01/01/2049		69.000		01/07/2019			59,000		2		0
	Put - OTC Fannie Mae, TBA 4.000% due 01/01/2049		70.000		01/07/2019			24,000		1		0
	Put - OTC Fannie Mae, TBA 4.500% due 01/01/2049		71.000		01/07/2019			2,000		0		0
									$	7	$	0
Total Purchased Options									$	2,651	$	2,403

WRITTEN OPTIONS:

CREDIT DEFAULT SWAPTIONS ON CREDIT INDICES

Counterparty	Description	Buy/Sell Protection	Exercise Rate	Expiration Date		Notional Amount			Premiums (Received)			Market Value
BOA	Put - OTC CDX.IG-31 5-Year Index	Sell	1.000%		02/20/2019		$	54,900		$    (108	)	$	(117	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.100		02/20/2019			13,000		(15	)		(18	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.000		03/20/2019			16,900		(31	)		(55	)
	Put - OTC CDX.IG-31 5-Year Index	Sell	1.200		03/20/2019			26,000		(29	)		(44	)
BRC	Put - OTC CDX.IG-31 5-Year Index	Sell	1.050		02/20/2019			23,100		(40	)		(39	)

24 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

Counterparty	Description	Buy/Sell Protection	Exercise Rate	Expiration Date		Notional Amount			Premiums (Received)			Market Value
CBK	Put - OTC CDX.IG-31 5-Year Index	Sell	1.100%		02/20/2019		$	4,800	$	(5	)	$	(6	)
GST	Put - OTC CDX.IG-31 5-Year Index	Sell	2.400		09/18/2019			14,600		(25	)		(28	)
	Put - OTC iTraxx Europe 30 5-Year Index	Sell	2.400		09/18/2019		EUR	12,800		(25	)		(20	)
JPM	Put - OTC CDX.IG-31 5-Year Index	Sell	1.200		03/20/2019		$	10,000		(19	)		(17	)
									$	(297	)	$	(344	)

INFLATION-CAPPED OPTIONS

Counterparty	Description	Initial Index		Floating Rate	Expiration Date		Notional Amount		Premiums (Received)			Market Value
CBK	Floor - OTC CPURNSA		215.949	Maximum of [(1 + 0.000%)10 - (Final Index/Initial Index)] or 0		03/12/2020	$	13,700	$	(116	)	$	0
	Floor - OTC CPURNSA		216.687	Maximum of [(1 + 0.000%)10 - (Final Index/Initial Index)] or 0		04/07/2020		32,900		(293	)		0
	Floor - OTC CPURNSA		217.965	Maximum of [(1 + 0.000%)10 - (Final Index/Initial Index)] or 0		09/29/2020		14,800		(191	)		0
DUB	Floor - OTC CPURNSA		215.949	Maximum of [0.000% - (Final Index/Initial Index - 1)] or 0		03/10/2020		4,900		(37	)		0
	Floor - OTC CPURNSA		218.011	Maximum of [0.000% - (Final Index/Initial Index - 1)] or 0		10/13/2020		15,400		(151	)		0
									$	(788	)	$	0

INTEREST RATE SWAPTIONS

Counterparty	Description	Floating Rate Index	Pay/Receive Floating Rate	Exercise Rate			Expiration Date		Notional Amount			Premiums (Received)			Market Value
BOA	Put - OTC 5-Year Interest Rate Swap	3-Month USD-LIBOR	Pay		2.750	%		12/09/2019		$	105,900	$	(1,157	)	$	(977	)
	Put - OTC 5-Year Interest Rate Swap	3-Month USD-LIBOR	Pay		2.750			12/11/2019			111,200		(1,193	)		(1,033	)
GLM	Put - OTC 5-Year Interest Rate Swap	3-Month USD-LIBOR	Pay		2.750			12/12/2019			26,800		(292	)		(250	)
												$	(2,642	)	$	(2,260	)
Total Written Options												$	(3,727	)	$	(2,604	)

SWAP AGREEMENTS:

CREDIT DEFAULT SWAPS ON CORPORATE AND SOVEREIGN ISSUES - SELL PROTECTION⁽¹⁾

Counterparty	Reference Entity	Fixed Receive Rate			Payment Frequency		Maturity Date		Implied Credit Spread at December 31, 2018(2)			Notional Amount(3)		Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)			Swap Agreements, at  Value(4)
																				Asset		Liability
BPS	Petrobras Global Finance BV		1.000	%		Quarterly		12/20/2019		1.143	%	$	6,200	$	(642	)	$	636		$	0	$	(6	)
	Petrobras Global Finance BV		1.000			Quarterly		03/20/2020		1.300			500		(77	)		75			0		(2	)
BRC	Petrobras Global Finance BV		1.000			Quarterly		12/20/2019		1.143			2,300		(347	)		345			0		(2	)
GST	Petrobras Global Finance BV		1.000			Quarterly		12/20/2019		1.143			2,400		(264	)		261			0		(3	)
	Petrobras Global Finance BV		1.000			Quarterly		03/20/2020		1.300			400		(64	)		63			0		(1	)
HUS	Petrobras Global Finance BV		1.000			Quarterly		03/20/2020		1.300			1,500		(274	)		269			0		(5	)
JPM	Russia Government International Bond		1.000			Quarterly		12/20/2023		1.530			35,200		(917	)		86			0		(831	)
	South Africa Government International Bond		1.000			Quarterly		12/20/2023		2.227			16,000		(824	)		(42	)		0		(866	)
														$	(3,409	)	$	1,693		$	0	$	(1,716	)

CREDIT DEFAULT SWAPS ON CREDIT INDICES - SELL PROTECTION⁽¹⁾

Counterparty	Index/Tranches	Fixed Receive Rate		Payment Frequency	Maturity Date		Notional Amount(3)		Premiums Paid/(Received)			Unrealized Appreciation/ (Depreciation)		Swap Agreements, at  Value(4)
														Asset		Liability
DUB	CMBX.NA.AAA.6 Index		0.500%	Monthly		05/11/2063	$	10,232	$	(221	)	$	285	$	64	$	0
Total Swap Agreements									$	(3,630	)	$	1,978	$	64	$	(1,716	)

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 25

Schedule of Investments PIMCO Total Return Portfolio (Cont.)

FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER SUMMARY

The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral pledged/(received) as of December 31, 2018:

	Financial Derivative Assets								Financial Derivative Liabilities
Counterparty	Forward Foreign Currency Contracts		Purchased Options		Swap Agreements		Total Over the Counter		Forward Foreign Currency Contracts			Written Options			Swap Agreements			Total Over the Counter			Net Market Value of OTC Derivatives			Collateral Pledged/ (Received)			Net Exposure(5)
AZD	$	603	$	0	$	0	$	603	$	0		$	0		$	0		$	0		$	603		$	(330	)	$	273
BOA		1,391		2,137		0		3,528		(1,136	)		(2,244	)		0			(3,380	)		148			(520	)		(372	)
BPS		1,289		0		0		1,289		(960	)		0			(8	)		(968	)		321			(90	)		231
BRC		396		0		0		396		(4,549	)		(39	)		(2	)		(4,590	)		(4,194	)		2,708			(1,486	)
CBK		17,930		0		0		17,930		(13,369	)		(6	)		0			(13,375	)		4,555			(6,580	)		(2,025	)
DUB		0		0		64		64		0			0			0			0			64			(10	)		54
FBF		0		0		0		0		(5	)		0			0			(5	)		(5	)		0			(5	)
GLM		10,006		266		0		10,272		(4,913	)		(250	)		0			(5,163	)		5,109			(2,330	)		2,779
GST		0		0		0		0		0			(48	)		(4	)		(52	)		(52	)		0			(52	)
HUS		10,940		0		0		10,940		(5,663	)		0			(5	)		(5,668	)		5,272			(5,376	)		(104	)
IND		6,379		0		0		6,379		0			0			0			0			6,379			(5,150	)		1,229
JPM		2,406		0		0		2,406		(10,136	)		(17	)		(1,697	)		(11,850	)		(9,444	)		9,219			(225	)
MSB		66		0		0		66		0			0			0			0			66			0			66
MYI		674		0		0		674		(3,660	)		0			0			(3,660	)		(2,986	)		1,365			(1,621	)
NGF		0		0		0		0		(4	)		0			0			(4	)		(4	)		0			(4	)
RBC		0		0		0		0		(2,587	)		0			0			(2,587	)		(2,587	)		2,533			(54	)
SCX		2,546		0		0		2,546		(134	)		0			0			(134	)		2,412			(2,180	)		232
SOG		0		0		0		0		(187	)		0			0			(187	)		(187	)		0			(187	)
SSB		33		0		0		33		(1	)		0			0			(1	)		32			0			32
UAG		2,852		0		0		2,852		(721	)		0			0			(721	)		2,131			(2,860	)		(729	)
Total Over the Counter	$	57,511	$	2,403	$	64	$	59,978	$	(48,025	)	$	(2,604	)	$	(1,716	)	$	(52,345	)

(o) Securities with an aggregate market value of $15,825 have been pledged as collateral for financial derivative instruments as governed by International Swaps and Derivatives Association, Inc. master agreements as of December 31, 2018.

⁽¹⁾ If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽²⁾ Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate or sovereign issues as of period end serve as indicators of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

⁽³⁾ The maximum potential amount the Portfolio could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

⁽⁴⁾ The prices and resulting values for credit default swap agreements serve as indicators of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced indices’ credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

⁽⁵⁾ Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information regarding master netting arrangements.

FAIR VALUE OF FINANCIAL DERIVATIVE INSTRUMENTS

The following is a summary of the fair valuation of the Portfolio’s derivative instruments categorized by risk exposure. See Note 7, Principal Risks, in the Notes to Financial Statements on risks of the Portfolio.

Fair Values of Financial Derivative Instruments on the Statement of Assets and Liabilities as of December 31, 2018:

	Derivatives not accounted for as hedging instruments
	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Exchange Contracts		Interest Rate Contracts		Total
Financial Derivative Instruments - Assets
Exchange-traded or centrally cleared
Purchased Options	$	0	$	0	$	0	$	0	$	146	$	146
Futures		0		0		0		0		8,318		8,318
Swap Agreements		0		223		0		0		1,447		1,670
	$	0	$	223	$	0	$	0	$	9,911	$	10,134

26 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

December 31, 2018

	Derivatives not accounted for as hedging instruments
	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Exchange Contracts		Interest Rate Contracts		Total
Over the counter
Forward Foreign Currency Contracts	$	0	$	0	$	0	$	57,511	$	0	$	57,511
Purchased Options		0		0		0		0		2,403		2,403
Swap Agreements		0		64		0		0		0		64
	$	0	$	64	$	0	$	57,511	$	2,403	$	59,978
	$	0	$	287	$	0	$	57,511	$	12,314	$	70,112
Financial Derivative Instruments - Liabilities
Exchange-traded or centrally cleared
Futures	$	0	$	0	$	0	$	0	$	4,687	$	4,687
Swap Agreements		0		68		0		0		1,802		1,870
	$	0	$	68	$	0	$	0	$	6,489	$	6,557
Over the counter
Forward Foreign Currency Contracts	$	0	$	0	$	0	$	48,025	$	0	$	48,025
Written Options		0		344		0		0		2,260		2,604
Swap Agreements		0		1,716		0		0		0		1,716
	$	0	$	2,060	$	0	$	48,025	$	2,260	$	52,345
	$	0	$	2,128	$	0	$	48,025	$	8,749	$	58,902

The effect of Financial Derivative Instruments on the Statement of Operations for the period ended December 31, 2018:

	Derivatives not accounted for as hedging instruments
	Commodity Contracts		Credit Contracts			Equity Contracts		Foreign Exchange Contracts			Interest Rate Contracts			Total
Net Realized Gain (Loss) on Financial Derivative Instruments
Exchange-traded or centrally cleared
Purchased Options	$	0	$	0		$	0	$	0		$	141		$	141
Written Options		0		0			0		0			1,186			1,186
Futures		0		0			0		0			(37,752	)		(37,752	)
Swap Agreements		0		2,504			0		0			45,591			48,095
	$	0	$	2,504		$	0	$	0		$	9,166		$	11,670
Over the counter
Forward Foreign Currency Contracts	$	0	$	0		$	0	$	(40,245	)	$	0		$	(40,245	)
Purchased Options		0		(39	)		0		(111	)		(39	)		(189	)
Written Options		0		400			0		17,966			1,411			19,777
Swap Agreements		0		864			0		0			(130	)		734
	$	0	$	1,225		$	0	$	(22,390	)	$	1,242		$	(19,923	)
	$	0	$	3,729		$	0	$	(22,390	)	$	10,408		$	(8,253	)
Net Change in Unrealized Appreciation (Depreciation) on Financial Derivative Instruments
Exchange-traded or centrally cleared
Purchased Options	$	0	$	0		$	0	$	0		$	(446	)	$	(446	)
Written Options		0		0			0		0			22			22
Futures		0		0			0		0			5,332			5,332
Swap Agreements		0		(1,782	)		0		0			(11,277	)		(13,059	)
	$	0	$	(1,782	)	$	0	$	0		$	(6,369	)	$	(8,151	)
Over the counter
Forward Foreign Currency Contracts	$	0	$	0		$	0	$	116,157		$	0		$	116,157
Purchased Options		0		0			0		0			3,756			3,756
Written Options		0		(47	)		0		(2,709	)		(3,650	)		(6,406	)
Swap Agreements		0		(107	)		0		0			173			66
	$	0	$	(154	)	$	0	$	113,448		$	279		$	113,573
	$	0	$	(1,936	)	$	0	$	113,448		$	(6,090	)	$	105,422

See Accompanying Notes ANNUAL REPORT DECEMBER 31, 2018 27

Schedule of Investments PIMCO Total Return Portfolio (Cont.)

December 31, 2018

FAIR VALUE MEASUREMENTS

The following is a summary of the fair valuations according to the inputs used as of December 31, 2018 in valuing the Portfolio’s assets and liabilities:

Category and Subcategory	Level 1		Level 2		Level 3		Fair Value at 12/31/2018
Investments in Securities, at Value
Loan Participations and Assignments	$	0	$	22,788	$	33,380	$	56,168
Corporate Bonds & Notes
Banking & Finance		0		1,966,414		0		1,966,414
Industrials		0		831,763		4,746		836,509
Specialty Finance		0		4,172		0		4,172
Utilities		0		233,811		0		233,811
Municipal Bonds & Notes
Illinois		0		8,615		0		8,615
Iowa		0		426		0		426
Texas		0		4,051		0		4,051
U.S. Government Agencies		0		4,245,848		0		4,245,848
U.S. Treasury Obligations		0		127,405		0		127,405
Non-Agency Mortgage-Backed Securities		0		449,454		0		449,454
Asset-Backed Securities		0		908,450		0		908,450
Sovereign Issues		0		192,180		0		192,180
Short-Term Instruments
Certificates of Deposit		0		16,504		0		16,504
Commercial Paper		0		16,220		0		16,220
Repurchase Agreements		0		17,110		0		17,110
Argentina Treasury Bills		0		19,367		0		19,367
Greece Treasury Bills		0		16,932		0		16,932
U.S. Treasury Bills		0		18,995		0		18,995
	$	0	$	9,100,505	$	38,126	$	9,138,631
Investments in Affiliates, at Value
Short-Term Instruments
Central Funds Used for Cash Management Purposes	$	515,092	$	0	$	0	$	515,092
Total Investments	$	515,092	$	9,100,505	$	38,126	$	9,653,723

Category and Subcategory	Level 1			Level 2			Level 3		Fair Value at 12/31/2018
Short Sales, at Value - Liabilities
Corporate Bonds & Notes	$	0		$	(5,767	)	$	0	$	(5,767	)
U.S. Government Agencies		0			(154,965	)		0		(154,965	)
	$	0		$	(160,732	)	$	0	$	(160,732	)
Financial Derivative Instruments - Assets
Exchange-traded or centrally cleared		8,318			1,816			0		10,134
Over the counter		0			59,978			0		59,978
	$	8,318		$	61,794		$	0	$	70,112
Financial Derivative Instruments - Liabilities
Exchange-traded or centrally cleared		(4,687	)		(1,870	)		0		(6,557	)
Over the counter		0			(52,345	)		0		(52,345	)
	$	(4,687	)	$	(54,215	)	$	0	$	(58,902	)
Total Financial Derivative Instruments	$	3,631		$	7,579		$	0	$	11,210
Totals	$	518,723		$	8,947,352		$	38,126	$	9,504,201

There were no significant transfers into or out of Level 3 during the period ended December 31, 2018.

28 PIMCO VARIABLE INSURANCE TRUST See Accompanying Notes

Notes to Financial Statements

December 31, 2018

1. ORGANIZATION

PIMCO Variable Insurance Trust (the “Trust”) is a Delaware statutory trust established under a trust instrument dated October 3, 1997. The Trust is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Trust is designed to be used as an investment vehicle by separate accounts of insurance companies that fund variable annuity contracts and variable life insurance policies and by qualified pension and retirement plans. Information presented in these financial statements pertains to the Institutional Class, Administrative Class and Advisor Class shares of the PIMCO Total Return Portfolio (the “Portfolio”) offered by the Trust. Pacific Investment Management Company LLC (“PIMCO”) serves as the investment adviser (the “Adviser”) for the Portfolio.

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Portfolio is treated as an investment company under the reporting requirements of U.S. GAAP. The functional and reporting currency for the Portfolio is the U.S. dollar. The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

(a) Securities Transactions and Investment Income  Securities transactions are recorded as of the trade date for financial reporting purposes. Securities purchased or sold on a when-issued or delayed-delivery basis may be settled beyond a standard settlement period for the security after the trade date. Realized gains (losses) from securities sold are recorded on the identified cost basis. Dividend income is recorded on the ex-dividend date, except certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Portfolio is informed of the ex-dividend date. Interest income, adjusted for the accretion of discounts and amortization of premiums, is recorded on the accrual basis from settlement date, with the exception of securities with a forward starting effective date, where interest income is recorded on the accrual basis from effective date. For convertible securities, premiums attributable to the conversion feature are not amortized. Estimated tax liabilities on certain foreign securities are recorded on an accrual basis and are reflected as components of interest income or net change in unrealized appreciation (depreciation) on investments on the Statement of

Operations, as appropriate. Tax liabilities realized as a result of such security sales are reflected as a component of net realized gain (loss) on investments on the Statement of Operations. Paydown gains (losses) on mortgage-related and other asset-backed securities, if any, are recorded as components of interest income on the Statement of Operations. Income or short-term capital gain distributions received from registered investment companies, if any, are recorded as dividend income. Long-term capital gain distributions received from registered investment companies, if any, are recorded as realized gains.

Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivable when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is probable.

(b) Foreign Currency Translation  The market values of foreign securities, currency holdings and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the current exchange rates each business day. Purchases and sales of securities and income and expense items denominated in foreign currencies, if any, are translated into U.S. dollars at the exchange rate in effect on the transaction date. The Portfolio does not separately report the effects of changes in foreign exchange rates from changes in market prices on securities held. Such changes are included in net realized gain (loss) and net change in unrealized appreciation (depreciation) from investments on the Statement of Operations. The Portfolio may invest in foreign currency-denominated securities and may engage in foreign currency transactions either on a spot (cash) basis at the rate prevailing in the currency exchange market at the time or through a forward foreign currency contract. Realized foreign exchange gains (losses) arising from sales of spot foreign currencies, currency gains (losses) realized between the trade and settlement dates on securities transactions and the difference between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid are included in net realized gain (loss) on foreign currency transactions on the Statement of Operations. Net unrealized foreign exchange gains (losses) arising from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period are included in net change in unrealized appreciation (depreciation) on foreign currency assets and liabilities on the Statement of Operations.

(c) Multi-Class Operations  Each class offered by the Trust has equal rights as to assets and voting privileges (except that shareholders of a class have exclusive voting rights regarding any matter relating solely to that class of shares). Income and non-class specific expenses are

ANNUAL REPORT DECEMBER 31, 2018 29

Notes to Financial Statements (Cont.)

allocated daily to each class on the basis of the relative net assets. Realized and unrealized capital gains (losses) are allocated daily based on the relative net assets of each class of the Portfolio. Class specific expenses, where applicable, currently include supervisory and administrative and distribution and servicing fees. Under certain circumstances, the per share net asset value (“NAV”) of a class of the Portfolio’s shares may be different from the per share NAV of another class of shares as a result of the different daily expense accruals applicable to each class of shares.

(d) Distributions to Shareholders  Distributions from net investment income, if any, are declared daily and distributed to shareholders monthly. Net realized capital gains earned by the Portfolio, if any, will be distributed no less frequently than once each year.

Income distributions and capital gain distributions are determined in accordance with income tax regulations which may differ from U.S. GAAP. Differences between tax regulations and U.S. GAAP may cause timing differences between income and capital gain recognition. Further, the character of investment income and capital gains may be different for certain transactions under the two methods of accounting. As a result, income distributions and capital gain distributions declared during a fiscal period may differ significantly from the net investment income (loss) and realized gains (losses) reported on the Portfolio’s annual financial statements presented under U.S. GAAP.

If the Portfolio estimates that a portion of its distribution may be comprised of amounts from sources other than net investment income in accordance with its policies and good accounting practices, the Portfolio will notify shareholders of the estimated composition of such distribution through a Section 19 Notice. For these purposes, the Portfolio estimates the source or sources from which a distribution is paid, to the close of the period as of which it is paid, in reference to its internal accounting records and related accounting practices. If, based on such accounting records and practices, it is estimated that a particular distribution does not include capital gains or paid-in surplus or other capital sources, a Section 19 Notice generally would not be issued. It is important to note that differences exist between the Portfolio’s daily internal accounting records and practices, the Portfolio’s financial statements presented in accordance with U.S. GAAP, and recordkeeping practices under income tax regulations. For instance, the Portfolio’s internal accounting records and practices may take into account, among other factors, tax-related characteristics of certain sources of distributions that differ from treatment under U.S. GAAP. Examples of such differences may include, among others, the treatment of paydowns on mortgage-backed securities purchased at a discount and periodic payments under interest rate swap contracts. Accordingly, among other consequences, it is possible that the Portfolio may not issue a Section 19 Notice in situations where the Portfolio’s

financial statements prepared later and in accordance with U.S. GAAP and/or the final tax character of those distributions might later report that the sources of those distributions included capital gains and/or a return of capital. Final determination of a distribution’s tax character will be provided to shareholders when such information is available.

Distributions classified as a tax basis return of capital, if any, are reflected on the Statements of Changes in Net Assets and have been recorded to paid in capital on the Statement of Assets and Liabilities. In addition, other amounts have been reclassified between distributable earnings (accumulated loss) and paid in capital on the Statement of Assets and Liabilities to more appropriately conform U.S. GAAP to tax characterizations of distributions.

(e) New Accounting Pronouncements  In August 2016, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”), ASU 2016-15, which amends Accounting Standards Codification (“ASC”) 230 to clarify guidance on the classification of certain cash receipts and cash payments in the Statement of Cash Flows. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In November 2016, the FASB issued ASU 2016-18 which amends ASC 230 to provide guidance on the classification and presentation of changes in restricted cash and restricted cash equivalents on the Statement of Cash Flows. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In March 2017, the FASB issued ASU 2017-08 which provides guidance related to the amortization period for certain purchased callable debt securities held at a premium. The ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. The Portfolio has adopted the ASU. The implementation of the ASU did not have an impact on the Portfolio’s financial statements.

In August 2018, the FASB issued ASU 2018-13 which modifies certain disclosure requirements for fair value measurements in ASC 820. The ASU is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. At this time, management has elected to early adopt the amendments that allow for removal of certain disclosure requirements. Management plans to adopt the amendments that require additional fair value measurement disclosures for annual periods beginning after December 15, 2019, and

30 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

interim periods within those annual periods. Management is currently evaluating the impact of these changes on the financial statements.

In August 2018, the U.S. Securities and Exchange Commission (“SEC”) adopted amendments to certain rules and forms for the purpose of disclosure update and simplification. The compliance date for these amendments is 30 days after date of publication in the Federal Register, which was on October 4, 2018. Management has adopted these amendments and the changes are incorporated throughout all periods presented in the financial statements.

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

(a) Investment Valuation Policies  The price of the Portfolio’s shares is based on the Portfolio’s NAV. The NAV of the Portfolio, or each of its share classes, as applicable, is determined by dividing the total value of portfolio investments and other assets, less any liabilities attributable to the Portfolio or class, by the total number of shares outstanding of the Portfolio or class.

On each day that the New York Stock Exchange (“NYSE”) is open, Portfolio shares are ordinarily valued as of the close of regular trading (“NYSE Close”). Information that becomes known to the Portfolio or its agents after the time as of which NAV has been calculated on a particular day will not generally be used to retroactively adjust the price of a security or the NAV determined earlier that day. The Portfolio reserves the right to change the time as of which its NAV is calculated if the Portfolio closes earlier, or as permitted by the SEC.

For purposes of calculating a NAV, portfolio securities and other assets for which market quotes are readily available are valued at market value. Market value is generally determined on the basis of official closing prices or the last reported sales prices, or if no sales are reported, based on quotes obtained from established market makers or prices (including evaluated prices) supplied by the Portfolio’s approved pricing services, quotation reporting systems and other third-party sources (together, “Pricing Services”). The Portfolio will normally use pricing data for domestic equity securities received shortly after the NYSE Close and does not normally take into account trading, clearances or settlements that take place after the NYSE Close. If market value pricing is used, a foreign (non-U.S.) equity security traded on a foreign exchange or on more than one exchange is typically valued using pricing information from the exchange considered by the Adviser to be the primary exchange. A foreign (non-U.S.) equity security will be valued as of the close of trading on the foreign exchange, or the NYSE Close, if the NYSE Close occurs before the end of trading on the foreign exchange. Domestic and foreign (non-U.S.) fixed income securities, non-exchange traded derivatives, and equity options are normally valued on the basis of quotes obtained from brokers and

dealers or Pricing Services using data reflecting the earlier closing of the principal markets for those securities. Prices obtained from Pricing Services may be based on, among other things, information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics. Certain fixed income securities purchased on a delayed-delivery basis are marked to market daily until settlement at the forward settlement date. Exchange-traded options, except equity options, futures and options on futures are valued at the settlement price determined by the relevant exchange. Swap agreements are valued on the basis of bid quotes obtained from brokers and dealers or market-based prices supplied by Pricing Services. The Portfolio’s investments in open-end management investment companies, other than exchange-traded funds (“ETFs”), are valued at the NAVs of such investments. Open-end management investment companies may include affiliated funds.

If a foreign (non-U.S.) equity security’s value has materially changed after the close of the security’s primary exchange or principal market but before the NYSE Close, the security may be valued at fair value based on procedures established and approved by the Board of Trustees of the Trust (the “Board”). Foreign (non-U.S.) equity securities that do not trade when the NYSE is open are also valued at fair value. With respect to foreign (non-U.S.) equity securities, the Portfolio may determine the fair value of investments based on information provided by Pricing Services and other third-party vendors, which may recommend fair value or adjustments with reference to other securities, indices or assets. In considering whether fair valuation is required and in determining fair values, the Portfolio may, among other things, consider significant events (which may be considered to include changes in the value of U.S. securities or securities indices) that occur after the close of the relevant market and before the NYSE Close. The Portfolio may utilize modeling tools provided by third-party vendors to determine fair values of foreign (non-U.S.) securities. For these purposes, any movement in the applicable reference index or instrument (“zero trigger”) between the earlier close of the applicable foreign market and the NYSE Close may be deemed to be a significant event, prompting the application of the pricing model (effectively resulting in daily fair valuations). Foreign exchanges may permit trading in foreign (non-U.S.) equity securities on days when the Trust is not open for business, which may result in the Portfolio’s portfolio investments being affected when shareholders are unable to buy or sell shares.

Senior secured floating rate loans for which an active secondary market exists to a reliable degree will be valued at the mean of the last available bid/ask prices in the market for such loans, as provided by a Pricing Service. Senior secured floating rate loans for which an active secondary market does not exist to a reliable degree will be valued at

ANNUAL REPORT DECEMBER 31, 2018 31

Notes to Financial Statements (Cont.)

fair value, which is intended to approximate market value. In valuing a senior secured floating rate loan at fair value, the factors considered may include, but are not limited to, the following: (a) the creditworthiness of the borrower and any intermediate participants, (b) the terms of the loan, (c) recent prices in the market for similar loans, if any, and (d) recent prices in the market for instruments of similar quality, rate, period until next interest rate reset and maturity.

Investments valued in currencies other than the U.S. dollar are converted to the U.S. dollar using exchange rates obtained from Pricing Services. As a result, the value of such investments and, in turn, the NAV of the Portfolio’s shares may be affected by changes in the value of currencies in relation to the U.S. dollar. The value of investments traded in markets outside the United States or denominated in currencies other than the U.S. dollar may be affected significantly on a day that the Trust is not open for business. As a result, to the extent that the Portfolio holds foreign (non-U.S.) investments, the value of those investments may change at times when shareholders are unable to buy or sell shares and the value of such investments will be reflected in the Portfolio’s next calculated NAV.

Investments for which market quotes or market based valuations are not readily available are valued at fair value as determined in good faith by the Board or persons acting at their direction. The Board has adopted methods for valuing securities and other assets in circumstances where market quotes are not readily available, and has delegated to the Adviser the responsibility for applying the fair valuation methods. In the event that market quotes or market based valuations are not readily available, and the security or asset cannot be valued pursuant to a Board approved valuation method, the value of the security or asset will be determined in good faith by the Board. Market quotes are considered not readily available in circumstances where there is an absence of current or reliable market-based data (e.g., trade information, bid/ask information, indicative market quotations (“Broker Quotes”), Pricing Services’ prices), including where events occur after the close of the relevant market, but prior to the NYSE Close, that materially affect the values of the Portfolio’s securities or assets. In addition, market quotes are considered not readily available when, due to extraordinary circumstances, the exchanges or markets on which the securities trade do not open for trading for the entire day and no other market prices are available. The Board has delegated, to the Adviser, the responsibility for monitoring significant events that may materially affect the values of the Portfolio’s securities or assets and for determining whether the value of the applicable securities or assets should be reevaluated in light of such significant events.

When the Portfolio uses fair valuation to determine the value of a portfolio security or other asset for purposes of calculating its NAV, such investments will not be priced on the basis of quotes from the

primary market in which they are traded, but rather may be priced by another method that the Board or persons acting at their direction believe reflects fair value. Fair valuation may require subjective determinations about the value of a security. While the Trust’s policy is intended to result in a calculation of the Portfolio’s NAV that fairly reflects security values as of the time of pricing, the Trust cannot ensure that fair values determined by the Board or persons acting at their direction would accurately reflect the price that the Portfolio could obtain for a security if it were to dispose of that security as of the time of pricing (for instance, in a forced or distressed sale). The prices used by the Portfolio may differ from the value that would be realized if the securities were sold. The Portfolio’s use of fair valuation may also help to deter “stale price arbitrage” as discussed under the “Frequent or Excessive Purchases, Exchanges and Redemptions” section in the Portfolio’s prospectus.

(b) Fair Value Hierarchy  U.S. GAAP describes fair value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into levels (Level 1, 2, or 3). The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Levels 1, 2, and 3 of the fair value hierarchy are defined as follows:

^∎  Level 1 — Quoted prices in active markets or exchanges for identical assets and liabilities.

^∎  Level 2 — Significant other observable inputs, which may include, but are not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market corroborated inputs.

^∎  Level 3 — Significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, which may include assumptions made by the Board or persons acting at their direction that are used in determining the fair value of investments.

In accordance with the requirements of U.S. GAAP, the amounts of transfers into and out of Level 3, if material, are disclosed in the Notes to Schedule of Investments for the Portfolio.

For fair valuations using significant unobservable inputs, U.S. GAAP requires a reconciliation of the beginning to ending balances for

32 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

reported fair values that presents changes attributable to realized gain (loss), unrealized appreciation (depreciation), purchases and sales, accrued discounts (premiums), and transfers into and out of the Level 3 category during the period. The end of period value is used for the transfers between Levels of the Portfolio’s assets and liabilities. Additionally, U.S. GAAP requires quantitative information regarding the significant unobservable inputs used in the determination of fair value of assets or liabilities categorized as Level 3 in the fair value hierarchy. In accordance with the requirements of U.S. GAAP, a fair value hierarchy, and if material, a Level 3 reconciliation and details of significant unobservable inputs, have been included in the Notes to Schedule of Investments for the Portfolio.

(c) Valuation Techniques and the Fair Value Hierarchy

Level 1 and Level 2 trading assets and trading liabilities, at fair value  The valuation methods (or “techniques”) and significant inputs used in determining the fair values of portfolio securities or other assets and liabilities categorized as Level 1 and Level 2 of the fair value hierarchy are as follows:

Fixed income securities including corporate, convertible and municipal bonds and notes, U.S. government agencies, U.S. treasury obligations, sovereign issues, bank loans, convertible preferred securities and non-U.S. bonds are normally valued on the basis of quotes obtained from brokers and dealers or Pricing Services that use broker-dealer quotations, reported trades or valuation estimates from their internal pricing models. The Pricing Services’ internal models use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar assets. Securities that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

Fixed income securities purchased on a delayed-delivery basis or as a repurchase commitment in a sale-buyback transaction are marked to market daily until settlement at the forward settlement date and are categorized as Level 2 of the fair value hierarchy.

Mortgage-related and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also normally valued by Pricing Services that use broker-dealer quotations, reported trades or valuation estimates from their internal pricing models. The pricing models for these securities usually consider tranche-level attributes, current market data, estimated cash flows and market-based yield spreads for each tranche, and incorporate deal collateral performance, as available. Mortgage-related and asset-backed securities that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

Common stocks, ETFs, exchange-traded notes and financial derivative instruments, such as futures contracts, rights and warrants, or options on futures that are traded on a national securities exchange, are stated at the last reported sale or settlement price on the day of valuation. To the extent these securities are actively traded and valuation adjustments are not applied, they are categorized as Level 1 of the fair value hierarchy.

Valuation adjustments may be applied to certain securities that are solely traded on a foreign exchange to account for the market movement between the close of the foreign market and the NYSE Close. These securities are valued using Pricing Services that consider the correlation of the trading patterns of the foreign security to the intraday trading in the U.S. markets for investments. Securities using these valuation adjustments are categorized as Level 2 of the fair value hierarchy. Preferred securities and other equities traded on inactive markets or valued by reference to similar instruments are also categorized as Level 2 of the fair value hierarchy.

Investments in registered open-end investment companies (other than ETFs) will be valued based upon the NAVs of such investments and are categorized as Level 1 of the fair value hierarchy. Investments in unregistered open-end investment companies will be calculated based upon the NAVs of such investments and are considered Level 1 provided that the NAVs are observable, calculated daily and are the value at which both purchases and sales will be conducted.

Equity exchange-traded options and over the counter financial derivative instruments, such as forward foreign currency contracts and options contracts derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors. These contracts are normally valued on the basis of quotes obtained from a quotation reporting system, established market makers or Pricing Services (normally determined as of the NYSE Close). Depending on the product and the terms of the transaction, financial derivative instruments can be valued by Pricing Services using a series of techniques, including simulation pricing models. The pricing models use inputs that are observed from actively quoted markets such as quoted prices, issuer details, indices, bid/ask spreads, interest rates, implied volatilities, yield curves, dividends and exchange rates. Financial derivative instruments that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.

Centrally cleared swaps and over the counter swaps derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors. They are valued using a broker-dealer bid quotation or on market-based prices provided by Pricing Services (normally determined as of the NYSE close). Centrally cleared

ANNUAL REPORT DECEMBER 31, 2018 33

Notes to Financial Statements (Cont.)

swaps and over the counter swaps can be valued by Pricing Services using a series of techniques, including simulation pricing models. The pricing models may use inputs that are observed from actively quoted markets such as the overnight index swap rate (“OIS”), London Interbank Offered Rate (“LIBOR”) forward rate, interest rates, yield curves and credit spreads. These securities are categorized as Level 2 of the fair value hierarchy.

Level 3 trading assets and trading liabilities, at fair value  When a fair valuation method is applied by the Adviser that uses significant unobservable inputs, investments will be priced by a method that the

Board or persons acting at their direction believe reflects fair value and are categorized as Level 3 of the fair value hierarchy.

Short-term debt instruments (such as commercial paper) having a remaining maturity of 60 days or less may be valued at amortized cost, so long as the amortized cost value of such short-term debt instruments is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. These securities are categorized as Level 2 or Level 3 of the fair value hierarchy depending on the source of the base price.

4. SECURITIES AND OTHER INVESTMENTS

(a) Investments in Affiliates

The Portfolio may invest in the PIMCO Short Asset Portfolio and the PIMCO Short-Term Floating NAV Portfolio III (“Central Funds”) to the extent permitted by the Act and rules thereunder. The Central Funds are registered investment companies created for use solely by the series of the Trust and other series of registered investment companies advised by the Adviser, in connection with their cash management activities. The main investments of the Central Funds are money market and short maturity fixed income instruments. The Central Funds may incur expenses related to their investment activities, but do not pay Investment Advisory Fees or Supervisory and Administrative Fees to the Adviser. The Central Funds are considered to be affiliated with the Portfolio. The tables below show the Portfolio’s transactions in and earnings from investments in the affiliated Funds for the period ended December 31, 2018 (amounts in thousands^†):

Investment in PIMCO Short Asset Portfolio

Market Value 12/31/2017		Purchases at Cost		Proceeds from Sales		Net Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)			Market Value 12/31/2018		Dividend Income(1)		Realized Net Capital Gain Distributions(1)
$	220,408	$	155,622	$	0	$	0	$	(3,329	)	$	372,701	$	9,692	$	430

Investment in PIMCO Short-Term Floating NAV Portfolio III

Market Value 12/31/2017		Purchases at Cost		Proceeds from Sales			Net Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)		Market Value 12/31/2018		Dividend Income(1)		Realized Net Capital Gain Distributions(1)
$	26,612	$	3,004,385	$	(2,888,800	)	$	176	$	18	$	142,391	$	4,786	$	0

^†   A zero balance may reflect actual amounts rounding to less than one thousand.

⁽¹⁾  The tax characterization of distributions is determined in accordance with Federal income tax regulations and may contain a return of capital. The actual tax characterization of distributions received is determined at the end of the fiscal year of the affiliated fund. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

(b) Investments in Securities

The Portfolio may utilize the investments and strategies described below to the extent permitted by the Portfolio’s investment policies.

Inflation-Indexed Bonds  are fixed income securities whose principal value is periodically adjusted by the rate of inflation. The interest rate on these bonds is generally fixed at issuance at a rate lower than typical bonds. Over the life of an inflation-indexed bond, however, interest will be paid based on a principal value which is adjusted for inflation. Any increase or decrease in the principal amount of an inflation-indexed bond will be included as interest income on the Statement of Operations, even though investors do not receive their principal until maturity. Repayment of the original bond principal upon

maturity (as adjusted for inflation) is guaranteed in the case of U.S. Treasury Inflation-Protected Securities (“TIPS”). For bonds that do not provide a similar guarantee, the adjusted principal value of the bond repaid at maturity may be less than the original principal.

Loans and Other Indebtedness, Loan Participations and Assignments  are direct debt instruments which are interests in amounts owed to lenders or lending syndicates by corporate, governmental, or other borrowers. The Portfolio’s investments in loans may be in the form of participations in loans or assignments of all or a portion of loans from third parties or investments in or originations of loans by the Portfolio. A loan is often administered by a bank or other financial institution (the “agent”) that acts as agent for all holders. The

34 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

agent administers the terms of the loan, as specified in the loan agreement. The Portfolio may invest in multiple series or tranches of a loan, which may have varying terms and carry different associated risks. When the Portfolio purchases assignments from agents it acquires direct rights against the borrowers of the loans. These loans may include participations in bridge loans, which are loans taken out by borrowers for a short period (typically less than one year) pending arrangement of more permanent financing through, for example, the issuance of bonds, frequently high yield bonds issued for the purpose of acquisitions.

The types of loans and related investments in which the Portfolio may invest include, among others, senior loans, subordinated loans (including second lien loans, B-Notes and mezzanine loans), whole loans, commercial real estate and other commercial loans and structured loans. The Portfolio may originate loans or acquire direct interests in loans through primary loan distributions and/or in private transactions. In the case of subordinated loans, there may be significant indebtedness ranking ahead of the borrower’s obligation to the holder of such a loan, including in the event of the borrower’s insolvency. Mezzanine loans are typically secured by a pledge of an equity interest in the mortgage borrower that owns the real estate rather than an interest in a mortgage.

Investments in loans may include unfunded loan commitments, which are contractual obligations for funding. Unfunded loan commitments may include revolving credit facilities, which may obligate the Portfolio to supply additional cash to the borrower on demand. Unfunded loan commitments represent a future obligation in full, even though a percentage of the committed amount may not be utilized by the borrower. When investing in a loan participation, the Portfolio has the right to receive payments of principal, interest and any fees to which it is entitled only from the agent selling the loan agreement and only upon receipt of payments by the agent from the borrower. The Portfolio may receive a commitment fee based on the undrawn portion of the underlying line of credit portion of a loan. In certain circumstances, the Portfolio may receive a penalty fee upon the prepayment of a loan by a borrower. Fees earned or paid are recorded as a component of interest income or interest expense, respectively, on the Statement of Operations. Unfunded loan commitments are reflected as a liability on the Statement of Assets and Liabilities.

Mortgage-Related and Other Asset-Backed Securities  directly or indirectly represent a participation in, or are secured by and payable from, loans on real property. Mortgage-related securities are created from pools of residential or commercial mortgage loans, including mortgage loans made by savings and loan institutions, mortgage bankers, commercial banks and others. These securities provide a monthly payment which consists of both interest and principal. Interest

may be determined by fixed or adjustable rates. The rate of prepayments on underlying mortgages will affect the price and volatility of a mortgage-related security, and may have the effect of shortening or extending the effective duration of the security relative to what was anticipated at the time of purchase. The timely payment of principal and interest of certain mortgage-related securities is guaranteed with the full faith and credit of the U.S. Government. Pools created and guaranteed by non-governmental issuers, including government-sponsored corporations, may be supported by various forms of insurance or guarantees, but there can be no assurance that private insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Many of the risks of investing in mortgage-related securities secured by commercial mortgage loans reflect the effects of local and other economic conditions on real estate markets, the ability of tenants to make lease payments, and the ability of a property to attract and retain tenants. These securities may be less liquid and may exhibit greater price volatility than other types of mortgage-related or other asset-backed securities. Other asset-backed securities are created from many types of assets, including, but not limited to, auto loans, accounts receivable, such as credit card receivables and hospital account receivables, home equity loans, student loans, boat loans, mobile home loans, recreational vehicle loans, manufactured housing loans, aircraft leases, computer leases and syndicated bank loans.

Collateralized Debt Obligations  (“CDOs”) include Collateralized Bond Obligations (“CBOs”), Collateralized Loan Obligations (“CLOs”) and other similarly structured securities. CBOs and CLOs are types of asset-backed securities. A CBO is a trust which is backed by a diversified pool of high risk, below investment grade fixed income securities. A CLO is a trust typically collateralized by a pool of loans, which may include, among others, domestic and foreign senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated below investment grade or equivalent unrated loans. The risks of an investment in a CDO depend largely on the type of the collateral securities and the class of the CDO in which the Portfolio invests. In addition to the normal risks associated with fixed income securities discussed elsewhere in this report and the Portfolio’s prospectus and statement of additional information (e.g., prepayment risk, credit risk, liquidity risk, market risk, structural risk, legal risk and interest rate risk (which may be exacerbated if the interest rate payable on a structured financing changes based on multiples of changes in interest rates or inversely to changes in interest rates)), CBOs, CLOs and other CDOs carry additional risks including, but not limited to, (i) the possibility that distributions from collateral securities will not be adequate to make interest or other payments, (ii) the quality of the collateral may decline in value or default, (iii) the risk that the Portfolio may invest in CBOs, CLOs, or other CDOs that are subordinate to other

ANNUAL REPORT DECEMBER 31, 2018 35

Notes to Financial Statements (Cont.)

classes, and (iv) the complex structure of the security may not be fully understood at the time of investment and may produce disputes with the issuer or unexpected investment results.

Collateralized Mortgage Obligations  (“CMOs”) are debt obligations of a legal entity that are collateralized by whole mortgage loans or private mortgage bonds and divided into classes. CMOs are structured into multiple classes, often referred to as “tranches”, with each class bearing a different stated maturity and entitled to a different schedule for payments of principal and interest, including prepayments. CMOs may be less liquid and may exhibit greater price volatility than other types of mortgage-related or asset-backed securities.

Stripped Mortgage-Backed Securities  (“SMBS”) are derivative multi-class mortgage securities. SMBS are usually structured with two classes that receive different proportions of the interest and principal distributions on a pool of mortgage assets. An SMBS will have one class that will receive all of the interest (the interest-only or “IO” class), while the other class will receive the entire principal (the principal-only or “PO” class). Payments received for IOs are included in interest income on the Statement of Operations. Because no principal will be received at the maturity of an IO, adjustments are made to the cost of the security on a monthly basis until maturity. These adjustments are included in interest income on the Statement of Operations. Payments received for POs are treated as reductions to the cost and par value of the securities.

Payment In-Kind Securities  (“PIKs”) may give the issuer the option at each interest payment date of making interest payments in either cash and/or additional debt securities. Those additional debt securities usually have the same terms, including maturity dates and interest rates, and associated risks as the original bonds. The daily market quotations of the original bonds may include the accrued interest (referred to as a dirty price) and require a pro rata adjustment from the unrealized appreciation (depreciation) on investments to interest receivable on the Statement of Assets and Liabilities.

Perpetual Bonds  are fixed income securities with no maturity date but pay a coupon in perpetuity (with no specified ending or maturity date). Unlike typical fixed income securities, there is no obligation for perpetual bonds to repay principal. The coupon payments, however, are mandatory. While perpetual bonds have no maturity date, they may have a callable date in which the perpetuity is eliminated and the issuer may return the principal received on the specified call date. Additionally, a perpetual bond may have additional features, such as interest rate increases at periodic dates or an increase as of a predetermined point in the future.

Restricted Investments  are subject to legal or contractual restrictions on resale and may generally be sold privately, but may be required to

be registered or exempted from such registration before being sold to the public. Private placement securities are generally considered to be restricted except for those securities traded between qualified institutional investors under the provisions of Rule 144A of the Securities Act of 1933. Disposal of restricted investments may involve time-consuming negotiations and expenses, and prompt sale at an acceptable price may be difficult to achieve. Restricted investments held by the Portfolio at December 31, 2018 are disclosed in the Notes to Schedule of Investments.

Securities Issued by U.S. Government Agencies or Government-Sponsored Enterprises  are obligations of and, in certain cases, guaranteed by, the U.S. Government, its agencies or instrumentalities. Some U.S. Government securities, such as Treasury bills, notes and bonds, and securities guaranteed by the Government National Mortgage Association (“GNMA” or “Ginnie Mae”), are supported by the full faith and credit of the U.S. Government; others, such as those of the Federal Home Loan Banks, are supported by the right of the issuer to borrow from the U.S. Department of the Treasury (the “U.S. Treasury”); and others, such as those of the Federal National Mortgage Association (“FNMA” or “Fannie Mae”), are supported by the discretionary authority of the U.S. Government to purchase the agency’s obligations. U.S. Government securities may include zero coupon securities. Zero coupon securities do not distribute interest on a current basis and tend to be subject to a greater risk than interest-paying securities.

Government-related guarantors (i.e., not backed by the full faith and credit of the U.S. Government) include FNMA and the Federal Home Loan Mortgage Corporation (“FHLMC” or “Freddie Mac”). FNMA is a government-sponsored corporation. FNMA purchases conventional (i.e., not insured or guaranteed by any government agency) residential mortgages from a list of approved seller/servicers which include state and federally chartered savings and loan associations, mutual savings banks, commercial banks and credit unions and mortgage bankers. Pass-through securities issued by FNMA are guaranteed as to timely payment of principal and interest by FNMA, but are not backed by the full faith and credit of the U.S. Government. FHLMC issues Participation Certificates (“PCs”), which are pass-through securities, each representing an undivided interest in a pool of residential mortgages. FHLMC guarantees the timely payment of interest and ultimate collection of principal, but PCs are not backed by the full faith and credit of the U.S. Government.

Roll-timing strategies can be used where the Portfolio seeks to extend the expiration or maturity of a position, such as a TBA security on an underlying asset, by closing out the position before expiration and opening a new position with respect to substantially the same

36 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

underlying asset with a later expiration date. TBA securities purchased or sold are reflected on the Statement of Assets and Liabilities as an asset or liability, respectively.

When-Issued Transactions  are purchases or sales made on a when-issued basis. These transactions are made conditionally because a security, although authorized, has not yet been issued in the market. Transactions to purchase or sell securities on a when-issued basis involve a commitment by the Portfolio to purchase or sell these securities for a predetermined price or yield, with payment and delivery taking place beyond the customary settlement period. The Portfolio may sell when-issued securities before they are delivered, which may result in a realized gain (loss).

5. BORROWINGS AND OTHER FINANCING TRANSACTIONS

The Portfolio may enter into the borrowings and other financing transactions described below to the extent permitted by the Portfolio’s investment policies.

The following disclosures contain information on the Portfolio’s ability to lend or borrow cash or securities to the extent permitted under the Act, which may be viewed as borrowing or financing transactions by the Portfolio. The location of these instruments in the Portfolio’s financial statements is described below.

(a) Repurchase Agreements  Under the terms of a typical repurchase agreement, the Portfolio purchases an underlying debt obligation (collateral) subject to an obligation of the seller to repurchase, and the Portfolio to resell, the obligation at an agreed-upon price and time. In an open maturity repurchase agreement, there is no pre-determined repurchase date and the agreement can be terminated by the Portfolio or counterparty at any time. The underlying securities for all repurchase agreements are held by the Portfolio’s custodian or designated subcustodians under tri-party repurchase agreements and in certain instances will remain in custody with the counterparty. The market value of the collateral must be equal to or exceed the total amount of the repurchase obligations, including interest. Repurchase agreements, if any, including accrued interest, are included on the Statement of Assets and Liabilities. Interest earned is recorded as a component of interest income on the Statement of Operations. In periods of increased demand for collateral, the Portfolio may pay a fee for the receipt of collateral, which may result in interest expense to the Portfolio.

(b) Reverse Repurchase Agreements  In a reverse repurchase agreement, the Portfolio delivers a security in exchange for cash to a financial institution, the counterparty, with a simultaneous agreement to repurchase the same or substantially the same security at an agreed upon price and date. In an open maturity reverse repurchase

agreement, there is no pre-determined repurchase date and the agreement can be terminated by the Portfolio or counterparty at any time. The Portfolio is entitled to receive principal and interest payments, if any, made on the security delivered to the counterparty during the term of the agreement. Cash received in exchange for securities delivered plus accrued interest payments to be made by the Portfolio to counterparties are reflected as a liability on the Statement of Assets and Liabilities. Interest payments made by the Portfolio to counterparties are recorded as a component of interest expense on the Statement of Operations. In periods of increased demand for the security, the Portfolio may receive a fee for use of the security by the counterparty, which may result in interest income to the Portfolio. The Portfolio will segregate assets determined to be liquid by the Adviser or will otherwise cover its obligations under reverse repurchase agreements.

(c) Sale-Buybacks  A sale-buyback financing transaction consists of a sale of a security by the Portfolio to a financial institution, the counterparty, with a simultaneous agreement to repurchase the same or substantially the same security at an agreed-upon price and date. The Portfolio is not entitled to receive principal and interest payments, if any, made on the security sold to the counterparty during the term of the agreement. The agreed-upon proceeds for securities to be repurchased by the Portfolio are reflected as a liability on the Statement of Assets and Liabilities. The Portfolio will recognize net income represented by the price differential between the price received for the transferred security and the agreed-upon repurchase price. This is commonly referred to as the ‘price drop’. A price drop consists of (i) the foregone interest and inflationary income adjustments, if any, the Portfolio would have otherwise received had the security not been sold and (ii) the negotiated financing terms between the Portfolio and counterparty. Foregone interest and inflationary income adjustments, if any, are recorded as components of interest income on the Statement of Operations. Interest payments based upon negotiated financing terms made by the Portfolio to counterparties are recorded as a component of interest expense on the Statement of Operations. In periods of increased demand for the security, the Portfolio may receive a fee for use of the security by the counterparty, which may result in interest income to the Portfolio. The Portfolio will segregate assets determined to be liquid by the Adviser or will otherwise cover its obligations under sale-buyback transactions.

(d) Short Sales  Short sales are transactions in which the Portfolio sells a security that it may not own. The Portfolio may make short sales of securities to (i) offset potential declines in long positions in similar securities, (ii) to increase the flexibility of the Portfolio, (iii) for investment return, (iv) as part of a risk arbitrage strategy, and (v) as part of its overall portfolio management strategies involving the use of

ANNUAL REPORT DECEMBER 31, 2018 37

Notes to Financial Statements (Cont.)

derivative instruments. When the Portfolio engages in a short sale, it may borrow the security sold short and deliver it to the counterparty. The Portfolio will ordinarily have to pay a fee or premium to borrow a security and be obligated to repay the lender of the security any dividend or interest that accrues on the security during the period of the loan. Securities sold in short sale transactions and the dividend or interest payable on such securities, if any, are reflected as payable for short sales on the Statement of Assets and Liabilities. Short sales expose the Portfolio to the risk that it will be required to cover its short position at a time when the security or other asset has appreciated in value, thus resulting in losses to the Portfolio. A short sale is “against the box” if the Portfolio holds in its portfolio or has the right to acquire the security sold short, or securities identical to the security sold short, at no additional cost. The Portfolio will be subject to additional risks to the extent that it engages in short sales that are not “against the box.” The Portfolio’s loss on a short sale could theoretically be unlimited in cases where the Portfolio is unable, for whatever reason, to close out its short position.

6. FINANCIAL DERIVATIVE INSTRUMENTS

The Portfolio may enter into the financial derivative instruments described below to the extent permitted by the Portfolio’s investment policies.

The following disclosures contain information on how and why the Portfolio uses financial derivative instruments, and how financial derivative instruments affect the Portfolio’s financial position, results of operations and cash flows. The location and fair value amounts of these instruments on the Statement of Assets and Liabilities and the net realized gain (loss) and net change in unrealized appreciation (depreciation) on the Statement of Operations, each categorized by type of financial derivative contract and related risk exposure, are included in a table in the Notes to Schedule of Investments. The financial derivative instruments outstanding as of period end and the amounts of net realized gain (loss) and net change in unrealized appreciation (depreciation) on financial derivative instruments during the period, as disclosed in the Notes to Schedule of Investments, serve as indicators of the volume of financial derivative activity for the Portfolio.

(a) Forward Foreign Currency Contracts  may be engaged, in connection with settling planned purchases or sales of securities, to hedge the currency exposure associated with some or all of the Portfolio’s securities or as part of an investment strategy. A forward foreign currency contract is an agreement between two parties to buy and sell a currency at a set price on a future date. The market value of a forward foreign currency contract fluctuates with changes in foreign currency exchange rates. Forward foreign currency contracts are

marked to market daily, and the change in value is recorded by the Portfolio as an unrealized gain (loss). Realized gains (losses) are equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed and are recorded upon delivery or receipt of the currency. These contracts may involve market risk in excess of the unrealized gain (loss) reflected on the Statement of Assets and Liabilities. In addition, the Portfolio could be exposed to risk if the counterparties are unable to meet the terms of the contracts or if the value of the currency changes unfavorably to the U.S. dollar. To mitigate such risk, cash or securities may be exchanged as collateral pursuant to the terms of the underlying contracts.

(b) Futures Contracts  are agreements to buy or sell a security or other asset for a set price on a future date. The Portfolio may use futures contracts to manage its exposure to the securities markets or to movements in interest rates and currency values. The primary risks associated with the use of futures contracts are the imperfect correlation between the change in market value of the securities held by the Portfolio and the prices of futures contracts and the possibility of an illiquid market. Futures contracts are valued based upon their quoted daily settlement prices. Upon entering into a futures contract, the Portfolio is required to deposit with its futures broker an amount of cash, U.S. Government and Agency Obligations, or select sovereign debt, in accordance with the initial margin requirements of the broker or exchange. Futures contracts are marked to market daily and based on such movements in the price of the contracts, an appropriate payable or receivable for the change in value may be posted or collected by the Portfolio (“Futures Variation Margin”). Gains (losses) are recognized but not considered realized until the contracts expire or close. Futures contracts involve, to varying degrees, risk of loss in excess of the Futures Variation Margin included within exchange traded or centrally cleared financial derivative instruments on the Statement of Assets and Liabilities.

(c) Options Contracts  may be written or purchased to enhance returns or to hedge an existing position or future investment. The Portfolio may write call and put options on securities and financial derivative instruments it owns or in which it may invest. Writing put options tends to increase the Portfolio’s exposure to the underlying instrument. Writing call options tends to decrease the Portfolio’s exposure to the underlying instrument. When the Portfolio writes a call or put, an amount equal to the premium received is recorded and subsequently marked to market to reflect the current value of the option written. These amounts are included on the Statement of Assets and Liabilities. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options which are exercised or closed are added to the proceeds or offset against amounts paid on the underlying futures, swap, security or currency

38 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

transaction to determine the realized gain (loss). Certain options may be written with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. The Portfolio as a writer of an option has no control over whether the underlying instrument may be sold (“call”) or purchased (“put”) and as a result bears the market risk of an unfavorable change in the price of the instrument underlying the written option. There is the risk the Portfolio may not be able to enter into a closing transaction because of an illiquid market.

Purchasing call options tends to increase the Portfolio’s exposure to the underlying instrument. Purchasing put options tends to decrease the Portfolio’s exposure to the underlying instrument. The Portfolio pays a premium which is included as an asset on the Statement of Assets and Liabilities and subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options which expire are treated as realized losses. Certain options may be purchased with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. The risk associated with purchasing put and call options is limited to the premium paid. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the underlying investment transaction to determine the realized gain (loss) when the underlying transaction is executed.

Credit Default Swaptions  may be written or purchased to hedge exposure to the credit risk of an investment without making a commitment to the underlying instrument. A credit default swaption is an option to sell or buy credit protection on a specific reference by entering into a pre-defined swap agreement by some specified date in the future.

Foreign Currency Options  may be written or purchased to be used as a short or long hedge against possible variations in foreign exchange rates or to gain exposure to foreign currencies.

Inflation-Capped Options  may be written or purchased to enhance returns or for hedging opportunities. The purpose of purchasing inflation-capped options is to protect the Portfolio from inflation erosion above a certain rate on a given notional exposure. A floor can be used to give downside protection to investments in inflation-linked products.

Interest Rate Swaptions  may be written or purchased to enter into a pre-defined swap agreement or to shorten, extend, cancel or otherwise modify an existing swap agreement, by some specified date in the future. The writer of the swaption becomes the counterparty to the swap if the buyer exercises. The interest rate swaption agreement will specify whether the buyer of the swaption will be a fixed-rate receiver or a fixed-rate payer upon exercise.

Options on Exchange-Traded Futures Contracts  (“Futures Option”) may be written or purchased to hedge an existing position or future investment, for speculative purposes or to manage exposure to market movements. A Futures Option is an option contract in which the underlying instrument is a single futures contract.

Options on Securities  may be written or purchased to enhance returns or to hedge an existing position or future investment. An option on a security uses a specified security as the underlying instrument for the option contract.

(d) Swap Agreements  are bilaterally negotiated agreements between the Portfolio and a counterparty to exchange or swap investment cash flows, assets, foreign currencies or market-linked returns at specified, future intervals. Swap agreements may be privately negotiated in the over the counter market (“OTC swaps”) or may be cleared through a third party, known as a central counterparty or derivatives clearing organization (“Centrally Cleared Swaps”). The Portfolio may enter into asset, credit default, cross-currency, interest rate, total return, variance and other forms of swap agreements to manage its exposure to credit, currency, interest rate, commodity, equity and inflation risk. In connection with these agreements, securities or cash may be identified as collateral or margin in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default or bankruptcy/insolvency.

Centrally Cleared Swaps are marked to market daily based upon valuations as determined from the underlying contract or in accordance with the requirements of the central counterparty or derivatives clearing organization. Changes in market value, if any, are reflected as a component of net change in unrealized appreciation (depreciation) on the Statement of Operations. Daily changes in valuation of centrally cleared swaps (“Swap Variation Margin”), if any, are disclosed within centrally cleared financial derivative instruments on the Statement of Assets and Liabilities. Centrally Cleared and OTC swap payments received or paid at the beginning of the measurement period are included on the Statement of Assets and Liabilities and represent premiums paid or received upon entering into the swap agreement to compensate for differences between the stated terms of the swap agreement and prevailing market conditions (credit spreads, currency exchange rates, interest rates, and other relevant factors). Upfront premiums received (paid) are initially recorded as liabilities (assets) and subsequently marked to market to reflect the current value of the swap. These upfront premiums are recorded as realized gain (loss) on the Statement of Operations upon termination or maturity of the swap. A liquidation payment received or made at the termination of the swap is recorded as realized gain (loss) on the Statement of Operations. Net periodic payments received or paid by the Portfolio are included as part of realized gain (loss) on the Statement of Operations.

ANNUAL REPORT DECEMBER 31, 2018 39

Notes to Financial Statements (Cont.)

For purposes of applying certain of the Portfolio’s investment policies and restrictions, swap agreements, like other derivative instruments, may be valued by the Portfolio at market value, notional value or full exposure value. In the case of a credit default swap, in applying certain of the Portfolio’s investment policies and restrictions, the Portfolio will value the credit default swap at its notional value or its full exposure value (i.e., the sum of the notional amount for the contract plus the market value), but may value the credit default swap at market value for purposes of applying certain of the Portfolio’s other investment policies and restrictions. For example, the Portfolio may value credit default swaps at full exposure value for purposes of the Portfolio’s credit quality guidelines (if any) because such value in general better reflects the Portfolio’s actual economic exposure during the term of the credit default swap agreement. As a result, the Portfolio may, at times, have notional exposure to an asset class (before netting) that is greater or lesser than the stated limit or restriction noted in the Portfolio’s prospectus. In this context, both the notional amount and the market value may be positive or negative depending on whether the Portfolio is selling or buying protection through the credit default swap. The manner in which certain securities or other instruments are valued by the Portfolio for purposes of applying investment policies and restrictions may differ from the manner in which those investments are valued by other types of investors.

Entering into swap agreements involves, to varying degrees, elements of interest, credit, market and documentation risk in excess of the amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of contractual terms in the agreements and that there may be unfavorable changes in interest rates or the values of the asset upon which the swap is based.

The Portfolio’s maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from the counterparty over the contract’s remaining life, to the extent that amount is positive. The risk may be mitigated by having a master netting arrangement between the Portfolio and the counterparty and by the posting of collateral to the Portfolio to cover the Portfolio’s exposure to the counterparty.

To the extent the Portfolio has a policy to limit the net amount owed to or to be received from a single counterparty under existing swap agreements, such limitation only applies to counterparties to OTC swaps and does not apply to centrally cleared swaps where the counterparty is a central counterparty or derivatives clearing organization.

Credit Default Swap Agreements  on corporate, loan, sovereign, U.S. municipal or U.S. Treasury issues are entered into to provide a measure

of protection against defaults of the issuers (i.e., to reduce risk where the Portfolio owns or has exposure to the referenced obligation) or to take an active long or short position with respect to the likelihood of a particular issuer’s default. Credit default swap agreements involve one party making a stream of payments (referred to as the buyer of protection) to another party (the seller of protection) in exchange for the right to receive a specified return in the event that the referenced entity, obligation or index, as specified in the swap agreement, undergoes a certain credit event. As a seller of protection on credit default swap agreements, the Portfolio will generally receive from the buyer of protection a fixed rate of income throughout the term of the swap provided that there is no credit event. As the seller, the Portfolio would effectively add leverage to its portfolio because, in addition to its total net assets, the Portfolio would be subject to investment exposure on the notional amount of the swap.

If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. If the Portfolio is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. Recovery values are estimated by market makers considering either industry standard recovery rates or entity specific factors and considerations until a credit event occurs. If a credit event has occurred, the recovery value is determined by a facilitated auction whereby a minimum number of allowable broker bids, together with a specified valuation method, are used to calculate the settlement value. The ability to deliver other obligations may result in a cheapest-to-deliver option (the buyer of protection’s right to choose the deliverable obligation with the lowest value following a credit event).

Credit default swap agreements on credit indices involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising the credit index. A credit index is a basket of credit

40 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

instruments or exposures designed to be representative of some part of the credit market as a whole. These indices are made up of reference credits that are judged by a poll of dealers to be the most liquid entities in the credit default swap market based on the sector of the index. Components of the indices may include, but are not limited to, investment grade securities, high yield securities, asset-backed securities, emerging markets, and/or various credit ratings within each sector. Credit indices are traded using credit default swaps with standardized terms including a fixed spread and standard maturity dates. An index credit default swap references all the names in the index, and if there is a default, the credit event is settled based on that name’s weight in the index. The composition of the indices changes periodically, usually every six months, and for most indices, each name has an equal weight in the index. The Portfolio may use credit default swaps on credit indices to hedge a portfolio of credit default swaps or bonds, which is less expensive than it would be to buy many credit default swaps to achieve a similar effect. Credit default swaps on indices are instruments for protecting investors owning bonds against default, and traders use them to speculate on changes in credit quality.

Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate, loan, sovereign, U.S. municipal or U.S. Treasury issues as of period end, if any, are disclosed in the Notes to Schedule of Investments. They serve as an indicator of the current status of payment/performance risk and represent the likelihood or risk of default for the reference entity. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. For credit default swap agreements on asset-backed securities and credit indices, the quoted market prices and resulting values serve as the indicator of the current status of the payment/performance risk. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

The maximum potential amount of future payments (undiscounted) that the Portfolio as a seller of protection could be required to make under a credit default swap agreement equals the notional amount of the agreement. Notional amounts of each individual credit default swap agreement outstanding as of period end for which the Portfolio is the seller of protection are disclosed in the Notes to Schedule of Investments. These potential amounts would be partially offset by any

recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Portfolio for the same referenced entity or entities.

Interest Rate Swap Agreements  may be entered into to help hedge against interest rate risk exposure and to maintain the Portfolio’s ability to generate income at prevailing market rates. The value of the fixed rate bonds that the Portfolio holds may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, the Portfolio may enter into interest rate swap agreements. Interest rate swap agreements involve the exchange by the Portfolio with another party for their respective commitment to pay or receive interest on the notional amount of principal. Certain forms of interest rate swap agreements may include: (i) interest rate caps, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates exceed a specified rate, or “cap”, (ii) interest rate floors, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates fall below a specified rate, or “floor”, (iii) interest rate collars, under which a party sells a cap and purchases a floor or vice versa in an attempt to protect itself against interest rate movements exceeding given minimum or maximum levels, (iv) callable interest rate swaps, under which the buyer pays an upfront fee in consideration for the right to early terminate the swap transaction in whole, at zero cost and at a predetermined date and time prior to the maturity date, (v) spreadlocks, which allow the interest rate swap users to lock in the forward differential (or spread) between the interest rate swap rate and a specified benchmark, or (vi) basis swaps, under which two parties can exchange variable interest rates based on different segments of money markets.

7. PRINCIPAL RISKS

The principal risks of investing in the Portfolio, which could adversely affect its net asset value, yield and total return, are listed below. Please see “Description of Principal Risks” in the Portfolio’s prospectus for a more detailed description of the risks of investing in the Portfolio.

Interest Rate Risk  is the risk that fixed income securities will decline in value because of an increase in interest rates; a portfolio with a longer average portfolio duration will be more sensitive to changes in interest rates than a portfolio with a shorter average portfolio duration.

Call Risk  is the risk that an issuer may exercise its right to redeem a fixed income security earlier than expected (a call). Issuers may call outstanding securities prior to their maturity for a number of reasons (e.g., declining interest rates, changes in credit spreads and improvements in the issuer’s credit quality). If an issuer calls a security

ANNUAL REPORT DECEMBER 31, 2018 41

Notes to Financial Statements (Cont.)

that the Portfolio has invested in, the Portfolio may not recoup the full amount of its initial investment and may be forced to reinvest in lower-yielding securities, securities with greater credit risks or securities with other, less favorable features.

Credit Risk  is the risk that the Portfolio could lose money if the issuer or guarantor of a fixed income security, or the counterparty to a derivative contract, is unable or unwilling to meet its financial obligations.

High Yield Risk  is the risk that high yield securities and unrated securities of similar credit quality (commonly known as “junk bonds”) are subject to greater levels of credit, call and liquidity risks. High yield securities are considered primarily speculative with respect to the issuer’s continuing ability to make principal and interest payments, and may be more volatile than higher-rated securities of similar maturity.

Market Risk  is the risk that the value of securities owned by the Portfolio may go up or down, sometimes rapidly or unpredictably, due to factors affecting securities markets generally or particular industries.

Issuer Risk  is the risk that the value of a security may decline for a reason directly related to the issuer, such as management performance, financial leverage and reduced demand for the issuer’s goods or services.

Liquidity Risk  is the risk that a particular investment may be difficult to purchase or sell and that the Portfolio may be unable to sell illiquid securities at an advantageous time or price or achieve its desired level of exposure to a certain sector. Liquidity risk may result from the lack of an active market, reduced number and capacity of traditional market participants to make a market in fixed income securities, and may be magnified in a rising interest rate environment or other circumstances where investor redemptions from fixed income mutual funds may be higher than normal, causing increased supply in the market due to selling activity.

Derivatives Risk  is the risk of investing in derivative instruments (such as futures, swaps and structured securities), including leverage, liquidity, interest rate, market, credit and management risks, mispricing or valuation complexity. Changes in the value of the derivative may not correlate perfectly with, and may be more sensitive to market events than, the underlying asset, rate or index, and the Portfolio could lose more than the initial amount invested. The Portfolio’s use of derivatives may result in losses to the Portfolio, a reduction in the Portfolio’s returns and/or increased volatility. Over-the-counter (“OTC”) derivatives are also subject to the risk that a counterparty to the transaction will not fulfill its contractual obligations to the other party, as many of the protections afforded to centrally-cleared derivative transactions might not be available for OTC derivatives. For derivatives

traded on an exchange or through a central counterparty, credit risk resides with the Portfolio’s clearing broker, or the clearinghouse itself, rather than with a counterparty in an OTC derivative transaction. Changes in regulation relating to a mutual fund’s use of derivatives and related instruments could potentially limit or impact the Portfolio’s ability to invest in derivatives, limit the Portfolio’s ability to employ certain strategies that use derivatives and/or adversely affect the value of derivatives and the Portfolio’s performance.

Equity Risk  is the risk that the value of equity securities, such as common stocks and preferred securities, may decline due to general market conditions which are not specifically related to a particular company or to factors affecting a particular industry or industries. Equity securities generally have greater price volatility than fixed income securities.

Mortgage-Related and Other Asset-Backed Securities Risk  is the risk of investing in mortgage-related and other asset-backed securities, including interest rate risk, extension risk, prepayment risk and credit risk.

Foreign (Non-U.S.) Investment Risk  is the risk that investing in foreign (non-U.S.) securities may result in the Portfolio experiencing more rapid and extreme changes in value than a portfolio that invests exclusively in securities of U.S. companies, due to smaller markets, differing reporting, accounting and auditing standards, increased risk of delayed settlement of portfolio transactions or loss of certificates of portfolio securities, and the risk of unfavorable foreign government actions, including nationalization, expropriation or confiscatory taxation, currency blockage, or political changes or diplomatic developments. Foreign securities may also be less liquid and more difficult to value than securities of U.S. issuers.

Emerging Markets Risk  is the risk of investing in emerging market securities, primarily increased foreign (non-U.S.) investment risk.

Sovereign Debt Risk  is the risk that investments in fixed income instruments issued by sovereign entities may decline in value as a result of default or other adverse credit event resulting from an issuer’s inability or unwillingness to make principal or interest payments in a timely fashion.

Currency Risk  is the risk that foreign (non-U.S.) currencies will change in value relative to the U.S. dollar and affect the Portfolio’s investments in foreign (non-U.S.) currencies or in securities that trade in, and receive revenues in, or in derivatives that provide exposure to, foreign (non-U.S.) currencies.

Leveraging Risk  is the risk that certain transactions of the Portfolio, such as reverse repurchase agreements, loans of portfolio securities,

42 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

and the use of when-issued, delayed delivery or forward commitment transactions, or derivative instruments, may give rise to leverage, magnifying gains and losses and causing the Portfolio to be more volatile than if it had not been leveraged. This means that leverage entails a heightened risk of loss.

Management Risk  is the risk that the investment techniques and risk analyses applied by PIMCO will not produce the desired results and that legislative, regulatory, or tax restrictions, policies or developments may affect the investment techniques available to PIMCO and the individual portfolio manager in connection with managing the Portfolio. There is no guarantee that the investment objective of the Portfolio will be achieved.

Short Exposure Risk  is the risk of entering into short sales, including the potential loss of more money than the actual cost of the investment, and the risk that the third party to the short sale will not fulfill its contractual obligations, causing a loss to the Portfolio.

Convertible Securities Risk  is the risk that arises when convertible securities share both fixed income and equity characteristics. Convertible securities are subject to risks to which fixed income and equity investments are subject. These risks include equity risk, interest rate risk and credit risk.

8. MASTER NETTING ARRANGEMENTS

The Portfolio may be subject to various netting arrangements (“Master Agreements”) with select counterparties. Master Agreements govern the terms of certain transactions, and are intended to reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that is intended to improve legal certainty. Each type of Master Agreement governs certain types of transactions. Different types of transactions may be traded out of different legal entities or affiliates of a particular organization, resulting in the need for multiple agreements with a single counterparty. As the Master Agreements are specific to unique operations of different asset types, they allow the Portfolio to close out and net its total exposure to a counterparty in the event of a default with respect to all the transactions governed under a single Master Agreement with a counterparty. For financial reporting purposes the Statement of Assets and Liabilities generally presents derivative assets and liabilities on a gross basis, which reflects the full risks and exposures prior to netting.

Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. Under most Master Agreements, collateral is routinely transferred if the total net exposure to certain transactions (net of existing collateral already in place) governed under the relevant Master Agreement with a

counterparty in a given account exceeds a specified threshold, which typically ranges from zero to $250,000 depending on the counterparty and the type of Master Agreement. United States Treasury Bills and U.S. dollar cash are generally the preferred forms of collateral, although other securities may be used depending on the terms outlined in the applicable Master Agreement. Securities and cash pledged as collateral are reflected as assets on the Statement of Assets and Liabilities as either a component of Investments at value (securities) or Deposits with counterparty. Cash collateral received is not typically held in a segregated account and as such is reflected as a liability on the Statement of Assets and Liabilities as Deposits from counterparty. The market value of any securities received as collateral is not reflected as a component of NAV. The Portfolio’s overall exposure to counterparty risk can change substantially within a short period, as it is affected by each transaction subject to the relevant Master Agreement.

Master Repurchase Agreements and Global Master Repurchase Agreements (individually and collectively “Master Repo Agreements”) govern repurchase, reverse repurchase, and certain sale-buyback transactions between the Portfolio and select counterparties. Master Repo Agreements maintain provisions for, among other things, initiation, income payments, events of default, and maintenance of collateral. The market value of transactions under the Master Repo Agreement, collateral pledged or received, and the net exposure by counterparty as of period end are disclosed in the Notes to Schedule of Investments.

Master Securities Forward Transaction Agreements (“Master Forward Agreements”) govern certain forward settling transactions, such as TBA securities, delayed-delivery or certain sale-buyback transactions by and between the Portfolio and select counterparties. The Master Forward Agreements maintain provisions for, among other things, transaction initiation and confirmation, payment and transfer, events of default, termination, and maintenance of collateral. The market value of forward settling transactions, collateral pledged or received, and the net exposure by counterparty as of period end is disclosed in the Notes to Schedule of Investments.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Such transactions require posting of initial margin as determined by each relevant clearing agency which is segregated in an account at a futures commission merchant (“FCM”) registered with the Commodity Futures Trading Commission (“CFTC”). In the United States, counterparty risk may be reduced as creditors of an FCM cannot have a claim to Portfolio assets in the segregated account. Portability of exposure reduces risk to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives unless the parties have agreed to a

ANNUAL REPORT DECEMBER 31, 2018 43

Notes to Financial Statements (Cont.)

separate arrangement in respect of portfolio margining. The market value or accumulated unrealized appreciation (depreciation), initial margin posted, and any unsettled variation margin as of period end are disclosed in the Notes to Schedule of Investments.

International Swaps and Derivatives Association, Inc. Master Agreements and Credit Support Annexes (“ISDA Master Agreements”) govern bilateral OTC derivative transactions entered into by the Portfolio with select counterparties. ISDA Master Agreements maintain provisions for general obligations, representations, agreements, collateral posting and events of default or termination. Events of termination include conditions that may entitle counterparties to elect to terminate early and cause settlement of all outstanding transactions under the applicable ISDA Master Agreement. Any election to terminate early could be material to the financial statements. In limited circumstances, the ISDA Master Agreement may contain additional provisions that add counterparty protection beyond coverage of existing daily exposure if the counterparty has a decline in credit quality below a predefined level. These amounts, if any, may be segregated with a third-party custodian. The market value of OTC financial derivative instruments, collateral received or pledged, and net exposure by counterparty as of period end are disclosed in the Notes to Schedule of Investments.

9. FEES AND EXPENSES

(a) Investment Advisory Fee  PIMCO is a majority-owned subsidiary of Allianz Asset Management of America L.P. (“Allianz Asset Management”) and serves as the Adviser to the Trust, pursuant to an investment advisory contract. The Adviser receives a monthly fee from the Portfolio at an annual rate based on average daily net assets (the “Investment Advisory Fee”). The Investment Advisory Fee for all classes is charged at an annual rate as noted in the table in note (b) below.

(b) Supervisory and Administrative Fee  PIMCO serves as administrator (the “Administrator”) and provides supervisory and administrative services to the Trust for which it receives a monthly supervisory and administrative fee based on each share class’s average daily net assets (the “Supervisory and Administrative Fee”). As the Administrator, PIMCO bears the costs of various third-party services, including audit, custodial, portfolio accounting, legal, transfer agency and printing costs.

The Investment Advisory Fee and Supervisory and Administrative Fees for all classes, as applicable, are charged at the annual rate as noted in the following table (calculated as a percentage of the Portfolio’s average daily net assets attributable to each class):

Investment Advisory Fee		Supervisory and Administrative Fee
All Classes		Institutional Class		Administrative Class		Advisor Class
	0.25%		0.25%		0.25%		0.25%

(c) Distribution and Servicing Fees  PIMCO Investments LLC, a wholly-owned subsidiary of PIMCO, serves as the distributor (“Distributor”) of the Trust’s shares.

The Trust has adopted an Administrative Services Plan with respect to the Administrative Class shares of the Portfolio pursuant to Rule 12b-1 under the Act (the “Administrative Plan”). Under the terms of the Administrative Plan, the Trust is permitted to compensate the Distributor, out of the Administrative Class assets of the Portfolio, in an amount up to 0.15% on an annual basis of the average daily net assets of that class, for providing or procuring through financial intermediaries administrative, recordkeeping and investor services for Administrative Class shareholders of the Portfolio.

The Trust has adopted a separate Distribution and Servicing Plan for the Advisor Class shares of the Portfolio (the “Distribution and Servicing Plan”). The Distribution and Servicing Plan has been adopted pursuant to Rule 12b-1 under the Act. The Distribution and Servicing Plan permits the Portfolio to compensate the Distributor for providing or procuring through financial intermediaries, distribution, administrative, recordkeeping, shareholder and/or related services with respect to Advisor Class shares. The Distribution and Servicing Plan permits the Portfolio to make total payments at an annual rate of up to 0.25% of its average daily net assets attributable to its Advisor Class shares.

	Distribution Fee		Servicing Fee
Administrative Class		—		0.15%
Advisor Class		0.25%		—

(d) Portfolio Expenses  PIMCO provides or procures supervisory and administrative services for shareholders and also bears the costs of various third-party services required by the Portfolio, including audit, custodial, portfolio accounting, legal, transfer agency and printing costs. The Trust is responsible for the following expenses: (i) taxes and governmental fees; (ii) brokerage fees and commissions and other portfolio transaction expenses; (iii) the costs of borrowing money, including interest expense; (iv) fees and expenses of the Trustees who are not “interested persons” of PIMCO or the Trust, and any counsel retained exclusively for their benefit; (v) extraordinary expense, including costs of litigation and indemnification expenses; (vi) organizational expenses; and (vii) any expenses allocated or allocable to a specific class of shares, which include service fees payable with respect to the Administrative Class Shares, and may include certain other expenses as permitted by the Trust’s Multi-Class Plan adopted pursuant to Rule 18f-3 under the Act and subject to review and approval by the Trustees. The ratio of expenses to average net assets per share class, as disclosed on the Financial Highlights, may differ from the annual portfolio operating expenses per share class.

44 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

Each Trustee, other than those affiliated with PIMCO or its affiliates, receives an annual retainer of $41,200, plus $4,250 for each Board meeting attended in person, $850 for each committee meeting attended and $750 for each Board meeting attended telephonically, plus reimbursement of related expenses. In addition, the audit committee chair receives an additional annual retainer of $8,000, the valuation oversight committee lead receives an additional annual retainer of $8,500 (to the extent there are co-leads of the valuation oversight committee, the annual retainer will be split evenly between the co-leads, so that each co-lead individually receives an additional annual retainer of $4,250) and each other committee chair receives an additional annual retainer of $5,500. The Lead Independent Trustee receives an annual retainer of $7,000.

These expenses are allocated on a pro rata basis to each Portfolio of the Trust according to its respective net assets. The Trust pays no compensation directly to any Trustee or any other officer who is affiliated with the Administrator, all of whom receive remuneration for their services to the Trust from the Administrator or its affiliates.

(e) Expense Limitation  Pursuant to the Expense Limitation Agreement, PIMCO has agreed to waive a portion of the Portfolio’s Supervisory and Administrative Fee, or reimburse the Portfolio, to the extent that the Portfolio’s organizational expenses, pro rata share of expenses related to obtaining or maintaining a Legal Entity Identifier and pro rata share of Trustee Fees exceed 0.0049%, the “Expense Limit” (calculated as a percentage of the Portfolio’s average daily net assets attributable to each class). The Expense Limitation Agreement will automatically renew for one-year terms unless PIMCO provides written notice to the Trust at least 30 days prior to the end of the then current term.

Under certain conditions, PIMCO may be reimbursed for amounts waived pursuant to the Expense Limitation Agreement in future periods, not to exceed thirty-six months after the waiver. At December 31, 2018, there were no recoverable amounts.

10. RELATED PARTY TRANSACTIONS

The Adviser, Administrator, and Distributor are related parties. Fees paid to these parties are disclosed in Note 9, Fees and Expenses, and the accrued related party fee amounts are disclosed on the Statement of Assets and Liabilities.

The Portfolio is permitted to purchase or sell securities from or to certain related affiliated portfolios under specified conditions outlined in procedures adopted by the Board. The procedures have been designed to ensure that any purchase or sale of securities by the Portfolio from or to another fund or portfolio that are, or could be, considered an affiliate, or an affiliate of an affiliate, by virtue of having

a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers complies with Rule 17a-7 under the Act. Further, as defined under the procedures, each transaction is effected at the current market price. Purchases and sales of securities pursuant to Rule 17a-7 under the Act for the period ended December 31, 2018, were as follows (amounts in thousands^†):

Purchases		Sales
$	42,723	$	115,787

^†   A zero balance may reflect actual amounts rounding to less than one thousand.

11. GUARANTEES AND INDEMNIFICATIONS

Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust (including the Trust’s investment manager) is indemnified, to the extent permitted by the Act, against certain liabilities that may arise out of performance of their duties to the Portfolio. Additionally, in the normal course of business, the Portfolio enters into contracts that contain a variety of indemnification clauses. The Portfolio’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Portfolio that have not yet occurred. However, the Portfolio has not had prior claims or losses pursuant to these contracts.

12. PURCHASES AND SALES OF SECURITIES

The length of time the Portfolio has held a particular security is not generally a consideration in investment decisions. A change in the securities held by the Portfolio is known as “portfolio turnover.” The Portfolio may engage in frequent and active trading of portfolio securities to achieve its investment objective, particularly during periods of volatile market movements. High portfolio turnover may involve correspondingly greater transaction costs to the Portfolio, including brokerage commissions or dealer mark-ups and other transaction costs on the sale of securities and reinvestments in other securities. Such sales may also result in realization of taxable capital gains, including short-term capital gains (which are generally taxed at ordinary income tax rates). The transaction costs and tax effects associated with portfolio turnover may adversely affect a shareholder’s performance. The portfolio turnover rates are reported in the Financial Highlights.

Purchases and sales of securities (excluding short-term investments) for the period ended December 31, 2018, were as follows (amounts in thousands^†):

U.S. Government/Agency				All Other
Purchases		Sales		Purchases		Sales
$	56,869,935	$	56,746,961	$	2,861,788	$	2,024,717

^†   A zero balance may reflect actual amounts rounding to less than one thousand.

ANNUAL REPORT DECEMBER 31, 2018 45

Notes to Financial Statements (Cont.)

13. REDEMPTIONS IN-KIND

For the period ended December 31, 2018, the Portfolio realized gains or losses from in-kind redemptions of approximately (amounts in thousands^†):

Realized Gains		Realized Losses
$	2,989	$	(4,154	)

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

14. SHARES OF BENEFICIAL INTEREST

The Trust may issue an unlimited number of shares of beneficial interest with a $0.001 par value. Changes in shares of beneficial interest were as follows (shares and amounts in thousands^†):

	Year Ended 12/31/2018						Year Ended 12/31/2017
	Shares			Amount			Shares			Amount
Receipts for shares sold
Institutional Class		2,492		$	26,495			2,046		$	22,228
Administrative Class		36,383			388,110			42,421			460,296
Advisor Class		23,594			252,308			30,730			332,911
Issued as reinvestment of distributions
Institutional Class		300			3,171			179			1,947
Administrative Class		14,669			154,858			8,401			91,410
Advisor Class		8,979			94,820			5,060			55,074
Cost of shares redeemed
Institutional Class		(2,398	)		(25,511	)		(3,325	)		(36,182	)
Administrative Class		(80,339	)		(853,623	)		(87,743	)		(947,606	)
Advisor Class		(71,809	)		(762,693	)		(18,622	)		(202,530	)
Net increase (decrease) resulting from Portfolio share transactions		(68,129	)	$	(722,065	)		(20,853	)	$	(222,452	)

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

As of December 31, 2018, two shareholders each owned 10% or more of the Portfolio’s total outstanding shares comprising 26% of the Portfolio. One of the shareholders is a related party and comprises 14% of the Portfolio. Related parties may include, but are not limited to, the investment adviser and its affiliates, affiliated broker dealers, fund of funds and directors or employees of the Trust or Adviser.

15. REGULATORY AND LITIGATION MATTERS

The Portfolio is not named as a defendant in any material litigation or arbitration proceedings and is not aware of any material litigation or claim pending or threatened against it.

The foregoing speaks only as of the date of this report.

16. FEDERAL INCOME TAX MATTERS

The Portfolio intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code (the “Code”) and distribute all of its taxable income and net realized gains, if applicable, to shareholders. Accordingly, no provision for Federal income taxes has been made.

The Portfolio may be subject to local withholding taxes, including those imposed on realized capital gains. Any applicable foreign capital gains tax is accrued daily based upon net unrealized gains, and may be payable following the sale of any applicable investments.

In accordance with U.S. GAAP, the Adviser has reviewed the Portfolio’s tax positions for all open tax years. As of December 31, 2018, the Portfolio has recorded no liability for net unrecognized tax benefits relating to uncertain income tax positions it has taken or expects to take in future tax returns.

The Portfolio files U.S. federal, state, and local tax returns as required. The Portfolio’s tax returns are subject to examination by relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return but which can be extended to six years in certain circumstances. Tax returns for open years have incorporated no uncertain tax positions that require a provision for income taxes.

Shares of the Portfolio currently are sold to segregated asset accounts (“Separate Accounts”) of insurance companies that fund variable

46 PIMCO VARIABLE INSURANCE TRUST

December 31, 2018

annuity contracts and variable life insurance policies (“Variable Contracts”). Please refer to the prospectus for the Separate Account and Variable Contract for information regarding Federal income tax treatment of distributions to the Separate Account.

As of December 31, 2018, the components of distributable taxable earnings are as follows (amounts in thousands^†):

	Undistributed Ordinary Income(1)		Undistributed Long-Term Capital Gains		Net Tax Basis Unrealized Appreciation/ (Depreciation)(2)			Other Book-to-Tax Accounting Differences(3)		Accumulated Capital Losses(4)			Qualified Late-Year Loss Deferral - Capital(5)		Qualified Late-Year Loss Deferral - Ordinary(6)
PIMCO Total Return Portfolio	$	28,280	$	0	$	(14,416	)	$	0	$	(133,872	)	$	0	$	0

^†   A zero balance may reflect actual amounts rounding to less than one thousand.

⁽¹⁾  Includes undistributed short-term capital gains, if any.

⁽²⁾  Adjusted for open wash sale loss deferrals and the accelerated recognition of unrealized gain or loss on certain futures, options and forward contracts for federal income tax, purposes. Also adjusted for differences between book and tax realized and unrealized gain (loss) on swap contracts, treasury inflation-protected securities (TIPS), sale/buyback transactions, convertible preferred securities, passive foreign investment companies (PFICs), return of capital distributions from underlying funds, straddle loss deferrals, in-kind transactions, and Lehman securities.

⁽³⁾  Represents differences in income tax regulations and financial accounting principles generally accepted in the United States of America, mainly for distributions payable at fiscal year-end and organizational costs.

⁽⁴⁾  Capital losses available to offset future net capital gains expire in varying amounts as shown below.

⁽⁵⁾  Capital losses realized during the period November 1, 2018 through December 31, 2018 which the Portfolio elected to defer to the following taxable year pursuant to income tax regulations.

⁽⁶⁾  Specified losses realized during the period November 1, 2018 through December 31, 2018 which the Portfolio elected to defer to the following taxable year pursuant to income tax regulations.

Under the Regulated Investment Company Modernization Act of 2010, a fund is permitted to carry forward any new capital losses for an unlimited period. Additionally, such capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term under previous law.

As of December 31, 2018, the Portfolio had the following post-effective capital losses with no expiration (amounts in thousands^†):

	Short-Term		Long-Term
PIMCO Total Return Portfolio	$	51,973	$	81,899

^†   A zero balance may reflect actual amounts rounding to less than one thousand.

As of December 31, 2018, the aggregate cost and the net unrealized appreciation/(depreciation) of investments for federal income tax purposes are as follows (amounts in thousands^†):

	Federal Tax Cost		Unrealized Appreciation		Unrealized (Depreciation)			Net Unrealized Appreciation/ (Depreciation)(7)
PIMCO Total Return Portfolio	$	9,513,424	$	280,128	$	(294,617	)	$	(14,489	)

^†  A zero balance may reflect actual amounts rounding to less than one thousand.

⁽⁷⁾  Primary differences, if any, between book and tax net unrealized appreciation/(depreciation) on investments are attributable to open wash sale loss deferrals, unrealized gain or loss on certain futures, options and forward contracts, treasury inflation protected securities (TIPS), sale/buyback transactions, realized and unrealized gain (loss) swap contracts, in-kind transactions, passive foreign investment companies (PFICs), return of capital distributions from underlying funds, straddle loss deferrals, and Lehman securities.

For the fiscal year ended December 31, 2018 and December 31, 2017, respectively, the Portfolio made the following tax basis distributions (amounts in thousands^†):

	December 31, 2018						December 31, 2017
	Ordinary Income Distributions(8)		Long-Term Capital Gain Distributions		Return of Capital(9)		Ordinary Income Distributions(8)		Long-Term Capital Gain Distributions		Return of Capital(9)
PIMCO Total Return Portfolio	$	253,207	$	0	$	0	$	148,433	$	0	$	0

^†   A zero balance may reflect actual amounts rounding to less than one thousand.

⁽⁸⁾  Includes short-term capital gains distributed, if any.

⁽⁹⁾  A portion of the distributions made represents a tax return of capital. Return of capital distributions have been reclassified from undistributed net investment income to paid-in capital to more appropriately conform financial accounting to tax accounting.

ANNUAL REPORT DECEMBER 31, 2018 47

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of PIMCO Variable Insurance Trust and Shareholders of PIMCO Total Return Portfolio

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of PIMCO Total Return Portfolio (one of the portfolios constituting PIMCO Variable Insurance Trust, referred to hereafter as the “Portfolio”) as of December 31, 2018, the related statement of operations for the year ended December 31, 2018, the statement of changes in net assets for each of the two years in the period ended December 31, 2018, including the related notes, and the financial highlights for each of the five years in the period ended December 31, 2018 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Portfolio as of December 31, 2018, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended December 31, 2018 and the financial highlights for each of the five years in the period ended December 31, 2018 in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Portfolio’s management. Our responsibility is to express an opinion on the Portfolio’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Portfolio in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2018 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

Kansas City, Missouri

February 20, 2019

We have served as the auditor of one or more investment companies in PIMCO Variable Insurance Trust since 1998.

48 PIMCO VARIABLE INSURANCE TRUST

Glossary: (abbreviations that may be used in the preceding statements)

(Unaudited)

Counterparty Abbreviations:
AZD	Australia and New Zealand Banking Group	FICC	Fixed Income Clearing Corporation	MYI	Morgan Stanley & Co. International PLC
BOA	Bank of America N.A.	GLM	Goldman Sachs Bank USA	NGF	Nomura Global Financial Products, Inc.
BOM	Bank of Montreal	GSC	Goldman Sachs & Co.	RBC	Royal Bank of Canada
BOS	Banc of America Securities LLC	GST	Goldman Sachs International	SAL	Citigroup Global Markets, Inc.
BPS	BNP Paribas S.A.	HUS	HSBC Bank USA N.A.	SCX	Standard Chartered Bank
BRC	Barclays Bank PLC	IND	Crédit Agricole Corporate and Investment Bank S.A.	SOG	Societe Generale
CBK	Citibank N.A.	JPM	JP Morgan Chase Bank N.A.	SSB	State Street Bank and Trust Co.
DUB	Deutsche Bank AG	MSB	Morgan Stanley Bank, N.A	TDM	TD Securities (USA) LLC
FBF	Credit Suisse International	MSC	Morgan Stanley & Co., Inc.	UAG	UBS AG Stamford
Currency Abbreviations:
ARS	Argentine Peso	GBP	British Pound	NOK	Norwegian Krone
AUD	Australian Dollar	ILS	Israeli Shekel	RUB	Russian Ruble
BRL	Brazilian Real	INR	Indian Rupee	SGD	Singapore Dollar
CAD	Canadian Dollar	JPY	Japanese Yen	THB	Thai Baht
CNH	Chinese Renminbi (Offshore)	KRW	South Korean Won	TRY	Turkish New Lira
EUR	Euro	MXN	Mexican Peso	USD (or $)	United States Dollar
Exchange Abbreviations:
CBOT	Chicago Board of Trade	OTC	Over the Counter
Index/Spread Abbreviations:
CDX.HY	Credit Derivatives Index - High Yield	CPURNSA	Consumer Price All Urban Non-Seasonally Adjusted Index	LIBOR03M	3 Month USD-LIBOR
CDX.IG	Credit Derivatives Index - Investment Grade	EUR003M	3 Month EUR Swap Rate	US0003M	3 Month USD Swap Rate
CMBX	Commercial Mortgage-Backed Index
Other Abbreviations:
ABS	Asset-Backed Security	EURIBOR	Euro Interbank Offered Rate	PIK	Payment-in-Kind
ALT	Alternate Loan Trust	LIBOR	London Interbank Offered Rate	TBA	To-Be-Announced
BTP	Buoni del Tesoro Poliennali	Lunar	Monthly payment based on 28-day periods. One year consists of 13 periods.	TBD	To-Be-Determined
CLO	Collateralized Loan Obligation	OAT	Obligations Assimilables du Trésor	TIIE	Tasa de Interés Interbancaria de Equilibrio “Equilibrium Interbank Interest Rate”
DAC	Designated Activity Company

ANNUAL REPORT DECEMBER 31, 2018 49

Federal Income Tax Information

(Unaudited)

As required by the Internal Revenue Code (the “Code”) and Treasury Regulations, if applicable, shareholders must be notified regarding the status of qualified dividend income and the dividend received deduction.

Dividend Received Deduction.  Corporate shareholders are generally entitled to take the dividend received deduction on the portion of a Fund’s dividend distribution that qualifies under tax law. The percentage of the following Portfolio’s fiscal 2018 ordinary income dividend that qualifies for the corporate dividend received deduction is set forth in the table below.

Qualified Dividend Income.  Under the Jobs and Growth Tax Relief Reconciliation Act of 2003 (the “Act”), the percentage of ordinary dividends paid during the calendar year designated as “qualified dividend income”, as defined in the Act, subject to reduced tax rates in 2018 is set forth for the Portfolio in the table below.

Qualified Interest Income and Qualified Short-Term Capital Gain (for non-U.S. resident shareholders only).  Under the American Jobs Creation Act of 2004, the amounts of ordinary dividends paid during the fiscal year ended December 31, 2018 considered to be derived from “qualified interest income,” as defined in Section 871(k)(1)(E) of the Code, and therefore designated as interest-related dividends, as defined in Section 871(k)(1)(C) of the Code are set forth in the table below. Further, the amounts of ordinary dividends paid during the fiscal year ended December 31, 2018 considered to be derived from “qualified short-term capital gain,” as defined in Section 871(k)(2)(D) of the Code, and therefore designated as qualified short-term gain dividends, as defined by Section 871(k)(2)(C) of the Code are also set forth in the table below.

	Dividend Received Deduction %		Qualified Dividend Income %		Qualified Interest Income (000s†)		Qualified Short-Term Capital Gain (000s†)
PIMCO Total Return Portfolio		0.00%		0.00%	$	152,143	$	78,530

^†   A zero balance may reflect actual amounts rounding to less than one thousand.

Shareholders are advised to consult their own tax advisor with respect to the tax consequences of their investment in the Trust. In January 2019, you will be advised on IRS Form 1099-DIV as to the federal tax status of the dividends and distributions received by you in calendar year 2018.

50 PIMCO VARIABLE INSURANCE TRUST

Management of the Trust

(Unaudited)

The charts below identify the Trustees and executive officers of the Trust. Unless otherwise indicated, the address of all persons below is 650 Newport Center Drive, Newport Beach, CA 92660.

The Portfolio’s Statement of Additional Information includes more information about the Trustees and Officers. To request a free copy, call PIMCO at (888) 87-PIMCO or visit the Portfolio’s website at www.pimco.com/pvit.

Name, Year of Birth and Position Held with Trust*	Term of Office and Length of Time Served†	Principal Occupation(s) During Past 5 Years	Number of Funds in Fund Complex Overseen by Trustee	Other Public Company and Investment Company Directorships Held by Trustee During the Past 5 Years
Interested Trustees1
Peter G. Strelow** (1970) Chairman of the Board and Trustee	05/2017 to present Chairman of the Board - 02/2019 to present	Managing Director and Co-Chief Operating Officer, PIMCO. President of the Trust, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Chief Administrative Officer, PIMCO.	153	Chairman and Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT.
Brent R. Harris** (1959) Trustee	08/1997 to present	Managing Director, PIMCO. Senior Vice President of the Trust, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Formerly, member of Executive Committee, PIMCO.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT; Director, StocksPLUS® Management, Inc; and member of Board of Governors, Investment Company Institute. Formerly, Chairman, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT.
Independent Trustees
George E. Borst (1948) Trustee	04/2015 to present	Executive Advisor, McKinsey & Company (since 10/14); Formerly, Executive Advisor, Toyota Financial Services (10/13-12/14); and CEO, Toyota Financial Services (1/01-9/13).	132	Trustee, PIMCO Funds and PIMCO ETF Trust; Director, MarineMax Inc.
Jennifer Holden Dunbar (1963) Trustee	04/2015 to present	Managing Director, Dunbar Partners, LLC (business consulting and investments). Formerly, Partner, Leonard Green & Partners, L.P.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT; Director, PS Business Parks; Director, Big 5 Sporting Goods Corporation.
Kym M. Hubbard (1957) Trustee	02/2017 to present	Formerly, Global Head of Investments, Chief Investment Officer and Treasurer, Ernst & Young.	132	Trustee, PIMCO Funds and PIMCO ETF Trust; Director, State Auto Financial Corporation.
Gary F. Kennedy (1955) Trustee	04/2015 to present	Formerly, Senior Vice President, General Counsel and Chief Compliance Officer, American Airlines and AMR Corporation (now American Airlines Group) (1/03-1/14).	132	Trustee, PIMCO Funds and PIMCO ETF Trust.
Peter B. McCarthy (1950) Trustee	04/2015 to present	Formerly, Assistant Secretary and Chief Financial Officer, United States Department of Treasury; Deputy Managing Director, Institute of International Finance.	153	Trustee, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Ronald C. Parker (1951) Lead Independent Trustee	07/2009 to present Lead Independent Trustee - 02/2017 to present	Director of Roseburg Forest Products Company. Formerly, Chairman of the Board, The Ford Family Foundation; and President, Chief Executive Officer, Hampton Affiliates (forestry products).	153	Lead Independent Trustee, PIMCO Funds and PIMCO ETF Trust; Trustee, PIMCO Equity Series and PIMCO Equity Series VIT.

* Unless otherwise noted, the information for the individuals listed is as of December 31, 2018.

** Effective February 13, 2019, Mr. Strelow became the Chairman of the Trust.

¹  Mr. Harris and Mr. Strelow are “interested persons” of the Trust (as that term is defined in the 1940 Act) because of their affiliations with PIMCO.

^†  Trustees serve until their successors are duly elected and qualified.

ANNUAL REPORT DECEMBER 31, 2018 51

Management of the Trust (Cont.)

(Unaudited)

Executive Officers

Name, Year of Birth and Position Held with Trust	Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years*
Peter G. Strelow (1970) President	01/2015 to present	Managing Director and Co-Chief Operating Officer, PIMCO. President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Chief Administrative Officer, PIMCO.
Joshua D. Ratner (1976)** Chief Legal Officer	11/2018 to present Vice President - Senior Counsel and Secretary 11/2013 to 11/2018 Assistant Secretary 10/2007 to 01/2011	Executive Vice President and Deputy General Counsel, PIMCO. Chief Legal Officer, PIMCO Investments LLC. Chief Legal Officer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Jennifer E. Durham (1970) Chief Compliance Officer	07/2004 to present	Managing Director and Chief Compliance Officer, PIMCO. Chief Compliance Officer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Brent R. Harris (1959) Senior Vice President	01/2015 to present President 03/2009 to 01/2015	Managing Director, PIMCO. Senior Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Formerly, member of Executive Committee, PIMCO.
Ryan G. Leshaw (1980) Vice President, Senior Counsel and Secretary	11/2018 to present Assistant Secretary 05/2012 to 11/2018	Senior Vice President and Senior Counsel, PIMCO. Vice President, Senior Counsel and Secretary, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Assistant Secretary, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Associate, Willkie Farr & Gallagher LLP.
Wu-Kwan Kit (1981) Assistant Secretary	08/2017 to present	Senior Vice President and Senior Counsel, PIMCO. Assistant Secretary, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT. Vice President, Senior Counsel and Secretary, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds. Formerly, Assistant General Counsel, VanEck Associates Corp.
Stacie D. Anctil (1969) Vice President	05/2015 to present Assistant Treasurer 11/2003 to 05/2015	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
William G. Galipeau (1974) Vice President	11/2013 to present	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Eric D. Johnson (1970) Vice President	05/2011 to present	Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Henrik P. Larsen (1970) Vice President	02/1999 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Bijal Y. Parikh (1978) Vice President	02/2017 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Greggory S. Wolf (1970) Vice President	05/2011 to present	Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series and PIMCO Equity Series VIT.
Trent W. Walker (1974) Treasurer	11/2013 to present	Executive Vice President, PIMCO. Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Erik C. Brown (1967)** Assistant Treasurer	02/2001 to present	Executive Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Colleen D. Miller (1980)** Assistant Treasurer	02/2017 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Christopher M. Morin (1980) Assistant Treasurer	08/2016 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.
Jason J. Nagler (1982)** Assistant Treasurer	05/2015 to present	Senior Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, PIMCO-Sponsored Interval Funds and PIMCO-Sponsored Closed-End Funds.

* The term “PIMCO-Sponsored Closed-End Funds” as used herein includes: PIMCO California Municipal Income Fund, PIMCO California Municipal Income Fund II, PIMCO California Municipal Income Fund III, PIMCO Municipal Income Fund, PIMCO Municipal Income Fund II, PIMCO Municipal Income Fund III, PIMCO New York Municipal Income Fund, PIMCO New York Municipal Income Fund II, PIMCO New York Municipal Income Fund III, PCM Fund Inc., PIMCO Corporate & Income Opportunity Fund, PIMCO Corporate & Income Strategy Fund, PIMCO Dynamic Credit and Mortgage Income Fund, PIMCO Dynamic Income Fund, PIMCO Global StocksPLUS^® & Income Fund, PIMCO High Income Fund, PIMCO Income Opportunity Fund, PIMCO Income Strategy Fund, PIMCO Income Strategy Fund II and PIMCO Strategic Income Fund, Inc.; the term “PIMCO-Sponsored Interval Funds” as used herein includes: PIMCO Flexible Credit Income Fund and PIMCO Flexible Municipal Income Fund.

** The address of these officers is Pacific Investment Management Company LLC, 1633 Broadway, New York, New York 10019.

52 PIMCO VARIABLE INSURANCE TRUST

Privacy Policy¹

(Unaudited)

The Trust^2,3 considers customer privacy to be a fundamental aspect of its relationships with shareholders and is committed to maintaining the confidentiality, integrity and security of its current, prospective and former shareholders’ non-public personal information. The Trust has developed policies that are designed to protect this confidentiality, while allowing shareholder needs to be served.

OBTAINING PERSONAL INFORMATION

In the course of providing shareholders with products and services, the Trust and certain service providers to the Trust, such as the Trust’s investment advisers or sub-advisers (“Advisers”), may obtain non-public personal information about shareholders, which may come from sources such as account applications and other forms, from other written, electronic or verbal correspondence, from shareholder transactions, from a shareholder’s brokerage or financial advisory firm, financial advisor or consultant, and/or from information captured on applicable websites.

RESPECTING YOUR PRIVACY

As a matter of policy, the Trust does not disclose any non-public personal information provided by shareholders or gathered by the Trust to non-affiliated third parties, except as required or permitted by law or as necessary for such third parties to perform their agreements with respect to the Trust. As is common in the industry, non-affiliated companies may from time to time be used to provide certain services, such as preparing and mailing prospectuses, reports, account statements and other information, conducting research on shareholder satisfaction and gathering shareholder proxies. The Trust or its affiliates may also retain non-affiliated companies to market the Trust’s shares or products which use the Trust’s shares and enter into joint marketing arrangements with them and other companies. These companies may have access to a shareholder’s personal and account information, but are permitted to use this information solely to provide the specific service or as otherwise permitted by law. In most cases, the shareholders will be clients of a third party, but the Trust may also provide a shareholder’s personal and account information to the shareholder’s respective brokerage or financial advisory firm and/or financial advisor or consultant.

SHARING INFORMATION WITH THIRD PARTIES

The Trust reserves the right to disclose or report personal or account information to non-affiliated third parties in limited circumstances where the Trust believes in good faith that disclosure is required under law, to cooperate with regulators or law enforcement authorities, to protect its rights or property, or upon reasonable request by any fund advised by PIMCO in which a shareholder has invested. In addition, the Trust may disclose information about a shareholder or a shareholder’s accounts to a non-affiliated third party at the shareholder’s request or with the consent of the shareholder.

SHARING INFORMATION WITH AFFILIATES

The Trust may share shareholder information with its affiliates in connection with servicing shareholders’ accounts, and subject to applicable law may provide shareholders with information about products and services that the Trust or its Advisers, distributors or their affiliates (“Service Affiliates”) believe may be of interest to such shareholders. The information that the Trust may share may include,

for example, a shareholder’s participation in the Trust or in other investment programs sponsored by a Service Affiliate, a shareholder’s ownership of certain types of accounts (such as IRAs), information about the Trust’s experiences or transactions with a shareholder, information captured on applicable websites, or other data about a shareholder’s accounts, subject to applicable law. The Trust’s Service Affiliates, in turn, are not permitted to share shareholder information with non-affiliated entities, except as required or permitted by law.

PROCEDURES TO SAFEGUARD PRIVATE INFORMATION

The Trust takes seriously the obligation to safeguard shareholder non-public personal information. In addition to this policy, the Trust has implemented procedures that are designed to restrict access to a shareholder’s non-public personal information to internal personnel who need to know that information to perform their jobs, such as servicing shareholder accounts or notifying shareholders of new products or services. Physical, electronic and procedural safeguards are in place to guard a shareholder’s non-public personal information.

INFORMATION COLLECTED FROM WEBSITES

Websites maintained by the Trust or its service providers may use a variety of technologies to collect information that help the Trust and its service providers understand how the website is used. Information collected from your web browser (including small files stored on your device that are commonly referred to as “cookies”) allow the websites to recognize your web browser and help to personalize and improve your user experience and enhance navigation of the website. In addition, the Trust or its Service Affiliates may use third parties to place advertisements for the Trust on other websites, including banner advertisements. Such third parties may collect anonymous information through the use of cookies or action tags (such as web beacons). The information these third parties collect is generally limited to technical and web navigation information, such as your IP address, web pages visited and browser type, and does not include personally identifiable information such as name, address, phone number or email address. If you are a registered user of the Trust’s website, the Trust or their service providers or third party firms engaged by the Trust or their service providers may collect or share information submitted by you, which may include personally identifiable information. This information can be useful to the Trust when assessing and offering services and website features. You can change your cookie preferences by changing the setting on your web browser to delete or reject cookies. If you delete or reject cookies, some website pages may not function properly. The Trust does not look for web browser “do not track” requests.

CHANGES TO THE PRIVACY POLICY

From time to time, the Trust may update or revise this privacy policy. If there are changes to the terms of this privacy policy, documents containing the revised policy on the relevant website will be updated.

¹ Amended as of February 15, 2017.

² PIMCO Investments LLC (“PI”) serves as the Trust’s distributor. This Privacy Policy applies to the activities of PI to the extent that PI regularly effects or engages in transactions with or for a Trust shareholder who is the record owner of such shares. For purposes of this Privacy Policy, references to “the Trust” shall include PI when acting in this capacity.

³ When distributing this Policy, the Trust may combine the distribution with any similar distribution of its investment adviser’s privacy policy. The distributed, combined policy may be written in the first person (i.e., by using “we” instead of “the Trust”).

ANNUAL REPORT DECEMBER 31, 2018 53

Approval of Investment Advisory Contract and Other Agreements

Approval of Renewal of the Amended and Restated Investment Advisory Contract, Supervision and Administration Agreement and Amended and Restated Asset Allocation Sub-Advisory Agreement

At a meeting held on August 20-21, 2018, the Board of Trustees (the “Board”) of PIMCO Variable Insurance Trust (the “Trust”), including the Trustees who are not “interested persons” of the Trust under the Investment Company Act of 1940, as amended (the “Independent Trustees”), considered and unanimously approved the renewal of the Amended and Restated Investment Advisory Contract (the “Investment Advisory Contract”) between the Trust, on behalf of each of the Trust’s series (the “Portfolios”), and Pacific Investment Management Company LLC (“PIMCO”) for an additional one-year term through August 31, 2019. The Board also considered and unanimously approved the renewal of the Supervision and Administration Agreement (together with the Investment Advisory Contract, the “Agreements”) between the Trust, on behalf of the Portfolios, and PIMCO for an additional one-year term through August 31, 2019. In addition, the Board considered and unanimously approved the renewal of the Amended and Restated Asset Allocation Sub-Advisory Agreement (the “Asset Allocation Agreement”) between PIMCO, on behalf of PIMCO All Asset Portfolio and PIMCO All Asset All Authority Portfolio, each a series of the Trust, and Research Affiliates, LLC (“Research Affiliates”) for an additional one-year term through August 31, 2019.

The information, material factors and conclusions that formed the basis for the Board’s approvals are summarized below.

1. INFORMATION RECEIVED

(a) Materials Reviewed:  During the course of the past year, the Trustees received a wide variety of materials relating to the services provided by PIMCO and Research Affiliates to the Trust. At each of its quarterly meetings, the Board reviewed the Portfolios’ investment performance and a significant amount of information relating to Portfolio operations, including shareholder services, valuation and custody, the Portfolios’ compliance program and other information relating to the nature, extent and quality of services provided by PIMCO and Research Affiliates to the Trust and each of the Portfolios, as applicable. In considering whether to approve the renewal of the Agreements and the Asset Allocation Agreement, the Board reviewed additional information, including, but not limited to, comparative industry data with regard to investment performance, advisory and supervisory and administrative fees and expenses, financial information for PIMCO and, where relevant, Research Affiliates, information regarding the profitability to PIMCO of its relationship with the Portfolios, information about the personnel providing investment management services, other advisory services and supervisory and administrative services to the Portfolios, and information about the fees

charged and services provided to other clients with similar investment mandates as the Portfolios, where applicable. In addition, the Board reviewed materials provided by counsel to the Trust and the Independent Trustees, which included, among other things, memoranda outlining legal duties of the Board in considering the renewal of the Agreements and the Asset Allocation Agreement.

(b) Review Process:  In connection with considering the renewal of the Agreements and the Asset Allocation Agreement, the Board reviewed written materials prepared by PIMCO and, where applicable, Research Affiliates in response to requests from counsel to the Trust and the Independent Trustees encompassing a wide variety of topics. The Board requested and received assistance and advice regarding, among other things, applicable legal standards from counsel to the Trust and the Independent Trustees, and reviewed comparative fee and performance data prepared at the Board’s request by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company performance information and fee and expense data. The Board received information on matters related to the Agreements and the Asset Allocation Agreement and met both as a full Board and in a separate session of the Independent Trustees, without management present, at the August 20-21, 2018 meeting. The Independent Trustees also conducted in-person meetings with counsel to the Trust and the Independent Trustees, including one on July 18, 2018, to discuss the Lipper Report, as defined below, and certain aspects of the 2018 15(c) materials presented and other matters deemed relevant to their consideration of the renewal of the Agreements and the Asset Allocation Agreement. In connection with its review of the Agreements, the Board received comparative information on the performance and the fees and expenses of other peer group funds and share classes. In addition, the Independent Trustees requested and received supplemental information.

The approval determinations were made on the basis of each Trustee’s business judgment after consideration and evaluation of all the information presented. Individual Trustees may have given different weights to certain factors and assigned various degrees of materiality to information received in connection with the approval process. In deciding to approve the renewal of the Agreements and the Asset Allocation Agreement, the Board did not identify any single factor or particular information that, in isolation, was controlling. The discussion below is intended to summarize the broad factors and information that figured prominently in the Board’s consideration of the renewal of the Agreements and the Asset Allocation Agreement, but is not intended to summarize all of the factors considered by the Board.

2. NATURE, EXTENT AND QUALITY OF SERVICES

(a) PIMCO, Research Affiliates, their Personnel, and Resources:  The Board considered the depth and quality of PIMCO’s investment management process, including: the experience, capability and integrity

54 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

of its senior management and other personnel; the overall financial strength and stability of its organization; and the ability of its organizational structure to address changes in the Portfolios’ asset levels. The Board also considered the various services in addition to portfolio management that PIMCO provides under the Investment Advisory Contract. The Board noted that PIMCO makes available to its investment professionals a variety of resources and systems relating to investment management, compliance, trading, performance and portfolio accounting. The Board also noted PIMCO’s commitment to enhancing and investing in its global infrastructure, technology capabilities, risk management processes and the specialized talent needed to stay at the forefront of the competitive investment management industry and to strengthen its ability to deliver services under the Agreements. The Board considered PIMCO’s policies, procedures and systems reasonably designed to assure compliance with applicable laws and regulations and its commitment to further developing and strengthening these programs, its oversight of matters that may involve conflicts of interest between the Portfolios’ investments and those of other accounts managed by PIMCO, and its efforts to keep the Trustees informed about matters relevant to the Portfolios and their shareholders. The Board also considered PIMCO’s continuous investment in new disciplines and talented personnel, which has enhanced PIMCO’s services to the Portfolios and has allowed PIMCO to introduce innovative new portfolios over time. In addition, the Board considered the nature and quality of services provided by PIMCO to the wholly-owned subsidiaries of certain applicable Portfolios.

The Trustees considered that PIMCO has continued to strengthen the process it uses to actively manage counterparty risk and to assess the financial stability of counterparties with which the Portfolios do business, to manage collateral and to protect Portfolios from an unforeseen deterioration in the creditworthiness of trading counterparties. The Trustees noted that, consistent with its fiduciary duty, PIMCO executes transactions through a competitive best execution process and uses only those counterparties that meet its stringent and monitored criteria. The Trustees considered that PIMCO’s collateral management team utilizes a counterparty risk system to analyze portfolio level exposure and collateral being exchanged with counterparties.

In addition, the Trustees considered new services and service enhancements that PIMCO has implemented since the Board renewed the Agreements in 2017, including, but not limited to upgrading the global network and infrastructure to support trading and risk management systems; enhancing and continuing to expand capabilities within the pre-trade compliance platform; enhancing flexible client reporting capabilities to support increased differentiation within local markets; developing new application and database frameworks to support new trading strategies; expanding proprietary applications

suites to enrich capabilities across Compliance, Analytics, Risk Management, Client Reporting, Attribution and Customer Relationship management; continuing investment in its enterprise risk management function, including PIMCO’s cybersecurity program and global business continuity functions; oversight by the Americas Fund Oversight Committee, which provides senior-level oversight and supervision focused on new and ongoing fund-related business opportunities; engaging a third party service provider to implement the SEC reporting modernization regime; expanding the Fund Treasurer’s Office; enhancing a proprietary application to provide portfolio managers with more timely and high quality income reporting; developing a global tax management application that will enable investment professionals to access foreign market and security tax information on a real-time basis; enhancing reporting of tax reporting for portfolio managers for income products with improved transparency on tax factors impacting income generation and dividend yield; upgrading a proprietary application to allow shareholder subscription and redemption data to pass to portfolio managers more quickly and efficiently; and continuing to expand the pricing portal and the proprietary performance reconciliation tool.

Similarly, the Board considered the asset allocation services provided by Research Affiliates to the PIMCO All Asset Portfolio and PIMCO All Asset All Authority Portfolio. The Board further considered PIMCO’s oversight of Research Affiliates in connection with Research Affiliates providing asset allocation services to the Asset Portfolio and All Asset All Authority Portfolio. The Board also considered the depth and quality of Research Affiliates’ investment management and research capabilities, the experience and capabilities of its portfolio management personnel and the overall financial strength of the organization.

Ultimately, the Board concluded that the nature, extent and quality of services provided or procured by PIMCO under the Agreements and provided by Research Affiliates under the Asset Allocation Agreement are likely to continue to benefit the Portfolios and their respective shareholders, as applicable.

(b) Other Services:  The Board also considered the nature, extent and quality of supervisory and administrative services provided by PIMCO to the Portfolios under the Supervision and Administration Agreement.

The Board considered the terms of the Supervision and Administration Agreement, under which the Trust pays for the supervisory and administrative services provided pursuant to that agreement under what is essentially an all-in fee structure (the “unified fee”). In return, PIMCO provides or procures certain supervisory and administrative services and bears the costs of various third party services required by the Portfolios, including audit, custodial, portfolio accounting, legal, transfer agency, sub-accounting and printing costs. The Board noted that the scope and complexity, as well as the costs, of the supervisory

ANNUAL REPORT DECEMBER 31, 2018 55

Approval of Investment Advisory Contract and Other Agreements (Cont.)

and administrative services provided by PIMCO under the Supervision and Administration Agreement continue to increase. The Board considered PIMCO’s provision of supervisory and administrative services and its supervision of the Trust’s third party service providers to assure that these service providers continue to provide a high level of service relative to alternatives available in the market.

Ultimately, the Board concluded that the nature, extent and quality of the services provided by PIMCO has benefited, and will likely continue to benefit, the Portfolios and their shareholders.

3. INVESTMENT PERFORMANCE

The Board reviewed information from PIMCO concerning the Portfolios’ performance, as available, over short- and long-term periods ended March 31, 2018 and other performance data, as available, over short- and long-term periods ended June 30, 2018 (the “PIMCO Report”) and from Broadridge concerning the Portfolios’ performance, as available, over short- and long-term periods ended March 31, 2018 (the “Lipper Report”).

The Board considered information regarding both the short- and long-term investment performance of each Portfolio relative to its peer group and relevant benchmark index as provided to the Board in advance of each of its quarterly meetings throughout the year, including the PIMCO Report and Lipper Report, which were provided in advance of the August 20-21, 2018 meeting. The Trustees noted that many of the Portfolios outperformed their respective Lipper medians on a net-of-fees basis over the three-, five- and ten-year periods ended March 31, 2018. The Board also noted that, as of March 31, 2018, the Administrative Class of 72%, 35% and 73% of the Portfolios outperformed their respective Lipper category median on a net-of-fees basis over the three-, five- and ten-year periods, respectively. The Trustees considered that other classes of each Portfolio would have substantially similar performance to that of the Administrative Class of the relevant Portfolio on a relative basis because all of the classes are invested in the same portfolio of investments and that differences in performance among classes could principally be attributed to differences in the supervisory and administrative fees and distribution and servicing expenses of each class. The Board also considered that the investment objectives of certain of the Portfolios may not always be identical to those of the other funds in their respective peer groups and that the Lipper categories do not: separate funds based upon maturity or duration; account for the applicable Portfolios’ hedging strategies; distinguish between enhanced index and actively managed equity strategies; include as many subsets as the Portfolios offer (i.e., Portfolios may be placed in a “catch-all” Lipper category to which they do not properly belong); or account for certain fee waivers. The Board noted that, due to these differences, performance comparisons between certain of the Portfolios and their so-called peers may not be

particularly relevant to the consideration of Portfolio performance but found the comparative information supported its overall evaluation.

The Board noted that performance for a majority of the Portfolios has been mixed compared to their respective benchmark indexes over the five-year period ended March 31, 2018. The Board noted that, as of March 31, 2018, 70%, 23% and 92% of the Trust’s assets (based on Administrative Class performance) outperformed their respective benchmarks on a net-of-fees basis over the three-, five- and ten-year periods, respectively. The Board also discussed actions that have been taken by PIMCO to attempt to improve performance and took note of PIMCO’s plans to monitor performance going forward.

The Board considered PIMCO’s discussion of the intensive nature of managing bond funds, noting that it requires the management of a number of factors, including: varying maturities; prepayments; collateral management; counterparty management; pay-downs; credit and corporate events; workouts; derivatives; net new issuance in the bond market; and decreased market maker inventory levels. The Board noted that in addition to managing these factors, PIMCO must also balance risk controls and strategic positions in each portfolio it manages, including the Portfolios. Despite these challenges, the Board noted PIMCO’s ability to generate non-market correlated excess performance for its clients over time, including the Trust.

The Board ultimately concluded, within the context of all of its considerations in connection with the Agreements, that PIMCO’s performance record and process in managing the Portfolios indicates that its continued management is likely to benefit the Portfolios and their shareholders, and merits the approval of the renewal of the Agreements.

4. ADVISORY FEES, SUPERVISORY AND ADMINISTRATIVE FEES AND TOTAL EXPENSES

The Board considered that PIMCO seeks to price new funds and classes to scale. PIMCO reported to the Board that, in proposing fees for any Portfolio or class of shares, it considers a number of factors, including, but not limited to, the type and complexity of the services provided, the cost of providing services, the risk assumed by PIMCO in the development of products and the provision of services and the competitive marketplace for financial products. Fees charged to or proposed for different Portfolios for advisory services and supervisory and administrative services may vary in light of these various factors. The Board considered that portfolio pricing generally is not driven by comparison to passively-managed products.

In addition, PIMCO reported to the Board that it periodically reviews the fees charged to the Portfolios. The Board noted that, based upon this review, PIMCO may propose advisory fee or supervisory and administrative fee changes where (i) a Portfolio’s long-term performance warrants additional consideration; (ii) there is a notable aid to market

56 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

position; (iii) a Portfolio’s fee does not reflect the current level of supervision or administrative fees provided to the Portfolio; or (iv) PIMCO would like to change a Portfolio’s overall strategic positioning.

The Board reviewed the advisory fees, supervisory and administrative fees and total expenses of the Portfolios (each as a percentage of average net assets) and compared such amounts with the average and median fee and expense levels of other similar funds. The Board also reviewed information relating to the sub-advisory fees paid to Research Affiliates with respect to applicable Portfolios, taking into account that PIMCO compensates Research Affiliates from the advisory fees paid by such Portfolios to PIMCO. With respect to advisory fees, the Board reviewed data from Broadridge that compared the average and median advisory fees of other funds in a “Peer Group” of comparable funds, as well as the universe of other similar funds. The Board noted that a number of Portfolios have total expense ratios that fall below the average and median expense ratios in their Peer Group and Lipper universe. In addition, the Board considered fee waivers in place for certain of the Portfolios and also noted the fee waivers in place with respect to the advisory fee and supervisory and administrative fee that might result from investments by applicable Portfolios in their respective wholly-owned subsidiaries. The Board also considered that PIMCO reviews the Portfolios’ fee levels and carefully considers changes where appropriate.

The Board also reviewed data comparing the Portfolios’ advisory fees to the standard and negotiated fee rates PIMCO charges to separate accounts, collective investment trusts and sub-advised clients with similar investment strategies. In cases where the fees for other clients were lower than those charged to the Portfolios, the Trustees noted that the differences in fees were attributable to various factors, including, but not limited to, differences in the advisory and other services provided by PIMCO to the Portfolios, differences in the number or extent of the services provided by PIMCO to the Portfolios, the manner in which similar portfolios may be managed, different requirements with respect to liquidity management and the implementation of other regulatory requirements, and the fact that separate accounts may have other contractual arrangements or arrangements across PIMCO strategies that justify different levels of fees. The Board considered that, with respect to collective investment trusts, PIMCO performs fewer or less extensive services because collective investment trusts are generally exempt from SEC regulation; investors in a collective investment trust may receive shareholder services from a trustee bank, rather than PIMCO; collective investment trusts have less regulatory disclosure; and the management structure of collective investment trusts differs from that of funds. The Trustees also considered that PIMCO faces increased entrepreneurial, legal and regulatory risk in sponsoring and managing mutual funds and ETFs as compared to separate accounts, external sub-advised funds or other investment products.

Regarding advisory fees charged by PIMCO in its capacity as sub-adviser to third party/unaffiliated funds, the Trustees took into account that such fees may be lower than the fees charged by PIMCO to serve as adviser to the Portfolios. The Trustees also took into account that there are various reasons for any such differences in fees, including, but not limited to, the fact that PIMCO may be subject to varying levels of entrepreneurial risk and regulatory requirements, differing legal liabilities on a contract-by-contract basis and different servicing requirements when PIMCO does not serve as the sponsor of a fund and is not principally responsible for all aspects of a fund’s investment program and operations as compared to when PIMCO serves as investment adviser and sponsor.

The Board considered the Portfolios’ supervisory and administrative fees, comparing them to similar funds in the report supplied by Broadridge. The Board also considered that as the Portfolios’ business has become increasingly complex and the number of Portfolios has grown over time, PIMCO has provided an increasingly broad array of fund supervisory and administrative functions. In addition, the Board considered the Trust’s unified fee structure, under which the Trust pays for the supervisory and administrative services it requires for one set fee. In return for this unified fee, PIMCO provides or procures supervisory and administrative services and bears the costs of various third party services required by the Portfolios, including audit, custodial, portfolio accounting, legal, transfer agency, sub-accounting and printing costs. The Board further considered that many other funds pay for comparable services separately, and thus it is difficult to directly compare the Trust’s unified supervisory and administrative fees with the fees paid by other funds for administrative services alone. The Board also considered that the unified supervisory and administrative fee leads to Portfolio fees that are fixed over the contract period, rather than variable. The Board noted that, although the unified fee structure does not have breakpoints, it implicitly reflects economies of scale by fixing the absolute level of Portfolio fees at competitive levels over the contract period even if the Portfolios’ operating costs rise when assets remain flat or decrease. Other factors the Board considered in assessing the unified fee include PIMCO’s approach of pricing Portfolios to scale at inception and reinvesting in other important areas of the business that support the Portfolios. The Board considered that the Portfolios’ unified fee structure meant that fees were not impacted by recent outflows in certain Portfolios, unlike funds without a unified fee structure, which may see increased expense ratios when fixed costs, such as service provider costs, are passed through to a smaller asset base. The Board considered historical advisory and supervisory and administrative fee reductions implemented for different Portfolios and classes, noting that the unified fee can be increased or decreased in subsequent contractual periods and is subject to the periodic reviews discussed above. The Board noted that, with few exceptions, PIMCO

ANNUAL REPORT DECEMBER 31, 2018 57

Approval of Investment Advisory Contract and Other Agreements (Cont.)

has generally maintained Portfolio fees at the same level as implemented when the unified fee was adopted, and has reduced fees for a number of Portfolios in prior years. The Board concluded that the Portfolios’ supervisory and administrative fees were reasonable in relation to the value of the services provided, including the services provided to different classes of shareholders, and that the expenses assumed contractually by PIMCO under the Supervision and Administration Agreement represent, in effect, a cap on overall Portfolio fees during the contractual period, which is beneficial to the Portfolios and their shareholders.

The Board considered the Portfolios’ total expenses and discussed with PIMCO those Portfolios and/or classes of Portfolios that had above median total expenses. The Board noted that many of the Portfolios are unique products that have few peers, if any, and cannot easily be grouped with comparable funds. Upon comparing the Portfolios’ total expenses to other funds in the “Peer Groups” provided by Broadridge, the Board found total expenses of each Portfolio to be reasonable.

The Trustees also considered the advisory fees charged to the Portfolios that operate as funds of funds (the “Funds of Funds”) and the advisory services provided in exchange for such fees. The Trustees determined that such services were in addition to the advisory services provided to the underlying funds in which the Funds of Funds may invest and, therefore, such services were not duplicative of the advisory services provided to the underlying funds. The Board also considered the various fee waiver agreements in place for the Funds of Funds. The Board noted that PIMCO is continuing waivers for these Funds of Funds, as well as for certain other Portfolios of the Trust.

Based on the information presented by PIMCO, Research Affiliates and Broadridge, members of the Board determined, in the exercise of their business judgment, that the level of the advisory fees and supervisory and administrative fees charged by PIMCO under the Agreements, as well as the total expenses of each Portfolio, after the proposals to decrease the management fee, are reasonable.

5. ADVISER COSTS, LEVEL OF PROFITS AND ECONOMIES OF SCALE

The Board reviewed information regarding PIMCO’s costs of providing services to the Funds as a whole, as well as the resulting level of profits to PIMCO under both the adjusted asset profitability method and the profit and loss profitability method, which were each utilized to calculate profitability. To the extent applicable, the Board also reviewed information regarding the portion of a Portfolio’s advisory fee retained by PIMCO, following the payment of sub-advisory fees to Research Affiliates, with respect to the Portfolio. Additionally, the Board noted that profit margins with respect to the Trust shows that the Trust is profitable, although less so than PIMCO Funds due to payments made

by PIMCO to participating insurance companies. The Board further noted PIMCO’s engagement of a third party to review and to make recommendations regarding PIMCO’s processes supporting its profitability estimation materials. The Board also noted that it had received information regarding the structure and manner in which PIMCO’s investment professionals were compensated, and PIMCO’s view of the relationship of such compensation to the attraction and retention of quality personnel. The Board considered PIMCO’s need to invest in global infrastructure, technology capabilities, risk management processes and qualified personnel to reinforce and offer new services and to accommodate changing regulatory requirements.

With respect to potential economies of scale, the Board noted that PIMCO shares the benefits of economies of scale with the Portfolios and their shareholders in a number of ways, including investing in portfolio and trade operations management, firm technology, middle and back office support, legal and compliance, and fund administration logistics, senior management supervision, governance and oversight of those services, and through fee reductions or waivers, the pricing of Portfolios to scale from inception, and the enhancement of services provided to the Portfolios in return for fees paid. The Board reviewed the history of the Portfolios’ fee structure. The Board considered that the Portfolios’ unified fee rates had been set competitively and/or priced to scale from inception, had been held steady during the contractual period at that scaled competitive rate for most Portfolios as assets grew, or as assets declined in the case of some Portfolios, and continued to be competitive compared with peers. The Board also considered that the unified fee is a transparent means of informing a Portfolio’s shareholders of the fees associated with the Portfolio, and that the Portfolio bears certain expenses that are not covered by the advisory fee or the unified fee. The Board further considered the challenges that arise when managing large funds, which can result in certain “diseconomies” of scale and noted that PIMCO has continued to reinvest in many areas of the business to support the Portfolios.

The Trustees considered that the unified fee has provided inherent economies of scale because a Portfolio maintains competitive fixed fees over the annual contract period even if the particular Portfolio’s assets decline and/or operating costs rise. The Trustees further considered that, in contrast, breakpoints may be a proxy for charging higher fees on lower asset levels and that when a fund’s assets decline, breakpoints may reverse, which causes expense ratios to increase. The Trustees also considered that, unlike the Portfolios’ unified fee structure, funds with “pass through” administrative fee structures may experience increased expense ratios when fixed dollar fees are charged against declining fund assets. The Trustees also considered that the unified fee protects shareholders from a rise in operating costs that may result from, among other things, PIMCO’s investments in various business enhancements and infrastructure, including those referenced above. The Trustees noted that PIMCO’s investments in these areas are extensive.

58 PIMCO VARIABLE INSURANCE TRUST

(Unaudited)

The Board concluded that the Portfolios’ cost structures were reasonable and that PIMCO is appropriately sharing economies of scale, if any, through the Portfolios’ unified fee structure, generally pricing Portfolios to scale at inception and reinvesting in its business to provide enhanced and expanded services to the Portfolios and their shareholders.

6. ANCILLARY BENEFITS

The Board considered other benefits realized by PIMCO and its affiliates as a result of PIMCO’s relationship with the Trust. Such benefits may include possible ancillary benefits to PIMCO’s institutional investment management business due to the reputation and market penetration of the Trust or third party service providers’ relationship-level fee concessions, which decrease fees paid by PIMCO. The Board also considered that affiliates of PIMCO provide distribution and/or shareholder services to the Portfolios and their shareholders, for which they may be compensated through distribution and servicing fees paid pursuant to the Portfolios’ Rule 12b-1 plans or otherwise. The Board reviewed PIMCO’s soft dollar policies and procedures, noting that while PIMCO has the authority to receive the benefit of research provided by broker-dealers executing portfolio transactions on behalf of the Portfolios, it has adopted a policy not to enter into contractual soft dollar arrangements.

7. CONCLUSIONS

Based on their review, including their comprehensive consideration and evaluation of each of the broad factors and information summarized above, the Independent Trustees and the Board as a whole concluded that the nature, extent and quality of the services rendered to the Portfolios by PIMCO and Research Affiliates supported the renewal of the Agreements and the Asset Allocation Agreement. The Independent Trustees and the Board as a whole concluded that the Agreements and the Asset Allocation Agreement continued to be fair and reasonable to the Portfolios and their shareholders, that the Portfolios’ shareholders received reasonable value in return for the fees paid to PIMCO by the Portfolios under the Agreements and the fees paid to Research Affiliates by PIMCO under the Asset Allocation Agreement, and that the renewal of the Agreements and the Asset Allocation Agreement was in the best interests of the Portfolios and their shareholders.

ANNUAL REPORT DECEMBER 31, 2018 59

General Information

Investment Adviser and Administrator

Pacific Investment Management Company LLC

650 Newport Center Drive

Newport Beach, CA 92660

Distributor

PIMCO Investments LLC

1633 Broadway

New York, NY 10019

Custodian

State Street Bank and Trust Company

801 Pennsylvania Avenue

Kansas City, MO 64105

Transfer Agent

DST Asset Manager Solutions, Inc.

430 W 7th Street STE 219024

Kansas City, MO 64105-1407

Legal Counsel

Dechert LLP

1900 K Street, N.W.

Washington, D.C. 20006

Independent Registered Public Accounting Firm

PricewaterhouseCoopers LLP

1100 Walnut Street, Suite 1300

Kansas City, MO 64106

This report is submitted for the general information of the shareholders of the Portfolio listed on the Report cover.

pimco.com/pvit

PVIT18AR_123118

Item 2. Code of Ethics.

As of the end of the period covered by this report, the Registrant has adopted a code of ethics (the “Code”) that applies to the Registrant’s principal executive officer and principal financial officer. The Registrant did not grant any waivers, including implicit waivers, from any provisions of the Code to the principal executive officer or principal financial officer during the period covered by this report.

A copy of the Code is included as an exhibit to this report.

Item 3. Audit Committee Financial Expert.

The Board of Trustees has determined that Ronald C. Parker, who serves on the Board’s audit committee, qualifies as an “audit committee financial expert” as such term is defined in the instructions to this Item 3. The Board has also determined that Mr. Parker is “independent” as such term is interpreted under this Item 3.

Item 4. Principal Accountant Fees and Services.

(a)	Fiscal Year Ended	Audit Fees
	December 31, 2018	$792,218
	December 31, 2017	$803,306
(b)	Fiscal Year Ended	Audit-Related Fees(1)
	December 31, 2018	$—
	December 31, 2017	$12,000
(c)	Fiscal Year Ended	Tax Fees
	December 31, 2018	$ 4,500
	December 31, 2017	$ 4,000
(d)	Fiscal Year Ended	All Other Fees (2)
	December 31, 2018	$—
	December 31, 2017	$—

“Audit Fees” represents aggregate fees billed for each of the last two fiscal years for professional services rendered for the audit of the PIMCO Equity Series (the “Trust” or “Registrant”) annual financial statements or services that are normally provided by the accountant in connection with statutory or regulatory filings or engagements for those fiscal years.

“Audit-Related Fees” represents aggregate fees billed for each of the last two fiscal years for assurance and related services reasonably related to the performance of the audit of the Trust’s annual financial statements for those years.

“Tax Fees” represents aggregate fees billed for each of the last two fiscal years for professional services related to tax compliance, tax advice and tax planning, including review of federal and state income tax returns, review of excise tax distribution requirements and preparation of excise tax returns.

“All Other Fees” represents aggregate fees, if any, billed for other products and services rendered by the principal accountant to the Trust for the last two fiscal years.

⁽¹⁾ Includes aggregate fees billed for review of the registrant’s semi-annual reports to shareholders related to fair value securities held by the Trust.

⁽²⁾ There were no “All Other Fees” for the last two fiscal years.

(e) Pre-approval policies and procedures

(1) The Registrant’s Audit Committee has adopted pre-approval policies and procedures (the “Procedures”) to govern the Audit Committee’s pre-approval of (i) all audit services and permissible non-audit services to be provided to the Registrant by its independent accountant, and (ii) all permissible non-audit services to be provided by such independent accountant to the Registrant’s investment adviser and to any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the Registrant (collectively, the “Service Affiliates”) if the services provided directly relate to the Registrant’s operations and financial reporting. In accordance with the Procedures, the Audit Committee is responsible for the engagement of the independent accountant to certify the Registrant’s financial statements for each fiscal year. With respect to the pre-approval of non-audit services provided to the Registrant and its Service Affiliates, the Procedures provide that the Audit Committee may annually pre-approve a list of types or categories of non-audit services that may be provided to the Registrant or its Service Affiliates, or the Audit Committee may pre-approve such services on a project-by-project basis as they arise. Unless a type of service has received general pre-approval, it will require specific pre-approval by the Audit Committee if it is to be provided by the independent accountant. The Procedures also permit the Audit Committee to delegate authority to one or more of its members to pre-approve any proposed non-audit services that have not been previously pre-approved by the Audit Committee, subject to the ratification by the full Audit Committee no later than its next scheduled meeting.

(2) With respect to the services described in paragraphs (b) through (d) of this Item 4, no amount was approved by the Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) Not applicable.

(g)

	Aggregate Non-Audit Fees Billed to Entity
Entity	December 31, 2018		December 31, 2017
PIMCO Variable Insurance Trust	$	4,500	$	16,000
Pacific Investment Management Company LLC (“PIMCO”)		8,437,919		6,271,517
Totals	$	8,442,419	$	6,287,517

(h) The Registrant’s Audit Committee has considered whether the provision of non-audit services that were rendered to the Registrant’s investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the Registrant which were not pre-approved (not requiring pre-approval) is compatible with maintaining the principal accountant’s independence.

Item 5. Audit Committee of Listed Registrants.

The Registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934, as amended. The audit committee is comprised of:

George E. Borst

Jennifer Holden Dunbar

Kym Hubbard

Gary F. Kennedy

Peter B. McCarthy

Ronald C. Parker

Item 6. Schedule of Investments.

The information required by this Item 6 is included as part of the annual report to shareholders filed under Item 1 of this Form N-CSR.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable to open-end investment companies.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable to open-end investment companies.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable to open-end investment companies.

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no material changes to the procedures by which shareholders may recommend nominees to the Trust’s Board of Trustees since the Trust last provided disclosure in response to this item.

Item 11. Controls and Procedures.

(a) The principal executive officer and principal financial & accounting officer have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act) provide reasonable assurances that material information relating to the Registrant is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing of this report.

(b) There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the last fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Not applicable to open-end investment companies.

Item 13. Exhibits.

(a)(1) Exhibit 99.CODE—Code of Ethics pursuant to Section 406 of the Sarbanes-Oxley Act of 2002.

(a)(2) Exhibit 99.CERT—Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

(a)(3) Not applicable for open-end investment companies.

(a)(4) There was no change in the registrant’s independent public accountant for the period covered by the report.

(b) Exhibit 99.906CERT—Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

PIMCO Variable Insurance Trust
By:	/s/ Peter G. Strelow
	Peter G. Strelow
	President (Principal Executive Officer)
Date:	February 28, 2019

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:	/s/ Peter G. Strelow
	Peter G. Strelow
	President (Principal Executive Officer)
Date: February 28, 2019
By:	/s/ Trent W. Walker
	Trent W. Walker
	Treasurer (Principal Financial & Accounting Officer)
Date:	February 28, 2019