A differentiated approach to asset allocation targeting strong after-inflation returns
By focusing on out of mainstream asset classes and a value-oriented, contrarian investment process, this fund may help investors enhance their long-term return potential while also improving portfolio diversification, reducing volatility and adding an explicit inflation buffer.
Why Invest In This Fund
Long-term return potential
By emphasizing assets that are fundamentally attractive and shifting away from popular asset classes when they are overvalued, the fund is managed in an effort to achieve high real returns (returns above inflation), consistent with its secondary benchmark of CPI +6.5% over a full market cycle.
Diversification from traditional stocks and bonds
The fund’s access to a global opportunity set may help it achieve its long-term return goals with more attractive diversification characteristics and reduced loss potential than portfolios which rely on mainstream stocks to drive portfolio growth. These diversifying characteristics may be enhanced through the use of modest leverage and shorting, to amplify or reduce targeted portfolio exposures.
The strategy seeks to combat the effects of inflation through its focus on diversifying “satellite” investments including emerging market bonds and stocks, alternative investments and inflation-related assets which can have a greater responsiveness to rising inflation than mainstream stocks and bonds.
PIMCO All Asset All Authority Fund delivers two levels of expert management. Asset allocations decisions are managed by its subadvisor, Research Affiliates, LLC, a leading tactical asset allocation firm founded by Robert Arnott. The underlying funds are managed by PIMCO and benefit from our extensive global resources and time-tested investment process.
Bloomberg Barclays U.S. TIPS Index
PRIMARY BENCHMARK DESCRIPTION
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.
Consumer Price Index + 650 Basis Points
SECONDARY BENCHMARK DESCRIPTION
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.
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