RAE Emerging Markets Fund

PEIFX

Updated September 18, 2020

Objective

The Fund seeks long-term capital appreciation.

Primary Portfolio

Equity and equity-related securities that are economically tied to emerging market countries

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Overview

Fund Overview

Time-tested systematic approach to U.S. value investing

The fund invests in a diversified portfolio of U.S. stocks using the Research Affiliates Equity (RAE) strategy, an innovative value approach designed to outperform the MSCI Emerging Markets Value Index.

Why Invest In This Fund

Captures robust sources of excess returns

RAE is a systematic strategy that selects undervalued stocks using valuation metrics designed by Research Affiliates, while also incorporating quality and momentum signals to improve performance. The RAE strategy combines several well-researched measures of each signal to achieve higher returns over time.

Capitalizes on market inefficiencies

Selected stocks are weighted based on fundamental measures of company size such as sales, cash flows, dividends and book value. This weighting methodology allows the fund to capitalize on market inefficiencies by systematically buying low and selling high and benefit from long-term mean reversion in stock prices.

Offers the benefits of investing systematic equity strategy

The fund’s unique rules-based approach seeks a consistent investment process and a contrarian portfolio designed to deliver market outperformance.

Our Expertise

PIMCO has partnered with Research Affiliates to deliverequity strategies since 2005.

PRIMARY BENCHMARK

MSCI Emerging Markets Value Index

PRIMARY BENCHMARK DESCRIPTION

The MSCI Emerging Markets Value Index captures large and mid-cap securities exhibiting overall value style characteristics across a group of emerging markets countries. The value investment style characteristics for index construction of the MSCI Emerging Markets Value Index are defined using three variables: book value to price, 12-month forward earnings to price and dividend yield.

SECONDARY BENCHMARK

MSCI Emerging Markets Index

SECONDARY BENCHMARK DESCRIPTION

The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets. It is not possible to invest directly in the index.

DIVIDEND FREQUENCY

Annually

SHARE CLASS INCEPTION

06/05/2015

CUSIP

72202L645

RELATED

In emerging market equities, we see reasons to focus on value stocks and areas with attractive valuations.

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Managers

Robert Arnott

Founder and Chairman, Research Affiliates

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Chris Brightman

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Yields & Distributions