RAE Fundamental Advantage PLUS Fund

PFATX

Updated September 30, 2020

Objective

Seeks maximum total return, consistent with prudent investment management

Primary Portfolio

Derivatives providing long exposure to the RAE Fundamental US Large portfolio hedged by short exposure to the S&P 500 Index, backed by an actively managed portfolio of fixed income securities with an absolute return orientation

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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 3 Month USD LIBOR.

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 introduced the groundbreaking StocksPLUSstrategy in 1986 - the same award-winning approachused across our “PLUS” portfolios - which capitalizeson the depth and breadth of PIMCO’s global resources.PIMCO has partnered with Research Affiliates to deliversystematic equity strategies since 2005. Today, wemanage RAE “PLUS” portfolios across a range ofobjectives and market exposures.

PRIMARY BENCHMARK

3 Month USD LIBOR

PRIMARY BENCHMARK DESCRIPTION

The 3 Month USD LIBOR (London Interbank Offered Rate) 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 in an unmanaged index.

SECONDARY BENCHMARK

RAE Fundamental US Large

SECONDARY BENCHMARK DESCRIPTION

The RAE Fundamental US Large portfolio contains stocks of large U.S.-listed companies weighted by the Fundamental Index® methodology with additional factors (e.g., quality of earnings , economic profitability, momentum etc.).

DIVIDEND FREQUENCY

Quarterly

SHARE CLASS INCEPTION

02/29/2008

CUSIP

72201F110

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