RAE Fundamental Emerging Markets Fund

PEIFX

Updated April 24, 2017

Objective

The Fund seeks long-term capital appreciation.

Primary Portfolio

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

Overview

Fund Overview

Time-tested systematic approach to emerging markets equity investing

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

Why Invest In This Fund

Capitalizes on market inefficiencies

RAE Fundamental selects and weights stocks based on non-price measures of company size including sales, cash flow, dividends, and book value. By removing price from the portfolio construction process, the fund aims to buy low and sell high, outperforming cap-weighted indexes over time.

Enhanced by active insights

Starting with fundamental weighting, the strategy then refines these weights by incorporating active insights into quality, momentum, style and size with the goal of further enhancing returns. These insights continually evolve based on the ongoing research of the portfolio managers.

Offers the benefits of traditional passive and active equity investing

The fund’s unique investment approach gives it the ability to retain key attributes of passive investing, including low turnover and broad economic representation, while also seeking to deliver market outperformance.

Our Expertise

PIMCO has partnered with Research Affiliates to deliver smart beta solutions since 2005.

PRIMARY BENCHMARK

MSCI Emerging Markets Index

PRIMARY 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

Managers

Robert Arnott

Founder and Chairman, Research Affiliates

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Christopher Brightman

Chief Investment Officer, Research Affiliates

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Yields & Distributions

Historical Prices & Distributions

Distribution Yield (At Nav) 3 as of 12/31/2016 2.80%
30 - Day SEC Yield4 as of 03/31/2017 1.62%
30 - Day SEC Yield4 as of 04/24/2017 -
30 - Day SEC Yield (Unsubsidized)5 as of 03/31/2017 1.43%
Latest Dividend Distribution ($ Share)1 as of 12/28/2016 $0.26861
Dividend Distribution (YTD) 2 as of 12/28/2016 $0.26861
Yields & Distributions Footnotes & Disclosures

disclosures

1Data does not include special cash dividends.
2Data is based on distributions since the most recent calendar year end and does not include special cash dividends.
3The distribution yield for monthly paying Funds is calculated by annualizing actual dividends distributed for the monthly period ended on the date shown and dividing by the net asset value on the last business day for the same period. The distribution yield for quarterly paying Funds is calculated by taking the average of the prior four quarterly distribution yields. The quarterly distribution yields are calculated by annualizing actual dividends distributed for the quarterly period ended on the most recent quarterly distribution date and dividing by the net asset value for the same date. The distribution yield for annual paying Funds is calculated by taking the annual distribution divided by the Fund’s net asset value on ex-date. The yield is annualized if the Fund incepted less than a year ago. The yield does not include long- or short-term capital gains distributions.
4The 30-Day SEC yield is an annualized yield based on the most recent 30 day period.
5Does not include fee waivers and/or reimbursements.
Unless stated, the Fund does not have an unsubsidized yield.

Fees & Expenses

Total Annual Operating Expenses 0.95%
Net Operating Expenses6 0.75%
Fees & Expenses Footnotes & Disclosures

disclosures

6The net expense ratio reflects a contractual expense reduction agreement through 31 October 2017.

Prices & Performance

Daily Statistics

All data as of 04/24/2017

NAV $10.80 One Day Return 1.60%
Daily Change $0.17 Daily YTD Return 11.57%
Click here to view Historical Prices
  • Average Annual Returns
  • Cumulative Returns

All data as of

  • Daily
  • Month End
  • Quarter End

All data as of

  • Daily
  • Month End
  • Quarter End
Performance quoted represents past performance and is not a guarantee or a reliable indicator of future results. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. Current performance may be lower or higher than average annual returns shown. Performance quoted does not reflect any sales charges, if applicable, and performance would be lower if it did.

Differences in the Fund’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 pricing methodologies used by the Fund and the index.

No assurance is being made that any fund that may have experienced high or unusual performance for one or more periods will continue to experience such performance. High performance is defined as an unusual growth in alpha between reporting periods or total return when measured to historical returns. Unusual performance is defined as an unusual change in performance (+/-) between reporting periods and the portfolio experienced unusual performance for one or more periods.

Calendar Year Returns %

All data as of

Growth of $10,000 (hypothetical)

Morningstar and Lipper

  • Morningstar Ratings
  • Lipper Rankings
Prices & Performance Footnotes & Disclosures

disclosures

Performance figures presented reflect the total return performance after fees and reflect changes in share price and reinvestment of dividend and capital gain distributions on the payable date. All periods longer than one year are annualized.
This portfolio experienced high or unusual performance for one or more periods. High performance is defined as an unusual growth in alpha between reporting periods or total return when measured to historical returns. Unusual performance is defined as an unusual change in performance (+/-) between reporting periods and the portfolio experienced unusual performance for one or more periods. No assurance is being made that this favorable market activity will be repeated.

The PIMCO RAE Fundamental Emerging Markets Fund was a privately offered fund managed by the Fund’s Sub-Adviser was reorganized into the Fund as of 5 June 2015. For periods prior to the commencement of Fund operations, the Fund’s performance is that of the privately offered fund. The performance of the privately offered fund has not been restated to reflect the fees, estimated expenses and fee waivers and/or expense limitations applicable to each class of shares of the Fund. If the performance of the privately offered fund had been restated to reflect the applicable fees and expenses of each share class of the Fund, the performance may have been higher or lower. The privately offered fund began operations on 31 May 2006 and, on 5 June 2015, was reorganized into the Fund. Prior to the reorganization, the privately offered fund had an investment objective and investment strategies that were, in all material respects, the same as those of the Fund, and was managed in a manner that, in all material respects, complied with the investment guidelines and restrictions of the Fund. However, the privately offered fund was not registered as an investment company under the Investment Company Act of 1940 and was not subject to its requirements or requirements imposed by the Internal Revenue Code of 1986 which, if applicable, may have adversely affected its performance. The performance of each class of shares of the Fund will differ as a result of the different levels of fees and expenses applicable to each class of shares.
Daily YTD return is from the most recent calendar year end.
Growth of $10,000 is calculated at NAV and assumes that all dividend and capital gain distributions were reinvested. It does not take into account sales charges or the effect of taxes. Results are not indicative of future performance.
Past performance is not a guarantee or a reliable indicator of future results. For funds with at least a 3-yr history, Morningstar calculates a Morningstar Rating based on a risk-adjusted return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges, loads and redemption fees) with an emphasis on downward variations and consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. The Overall Morningstar Rating is a weighted average of the performance figures for its 3-, 5- and 10-yr (if applicable) Morningstar Rating metrics. Morningstar, Inc.® 2017. All rights reserved. The information contained herein; (1) is proprietary to Morningstar and/or its affiliates; (2) may not be copied or distributed; (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Hollow stars represent a class of shares with inception dates that is different than the inception date of the fund. For the period prior to the inception date of these shares, performance information is based on the performance of the fund’s Institutional Class shares, adjusted to reflect the actual distribution and/or service (12b-1) fees and other expenses paid by the newer share class.
The Lipper Category returns and rankings are calculated by Lipper Inc., a Reuters Company, which is a nationally recognized organization that compares the performance of mutual funds with similar investment objectives. The Category returns represent the average performance of included funds, while rankings compare an individual fund's returns to those of the other funds in its category. Both are based on total return performance, with capital gains and dividends reinvested, with annual operating expenses deducted, but without including front- or back-end sales charges. Rankings begin with the actual share class inception. Rankings are relative to a peer group and do not necessarily mean that the fund had high total returns.

Portfolio Composition

All data as of unless otherwise stated

Top Countries Market Value %

Brazil 19.95
China 19.16
South Korea 15.85
Russia 11.12
Taiwan 8.03
India 7.20
South Africa 6.04
Poland 2.64
Thailand 2.35
Turkey 1.65

Top GICS Sectors
Market Value %

Financials 28.09
Materials 17.32
Energy 14.98
Information Technology 9.31
Utilities 6.98
Telecommunication Services 6.60
Industrials 5.16
Consumer Discretionary 4.79
Consumer Staples 3.26
Real Estate 2.48

Equity Statistics

Stocks in Portfolio 514
P/E Ratio (Forward) 8.65
Median Market Cap ($US MM) 6,976.57
P/E Ratio (Trailing) 10.06
Weighted Avg Market Cap ($US MM) 20,904.15

Top Holdings Market Value %

(as of 3/31/2017)

Samsung Electronics Co Ltd 3.70
Vale Sa 3.70
China Construction Bank Corporation 2.98
Petrobras (Petroleo Brasileiro Sa) 2.13
Gazprom Pao (Aka: Gazprom Oao) 2.10
Banco Do Brasil Sa 1.96
Industrial & Commercial Bank Of China Ltd (Icbc) 1.92
Pjsc Lukoil (Aka: Lukoil Oao) 1.86
Itau Unibanco Holding Sa 1.69
Bank Of China Limited 1.54
Portfolio Composition Footnotes & Disclosures

disclosures

Portfolio information in the charts is based on the fund's net assets. These percentages may differ from those used for the fund's compliance calculations, including the fund's prospectus, regulatory, and other investment limitations and policies, which may be based on total assets of the fund or other measurements, may include or exclude various categories of investments from those covered in the portfolio allocation categories shown in this report, and may be based on different classifications and measurements of the fund’s investments and other criteria.
References to specific sectors, securities or issuers are for illustrative purposes only. All holdings are subject to change daily. All share classes have the same portfolio but different expenses.
Holdings are subject to change. The Fund's Top Ten Holdings solely reflect long positions. Securities sold short, derivatives, cash and cash equivalents are not taken into consideration. Long positions for debt (excluding cash equivalents, which generally mean investment grade debt instruments with durations of one year or less) and equity are calculated separately, and in each case, total equity holdings or total debt holdings of an issuer may be aggregated into separate line items. Other than the Fund's initial Top Ten Holdings report, newly initiated holdings will be withheld for the first 60 days unless the issuer has been previously disclosed in an annual-, semi-annual report or reported to the SEC on Form N-Q. Top Ten Holdings generally are shown as of the last day of each month (with a 10 business day delay) but may be delayed provided it is in the best interest of the Fund.

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Disclosures

Investors should consider the investment objectives, risks, charges and expenses of the funds carefully before investing. This and other information are contained in the fund’s prospectus and summary prospectus, if available, which may be obtained by contacting your investment professional or PIMCO representative.  Please read them carefully before you invest or send money.
A word about risk:

Equities may decline in value due to both real and perceived general market, economic and industry conditions. Investments in value securities involve the risk the market’s value assessment may differ from the manager and the performance of the securities may decline. Derivatives may involve certain costs and risks, such as liquidity, interest rate, market, credit, management and the risk that a position could not be closed when most advantageous. Investing in derivatives could lose more than the amount invested. The Fund is non-diversified, which means that it may concentrate its assets in a smaller number of issuers than a diversified fund.
Investments made by a Fund and the results achieved by a Fund are not expected to be the same as those made by any other PIMCO-advised Fund, including those with a similar name, investment objective or policies. A new or smaller Fund’s performance may not represent how the Fund is expected to or may perform in the long-term. New Funds have limited operating histories for investors to evaluate and new and smaller Funds may not attract sufficient assets to achieve investment and trading efficiencies. A Fund may be forced to sell a comparatively large portion of its portfolio to meet significant shareholder redemptions for cash, or hold a comparatively large portion of its portfolio in cash due to significant share purchases for cash, in each case when the Fund otherwise would not seek to do so, which may adversely affect performance.
This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission.
PIMCO Investments LLC, distributor, 1633 Broadway, New York, NY 10019, is a company of PIMCO.