RAE International Fund

PPYIX

Updated January 15, 2021

Objective

The Fund seeks long-term capital appreciation.

Primary Portfolio

Equity and equity-related securities that are economically tied to foreign (non-U.S.) countries

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Overview

Fund Overview

Time-tested systematic approach to international value investing

The fund invests in a diversified portfolio of international stocks using the Research Affiliates Equity (RAE) strategy, an innovative value approach designed to outperform the MSCI EAFE 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 deliver equity strategies since 2005

PRIMARY BENCHMARK

MSCI EAFE Value Index

PRIMARY BENCHMARK DESCRIPTION

The MSCI EAFE Value Index captures large and mid-cap securities exhibiting overall value style characteristics across developed markets countries around the world, excluding the US and Canada. The value investment style characteristics for index construction of the MSCI EAFE Value Index are defined using three variables: book value to price, 12-month forward earnings to price and dividend yield.

SECONDARY BENCHMARK

MSCI EAFE Index

SECONDARY BENCHMARK DESCRIPTION

MSCI EAFE Index is an unmanaged index designed to represent the performance of large and mid-cap securities across 21 developed markets, including countries in Europe, Australasia and the Far East, excluding the U.S. and Canada. It is not possible to invest directly in the index.

DIVIDEND FREQUENCY

Annually

SHARE CLASS INCEPTION

06/05/2015

CUSIP

72202L512

RELATED

Managers

Robert Arnott

Founder and Chairman, Research Affiliates

View Profile for Robert Arnott

Chris Brightman

Chief Investment Officer, Research Affiliates

View Profile for Chris Brightman

Yields & Distributions

Historical Prices & Distributions

Distribution Yield (At Nav) 1 as of 01/01/2020 4.17%
1 - Day Distribution Yield as of 01/15/2021 -
30-Day SEC Yield as of 12/31/2020 2.09%
Latest Dividend Distribution ($ Share)2 as of 12/28/2020 $0.22682
Dividend Distribution (YTD) 3 as of 12/28/2020 $0.22682

disclosures

1The 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 of the last business day of the quarter. 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.
2Data does not include special cash dividends.
3Data is based on distributions since the most recent calendar year end and does not include special cash dividends.
The 30 day SEC Yield is computed under an SEC standardized formula based on net income earned over the past 30 days.

Fees & Expenses

Effective as of 11/01/2020
Gross Expense Ratio 0.52%
Net Expense Ratio 0.51%
The Net Expense Ratio reflects a contractual fee waiver and/or expense reduction, which is in place through 10/31/2021 and renews automatically for a full year unless terminated by PIMCO in accordance with the terms of the agreement. See the Fund's prospectus for more information.
Adjusted Expense Ratio 0.50%
The Adjusted Expense Ratio is the same as the Net Expense Ratio, but also excludes certain investment expenses, such as interest expense from borrowings and repurchase agreements and dividend expense from investments on short sales, incurred directly by the Fund or indirectly through the Fund’s investments in underlying PIMCO Funds (if applicable), none of which are paid to PIMCO.

Prices & Performance

locked

Daily Statistics

All data as of 01/15/2021

NAV $10.31 One Day Return -1.72%
Daily Change $-0.18 Daily YTD Return 3.62%

All data as of

All data as of

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.

There is no assurance that any fund, including any fund that 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) a fund’s total return in excess of that of the fund’s benchmark between reporting periods or 2) a fund’s total return in excess of the fund’s historical returns between reporting periods. Unusual performance is defined as a significant change in a fund’s performance as compared to one or more previous reporting periods.

Calendar Year Returns %

All data as of

Growth of $10,000 (hypothetical)

Morningstar and Lipper

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.
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.
A rating is not a recommendation to buy, sell or hold a fund. © 2020 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (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. The Morningstar RatingTM for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product 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 for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Past performance is no guarantee of future results.
The Lipper Average and Rankings are calculated by Lipper, Inc, based on the total return performance of funds included by Lipper in that category. Rankings begin with the inception of the actual share class. Lipper does not take into account sales charges.

The Lipper Fund Awards, granted annually, highlight funds and fund companies that have excelled in delivering consistently strong risk-adjusted performance relative to their peers.

The Lipper Fund Awards are based on the Lipper Leader for Consistent Return rating, which is a risk-adjusted performance measure calculated over 36, 60 and 120 months. The fund with the highest Lipper Leader for Consistent Return (Effective Return) value in each eligible classification wins the Lipper Fund Award. For more information, see lipperfundawards.com. Although Lipper makes reasonable efforts to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Lipper.

Portfolio Composition

All data as of unless otherwise stated

Top Countries Market Value %

Japan 26.99
Germany 11.75
United Kingdom 8.97
Australia 8.46
France 8.04
Switzerland 6.53
Canada 4.88
Netherlands 3.80
Luxembourg 3.33
Italy 2.92

Top GICS Sectors
Market Value %

Financials 17.78
Consumer Discretionary 15.12
Materials 14.83
Industrials 14.82
Information Technology 7.23
Utilities 6.71
Consumer Staples 6.22
Communication Services 6.09
Health Care 5.92
Energy 3.32

Equity Statistics

Stocks in Portfolio 628
P/E Ratio (Forward) 15.08
Weighted Median Market Cap ($US MM) 17,520.51
P/E Ratio (Trailing) 16.96
Weighted Avg Market Cap ($US MM) 36,251.93

Top Holdings Market Value %

(as of 12/31/2020)

Arcelormittal Sa 3.23
Panasonic Corporation 2.12
Deutsche Lufthansa Ag 1.94
Hitachi Ltd 1.86
Rio Tinto Plc 1.77
Magna International Inc 1.45
Royal Dutch Shell Plc 1.44
Covestro Ag 1.27
Deutsche Bank Ag 1.15
Valeo Sa 1.15

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. Investing in foreign-denominated and/or -domiciled securities may involve heightened risk due to currency fluctuations, and economic and political risks, which may be enhanced in emerging markets. Currency rates may fluctuate significantly over short periods of time and may reduce the returns of a portfolio. REITs are subject to risk, such as poor performance by the manager, adverse changes to tax laws or failure to qualify for tax-free pass-through of income. Model Risk is the risk that the Fund’s investment models used in making investment allocation decisions may not adequately take into account certain factors and may result in a decline in the value of an investment in the Fund. 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 invest 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.
PIMCO as a general matter provides services to qualified institutions, financial intermediaries and institutional investors. Individual investors should contact their own financial professional to determine the most appropriate investment options for their financial situation. This material contains the current opinions of the manager and such opinions are subject to change without notice. This material has been distributed for informational purposes only. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. PIMCO is a trademark of Allianz Asset Management of America L.P. in the United States and throughout the world. ©2020, PIMCO
PIMCO Investments LLC, distributor, 1633 Broadway, New York, NY 10019, is a company of PIMCO.