RAE Low Volatility PLUS Fund

PILVX

Updated April 18, 2019

Objective

Seeks total return which exceeds that of its benchmark

Primary Portfolio

An equity strategy that uses RAE Low Volatility US portfolio derivatives backed by an actively managed portfolio of fixed income securities with an absolute return orientation

Overview

Fund Overview

Systematic, low-volatility approach to U.S. equity investing

The fund invests in a diversified portfolio that seeks to capture the returns of less volatile and potentially higher yielding U.S. stocks, using the Research Affiliates Equity (RAE) Low Volatility investment strategy, a systematic approach designed to outperform the S&P 500 Index, plus an additional source of return potential.

Why Invest In This Fund

Offers benefits of low volatility investing while being conscious of valuations

Proprietary screens that emphasize lower volatility stocks with higher yields and strong financial health are applied to each sector of the U.S. market. Going beyond simple volatility screens, the fund’s value orientation and focus on diversification may help investors avoid owning expensive low volatility stocks. The RAE methodology then weights stocks based on non-price measures of company size including sales, cash flow, dividends and book value

U.S. equity investing with the potential for a smoother ride

Investors may experience periods of high volatility when investing in the stock market, yet most accept that risk in exchange for the long-term capital appreciation potential of U.S. stocks. A key tenet of the fund’s risk-oriented approach is to manage shortterm risk with respect to volatility.

Offers additional sources of potential returns

The fund provides an additional source of alpha potential by employing PIMCO’s “PLUS” implementation to equity investing. Because the fund uses equity-linked instruments, which do not require the same cash outlay as physical stocks, it seeks to generate incremental return by investing the remaining cash in an actively managed bond alpha strategy

Our Expertise

PIMCO introduced the groundbreaking StocksPLUS strategy in 1986 - the same award-winning approach used across our “PLUS” portfolios, which capitalizes on the depth and breadth of PIMCO’s global resources. PIMCO has partnered with Research Affiliates since 2005, when they introduced fundamental indexes to the marketplace. Today, we manage RAE “PLUS” portfolios across a range of objectives and market exposures.

PRIMARY BENCHMARK

S&P 500 Index

PRIMARY BENCHMARK DESCRIPTION

S&P 500 Index is an unmanaged market index generally considered representative of the stock market as a whole. The Index focuses on the large-cap segment of the U.S. equities market. It is not possible to invest directly in an unmanaged index.

SECONDARY BENCHMARK

RAE Low Volatility US

SECONDARY BENCHMARK DESCRIPTION

The RAE Low Volatility US portfolio contains stocks of large U.S.-listed companies ranked by the Fundamental Index® methodology and further screened by a composite score of yield, volatility, and leverage. Companies are weighted by the product of the fundamental score of each company and a factor that reduces the weight for higher beta companies (and increases those for lower beta companies). The portfolio is rebalanced on a monthly staggered basis.

DIVIDEND FREQUENCY

Quarterly

SHARE CLASS INCEPTION

12/30/2013

CUSIP

72201U331

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