RAE PLUS EMG Fund

PEFPX

Updated April 18, 2019

Objective

Seeks total return which exceeds that of its benchmark

Primary Portfolio

Equity exposure of the RAE Emerging Markets portfolio is obtained using equity-linked instruments, allowing the fund to generate additional returns from a flexible bond alpha strategy.

Overview

Fund Overview

Time-tested, systematic approach to emerging market equity investing

The fund invests in a diversified portfolio that captures the returns of emerging market (EM) stocks using the Research Affiliates Equity (RAE) investment strategy - a systematic approach designed to outperform the MSCI Emerging Markets Index - plus an additional source of return potential.

Why Invest In This Fund

Systematically capitalizes on market inefficiencies

RAE selects and weights emerging market stocks based on non-price measures of company size including sales, cash flow, dividends and book value. The strategy then refines these weights by incorporating active insights into quality, momentum, style and size with the goal of further enhancing returns. By removing price from the portfolio construction process, this value fund aims to buy low and sell high, outperforming cap-weighted indexes over time

Offers two independent sources of potential excess returns

The fund’s unique rules-based approach to value investing seeks to outperform using a diversified, economically representative equity strategy. The fund provides an additional source of excess return potential by employing PIMCO’s “PLUS” implementation to equity investing. Using equity-linked instruments to gain equity exposure, the fund aims to generate additional returns from an activ