RAE PLUS EMG Fund

PEFIX

Updated September 30, 2020

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.

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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 MSCI Emerging Markets 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 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

MSCI Emerging Markets Value Index

PRIMARY BENCHMARK DESCRIPTION

The MSCI Emerging Markets Value Index captures large and mid-cap securities exhibiting overall value style characteristics across a group of emerging markets countries. The value investment style characteristics for index construction of the MSCI Emerging Markets Value Index are defined using three variables: book value to price, 12-month forward earnings to price and dividend yield.

SECONDARY BENCHMARK

MSCI Emerging Markets Index

SECONDARY 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

Quarterly

SHARE CLASS INCEPTION

11/26/2008

CUSIP

72201M131

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