RAE PLUS Fund

PXTIX

Updated April 22, 2019

Objective

Seeks total return which exceeds that of its benchmark

Primary Portfolio

Equity exposure of the RAE US 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 U.S. equity investing

The fund invests in a diversified portfolio that captures the returns of U.S. stocks using the Research Affiliates Equity (RAE) 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

Systematically capitalizes on market inefficiencies

RAE selects and weights U.S. 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 actively managed bond alpha strategy.

Award-winning equity performance

The fund benefits from exposure to the proprietary RAE strategy and PIMCO’s time-tested approach to managing “PLUS” strategies, whereby the fund invests in equity linked instruments alongside a complementary alpha-generating bond portfolio. PIMCO has been recognized by Lipper as Best Group Large Equity multiple times for the consistently strong risk-adjusted performance of its equity “PLUS” strategies.

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 to deliver systematic equity strategies since 2005. Today, we manage RAE “PLUS” portfolios across a range of objectives and market exposures.

PRIMARY BENCHMARK

Russell 1000® Value Index

PRIMARY BENCHMARK DESCRIPTION

The Russell 1000® Value Index measures the performance of large and midcapitalization value sectors of the U.S. equity market, as defined by FTSE Russell. The Russell 1000® Value Index is a subset of the Russell 1000® Index, which measures the performance of the large and mid-capitalization sector of the U.S. equity market.

SECONDARY BENCHMARK

S&P 500 Index

SECONDARY 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.

DIVIDEND FREQUENCY

Quarterly

SHARE CLASS INCEPTION

06/30/2005

CUSIP

72201F854

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