Time-tested, systematic approach to U.S. small company equity investing
The fund invests in a diversified portfolio that captures the returns of small U.S. companies using the Research Affiliates Equity (RAE) investment strategy – a systematic approach designed to outperform the Russell 2000 Value Index – plus an additional source of return potential.
Why Invest In This Fund
Systematically capitalizes on market inefficiencies
RAE selects and weights small U.S. companies 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.
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.
Russell 2000® Value Index
PRIMARY BENCHMARK DESCRIPTION
The Russell 2000® Value Index measures the performance of the small-capitalization value sector of the U.S. equity market, as defined by FTSE Russell. The Russell 2000® Value Index is a subset of the Russell 2000® Index.
Russell 2000® Index
SECONDARY BENCHMARK DESCRIPTION
Russell 2000® Index is composed of 2,000 of the smallest companies in the Russell 3000 Index and is considered to be representative of the small cap market in general. It is not possible to invest directly in an unmanaged index.
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