RAE PLUS Small Fund

PCFIX

Updated June 24, 2019

Objective

Seeks total return which exceeds that of its benchmark

Primary Portfolio

Equity exposure of RAE US Small 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. 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.

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 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.

SECONDARY BENCHMARK

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.

DIVIDEND FREQUENCY

Quarterly

SHARE CLASS INCEPTION

09/30/2011

CUSIP

72201W675

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