Time-tested systematic approach to U.S. small value investing
The fund invests in a diversified portfolio of U.S. small stocks using the Research Affiliates Equity (RAE) strategy, an innovative value approach designed to outperform the Russell 2000 Value Index.
Why Invest In This Fund
Capitalizes on market inefficiencies
RAE selects and weights stocks based on fundamental measures of company size including sales, cash flow, dividends, and book value. By removing price from the portfolio construction process, this value fund aims to buy low and sell high, and to outperform its benchmark over time.
Enhanced by active insights
Starting with fundamental weighting, the strategy then refines these weights by incorporating active insights into quality, momentum, style and size with the goal of further enhancing returns. These insights continually evolve based on the ongoing research of the portfolio managers.
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.
PIMCO has partnered with Research Affiliates to deliver
equity strategies since 2005.
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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