Enhancing MSCI EAFE returns while hedging foreign currency risk
Unlike a traditional equity index strategy, this fund provides the returns of the MSCI EAFE Index complemented by a bond portfolio designed to generate alpha, offering the potential for returns in excess of the index. In addition, and importantly, the fund hedges the impact that foreign exchange rates can have on international equity returns, providing U.S. investors international equity returns without the risk of foreign currency fluctuations.
Why Invest In This Fund
Time-tested investment strategy
This fund benefits from PIMCO’s StocksPLUS approach, an innovative solution to enhancing equity returns. Rather than obtaining equity exposure by purchasing common stocks, the fund captures the returns of the MSCI EAFE Index synthetically, allowing the manager to run a complementary bond alpha strategy with the goal of generating returns in excess of the index . PIMCO’s StocksPLUS approach has been applied to a variety of market indexes and has been tested for nearly three decades through various market environments.
Provides international equity returns while removing embedded currency risk
Foreign currency fluctuations can have a significant impact on international equity returns and volatility. This fund hedges foreign currency exposure back to U.S. dollar, providing the return potential of international companies without the impact of foreign exchange movements. Since exchange rates can be volatile, this fund offers the potential for more stable returns. Therefore, a U.S. dollar hedged portfolio can serve as a complement to unhedged international equities in an investor’s portfolio.
PIMCO has been recognized multiple times by Lipper as Best Group Large Equity for the time-tested and consistently strong risk-adjusted performance of our StocksPLUS strategies.
PIMCO helped pioneer the innovative 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. Today, we manage “PLUS” portfolios across a range of objectives and market exposures.
MSCI EAFE Hedged USD Index
PRIMARY BENCHMARK DESCRIPTION
MSCI EAFE Hedged USD Index is an unmanaged index of issuers in countries of Europe, Australia, and the Far East represented in U.S. Dollars on a hedged basis. It is not possible to invest directly in the index.
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