StocksPLUS® Small Fund


Updated July 10, 2020


Seeks total return which exceeds that of the Russell 2000® Index

Primary Portfolio

Russell 2000 Index derivatives backed by an actively managed portfolio of fixed income securities with an absolute return orientation



Fund Overview

An innovative solution to enhancing small cap equity returns

The Lipper-award-winning strategy provides access to the Russell 2000 Index and then complements that exposure with a bond portfolio designed to generate alpha, offering a solution for a small cap allocations with the potential for returns in excess of the index.

Why Invest In This Fund

Offers the benefits of traditional passive and active investing

Traditional index funds aim to match the performance of a market index by investing in all, or a representative sample, of the stocks in the index. This fund goes further, providing the returns of the Russell 2000 Index, while also offering the potential for outperformance.

Potential to capitalize on market inefficiencies

The fund captures the returns of the Russell 2000 Index by investing in Russell 2000 futures contracts. Russell 2000 futures are unique in that they have historically traded below fair value, a discount that is not typically observed in other equity futures contracts. By investing in Russell 2000 futures contracts the fund offers the potential to access an additional potential source of return.

Small cap alpha potential without capacity constraints

Small cap is a capacity-constrained market segment, where the top performing active funds are often closed to new investments. The fund gains small cap exposure through the large and liquid Russell 2000 futures market, providing ample capacity without sacrificing the potential for alpha.

Our Expertise

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 portfolios across a range of objectives. .


Russell 2000® Index


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.








Most international equity strategies are unhedged, which generally benefits U.S. investors in periods of dollar weakness but creates a headwind for returns when the dollar is strengthening.

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Mohsen Fahmi

Portfolio Manager, Global Fixed Income

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Bryan Tsu

Portfolio Manager, CMBS and CLO

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Jing Yang

Portfolio Manager, Structured Credit

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