RAE Worldwide Fundamental Advantage PLUS Strategy

Strategy Overview

A unique global equity market-neutral strategy

Striving to provide attractive returns and diversification with modest volatility, the strategy seeks positive performance in a variety of market environments by combining two complementary sources of portfolio return potential.


A word about risk:In managing the strategy’s investments in Fixed Income Instruments, PIMCO utilizes an absolute return approach; the absolute return approach does not applyto the equity index replicating component of the strategy. Investing in foreign denominated and/or domiciled securities may involveheightened risk due to currency fluctuations, and economic and political risks, which may be enhanced in emerging markets. Investing in the bond market is subject to certain risks including market, interest-rate, issuer, credit, and inflation risk; investments may be worth moreor less than the original cost when redeemed. Mortgage and asset-backed securities may be sensitive to changes in interest rates, subjectto early repayment risk, and their value may fluctuate in response to the market’s perception of issuer creditworthiness; while generally supported by someform of government or private guarantee there is no assurance that private guarantors will meet their obligations. High-yield,lower-rated, securities involve greater risk than higher-rated securities; portfolios that invest in them may be subject to greater levels of credit andliquidity risk than portfolios that do not. Equities may decline in value due to both real and perceived general market, economic, andindustry conditions. Investing in securities of smaller companies tends to be more volatile and less liquid than investing in securitiesof larger companies. Derivatives may involve certain costs and risks such as liquidity, interest rate, market, credit, management and therisk that a position could not be closed when most advantageous. Investing in derivatives could lose more than the amount invested. Diversification doesnot ensure against loss.