NEWPORT BEACH, California (January 8, 2015) – PIMCO, a leading global investment management firm, and Research Affiliates LLC, a global leader in asset
allocation strategies and a pioneer in "smart beta" solutions, are extending their longstanding relationship to include a global range of seven additional
The collaboration builds on an almost decade-long equity management relationship between the two firms, representing $30 billion in equity assets under
management (as of September 30, 2014) in the PIMCO Fundamental IndexPLUS AR range of strategies.
The seven strategies select stocks using Research Affiliates' pioneering RAFI Fundamental Index® methodology, which picks and weights securities based on
fundamental measures of company size rather than security price, and then refine weights using additional measures and processes designed to enhance
Rob Arnott, Chairman and Chief Executive Officer of Research Affiliates commented: "PIMCO was the first to adopt our Fundamental Index methodology in
mid-2005, so this arrangement is a natural evolution of our longstanding relationship.” Mr. Arnott added: "By combining our proprietary product design with
PIMCO's outstanding client service and investment tools, we can better serve our investors who seek innovative and time-tested investment strategies backed
by outstanding client support."
Said PIMCO's Chief Executive Officer Douglas Hodge: "The expansion of PIMCO's and Research Affiliates relationship to these seven equities strategies
increases the range of equity solutions we offer clients incorporating Research Affiliates' innovative approach." Mr. Hodge added: "For more than a decade,
PIMCO and Research Affiliates have worked together to provide investment solutions based on a shared vision to help investors navigate complex, challenging
and fast-changing global markets."
PIMCO’s Fundamental IndexPLUS suite of equity solutions was a key contributor to PIMCO receiving Lipper’s Large Company Equity Manager of the Year award
for four consecutive years from 2010 to 2013.
Combined with PIMCO’s high active share equity offerings and StocksPLUS strategies, PIMCO's equity solutions now total more than $55 billion in assets
under management (as of September 30, 2014).
The seven equity strategies involved in the expanded collaboration between Research Affiliates and PIMCO will cover US Large, US Small, International,
International Small, Emerging Markets, Global, and Global ex-US.