Learn More About PIMCO RAE Strategies

Wirehouse Advisors

800-628-1237

Independent Advisors

800-880-8684

RIA & Family Offices &
Bank Trust Companies

800-880-8684

Institutions

888-877-4626

Investor Uses of PIMCO RAE Fundamental Strategies

PIMCO RAE Fundamental strategies are available across a range of equity exposures, including U.S. large cap, U.S. small cap, international, emerging, and global markets – and can serve a number of important roles in a portfolio.

Replacing traditional active managers. PIMCO RAE Fundamental takes a systematic approach which results in a completely emotionless, disciplined strategy that seeks to consistently buy low and sell high.

Enhancing the core. In the environment ahead, beta alone may no longer be enough, and passive allocations may not deliver the returns investors need to meet their goals. PIMCO RAE Fundamental strategies may serve as a core solution, providing many of the benefits of passive, such as broad diversification, economic representation and low turnover, while adding the potential for needed excess returns.

Benefiting from the return of the value premium. Given their dynamic exposure to value stocks, PIMCO RAE Fundamental strategies can be a reliable way to benefit from potential value outperformance. The rules-based aspect of the process and the active insights that are applied result in portfolios that “load up” on value stocks when they are cheap but also reduce that deep value bias when value stocks become more expensive.

Disclosures

Investors should consider the investment objectives, risks, charges and expenses of the funds carefully before investing. This and other information are contained in the fund’s prospectus and summary prospectus, if available, which may be obtained by contacting your investment professional or PIMCO  representative or by visiting www.pimco.com. Please read them carefully before you invest or send money.

RISK

In managing the strategy’s investments in Fixed Income Instruments, PIMCO utilizes an absolute return approach; the absolute return approach does not apply to the equity index replicating component of the strategy. Absolute return portfolios may not necessarily fully participate in strong (positive) market rallies. Investing in the bond market is subject to risks, including market, interest rate, issuer, credit, inflation risk, and liquidity risk. The value of most bonds and bond strategies are impacted by changes in interest rates. Bonds and bond strategies with longer durations tend to be more sensitive and volatile than those with shorter durations; bond prices generally fall as interest rates rise, and the current low interest rate environment increases this risk. Current reductions in bond counterparty capacity may contribute to decreased market liquidity and increased price volatility. Bond investments may be worth more or less than the original cost when redeemed. Investing in foreign denominated and/or domiciled securities may involve heightened risk due to currency fluctuations, and economic and political risks, which may be enhanced in emerging markets. Mortgage and asset-backed securities may be sensitive to changes in interest rates, subject to early repayment risk, and while generally backed by a government, government-agency or private guarantor there is no assurance that the guarantor will meet its 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 and liquidity risk than portfolios that do not. Equities may decline in value due to both real and perceived general market, economic, and industry conditions. Derivatives may involve certain costs and risks such as liquidity, interest rate, market, credit, management and the risk that a position could not be closed when most advantageous. Investing in derivatives could lose more than the amount invested. Investors should consult their investment professional prior to making an investment decision.

Investments made by a Fund and the results achieved by a Fund are not expected to be the same as those made by any other PIMCO-advised Fund, including those with a similar name, investment objective or policies. A new or smaller Fund’s performance may not represent how the Fund is expected to or may perform in the long-term. New Funds have limited operating histories for investors to evaluate and new and smaller Funds may not attract sufficient assets to achieve investment and trading efficiencies. A Fund may be forced to sell a comparatively large portion of its portfolio to meet significant shareholder redemptions for cash, or hold a comparatively large portion of its portfolio in cash due to significant share purchases for cash, in each case when the Fund otherwise would not seek to do so, which may adversely affect performance.

This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. This material contains the current opinions of the manager and such opinions are subject to change without notice. This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. PIMCO is a trademark of Allianz Asset Management of America L.P. in the United States and throughout the world. ©2017, PIMCO.

PIMCO Investments LLC, distributor, 1633 Broadway, New York, NY, 10019 is a company of PIMCO.