RAE Fundamental PLUS International Fund

PTSIX

Updated July 22, 2016

Objective

Seeks total return which exceeds that of the MSCI EAFE Index

Primary Portfolio

RAE Fundamental International Large portfolio derivatives backed by an actively managed portfolio of fixed income securities with an absolute return orientation

Overview

Fund Overview

Time-tested, smart beta approach to international equity investing

The fund invests in a diversified portfolio that captures the returns of international companies using the Research Affiliates Equity (RAE) Fundamental investment strategy – a systematic approach designed to outperform the MSCI EAFE Index – plus an additional source of return potential.

Why Invest In This Fund

Systematically capitalizes on market inefficiencies

RAE Fundamental selects and weights international companies based on non-price measures of company size including sales, cash flows, book value and dividends. By removing price from the portfolio construction process the fund aims to outperform cap-weighted indexes by breaking the link between stock price and portfolio weight. In addition, the fund incorporates the portfolio managers’ active insights into quality, momentum, size and style with the goal of further enhancing returns.

Offers the benefits of traditional passive and active equity investing

The fund’s unique smart beta approach gives it the ability to retain key attributes of passive investing, including broad diversification, while also seeking market outperformance. The fund provides an additional source of alpha potential by employing PIMCO’s “PLUS” implementation to equity investing. Because the fund uses equity-linked instruments, which do not require the same cash outlay as physical stocks, it seeks to generate incremental return by investing the remaining cash in actively managed fixed income.

Award-winning equity performance

The fund benefits from exposure to the proprietary RAE Fundamental strategy and PIMCO’s time-tested approach to managing “PLUS” strategies, whereby the fund invests in equity linked instruments alongside a complementary alpha-generating bond portfolio. PIMCO has been recognized by Lipper as Best Group Large Equity multiple times for the consistently strong risk-adjusted performance of its equity “PLUS” strategies.

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. PIMCO has partnered with Research Affiliates since 2005 when they introduced fundamental indexes to the marketplace. Research Affiliates is broadly credited as being pioneers in smart beta. Today, we manage RAE “PLUS” portfolios across a range of objectives and market exposures.

PRIMARY BENCHMARK

MSCI EAFE Net Dividend Index (USD Unhedged)

PRIMARY BENCHMARK DESCRIPTION

MSCI EAFE Net Dividend Index (USD Unhedged) is an unmanaged index of issuers in countries of Europe, Australia, and the Far East represented in U.S. Dollars on a unhedged basis. It is not possible to invest directly in the index.

DIVIDEND FREQUENCY

Quarterly

SHARE CLASS INCEPTION

09/30/2011

CUSIP

72201W667

Managers

Mohsen Fahmi

Portfolio Manager, Global Fixed Income

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Sudi Mariappa

Portfolio Manager, Generalist

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Robert Arnott

Founder and Chairman, Research Affiliates

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Yields & Distributions

Historical Prices & Distributions

Distribution Yield (At Nav) 1 as of 06/30/2016 2.42%
30 - Day SEC Yield2 as of 06/30/2016 3.40%
30 - Day SEC Yield2 as of 07/22/2016 -
Latest Dividend Distribution ($ Share)3 as of 06/16/2016 $0.03009
Dividend Distribution (YTD) 4 as of 06/16/2016 $0.03009
Yields & Distributions Footnotes & Disclosures

disclosures

Unless stated, the Fund does not have an unsubsidized yield.

Fees & Expenses

Total Annual Operating Expenses 0.83%
Net Operating Expenses Ex-interest5 0.82%

Prices & Performance

Daily Statistics

All data as of 07/22/2016

NAV $7.68 One Day Return -0.52%
Daily Change $-0.04 Daily YTD Return 0.94%
Click here to view Historical Prices
  • Average Annual Returns
  • Cumulative Returns

All data as of

  • Daily
  • Month End
  • Quarter End

All data as of

  • Daily
  • Month End
  • Quarter End
Performance quoted represents past performance and is not a guarantee or a reliable indicator of future results. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. Current performance may be lower or higher than average annual returns shown. Performance quoted does not reflect any sales charges, if applicable, and performance would be lower if it did.

Calendar Year Returns %

All data as of

Growth of $10,000 (hypothetical)

Since inception 09/30/2011 to 06/30/2016 = $13,495

Morningstar and Lipper

  • Morningstar Ratings
  • Lipper Rankings
Prices & Performance Footnotes & Disclosures

disclosures

Performance figures presented reflect the total return performance after fees and reflect changes in share price and reinvestment of dividend and capital gain distributions on the payable date. All periods longer than one year are annualized.
Daily YTD return is from the most recent calendar year end.
Growth of $10,000 is calculated at NAV and assumes that all dividend and capital gain distributions were reinvested. It does not take into account sales charges or the effect of taxes. Results are not indicative of future performance.
Past performance is not a guarantee or a reliable indicator of future results. For funds with at least a 3-yr history, Morningstar calculates a Morningstar Rating based on a risk-adjusted return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges, loads and redemption fees) with an emphasis on downward variations and consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. The Overall Morningstar Rating is a weighted average of the performance figures for its 3-, 5- and 10-yr (if applicable) Morningstar Rating metrics. Morningstar, Inc.® 2015. All rights reserved. The information contained herein; (1) is proprietary to Morningstar and/or its affiliates; (2) may not be copied or distributed; (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Hollow stars represent a class of shares with inception dates that is different than the inception date of the fund. For the period prior to the inception date of these shares, performance information is based on the performance of the fund’s Institutional Class shares, adjusted to reflect the actual distribution and/or service (12b-1) fees and other expenses paid by the newer share class.
The Lipper Category returns and rankings are calculated by Lipper Inc., a Reuters Company, which is a nationally recognized organization that compares the performance of mutual funds with similar investment objectives. The Category returns represent the average performance of included funds, while rankings compare an individual fund's returns to those of the other funds in its category. Both are based on total return performance, with capital gains and dividends reinvested, with annual operating expenses deducted, but without including front- or back-end sales charges. Rankings begin with the actual share class inception. Rankings are relative to a peer group and do not necessarily mean that the fund had high total returns.

Portfolio Composition

All data as of unless otherwise stated

Regional Diversification - Index
Market Value %1

EMEA 63.76
Asia Pacific 32.00
Emerging Markets2 3.57
Americas 0.67

Summary Characteristics - Index
Market Value %1

Stocks in Portfolio 917
P/E Ratio (Forward) 14.86
Median Market Cap ($US MM) 24,462.06
P/E Ratio (Trailing) 15.61
Weighted Avg Market Cap ($US MM) 44,989.45

Top 5 GICS Sector - Index
Market Value %1

Financials 22.33
Consumer Staples 13.34
Industrials 13.31
Health Care 12.39
Consumer Discretionary 12.13

Risk Characteristics
(Trailing 3 Years)

Standard Deviation 17.14
Sharpe Ratio3 0.14
Information Ratio4 -0.10
Tracking Error5 5.07

Regional Diversification - RAE
Market Value %1

EMEA 63.70
Asia Pacific 22.89
Americas 12.04
Emerging Markets2 1.38

Summary Characteristics - RAE
Market Value %1

Stocks in Portfolio 739
P/E Ratio (Forward) 13.07
Median Market Cap ($US MM) 22,246.42
P/E Ratio (Trailing) 13.19
Weighted Avg Market Cap ($US MM) 37,514.63

Top 5 GICS Sector - RAE Market Value %1

Financials 27.77
Energy 11.32
Industrials 11.24
Materials 11.06
Consumer Staples 8.77

Sector Allocation - Duration in Years

US Government Related6 -1.12
Mortgage 0.73
Invest. Grade Credit 0.28
High Yield Credit 0.04
Non-USD Developed -0.24
Emerging Markets2 0.05
Municipal/Other7 0.22
Net Other Short Duration Instruments8 0.38
Portfolio Composition Footnotes & Disclosures

disclosures

1RAE equity statistics are for the RAE Fundamental International Large model portfolio, which the Fund replicated via total return swaps. Cap equity statistics are for the MSCI EAFE Net Dividend Index (USD Unhedged), the Fund's benchmark.
2Short duration emerging markets instruments includes an emerging market security or other instrument economically tied to an emerging market country by country of risk with an effective duration less than one year and rated investment grade or higher or if unrated, determined to be similar quality by PIMCO. Emerging Markets includes the value of short duration emerging markets instruments previously reported in another category.
3The Sharpe Ratio measures the risk-adjusted performance. The risk-free rate is subtracted from the rate of return for a portfolio and the result is divided by the standard deviation of the portfolio returns.
4The information ratio is defined as the portfolio's excess return per unit of risk, or tracking error. For example, an information ratio of 1 means that a portfolio manager generates 100 basis points, or one percent of excess return for every 100 basis points of risk taken.
5Tracking error, a measure of risk, is defined as the standard deviation of the portfolio's excess return vs. the benchmark expressed in percent.
6May include nominal and inflation-protected Treasuries, Treasury futures and options, agencies, FDIC-guaranteed and government-guaranteed corporate securities, and interest rate swaps.
7May include municipals, convertibles, preferreds, and yankee bonds.
8Net Other Short Duration Instruments includes securities and other instruments (except instruments tied to emerging markets by country of risk) with an effective duration less than one year and rated investment grade or higher or, if unrated, determined by PIMCO to be of comparable quality, commingled liquidity funds, uninvested cash, interest receivables, net unsettled trades, broker money, short duration derivatives (for example Eurodollar futures) and derivatives offsets. With respect to certain categories of short duration securities, the Adviser reserves the discretion to require a minimum credit rating higher than investment grade for inclusion in this category. Derivatives Offsets includes offsets associated with investments in futures, swaps and other derivatives. Such offsets may be taken at the notional value of the derivative position which in certain instances may exceed the actual amount owed on such positions.
Portfolio information in the charts is based on the fund's net assets. These percentages may differ from those used for the fund's compliance calculations, including the fund's prospectus, regulatory, and other investment limitations and policies, which may be based on total assets of the fund or other measurements, may include or exclude various categories of investments from those covered in the portfolio allocation categories shown in this report, and may be based on different classifications and measurements of the fund’s investments and other criteria.
References to specific sectors, securities or issuers are for illustrative purposes only. All holdings are subject to change daily. All share classes have the same portfolio but different expenses.

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