Press Release

PIMCO and Research Affiliates to Partner on Global Suite of Equity Strategies, Expanding Longstanding RAFI®-Based Product Line

 

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 equity strategies.

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 risk-adjusted returns.

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.

Media Contacts

Michael Reid
Global Head of Corporate Communications – New York
212.739.3253
michael.reid@pimco.com

Agnes Crane
U.S. Corporate Communications – New York
212.739.4212
agnes.crane@pimco.com

Jennifer Spivey
U.S. Corporate Communications – Newport Beach
949.720.6374
jennifer.spivey@pimco.com

Jochen Haegele
EMEA Corporate Communications – Munich
+49.89.26209.6237
jochen.haegele@pimco.com

Laura Batty
U.K. and EMEA Corporate Communications – London
+44.20.3640.1414
laura.batty@pimco.com

Millie Dravers
Australia Corporate Communications – Sydney
+612.9290.9577
millie.dravers@pimco.com

Donna Chan
Asia ex-Japan Corporate Communications – Hong Kong
+852 3650 7752
donna.chan@pimco.com

Disclosures

About PIMCO
PIMCO is a leading global investment management firm, with 13 offices in 12 countries throughout the Americas, Europe and Asia. Founded in 1971, PIMCO offers a wide range of innovative solutions to help millions of investors worldwide meet their needs. PIMCO’s goal is to provide attractive returns while maintaining a strong culture of risk management and long-term discipline. PIMCO is owned by Allianz S.E., a leading global diversified financial services provider.

The Lipper Fund Best Group over 3 Years Large Equity award recognizes funds that have delivered consistently strong risk-adjusted performance, relative to peers.

About Research Affiliates, LLC
Research Affiliates, LLC is a global leader in smart beta and asset allocation strategies. Dedicated to creating value for investors, Research Affiliates seeks to have a profound impact on the global investment community through our insights and products.

The firm is built on a strong research base, led by Rob Arnott and Jason Hsu. Research Affiliates delivers solutions in partnership with some of the world's leading financial institutions, who offer mutual funds, ETFs, separately managed accounts, and/or commingled accounts.

Research Affiliates was founded in 2002 and is based in Newport Beach, California.

As of September 30, 2014, about $177 billion in assets were managed worldwide using investment strategies developed by Research Affiliates.

Smart beta generally refers to a category of investment solutions that seek to add value by systematically investing in well-established sources of excess returns using a transparent and rules-based approach.

More information on Research Affiliates is available at www.researchaffiliates.com.

Fundamental Index®, the non-capitalization method for creating and weighting an index of securities, is patented and patent-pending proprietary intellectual property of Research Affiliates, LLC. (See all applicable US patent and pending patent disclosures located at http://www.researchaffiliates.com/Pages/legal.aspx, which are fully incorporated herein.)

All investments contain risk and may lose value. Equities may decline in value due to both real and perceived general market, economic and industry conditions. There is no guarantee that these investment strategies will work under all market conditions or are suitable for all investors and each investor should evaluate their ability to invest long-term, especially during periods of downturn in the market. Investors should consult their investment professional prior to making an investment decision.

Except for the historical information and discussions contained herein, statements contained in this news release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, including the performance of financial markets, the investment performance of PIMCO's sponsored investment products and separately managed accounts, general economic conditions, future acquisitions, competitive conditions and government regulations, including changes in tax laws. Readers should carefully consider such factors. Further, such forward-looking statements speak only on the date at which such statements are made. PIMCO undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements.