PIMCO RAE Fundamental PLUS EMG Fund INSTL (PEFIX)

Prior to 15 April 2015, the PIMCO RAE Fundamental PLUS EMG Fund was named the PIMCO EM Fundamental IndexPLUS AR Strategy Fund.

PIMCO
See the prospectus for detail on the fee changes effective on 10/1/2013

Objective
The Fund seeks total return which exceeds that of its benchmark.
Primary Portfolio
RAE Fundamental Emerging Markets portfolio derivatives backed by an actively managed portfolio of fixed income securities with an absolute return orientation
At a Glance
SymbolPEFIX
CUSIP Number 72201M131
Total Fund Assets (in millions) $3,193.1
Share Class Inception Date 11/26/2008
Dividend Frequency Quarterly
Maximum Sales Charge -
Net Operating Expenses 1.15 %

Daily Price

NAV Day Return
$10.05 -$0.02 -0.20%
YTD Return
5.46%
As of 05/27/15

Historical Prices

05/21/15

$10.16

05/22/15

$10.20

05/26/15

$10.07

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. Click Performance tab for performance current to the most recent month-end.
Fund Overview
Smart beta-based equity exposure, designed to outperform

The fund offers access to Research Affiliates Equity (RAE) Fundamental, a smart beta-based equity strategy designed to outperform the MSCI Emerging Markets Index, plus an additional, complementary source of alpha potential.


Why Invest In This Fund
An alternative to traditional passive and active equity investing

RAE Fundamental selects and weights emerging market stocks based on non-price measures of company size. Additional return and diversification potential is provided by a complementary absolute return bond alpha strategy. This unique approach allows the fund to retain key attributes of passive equity indexing, while also seeking to deliver meaningful market outperformance.


Smart beta-based, actively enhanced equity exposure PLUS

Equity portfolio construction is based on Research Affiliate’s smart beta approach, RAFI Fundamental Index, which weights stocks based on non-price measures of company size. In addition, active insights are incorporated with the goal of achieving superior risk-adjusted returns. As the fund gains full exposure to RAE Fundamental using equity-linked instruments at a money market-based cost, the goal absolute return bond alpha strategy is to outperform this cost – thereby providing RAE Fundamental exposure “PLUS” additional alpha and diversification potential.


Award-winning performance

The fund benefits from exposure to the proprietary, smart beta-based RAE Fundamental strategy and PIMCO’s time-tested approach to managing “PLUS” strategies. 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. Research Affiliates introduced fundamental indexes to the marketplace in 2005 and is broadly recognized as a premier provider of and thought leader behind smart beta. Today, we manage RAE “PLUS” portfolios across a range of objectives and market exposures.

Managers

Mohsen Fahmi

Mr. Fahmi is a managing director and generalist portfolio manager in the Newport Beach office, focusing on global fixed income assets. Prior to joining PIMCO in 2014, he was with Moore Capital Management, most recently as a senior portfolio manager and previously as chief operating officer. In London earlier in his career, he was co-head of bond and currency proprietary trading at Tokai Bank Europe, head of leveraged investment at Salomon Brothers and executive director of proprietary trading at Goldman Sachs. Prior to this, he was a proprietary trader for J.P. Morgan in both New York and London, and he also spent seven years as an investment officer at the World Bank in Washington, DC. He has 30 years of investment experience and holds an MBA from Stanford University. He received a master's degree in civil engineering from the Ohio State University and an undergraduate degree from Ain Shams University, Cairo.

Sudi N. Mariappa

Mr. Mariappa is a managing director and generalist portfolio manager in the Newport Beach office. He rejoined PIMCO in 2014 from GLG, a London-based hedge fund, where he was a managing director, developing and managing fixed income funds. Previously at PIMCO, Mr. Mariappa was a managing director and head of global portfolio management. He also served as a senior advisor to PIMCO’s portfolio management group from 2009-2011. Prior to joining PIMCO in 2000, he was a managing director for Merrill Lynch in Tokyo, overseeing Japanese government bond and swap derivative trading. He has 27 years of investment experience and holds an MBA, as well as a bachelor's degree in chemical engineering, from Cornell University.

Robert Arnott

Mr. Arnott is the founder and chairman of Research Affiliates, a subadvisor to PIMCO. In 2002, he established Research Affiliates as a research-intensive asset management firm that focuses on innovative asset allocation and alternative indexation products. He previously served as chairman of First Quadrant, as president of TSA Capital Management (now part of Analytic Investors), and as vice president at The Boston Company. He also was global equity strategist at Salomon Brothers. He has published more than 100 articles in journals such as the Journal of Portfolio Management, the Harvard Business Review and the Financial Analysts Journal, where he also served as editor in chief from 2002 through 2006. He graduated summa cum laude from the University of California, Santa Barbara, in 1977 in economics, applied mathematics and computer science.

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.  Click here for a complete list of the PIMCO Funds prospectuses and summary prospectuses. Please read them carefully before you invest or send money.

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 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 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. Investing in the bond market is subject to certain risks including market, interest-rate, issuer, credit, and inflation risk; investments may be worth more or less than the original cost when redeemed. Mortgage and asset-backed securities may be sensitive to changes in interest rates, subject to early repayment risk, and their value may fluctuate in response to the market’s perception of issuer creditworthiness; while generally supported by some form 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 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. Diversification does not ensure against loss.
 
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.


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