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Fact Sheet Prospectus

RAE PLUS International Fund

PTSIX

Updated April 18, 2024

Fact Sheet Prospectus

Objective

Seeks total return which exceeds that of its benchmark

Primary Portfolio

Equity exposure of the RAE International portfolio is obtained using equity-linked instruments, allowing the fund to generate additional returns from a flexible bond alpha strategy.

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Overview

Fund Overview

Time-tested systematic approach to international value investing

The fund invests in a diversified portfolio of international stocks using the Research Affiliates Equity (RAETM) strategy, an innovative value approach designed to outperform the MSCI EAFE Value Index.

Why Invest In This Fund

Aim to capture robust sources of return potential

RAETM is a systematic strategy that selects undervalued stocks using valuation metrics designed by Research Affiliates, while also incorporating quality and momentum signals to improve performance. The RAETM strategy combines several well-researched measures of each signal in an effort to achieve higher returns over time.

Seeks to Capitalize on market inefficiencies

Selected stocks are weighted based on fundamental measures of company size such as sales, cash flows, dividends and book value. This weighting methodology helps the fund to capitalize on market inefficiencies by systematically buying low and selling high and benefit from long-term mean reversion in stock prices.

Offers the benefits of investing systematic equity strategy

The fund’s unique rules-based approach seeks a consistent investment process and a contrarian portfolio designed, which aims to deliver market outperformance.

Our Expertise

PIMCO introduced the groundbreaking StocksPLUS strategy in 1986 - approach used across our “PLUS” portfolios - which capitalizes on the depth and breadth of PIMCO’s resources. PIMCO has partnered with Research Affiliates to deliver systematic equity strategies since 2005. Today, we manage RAETM “PLUS” portfolios across a range of objectives and market exposures

PRIMARY BENCHMARK

MSCI EAFE Value Index

PRIMARY BENCHMARK DESCRIPTION

The MSCI EAFE Value Index captures large and mid-cap securities exhibiting overall value style characteristics across developed markets countries around the world, excluding the US and Canada. The value investment style characteristics for index construction of the MSCI EAFE Value Index are defined using three variables: book value to price, 12-month forward earnings to price and dividend yield. It is not possible to invest directly in an unmanaged index.

SECONDARY BENCHMARK

MSCI EAFE Index

SECONDARY BENCHMARK DESCRIPTION

MSCI EAFE Index is an unmanaged index designed to represent the performance of large and mid-cap securities across 21 developed markets, including countries in Europe, Australasia and the Far East, excluding the U.S. and Canada. It is not possible to invest directly in the index.

DIVIDEND FREQUENCY

Quarterly

SHARE CLASS INCEPTION

09/30/2011

CUSIP

72201W667

RELATED

Expect more from equities

With a systematic equity approach

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Managers

Robert Arnott

Founder and Chairman, Research Affiliates

View Profile for Robert Arnott

Chris Brightman

Chief Executive Officer and Chief Investment Officer, Research Affiliates

View Profile for Chris Brightman

Marc P. Seidner

CIO Non-traditional Strategies

View Profile for Marc P. Seidner

Bryan Tsu

Portfolio Manager

View Profile for Bryan Tsu

Jing Yang

Portfolio Manager

View Profile for Jing Yang

Yields & Distributions

Historical Prices & Distributions

Distribution Yield (At Nav) 1 as of 03/31/2024 5.95%
1 - Day Distribution Yield as of 04/18/2024 -
30-Day SEC Yield2 as of 03/31/2024 5.71%
Latest Dividend Distribution ($ Share)3 as of 03/14/2024 $0.13896
Dividend Distribution (YTD) 4 as of 03/14/2024 $0.13896

disclosures

1The distribution yield for monthly paying Funds is calculated by annualizing actual dividends distributed for the monthly period ended on the date shown and dividing by the net asset value on the last business day for the same period. The distribution yield for quarterly paying Funds is calculated by taking the average of the prior four quarterly distribution yields. The quarterly distribution yields are calculated by annualizing actual dividends distributed for the quarterly period ended on the most recent quarterly distribution date and dividing by the net asset value for the same date. The distribution yield for annual paying Funds is calculated by taking the annual distribution divided by the Fund’s net asset value on ex-date. The yield is annualized if the Fund incepted less than a year ago. The yield does not include long- or short-term capital gains distributions.
2The Subsidized yield includes contractual expense reimbursements and it would be lower without those reimbursements. The Unsubsidized 30 Day SEC yield excludes contractual expense reimbursements. The 30 day SEC Yield is computed under an SEC standardized formula based on net income earned over the past 30 days.
3Data does not include special cash dividends.
4Data is based on distributions since the most recent calendar year end and does not include special cash dividends.

Fees & Expenses

Effective as of 07/31/2023
Gross Expense Ratio 0.98%
Adjusted Expense Ratio 0.82%
The Adjusted Expense Ratio excludes certain investment expenses, such as interest expense from borrowings and repurchase agreements and dividend expense from investments on short sales, incurred directly by the Fund or indirectly through the Fund’s investments in underlying PIMCO Funds (if applicable), none of which are paid to PIMCO.

Prices & Performance

Important Fund Event: Reverse Share Split

On March 25, 2022, the Fund performed a reverse share split. The reverse share split reduced the number of outstanding shares of each class of the Fund, and proportionately increased the net asset value (“NAV”) per share. The increased price per share will be reflected in the “Daily Change” value as of 3/28/2022. The NAV for 3/25/2022 reflects the pre-reverse share split NAV. For a helpful Q&A on the reverse share split, click here.

 

Daily Statistics

All data as of 04/18/2024

NAV $7.06 One Day Return 0.71%
Daily Change $0.05 Daily YTD Return 0.10%

All data as of

All data as of

Click here to view the Price and Performance for all Mutual Funds

Performance quoted represents past performance. Past performance 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 performance shown. For performance current to the most recent month-end, visit www.pimco.com or call (888) 87-PIMCO.

Differences in the Fund’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the pricing methodologies used by the Fund and the index.

There is no assurance that any fund, including any fund that has experienced high or unusual performance for one or more periods, will experience similar levels of performance in the future. High performance is defined as a significant increase in either 1) a fund’s total return in excess of that of the fund’s benchmark between reporting periods or 2) a fund’s total return in excess of the fund’s historical returns between reporting periods. Unusual performance is defined as a significant change in a fund’s performance as compared to one or more previous reporting periods.

Certain Funds may offer a share class with an inception date which is different than the inception date of the Fund. For the periods prior to the inception date of a share class, performance information is based on the performance of the Fund’s oldest class shares, adjusted to reflect the fees and expenses paid by that class of shares.

Calendar Year Returns %

All data as of

Growth of $10,000 (hypothetical)

Morningstar and Lipper

disclosures

Performance figures presented reflect the total return performance after fees, unless otherwise noted, 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. Periods less than on year are cumulative.

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.
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.

Monthly Morningstar Rating™ is for the share class shown; other classes may have different performance characteristics.


A rating is not a recommendation to buy, sell or hold a fund. © 2023 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (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. The Morningstar RatingTM for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product 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 for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Past performance is no guarantee of future results.

The monthly Lipper Average and Rankings are calculated by Lipper, Inc, based on the total return performance of funds included by Lipper in that category. Rankings begin with the inception of the actual share class. Lipper does not take into account sales charges.

Portfolio Composition

All data as of unless otherwise stated

Regional Diversification - Index
Market Value %5

EMEA 58.85
Asia Pacific 34.51
Americas 4.22
Emerging Markets6 2.42

Summary Characteristics - Index7

Stocks in Portfolio 466
P/E Ratio (Forward) 10.72
Weighted Median Market Cap ($US MM) 37,781.70
P/E Ratio (Trailing) 10.66
Weighted Avg Market Cap ($US MM) 60,977.99

Top 5 GICS Sector - Index
Market Value %5

Financials 28.40
Industrials 14.41
Health Care 9.52
Materials 8.51
Energy 8.40

Risk Characteristics
(Trailing 3 Years)

Standard Deviation8 17.12
Sharpe Ratio9 0.13
Information Ratio10 -1.00
Tracking Error11 2.73

Regional Diversification - RAE
Market Value %5

EMEA 50.89
Asia Pacific 32.62
Americas 13.50
Emerging Markets6 2.98

Summary Characteristics - RAE7

Stocks in Portfolio 295
P/E Ratio (Forward) 10.48
Weighted Median Market Cap ($US MM) 14,350.11
P/E Ratio (Trailing) 10.69
Weighted Avg Market Cap ($US MM) 26,229.07

Top 5 GICS Sector - RAE Market Value %5

Consumer Discretionary 16.96
Industrials 15.89
Financials 14.87
Health Care 9.94
Consumer Staples 8.42

Sector Allocation - Duration in Years

US Government Related12 -1.37
Securitized13 1.82
Invest. Grade Credit 0.13
High Yield Credit 0.00
Non-USD Developed -0.08
Emerging Markets6 0.02
Other14 0.00
Net Other Short Duration Instruments15 0.09

disclosures

5RAE 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.
6Emerging 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.
7P/E Ratio, Weighted Average Market Cap. and Median Market Cap. are the averages of the P/E and market capitalization of the issues held by the portfolio. P/E is a ratio of security price to earnings per share. Typically, an undervalued security is characterized by a low P/E ratio, while an overvalued security is characterized by a high P/E ratio. Forward P/E is based on estimated future earnings as assembled and calculated by FactSet.
8Standard deviation is a measure of the dispersion of a set of data from its mean. The more spread apart the data, the higher the deviation.
9The 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 risk-free rate subtracted from the portfolio returns.
10The 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.
11Tracking error, a measure of risk, is defined as the standard deviation of the portfolio's excess return vs. the benchmark expressed in percent.
12May include nominal and inflation-protected Treasuries, Treasury futures and options, agencies, FDIC-guaranteed and government-guaranteed corporate securities, and interest rate swaps.
13The Securitized bucket will include Agency MBS, non-Agency MBS, CMBS, ABS, CDO, CLO, and Pooled Funds.
14May include municipals, convertibles, preferreds, and yankee bonds.
15Net Other Short Duration Instruments includes securities and other instruments (except those 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 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 or take into account other pertinent factors 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.
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.
RAE equity statistics are for the RAE International Large model portfolio, which the Fund replicated via total return swaps.
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.  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 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.
PIMCO does not provide legal or tax advice. Please consult your tax and/or legal counsel for specific tax or legal questions and concerns.
PIMCO as a general matter provides services to qualified institutions, financial intermediaries and institutional investors. Individual investors should contact their own financial professional to determine the most appropriate investment options for their financial situation. This material contains the current opinions of the manager and such opinions are subject to change without notice. For Informational Purposes Only. 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 LLC in the United States and throughout the world. ©2024, PIMCO
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