PIMCO Small Company Fundamental IndexPLUS AR Strategy Fund INSTL (PCFIX)

Please note that effective on or about 15 April 2015, the fund’s name will change to PIMCO RAE Fundamental PLUS Small Fund.

Objective
Seeks total return which exceeds that of the Russell 2000 Index
Primary Portfolio
Enhanced RAFI (eRAFI) Small Company Fundamental Index derivatives backed by an actively managed portfolio of fixed income securities with an absolute return orientation
At a Glance
SymbolPCFIX
CUSIP Number 72201W675
Total Fund Assets (in millions) $414.1
Share Class Inception Date 9/30/2011
Dividend Frequency Quarterly
Maximum Sales Charge -
Net Operating Expenses 0.84 %

Daily Price

NAV Day Return
$12.27 $0.03 0.25%
YTD Return
1.07%
As of 03/27/15

Historical Prices

03/24/15

$12.51

03/25/15

$12.25

03/26/15

$12.24

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
Fundamentally-weighted equity index exposure designed to outperform

The fund offers exclusive access to the Enhanced RAFI® Small Company Index, with two potential sources of excess returns. Designed to outperform the Russell 2000 Index, Enhanced RAFI is a fundamentally-weighted equity index strategy developed by Research Affiliates


Why Invest In This Fund
An alternative to cap-weighted indexes

Unlike traditional market-cap weighted indexes, Enhanced RAFI selects stocks based on a variety of non-price measures of company size, including sales, book value, cash flow and dividends. In doing so, it aims to avoid a pitfall of market-cap indexing – overweighting overvalued and underweighting undervalued stocks.


More efficient index exposure

Traditional index funds aim to simply match the returns of an index. The fund goes further, offering exposure to Enhanced RAFI "PLUS" the returns of a bond portfolio. The fund invests a portion of its assets in equity index-linked instruments, providing access to Enhanced RAFI returns. The balance of the fund’s assets are then invested in a bond portfolio designed to enhance the equity returns.


Award-winning performance

The fund benefits from exposure to Enhanced RAFI and PIMCO’s time-tested approach to managing index "PLUS" strategies. PIMCO has been recognized by Lipper as Large Company Equity Manager of the Year numerous times for the outperformance of its equity index "PLUS" strategies.


Our Expertise

PIMCO, one of the largest investment managers in the world, pioneered the StocksPLUS strategy in 1986. StocksPLUS strategies capitalize on PIMCO’s core strengths of investment analysis and risk management by accessing PIMCO’s global resources. Today, we manage StocksPLUS portfolios across a range of objectives.

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.

Mohsen Fahmi & Sudi Mariappa began managing the fund on 12 January 2015.

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 securities of smaller companies tends to be more volatile and less liquid than investing in securities of larger companies. 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 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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