PIMCO RAE Worldwide Fundamental Advantage PLUS Fund INSTL (PWWIX)

Prior to 15 April 2015, the PIMCO RAE Worldwide Fundamental Advantage PLUS Fund was named the PIMCO Worldwide Fundamental Advantage AR Strategy Fund.

PIMCO
Objective
The Fund seeks total return which exceeds that of its benchmark
Primary Portfolio
Derivatives providing exposure to a proprietary global equity market neutral index, backed by an actively managed portfolio of fixed income securities with an absolute return orientation
At a Glance
SymbolPWWIX
CUSIP Number 72201U760
Total Fund Assets (in millions) $1,823.4
Share Class Inception Date 11/30/2012
Dividend Frequency Quarterly
Maximum Sales Charge -
Net Operating Expenses 0.99 %

Daily Price

NAV Day Return
$9.34 $0.000.00%
YTD Return
-1.56%
As of 04/24/15

Historical Prices

04/21/15

$9.33

04/22/15

$9.33

04/23/15

$9.34

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
A unique global equity market-neutral strategy

Striving to provide attractive returns and diversification with modest volatility, the fund seeks positive performance in a variety of market environments by combining two complementary sources of portfolio return potential.

 

Why Invest In This Fund
Global equity market-neutral approach

The fund seeks to generate returns by maintaining exposure to the RAFI® Country Neutral L/S Global Index (RAFI) via total return swaps. This index incorporates long exposure to a portfolio of global stocks weighted according to fundamental factors and short exposure to a portfolio of stocks weighted by market capitalization.


Two independent sources of returns

Because only a small amount of capital is required to maintain exposure to the RAFI Index, the remaining collateral is invested in a high-quality absolute return-oriented bond portfolio. Its market neutral approach and actively managed collateral may provide capital appreciation with relatively modest levels of volatility.


Performance potential of absolute return approach

The fixed income portfolio’s absolute return approach allows for a wide duration range (-3 to 8 years), helping it seek positive returns across a variety of market and interest rate environments. Absolute return portfolios may not necessarily fully participate in positive market rallies or negative market declines.

 

Our Expertise

PIMCO has pioneered a number of market innovations, including fundamentals-based equity investing and enhanced index strategies. The fund benefits from our expertise, as well as from our time-tested, top-down/bottom-up investment process.

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.

The net expense ratio reflects a contractual expense reduction agreement through 31 July 2014.

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


PIMCO