The PIMCO GIS RAE PLUS Global Developed
Fund is a fundamentally-weighted, smart beta-based equity
strategy that aims to outperform the MSCI World Index.
Unlike traditional market cap-weighted approaches, the
fund selects and weights stocks based on non-price
measures of company size. By removing price from the
portfolio construction process, the fund seeks to capitalize
on market inefficiencies, systematically capturing returns
when prices deviate from fundamentals. Additionally,
PIMCO’s innovative PLUS™ implementation provides a
second source of excess return and diversification potential.
This approach simply uses equity-linked instruments to
provide investors with full equity exposure, which leaves the
bulk of their capital free to be allocated to a complementary
bond alpha strategy.
This fund is designed to offer investors potential excess returns over Global Developed equity markets without a corresponding increase in volatility. Potential benefits of this fund include:
- A broad, diversified exposure to Global Developed equity markets
- Ability to capitalize on market inefficiencies, contra-trading against the market to