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 systematically buy low and sell high
- Time-tested, rules-based approach provides opportunity for long-term outperformance
The Fund Advantage
In addition to a broad, diversified equity market exposure,
the fund provides the potential for meaningful
outperformance relative to both the market and passively
implemented smart beta index approaches.
MSCI World Index
PRIMARY BENCHMARK DESCRIPTION
The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. The MSCI World Index consists of 23 developed market country indices. It is not possible to invest directly in an unmanaged index.