Fund Description

PIMCO RAFI Dynamic Multi-Factor U.S. Equity is a smart beta strategy that seeks to track the investment results of the RAFI Dynamic Multi-Factor U.S. Index. The fund is designed to provide investors with the benefits of dynamically-weighted exposure to multiple equity factors, including value, quality, low volatility, momentum and size - a diversified approach that seeks to improve return potential.

Investor Benefits

Incorporating the latest smart beta research from Research Affiliates, the fund provides the following potential benefits:

• Exposure to multiple equity factors that theory and research have linked to higher returns, a combination that may offer a smoother ride than single-factor approaches.
• A unique RAFI (Research Affiliates Fundamental Index) approach to weighting stocks within each factor portfolio.
• A dynamic weighting process that overweights factors that may be more attractive on a forward-looking basis, reducing the potential risk associated with buying expensive factors.

The Fund Advantage

PIMCO and Research Affiliates believe that our differentiated approach to multi-factor investing creates the potential for higher returns through both factor portfolio construction and dynamic allocation of the individual factor portfolios.

We believe this value conscious approach to factor investing makes the Fund an attractive option for smart beta investors, and can serve as a complement to or replacement for traditional equity approaches.