• Provides active allocation across a global universe of assets, including PIMCO mutual funds, affiliated and non-affiliated funds, individual stocks and bonds, and real estate and commodities.
• Allows for full expression of PIMCO’s secular and cyclical views.
• Can represent a diversified portfolio solution for a portion of an investor’s total investable assets.
• May serve as an alternative or complement to a traditional 60% stock/40% bond asset allocation strategy
• Offers the investment expertise of PIMCO and its noted co-CEO and co-CIO Mohamed El-Erian, the primary manager of the Fund.

Asset allocation for a changing world

The Fund can help position investors for secular transformations in the global economy that are challenging traditional asset allocation approaches by providing exposure to a very wide range of global asset classes.

Three integrated strategies in one investment

The Fund employs three distinct, yet interrelated strategies in an effort to provide attractive total returns while proactively managing risk:

1. Optimize the asset mix: Using its time-tested investment process, PIMCO develops a forward-looking allocation aimed at maximizing value across the full spectrum of liquid asset classes.
2. Seek return-enhancing opportunities: PIMCO seeks to identify relative value opportunities across broad market segments. These may arise from short-term market dislocations as well as from longer-term structural inefficiencies.
3. Hedge against severe outcomes: PIMCO attempts to manage the risks involved in a market crisis or systemic event that, while unlikely to occur, could have a severe impact on portfolio performance.

Access to PIMCO’s proven expertise

PIMCO has repeatedly proven its ability to identify secular and cyclical trends and translate those views into investment positions. Three distinguished PIMCO managers, each with longtime experience in global markets, will work to optimize the portfolio’s asset allocation strategy.

The investment process for the Fund builds off PIMCO’s global investment process. The starting point of this process is PIMCO’s 3-5 year secular outlook, which identifies key trends across the global economy and the resulting risks and opportunities posed to financial markets. This is supplemented by PIMCO’s cyclical outlook, which specifies a near-term forecast for the level of economic growth and inflation in key investable regions globally. The PIMCO Investment Committee then combines these “top-down” macro views with “bottom-up” input from each of the sector specialist portfolio management teams. The result is a series of investment views regarding relative value across various global risk factors, which ultimately drive asset class returns.

While the Fund strives for an optimal allocation, the Fund may not always achieve this goal, and the allocation among the underlying funds could be less than optimal, contributing to poorer relative performance or negative performance. The Fund’s net asset value will fluctuate in response to changes in the net asset values of the underlying funds. The cost of investing in a fund of funds will generally be higher than the cost of investing in a mutual fund which invests directly in individual stocks and bonds.

Dr. Bhansali is a managing director and portfolio manager of PIMCO, as well as the firmwide head of analytics for portfolio management and a senior member of PIMCO's portfolio management group. Dr. Bhansali joined PIMCO in 2000; he holds a bachelor's and master's in physics from the California Institute of Technology, and a Ph.D. in theoretical particle physics from Harvard University.

Dr. El-Erian is co-CEO and co-CIO of PIMCO, which he rejoined in December 2007 after serving for two years as president and CEO of Harvard Management Company, the entity that manages Harvard’s endowment and related accounts. He earned his B.A. in economics from Cambridge University and doctoral and master’s degrees in economics from Oxford University. He spent 15 years at the International Monetary Fund in Washington, D.C., before moving to the private sector where he served as managing director at Salomon Smith Barney/Citigroup in London. He first joined PIMCO in 1999, where he was a managing director and a senior member of PIMCO’s portfolio management and investment strategy group.

Mr. Mewbourne is a managing director, portfolio manager and head of the emerging markets, diversified income (co-head), and Insurance portfolio management teams. He has longtime portfolio management experience spanning a broad range of asset classes. He holds an engineering degree in computer science from the University of Pennsylvania.

Newport Beach, California

Led by Founder and Co-Chief Investment Officer Bill Gross, PIMCO is widely recognized as one of the premier bond managers in the world. PIMCO applies this expertise to a range of core and specialized investment portfolios.