PEFAX — PIMCO RAE PLUS EMG Fund

PEFAX Fund Overview

PEFAX — PIMCO RAE PLUS EMG Fund is a US mutual fund managed by PIMCO Funds, categorised as United States Multi-Cap / All-Cap Blend / Core Equity. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

• Type: US mutual fund
• Manager: PIMCO Funds
• Category: United States Multi-Cap / All-Cap Blend / Core Equity
• Assets under management: $226.59M
• Ticker: PEFAX
• SEC CIK: 0000810893
• SEC series ID: S000023716
• Share class ID: C000069769

PEFAX Investment Objective and Strategy

PIMCO RAE PLUS EMG Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by PIMCO Funds.

Investment objective

The Fund seeks total return which exceeds that of its benchmark.

Principal investment strategy

"The Fund seeks to exceed the total return of the MSCI Emerging Markets Index (Net Dividends in USD) (the ""Benchmark"") under normal circumstances by obtaining exposure to a portfolio of stocks economically tied to emerging market countries (""RAE Emerging Markets Model Portfolio""), and complementing this equity exposure with absolute return bond alpha strategy (""AR Bond Alpha Strategy""). The stocks are selected by the Fund's sub-adviser, Research Affiliates, LLC (""Sub-Adviser""), from a broad universe of companies which satisfy certain liquidity and capacity requirements. Under normal circumstances equity total return swaps are used to obtain exposure to the RAE Emerging Markets Model Portfolio. The Sub-Adviser uses the RAE methodology as a starting point for portfolio construction. The RAE methodology is a non-capitalization method of creating and weighting an index of equity securities, within a defined market, that seeks to eliminate the potential overweighting of overpriced equity securities and underweighting of underpriced equity securities associated with market-capitalization equity indexes.

Selections are further refined through the use of additional analytic measures and processes designed to achieve enhanced risk-adjusted returns including measures of financial health and adjustments that take momentum into account, among other factors. Actual stock positions in the RAE Emerging Markets Model Portfolio, which drift apart from target weights as market prices change, are rebalanced to target weights periodically. The Sub-Adviser provides investment advisory services in connection with the Fund's swap-based exposure to the RAE Emerging Markets Model Portfolio by, among other things, providing PIMCO, or counterparties designated by PIMCO, with the RAE Emerging Markets Model Portfolio for purposes of developing equity total return swaps based on the RAE Emerging Markets Model Portfolio.

In a typical swap agreement, the Fund will receive the total return of the RAE Emerging Markets Model Portfolio from the counterparty to the swap agreement in exchange for paying the counterparty an agreed upon short-term interest rate. Because the RAE Emerging Markets Model Portfolio is a proprietary portfolio, there may be a limited number of counterparties willing or able to serve as counterparties to a swap agreement. If such swap agreements are not available, or if swap pricing is unattractive or for other reasons, the Fund may invest in other instruments, ""baskets"" of stocks, or individual securities to replicate the performance of the RAE Emerging Markets Model Portfolio. The Fund seeks to remain exposed to the RAE Emerging Markets Model Portfolio even when the value of the RAE Emerging Markets Model Portfolio is declining.

In managing the Fund's investments in the AR Bond Alpha Strategy, PIMCO seeks to outperform the short-term interest rate cost of obtaining equity exposure, thereby enhancing the Fund's total return and return versus the benchmark (sometimes referred to as ""alpha""). The AR Bond Alpha Strategy invests in a diversified portfolio of Fixed Income Instruments, which may be represented by forwards or derivatives such as options, futures contracts or swap agreements. ""Fixed Income Instruments"" include bonds, debt securities and other similar instruments issued by various U.S. and non-U.S. public or private-sector entities. The AR Bond Alpha Strategy is not designed to systematically provide bond market exposure, although the returns may (or may not) be positively correlated with the returns of the bond market.

The AR Bond Alpha Strategy seeks to maintain an overall portfolio duration which normally varies from (negative) 3 years to positive 8 years based on PIMCO's market forecasts among other factors. Duration is a measure used to determine the sensitivity of a security's price to changes in interest rates. The longer a security's duration, the more sensitive it will be to changes in interest rates. In addition to duration, the AR Bond Alpha Strategy has flexibility with respect to overall sector exposures, non-U.S. exposures and credit quality, both as a function of the strategy's investment guidelines and lack of a bond market index benchmark. The Fund may invest, without limitation, in derivative instruments, such as options, futures contracts or swap agreements, or in mortgage- or asset-backed securities, subject to applicable law and any other restrictions described in the Fund's prospectus or Statement of Additional Information.

The Fund may purchase or sell securities on a when-issued, delayed delivery or forward commitment basis and may engage in short sales. The Fund may invest up to 20% of its total assets in high yield securities (""junk bonds""), as rated by Moody's Investors Service, Inc. (""Moody's""), Standard & Poor's Ratings Services (""S&P"") or Fitch, Inc. (""Fitch""), or, if unrated, as determined by PIMCO. With respect to the AR Bond Alpha Strategy, the Fund may invest, without limitation, in securities denominated in foreign currencies and in U.S. dollar-denominated securities of foreign issuers. With respect to the AR Bond Alpha Strategy, the Fund may invest up to 25% of its total assets in securities and instruments that are economically tied to emerging market countries (this limitation does not apply to investment grade sovereign debt denominated in the local currency with less than 1 year remaining to maturity, which means with respect to the AR Bond Alpha Strategy, the Fund may invest in such instruments without limitation subject to any applicable legal or regulatory limitation).

With respect to the AR Bond Alpha Strategy, the Fund will normally limit its foreign currency exposure (from non-U.S. dollar-denominated securities or currencies) to 35% of its total assets. With respect to the AR Bond Alpha Strategy, the Fund will normally limit its exposure (from non-U.S. dollar-denominated securities or currencies) to each non-U.S. currency to 10% of its total assets. With respect to the AR Bond Alpha Strategy, the Fund will normally limit its aggregate U.S. dollar exposure from transactions or instruments that reference the relative return of a non-U.S. currency or currencies as compared to the U.S. dollar to 20% of its total assets. The Fund may also invest up to 10% of its total assets in preferred securities. The Fund may invest in common stocks, options, futures, options on futures and swaps.

The Benchmark is a market capitalization weighted index that is designed to measure equity market performance of emerging markets."

PEFAX Holdings

Top 10 holdings of PIMCO RAE PLUS EMG Fund by percentage of net assets, from the fund's latest SEC N-PORT filing.

View all PEFAX holdings

PEFAX Portfolio Allocation

Asset-class allocation of PIMCO RAE PLUS EMG Fund by percentage of net assets, from the latest SEC N-PORT filing.

PEFAX Performance

Total returns for PEFAX (as of 2026-10-01), from SEC filings.

PEFAX Risk Information

Risk metrics for PEFAX, derived from monthly returns in SEC filings.

• 1-year volatility (annualised): 19.7%

PEFAX Costs and Fees

PEFAX costs about $152 per $10,000 invested per year in fund expenses.

• Net expense ratio: 1.52%
• Gross expense ratio: 1.52%
• Portfolio turnover: 486%
• Brokerage commissions: 1.03 bps of average net assets (SEC N-CEN)

PEFAX Cashflows

Over the 12 months to 2026-06, PIMCO RAE PLUS EMG Fund had net outflows of $19.37M, from monthly SEC N-PORT filings.

PEFAX Debt Constituents

Largest debt holdings of PIMCO RAE PLUS EMG Fund by percentage of net assets, from the latest SEC N-PORT filing.

PEFAX Prospectus and SEC Filings

Official PIMCO RAE PLUS EMG Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

• Prospectus (485BPOS) — filed 2024-07-25
• Prospectus supplement (497) — filed 2024-01-08
• Prospectus supplement (497) — filed 2023-10-02
• Portfolio holdings (N-PORT) — filed 2026-08-31
• Portfolio holdings (N-PORT) — filed 2026-05-29
• Portfolio holdings (N-PORT) — filed 2026-03-02
• Annual census (N-CEN) — filed 2026-06-11
• Annual census (N-CEN) — filed 2025-06-13

Related Funds

Other United States Multi-Cap / All-Cap Blend / Core Equity funds tracked on ABC INVEST:

• MFS International Diversification Fund (MDIDX)
• Vanguard Lifestrategy Growth Fund (VASGX)
• Vanguard Lifestrategy Moderate Growth Fund (VSMGX)
• Vanguard Star Fund (VGSTX)
• Eaton Vance Short Duration Strategic Income Fund (ETSIX)

Data Sources

ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.