PIMCO RAE PLUS Small Fund Class I-2 (PCCPX)

Overview

The fund is designed for investors seeking exposure to a diverse range of Fixed Income Instruments across at least three different countries, including potentially the United States. It is characterized by its flexibility to invest a substantial portion of its assets into derivatives and other advanced financial instruments such as options, futures contracts, and swap agreements. Furthermore, the fund is open to investing in mortgage- or asset-backed securities without any specified limitation. An important aspect of this fund is its non-diversified status, which means it may concentrate its investments more heavily in fewer issuers or sectors than diversified funds.

Products and Services

• Fixed Income Instruments:

  The fund primarily focuses on investing in Fixed Income Instruments that are economically connected to at least three different countries, one of which can be the United States. These instruments might include bonds, debentures, notes, and other securities that pay interest. The aim is to provide investors with stable returns derived from interest income.

• Derivatives Exposure:

  Derivatives such as options, futures contracts, and swap agreements form a crucial part of the fund's investment strategy. These financial instruments are used to hedge against risks or to take on speculative positions to potentially enhance the fund's returns. The fund's ability to invest in derivatives without limitation allows for significant flexibility in managing its investment portfolio.

• Mortgage- or Asset-Backed Securities:

  The fund may allocate a portion of its assets to mortgage- or asset-backed securities. These securities are backed by pools of assets, typically loans or receivables, providing another avenue for diversifying the fund's investments and gaining exposure to different segments of the market.

• Non-Diversified Fund Structure:

  Unlike diversified funds, this non-diversified fund may choose to invest a larger share of its assets in a smaller number of issuers or sectors. This approach can potentially lead to higher returns but also comes with an increased risk level, as the fund's performance may be more significantly impacted by the performance of its concentrated holdings.