PIMCO and Research Affiliates to Partner on Global Suite of Equity Strategies, Expanding Longstanding RAFI(R)-Based Product Line

NEWPORT BEACH, CA--(Marketwired - Jan 8, 2015) - PIMCO, a leading global investment management firm, and Research Affiliates LLC, a global leader in asset allocation strategies and a pioneer in "smart beta" solutions, are extending their longstanding relationship to include a global range of seven additional equity strategies.

The collaboration builds on an almost decade-long equity management relationship between the two firms, representing $30 billion in equity assets under management (as of September 30, 2014) in the PIMCO Fundamental IndexPLUS AR range of strategies.

The seven strategies select stocks using Research Affiliates' pioneering RAFI Fundamental Index® methodology, which picks and weights securities based on fundamental measures of company size rather than security price, and then refine weights using additional measures and processes designed to enhance risk-adjusted returns.

Rob Arnott, Chairman and Chief Executive Officer of Research Affiliates commented: "PIMCO was the first to adopt our Fundamental Index methodology in mid-2005, so this arrangement is a natural evolution of our longstanding relationship." Mr. Arnott added: "By combining our proprietary product design with PIMCO's outstanding client service and investment tools, we can better serve our investors who seek innovative and time-tested investment strategies backed by outstanding client support."

Said PIMCO's Chief Executive Officer Douglas Hodge: "The expansion of PIMCO's and Research Affiliates relationship to these seven equities strategies increases the range of equity solutions we offer clients incorporating Research Affiliates' innovative approach." Mr. Hodge added: "For more than a decade, PIMCO and Research Affiliates have worked together to provide investment solutions based on a shared vision to help investors navigate complex, challenging and fast-changing global markets."

PIMCO's Fundamental IndexPLUS suite of equity solutions was a key contributor to PIMCO receiving Lipper's Large Company Equity Manager of the Year award for four consecutive years from 2010 to 2013.

Combined with PIMCO's high active share equity offerings and StocksPLUS strategies, PIMCO's equity solutions now total more than $55 billion in assets under management (as of September 30, 2014).

The seven equity strategies involved in the expanded collaboration between Research Affiliates and PIMCO will cover US Large, US Small, International, International Small, Emerging Markets, Global, and Global ex-US.