Research Affiliates Highly Confident in PIMCO’s Team

NEWPORT BEACH, Calif.--()--Research Affiliates, LLC (RA) is a subadvisor to over $61 billion in assets for PIMCO in the All Asset and All Asset All Authority strategies, and partners with them on over $30 billion in RAFI®-based products that combine PIMCO’s portable alpha expertise with RA’s RAFI®, Fundamental Index®, Fundamental Advantage and Fundamental Low Volatility concepts. Given the broad scope of the relationship, RA Chairman Robert Arnott wanted to share his thoughts on the recent resignation of Bill Gross from PIMCO.

“I look forward to PIMCO’s investors and our own friends in the industry seeing first-hand the exceptional depth of the team that we already know well. It’s a remarkable team and organization; I look forward to working with them for many years to come.”

"Since 2002, our research and investment management teams have worked very closely with Bill and the entire PIMCO portfolio management team. While Bill’s decision may come as a surprise, I think it’s important to recognize the remarkable depth of the PIMCO team. PIMCO has well over 200 portfolio managers, and over 2000 employees, worldwide. I treasure the interaction we have with their deep team of talented and committed professionals.

"We were early investors with Daniel Ivascyn, having invested in his strategies in March 2007, which was at the launch of the Income strategy that earned him the Morningstar Manager of the Year in 2013. Mark Kiesel, another Morningstar Manager of the Year in 2012, was a critical part of our ability to invest in credit during the height of the Global Financial Crisis. Given the real return focus of the All Asset strategies, we often obtain significant exposure to commodities, TIPS and REITs, through portfolios managed by Mihir Worah. Scott Mather manages, with distinction, the global strategies and the underlying collateral for several of the RAFI 'portable alpha' strategies.

"Understanding the track record and systematic exposures for each fund that we use in the All Asset strategies is an important part of our investment process. Today, the opportunity set includes almost 50 PIMCO mutual funds. PIMCO’s active management has been a key component to the strategies’ overall performance over the past dozen years across a broad range of different products, asset classes and market environments. Many, many people are responsible for that track record.

"PIMCO is a deep and balanced organization, as anyone familiar with the record of these portfolio managers can readily attest. My team and I have seen repeated evidence of this over the past 12 years. We believe the PIMCO team has done a phenomenal job across the funds that we use.

"I look forward to PIMCO’s investors and our own friends in the industry seeing first-hand the exceptional depth of the team that we already know well. It’s a remarkable team and organization; I look forward to working with them for many years to come.”

For specific questions on any Research Affiliates sub-advised strategy at PIMCO, please contact your PIMCO representative.

About Research Affiliates, LLC

Research Affiliates, LLC is a global leader in smart beta and asset allocation strategies. Dedicated to creating value for investors, we seek to have a profound impact on the global investment community through our insights and products.

The firm is built on a strong research base, led by Rob Arnott and Jason Hsu. We deliver solutions in partnership with some of the world's leading financial institutions, who offer mutual funds, ETFs, separately managed accounts, and/or commingled accounts. We also work directly with institutional clients.

Research Affiliates was founded in 2002 and is based in Newport Beach, California.

As of June 30, 2014, about $181 billion in assets are managed worldwide using investment strategies developed by Research Affiliates.

More information on Research Affiliates is available at www.researchaffiliates.com.

Fundamental Index®, the non-capitalization method for creating and weighting an index of securities, is patented and patent-pending proprietary intellectual property of Research Affiliates, LLC. (See all applicable US patent and pending patent disclosures located at http://www.researchaffiliates.com/Pages/legal.aspx, which are fully incorporated herein.)

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Media:
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Tucker Hewes, (212) 207-9451
tucker@hewescomm.com

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