All Asset and All Asset
All Authority
PIMCO All Asset
Strategy
A highly differentiated and diversified
tactical asset allocation strategy that
combines the strengths of PIMCO and
Research Affiliates – two sources of
industry-leading investment expertise.
In an era of historically low yields, muted
return prospects and a changed economic
landscape, adhering only to a traditional
60/40 mix of domestic stocks and bonds
may not provide the level of returns
investors need to reach to their goals. It
may also leave investors inadequately
diversified and exposed to inflation risk.
Achieving attractive long-term returns
above inflation with diversification
from mainstream markets, requires a
differentiated approach to asset allocation
across a global opportunity set.
PIMCO All Asset Strategy aims to provide a high level
of total return and diversification potential by investing
across the full spectrum of actively managed PIMCO
funds – tactically managing the mix of traditional,
alternative and inflation-hedging asset classes.
ACHIEVING RETURN AND DIVERSIFICATION POTENTIAL IN
CHALLENGING MARKETS
• Access a globally diversified opportunity set
• Incorporate excess return potential from active PIMCO management
• Tactically allocate using a value-oriented, contrarian investment process
PIMCO All Asset Strategy
3
Access attractive return and diversification potential
Many investors tend to focus their portfolio on the two
traditional portfolio “pillars” – domestic stocks and core
bonds. However, the prospective returns from these asset
classes are likely to be lower than in recent historical
experience. Since the financial crisis, easy monetary policies
have helped propel these markets to substantially higher
valuations and lower yields, which produced strong returns
but have left investors with reduced forward-looking
prospects.
Additionally, core stocks and bonds have a disinflationary bias
– that is they tend to do well when inflation is low or falling.
Stocks tend to outperform in a disinflationary economic
expansion, and bonds benefit from a disinflationary economic
contraction. However, both may be challenged when inflation
trends higher.
To create a more stable investment portfolio, investors
should consider adding a “third pillar” to complement and
counterbalance the return characteristics of core stocks and
bonds. Often considered “satellite” investments, third pillar
assets provide exposure to out-of-mainstream markets,
which may offer a combination of attractive long-term
return potential, lower correlation to mainstream markets
and greater responsiveness to rising inflation. By investing
in a third-pillar-centric strategy such as All Asset, alongside
traditional stock and bond holdings, investors may enhance
their long-term return potential while also improving
portfolio diversification, reducing volatility and adding an
explicit inflation buffer.
THREE PILLARS ARE STRONGER THAN TWO
Traditional balanced strategies are built on two pillars: mainstream stocks and bonds. Third pillar assets can provide higher long-term return potential, help diversify
away from traditional stocks and bonds, and fare well in inflationary environments.
1
FIRST PILLAR
• Participate in economic growth
• Seek returns
• Disinflationary bias
2
SECOND PILLAR
• Provide income
• Reduce volatility
• Disinflationary bias
TRADITIONAL 60/40 ALLOCATION
For illustrative purposes only
Diversifiers
Core Bonds
Core Stocks
INVESTOR PORTFOLIO
3
THIRD PILLAR
• Provide uncorrelated return
• Seek diversification with income
• Inflationary bias
ALL ASSET
4
PIMCO All Asset Strategy
A broadly diversified opportunity set
Rather than focus exclusively on traditional stocks and bonds, PIMCO All Asset Strategy can access the broad spectrum of liquid
asset classes and strategies – a global opportunity set that includes developed and emerging market stocks and bonds, alternative
investments and inflation-related assets. Exposures are obtained by investing across the full suite of actively managed PIMCO
mutual funds and exchange-traded funds (ETFs), which provides exposure to these markets plus the excess return potential of
PIMCO’s active views.
FLEXIBILITY TO DRAW ON THE FULL SPECTRUM ON PIMCO FUNDS
With a broader opportunity set than traditional allocation strategies, PIMCO All Asset tactically allocates assets across a range of different asset classes,
which can shift in and out of favor over time.
3
THIRD PILLAR STRATEGIES
• Credit
• Alternative
• Inflation-Related
• Global Bond
• Emerging Market Bond
• Emerging Market Equity
• Commodities and REITs
2
SECOND PILLAR STRATEGIES
• Short-Term Bond
• U.S. Core Bond
• U.S. Long-Maturity Bond
”Most investors rely on stocks and bonds.
However, the third pillar, the one missing
from many portfolios, addresses the
need for diversifying away from these
mainstream asset classes.”
Robert Arnott
Founder and Chairman of Subadvisor, Research
Affiliates, LLC
1
FIRST PILLAR STRATEGIES
• U.S. Equity
• Developed ex-U.S. Equity
PIMCO All Asset Strategy
5
Tactically allocating with a value-orientated, contrarian focus
The strategy’s investment process is anchored on Research
Affiliates’ central investment thesis – that the largest and
most persistent active investment opportunity is long-term
mean reversion (prices and returns eventually move back
towards the mean or average). As such, the strategy pursues
higher returns when asset class valuations are fundamentally
attractive and shifts away from popular asset classes when they
are overvalued. This value-oriented, contrarian approach is the
defining style of the All Asset strategy, and the culmination
of portfolio manager Robert Arnott’s 30 years of experience
managing tactical asset allocation strategies.
driven process that relies on a number of essential building
blocks, including: the long-term real return potential of
each asset class; the excess return, or alpha, potential of the
underlying PIMCO funds over their benchmarks; equity and
bond risk premiums; and proprietary active asset allocation
models.
Additionally, the Research Affiliates team meets regularly
with PIMCO’s investment professionals to review and
potentially incorporate qualitative factors that cannot be
modeled, such as regulatory changes, policymaker decisions
and geopolitical events.
In determining the strategy’s allocation, Mr. Arnott and his
expert team at Research Affiliates use a disciplined, model-
THE RESEARCH AFFILIATES TEAM
The strategies are tactically managed by an industry-leading global asset allocation firm that is built on a strong research base and led by Robert Arnott and
Christopher Brightman.
Real
assets
Robert Arnott
Christopher Brightman, CFA
Founder and Chairman
of Research Affiliates, LLC
Chief Investment Officer
of Research Affiliates, LLC
6
PIMCO All Asset Strategy
Two levels of demonstrated investment expertise
PIMCO All Asset Strategy delivers two levels of expert management. The underlying funds are managed by PIMCO and benefit
from our extensive global resources and time-tested investment process. Asset allocation decisions are managed by Research
Affiliates, LLC, a leading tactical asset allocation firm founded by Robert Arnott.
PIMCO’S ACTIVE MANAGEMENT
RESEARCH AFFILIATES’ TACTICAL ALLOCATION
PIMCO – a global leader in active investment management
across asset classes – has a strong history of providing
attractive risk-adjusted returns and pursuing excess returns
above market indexes while managing risk. Our investment
process is anchored in a disciplined focus on macroeconomic
and corporate fundamentals, which provides an important
backdrop against which we identify opportunities and risks
and implement long-term investment strategies. This top-down
approach is complemented by the bottom-up, sector-specific
expertise of more than 230 portfolio managers and
115 analysts – one of the deepest research teams in the
business.
Asset allocation is managed by the funds’ subadvisor, Research
Affiliates, LLC. Founded by Robert Arnott in 2002, Research
Affiliates is a global leader in research-driven asset allocation
and smart beta strategies with more than 50 investment
professionals. Mr. Arnott has authored over 100 articles for
journals, such as the Financial Analysts Journal, the Journal of
Portfolio Management and the Harvard Business Review, and
served as editor of the Financial Analysts Journal. In 2002, he
established Research Affiliates to develop robust investment
products, including asset allocation models, and partner with
leading firms like PIMCO to implement these products for the
benefit of investors.
Two ways to access PIMCO All Asset
PIMCO All Asset is available in two strategies. Both employ the same investment philosophy and express the same asset
allocation views; however, their objectives and investment parameters differ slightly:
PIMCO ALL ASSET
PIMCO ALL ASSET ALL AUTHORITY
Seeks to achieve three key goals for investors:
Seeks to achieve three key goals for investors:
• Long-term returns of 5% above the Consumer Price
Index (CPI)
• Long-term returns of 6.5% above the Consumer Price
Index (CPI)
• Diversification away from domestic stocks, particularly
in bear markets
• Diversification away from domestic stocks, particularly
in bear markets
• Inflation-hedging potential
• Inflation-hedging potential
In pursuit of these goals, the strategy:
In pursuit of these goals, the strategy:
• Tactically allocates across actively managed PIMCO
mutual funds and ETFs
• Tactically allocates across actively managed PIMCO mutual
funds and ETFs
• May use leverage, up to 1.5x net assets, to amplify attractive
exposures
• May short the S&P 500 Index, to amplify diversification and
control total risk
PIMCO All Asset Strategy
7
Incorporating PIMCO All Asset and All Asset
All Authority into a portfolio
Depending on an investor’s objectives and tolerance for risk, PIMCO All Asset and All Asset All Authority strategies can be
incorporated into a portfolio in a variety of ways. These highly diversified strategies can serve as global tactical asset allocation
strategies that complement traditional stock/bond-centric approaches. The strategies’ focus on generating high real returns
through an emphasis on inflation-sensitive third pillar assets also makes them attractive within a real asset inflation-hedging
bucket. Additionally, because the strategies employ a benchmark agnostic approach, seeking long-term absolute returns with low
equity beta, they can also serve as a key component in a liquid alternatives allocation.
ROLE IN A PORTFOLIO
Complement to traditional
stock/bond-centric portfolios
Real return-oriented
multi-asset strategy
Fixed
income
Real
assets
ALL
ASSET
Fixed
income
Equities
Alternatives
May serve as a diversifying,
tactical allocation strategy to
complement traditional stock/
bond-centric portfolios
ALL
ASSET
Liquid alternative
diversifying return driver
Fixed
income
Equities
al
Resets
as
Alternatives
May serve as an inflation
hedging, real return-oriented
multi-asset solution
Displayed as sample portfolio construction models and should not be construed as investment advice.
Real
assets
Equities
es
iv
t
a
rn
te
l
A
ALL
ASSET
May serve as a diversifying return
driver in a liquid alternatives bucket
PIMCO All Asset Fund symbols
ABOUT PIMCO
A shares
PASAX
C shares
PASCX
D shares
PASCX
P shares
PALPX
R shares
PATRX
Inst. shares
PAAIX
Admin. shares
PAALX
PIMCO All Asset All Authority Fund symbols
PIMCO is a leading global investment
management firm, with offices in 11
countries throughout the Americas,
Europe and Asia. Founded in 1971,
PIMCO offers a wide range of innovative
strategies to help millions of investors
worldwide meet their needs. Our goal
is to provide attractive returns while
maintaining a strong culture of risk
management and long-term discipline.
A shares
PAUAX
C shares
PAUCX
FOR MORE INFORMATION
D shares
PAUDX
P shares
PAUPX
Inst. shares
PAUIX
For more information about PIMCO All
Asset Strategy, talk to your investment
professional, visit pimco.com or call us
at 888.87.PIMCO.
pimco.com
Investors should consider the investment objectives, risks, charges and expenses of the funds carefully
before investing. This and other information are contained in the fund’s prospectus and summary
prospectus, if available, which may be obtained by visiting pimco.com or by contacting your PIMCO
representative. Please read them carefully before you invest or send money.
No part of this material may be reproduced in any form, or referred to in any other publication, without express
written permission. PIMCO is a trademark of Allianz Asset Management of America L.P. in the United States and
throughout the world. PIMCO Investments LLC, distributor, 1633 Broadway, New York, NY 10019, is a company
of PIMCO. ©2017, PIMCO
PB073_50196
CMR2017-0327-258989
A word about risk: The Fund invests in other PIMCO funds and performance is subject to underlying investment
weightings which will vary. The cost of investing in a fund that invests in other funds will generally be higher than
the cost of investing in a fund that invests directly in individual stocks and bonds. The fund will seek exposure to
commodities through commodity-linked derivatives and through a wholly owned subsidiary of the Fund organized
under the laws of the Cayman Islands (the “Subsidiary”). The Subsidiary is advised by PIMCO, and has the same
investment objective as the Fund. The Subsidiary (unlike the Fund) may invest without limitation in commodity-linked
swap agreements and other commodity-linked derivative instruments. Investing in foreign denominated and/or
domiciled securities may involve heightened risk due to currency fluctuations, and economic and political risks,
which may be enhanced in emerging markets. Commodities contain heightened risk including market, political,
regulatory, and natural conditions, and may not be suitable for all investors. Inflation-linked bonds (ILBs) issued
by a government are fixed-income securities whose principal value is periodically adjusted according to the rate of
inflation; ILBs decline in value when real interest rates rise. Treasury Inflation-Protected Securities (TIPS) are ILBs
issued by the U.S. Government. Derivatives and commodity-linked derivatives may involve certain costs and
risks such as liquidity, interest rate, market, credit, management and the risk that a position could not be closed
when most advantageous. Commodity-linked derivative instruments may involve additional costs and risks such as
changes in commodity index volatility or factors affecting a particular industry or commodity, such as drought, floods,
weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments.
Investing in derivatives could lose more than the amount invested. The Fund is non-diversified, which means that it
may concentrate its assets in a smaller number of issuers than a diversified fund. The value of fixed income securities
contained in the fund can be impacted by changes in interest rates. Bonds with longer durations tend to be more
sensitive and more volatile than securities with shorter durations; bond prices generally fall as interest rates rise.