RAE™

RAE active equity strategies build on a foundation of smart beta and seek to generate superior risk-adjusted returns.

At a Glance


 

Incorporates additional insights on a foundation of smart beta to add value

Favors high-quality companies with attractive valuations

Recognizes momentum

Diversifies active bets

RAE delivers the benefits of both active investing and smart beta to produce meaningful excess returns.

RAE active equity strategies build on a foundation of smart beta and seek to generate superior risk-adjusted returns. RAE strategies exploit market inefficiencies and incorporate well-researched active insights that cannot be optimally accessed through an index chassis.

Employs disciplined, contrarian investing
Using fundamental measures of company size to sever the link between market capitalization and portfolio weight—and contra-trading against holdings whose market capitalizations have risen relative to their economic size—RAE strategies seek to deliver a return premium versus the market benchmark over the long term.

RAE incorporates additional insights to add value.

By favoring high-quality companies with attractive valuations, being mindful of momentum, and diversifying active risks across the stocks in the portfolio, RAE strategies are well-positioned to maximize risk-adjusted return.

Favors high-quality companies with attractive valuations
A systematic process identifies financially healthy companies and manages the trade-off between quality and value measures.

Recognizes momentum
Price momentum informs the portfolio’s active bets and stock trades.

Diversifies active bets
A balanced approach guards against unnecessary portfolio concentrations.

 


 

Investment Strategies

RAE Fundamental is a broad-market, active equity strategy built on a foundation of smart beta that seeks to deliver market outperformance.

RAE Low Volatility is a low-beta strategy that focuses on reducing downside equity market risk while offering the potential for excess returns over the cap-weighted benchmark.

RAE Fundamental Advantage is a market-neutral strategy that aims to generate absolute returns across market cycles.

RAE Global Long Short is a long–short strategy designed to maximize risk-adjusted returns through carefully managed exposures to equity market risk.

RAE Income is a yield-focused strategy that aims to source sustainable dividend income and long-term capital appreciation.

 


 

Performance & Investment Information

Performance of the RAE strategies is reported by PIMCO.
For information on how to invest in these strategies, click below.

 


 

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