Fund Evaluator:

PIMCO Small Cap RAE PLUS Bond Alpha A Overview

PIMCO Small Cap RAE PLUS Bond Alpha A (PCFAX) is an actively managed U.S. Equity Small Value fund. PIMCO launched the fund in 2014.

The investment seeks total return which exceeds that of the Russell 2000® Value Index. The fund will invest, under normal circumstances, at least 80% of its assets in securities of small companies, small company equity-related derivatives, small company equity-related underlying funds, and Fixed Income Instrument investments. It will normally limit its foreign currency exposure (from non-U.S. dollar-denominated securities or currencies) to 35% of its total assets. The fund may also invest up to 10% of its total assets in preferred securities.

About PIMCO Small Cap RAE PLUS Bond Alpha A (PCFAX)

There are 6 members of the management team with an average tenure of 5.94 years: Robert Arnott (2014), Jing Yang (2018), Daniel Hyman (2025), Bryan Tsu (2018), Jim Masturzo (2025), Marc Seidner (2021). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: S&P 500 (TR) (1970) index with a weighting of 100% and Russell 2000 TR USD index with a weighting of 100%. PIMCO Small Cap RAE PLUS Bond Alpha A has 1175 securities in its portfolio. The top 10 holdings constitute 219.0% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

PIMCO Small Cap RAE PLUS Bond Alpha A is part of the Equity global asset class and is within the U.S. Equity fund group. PIMCO Small Cap RAE PLUS Bond Alpha A has 44.5% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 101.0%. There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 117.8% (73.3% domestic bond, 44.5% foreign bond and 0.0% convertible bond). PIMCO Small Cap RAE PLUS Bond Alpha A has -134.2% of the portfolio in cash.

Assets Under Management

The fund has $21 million in total assets, which is below the $415 million average for the Small Value category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

PCFAX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The PIMCO Small Cap RAE PLUS Bond Alpha A expense ratio is high compared to funds in the Small Value category. PIMCO Small Cap RAE PLUS Bond Alpha A has an expense ratio of 1.30%, which is 12% higher than its category average, making the fund expense ratio grade a D. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. PIMCO Small Cap RAE PLUS Bond Alpha A has a portfolio turnover rate of 933%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 129% for the Small Value category.

Recently, in the month of August 2026, PIMCO Small Cap RAE PLUS Bond Alpha A returned 0.5%, which earned it a grade of A, as the Small Value category had an average return of -0.4%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

PIMCO Small Cap RAE PLUS Bond Alpha A has a trailing yield of 4.95%, which is above the 0.77% category average. The fund normally distributes its income quarterly and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

PIMCO Small Cap RAE PLUS Bond Alpha A Grades

Year to date, the fund has returned 19.0%, 0.6 percentage points worse than the category, which translates into a grade of C. The fund has returned 25.1% over the past year (grade of B), 20.8% over the past three years (grade of A) and 10.9% per year over the past five years (grade of A) and 13.1% per year over the past 10 years (grade of A).

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