Pimco All Asset’s subadvisor Research Affiliates employs an unconstrained, systematic, valuation-based process to asset allocation and employs a similar approach for many of its underlying equity and alternative strategies. By tilting toward niche areas and deep-value assets, the fund can exhibit prolonged periods of risk-adjusted underperformance, making it difficult to hold for the long term. We are downgrading its Process rating to Average. With this change, its Morningstar Analyst Rating falls to Neutral across the fund’s share classes.
Will PAAIX outperform in future?
Get our overall rating based on a fundamental assessment of the pillars below.
The Process Pillar is our assessment of how sensible, clearly defined, and repeatable PAAIX’s performance objective and investment process is for both security selection and portfolio construction.
The People Pillar is our evaluation of the PAAIX management team’s experience and ability. We find that high-quality management teams deliver superior performance relative to their benchmarks and/or peers.
The Parent Pillar is our rating of PAAIX’s parent organization’s priorities and whether they’re in line with investors’ interests.