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2 Ways to Tap Into Research Affiliates' Real-Return Strategy

PIMCO All Asset All Authority comes with more flexibility and a higher price tag but hasn't resulted in higher returns or less volatility than PIMCO All Asset.

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Jeff Holt: Gold-rated PIMCO All Asset (PASAX) and Bronze-rated PIMCO All Asset All Authority (PAUAX) are built on the same foundation. Research Affiliates subadvises both of these funds and invests them in a deep lineup of more than 40 PIMCO funds. Both funds have a real-return focus and have a lot of flexibility to shift to asset classes with attractive real yields. Currently, emerging-markets equity, debt, and currency play a prominent role in both funds.

Investors should be aware of a couple key differences between the two, though. PIMCO All Asset All Authority may use leverage to amplify the positions by borrowing up to one third of the portfolio's assets. Also, while the two hold nearly all of the same underlying funds, All Authority also holds a fund that shorts U.S. stocks.

Jeff Holt does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.