PIMCO RAE Low Volatility PLUS EMG Fund Class A
PLVVX: Weak Emerging Economies Lead to Poor Performance
The PIMCO RAE Low Volatility Plus Emerging Fund Class A (PLVVX) is an alternative mutual fund that mimics the long/short strategy to construct a portfolio with low volatility and high-income securities.
A Detailed Holdings Analysis of PLVVX
PLVVX holds fixed income securities in both long and short positions. The fund also holds derivative forward, future, and swap agreements on government securities, indexes, and currencies.
PLVVX’s Multiple Strategies Bring Low Volatility, Potential Gain
Using multiple strategies helps PLVVX have low volatility in the market with the potential to gain capital appreciation in the market. The first strategy exposes the fund to emerging market economies.
PLVVX Has Fallen Considerably YTD, Underperforming Its Benchmark
Weak economic positions of developed countries have affected the growth of emerging markets. This has resulted in PLVVX falling considerably this year with a negative YTD return of 24%.