NEWPORT BEACH, CA--(Marketwired - Aug 15, 2014) - PIMCO, a leading global investment management firm, intends to launch three new actively managed exchange-traded funds ("ETFs") -- the PIMCO Fundamental IndexPLUS AR Active ETF, the PIMCO International Fundamental IndexPLUS AR Strategy Active ETF and the PIMCO Foreign Bond Active ETF (US Dollar Hedged).
Bill Gross, Chief Investment Officer, will manage the Fundamental IndexPLUS AR Active ETF, Saumil Parikh, Managing Director and Generalist Portfolio Manager, will manage the International Fundamental IndexPLUS AR Strategy Active ETF and Scott Mather, Deputy Chief Investment Officer and head of global portfolio management, will manage Foreign Bond Active ETF (US Dollar Hedged).
The two Fundamental IndexPLUS AR portfolios are actively managed equity strategies that seek total return in excess of their respective benchmark indexes, the S&P 500 and MSCI EAFE. The strategies provide exposure to a custom, fundamentally weighted stock portfolio created by Research Affiliates, and seek additional return potential and diversification benefits by investing in an absolute return-oriented bond portfolio.
Additionally, PIMCO will close four ETFs. The four ETFs, which will be liquidated on or about October 1 ("Liquidation Date") are: the PIMCO Australia Bond Index ETF (AUD), the PIMCO Canada Bond Index ETF (CAD), the PIMCO Germany Bond Index ETF (BUND), and the PIMCO Build America Bond ETF (BABZ).
The last day of trading on NYSE Arca, Inc. ("NYSE Arca") for each liquidating fund is expected to be September 26, 2014. There can be no assurance that there will be a market for the purchase or sale of fund shares during the time between the market close on September 26, 2014 and the Liquidation Date, because fund shares will not be traded on NYSE Arca.
Effective upon the close of business on September 26, 2014, AUD, CAD, BUND and BABZ will no longer accept orders for the purchase of Creation Units. Beginning when the Liquidating Funds commence liquidation of their portfolio, each Liquidating Fund may not pursue its investment objective or engage in normal business activities, except for the purpose of winding up its business and affairs, preserving the value of its assets, paying its liabilities, and distributing its remaining assets to shareholders.
In connection with the Liquidation, any shares of AUD, CAD, BUND and BABZ outstanding on the Liquidation Date will be automatically redeemed as of the close of business on the Liquidation Date without the imposition of customary redemption transaction fees. Although the Liquidation is not expected to be a taxable event for AUD, CAD, BUND and BABZ, for taxable shareholders the automatic redemption of shares of AUD, CAD, BUND and BABZ on the Liquidation Date will generally be treated as a sale that may result in a gain or loss for federal income tax purposes. Instead of waiting until the Liquidation Date, a shareholder may voluntarily sell his or her shares on NYSE Arca (subject to customary transaction fees) until the market close on September 26, 2014.
For additional information about the Liquidation, shareholders of AUD, CAD, BUND and BABZ may call 888-400-4ETF (888-400-4383).
PIMCO is a leading global investment management firm, with offices in 12 countries throughout North America, Europe and Asia. Founded in 1971, PIMCO offers a wide range of innovative solutions to help millions of investors worldwide meet their needs. Our goal is to provide attractive returns while maintaining a strong culture of risk management and long-term discipline. PIMCO is owned by Allianz S.E., a leading global diversified financial services provider.
Investors should consider the investment objectives, risks, charges and expenses of the funds carefully before investing. This and other information are contained in the respective fund's prospectus, which may be obtained by contacting your PIMCO representative. Please read the prospectus carefully before you invest.
ETFs are afforded certain exemptions from the Investment Company Act. The exemptions allow, among other things, for individual shares to trade on the secondary market. Individual shares cannot be directly purchased from or redeemed by the ETF. Purchases and redemptions directly with ETFs are only accomplished through Creation Unit aggregations or "baskets" of shares. Shares of an ETF are bought and sold at market price (not NAV). Brokerage commissions will reduce returns. Investment policies, management fees and other information can be found in the individual ETF's prospectus.
This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. PIMCO and YOUR GLOBAL INVESTMENT AUTHORITY are trademarks or registered trademarks of Allianz Asset Management of America L.P. and Pacific Investment Management Company LLC, respectively, in the United States and throughout the world. ©2014, PIMCO.
PIMCO Investments LLC, distributor, 1633 Broadway, New York, NY, 10019 is a company of PIMCO.
Except for the historical information and discussions contained herein, statements contained in this news release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, including the performance of financial markets, the investment performance of PIMCO's sponsored investment products and separately managed accounts, general economic conditions, future acquisitions, competitive conditions and government regulations, including changes in tax laws. Readers should carefully consider such factors. Further, such forward-looking statements speak only on the date at which such statements are made. PIMCO undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statement.