Bond giant Pimco, which dove into the increasingly crowded ETF pool in June, added two ETFs to its lineup on Monday, bringing its total ETF offerings to seven. The Pimco 3-7 Year U.S. Treasury Index Fund, which covers the key rate segments of Treasury securities, and the Pimco 25+ Year Zero Coupon U.S. Treasury Index Fund, which is directed at investors seeking long duration or a high level of interest rate sensitivity, both carry expense ratios of 15 basis points.
“Along with our existing ETFs, these new funds offer access to a broad range of Treasury maturities for investors who prefer indexed strategies and the ease of trading ETFs,” Vineer Bhansali, Pimco managing director and portfolio manager for the new funds, stated in a company press release.
The launches mark PIMCO's latest efforts to broaden its range of Treasury note and bond maturities offerings – a strategy mirrored by numerous other firms that have been launching ETFs recently.
A company spokesperson told The MFWire that Pimco has plans to add more ETFs in the future as investor demand increases. The company's currently trading ETFs include the 1-3 year, 3-7 year and 7-15 year U.S. Treasury Index Funds and on the TIPS side, the 1-5 Year, Broad, and 15+ Year U.S. TIPS Index Funds.
Company Press Release
PIMCO ETFs Completes Spectrum of Key U.S. Treasury Offerings With
Launch of PIMCO 3-7 Year U.S. Treasury Index Fund
Firm Also Adds PIMCO 25+ Year Zero Coupon U.S. Treasury Index Fund
to Lineup of ETF Solutions
NEWPORT BEACH, CA--(Marketwire - November 02, 2009) - PIMCO, a leading global investment management firm, has launched two new Exchange Traded Funds (ETFs) to give investors further access to the firm's expertise in managing U.S. Treasury securities. The PIMCO 3-7 Year U.S. Treasury Index Fund (NYSE: FIVZ ) completes the firm's lineup of ETFs that cover the key rate segments of Treasury securities. The new PIMCO 25+ Year Zero Coupon U.S. Treasury Index Fund (NYSE: ZROZ ) offers an ETF solution for investors seeking long duration, or a high level of interest rate sensitivity.
"These newest offerings highlight PIMCO's ongoing commitment to introducing well-engineered ETF solutions that look to meet the needs of investors," said Vineer Bhansali, PIMCO managing director and portfolio manager for the new funds. "Along with our existing ETFs, these new funds offer access to a broad range of Treasury maturities for investors who prefer indexed strategies and the ease of trading ETFs."
With the addition of the PIMCO 3-7 Year U.S. Treasury Index Fund to existing offerings in the 1-3 year and 7-15 year ranges, PIMCO now offers ETFs that span a broad range of Treasury note and bond maturities. This coverage of key Treasury rates is designed to give investors the tools needed to execute yield curve strategies, position for expected changes in interest rates and economic conditions, or maintain long-term allocations toward liquid, high-quality U.S. government securities. The medium-maturity Treasuries in the 3-7 year fund, in aggregate, offer exposure to the five-year segment of the curve, have low volatility relative to broader bond markets, and low default risk as Treasuries are backed by the full faith and credit of the U.S. Government.
The PIMCO 25+ Year Zero Coupon U.S. Treasury Index Fund aims to enable investors to capitalize on expected interest rate movements or efficiently manage long-term interest rate-sensitive liabilities by offering a high duration, or sensitivity to interest rate movements, without the use of financial leverage. The fund's benchmark also features quarterly index rebalancing scheduled to match the fund's dividend distributions, which may reduce portfolio turnover.
About PIMCO
PIMCO, founded in 1971, is a global asset management firm that manages investments for an array of clients, including retirement and other assets that reach more than 8 million people in the U.S. and millions more around the world. Our clients include state, municipal and union pension and retirement plans whose beneficiaries come from all walks of life, from educators to healthcare workers to public safety employees. We have a substantial individual investor client base, and work in partnership with financial intermediaries such as Registered Investment Advisors, broker/dealers, trust banks and insurance companies. We are also advisors and asset managers to central banks, corporations, universities, foundations and endowments. With offices in North America, Europe, Asia and Australia, we manage investments across a full spectrum of global financial markets. PIMCO is owned by Allianz Global Investors, a subsidiary of the Munich-based Allianz Group, a leading global insurance company.
Investors should consider the investment objectives, risks, charges and expenses of this Fund carefully before investing. This and other information are contained in the Fund's prospectus, which may be obtained by contacting your PIMCO representative. Please read the prospectus carefully before you invest or send money.
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 statements.
PIMCO Funds are distributed by Allianz Global Investors Distributors LLC, 840 Newport Center Drive, Newport Beach, CA 92660, (800) 927-4648.
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