Pimco Adds an Active Commodity Fund
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Thursday, May 11, 2023

Pimco Adds an Active Commodity Fund

The folks at a $1.8-trillion-AUM (as of March 31), 3,445-plus-employee fund firm are rolling out a new active commodity ETF.

Yesterday, Greg Sharenow, managing director and portfolio manager at Allianz's Pimco [profile], unveiled the launch of the Pimco Commodity Strategy Active Exchange-Traded Fund (CMDT on the NYSE Arca). The new fund is a series of the Pimco ETF Trust.

CMDT's inception date was Tuesday, and it comes with an expense ratio of 64 basis points (after taking into 52 bps of promised fee waivers). As of yesterday, the fund had $4.992 million in AUM.

Pacific Investment Management Company LLC (Pimco) serves as CMDT's investment advisor, and Pimco Investments LLC serves as distributor. The new fund's PM team includes two managing directors (Jerome Schneider and Sharenow) and three executive vice presidents (Andrew DeWitt, Lewis Hagedorn, and Andrew Wittkop).

Sharenow puts the launch of CMDT in the context of investors' concerns about "persistent elevated inflation."

"Historically commodities have acted as an effective hedge against inflation, and in today's volatile markets we believe the asset class also is a compelling option for investors looking for a well-diversified portfolio," Sharenow states.

The new fund's other service providers include: Dechert LLP as counsel; PricewaterhouseCoopers LLP as independent accounting firm; Securities Finance Trust Company as securities lending agent; and State Street Bank and Trust Company as custodian and transfer agent.

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