PIMCO Launches Two Active Fixed Income ETFs
Newport Beach, California (June 22, 2023) – PIMCO, a global leader in active fixed income with expertise across public and private markets, is expanding its exchange-traded fund offerings with the launch of two active fixed income ETFs that aim to harvest attractive yields for investors interested in historic opportunities in credit markets as well as in short-term U.S. government securities, respectively.
The PIMCO Multisector Bond Active ETF (PYLD) is a benchmark-agnostic fund that will invest in multi-sector fixed income across the global bond market with an emphasis on investments that are strategic, or long-term in nature, to maximize yield potential while seeking long term capital appreciation. The fund aims to have diversified exposure to credit markets such as investment-grade and high-yield bonds, as well as other assets.
PYLD will be managed by a team of portfolio managers: Dan Ivascyn, PIMCO Managing Director and Group Chief Investment Officer; Sonali Pier, Managing Director; Amit Arora, Executive Vice President; Jason Duko, Executive Vice President; Mukundan Devarajan, Executive Vice President; and Alfred Murata, Managing Director.
“The dramatic repricing of fixed income markets over the last 18 months is the beginning of what we believe is a secular shift in global markets in which a less certain, less synchronized world creates tremendous opportunities for flexible, multi-sector investors with a long-term investment horizon,” says Mr. Ivascyn. “The rapid rise in short-term rates, meanwhile, has also disrupted traditional ways of investing cash as investors look to capture more yield.”
The PIMCO Ultra Short Government Active ETF (BILZ) will invest in high quality U.S. government related short-term assets and cash in an effort to maximize yield while also aiming to preserve capital for investors who are looking to move out of traditional cash investments.
BILZ will be managed by a team of portfolio managers: Jerome Schneider, Managing Director; Andrew Wittkop, Executive Vice President; William Martinez, Senior Vice President; and Geoff Miles, Vice President.
“These two additions to our ETF line-up reflect our patient and deliberate approach to creating new products,” says Greg Hall, Managing Director and Head of PIMCO US Global Wealth Management. “Our philosophy is to introduce ETF solutions where we see long-term investment opportunities, and where we are confident we can add value for our clients.”
Investors can trade PYLD and BILZ on NYSE ARCA, effective June 22nd.
