Active fixed income manager PIMCO has launched four new active exchange-traded funds in Australia, designed to provide investors with institutional-grade investment solutions and access to global fixed income opportunities.
The company said that the introduction of the PIMCO Global Bond Active ETF (PGBF), PIMCO Diversified Fixed Interest Active ETF (PDFI), PIMCO Global Credit Active ETF (PCRD), and PIMCO Australian Bond Active ETF (PAUS) aims to democratize active fixed income investing in Australia, leveraging PIMCO’s extensive experience and deep understanding of the fixed income market.
“As one of Australia’s biggest fund managers, PIMCO is excited to introduce these active fixed income ETFs that will fill critical gaps in the market and meet the evolving needs of our clients,” said Sam Watkins, Executive Vice President and Head of PIMCO’s business in Australia and New Zealand. “PIMCO has been in Australia for more than 20 years, and we look forward to expanding our ETF offerings in the future to meet the evolving needs of our clients.”
PIMCO launched the world’s first active fixed income ETF in 2008 with the introduction of MINT, which is currently PIMCO’s largest ETF with approximately US$11.8 billion in assets under management and celebrated its 15th anniversary in 2024.
The company said the launch of these ETFs comes at a pivotal time for the Australian ETF industry, which has seen significant growth and innovation over the past two decades.
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More details on the offerings are as follows:
The PIMCO Global Bond Active ETF (PGBF) aims for maximum total return while preserving capital by investing in high-quality global fixed interest securities. With a multi-faceted strategy that includes macro analysis, security selection, active duration, and currency management, PGBF focuses on government, corporate, and mortgage securities, providing a core bond holding with low volatility and stable returns, leveraging PIMCO’s extensive fixed-income expertise.
The PIMCO Australian Bond Active ETF (PAUS) seeks maximum total return by investing in fixed interest securities primarily in Australian or New Zealand currencies. Employing a similar strategy, PAUS focuses on government, semi-government, corporate, and mortgage securities, designed to stabilize portfolio returns and meet core bond investment expectations while adapting to changes in the Australian credit market and interest rates.
The PIMCO Diversified Fixed Interest Active ETF (PDFI) offers a diversified portfolio of Australian and global bonds, serving as a core fixed income allocation. This ETF aims to provide income, capital gains, diversification, and a hedge against volatility in higher-risk asset classes, predominantly investing in government, corporate, mortgage, and other global fixed interest securities.
The PIMCO Global Credit Active ETF (PCRD) seeks attractive returns through PIMCO’s macroeconomic insights and bottom-up credit research. Aiming for higher total return potential than core government bonds and cash, PCRD offers capital preservation and diversification as a high-quality complement to traditional bond holdings.
Investors can trade PGBF, PDFI, PCRD, and PAUS on Cboe Australia, effective February 5, 2025.
