Fixed income investment manager PIMCO has decided it will not proceed with the launch of its Australian listed investment trust, the PIMCO Global Income Opportunities Trust.
PIMCO cited insufficient demand due to residual investor concerns around the historical secondary market trading performance of segments of the LIT sector in the local market as the reason for its decision.
Rob Mead, Head of PIMCO Australia and Co-head of Asia-Pacific portfolio management, said: “In the current market environment, the level of demand did not give us confidence that the product would trade strongly in the secondary market. We therefore decided it would be in the best interests of investors not to proceed with the listing.”
Brendon Rodda, Head of Distribution, Global Wealth Management in Australia, said: “This experience highlighted that there is strong demand for this kind of strategy, albeit the preference is for an unlisted structure.
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“PIMCO will therefore focus on expanding our footprint in this sector of the market to bring our expertise in alternative credit solutions to deliver much-needed income to Australian investors.”
PIMCO had announced in mid-March that it was seeking to raise $500 million when it planned to open on March 29. It targeted a distribution of 4.75%-5.75% per annum to be paid monthly.
