Pimco has put forward a filing to America's market watchdog the Securities & Exchange Commission, for the launch of an exchange traded fund version of its Total Return fund run by star manager Bill Gross.
Pimco has put forward a filing to America’s market watchdog the Securities & Exchange Commission, for the launch of an exchange traded fund version of its Total Return fund run by star manager Bill Gross.
CNBC reported the plans today.
The Pimco Total Return Exchange-Traded fund will invest at least 65% of its total assets in a diversified portfolio of fixed income instruments of varying maturities.
Most of its investments will be high quality bonds, but it will also be able to invest 10% of its assets in sub-investment grade paper and 15% in emerging markets. Foreign currency exposure will be capped.
It is a further extension of Pimco’s activities, as the fixed income specialists within Allianz Global Investors also branched recently into equity investment programs.
The unit hit headlines most recently when Gross warned Washington it ultimately risked default if it did not reduce public expenditure to repair the balance sheet.
Subsequently, Standard & Poor’s attached a negative outlook to the AAA credit rating it assigns the US.