SOURCE: PIMCO

November 17, 2009 08:00 ET

PIMCO Launches Enhanced Short Maturity Strategy Fund, an Actively Managed ETF

'MINT' Accesses PIMCO's Investment Process, Aiming to Help Cash Investors Earn Better Yields

NEWPORT BEACH, CA--(Marketwire - November 17, 2009) - PIMCO, a leading global investment management firm, has launched the PIMCO Enhanced Short Maturity Strategy Fund (NYSE: MINT), an actively managed Exchange Traded Fund (ETF) that employs the firm's proven investment process and cash management expertise. The new fund aims to preserve capital while also looking to offer more attractive yields than investors earn from money market funds. MINT will be managed by PIMCO Executive Vice President Jerome Schneider, deputy head of the firm's money market desk.

The post-crisis market environment has increased the need for suitable cash investments, as many individuals, corporations, pensions and other institutions are insisting on stringent risk controls and ready access to their cash -- yet paying the price in the form of money market returns that hover near zero. MINT may invest in similar high quality short-term instruments as money markets, as well as longer maturity bonds and a broader universe of investment-grade fixed income securities. This strategy, along with the transparency and intraday liquidity of the ETF format, makes MINT a potentially attractive solution for investors who want to preserve capital while seeking higher yields.

"Investors are holding a lot of cash, and are compelled to look for something beyond the near-zero yields that money market funds offer," said Mr. Schneider. "MINT aims to maximize investors' current income by accessing PIMCO's discipline, risk management and market expertise within a highly liquid and transparent ETF."

PIMCO's ETF business is a natural step in the firm's evolution as a provider of global investment solutions, benefitting from the discipline and expertise that have been a hallmark of the firm's nearly four decades as a premier investment manager. MINT is the firm's first actively managed ETF and looks to benefit from the firm's secular investment process, which considers the top-down financial, economic, political and social trends that exert the most substantial influence on investments, as well as bottom-up credit analysis to carefully select securities.

About PIMCO

PIMCO, founded in 1971, is a global asset management firm that manages investments for an array of clients, including retirement and other assets that reach more than 8 million people in the U.S. and millions more around the world. Our clients include state, municipal and union pension and retirement plans whose beneficiaries come from all walks of life, from educators to healthcare workers to public safety employees. We have a substantial individual investor client base, and work in partnership with financial intermediaries such as Registered Investment Advisors, broker/dealers, trust banks and insurance companies. We are also advisors and asset managers to central banks, corporations, universities, foundations and endowments. With offices in North America, Europe, Asia and Australia, we manage investments across a full spectrum of global financial markets. PIMCO is owned by Allianz Global Investors, a subsidiary of the Munich-based Allianz Group, a leading global insurance company.

Investors should consider the investment objectives, risks, charges and expenses of this Fund carefully before investing. This and other information are contained in the Fund's prospectus, which may be obtained by contacting your PIMCO representative. Please read the prospectus carefully before you invest or send money.

Shares of the Fund are not individually redeemable and may only be acquired from and redeemed to the Fund in Creation Units. Investors may buy or sell individual shares in secondary market transactions that do not involve the ETF. Shares of the Funds are bought and sold at market price (not NAV). Brokerage commissions will reduce returns. Investment policies, management fees and other information can be found in the individual ETF's prospectus. The market price is determined using the midpoint between the highest bid and the lowest offer on the listing exchange, as of the time that the Fund's NAV is calculated.

An investment in an ETF involves risk, including the loss of principal. Investment return, price, yield, and NAV will fluctuate with changes in market conditions. Investments may be worth more or less than the original cost when redeemed. Corporate debt securities are subject to the risk of the issuer's inability to meet principal and interest payments on the obligation and may also be subject to price volatility due to factors such as interest rate sensitivity, market perception of the creditworthiness of the issuer and general market liquidity. Investing in foreign denominated and/or domiciled securities may involve heightened risk due to currency fluctuations, and economic and political risks, which may be enhanced in emerging markets. Derivatives may involve certain costs and risks such as liquidity, interest rate, market, credit, management and the risk that a position could not be closed when most advantageous. Investing in derivatives could lose more than the amount invested.

The value of most bond funds and fixed income securities are impacted by changes in interest rates. Bonds and bond funds with longer durations tend to be more sensitive and more volatile than securities with shorter durations; bond prices generally fall as interest rates rise. Duration is the measure of a bond's price sensitivity to interest rates and is expressed in years.

The credit quality of a particular security or group of securities does not ensure the stability or safety of the overall portfolio.

Except for the historical information and discussions contained herein, statements contained in this news release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, including the performance of financial markets, the investment performance of PIMCO's sponsored investment products and separately managed accounts, general economic conditions, future acquisitions, competitive conditions and government regulations, including changes in tax laws. Readers should carefully consider such factors. Further, such forward-looking statements speak only on the date at which such statements are made. PIMCO undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements.

ETF Shares are offered by Allianz Global Investors Distributors LLC, 840 Newport Center Drive, Newport Beach, CA, (888) 400-4ETF (888-400-4383)

Contact Information

  • Contact:
    Steven Vames
    PIMCO
    Media Relations
    212-739-3598