SOURCE: PIMCO

August 31, 2010 08:00 ET

PIMCO Launches CommoditiesPLUS Short Strategy Fund

New Fund Offers Investors Short Commodity Exposure to Broaden Asset Allocation Solutions

NEWPORT BEACH, CA--(Marketwire - August 31, 2010) -  PIMCO, a leading investment management firm, has launched the PIMCO CommoditiesPLUS™ Short Strategy Fund, an actively managed fund that provides investors short exposure to a broad commodity index tracking prices for energy, precious and industrial metals, livestock and agriculture. The new fund, managed by PIMCO Portfolio Manager and Senior Vice President Nicholas Johnson, is part of PIMCO's continued efforts to expand the asset allocation solutions and portfolio management and diversification tools available to investors.

The PIMCO CommoditiesPLUS Short Strategy Fund offers investors exposure to the inverse return of the broad commodities market as represented by the Dow Jones-UBS Commodity Index Total Return combined with an actively managed fixed income portfolio. Such positions can serve as a deflation hedge or tactical investment amid economic volatility and shifting global growth, although the fund isn't expected to precisely replicate the inverse performance of the index. In addition, the mutual fund structure provides investors with daily liquidity at Net Asset Value (NAV).

"The PIMCO CommoditiesPLUS Short Strategy Fund is part of PIMCO's goal of delivering innovative investment solutions across all asset classes and exposures," said Bob Greer, executive vice president and real return product manager. "It draws on our expertise in commodities investing and seeks to serve as a mutual fund tool for investors who want short exposure or are negative on the outlook for commodities." 

Potential benefits of the PIMCO CommoditiesPLUS Short Strategy Fund include:

  • Efficient inverse exposure to the Dow Jones-UBS Commodity Index Total Return
  • Diversification from traditional asset classes
  • A hedge against potential deflation
  • PIMCO's risk management and commodity investing expertise

The fund's Institutional shares trade with the ticker PCPIX; "P" shares trade with the ticker PCSPX; and no-load "D" shares trade with the ticker PCSDX.

About PIMCO
PIMCO, founded in 1971, is a global asset management firm serving a full range of institutional and retail investors worldwide. Our reputation as one of the world's top asset managers rests on our combination of a long-term investment approach, superior client servicing and cutting edge technology. With offices in ten countries in North America, Europe and Asia, we manage investments across a full spectrum of global financial markets. Our success is built on our goal of consistently providing attractive returns while maintaining a strong culture of risk management and long-term discipline. 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 the funds carefully before investing. This and other information are contained in the fund's prospectus and summary prospectus, if available, which may be obtained by contacting your PIMCO representative. Please read them carefully before you invest or send money.

Commodities contain heightened risk including market, political, regulatory, and natural conditions, and may not be suitable for all investors. The fund will seek exposure to commodities through commodity-linked derivatives and through the PIMCO Cayman Commodity Fund IV Ltd., a wholly-owned subsidiary of the Fund organized under the laws of the Cayman Islands (the "Subsidiary"). The Subsidiary is advised by PIMCO, and has the same investment objective as the Fund. The Subsidiary (unlike the Fund) may invest without limitation in commodity-linked swap agreements and other commodity-linked derivative instruments. Investing in the bond market is subject to certain risks including market, interest-rate, issuer, credit, and inflation risk; investments may be worth more or less than the original cost when redeemed. Mortgage and asset-backed securities may be sensitive to changes in interest rates, subject to early repayment risk, and their value may fluctuate in response to the market's perception of issuer creditworthiness; while generally supported by some form of government or private guarantee there is no assurance that private guarantors will meet their obligations. 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. There is no assurance when investing in short sales that the security necessary to cover a short position will be available. Derivatives and commodity-linked 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. Commodity-linked derivative instruments may involve additional costs and risks such as changes in commodity index volatility or factors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments. Investing in derivatives could lose more than the amount invested. The Fund is non-diversified, which means that it may concentrate its assets in a smaller number of issuers than a diversified fund.

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.

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.

Dow Jones-UBS Commodity Index Total Return is an unmanaged index composed of futures contracts on 19 physical commodities. The index is designed to be a highly liquid and diversified benchmark for commodities as an asset class. It is not possible to invest directly in an unmanaged index.

This material contains the current opinions of the manager and such opinions are subject to change without notice. This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. Pacific Investment Management Company LLC. (C)2010, PIMCO.

PIMCO funds are distributed by Allianz Global Investors Distributors LLC, 840 Newport Center Drive, Newport Beach, CA 92660, (800) 927-4648.

Contact Information

  • Mark Porterfield
    PIMCO - Media Relations
    949-720-6397