SOURCE: PIMCO

PIMCO

May 04, 2011 09:00 ET

PIMCO Launches PIMCO Senior Floating Rate Fund

Gives Investors Access to the $600 Billion Market for Bank Loans

NEWPORT BEACH, CA--(Marketwire - May 4, 2011) - PIMCO, a leading global investment management firm, has launched the PIMCO Senior Floating Rate Fund, giving investors access to the attractive yields and portfolio diversification benefits that can be offered in the senior secured floating rate market.

The PIMCO Senior Floating Rate Fund combines PIMCO's proven investment process and global reach with the experience of Executive Vice President and Portfolio Manager Elizabeth "Beth" MacLean, who is based in Newport Beach. Ms. MacLean brings a long record of managing bank loan portfolios. She previously oversaw the bank loan and structured-product areas as a portfolio manager with Lord Abbett. PIMCO has managed bank loans -- senior secured floating rate loans typically tied to the London Interbank Offered Rate, or LIBOR -- since 1996.

"The $600 billion market for bank loans is an important source of attractive spreads and diversification, potentially enhancing yields in a low interest-rate environment and better preparing portfolios for a rise in rates," said Ms. MacLean. "Yet many investors are under-allocated in this important asset class, which also has a very low correlation to other asset classes, making it a true source of diversification within an investor's portfolio."

Institutional shares of the PIMCO Senior Floating Rate Fund will trade under the ticker symbol PSRIX. Additional tickers include "D" shares (PSRDX), "A" shares (PSRZX), "C" shares (PSRWX), "R" shares (PSRRX) and "P" shares (PSRPX).

About PIMCO
PIMCO is a leading global investment management firm, with offices in 10 countries throughout North America, Europe and Asia. Founded in 1971, PIMCO offers a wide range of innovative solutions to help millions of investors worldwide meet their needs. Our goal is to provide 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 S.E., a leading global diversified financial services provider.

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 financial advisor or PIMCO representative, by visiting www.pimco.com/investments or by calling (888)87-PIMCO. Please read them carefully before you invest or send money.

A word about risk: Bank loans are often less liquid than other types of debt instruments. There is no assurance that the liquidation of any collateral from a secured bank loan would satisfy the borrower's obligation, or that such collateral could be liquidated. 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. High-yield, lower-rated, securities involve greater risk than higher-rated securities; portfolios that invest in them may be subject to greater levels of credit and liquidity risk than portfolios that do not. 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. Diversification does not protect a profit or ensure against loss.

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. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission of Pacific Investment Management Company LLC. ©2011, PIMCO

PIMCO advised funds are distributed by PIMCO Investments LLC, 1345 Avenue of the Americas, New York, NY 10105-4800, (888) 87-PIMCO. Prior to 2/14/2011 PIMCO advised funds were distributed by Allianz Global Investors Distributors LLC.

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 statement.

Contact Information

  • Contact:
    Michael Reid
    PIMCO - Media Relations
    212-739-3253