NEWPORT BEACH, CA--(Marketwired - Feb 15, 2017) - PIMCO, a leading global investment management firm, will close and liquidate two exchange-traded funds.
PIMCO regularly reviews its product range to ensure it is meeting the requirements of clients in continuing to add value. Following careful consideration the decision has been made to close the following funds: PIMCO Diversified Income Active ETF ("DI") (NYSE: DI) and PIMCO Global Advantage® Inflation-Linked Bond Active ETF ("ILB") (NYSE: ILB).
The last day of trading on NYSE Arca, Inc. ("NYSE Arca") for each liquidating fund is expected to be March 31, 2017. Effective upon the close of business on March 31, 2017, DI and ILB will no longer accept orders for the purchase of Creation Units. Beginning when DI and ILB commence liquidation of their portfolios, the funds may not pursue their respective investment objectives or engage in normal business activities, except for the purposes of winding up their business and affairs, preserving the value of their assets, paying their liabilities, and distributing their remaining assets to shareholders.
The liquidation date for the funds will be on or about April 7, 2017 ("Liquidation Date"). There can be no assurance that there will be a market for the purchase or sale of fund shares during the time between the market close on March 31, 2017 and the Liquidation Date, because fund shares will not be traded on NYSE Arca.
In connection with the liquidations, any shares of DI or ILB outstanding on the Liquidation Date will be automatically redeemed as of the close of business on the Liquidation Date without the imposition of customary redemption transaction fees. In exchange for such shares, proceeds of the liquidation will be distributed in accordance with ordinary settlement times. Although the liquidations are not expected to be taxable events for DI and ILB, for taxable shareholders, the automatic redemption of shares of the funds on the Liquidation Date will generally be treated as a sale that may result in a gain or loss for federal income tax purposes. Instead of waiting until the Liquidation Date, a shareholder may voluntarily sell his or her shares on NYSE Arca (subject to customary transaction fees) until the market close on March 31, 2017.
For additional information about the liquidations, shareholders of DI and ILB may call 888-400-4ETF (888-400-4383).
PIMCO is a leading global investment management firm with offices in 11 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 the investment manager of the funds and is owned by 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 respective fund's prospectus, which may be obtained by contacting your PIMCO representative. Please read the prospectus carefully before you invest.
ETFs are afforded certain exemptions from the Investment Company Act. The exemptions allow, among other things, for individual shares to trade on the secondary market. Individual shares cannot be directly purchased from or redeemed by the ETF. Purchases and redemptions directly with ETFs are only accomplished through Creation Unit aggregations or "baskets" of shares. Shares of an ETF 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.
Premiums (when market price is above NAV) or discounts (when market price is below NAV) reflect the differences (expressed as a percentage) between the NAV and the Market Price of a fund on a given day, generally at the time the NAV is calculated. A discount or premium could be significant. Data in chart format displaying the frequency distribution of discounts and premiums of the Market Price against the NAV can be found for each fund at www.pimcoetfs.com.
Except for the historical information and discussions contained herein, statements contained in this news release constitute forward-looking statements. 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.
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. PIMCO is a trademark of Allianz Asset Management of America L.P. in the United States and throughout the world. PIMCO Investments LLC, distributor, 1633 Broadway, New York, NY 10019, is a company of PIMCO. ©2017, PIMCO.