SOURCE: PIMCO

PIMCO

February 28, 2014 17:15 ET

PIMCO to Liquidate the PIMCO Broad U.S. Treasury Index Exchange-Traded Fund

Proceeds to Be Distributed to Shareholders in March

NEWPORT BEACH, CA--(Marketwired - Feb 28, 2014) -  PIMCO, a leading global investment management firm, announced today that the PIMCO Broad U.S. Treasury Index Exchange-Traded Fund (Ticker: TRSY) will be liquidated (the "Liquidation") on or about March 14, 2014 ("Liquidation Date"). The Board of Trustees of PIMCO ETF Trust determined that the Liquidation was in the best interest of TRSY and its shareholders.

It is expected that March 10, 2014 will be TRSY's last full day of trading on NYSE Arca, Inc. ("NYSE Arca"). Pursuant to this schedule, NYSE Arca is expected to halt trading in shares of TRSY before the market open on March 11, 2014. During the time between market open on March 11, 2014 and the Liquidation Date, because Fund shares will not be traded on NYSE Arca, there can be no assurance that there will be a market for the purchase or sale of Fund shares.

Effective upon the close of business on March 10, 2014, TRSY will no longer accept orders for the purchase of Creation Units. To the extent practicable, TRSY intends to continue to pursue its investment objective and engage in normal business activities through the Liquidation Date.

"PIMCO's ETF strategy remains the same, providing investors access to our world-class portfolio management capabilities in the vehicle of their choice," said Don Suskind, Executive Vice President and ETF Product Manager.

In connection with the Liquidation, any shares of TRSY 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. Although the Liquidation is not expected to be a taxable event for TRSY, for taxable shareholders, the automatic redemption of shares of TRSY 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 10, 2014, and Authorized Participants may voluntarily redeem Creation Units (subject to customary redemption transaction fees) prior to the Liquidation Date, to the extent that the shareholder wishes to realize any such gains or losses prior thereto.

For additional information about the Liquidation, shareholders of TRSY may call (888) 400-4ETF/(888) 400-4383.

About PIMCO

PIMCO is a leading global investment management firm, with offices in 12 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 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 TRSY's prospectus, which may be obtained by contacting your PIMCO representative. Please read the prospectus carefully before you invest.

Exchange Traded Funds ("ETF") 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.

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. PIMCO and YOUR GLOBAL INVESTMENT AUTHORITY are trademarks or registered trademarks of Allianz Asset Management of America L.P. and Pacific Investment Management Company LLC, respectively, in the United States and throughout the world. ©2014, PIMCO. PIMCO Investments LLC, distributor, 1633 Broadway, New York, NY, 10019 is a company of PIMCO. 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:
    Mark Porterfield
    PIMCO - Media Relations
    949-720-6397