PIMCO, the eleventh-largest U.S. issuer of exchange traded funds, said four of its ETFs will be closed in September, but the asset manager plans to add three new actively managed ETFs to its lineup.
The PIMCO Australia Bond Index ETF (NYSEArca: AUD), PIMCO Canada Bond Index ETF (NYSEArca: CAD), PIMCO Germany Bond Index ETF (NYSEArca: BUND) and the PIMCO Build America Bond ETF (NYSEArca: BABZ) are the PIMCO funds slated for closure.
Those ETFs will be liquidated on Oct. 1. Effective upon the close of business on September 26, 2014, AUD, CAD, BUND and BABZ will no longer accept orders for the purchase of Creation Units, according to a statement issued by Newport Beach, Calif.-based PIMCO.
PIMCO’s new, actively managed additions are the PIMCO Fundamental IndexPLUS AR Active ETF, the PIMCO International Fundamental IndexPLUS AR Strategy Active ETF and the PIMCO Foreign Bond Active ETF (US Dollar Hedged).
The two fundamentally-weighted offerings are equity-based ETFs that will track indices from Research Affiliates. Those funds will look to generate returns in excess of the S&P 500 and MSCI EAFE Index.
Bill Gross, Chief Investment Officer, will manage the Fundamental IndexPLUS AR Active ETF, Saumil Parikh, Managing Director and Generalist Portfolio Manager, will manage the International Fundamental IndexPLUS AR Strategy Active ETF and Scott Mather, Deputy Chief Investment Officer and head of global portfolio management, will manage Foreign Bond Active ETF (US Dollar Hedged), said PIMCO in the statement.
Assuming no other new additions are made prior to the launch of the three aforementioned new funds, PIMCO’s ETF lineup will be comprised of 20 actively managed and index products.
By assets under management, PIMCO is the largest issuer of actively managed ETFs due in large part to the $3.84 billion PIMCO Enhanced Short Maturity ETF (NYSEArca: MINT) and the $3.56 billion PIMCO Total Return ETF (NYSEArca: BOND). MINT and BOND are the two largest actively managed ETFs in the U.S. [PIMCO ETF Pares Treasury Exposure]
PIMCO Enhanced Short Maturity ETF
ETF Trends editorial team contributed to this article.
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