“LDUR benefits from the same time-tested investment process that underpins all of PIMCO’s actively managed investment strategies,” Scnheider said in a research note. “It combines our rigorously developed top-down outlook with our robust bottom-up security selection and risk management capabilities. All of these elements are key to identifying attractive risk/reward opportunities in today’s evolving market environment.”
Additionally, MINT is meant to be used as an incremental step outside of the money market funds. Investors would use the active ETF for capital preservation or to take a defensive view on the market. MINT shows a 0.28 year duration and a 1.28% 30-day SEC yield. The fund only includes investment-grade debt, but most of it is in investment-grade credit 64.8%, followed by mortgage 16.6%, other short-duration instruments 10.7 and emerging markets 3.4%.
“For investors willing to accept a degree of additional risk, we believe MINT provides a more attractive risk/return profile than traditional money market investments,” Schneider said in a separate note.
Financial advisors who are interested in learning more about fixed-income strategies for 2017 can register for the Thursday, December 8 webcast here.