PIMCO - Media Relations
PIMCO Launches ETF Platform, a New Way to Access the Firm's Investment Expertise
'TUZ' - the PIMCO 1-3 Year U.S. Treasury Index Fund - is First in a Series of ETF Solutions
NEWPORT BEACH, CA (June 2, 2009) – PIMCO, a leading investment management firm, has launched PIMCO ETFs, a new Exchange Traded Fund (ETF) platform that gives investors an additional way to tap into the firm’s four decades of investment experience. The first ETF offering on this platform is the PIMCO 1-3 Year U.S. Treasury Index Fund, a short-duration bond portfolio for investors that are focused on relatively stable principal value and avoiding credit risk.
“PIMCO’s new ETF platform provides investors with broader access to investment management services,” said Mohamed A. El-Erian, PIMCO’s Chief Executive Officer and Co-Chief Investment Officer. “By launching our first ETF today, PIMCO is diversifying the range of products that we offer to both long-standing and new clients around the world.”
The PIMCO ETFs platform will benefit from the same investment expertise and discipline that are the foundation of PIMCO’s portfolio management process, including:
- •Deep investment experience and world-class portfolio management
•A sophisticated approach to constructing desired market and portfolio exposures
•Strong risk management at both the security level and the portfolio level
•Exceptional trade execution capabilities
- TUZ: A Portfolio Building Block Covering the “Two’s” Bellwether Rate
- PIMCO's first ETF offering, with the ticker symbol TUZ, is designed to track the Merrill Lynch 1-3 Year U.S. Treasury Index1. This fund primarily invests in U.S. Treasury Securities, which are backed by the full faith and credit of the U.S. government. With maturities ranging from one to three years, price fluctuations may be low relative to longer-dated bonds, yet yields may be generally higher than shorter-term instruments such as Treasury bills or government money market funds.
More information on PIMCO's ETF business, along with data on the PIMCO 1-3 Year U.S. Treasury Index Fund, can be found at www.pimcoetfs.com
PIMCO, founded in 1971, is a global asset management firm that manages investments for an array of clients, including retirement and other assets that reach more than 8 million people in the U.S. and millions more around the world. Our clients include state, municipal and union pension and retirement plans whose beneficiaries come from all walks of life, from educators to healthcare workers to public safety employees. We have a substantial individual investor client base, and work in partnership with financial intermediaries such as Registered Investment Advisors, broker/dealers, trust banks and insurance companies. We are also advisors and asset managers to central banks, corporations, universities, foundations and endowments. With offices in North America, Europe, Asia and Australia, we manage investments across a full spectrum of global financial markets. PIMCO is owned by Allianz Global Investors, a subsidiary of the Munich-based Allianz Group, a leading global insurance company.
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, which may be obtained by contacting your PIMCO representative. Please read the prospectus carefully before you invest or send money.
Shares of the Fund are not individually redeemable and may only be acquired from and redeemed to the Fund in Creation Units. Investors may buy or sell individual shares in secondary market transactions that do not involve the ETF. Shares of the Funds 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.
An investment in an ETF involves risk, including the loss of principal. Investment return, price, yield, and NAV will fluctuate with changes in market conditions. Investments may be worth more or less than the original cost when redeemed. U.S. Government securities are backed by the full faith of the government; portfolios that invest in them are not guaranteed and will fluctuate in value. Currency rates may fluctuate significantly over short periods of time and may reduce the returns of a portfolio. 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.
The value of most bond funds and fixed income securities are impacted by changes in interest rates. Bonds and bond funds with longer durations tend to be more sensitive and more volatile than securities with shorter durations; bond prices generally fall as interest rates rise.
The Merrill Lynch 1-3 Year BBB Corporate Index is an unmanaged index trading short-term domestic corporate bonds comprised of various fixed income securities rated BB and B with maturities between 1 and 2.99 years. It is not possible to invest directly in an unmanaged index.
1 "Merrill Lynch" and "Merrill Lynch 1-3 Year US Treasury IndexSM" are reprinted with permission. © Copyright 2009 Merrill Lynch, Pierce, Fenner & Smith Incorporated ("Merrill Lynch"). All rights reserved. "Merrill Lynch" and "Merrill Lynch 1-3 Year US Treasury IndexSM" are service marks of Merrill Lynch and have been licensed for use for certain purposes by the PIMCO 1-3 Year U.S. Treasury Index Fund that is based on the Merrill Lynch 1-3 Year US Treasury IndexSM, and is not sponsored, endorsed or promoted by Merrill Lynch and/or Merrill Lynch's affiliates nor is Merrill Lynch and/ or Merrill Lynch's affiliates an adviser to the PIMCO 1-3 Year U.S. Treasury Index Fund. Merrill Lynch and Merrill Lynch's affiliates make no representation, express or implied, regarding the advisability of investing in this product or the Index and do not guarantee the quality, accuracy or completeness of the Index, Index Values or any Index related data included herein, provided herewith or derived therefrom and assume no liability in connection with their use. As the Index Provider, Merrill Lynch is licensing certain trademarks, the underlying Index and trade names which are composed by Merrill Lynch without regard to PIMCO, this product or any investor. Merrill Lynch and Merrill Lynch's affiliates do not provide investment advice to the PIMCO 1-3 Year U.S. Treasury Index Fund and are not responsible for the performance of the PIMCO 1-3 Year U.S. Treasury Index Fund.
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 statements.
The press release 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. Pacific Investment Management Company LLC. ©2009, PIMCO.
PIMCO securities are offered by Allianz Global Investors Distributors LLC, 840 Newport Center Drive, Newport Beach, CA 92660, (800) 927-4648.