PIMCO - Media Relations
PIMCO ETFs Completes Spectrum of Key U.S. Treasury Offerings with Launch of PIMCO 3-7 Year U.S. Treasury Index Fund
Firm Also Adds PIMCO 25+ Year Zero Coupon U.S. Treasury Index Fund to Lineup of ETF Solutions
NEWPORT BEACH, CA (November 2, 2009)—PIMCO, a leading global investment management firm, has launched two new Exchange Traded Funds (ETFs) to give investors further access to the firm’s expertise in managing U.S. Treasury securities. The PIMCO 3-7 Year U.S. Treasury Index Fund (Ticker: FIVZ) completes the firm’s lineup of ETFs that cover the key rate segments of Treasury securities. The new PIMCO 25+ Year Zero Coupon U.S. Treasury Index Fund (Ticker: ZROZ) offers an ETF solution for investors seeking long duration, or a high level of interest rate sensitivity.
“These newest offerings highlight PIMCO’s ongoing commitment to introducing well-engineered ETF solutions that look to meet the needs of investors,” said Vineer Bhansali, PIMCO managing director and portfolio manager for the new funds. “Along with our existing ETFs, these new funds offer access to a broad range of Treasury maturities for investors who prefer indexed strategies and the ease of trading ETFs.”
With the addition of the PIMCO 3-7 Year U.S. Treasury Index Fund to existing offerings in the 1-3 year and 7-15 year ranges, PIMCO now offers ETFs that span a broad range of Treasury note and bond maturities. This coverage of key Treasury rates is designed to give investors the tools needed to execute yield curve strategies, position for expected changes in interest rates and economic conditions, or maintain long-term allocations toward liquid, high-quality U.S. government securities. The medium-maturity Treasuries in the 3-7 year fund, in aggregate, offer exposure to the five-year segment of the curve, have low volatility relative to broader bond markets, and low default risk as Treasuries are backed by the full faith and credit of the U.S. government.
The PIMCO 25+ Year Zero Coupon U.S. Treasury Index Fund aims to enable investors to capitalize on expected interest rate movements or efficiently manage long-term interest rate-sensitive liabilities by offering a high duration, or sensitivity to interest rate movements, without the use of financial leverage. The fund’s benchmark also features quarterly index rebalancing scheduled to match the fund’s dividend distributions, which may reduce portfolio turnover.
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 this Fund 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 an ETF are not individually redeemable and may only be acquired from and redeemed to an ETF 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. 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. Duration is the measure of a bond’s price sensitivity to interest rates and is expressed in years.
The credit quality of a particular security or group of securities does not ensure the stability or safety of the overall portfolio.
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.
PIMCO Funds are distributed by Allianz Global Investors Distributors LLC, 840 Newport Center Drive, Newport Beach, CA 92660, (800) 927-4648.