PIMCO brings new active ETF to market

Active fixed income investment specialist, PIMCO, has added to its suite of exchange traded funds (ETFs) available via local exchanges with a new option offered as an alternative to cash and term deposits.

The PIMCO Short Term Active Yield Active ETF (EARN) brings the manager’s total number of active fixed income ETFs available on Cboe Australia and the Australian Securities Exchange (ASX) to five, following the launch of PGBF, PDFI, PCRD, and PAUS back in February.

The strategies are intended to deliver institutional-grade access to global and local bond opportunities, with EARN in particular offering investors strong monthly income and daily liquidity at a high level of credit quality. It also leverages PIMCO’s active management style backed by a robust research process and strong macroeconomic insights.

The ETF was also designed to meet heightened demand for low-duration, actively-managed fixed income options, also offering a key differentiating factor of a minimum of 50 per cent in AUD-denominated bonds.

“EARN is designed to provide a compelling alternative to cash and money market funds — helping investors put their money to work while maintaining capital stability and liquidity,” Sam Watkins, Managing Director and Head of PIMCO Australia and New Zealand, said.

“It complements our existing suite of active fixed income ETFs and, as one of Australia’s biggest fund managers, reflects our commitment to delivering innovative solutions tailored to investors here.”