PIMCO to launch first Australian LIT

Fixed income investment manager, PIMCO, has released some information on its first listed investment trust (LIT) made available to Australian investors, the PIMCO Global Income Opportunities Trust (PMX).

PIMCO is set to commence a three-week national campaign to promote the trust and raise approximately AUD$500 million before it begins trading on the Australian Securities Exchange (ASX) on 21 April.

PMX seeks to deliver regular risk-adjusted returns by targeting PIMCO’s strategies across several fixed income sectors around the world. It targets a distribution of 4.75 per cent to 5.75 per cent per annum, paid monthly.

The LIT will be managed by a team that comprises three of PIMCO’s senior portfolio managers, Dan Ivascyn, Managing Director and Group Chief Investment Officer; Rob Mead, Managing Director, Head of Australia and Co-Head of Asia-Pacific Portfolio Management; and Alfred Murata, Managing Director and Portfolio Manager, Mortgage Credit.

Other members of the team include Adam Bowe, Portfolio Manager, Australia; Giang Bui, Portfolio Manager, Securitized Debt; and Jing Yang, Portfolio Manager, Structured Credit.

“PIMCO has a long and successful history of managing listed trusts around the world,” Ivascyn said.

“The flexibility of the listed structure provides us with greater opportunities to pursue high conviction positions to generate attractive income.

“We will continue to employ our long-standing ‘bend but don’t break’ approach, rigorously analysing and stress-testing potential opportunities that we believe can offer a resilient return profile under a broad range of economic scenarios.”

Mead also expressed his excitement at the launch and said the LIT meets the unique yet strong need of investors for income.

“PMX will represent PIMCO’s best income-generating investment ideas, taking advantage of our dedicated investment specialists from around the world, and our depth and reach across global fixed income markets,” he said.