NEW YORK Feb 11 Investment giant PIMCO will
launch an actively managed exchange-traded fund on Feb. 12 that
will target currencies outside the United States, the firm said
The PIMCO Foreign Currency Strategy Exchange Traded Fund
will hold currencies and bonds issued in local currencies, with
a focus on diversifying away from the U.S. dollar, Pacific
Investment Management Co said in a press release.
PIMCO, a unit of European financial services company Allianz
SE, had $2 trillion in assets under management at the
end of 2012. It is run by founder and co-Chief Investment
Officer Bill Gross and Chief Executive and co-CIO Mohamed
The new ETF will be managed by Scott Mather, managing
director and head of global portfolio management; Vineer
Bhansali, managing director and head of quantitative investment
portfolios; and Thomas Kressin, senior vice president and head
of European foreign exchange. It will trade under the ticker
Gross has criticized the high debt levels of developed
economies, including the United States, in monthly letters to
investors. He has also warned that the Federal Reserve's monthly
purchases of $85 billion in Treasuries and agency mortgage
securities will spur inflation.
Actively managed ETFs occupy a minor role in the ETF and
exchange-traded product space, which surpassed $2 trillion in
assets in January, according to investment firm BlackRock Inc.
PIMCO launched an ETF version of its flagship PIMCO Total
Return Fund, the world's largest bond fund, on March 1, 2012.
The PIMCO Total Return ETF, an actively managed ETF
designed to mimic the strategy of the flagship fund,
outperformed the mutual fund last year with a return of 11.75
percent, according to Lipper. The mutual fund earned 10.36
percent, according to Morningstar.
Gross's Total Return ETF was far more popular than any other
active ETF, attracting inflows of $3.5 billion in 2012,
according to Lipper.