Pimco Emerging Markets Full Spectrum Bond Fund announces launch

By Toni Weeks

San Luis Obispo, Calif., Jan. 29 - Pimco Funds announced it has launched its new emerging markets fixed-income fund, according to a 497K filing with the Securities and Exchange Commission.

The Pimco Emerging Markets Full Spectrum Bond Fund seeks maximum total return, consistent with prudent investment management, and is designed to provide dynamic exposure to a broad range of emerging-market fixed-income asset classes. Investments include external debt obligations of sovereign, quasi-sovereign and corporate entities; local currency-denominated obligations of sovereign, quasi-sovereign and corporate issuers; and currencies.

Under normal conditions, the fund invests at least 80% of its assets in investments economically tied to emerging market countries and 80% of its assets in fixed-income instruments.

The fund's benchmark index is a blend of the JPMorgan Global Bond Index Emerging Markets - Global Diversified with a 50% weight, the JPMorgan Emerging Markets Bond Index Global with a 25% weight and the JPMorgan Corporate Emerging Market Bond Index Diversified with a 25% weight.

The fund's average portfolio duration will normally vary within two years of the duration of the securities comprising the benchmark, which was, as of Dec. 31, 5.76 years.

The fund is launching with class A, class C, institutional class, class P and class D shares. The ticker symbols are PFSSX, PFSCX, PFSIX, PFSPX and PFSYX, respectively. The fund will offer class R and administrative class shares as well; their ticker symbols were not included in the filing.

Shareholder fees include a 3.75% maximum sales charge for class A shares. Class A and class C shares are subject to a 1% maximum deferred sales charge. Class R, institutional class, class P, administrative class and class D shares are not subject to shareholder fees.

Management fees are 1.14% for class A, class C and class R shares. Including other fees and taking into account a fee waiver agreement with the investment adviser, total annual fund operating expenses are expected to be 1.29% for class A, 2.14% for class C and 1.64% for class R shares.

For institutional class and administrative class shares, management fees are 0.99%. Class P's management fees run 1.09%, and class D's run 1.14%. Total annual fund operating expenses after the fee waiver are expected to be 0.99% for institutional class, 1.09% for class P, 1.24% for administrative class and 1.39% for class D shares.

Michael Gomez is the portfolio manager.

Newport Beach, Calif.-based Pimco is the investment adviser to the fund.

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