Pimco Low Duration Investment Grade Corporate Bond Active ETF to launch

By Toni Weeks

San Luis Obispo, Calif., Sept. 5 – Pimco ETF Trust announced the details of a new investment-grade, fixed-income fund, according to an N-1A filing with the Securities and Exchange Commission.

The Pimco Low Duration Investment Grade Corporate Bond Active Exchange-Traded Fund will seek to maximize total return, consistent with prudent investment management. Under normal conditions, it will invest at least 80% of its assets in a diversified portfolio of investment-grade, corporate fixed-income instruments of varying maturities. Portfolio securities may be represented by forwards or derivatives such as options, futures contracts or swap agreements. Up to 15% of its total assets may be invested in high-yield securities, and up to 20% of its assets may be invested in securities and instruments of issuers economically tied to emerging market countries.

Mark Kiesel is the portfolio manager.

The fund will trade on the New York Stock Exchange under the symbol “LDIG.”

There are no shareholder fees. Management fees are 0.6%, and, taking into account the effects of a fee waiver and expense reimbursement agreement, total annual fund operating expenses are expected to be 0.49%.

Newport Beach, Calif.-based Pimco will serve as the investment adviser.

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