Pimco Foreign Bond Active ETF (U.S. Dollar-Hedged) plans to launch

By Toni Weeks

San Luis Obispo, Calif., Aug. 18 – Pimco ETF Trust announced in an N-1A filing with the Securities and Exchange Commission its plan to offer a new fund that targets dollar-denominated, foreign fixed-income securities.

The Pimco Foreign Bond Active Exchange-Traded Fund (U.S. Dollar-Hedged) will seek maximum total return, consistent with preservation of capital and prudent investment management, by investing at least 80% of its assets in investment-grade, fixed-income instruments that are economically tied to foreign countries. The fund’s portfolio will represent at least three foreign countries, which may be represented by forwards or derivatives such as options, future contracts or swap agreements and may include emerging markets countries. The fund will normally limit its foreign currency exposure from non-dollar-denominated securities or currencies to 20% of its total assets.

Scott A. Mather is the portfolio manager.

The fund (NYSE Arca: FBH) will not be subject to shareholder fees. Including management fees of 0.6% and incorporating a fee waiver and expense reimbursement agreement, total annual fund operating expenses are expected to be 0.59%.

Newport Beach, Calif.-based Pacific Investment Management Co. LLC, or Pimco, will serve as the funds’ investment adviser.

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