Pacific Investment Management Company (Pimco) has filed with the Securities and Exchange Commission to launch five active fixed income ETFs - three short duration and two tax exempt - as well as two ETFs that track treasury indices.
The bond fund manager has filed for three short duration funds, including the Enhanced Short Maturity Strategy Fund which invests at least 65% of total assets in short-term fixed income instruments with an average portfolio duration of one year.
The short duration range also consists of the Pimco Government Limited Maturity Strategy Fund, which invests at least 80% of its assets in a portfolio of fixed income securities issued or guaranteed by the US government.
The third short duration fund is the Pimco Prime Limited Maturity Strategy Fund, which places at least 65% of assets in a portfolio of fixed income securities. These can only be US-dollar-denominated securities which mature within 397 days of purchase, or the fund can invest in floating rate US government agency securities that mature within two years from the date of purchase. The average portfolio duration of this ETF will likely last up to 90 days.
The company has also filed for two tax-exempt ETFs, including the Pimco Short-Term Municipal Bond Strategy Fund, which invests at least 80% of assets in debt securities exempt from federal income tax. The ETF's average portfolio duration is expected to last up to three years. Also within the range is the Pimco Intermediate Municipal Bond Strategy Fund, which similarly invests in debt securities exempt from federal income tax, but has an expected average portfolio duration of three to eight years.
Aside from the five active funds, Pimco has filed for two index-tracking ETFs, comprising the Pimco 0-1 Year US Treasury Index fund and the Pimco 20+ Year Zero Coupon US Treasury Index Fund.
The latest filings follow the bond fund manager's debut in the ETF arena in June, with its inaugural range offering the Pimco 1-3 Year US Treasury Index Fund, tracking the Merrill Lynch 1-3 Year Treasury Index.
The move also comes after the company's initial active ETF filing last year in September, which did not materialise.
HL and Liberty SIPP slowest
Lifetime and annual allowances
'IFAs bore the brunt'
'Recovery or boom'