Products July 21, 2003

PIMCO Plans Six New Funds

July 21, 2003 (PLANSPONSOR.com) - PIMCO (Pacific Investment Management Co.) has outlined plans to begin advising a half dozen new funds.
Reported by

The Newport Beach, California-based firm has unveiled plans to create four international funds, a real estate fund, and a municipal fund via its Pimco Funds: Pacific Investment Management Series, according to Dow Jones, citing SEC filings.   William H. Gross and Jeffrey Ludwig will be responsible for the funds’ day-to- day operations, which will require a minimum investment of $5 million.

The proposed Pimco European StocksPLUS Strategy Fund, Pimco Far East (Ex- Japan) StocksPLUS Strategy Fund, Pimco International StocksPLUS Strategy Fund, Pimco Japanese StocksPLUS Strategy Fund, Pimco RealEstateRealReturn Strategy Fund, and Pimco StocksPLUS Municipal-Backed Fund are expected to start September 30, according to the report.

  • The Pimco European StocksPLUS Strategy Fund , which will have the Dow Jones Euro Stoxx 50 Index as its benchmark, will plan to exceed the total return of its benchmark index by investing in European equity derivatives backed by a portfolio of fixed income instruments.
  • The Pimco Far East (Ex-Japan) StocksPLUS Strategy Fund , which will exclude Japan and have the Morgan Stanley Capital International AC (All Country) Far East Free ex Japan Index as its benchmark, will seek to exceed the total return of its benchmark index by investing in Far Eastern equity derivatives backed by a portfolio of fixed income instruments.
  • The Pimco International StocksPLUS Strategy Fund , which will use the Morgan Stanley Capital International Europe Australia Far East Index as its benchmark, will seek to exceed the total return of its benchmark by investing in non-US equity derivatives backed by a portfolio of fixed-income instruments.
  • The Pimco Japanese StocksPLUS Strategy Fund will seek to exceed the total return of its benchmark, the Tokyo Stock Exchange TOPIX Total Return Index, by investing in Japanese equity derivatives backed by a portfolio of fixed income instruments.
  • The Pimco RealEstateRealReturn Strategy Fund will seek a maximum REIT return consistent with prudent investment management, and will invest in real estate-linked derivative instruments backed by a portfolio of inflation-indexed securities and other fixed income instruments.   The fund will gain exposure to the real estate market by investing in REIT swap agreements, according to Dow Jones.
  • The Pimco StocksPLUS Municipal-Backed Fund will aim for total return that exceeds that of its benchmark, the Standard & Poor’s 500 Index, and will invest in S&P 500 Index derivatives, backed by a portfolio of debt securities whose interest is exempt from federal income tax.

Pacific Investment Management Co. has about $ 348.8 billion in assets under management.

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