PIMCO to launch ETF version of Gross fund this March

PIMCO has confirmed it will launch a low-cost tracker version of the PIMCO Total Return fund for US investors on 1 March.

Managed by Gross for US investors, the exchange-traded version of the world's largest bond fund will invest in the same diversified portfolio of bonds as PIMCO Total Return, with maturities averaging around five years. PIMCO expects the fund will have an expense ratio of 0.55% for US investors, as opposed to the existing fund's 0.9% plus ‘sales load'. The company had initially revealed it was planning the ETF in a regulatory filing made in April 2011. The ETF will be able to invest up to 10% of assets in high yield bonds, up to 30% in foreign currency debt, and up to 10% in preferred ...