PIMCO introduced the PIMCO Build America Bond Strategy Fund (BABZ) and the PIMCO Investment Grade Corporate Bond Index Fund (CORP).
BABZ is an actively managed ETF offering access to taxable municipal bonds issued under the Build America Bonds program. The fund aims for attractive yield opportunities in this municipal bond sector while avoiding securities from municipalities that PIMCO believes face deteriorating credit quality. The fund is managed by John Cummings, executive vice president and head of PIMCO’s municipal bond desk.
CORP provides exposure to investment-grade corporate bonds that are primarily component securities of the BofA Merrill Lynch US Corporate Index. The fund seeks to optimize trade execution, reduce transaction costs and minimize tracking error by avoiding bonds that are hard to obtain or at high risk of near term default, while emphasizing bonds that may provide liquidity and market access. The fund is managed by Vineer Bhansali, managing director.
“These new funds broaden investor access to two important fixed income areas — Build America Bonds and investment-grade corporate bonds — using the efficient, transparent ETF format,” said Tammie Arnold, managing director and head of PIMCO’s global ETF business. “As with all PIMCO investment products, our ETFs benefit from PIMCO’s nearly four decades of investment management experience, strong analytics and risk management expertise.”
BABZ has annual expenses of 0.45 percent while CORP is at 0.20 percent.
PIMCO manages $1.41 billion in ETF assets.