According to the Newport Beach, Calif.-based bond behemoth, the latest ETF is designed for long-term returns above inflation by actively managing global inflation-linked bonds and currencies. The fund is managed by Mihir Worah, managing director and head of PIMCO’s real return portfolio management team.
“ILB continues the expansion of PIMCO’s range of actively managed ETFs, which combine PIMCO’s time-tested global investment process and expertise in managing global fixed income with the tradability of an ETF vehicle, providing investors intraday pricing and daily portfolio disclosures in a single share class,” the company said in a statement.
PIMCO believes globalization exposes investors to price pressures and growth patterns of countries around the world, creating a need for a fuller set of inflation-oriented investments. ILB uses global inflation-linked bonds and currencies to diversify investors’ inflation protection strategies.