PIMCO has announced the launch of four exchange-traded funds (ETFs) that seek to democratise active fixed income investing in Australia.
According to the fund manager, the ETFs are constructed to provide Australian investors with institutional-grade investment solutions and access to fixed income opportunities across the globe.
PIMCO’s four new investment vehicles are the PIMCO Global Bond Active ETF (PGBF), PIMCO Diversified Fixed Interest Active ETF (PDFI), PIMCO Global Credit Active ETF (PCRD), and PIMCO Australian Bond Active ETF (PAUS).
Investors can access the products on Cboe Australia, having launched on 5 February 2025.
In particular, the Global Bond Active ETF aims for maximum total return while preserving capital by investing in high-quality global fixed interest securities in the government, corporate and mortgage space.
The Diversified Fixed Interest Active ETF serves as a core fixed income allocation by providing a diversified portfolio of Australian and global bonds. The product seeks to offer income, capital gains, diversification and a hedge against volatility in higher-risk asset classes.
Meanwhile, the Global Credit Active ETF aims for attractive returns through PIMCO’s macroeconomic insights and bottom-up credit research. The ETF seeks higher total return potential than core government bonds and cash, complementing traditional bond holdings.
Finally, PIMCO’s Australian Bond Active ETF focuses on government, semi-government, corporate and mortgage securities, with the aim of achieving maximum total return.
Sam Watkins, executive vice president and head of PIMCO’s Australia and New Zealand business, commented: “As one of Australia’s biggest fund managers, PIMCO is excited to introduce these active fixed income ETFs that will fill critical gaps in the market and meet the evolving needs of our clients.
“PIMCO has been in Australia for more than 20 years, and we look forward to expanding our ETF offerings in the future to meet the evolving needs of our clients.”
The fund manager’s largest ETF – the PIMCO Enhanced Short Maturity Active ETF (MINT) – has grown to approximately US$11.8 billion ($18.9 billion) in assets under management (AUM) since it was first launched in 2008.
Across the globe, PIMCO manages US$1.95 trillion ($3.1 trillion) in AUM as of 31 December 2024.
Last month, the firm welcomed Kanish Chugh, former head of distribution at Global X, as an account manager within the Australian global wealth management team.
Chugh previously spent a decade at Global X, initially joining when the firm was called ETF Securities, and worked in a variety of roles. This culminated in him being appointed as head of distribution in September 2022.
