NEWPORT BEACH, CA--(Marketwire - November 1, 2010) - PIMCO, a leading global investment solutions provider, has launched the PIMCO Broad U.S. Treasury Index Fund (Ticker: TRSY) to offer investors exposure to the broad U.S. Treasury yield curve via an Exchange Traded Fund (ETF).
"PIMCO has designed TRSY as a single ETF providing exposure to the broad U.S. Treasury yield curve," said Vineer Bhansali, managing director and portfolio manager of the new ETF. "The fund seeks to be a convenient and efficient alternative to investing in individual U.S. Treasury securities."
The PIMCO Broad U.S. Treasury Index Fund aims to achieve the yield, duration and capital preservation inherent in The BofA Merrill Lynch Liquid US Treasury Index(SM). The ETF structure allows for trading and pricing throughout the day and has the same expense ratio for all investors, regardless of size. Also, ETF fund shares are publicly traded, offering accessibility to any investor who can access a major stock exchange.
Potential benefits of this fund include:
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Convenient and efficient exposure to the broad U.S. Treasury yield curve.
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Access to the entire spectrum of Treasuries with one fund rather than multiple Treasury ETFs or individual securities.
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A liquid basket that includes the three most recently issued 2-year, 3-year, 5-year, 7-year, 10-year, and 30-year U.S. Treasury notes and bonds (including "on-the-run issues," or those securities most recently issued).
About PIMCO
PIMCO is a leading global investment management firm, with offices in 10 countries throughout North America, Europe and Asia. Founded in 1971, PIMCO offers a wide range of innovative solutions to help millions of investors worldwide meet their needs. Our goal is to provide attractive returns while maintaining a strong culture of risk management and long-term discipline. PIMCO is owned by Allianz Global Investors, a subsidiary of the Munich-based Allianz Group, a leading global insurance company.
Investors should consider the investment objectives, risks, charges and expenses of this Fund carefully before investing. This and other information are contained in the Fund's prospectus, which may be obtained by contacting your PIMCO representative. Please read the prospectus carefully before you invest or send money.
Exchange Traded Funds ("ETF") are afforded certain exemptions from the Investment Company Act. The exemptions allow, among other things, for individual shares to trade on the secondary market. Individual shares cannot be directly purchased from or redeemed by the ETF. Purchases and redemptions directly with ETFs are only accomplished through creation unit aggregations or "baskets" of shares. Shares of an ETF are bought and sold at market price (not NAV). Brokerage commissions will reduce returns. Investment policies, management fees and other information can be found in the individual ETF's prospectus.
An investment in an ETF involves risk, including the loss of principal. Investment return, price, yield and Net Asset Value (NAV) will fluctuate with changes in market conditions. Investments may be worth more or less than the original cost when redeemed. Certain U.S. Government securities are backed by the full faith of the government, obligations of U.S. Government agencies and authorities are supported by varying degrees but are generally not backed by the full faith of the U.S. Government; portfolios that invest in such securities are not guaranteed and will fluctuate in value. Derivatives may involve certain costs and risks such as liquidity, interest rate, market, credit, management and the risk that a position could not be closed when most advantageous. Investing in derivatives could lose more than the amount invested.
The value of most bond funds and fixed income securities are impacted by changes in interest rates. Bonds and bond funds with longer durations tend to be more sensitive and more volatile than securities with shorter durations; bond prices generally fall as interest rates rise. The Fund uses an indexing approach and may be affected by a general decline in market segments or asset classes relating to its Underlying Index. The Fund invests in securities and instruments included in, or representative of, its Underlying Index regardless of the investment merits of the Underlying Index.
The BofA Merrill Lynch Liquid US Treasury Index(SM) is an unmanaged index that tracks the performance of the three most recently issued 2-year, 3- year, 5-year, 7-year, 10-year and 30-year U.S. Treasury notes and bonds. It is not possible to invest directly in an unmanaged index.
"BofA Merrill Lynch" and "The BofA Merrill Lynch Liquid US Treasury Index(SM)" are reprinted with permission. © Copyright 2010 Merrill Lynch, Pierce, Fenner & Smith Incorporated ("BofA Merrill Lynch"). All rights reserved. "BofA Merrill Lynch" and "The BofA Merrill Lynch Liquid US Treasury Index(SM)" (the "Index") are service marks of BofA Merrill Lynch and/or its affiliates and have been licensed for use for certain purposes by PIMCO on behalf of the PIMCO Broad U.S. Treasury Index Fund (the "Fund") that is based on the Index, and is not issued, sponsored, endorsed or promoted by BofA Merrill Lynch and/or BofA Merrill Lynch's affiliates nor is BofA Merrill Lynch and/or BofA Merrill Lynch's affiliates an adviser to the Fund. BofA Merrill Lynch and BofA Merrill Lynch's affiliates make no representation, express or implied, regarding the advisability of investing in the Fund or the Index and do not guarantee the quality, accuracy, timeliness or completeness of the Index, index values or any index related data included herein, provided herewith or derived therefrom and assume no liability in connection with their use. As the index provider, BofA Merrill Lynch is licensing certain trademarks, The BofA Merrill Lynch Liquid US Treasury Index(SM) and trade names which are composed by BofA Merrill Lynch without regard to PIMCO, the Fund or any investor. BofA Merrill Lynch and BofA Merrill Lynch's affiliates do not provide investment advice to PIMCO or the Fund and are not responsible for the performance of the Fund.
Except for the historical information and discussions contained herein, statements contained in this news release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, including the performance of financial markets, the investment performance of PIMCO's sponsored investment products and separately managed accounts, general economic conditions, future acquisitions, competitive conditions and government regulations, including changes in tax laws. Readers should carefully consider such factors. Further, such forward-looking statements speak only on the date at which such statements are made. PIMCO undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements.
This material contains the current opinions of the manager and such opinions are subject to change without notice. This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. Pacific Investment Management Company LLC. ©2010, PIMCO.
ETF Shares are distributed by Allianz Global Investors Distributors LLC, 840 Newport Center Drive, Newport Beach, CA, 92660 888-400-4ETF.
Contact Information:
Contact:
Mark Porterfield
PIMCO - Media Relations
949-720-NEWS (6397)