PIMCO, a leader worldwide in active fixed income investing in both public and private markets, has announced that the number of their exchange-traded fund (ETF) options is increasing with the new PIMCO Inflation PLUS Active ETF (PCPI). The new ETF is intended to assist investors in inflationary situations by providing a more focused hedge, less risk of price fluctuations, and a smaller reaction to changes in interest rates when compared to regular Treasury Inflation-Protected Securities (TIPS).
The PCPI ETF aims at reducing the effects of changing interest rates on its price while, at the same time, achieving higher returns through active management of the portfolio. Its main assets are short-duration TIPS and other inflation-linked securities. Allocation changes are made on a regular basis based on the market and inflation changes to produce real returns.
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The fund will be managed by an experienced team of portfolio managers, including Daniel He, Executive Vice President; Michael Cudzil, Managing Director; and Tanuj Dora, Senior Vice President, bringing deep expertise in inflation-linked strategies and fixed income markets.
“The newest addition to our ETF lineup continues PIMCO’s legacy of delivering innovative fixed income solutions designed to support long-term investment goals,” says Kim Stafford, PIMCO’s Global Head of Product Strategy. “PIMCO Inflation PLUS Active ETF, which draws on PIMCO’s expertise in inflation-linked securities, adds to our growing ETF platform. Delivering on the full strength of PIMCO’s time-tested active management expertise, PIMCO’s ETFs are grounded in the same robust global market presence, investment expertise, and rigorous underwriting that have defined our fixed income leadership for over 50 years.”
