Newspaper icon
The latest issue of Financial Standard now available as an e-newspaper
READ NOW
PIMCO eyes ETFs

The fixed income giant is getting ready to list its fixed income funds as active ETFs in Australia.

PIMCO, which managed over $52 billion in Australian assets at September end, has so far stayed away from ETFs.

It did list nine of its strategies in ASX's mFunds marketplace. These totalled $256 million in total assets at January end.

It has now applied to ASIC for approvals on listing at least three fixed income funds on the exchange: the $1.1 billion PIMCO Income Fund, the $7.2 billion PIMCO Global Bond Fund and the $4.3 billion PIMCO Diversified Fixed Interest Fund.

PIMCO plans to list the three strategies as quoted managed funds on Chi-X.

A local spokesperson for PIMCO declined to comment.

ETF assets (for ASX-listed funds) sat at $96 billion at January end. New launches have returned to the market in recent months, after ASIC removed regulatory scrutiny on active ETFs.

PIMCO is the twelfth-largest investment manager in Australia, according to Rainmaker's Mandate Chaser to September 2020 end.

Apart from mFunds, in January 2020 PIMCO tried to raise for a $1 billion listed investment trust (LIT) but pulled the brakes as Treasury announced a public consultation on stamping fees for LICs and LITs.

Treasury eventually removed stamping fees from LICs and LITs, which were allowed to pay financial advisers and brokers a commission even after the Future of Financial Advice (FoFA) reforms banned such payments on most retail investment products.

Read more: PIMCO
Link to something mkTpawNQ