PIMCO is expanding its actively managed fixed income exchange traded fund suite with the addition of a new ETF that may help diversify fixed-income allocations for investors concerned about rising rates.
The PIMCO Senior Loan Active Exchange-Traded Fund (NYSE Arca: LONZ) aims to find compelling opportunities in the senior loan market where investments may offer floating interest rates that can help mitigate the negative impact of rising rates on an investment portfolio. With more than 80 credit analysts at PIMCO supporting the loan-oriented portfolio management team, PIMCO will seek to select investments to prudently manage credit risk while helping investors meet their long-term investment goals.
“We are in a late cycle environment where credit markets are more challenging, volatility is increasing, and central bank policy is becoming more restrictive,” said David Forgash, executive vice president and head of PIMCO’s global leveraged loan portfolio management team, in a news release announcing the fund’s launch. “LONZ, like many of our ETF offerings, embraces an active management approach that aims to be patient and prudent to take advantage of the opportunities in credit markets in the weeks and months ahead.”
The ETF will be managed by Forgash, executive vice president and portfolio manager Giang Bui, senior vice president and portfolio manager Chris Kemp, and vice president and portfolio manager Tanuj Dora.
“PIMCO pioneered the active fixed income ETF market years ago and since then the universe of products has expanded significantly as advisors have embraced alternatives to an index based approach,” said VettaFi head of research Todd Rosenbluth. “Given their record of security selection it is exciting to see their lineup grow.”
LONZ is an addition to PIMCO’s active taxable fixed income ETF suite, which includes, the PIMCO Active Bond ETF (BOND ) and the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT ).
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