Date to be Launched: Yet to be confirmed
Links: Prospectus
Investment Strategy:
PPRM invests at least 65% of its assets in US$ fixed income securities that mature within 397 days. Alternatively, the fund may invest in US government agency securities which mature in less than 2 years. PPRM looks to maximize current income while preserving capital and liquidity and the average duration of the portfolio does not exceed 90 days. The fund invests mainly securities rated higher than A by Moody’s.
Portfolio Managers:
PIMCO serves as the investment manager of (MINT: 100.76 0.00%). PIMCO has more than $940 billion in assets under management as of Sep 30, 2009 and over $75 billion in only short duration strategies.
Jerome Schneider – Executive Vice President at PIMCO, joined PIMCO in 2008 after serving as Senior Managing Director with Bear Stearns where he specialized in credit and mortgage-related funding transactions.
The Numbers:
Expense Ratio – Capped at 0.25% till Oct 31, 2011 (by contractual agreement), 0.38% after that.
What’s in it for investors?
1. PPRM is the third of PIMCO’s Active ETFs targeted at cash investors and has the tightest constraints and invests in the shortest maturity securities. Again, PPRM looks to beat out its competition by using its low expense as its prime weapon with comparable mutual funds having a net expense in the range of 0.50% – 0.90%.
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