PIMCO To Launch Exchange-Traded Fund

It shall be called the PIMCO Total Return Exchange-Traded Fund.

The fund will hold at least 65 percent of its total assets in various U.S. and non-U.S. public corporate debt securities, the Newport Beach, California-based firm said in a filing on Wednesday with the U.S. Securities and Exchange Commission. The filing also said the exchange-traded fund may invest up to 10 percent of its total assets in high-yield "junk" bond securities...the Total Return Exchange-Traded fund may invest up to 30 percent of its total assets in securities denominated in foreign currencies and may invest beyond that limit in U.S. dollar-denominated securities of foreign issuers. The fund may invest up to 15 percent of its total assets in securities and instruments that are "economically tied to emerging market countries."

The filing added that the fund will normally limit its foreign currency exposure -- from non-U.S. dollar-denominated securities or currencies -- to 20 percent of its total assets. The fund may invest, without limitation, in mortgage- or asset-backed securities, according to the filing.

[Reuters]