Pimco to Offer 19 New Active ETFs

Pacific Investment Management Co., the world's largest bond-fund manager, plans to significantly expand its lineup of active exchange-traded funds by offering 19 new active ETFs, including versions of its existing mutual funds.

The firm, which has nearly $2 trillion under management and has said it is seeking to diversify its offerings, plans to offer ETF versions of its Pimco Income, Pimco Unconstrained Bond, Pimco Municipal Bond and some of its StocksPlus and IndexPlus funds, according to a filing it made with the Securities and Exchange Commission on Jan. 24

"We believe actively managed ETFs provide another way for investors to access Pimco global strategies across fixed income, equities and commodities, all backed by the firm's time-tested investment process," a spokeswoman for the firm said Monday.

The new funds, which will more than triple the firm's current active ETF lineup, come not long after Pimco Chief Investment Officer Bill Gross said that he wants to escalate the firm's efforts to boost its exposure to stocks.

Pimco announced last week that Chief Executive Mohamed El-Erian will step down. Investors, including some financial advisers, have pulled billions of dollars in client money from the firm's flagship Pimco Total Return fund, which experienced its biggest loss in more than a decade in 2013. The losses were due to a misjudgment on the timing of the Federal Reserve's plans to cut back on its bond purchases and sagging bond markets.

The $29.9 billion Pimco Income fund, which is managed by Daniel Ivascyn, has gained an annualized 14.2% in the five years through Jan. 24, outpacing the average fund among its peers by nearly 2.7% annually in the period, according to Morningstar.

The $26.8 billion Unconstrained Bond fund, which is managed by Mr. Gross, has gained an annualized 4.7% in the five years through Jan. 24, lagging the average fund among its peers by nearly 2.2% in the period, according to Morningstar. Mr. Gross took the helm of the fund as manager Chris Dialynas plans a sabbatical beginning in the second quarter of this year.

Write to Daisy Maxey at [e-mail]

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