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Pimco multisector bond funds are; OEF PONAX / PIMIX CEFs PDI, PDO, PAXS etc. The same group of people will be managing this new ETF:
"PIMCO serves as the investment adviser for the Fund. The Fund’s portfolio is jointly and primarily managed by Daniel Ivascyn, Alfred Murata, Sonali Pier, Amit Arora, Mukundan Devarajan and Jason Duko. Messrs. Ivascyn and Murata and Ms. Pier are Managing Directors of PIMCO and Messrs. Arora, Devarajan and Duko are Executive Vice Presidents of PIMCO, and they have managed the Fund since its inception"
My guess is that it may be comparable to PONAX / PIMIX but with lower ER & better tax-efficiecy.
Multisector bond funds include sovereigns, corporates, HY, EM, so their volatility is between those of intermediate inv-grade & HY.
PIMIX hasn't had a cap gains distribution since 2015, so all else being equal, a similar fund with an ETF structure does not seem likely to be more tax efficient.
[Because of the way tax efficiency is calculated, if you have two funds with equal gross earnings, i.e. before subtracting expenses, then the cheaper fund - the one with the higher net returns - will be less tax efficient. This is a good thing! Lower expenses mean higher income means higher divs means poorer tax efficiency. For example, PONAX has a 3 year tax cost ratio of 1.91%, while PIMIX has a 2.06% tax cost ratio.]
The last time PIMCO launched an ETF managed the same way as its (then) flagship fund, Bill Gross was running things, the fund was PTTRX, and the ETF was BOND. A lot has changed since then.
BOND was expected to underperform PTTRX because it could not use derivatives. It outperformed out of the gate, for reasons that led to a $20M settlement with the SEC. https://www.sec.gov/news/press-release/2016-252
Comments
OEF PONAX / PIMIX
CEFs PDI, PDO, PAXS
etc.
The same group of people will be managing this new ETF:
"PIMCO serves as the investment adviser for the Fund. The Fund’s portfolio is jointly and primarily managed by Daniel Ivascyn, Alfred Murata, Sonali Pier, Amit Arora, Mukundan Devarajan and Jason Duko. Messrs. Ivascyn and Murata and Ms. Pier are Managing Directors of PIMCO and Messrs. Arora, Devarajan and Duko are Executive Vice Presidents of PIMCO, and they have managed the Fund since its inception"
My guess is that it may be comparable to PONAX / PIMIX but with lower ER & better tax-efficiecy.
Multisector bond funds include sovereigns, corporates, HY, EM, so their volatility is between those of intermediate inv-grade & HY.
https://www.sec.gov/ix?doc=/Archives/edgar/data/1450011/000119312523149609/d465321d497.htm
or 5/19/23 filing:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1450011/000119312523149472/d485523d485bpos.htm
[Because of the way tax efficiency is calculated, if you have two funds with equal gross earnings, i.e. before subtracting expenses, then the cheaper fund - the one with the higher net returns - will be less tax efficient. This is a good thing! Lower expenses mean higher income means higher divs means poorer tax efficiency. For example, PONAX has a 3 year tax cost ratio of 1.91%, while PIMIX has a 2.06% tax cost ratio.]
The last time PIMCO launched an ETF managed the same way as its (then) flagship fund, Bill Gross was running things, the fund was PTTRX, and the ETF was BOND. A lot has changed since then.
BOND was expected to underperform PTTRX because it could not use derivatives. It outperformed out of the gate, for reasons that led to a $20M settlement with the SEC.
https://www.sec.gov/news/press-release/2016-252
In 2014 the SEC removed the restriction on derivatives from BOND.
https://financialpost.com/investing/etfs/sec-allows-pimco-total-return-etf-to-trade-derivatives
Around 2017 BOND changed its name from Total Return Active ETF to Active Bond ETF and changed its objective.
In short, this is not Bill Gross' PIMCO. Perhaps this new flagship ETF clone will have better success.