First one a hit so Pimco rolls out three more bond ETFs

First one a hit so Pimco rolls out three more bond ETFs
Launch comes on the heels of success of exchanged-traded version of flagship fund
JUL 06, 2012
Pacific Investment Management Co. LLC is following up the success of the Pimco Total Return ETF Ticker:(BOND) with three more actively managed exchange-traded funds that mimic existing bond funds. The Newport Beach, Calf.-based firm has filed with the Securities and Exchange Commission to launch ETF versions of its $23.8 billion Pimco Real Return Fund Ticker:(PRTNX), $21.3 billion Pimco Low-Duration Fund Ticker:(PTLAX) and the $5.7 billion Pimco Diversified Income Fund Ticker: (PDVAX). The Real Return Fund and the Diversified Income Fund will have the same managers, Mihir Worah and Curtis Mewbourne, respectively, as their mutual fund counterparts. Bond guru Bill Gross, manager of the Low-Duration Fund, will not be handling the reigns of the ETF version. Instead, Marc Seidner will. Mr. Gross has had considerable success with the ETF version of the $1.2 trillion Pimco Total Retun Fund Ticker:(PTTAX). The ETF has grown to $1.28 billion in just over three full months of trading. It's also outperformed its mutual fund sibling. The Total Return ETF has had a return of almost 5% since its launch. Over the same time period, the mutual fund has had a return of almost 2%. The Barclays Aggregate Bond Index has been basically flat over the same time period.

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