Pimco files for patent on unique strategy employed by its funds

Treasury inflation-protected securities are the underlying investments of two managed-payout funds launched last Tuesday by Pacific Investment Management Co. LLC that are designed to provide retirees with systematic income distributions — a strategy so unique that Pimco has filed for patent protection.
SEP 13, 2009
Treasury inflation-protected securities are the underlying investments of two managed-payout funds launched last Tuesday by Pacific Investment Management Co. LLC that are designed to provide retirees with systematic income distributions — a strategy so unique that Pimco has filed for patent protection. The Pimco Real Income Fund 2019 and Pimco Real Income Fund 2029 are unique because they use a “laddered” portfolio of TIPS, meaning maturities are structured over a predetermined time frame to generate systematic, inflation-adjusted distributions. Distributions are a combination of interest and principal, both of which are adjusted automatically to the rate of inflation and are paid out monthly until the funds reach their maturity date. “The Pimco Real Income funds are an innovative investment solution for retirees,” Tom Streiff, executive vice president and retirement product manager for Pimco, said in a statement. “The funds are a natural fit with annuity products and can supplement Social Security, defined-benefit plans and other sources of retirement income in a manner that protects against inflation.” E-mail David Hoffman at [email protected].

Latest News

No succession plan? No worries. Just practice in place
No succession plan? No worries. Just practice in place

While industry statistics pointing to a succession crisis can cause alarm, advisor-owners should be free to consider a middle path between staying solo and catching the surging wave of M&A.

Research highlights growing need for personalized retirement solutions as investors age
Research highlights growing need for personalized retirement solutions as investors age

New joint research by T. Rowe Price, MIT, and Stanford University finds more diverse asset allocations among older participants.

Advisor moves: RIA Farther hails Q2 recruiting record, Raymond James nabs $300M team from Edward Jones
Advisor moves: RIA Farther hails Q2 recruiting record, Raymond James nabs $300M team from Edward Jones

With its asset pipeline bursting past $13 billion, Farther is looking to build more momentum with three new managing directors.

Insured Retirement Institute urges Labor Department to retain annuity safe harbor
Insured Retirement Institute urges Labor Department to retain annuity safe harbor

A Department of Labor proposal to scrap a regulatory provision under ERISA could create uncertainty for fiduciaries, the trade association argues.

LPL Financial sticking to its guns with retaining 90% of Commonwealth's financial advisors
LPL Financial sticking to its guns with retaining 90% of Commonwealth's financial advisors

"We continue to feel confident about our ability to capture 90%," LPL CEO Rich Steinmeier told analysts during the firm's 2nd quarter earnings call.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.