PIMCO Launches New Fund To Capitalize on Regulatory Changes

Apr 29 2015 | 2:54pm ET

A new liquid alternatives fund by PIMCO aims to capitalize on the regulatory changes put in place following the financial crisis. 

The new fund, named the PIMCO Capital Securities and Financials Fund, launched on April 13 and trades under the symbol PFANX. It will invest in securities issued by banks, insurance companies and other financial institutions in response to increased capital requirements placed on the financial sector in response to the worldwide financial crisis that occured in 2009.

The fund’s portfolio will consist of both “capital” and “financial” securities. The former includes securities issued by banks, insurance companies, and other financial institutions, both here and abroad, that were issued explicitly to satisfy the capital requirements set by regulators. The latter, on the other hand, includes all other securities issued by those entities. 

In addition, the fund will invest in Regulation S securities issued through private placements and exempt from without registration with the Securities and Exchange Commission, and may use derivatives such as options, futures, and swaps in pursuit of its investment objectives.

The new fund is being managed by Philippe Bordereau and Yuri Garbuzov.  Bordereau is a PIMCO managing director and is global head of financial research for the firm, while Garbuzov is a structured-credit product specialist.

PFANX carries 1.14% in net-expense charges and ratio and requires a minimum initial investment of $1,000. Institutional-class shares trade under the symbol PFINX, carry a net-expense ratio of 0.79%, and require initial minimums of $1 million. Five other share classes exist. 

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