Skip to main content

The Pimco offices in Newport Beach, Calif.

© Mike Blake / Reuters/Reuters

Global fixed-income giant Pimco has joined the growing number of Canadian providers of exchange-traded funds as it expands its bond expertise into ETF offerings for investors through its Canadian operations.

Pimco Canada, popular among investors for its multiple bond strategies, introduced two actively managed bond ETFs to the Canadian marketplace on Monday, mirroring two of the company's most popular bond funds.

Pimco Monthly Income Fund (Canada) and Pimco Investment Grade Credit Fund (Canada) began trading on the Toronto Stock Exchange on Oct. 2.

Story continues below advertisement

With the ticker PMIF, Pimco Monthly Income Fund (Canada) offers investors access to an actively managed bond portfolio that invests primarily in a diversified portfolio of non-Canadian-dollar fixed-income instruments of varying maturities. Similar to its mutual-fund version, the fund will be managed by Dan Ivascyn, managing director and group chief investment officer; and Alfred Murata, managing director and portfolio manager.

The Pimco Investment Grade Credit Fund – ticker IGCF – offers investors access to an actively managed bond portfolio that invests primarily in non-Canadian-dollar high-quality corporate bonds diversified broadly across industries, issuers and regions. The fund is managed by Mark Kiesel, managing director and chief investment officer of global credit.

Management fees for both funds are 0.75 per cent.

The new ETF series will provide investors an alternative avenue to the already established mutual funds, said Stuart Graham, managing director and head of Pimco Canada in a statement.

"We want to provide our Canadian investors with additional, convenient access points to two of our most popular bond strategies" said Mr. Graham. "The new ETF series will give clients the ability to choose the vehicle that best suits their needs."

Pimco Canada has approximately seven mutual-fund offerings that focus on the fixed-income space including the Balanced Income Fund and Canada Total Return Bond Fund.

The pivot from mutual funds into ETFs by Pimco Canada follows a similar strategy as its U.S. parent Pimco implemented in 2009 when it entered into the U.S. ETF market by mimicking some of its strongest mutual-fund offerings to ETF investors. One of the first ETFs to market in the United States included the Pimco Enhanced Short Maturity Strategy Fund, which has more than $7.4-million (U.S.) in assets under management as of Oct. 2, 2017.

Story continues below advertisement

In 2012, the U.S. firm rolled out a much-anticipated ETF based on famed bond investor Bill Gross and his flagship Pimco Total Return mutual fund. At the time, Mr. Gross had more than $251-billion in assets under management within the mutual fund that incorporated a combination of options, futures and swap agreements.

Today, the U.S. ETF fund family consists of 15 funds that include corporate bonds, government bonds and high-yield bonds. Management fees in the U.S range from 0.15 per cent to 0.55 per cent.

The global fixed-income investment manager has more than $1.61-trillion in assets under management worldwide in ETFs, mutual funds, close-ended funds and managed accounts.

Pimco Monthly Income Fund (PMIF)

Close: $20.01, up 1¢

Pimco Investment Grade Credit Fund (IGCF)

Story continues below advertisement

Close: $20.02, up 2¢

Report an error Editorial code of conduct
Tickers mentioned in this story
Unchecking box will stop auto data updates
Comments

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

If your comment doesn't appear immediately it has been sent to a member of our moderation team for review

Read our community guidelines here

Discussion loading…

Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.