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PIMCO listing starts a new wave of LITs
Global fixed income manager PIMCO is launching its first ASX-listed Australian investment trust – The PIMCO Global Income Opportunities Trust (ASX:PMX). The fund aims to deliver regular income and attractive risk-adjusted returns by using PIMCO’s best income-generating ideas on a global sector basis. Here are some of the highlights from the fund:
- ASX Code – PMX
- Subscription Price – $2.00 per Unit.
- Number of Units – 250 million
- Offer proceeds – $502.5m
- The manager will contribute $0.01 for each unit subscribed under the offer, so applicants will pay a subscription price of $2.00 per unit.
- Distribution target – 4.75% to 5.75% pa (net of fees & expenses)
- PMX is aiming to raise an amount of approximately $500 million.
- Portfolio team – Dan Ivascyn, Alfred Murata, Robert Mead, Jing Yang, Giang Bui, Adam Bowe
- Management fee – 1.24%
PMX will seek to provide attractive risk-adjusted returns and current income (i.e. regular distributions) by investing predominantly in a portfolio of globally sourced fixed-interest securities, which may include government and government-related debt, corporate debt, mortgage-related and other credit securities of varying maturities.
The fund may invest in both investment-grade and sub-investment grade debt instruments and may use various derivative strategies (both long and short positions). It will adopt a multi-sector approach, spanning government, government-related, corporate, residential, commercial, consumer and speciality finance. The trust may invest in both investment-grade and sub-investment grade debt instruments and securities and instruments that are economically tied to “emerging market” countries.
The trust will be managed by a team of three of PIMCO’s most senior portfolio managers, Dan Ivascyn, managing director and Group Chief Investment Officer; Rob Mead, managing director, head of Australia and co-head of Asia-Pacific portfolio management; and Alfred Murata, managing director and portfolio manager, mortgage credit. Other members of the portfolio management team include Adam Bowe, portfolio manager, Australia; Giang Bui, portfolio manager, securitized debt; and Jing Yang, portfolio manager, structured credit.
PIMCO’s group CIO, Dan Ivascyn, said: “PIMCO has a long and successful history of managing listed trusts around the world. The flexibility of the listed structure provides us with greater opportunities to pursue high-conviction positions to generate attractive income. We will continue to employ our long-standing ‘bend but don’t break’ approach, rigorously analysing and stress-testing potential opportunities that we believe can offer a resilient return profile under a broad range of economic scenarios.”
Rob Mead, head of Australia and co-head of Asia-Pacific portfolio management, said: “We are very pleased to be launching this unique offering to Australian investors at a time when the need for income is strong. PMX will represent PIMCO’s best income-generating investment ideas, taking advantage of our dedicated investment specialists from around the world, and our depth and reach across global fixed income markets.”
