Citywire Selector - For Professional Investors

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Pimco to switch PMs and rebrand Total Return ETF

Pimco to switch PMs and rebrand Total Return ETF

Pimco is to switch managers on the Pimco Total Return active exchange-traded fund (ETF) and change its name.

According to a Securities and Exchange Commission filing, the current managers -  Citywire +rated Scott Mather, AA-rated Mark Kiesel and A-rated Mihir Worah - will be replaced by David Braun, A-rated Jerome Schneider and AA-rated Daniel Hyman.

The fund will be renamed the Pimco Active Bond ETF. The changes are expected to take place on May 8. It will keep the ticker BOND.

According to a spokewoman for Pimco, the firm is changing the fund's guidelines in an effort to address investors growing demand for income. 

‘The new portfolio manager team for, which includes Jerome Schneider who manages Pimco’s largest actively managed ETF, brings the right mix of expertise and experience in an evolving ETF investing environment where clients are seeking more income,’ she said. 

Schneider is the manager of the $6 billion Pimco Enhanced Short Maturity active ETF, which has the ticker MINT.

The Total Return ETF, which was at one time run by the firms co-founder Bill Gross, has seen its assets fall to $2 billion from its peak in 2013, $5.2 billion.

The fund hit headlines last December when the firm agreed to pay $20 million to settle charges that it misled investors about the performance of the ETF and failed to accurately value certain securities.

According to the SEC, Pimco’s Total Return ETF gained popularity with investors in its first four months, having launched in February 2012, due to performance based on buying smaller-sized bonds, known as odd lots.

However, the regulator said that in monthly and annual reports to investors, the Newport Beach-based asset manager provided other, misleading reasons for the ETF’s early success and failed to disclose that the resulting performance from the odd lot strategy was not sustainable as the fund grew in size.

Newport Beach, California-based Pimco manages $1.47 trillion of assets.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Events
  • Citywire DACH 2016

    Citywire DACH 2016

  • Citywire Alt Ucits 2016

    Citywire Alt Ucits 2016

  • Citywire Italy 2016

    Citywire Italy 2016

  • Citywire Berlin 2016

    Citywire Berlin 2016

  • Citywire Milan 2016

    Citywire Milan 2016

  • Citywire Switzerland 2016

    Citywire Switzerland 2016

  • Citywire Thailand 2016

    Citywire Thailand 2016

  • Citywire Paris Alt Ucits 2016

    Citywire Paris Alt Ucits 2016

  • Citywire Deutschland 2016

    Citywire Deutschland 2016

  • Citywire Amsterdam 2016

    Citywire Amsterdam 2016

  • Citywire Montreux 2016

    Citywire Montreux 2016

  • Citywire Latin America 2016

    Citywire Latin America 2016

  • Citywire Milan 2016

    Citywire Milan 2016

  • Citywire Munich 2016

    Citywire Munich 2016

  • Citywire Zurich Alt Ucits 2016

    Citywire Zurich Alt Ucits 2016

  • Citywire Paris 2015

    Citywire Paris 2015

  • Citywire Paris 2015

    Citywire Paris 2015

  • Citywire Global New Ideas 2015

    Citywire Global New Ideas 2015