PIMCO, a global investment management firm, launched a $1 billion interval fund – the PIMCO Flexible Credit Income Fund, which is the first for the company.
PIMCO Flexible Credit Income Fund currently offers one class of common shares – institutional class. These shares are available to pension and profit sharing plans, employee benefit trusts, endowments, foundations, corporations and high net worth individuals.
The fund plans to invest across global credit sectors, including consumer, corporate, emerging market, mortgage and municipal bonds. At least 80 percent of its net assets will be invested in a portfolio of debt instruments of varying maturities and the remaining 20 percent will be invested in open- or closed-end management investment companies and real estate investment trusts.
“In a low yielding environment, it is increasingly important to have the flexibility and resources to invest in both the public and private credit markets,” said Alfred Murata, managing director and portfolio manager. “We believe the flexibility of an interval fund structure allows investors to seek to capitalize on dislocations across global credit markets while remaining flexible to better navigate periods of short-term volatility.”
The institutional shares are initially priced at $10.00 per share and have a $1 million initial minimum investment. Shares include a 1.69 percent management fee, but have no sales commissions, distribution fees or service fees.
The fund expects to offer to repurchase 5 percent of the outstanding shares at net asset value, and may impose redemption fees of up to 2 percent for repurchased shares held for less than one year.
PIMCO Investments, a broker-dealer subsidiary of PIMCO, is the principal underwriter and distributor of the shares.
PIMCO is a global investment management firm with $1.47 trillion in assets under management. Founded in 1971, the company has offices in 11 countries throughout North America, Europe and Asia with more than 2200 employees worldwide.