Pacific Investment Management Co. (PIMCO) said in a regulatory filing with the Securities and Exchange Commission last week that it has launched three new mutual funds.
The first two funds will track a new index called the RA Fundamental 1000 Index, which tracks the 1,000 largest public U.S. companies, based on research compiled by Financial Analyst Journal Editor Rob Arnott, the filing said. The index weights positions according to a number of factors including: sales, cash flow, book values and dividends.
The funds seek to replicate the underlying index by investing in options and futures as opposed to the actual stocks, using their respective cash balance collateral to buy short-term bonds, according to the filing. The PIMCO Fundamental Index Plus Fund will invest the collateral in bonds with an average duration between zero and one year. The PIMCO Fundamental Index Plus TR Fund will invest in bonds with a duration between one and six years.
The third fund, PIMCO Developing Local Markets, will invest in non-U.S. currency and bonds with a maximum duration of eight years and carry a 1.2% management fee for the administrative share class, in line with the industry average for world-bond offerings. Michael Gomez will manage the fund.