PIMCO has launched Foreign Currency Strategy Exchange Traded Fund (FORX)

PIMCO, a leading global investment management firm, has listed the PIMCO Foreign Currency Strategy Exchange Traded Fund (Ticker: FORX), created to offer investors the potential to benefit from fundamental changes in global currency dynamics by diversifying away from the dollar.

Article also available in : English EN | français FR

The fund will be jointly managed by Scott Mather, managing director and head of global portfolio management; Vineer Bhansali, managing director and head of quantitative investment portfolios; and Thomas Kressin, senior vice president and head of European foreign exchange.

Rising debt levels, limited fiscal flexibility and easy monetary policy in the U.S. may weigh on the dollar for years. FORX is a portfolio of currencies and local currency bonds actively managed to help investors diversify out of the dollar and preserve their purchasing power. The active management is a notable difference for an ETF marketplace made up mostly of passive products in which investors generally must form their own views on individual currencies or currency indexes.

“The ongoing transition away from the dollar as the preeminent global reserve currency is continuing and many competing currencies increasingly offer better yields and long-term credit dynamics," said Mr. Mather. "FORX is a purer way to gain foreign currency exposure and also avoids the unwanted exposures that can come with holding indirect currency plays such as equities or commodities."

PIMCO has decades of experience managing currencies on behalf of large institutional clients and has deep executional ability in the multi-trillion-dollar foreign currency market. Strategic allocations across developed and emerging currencies are based on the firm’s investment outlook, which includes macroeconomic insights formulated by the firm’s Investment Committee and based on the output of cyclical and secular economic forums.

FORX continues the expansion and innovation of PIMCO’s range of actively managed ETFs, which combine PIMCO’s time-tested global investment process with the tradability of the ETF vehicle, providing investors with intraday pricing and daily portfolio disclosure in a single share class.

Next Finance , February 2013

Article also available in : English EN | français FR

Share
Send by email Email
Viadeo Viadeo

Focus

Innovation Ossiam ETF on the Risk Weighted Enhanced Commodity Ex Grains TR Index

Using its expertise in systematic asset management, in 2013, Ossiam has set up an ETF offering a long only exposure to a risk weighted enhanced commodity index, based on S&P Goldman Sachs Commodity Index constituents, excluding (...)

© Next Finance 2006 - 2020 - All rights reserved