LDUR Profile
The PIMCO Enhanced Low Duration Active Exchange-Traded Fund aims to provide investors with a stable income stream while minimizing interest rate risk by maintaining a low duration profile. To achieve this objective, the fund invests at least 80% of its net assets in a diversified range of fixed income securities. These securities include bonds, notes, and other debt instruments with varying maturities, which may be represented through forwards or derivatives such as options, futures contracts, and swap agreements.
The fund primarily targets investment-grade debt securities, which are typically issued by governments, corporations, or other entities with high credit ratings. This focus on investment-grade assets helps to mitigate credit risk and enhance overall portfolio stability. However, the fund also maintains the flexibility to invest up to 15% of its total assets in high-yield securities, which are lower-rated or unrated debt instruments that offer higher potential returns but come with increased credit risk.
The fund's investment strategy is designed to actively manage interest rate risk and credit exposure while seeking to deliver attractive risk-adjusted returns. By investing in a range of fixed income instruments and utilizing derivatives, the fund can adjust its portfolio to navigate changing market conditions and interest rate environments effectively. The use of derivatives allows for tactical positioning and enhanced portfolio management.
Managed by PIMCO, a leading global investment management firm known for its expertise in fixed income markets, the fund benefits from the firm's extensive research and analysis capabilities. PIMCO's approach to managing the fund incorporates rigorous credit analysis, interest rate forecasting, and strategic asset allocation to achieve its investment goals. As a result, the fund provides investors with a dynamic and actively managed solution for fixed income exposure, designed to adapt to evolving market conditions.
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