Topic: How To Invest

Q: Hello, Pat. Do you have an opinion on PIMCO Global Short Maturity Fund (Canada) ETF as a parking spot for cash in this rocky and volatile market. Any feedback is appreciated. Thanks.

Article Excerpt

A: The PIMCO Global Short Maturity Fund (Canada) ETF, $20.12, symbol PMNT on Toronto (Units outstanding: 3.2 million; Market cap: $64.32 million; www.pimco.ca) was recently launched by PIMCO. Based in Newport, California, PIMCO is one of the world’s biggest fixed-income investment managers. It’s owned by Germany-based Allianz S.E., a major global diversified financial services provider. The PIMCO Global Short Maturity Fund (Canada) ETF began trading on the Toronto exchange on February 1, 2019, under the ticker PMNT. The fund also has a traditional mutual fund series available for investors. The ETF, which aims to offer higher income potential than traditional cash investments, holds non-Canadian dollar, fixed-income instruments with short-term maturities under one year. It focuses on what it sees as ultra-short, high-quality fixed-income securities that offer higher income potential than traditional cash investments, with “modest” additional risk. This includes short-dated securities such as U.S. Treasury Bills and other government-guaranteed securities, investment-grade short-term corporate bonds and high-quality corporate debt instruments. The fund’s ultra-short duration is…