Financial Innovation: new fund to benefit currency dynamics from PIMCO
PIMCO, an Allianz company & 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.
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.
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.
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