Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:PIMCO Commodity Fund Readied for IRS Deadline Not Rated 0.0 Email Routing List Email & Route  Print Print
Friday, May 19, 2006

PIMCO Commodity Fund Readied for IRS Deadline

by: Marie Glancy

PIMCO has made known it's on track to meet IRS requirements for its PIMCO Commodity Real Return Fund ahead of the June 30 deadline set by the Revenue Service.

In an interview posted May 17 on the Web site of Allianz Global Investors, distributor of the fund, PIMCO senior vice president and Real Return product manager Bob Greer explained that the company has converted 95 percent of its asset base to comply with the stipulations of the IRS.

Last December, the IRS ruled that, to retain its favorable tax treatment as a mutual fund, the Real Return fund must obtain at least 90 percent of its gross income from sources of income that qualify as securities -- not, according to the IRS, commodity-linked swaps or other commodity-linked derivative instruments PIMCO had favored. The Newport Beach, California-based firm chose to move the fund's underlying investments to commodity-linked structured notes.

Greer said that as of Monday, May 15, the fund had over $12 billion -- or 95 percent -- of its commodity index exposure in notes issued by more than 18 different issuers. The figure was up from $5.4 billion converted as of April 7.

"The transition is virtually complete, and we believe that we will be able to manage the Fund in compliance with the IRS ruling. We expect management of the Fund to be uninterrupted, and we do not plan to close the Fund to new investors," said Greer.

He added that issuers were able to meet PIMCO's need for notes, but said PIMCO is also seeking to add other issuers with good credit. Finding brokers for commodities derivatives can be difficult: earlier this year, OppenheimerFunds closed its Oppenheimer Real Asset Fund, citing a dearth of issuers. 

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2024: Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use