PIMCO registers the PIMCO Flexible Emerging Markets Income Fund

Pacific Investment Management Company LLC (“PIMCO”) registered the PIMCO Flexible Emerging Markets Income Fund (the “Fund”) on 3/22/2021, which it will operate as a type of mutual fund called an “interval fund.”

The Fund “seeks to provide attractive risk-adjusted returns and current income,” as summarized by its prospectus. The Fund will pursue this strategy by “investing, under normal circumstances, across a wide array of instruments, including from sovereign, quasi-sovereign and corporate borrowers, that are economically tied to ‘emerging market’ countries.” The Fund allocates assets among multiple public and private credit sectors in emerging markets, such as:

· Corporate debt

· Mortgage-related and other consumer-related instruments

· Collateralized debt obligations

PIMCO estimates that the Fund will have a portfolio duration between zero and twelve years, though that figure is subject to change. The Fund plans to invest at least 80% of its assets under management in instruments “tied economically to ‘emerging market’ countries.” These include:

· Corporate debt securities from U.S. and foreign companies

· Municipal securities

· Obligations of foreign governments or their sub-divisions

· Bank loans and loans held by private institutions

· Payment-in-kind securities

· Zero-coupon bonds, catastrophe bonds, and inflation-indexed bonds

· Structured notes, including hybrid or indexed securities

· Credit-linked notes; preferred securities

· Convertible debt securities

· Bank certificates of deposit

PIMCO uses their own definition of “emerging markets” to evaluate opportunities. This definition centers on designation as an “emerging or developing economy” by an organization such as the World Bank or United Nations but is also influenced by market index definitions of “emerging markets.” The Fund focuses on nations with “relatively low gross national product per capita and with the potential for rapid economic growth.” The regions of focus are Asia, Africa, the Middle East, Latin America, and certain developing countries in Europe.

The fund currently offers five classes of shares:

· Institutional Class

· Class A-1

· Class A-2

· Class A-3

· Class A-4

The Fund is managed by PIMCO, which currently has approximately $2.2 trillion in assets under management as of 2021.

Dechert LLP serves as the Fund’s legal team.

To read more about PIMCO, visit PIMCO.com