PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT US) - Portfolio Construction Methodology

Core Viewpoint - The PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT) focuses on maximizing current income while ensuring capital preservation and daily liquidity through investments in short-maturity, high-quality USD-denominated fixed-income instruments [1] Investment Strategy - The fund primarily invests in U.S. government and agency securities, investment-grade corporates, asset-backed and mortgage-related securities, and money-market instruments, with limited exposure to non-USD and lower-rated securities [1] - Security selection combines macroeconomic views with issuer-level credit analysis, prioritizing stable cash flows, robust structures, and minimal extension or convexity risk [1] Portfolio Construction - The portfolio maintains a short interest-rate profile with tight dispersion around the target duration, ensuring diversified sector exposure and position sizes linked to liquidity and downside risk [1] - Derivatives may be utilized to fine-tune duration, curve, or currency exposures, which are hedged [1] - Ongoing rebalancing aims to capture roll-down and new-issue concessions, harvest spread mean-reversion, and reduce positions that may face downgrade, liquidity erosion, or unfavorable call features [1]