PIMCO and Source have launched the PIMCO Sterling Short Maturity Source ETF, a sterling-denominated addition to the PIMCO Short Maturity Source range of ETFs.
The move follows the launch earlier this year of the Euro-denominated and US dollar-denominated MINT ETFs. The two groups see the MINT suite as a solution for cash investors searching for opportunities to safely increase returns in the current low yield environment characterised by negative real yields coupled with regulatory changes in the money market industry.
The PIMCO Source MINT suite of investment solutions is designed for investors who hold cash balances and are looking to achieve higher returns while remaining focused on capital preservation and liquidity.
The fund is registered for sale in the UK and Ireland and is in the process of being passported to Austria, France, Finland, Germany, Netherlands, Norway and Sweden, and Italy for institutional investors only.
Ted Hood, CEO of Source commented: “Investors have embraced the MINT ETFs as a tool for managing their cash holdings. They provide direct access to PIMCO’s expertise in a transparent and liquid structure. It was clear that we needed to offer a version in Sterling.”
Mike Amey, Head of Sterling Portfolios at PIMCO and Fund Manager of Sterling MINT, said: "We believe that short-dated sterling risk-free rates will remain low for a multi-year period and as such, investors will increasingly look to achieve higher yields within a secure portfolio.”
The addition of this new ETF brings Source’s product range to 93 across equity, fixed income and commodity segments of the market. Source has now over US$8.5bn in assets and has seen trading turnover of over US$220bn since launch in April 2009.
Product Name: PIMCO Sterling Short Maturity Source ETFPIMCO EUR Short Maturity Source: ETF PIMCO USD Short Maturity Source ETF PIMCO European Advantage Government Bond Index Source ETF
Porfolio Manager: Mike AmeyAndrew Bosomworth, Jerome Schneider, Dr. Vineer Bhansali
Bloomberg Ticker: QUID LNPJS2 GRMINT LNPJS1 GR
Fund and trading currency: GBPEURUSDEUR
Management Fee: 0.30%-0.35% per annum
Listing: London Stock Exchange (LSE), Deutsche Börse (Xetra)
Benchmark Index: LIBID GBP 3 Month EONIA Citigroup 3-month Treasury Bill Index: PIMCO European Advantage Government Bond Index
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till