PIMCO and Source, have launched the PIMCO Sterling Short Maturity Source ETF (“Sterling MINT”). This is a new sterling‐denominated addition to the PIMCO Short Maturity Source range of ETFs and follows the launch earlier this year of the Euro‐denominated and US dollar‐denominated MINT ETFs..…
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In the current low yield environment characterised by negative real yields coupled with regulatory changes in the money market industry, cash investors are searching for opportunities to safely increase returns. The MINT suite of investment solutions, including Sterling MINT, provides a response to these requirements.
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 preservationand liquidity. The range combines the transparency and operational ease that investors expect from Source ETFs with PIMCO’s four decades of investment management expertise and thought leadership.
The fund is registered for sale in the UK and Ireland and is in the process of being passported to Austria, France, Finland, Germany, Italy (for institutional investors only), Netherlands, Norway and Sweden.
Ted Hood, CEO of Source commented on the launch: “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. Sterling Mint is specifically designed to do this by takingan active approach to cash management. It will fully utilise PIMCO’s expertise in analysing appropriate opportunities in short‐dated securities both within the UK and globally, where hedged returns look sufficiently attractive.”
PRODUCT SUMMARIES
The PIMCO Source MINT suite of investment solutions: PIMCO Sterling Short Maturity Source ETF, PIMCO EUR ShortMaturity Source ETF & PIMCO USD Short Maturity Source ETF
As the global economy transforms, the response from many has been to build cash balances and seek secure, liquid investments. Short‐term yields are at record lows. The alternatives for cash investors are shrinking as both banks and money market funds are increasingly constrained by regulation. Risks in security selection persist. These structural changes have led to a ‘New Normal’ for cash investors, characterised by lower yields, increased due diligence requirements and reduced investment choice.
For investors who are focused on capital preservation and liquidity, but considering ways to enhance yield, the options are limited.
The PIMCO Sterling Short Maturity Source ETF, PIMCO EUR Short Maturity Source ETF & PIMCO USD Short Maturity Source ETF have been developed as a response to this new environment.
Actively managed by PIMCO, one of the world’s leading investment managers, the funds aim to capture opportunities in the short‐term fixed income markets, while remaining focused on capital preservation and liquidity. The funds are designed to offer investors the following benefits:
PIMCO expertise ‐ direct access to world‐class portfolio management, credit analysis and interest rate forecasting expertise
– Enhanced yield potential ‐ the funds seek greater income and total return potential than money market funds
– Full transparency ‐ investors can see what the fund owns, on a daily basis
– Liquidity ‐ the fund trades and is priced throughout the day
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$8.5 BN in assets and has seen trading turnover of over US$220 BN since launch in April 2009. Source continues to focus on delivering incremental value to European ETF investors through a combination of enhanced indices, improved structuring and active trading, and is committed to delivering ETFs and Exchange Traded Commodities (ETCs) with unparalleled liquidity, increased transparency and reduced counterparty risk.
Source: ETFWorld – SourceETF
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