PIMCO, a leading global investment management firm, and Source, a leading European provider of Exchange Traded Products (ETPs), announce the listing of two ETFs on the SIX Swiss Exchange….
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Ted Hood, Source CEO
The PIMCO Euro Short Maturity Source UCITS ETF and the PIMCO US Dollar Short Maturity Source UCITS ETF were launched in 2011, initially on Xetra and the London Stock Exchange, and since then have gathered assets of €1.3 billion and US$1.8 billion respectively.
These short maturity funds – known as ‘MINT’ – were the first actively managed ETFs to be listed in Europe and offer investors direct access to PIMCO’s global cash management expertise. Their aim is to preserve capital and provide the potential for superior income and total returns compared to traditional money market funds. They do this by investing in baskets of short-term investment grade debt securities. The funds are wholly transparent, with full disclosure of holdings published daily.
The fund managers look to take advantage of opportunities in the market by actively managing exposure to duration and credit. Currently, the Euro fund has an effective duration of 0.98 years, while the US Dollar fund has a shorter duration of 0.51 years. Both funds maintain duration of up to 1 year. In terms of credit exposure, the average rating within the two funds is currently A+.
“Since their launch, the two funds have grown to become the largest actively managed fixed income ETFs in all of Europe,” says Fabrizio Palmucci, Director at Source. “Many investors have really struggled to find a pick-up in short-term yield, especially with interest rates at all-time lows. The combination of a proven fixed income manager, a successful investment strategy, a relatively low level of risk, all offered in a transparent and highly liquid structure is clearly meeting the needs of European investors.”
“We are seeing significant interest in the MINT products,” says Source CEO Ted Hood. “They were created to provide low volatility and enhanced returns over cash. Performance to date has been strong relative to the benchmark, for example the US Dollar fund returning 3.54% since inception in February 2011, compared to 0.21% for the Citigroup 3-month Treasury Bills index. And that’s net of fees.
“We are committed to expanding the range of funds available for investors to access via the SIX Swiss Exchange. We listed our first products in Switzerland in 2010 and, with the addition of the latest offerings, now have 32 ETPs trading on the exchange.”
The PIMCO Euro Short Maturity Source UCITS ETF and the PIMCO US Dollar Short Maturity Source UCITS ETF both have an annual management fee of 0.35% and will trade under the respective tickers of PJS1 SW and MINT SW.
Source: ETFWorld.co.uk
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