.jpg)
Two ETFs issued by PIMCO Source can be traded in Deutsche Börse’s XTF segment for the first time. Both funds are tradable for the first time worldwide, and only on Xetra.
“We welcome new issuer PIMCO Source to Xetra and are delighted that PIMCO and Source have chosen a primary listing on Europe’s leading platform for exchange-traded index funds. Traders across Europe benefit from a highly liquid offering via our Xetra network. Today we are expanding our range with two innovative products, including, for the first time, an actively managed bond ETF,” said Rainer Riess, Managing Director of Xetra Market Development at Deutsche Börse.
Ted Hood, CEO of Source commented on the launch “The new PIMCO Source ETFs have been developed to respond to the challenges posed by current market conditions and to capture fixed income opportunities as they arise. For Government bond investors, the PIMCO European Advantage Government Bond Index Source ETF, which seeks to provide the performance of PIMCO’s innovative GDP-weighted European Advantage Government Bond Index, avoids the bias to highly indebted countries that market cap indices deliver.”
Tammie Arnold, Managing Director at PIMCO, commented “We believe these two new fixed income ETFs meet a growing demand among European investors for well-engineered fixed income ETFs, with actively managed strategies for risk management and higher return potential and passive strategies with optimized replication of both traditional and innovative benchmarks. The PIMCO EUR Enhanced Short Maturity Source ETF is designed for investors who hold cash balances and are looking to achieve enhanced cash returns while remaining focused on capital preservation and liquidity.”
Both of these bond ETFs are newly listed in the XTF segment:
ETF name: PIMCO European Advantage Government Bond Index Source ETF
Asset class: bond index ETF
ISIN: IE00B5VJLZ27
Total expense ratio: 0.30 percent
Distribution policy: distributing
Benchmark: PIMCO European Advantage Government Bond Index
ETF name: PIMCO Euro Enhanced Short Maturity Source ETF
Asset class: actively managed bond ETF
ISIN: IE00B5ZR2157
Total expense ratio: 0.35 percent
Distribution policy: distributing
Benchmark: EONIA
The PIMCO European Advantage Government Bond Index Source ETF seeks to provide the performance of the PIMCO European Advantage Government Bond Index. The index is comprised of investment-grade, euro-denominated government bond securities in the Eurozone. Weighting within the index is based on gross domestic product, therefore avoiding overweighting in highly indebted countries.
With the PIMCO Euro Enhanced Short Maturity Source ETF, investors can invest for the first time in an actively managed, diversified portfolio of fixed-income securities with a maturity of up to a year. The investment objective is to exceed the performance of the money market. The securities are euro zone government bonds denominated in euros and issued or guaranteed by governments, their regional authorities, bodies or institutions. They may also include corporate bonds, mortgage-backed securities and other asset-backed securities.
The product offering in Deutsche Börse’s XTF segment currently contains a total of 763 exchange-listed index funds, making it the largest offering of all European stock exchanges. This selection, together with an average monthly trading volume of 13 billion euros, makes Xetra Europe’s leading trading venue for ETFs.
About PIMCO Source
PIMCO is a global investment solutions provider, focused on managing risk and delivering returns for its clients. The firm manages assets of US$ 1.2 trillion for millions of individuals and institutions around the world and is the acknowledged leader in fixed income. Source is one of the fastest growing ETF providers in Europe, having raised over US$6.5 billion and having more than US$160 billion traded in its products since launch in April 2009. In December 2010, PIMCO and Source announced their partnership to create a range of fixed income ETFs. The PIMCO Source Fixed Income ETFs (”PIMCO Source”) combine the transparency and operational ease that investors expect from Source ETFs with PIMCO’s four decades of investment management expertise and thoughts leadership.
Xetra® and XTF® are registered trademarks of Deutsche Börse AG.
