SOURCE ETFs: PIMCO AND SOURCE LAUNCH EUR-HEDGED CLASS FOR SHORT-TERM HIGH YIELD ETF
(Thomson Reuters ONE) -
PRESS RELEASE
(Not for release in the United States of America)
PIMCO AND SOURCE LAUNCH EUR-HEDGED CLASS FOR SHORTERM HIGH YIELD ETF
London, 21(st) October 2013: PIMCO and Source are pleased to announce that their
flagship PIMCO Short-Term High Yield Corporate Bond Index Source ETF, managed by
PIMCO, is now available in a EUR-hedged version. The existing USD share class
has already grown to US$ 550 million[1] since its launch in March 2012, driven
by the product's high yield per unit of duration and appealing current yield[2].
The PIMCO Short-Term High Yield Corporate Bond Index Source ETF aims to provide
the performance of the BofA Merrill Lynch 0-5 Year US High Yield Constrained
Index, a broad benchmark of over 800 USD-denominated corporate bonds. The ETF is
physically invested in bonds and is managed by PIMCO, benefiting from PIMCO's
extensive expertise in smart passive index replication and credit filtering. The
EUR-hedged share class aims to provide euro-based investors the same underlying
fund exposure while minimizing the effects of exchange rate fluctuations between
the U.S. dollar and euro.
"Short term high yield is a segment of the market which continues to resonate
with investors, combining low interest rate risk with enhanced yields," says
Howard Chan, ETF product manager at PIMCO, EMEA. "Since launch, we believe that
this ETF has delivered both a high level of yield and lower volatility compared
to other products in the broad high yield sector."
"Our short-term high yield ETF has clearly struck a chord with yield-seeking
investors," adds Source CEO Ted Hood. "However, not everyone wants the USD
exposure. In response to strong client demand, we are happy to be launching a
EUR-hedged share class and further broadening the appeal of PIMCO Source ETFs."
The PIMCO Short-Term High Yield Corporate Bond Index Source ETF is traded on the
London Stock Exchange. Management fees are 0.60% p.a. for the EUR-hedged share
class and 0.55% p.a. for the USD share class.
PRODUCT SUMMARY
+------------------+-----------------------------------------------------------+
|Product name |PIMCO Short-Term High Yield Corporate Bond Index Source ETF|
+------------------+-----------------------------------------------------------+
|Benchmark | The BofA Merrill Lynch 0-5 Year US High Yield Constrained |
| | Index SM |
+------------------+-----------------------------------------------------------+
|Trading | London Stock Exchange |
+------------------+-----------------------------------------------------------+
|Base currency | USD |
+------------------+---------------+-------------------------------------------+
|Share class | EUR-hedged | USD |
+------------------+---------------+-------------------------------------------+
|Trading currency | EUR | USD |
+------------------+---------------+-------------------------------------------+
|Management fee |0.60% per annum| 0.55% per annum |
+------------------+---------------+-------------------------------------------+
|ISIN | IE00BF8HV600 | IE00B7N3YW49 |
+------------------+---------------+-------------------------------------------+
|Bloomberg (ticker)| STHE LN | STHY LN |
+------------------+---------------+-------------------------------------------+
|Reuters (ticker) | STHE.L | STHY.L |
+------------------+---------------+-------------------------------------------+
|Dividends | Paid monthly |
+------------------+-----------------------------------------------------------+
|Domicile | Ireland |
+------------------+-----------------------------------------------------------+
Source UK Services Limited is authorised and regulated by the Financial Conduct
Authority in the UK.
PIMCO Europe Ltd (Company No. 2604517), PIMCO Europe, Ltd Munich Branch (Company
No. 157591), PIMCO Europe, Ltd Amsterdam Branch (Company No. 24319743), and
PIMCO Europe Ltd - Italy (Company No. 07533910969) are authorised and regulated
by the Financial Conduct Authority (25 The North Colonnade, Canary Wharf, London
E14 5HS) in the UK. The Amsterdam, Italy and Munich Branches are additionally
regulated by the AFM, CONSOB in accordance with Article 27 of the Italian
Consolidated Financial Act, and BaFin in accordance with Section 53b of the
German Banking Act, respectively. PIMCO Europe Ltd services and products are
available only to professional clients as defined in the Financial Conduct
Authority's Handbook and are not available to individual investors, who should
not rely on this communication.
Important Information
PIMCO Fixed Income Source ETFs plc is regulated by the Central Bank of Ireland.
The prospectus documentation describing the products, risks and related costs of
Source products are available for residents of countries where such products are
authorised for sale at www.source.info.
"BofA Merrill Lynch" and "The BofA Merrill Lynch 0-5 Year US High Yield
Constrained Index" are reprinted with permission. © Copyright 2012 Merrill
Lynch, Pierce, Fenner & Smith Incorporated ("BofA Merrill Lynch"). All rights
reserved. "BofA Merrill Lynch" and "The BofA Merrill Lynch 0-5 Year US High
Yield Constrained Index" are service marks of BofA Merrill Lynch and/or its
affiliates and have been licensed for use for certain purposes by PIMCO on
behalf of the Fund that is based on The BofA Merrill Lynch 0-5 Year US High
Yield Constrained Index, and is not issued, sponsored, endorsed or promoted by
BofA Merrill Lynch and/or BofA Merrill Lynch's affiliates nor is BofA Merrill
Lynch and/or BofA Merrill Lynch's affiliates an adviser to the Fund. BofA
Merrill Lynch and BofA Merrill Lynch's affi liates make no representation,
express or implied, regarding the advisability of investing in the Fund or The
BofA Merrill Lynch 0-5 Year US High Yield Constrained Index and do not guarantee
the quality, accuracy, timeliness or completeness of The BofA Merrill Lynch 0-5
Year US High Yield Constrained Index, index values or any index related data
included herein, provided herewith or derived therefrom and assume no liability
in connection with their use. As the index provider, BofA Merrill Lynch is
licensing certain trademarks, The BofA Merrill Lynch 0-5 Year US High Yield
Constrained Index and trade names which are composed by BofA Merrill Lynch
without regard to PIMCO, the Fund or any investor. BofA Merrill Lynch and BofA
Merrill Lynch's affiliates do not provide investment advice to PIMCO or the Fund
and are not responsible for the performance of the Fund.
The products described within this publication are not suitable for everyone.
Investors' capital is at risk and they may get back less than they invested.
Investors should not deal in these products unless they understand their nature
and the extent of their exposure to risk. Past performance is not a guarantee or
a reliable indicator of future results. The value of these products can go down
as well as up and can be subject to volatility due to factors such as price
changes in the underlying instrument and interest rates. It is recommended that
potential investors study the relevant product prospectus before investing.
ENDS
For further information:
Source Tel: +44 20 3370 1102
Michael John Lytle invest(at)source.info
PIMCO Tel: +44 20 3640 1414
Jennifer Spive jennifer.spivey(at)pimco.com
CTF Corporate & Financial Tel: +44 20 3540 6456
Adrian Flook flook(at)ctfcomms.com
Notes to Editors:
About PIMCO
With more than US$627 billion (?482 billion, £412 billion)[3]() of assets
managed or serviced out of Europe and more than US$1.97 trillion of client
assets worldwide (?1.51 trillion, £1.29 trillion)[3], including US$1.60 trillion
(?1.23 trillion, £1.05 trillion) in third party client assets, PIMCO is one of
the world's leading investment management companies.
Founded in 1971 with offices in 12 countries throughout North America, Europe,
Asia and Latin America, PIMCO offers a wide range of innovative solutions to
help millions of investors worldwide meet their needs. Our goal is to provide
attractive returns while maintaining a strong culture of risk management and
long-term discipline.
About Source
Source is one of Europe's leading Exchange Traded Product (ETP) providers, with
over US$15 billion in assets under management and the second highest European
ETP net new asset inflows in 2012. Since launch in April 2009, Source has
focused on delivering incremental value to European ETP investors through a
combination of enhanced indices, strong partnerships, improved structuring and
active trading. Its range of 80 products gives investors the ability to gain
exposure to equities, commodities, fixed income and alternative assets, through
ETF and ETC structures with deep liquidity, increased transparency and reduced
counterparty risk.
Further information about Source is available at www.source.info
[1] As at 21 October 2013
[2] Current yield of 6.31% and a yield per unit of duration of 3.11, as at 1
October 2013
[3] PIMCO AUM data as of 31 August 2013
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: SOURCE (UK) SERVICES LTD via Thomson Reuters ONE
[HUG#1736741]
Unternehmensinformation / Kurzprofil:
Datum: 21.10.2013 - 10:01 Uhr
Sprache: Deutsch
News-ID 307409
Anzahl Zeichen: 11359
contact information:
Town:
LONDON
Kategorie:
Business News
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