View the article online at http://citywire.co.uk/money/article/a600822
Pimco partners Source launch bund ETF
Pimco German Government Bond Index Source ETF gives investors exposure to 'safe haven' German bunds.
Bond fund manager Pimco and exchange traded fund (ETF) provider Source have launched an ETF providing exposure to the German government bond market.
The Pimco German Government Bond Index Source ETF, which is physically based, uses Pimco’s ‘smart passive’ management to minimise tracking differences without engaging in securities lending on the fund.
German bonds are widely seen as a safe haven amid the ongoing eurozone crisis, which has pushed yields down to all-time lows of just over 1%.
Investors can also short ETFs, allowing them to take the inverse view on German government bonds, should conditions alter in these times of uncertainty over Europe.
Ted Hood, CEO of Source, said: ‘When investors look to reduce risk, the structure behind the investment vehicle – how it generates its returns – is as important as the choice of asset class.’
The ETF tracks the Markit iBoxx € Germany Index. It is registered for sale in the UK and across Europe, and is listed on the Deutsche Boerse.
The fund, which has a management fee of 0.15% a year, is the seventh Pimco Source ETF in the range.
News sponsored by:
The Citywire guide to investment trusts
In association with Aberdeen Asset Management
What can SLI bring to the table for those who want to put their money into investment trusts?
More about this:
Look up the shares
Tools from Citywire Money
From the Forums
Weekly email from The Lolly
Get simple, easy ways to make more from your money. Just enter your email address below
An error occured while subscribing your email. Please try again later.
Thank you for registering for your weekly newsletter from The Lolly.
Keep an eye out for us in your inbox, and please add firstname.lastname@example.org to your safe senders list so we don't get junked.
by David Kempton on Apr 21, 2015 at 08:00