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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.
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by Chris Marshall on Dec 11, 2013 at 09:00