Pimco and Source launch bund ETF

GermanyUS-based asset manager Pimco is launching an exchange-traded fund (ETF) aimed at investors who want to put money in one of the few European asset classes considered safe: German government bonds. In partnership with ETF provider Source, Pimco is launching the German Government Bond Index Source ETF on Deutsche Börse, where it will aim to track the Markit iBoxx € Germany Index. “German government bonds are a core investment position in most Europeans’ portfolios, and the bund ETF provides access to Pimco’s index replication and trade execution capabilities in government bonds," said Michael Surowiecki, who will manage the fund for Pimco. Surowiecki said there are more than €1.1 trillion of German government bonds in outstanding issuance. The ETF will employ “smart passive management” to minimise tracking error without the use of securities lending. It is the seventh ETF in a range that Pimco and Source began last year. ©2012 funds europe

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