Pimco and Source have joined forces once again and added a sterling-denominated, short maturity exchange-traded fund (ETF) developed to fulfill demand as short-term yields are at record lows and ways to enhance yield are limited.
The new product, called Pimco Sterling Short Maturity Source ETF, is aimed at investors holding cash balances and are looking to achieve higher returns but remain focused on capital preservation and liquidity. It follows the launch of the Euro-denominated and US dollar-denominated Mint ETFs.
Ted Hood, CEO of Source, said: "Investors have embraced the Mint ETFs as a tool for managing their cash holdings. They provide direct access to PIMCO’s expertise in a transparent and liquid structure. It was clear that we needed to offer a version in sterling.”
The head of sterling portfolios at Pimco, Mike Amey said: "Short-dated sterling risk-free rates will remain low for a multi-year period and as such, investors will increasingly look to achieve higher yields within a secure portfolio. Sterling Mint is specifically designed to do this by taking an active approach to cash management.”
The fund is registered for sale in the UK and Ireland with it currently going through the stages of being passported to other parts of Europe.
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