Source, one of the newest exchange-traded fund (ETF) providers in the market, has teamed up with fixed income manager Pimco to create and distribute fixed income ETFs in Europe.
The firms said the first Pimco Source Fixed Income ETFs are expected to come to market in early 2011.
ETFs have enjoyed surging popularity and fixed income is an area of high investor demand, according to industry experts.
Pimco Source plans to develop and offer ETFs that are Ucits-compliant, ranging from short maturity strategies to those investing in longer term securities.
William Gross, founder and co-CIO of Pimco said: "Pimco Source Fixed Income ETFs will provide investors in Europe with broader access to PIMCO's time-tested investment process and the depth and breadth of the resources of our two firms.”
Source CEO Ted Hood said: “The credit crunch proved that every fixed income portfolio needs a mix of skilled product engineering and experienced active management. Pimco is well positioned to provide an enhanced approach to both active and passive exposure.”
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