Global investment management firm PIMCO has partnered with exchange traded product provider Source, to launch a European UCITS ETF investing in US corporate bonds.

PIMCO has partnered with exchange traded product provider Source to launch a European UCITS ETF investing in US corporate bonds.

The PIMCO Low Duration US Corporate Bond Source UCITS ETF will invest in corporate bonds that are issued in US dollars, while the PIMCO Low Duration Euro Corporate Bond Source UCITS ETF will invest in euro denominated corporate bonds, PIMCO said in a statement.
 
The funds will actively invest in investment-grade corporate bonds with a focus on corporate bonds with maturities of less than five years, with the average duration of the portfolio limited to between zero and four years.

Both ETFs have an annual management fee of 0.49 per cent, reduced to 0.39 per cent per annum by a one year fee waiver of 0.10 per cent. The ETFs will trade on the London Stock Exchange and Xetra under the respective tickers of LDCU LN and LDCE GY.

“We see many bottom-up investment opportunities in both the US and Euro credit markets, particularly in industries with pricing power and compelling growth prospects with high barriers to entry. Investors now have the ability to access PIMCO’s credit expertise and active management capabilities while still being able to make their own country and currency allocation decisions,” said Mark Kiesel, PIMCO CIO-Credit.