Pimco and Source to launch fixed income ETFs

Pimco and Source have created a range of Ucits fixed income ETFs, ranging from short maturity strategies to those investing in longer term securities.

In a joint statement, the groups say all Pimco Source ETFs will benefit directly from Pimco’s fixed income expertise and investment management process as well as Source’s proven distribution model and ability to enhance trading liquidity.

Both Pimco and Source expect demand among European investors for “smarter ETFs” – a range of active funds for benchmark out-performance and passive funds with forward-looking benchmarks offering more advantageous exposure.

The groups have not yet provided further details for the individual ETFs The first products are scheduled for launch early next year and will be based in Ireland.