Pimco, an investment management firm, has entered into an agreement with Source, a provider of exchange-traded products, to introduce and distribute fixed income ETFs in the European market.
The firms are creating a range of products designed to provide fixed income exposure to European investors.
Investors can expect the first products to be launched early 2011.
Pimco Source is designing ETFs to meet investor demand for more than the traditional benchmark exposure. It will develop and offer Ucits ETFs, ranging from short maturity strategies to those investing in longer term securities.
"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. This effort marks another important step in Pimco’s multi-year evolution as a provider of a full spectrum of global investment solutions. We are focused on meeting the broadest needs of our clients by offering the optimal vehicle for each," says William H. Gross, founder and co-chief investment officer of Pimco.
Source chief executive Ted Hood adds: “Through our range of equity and commodity index products, Source is now one of the fastest growing ETP providers in Europe. Developing fixed income products is a natural next step. The credit crunch proved that every fixed income portfolio needs a mix of skilled product engineering and experienced active management. Pimco, as one of the world’s leading fixed income managers, is well positioned to provide an enhanced approach to both active and passive exposure, and is the perfect partner for Source in this venture.”
