SCM Private and 7IM have both invested in The PIMCO Sterling Short Maturity Source ETF (Sterling MINT), an exchange traded fund designed to meet a clear need in the market for high quality, diversified and well managed cash management tools, while providing the added benefits of enhanced yield potential.
The fund delivers its performance through an actively managed portfolio of short term investment. It aims to capture opportunities in the short-term fixed income markets, while remaining focused on security and liquidity.
Justin A Urquhart Stewart, Managing Director at 7IM says: "The good news is there are a lot of cash ETFs available to investors, however the Sterling Mint product is distinctly different from any others in that it is designed to deliver enhanced yield while maintaining high levels of security and liquidity. As such, it is an essential tool for cash allocation in any balanced fund".
Alan Miller, Founder of SCM Private says: "We decided to invest in Sterling MINT because of the extra yield it offers over short term cash whilst its focus on investing in ultra short duration securities with a high credit rating should preserve capital and maintain high liquidity. Furthermore, we appreciate the full transparency and daily publication of the portfolio holdings, currently unavailable in most non ETF products.”
Mike Amey, Head of Sterling Portfolios at PIMCO and Fund Manager of Sterling MINT (BBG: QUID LN), says: "With a current yield to maturity of 1.10% and duration of ¼ of a year, Sterling MINT presents an attractive proposition to investors. We believe that short-dated sterling rates will remain low for a multi-year period and as such investors will increasingly look to achieve higher yields within a high quality, secure and well diversified portfolio. Sterling MINT is specifically designed to do this by taking an active approach to cash management through a robust, liquid and transparent ETF structure. The fund will fully utilise PIMCO’s investment process and active management expertise in analysing appropriate opportunities in short-dated securities both within the UK and globally, when hedged returns look sufficiently attractive.”
