Bringing you live news and features since 2006 

One finger

PIMCO issues first actively managed fixed income ETF in Euroclear’s international structure

RELATED TOPICS​

PIMCO has launched the first actively managed fixed income ETF – The PIMCO Low Duration US Corporate Bond Source UCITS ETF – in Euroclear Bank’s international structure. 

The ETF has listed on the London Stock Exchange, and its primary market issuance will be in Euroclear Bank, the International Central Securities Depository (ICSD). Additionally, transaction settlement – both OTC and on-exchange – will take place within the ICSD structure, providing far greater simplicity and reduced risk and processing costs. Moreover, local CSDs can also provide posttrade services for such internationally-structured ETFs via their respective link with Euroclear Bank.

“We are delighted to be working with Euroclear to make available international settlement for our active PIMCO Low Duration US Corporate Bond Source UCITS ETF”, says Howard Chan, ETF product manager. “PIMCO is known as an innovator offering value-added ETFs through active and smart beta strategies. This step continues that spirit of innovation to improve European ETF trading dynamics.”

Stephan Pouyat, Global Head of Capital Markets at Euroclear, says: “PIMCO is embracing more efficient post-trade processing, circumnavigating the need for time-consuming realignments and extra inventory buffers when buying an ETF in one domestic market, and selling it on in another. As a result of issuing in this international format, bid/offer spreads are expected to tighten considerably, which should drive greater investor interest in ETFs across Europe and beyond.”

Firms investing in this asset class benefit from greater levels of settlement efficiency, afforded through a longer intraday settlement window and the deep pool of international clients that are part of Euroclear’s securities settlement lending programme.

Latest News

HSBC Asset Management’s (HSBC AM) ETF and Indexing business has passed USD100 billion in assets under management (AUM), reflecting its..
Amundi’s ETF Market Flows Analysis for April reveals that investors added EUR54.1 billion to global ETFs in April with equities..
VanEck has reached USD10 billion in assets under management in Europe for the first time in April 2024...
Global index revenues increased 9.3 per cent in 2023, totalling a record USD5.8 billion, according to a benchmark study published..

Related Articles

Dan Miller, IQ-EQ
With just over a week to go till T+1 settlement begins in North America, Canada and Mexico, time is of...
Emily Spurling, Nasdaq
Last October’s ETF Express US Awards 2023 found Nasdaq winning Best Index Provider – ESG ETFs and Best Index Provider...
Vinit Srivistava, MerQube
Index provider, MerQube, launched in 2019, with the aim of providing a “technology-driven answer to the most complex, rules-based investment...
Sean O' Hara
Pacer ETFs has announced the launch of three Cash Cows UCITS ETFs. The firm writes that this will give European...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by