PRESS RELEASE For release in UK and Austria Not for release in the United States of America

Transcription

1 PRESS RELEASE For release in UK and Austria Not for release in the United States of America PIMCO AND SOURCE ANNOUNCE THE LAUNCH OF THREE FIXED INCOME ETFs: PIMCO Euro Enhanced Short Maturity Source ETF, PIMCO European Advantage Government Bond Index Source ETF and PIMCO US Dollar Enhanced Short Maturity Source ETF London, 28 February 2011: PIMCO, a leading global investment management firm and Source, a specialist provider of exchange traded products, have launched a range of fixed income ETFs on two European stock exchanges. The PIMCO Euro Enhanced Short Maturity Source ETF and the PIMCO European Advantage Government Bond Index Source ETF are listed on the Deutsche Börse, and the PIMCO US Dollar Enhanced Short Maturity Source ETF on the London Stock Exchange. Government and money market ETFs in Europe represent over 65% of European fixed income ETF assets. These newly launched ETFs provide investors with a wider and more innovative choice of products in both benchmark selection and liquidity management. These new additions to Source s product range are the first fixed income ETFs developed and launched in partnership with PIMCO. They combine the transparency and operational ease that investors expect from Source ETFs with PIMCO s four decades of investment management expertise and thought leadership. The funds are registered for sale in Austria, Finland, Germany, Ireland, Italy (for institutional investors only), Netherlands, Norway, Sweden and the UK. Ted Hood, CEO of Source commented on the launch:

2 The new PIMCO Source ETFs combine skilled product engineering with PIMCO s proven ability to manage risk and deliver returns. We believe these products will be valuable tools for capturing opportunities in today s challenging fixed income markets. Tammie Arnold, Managing Director at PIMCO, commented: We believe these three new fixed income ETFs meet a growing demand among European investors for well-engineered fixed income ETFs, with actively managed strategies for risk management and higher return potential and passive strategies with optimised replication of innovative benchmarks. PRODUCT SUMMARIES PIMCO Euro Enhanced Short Maturity Source ETF & PIMCO US Dollar Enhanced Short Maturity Source ETF As the global economy transforms, the response from many has been to build cash balances and seek secure, liquid investments. Short-term yields are at record lows. The alternatives for cash investors are shrinking as both banks and money market funds are increasingly constrained by regulation. Risks in security selection persist. These structural changes have led to a New Normal for cash investors, characterised by lower yields, increased due diligence requirements and reduced investment choice. For investors who are focused on capital preservation and liquidity, but considering ways to enhance yield, the options are limited. The PIMCO Euro Enhanced Short Maturity Source ETF and the PIMCO US Dollar Enhanced Short Maturity Source ETF have been developed as a response to this new environment. Actively managed by PIMCO, one of the world s leading investment managers, the two funds aim to capture opportunities in the short-term fixed income markets, while remaining focused on capital preservation and liquidity. The funds are designed to offer investors the following benefits:

3 - PIMCO expertise - direct access to world-class portfolio management, credit analysis and interest rate forecasting expertise - Enhanced yield potential - the fund seeks greater income and total return potential than money market funds - Full transparency - investors can see the bonds the fund owns, on a daily basis - Liquidity - the fund trades and is priced throughout the day PIMCO European Advantage Government Bond Index Source ETF The global economy is in the midst of dramatic transformations that challenge the effectiveness of traditional indexed investments. Drivers of growth and wealth creation are changing and emerging economies are rapidly developing. At the same time, we have seen an explosion of public debt levels in industrialised countries. Traditional bond indices - by virtue of their market capitalisation weighting methodology - have an inherent bias towards economies with high levels of debt. As concerns about sovereign creditworthiness become more critical to asset allocation, there is genuine need for an alternative. The PIMCO European Advantage Government Bond Index Source ETF seeks to provide the performance of the PIMCO European Advantage Government Bond Index. The index is designed to offer an improved benchmark for Eurozone government bond exposure by using PIMCO s Global Advantage GDP-weighting methodology to produce an index that has lower weights for highly indebted countries, has the potential to benefit from counter-cyclical rebalancing and is forward looking. By avoiding the bias of market capitalisation indices, the fund can help investors capture opportunities in today s dynamic fixed income market and offer the potential for higher riskadjusted returns. The fund s design seeks to provide investors with the following benefits: - Improved benchmark - exposure to the PIMCO European Advantage Government Bond Index - Full transparency - investors can see what the fund owns, on a daily basis - Liquidity - the fund trades and is priced throughout the day

4 Product Name PIMCO US Dollar Enhanced Short Maturity Source ETF PIMCO European Advantage Government Bond Index Source ETF PIMCO Euro Enhanced Short Maturity Source ETF Porfolio Manager Jerome Schneider Dr. Vineer Bhansali Andrew Bosomworth Bloomberg Ticker MINT LN PJS1 GR PJS2 GR Fund and trading USD EUR EUR currency Management Fee 0.35% per annum 0.30% per annum 0.35% per annum Listing London Stock Exchange Deutsche Börse (Xetra) Deutsche Börse (Xetra) (LSE) Benchmark Index Citigroup 3-month Treasury Bill Index PIMCO European Advantage Government EONIA Bond Index Domicile Ireland Ireland Ireland The addition of these new ETFs brings Source s product range to 86 across equity, fixed income and commodity segments of the market. Source has now over US$6.5 BN in assets and has seen trading turnover of over US$160 BN since launch in April Source continues to focus on delivering incremental value to European ETF investors through a combination of enhanced indices, improved structuring and active trading, and is committed to delivering ETFs and Exchange Traded Commodities (ETCs) with unparalleled liquidity, increased transparency and reduced counterparty risk.

5 Important Information The products described within this publication are not suitable for everyone. Investors' capital is at risk. Investors should not deal in these products unless they understand their nature and the extent of their exposure to risk. The value of these products can go down as well as up and can be subject to volatility due to factors such as price changes in the underlying instrument and interest rates. It is recommended that potential investors study the Prospectus before investing. Source UK Services Limited is authorised and regulated by the Financial Services Authority (25 The North Colonnade, Canary Wharf, London E14 5HS) in the UK. PIMCO Europe Ltd, PIMCO Europe Ltd Munich Branch and PIMCO Europe Ltd Amsterdam Branch are authorised and regulated by the Financial Services Authority (25 The North Colonnade, Canary Wharf, London E14 5HS) in the UK. PIMCO Europe Ltd Munich Branch is additionally regulated by the BaFin in Germany in accordance with Section 53b of the German Banking Act and PIMCO Europe Ltd Amsterdam Branch is additionally regulated by the AFM in the Netherlands. ENDS For further information: Source Tel: Michael John Lytle M:Communications Tel: Adrian Flook PIMCO MHP Tel: /12 Sally Todd/Lauren Stewart

6 Notes to Editors: PIMCO PIMCO is a global investment management firm that was founded in The firm serves an array of clients and manages retirement and other assets that reach millions of people around the world. Our clients include public and private sector pension and retirement plans, educational, foundations, endowments, philanthropic and healthcare institutions, individual and investment saving accounts, public sector reserve management and other entities in Europe, North and South America, the Middle East and Asia. PIMCO has more than 1,400 employees. In addition to its global headquarters in Newport Beach, California, the firm has offices in Amsterdam, Hong Kong, London, Munich, New York, Singapore, Sydney, Tokyo, Toronto and Zurich. PIMCO established an ETF platform in the United States in June 2009, and to-date has introduced 13 active and passive strategies. PIMCO is ultimately owned by Allianz S.E., a global financial services company. For further information on PIMCO, please visit For further information on PIMCO ETFs in the United States, please visit Source Source is a specialist provider of exchange traded products (ETPs) for European investors. Source s open architecture approach is designed to enhance the performance and trading environment. By creating common standards and enhanced features, Source s products offer investors improved liquidity, reduced counterparty risk and increased transparency. Source believes that the market for ETFs and similar products will continue to expand rapidly, but that improved products and greater liquidity are critical to accelerating growth. By working with its key partners 1, Source has taken steps to maximise the liquidity of its 1 Source s partners include PIMCO, BofA Merrill Lynch, Credit Suisse, Goldman Sachs, J.P. Morgan, Morgan Stanley, Nomura, Nyenburgh, Jane Street, Baader Bank, Banca IMI, BNP, Commerzbank, DekaBank, Exane, Flow Traders, HSBC, IMC, Knight, LaBranche, Newedge, SG Securities and UniCredit.

7 products: allowing multiple brokers to participate on an equal footing; creating a concentration of flows by focusing trading on a single stock exchange, currently Deutsche Börse or the London Stock Exchange; and creating an efficient lending market for its ETFs, thereby enabling investors to take both long and short positions. This is an evolutionary step in the European market as, to date, the lack of an efficient lending market has hampered the growth of trading volumes and has been a major factor in the significant shortfall in liquidity between the US and European ETF markets. These and other initiatives allow Source s unique approach to ETPs to deliver a superior investor experience and rapid growth in assets. Further information about Source is available at