PIMCO and Source launch sterling-hedged version of $1.2bn high yield ETF

To be listed on London Stock Exchange

PIMCO has partnered with ETF-provider Source to launch a sterling-hedged version of its $1.2bn high yield corporate bond ETF.

The PIMCO Short-Term High Yield Corporate Bond Index Source UCITS ETF aim to generate a comparable yield to the broad US high yield index. The new share class aims to remove the US dollar currency exposure and will distribute income to investors on a monthly basis. James Polisson, chief marketing officer of Source, said: "This new share class responds to investor demand we have seen on two fronts. "First, it meets the needs of those investors in the UK interested in investing in the underlying US high-yield bond market, but who prefer to not have any currency exposure outside of st...