Invesco introduces GBP-hedged share class for PIMCO short maturity ‘MINT’ ETF

Oct 14th, 2019 | By | Category: Fixed Income

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Invesco has launched a currency-hedged share class for the PIMCO US Dollar Short Maturity Source UCITS ETF on London Stock Exchange.

Invesco launches GBP-hedging for PIMCO short maturity ‘MINT’ ETF

The ETF aims to preserve capital and provide the potential for superior income and total returns compared to traditional money market funds.

The new share class trades under the ticker MIST LN and hedges exposure between the US dollar and the share’s trading currency, pound sterling.

Hedging is conducted by entering into one-month currency forwards, rolled monthly.

The fund was one of the first actively managed ETFs to be listed in Europe and offers investors access to PIMCO’s global cash management expertise.

It has grown to over $3.7 billion in assets under management. A US-listed version of the fund houses over $13.0bn.

The ETF aims to preserve capital and provide the potential for superior income and total returns compared to traditional money market funds. It does this by investing in baskets of US dollar-denominated short-term investment-grade debt securities.

The fund’s manager looks to take advantage of opportunities in the market by actively managing exposure to duration and credit. Its current yield is 2.8%.

The ETF currently has an effective duration of 0.20 years but the fund’s managers are permitted to stretch this out to up to one year. In terms of credit exposure, the average rating within the fund is A+.

The currency-hedged share class comes with an expense ratio of 0.40% which is slightly higher than the 0.35% charged on the fund’s non-hedged share classes.

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