why invest in this fund
A high quality asset offering yield pick-up over government bonds
Covered Bonds are the most senior bonds of an issuer (bank or mortgage institution). The asset class offers both safe haven characteristics and a yield pick up over government bonds. Covered bonds are supported by dual recourse to both the issuing institution and a cover pool of highly quality assets.
Fund Specific Risks
Other financial institutions provide services such as safekeeping of assets or as a counterparty to financial contracts such as derivatives. The fund is exposed to the risk of bankruptcy, or other type of default of transaction counterparties.
Credit and Default Risk
A decline in the financial health of an issuer of a fixed income security can lead to an inability or unwillingness to repay a loan or meet a contractual obligation. This could cause the value of its bonds to fall or become worthless. Funds with high exposures to non-investment grade securities have a higher exposure to this risk.
Derivatives and Counterparty Risk
The use of certain derivatives could result in the fund having a greater or more volatile exposure to the underlying assets and an increased exposure to counterparty risk. This may expose the fund to larger gains or losses associated with market movements or in relation to a trade counterparty being unable to meet its obligations.
Fixed Income Risk
There is a risk that the institution which issued the securities will fail, which would result in a loss of income to the fund. Fixed income values are likely to fall if interest rates rise.
Risk of Using Derivatives
In order to reach its investment objective, the fund may use swaps, including futures and forwards. Such derivatives may result in gains or losses that are greater than the original amount invested.
Interest Rate Risk
Changes in interest rates will usually result in the values of bond and other debt instruments moving in the opposite direction (e.g. a rise in interest rates likely leads to fall in bond prices).
Mortgage Related and Other Asset Backed Securities Risks
Mortgage or asset backed securities are subject to similar risks as other fixed income securities, and may also be subject to prepayment risk and higher levels of credit and liquidity risk.
The PIMCO Covered Bond UCITS ETF aims to generate income while preserving and growing capital. The ETF will invest primarily in an actively managed diversified portfolio of covered bonds.
Price - Past performance does not predict future returns
Bloomberg Euro Aggregate Covered 3% Cap Index
The Bloomberg Euro Aggregate Covered 3% Cap Index (the "Index") tracks the performance of euro-denominated covered bonds. Inclusion is based on the currency denomination of the issue and not the domicile of the issuer. Qualifying securities must have an investment grade rating (based on an average of Moody's, S&P and Fitch), at least one year remaining term to final maturity, a fixed coupon schedule and a minimum amount outstanding of EUR 300 million. Index constituents are capitalization-weighted, based on their current amount outstanding, provided the total allocation to an individual issuer does not exceed 3%. It is not possible to invest directly in an unmanaged index
|Data point name||Data point value|
The fund is considered to be actively managed in reference to the Index by virtue of the fact that the Bloomberg Barclays Euro Aggregate Covered 3% Cap Index (the "Index") is used for duration measurement and for performance comparison purposes. Certain of the fund’s securities may be components of and may have similar weightings to the Index. However, the Index is not used to define the portfolio composition of the fund or as a performance target and the fund may be wholly invested in securities which are not constituents of the Index. The fund is actively managed in reference to the above Benchmark as further outlined in the prospectus and key investor information document.
|Data point name||Data point value|
|Benchmark BBG Ticker||BEA3TREU|
|Number of Holdings||80|
|Launch Date||17 December 2013|
|UK Reporting Status||Yes|
|Registered for Distribution in||Belgium, Denmark, Finland, France, Germany, Italy, Luxembourg, Netherlands, Norway, Spain, Sweden, United Kingdom|
|Exchanges||Deutsche Börse Xetra|
|Financial Year End||31 March|
|Equity Ratio (Tax Information for German Investors)||0.00|
|Use of Income||Distributed|
Key Service Providers
|Issuer||PIMCO ETFs plc|
|Manager||PIMCO Europe Ltd|
|Fund Administrator||State Street Fund Services (Ireland) Limited|
|Depository||State Street Custodial Services (Ireland) Limited|
|Authorized Participants||Bluefin Europe LLP, Citigroup Global Market Limited, Credit Suisse Securities (Europe) Limited, DRW Europe B.V., Flow Traders B.V., Goldenberg Hehmeyer LLP, Goldman Sachs International, JP Morgan Securities Ltd., Jane Street Financial Limited, Morgan Stanley and Co. International plc, Nomura International plc, Old Mission Europe LLP, Unicredit Bank AG, Virtu Financial Ireland Limited|
Top Ten Exposure
|IRS EUR 3.00000 09/20/23-5Y LCH||3.00||15.31|
|IRS EUR 3.00000 09/20/23-10Y LCH||3.00||14.63|
|LIBERBANK SA COVERED SEC||0.25||4.45|
|BANCA MONTE DEI PASCHI S SEC||0.88||4.44|
|CEDULAS TDA 6 COVERED||3.88||4.44|
|AYT CEDULAS CAJAS X||3.75||4.43|
|SUMITOMO MITSUI BANKING COVERED SEC||0.41||4.26|
|SUMITOMO MITSUI TR BK LT SEC||0.01||4.23|
|CREDIT SUISSE SCHWEIZ AG COV SEC||3.39||3.89|
|REALKREDIT DANMARK SEC IO10||4.00||3.86|
Current holdings are subject to risk. Holdings are subject to change at any time.
Indicative Net Asset Value (iNAV) is a measure of the net asset value intraday, and is reported every 15 seconds during trading hours. PIMCO has partnered with external vendor Intercontinental Exchange Ltd. (ICE) to calculate iNAV for the European ETF Fund Ranges. ICE calculates iNAV using the mid prices of the respective ETF basket of securities to derive the market value and divides the total market value by creation unit size. The iNAV is calculated daily.
Fees & Expenses
Because the fund is an ETF, investors will typically only be able to buy or sell shares in the secondary market, on exchange. Authorized Participants who help in the creation or redemption of shares in the primary market, may face “create” or “redeem” fees (aka “entry” or “exit” fees) on the cash portion of the transaction (up to a maximum of 3.00%). These create and redeem fees are not applicable to secondary market investors. However, secondary market investors may incur brokerage and/or transaction fees in connection with their dealings. Secondary market investors may also bear the costs of bid-ask spreads; meaning the difference between the prices at which shares can be bought and sold.
Yields & Distributions
|Distribution Date||Dist. NAV (€)||Dividend Income (€)||Dist. Total (€)|
Price & PerformancePast performance does not predict future returns
|May`14 - May`15||May`15 - May`16||May`16 - May`17||May`17 - May`18||May`18 - May`19||May`19 - May`20||May`20 - May`21||May`21 - May`22||May`22 - May`23|
|Covered Bond UCITS ETF||6.52||0.04||1.60||1.42||2.27||1.78||1.03||-7.61||-4.81|
|Bloomberg Euro Aggregate Covered 3% Cap Index||4.66||1.84||0.32||0.28||2.62||1.13||-0.09||-7.90||-4.77|
|Performance - Fund vs Index||1.86||-1.80||1.28||1.14||-0.35||0.65||1.12||0.29||-0.04|
Past performance is not a guarantee or a reliable indicator of future returns. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. Performance data current to the most recent month-end is available by calling +44 203 3640 1552.
Growth of $10,000 is calculated at NAV and assumes that all dividend and capital gain distributions were reinvested. It does not take into account sales charges or the effect of taxes. Results are not indicative of future performance.
|category / asset class||FUND||Fund ratio||Bloomberg Euro Aggregate Covered 3% Cap Index||Index ratio|
|Invest. Grade Credit||89.32||100.00|
|High Yield Credit||0.00||0.00|
|Net Other Short Duration Instruments||14.70||0.00|
|Sector||Fund||Fund ratio||Bloomberg Euro Aggregate Covered 3% Cap Index||Index ratio|
|Invest. Grade Credit||105.73||100.00|
|High Yield Credit||0.00||0.00|
|Net Other Short Duration Instruments||0.00||0.00|
|Years||% of Fund||% of Bloomberg Euro Aggregate Covered 3% Cap Index|
|Effective Maturity (yrs)||6.46||-|
|Quality||MV (%)||Fund percent|
interest rate exposures
|Bull Market Duration||3.99||-|
|Bear Market Duration||4.16||-|
|Total Curve Duration||-||N/A|
|Mortgage Spread Duration||0.00||-|
|Corporate Spread Duration||0.00||-|
|Emerging Markets Spread Duration||0.18||-|
** Other net assets (liabilities) includes, but is not limited to, unsettled activity from shareholder and portfolio security trades, and accrued interest and expenses.
NR references securities that do not have a formal or explicit rating from the various rating agencies. Non-rated securities could include cash equivalents and repurchase agreements, government guaranteed mortgage securities, as well as other types of credit that do not have a formal rating.
Your capital is at risk. You may not get back the amount you invested. Past performance is not a guarantee or reliable indicator of future returns and no guarantee is being made that similar returns will be achieved in the future.
The information on this Website is not intended as investment advice or as a recommendation to invest in any particular asset class, security or strategy. The information provided is for illustrative purposes only, and it should not be relied upon as investment advice or as a recommendation to buy or sell securities. Investors should seek independent professional advice prior to investing. Any investment in an ETF should be made on the basis of the relevant Prospectus and Key Investor Information Documents, including consideration of the investment objective, risks, charges and expenses.
A Prospectus is available for PIMCO ETFs plc (the Company) and Key Investor Information Documents (PRIIPs KID) are available for each share class of each the sub-funds of the Company.
The Company’s Prospectus can be obtained from Fund Info and is available in English, French and German.
The PRIIPs KID can be obtained from Fund Info and are available in one of the official languages of each of the EU Member States into which each sub-fund has been notified for marketing under the Directive 2009/65/EC (the UCITS Directive).
In addition, a summary of investor rights is available from here. The summary is available in English.
The sub-funds of the Company are currently notified for marketing into a number of EU Member States under the UCITS Directive. [PIMCO Global Advisors (Ireland) Limited] can terminate such notifications for any share class and/or sub-fund of the Company at any time using the process contained in Article 93a of the UCITS Directive.
Further information on the ETFs, their Prospectus, Key Investor Information Documents and Supplements are available at Fund Info or from your financial adviser or broker. For actively managed ETFs, further information on the use of benchmarks or indices is set out in the Prospectus and relevant Supplement.
The distribution and the offering of ETFs in certain jurisdictions may be restricted by law. The information on this website does not constitute an offer or solicitation by anyone in any jurisdiction in which such an offer is not authorised or to any person to whom it is unlawful to make such an offer or solicitation. The information on this website is not for distribution to, or for the attention of, US or Canadian persons.
UCITS ETF’s units / shares purchased on the secondary market cannot usually be sold directly back to UCITS ETF. Investors must buy and sell units / shares on a secondary market with the assistance of an intermediary (e.g. a stockbroker) and may incur fees for doing so. In addition, investors may pay more than the current net asset value when buying units / shares and may receive less than the current net asset value when selling them.
The information provided on this website does not constitute an offer of the sub-funds of PIMCO ETFs plc in Switzerland pursuant to the Swiss Financial Services Act ("FinSA") and its implementing ordinance ("FinSO"), but the information on this website may be construed as an advertisement for the sub-funds of PIMCO ETFs plc pursuant to the FinSA and the FinSO. The representative and paying agent for the sub-funds of PIMCO ETFs plc in Switzerland is BNP Paribas, Paris, Zurich Branch, Selnaustrasse 16, 8002 Zurich, Switzerland. The prospectus, articles of incorporation, Key Investor Information Documents and annual and semi-annual reports of PIMCO ETFs plc may be obtained free of charge from the representative in Switzerland. PIMCO ETFs plc is a collective investment scheme domiciled in Ireland.
French language copies of the Sub-Fund's Prospectus, Key Investor Information Documents, articles of incorporation, latest annual and semi-annual Report & Accounts may be obtained from Fund Info
The information contained on this Website referred to the UCITS ETF Fund (the Sub-fund) of PIMCO Europe Ltd, a collective investment scheme duly registered with the Spanish Securities Market Commission (CNMV) under number 1360 (www.cnmv.es), where it may be consulted the updated list of the authorised distributors of the Company in Spain (the Spanish Distributors). The Spanish Distributors must provide to each investor, prior to subscribing the shares of the Sub-fund, a copy translated into Spanish of the simplified prospectus or PRIIPs KID, when implemented, and the latest published economic report prior to subscribing shares. In addition, a copy of the report on the planned types of marketing in Spain must be provided using the form published on the CNMV website. The prospectus and the PRIIPs KID (if applicable) and other legally required documents relating to the fund are available through the Spanish Distributors, in hard copy or by electronic means, and also available upon request by dialling +44 20 3640 1558, writing to firstname.lastname@example.org or consulting Fund Info where you may also obtain updated information on the net asset value of the relevant shares.
Unless referenced in the prospectus and relevant key investor information document, a benchmark or index in this material is not used in the active management of the Fund, in particular for performance comparison purposes.
Where referenced in the prospectus and relevant key investor information document a benchmark may be used as part of the active management of the Fund including, but not limited to, for duration measurement, as a benchmark which the Fund seeks to outperform, performance comparison purposes and/or relative VaR measurement. Any reference to an index or benchmark in this material, and which is not referenced in the prospectus and relevant key investor information document, is purely for illustrative or informational purposes (such as to provide general financial information or market context) and is not for performance comparison purposes. Please contact your PIMCO representative for further details.
As outlined under “Benchmark”, where referenced in the prospectus and relevant key investor information document, a benchmark may be used as part of the active management of the Fund. In such instances, certain of the Fund’s securities may be components of and may have similar weightings to the benchmark and the Fund may from time to time show a high degree of correlation with the performance of any such benchmark. However the benchmark is not used to define the portfolio composition of the Fund and the Fund may be wholly invested in securities which are not constituents of the benchmark.
Investors should note that a Fund may from time to time show a high degree of correlation with the performance of one or more financial indices not referenced in the prospectus and relevant key investor information document. Such correlation may be coincidental or may arise because any such financial index may be representative of the asset class, market sector or geographic location in which the Fund is invested or uses a similar investment methodology to that used in managing the Fund.
PIMCO Europe Ltd (Company No. 2604517, 11 Baker Street, London W1U 3AH, United Kingdom) is authorised and regulated by the Financial Conduct Authority (FCA) (12 Endeavour Square, London E20 1JN) in the UK. The services provided by PIMCO Europe Ltd are not available to retail investors, who should not rely on this communication but contact their financial adviser. PIMCO Europe GmbH (Company No. 192083, Seidlstr. 24-24a, 80335 Munich, Germany), PIMCO Europe GmbH Italian Branch (Company No. 10005170963, Corso Vittorio Emanuele II, 37/Piano 5, 20122 Milano, Italy), PIMCO Europe GmbH Irish Branch (Company No. 909462, 57B Harcourt Street Dublin D02 F721, Ireland), PIMCO Europe GmbH UK Branch (Company No. 2604517, 11 Baker Street, London W1U 3AH, UK), PIMCO Europe GmbH Spanish Branch (N.I.F. W2765338E, Paseo de la Castellana 43, Oficina 05-111, 28046 Madrid, Spain) and PIMCO Europe GmbH French Branch (Company No. 918745621 R.C.S. Paris, 50–52 Boulevard Haussmann, 75009 Paris, France) are authorised and regulated by the German Federal Financial Supervisory Authority (BaFin) (Marie- Curie-Str. 24-28, 60439 Frankfurt am Main) in Germany in accordance with Section 15 of the German Securities Institutions Act (WpIG). The Italian Branch, Irish Branch, UK Branch, Spanish Branch and French Branch are additionally supervised by: (1) Italian Branch: the Commissione Nazionale per le Società e la Borsa (CONSOB) (Giovanni Battista Martini, 3 - 00198 Rome) in accordance with Article 27 of the Italian Consolidated Financial Act; (2) Irish Branch: the Central Bank of Ireland (New Wapping Street, North Wall Quay, Dublin 1 D01 F7X3) in accordance with Regulation 43 of the European Union (Markets in Financial Instruments) Regulations 2017, as amended; (3) UK Branch: the Financial Conduct Authority (FCA) (12 Endeavour Square, London E20 1JN); (4) Spanish Branch: the Comisión Nacional del Mercado de Valores (CNMV) (Edison, 4, 28006 Madrid) in accordance with obligations stipulated in articles 168 and 203 to 224, as well as obligations contained in Tile V, Section I of the Law on the Securities Market (LSM) and in articles 111, 114 and 117 of Royal Decree 217/2008, respectively and (5) French Branch: ACPR/Banque de France (4 Place de Budapest, CS 92459, 75436 Paris Cedex 09) in accordance with Art. 35 of Directive 2014/65/EU on markets in financial instruments and under the surveillance of ACPR and AMF. The services provided by PIMCO Europe GmbH are available only to professional clients as defined in Section 67 para. 2 German Securities Trading Act (WpHG). They are not available to individual investors, who should not rely on this communication. PIMCO (Schweiz) GmbH (registered in Switzerland, Company No. CH-020.4.038.582-2, Brandschenkestrasse 41 Zurich 8002, Switzerland). The services provided by PIMCO (Schweiz) GmbH are not available to retail investors, who should not rely on this communication but contact their financial adviser.. © 2023, PIMCO.