Firm says higher bond yields makes fixed income attractive for the long term
PIMCO Canada has launched the exchanged-traded fund series units of its PIMCO Canadian Core Bond Fund.
The units are trading on the TSX under the ticker CORE with a strategy that seeks total return, consistent with preservation of capital and prudent investment management. The fund invests primarily in a diversified portfolio of Canadian dollar fixed income of varying maturities.
Initially, 50,000 ETF units are available at $20 per unit and the Fund has closed its initial offering of the ETF Series Units. The fund also offers traditional Mutual Fund Series.
The fund has been managed for more than four years by the same portfolio manager team that includes Vinayak Seshasayee, executive vice president and Marc Seidner, managing director and chief investment officer, Non-traditional Strategies.
“Higher interest rates globally have made bonds historically attractive and adding an ETF Series to PIMCO’s Canadian Core Bond Fund gives investors more choice in how they can access PIMCO’s time-tested investment strategy,” said Greg Tsagogeorgas, PIMCO Executive Vice President and Co-Head of PIMCO Canada. “Moreover, PIMCO believes the generational reset to higher bond yields in recent years makes fixed income compelling not just today, but also in the years to come.”
Canadian investors’ appetite for ETF investments continues unabated and they are on track to allocate a record amount of capital to the funds this year, according to Valerie Grimba, director of ETF sales and strategy at RBC Capital Markets.
“July was another strong month for ETF flows; it’s kind of following on a big year for 2024 actually, we’re on pace to hit the highest level of ETF fund flows ever, surpassing 2021’s record,” she recently told BNN Bloomberg.
National Bank of Canada’s Canadian ETF Flows report shows $5.2 billion inflows to funds in July, easing back to levels more in line with April and May following the new all-time record high of $9.7 billion recorded in June.
Read more: Investing in National Bank of Canada Stocks
