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Clearstream opens ETF direct access
13 January 2014
Enables investors to buy and sell shares in Pimco ETF, similar to mutual funds
Clearstream has enabled investors to have direct access to an actively-managed exchange traded fund (ETF) through fund processing platform Vestima.
This enables investors to buy and sell shares in the active Pimco Covered Bond Source UCITS ETF in the same way as mutual funds.
Clearstream said this is a step towards its plans to make ETF issuance and processing more efficient.
“ETFs are generally recognised as a highly attractive instrument for both retail and institutional investors. The availability on Vestima extends access to this ETF to a larger and new group of investors. Vestima reduces the execution complexities for those investors who utilize both ETFs and mutual funds in their investment portfolios,” said Howard Chan, Vice President and Product Manager for Pimco’s ETF products in Emea.
Philippe Seyll, member of the executive board of Clearstream and head of investment funds services, said: “Our objective is to provide investors with a standardised process for all their fund transactions – from mutual funds to ETFs and hedge funds – by using the same platform.”
Clearstream said it is working with other ETF promoters to enable investors direct access to a broader range of ETFs. The firm recently teamed up with Capita Asset Services in order to improve ETF issuance on the German market.
Euroclear is also working on improving the process following the launch of its FundSettle service last year which allows investors to buy and sell shares in ETFs in the same way as their mutual fund investments.