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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
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
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
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.