Invesco PIMCO Short-Term High Yield Corporate Bond Index Source UCITS ETF EUR Hedged Income

Issuer: PIMCO

Asset Class: Fixed Income

TER: 60bps

Trading Currency: EUR

Pays Income: False

Listing Date: 18 Oct 2013

Ticker: STHE

ISIN: IE00BF8HV600

This actively managed fund aims to provide investors with a high level of income, complemented by a secondary goal of capital appreciation. It achieves this by investing in a diversified portfolio primarily composed of U.S. dollar-denominated high-yield corporate bonds. By employing an active strategy, the fund managers leverage deep credit research and macroeconomic analysis to identify securities they believe offer attractive yields and total return potential. The active approach allows for flexibility in navigating changing market conditions, with the portfolio managers making dynamic adjustments to credit exposure and duration based on their forward-looking views, distinguishing it from passive, index-tracking strategies.

The core of the strategy involves a meticulous bottom-up security selection process, focusing on issuers with sound fundamentals that may be undervalued by the broader market. The managers assess various factors, including an issuer's credit quality, industry trends, and the specific terms of the bond, to construct a portfolio aimed at maximizing risk-adjusted returns. This fund is designed for investors seeking to enhance the yield of their fixed-income allocation and who have a higher tolerance for credit risk compared to investment-grade debt. This specific share class also incorporates a currency hedge, which is intended to reduce the impact of exchange rate fluctuations between the U.S. dollar and the euro for investors. It can serve as a strategic component for those looking to gain exposure to the U.S. high-yield market through a professionally managed vehicle.