The fund, which has £190m under management, joins its dollar-denominated counterpart on the exchange, and enables investors to access the high yield market via an ETF structure.
The fund was launched in March 2012 and aims to replicated the BofA Merrill Lynch 0-5 year US High Yield Constrained Index. It will invest in a basket of securities similar to the constituents of the index.
It has an estimated effective yield of 5.65%, with an effective duration of 2.01 years compared to broad high yield indicies which yield 5.87% with a duration of 4.17 years.
The short-term nature of the fund counters duration risk by reducing exposure to treasury yields, but maintains high yield to maturity of 6.8% per annum.
Howard Chan, EMEA ETF portfolio specialist at Pimco, said: “We expect the addition of a GBP trading line for the ETF to further broaden the range of UK investors who can benefit from this blend of high yield corporate bond exposure with reduced duration.“
