Fixed income giant PIMCO has restricted portfolio disclosures on a second active ETF as it takes advantage of last month’s relaxation of reporting rules in Luxembourg.

The PIMCO Covered Bond UCITS will switch from disclosing all its senior corporate bond and loan holdings once a month to revealing “the identity and quantity of its portfolio holdings to the market withing 30 business days after the end of each calendar quarter”.

The PIMCO Advantage Euro Low Duration Corporate Bond UCITS ETF (LDCE) moved from a fully to semi-transparent reporting model in December.

Luxembourg’s regulator last month aligned its rules on semi-transparent ETFs with Ireland which requires full portfolio holdings to be disclosed quarterly with a 30-day delay.

Our view

David Batchelor, senior analyst at QuotedData, said: “The extent to which fund managers will switch to semi-transparent active ETF structures, now that both the Irish and Luxembourgish regulators have approved them, is one of the most interesting current topics in the sector. Although it is early days, thus far there has been limited take-up, so this move by PIMCO is noteworthy. The Covered Bond ETF, at $45m, is not the biggest, but this is the second such switch by PIMCO and we suspect we will see more, not least due to funds with such a structure being common in many of the company’s other markets.”

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