Deutsche Bank has launched a new emerging markets bond index, the Emerging Markets Liquid Eurobond Euro Index (EMLE Euro Index).
Deutsche say that EMLE is the first index to track emerging markets from a European investor perspective, with a reduced focus on Latin America. The new index will offer a total of 21 bonds, with currency hedged returns. The target maturity is set for 9 years. The average credit rating is just under Ba2/BB, with the minimum rating at B-/B3 and the maximum A-/A3.
The bank also said that the index will have offer investors a comparable level of sophistication and comfort as benchmark equity indices, thanks to methodology that it claims extends beyond simple market capitalisation.
Additionally, Deutsche claims that the low historic correlation to equities and government bonds makes EMLE a good diversification instrument.
By Geoffrey Ho
The Pension Protection Fund (PPF) has published contingency planning guidance for trustees to help them manage risk.
The trustees of the Autoenrolment.co.uk and Moore Stephens master trusts have been fined for "deficient" chair's statements after failed court action against The Pensions Regulator (TPR).
Henry Tapper shares his thoughts on how IGCs could provide value for money statements that people wanted to read