EUROPE - Barclays Global Investors has issued several European fixed income exchange traded funds on the iBoxx indices as part of its iShares range.
The first ETF will be listed on the Deutsche Börse and the London Stock Exchange in early 2003.
The iBoxx ETFs are designed to offer both institutional and retail investors a liquid, transparent and flexible investment tool, allowing them to diversify their portfolio through the purchase of a single security which tracks the index.
BGI claims it is one the cheapest ways to invest in bond indices in Europe.
Commenting on the launch of the ETFs, John Demaine, director of iShares, said: “This is a revolution for the European bond market.
“The iBoxx ETFs combine all the benefits of an ETF with benchmarks that represent a new market standard for fixed income investors. iBoxx is the premier provider of bond indices in Europe and its indices are a significant improvement over proprietary indices that are priced by only one broker.”
The iBoxx indices is a joint venture between ABN AMRO, Barclays Capital, BNP Paribas, Deutsche Bank, Dresdner Kleinwort Wasserstein, Morgan Stanley, UBS Warburg and Deutsche Börse. It uses a transparent, rules-based methodology with third-party quality control to ensure a focus on the most liquid bond issues.
BGI launched a range of four fixed income iShares for US investors last July, which netted inflows of E3.5bn in the first three weeks.
The complete iShares range now comprises over 100 ETFs worldwide with asset under management of E26bn.
*Nextra listed its first ETF on MSCI Euro on the Borsa Italiana this week.
The launch puts Europe ahead of the US with 118 ETFs compared to 113 in the States, according to Morgan Stanley.
Earlier this month, BGI delisted three US listed ETFs the Dow Jones US Chemicals ticker IYD, DJ US Internet ticker IYV and the S&P TSE 60 ticker IKC.
This week's top stories include ITS' management buyout from Mercer, and The Pensions Regulator launching a probe into single-employer defined contribution schemes' default funds.
People retiring in the UK will on average outlive their pension savings by 10 years, according to research by the World Economic Forum (WEF).
Steps to improve auto-enrolment are uncontroversial and obvious, but the government is dawdling on introducing the necessary changes, argues Jack Jones.
Professional trustees will be expected to apply for accreditation as part of a framework intended to be launched on 1 July by the Professional Trustee Standards Working Group (PTSWG).