Dutch investor demand for exposure to bond markets intensifies ..
· iShares reports 179% increase in fixed income trading volumes
· March second most active month for NYSE Euronext for ETF trades
iShares, the worlds’ leading Exchange Traded Fund (ETF) provider, today lists four new products on the Amsterdam market of NYSE Euronext with fixed income providing a key focus for the firm’s product development. The new products include three fixed income ETFs and one equity ETF covering the Gulf Cooperation Council Middle-East region.
Year-to-date, iShares Europe has seen over €1.5 billion in net assets in fixed income ETFs as investors turn to risk-averse, liquid and transparent asset classes amid continuing uncertain market conditions.
According to research data,* iShares fixed income trading volumes on Euronext Amsterdam were 179% higher on average per month in 2009 than in 2008. The average trading volumes increased from €34.2m to €95.5m in the same period. The percentage of total iShares trading volumes on Euronext Amsterdam represented by fixed income investments was 15.23% on average per month in 2009, a substantial increase from 5.35% on average per month in 2008.
The total number of European fixed income iShares funds available is now 37 – of which 15 are listed on the European markets of NYSE Euronext. iShares’ new fixed income products will provide unrivalled access to the investment grade debt universe as well as tailored exposure to corporate bonds and the shortest-dated European government instruments.
Roel Thijssen, head of iShares Benelux, said, “With transparency and liquidity the watchwords of the day, investor appetite for risk-averse fixed income products in the Netherlands shows no sign of abating.”
He added, “It has historically been difficult to access GCC markets and whilst there are productsoffering exposure to individual countries and to the region as part of broader benchmarks, the iShares MSCI GCC Countries ex-Saudi Arabia fund focuses on the five investible GCC markets within a single fund.”
ETFs are very successful. With these new ETFs, NYSE Euronext now offers a range of 383 ETFs with 431 listings from 15 Issuers. These ETFs cover more than 275 indices including an extended range of assets and strategies. iShares has a total of 89 ETFs listed on NYSE Euronext.
Scott Ebner, Senior Vice President, European Exchange Traded Products NYSE Euronext, said, “These new products are a welcome addition for investors who are increasingly focused on ETFs as they seek innovative solutions to meet their asset allocation needs. That demand is evident in the high monthly ETF transaction levels recorded by NYSE Euronext’s European markets and especially shown by the increasing activity in fixed income ETFs.”
Details of the new products:
· iShares Barclays Euro Aggregate Bond provides exposure to a basket of Euro-denominated investment grade bonds, including treasury bonds, securitised bonds and corporate bonds. It is designed to track the Barclays Capital Euro Aggregate bond index.
· iShares Barclays Euro Corporate Bond, which provides exposure to a diversified basket of Euro-denominated investment grade corporate bonds. Inclusion in the fund is based on the currency of the issue and not the domicile of the issuer. In line with this, the fund contains Euro-denominated corporate bonds that have been issued from all over the world. It is designed to track the Barclays Capital Euro Corporate bond index.
· iShares Barclays Euro Treasury Bond 0-1, which provides exposure to a diversified basket of Euro-denominated government bond with maturities ranging from 0-12 months. This offers diversified exposure to high ratings and short duration bonds. It is designed to track the Barclays Capital Euro Treasury 0-12 months bond index.
· iShares MSCI GCC Countries ex-Saudi Arabia provides exposure to the Gulf Cooperation Council (GCC) region in one fund structure and captures the performance of a range of sectors within the GCC ex-Saudi Arabia markets. Although traditionally the economies have been oil-based, listed companies in the GCC countries reflect the trend to diversify and create new sustainable areas of economic activity. The product captures companies active in the financial, real estate, mobile telecommunications, industrial and materials sectors.
* Bloomberg data 2009
Source: ETFWorld.co.uk – NYSE Euronext
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