FinEx ETF Ltd., part of FinEx Group, the international investment management company and a leading provider of ETFs to the Russian market, announces the launch …..
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today of a US dollar (FXRU) share class in its FinEx Tradable Russian Corporate Bonds UCITS ETF.
A hedged Ruble share class in the ETF was launched in April 2013, when it was the first ETF to be cross listed in Russia.
The ETF tracks the performance of the Barclays EM Tradable Russian Corporate Bond (EMRUS) Index, which was the first international benchmark covering the Russian corporate Eurobond market. It focuses on shorter maturity liquid Eurobonds issued by Russian non-sovereign issuers.
After a portfolio rebalancing on November 20, the index currently includes 28 securities of 18 leading Russian companies with durations ranging from 18 months to five years.
Total assets of the ETF stand at about $12.4mln. Accumulated coupon interest will be reinvested by the ETF and then paid to the shareholders in the form of dividends twice a year.
Evgeny Kovalishin, President and CEO at FinEx Plus, said: “This is the first ETF on the Moscow Exchange to offer shares in both Ruble-hedged and US Dollar classes. This ETF gives investors a unique opportunity to invest at a low threshold in first-tier Russian corporate Eurobonds, securing income in either Dollars or Rubles.”
The FinEx Tradable Russian Corporate Bonds UCITS ETF (USD share class) was initially listed on the Irish Stock Exchange and then on the London Stock Exchange. On November 27, the ETF was admitted to trading on the Moscow Exchange and thus offered to the general public. Fund shares are included on Quotation List A1.
The FinEx Tradable Russian Corporate Bonds UCITS ETF
The FinEx Tradable Russian Corporate Bonds UCITS ETF tracks the Barclays EM Tradable Russian Corporate Bond (EMRUS) Index, which tracks the performance of a basket of shorter maturity liquid Eurobonds from Russian non-sovereign issuers. The Index is denominated in US dollars. As such, the Ruble-denominated share class launched on the Moscow Exchange is hedged against the dollar. The Index was launched in December 2012.
Securities issued by domestic Russian quasi-sovereign and corporates are eligible for the Index, with a maximum of three bonds per issuer. Issuer caps and floors are applied to enhance diversification.
The ETF has been listed on the Irish Stock Exchange and the USD share class is cross-listed on the London Stock Exchange.
Product | Ticker on Moscow Exchange | Bloomberg Ticker | Base currency | Trading currency | Total Expense Ratio |
FinEx Tradable Russian Corporate Bonds UCITS ETF | FXRU | FXRU RM | USD | RUB | 0.50% |
Source: ETFWorld.co.uk
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