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An ETF issuer has listed a fixed income ETF

6UK

iShares expanded its fixed income range with the launch of the iShares Barclays Capital Emerging Market Local Govt Bond fund, listing on the London Stock Exchange….


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      Many emerging market governments issue debt in two forms, US dollar denominations and local currency denominations, which have different yield and risk profiles. The new iShares fund offers
      access to the fixed-rate debt of emerging market governments which is denominated in their local
      currencies. The fund invests in physical bonds and provides investors with diversified exposure to
      a sector which can be difficult and costly to capture directly.
      The iShares Barclays Capital Emerging Market Local Govt Bond fund extends iShares’ European fixed income range  to  43 funds with a total of USD 30 billion  in  assets under management. It specifically complements the iShares JPMorgan $ Emerging Market Bond fund, offering investors greater choice in the way they invest in fixed income and in emerging market sovereign debt in particular.
      Axel Lomholt, head of product development for iShares EMEA said:
      “We have seen  sustained  demand from investors for  an effective way to  access local currency emerging market bonds. Two reasons for this demand are the high yield of these bonds and the currency potential. Over the past two years, many of the emerging market currencies appreciated
      versus hard currencies like the US-Dollar, Euro or  Sterling. Local currency bonds can be an effective way for investors to benefit from this appreciation.
      “The iShares Barclays Capital Emerging Market Local Govt Bond  fund  meets this  demand by
      providing investors with liquid and diversified exposure to the debt of eight emerging nations in a

      single trade. As with all iShares funds, there is also full and daily transparency into the underlying
      bonds.

      Source: ETFWorld – iShares

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