Deutsche Asset Management has launched a GBP-hedged share class of one of its most high profile fixed income exchange traded funds (ETFs), db xtrackers II Barclays Global Aggregate Bond Index UCITS ETF, which provides indirect replication exposure to the investment-grade global bond market…
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Michael Mohr, Deutsche Asset Management’s Head of Exchange Traded Product Development, EMEA
The ETF has over £500 million in assets and is the first of its kind to track the Barclays Global Aggregate Bond index. It launched in March 2014.
“Our ETF tracking the Barclays Global Aggregate Bond Index provides exposure to over 15,000 securities, encapsulating the global investment-grade fixed income market. It has attracted significant investment, and now sterlingdenominated investors have a GBP-hedged share class they can use if they do not wish to have multi-currency exposure,” said Michael Mohr, Deutsche Asset Management’s Head of Exchange Traded Product Development, EMEA.
The Barclays Global Aggregate Bond Index is a flagship measure of global investment grade debt from twenty-four local currency markets, which means sterling-denominated investors in products tracking the index have currency risk as well as bond risk. The new share class hedges the multi-currency risk relative to sterling on a monthly basis. The index tracks the market for government, governmental, supranational, corporate, asset-backed and mortgage-backed securities across the full spectrum of maturities in the BBB to AAA credit rating range, and on a global basis.
The new GBP-hedged share class has been listed on the London Stock Exchange.
Name of ETF: db x-trackers II Barclays Global Aggregate Bond Index UCITS ETF
Share Class: 3D
BBG Code: XBGG LN
Share Class Currency: GBP
Annual All-in Fee: 0.30%
Direct/Indirect replication: Indirect
UCITS compliant: Yes