iShares Australia is developing three new exchange traded funds (ETF) focused on global fixed income with plans to launch by the end of the year, according to Jon Howie, head of iShares Australia.
“Already Australian investors can create reasonably diverse portfolios with ETFs but there is a glaring hole when it comes to global fixed income – which is a key component of a truly diversified portfolio,” Mr Howie says.
“Global fixed income provides exposure to many different regions, sectors, credit profiles and maturities bringing important diversifying qualities to an Australian portfolio.”
The three new ETFs will provide investors with access to a diverse range of global fixed income options, ranging from investment grade corporate fixed rate bonds, high yield corporate bonds and emerging market bonds. They will all be hedged to Australian dollars (AUD).
The iShares Global Corporate Bond ETF aims to provide investors with the performance of the index (before fees and expenses) composed of investment grade corporate fixed rate bonds issued by corporations in emerging and developed markets worldwide. It will be benchmarked against the Barclays Global Aggregate Corporate Index (AUD hedged).
The iShares Global High Yield Bond ETF aims to provide investors with the performance of an index (before fees and expenses) composed of liquid, global developed, high yield corporate bonds. It will be benchmarked against the Markit iBoxx Global Developed Markets Liquid High Yield Capped Index (AUD Hedged).
The iShares J.P. Morgan US Dollar Emerging Markets Bond ETF aims to provide investors with the performance of an index (before fees and expenses) composed of U.S. dollar denominated, emerging market bonds. It will be benchmarked against the JP Morgan EMBI Global Core Index (AUD Hedged).
“While pockets of fixed income appear expensive, there is still value in global credit, high yield and emerging markets,” Mr Howie says.
“We are always looking for ways to help our clients build better portfolios. Launching global fixed income ETFs was a logical next step given iShares extensive experience, credibility and scale across global fixed income markets.
“By listing these three global fixed income ETFs, investors will be able to construct diversified portfolios and access different credit profiles to match their portfolio requirements.”
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iShares is a global leader in exchange-traded funds (ETFs), with more than a decade of expertise and commitment to individual and institutional investors of all sizes. With over 700 funds globally across multiple asset classes and strategies and more than $1 trillion in assets under management as of September 30, 2015, iShares helps clients around the world build the core of their portfolios, meet specific investment goals and implement market views. iShares funds are powered by the expert portfolio and risk management of BlackRock, trusted to manage more money than any other investment firm.
 Based on $4.506 trillion in AUM as of 9/30/15.
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