Barclays Capital, the investment banking division of Barclays PLC, launches the Barclays Capital CAD INSPIRE Index. The index allows Canadian investors access to liquid inflation markets in a manner designed to mimic Canadian inflation.
This is the second index to be launched in the INSPIRE Index family; the AUD INSPIRE Index was launched in February.
The CAD INSPIRE Index is designed to provide synthetic inflation protection for institutional investors in Canada using an optimized weighted combination of liquid swap indices from the US, UK and Euro area. Weights are recalibrated on a monthly basis and the optimization model is designed with cost efficiency considerations in mind.
The CAD INSPIRE Index is available in 5-, 10- and 20-year maturities — with alternative tenors tailored upon request — and returns are expressed in local currency. This product is not available to individual investors.
“The INSPIRE Index family adds to Barclays Capital’s already broad range of index products spanning beta, enhanced beta and alpha strategies,” says Jose Mazoy, Index Products, Barclays Capital. “We plan to expand the INSPIRE Index family to provide access to inflation exposure engineered to replicate the inflation of other target countries.”
“Barclays Capital is pleased to offer an innovative solution for clients to tackle the challenge faced by investors who want to create economically efficient portfolios and hedge against inflationary risk in Canada, in a flexible and cost effective manner,” says Ralph Segreti, managing director and product manager of Inflation-Linked and Fixed Income Index Derivatives, Barclays Capital.
L.D.