iBoxx Limited and iShares plc have announced an agreement to license iBoxx indices as the basis for Exchange Traded Funds (ETFs) to be launched on Deutsche Brse’s XTF-Segment. The new products are scheduled for trading early 2003, subject to regulatory approval. iShares is managed by Barclays Global Investors.
iBoxx indices are based on real-time bond prices contributed continuously throughout the trading day by the consortium of investment banks. David Mark, iBoxx CEO, commented: “iBoxx is setting new standards for fixed income indices. Our concept of multi-contributor pricing, rules-based methodology, third-party quality control and easy access meets the market’s needs and makes iBoxx indices ideal for a new generation of investment and hedging products”.
Commenting on the planned launch of the European fixed income ETFs, John Demaine, Director of iShares plc said, “The iBoxx ETFs will offer institutional and retail investors a liquid, transparent and flexible investment tool, allowing them to diversify their portfolio through the purchase of a single security. They will also be one of the cheapest ways to invest in bond indices in Europe”. iShares is the leading brand of ETFs, managed by Barclays Global Investors (BGI). The complete range of BGI/iShares comprises over 100 ETFs worldwide with Assets under Management of 26 billion.
iBoxx is a joint venture between ABN AMRO, Barclays Capital, BNP Paribas, Deutsche Bank, Dresdner Kleinwort Wasserstein, Morgan Stanley, UBS Warburg and Deutsche Brse.