iShares € Corporate Bond surpass €2 billion milestone

iShares, the world's leading Exchange Traded Fund (ETF) provider, has announced that the iShares € Corporate Bond fund has surpassed €2 billion in assets under management, as the push by investors into fixed income continues apace.

The iShares € Corporate Bond fund is a fixed income fund that provides broad exposure to Euro denominated investment grade corporate bonds in one share. The fund aims to track the Markit iBoxx Euro Liquid Corporates index which has exposure to a broad array of industries and a market capitalisation of over €77bn.

The fund is the sixth iShares product to have gathered over €2 billion in assets - the largest amount of funds of any European provider.

Commenting, Alex Claringbull, Senior Portfolio Manager, iShares said: "Given the economic backdrop and the increase in corporate bond yields relative to government bond yields, investors are increasingly looking with interest at this market segment. The iShares € Corporate Bond fund is an excellent way to gain exposure in a simple and transparent way.

"Over the last three months we have noticed a significant uptake of interest in fixed income iShares from our clients, with investment grade corporates and inflation-linked bonds being the main areas of interest.

"As an asset class, fixed income will remain a strong focus for iShares in 2009. We currently have 59 fixed income funds on offer globally - one of the most diverse product sets in the market - and we expect to add to this range in the near future as demand for the asset class and diversification opportunities continues to grow."

In early 2008, iShares predicted assets in fixed income ETFs would grow by over 200 per cent to surpass $200 billion by 2011.