iShares launches suite of funds

iShares, the world's leading Exchange Traded Fund (ETF) provider, launches four new fixed income ETFs on the London Stock Exchange in response to overwhelming demand from investors for a greater range of exposure to bond markets.

As provider of the largest and most diverse range of fixed income ETFs in Europe, iShares' new products will provide unrivalled access to the investment grade debt universe, as well as tailored exposure to corporate bonds, G7 bonds and to the shortest-dated European government instruments. The new products include:

iShares Barclays Euro Aggregate Bond, which provides exposure to a basket of Euro denominated investment grade bonds, including treasury bonds, securitised bonds and corporate bonds. It is designed to track the Barclays Capital Euro Aggregate bond index.
iShares Barclays Euro Corporate Bond, which provides exposure to a diversified basket of Euro-denominated investment grade corporate bonds. Inclusion in the fund is based on the currency of the issue and not the domicile of the issuer. In line with this, the fund contains Euro-denominated corporate bonds that have been issued from all over the world. It is designed to track the Barclays Capital Euro Corporate bond index.

iShares Barclays Euro Treasury Bond 0-1, which provides exposure to a diversified basket of Euro-denominated government bond with maturities ranging from 0-12 months. This offers diversified exposure to high ratings and short duration bonds. It is designed to track the Barclays Capital Euro Treasury 0-12 months bond index.

iShares Citigroup Global Government Bond, which provides broad international exposure to around 500 government bonds issued by the G7 countries. It is designed to track the Citigroup G7 World Government bond index.

Commenting on the launch of the funds, Alex Claringbull, senior fixed income portfolio manager at iShares, said: "Following the market events of 2008, fixed income has grabbed the attention of investors like never before. At this time of intense interest and strong inflows, iShares is delighted to be able to offer the market an enlarged suite of bond funds, unique in its breadth and depth, which speaks to a range of investors and their needs."

"There are attractive opportunities in the corporate bond market with spreads at record highs relative to government bonds, and we see that investors are looking for low-cost, transparent and efficient ways to take advantage of this. The launch of a new Euro investment grade corporate ETF complements our existing and highly successful Euro corporate ETF (iShares € Corporate Bond). The new fund will aim to track a much more diversified index which we know our clients are very familiar with. Both funds will form part of our commitment to give investors access to a fund of physically held investment grade corporate bonds in the way only iShares can deliver."

"For some investors, risk aversion remains a key driver in their decision making process, and for that reason, we expect the iShares Barclays Euro Treasury Bond 0-1 to be popular. The fund offers exposure to some of the shortest-dated bonds from highly-rated European countries and is the perfect complement to our existing iShares eb.rexx Money Market Fund, which invests in similar maturity fixed rate bonds only issued in Germany."