iShares, the exchange-traded fund arm of Barclays Global Investors and Europe’s largest provider of ETFs, has announced that the iShares JPMorgan $ Emerging Market Bond Fund has raised mor
iShares, the exchange-traded fund arm of Barclays Global Investors and Europe’s largest provider of ETFs, has announced that the iShares JPMorgan $ Emerging Market Bond Fund has raised more than USD200m in assets since its launch in February, reflecting continued demand from investors for emerging market exposure.
In addition, iShares says, the increasing global demand for commodities is helping to make countries rich in natural resources attractive to bond investors. Russia, Brazil and Mexico are among the emerging market countries targeted by the fund, the first of its kind in Europe, which invests in US dollar-denominated sovereign and quasi-sovereign bonds.
‘The strong demand for the fund, one of our most successful fixed-income product launches to date, shows that investor demand for emerging market fixed income is currently very strong,’ says iShares senior fixed-income portfolio manager Alex Claringbull.
‘The fund enables investors to take advantage of attractive yields and improving credit quality in emerging markets, as well as its strong risk-adjusted returns in comparison to developed market bonds, in a transparent, highly liquid, and cost-effective way.
‘Overall, we expect to see assets in fixed-income ETFs to grow by more than 200 per cent over the next three years. The success of the JPMorgan $ Emerging Market Bond Fund is further evidence of the continued acceptance and demand by the investment community for fixed-income ETF products.’
iShares has 14 fixed-income funds among its 59 products listed on the London Stock Exchange. Barclays Global Investors, which created the first index strategy in 1971 and the first quantitative active strategy in 1979, is the global leader in ETFs with more than 320 iShares funds for institutions and individuals at the end of last year.