Dow Jones Indexes, LVA Indices and Proveedor Integral de Precios have signed a joint marketing agreement to help raise the profile and contribute to the transparency of Latin America’s
Dow Jones Indexes, LVA Indices and Proveedor Integral de Precios have signed a joint marketing agreement to help raise the profile and contribute to the transparency of Latin America’s growing fixed-income market.
Under the agreement, the parties will calculate, market and license the newly launched Dow Jones Latixx Indexes. The new indexes measure corporate and government bonds in major Latin American countries.
The first ten indexes in the Dow Jones Latixx Index series represent the bond markets in Mexico and Chile. The five Dow Jones Latixx Indexes for Mexico have been licensed by Barclays Global Investors to serve as the basis for exchange-traded funds. The ETFs are expected to be available in July.
This is the parties’ first step to establishing the Dow Jones Latixx Indexes as the region’s prime fixed-income index family. The partners expect to expand their initiative to include additional fixed-income indexes for markets such as Brazil, Peru, Colombia, Costa Rica, Venezuela, Argentina.
Michael A. Petronella, president, Dow Jones Indexes, says: ‘The bond market is the primary and most actively used investment vehicle in Latin America. Dow Jones Indexes has teamed up with LVA and PiP, two of the continent’s leading fixed-income experts, to create an index family that provides market participants with diversified exposure to this growing and exciting asset class. Furthermore, the Dow Jones LATixx Indexes can serve as the basis of passive financial products, such as the ETFs being launched by BGI.’
Gregorio González, chief executive of LVA Indices, adds: ‘Not only will we produce indexes that can be replicated in financial products, we also aim to create full families of indexes for each country, covering the entire range of instruments issued in their local fixed income markets. These broad market indexes will open up new possibilities for market participants, allowing the application of global best practices in measuring and analyzing portfolio risk and performance. Building such benchmarks for local fixed income investments has the added benefit of greater transparency and makes the market more attractive for foreign investors.’
The five indexes for the Mexican fixed-income market measure the performance of specific types of government-issued bonds. The five new indexes for the Chilean fixed-income market include both government and corporate bonds.
LVA Indices is a company that specializes in local Latin American fixed income, with offices in Chile and Peru.
Proveedor was the first price provider authorized in Mexico. It has nine years of experience serving institutional clients in Mexico and in other countries such as the US, Chile, Spain and the Netherlands.