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iShares launches two fixed income funds with longer duration

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Exchange-traded fund provider iShares has launched the iShares 10+ Year Credit Bond Fund and the iShares 10+ Year Government/Credit Bond Fund.

iShares has introduced the funds to complete the curve exposure of its product line and to meet current client demand in longer term bonds.

"The two new iShares bond funds complement the existing iShares fixed income product line and provide investors with targeted exposure to the long end of the yield curve in the government and credit markets. These new funds will provide institutional investors and individual investors and their financial advisors additional flexibility in tailoring their fixed income portfolios in the current market environment," says Matt Tucker, director of US fixed income strategy, BlackRock.

The iShares 10+ Year Credit Bond Fund is designed to track to BofA Merrill Lynch 10+ Year US Corporate & Yankees Index. The index is a broad, market value weighted, total rate of return index designed to measure the performance of the long-term, investment-grade US corporate and Yankee bond markets.

Component securities include debt issued publicly by US corporations and US dollar-denominated, publicly-issued debt of non-US corporations, foreign government debt and supranational debt. The securities in the index have USD250m or more of outstanding face value, and have at least ten years remaining to maturity or to the first call date in the case of callable perpetual securities. The index is rebalanced on the last calendar day of each month.

As of 30 June 2009, the index consisted of 1,093 USD-denominated issues of supranational, national and corporate entities whose principal place of business is in the following countries: Australia, Barbados, Belgium, Bermuda, Brazil, Canada, the Cayman Islands, Chile, Finland, France, Germany, Hong Kong, Israel, Italy, Luxembourg, Malaysia, Malta, Mexico, the Netherlands, Norway, Peru, Qatar, Russia, South Africa, South Korea, Spain, Sweden, Switzerland, Thailand, Trinidad/Tobago, the United Arab Emirates, the UK and the US.

The iShares 10+ Year Government/Credit Bond Fund is designed to track the BofA Merrill Lynch 10+ Year US Corporate & Government Index. The index is a broad, market value weighted, total rate of return index designed to measure the performance of the long-term, investment-grade US corporate and government bond markets.

Component securities include publicly-issued US Treasury debt, US government agency debt, debt issued by US and non-US corporations, foreign government debt and supranational debt. The securities in the index have USD250m or more of outstanding face value, USD1bn for US treasuries, and have at least ten years remaining to maturity or to the first call date in the case of callable perpetual securities. The index is rebalanced on the last calendar day of each month.

As of 30 June 2009, the index consisted of 1,266 USD-denominated issues of supranational, national and corporate entities whose principal place of business is in the following countries: Australia, Barbados, Belgium, Bermuda, Brazil, Canada, the Cayman Islands, Chile, Finland, France, Germany, Hong Kong, Israel, Italy, Luxembourg, Malaysia, Malta, Mexico, the Netherlands, Norway, Peru, Qatar, Russia, South Africa, South Korea, Spain, Sweden, Switzerland, Thailand, Trinidad/Tobago, the United Arab Emirates, the UK and the US.

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