Solactive has launched the Solactive Broad Global Developed Government Bond TR EUR Index, a broad benchmark engineered to replicate the performance of the global developed sovereign local currency debt markets.
With this Benchmark Index, Solactive is able to substantially extend its coverage in the sovereign debt space, allowing asset managers to gain exposure to the developed sovereign debt market which has a size of over USD20.5 trillion. Initially designed as an underlying for various financial instruments, the index could also function as a starting universe for bespoke index solutions including regional and maturity subsets as well as alternative weighting approaches and ESG tilts.
The index universe is based on Solactive’s proprietary country classification schema, which has been adjusted to fit the specifics of the government debt markets. Eligible countries must either be classified as developed countries by Solactive’s country classification schema or be a member of the Eurozone. Given the global scope of this index, the portfolio is well-diversified across all major currencies and countries, therefore offering exposure to interest rates in all major regions of the world.
Timo Pfeiffer (pictured), Head of Research at Solactive, says: “Government bonds remain a core component in every fixed income portfolio. As a consequence of the strong demand for multi-currency sovereign indices, Solactive decided to expand its coverage of government bonds to a global extent, resulting in our new Global Developed Government Bond Index. The index can be tailored specifically for our clients based on their strategic requirements and distinct country focuses. Furthermore, we are taking the opportunity to release seven additional regional sub-indices of our global index that cover dedicated regions such as the Nordics or the Eurozone.”
The index components are weighted according to their respective market values in proportion to the aggregated market value of all index components in the index.
