Frankfurt-based index provider Solactive has developed its sovereign bonds product offering with the launch of its Emerging Market Bond Index Series.
Canadian investment firm Mackenzie Investments has already licensed two customised versions of the emerging market bond series for the launch of two ETFs. Earlier this week, Solactive partnered with Mirae Asset Global Investments for the launch of two Chinese thematic products.
Solactive offers customised versions of the indices and says the series comes with the option to include environmental, social and governance (ESG) or other strategy overlays.
The launch follows Solactive conducting market research with a number of its clients to evaluate feedback and requests. Solactive’s proprietary Country Classification Schema accounts for a maximum of transparency and consistency.
Solactive: Investigating companies with negative book value
Investor perceptions of emerging market sovereign bonds have become more positive in recent years as emerging market sovereign ETFs attracted some of the largest inflows in Europe for 2018, according to the index provider.
This adds to the company’s developed sovereign bond indices currently on offer.
Jennifer Steding, head of fixed income at Solactive, commented: “Since 2006, emerging market bonds increased in significance, and for a long time, it was one of the most commonly enquired products to our fixed income product development team.
“With the new series, we have carefully listened to crucial client feedback, in order to deliver a product that is both transparent and highly customizable.”
