Merrill launches fixed interest index
Merrill Lynch has launched a broad index of Australian debt securities that is one of the final building blocks in its soon-to-be-launched global index.
Merrill Lynch has launched a broad index of Australian debt securities that is one of the final building blocks in its soon-to-be-launched global index.
The Australian Broad Market Index tracks investment grade Australian dollar denominated debt of sovereign, quasi-government and corporate issuers domiciled in investment grade countries.
Including 122 bonds with total capitalisation of more than $132 billion, the index, together with comparable indices for the United States, Canada, Pan-Europe and Japan, will be included in a Merrill Lynch Global Broad Market Index, to be launched next month.
Merrill Lynch & Co managing director Phil Galdi says "explosive growth" in the attention in-vestors pay to debt market indices prompted the creation of the new product.
He says increasingly difficult to interpret and changing market environments have increased in-dice use.
"As new markets evolve, there's a new need for new performance standards," Galdi says.
Increasing use of corporate debt as a primary source of return in fixed income portfolios, driven by declining yields and supply in the government debt markets, has also pushed up the use of indices.
AUTHOR
Recommended for you
As the government announces a public inquiry into the collapse of Dixon Advisory, risk adviser Richard Silberman has detailed the three areas that typically lead to an AFSL's collapse.
With a growing number of advisers now running their own business, they need to pivot their career identity to being a business owner rather than just as a financial adviser if they want to futureproof their business.
Zenith Investment Partners has launched a range of new managed account portfolios over the past quarter, including on Insignia Financial’s Expand platform.
The financial services technology firm has officially launched its digital advice and education solution for superannuation funds and other industry players.
