ETFlab Investment GmbH
ETFlab Investment GmbH: Corporate Bonds broadly diversified
ETFlab Investment GmbH / Product Launch 03.03.2010 10:00 Dissemination of a Financial News, transmitted by DGAP - a company of EquityStory AG. The issuer / publisher is solely responsible for the content of this announcement. --------------------------------------------------------------------------- ETFlab offers ETF with European corporate bonds ETFlab iBoxx EUR Liquid Corporates Diversified (ISIN: DE 000 ETF L37 5) Munich, March 3, 2010. With the ETFlab iBoxx EUR Liquid Corporates Diversified ETFlab Investment GmbH, the Munich specialist for exchange traded funds, provides access to a broadly diversified basket of Euro corporate bonds. 'They allow investors to enjoy much higher returns than federal bonds', Andreas Fehrenbach, the managing director of ETFlab points out. However, especially with corporate bonds it was absolutely advisable to diversify an investment over various industries and countries. 'An ETF is ideally suited for this, as the investor, with one trade, buys a whole investment portfolio', the ETF expert explains. The underlying index contains 75 bonds of issuers having their principal seat in Euroland, Switzerland, Great Britain, Sweden, Norway, and Denmark. Only primary bonds with a fixed coupon are qualified. In order to additionally limit risks further measures have been taken. Only two bonds are allowed per issuer, the weighting per issuer has been limited to 7.5 per cent. Higher requirements apply to issuers from the finance sector. They must have a rating of at least A-, whereas for other issuers a rating of BBB- may be sufficient to be taken into consideration. 'By thus, we fulfil the need for increased safety as a result of the financial crises' ETFlab's managing director Fehrenbach points out. In general, the issuing of the bonds within the index must not date back more than three years. A residual maturity of 1.5 to 10.5 years is observed. The ETF tracks the index in a fully replicating manner, i.e. the original securities are contained in the fund assets, which are in compliance with the UCITS III guidelines. Currently, almost 89 per cent of the instruments contained have a rating of A or better. Among the countries, the Netherlands (29 %), France (16 %) and Great Britain (13 %) are weighted most heavily. According to the current classification by industries, it is above all banks (49 %), utilities (16 %), automobiles and telecommunication (8 % each) which are included. The average residual maturity is 4.6 years, with a return of 3.4 per cent. With its total expense ratio (TER) of 0.20 per cent the new fund counts among the most moderately priced among the corporate-bond funds worldwide. Trading in the XTF segment of Deutsche Börse will be started on March 3. On ETFlab Investment GmbH: ETFlab Investment GmbH was founded in February 2008, and currently manages a volume of approx. 4.5 billion euros in 33 Exchange Traded Funds. Since the end of March 2008, exchange traded index funds of ETFlab have been listed at Deutsche Börse. According to the motto 'ETFs Made in Germany', the company has orientated itself towards the needs of professional investors, as regards to the management of investment products and their construction. 'We are a German capital investment company developing solutions at the request of our customers. ETFlab iBoxx EUR Liquid Corporates Diversified Investment target: The primary target of the ETFlab iBoxx EUR Liquid Corporates Diversified is to track the iBoxx EUR Liquid Corporates Diversified Index (price index) as exactly as possible. The ETFlab iBoxx EUR Liquid Corporates Diversified provides the share owner with an easy and efficient access to the segment of EURO corporate bonds from issuers with their principal seat in Euroland, Great Britain, Switzerland, Denmark,Sweden, and Norway Investment policy: Index replication with the original securities (full replication) Launch date/Listing: 17/02/2010 / 03/03/2010 WKN: ETF L37 ISIN: DE 000 ETF L37 5 Replication: approx. 1/1 of the index level Trading currency: EUR Costs: All-In Fee 0.20 % p.a. Fiscal year: 01/03 - 28-29/02. Use of profits: Distribution Designated Sponsor: DekaBank, Deutsche Girozentrale Contact: Thomas Pohlmann Head of Marketing & Product Management ETFlab Investment GmbH Wilhelm-Wagenfeld-Straße 20 D - 80807 München Tel +49 (0)89 327 29 - 33 33 Fax +49 (0)89 327 29 - 33 13 Mail presse@etflab.de 03.03.2010 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: ETFlab Investment GmbH Wilhelm-Wagenfeld-Straße 20 80807 München Deutschland Internet: www.etflab.de End of News DGAP News-Service ---------------------------------------------------------------------------
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