Market Vectors Index Solutions has launched the Market Vectors EM Aggregate Bond Index (MVEMAG) and four derived sub-indices.
Market Vectors EM Aggregate Bond Index tracks the performance of Emerging Markets sovereign bonds and corporate bonds denominated in US dollars, Euro or local Emerging Markets currencies. This includes investment-grade and below investment-grade bonds of the following categories: sovereign bonds, corporate bonds and quasi-sovereign bonds, either USD-denominated or EURO-denominated and sovereign bonds, corporate bonds and quasi-sovereign bonds, local-currency-denominated. The indices are particularly designed to underlie exchange-traded products (ETPs).
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Lars Hamich, CEO at MVIS, said: "Emerging Markets institutional investors have evolved in their approach to the asset class, investing decreasingly in hard currency sovereign debt and increasing in local debt markets and corporate debt. This evolution is reflected in the market capitalization of these various forms of debt, with hard currency sovereign debt now representing the smallest share among three major categories.
"While a large number of managers today employ strategies that invest across all of products, there has not yet been a singular index to represent the mix between sovereign, corporate, hard currency and local currency debt. Such an index may allow managers, and their investors, to better measure performance versus the complete opportunity set that they are employing in their strategies," Hamich added.
Derived from Market Vectors Emerging Markets Aggregate Bond Index are four sub-indices: Market Vectors EM Sovereign Bond Index (USD&EUR), Market Vectors EM Sovereign Bond Index (local FX), Market Vectors EM Corporate Bond Index (USD&EUR) and Market Vectors EM Corporate Bond Index (local FX). The indices are calculated as Total Return indices and are reviewed monthly.
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