New ETF aims to hedge out interest rate risk

Equities going upiShares has launched an exchange-traded fund that offers physical corporate bond exposure and mitigated interest rate risk in a single fund. The iShares Barclays Capital Euro Corporate Bond Interest Rate Hedged fund, hedges out the inherent interest rate risk using German government bond futures. The target duration is zero.   Alex Claringbull, senior fixed income portfolio manager for BlackRock’s iShares fixed income range, says the fund buys physical corporate bonds, and sells German government bond futures against those purchases, offering isolated credit exposure that allows investors to earn the extra corporate bond yield they are seeking. ©2012 funds europe

Executive Interviews

INTERVIEW: Put your money where your mouth is

Jun 10, 2016

At Kempen Capital Management, they believe portfolio managers should invest in their own funds. David Stevenson talks to Lars Dijkstra, CIO of the €42 billion manager.

EXECUTIVE INTERVIEW: ‘Volatility is the name of the game’

May 13, 2016

Axa Investment Managers chief executive officer, Andrea Rossi, talks to David Stevenson about bringing all his firm’s subsidiaries under one name and the opportunities that a difficult market...


ROUNDTABLE: Beyond the hype

Oct 13, 2016

The use of smart beta investing continues to grow. Our panel, made up of both providers and users, discusses what the strategy actually means, how it should be used and the kind of pitfalls that may arise when using this innovative investment technique.

MIFID II ROUNDTABLE: Following the direction of travel

Sep 07, 2016

Fund management firms Aberdeen and HSBC Global meet with specialist providers to speak about how the industry is evolving towards MiFID II.