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.
Recommended for you
BT is to launch a new low-cost “Focus” investment menu for its Panorama platform this October, in partnership with Vanguard, seeking to compete with industry superannuation funds.
Net gains of financial advisers have already doubled since the start of FY25, according to this week’s Padua Wealth Data, with momentum gathering pace far faster than the previous financial year.
National advice firm MiQ Private Wealth has appointed a new chief executive to lead the business through a “transformative era” after penning a partnership deal with AZ NGA earlier this month.
WT Financial’s managing director, Keith Cullen, believes the firm’s Hubco model with Merchant Wealth Partners will be a “repeatable growth model” for the business as it scales its adviser numbers.
