S&P/ASX Australian Fixed Income Index Series Launched

S&P Indices and the Australian Securities Exchange (ASX) launched a comprehensive package of benchmarking tools for fixed interest investments in Australia: The S&P/ASX Australian Fixed Income Index Series.

The launch of the S&P/ASX Australian Fixed Income Series will complement Australia’s official S&P/ASX Equity Index Series, providing a complete offering across the key asset classes of cash, fixed income and equities.

The S&P/ASX Australian Fixed Income Index Series is a broad benchmark suite of indices designed to measure the performance of the Australian short-term money market and the Australian bond market which meet the index eligibility criteria.

The S&P/ASX Australian Fixed Income Index Series comprises:
– The S&P/ASX Australian Fixed Interest Index – the flagship bond index, measuring the performance of the Australian bond market and the sub-sector indices
– The S&P/ASX Government Bond Index
– The S&P/ASX Commonwealth Government Bond Index
– The S&P/ASX State Government Bond Index
– The S&P/ASX Corporate Bond Index
– The S&P/ASX Supranational and Sovereign Bond Index
– The S&P/ASX Bank Bill Index – measuring the performance of the Australian shortterm money market.

The launch of the S&P/ASX Australian Fixed Income Index Series is a direct reflection of increased investor attraction to the fixed income asset class given the ongoing volatility in global markets. The launch is also a direct response to interest expressed by investment managers, investment product sponsors, managed and superannuation funds and professional advisors for an independent specialist index provider.

Guy Maguire, Head of S&P Indices in Australia, said that like the rest of the world, Australian advisors and investors are looking for access to a comprehensive range of asset class indices to enable them to better manage volatility.

“Australian investors need a comprehensive set of equity and fixed income measurement tools to benchmark the performance of investments. Like the S&P/ASX Equity Index Series, the S&P/ASX Fixed Income Index Series is transparent, liquid, investible and independent.”

“Working with financial institutions and investment groups in major markets across the globe, we are increasingly seeing the emphasis on fixed income growing as a vital asset class offering. With the launch of the S&P/ASX Fixed Income Index Series, S&P Indices is the first index provider to offer complete asset class coverage in Australia, providing investors with a deeper, more complete line-up of indices for benchmarking their portfolios.”

Ken Chapman, General Manager for Futures and Options at ASX said: “The development of the S&P/ASX Fixed Income Index Series underpins ASX’s determination to improve investor understanding of this critical asset class and to help develop fixed income assets and supporting infrastructure. The indices complement ASX’s central role in facilitating risk transfer through its bond futures contracts, which also enable capital formation and investment through ASX’s operation of the listed interest rate securities market.”

S&P Indices and the ASX have a long history in servicing both debt and equity markets, domestically and globally. The introduction of the S&P/ASX Australian Fixed Income Index Series complements the existing S&P/ASX Equity Index Series, where over 90 domestic equity indices have been created since 2000.