Investing in fixed income indices gains traction

Investing in funds that track fixed income benchmarks has gained popularity. An interest in local markets and fixed income markets overall has contributed to this segment, that is yet to boom in Asia.

The world’s first bond index fund was launched in 1973 by Lehman Brothers, offering individual investors an alternative to over the counter (OTC) bond transactions and actively managed fund investments. In 2002, iShares launched the first fixed income exchange traded funds (ETF), namely the iShares iBoxx $ Investment Grade Corporate Bond ETF and the iShares 20+ Year Treasury Bond ETF.

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