Deutsche Bank offers through its db x-trackers platform additional Exchange Traded Funds linked to money markets rates
The db x-trackers II EONIA Total Return Index ETF became Europe’s biggest fixed income ETF with assets under management worth more than EUR 1.6bn.
Deutsche Bank (XETRA: DBKGn.DE/NYSE: DB) announced two additional listed Exchange Traded Funds linked to money market rates as part of their product offering. The db x-trackers II SONIA Total Return Index ETF and the db x-trackers II Fed Funds Effective Rate Total Return Index ETF reflect the British and American short-term money market interest rates of 5,48 percent (SONIA) and 3,47%(Fed Funds Effective Rate) as of the 25 January 2008.
ETFs are passive managed funds which are traded on the stock exchange and which reflect the performance of an index. Especially those ETFs based on money markets enjoy great popularity among institutional as well as private investors because of their high flexibility and low costs. The db x-trackers II EONIA Total Return Index ETF which is linked to the Eurozone money market rates, attracted more than EUR 1.6bn assets under management within less than 7 month. This makes it the biggest European fixed income ETF.
“The great success of the db x-trackers ETFs linked to the EONIA Total Return Index confirms that investors have already noticed the advantages of listed Funds linked to money market rates. The advantages are that they can be easily traded any time, show a high degree of transparency, have no investing-limits and are daily adjusted to the official money market rate.” says Thorsten Michalik who is responsible for db x-trackers – Deutsche Bank Exchange Traded Funds.
The indices tracked by db x–trackers money market ETFs increase daily, compounding their value at the respective interest rate and are thus implicitly capital protected. “The The db x-tracker money market ETF’s structure is extremely safe. They have demonstrated during the past months of market crisis to just diverge from the underlying indices due to the 0.15% all-in fees. Besides, being UCITS III compliant funds, our ETFs do not involve the same counterparty credit risk of deposits, certificates and bonds.” added Marco Montanari who is responsible for the development of fixed income funds at db x-trackers.
The new ETFs on SONIA® and FED Funds Effective Rate® Index will be traded in Euro in Deutsche Boerse and Borsa Italiana offering investors the opportunity to additionally participate in the performance of the respective underlying currency. In case the British Pound or the US-Dollar increases against the Euro during the investment period, the price of the respective ETF soars up too and vice versa. This is the reason why these two ETFs might be seen as the first two currency-ETFs in Europe.
In addition to the listing on Deutsche Börse and Borsa Italiana, the two new db x-trackers ETFs will also be listed on other European stock exchanges in the weeks ahead.
Further information can be found at www.dbxtrackers.com
In case you have questions please call Mr. Thorsten Michalik +49 (69) 919 30728
db x-trackers – Deutsche Bank Exchange Traded Funds
In January 2007 Deutsche bank launched 'db x-trackers', its new Exchange Traded Fund (ETF) platform. The db x-trackers ETFs are listed on multiple stock exchanges across Europe – Euronext Paris, Borsa Italiana, Frankfurt Xetra, London Stock Exchange and SWX Swiss Exchange l and supported by a number of market makers providing liquidity in the ETFs. Currently db x-trackers have 49 ETFs outstanding on Equity, Fixed Income, Credit, Money Market and Commodity indices. The db x-trackers ETF range includes many innovations including the first ETFs tracking short indices, CDS indices, money markets and global high dividend yield strategy. Further db x-trackers ETFs will be launched during 2008 providing exposure to new markets and asset classes. During 2007, db x-trackers ETFs saw the highest inflow in assets among all ETFs providers in Europe. The db x-trackers ETFs on the MSCI Emerging Markets Index, the EONIA Money Market Rate Index and the DJ Euro STOXX 50 had the highest inflow of new assets in Europe during 2007. The db x-trackers fixed income ETFs were responsible for over 50% of all new inflows for the asset class in Europe. The db x-trackers ETFs are sub-funds of the db x-trackers SICAV, an umbrella fund investment company domiciled in Luxembourg. The db x-trackers SICAV and its sub-funds comply with the relevant European fund regulations relating to undertakings for collective investment in transferable securities (UCITS III).
About Deutsche Bank
Deutsche Bank is a leading global investment bank with a strong and profitable private clients franchise. A leader in Germany and Europe, the bank is continuously growing in North America, Asia and key emerging markets. With 77,920 employees in 76 countries, Deutsche Bank offers unparalleled financial services throughout the world. The bank competes to be the leading global provider of financial solutions for demanding clients creating exceptional value for its shareholders and people.