Barclays' Launches Two International Treasury Bond Funds

New iShares offerings give exposure to international fixed income markets

Barclays Global Investors has launched the iShares S&P/Citigroup International Treasury Bond Fund and the iShares S&P/Citigroup 1-3 Year International Treasury Bond Fund. The new funds offer ways to access the international fixed income markets, according to Barclays.

The iShares S&P/Citigroup International Treasury Bond Fund seeks investment results that generally correspond to the price and yield performance, before fees and expenses, of the S&P/Citigroup International Treasury Bond Index Ex-US Index. The underlying index is a market value-weighted index, designed to measure the performance of Treasury bonds issued in local currencies by developed market countries outside of the U.S. that have a remaining maturity greater than one year. According to Barclays, as of December 31, 2008, the index securities were issued by the following 19 countries: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Japan, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom.

The iShares S&P /Citigroup 1-3 Year International Treasury Bond Fund seeks investment results that generally correspond to the price and yield performance, before fees and expenses, of the S&P/Citigroup International Treasury Bond Index Ex-US 1-3 Year Index. The underlying index is also a market value-weighted index, designed to measure the performance of Treasury bonds issued in local currencies by developed market countries outside of the U.S. that have a remaining maturity of greater than one year and less than or equal to three years. As of December 31, 2008, the index securities were issued by the same19 countries as listed above.

"U.S. investors are increasingly looking to diversify their portfolios by adding non-U.S. fixed income exposure," said Matthew Tucker, head of U.S. Fixed Income Investment Strategy at Barclays, in announcing the news. "The new International Treasury iShares ETFs allow investors to access global bond markets with the same transparency, liquidity, and cost-effectiveness they have come to expect from iShares funds."

The new iShares ETFs, with management fees of 0.35%, began trading on January 23, 2009 on the NASDAQ.

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