BlackRock has switched the benchmarks on two of its emerging market debt exchange-traded funds (ETFs) to JP Morgan indices.
Launched in June 2011, the $6.3bn iShares EM Local Govt Bond UCITS ETF, which tracked the Bloomberg Barclays Emerging Markets Local Currency Core Government Bond index, has been renamed iShares JP Morgan EM Local Govt Bond UCITS ETF as of 12 July.
It has switched to the JP Morgan GBI-EM Global Diversified 10% Cap 1% Floor index, which will see Argentina and the Czech Republic added to the list of holdings, while the duration has moved from 5.3 years to 5.1 years.
Meanwhile, the $274m iShares $ EM Corp Bond UCITS ETF, launched in April 2012, which tracked the Morningstar Emerging Markets Corporate Bond index, has been renamed the iShares JP Morgan $ EM Corp Bond UCITS ETF.
It has switched to the JP Morgan CEMBI Broad Diversified Core index, meaning it tracks 100% corporate bonds, when previously it held 50% in quasi-government debt; its duration has also been reduced from 5.1 years to 4.9 years.
Both ETFs have an ongoing charges figure (OCF) of 0.50%.
A BlackRock spokesperson said: "We continually review our range of products to ensure they are meeting the evolving needs of our clients.
"We decided to change the index on these two funds because JP Morgan is a leading index provider in emerging market debt, and it helps to ensure consistency across our range of emerging market debt ETFs."
iShares' European EMD ETF range currently stands at $16.9bn in assets under management, as at 12 July.
'Significant' Brexit transitional deal needed
Rosalyn Breedy, corporate and financial services partner at Wedlake Bell, says UK asset managers should tackle their operating models to develop financial firms fit for the 21st century.
Higher stakes and limited options
Will negotiate for transition period
Sandro Pierri joins as global head of client group