Colchester launches first two ETFs in Australia

Colchester Global Investors has launched two new ETFs, marking it's first offerings in Australia and named Equity Trustees as the Responsible Entity.

Colchester has launched the Colchester Global Government Bond Complex ETF and Colchester Emerging Markets Bond Complex ETF, saying investor demand for both ETFs and fixed income strategies continues to grow, driven by higher bond yields, ongoing market uncertainty and an increased focus on portfolio diversification.

The two new ETFs are structured to provide investors with access to Colchester's specialist sovereign fixed income capabilities.

The Colchester Global Government Bond Complex ETF aims to achieve favourable income and capital returns from a globally diversified portfolio of primarily sovereign debt or debt-like securities and currencies.

While, the Colchester Emerging Markets Bond Complex ETF aims to generate favourable income and capital returns from a globally diversified portfolio of primarily sovereign emerging market debt or debt-like securities and currencies.

"Colchester has always focused on doing one thing deliberately well, investing exclusively in global sovereign bonds and currencies," Colchester chief executive and deputy chief investment officer Keith Lloyd said.

"Our valuation-driven approach, grounded in assessments of real yields and real exchange rates, has been applied consistently for more than 25 years across both developed and emerging sovereign debt markets."

Lloyd said Australia has been an important market for Colchester for many years, and the launch of its first ETFs represents a natural extension of its long-term commitment to Australian investors.

"The launch reflects growing demand for transparent, high-quality fixed income solutions and provides investors with efficient access to our disciplined investment approach in a listed structure. We are pleased to bring these capabilities to Australian investors in partnership with Equity Trustees."

Equity Trustees executive general manager of corporate and superannuation trustee services Andrew Godfrey said: "As investors continue to seek opportunities beyond traditional domestic fixed income markets, these ETFs seek to provide access to high-quality global sovereign bond strategies through a transparent and efficient listed structure. We are pleased to continue our partnership with Colchester and support the firm's expansion into the Australian ETF market."