Barclays launches C$110 million investment-grade and high-yield fund

By Reshmi Basu

New York, Feb. 18 - Barclays Global Investors Canada Ltd. said it completed the initial public offering of a C$110 million fund that will invest in both U.S. investment-grade corporate and high-yield corporate bonds.

The fund, called Barclays Advantaged Corporate Bond Fund, will consist of at least two-thirds investment-grade corporate bonds and up to one-third high-yield bonds.

The investment-grade corporate bonds component will match the Goldman, Sachs & Co. GS $ InvesTop Index and the high-yield portion will match the Goldman, Sachs & Co. GS $ HYTop Index.

The IPO has a greenshoe of C$16.5 million.

The units of the fund will trade on the Toronto Stock Exchange under the symbol "BAC.UN".

"The blended index approach enhances fixed income diversification by offering investors exposure to investment grade and high-yield corporate credit in a wide breadth, which isn't available in the Canadian fixed income market," said Gerry Rocchi, chief executive officer of Toronto-based Barclays Canada in a news release.

The syndicate was led by RBC Dominion Securities Inc.

Barclays Canada is an indirect subsidiary of Barclays plc and part of institutional funds manager, BGI.

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