iShares is rebranding and restructuring the iFtse ExUK fund.
The new name for the exchange traded fund will be the iShares FTSE Euro 100 fund to reflect its new investment stance.
The benchmark for the fund will change from the FTSE Ex UK index to the FTSE Euro 100 index. The main differences are that the fund will no longer invest in companies from Switzerland, Denmark, Norway and Sweden and it will also that be priced in euros instead of sterling.
As a result of this e the target market for the fund will also change. Instead of being aimed at investors who are looking for exposure to countries all over Europe, it will focus on clients who just want access to companies based in the Eurozone. The Eurozone is made up of countries that are getting ready for the advent of the euro as their single currency at the start of 2002.
One reason for the rebrand of the old fund has been a falling in demand for it. Most investors have been more interested in either pan-European funds that include the UK or funds that concentrate solely on the Eurozone. The former iFTSE ExUK fund therefore fell between these two areas, prompting the change of emphasis as well as change of benchmark index.
From January 15th 2001 to July 30, 2001 the iFTSE ExUK fund went from 100 points to 81 points.