SAO PAULO, Brazil, June 10, 2010 (GLOBE NEWSWIRE) -- BM&FBOVESPA (Bovespa:BVMF3) hereby announces the opening of the Bidding Process for the selection of a securities portfolio manager that will obtain an exclusive license for the use of the BM&FBOVESPA Financial Index (IFNC) for the launching of an Exchange Traded Fund (IFNC ETF), whose shares will be traded on the BOVESPA market segment.
All entities interested in participating in the Bidding Process must submit their documentation to BM&FBOVESPA by no later than July 19, 2010. The winning bidder will be the entity that provides the highest value commitment. The results of the Bidding Process will be disclosed in a public session to be held at 10:00 a.m. on August 2, 2010, at the main offices of BM&FBOVESPA.
Through the opening of the bidding process for the selection of a manager for the new IFNC ETF, BM&FBOVESPA aims to provide the market with new investment alternatives. To this end, the Exchange chose the BM&FBOVESPA Financial Index, which was launched on January 4, 2010, as a reference index for the new ETF. The objective of the IFNC is to track the performance of shares issued by companies that are representative of the financial intermediaries, diversified financial services, and insurance, life and multi-line sectors.
The entity that wins the Bidding Process will be granted an exclusive license for a three (3)-year period for the use of the BM&FBOVESPA Financial Index (IFNC) for the specific purpose of launching the ETF based on the IFNC. Only legal entities that (i) have been authorized by the Securities and Exchange Commission (CVM) to perform professional securities portfolio management activities, pursuant to CVM Instruction 306/99, acting as a fund portfolio manager, and (ii) have or belong to an economic group that has, in Brazil and/or abroad, assets under management (AUM) amounting to at least BRL2,000,000,000.00 will be entitled to participate in the Bidding Process.
Exchange Traded Funds (ETFs), also known as trackers, are investment funds based on market indices, whose shares can be traded on Stock Exchanges, which allow investors to own the stocks that make up the fund's portfolio without the need to buy the securities of various companies directly. Currently, seven (7) index funds are traded at BM&FBOVESPA: iShares Ibovespa ETF (BOVA11), iShares BM&FBOVESPA Small Cap ETF (SMAL11), iShares BM&FBOVESPA MidLarge Cap ETF (MILA11), iShares IBRX – Index Brazil (IBRX-100) Index Fund (BRAX); iShares Index BM&FBOVESPA Consumption Index Fund (CSMO); iShares Index BM&FBOVESPA Real Estate Index Fund (MOBI), which are managed by BLACKROCK BRASIL, and PIBB ETF - Brazil Tracker (PIBB11), which is managed by Banco Itau.
About BM&FBOVESPA
BM&FBOVESPA S.A. - The Brazilian Securities, Commodities and Futures Exchange was created in 2008 with the integration between the Brazilian Mercantile & Futures Exchange (BM&F) and the Sao Paulo Stock Exchange (Bovespa). Together, the companies have created one of the largest listed exchange groups in the world, the second in the Americas, and the leading exchange in Latin America. The Exchange features a vertically integrated business model, with trading, registration, netting, settlement, risk management, market data, and central securities depository services. BM&FBOVESPA's state-of-the-art technological resources provide investors with an efficient and secure trading and post-trading environment. Among its broad range of trading products, the Brazilian Exchange offers equities, securities, financial assets, indices, interest rates, agricultural commodities, as well as foreign exchange futures and spot contracts, and acts as a central counterparty for all of its market segment through its four clearinghouses - equity, derivatives, foreign exchange, and securities.
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