Bloomberg Grows Municipal Indices with Launch of Customized Community Municipal Bond Index

Rhea-AI Summary

Bloomberg Index Services Limited announced the launch of the Bloomberg Goldman Sachs Community Municipal Index (Ticker: I37248) on April 12, 2023. This index targets 1-to-15 year maturities within the investment-grade municipal bond market, focusing on municipalities that meet specific sustainable criteria. The launch follows recent introductions of sustainable indices, including the Bloomberg Global Aggregate Green, Social, Sustainability Bond Indices. The newly launched index consists of bonds classified as Green, Social, or Sustainable in line with ICMA Principles, in addition to prerefunded bonds. The index has been adopted for the Goldman Sachs Community Municipal Bond ETF (Ticker: GMUN), further amplifying Bloomberg's commitment to sustainability in fixed income investments.

Positive

• Launch of a new sustainable municipal index providing targeted investment opportunities.
• Index supports bonds that align with Green, Social, or Sustainable criteria, catering to socially responsible investors.
• Collaboration with Goldman Sachs Asset Management enhances credibility and market reach.
• Adoption of the index for the GMUN ETF could increase investor interest and liquidity.

Negative

• None.

600+ municipal indices now published by Bloomberg Index Services Limited (BISL)

NEW YORK, April 12, 2023 /PRNewswire/ -- Bloomberg today announced the launch of the Bloomberg Goldman Sachs Community Municipal Index (Ticker: I37248), focused on 1-to-15 year maturities within the investment grade municipal bond universe with targeted allocation into municipalities and projects that meet certain classification requirements.

This launch follows recent Sustainable Index introductions, including the Bloomberg Global Aggregate Green, Social, Sustainability Bond Indices and the Bloomberg U.S. Municipal Impact Index both tracking Green, Social, and Sustainability Bonds and fields that show alignment with International Capital Market Association (ICMA) Principles and Guidelines.

The new index is a market-value weighted combination of two components of the intermediate-segment of Bloomberg's flagship Municipal Index. One component includes bonds which are classified as Green, Social or Sustainable by the Bloomberg Sustainable Finance Solutions Group and are in alignment with ICMA Principles, as well as prerefunded bonds. The other component includes bonds whose municipal sources, sectors, purposes or credit enhancements are not associated with negative environmental or social outcomes, such as casinos or lottery.

"We are glad to announce the Bloomberg Goldman Community Municipal Index created in collaboration with Goldman Sachs Asset Management," said Nick Gendron, Global Head of Fixed Income Index Product at Bloomberg. "The launch reiterates our commitment to offering best-in-class Municipal Indices through our access to industry standard municipal data sets, sophisticated index construction capabilities, as well as opportunities focused on sustainability in the fixed income space."

The index was launched in July 2022, with inception date of January 1, 2019. Bloomberg Terminal clients can access the index using the ticker I37248 Index <GO>. The index has been adopted for the recently launched Goldman Sachs Community Municipal Bond ETF (ticker: GMUN).

Bloomberg provides an independent, transparent approach to indexing for customers across the globe. Bloomberg clients can access available indices on the Bloomberg Terminal and all research and methodology for the indices is available at Bloombergindices.com.

About Bloomberg Index Services Limited

Bloomberg's index team has a proven track record in creating industry leading and bespoke indices across asset classes, including best in class fixed income and commodity indices. Bloomberg Index Services Limited (BISL) takes an innovative approach to delivering strategic benchmarks that help market participants address their evolving needs. As an integral part of Bloomberg, BISL has access to a comprehensive range of trusted data and reliable technology for calculations, analytics and workflow automation, along with distribution capabilities that can help amplify the visibility of our customers' products.

About Bloomberg

Bloomberg is a global leader in business and financial information, delivering trusted data, news, and insights that bring transparency, efficiency, and fairness to markets. The company helps connect influential communities across the global financial ecosystem via reliable technology solutions that enable our customers to make more informed decisions and foster better collaboration. For more information, visit Bloomberg.com/company or request a demo.

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SOURCE Bloomberg

FAQ

What is the Bloomberg Goldman Sachs Community Municipal Index?

The Bloomberg Goldman Sachs Community Municipal Index is a newly launched index targeting 1-to-15 year maturities within the investment-grade municipal bond market, focusing on sustainable investment opportunities.

When was the Bloomberg Goldman Sachs Community Municipal Index launched?

The index was announced on April 12, 2023.

What is the ticker symbol for the Goldman Sachs Community Municipal Bond ETF?

The ticker symbol for the Goldman Sachs Community Municipal Bond ETF is GMUN.

How does the new municipal index align with sustainability?

The index includes bonds classified as Green, Social, or Sustainable, ensuring alignment with the International Capital Market Association's Principles and Guidelines.

Who collaborated with Bloomberg for the launch of this index?

The index was created in collaboration with Goldman Sachs Asset Management.