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 Corporate Sustainability Index (ISE) and the Corporate Governance Trade Index (IGCT) as references for the respective launches of the ISE ETF and IGCT ETF (Exchange Traded Funds).
All entities interested in participating must submit their documentation to BM&FBOVESPA by no later than March 2, 2011. The winning bidder for each of the ETFs will be the entity that provides the highest value commitment. The results of the Bidding Process will be disclosed in a public session on March 22, 2011.
Through the opening of the bidding process for the selection of the manager for the new ETFs, BM&FBOVESPA aims to provide the market with new investment alternatives. To this end, the exchange has chosen ISE – which was launched in 2005 and measures the performance of shares issued by companies committed to sustainability – and IGCT – which was launched at the start of January and measures the performance of shares issued by companies that voluntarily adopt differentiated corporate governance standards.
The entity that wins the Bidding Process will be granted an exclusive license for a one (1)-year period for the use of the ISE and IGCT indices for the specific purpose of launching the ETFs based on the ISE and IGCT. Legal entities will be entitled to participate in the Bidding Process if they (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 BRL 2,000,000,000.00. What is more, the securities portfolio manager should nominate an investment fund manager that has assets under management amounting to at least BRL 10,000,000,000.00.
ETFs 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.