In a sign of increasing international interest in European equities, BBVA Fondos Mutuos, one of Chile's leading mutual fund companies, has licensed the Dow Jones EURO STOXX 50 index for use as the underlying for a new guaranteed mutual fund.
"Our license agreement with BBVA Fondos Mutuos confirms the success of the Dow Jones EURO STOXX 50 index," said Lars Hamich, managing director of STOXX Ltd.
Dow Jones says there is "increasing interest" in the index among South American investors, although today's announcement marks the first licensure of the index on the continent. The index is already licensed to institutions in Mexico, Puerto Rico and Panama.
The license will allow the Euro Stoxx index to serve as part of the underlying for the "Fondo Mutuo BBVA Garantizado 100," an international fund that also provides exposure to the S&P 500 and the Nikkei 225. The fund is guaranteed not to lose value; in turn, investors must invest for the long-term and do not reap the full reward of rising markets. Guaranteed funds, popular in many markets (particularly Spain), are a relatively new addition to the Chilean marketplace, but are expected to grow rapidly.