On January 1st, 2019, the Tel-Aviv Stock Exchange (TASE) is to launch a new government bond index: CPI-Linked, Gov. Bonds, 15+ Years. The base index for the new index will be set in accordance with the base index for the CPI-Linked, Gov. Bonds, 10+ Years Index.
This index is expected to complete the family of government bonds umbrella of indices products that TASE calculate and disseminate. Currently, the family of government bond indices comprises 12 indices. The government bond indices segment manages an aggregate amount of 12 NIS billion in index-tracking products, and the new index is expected to increase the number of products in this segment.
The index is aimed for investors with preferences to CPI-linked bonds who anticipate a rise in inflation, as well as for investors that seek to have an exposure to long duration.
The new index is in fact an old index whose publication ceased on July 31st, 1994, due to limited amount of bonds applicable to this index being listed on TASE (the lifespan of the bonds that had been included in the index had naturally shortened and no new long series had been issued). The index will now comprise three series of bonds, the longest of which will be redeemed in 2045.
The composition of the index is as follows:
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