SMART BETA FIXED INCOME EMERGING MARKET GOVERNMENT BOND ETF

SMART BETA FIXED INCOME EMERGING MARKET GOVERNMENT BOND ETFSMART BETA FIXED INCOME EMERGING MARKET GOVERNMENT BOND ETF

First of its kind in Europe, we are listing today a smart beta fixed income UCITS

SMART BETA FIXED INCOME EMERGING MARKET GOVERNMENT BOND ETF

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03 SEPTEMBER 2015

NEW LISTING: SMART BETA FIXED INCOME
EMERGING MARKET GOVERNMENT BOND ETF
First of its kind in Europe, we are listing today a smart beta fixed income UCITS ETF on the London Stock Exchange, investing in local emerging market government bonds. It is also scheduled to list shortly on the SIX Swiss Exchange.

Unlike typical market capitalisation emerging market fixed income ETFs, this fund weights each emerging country based on a set of fundamental, yield and liquidity based criteria. The focus is on each country’s ability to repay its debt rather than just investing in those countries with the most debt.

The country allocation includes exposure to China and India, which are usually excluded from popular market-cap indices. This ensures investors can access a more representative emerging market universe with greater diversification benefits, as they account for more than 50% of emerging market GDP.

Index performance has delivered (from 31 December 2004 to 31 August 2015*):

  • 5.82% annualised returns, outperforming the relevant market-cap benchmark, JPM GBI-EM Global Div (Unhedged) USD Index by 0.90% p.a.
  • Sharpe ratio of 0.53 on a risk-return ratio basis, over the same period against 0.29 for the market-cap benchmark, demonstrating the improved risk-adjusted return profile is due to its smart beta features
For further information, please visit: www.etfsloim.com.

* Source: Lombard Odier Investment Managers as at 31 August 2015. Prior to index inception on 12 January 2010, data has been simulated back to 31 December 2004 using the current rules-based methodology. There is no guarantee the methodology in place would have been in place throughout the period prior to index inception. As a result the performance could differ from that shown above. Past performance is not a guarantee of future results.

Fundamental fixed income solutions

Our expanding range of ETFs allow investors to gain smart beta exposure to government and corporate investment-grade debt:


  • New: Emerging Market Government Bond


  • Euro Corporate Bond

  • Global Corporate Bond

  • Global Government Bond

For more information email: info@etfsloim.com.

Important Information

 


This communication has been issued and approved for the purpose of section 21 of the Financial Services and Markets Act 2000 by ETF Securities (UK) Limited (”ETFS UK”) which is authorised and regulated by the United Kingdom Financial Conduct Authority (the ”FCA”).

The information contained in this communication is for your general information only and is neither an offer for sale nor a solicitation of an offer to buy securities. This communication should not be used as the basis for any investment decision. Historical performance is not an indication of future performance and any investments may go down in value.


This document is not, and under no circumstances is to be construed as, an advertisement or any other step in furtherance of a public offering of shares or securities in the United States or any province or territory thereof. Neither this document nor any copy hereof should be taken, transmitted or distributed (directly or indirectly) into the United States.

This communication may contain independent market commentary prepared by ETFS UK based on publicly available information. Although ETFS UK endeavours to ensure the accuracy of the content in this communication, ETFS UK does not warrant or guarantee its accuracy or correctness. Any third party data providers used to source the information in this communication make no warranties or representation of any kind relating to such data. Where ETFS UK has expressed its own opinions related to product or market activity, these views may change.

Neither ETFS UK, nor any affiliate, nor any of their respective officers, directors, partners, or employees accepts any liability whatsoever for any direct or consequential loss arising from any use of this publication or its contents.

ETFS UK is required by the FCA to clarify that it is not acting for you in any way in relation to the investment or investment activity to which this communication relates. In particular, ETFS UK will not provide any investment services to you and or advise you on the merits of, or make any recommendation to you in relation to, the terms of any transaction.  

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