CO EURIZON SLJ EM BOND SI ETF - GBPH DIS
| Issuer: Connect ETFs |
| Asset Class: Fixed Income |
| TER: 35bps |
| Trading Currency: GBP |
| Pays Income: False |
| Listing Date: 14 Jan 2025 |
| Ticker: EBGD |
| ISIN: IE000U8A7X11 |
This actively managed fund aims to deliver total return by primarily investing in a diversified portfolio of debt securities issued by governments and government-related entities in emerging market countries. The investment strategy integrates Environmental, Social, and Governance (ESG) criteria, selecting issuers that demonstrate strong or improving sustainability profiles. This approach seeks to provide exposure to the growth potential and higher yields often found in emerging markets while mitigating risks through a disciplined ESG screening process. The portfolio focuses on hard currency bonds, which are denominated in currencies like the U.S. dollar, reducing direct currency risk from volatile emerging market currencies.
The fund's active management is a key feature, allowing the investment team to dynamically adjust the portfolio based on macroeconomic analysis, country-specific risk assessments, and relative value opportunities. The managers combine top-down views on global economic trends with bottom-up security selection to construct the portfolio. The integration of ESG factors is not just a negative screen; it actively seeks out issuers that are making positive strides in sustainability, which the managers believe can lead to better long-term risk-adjusted returns. This dual focus on financial fundamentals and ESG performance differentiates it from passive, index-tracking emerging market debt products.
This investment may be suitable for those seeking to enhance their fixed-income allocation with exposure to the potentially higher returns of emerging market debt. It is designed for investors with a medium to long-term horizon who are comfortable with the higher volatility associated with emerging markets. The fund's active management and ESG focus could appeal to individuals who want a professional team to navigate the complexities of these markets and who wish to align their investments with sustainability principles. As a component of a diversified portfolio, it can serve as a satellite holding to potentially boost overall yield and return.
