IndexUniverse.com
Print This Article

Sections

WisdomTree Plans To Repeat ELD Midas Touch
By Olivier Ludwig | October 19, 2010 2:36 pm

Related ETFs: ELD

WisdomTree Investments, the firm whose broad-based local-currency bond ETF has gained significant assets since its launch this summer, is looking to replicate its golden touch with three actively managed bond funds focused on Asia, Latin America and Europe/Middle East/Africa, respectively.

The Asia Bond Fund, Latin America Bond Fund and the EMEA Bond Fund will all own locally denominated debt and be listed on Arca, the New York Stock Exchange’s electronic trading platform, New York-based WisdomTree said in a regulatory filing with the Securities and Exchange Commission. It didn’t specify trading symbols or expense ratios.

The WisdomTree Emerging Market Local Debt Fund (NYSEArca: ELD) has shown investors are ready to make a place in their portfolios for locally denominated developing-world debt at a time when emerging markets are growing and the developed world is in its worst slowdown since the 1930s. ELD, which launched Aug. 9, had $353 million in assets as of Oct. 18. That’s $82 million more than on Sept. 30.

WisdomTree said in the filing that:

  • The Asia Bond Fund would focus mainly on China, Hong Kong, India, Indonesia, South Korea, Malaysia, Philippines, Singapore, Taiwan and Thailand.
  • The Latin America Fund would target Brazil, Chile, Colombia, Mexico, Panama, Peru, Uruguay and Venezuela.
  • the EMEA Bond Fund would focus on Czech Republic, Egypt, Hungary, Israel, Poland, Qatar, Romania, Russia, Slovakia, South Africa, Turkey and United Arab Emirates.

All three actively managed funds will be able to own investment-grade and noninvestment grade fixed-income securities from government and corporate entities, as well as debt issued by supranational organizations such as the European Investment Bank, the International Bank for Reconstruction and Development, and the International Finance Corporation.

The funds will also be able to invest in locally denominated inflation-linked fixed-income securities, the filing said.

 

 

Discussion

Post a Comment
Comment
(Max. 2,000 characters)
Name:
E-mail:
Home page:

(optional)

Type in the
displayed characters:
CAPTCHA Image [ Different Image ]
Email follow-up comments to my e-mail address