The WisdomTree Emerging Markets Corporate Bond Fund (EMCB) has received a risk-based capital designation of three from the Securities Valuation Office of the National Association of Insurance Companies (NAIC).
Rick Harper, WisdomTree head of currency and fixed income, says: “Securing risk-based capital designations from the NAIC enables investors to look through the ETF wrapper to the underlying bonds, allowing for a practical assessment of the fund.”
The Securities Valuation Office of the NAIC assigns credit quality designations to securities held by state-regulated insurance companies. NAIC designations are opinions of credit quality that range from NAIC one, being the highest quality, to NAIC six, being the lowest quality. NAIC designations allow fixed income ETFs to be reported as bonds and are used to set risk-based capital requirements.