The WisdomTree Emerging Markets Local Debt Fund (ELD) has received a risk-based capital Designation of 1 (-) from the Securities Valuation Office of the National Association of Insurance Commissioners (NAIC).
This follows a previous NAIC 3 Designation of The WisdomTree Emerging Markets Corporate Bond Fund (EMCB) on 16 April 2013.
Rick Harper, WisdomTree head of currency and fixed income, says, “We are pleased to receive an NAIC 1 (-) Designation for the fund. This Designation places ELD within the highest credit quality rating category. We believe the ratings of our fixed income funds will be instrumental in broadening the pool for assessment and consideration among insurance companies when managing their risk-based capital requirements.”
The Securities Valuation Office of the National Association of Insurance Commissioners assigns credit quality designations to securities held by state-regulated insurance companies. NAIC Designations are opinions of credit quality that range from NAIC 1, the highest quality, to NAIC 6, the lowest quality. NAIC Designations allow fixed income ETFs to be reported as bonds and are used to set risk-based capital requirements.
