Emerging Global Advisors (EGA), the asset manager to the EGShares exchange-traded fund offering, and The TCW Group (TCW), have partnered to launch a suite of emerging market (EM) fixed income ETFs.
The EGShares TCW EM Short Term Investment Grade Bond ETF (SEMF), the EGShares TCW EM Intermediate Term Investment Grade Bond ETF (IEMF) and the EGShares TCW EM Long Term Investment Grade Bond ETF (LEMF) are the industry’s first suite of EM fixed income ETFs to provide duration-defined exposure to USD-denominated, investment grade emerging market sovereign and corporate bonds.
All three funds are advised by EGA, sub-advised by TCW and track custom indices created and monitored by JP Morgan.
The partnership brings together EGA, an industry leader in emerging market ETFs through its EGShares funds, and TCW, an emerging market fixed income asset manager, to provide investors with better tools with which to target emerging market fixed income growth opportunities.
The funds will be managed by Penelope D Foley and David I Robbins, group managing directors of emerging markets strategies at TCW.
“We identified the lack of duration-defined, emerging market fixed income solutions as an investor need and selected a partner with a proven long-term track record managing emerging market fixed income,” says Marten S Hoekstra, chief executive officer of Emerging Global Advisors. “Collaborating with TCW allows us to offer investors the ability to implement similar investment strategies in EM fixed income as they do in developed markets.”
“TCW has always focused on adding value to investors’ portfolios through rigorous analysis and deep asset class expertise,” says David Lippman, chief executive officer of TCW. “By partnering with EGA, we saw an opportunity to deliver our firm’s unique process and insights in emerging market fixed income to an ETF that allows clients to control for a duration that best matches their individual investment strategy.”
The EGShares TCW EM Short Term Investment Grade Bond ETF, sub-advised by TCW Investment Management Company, seeks investment results that correspond (before fees and expenses) to the performance of the JP Morgan Custom EM Short Term Investment Grade Bond Index. The JP Morgan Custom EM Short Term Investment Grade Bond Index comprises emerging markets bonds denominated in US dollars with remaining maturities between one and three years. Under normal conditions, the EGShares TCW EM Short Term Investment Grade Bond ETF will invest at least 80 per cent of its net assets in investment grade, US dollar denominated short term investment grade emerging market sovereign and corporate bonds.
The EGShares TCW EM Intermediate Term Investment Grade Bond ETF, sub-advised by TCW Investment Management Company, seeks investment results that correspond (before fees and expenses) to the performance of the JP Morgan Custom EM Intermediate Term Investment Grade Bond Index. The JP Morgan Custom EM Intermediate Term Investment Grade Bond Index comprises emerging markets bonds denominated in US dollars with remaining maturities between four and seven years. Under normal conditions, the EGShares TCW EM Intermediate Term Investment Grade Bond ETF will invest at least 80 per cent of its net assets in investment grade, US dollar denominated intermediate term investment grade emerging market sovereign and corporate bonds.
The EGShares TCW EM Long Term Investment Grade Bond ETF, sub-advised by TCW Investment Management Company, seeks investment results that correspond (before fees and expenses) to the performance of the JP Morgan Custom EM Long Term Investment Grade Bond Index. The JP Morgan Custom EM Long Term Investment Grade Bond Index comprises emerging markets bonds denominated in US dollars with remaining maturities between eight and twelve years. Under normal conditions, the EGShares TCW EM Long Term Investment Grade Bond ETF will invest at least 80 per cent of its net assets in investment grade, US dollar denominated long term investment grade emerging market sovereign and corporate bonds.
