Global asset manager VanEck has lowered the total expense ratio (TER) on VanEck Vectors JP Morgan EM Local Currency Bond UCITS ETF.
Effective June 14, 2018, the TER for EMLC will be reduced from 0.42 per cent to 0.30 per cent, making it to date, the EM local currency bond UCITS ETF with the lowest cost.
The ETF provides access to emerging markets local currency sovereign bonds. It seeks to track the JP Morgan GBI-EMG Core Index (GBIEMCOR), which is comprised of bonds issued by emerging markets governments and denominated in the local currency of the issuer. VanEck manages globally USD4.6 billion AUM of emerging markets local currency debt strategies and has the largest and most liquid US listed ETF offering access to this strategy.
VanEck has over 20 years of experience managing emerging markets debt strategies and offers a broad suite of both actively managed and passive solutions that provide access to the asset class.
Fran Rodilosso, Head of Fixed Income ETF Portfolio Management, says: “Emerging markets local currency debt offers multiple potential benefits within a portfolio. It provides investors the opportunity to diversify their interest rate exposure, while benefitting from attractive yields and potential currency appreciation. This fee reduction will allow investors to benefit from the potential opportunities the asset class provides, at a lower cost.”