CO EURIZON SLJ EM BOND SI ETF - GBPH ACC
| Issuer: Connect ETFs |
| Asset Class: Fixed Income |
| TER: 35bps |
| Trading Currency: GBP |
| Pays Income: False |
| Listing Date: 14 Jan 2025 |
| Ticker: EBGA |
| ISIN: IE000356FN00 |
This financial instrument offers targeted exposure to the sovereign and quasi-sovereign debt markets of emerging countries. The strategy is designed for investors seeking to capitalize on the potential for higher yields and growth associated with these developing economies, while also adhering to specific sustainability criteria. By focusing on debt issued by governments and government-related entities, the portfolio provides a direct play on the economic health and fiscal policies of various emerging nations. The investment process integrates Environmental, Social, and Governance (ESG) principles, actively selecting bonds that meet predefined standards for sustainable and responsible practices. This involves a rigorous screening process that excludes issuers involved in controversial activities or those with poor ESG ratings, aiming to mitigate long-term risks and align with the values of socially conscious investors.
The portfolio is constructed to be broadly diversified across a wide range of emerging market countries, which helps to spread risk and reduce the impact of adverse events in any single nation. This diversification is a key component of the strategy, as emerging markets can exhibit higher levels of political and economic volatility compared to developed markets. The underlying index it seeks to replicate uses a methodology that caps the weight of any single country, further enhancing diversification. As an accumulating share class, any income generated by the underlying bonds is automatically reinvested back into the portfolio. This process allows for the compounding of returns over time, making it a suitable option for investors with a long-term horizon who are focused on capital growth rather than generating a regular income stream. The built-in currency hedging aims to minimize the impact of fluctuations between the base currency of the assets and the trading currency of the share class.
