Eurizon SLJ EM Bond SI UCITS ETF USD Acc

Issuer: Connect ETFs

Asset Class: Fixed Income

TER: 35bps

Trading Currency: USD

Pays Income: False

Listing Date: 14 Jan 2025

Ticker: EBUA

ISIN: IE000AM06QU6

This financial instrument is an actively managed fund designed to provide exposure to the emerging market debt sector. It aims to outperform the J.P. Morgan EMBI Global Diversified Index by investing primarily in a portfolio of US dollar-denominated sovereign and quasi-sovereign bonds issued by entities in emerging market countries. The investment strategy is distinguished by its systematic and data-driven approach, which leverages proprietary models to identify attractive investment opportunities and manage risk effectively within the diverse and dynamic landscape of emerging economies.

The core of the investment process combines a top-down macroeconomic perspective with a rigorous bottom-up country analysis. This dual approach allows the management team to assess global economic trends while also evaluating the specific creditworthiness, political stability, and fiscal health of individual nations. By systematically analyzing a wide range of data points, the strategy seeks to construct a diversified portfolio that is well-positioned to capture the potential for higher yields and capital appreciation offered by emerging market bonds, while mitigating the inherent risks such as sovereign credit risk and market volatility.

As an accumulating vehicle, all interest income generated by the underlying bonds is automatically reinvested back into the portfolio, fostering the potential for compound growth over the long term. This structure is particularly suitable for investors with a longer investment horizon who are seeking to build capital rather than receive a regular income stream. The fund offers a sophisticated way to access a specialized segment of the global fixed-income market, appealing to those looking to diversify their portfolio and enhance potential returns.