NEW YORK & LOS ANGELES--(BUSINESS WIRE)--Emerging Global Advisors (EGA), the asset manager to the EGShares exchange-traded fund (ETF) offering, and The TCW Group (TCW), a global asset management firm, today announced their partnership to launch a suite of Emerging Market (EM) fixed income ETFs. The EGShares TCW EM Short Term Investment Grade Bond ETF (Ticker: SEMF), the EGShares TCW EM Intermediate Term Investment Grade Bond ETF (Ticker: IEMF) and the EGShares TCW EM Long Term Investment Grade Bond ETF (Ticker: 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 J.P. Morgan.
The partnership brings together EGA, an industry leader in emerging market ETFs through its EGShares funds, and TCW, a premier 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,” said 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,” said 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.”
EGShares TCW EM Short Term Investment Grade Bond ETF (Ticker: SEMF)
The EGShares TCW EM Short Term Investment Grade Bond ETF, subadvised by TCW Investment Management Company, seeks investment results that correspond (before fees and expenses) to the performance of the J.P. Morgan Custom EM Short Term Investment Grade Bond Index. The J.P. Morgan Custom EM Short Term Investment Grade Bond Index comprises emerging markets bonds denominated in U.S. 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% of its net assets in investment grade, U.S. dollar denominated short term investment grade emerging market sovereign and corporate bonds.
EGShares TCW EM Intermediate Term Investment Grade Bond ETF (Ticker: IEMF)
The EGShares TCW EM Intermediate Term Investment Grade Bond ETF, subadvised by TCW Investment Management Company, seeks investment results that correspond (before fees and expenses) to the performance of the J.P. Morgan Custom EM Intermediate Term Investment Grade Bond Index. The J.P. Morgan Custom EM Intermediate Term Investment Grade Bond Index comprises emerging markets bonds denominated in U.S. 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% of its net assets in investment grade, U.S. dollar denominated intermediate term investment grade emerging market sovereign and corporate bonds.
EGShares TCW EM Long Term Investment Grade Bond ETF (Ticker: LEMF)
The EGShares TCW EM Long Term Investment Grade Bond ETF, subadvised by TCW Investment Management Company, seeks investment results that correspond (before fees and expenses) to the performance of the J.P. Morgan Custom EM Long Term Investment Grade Bond Index. The J.P. Morgan Custom EM Long Term Investment Grade Bond Index comprises emerging markets bonds denominated in U.S. 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% of its net assets in investment grade, U.S. dollar denominated long term investment grade emerging market sovereign and corporate bonds.
About Emerging Global Advisors
Emerging Global Advisors (EGA), the asset manager to the EGShares ETF offering, provides investors and institutions with the tools they need to implement similar investment strategies in emerging markets as they do in developed markets.
For more information, please visit www.egshares.com.
About the TCW Group
Founded in 1971, The TCW Group, Inc. develops and manages a broad range of innovative, value-added investment products that strive to enhance and protect clients’ wealth, with over $130 billion in assets under management. TCW clients include many of the largest corporate and public pension plans, financial institutions, endowments and foundations in the U.S., as well as a substantial number of foreign investors and high net worth individuals.
For more information, please visit www.tcw.com.
Disclosures
You should consider the investment objectives, risks, charges and expenses of a Fund carefully before investing. A Fund’s Prospectus and Summary Prospectus contain this and other information about the Fund. To receive a Prospectus, please call 888-800-4347 or you may download the Prospectus from the Fund's website at EmergingGlobalAdvisors.com. Please read it carefully.
Shares are not individually redeemable and owners of the shares may acquire those shares from the Funds and tender those shares for redemption to the Fund in Creation Units only, typically consisting of aggregations of 100,000 shares.
The Funds can invest up to 20% of their assets in securities that are rated below investment grade. Non-investment grade securities may be subject to greater fluctuations in value and risk of loss of income and principal than higher-rated securities. Non-investment grade securities may be subject to greater fluctuations in value and risk of loss of income and principal than higher-rated securities. Fixed income investments entail interest rate risk, the risk of issuer default, issuer credit risk, and price volatility risk. Funds investing in bonds can lose their value as interest rates rise and an investor can lose principal. Fund share prices and returns will fluctuate with market conditions, currencies, and the economic and political climates where the investments are made. Emerging markets securities carry special risks, such as less developed or less efficient trading markets, a lack of company information, and differing auditing and legal standards. The securities markets of emerging markets countries can be extremely volatile. You cannot invest directly in an index.
Duration: A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. Duration is expressed as a number of years. Rising interest rates mean falling bond prices, while declining interest rates mean rising bond prices.
Investment Grade: A bond that is rated Baa3/BBB- or higher by Moody's or Standard & Poors.
Yield to Maturity: The internal rate of return earned on a security assuming that it will be held until maturity and that all coupon and principal payments will be made on schedule.
Fund share prices and returns will fluctuate with market conditions, currencies, and the economic and political climates where investments are made. Emerging markets securities carry special risks, such as less developed or less efficient trading markets, a lack of company information, and differing auditing and legal standards. The securities markets of emerging markets countries can be extremely volatile. The Fund’s investments denominated in foreign currencies will decline in value if the foreign currency declines in value relative to the U.S. dollar.
The information pertaining to J.P. Morgan or its affiliates used herein and the J.P. Morgan Custom EM Short Term Investment Grade Bond Index, the J.P. Morgan Custom EM Intermediate Term Investment Grade Bond Index, and the J.P. Morgan Custom EM Long Term Investment Grade Bond Index (the "Indices") have been obtained from sources believed to be reliable, but J.P. Morgan does not warrant its completeness or accuracy. Such information and the Indices are used with permission. The information and Indices may not be copied, used, or distributed without J.P. Morgan's prior written approval. Copyright 2014, JPMorgan Chase & Co. All rights reserved. “J.P. Morgan" and the Indices are trademarks of JPMorgan Chase & Co. and have been licensed for use for certain purposes by Emerging Global Advisors. Emerging Global Advisors' EGShares TCW EM Short Term Investment Grade Bond ETF, EGShares TCW EM Intermediate Term Investment Grade Bond ETF, and EGShares TCW EM Long Term Investment Grade Bond ETF (the "Funds") which are based on the Indices are not sponsored, endorsed, sold or promoted by J.P. Morgan and J.P. Morgan makes no representation regarding the advisability of trading in such Funds.
Not FDIC insured | May lose value | No bank guarantee
EGShares Funds are distributed by ALPS Distributors, Inc.
ALPS Distributors, Inc. is not affiliated with EGA, TCW or J.P. Morgan Chase & Co.
Marten Hoekstra is a registered representative of ALPS Distributors, Inc.
EGS001638 - Expires 1/8/2015
