EMCB Offers Broad-based Exposure to Emerging Market Corporate Credit;
Growing Market with Attractive Yield Potential and Improving Credit Quality
ETF Employs Actively Managed Investment Process; Sub-advised by Western Asset Management Company
NEW YORK, March 8, 2012 (GLOBE NEWSWIRE) -- WisdomTree (Nasdaq:WETF), an exchange-traded fund ("ETF") sponsor and asset manager, today announced the launch of the WisdomTree Emerging Markets Corporate Bond Fund (EMCB). EMCB provides broad-based exposure to corporate bonds of emerging market issuers across Asia, Latin America, Eastern Europe, Africa and the Middle East. EMCB is listed on the NASDAQ Stock Market with an expense ratio of 0.60%.
"WisdomTree is pleased to offer the first Corporate Bond ETF that offers access to a rapidly growing asset class, the debt of a broad array of quality corporate issuers in the emerging markets. These bonds are supported by the same favorable growth rates, attractive demographics, and improving fundamentals which have driven strong relative returns in emerging market assets in general," said Bruce Lavine, President & COO, WisdomTree. "We are equally pleased to tap the expertise of Western Asset Management Company, one of the world's leading fixed income managers, as sub-advisor to the Fund," Mr. Lavine added. Western Asset is a subsidiary of Legg Mason (NYSE:LM).
Investment grade Emerging Market corporate bonds have historically offered a significant yield premium compared to similarly rated U.S. corporate securities. EMCB will seek to maintain at least 65% of its holdings in investment grade assets with intermediate-term duration between 2 and 10 years.
Commenting on the strategy, Matthew Duda, EMCB Portfolio Manager of Western Asset, said, "While the investment process begins with an assessment of the macro and country-specific risks, company-specific factors may drive emerging market corporate bond returns to a larger extent than country-level issues as sovereign risk trends lower in this asset class over time. We therefore combine top-down macroeconomic analysis with bottoms-up fundamental analysis of the industries and corporations essential to the ongoing industrialization and development of the emerging world."
EMCB is the industry's first broad-based, emerging market corporate bond ETF. The actively managed ETF is also the first product to be launched in connection with WisdomTree's sub-advisory relationship with Western Asset Management.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Funds before investing. To obtain a prospectus containing this and other important information, call 866-909-9473 or visit wisdomtree.com. Read the prospectus carefully before investing.
There are risks associated with investing, including possible loss of principal. Foreign investing involves special risks, such as risk of loss from currency fluctuation or political or economic uncertainty. Investments in emerging, offshore or frontier markets are generally less liquid and less efficient than investments in developed markets and are subject to additional risks, such as risks of adverse governmental regulation and intervention or political developments. Derivative investments can be volatile and these investments may be less liquid than other securities, and more sensitive to the effects of varied economic conditions.
Fixed income investments are subject to interest rate risk; their value will normally decline as interest rates rise. In addition when interest rates fall income may decline. Fixed income investments are also subject to credit risk, the risk that the issuer of a bond will fail to pay interest and principal in a timely manner, or that negative perceptions of the issuers ability to make such payments will cause the price of that bond to decline. Unlike typical exchange-traded funds, there is no index that the Fund attempts to track or replicate. Thus, the ability of the Fund to achieve its objective will depend on the effectiveness of the portfolio manager. Please read the Fund's prospectus for specific details regarding the Fund's risk profile.
WisdomTree Funds are distributed by ALPS Distributors, Inc.
Bruce Lavine is a registered representative of ALPS Distributors, Inc.
ALPS Distributors, Inc. is not affiliated with Western Asset Management
WIS003911 (3/2013)
About WisdomTree
WisdomTree® is a New York-based exchange-traded fund ("ETF") sponsor and asset manager. WisdomTree currently offers 47 ETFs across Equities, Currency Income, Fixed Income and Alternatives asset classes. WisdomTree also licenses its indexes to third parties for proprietary products and promotes the use of WisdomTree ETFs in 401(k) plans. WisdomTree currently has approximately $15.2 billion in ETF assets under management. For more information, please visit www.wisdomtree.com.
WisdomTree is the marketing name for WisdomTree Investments, Inc. and its wholly owned subsidiaries WisdomTree Asset Management, Inc. and WisdomTree Retirement Services, Inc. WisdomTree Asset Management, Inc. is a registered investment advisor and is the investment advisor to the WisdomTree Trust and the WisdomTree ETFs. The WisdomTree Trust is a registered open-end investment company. Each WisdomTree ETF is a series of the WisdomTree Trust. WisdomTree Retirement Services, Inc. supports the use of the WisdomTree ETFs in retirement plans by financial professionals.
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