WisdomTree Emerging Markets Debt Fund (ELD)

Overview

The fund focuses on generating revenue by investing primarily in bonds and other debt instruments that are denominated in the currencies of emerging market countries. By allocating at least 80% of its net assets, in addition to any funds borrowed for investment purposes, towards Local Debt, the fund aims to benefit from the economic developments within these nations. The management strives to keep the aggregate portfolio duration within the range of two to ten years depending on prevailing market conditions, signaling a flexible approach to interest rate sensitivity and market volatility. Being a non-diversified fund, it may exhibit higher risk and volatility due to its concentrated investment strategy but also presents potential for significant returns.

Products and Services

The fund offers investment opportunities in a variety of financial instruments within emerging markets:

• Local Currency Bonds:

  These are bonds issued by governments or corporations in emerging markets and are denominated in the local currencies of those markets. This allows investors to gain exposure to foreign currencies and the economic prospects of these regions.

• Debt Instruments:

  Apart from bonds, the fund may invest in a range of other debt securities, including but not limited to, debentures, notes, and commercial papers that are aimed at generating regular income through interest earnings. These instruments provide a diversified approach to debt investment in emerging markets.

• Duration Management:

  The fund's strategy involves maintaining an aggregate portfolio duration of between two and ten years, allowing it to navigate the changing interest rates and economic conditions more dynamically. This management technique aims to balance the risk and return more effectively over the investment horizon.