Pictet Emerging Markets Debt ETF (EMFI)

Overview

The investment strategy is designed to enhance the value of assets through both income generation and capital appreciation. By primarily focusing on fixed-income securities that are issued or backed by governmental or quasi-governmental organizations, as well as corporations within emerging market jurisdictions, this investment approach aims to capitalize on the growth potential of these markets. The fund is structured to allocate at least 80% of its net assets—together with any borrowed funds specifically for investment purposes—into debt instruments that are denominated in U.S. dollars, alongside euro-denominated debt that is hedged in U.S. dollars. This framework is intended to mitigate currency risk while maintaining exposure to the growth prospects present in emerging markets.

Products and Services

• Debt Securities Investment:

  The main offering involves investing in a diverse range of debt securities, which are issued or guaranteed by government entities or corporations in emerging market countries. This investment is designed to provide a steady stream of income while also aiming for growth in capital value.

• Currency Hedging Services:

  To protect against fluctuations in currency exchange rates, the investment strategy includes euro-denominated debt that is hedged in U.S. dollars. This service helps to manage the risks associated with currency exposure while seeking to retain the benefits of investing in international markets.

• Risk Management:

  Advanced risk management techniques are employed to assess and mitigate potential risks linked with investments in emerging market debt. This includes analyzing economic conditions and geopolitical factors that could influence market performance.

• Research and Analysis:

  A dedicated team conducts extensive research and analysis on emerging market trends, sovereign credit ratings, and corporate performance. This information is invaluable for making informed investment decisions and optimizing portfolio performance.

• Portfolio Diversification:

  The fund aims to maintain a well-diversified portfolio by investing across various sectors and geographical regions within emerging markets. This strategy is designed to reduce specific investment risks and enhance overall returns.