Why Emerging Market Debt (EMD)?

Emerging market debt currently provides some of the highest yields in the fixed income universe: higher than similarly-rated corporate debt in developed economies. U.S. dollar-denominated EMD, for example, yields well above 6 % despite being around two-thirds investment grade-rated.1

 

Credit quality has improved over the last decade and is converging with that in developed economies. In June 2005, 40% of EMD was rated investment grade, whereas 60% was rated high yield. A decade on in June 2015, nearly two-thirds of EMD is now classified as investment grade, with only one third rated as high yield.1

 

Reasons to consider Emerging Market Debt

 

1BlackRock 26/05/16: As measured by the J.P. Morgan EMBI Global Core Index.
2Thomson Reuters Datastream, International Monetary Fund and BlackRock Investment Institute data 26/05/16.


Fund Name

iShares J.P. Morgan USD Emerging Markets Bond ETF (AUD Hedged)

Index Name: J.P. Morgan EMBI Global Core (AUD Hedged)

Management Fee

0.51%

Ticker

IHEB









What: The Fund aims to provide investors with the performance of the Index, which seeks to provide Australian dollar hedged exposure to U.S. dollar denominated emerging market bonds.

How: The Index measures the Australian dollar hedged performance of U.S. dollar denominated fixed and floating rate emerging market bonds issued by sovereign and quasi-sovereign entities.

Why: In anticipation of capital appreciation and the potential of a regular income.


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