Income-Oriented Strategy Combines Flexible Global Mandate with Active Credit Analysis
Sub-Advised by Leading Corporate Bond Manager Western Asset Management Company
NEW YORK, Jan. 31, 2013 (GLOBE NEWSWIRE) -- WisdomTree (Nasdaq:WETF), an exchange-traded fund ("ETF") sponsor and asset manager, today announced the launch of the WisdomTree Global Corporate Bond Fund (GLCB). GLCB is an actively managed ETF which will invest in corporate fixed income securities from around the world, and follows the WisdomTree Emerging Markets Corporate Bond Fund (EMCB) as the Company's second credit fund to be sub-advised by Western Asset Management Company (Western Asset).
Luciano Siracusano, WisdomTree Chief Investment Strategist, said, "We believe fixed income investors should not limit themselves to a domestic universe of corporate debt securities when an expanding $11.2 trillion global credit market presents robust opportunities in our increasingly global economy.1"
Mr. Siracusano added, "We believe a broad global approach incorporating active credit analysis presents an opportunity to manage risk, liquidity and find opportunities for relative value over changing credit and interest rate cycles. In contrast to market capitalization-based fixed income index funds, GLCB is an actively managed ETF designed with the flexibility to invest – and rotate – across fixed income sectors and issuers around the world."
GLCB will seek to maintain at least 55% of its holdings in investment grade assets, with the ability to also invest in U.S. and International High Yield as well as Emerging Market Corporate Debt. The Fund intends to maintain an intermediate-term duration between 2 and 10 years.
Commenting on the strategy, Ryan Brist, GLCB Portfolio Manager of Western Asset, said, "We believe the strong balance sheets of multinational corporations, continued demand for new corporate issuance and the persistence of low interest rates around the world present attractive opportunities in global credit markets. Western Asset manages more than $115 billion in this asset class2 and we are excited to bring our expertise to a global corporate strategy in the ETF structure."
GLCB is listed on the NASDAQ Stock Market with a net expense ratio of 0.45%, and intends to hedge non-US currency exposure back to U.S. dollars.
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 issuer's 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. Due to the investment strategy of this Fund it may make higher capital gain distributions than other ETFs. Please read the Fund's prospectus for specific details regarding the Fund's risk profile.
|1 Global Credit Universe Represented by the Barclays Global Credit Index. Source: Barclays Capital December 31, 2012.|
|2 As of September 30, 2012.|
WisdomTree Funds are distributed by ALPS Distributors, Inc.
Luciano Siracusano is a registered representative of ALPS Distributors, Inc.
ALPS Distributions, Inc. is not affiliated with Western Asset Management Company.
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 $20.7 billion in ETF assets under management. For more information, please visit www.wisdomtree.com or follow us on Twitter @WisdomTreeETFs.
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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Source:WisdomTree Investments, Inc.