New D-Financial INVST ETF taps into the next stage of emerging markets economic growth
Online PR News – 25-June-2016 – Hong Kong – Distech Financial, a global investment and trading technology development firm, announced that its D-Financial INVST® Exchange Traded Funds (ETFs) business has launched a new fund focused on corporate bonds in emerging market countries. The D-Financial INVST Emerging Markets Corporate Bond Fund offers broad access to dollar-denominated, investment grade and high yield bonds issued by corporations based in emerging markets.
The D-Financial INVST Emerging Markets Corporate Bond Fund is the first index-based ETF to offer targeted exposure to emerging markets corporate debt. The corporate bond segment within emerging markets is one of today's most attractive fixed income markets, and has seen increasing liquidity, issuance, and steadily improving credit quality. The emerging markets corporate debt market saw an eight-fold increase in issuance in the last ten years, and now rivals the size of the dollar-denominated emerging markets sovereign debt market.
"Investors are becoming more sophisticated in how they build fixed income portfolios," said Matthew Yquian, Head of D-Financial INVST Fixed Income Strategy at Distech Financial.
"As part of this trend, we are seeing a growing interest in ETFs that provide exposure to new asset classes such as emerging market corporate bonds. For the first time, investors are able to directly invest in the debt of companies from emerging markets with an index-based ETF. Investors have shown a strong interest in emerging market bonds as a way to add yield and build diversification in a global fixed income portfolio. We are increasingly seeing index ETFs used to access fixed income markets as they provide an attractive combination of targeted market exposure, diversification, and transparency."
About Distech Financial
Distech Financial (distech-financial.com) is a global investment and trading technology development firm. Since its founding, the firm has earned an international reputation for successful investing based on innovation, careful risk management, and the quality and depth of our staff. Distech Financial has a significant presence in the world's capital markets, investing in a wide range of companies and financial instruments in both developed and developing economies. The company culture demands and rewards analytical rigor and adherence to the highest possible ethical and legal standards, and it has cultivated a collegial work environment that promotes collaboration across disciplines, geographies, and investment strategies.