AEMB Profile
The American Century Emerging Markets Bond ETF is designed to provide investors with exposure to debt securities issued by entities within emerging market countries. Under normal market conditions, the fund's portfolio managers allocate at least 80% of the fund's net assets, plus any borrowings for investment purposes, to debt securities tied to emerging markets. This includes sovereign debt, quasi-sovereign debt, and corporate debt from companies based in or connected to these regions. The funds strategy aims to capture the growth potential and higher yields often associated with emerging markets, while carefully managing the risks inherent in these investments.
The fund's investment portfolio is diversified across a broad spectrum of emerging market debt instruments, including government bonds issued by emerging market nations and debt securities issued by government-related entities, often referred to as quasi-sovereign debt. Additionally, the fund invests in corporate debt securities from companies operating within or heavily influenced by emerging markets. These investments are selected based on rigorous analysis, focusing on the creditworthiness of issuers and the economic conditions of the respective countries, with the goal of achieving attractive risk-adjusted returns.
In addition to direct investments in debt securities, the American Century Emerging Markets Bond ETF also utilizes derivatives to gain exposure to emerging markets debt. These derivatives, which reference corporate and sovereign debt securities, allow the fund to enhance its portfolio's flexibility and responsiveness to changing market conditions. By incorporating derivatives into its strategy, the fund can efficiently manage interest rate risk, currency risk, and other factors that could impact the performance of emerging markets debt.
The American Century Emerging Markets Bond ETF is well-suited for investors seeking diversified exposure to the dynamic and rapidly evolving markets of the developing world. By focusing on debt securities, the fund provides a fixed-income component that complements equity investments, offering potential income and capital appreciation. This ETF caters to those looking to tap into the economic growth of emerging markets while benefiting from the expertise of seasoned portfolio managers who navigate the complexities and opportunities of global debt markets.
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