CEMB

CEMB targets USD-denominated corporate debt issued by companies in emerging market countries, regardless of credit quality. The index holds securities with five or more years remaining to maturity initially, and two or more years remaining to maturity at each rebalance. The index uses a proprietary market-value-based weighting scheme to distribute weights more evenly across countries. While all the bonds in CEMB are denominated in USD, investors are still subject to some currency risk, as currency fluctuations will affect issuers' ability to meet payment obligations. CEMB changed its underlying index from the Morningstar Emerging Markets Corporate Bond Index to the J.P. Morgan CEMBI Broad Diversified Core Index on June 1, 2017. The change has limited impact on the composition of the portfolio, and overall economic exposure remains similar.