LEMB

LEMB provides access to the local-currency emerging-market sovereign debt space. LEMB targets investment-grade, fixed-rate, bullet-maturity EM sovereign bonds denominated in local currencies, with remaining maturity of six months or greater. The index further imposes a 15% cap and 4.5% floor on country exposure in order to achieve greater diversification. Since LEMB holds debts denominated in local currencies without currency hedges, investors must also consider FX volatilities. This fund may be for those looking for broad and diversified exposure to EM sovereign debt denominated in local currencies. The securities included in the Underlying Index are rebalanced on the last weekday of the month. LEMB changed its underlying index from the Bloomberg Barclays Emerging Markets Broad Local Currency Bond Index to the J.P. Morgan GBI-EM Global Diversified 15% Cap 4.5% Floor Index on 6/1/2017. The change affects country membership in the index.