Eurizon SLJ Capital, the UK-based subsidiary of Italian asset manager Eurizon, has introduced its first ETF on the London Stock Exchange: an actively managed fixed income fund delivering access to emerging market bonds while maintaining developed market risk characteristics.

Eurizon SLJ has debuted its first ETF on the London Stock Exchange.
The CO Eurizon SLJ EM Bond Strategic Income UCITS ETF is available on the LSE in US dollars (Dist: EBUD LN; Acc: EBUA LN) and as GBP-denominated, currency-hedged share classes (Dist: EBGD LN; Acc: EBGA LN).
This listing on the LSE follows the fund’s debut on Euronext Dublin last year, marking another step in Eurizon’s expansion into the European ETF market.
Adding EM debt to a portfolio offers investors the potential for higher yields and greater diversification compared to developed market bonds. EM debt often provides exposure to faster-growing economies which support credit fundamentals and opportunities for capital appreciation.
Additionally, the lower correlation of EM bonds with developed market assets helps reduce overall portfolio volatility. When actively managed to navigate the unique risks and opportunities in these markets, EM debt can significantly enhance a portfolio’s risk-return profile.
Investment Process
The ETF is managed by Eurizon SLJ Capital’s London-based team, led by Stephen Jen, CEO and co-CIO, and Fatih Yilmaz, co-CIO. The fund employs a quality-enhanced investment process that prioritizes rigorous research to capitalize on the unique attributes of emerging market debt while mitigating its inherent risks.
Unlike passive strategies, the ETF’s active management approach addresses idiosyncratic risks in EM fixed income, seeking to deliver returns that outperform traditional benchmarks.
A key feature of the fund is its flexibility; it does not follow a specific benchmark, allowing the managers to dynamically allocate across a broad range of EM bonds including US dollar-denominated and local currency issues.
By emphasizing higher-quality bonds, the fund strives to align its risk-return profile with the expectations of investors looking for EM exposure without substantially increasing portfolio volatility.
The ETF comes with an expense ratio of 0.50%.