UBS AM has listed a new exchange-traded fund on the London Stock Exchange today, the UBS BBG MSCI Global Liquid Corp Sustainable UCITS ETF.
Sign up to our free newsletters
Article created by the editorial staff of ETFWorld.co.uk
André Mueller, Head of Client Coverage at UBS Asset Management
The fund is designed to track the Bloomberg MSCI Global Liquid Corporates Sustainable Bond Index.
The index measures the performance of investment-grade corporate debt issued in local currencies by companies in the US, Euro area, UK, and Canada. All securities in the index carry fixed-rate coupons. The index provider applies ESG ratings to all constituents and excludes at least 20% of securities with the lowest ratings compared to the standard index universe. As a result, the fund’s ESG profile is expected to be higher than a fund tracking a conventional index .
The fund is passively managed. It uses a stratified sampling strategy, meaning the portfolio manager selects a representative sample of index components through a portfolio optimisation technique. This approach allows the fund to maintain risk and return characteristics similar to the benchmark without purchasing every single security in the index .
At least 90% of the fund’s net assets will be invested in securities that are constituents of the index. The fund may also hold assets not in the index if the manager considers it appropriate given the investment objective or other factors. The fund will not engage in securities lending .
According to the prospectus, the fund promotes environmental and/or social characteristics but does not have a sustainable investment objective. It qualifies as an Article 8 product under the EU‘s Sustainable Finance Disclosure Regulation (SFDR) .
Currency-hedged share classes are available. These aim to reduce the impact of exchange rate fluctuations between the share class currency and the index currency using one-month forward contracts .
The fund can invest in bonds, transferable securities, money market instruments, units of collective investment schemes, deposits with credit institutions, and structured notes listed on regulated markets .
The listing expands UBS’s range of sustainable fixed income products available to investors on the London Stock Exchange. The fund provides broad diversification across countries and sectors within global investment-grade corporate debt
| Product Name | UBS BBG MSCI Global Liquid Corp Sustainable UCITS ETF |
| ISIN | LU3259261470 |
| SEDOL | BW1M763 |
| Currency | GBX |
| Management Fee | 0.16% |
| Benchmark | Bloomberg MSCI Global Liquid Corporates Sustainable Bond Index (Total Return) |
Source: ETFWorld
Subscribe to Our Newsletter
