ETF UK
Typography

UBS AM are the first asset manager to offer an ETF on an all new index capturing performance of short term emerging-market bonds, issued by sovereigns as well as corporates......

Sign up for our weekly Newsletter and receive the latest ETF and ETC news. Click here to register for your free copy


UBS Asset Management  today announces the launch of its UBS ETF (LU) J.P. Morgan USD EM Diversified Bond 1-5 UCITS ETF (ISIN: LU1645385839). The new exchange-traded fund tracks the J.P. Morgan USD Emerging Markets Diversified 3% capped 1-5 Year Bond Index.

This ETF gives investors access to emerging market Sovereign bonds, quasi-Sovereigns and corporate bonds with remaining maturity of between one and five years in a simple and cost-efficient manner.  It is aimed at delivering a yield pick-up relative to developed market fixed income exposures. As well as exposure to a large range of bonds, the ETF allows for broad geographical diversification across more than 60 countries.

The bonds contained in the index are exclusively denominated in US dollars. It includes both fixed and floating rate securities with amounts outstanding in excess of USD500 million. Country weights are capped at 3% to reduce single country concentration.

The underlying index contains selected short-term, liquid and higher credit quality securities from the flagship indices of J.P. Morgan CEMBI Broad Diversified (corporate bonds) and JP Morgan EMBIG Diversified (Sovereign and quasi- Sovereign bonds). For Sovereigns, only bonds issued from EM countries with Gross National Income per capita below the index income ceiling (IIC) for 3 consecutive years will be eligible. An eligible corporate issuer must meet one of the following criteria: (1) headquartered in an EM country or (2) 100% of the issuer's assets are within EM economies, or (3) issuer must have 100% secured assets within EM economies.

Simone Rosti, Head of Passive & ETF Specialist Sales Europe at UBS Asset Management, says: “With this launch, UBS Asset Management is reinforcing its fixed income product suite by offering investors the opportunity to invest in this distinct emerging market asset class. This is the first ETF to blend together EM sovereign and corporate bonds targeting short duration. It also uses a 3% country capping which is shown to deliver a better risk return profile compared to uncapped EM fixed income indices."

UBS ETFs has gathered over USD10 billion in net new assets thus far in 2017, 20% of which has been into fixed income products. Following on from the success of the All Maturities Emerging Markets Sovereign Bond ETF launched last year, UBS ETFs are expecting strong demand for these products throughout 2018.

ISIN

Name

Trading CCY

TER

Dist.

Bloomberg

SEDOL

LU1645385839

UBS ETF –  J.P. Morgan USD EM Diversified Bond 1-5 UCITS ETF

GBX

0.42%

Yes

SEMC LN

BFCBMP4

Source: ETFWorld

logo

UK Institutional Investors and Financial Advisers and Wealth Managers
Important legal information

Before accessing this website you must read and accept the following terms and legal notices. If you are not able to access the website according to these terms or do not understand their meaning you must not proceed any further and should decline to accept them.

This website includes information about financial products that are not registered for sale in United Kingdom. This information is therefore made available solely to persons meeting the below criteria. These persons must not pass on any information to third parties with whom it would not be lawful to do so according to local legislation and regulation.

Persons accessing this website must be either an Investment Professional or a High Net Worth Company or Financial Advisers or Wealth Managers as outlined below:

An 'Investment Professional' is defined to include:

(i) an authorised person (this will include banks, stockbrokers, securities houses, investment managers, insurance companies and financial intermediaries);

(ii) a person who is exempt from the requirement for authorisation under the Financial Services and Markets Act 2000 (“FSMA”) (this will include appointed representatives of authorised persons, The Bank of England, central banks of other EEA States, The European Central Bank and the International Monetary Fund);

(iii) a person whose ordinary activities involve him in carrying on a regulated activity as defined in the FSMA (e.g., arranging deals in or advising on investments) to which the financial promotion relates or who it is reasonable to expect will carry on such activity for the purposes of a business carried on by him;

(iv) a government, local authority or international organisation; and

(v) a person acting in his capacity as a director, officer or employee of a person of a type described in paragraphs

(i) to (iv) above (i.e. he must not be acting on his own personal account) whose responsibilities, when acting in his capacity as a director, officer or employee of such person, involve him in engaging in regulated activities as defined in the FSMA.

High Net Worth Companies, include:

(i) a body corporate which has a called-up share capital or net assets of at least £500,000 (if it has more than 20 members or is a subsidiary of a parent undertaking with more than 20 members) or, in any other case, at least £5 million;

(ii) an unincorporated association or partnership which has net assets of at least £5 million;

(iii) the trustee of a trust with assets (before deducting any liabilities) of at least £10 million or which were at least £10 million within the previous year; or

(iv) a person acting in his capacity as a director, officer or employee of a person of a type described in paragraphs (i) to (iii) above (i.e. he must not be acting on his own personal account) whose responsibilities, when acting in his capacity as a director, officer or employee of such person, involve him in engaging in regulated activities as defined in the FSMA.

Financial Advisers and Wealth Managers, include:

Persons that are authorised by the relevant authorities in the UK to act as a professional investor or financial adviser

Persons who do not meet these criteria cannot proceed any further and must leave the website.