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UBS ETFs: Notice re Merger and Name Change

I. Merger:  The boards of directors of the Fund and of the Management Company hereby inform the shareholders of UBS ETF – MSCI Switzerland 20/35 100% hedged to GBP UCITS ETF and UBS ETF – MSCI Switzerland 20/35 UCITS ETF that it has been decided to merge the sub-fund. ….


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UBS ETF – MSCI Switzerland 20/35 100% hedged to GBP UCITS ETF*  (the “Merging Sub-Fund“),

in accordance with Article 1 (20) (a) and Chapter 8 of the law of 17 December 2010 on undertakings for collective investment, as amended (the “2010 Law“), by way of the transfer of their assets and liabilities, into the sub-fund

UBS ETF – MSCI Switzerland 20/35 UCITS ETF (the “Receiving Sub-Fund“)

with effect as of 9 July 2015 (the “Effective Date“).

———————————————

* listed with London Stock Exchange

1.      Background and rationale

The decision to undertake the merger outlined above (the “Merger“) has been taken in the interest of economic efficiency in the management of the Fund, as it will enable the Merging Sub-Fund and the Receiving Sub-Fund to be managed as a sole sub-fund of the Fund.

2.     Impact of the Merger

The Merger will not have any material impact on Shareholders of the Merging Sub-Fund and the Receiving Sub-Fund, including, without limitation, as regards costs, expected outcome, periodic reporting or performance. Neither the Merging Sub-Fund nor the Receiving Sub-Fund intend to undertake any rebalancing of their portfolio before the Merger takes effect.

The investment objectives and policies of the Merging Sub-Fund and of the Receiving Sub-Fund are identical. UBS Global Asset Management (UK) Ltd will continue to act as portfolio manager of the Receiving Sub-Fund.

On the Effective Date the assets and liabilities of the Merging Sub-Fund will be transferred into the Receiving Sub-Fund and transferring Shareholders of the Merging Sub-Fund will receive shares in the Receiving Sub-Fund as follows:

UBS ETF – MSCI Switzerland 20/35 100% hedged to GBP UCITS ETF*

UBS ETF – MSCI Switzerland 20/35 UCITS ETF

Share Class

ISIN

Management Fee

Ongoing Charges1

Currency

SRRI

Share Class

ISIN

Management Fee

Simulated Ongoing Charges2

Currency

SRRI

(GBP) A-acc

LU0977261162

0.30%

0.30%

GBP

5

(hedged to GBP) A-acc

LU1169830525

0.30%

0.30%

GBP

5

(GBP) A-dis

LU0977261246

0.30%

0.30%

GBP

5

(hedged to GBP) A-dis

LU1169830442

0.30%

0.30%

GBP

5

1               Ongoing charges figures are calculated as of 31 December 2014

2               Simulated ongoing charges figures are calculated as of 31 December 2014

The table above illustrates the ongoing charges applicable to the Merging Sub-Fund and the expected ongoing charges for the Receiving Sub-Fund. The ongoing charges are comprised of the management fees and operational expenses, such as legal, audit, custodian, registrar and other recurring expenses of the Merging Sub-Fund. The ongoing charges figure of the Receiving Sub-Fund is accurate as at the date of calculation and may increase or decrease at the time of, or following, the Merger.

The costs of the Merger, including legal, accounting, custody and other administrative expenses, will be borne by UBS AG or any of its affiliates.

———————————————

* listed with London Stock Exchange

Shareholders should be aware that the Merger may have tax consequences. Shareholders may suffer income tax, withholding tax, capital gains tax, wealth tax, stamp taxes or any other kind of tax on distributions or deemed distributions of the Fund, capital gains within the Fund whether realised or unrealised, income received or accrued or deemed received within the Fund, subject to the laws and practices of the country where the shares are purchased, sold, held or redeemed and subject to the country of tax residence or nationality of the Shareholder. Shareholders who are in any doubt as to their tax position should consult their own independent tax advisors as to the Luxembourg or other tax consequences of the Merger.

3.      Rights of Shareholders

Shareholders may contact the Management Company to obtain additional information on the intended Merger and on the documentation of the Receiving Sub-Fund.

Shareholders also have the right to obtain, on request, a copy of the auditor’s report on the Merger, which can be obtained free of charge from the registered office of the Management Company at 49, Avenue J.F. Kennedy, L-1855 Luxembourg, Grand Duchy of Luxembourg.

Shareholders who do not agree with the proposed Merger have the option of redeeming all or part of their shares free of charge until 1 July 2015, 05:00 p.m. CET.

4.      Procedural Aspects

As of the Effective Date, the Merging Sub-Fund shall cease to exist and all their shares in issue shall be cancelled.

Shareholders of the Merging Sub-Fund will receive shares in the Receiving Sub-Fund and, if applicable, a residual cash payment. The number of shares in the Receiving Sub-Fund and, if applicable, the amount of the residual cash payment, will be determined by multiplying the number of shares in the Merging Sub-Fund by the exchange ratio.

The exchange ratio will be calculated on 9 July 2015 by dividing the net asset value per share of the Merging Sub-Fund by the net asset value per share of the Receiving Sub-Fund, based on the closing prices as of 8 July 2015, subject to any accounting adjustments and corrections deemed necessary. Shareholders should note that the net asset value used for the purposes of the merger factor calculation of the Merging Sub-Fund may differ from the relevant last published net asset value price used for dealing.

Should the application of the exchange ratio result in an allocation of fractional shares in the Receiving Sub-Fund to a Shareholderof the Merging Sub-Fund, the value of such holding following the application of the exchange ratio will be rounded down to the nearest whole share and the value of the fractional entitlement will be distributed to the relevant Shareholder by way of a residual cash payment in the base currency of the relevant Merging Sub-Fund. Residual cash payments, where applicable, will be made on (or around) 10 July 2015. The time(s) at which Shareholders of the Merging Sub-Fund receive any such residual cash payments will depend on the timeframes and arrangements agreed between Shareholders and their custodian, broker and/or relevant central securities depositary for processing such payments.

If Shareholders wish to maintain their investment through the Receiving Sub-Fund, they do not need to take any further action. Any such Shareholders will receive shares in the relevant share class of the Receiving Sub-Fund as set out in the table in section 2 above of an equivalent value to the shares they hold in the Merging Sub-Fund. The Management Company will send or cause to be sent confirmation on behalf of the Fund shortly after the Effective Date detailing the Shareholders’ new holdings. There will be no initial sales charge applied to the new shares. Shareholders will automatically be registered in the shareholder register of the Receiving Sub-Fund.

Shareholders who do not agree with the proposed Merger will be able to redeem shares of the Merging Sub-Fund, respectively of the Receiving Sub-Fund, until 1 July 2015, 05:00 p.m. CET, free of charge. Any such redemption requests should be submitted to UBS Fund Management Luxembourg S.A., 49, Avenue J.F. Kennedy, L-1855, Luxembourg, Grand Duchy of Luxembourg. Any redemption applications in the Merging Sub-Fund received after 5:00 p.m. CET on 1 July 2015 will not be processed. Redemption applications in the Receiving Sub-Fund received after 5:00 p.m. CET on 1 July 2015 will be processed at the next possible redemption date in accordance with the terms of the Prospectus of the Fund. Shareholders of the Merging Sub-Fund not making use of their right to redeem shares until 1 July 2015, 5:00 pm, will receive shares in the Receiving Sub-Fund as set out above and will be able to redeem their shares in the Receiving Sub-Fund in accordance with the provisions of the Prospectus on the Effective Date or thereafter.

The issue of shares in the Merging Sub-Fund will be suspended with effect from 2 July 2015. Accordingly, subscription and conversion applications in the Merging Sub-Fund will be accepted up to 05:00 p.m. CET on 1 July 2015.

The Management Company shall carry out all formalities, including such announcements as prescribed by Luxembourg law, which are necessary in connection to the Merger and the transfer and assignment of the assets and liabilities of the Merging Sub-Fund.

5.      Documents of the Receiving Sub-Fund

Shareholders may obtain copies of the Prospectus and Key Investor Information Documents (“KIIDs“) of the Receiving Sub-Fund, a copy of the Articles of Incorporation of the Fund, and copies of the auditor’s report and statement of the custodian on the Merger, free of charge from the registered office of the Management Company at 49, J.F. Kennedy, L-1855 Luxembourg.

II. Denomination Change of Hedged Sub-Funds

The board of directors of the Fund wishes to inform the shareholders of the sub-funds listed in Annex 1 hereto (collectively the “Sub-Funds“, each a “Sub-Fund“), that the characters “100%” are being removed from the name of each of the Sub-Funds as indicated in Annex 1 hereto with effect as of 1 July 2015.Each of the Sub-Funds will continue to track the same index as currently tracked. The board of directors of the Fund also wishes to confirm that the change of name does not reflect any change of the investment objectives or investment policies of the Sub-Funds and that the Sub-Funds will continue to pursue their respective existing investment objectives and investment policies.

The updated prospectus and key investor information documents of the Fund can be obtained free of charge fromthe Management Company.

Luxembourg, 21 May 2015

The boards of directors of UBS ETF and UBS Fund Management (Luxembourg) S.A.

ANNEX 1

List of Sub-Funds with new denomination

Current name of Sub-Fund

New denomination of Sub-Fund

UBS ETF – MSCI EMU 100% hedged to CHF UCITS ETF

UBS ETF – MSCI EMU hedged to CHF UCITS ETF

UBS ETF – MSCI EMU 100% hedged to USD UCITS ETF

UBS ETF – MSCI EMU hedged to USD UCITS ETF

UBS ETF – MSCI EMU 100% hedged to GBP UCITS ETF*

UBS ETF – MSCI EMU hedged to GBP UCITS ETF

UBS ETF – MSCI United Kingdom 100% hedged to CHF UCITS ETF

UBS ETF – MSCI United Kingdom hedged to CHF UCITS ETF

UBS ETF – MSCI United Kingdom 100% hedged to EUR UCITS ETF

UBS ETF – MSCI United Kingdom hedged to EUR UCITS ETF

UBS ETF – MSCI United Kingdom 100% hedged to USD UCITS ETF

UBS ETF – MSCI United Kingdom hedged to USD UCITS ETF

UBS ETF – MSCI Japan 100% hedged to CHF UCITS ETF

UBS ETF – MSCI Japan hedged to CHF UCITS ETF

UBS ETF – MSCI Japan 100% hedged to EUR UCITS ETF

UBS ETF – MSCI Japan hedged to EUR UCITS ETF

UBS ETF – MSCI Japan 100% hedged to GBP UCITS ETF

UBS ETF – MSCI Japan hedged to GBP UCITS ETF

UBS ETF – MSCI Japan 100% hedged to USD UCITS ETF

UBS ETF – MSCI Japan hedged to USD UCITS ETF

UBS ETF – MSCI Switzerland 20/35 100% hedged to EUR UCITS ETF

UBS ETF – MSCI Switzerland 20/35 hedged to EUR UCITS ETF

UBS ETF – MSCI Switzerland 20/35 100% hedged to USD UCITS ETF

UBS ETF – MSCI Switzerland 20/35 hedged to USD UCITS ETF

* listed with London Stock Exchange

Source: ETFWorld.co.uk

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