UBS Exchange Traded Funds (UBS ETFs): benchmark switch and name changes
The MSCI index family becomes the new benchmark for UBS ETFs investing in Japanese and US equities
UBS is changing the benchmarks for its exchange traded funds (UBS ETFs) investing in Japanese and US equities from the Dow Jones indices currently used to those of Morgan Stanley (MSCI family). As these indices also are integral part of the funds' names, these must likewise be changed accordingly. The changes to the benchmarks and the names will take effect on 18 April 2008. The first trading day with the new benchmark will be 25 April 2008.
Switching the benchmarks to the MSCI family will enable UBS to expand the investment universe for UBS ETFs investing in Japanese and US equities. The chosen MSCI indices currently offer broader coverage of their markets and are generally better diversified across sectors and individual stocks. The focus in terms of market capitalization is now on mid caps as well as large caps. The geographical focus of UBS ETFs remains unchanged.
Christian Gast, Head UBS Exchange Traded Funds: "We firmly believe that the decision to launch UBS ETFs based on MSCI indices further enhances the attractiveness of our product range. The MSCI indices allow us to offer our investors established, high-quality indices. Compared with the existing range of products, MSCI indices provide broader market coverage and thus additional diversification potential for the benefit of our clients."
Theodore Niggli, Managing Director and Head of MSCI Barra's Index Business, said: "We are delighted that UBS has decided to expand its ETF offering based on the MSCI International Equity Indices. Furthermore, the decision to change the benchmark for a number of their existing ETFs to an MSCI index reinforces the quality and broad appeal of the MSCI indices."
The benchmark and name changes affect the following UBS ETFs:
UBS-ETF DJ US (Large Cap), UBS ETF DJ Industrial Average and UBS-ETF DJ US Technology will in future have the MSCI USA as single benchmark and will be merged under the new name UBS-ETF MSCI USA. The flat-rate commission for UBS-ETF MSCI USA will be 0.3% p.a.
UBS-ETF DJ Japan Titans 100 in Tranches A and I will in future be managed as UBS-ETF MSCI Japan A and UBS-ETF MSCI Japan I. The flat-rate commission for UBS-ETF MSCI Japan I will rise to 0.3% p.a. (from 0.2% p.a. for UBS-ETF DJ Japan Titans 100 I). The I tranche is aimed primarily at institutional and wealthy private investors. The flat-rate commission for UBS-ETF DJ Japan Titans A will remain unchanged at 0.5% p.a.
The changes to the benchmarks and the names will take effect from 18 April 2008. The first trading day with the new benchmark will be 25 April 2008.
About UBS Exchange Traded Funds
UBS Exchange Traded Funds combine the best features of investment funds and stocks. Investors can purchase units in an investment fund that replicates the composition of an index. Units are listed on one or more stock exchanges and can be traded like stocks during normal trading hours. In addition to these advantages, ETFs also offer the complete investor protection that is standard for investment funds approved for public distribution.
UBS Exchange Traded Funds have recorded pleasing growth since they were launched in 2001 and have established a firm foothold in the ETF market. Assets under management in UBS ETFs have amounted to CHF 2.4 billion since their launch.
Additional information is available at www.ubs.com/etf.
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