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UBS ETF (LU) MSCI World UCITS ETF

Net asset value 225.2121 USD

Last update

09.07.2020

ISIN: LU0340285161

Asset Class:  Equities

Securities lending

Securities lending is the temporary transfer of securities from the lender (the fund management company) in the name of and for the account of the investment fund to a third party (the borrower). In exchange, the borrower provides the lender with collateral before the delivery of securities, and pays a fee over the period of the loan. All loans within our lending programme are open and rolled daily such that they can be extended or terminated on demand. The fund can thus generate additional income. UBS ETFs engage in securities lending for selected, physically replicated UBS ETFs with the aim of reducing the investor’s net costs. Securities lending with UBS ETFs is always over-collateralised with at least 105% margin across all asset classes. In addition, on-loan balances are capped at 50% of each sub-fund’s AUM. Collateral is held in a custody account that is kept separate from the intermediary’s balance sheet. Daily revaluation at market prices ensures that the value of the collateral provided is always adjusted correctly. To further minimise risks, borrowers are carefully selected. The following types of securities are accepted as collateral (excl. securities of the borrowing counterparty):

  1. Securities issued and/or guaranteed by the governments of the following countries:
    • The following G10 countries: Belgium, the Netherlands, Canada, Sweden, France, Switzerland (SNB Bills), Germany, Japan, UK and USA (including US debt securities and rights issued or guaranteed by the US administration or one of its agencies or instrumentalities.)
    • Only the following OECD countries: Australia, Austria, Denmark, Finland, Luxembourg, New Zealand and Norway.
  2. Equities in the form of world stock indices.

Collateralisation of the securities lending is continually reviewed and adjusted as necessary. It can therefore be subject to change. For more details about Securities Lending Borrowers please follow the link.

Collateral 12 month lending summary (as of last month end)

Min % balance on loan:

4.04

Max % balance on loan:1)

12.69

Average % balance on loan:2)

7.50

Net return to fund in bps:3)

2.21

Collateral %:

108.48

Source: State Street

1) The maximum loan value is calculated from the maximum value of the lent securities on a single day within the past 12 months.

2) The average loan value is calculated by dividing the average percentage value of the securities lent on a daily basis by the fund's daily assets under management (AuM) over the past 12 months.

3) The fund's annualised net return generated by securities lending is calculated by dividing the fund's securities lending income over a period of 12 months by the fund's average net asset value (NAV) for the same period.

Of the revenue received by the borrower on the market, 60% is credited to the relevant sub-fund while UBS AG receives 20% to cover the due diligence and the Securities Lending Agent 20% to cover operational costs resulting from the transactions carried out in relation to the securities lending.

Download all data as XLS File

Top 10 collateral holdings

#

Security

ISIN

Country

Asset Type

Weight %

1

BHP GROUP PLC ORD USD0.50

GB00BH0P3Z91

Australia

Equities

0.03

2

TOYOTA MOTOR CORP NPV

JP3633400001

Japan

Equities

0.02

3

NIPPON TEL&TEL CP NPV

JP3735400008

Japan

Equities

0.02

4

Shs:Fast Retailing Co Ltd:

JP3802300008

Japan

Equities

0.02

5

RECRUIT HLDGS CO L NPV

JP3970300004

Japan

Equities

0.02

6

LINDE PLC COM EUR0.001

IE00BZ12WP82

United Kingdom

Equities

0.02

7

SUN LIFE FINL INC COM

CA8667961053

Canada

Equities

0.02

8

UNITED KINGDOM OF GREAT BRITAIN & N IRL 3.75000% 11-22.07.52

GB00B6RNH572

United Kingdom

Bonds

0.01

9

Shs:Kao Corp:

JP3205800000

Japan

Equities

0.01

10

FANUC CORP NPV

JP3802400006

Japan

Equities

0.01

The table above lists the securities that are used as collateral for the securities lent with UBS ETFs. The information presented was obtained from internal and external sources deemed reliable. However, we cannot provide any guarantee of their accuracy and completeness. It should be noted that securities lending is subject to a certain risk where the borrower does not return the borrowed securities according to his/her obligation, and where the value of the collateral provided does not cover the costs of repurchase of the securities. In this case, the borrower shall be liable for any claims arising from the securities lending and not covered by the sale of the securities concerned. Source: State Street, 09.07.2020

Collateral types and margins

Collateral Types

Loan Types

International Equities

Government Bonds

International Equities

105.00 %

105.00 %

US Equities

105.00 %

105.00 %

As per CISA regulation, the value of the collateral must at all times be equal to at least 100% of the market value of the securities lent; as such the requirements applicable to the UBS funds significantly exceed this requirement at all times. Source: State Street, 09.07.2020