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For marketing and information purposes by UBS. CNMV registration number (Comisión Nacional del Mercado de Valores): .  Representative in Spain for UBS funds established under foreign law: UBS Bank, S.A., MARÍA DE MOLINA, 4, E-28006 MADRID. Prospectuses, simplified prospectuses or Key investor information, the articles of association or the management regulations as well as annual and semi-annual reports of UBS funds are available free of charge from UBS, MARÍA DE MOLINA Nº 4, 28006 MADRID / AVENIDA DIAGONAL Nº 640, 2º A, E-08017 BARCELONA / FERNÁNDEZ Y GONZÁLEZ Nº 2, PLANTA PRINCIPAL, E-41001 SEVILLA / C/ROGER DE LAURIA Nº 7, 1ª PLANTA, 46002 VALENCIA / COSO Nº 33, 5º A, 50003 ZARAGOZA, CANTÓN PEQUEÑO 15, 4º, 15003 A CORUÑA. Before investing in a product please read the latest prospectus carefully and thoroughly. Units of UBS funds mentioned herein may not be eligible for sale in all jurisdictions or to certain categories of investors and may not be offered, sold or delivered in the United States. The information mentioned herein is not intended to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. Past performance is not a reliable indicator of future results. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units. Commissions and costs have a negative impact on performance. If the currency of a financial product or financial service is different from your reference currency, the return can increase or decrease as a result of currency fluctuations. This information pays no regard to the specific or future investment objectives, financial or tax situation or particular needs of any specific recipient. The details and opinions contained in this document are provided by UBS without any guarantee or warranty and are for the recipient's personal use and information purposes only. This document may not be reproduced, redistributed or republished for any purpose without the written permission of UBS AG. Source for all data and charts (if not indicated otherwise): UBS Asset Management

Currency hedged Reduce currency risks

When it comes to your equity investments, concentrate solely on the markets themselves: With the currency-hedged UBS ETFs based on equity indices, you hedge your portfolio against exchange rate fluctuations – cost-effectively, efficiently and transparently.

What is currency hedging and what are the benefits of UBS Currency Hedge?

Currency hedging is the forward sale or purchase of a foreign currency, thus reducing the exchange risk exposure connected with assets or liabilities denominated in a foreign currency. Fluctuating exchange rates can impact returns on foreign investments which is why UBS offer currency hedging to investors wanting to reduce exchange rate risk and optimize return opportunities.

A wide selection of benefits are enjoyed by the UBS ETF investor. Currency hedging with UBS allows cost efficient access to currency hedged indices. With the potential to hedge our portfolios in four different currencies, UBS Asset Management offers investors the widest range of currency-hedged ETFs in Europe*.

Exchange rate fluctuations have many causes, whether central banks' monetary policy, external trade imbalances or unexpected political changes. In difficult phases in particular, these fluctuations can be so severe that they can drive profits or losses on stock markets. With UBS ETFs, however, investors can concentrate completely on their equity strategies – UBS Asset Management offers you a wide range of physically replicated ETFs based on equity indices with currency hedging. This transparent currency hedging strategy helps you to reduce exchange rate risk and optimize your return opportunities.

Performance of MSCI Japan indices and JPY/CHF exchange rate

This example illustrates just how significantly currency fluctuations can impact returns: Calculated in Japanese yen (JPY), the MSCI Japan Index generated a return of 11.28% p.a. between March 2009 and March 2014. Due to exchange rate losses against the franc (CHF), however, Swiss investors only saw a return of 4.90% p.a. With currency hedging in CHF, the annualized return was 9.28%, almost twice as high.

With UBS ETFs, investors can hedge their portfolio in five currencies: Swiss francs (CHF), euros (EUR), US dollars (USD), pound sterling (GBP) and Singapore dollars (SGD). The currency-hedged ETFs offer access to the equity markets in the Eurozone, the US, Switzerland, Japan, Australia and Canada. This allows UBS Asset Management to offer investors the widest range of currency-hedged ETFs in Europe.*

CHF

EUR

USD

GBP

SGD

MSCI Australia

MSCI Australia

MSCI Australia

MSCI Australia

MSCI Canada

MSCI Canada

MSCI Canada

MSCI Canada

MSCI Canada

MSCI Japan

MSCI Japan

MSCI Japan

MSCI Japan

MSCI Japan

MSCI United Kingdom

MSCI United Kingdom

MSCI United Kingdom

MSCI United Kingdom

MSCI EMU

MSCI EMU

MSCI EMU

MSCI USA

MSCI EMU

MSCI USA

MSCI Switzerland 20/35

MSCI USA

MSCI Switzerland 20/35

MSCI Switzerland 20/35

MSCI Switzerland 20/35

 

UBS ETFs hedge the foreign currencies of the replicated indices by selling foreign currency forwards at the one-month forward rate. The sum of the sold forwards as at the last trading day of the month corresponds to the market capitalization weighting of the equities contained in the index. These securities are valued in the respective currency two trading days before the first calendar day of the following month. The amount hedged remains constant over the entire month.

The overall return of a currency-hedged UBS ETF therefore comprises two components:

  1. The return of the non-currency-hedged index in the selected reference currency.
  2. The profit or loss arising from the forward contract  in the selected reference currency
  • Reduced foreign currency risk.
  • Cost efficient access to currency hedged indices.
  • Transparent currency-hedging methodology with one month forward FX contracts.
  • Physical replication of the index market exposures.
  • Distributing and accumulating share classes available.
  • UCITs compliant fund structure.
  • Widest range of currency-hedged ETFs in Europe.*

UBS ETFs invest in various asset classes

For example, equities, bonds, commodities, precious metals, hedge funds and real estate, and may therefore be subject to high fluctuations in value. An investment in these funds is therefore only suitable for investors with an investment horizon of at least five years and a corresponding risk tolerance/capacity.

Market fluctuations

Every fund has specific risks that may increase sharply in unusual market conditions. The net asset value of the fund therefore depends directly on the performance of the underlying index.

Losses

Losses are not offset. For more information about the risks, please see the prospectus and Key Investor Information Documents (KIIDs).

Currency risks

If the currency of a financial product or financial service is not the same as your reference currency then the performance may increase or decrease due to currency fluctuations.

Risks of restricted or increased liquidity in the fund (liquidity risk)

There are risks that may negatively impact the liquidity of the fund. This may result in the fund temporarily or permanently being unable to meet its payment obligations or it temporarily or permanently being unable to fulfill redemption requests from investors. It may occur that the investors would not be able to hold the instrument for the planned holding period and the invested capital or parts thereof may be unavailable indefinitely. If liquidity risks are realized, it may also occur that the net asset value of the fund, and therefore also the unit value, would fall, for example if the company is forced, where legally permissible, to sell assets for the fund at below the market value.

Counterparty risk including credit/receivables risk

There are risks that may arise for the fund as part of a contractual relationship with another party (so-called counterparty). In this respect there is a risk that the contractual party may no longer be able to fulfill its obligations under the contract. These risks may negatively impact the performance of the fund and are therefore detrimental to the unit value and the capital invested by the investor. If the investor sells units in the fund at a time when a counterparty or central clearing counterparty has defaulted and therefore the value of the fund has been negatively impacted, it is possible that the investor may not receive all or any of the money he/she has invested in the fund. As such, the investor could lose some or even all of the capital invested in the fund.

Operational and other risks for the fund

Operational risks refer to risks that may, for example, arise as a result of insufficient internal processes as well as human or system errors at the company or external third parties. In particular, this includes risks resulting from criminal acts, misuse or natural disasters, legal or political risks, changes to tax conditions or custody risks. These risks may negatively impact the performance of the fund and are therefore detrimental to the unit value and the capital invested by the investor. If an investor sells units in the fund at a time when the prices of the assets contained in the fund are lower than when they were acquired, he/she may not receive all or any of the money he/she has invested in the fund. As such, the investor could lose some or even all of the capital invested in the fund.

Specific risks

Every fund has specific risks that may increase sharply in unusual market conditions.

These risks are not exhaustive. Investments in a product should be made only after careful study of the current prospectus and the current Key Investor Information Document (KIID). The distribution of this information is permitted only under the conditions provided by applicable law.

Currency hedged ETFs in focus

Fundname ISIN Replication Fee Last NAV
Currency
Fact sheet

UBS ETF (LU) MSCI Europe UCITS ETF (hedged to CHF) A-accLU1589327680

Physical

0.30%

12.1986 CHF

Fund description

The fund generally invests in stocks contained in the MSCI Europe Index. The relative weightings of the companies correspond to their weightings in the index.The investment objective is to replicate the price and return performance of the MSCI Europe hedged to CHF Index net of fees. The stock exchange price may differ from the net asset value.

UBS ETF (LU) MSCI Europe UCITS ETF (hedged to EUR) A-accLU1600334798

Physical

0.30%

10.8639 EUR

Fund description

The fund generally invests in stocks contained in the MSCI Europe Index. The relative weightings of the companies correspond to their weightings in the index.The investment objective is to replicate the price and return performance of the MSCI Europe hedged to EUR Index net of fees. The stock exchange price may differ from the net asset value.

UBS ETF (IE) MSCI ACWI ESG Universal UCITS ETF (hedged to GBP) A-accIE00BDQZN550

Physical

0.48%

12.1918 GBP

Fund description

The fund generally invests in the MSCI ACWI ESG Universal 5% Issuer Capped with Developed Markets 100% hedged to GBP Index. The relative weightings of the companies correspond to their weightings in the index.The investment objective is to replicate the price and return performance of the MSCI ACWI ESG Universal 5% Issuer Capped with Developed Markets 100% hedged to GBP Index net of fees. The stock exchange price may differ from the net asset value.

UBS ETF (LU) Factor MSCI EMU Low Volatility UCITS ETF (hedged to GBP) A-disLU1215455350

Physical

0.38%

11.309 GBP

Fund description

The fund generally invests in European large and mid cap stocks which are contained in the MSCI EMU Select Dynamic 50% Risk Weighted 100% hedged to GBP Total Return Net index. The relative weightings of the companies correspond to their weightings in the index.The investment objective is to replicate the price and return performance of the MSCI EMU Select Dynamic 50% Risk Weighted 100% hedged to GBP Total Return Net index net of fees. The stock exchange price may differ from the net asset value.

UBS ETF (IE) MSCI Australia UCITS ETF (hedged to USD) A-accIE00BX7RS555

Physical

0.50%

16.6536 USD

Fund description

The fund generally invests in large and mid cap stocks which are contained in the MSCI Australia 100% hedged to USD index. The relative weightings of the components correspond to their weightings in the index.The investment objective is to replicate the price and yield performance of the MSCI Australia 100% hedged to USD.The purpose of the Currency Hedge is to limit the profit or loss generated from foreign exchange exposure when holding an Australian Dollar denominated asset in a currency other than AUD.

UBS ETF (IE) MSCI USA UCITS ETF (hedged to GBP) A-disIE00BYQ00X44

Physical

0.19%

12.1663 GBP

Fund description

The fund generally invests in large and mid cap stocks which are contained in the MSCI USA index. The relative weightings of the companies correspond to their weightings in the index.The fund invests in shares and currency hedges according to the respective composition of the index. The investment objective is to replicate the price and yield performance of the MSCI USA 100% hedged to GBP.

UBS ETF (IE) MSCI ACWI Socially Responsible UCITS ETF (hedged to CHF) A-accIE00BDR55F85

Physical

0.48%

9.478 CHF

Fund description

The fund generally invests in the MSCI ACWI SRI 5% Issuer Capped with Developed Markets 100% hedged to CHF Index. The relative weightings of the companies correspond to their weightings in the index.The investment objective is to replicate the price and return performance of the MSCI ACWI SRI 5% Issuer Capped with Developed Markets 100% hedged to CHF Index net of fees. The stock exchange price may differ from the net asset value.

UBS ETF (IE) MSCI USA hedged EUR UCITS ETF (EUR) A-accIE00BD4TYG73

Physical

0.19%

24.3303 EUR

Fund description

The fund generally invests in large and mid cap stocks which are contained in the MSCI USA hedged to EUR index. The relative weightings of the components correspond to their weightings in the index.The investment objective is to replicate the price and yield performance of the MSCI USA 100% hedged to EUR.

UBS ETF (LU) MSCI Japan Socially Responsible UCITS ETF (hedged to EUR) A-accLU1273488715

Physical

0.50%

12.082 EUR

Fund description

The fund generally invests in Japanese large and mid cap stocks contained in the MSCI Japan Socially Responsible 100% hedged to EUR Index. The relative weightings of the companies correspond to their weightings in the index.The investment objective is to replicate the price and return performance of the MSCI Japan Socially Responsible 100% hedged to EUR Index net of fees. The stock exchange price may differ from the net asset value.The purpose of the Currency Hedge is to limit the profit or loss generated from foreign exchange exposure when holding an JPY denominated asset in a currency other than JPY.

UBS ETF (LU) MSCI Canada UCITS ETF (hedged to GBP) A-accLU1130156323

Physical

0.43%

14.0477 GBP

Fund description

The fund generally invests in stocks contained in the MSCI Canada Index. The relative weightings of the companies correspond to their weightings in the index.The investment objective is to replicate the price and return performance of the MSCI Canada Index net of fees. The stock exchange price may differ from the net asset value.

UBS ETF (IE) MSCI Australia UCITS ETF (hedged to CHF) A-accIE00BX7RS779

Physical

0.50%

19.4419 CHF

Fund description

The fund generally invests in large and mid cap stocks which are contained in the MSCI Australia 100% hedged to CHF index. The relative weightings of the components correspond to their weightings in the index.The investment objective is to replicate the price and yield performance of the MSCI Australia 100% hedged to CHF.The purpose of the Currency Hedge is to limit the profit or loss generated from foreign exchange exposure when holding an Australian Dollar denominated asset in a currency other than AUD.

UBS ETF (LU) MSCI EMU hedged CHF UCITS ETF (CHF) A-accLU0950669175

Physical

0.28%

30.089 CHF

Fund description

The fund generally invests in European large and mid cap stocks which are contained in the MSCI EMU index. The relative weightings of the components correspond to their weightings in the index.The investment objective is to replicate the price and yield performance of the MSCI EMU hedged to CHF.

UBS ETF (IE) MSCI ACWI SF UCITS ETF (hedged to EUR) A-accIE00BYM11K57

Synthetic

0.21%

127.2178 EUR

Fund description

The investment objective of the fund is to deliver the net total return performance of the MSCI ACWI with Developed Markets 100% hedged to EUR Index less costs.The Fund replicates synthetically the index performance by investing in a swap.The swap counterparty transfers collateral to the ETF in the form of G10 government bonds, supranational bonds and cash.

UBS ETF (LU) MSCI USA Socially Responsible UCITS ETF (hedged to CHF) A-accLU1273641503

Physical

0.43%

16.5474 CHF

Fund description

The fund generally invests in stocks contained in the MSCI USA Socially Responsible 100% hedged to CHF Index. The relative weightings of the companies correspond to their weightings in the index.The investment objective is to replicate the price and return performance of the MSCI USA Socially Responsible 100% hedged to CHF Index net of fees. The stock exchange price may differ from the net asset value.

UBS ETF (LU) MSCI USA Socially Responsible UCITS ETF (hedged to EUR) A-disLU1280303014

Physical

0.43%

16.2406 EUR

Fund description

The fund generally invests in stocks contained in the MSCI USA Socially Responsible 100% hedged to EUR Index. The relative weightings of the companies correspond to their weightings in the index.The investment objective is to replicate the price and return performance of the MSCI USA Socially Responsible 100% hedged to EUR Index net of fees. The stock exchange price may differ from the net asset value.

UBS ETF (LU) MSCI Europe UCITS ETF (hedged to GBP) A-accLU1589328068

Physical

0.30%

12.5439 GBP

Fund description

The fund generally invests in stocks contained in the MSCI Europe Index. The relative weightings of the companies correspond to their weightings in the index.The investment objective is to replicate the price and return performance of the MSCI Europe hedged to GBP Index net of fees. The stock exchange price may differ from the net asset value.

UBS ETF (LU) Factor MSCI EMU Prime Value UCITS ETF (hedged to USD) A-accLU1215453736

Physical

0.38%

20.2341 USD

Fund description

The fund generally invests in European large and mid cap stocks which are contained in the MSCI EMU Prime Value 100% hedged to USD Index. The relative weightings of the companies correspond to their weightings in the index.The investment objective is to replicate the price and return performance of the MSCI EMU Prime Value 100% hedged to USD Index net of fees. The stock exchange price may differ from the net asset value.

UBS ETF (LU) MSCI Japan Socially Responsible UCITS ETF (hedged to USD) A-accLU1273489440

Physical

0.50%

12.0449 USD

Fund description

The fund generally invests in Japanese large and mid cap stocks contained in the MSCI Japan Socially Responsible 100% hedged to USD Index. The relative weightings of the companies correspond to their weightings in the index.The investment objective is to replicate the price and return performance of the MSCI Japan Socially Responsible 100% hedged to USD Index net of fees. The stock exchange price may differ from the net asset value.The purpose of the Currency Hedge is to limit the profit or loss generated from foreign exchange exposure when holding an JPY denominated asset in a currency other than JPY.

UBS ETF (LU) MSCI Japan UCITS ETF (hedged to GBP) A-disLU1169822340

Physical

0.45%

10.9236 GBP

Fund description

The fund generally invests in Japanese large and mid cap stocks which are contained in the MSCI Japan index. The relative weightings of the companies correspond to their weightings in the index.The fund invests in shares and currency hedges according to the respective composition of the index. The investment objective is to replicate the price and yield performance of the MSCI Japan 100% hedged to GBP.

UBS ETF (LU) MSCI Japan UCITS ETF (hedged to GBP) A-accLU1169822423

Physical

0.45%

11.3698 GBP

Fund description

The fund generally invests in Japanese large and mid cap stocks which are contained in the MSCI Japan index. The relative weightings of the companies correspond to their weightings in the index.The fund invests in shares and currency hedges according to the respective composition of the index. The investment objective is to replicate the price and yield performance of the MSCI Japan 100% hedged to GBP.