UBS Offers Two Innovative Australian ETFs Based on Morningstar Indexes

UBS Asset Management has extended its global relationship with Morningstar, Inc. (NASDAQ: MORN), deploying Morningstar Indexes* as the new indexes for two UBS Australian exchange traded funds (ETFs). The products provide access to Morningstar’s investment research at a highly competitive rate of 30 basis points

UBS IQ Morningstar Australia Quality ETF (ASX code: ETF) provides exposure to approximately 25 Australian companies as identified by Morningstar’s equity research team. The ETF tracks the Morningstar^® Australia Moat Focus Index^TM, which is a rules-based equally weighted index intended to offer exposure to quality companies that Morningstar analysts determine to have sustainable competitive advantages.

UBS IQ Morningstar Australia Dividend Yield ETF (ASX code: DIV) is designed to offer income-oriented exposure to the Australian equity market without sacrificing total return. DIV tracks the Morningstar^® Australia Dividend Yield Focus Index^TM, which seeks to provide exposure to approximately 25 high-quality and high-yield stocks screened for strong financial health and the ability to maintain sustainable dividends as determined by Morningstar analysts.

Bryce Doherty, Head of UBS Asset Management in Australasia, commented: "UBS has developed a strong and effective global relationship with Morningstar to construct index-based investment solutions, and we’re very pleased to extend this to Australia. ETFs have been one of the fastest-growing investment products in recent years, due to flexibility, low cost, and transparency. This collaboration allows us to provide a genuinely cost-effective solution to meet client demand.”

Heather Brilliant, CFA, Chief Executive Officer of Morningstar Australasia, said: “We’re pleased that UBS has licensed our indexes for these ETFs. The indexes are transparent, rules-based benchmarks grounded in our independent, fundamental equity research that focuses on identifying companies with sustainable competitive advantages and dividend streams.”

The Australian ETF industry recorded its highest ever annual growth in 2015, increasing 42% in FUM from 2014. UBS Asset Management has been offering ETFs in the Australian market since 2012. Globally, UBS Asset Management offers over 180 ETFs, available to investors in 13 countries.

* Note to editors: As announced to the market on 18 December 2015 and 1 February 2016, the index tracked by the ETF and DIV funds was changed following UBS's global exit from the index administration business.

ABOUT UBS ASSET MANAGEMENT

UBS Asset Management, a business division of UBS, is a large-scale asset manager with well-diversified businesses across regions, capabilities, and distribution channels. We offer a comprehensive range of active and passive investment styles and capabilities, across both traditional and alternative asset classes. These include equities, fixed income, currencies, hedge funds, real estate, infrastructure and private equity that can also be combined into multi-asset strategies.

Invested assets totalled CHF 635 billion at 30 September 2015*. The firm is a leading fund house in Europe, the largest mutual fund manager in Switzerland* and one of the largest fund of hedge funds and real estate investment managers in the world. We have around 2,500 employees located in 24 countries. Our main offices are in Chicago, Frankfurt, Hartford, Hong Kong, London, New York, Paris, Singapore, Sydney, Tokyo and Zurich.

* Source: Morningstar/Swiss Fund Data Swiss Promoters report (as of 30 September 2015).

ABOUT MORNINGSTAR, INC.

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offers an extensive line of products and services for individual investors, financial advisers, asset managers, and retirement plan providers and sponsors. Morningstar provides data on more than 500,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with realtime global market data on more than 17 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries, with more than US$170.0 billion in assets under advisement and management at 30 September 2015. The company has operations in 27 countries.

The Morningstar® Australia Moat Focus Index^TM and the Morningstar^® Australia Dividend Yield Focus Index^TM were created and are maintained by Morningstar, Inc. Morningstar, Inc. does not sponsor, endorse, issue, sell, or promote the UBS IQ Morningstar Australia Quality ETF or the UBS IQ Morningstar Australia Dividend Yield ETF and bears no liability with respect to these ETFs or any security. Morningstar^® is a registered trademark of Morningstar, Inc. Morningstar^® Australia Moat Focus Index^TM and Morningstar^® Australia Dividend Yield Focus IndexTM are trademarks of Morningstar, Inc. More information about Morningstar Indexes is available here.