Fund Management
What's New In Investments, Funds? - UBS, BlackRock

The latest in investments and fund management from across Europe.
UBS, BlackRock
UBS has partnered with
asset management titan BlackRock to launch an
exchange-traded fund that taps into returns from multilateral
development bank debt.
The launch is UBS GWM's first collaboration with an external fund
manager on a development bank bond ETF.
The ETF will be included in certain UBS Global Wealth Management
mandates and offered on GWM platforms as an alternative to
traditional high-quality fixed income investments such as
government bonds. MDB debt, UBS said, offers strong – often AAA –
credit ratings, high liquidity, and a higher yield than US
Treasuries.
The funds raised by MDB debt are also focused on advancing the
United Nations’ Sustainable Development Goals, or SDGs.
Known as the the iShares USD Development Bank Bonds UCITS ETF, it
tracks the FTSE World Broad Investment-Grade USD MDB Bond Capped
Index.
Supported by initial UBS seed capital, the ETF has assets of more
than $120 million. In total, UBS oversees more than $1 billion of
client assets in development bank debt.
The FTSE index offers exposure to dollar debt securities issued
by African Development Bank, Asian Development Bank, European
Bank for Reconstruction and Development, Inter-American
Development Bank, International Development Association, and the
World Bank Group's International Bank for Reconstruction and
Development and International Finance Corporation. Each issuer
carries an AAA credit rating from at least one major rating
agency, has the US as a member, and has pledged support for
critical UN SDGs.
"Our clients see development bank debt as an attractive means of
diversifying their portfolios and focusing them on the United
Nations Sustainable Development Goals. Exchange-traded funds will
continue to represent an important route for clients to access
this growing asset class,” Mark Haefele, chief investment officer
at UBS Global Wealth Management, said.
The fund will be distributed in Austria, Belgium, Denmark,
Finland, France, Germany, Ireland, Luxembourg, the Netherlands,
Norway, Portugal, Spain, Sweden, Switzerland, and the UK.