UBS Changes ETF Benchmark

Stephen Harris

14 April 2008

UBS is changing the benchmarks for its exchange traded funds investing in Japanese and US equities from the Dow Jones indices currently used to those of Morgan Stanley (MSCI family). The funds’ names will also be changed accordingly from 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, says the Zurich-based bank. 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 capitalisation is now on mid caps as well as large caps. The geographical focus of UBS ETFs will remain unchanged. Christian Gast, Head UBS Exchange Traded Funds said: "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."