UBS Global Asset Management announces the listing of four new GBP hedged ETFs on the London Stock Exchange. The funds track the MSCI Australia and MSCI USA indices and are available in both distributing and accumulating share classes. The new GBP hedged ETFs on the….
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Andrew Walsh, Head of UBS ETF UK & Ireland
MSCI Australia and the MSCI USA are the first of their kind to be listed on the LSE. These ETFs are complemented through additional listings of un-hedged share classes on the S&P 500 and the MSCI USA.
UBS Global Asset Management is expanding its line-up of currency-hedged ETFs with four new additions. Investors now have a total of 12 GBP hedged UBS ETFs from which to choose. These currency-hedged ETFs allow investors to accurately mitigate their currency risks against the British pound. Investors can now choose from currency-hedged ETFs on the following MSCI indices: Australia, Canada, EMU, Japan, Switzerland, and USA. All of these funds are UCITS compliant, LSE-listed, SIPP and ISA eligible and will apply for UK Reporting Fund status and perform annual reporting for UK investors. UBS ETFs hedge foreign currency exposure by selling each foreign currency forward at the one-month forward rate.
Andrew Walsh, Head of UBS ETF UK & Ireland, explained: “Portfolios which include global equities are exposed to several currency risks. Exchange rate fluctuations can have a major impact on investment returns. Canada provides a good example of how important currency hedging can be. The MSCI Canada has posted an annualized return of 8.34% in local currency terms. Without hedging, British Pound investors would have earned only 1.01%, while with currency hedging in place, the gain could have been 8.12%.”
In addition, UBS today lists a distributing share class on the S&P 500 as well as on the MSCI USA, with the trading currency in US dollars.
The new UBS ETFs on the London Stock Exchange:
Name | Trading currency | TER | ISIN | Bloomberg |
GBP-hedged ETFs |
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UBS ETF (IE) MSCI Australia hedged GBP UCITS ETF A-dis | GBp | 0.50% | IE00BD4TY907 | UC71 LN |
UBS ETF (IE) MSCI Australia hedged GBP UCITS ETF A-acc | GBp | 0.50% | IE00BD4TYB29 | UC72 LN |
UBS ETF (IE) MSCI USA hedged GBP UCITS ETF A-dis | GBp | 0.30% | IE00BD4TYH80 | UC73 LN |
UBS ETF (IE) MSCI USA hedged GBP UCITS ETF A-acc | GBp | 0.30% | IE00BD4TYJ05 | UC74 LN |
Additional LSE listings (un-hedged) |
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UBS ETF (IE) MSCI USA UCITS ETF A-dis | USD | 0.20% | IE00B77D4428 | UC03 LN |
UBS ETF (IE) S&P 500 UCITS ETF A-dis | USD | 0.20% | IE00B7K93397 | UC12 LN |
Source: ETFWorld.co.uk – UBS Global Asset Management
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