UBS Global Asset Management has launched new sterling-hedged exchange traded funds (ETFs) on the London Stock Exchange (LSE).
The new ETFs are UCITS compliant, physically replicated, and are domiciled in Luxembourg. It seeks to enable investors to manage their currency risk of exchange rate fluctuations.
The ETFs are linked to the MSCI Japan, MSCI Canada, MSCI EMU (European Economic and Monetary Union) and MSCI Switzerland indices and will be available in both distributing and accumulating share classes.
The sterling-hedged ETFs on the MSCI Canada, MSCI EMU and MSCI Switzerland are the first of their kind to be listed on the LSE, while the MSCI Japan ETF has the lowest Total Expense Ratio (TER) in its class.
Andrew Walsh, head of UBS ETF sales in UK, said: "These currency-hedged UBS ETFs are ideal building blocks for investors looking to minimize their currency risks. For instance, investors can gain access to Japanese equities without having to worry about exchange rate fluctuations between the British Pound and the Japanese Yen."