UniCredit launches convertible bond ETF
UniCredit has launched the UC Thomson Reuters Balanced European Convertible Bond Ucits Exchange Traded fund, which tracks and provides access to the performance of the Thomson Reuters Monthly Europe Focus Convertible Index.
The ETF aims to provide a broad exposure to the most liquid convertibles issued by European based companies. It offers exposure to the upside of equities while maintaining a bond floor to the
downside, making it an attractive investment vehicle for multi-asset portfolios.
The ETF was issued on 18 May 2015. It is available in EUR and listed on the h. Live prices are provided on Thomson Reuters and Bloomberg as well as UniCredit’s HVBT19 market-making pages.
The ETF does not incorporate capital protection and investors’ capital is at risk.
Since 2000, UniCredit has been among the pioneers in market-making for ETFs. The bank’s expertise has been recognised by various awards and rankings, including the Deutsches Risk
Magazine poll, where UniCredit’s team was rated as #1 Market Maker for ETFs from 2003 throughout 2014 continuously.
In convertible securities, UniCredit has a well-ranked origination team, a strong market-making franchise as well as a specialist salesforce based in London, Munich and Milan servicing leading institutional accounts in Europe.
Philip Gisdakis, head of Credit and Cross Asset Strategy, UniCredit, said: “The convertibles market provides a unique and attractive risk profile, from a cross asset allocation perspective,
which cannot be replicated with pure equity and credit assets. Through an ETF investors will be able to benefit from the risk/return characteristics in a diversified manner.
“The unique characteristics of convertibles enable investors to participate in the upside potential of stock markets, while the downside risk is more limited.”