The roadshow of Green, the individual guaranteed portfolio management product created in partnership between BlackRock's iShares and UniCredit Private Banking, will end today having gained positive feedback from the market, UniCredit tells Investment Europe.
The roadshow of Green, the individual guaranteed portfolio management product created in partnership between BlackRock’s iShares and UniCredit Private Banking, will end today having gained positive feedback from the market, UniCredit tells Investment Europe.
The product was launched in Italy on May 7, and will also be available to UniCredit’s private banking customers in Germany and Austria, possibly next year. It combines the use of exchange-traded funds (ETFs) with a dynamic protection mechanism.
“The feedback received from investors over the last weeks has confirmed that in a context of volatile markets private banking customers look for simple, transparent and easy to understand investment solutions. During the roadshow, we have received strong interest for our product. We will look to target a wider client base and to expand the product distribution in Germany and Austria as well,” said Andrea Lacalamita (pictured), head of global marketing at UniCredit private banking.
The partnership between the groups seeks to offer an investment solution which combines performance and risk control.
The investor will select expectations and risk profile, along with a guarantee level of between 80% and 90%. The global investment strategy specialist team of the Italian bank will invest clients’ assets, defining the optimal portfolio allocation between a conservative and an active line and using iShares’ ETFs for the investments.
“Green is new because, unlike traditional guaranteed products, it is tailor-made for each client, who can at any time increase or decrease the investments, or change the level of the guarantee or disinvest without costs,” Lacalamita said.
The value of the guarantee in the product is related to the management performance and can only grow, says Lacalamita. If the value of the investments drops below the guaranteed level, UniCredit will make good the loss in two days on the customer’s account.
Emanuele Bellingeri, head of iShares for Italy, added that since their launch in the 1990s, ETFs continue to register steady and healthy growth, confirmed by the record inflows of more than €50bn in the first quarter of 2012.
“Given the variety and extent of exposures available through these tools even in fixed income, it is now possible to build balanced portfolios of ETFs, with different risk profiles, in order to take advantage of a wide range of diversified sources of return,” he said.