UniCredit and Axiom Alternative Investments have partnered to launch a global ETF providing market weighted exposure to the contingent convertible (CoCo) bond market.
The UC AXI Global CoCo Bonds Ucits ETF, listed on Deutsche Börse Xetra, is the first ETF to provide investors with access to the entire liquid CoCo bond market, including Additional Tier 1 and Restricted Tier 1 capital instruments.
The ETF, developed and launched in cooperation with Axiom Alternative Investments, will track the performance of the EURO-hedged Solactive AXI Liquid Contingent Capital Global Market TR Index, the first index to provide a currency hedged market-weighted exposure to the global CoCo Bond market.
Axiom Alternative Investments is an independent asset manager specialised in instruments issued by financial institutions, with a strong track record in managing funds exposed to the financial sector.
Laurent Dupeyron, managing director at UniCredit, said: "Today's announcement is a major development for our institutional investor base who can now gain market-weighted exposure to the CoCo universe in an easy and cost-effective manner while still benefiting from a Ucits structure. With this launch, we are proving once again that we can respond flexibly to market developments and the demands of our clients."