UBS Global Wealth Management (UBS GWM) has seeded BlackRock’s development bank debt ETF
which launched last December, ETF Stream revealed.
The iShares USD Development Bank Bonds ETF (DDBB) will be included in many of UBS GWM’s mandates and offered on its platforms.
The launch is UBS GWM’s first collaboration with an external fund manager on a development bank bond ETF.
Supported by initial UBS seed capital, DDBB currently has $120m assets under management (AUM).
Tracking the FTSE World Broad Investment-Grade USD MDB Bond Capped index, DDBB offers investors exposure to multi-lateral development bank (MDB) debt.
This includes US dollar debt securities issued by the African Development Bank, Asian Development Bank, European Bank for Reconstruction and Development, Inter-American Development Bank, International Development Association, and the World Bank Group's International Bank for Reconstruction and Development and International Finance Corporation.
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Mark Haefele (pictured), CIO at UBS GWM, commented: "Our clients see development bank debt as an attractive means of diversifying their portfolios and focusing them on the United Nations Sustainable Development Goals.”
Brett Olson, head of fixed income, iShares, EMEA, at BlackRock, added: “As investors seek to diversify their bond portfolios, debt of multi-lateral development banks can be a liquid substitute for other investment grade credit exposures within their asset allocations.”
DDBB is listed on the London Stock Exchange with a total expense ratio (TER) of 0.15%.