EUROPE - UBS Global Asset Management has launched a new institutional share class on its ‘Fresco Bees' range of exchange traded funds.
The funds will trade on the Euronext Paris and will be available to investors in France, Germany, UK and Luxembourg.
Fresco will initially introduce two institutional ETFs: Fresco Dow Jones EURO STOXX 50 Bees, which is currently trading and has a minimum subscription of 10 shares or about E240,000, and the Fresco Dow Jones US Large Cap Bees, which is expected to start trading by late February.
Both ETFs will track stocks with a high market cap and liquidity.
Said UBS: “ETFs combine the advantages of index funds with the flexibility of exchange-traded stocks. The ETF investment segment has already attracted capital amounting to more than E10.3bn in Europe. In the US, where the first ETF was launched ten years ago, invested capital amounts to around US$102bn at the end of 2002.”
Total expense ratio is 29 basis points. BNP Paribas, Exane, JPMorgan, Optiver and Timber Hill will act as market makers and liquidity providers in one or both of the two indices.
The launch comes just as Morgan Stanley issues its latest overview of the the ETF marketplace for the full year 2002. The market appeared to grow significantly on most measures last year.
Assets under management increased by 35%, from US$104.8bn to US$141.62bn. AUM growth came from Japanese listed ETFs, which increased 218% (US$14.4bn) to US$21bn, followed by Europe, which increased by 91% (US$5.09bn) to US$10.69bn, and the US, which increased by 21% (US$17.68bn) to US$102.28bn.
The number of products also increased by 39% to 280 ETFs, cross-listings increased by 57% to 361. Europe had the largest number of products at 118 and cross-listings at 192, and had the largest number of new product launches at 47, an increase of 66%.
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