UBS Asset Management has extended its global relationship with Morningstar, Inc. (NASDAQ: MORN), deploying Morningstar Indexes* as the new indexes for two UBS Australian exchange traded funds (ETFs). The products provide access to Morningstar's investment research at a highly competitive rate of 30 basis points
UBS IQ Morningstar Australia Quality ETF (ASX code: ETF) provides exposure to approximately 25 Australian companies as identified by Morningstar's equity research team. The ETF tracks the Morningstar Australia Moat Focus Index, which is a rules-based equally weighted index intended to offer exposure to quality companies that Morningstar analysts determine to have sustainable competitive advantages.
UBS IQ Morningstar Australia Dividend Yield ETF (ASX code: DIV) is designed to offer income-oriented exposure to the Australian equity market without sacrificing total return. DIV tracks the Morningstar Australia Dividend Yield Focus Index, which seeks to provide exposure to approximately 25 high-quality and high-yield stocks screened for strong financial health and the ability to maintain sustainable dividends as determined by Morningstar analysts.
Bryce Doherty, Head of UBS Asset Management in Australasia, commented: 'UBS has developed a strong and effective global relationship with Morningstar to construct index-based investment solutions, and we're very pleased to extend this to Australia. ETFs have been one of the fastest-growing investment products in recent years, due to flexibility, low cost, and transparency. This collaboration allows us to provide a genuinely cost-effective solution to meet client demand.'
Heather Brilliant, CFA, Chief Executive Officer of Morningstar Australasia, said: 'We're pleased that UBS has licensed our indexes for these ETFs. The indexes are transparent, rules-based benchmarks grounded in our independent, fundamental equity research that focuses on identifying companies with sustainable competitive advantages and dividend streams.'
The Australian ETF industry recorded its highest ever annual growth in 2015, increasing 42% in FUM from 2014. UBS Asset Management has been offering ETFs in the Australian market since 2012. Globally, UBS Asset Management offers over 180 ETFs, available to investors in 13 countries.
* Note to editors: As announced to the market on 18 December 2015 and 1 February 2016, the index tracked by the ETF and DIV funds was changed following UBS's global exit from the index administration business.