UBS ETF (LU) J.P. Morgan Global Government ESG Liquid Bond UCITS ETF (hedged to GBP) A-dis

Issuer: UBS

Asset Class: Fixed Income

TER: 18bps

Trading Currency: GBX

Pays Income: False

Listing Date: 21 Oct 2020

Ticker: EGOG

ISIN: LU1974694637

This fund provides exposure to a diversified portfolio of global government bonds issued by developed countries. It specifically focuses on instruments that meet certain environmental, social, and governance (ESG) criteria. The strategy aims to capture the performance of high-quality, liquid sovereign debt while adhering to principles of responsible investing. By tracking its benchmark index, the fund systematically includes bonds from issuers with strong ESG profiles and excludes those that do not meet the required standards. This particular share class is currency-hedged, which is designed to minimize the impact of fluctuations between the base currency of the underlying assets and the investor's home currency.

This investment is suitable for individuals seeking stable, core portfolio holdings with a global reach and an integrated ESG philosophy. The focus on high-credit-quality government bonds makes it a potentially lower-risk option compared to equities or corporate bonds, appealing to conservative investors or those looking to diversify their assets. The currency-hedging feature is particularly beneficial for investors who want to reduce the currency risk associated with international bond investing, ensuring that returns are primarily driven by bond price movements and yields rather than foreign exchange volatility.

The primary appeal lies in its dual objective of providing stable returns from government debt while promoting sustainable practices. The fund offers an efficient and cost-effective way to access a professionally managed, ESG-screened basket of global government bonds. In an environment where investors are increasingly conscious of sustainability, this product allows them to align their financial goals with their values without sacrificing the traditional benefits of sovereign debt, such as portfolio diversification and a potential safe-haven during market uncertainty. The liquidity of the underlying assets further enhances its attractiveness as a core fixed-income allocation.