UBS ETF (LU) Sustainable Development Bank Bonds UCITS ETF (hedged to GBP) A-dis

Issuer: UBS

Asset Class: Fixed Income

TER: 18

Trading Currency: GBX

Pays Income: False

Listing Date: 19 Jan 2026

Ticker: SDBH

ISIN: LU3065096839

This investment provides targeted exposure to a portfolio of high-quality, fixed-income securities issued by leading multilateral development banks (MDBs) and other supranational entities. These institutions, such as the World Bank and the European Investment Bank, are established by sovereign governments to finance social and economic advancement projects across the globe. By focusing on bonds with maturities between one and five years, the strategy aims to offer a degree of stability and mitigate interest rate sensitivity compared to longer-duration debt. The investment-grade credit quality of the underlying issuers forms a defensive foundation, making it a candidate for investors seeking to balance risk and generate a consistent income stream through regular distributions.

Beyond its financial characteristics, the core appeal lies in its profound commitment to sustainability and positive impact. The proceeds from the bonds held are explicitly used to fund projects that support the United Nations Sustainable Development Goals (SDGs), addressing critical global challenges like poverty, climate change, access to clean water, and education. This makes the investment a powerful tool for those who wish to see their capital contribute to tangible, positive change in developing countries. As a financial product classified under the most stringent European sustainability regulations (SFDR Article 9), it offers a transparent and credible way to engage in impact investing. This particular share class is also currency-hedged, which is designed to minimize the effect of foreign exchange fluctuations for investors.

Within a diversified portfolio, this instrument can function as a core defensive holding, offering a unique alternative to traditional government and corporate bonds. It provides diversification benefits due to the specific nature of its supranational issuers while maintaining a very high credit profile, as MDBs typically hold top-tier credit ratings. The combination of a defined maturity range, high creditworthiness, and a direct link to financing sustainable development makes it an attractive option for investors aiming to integrate strong ethical considerations into their fixed-income allocation without compromising on quality or stability.