REG - UBS ETFs - Notice to shareholders of UBS (Lux) Fund Solutions

Novartis AGAnnouncement

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RNS Number : 2039L  UBS ETFs  12 December 2025

 

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                                                                                                                                                   UBS (Lux) Fund Solutions

Société anonyme and

Société d'investissement à capital variable

49, Avenue J.F. Kennedy L-1855 Luxembourg

RCS Luxembourg Nr. B 83.626 www.ubs.com/etf (http://www.ubs.com/etf)

 

Notice to the shareholders of

UBS (Lux) Fund Solutions
(the "Company")

 

Dear Shareholder,

We are writing to you as a shareholder of the Company ("Shareholder") to
inform you of the following upcoming changes to the sub-fund of the Company.

Capitalised terms used herein, unless otherwise defined, shall have the same
meaning as given to them in the prospectus of the Company (the "Prospectus").

 

Change of the investment objective and investment policy of UBS EUR AAA CLO
UCITS ETF (the "Sub-Fund"):

The investment policy of the Sub-Fund will be updated in order to (i) promote
certain environmental, social and governance (ESG) characteristics as further
described below and (ii) allow more flexibility in the management of the
collateralized loan obligations.

Consequently, the prospectus will include disclosures under Article 8 of the
Regulation 2019/2088 on sustainability‐related disclosures in the financial
services sector ("SFDR").

The changes are driven by the formal recognition of ESG factors that have been
imbedded in the Sub-Fund's investment approach. It aims to (i) reflect the
fact that the Sub-Fund integrates ESG characteristics and (ii) formalizes the
commitment of the Sub-Fund to transparency and sustainability, in line with
Article 8 SFDR requirements.

The investment objective and investment policy of the Sub-Fund shall be
amended as follows (new wording underlined):

"Investment Objective

The UBS EUR AAA CLO UCITS ETF sub-fund aims to provide investors with a total
return, taking into account both capital appreciation and income returns by
investing at least 80% of its assets in AAA-rated collateralized loan
obligations ("CLOs") and investing up to 20% of its assets in CLOs of
investment grade tranches.  … 

Investment Policy

The sub-fund will predominantly invest its net assets in Euro-denominated
AAA-rated CLOs collateralized loan obligations ("CLOs"). and may invest up to
20% of its assets in CLOs denominated in a currency other than the Euro. The
sub-fund seeks to invest at least 80% of its assets in Euro-denominated CLOs
that are, at the time of purchase, rated AAA (or equivalent by a nationally
recognised ratings agency). while up to 20% may consist of investment grade
tranches (or equivalent by a nationally recognised ratings agency).

If any securities in the portfolio are downgraded below an long terms rating
of AAA investment grade (or equivalent by a nationally recognised ratings
agency), the Investment Manager will aim to sell those securities as soon as
reasonably possible, provided that doing so is deemed to be in the best
interests of the investors.

Moreover, the sub-fund may enter into derivative transactions as described
under chapter C "Investment objectives and investment policy of the
sub-funds".

This sub-fund complies with Article 6 of SFDR.

The sub-fund considers principal adverse impacts on sustainability factors due
to its investment strategy and the nature of underlying investments.

Principal adverse impacts (the "PAI") are the most significant negative
impacts of investment decisions on sustainability factors relating to
environmental, social and employee matters, respect for human rights,
anti‐corruption, and anti‐bribery matters. The Investment Manager
integrates PAI indicators in its decision-making process.

- At present, the following PAI indicator is considered by means of exclusions
from the investment universe:

1.14 "Exposure to controversial weapons (anti-personnel mines, cluster
munitions, chemical weapons and biological weapons)":

The Investment Manager does not invest in companies involved in cluster
munitions, anti-personnel mines or chemical and biological weapons, nor does
it invest in companies in breach of the Treaty on the Non- Proliferation of
Nuclear Weapons. The Investment Manager considers a company to be involved in
controversial weapons if the company is involved in development, production,
storage, maintenance or transport of controversial weapons, or is a majority
shareholder (>50% ownership stake) of such a company.

The investments underlying this financial product do not take into account the
EU criteria for environmentally sustainable economic activities (TR Art. 7).

This sub-fund promotes environmental and/or social characteristics and
complies with Article 8 of SFDR.

Information related to environmental and/or social characteristics is
available in annex 26 to this document (SFDR RTS Art. 14(2)).

This product is a complex product and is not available to retail "Basic
investors Investors" and "Informed Investors" as prescribed in the European
MiFID template, as further described in the section "Eligibility Criteria and
Target Market"."

 

Furthermore the eligibility criteria and target market of the Sub-Fund shall
be amended as follows (new wording underlined):

"Eligibility Criteria and Target Market

 ...  Accordingly, the shares are not suitable for "Basic Investors" and
"Informed Investors" as prescribed in the European MiFID template, being
investors who have a basic knowledge of relevant financial instruments and no
financial industry experience, and shall not be offered to retail investors on
an execution only basis. Share classes shall not be offered on the secondary
market to retail Investors who are basic Basic Investors or Informed Investors
or to retail investors on an execution only basis, in each case as prescribed
in the European MiFID Template. Additional information to that contained in
this prospectus may be provided to third parties (i.e.
stockbrokers/intermediaries) as to the investor profile to enable these third
parties to comply with their legal or regulatory obligations.

The target market for the shares are "Informed Investors", "Advanced Investors", "Professional Investors" and "Eligible Counterparties", each as prescribed in the European MiFID template. "Informed Investors" have one, or more, of the following characteristics: (i) average knowledge of relevant financial products (an informed investor can make an informed investment decision based on the regulated and authorised offering documentation, together with knowledge and understanding of the specific factors/risks highlighted within them only) and/or (ii) some financial industry experience within the meaning of the European MiFID Template (as may be amended from time to time). "Advanced Investors" have a good knowledge of relevant financial products and transactions or financial industry experience or are in receipt of professional investment advice or gaining access through a discretionary portfolio service."

 

 

Information for shareholders of the Company

 

Should you disagree with the planned changes mentioned above, you may redeem
your shares, free of redemption charge until 12 January 2026 in accordance
with the redemption procedure set out in the prospectus.

 

The abovementioned changes will become effective as of 13 January 2026 and
will be reflected in the next version of the Prospectus.

 

The prospectus and key information documents of the SICAV are available free
of charge at the SICAV's management company, UBS Asset Management (Europe)
S.A., having its registered office at 33A, Avenue J.F. Kennedy, L-1855,
Kirchberg, Luxembourg, Grand Duchy of Luxembourg, or online at www.ubs.com/etf
(http://www.ubs.com/etf) .

 

If you have any queries in relation to the above, please seek advice from your
stockbroker, bank manager, legal adviser, accountant or other independent
financial advisor.

 

 

Luxembourg, 12 December 2025

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