UBS Fund Arm Markets Inflation-Linked Growth Product

UBS Global Asset Management has structured an equity growth product with a novel feature that protects capital against inflation.

  • 04 Feb 2005
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UBS Global Asset Management has structured an equity growth product with a novel feature that protects capital against inflation. The 15-year note is designed for French pension funds and insurance companies, but Bruno Servant, executive director at UBS GAM in Paris, said it will also be marketed to the private banking market and retail investors through corporate savings plans.

The products, called UBS Euro STOXX Inflation Garantie, uses constant proportion portfolio insurance to protect capital. UBS GAM has entered an inflation swap with UBS' investment bank to create the inflation-linked protection, according to Servant. In the swap, UBS GAM receives French inflation, minus tobacco. The invested capital is protected by dynamically moving it between a pool investing in a synthetic zero-coupon bond linked to the inflation swap and a pool that invests in the Euro STOXX 50.

"There's demand for longer structures," said Servant, who explained the French inflation swaps market is not liquid enough to support a product over 15 years. Servant expects to see more equity growth products with inflation-linked capital protection as inflation swaps liquidity improves. "I think it's only the beginning for such products," he added, noting pension reforms across Europe are iincreasing demands for structured products.The product closes to subscriptions on Dec. 27, 2006.

  • 04 Feb 2005

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
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1 Citi 35,941.13 111 8.93%
2 Barclays 31,588.47 86 7.85%
3 JPMorgan 27,799.55 107 6.91%
4 Bank of America Merrill Lynch 27,706.86 75 6.88%
5 HSBC 21,949.38 82 5.45%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
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1 Commerzbank Group 114.00 1 66.16%
2 CaixaBank 37.05 1 21.50%
3 UniCredit 10.62 1 6.17%
3 BNP Paribas 10.62 1 6.17%
Subtotal 172.30 3 100.00%

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1 SG Corporate & Investment Banking 770.06 2 16.80%
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