UBS (Lux) Fund Solutions – Sustainable Development Bank Bonds UCITS ETF (USD) A-acc

Issuer: UBS

Asset Class: Fixed Income

TER: 20

Trading Currency: USD

Pays Income: False

Listing Date: 19 Jan 2026

Ticker: SDBU

ISIN: LU3065084744

This fund provides targeted exposure to the debt of Multilateral Development Banks (MDBs), which are supranational institutions created by sovereign countries to foster economic and social progress in developing nations. The portfolio consists of high-quality, investment-grade bonds issued by globally recognized organizations such as the World Bank, the African Development Bank, and the European Investment Bank. By focusing on bonds with a maturity profile of 1-5 years, the fund aims to manage interest rate sensitivity while offering a source of stable income. The strategy is built for investors who wish to combine their financial goals with positive global impact, making it a distinct option in the sustainable investing landscape.

Investing in this product offers a dual benefit. From a financial perspective, it provides exposure to a diversified basket of highly-rated, dollar-denominated bonds that can serve as a stabilizing component in a broader portfolio, especially during periods of market volatility. The short-duration focus helps mitigate some of the price risk associated with rising interest rates. From an impact standpoint, it aligns investments with tangible positive outcomes. By channelling capital to MDBs, investors indirectly support crucial projects related to poverty alleviation, infrastructure development, education, and healthcare in emerging economies. This makes it a compelling choice for integrating Environmental, Social, and Governance (ESG) principles into a fixed-income allocation without compromising on credit quality.

This instrument is well-suited to act as a core holding within the fixed-income portion of a diversified portfolio, serving as a complement or alternative to traditional government and corporate debt. For investors who prioritize ESG and impact, it offers a liquid and transparent vehicle to contribute to global sustainable development objectives. Its focus on supranational issuers provides a unique source of diversification away from single-country sovereign risk, making it an attractive option for conservative investors seeking capital preservation and a modest yield, coupled with the non-financial return of supporting critical development initiatives worldwide.