UBS has announced it will set a cap of 50 percent when it comes to lending out securities in its exchange traded funds (ETFs) to gain extra revenue for clients.
The asset manager has announced on its website that even though European regulations allow ETF providers to lend out 100 percent of its securities, UBS has decided to set a cap of 50 percent to provide clients with “more security”. The cap came into force on 1 April.
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