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"<p>Securities lending transactions for Swiss-domiciled UBS ETFs are <strong>fully collateralized</strong>. UBS Switzerland AG has a robust collateral setup which is in line with the FINMA Collective Investment Schemes Ordinance.<br><strong>UBS ETFs receive collateral with a collateral value of at 105% of the market value of the lent securities</strong>. The collateral consists of liquid assets, including government bonds, liquid equities and bonds with a minimum rating stipulated by one of the FINMA approved rating agencies. When determining the collateral value of a security, its market value is reduced by a haircut of up to 8%.<br> Various <strong>concentration limits</strong> ensure proper diversification and liquidity of the collateral portfolio.<br><strong>A daily mark-to-market process ensures that the collateral value is updated to reflect the loan value</strong>.<br> Collateral is held in the name of the lender in a segregated collateral account which is remote from the bankruptcy estate of UBS Switzerland AG.</p> \n<p><strong>Securities lending for Swiss-domiciled ETFs<br></strong>For Swiss-domiciled UBS ETFs that engage in securities lending, the following types of securities are currently accepted as collateral (excluding securities of the borrowing counterparty):</p> \n<ul> \n <li>Government bonds issued by G10 countries. Government bonds not issued in the US, Japan, UK, Germany or Switzerland must have at least an \"A\" rating or equivalent</li> \n <li>Corporate bonds with minimum rating of \"A\" or equivalent</li> \n <li>Equities issued by companies represented on the following indices: AEX, ATX, BEL20, CAC, DAX, INDU, UKX, HEX25, KFX, OMX, OBX, SMI, SPI, SPX, SX5E</li> \n</ul> \n<p>Source: UBS Switzerland AG, September 20, 2021</p> \n<p><strong>Haircuts and margin*</strong><br> A 5% margin is added to the market value of the lent securities to determine the collateral requirement. The collateral value of a security is equal to its market value less a haircut as per the below table:</p>"
<https://www.ubs.com/global/en/assetmanagement/capabilities/etfs.html>