BlackRock teams with UniCredit for fund of ETFs

BlackRock’s exchange-traded fund (ETF) arm iShares has partnered with UniCredit Private Banking for the launch of a fund of ETFs in Europe.

Andrea Lacalamita, head of global marketing at UniCredit Private Banking, said the dire situation of the financial markets has impacted private banking clientele.

He said: ‘Nearly two out of three customers have reduced their risk appetite…the demand for simplicity and transparency in investment solutions has increased, as well as the need for full awareness of the risks regarding each choice.’

He said nowadays, a private banking client is first of all concerned about preserving capital and performance is second.

He added: ‘It’s an attitude of prudence consistent with a scenario in which the risk free investments do not exist anymore.’

To address this issue, BlackRock has partnered with Unicredit Private Bank to launch ‘Green’, an individually-tailored, guaranteed portfolio of ETFs, for clients in Europe.

The fund adjusts allocation to the ETFs according to the state of the markets on a daily basis.

The investor, meanwhile, has to state their risk profile, performance expectations and a guarantee level of between 80 and 90%.  

UniCredit Private Bank will then invest the client’s assets, defining the optimal portfolio allocation using iShares ETFs.

The fund of ETFs space is a young market but set to burgeon as individuals seek low-cost asset allocation that is diversified.

In the UK market, HSBC unveiled a low-cost fund of ETF and tracker fund range last year.