UBI is packaging its proprietary UBI Pramerica Euro High Dividend Strategy for the Italian retail market.
UBI Bank is offering €32.5m of its five-year UBI Protezione & Crescita 2017 structured product, using a strategy of government bonds and its proprietary equities index. It is the first time that the provider has used the proprietary index in an offer.
The bank has a total of 843 products recorded in the Italian database with the vast majority linked to interest rates, according to the SRP database. There are four products which reference commodities, eight linked to funds, three to FX rates, three to hybrids and three to inflation.
The provider has also launched six issues linked to equity index baskets and eight equity single index products, but all reference stock exchanges.
UBI's latest product was launched on 18 June and is also linked to a portfolio of Italian government bonds placed in a special-purpose vehicle, which serves as the issuer. Morgan Stanley provides the option for the Ucits III-compliant product.
UBI Pramerica head of quantitative portfolio management in Milan, Teodor Naoumov, said that the product was meant to appeal to retail investors because the proprietary strategy with a modified payout would be more attractive than direct exposure to European equities.
Retail investors have reportedly purchased 80% of the product while private banking subscriptions account for the remaining 20%.