This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more here.

Excessive regulation "greatest threat" to EM equities, warns UBS

  • Print
  • Comment

Excessive regulatory efforts are currently posing the greatest threat to emerging market equities, according to UBS Global Asset Management’s Urs Antonioli.

Speaking at the Fund Strategy Investment Summit, the head of emerging markets EMEA/Latin America equities says inflation and increased regulatory efforts are the two biggest threats to the asset class but notes that inflation is at least falling.

“Inflation is falling for the first time in 18 months in emerging markets,” he says. “This [risk] has gone away.”

It is the materials sector that is particularly as risk from government intervention, particularly in some of the larger Bric (Brazil, Russia, India & China) nations, he adds.

“Countries like Russia and Brazil see how these companies make tonnes and tonnes of money and there’s a tendency in these countries to change regulations, licences and to raise taxes,” explains Antonioli.

The £26.8m UBS emerging markets equities income fund currently has a 12 per cent weighting to the materials sector, making it the fourth largest single exposure in the portfolio.

  • Print
  • Comment

Daily Email Updates
If you enjoyed this article, sign up to receive the latest news and analysis from Money Marketing.

Money Marketing Awards 2015
Put your firm forward as the leading practitioner in your field. Adviser and Advertising categories are open to entries - Enter Now.

Have your sayEdit my profile/screen name

You must sign in to make a comment

Fund Data

Editor's Pick


How do you plan to vote at the general election?

Job of the week

Latest jobs

View all jobs

Most recent comments

View more comments