UBS Global Asset Management has entered the UK retail market with three funds, including the UK select fund. Further funds are expected to emerge in September.
The UK select fund is an Oeic that aims for capital growth. It will invest in a portfolio of between 60 and 100 UK stocks, predominantly mid-caps. the portfolio will initially contain around 75 stocks.
The fund manager, Paul Fairbrother, will identify undervalued UK stocks and invest in those he believes will subsequently rise in price. Sectors that look particularly attractive to Fairbrother including media and telecommunications, but less will go into other sectors such as oils and pharmaceuticals.
Fairbrother has nine years experience as a Pan-European analyst and a fund manager. His UK fund management experience stretches back to 1995. While managing the UK select fund, he will be armed with research provided by 19 UK equity analysts and will select stocks based on their recommendations.
The fund's focus on UK mid-caps mean that the fund will potentially benefit from improving economic conditions more than large caps, with less risk than small caps.
The UK stockmarket may currently be a brighter place to be than other regions, but uncertainty and volatility remain. To ensure his fund's success, Fairbrother will need to ensure that he avoids companies that look undervalued, but which do not fulfil his expectations.
According to Standard & Poor's, the UBS (Lux) EF Great Britain fund is ranked 92 out of 164 funds based on £1,000 invested on a bid-to-bid basis with gross income reinvested over one year to June 13, 2002.