View more on these topics

UBS fund scours the US

UBS Asset Management has established its fourth UK retail fund, the US equity fund.

The fund aims for capital growth by investing in between 80 and 90 US stocks. Around 65 per cent of the portfolio will consist of large caps and 35 per cent will go in to mid caps.

Tom Digenan, a Chicago-based executive director at UBS, will manage the fund. He has been with UBS for nine years and previously worked for KPMG Peat Marwick.

When selecting stocks for the fund, Digenan will be assisted by a team of 31 analysts. They will look for companies where the share price does not reflect what they regard as its true value. However, they must also pinpoint factors which could lead to a change that will restore the real value of the stock.

The fund will look at a range of sectors and will be actively managed against a benchmark index, the Wilshire 5000. Despite its name, this index actually covers more than 6,500 stocks which include companies such as Microsoft, Citigroup and Coca-Cola.

Despite this fund&#39s potential to offer growth if the US economy recovers, the current outlook remains negative. IFAs say US stocks are still expensive and that some investors may not be ready to return to US funds.

According to Standard & Poor&#39s, the recently established UBS global optimal fund is ranked 124 out of 170 funds based on £1,000 invested on a bid-to-bid basis with net income reinvested over three months to October 1, 2002.

Recommended

Closing time

Closure has a ring of finality about it. Closing something implies that you have finished with it and that you are now moving on. But in the world of pensions though closure often means something fundamentally different.A recent survey conducted by Hazell Carr of small to medium-size enterprises with defined-benefit pension schemes found that 25 […]

Sandler doesn&#39t make the grade

I have been assessing comments on the Sandler report now that many have had time to digest his glossy blue book. Comments seem to fall into two main categories -hysterically anti regarding much of the detail or fawningly obsequious. Ignoring the detail and looking at it in the context of the bigger picture, it is […]

Northern Rock Lowers Rates

Northern Rock has lowered its rates for fixed and capped mortgages.The range of new products launched by the bank offers reductions of up to 0.7 per cent compared to the range launched at the end of August.Northern Rock&#39s standard two year fixed rate mortgage is available from 1.99 per cent a year with flexible fixed […]

Brokers are facing last-ditch exam dash

Many IFAs face a last-minute dash to get the minimum qualifications by the end of the year to continue doing mortgage business, according to IFA Promotion.IFAP reveals that only around 950 of its 10,300 listed IFAs have passed the Maq or Cemap bridge paper with less than 100 days until the Mortgage Code Compliance Board&#39s […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment