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UBS nets butterfly economies



Type: Oeic

Aim: Growth by investing in emerging markets

Minimum investment: Lump sum £1,000, monthly £50

Investment split: 49.6% Pacific, 10.1% Europe, 9.8% South America,
9.2% North America, 7.7% South Africa, 7.4% Asia, 2.5% China, 3.7%

Isa link: Yes

Pep transfer: Yes

Charges: Initial 4%, annual 1.5%

Commission: Initial 3%, renewal 0,5%

Tel: 0800 587 2111

The UBS global emerging markets fund is an Oeic that was
established two years ago as an institutional fund, but is now
available to retail investors. It is benchmarked against the FTSE All
World All Emerging Markets Index and invests in companies such as
Samsung Electronics and China Trust Finance.

Morgans Independent Advisers director Martin Dilke-Wing thinks this
fund&#39s good institutional past performance, combined with the UBS
name, will make it very marketable to retail investors. He says: “For
the UK retail IFA this is a sector than many view with a mixture of fear
and greed. Very few of us are qualified to comment on the investment
strategy of any specific fund manager. Those that have the necessary
expertise may feel confident in assessing the relative merits of
emerging Asia, emerging Europe, Latin and South America but most
will rely on the strength in depth of UBS and judge it on its results.”

Assessing how the fund fits into the market, Dilke-Wing says: “The
consolidation of funds within this sector and the reputation of UBS as
fund managers means that there is definitely a gap for this fund &#45
and for others to exploit. Particularly when a significant number of
commentators are highlighting emerging markets as a potentially
interesting sector.”

When asked about the negative features of the fund, Dilke-Wing says:
“The only obvious thing not to like about the fund is its weighting
towards Far East emerging economies. But then again, if you are not
happy with this level of exposure don&#39t try the product.”

He also wonders whether the investment team is very concentrated
in terms of personnel but adds that he cannot comment
authoritatively on the subject because he is not familiar with the
resources deployed by competitors in terms of analysis and

Looking at the competition the fund could face, Dilke-Wing
concludes: “For generalist investment advisers, emerging market
funds provided by managers such as First State, Aberdeen and
Baillie Gifford are obvious competitors. For the specialist it would be
easy to build a portfolio concentrating on emerging Europe, single
Far Eastern market and Latin American funds.”


Suitability to market: Good
Investment strategy: Good
Charges: Average
Adviser remuneration: Average

Overall 7/10


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