UBS Global Wealth Management has launched the UBS Multi Asset Emerging Markets Dynamic Fund.
The goal is to capture the potential of emerging market (EM) assets at a reduced risk by utilising a three pillar approach.
Furthermore, the three pillars are:
- Active bottom-up security selection, and
- Dynamic equity exposure management.
EM assets have struggled since the beginning of the Covid-19 pandemic, but emerging markets outgrew developed economies over the last few decades.
The bank claims that over the last three years (2020–2022), the strategy would have improved a portfolio’s risk-adjusted returns and moderately outperformed a static multi-asset emerging market benchmark. This is notable given that neither emerging market bonds nor equities performed positively during this period.
In addition, the fund will be jointly managed by UBS Asset Management and UBS GWM, acting as portfolio manager and investment adviser respectively.
This product combines core strengths of UBS in one strategy, which profits from fast time-to-market, low transaction costs, and investment decisions based on UBS GWM’s Chief Investment Office investment philosophy and UBS-AM’s portfolio management capabilities.
Bruno Marxer, head of global investment management at UBS Global Wealth Management, said: “Although emerging markets increased their share of the global market capitalisation, they remain underrepresented in global indices and in investor portfolios. We think our risk-controlled multi-asset approach can help more conservative investors gain exposure to the higher return potential of EMs, and offer diversification benefits to EM-based investors with comparable returns but significantly lower risk.”
Available across Europe and Asia, it is for investors who want a globally diversified EM portfolio.
UBS Global Wealth Management recorded 31% increase year-on-year in net interest income in Q1 2023.This was attributed to an increase in deposit revenues, reflecting the benefits from higher interest rates.In addition, total revenues decreased 2% year-on-year to $4,792m from $4,904m.For asset management, revenues fell 13% year-on-year and net new money was $14.4bn.