UBS is set to launch UBS Global Equity Income fund at the end of this month. The fund will invest in 100 equally weighted stocks in order to maintain its stock specific risk low.
James Collyer, UBS capability manager, said the fund will follow the same investment process as that used on the group’s US$813 million offshore Global High Dividend Strategy Sicav, which has been running since three years.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
Using MSCI All Countries index as a starting point, each of the 2,400 companies are ranked based on their level and the quality of yield and then given an overall rating, with 55% of that rank coming from yield quality.
Though the rankings of the companies are changed on a daily basis, Collyer said that the fund will not rush to trade companies when they are re-ranked.
Collyer anticipates the turnover to be roughly 100 to 120% per year.
The fund will cap its exposure to emerging markets at 25% owing to their higher-risk profile.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataCollyer said: "It is a rules-based approach. All of the stocks are assessed in the same way, with constraints applied at sector and regional levels to ensure diversification.
"The process will also a bias to larger companies over time, with quality of yield rather than the level of yield being deemed as most important," added Collyer.
