UBS Global Wealth Management has launched the UBS Multi Asset Emerging Markets Dynamic Fund.
The fund is designed to capture the full potential of emerging market assets at a reduced risk through a dedicated three-pillar approach of diversification, active bottom-up security selection, and equity exposure management. Available in jurisdictions across Europe and Asia, it is designed for investors who wish to invest in a globally diversified emerging markets portfolio with various asset classes.
UBS said that although emerging market assets have struggled since the start of the Covid-19 pandemic, underperforming relative to their developed market counterparts, emerging economies – especially those in Asia – significantly outgrew developed economies over the last decades.
The group highlighted several reasons why investors should be considering an allocation to emerging markets:
* Returns: Faster growth in emerging markets supports higher potential returns than developed markets;
* Diversification: Emerging economies now account for more than half of the global economy and “should be a key part of a strategic asset allocation”; and
* Timing: China’s reopening could provide a boost that would “make emerging markets attractive over a tactical horizon”.
Underrepresented asset class
“Although emerging markets increased their share of the global market capitalisation, they remain underrepresented in global indices and in investor portfolios,” said Bruno Marxer, head of global investment management at UBS Global Wealth Management.
“We think our risk-controlled multi-asset approach can help more conservative investors gain exposure to the higher return potential of emerging markets and offer diversification benefits to emerging market-based investors with comparable returns but significantly lower risk.”
The fund is jointly managed by UBS Asset Management (AM) and UBS Global Wealth Management, who will act as portfolio manager and investment adviser, respectively.
