Union Bancaire Privée (UBP) has announced the launch of the UBAM – Global Emerging Equity fund.
The fund will be managed from UBP’s London branch by a team of three fund managers headed by Mathieu Nègre, head of Global Emerging Equities, and will use a proprietary country allocation model to assess areas of opportunities and optimally manage risk exposures.
The fund includes some 1000 stocks from 23 countries in the global emerging market universe and seeks to identify stocks with long term return potential.
The UBAM – Global Emerging Equity fund will employ a combined quantitative and qualitative approach to stock selection, with initial quantitative screening used to narrow the funds investable universe from over 1000 to 180 stocks, UBP said.
The securities will then be subject to qualitative analysis, with the fund’s managers assessing each stock against a 29-point check list that considers a range of fundamental factors including corporate governance, business model and growth strategy.
As part of the portfolio construction process, the fund’s management team will also be able to draw on expertise from other areas of UBP’s investment capabilities, which includes local teams comprising more than 25 emerging market specialists in Zurich, London, Istanbul, Hong Kong, Taipei and Shanghai.
The fund is registered in Belgium, Finland, France, Gibraltar, Italy, Luxembourg, Spain, Sweden, Switzerland, and the United Kingdom.
“Compared to the MSCI Emerging Markets index, our fund spreads its country risk exposure much more equally, enabling smaller countries to contribute more to its performance”, explains Mathieu Nègre.
“The aim of this approach is primarily to reduce country risk, which is the main source of risk in an emerging market portfolio.”