UBS Wealth Management
Focus on Emerging Markets
Many investment managers look at the world upside down - focusing on developed regions at the expense of those with greater potential for growth.
The main reason for this is that historically emerging markets may have been associated with instability and lack of certainty regarding development. However today many emerging economies are actually less volatile than developed ones, enjoying lower levels of debt, moderate inflation and better fiscal accounts.
Another reason, investors based in developed economies tend to underweight emerging markets is because of a more general human tendency to invest in what is familiar.
This instinct, however, to favour the familiar over the unknown can lead investors to miss out on growth opportunities elsewhere, and to overvalue domestic assets over international ones.
Emerging Market Insights
At UBS, our ultimate goal is to support clients to balance the long-term protection of their assets with the ability to take advantage of opportunities in the market. Our experts around the world and our integrated investment process allow us to understand market dynamics in a globalized world, and provide you with a tailored solution based on your needs, such as:
- Helping you rise above the noise of financial markets by identifying what really matters.
- We have over 900 UBS investment experts around the globe, and an extensive network of experienced external investment professionals monitor markets so you don't have to.
- We are at home on every continent, and are able to identify emerging trends as well as major economic inflection points.
- Our Chief Investment Office systematically integrates local expertise into our global investment process.
UBS research focus: Emerging market currencies
A current example of our expertise in emerging markets is the 'UBS research focus' publication, October 2012 edition.
As the world settles into a new normal, we believe we may be at the onset of a multi-year period of currency realignment that favours currencies from countries with solid balance sheets, more leeway in monetary policy matters, and better growth fundamentals. Emerging market currencies comprise most of this universe, yet they are underowned and misunderstood as an asset class. This presents investors with an opportunity to take full advantage of what we see as a long-term trend. In this report, our research team shows why emerging market currencies look set to outperform as an asset class and how investors can best use them in a portfolio context.
As it is with all other markets, emerging markets are subject to volatility and require the advice of experienced experts to navigate them successfully.
Take up investment opportunities in emerging markets with your client advisor or get in touch to find out more.
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