UBS to discount charge on US Growth fund offer

Investors in the UBS US Growth fund during its one-week offer period between November 3 and 10 will receive a 1% discount off the typical 4% initial chargeThe fund will be an onshore version of an existing Luxembourg Sicav, the UBS Lux Equity USA Growth fund, which the group has managed since October 2004.

Investors in the UBS US Growth fund during its one-week offer period between November 3 and 10 will receive a 1% discount off the typical 4% initial chargeThe fund will be an onshore version of an existing Luxembourg Sicav, the UBS Lux Equity USA Growth fund, which the group has managed since October 2004.

Managed out of New York by UBS’s growth investors team, UBS says the two portfolios will be closely aligned but will not be exact mirrors of each other. Both invest in companies with a minimum market capitalisation of $2.5 billion (£1.6 billion) and typically hold 35-55 stocks in the portfolio.

According to UBS, in dollar terms the Sicav has generated a 17.2% return since launch in October 2004 to September 31, 2008. Over the past year, however, its value has fallen 21.5%.

Despite the volatility in equity markets at present, Graham Kane, the head of UK retail at UBS, says the American market offers one of the most attractive investment opportunities in recent history.

He says this is because American equities have priced in most of the liquidity and credit concerns and that a strengthening dollar should help to make equities even more attractive.

At present the Sicav is largely overweight in the healthcare and financial services sector relative to its benchmark, the Russell 1000 Growth index. Conversely it is heavily underweight in the technology and consumer staples sectors.

The top three holdings in the fund at the end of September, in order, were Qualcomm, Allergan, and Mastercard.