Morningstar ‘disconcerted’ by UBS
Research house Morningstar has adopted a cautious approach to the UBS International Shares Fund suggesting that a number of changes flagged by the big funds manager are “disconcerting and point to a lack of internal confidence” in the fund’s strategy.
The Morningstar assessment points to the fact that the UBS international strategy is undergoing another review in an attempt to give it some impetus, with the latest review being carried out at the behest of UBS head of Global Equities Nicholas Melhuish, who arrived at the fund manager in October last year.
It said that as a result of Melhuish’s arrival, the fund team was now situated in London, meaning that Chicago-based portfolio manager Bruno Bertocci would no longer take an active role.
Looking over the horizon, the Morningstar analysis said it was impossible to know if the changes being made would provide a catalyst for improvement on the poor returns that had seen UBS trail the market.
The ratings house said that, as a consequence, it believed investors should stand on the sidelines and wait until UBS could demonstrate greater stability in its international equities capacity.
AUTHOR
Mike Taylor
Recommended for you
Unregistered managed investment scheme operator Chris Marco has been sentenced after being found guilty of 43 fraud charges, receiving the highest sentence imposed by an Australian court regarding an ASIC criminal investigation.
ASIC has cancelled the AFSL of Sydney-based Arrumar Private after it failed to comply with the conditions of its licence.
Two investment advisory research houses have announced a merger to form a combined entity under the name Delta Portfolios.
The top five licensees are demonstrating a “strong recovery” from losses in the first half of the year, and the gap is narrowing between their respective adviser numbers.
