UBS whets investment appetite with new fund
The UBS Investment Bank in Australia has announced the launch of a new structured product designed to give investors access to popular offshore investment themes, such as the rapid rise in food prices.
By providing exposure to the UBS Bloomberg CMCI Food Excess Return Index, which comprises futures contracts for various food commodities including wheat, corn, soybeans, sugar, cocoa, coffee, orange juice, live cattle and lean hogs, the UBS Global Access Fund allows investors to diversify away from equities while taking advantage of this potentially higher growth opportunity.
According to UBS head of structured products Mark Small, simply buying shares in an agricultural company does not offer the same diversification benefits as buying a global index.
“Food investment is an area where structured products really come into their own, especially when you can gain exposure to a wide variety of food types across different geographic markets.”
The other international themes featured in the UBS Global Access Fund centre on emerging markets and Asia.
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