UBS Emerging Markets Equity Opportunity Fund Class P (UEMPX)

Overview

The company operates as an investment fund primarily focused on equity securities within emerging market countries. It adopts a strategy to invest a significant portion of its assets, not less than 80%, in equities that have a direct economic link to developing nations. This approach is complemented by the flexibility to leverage borrowings for investment purposes to potentially enhance returns. The entities in which investments are made can range across various market capitalizations, providing a broad spectrum of growth opportunities. Portfolio diversification is maintained by holding stocks of around 20 to 40 issuers at any given time. Importantly, while the fund can engage in derivative transactions both on exchange-traded or over-the-counter markets for hedging or investment strategy purposes, it is not obligated to do so, leaving room for strategic discretion.

Products and Services

• Equity Investments in Emerging Markets

  The fund primarily offers investment products focusing on equity securities associated with emerging market countries. These investments aim to capitalize on the economic growth and development potential within these jurisdictions. By dedicating at least 80% of its net assets, plus any borrowings for investment purposes, to such opportunities, the fund seeks to provide exposure to diverse industries and sectors showing promising growth in developing regions.

• Flexible Investment in Companies of Any Size

  Investments are not restricted by the size of the company. This approach allows the fund to pursue opportunities across the entire market cap spectrum, from small-cap startups with high growth potential to large, well-established companies with a stable earnings outlook. Such flexibility ensures that the portfolio can adapt to changing market conditions and capitalizes on the best opportunities available within the emerging markets.

• Managed Portfolio Diversification

  By holding stocks of between 20 and 40 issuers, the fund maintains a level of diversification that is critical in managing risk and seeking consistent returns. This strategy is designed to strike a balance between too much concentration, which increases volatility and risk, and excessive diversification, which can dilute potential returns. The selected range of issuers allows for focused investment while mitigating systemic risks inherent to emerging markets.

• Derivative Instruments for Risk Management and Investment Strategies

  Although not mandatory, the fund may use exchange-traded or over-the-counter derivative instruments. These financial tools can serve as a means of managing risk or as a component of the fund’s investment strategies. Derivatives can provide the fund with hedging capabilities against adverse market movements or enable it to take speculative positions to capitalize on anticipated market trends. This optional use of derivatives adds an additional layer of flexibility in portfolio management.