UBS plans onshore Asian Consumption offering

UBS is launching an onshore version of its Asian Consumption fund, which aims to tap into the growing demand for goods and services in the burgeoning region.

Run by Namit Nayegandhi, the 45 to 55-stock portfolio will invest across the consumer staple, discretionary and healthcare sectors. It can invest directly in Asia, or in international businesses with substantial exposure to the region.

The offshore version has a 34% weighting to the food, beverage and tobacco sectors, 23% retail, 12% consumer durables, and 10% household and personal products.

China is the single largest country exposure at 29%, while the largest overweight to its MSCI All Country Asia ex Japan Consumer and Health Care Sectors Index benchmark is India at 21%. Korea is the largest underweight at 15%.

“We believe the Asian consumption theme is an exceptional long-term opportunity. Rising income levels and growing urbanisation, coupled with the current low penetration of consumer goods, are supportive of this opportunity,” UBS said.

“In fact, continued growth in consumption is predicted to be a multi-decade trend based on these favourable demographic and structural changes.”

The onshore product is set to launch in December, subject to FSA approval. The AMC is expected to be 1.5%, with a £1,000 minimum investment.