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eddy 06.09.2010 14:02

Investment in UBS bonds and funds
 
Hi,

I would like to invest about 70K for about three to five years term. Since I have an account with UBS, I asked their proposals and they sent me their options.

Has anyone had experience with UBS funds and bonds? What would be the pros and cons of investing through UBS?

Your advice based on experience is highly appreciated!

Thanks,
Ed

belgo 06.09.2010 21:32

Re: Investment in UBS bonds and funds
 
I am working for an online broker in Geneva (Keytrade Bank) so I agree I am biased but I also have experience as a former UBS client and I know the price of what's on offer on the Swiss market. In a nutshell I thought UBS really exaggerated with only looking after their own interest in anything they came up with (yes I know a lot of cynics will think that all banks are like that). Anyway, I gave up after having to pay a 1% commission to withdraw EURO notes from my zero interest account. So it would be entirely logical for them to direct you to their own funds or to a bond they currently try to place. The problem is that it is very likely that their own product is not the world champion in its class. The best funds are often run by independent houses (blackrock, carmignac to name a few ). So there might be a lot better funds around, with a better track record and/or lower management costs than the UBS Fund. So my advice would be to try to compare what you have been offered (I guess it's a mixed bond/equities fund) and compare its historical performance with other funds from third parties in the same category. Look at Morningstar for example. Or consider ETF's, also called trackers, these are funds listed on stock exchanges and run with minimal fees.

eddy 07.09.2010 13:57

Re: Investment in UBS bonds and funds
 
Quote:

Originally Posted by belgo (Post 934161)
I am working for an online broker in Geneva (Keytrade Bank) so I agree I am biased but I also have experience as a former UBS client and I know the price of what's on offer on the Swiss market. In a nutshell I thought UBS really exaggerated with only looking after their own interest in anything they came up with (yes I know a lot of cynics will think that all banks are like that). Anyway, I gave up after having to pay a 1% commission to withdraw EURO notes from my zero interest account. So it would be entirely logical for them to direct you to their own funds or to a bond they currently try to place. The problem is that it is very likely that their own product is not the world champion in its class. The best funds are often run by independent houses (blackrock, carmignac to name a few ). So there might be a lot better funds around, with a better track record and/or lower management costs than the UBS Fund. So my advice would be to try to compare what you have been offered (I guess it's a mixed bond/equities fund) and compare its historical performance with other funds from third parties in the same category. Look at Morningstar for example. Or consider ETF's, also called trackers, these are funds listed on stock exchanges and run with minimal fees.

First of all thanks for your thoughts on this. Of course they offered me their own products (mixed bond/equities fund new to the market since may 2010). I too hinted at their hight cost of fund management and said would come back to them after considering other options. I was also looking at morningstar, but not gone into details.

I shall dig into other options and see where I can put my feet in!

Thanks again!
Ed


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