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  • 1. Asset managementUBS Multi Asset Income FundA superior portfolio for income investorsUBS All–RounderPositioned for every phase of the cycleDr. José Antonio BlancoUBS Global Asset ManagementOctober 2012
  • 2. Disclaimer Este documento ha sido publicado por UBS con fines meramente informativos y de marketing. Fondos UBS de derecho luxemburgués. N.º de registro de la CNMV (Comisión Nacional del Mercado de Valores): UBS (Lux) Key Selection Sicav, nº 336 y UBS (LUX) SICAV 1, nº 807. Representante en España de los fondos de inversión UBS con arreglo a la legislación extranjera: UBS Bank, S.A., MARÍA DE MOLINA, 4, E-28006 MADRID. Los folletos y versiones simplificadas de los mismos o, en su caso, el documento de datos fundamentales para el inversor, los estatutos, el reglamento de gestión y los informes anuales y semestrales de los fondos UBS se pueden solicitar de forma gratuita en UBS, MARÍA DE MOLINA Nº 4, 28006 MADRID / AVENIDA DIAGONAL Nº 640, 2º A, E-08017 BARCELONA / FERNÁNDEZ Y GONZÁLEZ Nº 2, PLANTA PRINCIPAL, E-41001 SEVILLA / C/ROGER DE LAURIA Nº 7, 1ª PLANTA, 46002 VALENCIA / COSO Nº 33, 5º A, 50003 ZARAGOZA, CANTÓN PEQUEÑO 15, 4º, 15003 A CORUÑA. Antes de invertir en un producto le rogamos lea detenidamente el último folleto publicado. Las participaciones de fondos de UBS mencionados aquí no pueden ofrecerse, venderse ni entregarse en Estados Unidos. La información expuesta aquí no debe interpretarse como una solicitud ni oferta de compra o venta de títulos u otros instrumentos financieros. El rendimiento conseguido en el pasado no constituye una garantía de rentabilidad futura. La rentabilidad se calcula antes de cualquier comisión y costes cobrados durante la suscripción y el reembolso de las participaciones. Las comisiones y los costes tienen un impacto negativo en la rentabilidad. Si la divisa de denominación de un producto o servicio financiero fuese diferente a su moneda de referencia, la rentabilidad podría aumentar o disminuir, como resultado de las fluctuaciones monetarias. Esta información no tiene en cuenta los objetivos de inversión específicos o futuros, la situación financiera o fiscal, ni las necesidades concretas de ningún destinatario en particular. La información y las opiniones incluidas en este documento son proporcionadas por UBS sin garantías, y son para uso personal del destinatario y fines exclusivamente informativos. © UBS 2011. El símbolo de la llave y UBS son marcas protegidas de UBS. Todos los derechos reservados. 1
  • 3. Table of ContentsSECTION 1 UBS Multi Asset Income 2SECTION 2 UBS All-Rounder 9SECTION 3 Performance 17 2 GEN0190n.ppt
  • 4. SECTION 1UBS Multi Asset Income
  • 5. Addressing the current challenges for income-orientedinvestorsUBS Multi Asset Income (MAI)MAI’s specialties are as follows: Cash rates at Inflation historic lows potential rising Cash +2.5% target income without taking undue risks Tightened bond Geopolitical spreads shifts Flexibility to tap investment grade and high yield spreads across the globe Uncertainty Governments regarding under scrutiny Cautiously scrutinize each countries’ optimal strategy credit risk Protect investors against inflation via inflation-linked bonds, real estate and potentially commodities Holistic investment process also encompasses analysis of political risks Prepared to make strategic shifts when the game changes UBS Multi Asset Income Fund sets asset allocation actively and dynamically towards higher yielding asset classes, taking into consideration diversification 4
  • 6. Cautious risk profileLong-term average allocation and allocation rangesAsset class Implementation Participation Long-term average Min./Max.Money Market 0% 0% - 100%Fixed Income 80% 60% - 100%  Position-levelGovernment bonds Physical / ETFs 0% 0% - 100% transparencyof which Inflation-linked bonds Physical / ETFs 20% 0% - 75%  Cost efficientCorporate bonds ETFs / Funds 50% 0%- 75% (mainly passiveHigh-yield bonds ETFs / Funds 10% 0% - 50% underlyings)Emerging market bonds ETFs 0% 0% - 25%  "Long-Only"Global real estate (REITs) ETFs / Funds 10% 0% - 40%  Broad andEquities ETFs 10% 0% - 40% globally diversified  High liquidity UBS Multi Asset Income Fund constraint by a strict max. risk budget.** 65% Barclays Capital Global Aggregate Index (hedged in USD) / 35% MSCI All Countries World Index (unhedged). Source: UBS Global Asset Management, September 2012 5 GEN0190n.ppt
  • 7. Active Management and the flexibility to respond to changingmarket environmentsBenign markets Benign markets “Average” throughout cycle “average” throughout cycle Elevated inflation dangers Elevated inflation dangersTilted towards credit Normal portfolio Tilted towardsand equity exposure (without active moves) inflation-linked bonds 10% 5% 10% 20% 20% 5% 25% 50%5% 54% 3% 10% 60% 13% 10% Corporate Bonds High-yield bonds Real estate Government bonds Inflation-linked bonds Equity UBS Multi Asset Income Fund allocates the portfolio in line with the prevailing market environmentSource: UBS Global Asset Management, September 2012. For illustrative purposes only. 6
  • 8. Historical Allocations: UBS (Lux) Multi Asset Income Historical allocations per end of month 100% 90% 80% 70% 60% 50% 1 2 3 40% 30% 20% 10% 0% Apr-11 Jun-11 Aug-11 Oct-11 Dec-11 Feb-12 Apr-12 Jun-12 Aug-12 Equity Real Estate Bon Index Linked Corporates High Yield Cash Fixed Income1 Risk-on trades2 Tactical de-risking and increase in inflation protection3 Enhance quality of inflation-linked govies, while dialing risk up in diversified high yield Source: UBS Global Asset Management, August 2012 7 Note: Target Allocations of MAI (Lux) Multi Asset income
  • 9. The essence of an income strategy Even if nothing were to happen in the  We have to control these main threats on markets (neither good, nor bad, leading to the fixed income side sideways markets), the strategy will – Defaults leading to a loss of principal generate the target yield thanks to a – Mark-to-market impacts occurring prior to regular income stream repayment of the principal – Inflation eroding investors’ purchasing power  Managing these threats means that at times we will substitute bond investments with – Equities – REITs – EM Debt – Potentially Commodities A dedicated long carry approach 8
  • 10. Fulfilling concrete preferences of income investorsUBS Multi Asset Income Fund always addresses the current environmentand is designed for investors who want: A regular income stream combined with low volatility of invested capital Broad diversification amongst liquid asset classes Extensive currency hedging A certain degree of inflation protection Active asset allocation by a highly experienced team of financial specialists UBS Multi Asset Income Fund has been designed with the aim to generate attractive yields at comparably low risks and with an eye on inflation. 9
  • 11. SECTION 2UBS All-Rounder
  • 12. UBS All-Rounder Fund – the innovative investment solutionUnique characteristics1. Innovative Portfolio Construction reducing the overall risk2. Broad diversification – Equity allocation by Global Sectors – Inclusion of Emerging Market Equities – Inclusion of Commodities – Inclusion of Real Estates Securities – Inclusion of Fixed Income incl. Government Bonds, Corporate Bonds, High Yield Bonds, Emerging Market Bonds and Inflation-Linked Bonds3. Business Cycle Management to enhance return potential4. Efficient implementation through the use of passive instruments such as ETFs 11 GEN0190n.ppt
  • 13. Phases of a classic economic cycle...The phases vary with regard to sequence, form and duration ... Asset classes can be allocated to the four phases of an economic cycle based on historical, risk-adjusted performance data (over a period of 20 years). This results in four partial portfolios, which are each customized to a phase of the economic cycle.Representation of the characteristics of an economic cycles four phases and the corresponding investments that typically do wellin these phases of the economic cycle: Upswing Boom Downturn Recession  Increased demand  High demand  Demand declines  Demand is low  Capacity utilization  Capacities fully utilized  Unemployment starts  High level of increases  Full employment to rise unemployment  Level of employment  Interest rates start  Interest rates have increases to fall reached record lows  Equities from sectors such  Equities from sectors such  Equities from sectors  Equities from sectors as industry, financials, as energy, technology such as health care such as consumer commodities, auxiliary and telecommunications  Government bonds staples and utilities materials and supplies  Equities from  Commodity sector  Corporate bonds and other consumer emerging markets precious  Inflation-linked bonds goods  Bonds from metals  Commodity sector  Real estate emerging markets agriculture  High-yield and inflation-  Commodity sector energy linked bonds  Commodity sector industrial metals … and in each phase, different investments typically do wellFinancial markets take into account expectations of the future state of the economy and are therefore ahead of the real economy. The assignment of asset classes to thefour phases of the economic cycle is based on a thorough analysis of past performance achieved and is regularly reviewed. 12 GEN0190n.ppt
  • 14. Investment strategy over the economic cycleIs your portfolio prepared for all phases of the economic cycle?  Oriented towards the economic cycle: The UBS All- Rounder combines four scenario portfolios, which are Boom Downturn Portfolio Portfolio Portfolio each oriented to a phase of the economic cycle.  Superior diversification: In order to prevent one of these Upswing Recession Portfolio Portfolio scenario portfolios from dominating, the allocation is Upswing Portfolio refined in such a way that each of these portfolios contributes equally to the overall risk of the fund.  Economic development drives share prices: The40% 25% current phase in the economic cycle is determined on the Boom Downswing basis of data of the OECD Leading Indicator1. Portfolio Portfolio  Economic cycle management: The scenario portfolio allocated to the current phase of the economic cycle is Upswing Recession overweighted, and the opposite is underweighted. The Portfolio Upswing Portfolio Portfolio - strength of the overweighting is determined by economic25% 10% indicators (assessment of equities, monetary policy).For illustrative purposes only. The All-Rounder allows you to remain invested over the economic cycle 1 The OECD US Composite Leading Indicator (CLI) was specifically developed by the OECD to provide early signals of turning points in the 13 economic cycle. The CLI is composed of a series of advance indicators. GEN0190n.ppt
  • 15. Portfolio StructureUBS All-Rounder model exposures to markets* Model Neutral Target Relative Position Position PositionEquities Financials 2.0% 2.0% - Industrials 2.0% 2.0% - Materials 2.0% 2.0% - Consumer Discretionary 2.0% 2.0% - Energy 2.0% 4.0% 2.0% Technology 2.0% 4.0% 2.0% Telecom 2.0% 4.0% 2.0% Health Care 2.0% 2.0% - 50% 25% Consumer Staples 2.0% 0.0% -2.0% Utilities 2.0% 0.0% -2.0% Emerging markets 3.0% 6.0% 3.0% Boom Downswing Total Equities 23.0% 28.0% 5.0%Real Estate Portfolio Portfolio Real Estate Securities (REITs) 3.0% 3.0% -Commodities Commodity Sector Industrial Metals 2.5% 2.5% - Commodity Sector Energy 2.5% 5.0% 2.5% Commodity Sector Precious Metals 2.5% 2.5% - Upswing Recession Commodity Sector Agriculture 2.5% 0.0% -2.5% Portfolio Upswing Portfolio - Total Commodities 10.0% 10.0% - PortfolioBond Exposure 25% 0% Government Bonds 34.0% 34.0% - Inflation-linked Bonds 12.5% 0.0% -12.5% Inflation-linked Bonds 12.5% 12.5% - Corporate spreads 25.0% 0.0% -25.0% High Yield spreads 5.0% 5.0% - Emerging Markets Debt spreads 5.0% 10.0% 5.00%* percentages represent exposures and differ from weights; actual implementation can differ slightly from model target positioning due to portfolio constraintsData as end of September 2012 14 GEN0190n.ppt
  • 16. A look at the underlying portfolioWhich investments are represented in the UBS All-Rounder as strong? Asset class Implementation Participation1 (current) Neutral weighting Spreads Equities 23% 17% - 29% Global sectors  Materials  Transparent  Consumer staples  Energy  Cost efficient due  Financials ETFs 20% 14% - 26%  Luxury consumer goods to passive  Health care  Industry implementation  Technology stocks  Utilities  "Long-Only" Emerging markets Passive funds 3% 0% - 6%  Broad and globally diversified Bonds Duration: 4.9 years 3.4 – 6.5 years Government bonds Futures 34% 0% - 68%  No dominant risk Inflation-protected bonds ETFs 25% 12% - 38% drivers Corporate bonds ETFs / Derivatives 25% 0%- 50%  High liquidity High-yield bonds ETFs 5% 0% - 10% Emerging markets ETFs 5% 0% - 10% Global real estate (REITs) ETFs 3% 0% - 6% Commodities ETFs 10% 10%1 The percentages indicate the engagement with which the portfolio participates in the ups and downs of the respective investment markets. 15 GEN0190n.ppt
  • 17. UBS All-Rounder StrategyBroad diversification is reducing the max drawdown 0% -2% -4%max drawdown -6% -8% -10% -12% -14% -16% 09 09 09 09 10 10 10 10 12 12 12 11 11 11 11 09 12 10 10 11 24 011 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 2 3. 5. 7. 9. 3. 5. 7. 9. 3. 5. 7. 3. 5. 7. 1. 9. 1. 1. 1. 1. 1. .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .1 .0 .0 .0 .0 .1 .0 .1 24 24 24 24 24 24 24 24 24 24 24 24 24 24 24 24 24 24 24 24 All-Rounder Strategy 40% Equity / 60% Bonds These figures refer to the past. Past performance is not a reliable indicator of future results. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units. Data as end of August 2012 All-Rounder Strategy in USD without fees. 40% Equity is MSCI World in USD, 60% Bonds is Citigroup WGBI hUSD 16 GEN0190n.ppt
  • 18. UBS All-Rounder FundYour benefits at a glance Systematically balanced portfolio aiming for smoothed returns through the entire business cycle. You invest in a long-term- oriented fund, whose underlying assets are broadly diversified, so that no individual part within the portfolio should become too dominant. Active business cycle management can enhance UBS All-Rounder’s return potential. Excluding any emotionally driven short term decisions by a quantitative investment process. UBS All-Rounder is a Systematically balanced and geared managed way of staying invested throughout towards the prevailing business cycle the business cycle, relieving you from too phase hesitant or too hasty decisions that could lead to suboptimal returns or undue risk taking. The strategy is implemented through ETFs and passive instruments. 17 GEN0190n.ppt
  • 19. SECTION 3Performance
  • 20. UBS Multi Asset IncomePerformance summaryUBS Multi Asset Income (USD / CHF hedged / EUR hedged) P-acc 10% 8.93% 9% 8.42% 8.74% Aug 12 YTD 8% 7% 6% 5% 4.57% * 4% 3% 2% 1% 0.39% 0.43% 0.47% 0.48% 0% * since launch 16.03.2012 -1% UBS (Lux) Key Selection UBS (Lux) Key Selection UBS (Lux) Key Selection UBS (Lux) Key Selection SICAV - Multi Asset SICAV - Multi Asset SICAV - Multi Asset SICAV - Multi Asset Income (CHF hedged) P- Income (EUR hedged) P- Income (USD) P-dist Income (GBP hedged) P- dist dist UkdistData as at end of August 2012These figures refer to the past. Past performance is not a reliable indicator of future results. The performance shown does not take account of any commissions and costs charged whensubscribing to and redeeming units. 19 20374
  • 21. Multi Asset Income – Strategy performanceUBS (Lux) Multi Asset Income and UBS (UK) Multi Asset Income Fund 125 UBS (Lux) MAI EUR - p UBS (UK) MAI ACC (Net) 120 115 110 105 100 95 90 Nov-09 Feb-10 May-10 Aug-10 Nov-10 Feb-11 May-11 Aug-11 Nov11 Feb-12 May-12 Aug-12Source: Datastream. Data as of 9 September 2012. Numbers reflect total return (dividend reinvested)Note: UBS (UK) Multi Asset Income was launched in Nov 2009, UBS (Lux) MAI EUR – p was launched on 1 June 2011 (in the chart rebased at its launch).Past performance is not indicative of future results. 20
  • 22. PerformanceUBS All-Rounder (USD) YTD 140 130 120 110 100 03/09 05/10 06/11 08/12 UBS (Lux) SICAV 1 - All-Rounder (USD) P-acc Aug-12 2012 YTD 2011 Since launch Launch date UBS (Lux) SICAV 1 - All-Rounder (USD) P-acc 1.4% 5.4% -0.4% 38.6% 24-Mar-09These figures refer to the past. Past performance is not a reliable indicator of future results. The performance shown does not take account of any commissions and costs charged whensubscribing to and redeeming units.Data as at end of August 2012 21 GEN0190n.ppt
  • 23. PerformanceUBS All-Rounder (EUR hedged) YTD 120 115 110 105 100 08/09 02/10 08/10 02/11 08/11 02/12 08/12 UBS (Lux) SICAV 1 - All-Rounder (EUR hedged) P-acc Aug-12 2012 YTD 2011 Since launch Launch dateUBS (Lux) Sicav 1 - All-Rounder (EUR hedged) P-acc 1.3% 5.0% -0.3% 19.2% 24-Aug-09These figures refer to the past. Past performance is not a reliable indicator of future results. The performance shown does not take account of any commissions and costs charged whensubscribing to and redeeming units.Data as at end of August 2012 22 GEN0190n.ppt
  • 24. Performance vs. Morningstar Peer Groups Fund / Morningstar Category MTD YTD 1year 2year (an) 3year (an) 5year (an) Overall Rating UBS (Lux) SICAV 1 All Rounder USD P 1.38% 5.36% 4.58% 5.24% 6.20%  Quartile Ranking 2 3 2 2 2 Morningstar Average - USD Moderate Allocation (in USD) 1.04% 5.76% 3.96% 4.70% 4.91% All-Rounder UBS (Lux) SICAV 1 All Rounder EUR Hdgd P 1.28% 4.99% 4.06% 5.08% 6.08%  Quartile Ranking 1 3 3 1 1 Morningstar Average - EUR Moderate Allocation 0.75% 5.66% 5.79% 1.67% 3.05% UBS (Lux) SICAV 1 All Rounder CHF Hdgd P 1.27% 4.72% 3.15% 4.18% 5.37%  Quartile Ranking 1 3 4 1 1 Morningstar Average - CHF Moderate Allocation 0.19% 4.99% 7.58% 1.61% 1.43% UBS (Lux) KSS Multi Asset Inc USD P 0.47% 8.93% 8.99% Quartile Ranking 3 1 1 Morningstar Average - USD Cautious Allocation 0.58% 4.40% 4.23%Multi Asset UBS (Lux) KSS Multi Asset Inc P €Hdg 0.43% 8.74% 8.39% Income Quartile Ranking 3 1 1 Morningstar Average - EUR Cautious Allocation 0.67% 4.62% 4.37% UBS (Lux) KSS Multi Asset Inc P CHFHdg 0.39% 8.42% 7.77% Quartile Ranking 2 1 2 Morningstar Average - CHF Cautious Allocation 0.33% 4.56% 6.79% Outperformance vs. Peer Group Average > 0.5% Underperformance vs. Peer Group Average < -0.5% Performance in line with Peer Group Average (+/- 0.5%) These figures refer to the past. Past performance is not a reliable indicator of future results. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units. Source: Morningstar. Data as at end of August 2012 23
  • 25. DisclaimerFor marketing and information purposes by UBS. For professional investors only. This document has been issued by UBS AG,a company registered under the Laws of Switzerland. This document is for distribution only under such circumstances as may bepermitted by applicable law. It was written without reference to any specific or future investment objective, financial or taxsituation or requirement on the part of a particular individual or group. The document is for information purposes only and isnot intended to be construed as a solicitation or an invitation to make an offer, to conclude a contract, or to buy or sell anysecurities or related financial instruments. The products or securities described herein may not be eligible for sale in alljurisdictions or to certain categories of investors. The information and opinions contained in this document have been compiledor arrived at based upon information obtained from sources believed to be reliable and in good faith, but is not guaranteed asbeing accurate, nor is it a complete statement or summary of the securities, markets or developments referred to in thedocument. The details and opinions contained in this document are provided by UBS without any guarantee or warranty and arefor the recipients personal use and information purposes only. Past performance of investments (whether simulated or actual) isnot necessarily an indicator of future results.The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.Commissions and costs have a negative impact on performance. Should the currency of a financial product or service not matchyour reference currency, performance may rise or fall due to currency fluctuations. All such information and opinions are subjectto change without notice. UBS AG and / or other members of the UBS Group may have a position in and may make a purchaseand / or sale of any of the securities or other financial instruments mentioned in this document. This document may not bereproduced, redistributed or republished for any purpose without the written permission of UBS AG. This document containsstatements that constitute “forward-looking statements”, including, but not limited to, statements relating to our futurebusiness development. While these forward-looking statements represent our judgments and future expectations concerning thedevelopment of our business, a number of risks, uncertainties and other important factors could cause actual developments andresults to differ materially from our expectations. Source for all data and charts (if not indicated otherwise): UBS Global AssetManagement.© UBS 2012. The key symbol and UBS are among the registered and unregistered trademarks of UBS. All rights reserved CH 24 GEN0190n.ppt
  • 26. Contact information Juan Infante Executive Director - Head of Iberia juan.infante@ubs.com +34 91 745 7038 Diogo Gomes Diogo.Gomes@ubs.com +34 91 787 8886 UBS Global Asset Management Iberia sh-ubs-globalam-iberia@ubs.com +34 91 790 7248 UBS Global Asset Management Institutional & Wholesale Business Iberia Maria de Molina 4, 3rd floor 28006 Madrid Spain http://www.ubs.com/espanafondos www.ubs.com/portugalfundos 25

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