UBS Tactical Beta Funds

Conservative, Balanced and Growth

Investment objective
The Fund will be managed against a diversified benchmark (with a neutral allocation), covering a range of asset classes across a breadth of global markets. The Fund aims to provide a total return in excess of its neutral allocation (measured by relevant market indices), over rolling five year periods.

Investor suitability
The Tactical Funds are best suited to investors who seek to achieve returns from a mix of growth and income asset with an investment horizon of at least five years.

Investment strategy
The funds invest in a wide range of assets, providing a diversified portfolio of both growth and income assets. By constructing a portfolio with a broad mix of investments, the aim is to reduce the potential impact of negative performance from a single asset class over a sustained period of time and limit the risks associated with investing in a single market.

The assets of the Fund’s investment portfolio are allocated with a view to managing the overall risk and return of the multi asset portfolio. Tactical asset allocation, along with the passive market return, or beta, are the sources of the Fund’s return. The Fund is designed with a broad set of investment ranges which allows our portfolio management team greater freedom to express the conviction in their views, in order to take advantage of the opportunities available.

The Fund’s underlying asset sector exposure is passive. This exposure is obtained by investing largely in exchange traded funds (ETFs), both onshore and offshore, index funds and in derivatives. Active tactical asset allocation is implemented between these underlying sectors by our portfolio management team, with the long term average exposure to conventional income and growth assets expected to be 70% and 30% respectively for the UBS Tactical Beta Fund – Conservative and 30% and 70% respectively for the UBS Tactical Beta Fund - Growth. Currency exposure is actively managed through an overlay strategy to take advantage of mis-valuations that arise.