Month in Review – March 2014

Read the latest contributions from our investment teams on the Australian investment landscape

Current Market Views

Watch the latest commentary from our investment teams on the markets this month and the implications for our portfolios.

Nick Irish, Head of Global Equities shares his views of market developments in 2014 and positioning of UBS International Share Fund as at March 2014.

Tracey McNaughton, Head of Investment Strategy comments on market developments in March 2014 and their impact on UBS multi asset portfolios.

Warren Tease, Fixed Income Head of Rate Strategies comments on market developments in March 2014 and their impact on UBS fixed Income portfolios.

UBS Australian Small Companies Fund turned 10 in March 2014. Portfolio managers Stephen Wood and Victor Gomes take you through the  journey.

Performance

  After Fees %
Performance as at 31 March 2014
 
Sector 1 Month 3 Months 1 Year 3 Years 5 Years Since Inception
Australian Equities
UBS Australian Share Fund 0.24 1.84 12.83 8.27 13.74 11.20
S&P/ASX 300 Accumulation Index 0.21 1.99 12.97 8.05 13.19 9.37
Added Value 0.03 (0.15) (0.14) 0.22 0.55 1.83
             
UBS-HALO Austrlalian Share Fund 0.07 1.13 11.98 9.39 - 12.17
S&P/ASX 200 Accumulation Index 0.29 2.09 13.46 8.54 - 11.18
Added Value (0.22) (0.96) (1.48) 0.85 - 0.99
             
UBS Australian Small Companies Fund 0.87 6.81 19.13 4.39 15.59 13.03
S&P/ASX Small Ords Accumulation Index (1.16) 0.89 (1.46) (5.32) 8.76 4.88
Added Value 2.03 5.92 20.59 9.71 6.83 8.15
             
International Equities
UBS International Share Fund (4.45) (2.72) 37.04 14.04 12.49 5.27
MSCI World Equity Accumulation Index ex-Australian (3.43) (2.40) 34.73 14.53 11.59 5.38
Added Value (1.02) (0.32) 2.31 (0.49) 0.90 (0.11)
             
Fixed Income
UBS Australian Bond Fund 0.21 1.78 3.80 6.72 6.26 8.66
UBS Australian Composite Bond Index 0.02 1.45 3.30 6.74 5.95 8.56
Added Value 0.19 0.33 0.50 (0.02) 0.31 0.10
             
UBS Diversified Fixed Income Fund 0.75 2.77 3.95 6.77 7.62 6.69
50% UBS Aust Composite Bond Index (0+YR) / 50% Barclays Global Aggregate Index ($A hedged) 0.16 2.06 3.50 7.38 7.14 7.06
Added Value 0.59 0.71 0.45 (0.61) 0.48 (0.37)
             
UBS Diversified Credit Fund 0.52 2.16 5.38 7.23 12.06 5.73
UBS Bank Bill Index 0.22 0.64 2.77 3.74 3.92 5.07
Added Value 0.30 1.52 2.61 3.49 8.14 0.66
             
Multi-asset
UBS Balanced Investment Fund (0.96) 0.72 16.76 9.99 11.55 8.50
Neutral* (0.80) 0.55 14.54 9.07 10.41 8.52
Added Value (0.16) 0.17 2.22 0.92 1.14 (0.02)
             
UBS Defensive Investment Fund (0.12) 1.61 8.81 9.21 9.70 7.56
Neutral** (0.23) 1.48 7.58 7.87 8.14 7.61
Added Value 0.11 0.13 1.23 1.34 1.56 (0.05)
             
UBS Tactical Beta Fund - Conservative 0.16 1.68 7.83 - - 9.99
Neutral*** 0.30 2.19 7.11 - - 9.55
Added Value (0.14) (0.51) 0.72 - - 0.44
             
UBS Tactical Beta Fund - Balanced 0.28 1.73 10.23 - - 12.86
Neutral^ 0.32 2.08 9.41 - - 11.81
Added Value (0.04) (0.35) 0.82 - - 1.05
             
UBS Tactical Beta Fund - Growth 0.47 1.61 12.04 - - 15.49
Neutral^* 0.35 1.97 11.99 - - 15.52
Added Value 0.12 (0.36) 0.05 - - (0.03)
             
Property securities
UBS Property Securities Fund (1.84) 2.61 4.99 12.66 16.27 6.49
S&P/ASX 300 Property Accumulation Index (1.58) 3.04 4.96 11.61 16.17 7.03
Added Value (0.26) (0.43) 0.03 1.05 0.10 (0.54)
             
UBS Clarion Global Property Securities Fund 0.12 6.69 5.30 11.42 24.52 4.04
UBS Global Real Estate Investors Net Return Index (hedged to AUD) (0.14) 6.94 4.21 11.62 26.22 3.58
Added Value 0.26 (0.25) 1.09 (0.20) (1.70) 0.46

UBS Fixed Income running yields Yield (%) Gross Yield (%) Net
As at 31 March 2014    
UBS Cash Fund 2.74 2.49
UBS Cash-Plus Fund 3.16 2.86
UBS Australian Bond Fund 3.77 3.32
UBS Diversified Fixed Income Fund 4.11 3.56
UBS Diversified Credit Fund 5.22 4.52

*Neutral: 15% UBS Australian Bank Bill Index; 10% UBS Australian Composite Bond Index 0+YR; 10% Barclays Global Aggregate Index ($A hedged); 30% S&P/ASX 300 Accumulation Index; 30% MSCI AC World Index ex Australia (in AUD); 5% FTSE EPRA NAREIT ($A hedged).

**Neutral: 15% UBS Australian Bank Bill Index; 25% UBS Australian Composite Bond Index 0+YR; 30% Barclays Global Aggregate Index ($A hedged); 5% S&P/ASX 300 Property Accumulation Index; 15% S&P/ASX 300 Accumulation Index; 10% MSCI AC World Index ex Australia (in AUD).

***Neutral: UBS Bank Bill Index 2%; UBS Treasury Index 8%; Citigroup WGBI ex Aust $A Hedged 10%; BarCap Global Credit Corp $A Hedged 5%; BarCap Global High Yield $A Hedged 3%; BarCap Global EM Markets $A Hedged 2%; S&P\ASX 300 Index 30%; MSCI AC World ex Aus Index A$ Hedged 35%; FTSE\EPRA NAREIT Index A$ Hedged 5%

^Neutral: UBS Bank Bill Index 4%; UBS Treasury Index 14%; Citigroup WGBI ex Aust $A Hedged 18%; BarCap Global Credit Corp $A Hedged 9%; BarCap Global High Yield $A Hedged 3%; BarCap Global EM Markets $A Hedged 2%; S&P\ASX 300 Index 23%; MSCI AC World ex Aus Index A$ Hedged 23%; FTSE\EPRA NAREIT Index A$ Hedged 4%

^*Neutral: UBS Bank Bill Index 2%; UBS Treasury Index 8%; Citigroup WGBI ex Aust $A Hedged 10%; BarCap Global Credit Corp $A Hedged 5%; BarCap Global High Yield $A Hedged 3%; BarCap Global EM Markets $A Hedged 2%; S&P\ASX 300 Index 30%; MSCI AC World ex Aus Index A$ Hedged 35%; FTSE\EPRA NAREIT Index A$ Hedged 5%