UBS Asset Management in Canada

Investment opportunities referred to are available in Canada only to Accredited Investors who qualify as Permitted Clients.

The manager of the Fund referred to in the investment profile may not be registered in any Canadian province or territory to act as an investment fund manager. The manager's directors and officers may be located outside of Canada and, as a result, it may not be possible for Canadian purchasers to effect service of process within Canada upon the Fund or such persons. All or a substantial portion of the assets of the Fund may be located outside of Canada and, as a result, it may not be possible to satisfy a judgment against the Fund in Canada or to enforce a judgment obtained in Canadian courts against the Fund, outside of Canada. If the manager of the Fund is located outside of Canada, then UBS Asset Management (Canada) Inc. will act as the agent for service of process of the manager in Canada. UBS Asset Management (Canada) Inc. is located at 161 Bay Street West, Suite 4100, Toronto, Ontario, M5J 2S1.

UBS Asset Management services offered to Canadian persons are provided by UBS Asset Management (Canada) Inc., a Nova Scotia corporation. UBS Asset Management (Canada) Inc. is an indirect wholly-owned subsidiary of UBS AG and is registered as a portfolio manager and exempt market dealer (in all provinces of Canada), commodity trading manager (Ontario), adviser – commodity futures (Manitoba) and investment fund manager (Ontario, Quebec and Newfoundland), all pursuant to Canadian securities law. Materials may include forward-looking statements. Actual future results, however, may prove to be different from expectations. Past performance is no guarantee of future results. Potential for profit is accompanied by possibility of loss.

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Active equities

Active Equities

We offer a broad range of equity strategies across the style spectrum and with varying return and risk objectives, all developed to meet our clients' needs. Country, regional and global strategies are available to retail/wholesale and institutional clients worldwide.

Clients can select from this broad array of equity strategies to arrive at the solution that best meets their investment goals and style preferences.

Investment strategies

Benchmark

MSCI China A (net)

Objective

The China A Equity strategy is a pure equity portfolio, investing mainly in China A-shares, built with a distinctive investment philosophy that focuses on intrinsic value. Our goal is to provide access to the Chinese A-share equity market in a sustainable and risk-controlled manner. The strategy invests for the long term.

Investment philosophy and process

We combine the secular growth story with a relentless focus on value. Each analyst focuses on specific sector(s) and identifies stocks with a significant discount to their intrinsic values, winnowing down the investment universe in several steps. Portfolio candidates are debated and discussed between analysts and portfolio manager through a peer review process. This results in a tightly controlled yet diversified portfolio of 20 to 60 high-conviction plays, opening up a source of true alpha for investors in China. Risk is integral to the process and all portfolios are monitored to avoid uncompensated risks.

Benchmark

MSCI China (r)

Objective

The China Equity Opportunity strategy is a pure equity portfolio, built with a distinctive investment philosophy that focuses on intrinsic value. Our goal is to provide access to the Chinese equity market in a sustainable and risk-controlled manner. The strategy invests for the long term.

Investment philosophy and process

We combine the secular growth story with a relentless focus on value. Each analyst focuses on specific sector(s) and identifies stocks with a significant discount to their intrinsic values, winnowing down the investment universe in several steps. Portfolio candidates are debated and discussed between analysts and portfolio manager through a peer review process. This results in a tightly controlled yet diversified portfolio of 40 to 70 high-conviction plays, opening up a source of true alpha for investors in China. Risk is integral to the process and all portfolios are monitored to avoid uncompensated risks.

Benchmark

Local currency cash return

Objective

The strategy seeks to deliver six to ten percent net return per annum with volatility of less than 12 percent over a full market cycle. It looks to preserve and grow capital with low correlation to the equity market.

Investment philosophy and process

Our approach is rooted in a 30-year history of price-to-intrinsic value investing, supported by rigorous fundamental equity research and valuation work undertaken by our analyst healthcare research team. These career analysts possess a deep understanding of the companies and industries within their coverage and rank each stock using a discounted cash flow approach. The rankings form the basis of the portfolio construction process.

Benchmark

Custom EME Benchmark

Objective

The Emerging Markets Equity strategy seeks to outperform the custom EME benchmark by 500 basis points (gross of fees) on an annualized basis, with active risk of up to 12 percent over a full market cycle, typically three to five years.

Investment philosophy and process

We believe that a high-conviction portfolio, which exploits the inefficiencies uncovered through a long-term price to intrinsic value methodology, provides the opportunity to maximize alpha. Our estimate of intrinsic value is determined by the fundamentals that drive a company’s future cash flow. Our focus is on valuations and quality (industry structure, profitability and corporate governance) as we invest for the long-term benefit of our clients.

Our process begins with research conducted by the analysts, based on our investment philosophy. Our objective is to develop unique insights that enable us to have a clearly differentiated investment thesis against the consensus in the market. An important part of this is our ability to seek out unconventional sources of information. Not only do we talk to the companies we invest in directly, we also engage with suppliers, competitors and other industry experts. This deeper research and a longer investment horizon can uncover more opportunities to add value for our clients. Risk is integral to the process and all portfolios are monitored to avoid uncompensated risk.

It is the role of the lead portfolio manager, Urs Antonioli, to take the best ideas of the analysts and construct a portfolio that best meets the client objectives. Final portfolio decisions are made by the Portfolio Construction Committee, chaired by Geoffrey Wong. For each proposed stock the associated analyst is directly involved in the decision-making process and held accountable for its success in the portfolio.

Benchmark

MSCI Emerging Markets (net) (in USD)

Objective

The Emerging Markets Equity HALO strategy seeks to outperform the MSCI Emerging Markets benchmark by 500 basis points (gross of fees) on an annualized basis, with active risk of up to 12 percent over a full market cycle, typically three to five years.

Investment philosophy and process

We believe that a high-conviction portfolio, which exploits the inefficiencies uncovered through a long-term price to intrinsic value methodology, provides the opportunity to maximize alpha. Our estimate of intrinsic value is determined by the fundamentals that drive a company’s future cash flow. Our focus is on valuations and quality (industry structure, profitability and corporate governance) as we invest for the long-term benefit of our clients.

Our process begins with research conducted by the analysts, based on our investment philosophy. Our objective is to develop unique insights that enable us to have a clearly differentiated investment thesis against the consensus in the market. An important part of this is our ability to seek out unconventional sources of information. Not only do we talk to the companies we invest in directly, we also engage with suppliers, competitors and other industry experts. This deeper research and a longer investment horizon can uncover more opportunities to add value for our clients. Risk is integral to the process and all portfolios are monitored to avoid uncompensated risk.

It is the role of the lead portfolio manager, Urs Antonioli, to take the best ideas of the analysts and construct a portfolio that best meets the client objectives. Final portfolio decisions are made by the Portfolio Construction Committee, chaired by Geoffrey Wong. For each proposed stock the associated analyst is directly involved in the decision-making process and held accountable for its success in the portfolio.

Benchmark

MSCI Emerging Markets (net)

Objective

The Emerging Markets Sustainable Equity strategy seeks to identify high long-term capital growth companies that provide products and services with a clear environmental and social benefit along with a high degree of resource efficiency. These tend to be young fast growing companies that address the sustainability challenges of the 21st century in emerging markets. These include UN Millennium Goals such as:

  1. Eradication of extreme poverty and hunger
  2. Achieve universal primary education
  3. Combat HIV/AIDS, malaria and other diseases
  4. Ensure environmental sustainability

The portfolio manager seeks to manage exposure to value and growth using a blended style (i.e. style agnostic), which can vary in emphasis depending on the phase of the market cycle. The strategy is benchmarked to the MSCI Emerging Markets Index with an ex-ante tracking error of up to 10 percent.

Investment philosophy and process

The Emerging Markets Sustainable Equity strategy applies a positive selection approach to identify companies that make positive contribution and address large and growing environmental (e.g. "climate change", "water") and social related challenges ("social development"). The strategy targets pure play, quality companies offering products, services and solutions with clear environmental benefits and a high degree of resource efficiency in sectors whose growth potential, in our opinion, has been underestimated by the market. "Climate change" covers the subsectors of cleaner energy & mobility, renewable & energy efficiency, waste & recycling. "Water" reflects utility, technology & infrastructure, treatment and efficiency. The third theme "social development" divides into healthcare products & operations, access to finance, access to communication, affordable housing, reduction of healthcare costs, nutrition as well as education.

Our investment process relies on the identification of potential investment opportunities through qualitative and quantitative disciplines that are then subjected to intensive fundamental research to select the best ideas for the strategy. In determining the attractiveness of a stock we may also utilize qualitative research from a relatively small number of specialist sources which have been developed over a long time period and have a history of adding value. These external sources complement and challenge our internal research findings.

Benchmark

MSCI World Free ex-US

Objective

The Global Sustainable (ex-US) Equity strategy seeks to provide value-added investment results over the MSCI World Ex-US Index by investing in attractively valued companies with strong fundamental valuation, as well as a long-term sustainable business model. The strategy is actively positioned to benefit from themes such as water and energy conservation, demographics and other important trends. In short, we believe that combining a traditional valuation discipline with sustainability analysis enhances the possibilities for value-added returns.

Investment philosophy and process

Our investment philosophy and process combine our bottom-up fundamental research with rigorous sustainability analysis. We actively look for companies that appear attractively valued and can benefit from secular themes, such as energy and water conservation, health care, demographics and other long-term trends. Sustainability has emerged as, arguably, the largest growing consideration as companies look to achieve long-term viability and profitability. Shareholders own much more than a company’s financial statement - they have invested in its management, buildings, employees, culture, regulatory environment, governance and brand equity. We look at the whole picture when making investment decisions.

Our fundamental research is driven by a global team of experienced analysts. They focus on deep non consensus research and cash flow modeling that seek to define a security’s intrinsic value based on its future cash flows. We use a companywide, proprietary valuation model to make our projections as comparable as possible. Through this process, we aim to identify the best investment ideas across sectors and geographies from a stock specific standpoint. This component of the process provides strong traditional valuation support to our stock selection strategy.

The Sustainable Investors team integrates these inputs into a best-ideas portfolio of stocks that it believes are attractively valued and have a strong sustainability profile. In doing so, the Team draws upon its members’ years of experience and utilizes the firm’s proprietary risk management tools.

Benchmark

MSCI World Index (unhedged)

Objective

The Global Equity strategy seeks to outperform the MSCI World Index (unhedged) with similar risk.

Investment philosophy and process

Our core belief is that companies have an intrinsic value that is determined by their discounted cash flows. Market prices can be significantly different from intrinsic value, driven by investor behavior or inability to correctly estimate future cash flows. Our process is designed to seek to take advantage of these opportunities. Cash flow-based valuation therefore forms the bedrock of our investment approach.

Benchmark

MSCI World Free ex USA (netUS)

Objective

The Global Equity Ex-US strategy seeks to outperform the MSCI World ex-USA Index (unhedged) with similar risk.

Investment philosophy and process

Our core belief is that companies have an intrinsic value that is determined by their discounted cash flows. Market prices can be significantly different from intrinsic value, driven by investor behavior or inability to correctly estimate future cash flows. Our process is designed to seek to take advantage of these opportunities. Cash flow-based valuation therefore forms the bedrock of our investment approach.

Benchmark

MSCI World (N)

Objective

The Global Sustainable Equity strategy seeks to provide value-added investment results over the MSCI World Index by investing in attractively valued companies with strong fundamental valuation, as well as a long-term sustainable business model. The strategy is actively positioned to benefit from themes such as water and energy conservation, demographics and other important trends. In short, we believe that combining a traditional valuation discipline with sustainability analysis enhances the possibilities for value-added returns.

Investment philosophy and process

Our investment philosophy and process combine our bottom-up fundamental research with rigorous sustainability analysis. We actively look for companies that appear attractively valued and can benefit from secular themes, such as energy and water conservation, health care, demographics and other long-term trends. Sustainability has emerged as, arguably, the largest growing consideration as companies look to achieve long-term viability and profitability. Shareholders own much more than a company’s financial statement --- they have invested in its management, buildings, employees, culture, regulatory environment, governance and brand equity. We look at the whole picture when making investment decisions.

Our fundamental research is driven by a global team of experienced analysts. They focus on deep non consensus research and cash flow modeling that seek to define a security’s intrinsic value based on its future cash flows. We use a companywide, proprietary valuation model to make our projections as comparable as possible. Through this process, we aim to identify the best investment ideas across sectors and geographies from a stock specific standpoint. This component of the process provides strong traditional valuation support to our stock selection strategy.

The Sustainable Investors team integrates these inputs into a best-ideas portfolio of stocks that it believes are attractively valued and have a strong sustainability profile. In doing so, the Team draws upon its members’ years of experience and utilizes the firm’s proprietary risk management tools.

Benchmark

UBS Greater China Index (comb)

Objective

The Greater China Equity strategy is a pure equity portfolio built with a distinctive investment philosophy that focuses on intrinsic value. Our goal is to provide access to the Chinese equity market in a sustainable and risk-controlled manner. The strategy invests for the long term, with a focus in Hong Kong, Taiwan and offshore-listed China equities.

Investment philosophy and process

With the Greater China Equity strategy, we combine the secular growth story with a relentless focus on value. Each analyst focuses on specific sector(s) and identifies stocks with a significant discount to their intrinsic values, winnowing down the investment universe in several steps. Portfolio candidates are debated and discussed between analysts and portfolio manager through a peer review process. This results in a tightly controlled yet diversified portfolio of 60 to 100 high-conviction plays, opening up a source of true alpha for investors in Greater China. Risk is integral to the process and all portfolios are monitored to avoid uncompensated risks.

Benchmark

Russell 1000

Objective

The objective of the US Equity Large Cap strategy is to seek to outperform the Russell 1000 Index by 200 to 250 basis points (gross of fees) on an annualized basis, with similar risk. The portfolio is diversified across a range of large- and mid-capitalization stocks within the US equity market.

Investment philosophy and process

Our investment research seeks to identify discrepancies between a security’s intrinsic value and its observed market price. For each stock under our analysis, we discount to the present all future cash flows that we believe will accrue to an investor, incorporating our analyst team’s considerations of company management, competitive advantage and each company’s core competencies. These value estimates are then compared to current market prices and ranked against the other stocks in our valuation universe. The portfolio is constructed by selecting from only those stocks that rank as attractive on a price-to-intrinsic-value basis, with consideration given to market sensitivity, common factor exposures and industry weightings.

Benchmark

Russell 1000 Growth Index 

Objective

The US Equity Large Cap Select Growth strategy seeks to outperform the Russell 1000 Growth Index by 300 basis points over a full market cycle (gross of fees), typically three to five years, with similar risk. The portfolio is diversified across securities with market capitalizations equal to or greater than USD 2.5 billion, or which are included in the benchmark.

Investment philosophy and process

Our US Equity Large Cap Select Growth portfolios invest in strong business models at prices that we believe do not reflect the duration and/or magnitude of our estimates of the future growth of free cash flow. Characteristics of such businesses typically include a high return on invested capital, pricing power and market share gains. These companies often possess a dominant market position, propriety technologies or a unique competitive advantage. Our internal research focuses on understanding the duration of a company’s competitive advantage and the capital return potential of that investment relative to other opportunities available in our universe.

Benchmark

Russell 200 Growth

Objective

The US Equity Small Cap Growth (US Domiciled strategy seeks to outperform the Russell 2000 Growth Index by 300 basis points per annum over a full market cycle (gross of fees) with similar risk. The portfolio is diversified across securities with market capitalizations below USD 4 billion at time of purchase.

Investment philosophy and process

Our philosophy is based on generating competitive long-term returns by investing in companies with strong business franchises that generate rapidly rising earnings, and controlling risk through diversification and attention to reasonable valuations.

Our investment process relies on quantitative screens and intensive fundamental research to identify rapidly growing companies with strong business franchises and a proven record of achievement. The team considers direct contact with company management to be an essential part of its research effort, initiating over 600 contacts with management each year. Portfolios are constructed and monitored with close adherence to risk management and client guidelines.

Benchmark

S&P 500 Index

Objective

The US Sustainable Equity strategy seeks to provide value-added investment results over the S&P 500 Index by investing in attractively valued companies with strong fundamental valuation, as well as a long-term sustainable business model. The strategy is actively positioned to benefit from themes such as water and energy conservation, demographics and other important trends. In short, we believe that combining a traditional valuation discipline with sustainability analysis enhances the possibilities for value-added returns.

Investment philosophy and process

Our investment philosophy and process combine our bottom-up fundamental research with rigorous sustainability analysis. We actively look for companies that appear attractively valued and can benefit from secular themes, such as energy and water conservation, healthcare, demographics and other long-term trends. Sustainability has emerged as, arguably, the largest growing consideration as companies look to achieve long-term viability and profitability. Shareholders own much more than a company’s financial statement – they have invested in its management, buildings, employees, culture, regulatory environment, governance and brand equity. We look at the whole picture when making investment decisions.

Our fundamental research is driven by a team of experienced career analysts. They focus on deep non consensus research and cash flow modeling that seek to define a security’s intrinsic value based on its future cash flows. We use a companywide, proprietary valuation model to make our projections as comparable as possible. Through this process, we aim to identify the best investment ideas across sectors from a stock-specific standpoint. This component of the process provides strong traditional valuation support to our stock selection strategy.