UBS Asset Management Canada

The information on this page is meant for Investment Advisers. This website is not designed for the purpose of providing personal financial or investment advice. Nothing on the this website should be construed as a solicitation or offer, or recommendation, to acquire or dispose of any investment or to engage in any other transaction. Information provided does not take into account your particular investment objectives, financial situation or investment needs. Unitholders should discuss all matters relating to the Trust with their Investment Adviser.

The materials in the web links under Fund Highlights and Strategy Update may utilize materials which are based on a U.S. investment strategy that may be different with the strategy employed for the Trust (e.g., no Canadian dollar currency exposure).

Any reference to historical investment performance is for information purposes only and is not indicative of future performance.


UBS (Canada) Small Capitalization Fund

The Small Capitalization Fund is invested in shares of smaller Canadian corporations. Generally, these are companies operating in new industries with new ideas or products. We typically focus on those that have been in the business long enough to have an established track record.

Investment strategy

Investment strategy

The Fund favours companies with strong management, strong balance sheets, an above average ROE and solid competitive strengths that can be purchased at an attractive price relative to earnings growth expectations. The Manager conducts fundamental research on a company’s financial condition, industry position, and its history and outlook for earnings and cash flow. We believe that quality of management is critical and therefore conduct management interviews and plant tours prior to making a purchase decision. Core holdings are companies which operate in strong and dynamic industries, and have the ability to finance growth through internally-generated cash flows.



Over short periods of time, expected returns from the stock market are largely unpredictable. Small capitalization stocks are perceived to have greater potential for future growth than that of large cap, “blue chip” stocks. Coupled with the potential for greater reward however, is higher risk. While established companies may experience downturns, it is possible that new or small ventures may not survive a slowdown in the business cycle.

Annual returns for Canadian small cap stocks have varied between -45 and +48 per cent since 1987.



The Fund is suited for investors with a long-term outlook (minimum 5 to 10 years). Historically, investors willing to accept the higher short-term risk in the stock market have been rewarded with higher long-term returns (compared to less risky investments).