UBS Currency Allocation Return Strategy

Investment objective

The UBS Currency Allocation Return Strategy ("CARS") is an active currency fund, investing across both developed and emerging market currencies.

The Fund seeks to generate a return of cash +10% p.a., at a long-term expected average risk of around 20%, over a full market cycle (3-5 years).  

Investment team

Jonathan Davies

Portfolio manager
Biography (PDF, 81 KB)

An in-depth investment approach

CARS has a valuation-led philosophy, complemented by an assessment of shorter-term market drivers. It takes a long-term approach to currency investing with a strong focus on risk and diversification. The Fund allocates risk capital typically across 10 relative value currency trades. These trades are predicated by investment themes derived from fundamental, quantitative and qualitative analysis.

An experienced team

CARS is managed by a team that draws on the global resources and comprehensive risk management of UBS Asset Management, who have managed currency as a separate investment strategy within multi asset portfolios for over 30 years. The Fund launched in December 2005, converting to an Irish domiciled UCITS vehicle in June 2014.

Reasons to recommend the Fund

  • The opportunity to deliver meaningful returns to clients, even in a low interest rate environment and irrespective of general market direction
  • The Fund has demonstrated negative correlation with equities (the primary source of risk in many multi-asset portfolios) since inception. In times of heightened market weakness, potentially offers a source of diversification and return
  • Almost zero correlation with bonds since inception
  • Accessible through a daily-dealing UCITS Fund structure

Would you like to find out more? Get in touch