Multi-asset innovation

UBS has brought together two great minds to build a singular strategy.

Roger Ibbotson and Jim Rogers share a legacy of innovation and a common- sense market outlook. Each of these market pioneers has a distinct perspective and unique approach that complements the other.

  • Jump to One unique multi-asset strategy
  • Jump to Step 1: Set the Tilt
  • Jump to Step 2: Factor In Fixed Income
  • Jump to Step 3: Keep Equity/Commodity Volatility in Check
  • Jump to Step 4: Keep Total Portfolio Volatility in Check
  • Jump to Put these pioneers to work for you today.

One unique multi-asset strategy from two renowned investors

A generic square placeholder image of Roger Ibbotson, PhD .
Roger Ibbotson, PhD
A generic square placeholder image of Jim Rogers.
Jim Rogers
UBS Market Pioneers IndexThe UBS Market Pioneers Index unites the NYSE Zebra Edge U.S. Equity Index and the Jim Rogers Global Consumer Commodities Index. UBS MarketPioneers Index NYSE Zebra Edge U.S. Equity Index Jim Rogers Global Consumer Commodities Index™
A generic square placeholder image of Jim Rogers.
Jim Rogers

Image sources: Jim Rogers: James Williams, Face to Face, FT.com, 01 April 2016. Roger Ibbotson:Sophia Grene, Face to Face, FT.com, 04 March 2016 © The Financial Times Limited 2016. All Rights Reserved.


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UBSMPI

Previous day closing level:

285.2337

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Index overview

Multi-asset indexing strategies can provide individuals in and near retirement with ways to address some of their key concerns, including managing short-term market volatility, capturing harder-to-find excess return, and keeping ahead of inflation.

By combining two specialized strategies, the UBS Market Pioneers Index ("the Index") seeks to address these concerns. The underlying strategies consist of two complementary component indices, one that invests in equities, the other in commodity futures. In addition, the Index includes exposure to fixed-income when the Index’s equity and commodity volatility targets are exceeded.

The UBS Market Pioneers Index is a "long only" strategy with a total return objective, and it seeks to provide above-average returns with lower volatility over the long term.

Equity component

The NYSE Zebra Edge US Equity Index is an equal-weight, large-cap stock index. It is based on award-winning research by Roger Ibbotson, founder of Zebra Capital Management*. His premise is simple: don't chase hot stocks – boring is better.

Popular stocks are stocks with high turnover—names that are experiencing their "15 minutes of fame." Analyzing decades of market data1, Ibbotson found that:

  • More popular names historically have higher valuations relative to their fundamentals, but lower expected returns
  • Less popular names have performed better and provided more stable price returns over time
  • Investment strategies have benefitted from systematically removing popular and overly volatile stocks from their portfolios

Commodity component

Unlike many other commodities strategies, which may focus on production or supply, Jim Rogers looks at global consumption patterns.

Why focus on consumption? In simple economic terms, when supply goes up, prices go down if demand remains constant. If demand increases, then prices will go up when supply is constant or falling. This approach is primed to take advantage of dramatic increases in global consumption, especially within fast-growing emerging economies.

A three part index construction methodology:

  • Global: Broad-based exposure to both developed and developing economies
  • Diversified: A basket of 27 commodities consumed in the global economy across livestock, agriculture, energy and metals
  • Transparent and liquid: The value of using rolling exchange-traded futures contracts on physical commodities

Fixed-income component

Fixed-income exposure is implemented using a tactical trend-following US 10-Year Treasury Futures Strategy.

Selected risk considerations