One-stop solution for investing in China

UBS China Allocation Opportunity Fund

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Capture China's growth opportunity through a risk-aware approach

China offers numerous investment opportunities, yet is complex. A multi asset portfolio can navigate through market cycles and capture opportunities in different asset classes. 

As of end Oct 2020

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Fund features

1. One-stop solution

A unique multi-asset China fund that balances between asset classes and onshore as well as off shore assets.

A multi-asset strategy has historically been much less volatile than most pure equity strategies, which may make it suitable for investors who would like to capture China's growth story, but who would like an easier ride. Additionally, allocating to China fixed income means exposure to the higher nominal yields.

2. Dynamic asset allocation

Five levers to steer asset allocation to serve as a diversifier to achieve a strong risk-adjusted return profile.

Active asset allocation matters when investing in China. Here's why.

  1. Chinese stocks are relatively volatile. A risk-aware balanced investment approach allows investors to access Chinese growth and income with less volatility of the equity markets.
  2. there is limited diversification benefit between Chinese bonds and equities. Hence, dynamically moving in and out of risk assets in different market environments helps to achieve better risk-adjusted returns.

3. Consistent risk-adjusted performance

Consistent performance with lower volatility.

More awards & recognition

Performance (in USD, %)

Performance (in USD, %)

Cumulative returns

Cumulative returns

Peer group quartile

Peer group quartile

Performance (in USD, %)

YTD

Cumulative returns

10.68

Peer group quartile

3

Performance (in USD, %)

1 year

Cumulative returns

15.73

Peer group quartile

3

Performance (in USD, %)

3 years

Cumulative returns

29.08

Peer group quartile

1

Performance (in USD, %)

Since inception

Cumulative returns

42.48

Peer group quartile

1

Source: UBS Asset Management, Morningstar. Data as of 31 October 2020. Performance is calculated on NAV to NAV basis, with dividend reinvested, based on P-acc (USD). Performance shown is net of fees. UBS (Lux) Key Selection SICAV – China Allocation Opportunity (USD) fund inception date: 8 June 2015. Annual performance of UBS (Lux) Key Selection SICAV – China Allocation Opportunity (USD) P-acc: 2015 since inception (-11.61%), 2016 (2.05%), 2017 (25.84%), 2018 (-10.70%), and 2019 (27.00%). YTD: Year-to-date (since beginning of the year). Peer group: Greater China allocation

Past performance is not indicative of future results.

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Important information

UBS (Lux) Key Selection SICAV –China Allocation Opportunity (USD)

1. The Fund, UBS (Lux) Key Selection SICAV – China Allocation Opportunity (USD) (”UBS China Allocation Opportunity Fund”), primarily invests in both onshore and off shore China-related equity and fixed income securities are subject to market volatility. The performance of the Sub-Fund with an asset allocation strategy is partially dependent on the success of the asset allocation strategy employed by the Sub-Fund at any particular time.

2. China is considered as an emerging market and investing in China may subject the Sub-Fund to higher economic, political, social, legal and regulatory risks than more developed economies or markets. Investments in China may also be less liquid and more volatile. The Sub-Fund invests primarily in securities related to the China market and may be subject to additional concentration risk. The China debt securities market may be subject to higher volatility compared to more developed markets. The prices of securities traded in such market may be subject to fluctuations.

3. Derivatives may be used to gain or reduce exposure to markets and currencies as well as to manage risk. The use of derivative positions to hedge the risk of physical securities will involve “basis risk”, hence cannot always be expected to perfectly hedge the risk of the physical security.

4. Under extreme market conditions and circumstances, investment in the Fund may potentially result in total loss of investment.

5. Specifically for the share classes with “-mdist” and “6%-mdist” in their name, the Fund may at the discretion of the Management Company make distributions out of capital or out of gross income while charging/paying all or part of the Fund’s fees and expenses to/out of capital of the Fund, resulting in an increase in the payment of dividends by the Fund. Payment of dividends out of capital or on a gross-of-fee basis may result in an immediate reduction of the net asset value per share.

6. The constant distribution share classes (i.e. share classes with “6%-mdist” in their name) continue to distribute in periods that the Fund has negative return/is making losses which further reduces the NAV of the Fund. In extreme circumstances, investors may not be able to get back the original investment amount.

7. Investors should not invest in the Fund solely based on this document and should read the relevant offering document.

8. Any distributions from the income and/or involving the Capital result in an immediate reduction of the net asset value per share of the Fund. Payment of dividends out of capital amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment.