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.
- 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.
- 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.
Performance (in USD, %) | Performance (in USD, %) | Cumulative returns | Cumulative returns | Peer group quartile | Peer group quartile |
|---|---|---|---|---|---|
Performance (in USD, %) | YTD | Cumulative returns | -1.28 | Peer group quartile | 1 |
Performance (in USD, %) | 1 year | Cumulative returns | 10.66 | Peer group quartile | 1 |
Performance (in USD, %) | 3 years | Cumulative returns | 26.51 | Peer group quartile | 1 |
Performance (in USD, %) | Since inception | Cumulative returns | 27.08 | Peer group quartile | 1 |
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Important information
UBS (Lux) Key Selection SICAV –China Allocation Opportunity (USD)
- 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.
- 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.
- 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.
- Under extreme market conditions and circumstances, investment in the Fund may potentially result in total loss of investment.
- 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.
- 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.
- Investors should not invest in the Fund solely based on this document and should read the relevant offering document.
- 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.
