The UBS Core-Satellite Investment Approach – stability, opportunity, flexibility

Building wealth is a dynamic process. The UBS Core-Satellite investment approach offers flexibility in structuring your portfolios to meet long-term goals as well as seize short-term opportunities

The UBS Core-Satellite Investment Approach - stability, opportunity, flexibility

Stability within the Core
The principle behind the UBS Core-Satellite investment approach is simple. You delegate the day-to-day management of the established part of your portfolio to us. This portfolio is attuned to your long-term strategic aims, comprising assets that reflect your appetite for risk. While day-to-day management of your portfolio is delegated to the bank, you keep control over the allocation of your core assets while we ensure that risk and return are optimally balanced in line with your investment goals.

Opportunity in the Satellites
The Satellites give you the opportunity to pursue independent or market-driven investment ideas. Once the core element has been established, you can use the satellite vehicles to take advantage of shorter-term opportunities. Satellite investments could include structured products, commodities, hedge funds, a single-stock holding, or real estate, among other assets. Working with your client advisor, you can decide how to allocate the satellite investments and the time horizon for each.

Planning for flexibility
We propose a tailor-made structure based on your long-term goals. The starting point for setting the right mix of asset classes for your portfolio is to understand your tolerance of risk and your long-term goals. Different asset classes are exposed to different levels of risk; for example, equities generally fluctuate more than bonds. Your risk profile may change with time, together with your personal circumstances. With this in mind, we work with you to review your risk profile regularly. After ascertaining your risk profile, we can recommend to you the portfolio that will generate the highest possible returns at a given level of risk. Naturally, your risk preferences and investment constraints are taken into account at all stages of this process.

How you benefit

  • Together, we maintain a long-term investment horizon to achieve performance of investment objectives, while still taking advantage of tactical market opportunities. You may invest subsets of your assets according to your risk requirements.
  • With UBS you have access to the investment expertise of a leading asset manager with global research capabilities and an international network of dedicated investment specialists.

For further information, please contact your Client Advisor.