Manage risk. Maximize opportunities.

Questions you can ask your UBS Financial Advisor

  • How can I potentially take advantage of positive market returns while looking to manage risks to my portfolio from market downturns?
  • What role should equity stocks play in my overall investment strategy?

Stock markets are at an all-time high, but many investors are still concerned about a potential downturn. At the same time, some investors also fear missing out on gains if markets continue to rise.1 So how do you navigate this dynamic environment and build a diversified portfolio that seeks to manage stock (or equity) exposure risk during market shifts?

UBS has introduced the UBS Systematic Allocation Portfolio (SAP) separately managed account strategy. Driven by input from a proprietary quantitative model —the UBS World Equity Market Model (WEMM)—SAP's strategy seeks to manage equity risk exposure when markets are trending down and increase exposure when markets are trending up—helping you to manage risk in equities while potentially allowing you to participate in gains.

It also seeks to evaluate equity risk as economic and market environments change over time. Some of the key features include:

  • Larger stock and bond allocation changes (approximately 10%-40% swings vs. 1%-2% in many portfolios)
  • Allocation changes that are heavily weighted to manage exposure during a downturn—i.e., the portfolio’s reduction in equities is twice as large as its increase
  • By looking to de-risk significantly in negative risk environments, the portfolio may reduce the amount of drawdowns, allowing investors to stay fully invested through all market conditions.

To more fully understand the potential benefits, fees and investment risks of SAP, please read our whitepaper(PDF, 1010 KB).

Is your investment strategy optimized to navigate equity market shifts? Together we can find an answer. Connect with your UBS Financial Advisor or find one.

Disclosures

UBS Financial Services Inc. is registered with the U.S. Securities and Exchange Commission (SEC) as an investment adviser and a broker-dealer. UBS Financial Services Incorporated of Puerto Rico is registered as a broker-dealer.

The SAP Strategy is available through the ACCESS (SM) Program, ACCESS (SM) is a wrap fee, advisory program in which affiliated and non-affiliated investment managers manage client accounts on a discretionary basis. The program is designed for clients who (i) want to delegate portfolio management discretion to a third party manager; (ii) are looking to implement a medium to long-term investment plan; and (iii) prefer the consistency of fee-based pricing.

For more information about the Program, including fees, client suitability and program features, please see the Firm's Wrap Fee ADV Disclosure Brochure and the client agreement. Please review the SAP materials carefully for a description of the fees, features and risks associated with investing in the strategy. Investing carries the risk of loss of some or all your investment.

As a firm providing wealth management services to clients, we offer both investment advisory and brokerage services. Advisory services and brokerage services are separate and distinct, differ in material ways and are governed by different laws and separate contracts. It is important that you carefully read the agreements and disclosures UBS provides to you about the products or services offered. For more information, please visit our website at ubs.com/workingwithus.