Effects of global diversification and currency hedging, January 1–July 15, 2016.

Source: UBS. Based on indicative gross performance. Annualized return over five years for UBS Manage™ Advanced [CH] “Growth” strategy with currency hedging, globally diversified: 3.5%. For illustration purposes only. The performance is shown prior to the deduction of management fees, is based on approximate figures, is indicative, and may differ from individual portfolios. These figures refer to the past, and past performance is not a reliable indicator of future performance. Please also note that these figures are limited to a very short period in the past. Mandate programs other than the examples listed above, or mandates in the same program but with another reference currency and/or investment strategy, exhibit different performance. You should take relevant professional advice before making investment decisions.

Our experts keep our clients' portfolios on track through analysis, strategy and discipline, based on our proven investment process:

  • Diversify globally: Over time, systematically diversified portfolios generate a higher risk-adjusted performance. Clients who currently select a focus on global equities will find that the UBS Manage™ [CH] strategy “Balanced” contains 17% Swiss equities. Even if the selected focus is on Swiss equities, the weighting of Swiss equities in the portfolio will never be greater than the current 29% (target allocation). 
    Bonds are also broadly diversified. For example, we are currently investing in government bonds that, over the medium term, and viewed in isolation as an investment class, offer few prospects, but act as a stabilizer and reduceclient losses.
  • Hedge foreign currencies: For most portfolios it pays to rigorously hedge currencies. This let us largely neutralize the sharp fluctuations in the British pound, for example. And finally ...
  • Stay invested: There’s a big temptation during uncertain times to forget the basics of investing and follow the herd. As a result, investments are sold over-hastily, leading to painful losses. The investment process of our UBS Manage™ solutions avoids this type of investment behavior, while striving to generate higher risk-adjusted returns over the long term.

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