UBS Targeted Return Fund

The Fund changed its sector on 30 November 2011 from the IA Cautious Managed Sector to the Specialist Sector.

Matt Bance

Strategist
Matt Bance

The investment objective and policy of the Fund is to seek to achieve a return above the UK Retail Price Index through a diversified portfolio of investments. The Fund will invest in a mix of assets including domestic and international equities and bonds, warrants, derivatives, money market instruments, deposits, cash of near cash, and units in collective investment schemes in varying proportions at the ACD's discretion. There are no geographical restrictions on the countries of investment.

The Fund has two key components that are the main drivers of performance:

  • An invested, actively managed multi-asset portfolio with a bias to assets with high active selection opportunities, such as equities
  • A derivatives overlay (typically via futures, currency forwards and swaps) designed to remove unwanted market risk and allow tactical asset allocation views to be expressed efficiently.

The Fund's objective means that in times of strong market appreciation, the Fund may not produce a return obtained by investing in a traditional equity fund. With a corresponding stock market decline, any fall in value of the Fund will potentially also not be as marked as with an investment in a traditional equity fund.

Past performance is not a guide to future performance. Changes in rates of exchange may cause the value of this investment to fluctuate. The Fund's objective means that in times of strong stock market appreciation, the Fund may not produce a return obtained by investing in a traditional equity fund. With a corresponding stock market decline, any fall in value of the Fund will potentially also not be as marked as with an investment in a traditional equity fund. The Fund has the ability to invest over 35% of its value in public securities issued/guaranteed by, or on behalf of, the UK Government (which include the Scottish Administration, the Executive Committee of the Northern Ireland Assembly and the National Assembly of Wales) or Australia, Austria, Belgium, Brazil, Canada, Chile, China, Denmark, Egypt, Finland, France, Germany, Greece, Hong Kong, Indonesia, India, Ireland, Israel, Italy, Japan, Malaysia, Mexico, Netherlands, New Zealand, Norway, Peru, Philippines, Poland, Portugal, Russia, Singapore, South Korea, South Africa, Spain, Sweden, Switzerland, Thailand, Taiwan, Turkey, United States, and by the following public international bodies: US Federal Government (Treasuries and TIPs) and Government National Mortgage Association (GNMA). The Fund will use derivatives as part of its investment capabilities. This allows it to take 'short positions' in some investments and we can sell a holding we do not own, on the anticipation that its value will fall. These instruments carry a material level of risk and the Fund could potentially experience higher levels of volatility should the market move against them. In order to trade in derivative instruments we enter into agreements with various counterparties. Whilst we assess the credit worthiness of each counterparty we enter into an agreement with, the Fund is at risk if that counterparty does not fulfil its obligations under the agreement.