Proper diversification and risk management are the essential elements of a sound investment strategy. When properly implemented in a portfolio, nontraditional investments can help lower overall portfolio risk and potentially increase returns.
UBS Financial Advisors have access to a wide array of nontraditional investments, including:
These instruments traditionally include hedge funds, managed futures, private equity and real estate funds. Because their returns generally do not closely track those of the broader stock market, these instruments can provide increased portfolio diversification.
Structured investments are ﬂexible ﬁnancial instruments that generally combine many of the characteristics of a bond with certain features and risks of the structured investment’s underlying asset. Like a bond, a structured investment is issued by a corporation, usually an investment grade ﬁnancial company, and is subject to the credit risk of the issuer. Unlike a bond, a structured investment is linked to an underlying asset and may oﬀer some, all or none of the upside growth as well as some, all or none of the downside market risk of the underlying asset. Regardless of its features, all payments on a structured investment are made by its issuer, and if the issuer is unable to pay its obligations when due, investors may lose some or all of their investment. When properly incorporated into your portfolio, these investments can oﬀer the opportunity to reduce market risk, enhance potential yield or market-based returns and diversify exposure. For additional information on structured investments risks, please visit: www.ubs.com/spkeyrisks.
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Important information about brokerage and advisory services.
As a firm providing wealth management services to clients, UBS Financial Services Inc. offers investment advisory services in its capacity as an SEC-registered investment adviser and brokerage services in its capacity as an SEC-registered broker-dealer. Investment advisory services and brokerage services are separate and distinct, differ in material ways and are governed by different laws and separate arrangements. It is important that you understand the ways in which we conduct business, and that you carefully read the agreements and disclosures that we provide to you about the products or services we offer. For more information, please review client relationship summary provided at ubs.com/relationshipsummary, or ask your UBS Financial Advisor for a copy.