UBS Defensive Investment Fund aims to provide investors with a total return (after management costs) in excess of its Neutral Allocation, over rolling five year periods. The Fund may maintain its asset allocation to differing asset classes anywhere within the allowable range, consistent with the risk and return objectives indicated above. The Fund normally gains its asset sector exposure by investing in other relevant UBS managed funds and third-party funds either directly or indirectly through a range of instruments. It may also invest directly in securities. Derivatives may also be used to gain or hedge exposure to securities, markets, asset classes and currencies. The long term neutral (or average) exposure to traditional growth and income assets is expected to be around 30% and 60% respectively of the total portfolio. The remaining 10% is expected to be allocated on average to various alternative asset strategies which are likely to provide a combination of both income and growth potential.
After fees and expenses, the portfolio returned -2.57% (gross of fees return of -2.50%) in September which underperformed its benchmark of -2.16% by 41bps. At the end of September, the Fund’s equity weight was 1.9% overweight relative to the benchmark.
Foreign currency exposure was at 15.5% with key underweights in NZD, CNH, GBP, CZK, TWD, and EUR as well as overweights in USD, BRL, JPY, COP, NOK, and MXN.
What is UBS Defensive Investment Fund UBS Defensive Investment Fund is an Managed Funds investment product that is benchmarked against Multi-Asset Moderate Investor Index and sits inside the Multi-Asset - 21-40% Diversified Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The UBS Defensive Investment Fund has Assets Under Management of 128.40 M with a management fee of 0.85%, a performance fee of 0 and a buy/sell spread fee of 0.15%.
How has the investment product performed recently?
The recent investment performance of the investment product shows that the UBS Defensive Investment Fund has returned 1.2% in the last month. The previous three years have returned -0.1% annualised and 4.72% each year since inception, which is when the UBS Defensive Investment Fund first started.
How is risk measured in this investment product?
There are many ways that the risk of an investment product can be measured, and each measurement provides a different insight into the risk present. They can be used on their own or together to perform a risk assessment before investing, but when comparing investments, it is common to compare like for like risk measurements to determine which investment holds the most risk. Since UBS Defensive Investment Fund first started, the Sharpe ratio is NA with an annualised volatility of 4.72%. The maximum drawdown of the investment product in the last 12 months is -2.3% and -13.75% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.
What is the relative performance of the investment product?
Relative performance is what an asset achieves over a period of time compared to similar investments or its peers. Relative return is a measure of the asset's performance compared to the return to the other investment. The UBS Defensive Investment Fund has a 12-month excess return when compared to the Multi-Asset - 21-40% Diversified Index of 1.15% and 0.04% since inception.
Does the investment product produce Alpha over its Peers?
Alpha is an investing term used to measure an investment's outperformance relative to a market benchmark or peer investment. Alpha describes the excess return generated when compared to peer investment. UBS Defensive Investment Fund has produced Alpha over the Multi-Asset - 21-40% Diversified Index of NA% in the last 12 months and NA% since inception.
What are similar investment products?
For a full list of investment products in the Multi-Asset - 21-40% Diversified Index category, you can click here for the Peer Investment Report.
What level of diversification will UBS Defensive Investment Fund provide?
UBS Defensive Investment Fund has a correlation coefficient of 0.95 and a beta of 1.21 when compared to the Multi-Asset - 21-40% Diversified Index. Correlation measures how similarly two investments move in relation to one another. This establishes a 'correlation coefficient', which has a value between -1.0 and +1.0. A 100% correlation between two investments means that the correlation coefficient is +1. Beta in investments measures how much the price moves relative to the broader market over a period of time. If the investment moves more than the broader market, it has a beta above 1.0. If it moves less than the broader market, then the beta is less than 1.0. Investments with a high beta tend to carry more risk but have the potential to deliver higher returns.
How do I compare the investment product with its peers?
For a full quantitative report on UBS Defensive Investment Fund and its peer investments, you can click here for the Peer Investment Report.
How do I compare the UBS Defensive Investment Fund with the Multi-Asset Moderate Investor Index?
For a full quantitative report on UBS Defensive Investment Fund compared to the Multi-Asset Moderate Investor Index, you can click here.
Can I sort and compare the UBS Defensive Investment Fund to do my own analysis?
To sort and compare the UBS Defensive Investment Fund financial metrics, please refer to the table above.
Has the UBS Defensive Investment Fund been independently verified by SMSF Mate?
This investment product is in the process of being independently verified by SMSF Mate. Once we have verified the investment product, you will be able to find more information here.
How can I invest in UBS Defensive Investment Fund?
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Comments from SMSF Mates
SMSF Mate does not receive commissions or kickbacks from the UBS Defensive Investment Fund. All data and commentary for this fund is provided free of charge for our readers general information.
Performance Commentary - August 31, 2023 After fees and expenses, the portfolio returned -0.09% (gross of fees return of 0.02%) in August which underperformed its benchmark of 0.27% by 36bps. At the end of August, the Fund’s equity weight was 2.6% overweight relative to the benchmark.
Foreign currency exposure was at 10.4% with key underweight in CNH, NZD, AUD, GBP, and EUR as well as overweight in MXN, JPY, BRL, COP and NOK.
Performance Commentary - July 31, 2023 After fees and expenses, the portfolio returned 1.39% (gross of fees return of 1.46%) in July which outperformed its benchmark of 1.04% by 35bps. At the end of July, the Fund’s equity weight was 2% overweight relative to the benchmark.
Foreign currency exposure was at 8.6% with key underweight in CNH, NZD, USD, GBP and EUR as well as overweight in MXN, JPY, BRL, AUD, COP and NOK.
Performance Commentary - June 30, 2023 After fees and expenses, the portfolio returned -0.28% (gross of fees return of -0.21%) in June which underperformed its benchmark of 0.05% by 33bps. At the end of June, the Fund’s equity weight was 2.9% overweight relative to the benchmark as we introduced an overweight position to equity in mid June.
Foreign currency exposure was at 8.8% with key underweight in CNH, NZDand USD as well as overweight in MXN, JPY, BRL and AUD.
Performance Commentary - May 31, 2023 After fees and expenses, the portfolio returned -1.62% (gross of fees return of -1.55%) in May which underperformed its benchmark of -0.78% by 84bps. At the end of May, the Fund’s equity weight was 0.3% overweight relative to the benchmark as we closed our directional underweight to equities at the end of the month. Foreign currency exposure was at 8.7% with key underweights in CNH, NZD, USD and overweight in AUD, JPY, MXN, and BRL.
Performance Commentary - March 31, 2023 After fees and expenses, the portfolio returned 1.07% (gross of fees return of 1.14%) in March which underperformed its benchmark of 1.47% by 40bps. At the end of March, the Fund’s equity weight was -3% underweight relative to the benchmark as we marginally increased the directional underweight to equities for downside protection, amid market turbulence brought by the negative news from financial sectors over the month.
Foreign currency exposure was at 9% with key underweights in USD, NZD, KRW and GBP and overweight in JPY, MXN, AUD, BRL and EUR.
Performance Commentary - February 28, 2023 After fees and expenses, the portfolio returned -1.64% (gross of fees return of -1.58%) in February which underperformed its benchmark of 1.08% by 56bps. At the end of February, the Fund’s equity weight was -1.4% underweight relative to the benchmark as we retained a small underweight to equities in aggregate throughout the month.
Foreign currency exposure was at 8.0% with key underweights in USD, GBP, NZD, EUR and KRW and overweight in JPY, MXN, AUD, NOK and BRL.
Performance Commentary - January 31, 2023 After fees and expenses, the portfolio returned 2.67% (gross of fees return of 2.75%) in January which underperformed its benchmark of 3.01% by 34bps. At the end of January, the Fund’s equity weight was -2.0% underweight relative to the benchmark as we retained a small underweight to aggregate equities at beginning of the month. Within equities, we retained our regional preference for the UK given its defensive value exposures, however the magnitude of overweight was reduced during the month as we saw incremental signals skewed towards a cyclical style.
At the same time, we brought Europe ex-UK equities to neutral from underweight, given better-than-expected macro data showing a more resilient economy and market in the Euro zone. We further added to our overweight position in China and emerging market equities as our convictions strengthened. We opened a cyclical trade to overweight US small cap against US large cap as a diversifier to the portfolio. US equities remained the largest underweight position in the portfolio in terms of regional allocation.
From an equity sector perspective, we retained our preference for defensive sectors such as healthcare, although size of the overweight was trimmed during the month. We also liked our position in energy equities and maintained exposure in broad commodities over the month. At the end of January, we had a marginal overweight in aggregate duration. We retained our preference for Canadian and Australian durations relative to the US on potentially diverging pace of rate hikes. We retained our overweight position in US IG credit and underweight in the 5-year point of the US treasury yield curve. We like the attractive yield pickup for the former trade while the latter reflected our bet on the steepening of this part of the curve.
We opened a new trade to overweight Italian against German duration as we see relative opportunities without taking credit risks. We also bought emerging market bonds in during January as we saw a more favourable environment for this asset class amid a slowdown in rate hikes and a potential weakening dollar. Foreign currency exposure was at 8.3% with key underweights in USD, GBP, NZD and EUR and overweight in JPY, MXN, AUD, NOK and BRL. We closed our underweight position in PHP during January as we became more constructive on emerging markets. At the same time, we reduced overweight in BRL to fund purchase of MXN.
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