UBS Tactical Beta Fund - Conservative

About this Fund

Fund Detail

PDS https://informedinvestor.com.au/view/pds/100485-2022-09-27-02:50.pdf
FUND MANAGER UBS Asset Management (Australia)
ASX Code
INVESTMENT STYLE The Fund is a diversified Australian and global portfolio.
INVESTMENT PROFILE The Fund aims to outperform (after management costs) the return of its Neutral Allocation over rolling five year periods.
BENCHMARK Neutral allocation (see Mandate)
FUND SIZE Neutral allocation (see Mandate)
FEES 0.29% p.a. of the net asset value of the Fund



Benefits of investing in the UBS Tactical Beta Fund - Conservative

The significant benefits and features of investing in the Fund are:

  • Investment return: The assets of the Fund's investment portfolio are allocated with a view to managing the overall risk and return of the multi asset portfolio. Tactical asset allocation, along with the passive market return, or beta, are the sources of the Fund's return.
  • Diversification: Access to a wide range of asset classes, including equities, bonds and property securities, providing
  • a diversified portfolio of both growth and income assets. By constructing a portfolio with a broad mix of investments, the aim is to diversify the sources of investment risk and return.
  • Cost effective access to active management: The asset class mix within the Fund is actively managed in response to expected market changes. The use of passive investments to build the portfolio reduces the overall management fee compared to traditional multi asset funds.
  • Research resources: We have over 30 years' experience in asset allocation and managing multi-asset strategies. Our global team of investment professionals are located across multiple time zones allowing them to work around the clock and bring their global insights and local market knowledge together, capitalising on this breadth of opportunity to identify the best investment ideas.
  • Distributions: The potential to receive quarterly distributions.

Risk level


Investor suitability

The Fund is best suited to investors who seek to achieve returns from a mix of growth and income assets.




Key Features

About the Fund

The Fund is a diversified Australian and global portfolio with the long term neutral (or average) exposure to income and growth assets expected to be around 70% and 30% respectively of the total portfolio.    

Investment strategy

Our portfolio management team will build a diversified portfolio of income and growth assets, largely by using exchange traded funds (ETFs), both onshore and offshore, index funds, cash funds and derivatives. They will tactically allocate between asset classes and currencies based on their relative value, whilst managing the overall risk and return of the portfolio. Currency exposure is actively managed through an overlay strategy to take advantage of mis-valuations that arise.

Investment objective

The Fund aims to outperform (after management costs) the return of its Neutral Allocation over rolling five year periods. The Neutral Allocation is the likely expected long term average exposure of the portfolio to various asset classes.


How we invest your money

The Benchmark is based on the return on the following market indices based on the Neutral Allocation of assets. The Neutral Allocation of assets represents the likely expected long term average exposure of the portfolio to various asset classes in order to meet its investment objective over a full investment cycle. At any point in time the actual asset weighting of the portfolio may be set away from the neutral position, although still consistent with the asset allocation range, reflecting the views of the portfolio manager. The asset allocation framework is shown in the table below.

(Asset sector: Neutral allocation / Strategy range / Benchmark)

  • Cash and Cash Funds: 5% / 0%-30% / Bloomberg AusBond Bank Bill Index
  • Australian Government Bonds: 20% / 20%-90% (with International Bonds) / Bloomberg AusBond Treasury 0+ Yr Index
  • International Bonds: 25% / 20%-90% (with Australian Bonds) / FTSE WGBI ex Australia hedged in AUD
  • Investment Grade Credit: 13% / 0%-40% / Bloomberg Barclays Global Credit Corporate hedged in AUD
  • High Yield Credit: 4% / 0%-10% / Bloomberg Barclays Global High Yield hedged in AUD
  • Emerging Markets Debt: 3% / 0%-10% / Bloomberg Barclays Global Emerging Markets hedged in AUD

Total income assets: 70% / 40%-90%

  • Australian equities: 15% / 0%-30% / S&PASX 300 Index (gross total return)
  • International equities: 13% / 0%-50% / MSCI All Country World ex Australia hedged in AUD (net dividends reinvested)
  • Property Securities: 2% / 0%-10% / FTSE EPRA/NAREIT Developed hedged in AUD (net dividends reinvested)

Total growth assets: 30% / 10%-60%

  • Foreign currency exposure: 0% / -5%-15%

Investment universe

Eligible investment of the Fund comprise (but are not limited to):

  • Direct securities
  • ETFs that are listed on a recognised exchange
  • Passive funds (unit trusts) which may be listed or unlisted
  • Equity futures and options
  • Fixed income futures, swaps and options and associated derivatives
  • Currency forwards and options
  • Cash and Cash Funds