UBS overhauls mandate on portfolio

UBS has changed the mandate of its £375m Managed fund to turn it into a multi-asset portfolio. The UBS Global Allocation fund actively allocates its weighting between seven different sub-asset classes in the equity and fixed income areas.

Peter Beckett, head of UK retail marketing at UBS, says the old Managed fund was predominately invested in British equities, with some exposure to global equities and bonds. As such he says the new mandate offers investors a superior risk/return profile.

Management of the fund has not changed as a result of the change of strategy.

David Moylett, a member of the UBS Global Investment Solutions team, continues to be named managers although Beckett (pictured) says it is a team-based fund.

The multi-asset strategy used by this team dates back 25 years with the launch of the UBS Global Strategies fund, but this has never been available to British retail investors.

Originally developed for British institutional clients, Beckett says the fund boasts an impressive record, recording only two negative return years out of 25.

The mandate of the Global Allocation fund went live on November 26 and it is benchmarked against the Global Securities Market UK index.

The seven asset classes that make up this index, by weighting, are global (including UK) equities (37%), UK equities (25%), UK bonds (20%), global (excluding UK) bonds (10%), emerging market equities (3%), high yield bonds (3%) and emerging market debt (2%).