UBS US 130/30 EQUITY - Fund overview

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Overview of UBS US 130/30 EQUITY

The fund seeks long term returns through active management of a diversified portfolio invested primarily in US equities, equity instruments and derivatives. This manager takes both 'long' and 'short' positions in order to increase the funds absolute return potential. The 130/30 Equity fund is run by the same team as the more traditional US Equity. Investors need to be confident, therefore, in the managers ability to execute both processes. The fund aims to outperform the Russell 1000 Index by 250-500 basis points, gross of fees.

Standard Initial Charge

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Fund summary

Sector	North America
Product type	OEIC
Launched	July, 2007
Size	£8m
Yield	0.0%
Charging basis	INCOME
Dividends paid	Acc units only
Bid price	53.70p

Fund Charges

Standard Initial charge	4.00%
Initial charge via Bestinvest	0.00%
Additional bid/offer spread	0.00%
Annual management charge	1.60%
Total expense ratio	1.73%
Reduction in yield (10yr)	1.73%

Bestinvest says

No information available.

Portfolio

ubs us 130/30 equity asset allocation illustration

Allocation		Proportion

	Equity	130%
	High yield bonds	–
	Quality bonds	–
	Property	–
	Commodities	–
	Hedge	–
	Fund cash	-30%

ubs us 130/30 equity equity geographic illustration

Allocation		Proportion

	UK	–
	Europe	–
	Nth America	100%
	Japan	–
	Pacific	–
	Other Equity	–

ubs us 130/30 equity equity capitalisation illustration

Allocation		Proportion

	Large Caps	80%
	Mid Caps	15%
	Small Caps	5%

View all performance data for UBS US 130/30 EQUITY

Investment process

The manager seeks to establish the intrinsic value of a company in order to achieve absolute return. The intrinsic value is established through a qualitative evaluation of the competitive advantage, management, core competency and cash-flow forecasts of a company. This process is used to identify stocks that are undervalued as well as overvalued.
Typically the manager will take 80–120 positions of which 50–70 are long stocks, averaging 130% and 30–50 are short stocks, averaging 30%. These weightings, at any one time, will depend on the managers view of market conditions.
Revenues from 'shorting' are used to increase positions in stocks perceived to be valued below their intrinsic worth. Whilst this process means that Beta exposure will only range from 0.9 to 1.1 Alpha exposure is increased to 160%. Investors must, therefore, consider the managers skill in both methods of investing
Although this technique of investing is one also used by hedge funds this fund is more appropriately considered as a variation of a traditional equity fund.

The value of your investments and the income from them can go down as well as up and you can get back less than you originally invested. Any yields quoted cannot be taken as a reliable indicator of future returns. Before investing in funds please check the specific risk factors on the key features document or refer to our risk warning notice as some funds can be high risk or complex. Prevailing tax rates and relief are dependent on your individual circumstances and are subject to change.

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