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Marketing MaterialFor professional Investors only
15 September 2016
Uwe Röhrig
Long Short Equity InvestingUBS (Irl) Investor Selection – Equity Opportunity Long Short (EUR)
Senior Equity Specialist
1
Table of contents
Section 1 Introduction 2Section 2 Why investing in Long Short strategies? 6Section 3 UCITS structure at a glance 13Section 4 UBS Equity Opportunity Long Short 17
4.A Team and investment process 18
4.B Performance and positioning 26
Appendix A Additional information 34
IntroductionSection 1
3
Hedge funds in a nutshellWhat is equity hedge?
Source: HFR, UBS CIO, BloombergNote: Data as of 11 September 2015
• Equity hedge is the oldest and largest segment of hedge fund strategies by assets under management
• Primarily investing in equities, these strategies aim at isolating individual stock risk from market risk by identifying and purchasing promising stocks while selling less attractive ones
• Equity hedge strategies include market neutrals, quantitative directional, dedicated short bias and long/short
Equity Hedge27.9%
Event-Driven26.4%
Relative Value26.4%
Macro / Trading19.3%
Hedge Fund universe breakdown by style
Historical data since 1995Annualized average
returnAnnualized average
volatilityMaximum drawdown
Correlation to global equities
Correlation to global bonds
Sharpe ratio
10% 9% -31% 0.81 0.15 0.80
4
Introduction into Long Short investing
Long only
For illustrative purposes only.
Turning insight into alpha
Long/Short
GE
5
Historical growth of Equity Long ShortData since 1997
Source: BarclayHedge Alternative Investment Database
0
30
60
90
120
150
180
210
240
270
300
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q12016
Q22016
Assets Under Management (in USD Billions)
Why investing in Long Short strategies?Section 2
7
Increased number of investment opportunitiesThree scenarios
Source: UBS Asset ManagementNote: For illustrative purposes only.
Returns are low, we expect an increase, but the market has a different view
The returns are high, we expect them to stay high, but the market has a different view
Returns are behind market expectations
Returns (ROIC, CF etc.) Market expectations
Re
turn
s
Time
1
3
2
Business-Cycle1
2
3
Overweight
Short
8
0,0%
0,5%
1,0%
1,5%
2,0%
2,5%
3,0%
3,5%
Val
ue
of
Co
nst
itu
ent
(%)
MSCI Constituent
MSCI Europe Constituents by Market Value
More opportunities to generate returnsFlexibility to capitalise on overpriced and underpriced securities
• Approximately half of the stocks in the MSCI Europe represent positions of less than 0.1% of the index
• The ability to short an overvalued security allows our investment insights to have a greater impact on the portfolio
Less than 0.1% weight
Source: UBS Asset Management. Data to 30 June 2016.
9
Example
Source: UBS Asset Management. For illustrative purposes only. There are certain unique risks associated with the use of short sale strategies. For example, there is a risk that a client portfolio will incur a loss by subsequently buying a security at a higher price than the price at which the security was sold short.
Research suggests meaningful underweight for stocks A and B
Stock A: 100 bps market weight
Stock B: 10 bps market weight
100
0
-100
-50
0
50
100
Market weight Long-Only andUnconstrained weight
Bas
is p
oin
ts
10 0
-90-100
-50
0
50
100
Market weight Long-Only weight Unconstrainedweight
Bas
is p
oin
ts
Stock Afalls by 50%
Stock Bfalls by 50%
Long-onlyexcess returns
Unconstrainedexcess returns
+50 bps +50 bps
+5 bps +50 bps
+55 bps +100 bpsTotal
10
Better downside capture than long onlyPartly attributed to the ability to short stocks, sectors or the market itself
Source: Bloomberg/Lazard Asset ManagementNote: The performance quoted represents past performance. Past performance does not guarantee future results. The indices mentioned above have no fees and are unmanaged.
Long/Short strategies have historically
provided downside protection during market downturns
Index data in %
5,1
-8,3 -10,3
-30,6
-13,2-14,7 -15,4
-44,7-50,9
-16,3
-60
-50
-40
-30
-20
-10
0
10
Iraq War / Oil Shock 90 Russian Financial Crisis 98 Tech Bubble 00-02 Global Financial Crisis 07-09
Sovereign Debt Crisis 11
HFRI Equity Hedge Index S&P 500 Index
11
Avoiding emotion-based decisionsExtraordinary gains are needed to recover from extraordinary losses
Source: Crestmont ResearchNote: These figures are hypothetical and do not take into account taxes or fees.
-10 -20 -30 -40 -50 -60 -70 -80 -90
+11 +25 +43 +67+100
+150
+233
+400
+900
Investment loss
Investors with lower exposure to market
downturns do not need to take the outsized
risks to rebuild wealth after significant losses
Sub
seq
uen
t g
ain
nec
essa
ry f
or
bre
akev
en
12
Diversification effectAdding a long short strategy can raise a portfolio's efficient frontier
Source: Lazard Asset ManagementNote: Forecasted or estimated results do not represent a promise or guarantee of future results and are subject to change.
Expected Volatility
Exp
ecte
d r
etu
rnTraditional investments + alternativesTraditional investments
Potentially raising the Portfolio's efficient frontier through a long short allocation
• Over a 20 year period through 30 September 2015, long short managers, in aggregate, have generated low correlations:
Index Correlation
S&P 500 Index 0.76
Barclays Global Aggregate Bond Index 0.14
UCITS structure at a glanceSection 3
14
What are UCITS?
Source: UBS Asset Management
• UCITS is the abbreviation of Undertakings for Collective Investments in Transferable Securities
• It is the European Union’s regulatory framework that allows investment vehicles to operate throughout the EU on the basis of a single authorization from one member state
• A UCITS fund is required to comply with several regulatory restrictions related to:
– Liquidity
– Investment security types
– Short selling
– Issuer and Counterparty risk
– Leverage
– DerivativesMost traditional mutual funds
in Europe comply with this industry standard
15
Pros of UCITS hedge fundsAn investor's perspective
• Regulated: UCITS funds are effectively mutual funds that are distributed across the EU and many non-EU countries; service providers for UCITS funds are also regulated and supervised
• Transparent: UCITS funds must regularly publish fund prospectuses and financial statements
• Liquid: Risks of gating1 and side pockets2 are significantly reduced, as funds must be able to meet redemption requests on at least a bi-weekly basis; redemptions can be limited to 10% of NAV on any dealing day, or to 20% of NAV in any one month period if the UCITS fund opts for bi-weekly liquidity
• Frequent pricing: Daily, weekly or bi-weekly pricing give investors regular access to capital and greater confidence in valuation
• Governance: UCITS funds are required to have independent directors, quarterly board meetings and conducting officers responsible for oversight. In addition, they must have a custodian / depositary, administrator and independent auditor
• Safekeeping of assets: Independent custodian / depositary must hold fund assets
• Risk control: Detailed investment and borrowing limits ensure that investment and counterparty risks are well diversified. All UCITS funds must have an approved “Risk Management Process”
• Tax advantage: In some countries, UCITS funds enjoy a tax advantage over unregulated products for individual investors
Notes1 Restrictions on redemptions in a way that the investor can only partly redeem his investment in the fund.2 A side pocket is a mechanism whereby the fund segregates the illiquid assets from the main portfolio of the fund and issues investors with a new class of interests or shares which
participate only in the assets in the side pocket.
16
Cons of UCITS hedge fundsAn investor's perspective
Notes1 Restrictions on redemptions in a way that the investor can only partly redeem his investment in the fund.2 A side pocket is a mechanism whereby the fund segregates the illiquid assets from the main portfolio of the fund and issues investors with a new class of interests or shares which
participate only in the assets in the side pocket.
• Potentially lower returns: Most hedge fund strategies may need to be somewhat altered or diluted in order to operate within the UCITS framework; e.g. physical shorting (selling a position not physically held in the portfolio) is not permitted.
• Limited strategy diversification: UCITS funds cannot access less liquid or highly leveraged strategies, which tightens the investment universe.
• Limited asset diversification: UCITS funds cannot directly or indirectly (through derivatives) invest in commodities, real estate, private equity, unregulated funds,non-financial indices1.
UBS Equity Opportunity Long ShortSection 4
UBS Equity Opportunity Long ShortSection 4.A
Team and investment process
19
Team
• Independent investment boutique, incepted in 2004, within UBS Asset Management
• Max Anderl, Lead Portfolio Manager, supported by Jeremy Leung and Richard Williams
• Implement independent research analysis and investment decisions
• Leverage full UBS infrastructure: research, analysis & support functions
• Strong performance track record
• EUR 16bn AUM with strong institutional backing1
Investment approach
• Innovative bottom up stock selection investment approach
• Combine fundamental, quantitative and qualitative analysis
• Independent sources of information
• Holistic approach to risk
• Consistent team and process
Team overview
1 UBS Asset Management, 30 June 2016
20
Boutique team dedicated to portfolio management Concentrated Alpha Equity – 23 years of experience and 17 years at UBS¹
Rob HowardTeam Leader – Investment Operations
London, UK
David LeggInvestment Operations
London, UK
Steve KingInvestment Operations
London, UK
Howard RowlinsonInvestment Operations
London, UK
Reuben BarretoInvestment Operations
London, UK
Max Anderl, CFAHead of Team, Lead Portfolio Manager(New stocks and portfolio construction)
London, UK
Jeremy Leung, CFADeputy Portfolio Manager/Analyst(Reviews existing holdings)
London, UK
Richard Williams, CFAAnalyst/Specialist(Reviews existing holdings)
London, UK
Alison CharlesAssociate Equity Specialist
London, UK
Reiner HuebnerSenior Equity Manager
Frankfurt, Germany
Portfolio ManagementRegionally Based2 Technical Support2
April RobbinsAssociate Equity Specialist
London, UK
Jean-François LegouxHead of Investments France
Paris, France
Hiroyuki MatsunagaHead of Equities, Japan
Tokyo, Japan
Product Specialists
Source: UBS Asset Management, 30 June 2016. 1 Based on average for team shown. 2 Individuals are not dedicated resources
Client Focus Investing Operations
• Analysts
• Trading
• Risk
• Legal & Compliance
• 2000+ individuals globally
Uwe RoehrigSenior Equity Specialist
Zurich, Switzerland
21
The Concentrated Alpha investment process
Portfolio Construction & Risk Management
• Bottom up stock selection process
• Independent long and short portfolio
• Balanced and diversified portfolio
• Positions weighted according to risk reward considerations
• Longs 1 to 3%; Shorts -1 to -3%
3 Circle Research Process
• Approx ~150 stocks
Client portfolio
3 Circle Investment Process – In use since inception in 2004
Quantitative
Fundamental
Qualitative
For illustrative purposes only
22
Idea generationWide ranging and diversified sources of ideas captures entire universe
• Universe of ~4,000+1 stocks globally
• Ideas can come from any of our independentsources
• Once identified ideas must pass through the 3 Circle process
• Lead portfolio manager makes decisions on new stocks
• Team re-evaluate and monitor stocks on ongoing basis
– Maintains sell discipline
– Increase time for Lead PM to find new ideas
Idea generation
For illustrative purposes only
UBS Asset Management, Factset. 30 June 2016.1 Based on MSCI IMI stocks with market cap above USD 500m
Quantitative
Fundamental
Qualitative
23
US Treasury Spread
Dollar/Euro Implied
Volatility
QOQ Change in Implied Volatility
AAII Investors Sentiment
SurveyValuation
Cash-to-Market
Capitalisation
9m Price Trend
Returns to Volatility
Factor Q1-Q5 Differentials
1. Stock selection driven market exposure
– Net exposure of 50% +/- 20% over a full market cycle
– According to opportunities
– Stock selection in longs and shorts
2. Quantitative overlay market timing
– Used to manage possible downside during exceptional periods of volatility
– Multi factor model based on empirical evidence
Allows the strategy to increase returns through market exposure whilst aiming to protect capital in times of high volatility
Model for adjusting net exposure…during exceptional periods of volatility
Target Factor Weights to the Net Long Indicator
Source: UBS Asset ManagementNote: Charts for illustrative purposes
Macro Factors
0,4
0,9
1,4
1,9
86 88 90 92 94 96 98 00 02 04 06 08 10 12 14
Net Long Indicator – Predications of Bull/BearSt
and
ard
ised
sco
re
(std
. dev
)
24
Risk management
Source: UBS Asset Management
• Taking risk when rewarded for it
• Close monitoring of volatility and leverage
• Large range of different risk models: Barra, UBS long term and short term risk model, RiskMetrics
• Independent check of risks
• Pre and post trade checks
• Volatility target <10%
ResultsRisk parameters
Risk systems
Price paid
Corporate Governance
Leverage and industry structure
Use of uncorrelated information sources
Focus on avoiding capital loss for clients
Stop loss/risk parameters
-10bps – Warning
-20bps – Review position
25
Strategy details
Note: As at 30 June 2016. The table shows mostly typical exposures, not hard limits. Exposures may be outside of these limits for sustained periods.1 Customisable and carveout benchmarks are available for segregated mandates e.g. Global ex Japan, MSCI ACWI etc.2 Holdings and exposures are typical expected ranges but may vary considerably over time depending on market conditions and manager views.3 Typical average over a full market cycle with maximum limits of -25% to +70% allowable.
Average Market Cap ExposuresLarge cap Mid cap Small cap
>USD10 billion USD1–10 billion <USD1 billion70 – 100% 0 – 25% <5%
Concentrated Alpha Equity Team
Europe Equity Concentrated
Alpha
European Opportunity
Unconstrained
Equity Opportunity Long
Short
Global Equity Concentrated
Alpha
Global Equity Opportunity
Unconstrained
Inception May 31, 2004 May 31, 2007 October 31, 2010 September 30, 2007 September 24, 2015AUM (EUR) 3.2 billion 4.2 billion 824 million 6.6 billion 231 million
Geography Europe Europe80% Europe20% Global
Global Global
Benchmark1 MSCI Europe etc. MSCI Europe etc. Absolute Return MSCI World etc. MSCI World etc.Holdings2
Portfolio approach Long only Long short Long short Long only Long shortLong positions ~50 ~100 ~80 50 – 60 ~100Long weights 1.5 – 4% (max 10%) 1 – 4 % (max 10%) 1 – 3% (max 10%) 1.5 – 4% (max 10%) 1 – 4 % (max 10%)Short positions – ~50 ~70 – ~50Short weights – 0.5 – 1.5% (max 3%) 1 – 3% (max 3%) – 0.5 – 1.5% (max 3%)Average exposures2
Average gross exposure – 170% 180% (max 250%) – 170%Average net exposure 100% 100% Avg. 40 – 50%3 100% 100%Typical beta range 0.8 – 1.0 – 1.2 0.8 – 1.0 – 1.2 0.3 – 0.5 – 0.7 0.8 – 1.0 – 1.2 0.8 – 1.0 – 1.2
UBS Equity Opportunity Long ShortSection 4.B
Performance and positioning
27
Summary
• Long/Short absolute return equity strategy
– Europe focused with opportunistic global
• Stock selection driven returns with market overlay
– Fundamental, quantitative and qualitative analysis
• Inception date: 29 October 2010
• EUR 828m AUM, UCITS fund with daily liquidity
Risk & Return
• Strong performance record with no down year: +5.5% p.a.1
• Low volatility (+10.6%1) and drawdown
• Average net exposure 50% over a full market cycle
Fund overview
Source: UBS Asset Management as at 30 June 2016. Absolute means that returns are not linked to a benchmark. Note that returns on absolute type investments can still be negative compared to initial investment values. 1 Net of fees since inception 29 October 2010. Please note that past performance is not a guide to the future.
Equity Opportunity Long Short Fund
Fund details
Typical gross exposure 180%
Typical net exposure 30 – 70%
Typical net exposure 50% over a full market cycle
No. of positions ~150
Volatility target <10%
Region Europe + opportunistic global
Market cap Predominantly large cap
28
% EUR Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec YTD2010 2.2 -1.1 1.12011 -1.3 1.1 0.6 -0.7 0.2 1.7 0.1 -1.2 6.8 -6.7 2.6 3.8 6.52012 -6.6 1.7 -0.4 3.7 3.6 -0.1 4.1 -0.4 0.0 0.9 -0.6 -3.7 1.72013 -1.6 5.7 4.9 -0.7 -3.0 1.4 -0.1 -3.6 -4.4 1.4 3.1 2.7 5.32014 -0.7 2.0 -2.7 -2.9 2.7 2.6 1.7 2.6 3.3 2.8 -0.9 0.9 11.62015 6.2 -0.9 1.7 -1.5 1.5 -1.2 6.9 -0.7 2.8 0.5 1.8 1.4 19.72016 -0.1 -4.8 -5.1 -5.5 5.8 1.0 -3.5 -11.9
Net performanceQ-PF-acc share class1 as at 31 July 2016
90
100
110
120
130
140
150
160
Okt 10 Okt 11 Okt 12 Okt 13 Okt 14 Okt 15
EOLS Q-PF-acc HFRISource: Factset, UBS Asset Management. Performance net of fees (Q-PF share class). HFRI Equity Hedge is a hedge fund peer group index. Note: Returns are cumulative and absolute. Absolute means that returns are not linked to a benchmark. Returns on absolute type investments can still be negative compared to initial investment values. Please note that past performance is not a guide to the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.1 Since inception of strategy (01 November 2010). Before November 2012, I-B share class returns adjusted to match Q-PF fees. Post November 2012, Q-PF share class returns.2 The strategy refined the portfolio construction to take on additional market exposure with an additional strategic overlay to avoid large drawdowns
Refined portfolio construction2
EOLS MSE HFRI
1 Year Return -6.7% -11.4% -1.1%
3 Year Return 5.2% 6.9% 2.6%
5 Year Return 5.7% 7.8% 2.8%
Return S.I.1 5.5% 7.2% 2.7%
Volatility S.I. 1 10.6% 12.9% 4.8%
3 Year Sharpe Ratio 0.5 0.8 0.6
3 Year Sortino Ratio 0.8 0.8 1.0
Correlation to MSE -0.1 1.0 0.8
%
29
Net performanceQ-PF-acc share class as at 31 July 2016
1,0%
-1,1%
-2,2%-3%-2%-1%0%1%2%
Fund HFRI EquityHedge Index
MSCI World
Avg. Return in MSCI World down months S.I.1 to Beta Uplift
9,3%
-8,2%
18,2%
8,4%
-20%
0%
20%
Fund HFRI Equity Hedge Index
Alpha Beta
Alpha Beta Separation since Beta Uplift
Source: Factset, UBS Asset Management. Performance net of fees (Q-PF share class). HFRI Equity Hedge is a hedge fund peer group index. Data for HFRI to 31 July 2016Note: Returns are cumulative and absolute. Absolute means that returns are not linked to a benchmark. Returns on absolute type investments can still be negative compared to initial investment values. Please note that past performance is not a guide to the future.1 Since inception of strategy (01 November 2010). Before November 2012, I-B share class returns adjusted to match Q-PF fees. Post November 2012, Q-PF share class returns.
-0,4%-1,0%
-3,7%-5%-4%-3%-2%-1%0%
Fund HFRI EquityHedge Index
MSCI World
Avg. Return in MSCI World down months since Beta Uplift
Alpha Beta Separation S.I.1 to Beta Uplift
16,0%
-3,4%-5,6%
16,8%
-20%
0%
20%
Fund HFRI Equity Hedge Index
Alpha Beta
30
Fund exposures (%)
Source: UBS Asset ManagementNote: Data to 31 July 2016. Data based on exposures
-50%
-25%
0%
25%
50%
75%
100%
125%
50%
75%
100%
125%
150%
175%
200%
225%
Aug11
Nov11
Feb12
Mai12
Aug12
Nov12
Feb13
Mai13
Aug13
Nov13
Feb14
Mai14
Aug14
Nov14
Feb15
Mai15
Aug15
Nov15
Feb16
Mai16
Beta Exp
osu
reG
ross
Exp
osu
re
Gross (lhs) Beta (rhs)
31
Portfolio construction
Source: UBS Asset Management.This information should not be construed as a recommendation to buy or sell any particular security.
As at 31 July 2016
1,8%
24,5%
69,9%
0,0%
-2,6%
-12,5%
-62,7%
-4,3%
Asia + JP
North America
Europe + UK
EM
Long Short
23,5
19,4
6,8
12,6
5,6
1,5
4,7
7,9
4,1
10,1
0,0
-6,0
-4,3
-12,2
-5,7
-2,6
-6,3
-9,6
-7,9
-26,4
Health Care
Consumer Staples
Information Technology
Financials
Utilities
Telecommunication Services
Energy
Consumer Discretionary
Materials
Industrials
Top 10 holdings %
Novartis 3.5GSK 2.3Siemens 2.1Unilever 1.9Newcrest Mining 1.8Deutsche Wohnen 1.8Johnson & Johnson 1.8National Grid 1.7Imperial Brands 1.6Snam 1.5
Gross & net long/short exposure
Long exposure +96.2%Short exposure -82.0%Gross exposure +178.2%Net exposure +14.2%
Region
Sectors (%)
32
Return distribution
Source: Factset, UBS Asset Management. Return distribution based on net returns in EUR. Regional returns are gross of Fees in EUR. Note: Returns are cumulative and absolute. Absolute means that returns are not linked to a benchmark. Note that returns on absolute type investments can still be negative compared to initial investment values. Please note past performance is not an indication to the future. The return of a region is the sum of the performance of the stocks held in that region multiplied by its weight in the portfolio.
47,5% 49,4%
72,8%
-3,1%
0,3%17,0%
-19,5%
-41,7%-50%
-25%
0%
25%
50%
75%
100%
Developed Asia Europe North America Emerging Markets
Longs Shorts
Long and Short portfolio returns, 3 Years to 30 Jun 16 (% in EUR, gross cumulative absolute returns)
Return Distribution of Q-PF-acc share class as at 31 July 16
0
4
8
12
16
20
x<-6 -6<x<-4 -4<x<-2 -2<x<0 0<x<2 2<x<4 4<x<6 x>6
%
33
Key benefits
• Team with proven success in long/short equity
• Performance:
– Strong uncorrelated returns driven by stock selection through both longs and shorts
– Participating in a rising market, protecting in a falling market
– Strong performance relative to peers1
• Risk: Varying market exposure resulting in
– Lower drawdowns
– Lower total volatility
– Low correlation to equity markets and other alternative funds
• UCITS fund structure: transparent, regulated and daily liquidity
UBS Equity Opportunity Long Short FundKey benefits for investors
Source: UBS Asset ManagementNote: This does not constitute a guarantee by UBS Asset Management1 HFRI hedge fund index
Additional informationAppendix A
35
Our history
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Our people
Europe EquityConcentrated AlphaLong only
May 31, 2004
European OpportunityUnconstrainedLong shortTarget beta 1.0
May 31, 2007
Global Equity Concentrated AlphaLong only
September 30, 2007
Equity OpportunityLong ShortMarket neutralTarget beta 0.0
October 31, 2010
Directional long shortTarget beta 0.5
April 30, 2014
Global Equity OpportunityUnconstrainedLong shortTarget beta 1.0
September 2015Refined portfolio construction to target higher beta following our back tests.
Neil Mears
Max Anderl
Jeremy Leung(03-2011)
Richard Williams(08-2014)
Max Anderl took charge of idea generation andportfolio construction after Neil Mears retired. He had been working with Neil within UBS since 2000
Jeremy Leung assumed Max’s previous role as deputy PM,having already worked with Neil and Max as a memberof the broader equities team within UBS since 2007.
Richard Williams joined from the UK Client Liaisonteam to focus on strategy communication and analyzingexisting holdings having worked with Max and Jeremy in his previous role within UBS since 2011.
Our strategies
36
Our investment teamConcentrated Alpha Equity
Max Anderl, CFAHead of Team, Lead portfolio manager16 yrs' investment industry experience15 yrs at UBSEducation: University of Innsbruck (Austria), MS; University of St Gallen (Switzerland) and Stockholm School of Economics (Sweden), Lic.oec.HSG
Jeremy Leung, CFAPortfolio Manager/Analyst11 yrs' investment industry experience9 yrs at UBSEducation: Tufts University (US), BS; London School of Economics and Political Science (UK), MSc
Richard Williams, CFAAnalyst/Strategist6 yrs' investment industry experience5 yrs at UBSEducation: University of Exeter, BA (Hons)
Source: UBS Asset Management, 31 July 2016
• Member of Concentrated Alpha team since its inception in 2004. • Lead portfolio manager and primarily responsible for all investment decisions on Concentrated
Alpha strategies.• Joined the European Equity Team in London in 2002, having joined UBS Asset Management,
Zurich, in 2000 as an equity fund manager. In that role he was responsible for the retail funds and European client mandates.
• Prior to joining UBS, Maximilian fulfilled senior research roles, worked in corporate finance for the pharmaceutical industry and built extensive knowledge of the investment industry.
• Became team head in 2011.
• Member of the Concentrated Alpha team since March 2011 and is responsible for investment analysis and deputy portfolio management duties.
• Joined UBS Asset Management in 2007 as a quantitative analyst supporting various equity investment teams globally, which included Concentrated Alpha. In that role he was responsible for special projects including quantitative and fundamental research.
• Prior to joining UBS, Jeremy was a consultant in the investment industry helping asset managers across Europe in using investment tools and analysis in their investment processes.
• Responsible for supporting the investment process. Member of team since 2014.• Prior to undertaking his role in August 2014, Richard was a member of the UK Institutional Client
Liaison team, working closely with a number of clients and prospects including large corporations and public institutions. He was directly involved with client and prospect meetings and investment communication.
• Richard joined UBS Asset Management in March 2011. Before this, he worked as a finance analyst in the consumer industry where he was involved in forecasting, budgeting and monthly reporting for a major UK retailer.
37
-10%
0%
10%
20%
30%
40%
50%
60%
Q4'10
Q1'11
Q2'11
Q3'11
Q4'11
Q1'12
Q2'12
Q3'12
Q4'12
Q1'13
Q2'13
Q3'13
Q4'13
Q1'14
Q2'14
Q3'14
Q4'14
Q1'15
Q2'15
Q3'15
Q4'15
Q1'16
Q2'16
Q3'16
Beta Alpha
Breakdown of returns by alpha and beta
Data to 31 July 2016.Note: Please note past performance is not an indication to the future. Performance net of fees (Q-PF share class). 1 Since inception of strategy (01 November 2010). Before November 2012, I-B share class returns adjusted to match Q-PF fees. Post November 2012, Q-PF share class returns
Cumulative Alpha and Beta contribution to return (EUR, net of fees since inception)
38
Equity Opportunity Long ShortLong and short portfolio absolute returns: shorts consistently add value
Source: Wilshire Gross of Fees in EUR. UBS Asset Management. Data to 30 June 2016. Note: Based on weighted average returns of longs and shorts as independent portfolios. Returns are cumulative and absolute. Past performance is not a guide to the future.Absolute means that returns are not linked to a benchmark. Note that returns on absolute type investments can still be negative compared to initial investment values
-0,7%
52,8%
88,5%
-19,0%
10,0%
0,8%
-10,3%
26,6%
42,2%
-40%
-20%
0%
20%
40%
60%
80%
100%
1 Year 3 Years 5 years
Longs Shorts MSCI Europe
39
Name of Fund UBS (Irl) Investor Selection - Equity Opportunity Long Short Fund Class – EUR Q-PF-acc
Fund domicile Ireland
Legal structure UCITS
Benchmark / Cash hurdle rate Overnight cash rates, EONIA for the EUR share classes; BBA for others
Portfolio management UBS Asset Management (UK) Ltd
Custodian bank J.P. Morgan Bank (Ireland) plc
Launch date Fund: 29 October 2010. Q-PF-acc share class: 26 November 2012
Currency of account EUR
Accounting year ends 30 September
Distribution None, reinvestment
Management fee 1.05%
Performance fee20% on the performance amount that exceeds both the high watermark and the hurdle rate at every end of a calendar year
EU savings tax Not affected
Anti-dilution levy Yes
Securities no. 11976489
ISIN IE00B841P542
Registered countriesAustria, Belgium, Finland, France, Germany, Ireland, Italy, Liechtenstein, Luxembourg, Netherlands, Spain, Sweden, Switzerland, UK
Equity Opportunity Long Short FundFund features
Source: Fundgate, UBS Asset Management.
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Equity Opportunity Long Short FundProduct targets
Fund name Equity Opportunity Long Short Fund
Launch Date 29 October 2010
Risk (Volatility) <10%
Concentration ~150 Securities
Typical Exposures Long: 100 – 120% Short: 50 – 70%
Individual Exposures
Typical AV. Longs 1 – 3, Shorts 1 – 3%
Max Longs 10%, Shorts -3%
Target net exposure 50% +/- 20% over a full market cycle
Minimum net exposure -30%
Maximum net exposure +70%
Gross exposures
Typical 180%
Max 250%
Universe Predominantly Europe with opportunistic investments outside (up to 20%)
Source: UBS Asset Management. UBS (Irl) Investor Selection - Equity Opportunity Long Short Fund (IE00B841P542)Note: This does not constitute a guarantee by UBS Asset Management
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Uwe Röhrig
• Uwe Röhrig is a Senior Equity Specialist, who works closely with the equity investment teams of UBS Asset Management.
• He has specific responsibility for presenting equity strategies to clients, prospects and consultants.
• Uwe joined UBS Asset Management from J.P. Morgan Asset Management in July 2004, where he was employed for 13 years. He held a number of positions, most notably as an Equity/Balanced Portfolio Manager in Frankfurt and London.
• Before this, he spent four years at Commerzbank in Frankfurt, where one of his roles was equity trading. He started his career at Sparkasse Wetzlar in 1980.
• Uwe is a member of the Swiss Investment Committee in Zurich.
Senior Equity Specialist
Managing Director
Years of investment industry experience: 26
Education: Frankfurt School of Finance & Management (Germany), Diploma
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Performance: Equity Opportunity Long Short
GLEQCA
GIPS Disclosure
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Risk disclosure
UBS Equity Long-Short Funds deliver a long and short exposure to equities in order to reduce the volatility of the portfolio compared to a common long only equity fund. Despite the expected reduction in volatility, the funds can still be subject to high fluctuations in value. For this reason, an investment horizon of at least five years and corresponding risk tolerance and risk capacity are required.
The Fund may enter into OTC derivative contracts to generate the equity exposure. These contracts are collateralized, however the risk of a counterparty default remains. A small proportion of the Fund’s capital is utilized to generate short and long equity exposure with derivatives. A proportion of the Fund’s capital is utilized to generate physical long equity exposures. The remaining cash balance is invested into high quality money market instruments.
UBS Equity Long-Short Funds pursue an active management style and may deliver significant negative performance over certain periods when the majority of the portfolio managers active positions are unfavorable and / or when the net long or short equity exposure of the Fund delivers negative returns. The Fund can perform negatively while underlying equity markets perform positively and vice versa. Each fund has specific risks, which can significantly increase under unusual market conditions.
As the fund uses derivatives & sophisticated leverage techniques, investors must be willing to bear the additional risk involved.
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Disclaimer
For marketing and information purposes by UBS. For professional and semi-institutional investors in accordance with the German Capital Investment Code (Kapitalanlagegesetzbuch) only. UBS funds under German, EU- and foreign law. Before investing in this product please read the latest sales prospectus and key investor information thoroughly. Both, sales prospectus and keyinvestor information can be requested in writing and free of charge at UBS Deutschland AG (paying agent / proxy agent and as the circumstances require representative agent for UBS fundsunder EU- or foreign law) respectively at UBS Asset Management (Deutschland) GmbH Bockenheimer Landstraße 2-4, 60306 Frankfurt am Main or could be downloaded underwww.ubs.com/deutschlandfonds. Key investor information are published on the Internet in German and/or English whereas the German language is binding. Sales prospectusses of the fundswhich are not domicilied in Germany are published in German and/or English. Annual- as well as semi-annual reports can also be downloaded on the internet free of charge. Limts of the riskmanagement of the funds, risk management methods and the latest developments of risks and income returns of the most important categories of the funds assests are nearly described in thesales prospectus. Units of UBS funds mentioned herein may not be offered, sold or delivered in the United States. The information mentioned herein is not intended to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. Past performance is not a reliable indicator of future results. The performance shown does not take accountof any fees and costs charged when subscribing to and redeeming units. Fees and costs have a negative impact on performance. If the currency of a financial product or financial service isdifferent from your reference currency, the return can increase or decrease as a result of currency fluctuations. This information pays no regard to the specific or future investment objectives, financial or tax situation or particular needs of any specific recipient. The details and opinions contained in this document are provided by UBS without any guarantee or warranty and are for the recipient's personal use and information purposes only. Source for all data and charts (if not indicated otherwise): UBS Asset Management (a business unit whithin the UBS-group). © UBS 2016. The key symbol and UBS are among the registered and unregistered trademarks of UBS. All rights reserved.
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