Upload
vuongngoc
View
224
Download
1
Embed Size (px)
Citation preview
STRICTLY CONFIDENTIAL
NOT FOR PUBLIC USE. NOT TO BE MAILED, SHOWN OR QUOTED TO ANY THIRD PARTY.
THIS PRESENTATION IS SUBJECT TO THE ENCLOSED DISCLAIMER.
2013
UBS Exchange Traded Funds UBS IQ Research Preferred Australian Share Fund
ASX Code: ETF
Global Asset Management
Stephen Small ETF Capabilities Manager
This presentation provides general product information only.
It is not personal advice and does take into account any
particular person’s objectives, financial situation or needs.
Before acting on this information we recommend you consult
your financial adviser.
SECTION 1
A brief introduction to UBS Global Asset Management
3
UBS
UBS
AUD 2.3 trillion¹ invested assets
Around 63,000 employees
Note: As at 31 December 2012
1 Worldwide figures (rounded)
Retail &
Corporate
Global Asset
Management
Investment
Bank
Wealth
Management
Wealth
Management
Americas
UBS is a global firm providing financial services with offices in over 50 countries
SECTION 2
The UBS IQ Research Preferred ETFs
ASX Code: ETF
Building smarter equity portfolios
5
UBS IQ ‘Research Preferred’ ETFs
UBS IQ Research Preferred funds—underlying portfolio constructed by reference to UBS Research
Australia's #1 equity research team*
Opening up our market leading expertise to the wider market
An innovative approach that’s Positively Different
An innovative approach …
The first ETF of its kind in the world to track an index of “buy” recommended securities
*East Coles Survey 2012
Smart Beta /
Research Preferred
Broad Mkt Beta /
Passive
Alpha /
Active Management
6
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
The Australian equity market
A simple portfolio of Australian Shares
Market cap weighted portfolios
Heavily weighted towards large caps
Thinly allocated across tail
Stock concentration risk (e.g. BHP, Banks, TLS)
Sector concentration risk (resources and financials)
7
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
Select the best ‘Buys’
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%A portfolio of high quality stocks with “buy” ratings
Identify those securities that represent good value and
good quality
Remove the other stocks
Building a smarter portfolio
8
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
Modified free float
Re-weight the portfolio to more evenly allocate across sectors
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%Diversify the portfolio
More evenly allocate the portfolio
Approx 30% mid and 30% small cap exposure
9
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
9.00%
10.00%
Resulting Portfolio
A portfolio of quality value stocks
A portfolio of 40 good valued stocks
Stock names are fully disclosed and updated daily
The UBS IQ ETF portfolio…
10 10
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
9.00%
10.00%
A smarter exposure to Australia Equities
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
Source: UBS
11
Step #1:
Investment universe: ASX 200
Step #2:
Buy rated stocks
(to capture good ‘value’ stock)
Step #3:
Strong financial statements (to
capture good ‘quality’ stocks)
Step #4:
Modified free float weighting (more
evenly allocate across large, mid
and small)
Constructing our portfolio
Disclaimer: The data presented is not intended to represent how the UBS
IQ Research Preferred Australian Share Fund ETF would have performed
and is therefore not an indication of its future performance–it is for
illustrative purposes of the research model only.
Using UBS Investment Bank analysts to do the forward looking valuation
Good quality companies outperform in the
long run ...
(50)
0
50
100
150
200
19
90
19
92
19
94
19
96
19
98
20
00
20
02
20
04
20
06
20
08
20
10
FSQ Low 0–4 FSQ Mid 5–6 FSQ High 7–9
12
Stock Story—Flexigroup
Flexigroup Limited (FXL): a diversified financial services group that provides services of leasing
finance, credit cards, lay-by etc to both consumers and business +
Placed on a ‘buy’ in February 2010
Current price target based = $4.45
Source: UBS Source: ASX
Placed on a ‘buy’
Strong balance sheet: conservative balance
sheet with gearing c.11% and receivables
>$1 billion
• Buy recommendation + strong financial statement
= 1.7% of ETF
(versus 0.06% of ASX 200)
13
Why use the UBS IQ ETF in your portfolio
UBS IQ ETF provides:
Expertise - Access to a diversified Australian equity portfolio selected by the #1
research house in Australia*
Transparency – Know the stocks in your portfolio to avoid duplicating stocks you may
already hold
Growth – good value stocks
Income source - dividends and franking credits
Diversification - Provides diversification across quality stocks and quality research for
any sized portfolio
Adding growth and income to your portfolio
*East Coles Survey 2012 ASX Code: ETF
Equity exposure provides both GROWTH and INCOME potential
Requires good quality large, mid and small cap stocks
14
Disclaimer
This presentation and accompanying documents is intended to provide general information only and has been prepared by UBS Global
Asset Management (Australia) Ltd (ABN 31 003 146 290) (AFS Licence No. 222605) without taking into account any particular person’s
objectives, financial situation or needs. Investors should before acting on the information provided in this presentation, consider the
appropriateness of the information having regard to their personal objectives, financial situation or needs.
Any opinions expressed in this material are those of UBS Global Asset Management (Australia) Ltd, a member of the Global Asset
Management division of UBS AG, and are subject to change without notice. Although all information in this presentation and documents
is obtained in good faith from sources believed to be reliable no representation of warranty, express or implied is made as to its accuracy
or completeness. Neither UBS AG nor any of its affiliates, directors, employees or agents accepts any liability for any loss or damage
arising out of the use of all or any part of this material.
The information provided during this presentation must not be relied on to make an investment decision. It is not an offer or
recommendation to acquire an interest in the UBS Managed Investment Funds (UBS Funds) or recommendation to purchase or sell any
particular security. Offers of interests in the UBS Funds are contained in the relevant current Product Disclosure Statement (PDS). An
investment in any of the UBS Funds does not represent deposits or other liabilities of UBS AG or any other member company of the UBS
Group. Your investment is subject to investment risk, including possible delays in repayment and loss of income and capital invested. The
repayment of capital or income is not guaranteed by any company in the UBS Group.
Performance can be volatile and future returns can vary from past returns. Up-to-date performance information can be obtained by
contacting UBS Global Asset Management (Australia) Ltd. A copy of the PDS is available from UBS Global Asset Management
(Australia) Ltd, the issuer of the UBS Funds, on (02) 9324 3222 or freecall on 1800 023 043. You should consider that PDS and obtain
professional advice before making any decision about whether to acquire or continue to hold an investment in the Fund(s).
This document may not be reproduced or copies circulated without prior authority from UBS Global Asset Management (Australia) Ltd.
© UBS 2013. The key symbol and UBS are among the registered and unregistered trademarks of UBS. All rights reserved.