MONEY MASTERS

UBS Global High Conviction Fund

Urs Raebsamen. Senior Equity Specialist UBS Asset Management

Australians have a huge domestic bias with their investing, so why would a portfolio designed for Australians focus on Australia? To avoid doubling up on stocks, and to provide diversity, the UBS Global High Conviction Fund focuses on quality stocks that Australians tend to have no exposure to. Combined with a strict and thorough vetting process for included stocks, this portfolio is aimed to provide global equity exposure to compliment those with a home bias.

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What you'll learn /

The UBS ‘Global High Conviction Fund’ Money Masters course with Urs Raebseman will give you insights into:

The habits of the average Australian investor
The value of global equities to domestic investors
The role analysis and research plays in portfolio construction
How emotion can lead to risky investing

About the expert /

Urs Raebsamen /

Senior Equity Specialist UBS Asset Management


  • CPD hours0.25
  • Knowledge AreaCAPABILITY
  • TypeMONEY MASTERS
  • PriceFREE
  • Share

Outline of the course /

OVERVIEW

Fund Philosophy

Quality stocks do not necessarily make a strong portfolio. That’s why the philosophy of the UBS Global High Conviction Fund revolves around both selecting the best stocks, and which stocks can be combined to create a strong portfolio. By removing factor tilts and sector bias, the fund aims to provide consistent outperformance.

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01.

Competitive Advantage

Historically, it has all been about finding the right information to make a decision. Urs Raebsamen of UBS claims that today it’s about filtering the right information from a sea of data. The UBS Global High Conviction Fund aims to use a carefully designed system of analytics to maintain a competitive advantage.

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02.

The Team

With research being at the heart of high conviction, then UBS Global High Conviction Fund makes use of 40 analysts across the world to provide in-depth insight into their respective areas of expertise. Two experienced portfolio managers filter through the ideas and ensure only the strongest and most well-considered stocks enter the portfolio.

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03.

Role in Portfolio

The UBS Global High Conviction Fund is aimed at Australian investors, who as a general rule have a heavy domestic bias. By excluding Australia, the fund provides a degree of diversification and exposure that complements those heavily invested within Australia.

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04.
Structures and Objectives

Unique Aspects of the Fund

Consistency is key for the UBS Global High Conviction Fund. It has employed the same philosophy since 2004, and over that time has developed in-house tools that are constantly added to and improved. In-house developed tools allow for greater flexibility and are intimately known by the team who use them daily.

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05.

Rules and Returns

In order to find the best stocks for the portfolio, the team is granted a large amount of freedom. Being unconstrained allows the team to scour the world for opportunity, as long as it meets the fund’s core philosophy of high conviction. The fund avoids Australian shares and aims for consistent outperformance of the benchmark.

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06.

Buy and Sell Disciplines

A strict buy and sell discipline is used to maintain the high conviction nature of the UBS Global High Conviction Fund. Stocks are cut from the portfolio when they underperform or their market price reaches their intrinsic value. Additionally, a stock will not be bought unless there is both a strong case for inclusion and it synergises with other stocks in the portfolio, with the aim to minimise region or sector bias.

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07.
Best Suited For

Key Considerations for Investors

The UBS Global High Conviction Fund uses logic and analysis to distance itself from the risk emotional investing poses, reducing the risk of buying at the peak and selling at the bottom. The fund will suit investors who have a risk tolerance that suits global equities and those with an investing horizon of over five years.

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08.

Test yourself /