UBS Global Asset Management has launched its new UBS Market Neutral Multi-Strategy Fund. The fund is an alternative strategy designed to offer returns with low volatility and minimal correlation to the global equity and fixed income markets.
According to the company, the fund seeks to achieve a total rate of return equal to 2.25% to 4.25% above the rate of return on three-month US Treasury Bills, net of annual fund operating expenses, over a rolling five-year time horizon.
The fund’s investment team combines three investment approaches: fundamental, quantitative and event-driven to enhance diversification.
Barry Mandinach, head of pensions and wholesale distribution at UBS Global Asset Management, said: “Investors face many challenges today. They need the growth that equities have historically provided, but they don’t want to endure the volatility of the past few years. Bonds have historically offered principal preservation and price stability, but given today’s low rate environment, the specter of rising interest rates is real.
“We believe the UBS Market Neutral Multi-Strategy Fund may be a solution to these challenges. The fund is designed to provide low volatility and more consistent returns, without reliance on favorable equity or bond markets.”