Winnersrationale

Real assets were a popular asset class in 2022 to hedge inflation and diversify away from traditional risk assets and this is where UBS Asset Management’s (UBS-AM) Globally diversified multi-manager real estate strategy can be a good fit for client portfolios.

The strategy provides instant exposure to a highly diversified core global real estate portfolio of 59 investments, across 28 countries, with over 11,000 properties. The strategy invests in an array of formats spanning primaries, secondaries, co-investments, new fund formations (including GP-led recapitalizations).

Volatility has become commonplace across the wider financial market in the last 12 to 18 months as interest and inflation rates rise. UBS-AM has taken steps to further strengthen the strategy’s defensive characteristics. It has tilted the strategy towards properties that benefit from favorable demand-supply dynamics, safeguarding its income and inflation-protection features.

Since its inception, the strategy has provided strong risk/return benefits for investors and this is especially apparent in the current times. The one-year return was 13.69% as of the end of November 2022 – for the EUR I-12-dist share class. This is against a low volatility of 2.82% (as of 30 November 2022) making the strategy a bedrock investment for diversified portfolios.

Since its launch in 2008, the strategy has gathered EUR 8.9 billion in AUM (as of 31 October 2022). Demand from Asian investors is rising and it is currently offered by 17 private banks in the region, up 21% YoY. It is also available on a major digital wealth management platform, giving access to younger and digital savvy private clients.

UBS Asset Management wins Best Fund Provider – Real Assets in Asian Private Banker’s 2023 Asset Management Awards for Excellence.