The range is still in development and is scheduled to launch next year. The current UBS house view is that hedge funds should be a significant part of portfolios, but its existing fund range does not allow for that.
“It is about enabling clients to better access our house views,” said head of investment management for the UK James Mulford. “One of our big views as a firm now is we want to be invested in hedge funds, and we recommended allocations of 14 -18%.”
“An issue with hedge funds however is that they don’t fit into some fund structures,” Mulford said. “With the range we run currently we can’t put hedge funds in so we are exploring how to incorporate them into our fund business, with a view to launching next year.” “There is still a lot of work to be done but we are hopeful it will be a really good development.”
Mulford said the new funds will be configured so as to allow the inclusion of single manager, UCITS compliant hedge funds. “It is a fast growing part of the hedge fund universe and they are tax efficient for UK investors,” he added.
UBS Wealth’s investment management unit has 450 professionals globally, with 25 in the UK. The firm’s UK business has approximately £8bn in discretionary assets and £10bn in advisory.
