UBS Global Asset Management has responded to MySuper legislation with two new, low-cost, multi-asset funds combining passive index investment with active asset allocation.
Head of UBS Australia and New Zealand Ben Heap said the UBS Tactical Beta Fund – Conservative and the UBS Tactical Beta Fund – Growth, spoke directly to the Government's MySuper initiatives to provide members with a "straight-forward, transparent, low cost solution".
Heap said the funds were also a response to the growing demand from clients for passive superannuation solutions. UBS established a Sydney-based structured beta and indexing team led by Chris Wolak in Australia last March, recognising the need to build the company's passive capabilities.
The funds are built on underlying passive building blocks – mainly exchange-traded funds (ETFs) – which are married with tactical asset allocation expertise; the "long-term heart and soul of the UBS Global Asset Management business", Heap said.
"We're actually broadly very supportive [of MySuper legislation] … however our sense is that need not be to the exclusion of some of the active investment strategies that are able to generate better than index-type returns," he said.
Heap said UBS has over 100 investment professionals scattered across the globe, dedicated to the "thoughtful" allocation of funds across asset classes.
The passive underlying "building blocks" and low cost structure of the new funds gave UBS confidence in delivering better long-term performance for investors, Heap said.
