UBS Asset Management
The latest research and outlooks in the ProAllocate library
- Fixed Income
The upside of bond market volatility
UBS Asset Management argues that rising global bond yields have skewed potential returns favorably, with higher income cushioning losses from further rate rises and offering upside if yields fall. Persistent inflation and sovereign debt pressures mean investors must stay selective across duration, country and credit exposure.
- Emerging Markets
Resilience in emerging markets
UBS Asset Management argues emerging-market equities and debt showed resilience in September despite higher oil prices, rising US yields and a stronger dollar, supported by AI-driven capex, resilient earnings and strong technicals.
- Emerging Markets
Rethinking emerging markets
UBS Asset Management argues emerging-market equities and debt offer compelling diversification given cheap valuations, improved fundamentals and structural growth drivers, yet remain underweight in investor portfolios relative to developed markets.
- Hedge Funds
Unified Global Alternatives – Hedge Fund Bulletin
UBS's Unified Global Alternatives team reports hedge funds posted mixed September returns as sharply higher bond yields and a strong dollar pressured Equity Hedged and Relative Value strategies. Carry income and selective commodity bets in rare earths, natural gas and crude oil offset losses, while AI-driven equity dispersion widened manager performance.
- Emerging Markets
Redrawing the Asian income map
UBS's Lucy Thomas argues Asian investors' home-biased income portfolios are too narrowly concentrated in domestic equities, banks and property, and should diversify into global fixed income, EM debt and private markets.
- Private Markets
The art of a successful co-investment
Private equity professionals including Patria Investments' Karin Hyland and UBS Asset Management's Thomas Roche Toussaint explain why co-investment demand is surging, driven by fee savings, diversification and portfolio control. They warn success requires dedicated underwriting, GP relationships, and discipline against overpaying or vintage-concentration risk.
- Portfolio Construction
A total fund lens on better investing
UBS's Massimiliano Castelli and Philipp Salman argue total portfolio approach (TPA) replaces fixed policy weights with an opportunity-cost test, judging each investment against the best available alternative for the whole fund. They contend TPA improves institutional decision-making through governance and liquidity discipline, not a guarantee of outperformance.
- Hedge Funds
Strategy Outlook
UBS Asset Management's Unified Global Alternatives – Hedge Funds team argues AI remains the dominant driver of both opportunity and risk heading into Q4 2026, while rising real rates and Middle East tensions complicate macro positioning. It favours quantitative equity, merger arbitrage and discretionary macro/commodities, while trimming fixed income relative value exposure.
- Portfolio Construction
The market is the economy
UBS's Barry Gill argues that AI-driven circular financing extends beyond tech firms into a reflexive loop binding markets, consumer spending, earnings, tax receipts and policy. He warns conventional diversified portfolios may now be concentrated single bets on the same AI narrative, urging diversification by causal pathway.