SKN | UBS Highlights Three Global Mutual Funds for Long-Term Portfolio Diversification

 

Key Takeaways:

• UBS Asset Management recommends three diversified mutual funds that provide exposure to international equities, U.S. value stocks, and alternative investment strategies for long-term investors.
• The selected funds have earned strong Zacks rankings and have delivered competitive multi-year annualized returns while maintaining expense ratios below their category averages.
• The recommendations reflect UBS’ focus on diversified asset allocation, combining global equity exposure with value investing and alternative strategies to help manage portfolio risk.

 

UBS Asset Management continues to emphasize diversified investing through a selection of global mutual funds designed to provide exposure across international equities, U.S. value stocks, and alternative investment strategies.

Backed by UBS’ global investment platform, which expanded further following the integration of Credit Suisse in 2023, the recommended funds aim to help investors build balanced portfolios capable of navigating different market environments over the long term.

International Equity Exposure

The PACE International Equity Fund (PCIEX) focuses primarily on investing in non-U.S. equities through direct holdings and other investment vehicles.

Managed by Fred Lee since 2009, the fund has generated annualized returns of approximately 19.6% over three years and 10.0% over five years. As of January 2026, its largest holdings included Banco Santander, Nestlé, and Lloyds Banking Group.

The fund currently carries a Zacks Rank #1 (Strong Buy) while maintaining a net expense ratio of 1.00%, below the average for its category.

U.S. Value Investing

The PACE Large Co Value Equity Fund (PCLVX) targets large-cap U.S. companies considered undervalued, investing primarily in stocks within the Russell 1000 Value Index universe.

Managed by Mayoor Joshi since 2019, the fund has delivered annualized returns of approximately 19.8% over three years and 11.4% over five years.

Its largest holdings include Elevance Health, Samsung Electronics, and Citigroup, reflecting a diversified portfolio spanning healthcare, technology, and financial services.

PCLVX currently holds a Zacks Rank #2 (Buy) with a net expense ratio of 0.89%.

Alternative Strategy Diversification

For investors seeking broader diversification, the PACE Alternative Strategies Fund (PASIX) combines global equities, fixed income, emerging market investments, exchange-traded funds, and structured securities within a multi-asset framework.

Managed by Andrew Y. Kurita since 2017, the fund has produced annualized returns of approximately 8.2% over three years and 4.5% over five years.

Its portfolio currently maintains significant allocations to corporate bonds and short-term investments, providing a more defensive profile compared with traditional equity-focused funds.

PASIX holds a Zacks Rank #2 (Buy) with a net expense ratio of 1.83%.

Diversification Remains Central to Long-Term Investing

The three UBS funds illustrate different approaches to portfolio construction, combining international equity exposure, domestic value investing, and alternative assets.

By investing across multiple regions, sectors, and asset classes, diversified portfolios may reduce concentration risk while providing opportunities to participate in different market cycles.

UBS continues to position diversified investment strategies as an important component of long-term wealth management, particularly during periods of changing economic and market conditions.

What Investors Should Watch

Investors should evaluate each fund’s investment objectives, historical performance, expense ratios, asset allocation, portfolio holdings, and risk profile to determine how they fit within broader long-term financial goals. Market conditions, interest rates, and global economic trends will also continue influencing future fund performance.

Closing Insights

UBS’ recommended mutual funds reflect a diversified investment philosophy that balances global equity exposure, value-oriented investing, and alternative strategies. As investors continue navigating evolving market conditions, maintaining diversification across multiple asset classes remains a key principle for building resilient long-term portfolios.

For a confidential discussion regarding your cross-border banking structure, real estate allocation strategy, or global income portfolio design, contact our senior advisory team.