UBS Wealth Management Research (WMR) provides guidance to help clients with regular tactical asset allocation recommendations. This research is updated monthly and relies on a thorough analysis of factors such as market valuations, current market conditions, economic trends, company earnings and credit fundamentals. These recommendations are developed by an international team of investment strategists, drawing on the work of our economics team and our sector analysts. Tactical asset allocations which appear in the WMR publication, Investment Strategy Guide, are vetted by the Wealth Management Americas Investment Committee.

A number of asset allocations are provided across seven investor risk profiles to assist clients in making educated choices on how portfolios should be composed and in determining what direction to shift their portfolio composition. These asset allocations include the following dimensions:

• Cross Asset Class Allocation (equities, bonds, cash, nontraditional assets)
• Equity Market Allocation across countries (choosing between the U.S., other developed markets and emerging markets)
• Bond Market Allocation across countries (choosing between the U.S. and other developed markets)
• U.S. Equity Sector Allocation (choosing among broad equity sectors such as financials, healthcare or energy)
• U.S. Equity Size & Style Allocation (such as large-cap versus mid-cap or small-cap, and value versus growth)
• U.S. Fixed Income Allocation (choosing among U.S. bond market segments, including Treasuries, TIPS, agencies and investment-grade corporate bonds)
• Nontraditional Asset Allocation (including commodities and alternative investments as part of a diversified portfolio together with equities, bonds and cash)