- Equity Investments: The fund holds a mix of stocks, investing in global equity markets. These investments are chosen with an emphasis on companies with strong growth potential.
- Fixed Income: The fund includes investments in government and corporate bonds to provide stability and income generation.
- Alternative Investments: The UOB GARMF Fund may also allocate a portion of its assets to alternative investments such as real estate, commodities, and hedge funds. This helps to further diversify the portfolio and manage risk.
- Currency Hedging: As part of its risk management strategy, the fund may use currency hedging to protect against foreign exchange risks, especially when investing in international markets.
Performance and Risk Considerations
The UOB GARMF Fund is designed to provide absolute returns, meaning that the fund aims to generate positive returns regardless of market movements. However, like all investments, the fund is subject to various risks. Some of the key risk factors include:
- Market Volatility: As the fund invests in equities and other riskier assets, it is susceptible to market fluctuations and economic cycles.
- Interest Rate Risks: Changes in interest rates can impact the performance of the fixed income and bond segments of the portfolio.
- Geopolitical Risks: International investments expose the fund to risks arising from political instability, trade wars, and regulatory changes.
- Liquidity Risks: Depending on the specific asset classes within the portfolio, liquidity may vary, and certain investments may take longer to convert into cash. shutdown123