1 UBS Dynamic Alpha Fund Class A (BNAAX). This fund is ideal for the individual investor close to retirement (three years out) or in retirement, and who is looking for capital appreciation and current income. It is classified as a multi-alternative fund. “I chose this fund because it is actively managed and has diversified holdings focused on global equities, fixed income, and currencies that use exchange-traded funds and derivative instruments,†says Slaughter. “This presents an opportunity for absolute return.†Holdings are comprised of cyclical stocks such as financial services, defensive stocks, and global investable indices including Euro Stoxx (17.9%), Russell 2000 (17.7%), Msci Taiwan (12.22%), and Nikkei 225 (Ose) (11.85%). The fund’s lower management fees and annual stock turnover rate outperform its peers in the same category at 1.35% versus 1.78% and 65% versus 194%, respectively. Its short-, mid- and long-term performance outperform its peers. “This is not a passive fund so the sales load is high,†Slaughter says. “It has value for investors interested in exploring alternatives.â€
Net assets: $280.57 billion
1-year return: 1.29%
3-year return: 13.97%
5-year return: 0.04%
YTD return: 4.30%
Min. initial investment: $1,000
Sales load: 5.50% front load
Expense Ratio: 1.81%
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