UBS Global Asset Management has successfully closed its first closed-end fund in Canada, the UBS Global Allocation Trust, raising $180 million.

Units of the trust are now trading on the TSX under the symbol GAT.UN.

The trust is based on the popular and long-running UBS Global Allocation strategy and is designed to provide actively managed, risk-controlled foreign exposure using the firm’s global security selection and asset allocation capabilities. Attention is paid to maximizing return opportunities within a risk-sensitive context, with an additional focus on avoiding negative absolute returns.

For the 10 years ending December 31, the Global Allocation Strategy had an average annual compound return of 10.1%. Over the 22 years since the inception of the strategy, it has posted a negative absolute return in only two years.

The trust derives value from three levels of active management: asset allocation; security selection among seven asset classes (U.S. equity, International equity, U.S. bonds, Global bonds, High Yield bonds, Emerging Market equity and Emerging Market Debt); and currency managment.

The trust has a term of seven years and will seek to maximize capital appreciation while offering an annual minimum distribution of 5%, paid in quarterly installments. Liquidity is available via yearly redemption at NAV or via trading on the TSX.

The syndicate of agents for the offering was co-led by RBC Capital Markets and CIBC World Markets Inc. and included BMO Nesbitt Burns Inc., National Bank Financial Inc., Scotia Capital Inc., TD Securities Inc., Canaccord Capital Corp., Desjardins Securities Inc., Dundee Securities Corp., First Associates Investments Inc., HSBC Securities (Canada) Inc., Raymond James Ltd., and Research Capital Corp.