Brace for flight to quality stocks, UBS says

HONG KONG: It’s time for investors to raise the quality bar for stocks to invest in, according to UBS Group AG.

Strategies that favor quality factors – including measures such as high gross margins, elevated cash flow-to-asset ratios and low accruals – should outperform in the year ahead, said Paul Winter, head of quantitative research for Asia-Pacific at UBS in Sydney.