UBS Australian Bond Fund

About this Fund

Fund Detail

PDS https://informedinvestor.com.au/view/pds/100063-2023-08-08-03:03.pdf
FUND MANAGER UBS Asset Management (Australia)
ASX Code

The Fund’s investment strategy is to invest in a portfolio of largely investment grade fixed income securities, cash equivalents and cash.


The Fund is actively managed, based on fundamental research that draws upon the investment insights of our fixed income teams. The approach employs both “top-down” research, including analysis of economic factors, market data and macro credit themes and “bottom-up” research in respect of particular securities, including analysis of earnings and cash flow stability, balance sheet strength, industry and valuation. 

BENCHMARK Bloomberg AusBond Composite 0+Yr Index
FUND SIZE Bloomberg AusBond Composite 0+Yr Index
FEES 0.45% p.a



Benefits of investing in UBS Australian Bond Fund

By investing in the Fund, you gain access to an actively managed, diversified portfolio of fixed income and cash equivalent assets.

An investment in the Fund has a number of benefits, including:

  • The potential to receive quarterly distributions and the potential for capital growth over the medium-to-long term;
  • The pooling of assets in the Fund provides investors with access to investment opportunities and diversification that may not be available to an individual investor;
  • The Fund is actively managed by a team of experienced professionals with access to investment and risk management systems and processes which ordinary investors would not usually have.

The Fund's significant features include its Constitution (under which we and unit holders have certain rights and certain obligations), the payment of distributions from time to time and the ability for unit holders to apply to withdraw from the Fund or to increase their unit holding or switch their unit holdings (subject to eligibility and conditions).

Risk - Low to Medium
Investor Suitability

The Fund is best suited to investors who seek a diversified portfolio of investment grade fixed income and cash equivalent assets. Investment returns will fluctuate over the shorter term and may even be negative.

RISK LEVEL Low to Medium

The Fund is intended to be suitable for investors with at least a three year investment timeframe and with a low to medium riskand return profile. More specifically, the Fund is intended to be suitable for investors who are seeking a portfolio with exposure to fixed income markets consisting largely of investment grade fixed income securities, cash equivalents and cash. 



Key Features

Fund description

To provide investors with access to an actively managed, diversified portfolio of predominantly investment grade Australian fixed income assets.

The Fund is a low to medium risk investment and is designed as a core component within the defensive allocation of investor's broader portfolio.

Investment strategy

The strategy is managed employing both top-down research and bottom-up security specific analysis to build the optimal portfolio exhibiting the core defensive characteristics of the Australian fixed interest asset class.

Investment objective

The Fund aims to outperform (after management costs) the Bloomberg AusBond Composite 0+Yr Index over rolling three year periods.


Eligible investments of the Fund comprise fixed income and cash equivalent securities. These may include government, semi-government and corporate bonds; mortgage and other asset backed securities. 

At the time of purchase, all securities of the Fund must be of investment grade credit rating. The Fund may choose not to sell securities that are downgraded below investment grade after their purchase. The Fund may also invest in financial derivatives to gain or reduce exposure to relevant markets and manage investment risk. Foreign currency exposures are hedged to $A.

Asset Allocation 

Asset class / Strategic allocation as at 31 July 2015

Fixed income securities 96%

  • Government Bonds* 17%
  • Semi Government Bonds 23%
  • Supranational/sovereign agency Bonds 15%
  • Corporate Bonds* 28%
  • Covered Bonds and Mortgage-Backed Bonds 13%

Cash and money markets 4%

*Effective exposure may include derivatives. 

Given the investment strategy and investment return objective of the Fund, its strategic asset allocation may vary significantly from time to time and without notice.