UBS Australian Bond Fund
About this Fund
|FUND MANAGER||UBS Asset Management (Australia)|
|ASSET CLASS||FIXED INTEREST|
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|
|NO. OF HOLDINGS|
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 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
|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.
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.
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.
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 class / Strategic allocation as at 31 July 2015
Fixed income securities 96%
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.