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UBS Diversified Fixed Income Fund

About this Fund

Fund Detail

PDS https://informedinvestor.com.au/view/pds/100150-2023-08-08-03:03.pdf
FUND MANAGER UBS Asset Management
ASX Code
APIR SBC0007AU
ASSET CLASS FIXED INTEREST
INVESTMENT STYLE

The Fund’s investment strategy is to invest in a portfolio of Australian and global fixed income securities.

INVESTMENT PROFILE

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. 

CURRENCY MANAGEMENT Hedged
INCEPTION DATE 31-01-1997
BENCHMARK 50% Bloomberg AusBond Composite 0+ Yr Index / 50% Bloomberg Barclays Global Aggregate Index (hedged to AUD) over rolling 3 year periods
FUND SIZE 50% Bloomberg AusBond Composite 0+ Yr Index / 50% Bloomberg Barclays Global Aggregate Index (hedged to AUD) over rolling 3 year periods
DISTRIBUTION FREQUENCY Quarterly
NO. OF HOLDINGS
FEES 0.55% p.a. of the net asset value of the Fund
STRUCTURE

Benefits

Benefits

Benefits of investing in UBS Diversified Fixed Income Fund

By investing in the Fund, you gain access to an actively managed, diversified portfolio of fixed income securities designed to be a core part of an investor's portfolio.

The significant benefits of investing in the Fund are:

  • Investment return - The Fund seeks to provide total returns, consisting of income and capital growth, by investing in Australian and global fixed income securities that provide predictable and stable returns;
  • Defensive - As a diversified portfolio of fixed income securities, the Fund offers risk and return diversification benefits against equity markets;
  • Flexible and opportunistic - The Fund is managed across regions and sectors in response to market changes, investing where we identify the best opportunities to enhance performance;
  • Research resources - UBS has a large, experienced fixed income team managing over $294 billion (as at 30 June 2017) globally, specialised in managing global fixed income portfolios. Our global research & trading teams are located in offices in Sydney, New York, Chicago, Tokyo, London, Zurich, Hong Kong and Singapore and provide a comprehensive world view through their in-depth analysis of global market trends and regulatory conditions; and
  • Processes & systems - We have access to proprietary investment and risk management systems and processes which ordinary investors would not usually have, allowing us deeper insights at the security and portfolio level and an opportunity to maximise returns.

Risk level of the Fund
Medium
Investor suitability

The Fund is best suited to investors who seek to diversify their fixed income exposure through investment in a mix of Australian and international securities across the fixed income asset class.

RISK LEVEL Medium
INVESTOR SUITABILITY

The Fund is intended to be suitable for investors with at least a three year investment timeframe and with a medium risk and return profile. More specifically, the Fund is intended to be suitable for investors who are seeking to diversify their fixed income exposure through investment in a mix of Australian and global fixed income assets.

Risks

Title
Detail

Key Features

A fund designed to deliver consistent income and returns that can act as a defensive anchor against higher volatility asset classes such as equities.

The Fund's significant features include:

  • Foreign currency exposures are hedged to Australian dollars to manage volatility in exchange rates;
  • The potential to receive quarterly distributions;
  • Retail investors gain access to institutional bond markets that would otherwise not be available;
  • The Constitution (under which we and unit holders have certain rights and certain obligations); and
  • The ability for unit holders to apply to withdraw from the Fund or to increase their unit holding (subject to eligibility and conditions).

Why invest in the UBS Diversified Fixed Income Fund?

One-stop fixed income solution

An actively managed, diversified fund that can invest flexibly across the Australian and global fixed income universe. It is designed to be a core part of an investors portfolio.

Access global and local investment insights

Drawing on the expertise and insights of our integrated network of over 150 fixed income experts, our Sydney based team tap into the best local and global opportunities.

Consistent returns

Our disciplined and methodical investment process has been tested through numerous market cycles and has delivered consistent returns over the long-term.

We are an active manager using a fundamental research driven approach. We seek compelling opportunities across the fixed income investment universe with the objective of maximising total returns for investors.

The Fund is managed by a Sydney-based team who draw on UBS' powerful macro research capability to make top-down allocation decisions and leverage the insights of on-the-ground regional specialists to provide bottom-up security selection. This combination creates a unique ability to identify specific return opportunities that arise from different fixed income sectors across market conditions.

The Fund can invest across the Australian and global fixed income universe. Broad investment parameters provide our team with flexibility to respond to changing markets and invest where they identify the best opportunities to enhance performance and reduce risk.

Exposure is gained through a range of regionally managed UBS fixed income funds, as well as through direct access to fixed income markets.

Our expertise in fixed income

We have been managing fixed income portfolios on behalf of Australian investors for over 30 years.

Our truly integrated team of over 150 fixed income professionals are on-the-ground in Sydney, Singapore, Hong Kong, Shanghai, Tokyo, Zurich, London, Chicago and New York.

Investment strategy

The strategy is managed employing both top-down macroeconomic research and bottom-up security specific analysis to build a portfolio with the core defensive characteristics of the fixed interest asset class. Whilst the Fund seeks to be fully hedged to Australian dollars, we may invest in strategic foreign currency exposures that will not exceed 10% of the total portfolio.

Mandate

How we invest your money

Investment Guidelines

Asset Class / Strategic allocation (neutral position)*

  • Australian fixed income securities 50%
  • International fixed income securities ($A hedged) 50%
  • Foreign currency exposure 0%

* Expected exposure may include cash, derivatives, securities or managed funds.

Investment Universe

Eligible investments of the Fund comprise Australian and international cash and fixed income securities and may gain its asset sector exposure by investing in UBS managed funds or direct securities. The fixed income assets of the Fund are predominantly of investment grade quality and any foreign currency exposure as a result of securities held is generally fully hedged back to Australian dollars.

In addition, the Fund may also use foreign currency derivatives to take strategic foreign currency exposures - these will not exceed 10% of its total portfolio.

The Fund may also invest in financial derivatives to gain or reduce exposure to relevant markets and to manage investment risk.