Benefits of investing in the UBS International Bond Fund

The significant benefits and features of investing in the Fund are:

• Investment return: The Fund seeks to provide total returns, consisting of income and capital growth, by investing in 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.

• Research resources: UBS has a large, experienced fixed income team managing over $321 billion at 30 June 2018 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.

• 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.

• Distributions: The potential to receive quarterly distributions.

• Institutional access: Retail investors gain access to institutional bond markets that would otherwise not be available.

Risk level

Low to Medium

Investor suitability

The Fund is best suited to investors who seek a diversified portfolio of investment grade global fixed income securities, with foreign currency exposure generally hedged to Australian dollars.

About the Fund

The Fund aims to provide investors with a total return (after management costs) in excess of the Barclays Capital Global Aggregate Index ($A hedged) when measured over rolling three year periods.

The strategy is managed employing both top-down macroeconomic research and bottom-up security specific analysis to build an optimal portfolio with the core defensive characteristics of the fixed interest asset class. The Fund actively allocates across sectors and regions in seeking to maximise returns, while minimising risk.

Investment objective

The Fund aims to outperform the Bloomberg Barclays Global Aggregate Index (hedged to AUD) over rolling 3-year periods.

How we invest your money

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. The Fund actively allocates across sectors and regions in seeking to maximize returns, while minimising risk.

Investment universe

Eligible investments of the Fund comprise fixed income securities, cash equivalent securities and short term deposits, including government bonds; US mortgage backed securities and other collateralised securities; corporate bonds; agency debt; foreign sovereign, regional government and supranational debt; and UBS managed funds.

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

Investment guidelines

• The Fund may invest up to 100% in global fixed income securities, cash and cash equivalents. The Fund may hold up to 10% in non-investment grade securities.

• Effective exposure may include derivatives or managed funds.