The Fund’s investment strategy is to invest in a portfolio of Australian and global corporate credit, asset backed, and other fixed income securities, cash equivalents and cash

Benefits of investing in the UBS Income Solution 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 fixed income assets that provide predictable and stable returns.

• Research resources: UBS has a large, experienced fixed income team managing over $321 billion (as 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 corporate credit trends.

• 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 monthly distributions.

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

• Hedging: Foreign currency exposures are typically hedged to Australian dollars to manage volatility in exchange rates.

Risk level

Medium

Investor suitability

The Fund is best suited to investors who seek a portfolio with exposure to credit markets consisting largely of Australian credit assets and some exposure to international credit assets.

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 a portfolio with exposure to Australian and global corporate credit, asset backed and other fixed income securities, cash equivalents and cash. 

About the Fund

The Fund is an actively managed, diversified portfolio of corporate credit assets with exposure to Australian and global markets, designed to provide an income yield to investors. The majority of the Fund will be invested in investment grade securities with some exposure to non- investment grade securities.

Investment strategy

We seek to build the optimal portfolio exhibiting attractive income and risk characteristics and we undertake this by employing both top-down research and bottom-up security specific analysis. The Fund is managed with the intention of maximising total return (income plus growth).

Investment objective

The Fund aims to outperform (after management costs) the Reserve Bank of Australia Official Cash Rate over rolling three year periods.

How we invest your money

Asset allocation

The Fund may invest up to 100% in investment grade corporate credit assets, cash and cash equivalents. This may include up to 25% in high yield (non-investment grade) assets.

Investment universe

Eligible investments of the Fund comprise Australian and international assets. Investments may include hybrids, high yield securities, corporate bonds, securitised assets and loans. The Fund may invest in other UBS managed funds to gain exposure to certain eligible assets. The Fund may also utilise derivatives to gain or reduce exposure to relevant markets, currencies and to manage investment risk.