Benefits of investing in the UBS Wholesale Plus Australian Bond Fund

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

• The potential to receive quarterly distributions and the potential for capital growth over the medium-to-long term.

• The pooling of assets in the Underlying Fund provides investors with access to investment opportunities and diversification that may not be available to an individual investor.
• The Underlying 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 UBS Wholesale Plus Australian Bond Fund (the Fund) is likely to be appropriate for a consumer:
– seeking to achieve quarterly distributions and the potential for capital growth, through investing in an actively managed, diversified portfolio of largely investment grade fixed income securities, cash equivalents and cash. Please refer to the PDS for further details of the Fund’s investment objective;
– intending to access the Fund through an Investor Directed Portfolio Service (IDPS), IDPS-like scheme or a nominee or custody service, a managed account or any other service or platform approved by us (collectively referred to as an 'Investment Service') or through a superannuation fund. The Fund isn't open to direct investors;
– intending to use the investment in the Fund as a core component, minor or satellite allocation within a portfolio;
– who has an investment timeframe of at least 4 years;
– who has a 'Medium to High' risk/return profile; and
– seeking the ability to make daily withdrawal requests and for withdrawal proceeds to be paid typically within 10 Business Days to the consumer's Investment Service or superannuation fund under normal market conditions.

About the Fund

The Fund will invest into the UBS Australian Bond Fund APIR SBC0813AU (Underlying Fund).

The Underlying Fund's strategy is managed employing both top-down research and bottom-up security specific analysis to build a portfolio exhibiting the core defensive characteristics of the Australian fixed interest asset class. The Underlying Fund aims to hedge foreign currency exposures to Australian dollars.

How we invest your money

The Underlying Fund may invest up to 100% in predominantly Australian fixed income securities, global fixed income securities, cash and cash equivalents. The Underlying Fund may hold up to 5% in non-investment grade securities.

Eligible investments of the Underlying Fund comprise fixed income and cash equivalent securities. These may include government, semi-government and corporate bonds, mortgage and other asset backed securities. The Underlying Fund may also invest in financial derivatives to gain or to reduce exposure to relevant markets and manage investment risk. Derivative holdings may result in notional exposures that are greater than the underlying value of assets in the Underlying Fund.

The Underlying Fund's asset allocation, as at 30 April 2019 was:

• Government bonds: 24%

• Semi government bonds: 25%

• Supranational/Sovereign agency bonds: 18%

• Corporate bonds: 23%

• Covered bonds and Mortgage-Backed bonds: 5%

TOTAL FIXED INCOME SECURITIES: 95%

CASH, MONEY MARKETS AND OTHER: 5%