UBS Asset Management United Kingdom Please confirm you are a US resident to proceed.

UBS US Core Plus

Objective

Outperform benchmark and seek incremental return by investing in a diversified portfolio combining US investment grade (at time of purchase) bonds with opportunistic holdings in US high yield, emerging market debt and high-quality non-dollar fixed income securities.

Benchmark

Lehman Aggregate US Bond Index

Investment philosophy

  • Markets do not always efficiently price fixed income securities relative to their intrinsic values.
  • Fundamental research and proprietary valuation models seek to exploit these price-to intrinsic value discrepancies.
  • Intrinsic values are based on estimations of future cash flows expected to accrue to an investor.

Investment process

  • Combine quantitative analysis with seasoned judgment to assess entire fixed income universe, including sectors, maturity intervals, quality and coupon segments, and specific fixed income securities.
  • Because of need for diversification when investing in high yield or emerging market debt, we generally use proprietary funds to gain exposure to these sectors.
  • Currency strategy is normally fully hedged to the US dollar; up to 15% may be unhedged when significant price/value discrepancies are present.

 

Fixed income strategies are primarily subject to all the investment risks associated with bonds and other fixed income securities. Bonds are subject to interest rate and credit risk. Strategies that invest in high yield bonds are subject to greater volatility and potential loss of principal. Strategies that invest in foreign and emerging market bonds are subject to special risks that are not normally associated with domestic investment, including possible adverse currency fluctuations and political, social and economic risks. There can be no assurance that any strategy will achieve its objective.