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UBS (Lux) Bond SICAV - Emerging Markets Bonds 2021 (USD) P-dist
ISIN no.:  LU1562321908
PDF
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Overview  
Category profile
The concept of UBS Fixed Maturity Funds is straightforward: clients do not just invest in a single bond, but in a number of carefully selected bonds. And, last but not least, these UBS Funds have a fixed maturity. The fund concept in brief:

1. Investors invest a certain amount in the fund. Our portfolio management team purchases various bonds for the fund. The investment period is determined beforehand.

2. During this period, investors will receive regular income, provided they select the distributing option.

3. The redemption is carried out upon maturity.

Therefore, UBS Maturity Funds are like a single bond - but diversified!

Fund description
The fund invests primarily in US dollar denominated bonds from emerging markets sovereign, quasi-sovereign and corporate issuers. As at initial investment, the average credit quality of the bonds in the portfolio is investment grade, i.e. not lower than BBB- (Standard & Poor's), and Baa3 (Moody's) respectively, but this may change during the life of the fund.
No single bond in the portfolio matures later than the fund itself (fund maturity: 16 December 2021). Cash flows will be reinvested in issues not purchased at fund inception, or used to increase any existing portfolio positions, depending on the market environment, or held in cash / cash equivalents to meet fund liquidity requirements.
The portfolio management team generally follows a 'buy and hold to maturity' approach, while continuously monitoring all the bonds in the portfolio with scrutiny over the full life of the fund and taking appropriate action as and when required.

Key benefits
Investors can make an investment akin to a single bond with a fixed maturity, but with all the benefits of diversification and professional management.
Investors can lock in yields and credit spreads at current levels due to a 'buy and hold to maturity' approach.
Investors have access to a bond investment with limited duration risk, provided they stay invested until maturity, which may be of particular interest for those concerned about rising interest rates.
Investors can gain broad exposure to emerging markets sovereign and corporate bonds in a cost- and time-efficient way.

Risks
The fund is exposed to the risk of default on the payment of coupon or principal by issuers it holds in the underlying portfolio. Should any such default event occur, the value of the fund will be negatively impacted. During the fund’s life, its net asset value (NAV) will be impacted by interest rate and credit spread movements affecting its underlying bond holdings. Typically, a bond’s value is negatively impacted by rising interest rates and/or credit spread widening. Depending on the credit quality, the default risk is higher in the case of high yield bonds than with investment grade corporate and government bonds. Emerging markets are at an early stage of development, which can typically involve a high level of price volatility and other specific risks, such as lower market transparency, regulatory hurdles, corporate governance as well as political and social challenges. The fund does not provide any guarantee on pay-outs of income and final net asset value. There is no specific estimate of the fund’s value as of maturity. This value depends on repayments of the bonds purchased by the fund and the reinvestment of undistributed interest income. All investments are subject to market fluctuations. Every fund has specific risks, which may increase considerably in unusual market conditions. This requires corresponding risk tolerance and capacity.

Product features
Product type
Open end
Product category
UBS Bond Funds
UBS Fixed Maturity Funds
Product domicile
Luxembourg
Portfolio management
UBS Asset Management
Fund management
UBS Fund Management (Luxembourg) S.A.
Custodian bank
UBS Europe SE, Luxembourg Branch
Day of inception
May 18, 2017
Currency of account
USD
Close of financial year
May 31
Issue / redemption
daily
Next distribution
August
Management fee
0.68% p.a.
Total expense ratio (TER)
1.09% p.a.
Swing pricing
yes

Current data
Net asset value
USD100.25
18/10/2017
High - last 12 months
USD100.71
01/08/2017
Low - last 12 months
USD99.33
02/08/2017
Last distribution
USD1.42
07/08/2017
Assets of the unit class in mn
USD9.00
18/10/2017
Total product assets in mn
USD102.20
18/10/2017
Initial yield to maturity at inception 1)
2.82%
23/05/2017
Initial yield to maturity at re-opening 2)
2.43%
07/09/2017
Modified duration
3.00
29/09/2017
Fund maturity
16/12/2021
 
1)  net of fees and not taking defaults and issuing commissions into account
2)  Net of fees, incl. swing factor and not taking defaults and issuing commissions into account.

Symbols
ISIN no.
LU1562321908
Bloomberg Ticker
UBE21PD LX

 
Performance chart (USD-based, as of October 18, 2017)
Indexed, Daily values
Performance chart (USD-based, as of October 18, 2017)


Performance (in %, as of October 18, 2017)
in %
1
year
3
years
5
years
since
18/05/2017
USD
-
-
-
1.68
EUR
-
-
-
-3.93
These figures refer to the past. Past performance is not a reliable indicator of future results. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.

By Credit rating (in %, as of September 30, 2017)
Chart

By investment domicile (in %, as of September 30, 2017)
Chart

By the 10 largest positions (in %, as of September 30, 2017)
Petroleos Mexicanos
3.04
Dominican Republic International Bond
2.61
Perusahaan Listrik Negara PT
2.55
Croatia Government International Bond
2.29
Republic of South Africa Government International Bond
2.21
Pertamina Persero PT
2.10
MFB Magyar Fejlesztesi Bank Zrt
2.07
Republic of Poland Government International Bond
2.07
Kazakhstan Temir Zholy National Co JSC
2.07
Sinopec Group Overseas Development 2016 Ltd
2.05
For marketing and information purposes by UBS. UBS funds under Luxembourg law. Prospectuses, simplified prospectuses or key investor information, the articles of association or the management regulations as well as annual and semi-annual reports of UBS funds are available free of charge from UBS Fund Services (Luxembourg) S.A., P.O. Box 91, L-2010 Luxembourg or from UBS Europe SE, Luxembourg Branch, P.O. Box 2, L-2010 Luxembourg. Before investing in a product please read the latest prospectus carefully and thoroughly. Units of UBS funds mentioned herein may not be eligible for sale in all jurisdictions or to certain categories of investors and may not be offered, sold or delivered in the United States. The information mentioned herein is not intended to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. Past performance is not a reliable indicator of future results. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units. Commissions and costs have a negative impact on performance. If the currency of a financial product or financial service is different from your reference currency, the return can increase or decrease as a result of currency fluctuations. This information pays no regard to the specific or future investment objectives, financial or tax situation or particular needs of any specific recipient. The details and opinions contained in this document are provided by UBS without any guarantee or warranty and are for the recipient's personal use and information purposes only. This document may not be reproduced, redistributed or republished for any purpose without the written permission of UBS AG. Source for all data and charts (if not indicated otherwise): UBS Asset Management
Source for all data and charts (if not indicated otherwise): UBS Asset Management
No responsibility is taken for the correctness of the information provided above.

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