UBS Asset Management in Canada

Investment opportunities referred to are available in Canada only to Accredited Investors who qualify as Permitted Clients.

The manager of the Fund referred to in the investment profile may not be registered in any Canadian province or territory to act as an investment fund manager. The manager's directors and officers may be located outside of Canada and, as a result, it may not be possible for Canadian purchasers to effect service of process within Canada upon the Fund or such persons. All or a substantial portion of the assets of the Fund may be located outside of Canada and, as a result, it may not be possible to satisfy a judgment against the Fund in Canada or to enforce a judgment obtained in Canadian courts against the Fund, outside of Canada. If the manager of the Fund is located outside of Canada, then UBS Asset Management (Canada) Inc. will act as the agent for service of process of the manager in Canada. UBS Asset Management (Canada) Inc. is located at 161 Bay Street West, Suite 4100, Toronto, Ontario, M5J 2S1.

UBS Asset Management services offered to Canadian persons are provided by UBS Asset Management (Canada) Inc., a Nova Scotia corporation. UBS Asset Management (Canada) Inc. is an indirect wholly-owned subsidiary of UBS AG and is registered as a portfolio manager and exempt market dealer (in all provinces of Canada), commodity trading manager (Ontario), adviser – commodity futures (Manitoba) and investment fund manager (Ontario, Quebec and Newfoundland), all pursuant to Canadian securities law. Materials may include forward-looking statements. Actual future results, however, may prove to be different from expectations. Past performance is no guarantee of future results. Potential for profit is accompanied by possibility of loss.

Please confirm you are a Canada resident to proceed.

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Fixed income A globally oriented service for a globally integrated world

From traditional to alternative – whatever your risk profile is, our fixed income range is designed to offer you a broad spectrum of capabilities even under the most challenging market conditions. By utilizing a range of investment vehicles and benchmarks, we can tailor our offering to meet your needs.

Fixed income

Delivering the best of our capabilities to you

From a globally integrated investment platform, our Fixed Income teams are able to offer a diverse product spectrum to meet the unique individual needs of clients from around the world.

Our fixed income capabilities go beyond the 'core' government and corporate bond sectors and extend to other sectors such as high yield and emerging market debt as well as unconstrained and currency strategies.

We combine these capabilities to create country, regional and global strategies and customized solutions with a wide range of benchmarks that are available through a variety of investment vehicles to retail and institutional clients worldwide.


Bringing our expertise to you

Track record

We are a leading fixed income provider, managing more than USD 208 billion globally. 71% of our funds rank in the top two quartiles over a 5 year period (Lipper, percentage based on invested assets as at December 2015).

Globally integrated resources

With a dedicated team of 160 investment professionals located across the globe and trading desks in Chicago, London, New York, Singapore, Sydney and Zurich we connect global expertise with deep local knowledge to align alpha opportunities and risk exposure.

Unique insights

Our uniquely structured global credit research process offers you the best of our thinking from teams around the world. Our capability includes more than 25 credit analysts. We take a globally integrated approach, leveraging the links between credit and equity research.

Disciplined investment process

In our view, combining a top down and bottom up dynamic approach to exploit diversified sources of alpha is key to delivering consistent performance over time. Given our size we are nimble enough to add value via security selection, while still enjoying the ability to seek optimal execution in the markets.


Finding the answers you need – our investment approach

Our fixed income investment philosophy centers around three principal tenets:

Robust research process

  • To meet the demands of a globally integrated world, our robust research process connects our global overview with the insight of regional specialists.

Diversification of alpha sources

  • We diversify by time horizon, and by exploiting the full opportunity set: credit beta, credit sector, choice of security, duration, yield curve, and country allocation.
  • Further diversification comes from using a blend of judgement and models, combining top down macro inputs with bottom up security selection, as we seek to generate consistency of credit alpha.

Risk control

  • Risk control is an integral part of the fixed income investment process. It is not simply an adjunct.

Investment strategies

Benchmark

Salomon Smith Barney World Government Bond Index

Objective

Maximize total return, consisting of both capital appreciation and current income, by investing in investment-grade global debt securities, with the majority of investments generally in sovereign, agency and supranational debt issues.

Investment philosophy

To select the most attractive fixed income securities within each country or market, investment management makes its decisions within a global asset allocation framework and synthesizes the ideas of senior fixed income professionals around the world.

Investment process

  • Global macroeconomic and political analysis determines optimal country and currency weightings, and a maturity mix that provides opportunity for appreciation, while aiming to limit interest rate risks.
  • Fundamental company research to determine intrinsic value of securities.

Benchmark

J.P. Morgan Corporate Emerging Markets Bond Index Diversified

Objective

Seeks to outperform the benchmark by investing in emerging markets corporate bonds denominated in USD, and may also invest in emerging markets sovereign and/or quasi-sovereign bonds should corporate bond risk premiums over sovereign bonds be deemed unattractive.

Investment philosophy

We employ top-down macroeconomic and bottom-up credit research to develop investment themes and select appropriate securities.

Investment process

By balancing top-down and bottom-up analysis, the investment process brings together extensive experience as well as a diversity of thought and opinion from the fixed income investment committee, the emerging markets debt strategy team, and the credit research team – supported by quantitative tools and models.

  • Top down analysis focuses on the global macro framework. It explores global macroeconomic trends, examines macroeconomic factors, and scrutinizes the macroeconomic risk framework. 
  • Bottom-up analysis focuses on countries and sectors, considering economic, political and social factors.
  • Based on the combined results, the overall allocations and risk budget are defined for the strategy, which is then implemented in specific portfolios with individual exposures to regions, countries, sectors, spreads, and currencies.
  • Each portfolio is subject to continuous monitoring of positions and risks.

Benchmark

J.P. Morgan Emerging Markets Bond Index Global (EMBIG)

Objective

Outperform benchmark by investing in a wide range of emerging market fixed income securities issued by sovereign, agency and corporate borrowers.

Investment philosophy

  • Discrepancies sometimes occur between securities' market prices and their fundamental values.
  • In the case of emerging markets debt, price volatility can exceed that of underlying macroeconomic fundamentals.
  • We seek to take advantage of these discrepancies by using a disciplined approach to estimate fundamental value.

Investment process

  • Credit selection - In our price/value framework we search for bonds with the potential to deliver strong performance, given the firm's country and market views.
  • Risk management - During portfolio construction we evaluate potential trades within a risk management framework, which compares our portfolio to its benchmark.
  • Feedback - Detailed analysis allows us to measure the impact of every country and security decision made.