The UBS Income Solution Fund (formerly named UBS Diversified Credit Fund) has been enhanced in order to deliver a 'one stop shop' income solution. The Fund will now pay monthly distributions (previously quarterly), providing investors a regular and reliable income stream. To help with income planning, a biannual estimate of the monthly distribution will be provided to offer an element of certainty to investors. Our current estimate is 3.80% p.a. for the financial year 2016/2017.

In addition to more regular income, the Fund's management fees have been reduced to 0.60% per annum (previously 0.70%), the benchmark has changed to the RBA Official Cash Rate (replacing the Bloomberg AusBond Bank Bill Index) and the Fund's exposure to high yield (non-investment grade) securities has been limited to 25% of the Fund assets (from 40%).

"We believe these enhancements increase the attractiveness of the Fund as a core income offering providing investors with consistent and reliable distributions," says Anne Anderson, Head of Fixed Income, UBS Asset Management, Australia. Head of UBS Asset Management Bryce Doherty said: "In the current low interest rate environment, investors at all stages of life – from saving for a home deposit or school fees right through to retirees – are increasingly looking to maximize the income they generate from their investments. The UBS Income Solution Fund works for investors seeking a regular and reliable income stream that is typically higher than a term deposit or bank account."

The Fund's successful underlying investment strategy and philosophy remain unchanged. UBS Asset Management Australia draws on its extensive experience and expertise to identify and create an attractive, actively managed portfolio that consists of a variety of interest-bearing investments and securities.

ENDS

Caroline Gurney UBS Media Relations Australasia +61 2 9324 3335 (M) +61 403 279 605

Shannon Turnbull UBS Media Relations Australasia +61 2 9324 3978 (M) +61 419 799 364

UBS ASSET MANAGEMENT

UBS Asset Management (UBS) is a large scale asset manager with well diversified businesses across regions, capabilities and distribution channels, with invested assets of $894 billion globally at 30 December 2016. In Australia, UBS was established in 1986 and has invested assets of $30 billion at 30 December 2016. UBS provides investment management solutions to private clients, financial intermediaries and institutional investors across the world. UBS Asset Management is truly a global asset manager with presence in 22 countries through local office or joint venture.

To meet the needs of our clients, UBS Asset Management offers a diverse range of investment capabilities and styles. We offer equity, fixed income and multi-asset capabilities. UBS Asset Management has a history of investment expertise, delivery and execution in the investment management industry. We aim to combine the latest in portfolio construction, risk management, product development and investment knowledge.