Taipei, 1 February 2018－UBS Asset Management today announced the launch to the public of the UBS UBS (TW) Multi Income High Yield Bond Fund. The fund invests primarily in non-investment-grade bonds with higher risk. Dividends may be paid out of capital. Bank of Taiwan is the custodian bank
Hsin Chaio, Head of Asset Management Taiwan, noted, "The new fund launch goes in line with our commitment to develop the onshore bond market in Taiwan, and our goal of expanding our onshore fund business."
"Investor demand for high-yield bonds remains robust and, over the past 12 months, the majority of UBS Asset Management Taiwan Ltd. mutual funds have outperformed. During the first three quarters of 2017, UBS assets under management in Taiwan increased by 28% compared to the previous year, which placed UBS second among international investment trust companies," added Chaio.
"To meet the demands of local investors, the fund is also denominated in USD, RMB and AUD as well as NTD. There are Accumulation and distribution classes in all four currencies provide the investors with funding flexibility," Chaio concluded.
The Portfolio manager of the UBS (TW) Multi Income High Yield Bond Fund, Pantheon Chung, explained: "The fund has a relatively high flexibility in terms of its investment universe. It is not constrained by the global highyield bond index and can invest in multiple asset classes including US high-yield bonds, USD-denominated emerging market bonds, local currency-denominated emerging market bonds, Asian highyield bonds, European high-yield bonds and investment-grade bonds. The fund seeks to capture market momentum via the global high-yield and emerging market bond markets but is also capable of reducing downside risk via the investment-grade bond component and by the use of credit default swaps."
No information contained in this report intended to be used for determining the purchase or sales of securities or any financial instruments. The products or securities mentioned may not be applicable to certain types of investors. This fund has been approved or agreed to be effective by FSC. However, there is no guarantee that it is risk-free. The past performance of a fund manager does not guarantee a minimum investment return. Apart from exercising the duty of care of a prudent administrator, the fund manager will not be responsible for the profit or loss of the fund, nor guarantee a minimum return. Investors should read the prospectus carefully before subscription. The fees payable of the funds are disclosed in the prospectus, and the investor may search on the Market Observation Post System http://mops.twse.com.tw or the Company's website for more information. High yield bond funds are suitable for investors that are willing to bear higher risks. It is not recommended for investors to invest an excessive proportion of their portfolios in high yield bonds. As Media Relations Tel +886 2 8722 7265 UBS Media Relations, 1 February 2018 Page 2 of 2 high yield bond's credit rating has not reached the investment level or there is no credit rating, and it is extremely sensitive to fluctuations in interest rates, the fund may suffer losses as a result of a rise in interest rates, decrease in market liquidity, or default by bond issuer in payment of principal or interest or bankruptcy of bond issuer. The fund is not suitable for investors who cannot bear relevant risks. Pursuant to the regulations of the FSC, the total amount of investments in bonds which are compliant with U.S. Rule 144A shall not exceed 30% of the Fund's net asset value. Rule 144A bonds are not subject to the requirements for registration with Securities and Exchange Commission and disclosure of information. Furthermore, only qualified institutional investors can participate in the market. As such their trade liquidity cannot be extended to ordinary investments. Investors should be cognizant of such risk before making investment. The prediction of the economic trend referred to herein does not inevitably represent the fund's performance. Please refer to the prospectus for the fund's investment risk. The Fund is denominated in NTD, USD, RMB and AUD. Insofar as the investor subscribes to the Fund using any currency other than the base currency, the investor will need to bear the risk of foreign exchange rate changes. Furthermore, investors would also bear additional costs on the bid-ask spread when engaging in foreign exchange transactions with the bank. This spread is quoted differently by each bank. Fund when invest in emerging markets may suffer higher volatility and risks when compare with developed countries due to its political and economic stability, and it may impact the asset value in various degree. Dividend yield of the fund does not represent the return of the fund, and past dividend yield does not represent future dividend yield; the net value of the fund may fluctuate as a result of market factors. Fund may pay dividends out of earnings or principal of the fund. Any payment from the principal may cause the loss in original investment amount. The Fund will not deduct fees before distribution the dividends. Investors should pay attention to changes in the net value of the fund when receiving dividends. Our Company's website contains information on dividend composition for inquiries by investors. The information is provided by UBS Asset Management (Taiwan) Ltd. Address: 5F, No. 7, Songren Road, Taipei City 110. Telephone: +886-2-8758-6938, Website: www.ubs.com/taiwanfunds. © UBS 1998 - 2021. All rights reserved. The key symbol and UBS are among the registered and unregistered trademarks of UBS.
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