Where can returns be found in the current investment environment?

In the current low-interest-rate environment, income oriented investors are seeking an expedient alternative to bond investments and their visibly dwindling yields. As a result, they are turning to investment opportunities that combine stability and earnings power.

Our income-oriented funds focus on generating attractive, consistent income. Their portfolios contain high-quality equities of selected companies that pay a high dividend and are expected to continue to do so in the future. The defensive character of such companies can also act as a buffer in the event or market corrections.

Why income strategies?

Income strategies - positioned as a defensive equity investment for investors with corresponding risk tolerance - can generate steady income from several sources: dividend payments, call overlay premiums, and with some strategies from share buybacks.

Three earnings sources ensure high, stable returns:

Quality equities with a history and future promise of continuous and growing dividends form the basis for this strategy. The focus is on quality stocks with high profitability and solid financing.

Dividends

In recent years, companies around the world have deleveraged their balance sheets and accumulated high cash reserves. We can therefore expect them to pay stable or even increased dividends in the future. This provides an ideal combination of investing in future growth and returning liquidity to shareholders.

Share buybacks are used by firms to indirectly return capital to their shareholders. Buybacks reduce the number of outstanding shares, leading to an increase in earnings per share.

Buybacks

This strategy reduces the number of outstanding shares, thus increasing earnings per share. The expected long-term price increase is called buyback yield. The volume of share buybacks in the US has risen strongly since 2009. However, as a profit distribution method, its use has remained at long-term average levels.*

This option generates additional income. Also, selling covered call options during weak phases in the stock markets reduces downside risk.

Covered call options

These strategies combine securities with options.

Example: A fund buys a stock and sells a call option (the right to buy a security at a certain price) on the same stock. If a covered call option is sold, the fund cannot take advantage of the stock’s full upside potential. For this reason, the fund receives a premium, which it can record as additional income. This strategy is also called covered call overwriting.

Our income-oriented funds offer investors an easy and professional opportunity to generate attractive income from multiple reliable

Funds with multiple sources of income

Strategy

Strategy

 Global

 Global

 Europe

 Europe

 Switzerland

 Switzerland

 USA

 USA

Strategy

Name

 Global

UBS (Lux) Equity SICAV - Global Income

 Europe

UBS (Lux) Equity SICAV - Euro Countries Income

 Switzerland

UBS (CH) Equity Fund - Swiss Income

 USA

UBS (Lux) Equity SICAV - US Income

Funds focused on dividend earnings

With High Dividend Funds, you can exploit the return potential offered by equities with high dividends - on a broad scale in a well-diversified portfolio.

Strategy

Strategy

 Global

 Global

 Europe

 Europe

 Switzerland

 Switzerland

Strategy

Name

 Global

UBS Global High Dividend

 Europe

UBS European High Dividend

 Switzerland

UBS Swiss High Dividend

Funds focused on share buybacks

Investors are continuing to look for yield beyond traditional sources. Typically, yield from equities comes from dividends. However, dividend yields in the US are traditionally lower because many firms also return profits to shareholders via share buybacks. In the US, total yield - capturing the yield from share buybacks and dividends - is more attractive than dividend yield alone.

Strategy

Strategy

 USA

 USA

Strategy

Name

 USA

UBS US Total Yield

 

Interested? Then we look forward to hearing from you!

Risks

  • As the fund invests in equities, major price fluctuations are likely. It is therefore only suitable for investors with an investment horizon of at least five years and a corresponding risk tolerance and capacity
  • The fund is positioned so that it can lag behind the general performance of the equity markets in bull market phases
  • The fund uses derivatives, which may result in additional risks (e.g. counterparty risks)

In order to proceed, you must confirm that you are a qualified investorbased in Switzerland.

For marketing and information purposes by UBS.

For qualified investors/ professional clients only. The information and opinions contained in this document have been compiled or arrived at based upon information obtained from sources believed to be reliable and in good faith, but is not guaranteed as being accurate, nor is it a complete statement or summary of the securities, markets or developments referred to in the document. UBS AG and / or other members of the UBS Group may have a position in and may make a purchase and / or sale of any of the securities or other financial instruments mentioned in this document.

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

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