Lead Portfolio Manager:
Deputy Portfolio Manager:
- Potential for higher returns than a standard UK investment grade corporate bond fund
- Lower risk than equities
- Invests in government bonds, investment grade and high yield bonds plus other securities
- Benefits from the extensive resources of UBS' Fixed Income team
- The Fund invests in high risk investments including high yield bonds, emerging market bonds, derivatives and swaps, each of which can potentially expose the Fund to greater volatility and losses than investing only in investment grade bonds.
Past performance is not a guide to future performance. Changes in rates of exchange may cause the value of this investment to fluctuate. As the annual management fee of the Fund is charged to capital, the potential capital growth of the Fund will be reduced. Bonds carry varying levels of underlying risk, including default risk, dependent upon their type. These range from gilts, which carry limited levels, to speculative/non-investment grade corporate bonds that carry higher levels of risk but with the potential for greater capital growth. The Fund has the ability to invest over 35% of its value in public securities issued/guaranteed by, or on behalf of, the UK Government (which include the Scottish Administration, the Executive Committee of the Northern Ireland Assembly and the National Assembly of Wales). The Fund will use derivatives as part of its investment capabilities. This allows it to take short positions' in some investments and we can sell a holding we do not own, on the anticipation that its value will fall. These instruments carry a material level of risk and the Fund could potentially experience higher levels of volatility should the market move against them. In order to trade in derivative instruments we enter into agreements with various counterparties. Whilst we assess the credit worthiness of each counterparty we enter into an agreement with, the Fund is at risk if that counterparty does not fulfil its obligations under the agreement. Investments in less developed markets may be more volatile than investments in more established markets. Less developed markets may have additional risks due to less established market practises. Poor liquidity may result in a holding being sold at a less favourable price, or another holding having to be sold instead.