UBS Diversified Fixed Income Fund aims to provide investors with access to a diversified market portfolio of Australian and global fixed income assets. Eligible investments of the Fund comprise Australian and international cash and fixed income securities. The Fund may gain its asset sector exposure by investing in UBS managed funds or direct securities and financial derivatives. The fixed income assets of the Fund are predominantly of investment grade quality. Non-investment grade fixed income assets (high yield and emerging market debt) will not exceed 30% of the total portfolio. The Fund may also invest in financial derivatives to gain or reduce exposure to relevant markets and currencies and manage investment risk. The Fund’s strategic foreign currency exposures will not exceed 10% of its total portfolio.
The portfolio’s overall interest rate positioning delivered negative relative performance over September as global bond markets sold-off.
Our overweight positioning in Australia, New Zealand and US detracted from relative performance as yields rose in the respective markets over the month. Against this, our US 5/30-year steepener position made a positive contribution to relative performance, as did the short Japan 10-year positioning. As European sovereign spreads drifted wider over the course of the month, we also moved to neutralize our underweight position in the European periphery.
Within credit markets, our overweight position in the AUD corporate sector contributed to relative performance over September as spreads tightened.
What is UBS Diversified Fixed Income Fund UBS Diversified Fixed Income Fund is an Managed Funds investment product that is benchmarked against Global Aggregate Hdg Index and sits inside the Fixed Income - Bonds - Global / Australia Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The UBS Diversified Fixed Income Fund has Assets Under Management of 1.06 BN with a management fee of 0.55%, a performance fee of 0.00% and a buy/sell spread fee of 0.1%.
How has the investment product performed recently? The recent investment performance of the investment product shows that the UBS Diversified Fixed Income Fund has returned 0.83% in the last month. The previous three years have returned -1.28% annualised and 3.46% each year since inception, which is when the UBS Diversified Fixed Income Fund first started.
How is risk measured in this investment product? There are many ways that the risk of an investment product can be measured, and each measurement provides a different insight into the risk present. They can be used on their own or together to perform a risk assessment before investing, but when comparing investments, it is common to compare like for like risk measurements to determine which investment holds the most risk. Since UBS Diversified Fixed Income Fund first started, the Sharpe ratio is NA with an annualised volatility of 3.46%. The maximum drawdown of the investment product in the last 12 months is -2.83% and -15.23% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.
What is the relative performance of the investment product? Relative performance is what an asset achieves over a period of time compared to similar investments or its peers. Relative return is a measure of the asset's performance compared to the return to the other investment. The UBS Diversified Fixed Income Fund has a 12-month excess return when compared to the Fixed Income - Bonds - Global / Australia Index of 1.16% and -0.02% since inception.
Does the investment product produce Alpha over its Peers? Alpha is an investing term used to measure an investment's outperformance relative to a market benchmark or peer investment. Alpha describes the excess return generated when compared to peer investment. UBS Diversified Fixed Income Fund has produced Alpha over the Fixed Income - Bonds - Global / Australia Index of NA% in the last 12 months and NA% since inception.
What are similar investment products? For a full list of investment products in the Fixed Income - Bonds - Global / Australia Index category, you can click here for the Peer Investment Report.
What level of diversification will UBS Diversified Fixed Income Fund provide? UBS Diversified Fixed Income Fund has a correlation coefficient of 0.91 and a beta of 1.35 when compared to the Fixed Income - Bonds - Global / Australia Index. Correlation measures how similarly two investments move in relation to one another. This establishes a 'correlation coefficient', which has a value between -1.0 and +1.0. A 100% correlation between two investments means that the correlation coefficient is +1. Beta in investments measures how much the price moves relative to the broader market over a period of time. If the investment moves more than the broader market, it has a beta above 1.0. If it moves less than the broader market, then the beta is less than 1.0. Investments with a high beta tend to carry more risk but have the potential to deliver higher returns.
How do I compare the investment product with its peers? For a full quantitative report on UBS Diversified Fixed Income Fund and its peer investments, you can click here for the Peer Investment Report.
How do I compare the UBS Diversified Fixed Income Fund with the Global Aggregate Hdg Index? For a full quantitative report on UBS Diversified Fixed Income Fund compared to the Global Aggregate Hdg Index, you can click here.
Can I sort and compare the UBS Diversified Fixed Income Fund to do my own analysis? To sort and compare the UBS Diversified Fixed Income Fund financial metrics, please refer to the table above.
Has the UBS Diversified Fixed Income Fund been independently verified by SMSF Mate? This investment product is in the process of being independently verified by SMSF Mate. Once we have verified the investment product, you will be able to find more information here.
How can I invest in UBS Diversified Fixed Income Fund? 
How do I get in contact with the UBS Diversified Fixed Income Fund? 
Comments from SMSF Mates SMSF Mate does not receive commissions or kickbacks from the UBS Diversified Fixed Income Fund. All data and commentary for this fund is provided free of charge for our readers general information.
Performance Commentary - August 31, 2023 The portfolio’s overall interest rate positioning delivered positive relative performance over August. Our overweight positioning in Australia and New Zealand contributed to relative performance as yields fell across the curve in Australia and also declined in New Zealand. Our US curve steepener was also positive for relative performance, as 30-year US Treasury yields rose by more than 5-year yields, while our short Japan 10-year positioning was flat over the month.
Within credit markets, our overweight position in the AUD corporate sector contributed to relative performance over August as spreads tightened.
Performance Commentary - July 31, 2023 The portfolio’s interest rate positioning delivered positive relative performance over July. Our short duration position in Japanese 10-year futures was positive as the Bank of Japan introduced much greater flexibility in its yield curve control program, effectively raising the upper limit of the 10-year JGB yield target from 0.5% to 1.0%. Futures prices declined as bond yields rose, benefiting the portfolio. Our US curve steepener was also positive for relative performance, as 30-year US Treasury yields rose by more than 5-year yields. Elsewhere, we also increased our long positioning in New Zealand 2-year rates, as the RBNZ held the official cash rate steady at 5.50% and signaled that its tightening cycle was likely finished.
Within credit markets, our overweight position in the AUD corporate sector contributed to relative performance over July as spreads tightened.
Performance Commentary - June 30, 2023 The portfolio’s overall duration positioning delivered negative relative performance over June, as global bond markets sold-off. Within duration management, our long positions in Australia, New Zealand and the US detracted, while the short position in Canada contributed. The short position in Japan was flat for the month, as the Bank of Japan’s policy continues to diverge from those of other developed markets.
Our yield curve positioning was mixed for the month, with front-end flatteners in Australia contributing and curve steepeners in the US detracting. Within credit markets, our overweight position in the AUD corporate sector contributed to relative performance over June as spreads tightened.
Performance Commentary - May 31, 2023 The portfolio’s overall duration positioning delivered negative relative performance over May, as global bond markets soldoff. Within duration management, our long positions in Australia, New Zealand and the US detracted, while the short position in Canada contributed. The short position in Japan was flat for the month, as the Bank of Japan’s policy continues to diverge from those of other developed markets.
Our yield curve positioning was positive for the month, with front-end flatteners in Australia contributing and curve steepeners in the US remaining steady. Within credit markets, our overweight position in the AUD corporate sector contributed to relative performance over May as spreads tightened, whereas other developed market spreads widened over the month and detracted from performance outcomes.
Performance Commentary - April 30, 2023 The portfolio’s overall duration positioning delivered mixed relative performance over April. Within duration management, our long position in Australia was a small detractor as yields rose modestly, while our long position in New Zealand was a contributor as yields fell.
Our short position in Japan detracted from relative performance as the BoJ maintained its ultra-loose monetary policy in its latest meeting. In contrast, our US 5/30-year steepener position contributed positively over the month and we increased our position mid-month. Over the course of the month, we initiated a long position in European core against a short position in European periphery
On credit, our overweight position in the AUD corporate sector benefited largely from the extra yields (“carry”) as credit spreads tightened modestly over the month.
Performance Commentary - February 28, 2023 The portfolio’s overall duration positioning delivered negative relative performance over the month. Within duration management, our long positions in Australia, New Zealand and the US detracted from relative performance as yields rose, while the short position in Japan was flat to relative performance. During the month, we adjusted our duration positioning in Australia from a neutral to long, in Canada from a short back to neutral, and topped up risk in the Japan short position.
On credit, our overweight position in the AUD corporate sector was a contributor over January as credit spreads tightened, while underweights in the US contributed as well.
Performance Commentary - January 31, 2023 The portfolio’s overall duration positioning delivered positive relative performance over the month. Within duration management, our long positions in New Zealand and the US contributed to relative performance, as yields declined, while short positions in Canada, Japan and Germany detracted. During the month, we adjusted our duration positioning in Australia from a small short back to neutral. On credit, our overweight position in the AUD corporate sector was a contributor over January as credit spreads tightened, while underweights in the US detracted at the margin.
Product Snapshot
Product Overview
Performance Review
Peer Comparison
Product Details