UBS Income Solution Fund aims to outperform (after management costs) the RBA Official Cash Rate over rolling three year periods. We seek to build the optimal portfolio exhibiting attractive income and risk characteristics and we undertake this by employing both top-down research and bottom-up security specific analysis. The Fund will be managed with the intention of maximizing total return (income plus growth). We aim to hedge foreign currency exposures to the Australian dollar.
The portfolio underperformed the benchmark over September. Australia’s sovereign yield curve steepened over September with the long end rising more than the front end, resulting in negative relative performance against the lower duration bank bill index.
Within Credit management, the portfolio’s overweight position in Australian corporates benefited from the tightening credit spreads over September and the extra yields (“carry”), although not enough to offset the underperformance from duration. Credit spreads widened in the US high yield market, which was a detractor from relative performance.
What is UBS Income Solution Fund UBS Income Solution Fund is an Managed Funds investment product that is benchmarked against Global Aggregate Hdg Index and sits inside the Fixed Income - Diversified Credit 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 Income Solution Fund has Assets Under Management of 301.32 M with a management fee of 0.6%, a performance fee of 0.00% and a buy/sell spread fee of 0.08%.
How has the investment product performed recently?
The recent investment performance of the investment product shows that the UBS Income Solution Fund has returned 2.1% in the last month. The previous three years have returned 1.99% annualised and 3.48% each year since inception, which is when the UBS Income Solution 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 Income Solution Fund first started, the Sharpe ratio is 0.33 with an annualised volatility of 3.48%. The maximum drawdown of the investment product in the last 12 months is -0.82% and -23.37% 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 Income Solution Fund has a 12-month excess return when compared to the Fixed Income - Diversified Credit Index of 1.54% and -0.28% 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 Income Solution Fund has produced Alpha over the Fixed Income - Diversified Credit Index of 0.07% in the last 12 months and -0.04% since inception.
What are similar investment products?
For a full list of investment products in the Fixed Income - Diversified Credit Index category, you can click here for the Peer Investment Report.
What level of diversification will UBS Income Solution Fund provide?
UBS Income Solution Fund has a correlation coefficient of 0.87 and a beta of 1.27 when compared to the Fixed Income - Diversified Credit 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 Income Solution Fund and its peer investments, you can click here for the Peer Investment Report.
How do I compare the UBS Income Solution Fund with the Global Aggregate Hdg Index?
For a full quantitative report on UBS Income Solution Fund compared to the Global Aggregate Hdg Index, you can click here.
Can I sort and compare the UBS Income Solution Fund to do my own analysis?
To sort and compare the UBS Income Solution Fund financial metrics, please refer to the table above.
Has the UBS Income Solution 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 Income Solution Fund?
How do I get in contact with the UBS Income Solution Fund?
Comments from SMSF Mates
SMSF Mate does not receive commissions or kickbacks from the UBS Income Solution 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 outperformed the benchmark over August. Australia’s sovereign yield curve steepened over August with the front end declining more than the long end, resulting in positive relative performance against the lower duration bank bill index.
Within Credit management, the portfolio’s overweight position in Australian corporates benefited strongly from the tightening credit spreads over August and the extra yields (“carry”). Credit spreads widened modestly in the US high yield market, which was a small detractor from relative performance
Performance Commentary - July 31, 2023 The portfolio outperformed the benchmark over July. Australia’s sovereign yield curve steepened over July with the front end declining and the long end rising, resulting in mixed relative performance against the lower duration bank bill index.
Within Credit management, the portfolio’s overweight position in Australian corporates benefited largely from the extra yields (“carry”) as credit spreads tightened modestly over July. Credit spreads tightened in the US high yield market as well, which was also a contributor to relative performance.
Performance Commentary - June 30, 2023 The portfolio underperformed the benchmark over June. Australian Government bond yields sold-off across the term structure, resulting in negative relative performance against the lower duration bank bill index.
Within Credit management, the portfolio’s overweight position in Australian corporates benefited largely from the extra yields (“carry”) as credit spreads tightened modestly and was the biggest contributor to relative performance over June, although insufficient to offset impact from duration. Credit spreads tightened in the US high yield market which was also a contributor to relative performance.
Performance Commentary - May 31, 2023 The portfolio underperformed the benchmark over May.
Australian Government bond yields sold-off across the term structure, resulting in negative relative performance against the lower duration bank bill index.
Within Credit management, the portfolio’s overweight position in Australian corporates benefited largely from the extra yields (“carry”) as credit spreads tightened modestly and was the biggest contributor to relative performance over May, although insufficient to offset impact from duration.
Credit spreads widened in the US high yield market which was also a detractor to relative performance.
Performance Commentary - April 30, 2023 The portfolio outperformed the benchmark over April. Australian Government bond yields rose slightly across the term structure with a flattening bias, resulting in negative relative performance against the lower duration bank bill index.
Within Credit management, the portfolio’s overweight position in Australian corporates benefited largely from the extra yields (“carry”) as credit spreads tightened modestly and was the biggest contributor to relative performance over April, more than offsetting the drawdowns from duration. The tightening credit spreads in the US high yield market was a contributor as well.
Performance Commentary - February 28, 2023 The portfolio produced positive absolute return but underperformed the benchmark over February. Australian Government bonds sold-off across the curve, thus causing a detraction to the fund’s performance against the lower duration bank bill index.
Within Credit management, the tightening of Australian corporate credit spreads contributed to the portfolio’s relative performance over the month. The tightening credit spreads in the US high yield market contributed to performance as well.
Performance Commentary - January 31, 2023 The portfolio outperformed the benchmark over January. Australian Government bonds yields fell at the front end of the curve, resulting in positive relative performance against the lower duration bank bill index. Within Credit management, the tightening of Australian corporate credit spreads contributed to the portfolio’s relative performance over the month. The tightening credit spreads in the US high yield market contributed to performance as well.
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