UBS Asset Management United States Please confirm you are a US resident to proceed.

UBS Short Duration

Objective

Provide actively managed total return with emphasis on a valuation-based duration strategy by investing in investment-grade (at time of purchase) corporate debt, asset-backed securities, and US Treasurys and agencies.

Benchmark

Merrill Lynch 1-2.99 Year Treasury Index

Investment philosophy

  • Markets do not always efficiently price fixed income securities relative to their fundamental or intrinsic values.
  • Fundamental research and proprietary valuation models seek to recognize and exploit these price to intrinsic value discrepancies.
  • Intrinsic values are based on estimations of the future cash flows expected to accrue to an investor.

Investment process

  • Combines quantitative analysis with experienced judgment to assess interest rate sensitivity, maturity mix, credit sector valuation, and individual securities.
  • Maturity exposure is generally maintained in a one- to three-year range.

 

Fixed income strategies are primarily subject to all the investment risks associated with bonds and other fixed income securities. Bonds are subject to interest rate and credit risk. Strategies that invest in high yield bonds are subject to greater volatility and potential loss of principal. Strategies that invest in foreign and emerging market bonds are subject to special risks that are not normally associated with domestic investment, including possible adverse currency fluctuations and political, social and economic risks. There can be no assurance that any strategy will achieve its objective.