Presentation on theme: "Why UBS Global Asset Management For Global Bonds"— Presentation transcript:
1 Why UBS Global Asset Management For Global Bonds Globally resourced organisation covering the world’s major financial centresLong established and proven experience in managing global government bond portfolios with opportunistic use of spread sectorsGlobally integrated quantitative tools are used at all stages of the investment process.
3 The Application of Seasoned Judgement Within the Global Fixed Income Investment ProcessValuation models allows us to calibrate the extent of market misvaluationKey inputs are clearly identifiedCyclical and secular changes can be incorporatedProvides a baseline for further considerationSeasoned judgement is key in the strategy setting process and overlays model output, taking into account:Views and judgements of the regional teamsMarket dynamicsLikely catalysts for change?Timescales involvedThe levels of investment risk requiredValuation model output‘Fair values’ at equilibriumSeasoned judgementIncorporating shorter term factorsInvestment strategy settingModel portfolios
4 Global Bond: Strategy Summary June 30, 2003GLOBAL BOND PORTFOLIOMarketAllocationCurrencyAllocationInterest RateSensitivity/ DurationSector/SecurityMarket Currency Allocation Index1 AllocationRelative Duration StrategyNorth America 22.1% %Europe - EMUEurope Other EuropeU.KJapanAustralia100.0% 100.0% 100.0%U.S xAustralia 0.70Canada 0.80Denmark 1.00EMU 0.90Sweden 0.80Japan 0.75U.K. 1.00Cash & Equiv. 0.6%Gov’t./Agencies 78.9Corporates 5.1Mortgages 8.9Asset-Backed 3.7SupranationalsProvincialTotals 100.0%1 Citigroup World Government Bond Index as of 6/30/03Totals may not add due to rounding
5 Global Bond Portfolio: Current Strategy For Periods Ending June 30, 20031 Citigroup World Government Bond Index as of 6/30/ Totals may not add due to rounding.
6 Global Bond Portfolio: Duration Strategy June 30, 2003
7 Global Bond Portfolio: Market Allocation For Periods Ending June 30, 20031 Citigroup World Government Bond Index as of 6/30/03 Totals may not add due to rounding. Strategy ranges expressed with an explicit “+” or “-” sign are relative to the benchmark.