UBS BBG Japan Gov 1-3 UCITS ETF

The compartment PWM Funds – Global Corporate Defensive is to provide capital growth over the mid to long term with a moderate volatility. The Compartment will mainly offer an exposure corporate debt securities (including money market instruments) of any type. In order to achieve its objective, the Compartment will mainly invest directly in the securities mentioned in the previous paragraph; in UCITS and/or other UCIs (limited to 10% of the net assets of the Compartment), having as main objective to invest or grant an exposure to the above-mentioned securities; in any transferable securities (such as structured products, as described below) linked (or offering an exposure) to the performance of the above-mentioned securities. On an ancillary basis, the Compartment may invest in debt securities other than those above-mentioned, and may also invest in structured products other than those above-mentioned, and may invest in cash. It is understood that the Compartment may invest in non-investment grade debt securities and non-rated debt securities up to 40% of its net assets; the Compartment may invest indirectly in asset-backed securities and mortgage backed securities up to 20% of its net assets; the Compartment may invest in convertible bonds of any type (including contingent convertible bonds) up to 20% of its net assets. the expected average credit rating of the Compartment's portfolio will be BBB- (S&P notation) or an equivalent credit rating from other recognized credit rating agencies; investments in emerging countries will be limited to 45% of the net assets of the Compartment. Investments in China may be performed, inter alia, on the China Interbank Bond Market ("CIBM"). Investments in China may also be performed on any acceptable securities trading and clearing linked programs or access instruments which may be available to the Compartment in the future. These investments will not exceed 10% of the Compartment's net assets. The Compartment may invest up to 10% of its net assets in structured products. In compliance with the Grand-Ducal Regulation of 8 February 2008, the Compartment may also invest in structured products without embedded derivatives, correlated with changes in commodities (including precious metals) with cash settlement. Those investments may not be used to elude the investment policy of the Compartment. Benchmark The Sub-Fund is actively managed. The index Bloomberg Barclays Global Aggregate Corporate 1-10Y benchmark (BPLCTRUH Index) is only used for the calculation of the relative VAR and for comparison purpose. The Sub-Fund does not intend to track the index and can deviate significantly or entirely from the index.