(CBUS5E) UBS(Lux)Fund Solutions – - Ratings and Ratios

The UBS(Lux)Fund Solutions – Bloomberg US Liquid Corporates1-5 Year UCITS ETF(hedged EUR)A-acc is designed to mirror the performance of the Bloomberg Barclays US Liquid Corporates1-5 Year Index, providing investors with exposure to a specific segment of the US corporate bond market. By tracking this index, the fund aims to deliver returns that are in line with the underlying index, before expenses.

The funds currency-hedged share class is intended to mitigate the effects of exchange rate fluctuations between the euro and the US dollar, utilizing a hedging strategy that involves selling currency forwards at the one-month forward rate. This approach is consistent with the methodology employed by the indexs currency-hedged variant, thereby minimizing potential losses due to currency volatility.

From a technical analysis perspective, the funds price is currently at 14.86, with short-term moving averages indicating a relatively stable trend (SMA20: 14.87, SMA50: 14.81). The longer-term SMA200 at 14.37 suggests a positive trend over the past year. The Average True Range (ATR) of 0.05, or 0.34%, indicates low volatility. Given these technical indicators, it is likely that the fund will continue to trade within a narrow range in the short term.

Considering the fundamental data, the funds Assets Under Management (AUM) stand at 169.21 million euros. This relatively modest size could be an advantage, as it may allow the fund to be more agile in its investment decisions. However, it also means that the fund may not benefit from the same economies of scale as larger ETFs.

Forecasting the funds future performance involves analyzing both technical and fundamental data. Based on the current technical indicators, we can expect the fund to maintain its current price level, potentially trending upwards towards the 52-week high of 14.99. From a fundamental perspective, the Bloomberg Barclays US Liquid Corporates1-5 Year Index has historically provided stable returns, driven by the underlying credit quality of the constituent bonds. Assuming that the index continues to perform in line with its historical trends, and considering the hedging strategy employed by the fund, we can forecast a potential return of 2-4% over the next 12 months, driven by a combination of income generation and potential capital appreciation.

Taking into account the current interest rate environment and the shape of the yield curve, it is likely that the fund will continue to attract investors seeking exposure to high-quality, short-to-medium duration corporate bonds. As such, we can expect the AUM to remain stable or potentially grow, which could lead to a reduction in expense ratios and further enhance the funds attractiveness to investors.