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View More Press Releases by UBS Global Asset Management

Press release:

UBS Global Asset Management to Launch Target-Date Collective Investment Trusts for Qualified Retirement Plans

Issued by: UBS Global Asset Management

Date: May 28, 2015

New York, May 28, 2015 — UBS Global Asset Management Trust Company (UBS), a leading investment management firm and a member of the UBS Global Asset Management division of UBS Group AG, and Morningstar, Inc. (NASDAQ: MORN), a leading provider of independent investment research, today announced that UBS is launching a series of target-date collective investment trust funds (CITs) that seek to track the performance of the Morningstar® Lifetime Allocation Indexes. UBS expects to launch the CITs, which are for use exclusively by qualified retirement plans, in July. Morningstar Associates, LLC, a registered investment advisor and part of the Morningstar Investment Management group, will serve as a nondiscretionary subadvisor with respect to the CITs. Morningstar, Inc. is the index provider.

"UBS Global Asset Management has been managing passive portfolios for more than 30 years," said Blake Moore, Head of Americas for UBS Global Asset Management. "Our experienced index investment professionals around the globe manage passive portfolios across asset classes including equities, fixed income and commodities. We are pleased to work with Morningstar to bring these CIT funds to defined contribution plans."

Available in three series—conservative, moderate, and growth—the CITs will be passively managed, low-cost investment selections. UBS is licensing the Morningstar Lifetime Allocation family of indexes as the benchmarks for the CITs. Launched in 2009, the Morningstar Lifetime Allocation Indexes comprises three series of target-date indexes that vary in aggressiveness and adjust their asset allocations over time to become more conservative. The indexes leverage Morningstar’s Total Wealth Approach to investing—a concept that goes beyond looking at an individual’s current wealth, and takes into account his or her personal prospects, goals, and resources when building portfolios. The Morningstar Investment Management group developed this proprietary investment methodology through years of award-winning academic research on capital market assumptions, lifetime finance, and advanced asset allocation optimization techniques.

“Morningstar’s mission is to help investors reach their financial goals. In the defined contribution market, we do that by applying our best retirement research and methodologies to help average workers improve their retirement outcomes,” said Brock Johnson, head of retirement solutions for Morningstar. “As workers are increasingly turning to target-date investments, these new CITs will reach more employees and help them to achieve a secure retirement.”

About UBS Global Asset Management
UBS Global Asset Management Trust Company is a wholly-owned subsidiary of UBS Group AG (UBS Group) and a member of the UBS Global Asset Management division. The UBS Global Asset Management division is a large-scale asset manager with well-diversified businesses across regions, capabilities and distribution channels. The firm offers investment capabilities and investment styles across all major traditional and alternative asset classes. These include equity, fixed income, currency, hedge fund, real estate, infrastructure and private equity investment capabilities that can also be combined in multi-asset strategies.

UBS Group draws on its over 150-year heritage to serve private, institutional and corporate clients worldwide, as well as retail clients in Switzerland. Its business strategy is centered on its pre-eminent global wealth management businesses and its leading universal bank in Switzerland, complemented by its Global Asset Management business and its Investment Bank, with a focus on capital efficiency and businesses that offer a superior structural growth and profitability outlook.

About Morningstar, Inc. and the Morningstar Investment Management Group
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offers an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. Morningstar provides data on approximately 500,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 15 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services. The company has operations in 27 countries.

The Morningstar Investment Management group, through its investment advisory units, creates custom investment solutions that combine award-winning research and global resources with proprietary Morningstar data. With approximately $179 billion in assets under advisement and management as of March 31, 2015, the Investment Management group provides comprehensive retirement, investment advisory, and portfolio management services for financial institutions, plan sponsors, and financial advisors around the world. Morningstar Associates, LLC is part of the Investment Management group and a wholly owned subsidiary of Morningstar, Inc.

Not FDIC Insured | May Lose Value | No Bank Guarantee

The Morningstar Lifetime Index Funds are collective investment trust funds established under the UBS (US) Group Trust. UBS Global Asset Management Trust Company is the trustee the UBS (US) Group Trust and the investment manager of the CITs.

The values of the CITs will fluctuate up to and after their target dates. There is no guarantee the CITs will provide adequate income at or through retirement. There is no guarantee that the CITs will actually achieve any objectives, performance expectations, risk or return targets. Diversification and asset allocation strategies do not ensure a profit and cannot protect against losses in a declining market. The CITs are subject to various risks, including possible loss of principal, market volatility, risks associated with the underlying investments, exposure to international and emerging markets, small company and sector equity securities, commodities, and fixed income securities subject to changes in inflation, interest rates, market valuations, liquidity, prepayments, and early redemption.

The CITs are available for investment only by eligible retirement plans and entities. The CITs are not insured by the FDIC or any other governmental agency; are not deposits or other obligations of, and are not guaranteed by UBS Global Asset Management Trust Company or any of its affiliates. The CITs are not mutual funds and are not registered under the Investment Company Act of 1940 (the "1940 Act"), and their units are not registered under the Securities Act of 1933, or applicable securities laws of any state or other jurisdiction. CIT unitholders are not entitled to the protections of the 1940 Act. The decision to invest in the CITs should be carefully considered. The CITs are not sold by prospectus and are not available for investment by the public; CIT unit prices are not quoted in newspapers.

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View More Press Releases by UBS Global Asset Management


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