UBS Asset Management announces launch of ninth onshore fixed income fund in China

Maria Nikolova

The fund aims to provide a more robust fixed-income solution for investors in China based on a flexible and diversified allocation approach.

UBS Asset Management has announced that its wholly foreign-owned enterprise UBS Asset Management (Shanghai) Limited has launched a private fixed-income fund, “UBS (CN) China Yufeng Fixed Income Bond Strategic Series 5 Private Securities Investment Fund”, which has filed with the Asset Management Association of China (AMAC).

Brian Lou at UBS AM (Shanghai) Limited and manager of the fund, explains:

“By using an overseas fixed maturity fund strategy, the fixed interval bond fund aims to lock in expected returns within a fixed period and, based on a flexible and diversified allocation, provide a robust fixed-income solution for institutional investors in China.”

UBS Asset Management (Shanghai) Limited’s fixed income team has issued nine bond products, three of which were launched in 2020. Taking into account factors including interest rate-sensitivity and corporate rates of return, these products harness cash management strategy, as well as interval and flexible bond strategies, to establish a diversified strategy that satisfies the diverse risk / return needs of investors.

The UBS AM Fixed Income team has long been bullish on the investment potential of China’s bond market. Hayden Briscoe, Head of Asia Pacific Fixed Income, believes that, as world bond markets shift to negative yields, China government bonds offer a unique value proposition to investors based on low correlation and volatility as well as attractive yields.

“We seek alpha opportunities based on the safety cushion of allocations to rate bonds and high-grade credit bonds in the second half of the year, such as the mergers of leading players in some sectors. Meanwhile, we have been tracking the credit bonds of industry leaders in real estate, infrastructure, consumers, healthcare, nonferrous metals and machinery. All of these require asset managers to conduct careful and top-down research,” said Lou.

“In terms of risk control and in line with UBS AM’s global methodology, we insist on a high degree of diversification as well as a top-down approach coupled with macro analysis. At the same time, we have sought to lower net value volatility through a more precise duration management in an effort to provide more localized products to customers,” added Lou.

Read this next

Digital Assets

OneCoin founder Ruja Ignatova is selling penthouse in UK

OneCoin founder Ruja Ignatova, who steered one of the world’s biggest cryptocurrency frauds, is back into the spotlight more than five years after vanishing from the public eye.

Digital Assets

Bitpay taps MoonPay to offer access to +60 cryptocurrencies

Crypto payment service provider Bitpay said it’s partnering with exchange and web3 infrastructure provider MoonPay to provide its users with easier access to buy cryptocurrency instantly.

Digital Assets

New York investigates Gemini over FDIC insurance claims

New York regulators are investigating Gemini over “false and misleading” claims the Winklevoss-owned exchange had made about whether client funds are insured by the government.

Digital Assets

Binance launches Mastercard-backed crypto card in Brazil

In partnership with Mastercard, crypto giant Binance is launching its pre-paid card offering cryptocurrency “rewards” on customers’ purchases.

Digital Assets

Circle publishes a breakdown of USDC reserves for December

Boston-based stablecoin issuer Circle has revealed a breakdown of its reserves for December 2022, as well as a complete list of USDC reserve custodians.

Retail FX

Monex reports lower revenues as crypto downturn bites

Monex Group has reported its Q3 2022 financial metrics, which saw a reversal in terms of its revenues as TradeStation was grappling with a crypto market crash that has tanked the profitability of its crypto business.

Inside View

Broadridge report finds 27% of firms’ overall IT budget goes to digital transformation

“A new chapter in digital transformation is emerging. In our work with clients across the financial services industry we see leading firms are already reaping the benefits from digitalization and the use of technologies such as AI and blockchain/DLT, as they adapt to economic headwinds and new competitive dynamics”

Executive Moves

Ripple announces Monica Long as President

“I’m incredibly honored to take on the role of President at Ripple as we expand deeper into crypto-enabled services like liquidity, settlement and custody.”

Executive Moves

Arabesque AI appoints Carolina Minio Paluello as CEO

“Arabesque AI is uniquely positioned to service the asset management industry’s need to meet the growing market demand for hyper customised portfolios.”