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

Retail FX

Banxso announces 8.7% interest rate on deposits in South Africa

“With Banxso, they can enjoy the benefits of both worlds – earning competitive interest and having the freedom to trade, all within the same platform.”

Industry News

FINRA to publish transaction details in U.S. Treasury securities

“Consistent with our longstanding practice, FINRA is introducing greater transparency in a calibrated and careful manner, benefiting liquidity and resilience in this critical market while also mitigating potential information leakage concerns.”

Institutional FX

OpenYield launches “cheap and easy” fixed income trading for brokers

“We’re on a mission to make bonds cheap and easy to trade, and are excited about the opportunity to build generational capital markets infrastructure.”

Digital Assets

Sumsub and Mercuryo publish a guide for VASPs: “Mastering Travel Rule Compliance”

“At Sumsub, we’ve concentrated our efforts on filling the gap in understanding the complexity of Travel Rule regulation and helping organizations find the best solution to stay safe and compliant while minimizing costs and avoiding potential risks of non-compliance. This guide we created with Mercuryo, our trusted partner, is the ultimate navigation tool all VASPs can consult.”

Digital Assets

Bitget Wallet Leads with Record Swap Volume & New Crypto Innovations

This week, Bitget Wallet achieved a milestone by surpassing Metamask with a record 388,757 Swap order transactions, securing the global lead. The significant 7-day trading volume, almost 68,000 more than its rival, underscores its liquidity and user trust. This robust activity signals Bitget Wallet’s prominent role and reliability in the dynamic crypto market.

Digital Assets

Embarking on a Digital Currency Journey

Imagine you’ve stumbled upon a treasure map, leading you to untold riches hidden in the vastness of the internet. Instead of gold coins and jewel-encrusted goblets, this treasure comes in the form of digital currencies, the modern-day loot coveted by many.

Reviews

Traders Union Experts Share The Trading Analyst Review For 2024

Navigating options trading in rapidly shifting markets poses a considerable challenge. This is where options trading alert services become invaluable. They aid traders in keeping abreast of evolving opportunities and market trends. In this assessment, Traders Union experts scrutinize The Trading Analyst alert service to ascertain its efficacy. 

Digital Assets

BlockDAG’s Presale Achieves $9.9M: Aiming For A 5000-Fold ROI As Cardano’s Price Rises And Fantom Launches Sonic

Explore Cardano’s surge, Sonic’s efficiency, and why BlockDAG’s growth makes it the top crypto choice. A deep dive into the future of blockchain investments.

Digital Assets

US, UK probe $20 billion Tether transfers tied to Russian exchange.

U.S. and UK authorities are investigating the movement of $20 billion in the USD-pegged stablecoin tether (USDT) through Moscow-based exchange Garantex.

<