China multi-asset investing - why?

What are the benefits of a China multi-asset strategy and how does it help investors? Gian Plebani, Portfolio Manager, Investment Solutions, explains in a one-minute video.

25 Apr 2020

China's complex universe

China has a complex and diversified investment universe.

On the equity side, there are onshore stocks like A and B shares, and all sorts of offshore stocks like H shares and ADRs.

On the bond side there is similar complexity between onshore and offshore markets and currency denominations.

Learn all about China equities and the different types in China A-shares: FAQS, facts and figures here:

Source: UBS Asset Management, March 2020

A one-stop China multi-asset investing approach

Therefore we have built a one-stop multi-asset solution for China investors where you get access to China's growth potential through equity investments and get income through investments in bonds.

Our unique multi-asset approach maintains a good balance between equities, bonds, cash, as well as between onshore and offshore investments.

In a neutral environment, we allocate 50% to equities and 50% to bonds, while 10% of each of those equity and bond allocations will be to onshore assets.

Get the most recent strategy update from the China multi-asset team here:

China multi asset, but with an active allocation style

We apply, however, an active allocation style.

We can move approximately 35% and 65% in equities and bonds, we can also divest up to 30% into cash in a negative market environment.

The maximum allocation to RMB is 50% of the portfolio while the base currency is in US dollars.

What does a China multi-asset strategy look like?

Here is our asset allocation before a very successful year in 2019.

Source: UBS Asset Management, December 2018

Who manages the China multi-asset strategy?

China Allocation Opportunity, our China multi-asset investing strategy, is managed by Gian Plebani, Portfolio Manager, Investment Solutions, and supported by a team including Rob Worthington, Global Head of Investment Specialists, and Kenly Wong, Investment Specialist.


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Views and opinions expressed are presented for informational purposes only and are a reflection of UBS Asset Management’s best judgment at the time a report was compiled, and any obligation to update or alter forward-looking statement as a result of new information, future events, or otherwise is disclaimed. Commentary is provided at a macro level and is not with reference to any investment strategy, product or fund offered by UBS Asset Management and is provided in Canada generally pursuant to the registration exemption provided for in Section 8.25(2) of National Instrument 31-103 and in Ontario pursuant to Section 34 of the Securities Act (Ontario) and does not purport to be tailored to the needs of the person or company receiving the advice.. The information contained in the materials should not be considered a recommendation to purchase or sell any particular security. The materials and content provided will not constitute investment advice and should not be relied upon as the basis for investment decisions. As individual situations may differ, clients should seek independent professional tax, legal, accounting or other specialist advisors as to the legal and tax implication of investing. Plan fiduciaries should determine whether an investment program is prudent in light of a plan's own circumstances and overall portfolio. UBS Asset Management services offered to Canadian persons are provided by UBS Asset Management (Canada) Inc., a Nova Scotia corporation. UBS Asset Management (Canada) Inc. is an indirect wholly-owned subsidiary of UBS AG and is registered as a portfolio manager and exempt market dealer (in all provinces of Canada), commodity trading manager (Ontario), adviser – commodity futures (Manitoba) and investment fund manager (Ontario, Quebec and Newfoundland), all pursuant to Canadian securities law. Materials may include forward-looking statements. Actual future results, however, may prove to be different from expectations. Past performance is no guarantee of future results. Potential for profit is accompanied by possibility of loss.

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