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UBS Asset Management launches first onshore fixed-income fund in China

Hong Kong Media Releases APAC

  

  • The "UBS (CN) China Ultra Short Income Bond Private Fund Series 1" is UBS Asset Management's first onshore fixed-income fund
  • The fund draws on UBS Asset Management's global expertise in liquidity product management and responds to China's new asset management regulations

2 May, Hong Kong – UBS Asset Management ('UBS AM') today announced that UBS Asset Management (Shanghai) Limited, its wholly foreign-owned enterprise (WFOE), has launched its first onshore fixed-income fund: "UBS (CN) China Ultra Short Income Bond Private Fund Series 1", which will now be registered with the Asset Management Association of China (AMAC).

The new fund utilizes UBS AM's global expertise in liquidity product management and responds to China's new asset management regulations. Brian Lou, Portfolio Manager at UBS AM (Shanghai) Limited, will manage the fund and has ten years' investment experience, with seven years' experience in fixed income.

UBS AM's Fixed Income team adheres to an active management investment philosophy, confident that the market is driven by fundamentals, whilst being attentive to diverse opportunities for excess return and integrated risk management. The team in Shanghai strive to offer mature and diversified fixed income strategies to clients in the local market.

Brian Lou, Portfolio Manager at UBS AM (Shanghai) Limited said: "Recent advancement of financial reform in China has brought many benefits, including gradual implementation of new regulation that is standardizing the bond market and improving yields. Up and coming regulatory changes require asset managers to find alternative sources of returns and seek active management investment strategies. These changes are in line with our long-term investment philosophy and means that we can build on our advantages in research and risk-adjusted return."

Hayden Briscoe, Head of Asia Pacific Fixed Income at UBS AM said: "UBS AM is positive about the potential for China's bond market and we have been developing a suite of onshore and offshore Renminbi (CNY) fixed income products for our clients. As an integral part of UBS AM's China liquidity strategy, this fund is a new cash management product which not only utilizes UBS AM's rich global liquidity product management expertise, but also responds to China's new asset management regulations."

Aries Tung, Head of China Strategy and Business Development at UBS AM said: "We were able to launch the new fund quickly thanks to the strength of our business in China and the fast localization of UBS AM's WFOE in the past year. We plan to develop several new funds this year and offer a full suite of products across all major traditional and alternative asset classes in the coming years, to give our investors more diversified opportunities." 

UBS AM is a leading international asset manager in China and became the first Qualified Domestic Limited Partner (QDLP) license-holder to receive a Private Fund Management (PFM) license in July 2017. UBS AM launched the first onshore equity fund for local investors in China in November 2017.

Media contacts

UBS Asset Management

Mark Panday, mark.panday@ubs.com, +852 2971 8221

Teneo Strategy

Sherman Ko (Hong Kong), Sherman.Ko@teneostrategy.com, +852 3655 0518
Oscar Wang (Shanghai), Oscar.wang@teneostrategy.com, +86 21 5203 7584

About UBS

UBS provides financial advice and solutions to wealthy, institutional and corporate clients worldwide, as well as private clients in Switzerland. UBS' strategy is centered on our leading global wealth management business and our premier universal bank in Switzerland, enhanced by Asset Management and the Investment Bank. The bank focuses on businesses that have a strong competitive position in their targeted markets, are capita l efficient, and have an attractive long-term structural growth or profitability outlook.

UBS is present in all major financial centers worldwide. It has offices in 52 countries, with about 34% of its employees working in the Americas, 34% in Switzerland, 18% in the rest of Europe, the Middle East and Africa and 14% in Asia Pacific. UBS Group AG employs approximately 61,000 people around the world. Its shares are listed on the SIX Swiss Exchange and the New York Stock Exchange (NYSE).