UBS AM launches second onshore private fixed income fund in China

  • The "UBS (CN) China Flexible Bond Private Fund Series 1" is UBS Asset Management's second onshore fixed-income fund
  • The fund draws on UBS Asset Management's global expertise in a full spectrum of fixed income instruments to give investors more flexibility in accessing yield and liquidity.

Shanghai, 21 September 2018 – UBS Asset Management ('UBS AM') today announced the launch of its China Flexible Bond Private Fund Series1, the second private fixed income fund to be issued by UBS Asset Management (Shanghai) Limited, its wholly foreign-owned enterprise (WFOE) in China. Initial capital raising for the fund is completed and the fund was registered with the Asset Management Association of China (AMAC) on 20 September. It is the third fund to be launched by the WFOE since it received a Private Fund Management (PFM) license in July 2017.

Brian Lou at UBS AM (Shanghai) Limited and manager of the fund said: "We have combined UBS fixed income team's investment expertise with local investment practice and plan to use the full spectrum of fixed income instruments, including credit, repos and interest rate derivatives strategies, to give investors more flexibility in accessing yield and liquidity. While our safe and stable investment style will remain consistent with the UBS brand, it will not be constrained by the traditional investment mindset which, historically, has been applied to Chinese bonds."

As for the macro economic landscape and investment opportunities in fixed income market, Brian Lou believes that monetary policy will remain prudent as China seeks to ease the local financing environment and stabilize growth. The last round of structural reforms and curtailment of capacity have enhanced performance in some industries and among key SOEs (State-owned Enterprises).

"Of course, the selection of bonds matters. But, if we look at the bigger picture, there is no systematic credit risk in the credit market," he added.

Hayden Briscoe, Head of Asia Pacific Fixed Income, said: "UBS has been consistently positive about the potential of China's bond market and this high-yield market is attractive worldwide. UBS AM has spent in excess of 18 years on research and investment of onshore/offshore RMB fixed income products and plans to bring more of its advantages in fixed income and well-established investment ideas to China."

Aries Tung, Head of Strategy and Business Development, China, at UBS Asset Management, commented: “This is another milestone in UBS Asset Management's China blueprint. Using the strength of our platform, local expertise, and insight into the China market, we plan to enrich our product shelf continuously and bring more diversified products and better customer service to China."

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UBS Asset Management
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Teneo Strategy
Sherman Ko (Hong Kong),, +852 3655 0518
Oscar Wang (Shanghai),, +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 capital 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).