Hong Kong, 9 September 2020 – The Securities and Futures Commission (SFC) of Hong Kong on 8 September authorized UBS Asset Management's three UBS (Lux) Bond SICAV series of funds for distribution to retail investors in Hong Kong*.

The three funds are: the UBS (Lux) Bond SICAV - Asian High Yield (USD) ("UBS Asian High Yield Fund”); the UBS (Lux) Bond SICAV - Multi Income (USD) ("UBS Multi Income Bond Fund”); and the UBS (Lux) Bond SICAV - USD High Yield (USD) ("UBS USD High Yield Fund”).

“With the new funds now authorized for retail sale, we have strengthened our fixed income offering for Hong Kong investors. Collectively, the funds offer regional and global exposure and can satisfy multiple income demands. The addition of the UBS Asian High Yield Fund and the UBS USD High Yield Fund to our UBS China High Yield and UBS Euro High Yield funds strengthens our existing high yield offerings, which is particularly important in a zero-interest-rate environment,” said Chris YIU, Head of Wholesale Client Coverage Hong Kong at UBS-AM.

“Asia's bond markets have grown in size and importance over recent years with the Asian credit universe passing the USD 1 trillion mark at the start of 2020. Compared to its global counterparts, Asian fixed income offers higher yield and lower duration risk,“ said Ross DILKES, Portfolio Manager of the UBS Asian High Yield Bond Fund.

“Asia remains the key driver for global economic growth.  With significant monetary and fiscal measures by central banks in Asia, particularly China, Asian high yield fundamentals are solid. Our current default forecast for the Asian credit universe is between five and six per cent and we expect default rates in Asian high yield over the next 18 months to be lower than those in the US and Europe. At this level, investors in Asian high yield bonds are well compensated for risk given that yields remain close to historical highs,” Dilkes added.

Dilkes sees an uptick in sustainable investing opportunities in the Asian High Yield universe. “The overarching commitment of policy-makers to encourage sustainable investment can be expected to help investors achieve an attractive risk-adjusted return. The push for renewable energy is gaining momentum.  For example,  there are several solar and wind energy companies with strong fundamentals in India that are attractive in terms of outlook and management strength,” Dilkes added.

*SFC authorization is not a recommendation or endorsement of a scheme nor does it guarantee the commercial merits of a scheme or its performance. It does not mean the scheme is suitable for all investors nor is it an endorsement of its suitability for any particular investor or class of investors.

Media contacts

UBS Asset Management

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

Fiona Chan, fiona-y.chan@ubs.com, +852 2971 8837

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Disclaimer
Authorization of the fund(s) mentioned herein by the SFC does not imply official recommendation.

Investment involves risks, and past performance figures shown are not indicative of future performance. The value of the funds and income from them can go up as well as down and consequently you may not get back the amount originally invested. Investors please refer to the offering document for further details including the risk factors.

The investment returns of some of our range of funds are denominated in currency other than USD/HKD. US/HK Dollar-based investors are therefore exposed to fluctuations in the US/HK dollar/ foreign currency exchange rate.

Units of UBS funds mentioned in this publication may not be offered, sold or delivered in the USA.

The document has not been reviewed by the Securities and Futures Commission in Hong Kong. The document is issued by UBS Asset Management (Hong Kong) Limited.

A number of comments in this document are based on current expectations and are considered “forward-looking statements”. Actual future results may prove to be different from expectations and any unforeseen risk or event may arise in the future. The opinions expressed are a reflection of UBS Asset Management’s judgment at the time this document is compiled and any obligation to update or alter forward-looking statements as a result of new information, future events, or otherwise is disclaimed.

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