Invest in the fast-growing bond market
UBS China High Yield Fund
Attractive income opportunity in zero-interest-rate age
China is the second largest bond market globally. China's offshore bond market also offers investors enhanced diversification, liquidity, and broad investment opportunities with attractive yield.
1. Attractive yields
China high yield bonds offer relatively attractive yields and a positive fundamental outlook. Longer term, we hold a positive outlook on the China high yield sector with the continued accommodative stance of central bank policies and sound credit fundamentals.
Asset class | Asset class | Yield (%) | Yield (%) |
---|---|---|---|
Asset class | China USD High Yield | Yield (%) | 7.3 |
Asset class | Asia High Yield | Yield (%) | 6.8 |
Asset class | USD High Yield | Yield (%) | 4.2 |
Asset class | EUR High Yield | Yield (%) | 3.4 |
2. Focus on total return, not just yield
The Fund focuses on attractive risk adjusted returns and total return, not just yield. Through active management, dynamic risk positioning, and diligent security selection, the Fund seeks to generate attractive total returns throughout market cycles.
3. Lower default rate prospect
Our current default forecast for the Asian credit universe is 3-4%1, whereas we expect China high yield defaults to be even lower around 2%1 as the space benefits from better starting point fundamentals and targeted support by the government for the corporate sector.