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UBS merges Asian bond into EM strategy

UBS merges Asian bond into EM strategy

UBS Asset Management will soon combine its Asia-focused bond fund into a broad emerging markets (EM) bond strategy.

Come June the UBS (Lux) Bond SICAV – Asian Local Currency Bond (USD) fund will merge with the UBS (Lux) Bond SICAV – Emerging Economies Local Currency Bond (USD) fund.

The UBS (Lux) Bond SICAV – Asian Local Currency Bond (USD) fund is managed by the head of pan Asia fixed income Ashley Perrott.

The company’s spokesperson told Citywire Asia: ‘In recent years it has become more common for investors to look at EM debt exposure from a global perspective, rather than by a single regional focus.’

Asia is no longer a 'high yield' component within EM, the spokesperson said.

‘We believe a global solution provides investors with a more reflective overall EM local currency exposure if that is what they are seeking,’ the spokesperson added.

The spokesperson said there are a number of markets within Asia that are already part of the global EM universe that make up the Emerging Economies fund.

The UBS (Lux) Bond SICAV – Asian Local Currency Bond (USD) fund had about $37 million in assets as of end-January.

There will be no change in the investment strategy of the UBS (Lux) Bond SICAV – Emerging Economies Local Currency Bond (USD) following the merger with the UBS (Lux) Bond SICAV – Asian Local Currency Bond (USD).  

Managed by Federico Kaune, the UBS (Lux) Bond SICAV – Emerging Economies Local Currency Bond (USD) fund invests at least two-thirds of its assets in debt instruments and claims issued by international and supernational organisations, public, sovereign and quasi-sovereign institutions.

Investors in the UBS (Lux) Bond SICAV – Asian Local Currency Bond (USD) have the ability to redeem units as normal, or to migrate to the UBS (Lux) Bond SICAV – Emerging Economies Local Currency Bond (USD), the spokesperson said.

The UBS (Lux) Bond SICAV – Emerging Economies Local Currency Bond (USD) offers a range of share classes designed to suit different investor types, the spokesperson added.

The spokesperson said there are no other mergers involving UBS AM’s Asia bond funds in the pipeline.

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