UBS Asset Management (UBS AM) has launched its first onshore fixed-income fund in China.
Launched through its wholly foreign-owned enterprise (WFOE) UBS Asset Management (Shanghai), the UBS China Ultra Short Income Bond Private Fund Series 1 will now be registered with the Asset Management Association of China (AMAC).
Hayden Briscoe, head of Asia Pacific fixed income at UBS AM, said the new 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.
He said UBS AM is positive about the potential for China's bond market and it has been developing a suite of onshore and offshore Renminbi fixed income products for its clients.
The new fund will be managed by Brian Lou, portfolio manager at UBS AM (Shanghai). Lou has ten years of investment experience, of which seven years were in fixed income.
Lou said the 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,’ he said.
‘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,’ he added.
Aries Tung, head of China strategy and business development at UBS AM, said the company plans 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.
UBS AM received a private fund management (PFM) license in July 2017. It launched the first onshore equity fund for local investors in China in November 2017.
Meanwhile, Schroders is expected to launch its first onshore fund in China by June, Citywire has learnt.
Schroders's wholly-owned subsidiary in China, Schroders Investment Management (Shanghai) received the PFM qualification from the AMAC in December 2017.