MILAN, June 1 (Class Editori) — UBS Asset Management announced that its fund UBS (Lux) Bond SICAV - China Fixed Income (RMB) reached 2.202-billion-dollar assets under management at the end of May, proving that investors' interest has been increasingly focused on Asian and especially Chinese bonds since the beginning of the year.
This milestone is in addition to other excellent results achieved in recent months by the UBS China Fixed Income fund, which in January 2021 exceeded 1 billion AUM and in March 2021 obtained a 4-star Morningstar rating. Performance is also interesting: in the first 5 months of this year, shares have appreciated by 3.9 percent, in addition to 0.3 percent achieved last year and 4.5 percent in 2019, the first full year of management. Compared to the benchmark index, which has been negative for these three years, performance is largely positive, despite being affected by a slight appreciation of the yuan against the dollar.
The UBS China Fixed Income fund provides direct access to Chinese domestic bonds and was the first renminbi-denominated fund under Luxembourg law. Actively managed in terms of duration and issuer selection, it is characterized by a preference for quality and liquidity securities, mainly issued by the Chinese Government and policy banks, but also by corporations.
"UBS Asset Management has become the reference point for many clients with regard to investments in emerging countries, particularly in Asia and China, and the result we have just achieved is yet another confirmation of this. In particular, the Chinese bond market allows investors to achieve higher returns, thanks to the country's economic policy and flexibility, which will allow it to continue to grow considerably," Hayden Briscoe, Head of Asian Fixed Income, Global Emerging Markets and Asia Pacific at UBS, explained.
"UBS AM has always believed in the potential and opportunities offered by China, a strategic area where we are now proposing ourselves as a reference point also for the bond market, after consolidating a leading position on the stock ones. Currently, the asset class keeps performing well, benefiting from a stable economic policy and positive interest rates that are higher than those of the main global markets," Giovanni Papini, Head of UBS Asset Management Italy, underlined.
(Source:Class Editori)
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