China

UBS launches onshore multi asset fund in China

UBS Asset Management has announced the launch of the UBS China Balanced Multi Asset Private Securities Investment Fund Series 1, an actively managed fund combining top-down macro asset allocation view with bottom-up security selection.

Portfolio manager Max Luo has described the fund as different from the traditional hybrid fund for the reasoning stated above.

Luo stated that due to the presence of retail investors who trade at higher frequencies, China’s onshore equity market is more volatile than other stock markets, according to a report by Citywire Asia.

He continued, saying that UBS Asset Management (UBS) drives its active asset allocation through a range of levers, facilitated by medium and short-term risks analysis, and the analysis of respective opportunity sets at the macro level.

“These (levellers) include cash versus risk, equity versus bonds, size rotation, sector rotation and portfolio hedging,” according to Luo.

UBS is in possession of both a Private Fund Management and a Qualified Domestic Limited Partner license in China, and has release equity, bond, fund-of-funds and multi asset products in the market to-date.

It introduced the UBS (CN) A&Q China Diversified Fund of Funds in July 2019, two years after the launch of its first onshore equity fund for Chinese HNWIs in 2017.