Swiss banking giant UBS’ Global Wealth Management division has launched a fund programme giving Asian wealth clients access to strategies run by institutional asset managers, with a minimum commitment of USD 5 million.
While launching the product, the banking giant described its “Exclusive Manager Access Fund Program” as the first of its kind in Asia.
“The programme will initially be offered to global wealth management clients in Singapore and Hong Kong before being extended to Taiwan,” UBS said.
As per the Swiss major, to avail the new service, clients must commit at least USD 5 million across the programme, with a minimum investment of USD 500,000 in each underlying fund.
Jansen Phee, Asia-Pacific head of fund investment solutions at UBS Global Wealth Management, told The Business Times that the thresholds position the offering for high net worth and ultra-high net worth clients and family offices.
“Family offices consulted ahead of the launch were particularly interested in gaining access to institutional managers whose investment thresholds they might struggle to meet individually,” Phee said further.
As per UBS, the programme differs from conventional fund offerings in both the managers available and the greater investment flexibility of their strategies.
“Traditional mutual funds have strict rules about how much they can stray from their benchmarks, while institutional strategies allow managers more freedom to take strong positions as long as they stay within certain risk limits,” Phee noted.
The programme will begin with six managers or strategies, split between equities and fixed income.
“Four are expected to form the first wave, with another two due in October following completion of due diligence. Managers named so far include DoubleLine, Acadian Asset Management and Wellington Management,” UBS said further.
Some of the strategies were co-created by UBS and the asset managers, keeping in mind the specific needs of the Swiss biggie’s Asian clients, while others have historically been available mainly to institutional investors.
UBS intends to eventually cap the programme at around 15 to 20 managers or strategies.
“Clients will also get reports similar to what institutional investors receive, which will include overall performance breakdowns, detailed risk assessments, and insights into the underlying fund allocations,” UBS concluded.