UBS Global Asset Management has launched its new UBS Fixed Income Opportunities Fund, an opportunistic fixed income strategy that seeks returns with low correlation to traditional equity and fixed income markets.
According to UBS, the fund seeks to outperform 3-month LIBOR by 3%, net of fund ordinary operating expenses, over rolling five-year time horizons.
UBS said that the fund offers less reliance on favorable markets for positive client outcomes, the flexibility to invest opportunistically across regions, markets and sectors, and the ability to take both long and short positions to manage risk exposures.
The fund employs a framed an investment process combining a top-down global strategy, along with fundamental bottom-up analysis that seeks to generate returns.
Risk management systems and tools will be applied at every point in the process to ensure risks are understood and duly compensated, UBS said.
UBS head of Fixed Income Derivative Strategy Brian Fehrenbach said that the key advantage of the fund is that it is unconstrained by a benchmark, unlike traditional bond funds, and it can adjust its duration to be either positive or negative, based on the investment team’s outlook for the direction of interest rates.