- Proactive management of credit exposure via disciplined implementation of our top-down views
- USD investment-grade credit fund that can opportunistically diversify into high yield as a source of extra return
- Risk management at all steps of the investment process: real-time monitoring of the portfolio’s P&L
- Nine investment professionals with considerable credit expertise and more than ten years’ average experience overseeing credit assets
US investment-grade corporate bonds form a significant part of balanced investment portfolios’ asset allocations.
As well as providing attractive returns (they have averaged 5.9% per year). The asset class has also demonstrated contained volatility of 4.6% annualised.
USD-denominated investment-grade credit offers a appealing and diversified income exposure.
Sources: UBP, Bloomberg, BofA Merrill Lynch indices since 31.12.1996, as of 31.12.2014
UBAM - Corporate US Dollar Bond is a USD investment-grade credit fund with a moderate average maturity.
The fund’s interest-rate risk is around 40% lower than that of the broad US corporate credit market. This is one of the fund’s defining features, and could make it of particular interest to investors in this low-yield environment.
The fund consists of a core portfolio that invests primarily in US dollar-denominated credit issued by a diverse range of financial and non-financial companies. Managing the portfolio’s credit exposure relative to the market (its beta) is based on a top-down approach, while companies are selected using a bottom-up, fundamental process.