Capital Group has signed an exclusive distribution partnership with UBS Global Wealth Management (UBS GWM) for its multi-sector income (MSI) strategy in Hong Kong.
UBS GWM is exclusively distributing MSI in Hong Kong until 31 March 2023. The fund is not registered for sale in Hong Kong.
The strategy comprises four fixed-income sectors, namely investment grade corporate bonds, high yield corporate bonds, emerging market bonds and securitised credit.
Capital Group noted the benefits of the strategy include diversification with four income drivers, flexibility to tilt exposure in changing markets and a balanced risk profile.
Capital Group also noted that since it was seeded in the US in 2019, it has delivered a top-quartile track record.
The strategy is categorised as Article 8 under SFDR.
“We are delighted to partner with UBS GWM, the world’s largest wealth manager, to bring the Capital Group multi-sector income strategy to investors in Hong Kong. We believe our multi-sector income strategy, offering a mix of high quality and higher yielding assets, is particularly compelling in the current market environment,” said Mike Gitlin, head of fixed income at Capital Group.
“MSI combines the power of four fixed income sectors to target reliable income in different market conditions. Against a backdrop of economic uncertainty, the ability to find reliable sources of income has become increasingly important for investors. Through our partnership with UBS GWM, we look forward to bringing the strength, breadth and depth of Capital Group’s fixed income business to UBS investors in Hong Kong.”
“We are pleased to team up with such an esteemed partner and offer our clients prime access to this unique and differentiated strategy. Earning more predictable returns from income strategies is particularly appealing amid ongoing market volatility, making this a timely addition to our overall offering,” said Bruno Marxer, head of global investment management at UBS GWM.