UBS opens institutional fund strategies to Asia’s wealthy – with US$5 million buy-in

The Swiss bank UBS is expanding its offerings to cater to Asia's affluent, introducing a new approach known as the Exclusive Manager Access Fund Program. This program requires clients to commit at least US$5 million in investments, with a minimum of US$500,000 allocated to each underlying fund. This exclusive offering is set to debut in Singapore and Hong Kong, before eventually reaching other Asian markets such as Taiwan.

UBS head of fund investment solutions Jansen Phee explained that this program targets high-net-worth, ultra-high-net-worth clients, as well as family offices who may find it challenging to access certain institutional managers due to their higher investment thresholds.

What sets this program apart is the managers involved and the way they invest. Traditional mutual funds often operate within strict constraints that limit managers' ability to deviate from their benchmarks. Institutional-grade strategies, on the other hand, give managers greater flexibility to back high-conviction views while still adhering to defined risk controls. Phee emphasized that this increased flexibility doesn't mean taking on unnecessary risks, but rather allows managers to express their conviction in a view.

To differentiate itself from competitors, UBS is pairing exclusive strategies with reporting and analysis typically associated with institutional portfolios. Clients can request detailed performance attribution, risk analytics, and a look-through analysis of underlying fund allocations. Additionally, they will receive more extensive portfolio commentary and risk assessments. UBS aims to give clients a distinct experience and a new way of engaging with funds.

The program will initially feature six managers or strategies, three in equities and three in fixed income. Four managers will be launched initially, with two more expected in October following a thorough due diligence process. These managers include DoubleLine, Acadian Asset Management, and Wellington Management. Some offerings have been co-developed by UBS and its managers, exclusive to the bank in Asia; others have historically been accessible only to institutional investors.

UBS intends to maintain a smaller program, capping it at around 15 to 20 managers or strategies. Phee added that the managers chosen are truly active, prepared to take strong convictions in their views, and have consistently delivered significant alpha. For certain institutional managers, the appeal of this program goes both ways – they can tap into private wealth through a select few partners with scale, rather than building distribution relationships with banks across Asia.