UBS Asset Management
In Europe, stronger than expected growth indicators and rising inflation, alongside the effects of a Trump election win, drove yields higher across the region after strong safe haven demand during the first half of 2016. A Fitch estimate states that the amount of negative-yielding sovereign bonds has plummeted to US$500 billion as of 1 March, from over US$2.6 trillion on 27 June last year, and Europe has played a significant part in this shrinkage.
While Asian HNWIs are well-known for their insatiable demand for yield, much to the dismay of Europe’s ultra-low yield fixed income market (and notwithstanding an aggressive yield climb – 10-year Eurozone government yields spiked to 1.29% in December 2016 from 0.61% in October), the market provides unique opportunities and harder to spot opportunities such as the rising Franco-German 10-year yield gap.
And while regional HNWIs continue to chase higher yields from higher growth economies, they will have undoubtedly noticed that markets erased a significant amount of negative yielding sovereign debt in the first three months of 2017, and there are murmurs from the European Central Bank of a rate hike possibility sooner than many would expect.
With its innovative risk management techniques, proprietary technologies and a global network of 900 investment specialists, UBS Asset Management leads the pack in terms of providing private banks in Asia with the necessary solutions to help manage an allocation with potential, but altogether free of uncertainty and risk. Accordingly, gatekeepers selected UBS Asset Management as this year’s Best Fund Provider – Europe Bond.