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UBP Launches Active Income Strategy With Partners Group

Arti Mehta Reporter London 18 January 2017

UBP Launches Active Income Strategy With Partners Group

The solution is aimed at investors seeking new approaches to gain exposure to fixed income assets.

Union Bancaire Privée is to collaborate with Partners Group to deliver a new fixed income offering.

The UBP PG - Active Income strategy will provide professional investors with global exposure to private debt and credit markets. The strategy will employ a relative value approach to allocate capital across private and public debt asset classes and regions, including investment grade, high yield, senior loan, mezzanine debt, real estate and infrastructure.

"Low yields on traditional fixed income investments have prompted growing demand from investors globally for higher-yielding debt strategies, including private debt,” said Roberto Cagnati, managing director at Partners Group.

The strategy will be co-managed by Partners Group's private debt investment team and UBP’s global and absolute return fixed income team. An investment committee comprised of staff from both firms will be responsible for allocation decisions between the sub-strategies, monitoring investment restrictions and managing liquidity. 

“The ultimate aim of the UBP strategy will be to provide clients with attractive risk-adjusted net returns and significant diversification relative to traditional investment approaches,” the company said in a statement.

“We believe this innovative investment solution will be of significant benefit to professional investors looking to increase their strategic allocations to market segments they are unable to access through traditional public fixed income markets,” added Nicolas Faller, co-chief executive of UBP Asset Management.

The launch is another addition to UBP’s new fixed income offerings, following the launch of it’s US High Yield Strategy last November.

Partners Group manages over €54 billion ($57.9 billion) in investment programmes across its global private markets platform, with €9 billion in private debt assets under management. UBP manages more than €13.5 billion in fixed income portfolios with a core focus on credit default swap indices to deliver additional liquidity.

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