Swiss investment firm Union Bancaire Privée (UBP) has joined forces with Partners Group to launch a new fixed income strategy.
The UBP PG – Active Income fund is being launched in a bid to promote alternative fixed income solutions, and will be co-managed by Partners Group’s private debt investment team and UBP’s global and absolute return fixed income team.
The new solution comes as fixed income is set to grow despite interest rate scares, co-CEO at UBP Nicolas Faller said, particularly on the back of a pensions decumulation wave.
The fund is set to capitalise on an increasingly fixed income-friendly environment, as investors begin to switch from equity to fixed income in order to secure their retirement savings, he continued.
UBP's CIO for fixed income Christel Rendu de Lint and her deputy, Philippe Graub, will both manage the fund while portfolio management on the Partners Group side will be led by Roberto Cagnati, managing director and head portfolio and mandate solutions.
The new strategy will allocate capital across private and public debt asset classes and regions, including investment grade, high yield, senior loan, mezzanine debt, real estate and infrastructure.
The strategic partnership has been made in an effort to combine both companies’ expertise on listed companies in the space but also direct lending.
‘Partners Group is specialised in direct lending markets, especially bonds and equity but also infrastructure and real estate and we are specialised on the listed fixed income side,’ Faller said.
Fixed income fund frenzy
The launch comes as the latest push to expand the fixed income range of funds at UBP.
The Geneva-based group announced the launch of a US high yield strategy to complete its range of high yield fixed income products, running alongside the UBAM Euro High Yield Solution, the UBAM Global High Yield Solution and UBAM EM High Yield Short Duration Corporate Bond funds.
The latest fund acts as a diversifier from the high yield solutions, commenting on this Faller said: ‘The truth of the matter is that there is a limit to what the client can invest in in high yield, it is quite a volatile investment even if we are managing it well.
‘There's a very strong wish for clients to invest in direct lending but very often they are not so well informed about the space and are concerned about liquidity, so that's how we handle this demand.’
The fund is registered for sale for qualified investors in Luxembourg, the UK, Singapore, Switzerland and many prominent EU markets.