(Bloomberg) UBS Group AG boosted its recommended allocation to hedge funds for the second time in as many years, saying that the strategy will provide stability amid volatile markets.
The bank increased the share of hedge funds in its global model portfolio to 20 percent from 18 percent as of April, after raising the allocation from 15 percent in 2015, Kelvin Tay, Singapore-based chief investment officer for Southern Asia-Pacific at UBS Wealth Management, said in an interview. UBS, which managed 272 billion Swiss francs ($282 billion) of client assets in its wealth-management unit in the Asia-Pacific region year-end, cut the proportion of high-grade bonds by two percentage points to 11 percent.
