UBS wins $17bn passive mandate

UBS wins $17bn passive mandate

AMP Capital has become the largest passive client of UBS Asset Management Australia, with the Swiss-based firm winning 12 new investment mandates totalling $17 billion.


UBS Asset Management has secured $17 billion in new business that will see it manage 12 passive investment mandates for AMP Capital, spanning both fixed income and equities (global and domestic).

Speaking to InvestorDaily, UBS AM head of institutional sales Anne Flockart said the deal expands the firm's relationship with AMP Capital, making it UBS's largest passive client in Australia.

"There have been some large players out there in the passive space [in Australia], but this really puts us in contention with other large fund managers and gives us scale to work with other clients in the Australian market," Ms Flockart said.

UBS will also help AMP Capital with its recently announced ethical framework that will see the fund manager exit any exposure to tobacco, cluster munitions, landmines and biological weapons.

While UBS is primarily an active house (passive management comprises one-third of its total funds under management), the firm recognises investors are after "a range of solutions", Ms Flockart said – a nod to the increasing weight of money that is being allocated to passive strategies.

"By drawing on the capabilities of our systematic and indexing investment team, we are able to deliver the full scope of solutions – passive, smart beta and active  to be able to meet client needs," she said.

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