Corporates turning to fund managers

Low interest rates are driving some corporations to engage fund houses in running enhanced cash strategies.

Low interest rates in the United States and throughout much of Asia have driven some of the region's biggest corporations to consider using external fund managers to add punch to cash management, says Michael Winter, executive director and Singapore CEO at UBS Global Asset Management.

Like other investment bank-affiliated investment management firms, UBS' traditional client base in Asia has been central banks and other official institutions, and recently big insurance companies. But recently corporations have become a potential source of business for these houses as well.

Their aims are more modest than traditional institutional investors while a life insurance company mandate demands, say, 300bp over a...

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222