UnionBank launches risk-based fund

Union Bank of the Philippines and Swiss private bank and global asset manager Lombard Odier launched the country’s first US-dollar denominated risk-based fund.

Robert Ramos, first vice president and Trust and Investment Services Group head at UnionBank said the fund represents a viable investment option for private clients looking to preserve and grow their wealth not just for current but also future generations.

“The risk-based investment process seeks to maintain the total level of risk of the portfolio under control, mitigating sharp drops in the markets,” added Ramos.

Through the fund, UnionBank seeks to build portfolios that adapt quickly to periods of economic growth, inflation or downturn. The bank could adjust the allocation daily if necessary.

The fund mirrors the Swiss bank’s successful discretionary portfolio management strategy for its private clients all over the world. It focuses on managing the risk of the portfolio in order to achieve smoother returns over time.

This risk-based approach is unique in that it focuses on a return target with a risk budget, and is not driven by knee-jerk, short-term reactions to changes in the political, economic and market environment.

This is the first of many global investment and wealth planning solutions UnionBank would be offering to its higher end clients.