Key Takeaways
- • UOB Asset Management has formed a strategic alliance with New York-based PlusFunds Group to launch hedge fund index-based investment products for Singapore retail and institutional investors.
- • The offering provides passive exposure to hedge funds through an index created by Standard & Poor's, eliminating the need for direct fund selection and due diligence.
- • Index-based structuring reduces operational burden on UOB by removing the requirement for active monitoring and due diligence of individual hedge funds while delivering diversified exposure to institutional investors.
- • The product targets both retail and institutional segments in Singapore, expanding UOB's alternative investment capabilities in the regional market.
Summary
UOB Asset Management has announced a strategic partnership with PlusFunds Group, a New York-based investment firm, to offer Singapore-based retail and institutional investors passive exposure to hedge funds through a Standard & Poor's-created index. The alliance represents UOB's effort to broaden its alternative investment offerings while simplifying the operational complexity traditionally associated with hedge fund investing.
The index-based approach provides material advantages for both the asset manager and end investors. By utilizing a Standard & Poor's hedge fund index as the foundation, UOB circumvents the resource-intensive process of undertaking detailed due diligence and ongoing monitoring of individual hedge fund managers. This structure allows the bank to deliver a broad, diversified exposure to hedge fund strategies without the operational overhead typically required for direct hedge fund selection and governance.
For investors in the Singapore market, the product democratizes access to hedge fund exposure by offering a passive, index-tracked alternative to traditional active hedge fund allocations. This positioning appeals to institutional investors seeking systematic hedge fund exposure alongside retail participants interested in alternative asset classes. The partnership with PlusFunds Group, combined with Standard & Poor's indexing methodology, provides the technical infrastructure and credibility required to execute the strategy effectively in an Asian context.
The index-based approach provides material advantages for both the asset manager and end investors. By utilizing a Standard & Poor's hedge fund index as the foundation, UOB circumvents the resource-intensive process of undertaking detailed due diligence and ongoing monitoring of individual hedge fund managers. This structure allows the bank to deliver a broad, diversified exposure to hedge fund strategies without the operational overhead typically required for direct hedge fund selection and governance.
For investors in the Singapore market, the product democratizes access to hedge fund exposure by offering a passive, index-tracked alternative to traditional active hedge fund allocations. This positioning appeals to institutional investors seeking systematic hedge fund exposure alongside retail participants interested in alternative asset classes. The partnership with PlusFunds Group, combined with Standard & Poor's indexing methodology, provides the technical infrastructure and credibility required to execute the strategy effectively in an Asian context.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.