May 20, 2022
UBS Bank

Embattled UBS Group has appointed a new manager to oversee a $2 billion Asian high yield fund, the Swiss bank said in a statement, ending a five-month gap in permanent leadership at the fund.

Raymond Lin Gui will join UBS as head of portfolio management for Asia fixed income in May, according to the emailed statement.

Gui’s predecessor Ross Dilkes left UBS after 16 years late last year. The position has remained unfilled since his departure, during which time assets have tumbled by about $1.2bn due to withdrawals from investors concerned by the lack of leadership.

As part of his role Gui will be the lead manager of the Asian High Yield fund. He will report to Hayden Briscoe, head of global emerging markets and Asia pacific fixed income.

The Asian High Yield fund lost close to 18% in 2021, with the majority of the losses caused by the property crisis engulfing China Evergrande Group and other Chinese developers.

As well as China Evergrande, the fund held large positions in bonds issued by Kaisa Group Holdings and Sunac China Holdings. All three troubled developers have missed payment deadlines and seen their shares suspended from trading in Hong Kong.

With more than 30% of its portfolio exposed to Asian real estate the fund has seen the losses continue into this year, with a further 16% drop to date.

Gui, who previously worked at Hong Kong-based Income Partners Asset Management as co-chief investment officer and senior portfolio manager, will work alongside Smit Rastogi, who has been with the bank for over five years and will continue as co-manager of the fund.