Singapore-based UOB Kay Hian Advisors, with USD80 million under management, is considering using asset swaps for the first time to strip out the equity component on convertibles, according to Mary Koh, fund manager in the Lion City. The relative value fund manager is considering the move because the growing number of convertible bond issues in Asia this year is presenting opportunities. A number of funds in the region, including Wharton Investment Management in Hong Kong, have been looking to step up their convertible arbitrage activity this year (DW, 3/17).
UOB Kay Hian is owned by the stockbroking arm of Singapore banking giant United Overseas Bank. Koh noted that the fund's prime broker is Morgan Stanley. For all trades, pricing is the most important factor, she added. Pauling Cheung, spokeswoman at Morgan Stanley, did not respond to messages.
