UBS Wealth Management has partnered with PIMCO to meet the growing needs for fixed income among its wealthy clients.

Under the partnership, PIMCO will manage a model portfolio for UBS’ wealth management clients, according to The Australian Financial Review (ARF).

Scott Kelly, UBS Wealth Management head of investment products, said that a drop in the deposit rates has forced clients to seek for more options to invest in bonds.

Kelly told the AFR: "High-net-worth investors are clearly shifting away from their historical bias towards domestic equities and term deposits; we are seeing that evolution gather pace in our business.

"In general, the biggest ‘underweight’ position compared to global averages has been in bonds and we continue to see interest in fixed income," he added.