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Ten become four - UBS streamlines its range of real estate funds

Media Releases Switzerland

UBS is gradually streamlining its range of real estate funds, and will rename them to take account of this. This will allow UBS to position its products and their defined investment strategies more clearly in the market. The existing ten real estate funds will be progressively merged into four products.

UBS has managed ten real estate funds which invest in the Swiss real estate market for the past three years. Several of these funds were formerly managed by other fund management companies before coming under the management of one of the current UBS's precursor companies when the Investment Fund Act took effect.

The cost of converting the real estate fund range will be covered by the fund management, i.e. there will be no charge to the funds themselves or to investors. During the transition period, investors can continue to invest in the existing products without difficulty and can also continue to profit from the superior yields of UBS real estate funds compared with fixed-income investments.

UBS intends to position itself on the Swiss market with the following real estate funds:

  • UBS Foncipars Série ancienne: This fund invests exclusively in real estate in French-speaking Switzerland, primarily in residential properties. It is the successor to the two former real estate funds for French-speaking Switzerland: UBS Foncipars Série ancienne (target vessel) and UBS Foncipars Série II, which were merged on 18 February 2002.

  • UBS Anfos 1: This fund's investments are primarily in residential properties in the main urban areas of German-speaking Switzerland. The new product will be created by merging UBS Swissfonds 1 and 2, UBS Anfos 1 (target vessel) and 2 and UBS Swissimmobil 1961.

  • UBS Swissreal: This fund primarily invests in commercial properties throughout Switzerland. The new product will be created from the existing UBS Swissreal with the addition of various commercial properties from other UBS real estate funds.

  • UBS Sima: This fund invests throughout Switzerland. The share of residential properties is 70%. The properties owned by UBS Swissimmobil Neue Serie will be integrated into this portfolio.

To ensure that the different products can be merged as seamlessly as possible, we intend to carry out splits in those funds designated as target vessels this summer. Thus, for example, investors who currently own one unit certificate with a value of CHF 200 will receive four new unit certificates with a value of CHF 50 each.
Furthermore, the financial years of all the funds will in future close on the same date. The names of the funds mentioned above are to be updated by the end of 2002 at the latest.

The new real estate fund range offers investors the following benefits:

  • Clearly positioned products. Investors can determine their investment priorities or select the defined mixture of UBS Sima.

  • Improved liquidity on the stock market. The mergers will substantially increase fund volumes. This will have a very positive impact on the tradability of the new funds.

  • New investment alternatives which were previously not possible. The planned fund mergers will enable all UBS real estate funds to make investments in larger properties.

Basel/Zurich, 23 April 2002