UBS to merge three theme funds
UBS is to merge three theme funds from the same sector, UBS (Lux) Focused Fund - Top Luxury (in EUR, securities no. 1 093 875), UBS (Lux) Focused Fund - Top Leisure (in EUR, securities no. 1 093 874) and UBS (Lux) Equity Fund - Multimedia (in USD, securities no. 1 137 571), on 30 April 2003. The new fund will be called UBS (Lux) Equity Fund - Consumer Cyclical (in USD, securities no. 1 137 571) and will be realigned as of the same date.
In merging the three funds, UBS was guided by the following benefits:
Expanded investment universe with greater diversification and investment opportunities
Wider variety of possibilities to invest in attractive companies thanks to a focus on the broad, well-established MSCI World Consumer Discretionary Index
Thanks to its cyclical nature, UBS (Lux) Equity Fund - Consumer Cyclical can benefit from positive economic developments.
The new fund will focus on the cyclical consumer sector. This sector profits from economic upswings, since consumers become more willing to buy goods and services which are not everyday purchases as national income rises. Improved economic prospects lead to an increase in advertising activity. This, in turn, provides further incentives for consumers to buy, forming a virtuous circle.
The fund's benchmark is composed of the following subsectors: autos and vehicle components, consumer durables and clothing, restaurants and leisure, media as well as the retail sector (excluding food and beverages). The majority of these subsectors include parts of the luxury goods market.
Investors will not be charged for the transfer of units necessary as a result of the fund merger. The realigned fund's currency of account will be the USD. The conversion ratio for those funds which previously had the EUR as their currency of account will be calculated on the basis of their net asset values and the EUR/USD exchange rate as of 30 April 2003. The former fund, UBS (Lux) Equity Fund - Multimedia, will post an interim financial statement as of 30 April 2003. The fund's income is continuously reinvested, as is standard for reinvesting funds, and is included in the net asset value of each fund unit. Units of the funds affected, UBS (Lux) Focused Fund - Top Luxury, UBS (Lux) Focused Fund - Top Leisure and UBS (Lux) Equity Fund - Multimedia may be submitted for redemption free of charge up until 4 p.m. on 30 April 2003, when the subscription period closes. Subscriptions and redemptions in units of the new fund, UBS (Lux) Equity Fund - Consumer Cyclical, will be carried out for the first time on 2 May 2003.
Zurich / Basel, 31 March 2003