UBS fund loses almost a quarter of its value
Named as the best property fund in Australia in 2006, the UBS Property Securities Fund has reported a loss of 22.32 per cent after fees for the six months to December. The fund held a total of $1.8 billion in assets at the end of September with each investor required to put in at least $20,000. The fund had generated a 2.81 per cent return for the first half of the year, but in a letter to unit holders the head of UBS's Australian asset management arm, Paul Bolinowski, said that since July financial markets have become more unstable. The fund had invested 14 per cent of its assets in Centro and continued to buy shares in the company even after the shopping centre owner had said it was having trouble refinancing billions of dollars of debt.
By Sydney Morning Herald