UBS is closing one of its Global Equity exchange traded funds (ETF) due to it being no longer commercially viable.
The MSCI World Select Factor Mix ETF had total assets, according to its most recent fact sheet, of just over £24m.
In an official announcement to the stock exchange this morning (September 30) UBS confirmed that the fund would shut and the cash be returned to investors.
The date for this to happen is November 15, 2019 but the shares of the ETF will cease trading on November 1, 2019.
The announcement stated: “Shareholders should note that on the Termination Date, the Company will automatically compulsorily repurchase any remaining Shares in the Fund.
"The net proceeds will then be distributed amongst Shareholders in accordance with their respective shareholdings. The Directors will endeavour to settle your repurchase proceeds as soon as possible thereafter, which is expected to be in or around 20 December 2019.”
The cost of liquidating the fund's assets and closing the fund will be borne by investors in the fund, these will include transaction costs for selling the fund's investments and converting them to cash.
The ETF aims to track the performance of an index of global stock markets, giving specific weightings to stocks based on whether they fit within the momentum, value, or growth style of investing.
david.thorpe@ft.com
