UBS ran into big trouble in Germany with its open investment fund. After a two-year break, the Swiss bank is giving it another go.
The real-estate unit of UBS is returning the billion-euro «Euroinvest Immobilien» fund to the German market today, following a two-year break, according to «Boersen-Zeitung» (print edition).
The Euroinvest fund ran into trouble after the financial crisis, like many other open investment fund. The UBS division froze the fund in mid-2014 following substantial losses and an outflow of funds.
Where Others Failed
UBS is giving it another go despite the failure of several rival products, which had been returned to the market after difficulties following the financial crisis.
The Swiss bank hopes that opening the fund won't lead to a massive outflow of assets. Notice periods for investors made the potential outflow manageable, the newspaper cited Tilman Hickl as saying, the head of UBS real estate.
