UBS Asset Management has announced it will close six of its ASX-listed ETFs and delist three.
The closed ETFs include UBS IQ Cash (MONY), two Morningstar Australia ETFs and three ethical ETFs for Europe, Japan and the United States (UBE, UBJ and UBU).
“With respect to each fund, UBS considers that the fund is not and is not likely to become viable as an ASX-listed exchange-traded fund,” UBS said in a statement to the ASX.
“This is primarily due to insufficient scale, which results in disproportionately high costs as a percentage of each fund’s net asset value. On this basis, UBS determined for each fund that it was in the best interests of all members to terminate the fund.”
The last date shares can be traded or redeemed on the ASX is Monday 11 May, with final trades due to settle on 13 May. Termination will begin on Thursday, May 14 and final payment will follow shortly.
However, UBS believes that three other ETFs – UBW, UBP and UBA – would be viable as unlisted wholesale funds and offer investors continued access on different terms, including reduced fees and new benchmarks.
