The fund-which was inherited within the takeover of Credit score Suisse-was extremely uncovered to a few of the weakest sectors.
It had greater than 80% of its 1.9 billion Swiss francs ($2.2 billion) in belongings in workplace properties, and the US and Germany had been its greatest markets, in response to UBS.
The Swiss financial institution determined to liquidate the fund as a result of excellent redemption requests meant that it must promote essentially the most liquid belongings under their long-term intrinsic values, the banking group stated in an announcement on Thursday.
Such issues have swept by actual property funds. As traders demand a refund, fund managers are pressured to promote their finest belongings at cut-rate costs and weakening their portfolios within the course of.
Within the first six months, the market worth of the fund’s belongings decreased 12%. CS Actual Property Fund Worldwide had already misplaced 31% of its worth in 2023 in comparison with the prior 12 months.
