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Major asset manager ditches ETFs

Lachlan Maddock
— 1 minute read

A major asset manager has shuttered its ETFs after they failed to attract investors.

UBS Asset Management announced that it will shut down six of its ASX-listed ETFs and delist three.

The terminated ETFs include UBS IQ Cash (MONY), two Morningstar Australia ETFs, and three ethical ETFs for Europe, Japan, and the USA (UBE, UBJ, and UBU).

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“In respect of each fund, UBS considers that the fund is not, and is not likely to become, viable as an ASX-quoted exchange-traded fund,” UBS said in a release to the ASX.

“This is primarily due to insufficient scale, leading to costs that are disproportionately high as a percentage of the net asset value of each fund. On this basis, UBS has determined for each fund that it is in the best interests of members as a whole to terminate the fund.” 

The last date that units may be traded on ASX or redeemed is Monday, 11 May, with final trades to settle on 13 May. Termination will commence on Thursday, 14 May, with final payment to follow promptly. 

However, UBS believes that three other ETFs – UBW, UBP, and UBA – would be viable as unquoted wholesale funds and offered investors continued access on different terms, including lower fees and new benchmark indexes.

 

Major asset manager ditches ETFs
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