UBS AG announced today it has frozen one of its real estate funds until the end of next year, due to an inability to keep up with redemption requests from wealth management clients.
Investors will be unable to withdraw funds from the UBS Wealth Management Global Property Fund Ltd. until the end of 2009, according to a spokeswoman for the Zurich, Switzerland-based bank.
“We closed the fund temporarily for the protection of the investor,” she said.
The $6 billion fund accounts for between 2% and 7% of UBS’s managed client assets, according to the spokeswoman.
UBS suffered $41.8 billion in net new money outflows during the third quarter.