Zurich: Thousands of UBS clients have been hit by a move by Switzerland`s biggest bank to liquidate a property investment fund worth billions of dollars, Swiss newspaper SonntagsZeitung reported Sunday.
"We can understand your disappointment," the bank wrote in a letter to investors, according to excerpts quoted by the newspaper.
Not only have institutional investors been affected, but also "thousands of private clients," said the newspaper, which added that the closure of the so-called Global Property Fund has been confirmed by the bank.
Launched in 2004, the fund had invested in some 165 properties in locations including the United States, Britain, France, Germany and Japan.
In early 2007, it boasted a value of about 10 billion francs.
However, with property prices hurt by the financial and economic crises, its value has now slumped to around 4.3 billion francs.
The latest fund closure could deal a further blow to UBS bids to regain clients` confidence.
Shaken by the bank`s financial troubles, customers withdrew 91.1 billion francs in assets and funds over the first nine months of the year.