UBS to liquidate Absolute Return Bond Fund due to low growth, assets

By Toni Weeks

San Diego, Oct. 20 - The board of trustees of the UBS Absolute Return Bond Fund said it has approved actions to liquidate and dissolve the fund on Dec. 20, according to a 497 filing with the Securities and Exchange Commission.

The fund's investment adviser is Chicago-based UBS Global Asset Management (Americas) Inc.

In reaching its decision, the board considered factors that have adversely affected the fund, including low asset levels and limited future prospects for growth.

The plan provides that the fund's assets be converted into cash or cash equivalents or be liquidated and that the fund distribute pro rata to its shareholders all existing assets in a complete liquidation. As the liquidation date approaches, the fund's assets may be invested in money market instruments or held in cash and will no longer be investing according to its investment objective.

In connection with the upcoming liquidation, effective Oct. 20, the board approved the closure of each class of the fund to reinvestments of dividends and distributions as well as new investments, including new investors, purchases from existing investors and purchases for exchange from other funds.

The board also will waive the annual distribution fee of 0.25% of average net assets that is charged to class C shareholders, the 1% redemption fee that is charged on sales or exchanges of shares from any of the fund's classes less than 90 days after purchase and all contingent deferred sales charges assessed on redemptions that are charged on purchases of class C shares and of greater than $250,000 of class A shares.

The annual service fee of 0.15% of average net assets for class A shares and the 0.25% annual service fee for class C shares have not been eliminated.

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