What is a fund liquidation and why does it happen?
A Fund liquidation occurs when a Fund is closedeither because it does not have enough funds or because it is simply no longer profitable enough.
In this case, the management decides that the assets of the fund will be sold and returned to the investors.
A dissolution of a fund is actually a natural part of the economic cycle, because sometimes funds simply have a too bad performance or the Fund volume has fallen below a profitable point.
Example: An ETF with less than CHF 50 million in fund volume and a TER of 0.25 % turns over just CHF 125,000 per year. The costs for fund administration, operating costs, administration costs (e.g. for the auditor) and other costs must be covered from these revenues. The operation of the fund becomes correspondingly unattractive as the fund volume decreases.
News: What will happen to the Credit Suisse index funds?
The merger of CS and UBS in 2023 may lead you to ask what will happen to the CS index funds.
At the time of publication of the article, this is not foreseeable. Of course, the further course of the merger is decisive.
- The CS funds will continued as before
- The Credit Suisse funds receive a new name (UBS)
- Some of the CS funds merge with existing UBS funds
- ...
What happens to the funds of CS can be seen in the Currently not predictable. Except...
