The fund-which was inherited in the takeover of Credit Suisse-was highly exposed to some of the weakest sectors.
It had more than 80% of its 1.9 billion Swiss francs ($2.2 billion) in assets in office properties, and the United States and Germany were its biggest markets, according to UBS.
The Swiss bank decided to liquidate the fund because outstanding redemption requests meant that it would have to sell the most liquid assets below their long-term intrinsic values, the banking group said in a statement on Thursday.
Such concerns have swept through real estate funds. As investors demand money back, fund managers are forced to sell their best assets at cut-rate prices and weakening their portfolios in the process.
In the first six months, the market value of the fund’s assets decreased 12%. CS Real Estate Fund International had already lost 31% of its value in 2023 compared to the prior year.
