UBS closes underperforming Absolute Return Bond fund

UBS has closed its underperforming Absolute Return Bond offering after assets dwindled to £15m.

The fund, run by head of global aggregate and global corporate bonds Jonathan Gregory, has fallen 32.12% since launch in April 2005 to 4 July. This compares to a 61.8% average return in the IMA Global Bond sector over the same period, according to Morningstar. The group said the fund had reached a size where it was not economically viable to run and operation costs were making too significant an impact on investment performance. Gregory will remain at UBS and will continue to lead its UK fixed income portfolios.