Exclusive: UBS shuts some China private funds, will lay off staff,

HONG KONG, April 18 (Reuters) – UBS is shutting down some of its China private funds business and will lay off one-third of the staff as the Swiss bank cuts operating costs in the country, said three sources with direct knowledge of the matter.

UBS (UBSG.S), opens new tab will shut up to 17 of its equity and bond private funds and return the money to the investors, out of 19 funds launched since the private fund management unit started in 2016, said two of the three sources. In China, private funds are equivalent to hedge funds and private equity funds, serving high net worth and institutional investors.

As a result, the fund management unit, UBS Asset Management Shanghai, will soon start laying off around one-third of its team of 50, the two sources said, joining other global asset managers that have cut headcount in China in recent months.

The firm plans to focus on alternative strategies such as funds of funds and is moving to expand private funds investing into overseas markets, all three of the sources said.

Source: REUTER