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No change to rating on UBS Clarion Global Property Securities Fund

02 Mar 2012
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Standard & Poor’s Fund Services today announced that there would be no change to the five-star rating on the UBS Clarion Global Property Securities Fund (formerly the ING Wholesale Global Properties Securities Fund). This follows a change in the responsible entity from ING Investment Management to UBS Global Asset Management (Australia) Ltd. (UBS Global AM).

As a result of this change, two unit classes have been combined into a single unit class, with differential fee arrangements administered by way of fee rebates. National Australia Bank has been appointed custodian, and total fees and costs of the fund have reduced. (UBS Global AM will pay fund expenses out of its management fee, rather than expenses being charged directly to the fund.) Additionally, currency hedging has been transferred to UBS Global Asset Management in London. The fund’s hedging policy—which is similar to that of the index—remains in place.
 
None of these changes affect the investment manager, investment objectives, or strategy of the fund; the fund will continue to be sub-managed by the highly regarded CBRE Clarion Securities. However, effective April 1, 2012, the fund’s benchmark will change to the UBS Global Real Estate Investors Index (A$ hedged) from the UBS Global Real Estate Investors Index (ex Australia) (A$ hedged).
 
CBRE Clarion has an experienced, well-established Asia-Pacific regional investment team (including Sydney-based investment staff and a trader). Furthermore, the majority of CBRE Clarion’s global REIT portfolios are Australia-inclusive, and the A$-domiciled fund has had the ability to tactically invest in Australia off-benchmark. We therefore do not consider this to be a detrimental change to the fund. However, S&P encourages investors to consider how this decision affects their overall property exposure.

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