UBS funds: Foncipars slightly increases distribution, Sima and Swissreal remain stable

According to the fund management company, UBS Sima achieved a stock market performance of 9.8 percent in the 2017 financial year, outperforming the SXI Real Estate Funds TR (6.6%). The net asset value per unit rose by 1.7 percent to CHF 89.52 (previous year: CHF 88.04); the reason for this was the positive market value development of the existing portfolio as well as renovation and new construction projects. In recent months, the fund has comprehensively renovated the commercial property at 15 rue de la Confédération in downtown Geneva at a cost of around 7.5 million.

In the 2017 financial year, UBS Sima achieved an investment return of 5.6 percent. At CHF 3.25 per unit, the distribution remains at the previous year's level. Based on the stock market price of CHF 112.00, this results in a distribution yield of 2.9 percent at the end of the 2017 financial year.

UBS Foncipars increased the value of its real estate portfolio by 8.9 percent to 1.35 billion in fiscal 2017. The stock market performance reached 12.8 percent. The premium was 29.9 percent at year-end. Based on last year's distribution and the 4.9 percent increase in the net asset value per unit, the investment return is 8.6 percent. The distribution will therefore be increased from CHF 2.45 to CHF 2.50 per unit.

UBS Swissreal achieved a performance of 10.6 percent in the past financial year. Rental income rose by four percent to 96.1 million, with a rental default rate of 4.6 percent. At year-end, the market value of the fund's properties increased by 2.5 percent to around 1.9 billion. As in the previous year, the distribution amounted to CHF 2.65 per unit. The distribution yield was 3.7 percent, resulting in an investment return of 5.2 percent.