UBS Files to Liquidate Tax-Free Fund
A Prospectus Supplement filing for UBS Tax-Free Preferred Fund (& Reserves) states, "This supplement announces the planned liquidation in December of each of UBS Tax-Free Preferred Fund and UBS Tax-Free Reserves Fund and updates certain information contained in the Prospectus and SAI. Upon the recommendation of UBS Asset Management (Americas) LLC ('UBS AM'), each Fund's investment adviser/administrator, the Board of Trustees of UBS Series Funds has approved the liquidation of each Fund pursuant to a Plan of Liquidation. Accordingly, on or about October 18, 2024, shares of each Fund will no longer be offered for purchase, and all shares of each Fund will be liquidated on or about December 13, 2024." It explains, "On or about the Liquidation Date, each Fund will be liquidated, and any assets of the Fund will be paid in cash to shareholders remaining in the Fund. On or about the Liquidation Date, the Trust will distribute pro rata to each Fund's shareholders of record as of the close of business on the Liquidation Date all of the remaining assets of the Fund, after paying, or setting aside the amount to pay, any liabilities. UBS AM, and not a Fund, will bear the usual expenses incurred in connection with the carrying-out of a Plan (for example, the costs of preparing and sending this prospectus supplement and the costs of preparing and making certain related regulatory filings); however, expenses incurred by a Fund in the ordinary course during the liquidation, such as transaction costs, will be borne by the Fund." The filing also says, "At any time prior to the Liquidation Date, shareholders may redeem their shares of a Fund and receive the net asset value thereof, as provided in the Fund's prospectus.... If a shareholder remains invested in a Fund as of the Liquidation Date, the shareholder’s shares will be redeemed automatically, on or promptly after the Liquidation Date, at net asset value per share as of the Liquidation Date. Each Fund seeks to maintain a stable $1.00 net asset value per share, although there is no assurance that a Fund will be able to do so. Redemption of shares by a shareholder as part of a liquidation generally." For more on recent liquidations, see these Crane Data News stories: "Alight Money Fund Liquidates; Bloomberg Law on Brokerage Sweep Suits (9/19/24), "Dreyfus NY Muni MMF Liquidating" (8/14/24), "Invesco Files to Liquidate Prime Inst MMFs; UBS MF Converting to Retail" (6/13/24) and "DWS Liquidating ESG Liquidity Fund, 7th Prime Inst to Exit; MM Basics" (5/22/24).
