UBS China venture faces wrath of silver investors after valuation change increases losses

UBS China venture faces wrath of silver investors after valuation change increases losses

More than 200,000 Chinese retail investors filed complaints against UBS SDIC Fund Management following a sudden valuation change in its silver fund. The change, which increased potential losses from about 17% to 31.5%, occurred amid a sharp silver price crash.

UBS SDIC, a joint venture between Swiss bank UBS and state-owned SDIC Group, switched the benchmark from Shanghai Futures Exchange settlement prices to international market prices without prior notice. The move caused significant financial strain for investors who held the fund, prompting the fund manager to announce a compensation plan.