UBS Fund Sales to Halt All Distribution Deals With Qianhai Kaiyuan and Morgan Fund

Qianhai Kaiyuan Fund and Morgan Fund said on September 7 they will end all fund sales cooperation with UBS Fund Sales (Shenzhen) Co. from September 21, after UBS Fund Sales said it will suspend its fund distribution business, according to Jiemian News. Investors holding the relevant funds through UBS Fund Sales must complete share transfer custody or redemption by 3:00 p.m. on September 11. UBS Fund Sales was established in 2018 and is wholly owned by UBS Group. It launched the Ruifuzhong App in 2022, described as UBS Group's first digital wealth-management platform in Asia-Pacific. Jiemian News reported that several other fund distributors, including Zhongzheng Jinniu (Beijing) Fund Sales, Puling Fund and Kaishi Wealth, have also announced closures this year. Puling Fund said on June 8 that it would be unable to provide normal fund sales services from June 30 because it had lost its ability to continue operating. Qianhai Kaiyuan Fund said investors who miss the deadline will have their fund shares transferred to the company's direct-sales platform, with cash remaining safe but short-term trading restricted until personal information is completed. A fund company executive told Jiemian News that customer service teams began contacting investors at UBS Fund Sales from September 7 by text message, phone and email to remind them to redeem or transfer their holdings. A market executive at a major online distribution platform said the shakeout has accelerated because of fund sales fee cuts introduced earlier this year. The new rules lowered annual sales service fees for stock and mixed funds to 0.4% from 0.6%, for index and bond funds to 0.2% from 0.4%, and for money market funds to 0.15% from 0.25%. The executive said direct-sales channels also waive subscription and sales service fees, adding pressure on distributors. Jiemian News also cited first-half results showing stronger performance at leading platforms. Ant Fund reported revenue of 12.98 billion yuan, up 40% year on year, and net profit of 1.209 billion yuan, up 179%, exceeding its full-year 2025 net profit of 1.085 billion yuan. Tiantian Fund reported revenue of 2.102 billion yuan, up nearly 48%, and net profit of 111 million yuan, up 73%.