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UBS fund invested $1.4 billion with Madoff: paper


    GENEVA (Reuters) - A Luxembourg-based fund run by Switzerland's biggest bank UBS invested $1.4 billion with Bernard Madoff, the U.S. fund manager accused of running a $50 billion fraud, Swiss weekly NZZ am Sonntag said on Sunday.

    UBS (UBSN.CH)declined to comment on the size of fund, which the newspaper called Luxalpha.

    Spokesman Christoph Meier told Reuters: "Madoff was not on our recommended list of direct investment options."

    However, he noted that UBS, the world's biggest wealth manager, had a number of wealthy clients, family offices and intermediaries who could request the bank to set up funds of funds of their choice.

    The Financial Times reported on Saturday that UBS was seeking to absolve itself of any duty to safeguard investor assets in Luxalpha. UBS declined to comment on that report.

    Funds managed by Swiss banks have been prominent victims of Madoff, who is accused of running a global Ponzi scheme in which earlier investors are paid off with investments from newer clients.

    (Reporting by Jonathan Lynn; Editing by Erica Billingham)