UBS AG will merge the investment and research functions of its global and U.S. wealth management operations. While the move itself is not earth-shattering news, the action represents yet another signal that the bank has no intention of selling its U.S. operation, according to one industry expert.
Since suffering a $2.3 billion trading loss in its investment bank in London last September, the bank has indicated it will now emphasize its wealth management operations, as opposed to investment banking.
The latest rejiggering would seem to underscore that assertion. “We have brought together all the investment and research competencies of our business into a globally coordinated and centralized engine, complemented by our investment bank, to produce strong investment insights for our clients,” the firm said in a statement released Monday.
Alexander Friedman, chief investment officer for the bank's wealth management arm outside the Americas, will now serve as global CIO for wealth management and will continue to report to Jurg Zeltner, chief executive of wealth management, as well as Robert McCann, chief executive of
UBS Group Americas.
Mike Ryan will serve as chief investment strategist for wealth management in the Americas, while keeping his responsibilities as head of research.
Anthony Roth added responsibilities as head of asset allocation and portfolio construction to his role as head of wealth management strategies. Mr. Ryan and Mr. Roth will report to Mr. Friedman, as well as William Carroll, head of Wealth Management Americas Solutions.
The tighter integration of operations in the Americas with the rest of the firm is a good idea, according to Alois Pirker, research director for consultant Aite Group LLC. “This is an encouraging sign for the Americas division,” said Mr. Pirker, who worked in investment solutions at
UBS between 1997 and 2004. “The investment landscape is more global now and having one large team focused on the issues and delivering insights around the world makes sense.”
He also suggested it may put to rest the persistent rumors that
UBS is looking to sell its wealth management operations in the U.S. “I don't think they would do this if they were still interested in selling the division,” Mr. Pirker said. “It seems to be a sign that they see Wealth Management Americas as a strategic asset and that they'll hold on to it for the long term.”
UBS had 7015 financial advisers in the Americas, managing $851 billion in assets at the end of the first quarter. It had total operating income of $1.56 billion for the reporting period.
