Like its competitors, UBS global wealth management closed out 2021 with a bang, reporting Tuesday that in the Americas region, it added $21.9 billion in net new fee-generating assets for the quarter ending Dec. 31.
That's a big leap when compared to $11.8 billion in net new assets for the third quarter and just $1.4 billion in what the global bank referred to as "net new money" for wealth management in the Americas region for the same period in 2020.
Meanwhile, UBS said in its earnings release that like its competitors, it is looking to continue expanding its franchise. That's quite a different tune for large financial institutions like UBS, many of whom were rocked by the 2008 financial crisis and then for years faced restrictions imposed by banking regulators on their stock buybacks and dividends.
Just last week, UBS Group said it was buying leading independent robo-adviser Wealthfront Corp. in a deal valued at $1.4 billion, ending months of speculation over the fate of one of the industry’s largest automated-advice platforms.
"We will leverage digital to expand our reach starting in the U.S., where we’ve announced our plans to acquire Wealthfront to deliver a digital wealth management offering to millennial and Gen Z affluent investors," the company said. "Together, we can expand our wallet share, access new clients, lower the cost to serve, and drive long-term growth. Looking ahead, we are planning similar models in the rest of the world."
As InvestmentNews has noted, despite last year’s political and social turmoil, 2021 turned out to be an incredibly healthy year for the broad financial advice industry, from large broker-dealers to burgeoning registered investment adviser networks.
The S&P 500 repeatedly hit record highs during 2021, benefitting brokerage firms and banks like UBS immensely. The index ultimately posted a total annual return, including dividends, of 28.7% — almost twice its annual median return of 15.4%.
UBS global wealth management Americas delivered a pretax profit of $2 billion for 2021, which was a record and marked a 47% increase year over year, the company reported. The performance was supported by an 18% increase year over year in revenue per adviser and record loan volume of $92 billion, according to the company.
Financial adviser head count of 6,218 dipped slightly during the quarter but was within the range that large concerns like UBS wealth management Americas typically target. That total is down 1.4%, or 87 advisers, compared to the end of 2020, and was a decline of 48 advisers, or less than 1%, when compared to the total in the quarter ending in September.
Looking to refine your strategy for investing in stocks in the US market? Discover expert insights, key trends, and risk management techniques to maximize your returns
The RIA led by Merrill Lynch veteran John Thiel is helping its advisors take part in the growing trend toward fee-based annuities.
Driven by robust transaction activity amid market turbulence and increased focus on billion-dollar plus targets, Echelon Partners expects another all-time high in 2025.
The looming threat of federal funding cuts to state and local governments has lawmakers weighing a levy that was phased out in 1981.
The fintech firms' new tools and integrations address pain points in overseeing investment lineups, account monitoring, and more.
RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.
As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.
