UBS has said clients are shifting money to be managed directly by the bank or pay for advice in a reversal of previous outflows after it revamped services to boost profitability.
Bloomberg reports that the mandates business had cumulative net inflows of more than $23bn in 2012 and the first nine months of this year after customers pulled about $16.9bn in the previous two years, CIO Alexander Friedman and William Kennedy, who heads the unit that manages the business, said in a telephone interview. UBS doesn’t officially publish data on mandates.
UBS is expanding the business as part as of focus on wealth management to boost earnings, hurt by low global interest rates and clients’ reluctance to trade in volatile markets. With about $214.1bn at the end of September, mandates accounted for 22% of assets the based bank manages for wealthy clients outside of the Americas.
'Our goal is to at least double total assets in mandates', Friedman, 43, said. 'For the vast majority of our clients, their financial performance is significantly better when they’re in a mandate versus self-directed'.
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