UBS boss 'saw it coming'

UBS building

For three years, the Swiss franc was locked against the euro under the central bank’s cap, with no end in sight. UBS Group’s Gregor Hirt last month sensed something was about to change.

Bloomberg News reports that UBS reduced exposure to euros for Swiss multi-asset pension funds that month because of a weak euro-zone economy and more discussion in Switzerland about the franc’s cap on the euro, Hirt said in a telephone interview.

The Swiss National Bank (SNBN) surprised the world by abolishing the cap, sending markets into a tailspin.

'We saw it coming', said Hirt, chief investment officer for Europe and Switzerland at UBS’s global investment solutions unit. His choice to reduce holdings minimized losses on about $17.4bn of funds he oversees, according to Hirt.

To access the complete Bloomberg News article hit the link below:

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