FT - UBS said attempts to revive major business unit

ocean

Stemming the tide.

Significant reforms are under way at UBS to revive the bank’s asset management business and stem the tide of outflows it has suffered over the past decade.

The Financial Times reports that just over 10 years ago, UBS ranked as the world’s largest asset manager. The Swiss banking powerhouse lost that title following the financial crisis.

Last year it slipped to 14th place in the table of the biggest money managers globally, compiled by Willis Towers Watson, the investment consultancy.

UBS now oversees $653bn of assets, trailing the trillions of dollars of assets run by faster-growing rivals such as BlackRock and Vanguard, the world’s two largest fund companies.

Amin Rajan, chief executive of Create Research, the consultancy, says UBS has not fully recovered from a “massive haemorrhaging” of assets during the 2008 financial crisis.

“Sub-par performance and rising costs are the key culprits,” says Rajan, adding that these problems have proved hard to fix due to the complexity created by the size and reach of the business.

Hit the link below to access the complete Financial Times article:

UBS moves to resuscitate asset management business

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