UBS is “constantly approached” about its asset-management business as deal-making accelerates in the industry, Chief Financial Officer Kirt Gardner said.
“We’re starting to see some consolidation,” the CFO of the world’s largest wealth manager said at a conference in London on Thursday, adding that the bank remains committed to the unit. “Many banks that are owners of asset managers see it as way to address capital challenges.”
Bloomberg News reports that asset managers are increasingly considering tie-ups as they come under pressure from cheaper index-tracking funds, which are performing strongly as quantitative easing boosts global stock markets. BNP Paribas is among firms exploring a deal with Axa’s European asset-management unit, people with knowledge of the matter have said, while Standard Life Plc has combined with Aberdeen Asset Management Plc to form the U.K’s largest active money manager.
While UBS is “constantly approached with conversations” about consolidation, it considers itself the “natural owner” of the unit, Gardner said, adding that he sees the business generating significant value over the coming years.
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