Even as it considers laying off 30% of its total employees globally following the acquisition of Credit Suisse, UBS has launched an aggressive hiring drive in the United States for wealth managers who cater to wealthy Americans.
On the first half of the year, UBS hired 50 financial advisors, including those from the Merrill Lynch division of Bank of America, the recently acquired First Republic Bank of JPMorgan Chase, Citigroup, and Wells Fargo. 30 of those were announced following the March announcement of the Credit Suisse acquisition. The biggest group was the 13-person BG Group, which was in charge of Merrill's $2.5 billion.
UBS surpassed Credit Suisse to take over as the second-largest wealth manager in the world. Although it holds a dominant position in Europe and Asia, American banks dominate the industry of managing the wealth of the ultra-rich in the United States, where it ranks only as the fourth largest wealth manager.
“The U.S. is the largest wealth market globally, and in recent years there has been unprecedented growth," Iqbal Khan, UBS' president of global wealth management, told Reuters. "Investing in and building our business here is a top priority,” said Khan, who serves on the bank's executive board.
On June 12, the day UBS concluded its historic acquisition with Credit Suisse, Khan met with high-net-worth clients in southern California to emphasise the significance of the firm. Additionally, he directed an internal gathering of its top financial advisors.
Because Credit Suisse left U.S. private banking in 2015 and relocated around 275 financial advisers to Wells Fargo, the acquisition had no effect on UBS' wealth business in the U.S.
In the past three years, UBS' financial advisor ranks in the United States have increased by more than 25%. At the end of March, the bank had 6,147 advisers working across the Americas, but it would not say how many of them were based in the United States.
Global banks are increasing their investments in wealth-related sectors because they generate predictable fees that act as a buffer against unpredictable activities like trading and investment banking. The fastest-growing segment, ultra-high net worth clientele, are the focus of the majority.
According to John Mathews, head of wealth management at UBS in the Americas, the group of persons with more than $30 million in investable assets is anticipated to increase 10% over the next five years as they increase their fortune.
"We’ve been focused on attracting and retaining advisers who are skilled in serving this population,” he said.
According to a Credit Suisse analysis released last year, the number of millionaires with net worths over $50 million increased by more than 50% between 2019 and 2021, reaching 264,200. The majority of them are Americans.
The core value of UBS is wealth. Johann Scholtz, a Morningstar analyst, forecasts that within four years, the bank would derive 63% of its revenues from wealth management.
In the upcoming years, UBS will need to concentrate on the wealth transfer from baby boomers to their heirs in order to improve its position in the United States. In addition to hosting parties for several generations of affluent families, the bank is diversifying the age and racial makeup of its adviser team.
According to UBS, the United States will transfer to younger generations approximately $18 trillion over the next seven years and up to $84 trillion over the following twenty years.
“Over the next 20 years, we'll see the greatest transfer of wealth in history," said Khan, who joined UBS from Credit Suisse in 2019. "That presents a huge opportunity for us to serve a whole new generation of clients.”
(Source:www.reuters.com)
On the first half of the year, UBS hired 50 financial advisors, including those from the Merrill Lynch division of Bank of America, the recently acquired First Republic Bank of JPMorgan Chase, Citigroup, and Wells Fargo. 30 of those were announced following the March announcement of the Credit Suisse acquisition. The biggest group was the 13-person BG Group, which was in charge of Merrill's $2.5 billion.
UBS surpassed Credit Suisse to take over as the second-largest wealth manager in the world. Although it holds a dominant position in Europe and Asia, American banks dominate the industry of managing the wealth of the ultra-rich in the United States, where it ranks only as the fourth largest wealth manager.
“The U.S. is the largest wealth market globally, and in recent years there has been unprecedented growth," Iqbal Khan, UBS' president of global wealth management, told Reuters. "Investing in and building our business here is a top priority,” said Khan, who serves on the bank's executive board.
On June 12, the day UBS concluded its historic acquisition with Credit Suisse, Khan met with high-net-worth clients in southern California to emphasise the significance of the firm. Additionally, he directed an internal gathering of its top financial advisors.
Because Credit Suisse left U.S. private banking in 2015 and relocated around 275 financial advisers to Wells Fargo, the acquisition had no effect on UBS' wealth business in the U.S.
In the past three years, UBS' financial advisor ranks in the United States have increased by more than 25%. At the end of March, the bank had 6,147 advisers working across the Americas, but it would not say how many of them were based in the United States.
Global banks are increasing their investments in wealth-related sectors because they generate predictable fees that act as a buffer against unpredictable activities like trading and investment banking. The fastest-growing segment, ultra-high net worth clientele, are the focus of the majority.
According to John Mathews, head of wealth management at UBS in the Americas, the group of persons with more than $30 million in investable assets is anticipated to increase 10% over the next five years as they increase their fortune.
"We’ve been focused on attracting and retaining advisers who are skilled in serving this population,” he said.
According to a Credit Suisse analysis released last year, the number of millionaires with net worths over $50 million increased by more than 50% between 2019 and 2021, reaching 264,200. The majority of them are Americans.
The core value of UBS is wealth. Johann Scholtz, a Morningstar analyst, forecasts that within four years, the bank would derive 63% of its revenues from wealth management.
In the upcoming years, UBS will need to concentrate on the wealth transfer from baby boomers to their heirs in order to improve its position in the United States. In addition to hosting parties for several generations of affluent families, the bank is diversifying the age and racial makeup of its adviser team.
According to UBS, the United States will transfer to younger generations approximately $18 trillion over the next seven years and up to $84 trillion over the following twenty years.
“Over the next 20 years, we'll see the greatest transfer of wealth in history," said Khan, who joined UBS from Credit Suisse in 2019. "That presents a huge opportunity for us to serve a whole new generation of clients.”
(Source:www.reuters.com)
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