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...UBS’s takeover of Credit Suisse, which controversially involved $17bn of bonds being wiped out, has created the biggest global wealth manager and a dominant player in Swiss and European banking....
...Fast-growing private capital managers such as Apollo have in recent years pushed aggressively to create higher earning assets for insurance companies....
...“UBS is valued like an average European bank, not as a leading global wealth manager. If the valuation gap to Morgan Stanley . . . is closed, the UBS share is worth SFr50 [$57.56].”...
...Bondholders who invested in additional tier 1 — or AT1 — securities lost $17bn when UBS took over its rival Credit Suisse last March....
...“Banks need high yield and sustainable yield,” said Antonio Roman, portfolio manager of the Axiom European Banks Equity fund....
...He then moved to Australia, where he became chief executive of wealth manager AMP Capital....
...The original Credit Suisse deal with Apollo led to the alternative investment manager taking on one of the Swiss bank’s most profitable divisions, but one that required a lot of capital....
...“UBS continues to be seen and valued like a conventional European bank, despite being the largest global wealth manager and deriving around 60 per cent of its revenues from wealth and asset management,”...
...The Swiss wealth manager reported a net loss of $279mn in the final quarter of 2023, although the bank produced an annual profit of $30bn, which was almost entirely due to an accounting gain it made on taking...
...Sweden-based Activist Cevian Capital, which has built a €1.2bn exposure, believes UBS may be able to do better. Apparently, UBS lacks ambition on its profitability targets....
...China’s “national team” of major state-backed financial services companies has ploughed Rmb410bn ($57bn) into local equities exchange traded funds so far this year, according to UBS estimates....
...Farage subsequently obtained a 40-page dossier of internal documents that showed the wealth manager had jettisoned him in part because his politics were “at odds with our position as an inclusive organisation...
...That does not necessarily mean that wealth managers such as UBS have less in their coffers. A mood of caution persists among clients, according to its boss Sergio Ermotti....
...In today’s newsletter: UBS boosts its bets on the ultra-rich A private credit talent raid yields lawsuits Buyout giants target white-collar partnerships Is UBS ready to get rich?...
...HSBC this summer poached Aladdin Hangari, the former head of Qatar for Credit Suisse and a key relationship manager in the region with close links to HJB and the Qatar Investment Authority, which was one...
...As Douglas-Pennant at UBS points out, plenty of fund managers are latching on to the phenomenon....
...UBS wealth management executives face acute pressure to retain big clients from both bank, especially in the Middle East, where several key relationship managers have defected to rivals....
...That makes UBS the top European bank by market value. Such metrics are proving UBS got a bargain. The Lex team is interested in hearing more from readers....
...Commenting on the survey, Matthew Fleming, partner at London-based wealth manager Stonehage Fleming, said: “It’s possible that this period of great wealth creation is over.”...
...The latter’s charging overhaul means earnings will not trough until 2026, UBS estimates....
...“We can’t get enough AT1s now,” says an executive at one large asset manager. The basic logic is sound....
...One bond fund manager said that the $7bn of demand for that deal probably spurred UBS’s decision to launch its own AT1 bond sale....
...Tao Wong, chief China economist at UBS, said the PMI figures indicated that export orders rebounded while domestic activity picked up in the second part of March....
...However, the UBS report shows that some sectors, such as non-fungible tokens, have collapsed in value recently....
...UBS, Morgan Stanley, Goldman Sachs and Barclays all predict that the BoJ will hold steady following a historic shift last month when it ended its negative interest rate policy and removed its cap on the...
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