ubs has merged its european wealth management businesses to be more efficient and to aid IFAs
UBS is integrating its wealth management businesses in Europe and is to launch a new alternative investment management business.
The US, Swiss and international wealth management businesses of UBS will be integrated with its Swiss corporate and retail banking units. The combined business will be called Global Wealth Management and Business Banking and will be headed by chairman and chief executive Marcel Rohner.
The decision to integrate the businesses has been driven by an attempt to benefit from economies of scale. UBS added that it wanted to implement a consistent wealth management offering across the world and to make it easier for advisers to source products and services from across the whole UBS group.
As a result of the integration, Raoul Weil, head of UBS's wealth management business for international clients, will join the bank's group executive board from 1 July 2005. Robert Silver, president and chief operating officer of the US wealth management business, will oversee the integration of the wealth management businesses.
Mark Sutton, chairman and chief executive of the US wealth management business, will take on the new role of chairman and chief executive of Americas. He will be responsible for developing UBS' client base in the region and integrating the bank's businesses. He will report directly to Peter Wuffli, chief executive officer of UBS.
UBS is also establishing a new alternative investment management business, Dillon Read Capital Management, which will use trading strategies developed within the group's investment bank. The chief executive will be John Costas, currently chairman and chief executive of UBS's investment bank. Dillon Read Capital Management, which will be launched at the start of 2006, will form part of UBS's Global Asset Management business led by John Fraser.
UBS's finance and commercial real estate trading businesses will move from the fixed income, rates and currencies area of its investment bank to form the core of the new alternative investment business within Global Asset Management. Around 120 staff will transfer to the new business, most of whom will be based in New York. UBS argued that this will enable it to generate a new supply of fees from what has until now been a purely in-house trading activity.
Costas said: "Investors have a huge appetite for alternative investment products backed up by the assurance of a global financial player. We can fulfil that demand."
UBS has 11,263 wealth management advisers around the world. The banking group has offices in 50 countries, with 39% of its employees in the Americas, 38% in Switzerland, 16% in Europe and 7% in the Asia Pacific. In all its businesses, UBS employs more than 68,000 people around the world.
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