Title: UBS Expands Wealth Management Team in the US, Targeting Affluent Clients

Introduction

UBS, a leading global wealth manager, is embarking on a recruitment drive in the United States to strengthen its team of wealth managers catering to affluent American clients. This strategic move comes as UBS undergoes a review of its global workforce following its recent acquisition of Credit Suisse. With a focus on the US market, UBS aims to tap into the country’s status as the largest wealth market globally and the significant growth it has witnessed in recent years.

Expansion and Recruitment Efforts

During the first half of the year, UBS successfully onboarded 50 financial advisers, including professionals from renowned institutions such as Bank of America’s Merrill Lynch unit, JPMorgan Chase’s First Republic Bank, Citigroup, and Wells Fargo. Notably, 30 of these advisers were recruited after the announcement of the Credit Suisse deal in March. One of the notable additions was the 13-person BG Group, which managed an impressive $2.5 billion in assets at Merrill Lynch.

Despite holding a prominent position in Europe and Asia, UBS ranks fourth in terms of wealth management in the US, where American banks dominate the market for managing the finances of the ultra-rich. However, the bank recognizes the tremendous potential of the US market and aims to strengthen its foothold in the region.

Importance of the US Market

Iqbal Khan, UBS’ President of Global Wealth Management and member of the bank’s executive board, emphasizes the significance of investing in and expanding the bank’s US business. Khan actively engages with high-net-worth clients, recently meeting with them in southern California on the day UBS closed its historic deal with Credit Suisse. Additionally, he led an internal event to celebrate the bank’s best-performing financial advisers.

While the acquisition of Credit Suisse did not directly impact UBS’ wealth business in the US, as Credit Suisse had exited US private banking in 2015, UBS remains committed to attracting and retaining skilled advisers capable of serving the exclusive clientele in the region.

Focus on Ultra-High-Net-Worth Clients

Global banks are increasingly prioritizing their wealth management businesses to generate stable fees, acting as a counterbalance to the volatility often associated with investment banking and trading operations. Among the fastest-growing segments in this space are ultra-high-net-worth clients, whom many banks, including UBS, are targeting.

According to John Mathews, UBS Head of Private Wealth Management in the Americas, the number of individuals with investable assets exceeding $30 million is expected to grow by 10% over the next five years. This growth is fueled by the accumulation of wealth within this segment.

A Credit Suisse report published last year revealed that the number of millionaires worldwide, with net worths above $50 million, grew by over 50% between 2019 and 2021, with the majority residing in the US.

UBS’ Focus on Wealth Management

Wealth management plays a pivotal role in UBS’ overall profitability. Analysts project that within four years, the bank will derive approximately 63% of its profits from wealth management, underscoring the significance of this sector within UBS’ operations.

Transferring Wealth to Future Generations

To solidify its position in the US market, UBS is focusing on the impending transfer of wealth from baby boomers to their heirs in the coming years. The bank aims to diversify its adviser workforce in terms of age and race, organizing events that cater to multiple generations within wealthy families.

UBS estimates that an astonishing $18 trillion will be passed down to younger generations in the US over the next seven years, with a potential total wealth transfer of up to $84 trillion over the next two decades.

Iqbal Khan’s Vision

Iqbal Khan, who joined UBS from Credit Suisse in 2019, sees the forthcoming two decades as witnessing the largest transfer of wealth in history. He views this as a golden opportunity for UBS to serve an entirely new generation of clients and solidify its position as a leading global wealth manager.

Conclusion

UBS is actively expanding its wealth management team in the United States, targeting affluent American clients. By attracting skilled advisers and focusing on the ultra-high-net-worth segment, UBS aims to strengthen its position in the US market. With the impending transfer of wealth to future generations, UBS sees significant opportunities to serve a new wave of clients and solidify its status as a leading global wealth manager.