UBS May Not Attract Net New Money Until 2011, Citigroup Says
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By Elena Logutenkova
Sept. 9 (Bloomberg) -- UBS AG, the world’s second-biggest manager of money for the wealthy, may not attract net new client investments until 2011 after the loss of advisers, Citigroup Inc. analysts said.
“Assets under management attrition relating to the unforced adviser departures is expected to carry over in the first half of 2010,” the analysts, including Andrew Coombs, said in a note today after a meeting with Juerg Zeltner, co-head of UBS’s wealth management and Swiss bank unit. “Combined with the envisaged offshore outflows, a return to positive net new money might therefore not occur until 2011.”
UBS has seen five consecutive quarters of client redemptions at its wealth management businesses, totaling 156.3 billion francs ($149.3 billion). Over the 18 months through June, the Zurich-based bank had 2,147 departures of international client advisers, of which 1,440 were unforced, Citigroup analysts said.
“A further 678 departures are envisaged in the second half 2009, before a return to growth in 2010,” said the analysts, who have a “buy” rating on UBS. At the end of June, UBS had 3,593 international client advisers at the wealth management and Swiss bank unit, helping customers manage 633 billion francs of invested assets.
Sabine Jaenecke, a spokeswoman for UBS, said the bank doesn’t comment on analysts’ notes.
The bank has started initiatives to win back clients’ money as 60 percent of withdrawals over the past 18 months were made by customers who retained a UBS account, according to Citigroup.
To contact the reporters on this story: Elena Logutenkova in Zurich at [email protected]
Last Updated: September 9, 2009 05:20 EDT
Share | Email | Print | A A A
By Elena Logutenkova
Sept. 9 (Bloomberg) -- UBS AG, the world’s second-biggest manager of money for the wealthy, may not attract net new client investments until 2011 after the loss of advisers, Citigroup Inc. analysts said.
“Assets under management attrition relating to the unforced adviser departures is expected to carry over in the first half of 2010,” the analysts, including Andrew Coombs, said in a note today after a meeting with Juerg Zeltner, co-head of UBS’s wealth management and Swiss bank unit. “Combined with the envisaged offshore outflows, a return to positive net new money might therefore not occur until 2011.”
UBS has seen five consecutive quarters of client redemptions at its wealth management businesses, totaling 156.3 billion francs ($149.3 billion). Over the 18 months through June, the Zurich-based bank had 2,147 departures of international client advisers, of which 1,440 were unforced, Citigroup analysts said.
“A further 678 departures are envisaged in the second half 2009, before a return to growth in 2010,” said the analysts, who have a “buy” rating on UBS. At the end of June, UBS had 3,593 international client advisers at the wealth management and Swiss bank unit, helping customers manage 633 billion francs of invested assets.
Sabine Jaenecke, a spokeswoman for UBS, said the bank doesn’t comment on analysts’ notes.
The bank has started initiatives to win back clients’ money as 60 percent of withdrawals over the past 18 months were made by customers who retained a UBS account, according to Citigroup.
To contact the reporters on this story: Elena Logutenkova in Zurich at [email protected]
Last Updated: September 9, 2009 05:20 EDT
