UBS seeks more wealth managers for affluent Americans.

UBS Expands Wealth Management Team in the U.S.

By Tatiana Bautzer

UBS, one of the world’s largest wealth managers, is ramping up its efforts to cater to rich Americans. Despite considering a 30% reduction in its global workforce following the acquisition of Credit Suisse, UBS has recently recruited 50 financial advisers from top American banks such as Bank of America’s Merrill Lynch, JPMorgan Chase’s First Republic Bank, Citigroup, and Wells Fargo. This hiring spree includes 30 advisers who joined after the announcement of the Credit Suisse deal in March. Notably, UBS added a 13-person team from Merrill Lynch that managed $2.5 billion.

While UBS holds a leading position in Europe and Asia, it currently ranks fourth in the U.S. wealth management market, which is dominated by American banks. However, UBS recognizes the immense potential of the U.S. wealth market and is committed to investing in and expanding its business in the country. Iqbal Khan, UBS’ president of global wealth management, emphasized the importance of the U.S. market and personally met with high-net-worth clients in southern California on the day the Credit Suisse deal closed.

The acquisition of Credit Suisse did not impact UBS’ wealth business in the U.S. as Credit Suisse had exited U.S. private banking in 2015. UBS has been steadily growing its ranks of financial advisers in the U.S., with a more than 25% increase over the past three years. While UBS did not disclose the exact number of advisers based in the U.S., it had a total of 6,147 advisers in the Americas region as of late March.

UBS’ focus on wealth management aligns with the global trend of banks investing more in this sector to generate stable fees. The fastest-growing group of clients in this space is the ultra-high-net-worth individuals, who are expected to increase by 10% over the next five years. UBS is actively attracting and retaining advisers skilled in serving this population.

With over half of the world’s millionaires with net worths above $50 million residing in the U.S., UBS recognizes the significance of wealth management for its bottom line. The bank is projected to earn 63% of its profits from wealth management within four years. To strengthen its position in the U.S., UBS is focusing on the transfer of wealth from baby boomers to their heirs in the coming years. The bank is diversifying its adviser workforce in terms of age and race and organizing events for multiple generations of wealthy families.

According to UBS estimates, approximately $18 trillion will be passed to younger generations in the U.S. over the next seven years, presenting a massive opportunity for the bank to serve a new generation of clients.

(Reporting by Tatiana Bautzer in New York, additional reporting by Paritosh Bansal; Editing by Lananh Nguyen)

Other News:

• Heading into 2024, many voters aren’t feeling positive about the economy under Biden. One America’s Monica Paige is joined by a small business owner for his insight on the state of the economy.
• One America’s Bridget Bosco speaks with a Front Royal, VA mom and community organizer, Colleen DeLaFleur, about parents’ efforts to get pornographic and objectionable books out of the public library.
• One America’s Bridget Bosco speaks with actor Jim Caviezel, who plays Tim Ballard in “Sound of Freedom.”
• President Trump is heading to Pickens, South Carolina on Saturday to celebrate Independence Day.
• (Reuters) – Apple has been forced to make major cuts to production forecasts for its Vision Pro augmented-reality headset due to design complexity…
• By Sam Nussey TOKYO (Reuters) – The European Union (EU) will deepen cooperation with Japan on semiconductors, industry chief Thierry Breton said on…
• By Sam Nussey and Tim Kelly TOKYO (Reuters) – Japan is leaning toward softer rules governing the use of artificial intelligence (AI)…
• By Jody Godoy (Reuters) – Elon Musk’s move to temporarily cap how many posts Twitter users can read on the social media…