UBS unit follows the flow of money
Swiss bank's wealth management division seeks to expand by tapping into the funds pouring into Asia as Europe remains in the doldrums
As net money flows into the Asia-Pacific continue, the wealth management unit of Swiss bank UBS is aiming to tap the investment market by growing its business at double the rate of gross domestic product expansion in the region.
Jürg Zeltner, the chief executive of UBS Wealth Management, said he expected the bank's invested assets in the Asia-Pacific to reach 20 per cent or more of its total assets under management in the medium to long term, almost double their level of 12.2 per cent at the end of last year.
Zeltner said that potential growth would come, thanks to a high rate of economic growth in the region and increasing fund flows into Asia.
UBS Wealth Management's total invested assets amounted to 1.6 trillion Swiss francs (HK$13.3 trillion) worldwide last year.
Net new money flowing into UBS Wealth Management from clients in the Asia-Pacific grew 9.3 per cent in the fourth quarter of last year, more than offsetting outflows from the bank's operations in Europe during the same period.
Zeltner said he expected the trend to continue this year because money would keep pouring into Asia from Europe, where the economic outlook remained sluggish.
Asia was at the centre of the group's strategy, said Allen Lo, the country head and chief executive of UBS in Hong Kong, adding that the bank would devote substantial resources to investing in its Asian operations.