UBS is not making great inroads in the funds business and is pondering a move to buy growth for its asset management instead, according to media reports.
UBS has quietly waved goodbye to its profit target of 1 billion Swiss francs for the asset management division. Pretax profit in the third quarter declined by 16 percent from a year ago and there was an outflow of client assets. The fund business of UBS, led by Ulrich Koerner, is not outperforming after years of reorganizing the unit.
It may all be about to change. Koerner suggested at the investor conference held last week that the unit may be about to make acquisitions even though organic growth was still the key to success, according to a «Bloomberg» report.
Mulling Its Options
The New York-based news organization also reported that sources familiar had said UBS was looking at options in the U.K. and the U.S.
UBS currently is the No. 16 among fund providers worldwide, according to a study published by Tower Watson. The main growth rates are being achieved by the heavyweights in the industry.
