Swiss banking giant UBS is, reportedly, eyeing to triple the amount of assets invested by its US wealth management clients in fee-based accounts within seven to 10 years.
Brokerages consider fee-based accounts more lucrative and consistent than traditional commission accounts. Currently, UBS fee-based accounts hold nearly 33% of client assets, or about $330bn.
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The goal is to grow fee-based assets to $1 trillion, or 50% of client assets, within seven to 10 years, Paul Hatch, who oversees products and services sold by UBS Wealth Management Americas’ 7,000 brokers, was quoted as saying by Reuters.
"We have to get further and further from the mass affluent space, and, some people would say, even from the high-net-worth space to the ultra-high-net-worth," Hatch said to have told mutual fund sales executives at a conference sponsored by Financial Research Associates.
UBS, currently, has five ‘dominant super-teams’. Each team has discretion to invest more than $1bn of client assets.
Within five years, UBS wants 100 such super-teams, Hatch revealed.
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By GlobalDataThe move will align the company with Morgan Stanley and Bank of America’s Merrill Lynch Wealth Management in relocating "up a chain" of wealthy investors to lift their income to asset management platforms.
