UBS Group is planning to reorganise its wealth management division in the US in order to streamline its management and enhance its business among wealthy investors, Barron’s Advisor has reported citing a company memo.
As part of the reorganisation, which is scheduled to take effect on 1 January next year, the Swiss wealth manager will focus on emerging markets such as Florida and Texas.
The unit will also consolidate its footprint in conventional wealth hubs like New York.
A substantial number of clients have shifted their bases from New York to Florida and from California to Texas, according to UBS.
A few advisors are also pursuing their clients and competitors in south.
Some other advisors have started dividing their time to serve clients in Florida and New York, while some are establishing multistate teams to cover growing number of clients.
UBS head of Wealth Management USA Jason Chandler said in the memo: “Our clients are becoming wealthier, more diverse, and younger.
“We’re also seeing unprecedented shifts in where wealth is increasingly concentrated.”
The overhaul reduces the number of the unit’s market areas in the US from 34 to 20.
Following the revamp, John Mathews and Jennifer Povlitz will become division directors the company’s US Wealth Management division.
Mathews will continue to lead UBS Private Wealth Management and will look after ten newly defined markets across the country.
Povlitz will be responsible for other ten markets, where UBS has plans to expand.
Among other measures, UBS is set to enhance its infrastructure that cater to its ultrahigh-net-worth clients.
The bank is also considering an option to close its dealmaking and advisory business in the Middle East and North Africa (MENA) region, stated a recent Bloomberg report.