SWITZERLAND - Swiss bank UBS saw inflows into its asset management business fall to CHF37.2bn (€22.9bn) in 2006 from CHF 49.5bn in 2005, according to its annual results. However, this did not prevent it posting a 13% rise in assets under management.
The CHF12.3bn outflow was mainly caused by a fall of CHF 20.8bn in inflows from wholesale intermediary clients. But institutional new money inflow rose to CHF29.8bn from CHF21.3bn.
Total assets under management in UBS' Global Asset Management business rose 13% to CHF866bn with institutional clients rising 18% to CHF519bn.
UBS also unveiled plans to open two new offices for its wealth management business in Germany. The locations were not yet confirmed, a spokesman told IPE.
Currently, UBS' wealth management has 10 offices in Germany, the bank's investment banking business has one in Frankfurt and its Global asset management arm has offices in Frankfurt and Munich.
For UBS said that major institutional inflows worldwide were seen "in alternative and quantitative investments, fixed income and multi-asset mandates". The most outflows were reported from equity mandates.
"Performance in some of the core equity capabilities is presenting challenges, although the issues are broadly confined to European, Japanese and global equity portfolios," UBS said.
UBS' asset management business posted a 2006 pre-tax profit of CHF1.4bn, up from CHF1bn. The bank noted that the increase "reflects higher management fees in all businesses and alternative and quantitative investments' performance fees".
Operating income for all of UBS' businesses rose 15.5% to CHF47.2bn. Assets under management for the whole of the company rose 13% to almost CHF3trn.