UBS asset management arm nearly doubles institutional fund inflows
SWITZERLAND – UBS Global Asset Management said inflows to its institutional business nearly doubled to CHF 23.7bn (€15.3bn) in 2004.
“For full-year 2004, net new money inflows in the institutional business stood at CHF 23.7bn, almost doubling from CHF 12.7bn a year earlier,” the report says.
The growth was partly due to investment in alternative assets, including hedge funds, and quantitative investments, the Swiss group said in its annual financial report, which also saw strong growth in qquity and fixed income mandates.
The inflow also drove UBS’s higher operating income, which rose 16% due to “a continuing change in asset mix towards higher-margin products and a rise in market valuations, resulting in increased asset levels and revenues.”
The asset management arm, headed by John Fraser, reported a pre-tax profit of CHF 544m for full-year 2004, up 64% from CHF 332m in 2003.
The group, which as a whole as posted CHF 8.08bn profits for 2004, which was up CHF2bn from 2003, has also increased total remuneration, including pension packages, for top executives.
Total remuneration to executive members of the board of directors and group executive board amounted in 2004 to CHF 165.3 million in 2004, including cash, shares and accrued pension benefits. The sum compares with CHF144.6m in 2003 and CHF131.8m in 2002.