UBS institutional invested assets surge 24%
GLOBAL – UBS’ third-quarter results reported an annual 24% surge in institutional invested assets under global asset management to CHF425bn (€290.9bn).
This gain was linked mainly to positive market performance and the strong net inflow of new money.
“Our wealth and asset management businesses benefited from record inflows of net new money and rising market valuations, helping them generate strong asset-based fees,” said UBS chairman Marcel Ospel and chief executive Peter Wuffli in their letter to shareholders.
Institutional invested assets saw a 70% increase in net new money in the third quarter to CHF9.2bn, up from CHF2.7bn at 30 June. This represented a 67% climb on the year.
Excluding movements related to money market funds, net new money was CHF10.7bn, which the report claimed was a quarterly record.
“Significant inflows were seen into equities and fixed income mandates in Europe, the Americas saw flows into fixed income mandates while clients in Asia Pacific made investments in asset allocation products,” commented UBS chairman and CEO of global asset management John Fraser.
There was a 43% climb in institutional fees to CHF363bn. This was also a 30% increase since end-June.
Total operating income climbed 37% since September last year to CHF671m and by 22% since June. Total operating expenses stand at CHF363m, up a little over 9% since June and 6% lower than last year.