SWITZERLAND - Swiss bank UBS saw net institutional outflows of CHF12.7bn (€8.72bn) last year, while former managers received bonus payments, partly in form of additional pension fund contributions.
UBS saw net inflows in its institutional business in 2009 in the Middle East, the Americas, Switzerland and all Asia-Pacific markets except Japan, while the UK was one of the countries making net asset outflows.
The bank reported institutional net outflows of CHF12.7bn (or CHF14.8bn excluding money market flows), which is less than the year before (CHF55.6bn), but only slightly below the 2007 level of CHF16bn.
UBS has recently been put on review by several local government schemes in the UK. (See earlier IPE story: UBS Global AM under renewed pressure following dismissals)
In its 2007 annual report, UBS had noted the outflows were "related to the weak past investment performance in some core and value equity capabilities, but said "these problems have been addressed and new investment management teams are in place".
Net outflows were reported last year from alternative and quantitative investments, multi-asset, equities, fixed income and real estate.
But the firm said because of "positive impact of financial market developments and positive currency fluctuations", institutional assets increased to CHF346bn from CHF335bn the year before.
UBS also reported that it had paid Peter Kurer, former chairman of the board of directors, who went into early retirement in April 2009, CHF3.3m into his pension fund "to cover the deficit".
Similarly, Marcel Rohner, who stepped down as group CEO in February last year, was granted a CHF1.2m one-time contribution into the UBS pension fund.
According to the annual report, the UBS defined benefit Swiss pension fund was around 95% at the end of 2009.