UBS-Fund business is up for discussion

Where does the journey of the Asset Management division of the UBS ? Something to be said for the moment that the big banks and their business with the sale of investment funds at Large and private investors will have to take separate ways. The talk is of a merger of the Asset Management activities of UBS, and Deutsche Bank. These activities are summarized in stock-listed company, DWS, Deutsche Bank nearly 80 percent stake.

in any case, the British "Financial Times" reported yesterday that the two banks would "seriously" talking about a merger of its Fund business. How, exactly, such a shoulder would be made final and who would have in such a merged entity in the end of the Say, seems to be still quite open.

Equal partners

According to the newspaper report, a possible Option provides that the UBS would outsource their Asset Management and in the DWS; in return, the Zurich-based Bank would get a (minority)participation in the expanded DWS. UBS was yesterday received no comments. Today, she presents to the financial statements for the first quarter of 2019.

rumors about a merger of UBS and Deutsche Bank in Asset Management are already since the beginning of April in the media. At the time it was approved, the Swiss tested off a Takeover of DWS in the intention to merge these with its own Funds, and later as an independent company by the UBS group old.

in any Asset-Management-Association of UBS and DWS, the roles of the Junior and senior partners are not clear on the Hand, has a simple reason for this: The two protagonists are similar in size. The Asset Management of UBS had arrived by the end of 2018, the managed assets of around 780 billion dollars, the subsidiary of the German Bank at the same time on the equivalent of about 750 billion Swiss francs.

Thus the two actors also face the same challenge: they have too little weight on the scale, in order to survive in the long term against competitors in the United States. The size of the benefits are in the Fund eyes sales particularly due and you will be even more important. For rising costs due to higher regulatory requirements, but also because of the increasing demands of the customers. Add to this the ever-tighter profit margins and the continued inflow of investors to cheaper passive investment products.

$ 1 trillion as a Minimum

All these influences driving the merger fever in the Asset Management. Among observers-intensive business in the competition the mark of $ 1 trillion in assets under management as a critical Size to survive in the long term.

Would pull a UBS division with DWS, would be the Duo abruptly eye-to-eye with France's Amundi, which is managed by the end of 2018, assets in the amount of 1.4 trillion euros. For the employees in UBS Asset Management, there were last-2301 full-time jobs – it is likely to be bitter: A kind of Fusion would be inevitably associated with the loss of a larger number of jobs.

(editing Tamedia)

Created: 24.04.2019, 21:23 PM