EUR 850.00 For Business Accounts Only

Morningstar | UBS

UBS was ahead of the curve in anticipating what a global bank should look like in the post-crisis world, and its shareholders are benefiting from its early and decisive actions. Since 2012, UBS has acknowledged that some businesses have become less structurally attractive, and reduced its focus on investment banking while also eliminating legacy assets. Sergio Ermotti, CEO since late 2011, is instead focusing on UBS' core strengths--its moaty private bank, large asset manager, Swiss retail and commercial divisions, investment banking advisory business, and a handful of successful execution, distribution, and trading businesses. We believe UBS offers good exposure to some good secular growth stories, such as the increased concentration of wealth, the growth of high-net-worth individuals in emerging markets, and an ageing population. Globally, wealth is becoming more concentrated, and the assets of ultra-high-net-worth individuals are growing substantially ahead of global GDP. The growth in wealth will increasingly come from emerging markets, where competition is less intense, and the safety and diversification offered by a Swiss private banking account present an attractive option for investors from volatile regions. An ageing population will increase the number of individuals looking for advice on preserving and transferring wealth to the next generation.The rapid advances in artificial intelligence and the explosion of fintech disruptors pose less of a risk to UBS than to most other global banks. Offering advice to ultra-high-net-worth individuals is not a commoditised business with generic solutions. The complexity of ultra-high-net-worth individuals’ needs makes it unlikely that artificial intelligent solutions (robo-advisors) will be able to replicate the benefits of having a relationship manager.