Thu, Aug 25, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

UBP gains CH105m in profits in H1-2011, but assets still down as Swiss Franc continues ascent

Wednesday, August 03, 2011

Guy de Picciotto
Opalesque Industry Update - Swiss private bank and asset manager Union Bancaire Privée (UBP) recently publicized profits of CHF105.4m ($125.2m) for the first half of 2011 (H1-2011) – compared to CHF103.3m in H1-2010.

As of 30th June 2011, assets totalled CHF60.7bn ($72.1bn) – compared to CHF65bn ($69bn) as the end of 2010. Assets were therefore down by 6.6%. They were mainly affected, says the bank, by negative exchange-rate effects.

At the end of 2010, UBP had CHF65bn in AuM compared to CHF75bn a year before that – again, due to negative exchange-rate effects.

Indeed, the Swiss Franc has been climbing steadily since 2008. According to Bloomberg, the Swiss franc appreciated 2.9% to a record 1.08467 per euro in London yesterday, the steepest intraday gain since Oct. 24, 2008. The currency rose against all of its 16 major peers, reaching all-time highs against the euro, dollar and pound.

UBP’s balance sheet total reached CHF15.3bn, and the annualised return on shareholder equity for H1-2011 was 12.8%. Conservative risk-management has allowed the bank to maintain a strong financial base and a Tier 1 capital ratio of 23.6%.

Guy de Picciotto, UBP's CEO, said that the bank, which employs around 1,200 people in various locations, focused on implementing its strategic plan in Asia and other growth markets, and on strengthening its private and institutional management and sales teams on the European markets during H1-2011.

The asset management branch of UBP, which runs funds of hedge funds, was one of the first to demand of its underlying managers to have independent administrators and custodians at the end of 2008 – after suffering from heavy redemption request levels that were spurred by the credit crisis. But its image suffered in the last couple of years: it had been an indirect investor in Bernard Madoff’s funds and was was asked to pay late last year around $500m to settle claims by Madoff’s trustee. Also, the bank was allegedly an investor in some of the funds that were probed by the FBI last year, which was investigating an insider trading ring.


See Opalesque’s video interview of Larry Morgenthal, CEO and CIO of Alternatives at UBP Asset Management here: Source
And corresponding article: Opalesque Exclusive: UBP had to take a hard line with underlying managers not willing to comply with better practice Source
B. Gravrand


Bg

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. LatAm hedge funds surge in 1H to +24.4%, emerging markets assets rise[more]

    Komfie Manalo, Opalesque Asia: Hedge funds investing in Latin America posted strong gains through mid-2016, reversing declines in four of the past five years, including the last three years, to lead all areas of hedge fund performance through the first half of 2016, according to the latest HFR Em

  2. Asia - LGT Capital Partners: Alternatives set for continued rise in Asia[more]

    From Asianinvestor.net: More flows are likely into insurance-linked strategies, private equity and trend-following strategies/CTAs, given the benefits of such investments, argues LGT Capital Partners. Despite the numerous quantitative easing programs and bailouts of recent years, the quest for

  3. Investors yank money from hedge funds after poor performance[more]

    From Marketwatch.com: A growing exodus from hedge funds extended to two of the biggest names in the industry Tuesday, Tudor Investment Corp. and Brevan Howard, as disenchanted investors increasingly shun what was once the hottest place to put money. The funds’ problem is clear: They just aren’t perf

  4. Banks look at hedge funds differently - and it should matter to allocators[more]

    From Valuewalk.com: Looking at two bank reports on the same topic can often yield interesting results. There are times when bank research is best viewed from the standpoint of how their analysis does or does not correlate with one another. Regarding hedge fund allocation decisions, one bank appears

  5. Legal - Hedge fund’s fixer kept deals flowing with bribes, U.S. says, Big four banks sued by U.S. hedge funds over BBSW, Lessons for hedge fund managers from the government's failed prosecution of alleged insider trading[more]

    Hedge fund’s fixer kept deals flowing with bribes, U.S. says From Bloomberg.com: With the Miami villa, stopovers at New York’s Plaza Hotel and millions channeled in bribes to win mining deals, Samuel Mebiame was the relationships guy in a corruption scheme that spanned continents, accord