Thu, May 28, 2015
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. Investing - Hedge funds buy swathes of foreclosed subprimes, force up rents, float rent-bonds, Hedge funds buy Actavis, Valeant. ETFs join the party, The most loved biotechs of big hedge funds, Stocks to buy ... according to hedge funds, Atlantic City bond offering attracts hedge funds as buyers, Okumus Fund Management discloses huge new Ascent Capital Group stake[more]

    Hedge funds buy swathes of foreclosed subprimes, force up rents, float rent-bonds From Boingboing.com: When a giant hedge fund is bidding on all the foreclosed houses in a poor neighborhood, living humans don't stand a chance -- but that's OK, because rapacious investors make great landl

  2. Institutions - Institutional investors turn to real estate, planes, Assets at Boston’s five biggest family nonprofits rise to $3.5bn[more]

    Institutional investors turn to real estate, planes From Joins.com: The National Pension Service and domestic emerging market specialists who did not know where to invest in a low interest rate environment are turning to other investments like the blue-chip real estate market abroad.

  3. Regulatory - Hedge funds face tax as Iceland poised to end capital controls, Comment: Why alternatives need more transparency, not enforcement[more]

    Hedge funds face tax as Iceland poised to end capital controls From Bloomberg.com: Hedge funds and other investors who bought claims against Iceland’s failed banks face a tax that targets the lenders’ estates as the government prepares to unveil its plan for exiting capital controls in t

  4. Opalesque Exclusive: BMO launches multi-strat '40 act fund[more]

    Bailey McCann, Opalesque New York: As we reach new market highs, investors are looking for a way to diversify and protect their portfolios from a potential market correction. Liquid alternatives are rapidly gaining ground as a critical tool for investors to use to mitigate downside risk. The BMO

  5. All hedge fund strategies rebounded last week as market conditions normalize[more]

    Komfie Manalo, Opalesque Asia: After a difficult start this month, all hedge fund strategies ended last week in positive territory, as the Lyxor Hedge Fund Index gained 0.9% (-0.2% MTD, 3.3% YTD). According to Lyxor AM’s latest Weekly Briefing, in t

 

banner