Mon, Dec 5, 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. M&A - AllianzGI to acquire Sound Harbor Partners, SS&C completes acquisition of Wells Fargo's Global Fund Services business[more]

    AllianzGI to acquire Sound Harbor Partners Allianz Global Investors (AllianzGI), an active investment manager, announced that Sound Harbor Partners, a US private credit manager led by Michael Zupon and Dean Criares, have agreed to join its fast-growing Private Debt Platform. Under the te

  2. Europe - UK investors to pay more tax on money in offshore funds, Do you want to hand your money to super-algo or a Swiss banker?[more]

    UK investors to pay more tax on money in offshore funds From FT.com: Hedge funds in Dublin and Luxembourg are set to be hit by new rules that will force UK investors to pay more tax on the money they hold in offshore funds. As part of the government’s Autumn Statement on the country’s fi

  3. Hunt for yield pushes more investors into riskier assets[more]

    From FT.com: Pension funds and insurance companies have increasingly embraced riskier assets in their hunt for higher returns over the past five years. Alternative assets such as property, infrastructure, private equity and hedge funds have been bought up by institutional investors in a world where

  4. People - Nectar Financial hires senior investment team, Texas A&M replaces retiring foundation investment chief, Ex-Cadwalader partner Woolery makes another sudden exit, How to become a Python coder at a top hedge fund, by the co-CTO of Man AHL[more]

    Nectar Financial hires senior investment team Nectar Financial AG, a Swiss financial technology company for wealth and asset management, has announced that it has hired two key senior leaders to spearhead its digital asset management efforts. The company also announced that it has entere

  5. Activist News - Cognizant has introductory discussion with activist investor Elliott; to review letter, Starboard Value makes huge investment in Hewlett Packard, Hedge fund calls for removal of First NBC Bank CEO[more]

    Cognizant has introductory discussion with activist investor Elliott; to review letter From Indiatimes.com: Cognizant said it had an introductory discussion with Elliott Management after receiving the activist hedge fund's letter asking for a board shakeup, a buyback, a dividend and chan