Profile: UBS Group AG (UBS.N)
18 Jan 2017
UBS Group AG (UBS), incorporated on June 10, 2014, is a holding company. The Company provides a range of financial services, including advisory services, underwriting, financing, market-making, asset management and brokerage on a global level, and retail banking in Switzerland. The Company comprises Corporate Center and five business divisions: Wealth Management, Wealth Management Americas, Personal & Corporate Banking, Asset Management and the Investment Bank. Its Corporate Center comprises Services, Group Asset and Liability Management (Group ALM) and Non-core and Legacy Portfolio. Services include the Company's control functions, such as finance, risk control (including compliance) and legal. In addition, it provides all logistics and support services, including operations, information technology, human resources, regulatory relations and strategic initiatives, communications and branding, corporate services, physical security, information security, as well as outsourcing, nearshoring and offshoring. Group ALM is responsible for centrally managing the Company's liquidity and funding position, as well as providing other balance sheet and capital management services to the Company. Non-core and Legacy Portfolio consists of the non-core businesses and legacy positions. The Company provides financial advice and solutions to private, institutional and corporate clients around the world, as well as private clients in Switzerland.
The Company's Wealth Management division provides advice and financial services to wealthy private clients around the world, except those served by Wealth Management Americas. It offers a range of resources, including wealth planning, investment management solutions and corporate finance advice, banking and lending solutions, as well as a range of specific offerings. Its ultra-high net worth clients have access to the infrastructure it offers to its institutional clients. It offers high net worth clients the full range of its investment management capabilities. All clients can invest in the full range of financial instruments, from single securities, such as equities and bonds to various investment funds, structured products and alternative investments. Additionally, it offers clients advice on structured lending and corporate finance. Its Global Financial Intermediaries business provides it with access to markets and clients beyond its own client advisor network. Additionally, the Company acts as a strategic business partner for over 2,000 financial intermediaries in financial centers. It offers professional investment advisory services, a global banking infrastructure and tailored solutions, helping financial intermediaries to advise their end clients.
The Company competes with Credit Suisse, JP Morgan, Deutsche Bank, BNP Paribas, HSBC, Citigroup, Julius Bar, RBS and UniCredit.
Wealth Management Americas
The Company's Wealth Management Americas division develops advice-based relationships through its financial advisors. Its business includes the domestic United States and Canadian wealth management business, as well as international business booked in the United States. The Company provides an integrated set of products and services to meet the needs of its target client segments, such as high net worth clients and ultra-high net worth clients, while also serving the needs of core affluent clients. Its wealth management offering is complemented by banking, mortgage and financing solutions that enable it to provide advice on both the asset and liability sides of its clients' balance sheets.
In the United States and Puerto Rico, the Company operates through its subsidiaries. Securities and operations activities are conducted through registered broker-dealers, UBS Financial Services Inc. and UBS Financial Services Incorporated of Puerto Rico. The Company's banking services in the United States include those conducted through the UBS AG branches and UBS Bank USA, a federally regulated bank in Utah, which provides Federal Deposit Insurance Corporation (FDIC)-insured deposit accounts, collateralized lending services, mortgages and credit cards. Canadian wealth management and banking operations are conducted through UBS Bank (Canada), and Uruguayan wealth management operations are conducted through UBS Financial Services Montevideo.
The Company offers clients a range of solutions that focus on their individual financial needs. Its offerings meet a range of investment objectives, including wealth accumulation and preservation, income generation and portfolio diversification. The Company also offers lending and cash management services, such as securities-backed lending, resource management accounts, Federal Deposit Insurance Corporation (FDIC)-insured deposits, mortgages and credit cards. Its UBS Equity Plan Advisory Services is a provider of equity compensation plan services and advice to over 150 United States corporations. For corporate and institutional clients, it offers a suite of solutions, including equity compensation, administration, investment consulting, defined benefit and contribution programs, and cash management services. It also offers mutual fund advisory programs. For clients who favor individual securities, it offers a range of equity and fixed income instruments.
The Company competes with Bank of America, Morgan Stanley and Wells Fargo.
Personal & Corporate Banking
The Company's Personal & Corporate Banking division provides financial products and services to private, corporate and institutional clients in Switzerland. Its private clients have access to a life-cycle-based offering, comprising products, including cash accounts, payments, savings and retirement solutions, investment fund products, residential mortgages, a loyalty program and advisory services. It provides financing and investment solutions to its corporate and institutional clients, offering access to equity and debt capital markets, syndicated and structured credit, private placements, leasing and traditional financing. Its banking offers solutions for payment and cash management services, trade and export finance, receivable finance, as well as global custody solutions to institutional clients. It offers capital market products, foreign exchange products, hedging strategies and trading capabilities, as well as provides corporate finance advice through the Investment Bank and fund solutions and portfolio management through Asset Management.
The Company competes with Raiffeisen, Credit Suisse and PostFinance.
The Company's Asset Management division is an asset manager offering investment capabilities and investment styles across all traditional and alternative asset classes to institutions, wholesale intermediaries and wealth management clients around the world. It provides investment management products and services to a range of clients around the world, including corporate and public pension plans; sovereign institutions, such as governments and central banks; supranationals; endowments, municipalities and charities; insurance companies; wholesale intermediaries; financial institutions, and private clients. Its global investment capabilities include equities, fixed income, currency, hedge funds, real estate, infrastructure and private equity, which can also be combined into customized solutions and multi-asset strategies. Its fund services business provides administration services for traditional UBS and third-party funds.
The Company offers a range of investment products and services in different asset class capabilities, which can be delivered through segregated, pooled or advisory mandates, as well as registered investment funds in a range of jurisdictions. Its traditional and alternative capabilities are Equities, which includes investment strategies with varying risk and return objectives, including global, region-focused and thematic strategies, as well as high alpha, growth and quantitative styles; Multi-Asset, which includes global and regional asset allocation and currency investment strategies across the risk/return spectrum; O'Connor, which includes a global, relative value-focused, single-manager hedge fund platform providing investors with absolute and risk-adjusted returns; Fixed Income, which includes global, regional and local market-based single-sector, multi-sector and extended sector strategies, such as high yield and emerging market debt; Global Real Estate, which includes global and regional strategies across the real estate sectors, mainly focused on core and value-added strategies and also include other strategies across the risk/return spectrum, and Infrastructure and Private Equity, which includes direct infrastructure investment in core infrastructure assets globally and multi-manager infrastructure and private equity strategies in diversified fund of funds' portfolios.
The Company's Solutions business offers multi-manager hedge fund solutions and advisory services, providing exposure to hedge fund investments with tailored risk and return profiles, and customized multi-asset solutions and advisory services, including risk-managed and structured strategies, manager selection, pension risk management, risk advisory and global tactical asset allocation. Its passive capabilities include indexed, alternative beta and rules-based strategies across equities, fixed income, commodities, real estate and alternatives with benchmarks ranging from mainstream to highly customized indices and rules-driven solutions. Products are offered in a range of structures, including exchange-traded funds (ETFs), pooled funds, structured funds and mandates.
The Company competes with BlackRock, JP Morgan Asset Management, BNP Paribas Investment Partners, Amundi, Goldman Sachs Asset Management, AllianceBernstein Investments, Schroders and Morgan Stanley Investment Management.
The Company's Investment Bank division provides corporate, institutional and wealth management clients with advice, solutions, execution and access to international capital markets. The Investment Bank division consists of approximately two business units: Corporate Client Solutions and Investor Client Services. Corporate Client Solutions includes advisory and financing solutions businesses, origination, structuring and execution, including equity and debt capital markets in service of corporate, financial institution, sponsor clients and the Company's wealth management businesses. Investor Client Services includes execution, distribution and trading for institutional investors and provides support to Corporate Client Solutions and its wealth management businesses. It comprises its equities businesses, including cash, derivatives and financing services, cross-asset class research solutions, and its foreign exchange franchise, precious metals, rates and credit businesses. The Investor Client Services unit also provides distribution and risk management solutions required to support all of its businesses.
Corporate Client Solutions work with investor client services in the distribution and risk management of capital markets products and financing solutions. The Company's business lines are advisory, which includes domestic and cross-border mergers and acquisitions advice and execution, as well as refinancing, spin-offs, exchange offers, leveraged buyouts, joint ventures, takeover defense, corporate broking and other advisory services; equity capital markets, which includes managing initial public offerings, follow-ons, including rights issues and block trades, as well as equity-linked transactions and other strategic equities solutions; debt capital markets, which includes helping corporate and financial institution clients in raising debt capital, including investment-grade and market bonds, high-yield bonds, subordinated debt and hybrid capital and provides capital services, which include acquisition, leveraged buy-out loans, bonds and mezzanine financing; financing solutions, which serves corporate and investor clients across the globe by providing customized solutions across asset classes through a range of financing services, including structured financing, real estate finance and situations, and risk management, which includes corporate lending and associated hedging activities.
Investor Client Services includes equities business and foreign exchange, rates and credit business. Its equities business provides financing, execution, clearing and custody services. It distributes, structures, executes, finances and clears cash equity and equity derivative products. Its main business lines of the equities unit are Cash, which provides clients with liquidity, investment advisory, trade execution and consultancy services, together with access to primary and secondary markets, corporate management and subject matter experts; Derivatives, which provides a range of flow and structured products, convertible bonds and strategic equity solutions with global access to primary and secondary markets, and Financing services, which provides a fully integrated platform for its hedge fund clients, including prime brokerage, capital introduction, clearing and custody, synthetic financing and securities lending. In addition, it executes and clears exchange-traded equity derivatives in over 40 markets around the global.
Its foreign exchange, rates and credit business consists of foreign exchange franchise, as well as select rates and credit businesses. These businesses support the execution, distribution and risk management related to corporate and institutional client businesses. Its main business lines are foreign exchange, which provides a range of G10 and emerging markets currency and precious metals services around the global; rates and credit, which encompasses sales, trading and market-making in a selected number of rates and credit products, including standardized rates-driven products, interest rate swaps, medium-term notes, government and corporate bonds, bank notes, credit derivatives and the execution and clearing of exchange-traded fixed income and commodities derivatives. In addition, it works with Corporate Client Solutions, providing support to its debt capital markets businesses and tailoring customized financing solutions for its clients.
The Company competes with Bank of America Merrill Lynch, Barclays, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, JP Morgan Chase and Morgan Stanley.
UBS Group AG
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