Profile: UBS Group AG (UBS.N)
24 May 2017
UBS Group AG, incorporated on June 10, 2014, is a holding company and conducts its operations through UBS AG and its subsidiaries. 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. Its services include the Group Corporate Services, Group Operations, Group Sourcing, Group Technology), Group Finance, Group Legal, Group Human Resources, Group Risk Control, Group Communications and Branding, Group Regulatory and Governance, and UBS and Society. The Company is a parent company of the UBS Group (UBS).
Group ALM manages the structural risks of its balance sheet, including interest rate risk in the banking book, currency risk and collateral risk, as well as the risks associated with the liquidity and funding portfolios. Group ALM serves all business divisions and other Corporate Center units through three risk management areas, and its risk management is fully integrated into its risk governance framework. Non-core and Legacy Portfolio pursues a primarily passive wind-down strategy, focusing on a disciplined reduction of risk-weighted assets, leverage ratio denominator and costs. Non-core and Legacy Portfolio also includes positions relating to legal matters arising from businesses that were transferred to it.
Wealth Management division provides advice and tailored financial services to wealthy private clients around the world, except those served by Wealth Management Americas. Its offerings include banking and lending solutions, wealth planning, investment management solutions, and corporate finance advice. Its approach focuses on gaining an understanding of its clients' financial objectives that enables it to provide proprietary and third-party solutions tailored to their individual needs. Investment Products and Services unit ensures its solutions are in step with market conditions by aligning its discretionary and advisory offerings with the UBS House View. Clients can invest in a range of financial instruments, from single securities, such as equities and bonds, to various investment funds, structured products and alternative investments. Additionally, it offers its clients advice on structured lending and corporate finance.
The Company competes with BNP Paribas, Citigroup, Credit Suisse, Deutsche Bank, HSBC, JPMorgan Chase, Julius Baer, RBS and UniCredit.
Wealth Management Americas
Wealth Management Americas division is a wealth manager in the Americas in terms of financial advisor productivity and invested assets by financial advisor. It provides advice-based solutions through financial advisors, delivering an integrated set of products and services designed to address the needs of its clients. Its business is primarily domestic the United States but includes Canada and international business booked in the United States. It offers an integrated set of products and services to meet the needs of its high net worth and ultra high net worth client segments, while also serving the needs of affluent clients. It offers clients an array of solutions that focus on meeting their individual financial needs. Its financial advisors work with internal specialists to support evolving goals and expectations throughout the client life cycle, including wealth planning and portfolio strategy and management. Its offering is designed to meet a range of investment objectives, including wealth accumulation and preservation, income generation, portfolio diversification, legacy planning and philanthropy. It offers products and solutions, including equities, fixed income, retirement services, annuities, alternative investments, managed accounts and structured products. To address a range of its clients' financial needs, the Wealth Management Americas division 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. For corporate and institutional clients, it offers a suite of solutions, including equity compensation, administration, investment consulting, defined benefit and contribution pension programs, and cash management services.
The Company competes with Bank of America, Morgan Stanley and Wells Fargo.
Personal & Corporate Banking
Personal & Corporate Banking division provides financial products and services to private, corporate and institutional clients in Switzerland. It works with the Company's wealth management, investment bank and asset management businesses to ensure that its clients receive the products and solutions for their financial needs. In addition, it manages a part of UBS's Swiss infrastructure and banking products platform. In the personal banking business, the Company is focused on being the bank of choice for private clients in Switzerland. In the corporate and institutional business, the Company is focused on being the clients' main bank. Its private clients have access to a life cycle based offering and convenient digital banking, targeting the needs of day-to-day banking, retirement and investment goals, and real estate transactions. Its corporate and institutional clients are offered financing and investment solutions, including access to equity and debt capital markets, syndicated and structured credit, private placements, leasing and traditional financing. Its transaction banking offers solutions for payment and cash management services, trade and export finance, receivable finance, as well as global custody solutions to institutional clients. UBS's platform services focus on credit origination and servicing of brokered mortgages.
The Company competes with Credit Suisse, PostFinance and Raiffeisen.
Asset Management division provides investment management products and services, platform solutions and advisory support to institutions, wholesale intermediaries and wealth management clients around the world. As of December 31, 2016, it had an onshore presence in 22 countries. Its investment capabilities include traditional and alternative asset classes. It offers clients a range of investment products and services in various asset classes, which can be delivered through segregated, pooled or advisory mandates, as well as registered investment funds in various jurisdictions. Its active traditional and alternative capabilities are Equities, Multi Asset, O'Connor, Fixed Income, Global Real Estate, and Infrastructure and Private Equity. Its solutions business offers multi-manager hedge fund solutions and advisory services, and customized multi-asset solutions and advisory services. 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. It offers its products in various structures, including exchange-traded funds (ETFs), pooled funds, structured funds and mandates.
The Company competes with AllianceBernstein Investments, Amundi, BlackRock, Deutsche Bank Asset Management, Goldman Sachs Asset Management, Invesco, JPMorgan Chase Asset Management, Morgan Stanley Investment Management and Schroders.
Investment Bank division provides investment advice, financial solutions and capital markets access. As of December 31, 2016, it had presence in over 35 countries. It serves corporate, institutional and wealth management clients across the globe and forms a synergetic partnership with its wealth management, personal and corporate banking and asset management businesses. The business division is organized into Corporate Client Solutions and Investor Client Services, and also includes UBS Securities Research. In Corporate Client Solutions, the Company advises its clients on strategic business opportunities and helps them raise capital to fund their business activities. Together with Investor Client Services, it offers a full-service solution, which includes the distribution and risk management of capital markets products and financing solutions. Its main business lines include Advisory, Equity Capital Markets, Debt Capital Markets, Financing Solutions and Risk Management. In Investor Client Services, the Company enables its clients to buy and sell securities on capital markets across the globe and to manage their risk and liquidity. Its businesses include Equities; Foreign Exchange, Rates and Credit, and UBS Securities Research.
The Company competes with Bank of America Merrill Lynch, Barclays, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan Chase and Morgan Stanley.
UBS Group AG