UBS Staffs Up, But AUM Shrinks Anyway; Still Not For Sale

Wednesday, July 27, 2011 06:26
edit
UBS Staffs Up, But AUM Shrinks Anyway; Still Not For Sale

 

UBS found itself in the awkward position of recruiting more advisors in the United States last quarter but watching its overall client accounts shrink anyway.

This Website Is For Financial Professionals Only


 

According to the Swiss bank's latest quarterly numbers, UBS brought in a net 51 advisors between April and June, putting it up 1.5% over last year.

 

They say attrition is near record lows and experienced advisors keep signing up.

 

But that recruiting effort represented the main source of new client flows during the quarter, UBS says.

 

Otherwise, clients seem to have gone elsewhere. The unit's overall AUM -- reported in Swiss francs -- dropped 6.3% quarter to quarter, or 7.3% when converted back into dollar terms.

 

Significantly, on a per-advisor basis, the shrinkage resulted in a 11% decline in invested AUM per advisor over the quarter, with the average UBS rep now responsible for $14 million less than he or she was running back in March.

 

Total advisor compensation dipped 6.7% over the quarter and 13% on a year-over-year basis. 

 

And yes, the CEO had to repeat again that despite rumors the unit is not for sale.

Comments (0)

Write comment

You must be logged in to post a comment. Please register if you do not have an account yet.

busy