Wealth Management

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March 19, 2015

For those with $2M to Invest

For those who are wondering why you need a Swiss bank to manage your wealth - here is an useful excerpt from Financial Review:
UBS manages more than $1.6 trillion of private client money globally. Advisers at the private bank also give strategic financial advice on structuring investments, philanthropy and establishing family trusts and self-managed superannuation funds.


Each month, a global team of more than 900 analysts, asset managers and investment bankers, led by UBS global chief investment officer Alex Friedman, work together to review the world environment, assess the short and mid-term outlook and make high-level calls on what asset classes, and in what proportion, clients should be advised to invest.
Part of the review process is devoted to bouncing ideas off the chief investment officers of major global fund managers, such as BlackRock, Pimco and Aberdeen Asset Management. Those businesses are key partners of UBS and their views and experience lend a different perspective that helps with decision-making. “Our view is that asset allocation decisions are critical for the long-term performance of your portfolio," Chisholm says.
“First we have a robust investment process, to define broad asset allocation, and then we modify it for local conditions in each country. For each asset class we recommend investments or securities for the client."
Investment suggestions are based on research by analysts based around the world, as well as in Australia. Chisholm says local knowledge on a wide variety of global markets is a key part of the bank’s offer. Having an internal team that conducts all the research means advisers are confident they can vouch for its quality, he adds.
Research covers international stocks, bonds, foreign exchange and other asset classes. “We can offer our clients deposits or loans in up to 16 currencies around the world," Chisholm says.
“That’s a huge advantage in this environment, where you may want to invest internationally in certain securities or markets but if you can’t manage your foreign exchange position at the same time you may be exposed to risks you don’t want."
Clients are sometimes invited to speak directly to the research experts or participate in global and regional forums. The private bank offers its clients access to one-off investments, such as pre-initial public offerings and whole commercial properties sourced from the investment bank and other wealthy clients who wish to sell.
In Australia, UBS can help some investors buy debt securities, such as corporate bonds, in parcels of $100,000, which Chisholm says few other local wealth managers can offer.


The service is upmarket and won’t appeal to everyone. It targets people who have more than $1 million to invest. Generally, below that level, investors are more likely to be interested in domestic equities and cash.