[HONG KONG] Wealthy customers of UBS Group are looking to buy more alternative assets as they seek to diversify investments during a volatile period for markets and global trade, according to the firm’s Asia-Pacific chief.
“We see continued demand” for alternatives, Iqbal Khan, the bank’s regional president, said in an interview with Bloomberg TV in Hong Kong at the UBS Asian Investment Conference on Wednesday (May 28).
In the Asia Pacific, UBS is the biggest wealth manager with more than 900 client advisers. It faces rising competition from the likes of HSBC Holdings and regional lenders such as DBS Group Holdings.
“We have definitely seen a significant growth of alternatives and alternatives investments in client portfolios,” he said. “It is still at a lower percentage when you think about an aggregated perspective of wealth portfolios. So there is probably some ways to go in terms of diversification into alts.”
Khan, who relocated to Hong Kong last year and is also co-president for global wealth management, said he expects lower interest rates and continues to see the potential for a stagflation environment. The bank’s markets unit posted a record performance during the first quarter, as geopolitical turmoil spurred volatility and a surge in trading.
“While we will see rates coming down, it is question of timing,” he said.
Khan was tapped for the Asia-Pacific role in 2024 as part of a shakeup that saw investment banking chief Rob Karofsky appointed to run the US business and jointly oversee private banking. The two are key contenders to succeed chief executive officer Sergio Ermotti, who is likely to step down by early 2027.
UBS, which took over embattled rival Credit Suisse in 2023 as part of a rescue, is in a standoff with the Swiss government over how much capital it should hold to deal with future crises.
UBS has cut more than 10,000 jobs and reduced costs since it bought Credit Suisse. The lender said in February it has achieved US$7.5 billion of the US$13 billion in total savings it’s seeking to extract from the acquisition. BLOOMBERG
