UBS Global Asset Management Chronicles the Evolution of the Asset Manager
NEW YORK -- October 24, 2012
TODAY, UBS GLOBAL ASSET MANAGEMENT formally released it newest white paper,
Evolution of the Asset Manager, which looks at the evolution of the asset
manager over time and the changes the asset management industry has seen in
response to economic, demographic and industry-specific pressures. UBS Global
Asset Management outlines the changing face of asset management; both by
dissecting driving factors from the 1990s, highlighting current and potential
forthcoming trends and by analyzing the impact of evolutionary pressures.
Authored by Curt Custard, Head of Global Investment Solutions, and Matthew
Richards, Strategist, Global Investment Solutions, the piece identifies key
trends that aim to help asset managers help their clients set realistic goals
and work smarter, in a more innovative capacity, to meet them. Examining how
investors are currently driving into bonds similar to the earlier shift into
equities unearths behavioural tendencies in a similar fashion to the continued
tendency for investors to look to previous year’s performance as an indicator
of the future.
However, key differentiating factors outlined in the paper indicate that over
time many changes have developed within asset management as it relates to
investment content, product categorization, investment teams, client base and
distribution teams. Historically product categorization was organized largely
by asset class and management style, but through time it has grown more
popular to categorize largely by risk return profile, outcome and factor
exposure. Similarly, investment content has also developed; finance has gone
from being seen as “science” to being seen as adaptive and incorporates
behavioral finance. Sample takeaways from the new report include:
*Emphasis is moving away from performance relative to benchmarks and toward
investor outcomes such as income generation and avoiding large drawdowns
(i.e. peak-to-trough losses.)
*The secular bull run in bonds is approaching its natural limit as
government bond yields in the US, Japan, Germany and the UK move closer to
*The assumptions behind the Capital Asset Pricing Model (CAPM) and Modern
Portfolio Theory (MPT), two academic models that have been widely used in
the investment industry, look increasingly unrealistic.
*The focus is also shifting from specific asset classes to holistic
solutions to meet investors’ needs.
*Investors based in emerging markets make up a growing proportion of the
industry’s client base and have different characteristics to those based
in developed markets.
To read Evolution of the Asset Manager
UBS Global Asset Management has a 30-year track record in multi-asset funds
and is one of the oldest in the investment industry. The Global Investment
Solutions team boasts a diverse range of investment and risk management
specialists based in seven different time zones to provide local expertise to
clients around the world.
UBS Global Asset Management is a large-scale asset manager with
well-diversified businesses across regions, capabilities and distribution
channels. It offers investment capabilities and investment styles across all
major traditional and alternative asset classes. These include equity, fixed
income, currency, hedge fund, real estate, infrastructure and private equity
investment capabilities that can also be combined into multi-asset strategies.
The Fund Services unit provides professional services including legal fund
set-up, accounting and reporting for traditional investment funds and
Invested assets worldwide totalled some CHF 569 billion (EUR 473 billion, GBP
382 billion, USD 599 billion) at 30 June 2012. The firm is a leading fund
house in Europe, the largest mutual fund manager in Switzerland and one of the
largest fund of hedge funds and real estate investment managers in the world.
With around 3,700 employees, located in 25 countries, we are a truly global
firm. Our principal offices are in London, Chicago, Frankfurt, Hartford, Hong
Kong, New York, Paris, Singapore, Sydney, Tokyo and Zurich.
Notes to Editors
UBS draws on its 150-year heritage to serve private, institutional and
corporate clients worldwide, as well as retail clients in Switzerland. Its
business strategy is centered on its pre-eminent global wealth management
businesses and its universal bank in Switzerland. Together with a
client-focused Investment Bank and a strong, well-diversified Global Asset
Management business, UBS will drive further growth and expand its premier
wealth management franchise. UBS is present in all major financial centers
worldwide. It has offices in 57 countries, with about 35% of its employees
working in the Americas, 36% in Switzerland, 17% in the rest of Europe, the
Middle East and Africa and 12% in Asia Pacific. UBS employs about 65,000
people around the world. Its shares are listed on the SIX Swiss Exchange and
the New York Stock Exchange (NYSE).
New York: Megan Stinson, 212-713-1302
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UBS Media Relations:
Switzerland: +41-44-234 85 00
UK: +44-207-567 47 14
APAC: +852-297-1 82 00
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