UBS AG announced Thursday the integration of its U.S. wealth management business with that of the parent Zurich banking company under the leadership of Marcel Rohner, who had led the wealth management unit based in Switzerland.
Mark Sutton, who headed the U.S. unit, is to become chairman and CEO, Americas, the company said, reporting directly to Peter Wuffli, chief executive officer of the parent company. Raoul Weil, the head of UBS' wealth management business serving international clients, was to join the parent's executive board today.
UBS also said an alternative investment management business, Dillon Read Capital Management, would be started under the leadership of John Costas as its chief executive officer. Mr. Costas gives up his post as CEO of the investment banking unit to Huw Jenkins, the London-based head of the equities business, who joins the executive board immediately. Mr. Costas is to leave the board at yearend.
Dillon Read Capital Management is to be launched about Jan. 1. The hedge fund will be opened up to coinvestment from sophisticated, principally institutional clients, and this is expected to create a stream of investment management fees from what has been purely in-house trading activity.
The integration of UBS' U.S., Swiss, and international wealth management businesses will also bring in its Swiss corporate and retail banking unit under the Global Wealth Management and Business Banking umbrella, with Mr. Rohner as chairman and CEO.
UBS said it expects to benefit from economies of scale in bringing together functions supporting wealth advisers.
