What Is UBS? What Does UBS Stand For? Find out All You Need to Know!

Intro – What Is UBS? What Does UBS Stand For?

Searching for a company that assists with wealth management can be a time-consuming process. In an attempt to help make the search easier, we, at AdvisoryHQ, are going to break down one of the top financial services agencies worldwide.

We will take a look at UBS financial services reviews and UBS wealth management reviews to help you determine if its services may be a good fit for you.

First, let’s take a look at the history of the company and answer the following questions: Who is UBS? What does UBS stand for? What do you need to know about UBS and its history?

What Is UBS?

While many people who are looking into wealth management services or searching for other financial services have heard of UBS, few people know its meaning or its history.

First, what does UBS stand for?

UBS stands for the United Bank of Switzerland, and it currently maintains its headquarters in Zurich. A large percentage of its offices and staff are still located in Switzerland, though it has expanded since its creation to become a globally recognized name in the wealth management industry.

People trust UBS due to its long-running history, tracing its roots back to 1856 when its very first bank was established. Since that time, UBS has accumulated 150 years of experience in global banking and providing financial services. The United Bank of Switzerland is present in 54 countries, with approximately 34% of its employees located in the Americas, making up its Wealth Management Americas division. A staff of equal size is located in its home country, Switzerland, and the rest is scattered throughout Europe, the Middle East, Africa, and Asia Pacific.

Back in 1998, the Union Bank of Switzerland merged with the Swiss Bank Corporation – becoming the United Bank of Switzerland – to become better positioned to strengthen its private banking, asset management, and investment banking worldwide. The plethora of experience between the two companies in Switzerland would allow them to expand these services globally and come to the forefront of wealth management.

As you learn about UBS, you may also come across the term “UBS AG.” You might be wondering, “What does UBS AG stand for?” UBS AG is the holding company of the UBS group. UBS stands for the United Bank of Switzerland, as it always has, but the AG refers to the German word “Aktiengesellschaft.” Aktiengesellschaft indicates that UBS is a corporation owned by its shareholders and can be sold on the public stock exchange.

Who Does UBS Serve?

The United Bank of Switzerland services both private wealthy individuals and corporations. For individuals, it provides a full service brokerage firm for those with high-net or ultra high-net-worth. Its business model is centered on five major business divisions:

Personal banking
Wealth management
Corporate or institutional banking
Investment services
Asset management

It can provide simple services, such as savings accounts, credit cards, and risk management for investments for the high-net-worth individual. However, it can also provide many more complex business-related financial resources for completing mergers and acquisitions. It specializes in pairing high-net-worth investors with personal financial advisors to offer advice about which ventures might best suit their needs.

In learning about UBS, it’s also necessary to take a look at its Wealth Management Americas division.

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About UBS Wealth Management Americas

Image Source: UBS Wealth Management Americas, New York office

UBS Wealth Management reviews wouldn’t be complete without addressing its American division. UBS stands for the United Bank of Switzerland, but it is also one of the leading wealth managers in the Americas. This service encompasses its domestic wealth management businesses for the United States and Canada as well as international businesses booked in the United States. It still caters to high-net and ultra high-net-worth individuals.

Its stateside business model is centered on the relationship between clients and financial advisors. Advisors are trained to listen to the needs of individuals and then offer advice to help them reach their financial goals.

What Are UBS’s Financial Services?

Now that we’ve answered some of the more common questions, like “What does UBS stand for?” and “What is UBS?” it’s time to take a more in-depth look at the services it offers. What are UBS’s financial services? What can they really do for you?

UBS offers a wide array of wealth management services, from planning ahead for retirement, college education, and estate planning to maximizing your investments through traditional and non-traditional avenues as well as insurance and annuities. According to the UBS factsheet, it had 6.2 billion dollars in net profit attributable to shareholders.

What Is UBS’s Financial Services Strategy?

Part of UBS’s strategy for wealth management is to deliver on shareholder returns. In 2014, it boasted a dividend of CHF (the Swiss currency) 0.50 per share and a supplementary dividend of CHF 0.25 per share. According to its strategy website, it is “targeting a payout ratio of at least 50% of net profit attributable to UBS shareholders.”

Image Source: BigStock

The Swiss banking system is one of the most stringent banking systems worldwide, in terms of capital rules. One of the primary strategies that UBS employs is its capital position. Over the last few years, it has decreased its risk-weighted assets and reduced the size of its balance sheet. In order to be more successful, UBS financial services has changed its legal structure, business model, and risk profile.

What Do Others Say About UBS?

In 2015, United Bank of Switzerland was named Euromoney’s Best Global Wealth Manager, a very prestigious honor that demonstrated its commitment to successful wealth management for its clients. Other UBS reviews and awards have named it as the best global bank as well as the best investment bank for financial institutions and real estate and the best equity bank at the Global Finance World’s Best Investment Bank Awards of 2016.

The list of awards it has won for 2016 is fairly extensive. At the Global Finance World’s Best Investment Banks Awards for Global Finance magazine, it was considered the best equity bank of Western Europe, the best bank for IPOs, the best investment bank in Western Europe and Switzerland, and the best bank for equity and equity-linked debt.

In 2015, it also won several prestigious awards according to UBS financial services reviews in Global Finance magazine, including most creative investment bank, best equity bank in Western Europe, and best investment bank in the infrastructure sector. UBS wealth management reviews indicate that it has a long history of success, especially in recent years. It has figured out how to leverage its strengths to help further the individual investment goals of its clients.

UBS Financial Services Reviews

What do others have to say about the services provided by UBS? We will take a look at UBS financial services reviews and UBS wealth management reviews to determine if UBS is a good fit for your personal investments.

According to Brokerage Review, the United Bank of Switzerland’s stock and mutual fund investments are on the pricey side compared to the industry average.

For those individuals who have a net worth high enough to warrant a personal financial advisory (accounts of $250,000 or more), it also notes that UBS seems to emphasize a “very conservative investment portfolio, a very conservative trading style, and a goal of long-term wealth building.” For those who don’t wish to make risky investments in uncertain stock, the more conservative investments offered by UBS may be worth the pricier upfront investment into its mutual funds and stock.

According to other UBS wealth management reviews from Bloomberg, UBS is now taking additional time to educate its financial advisors on UBS advice. This increases the number of positive UBS reviews because it promotes consistency in the investments that advisors recommend.

Well-educated advisors, who are now required to have a diploma course in markets and portfolio management, have been key to making sure recommendations are better understood. Previously, advisors had only been required to complete an in-house training course instead of a diploma course approved by Switzerland’s State Secretariat for Economic Affairs on markets and portfolio management. According to Markus Tanner, the man in charge of managing the training for advisors at UBS, it is the first and only bank to get this approval for its course.

Is UBS Right for You?

There are a lot of factors to weigh when considering whether or not the United Bank of Switzerland would be a good match for your personal investment goals. Based on the UBS reviews, it might be a good match if:

You are a high-net-worth or ultra high-net-worth individual
You want a personal relationship with a well-educated financial advisor
You prefer a more conservative investment strategy, with the end goal being long-term wealth building
You are located in the Americas and can take advantage of its Wealth Management Americas division or you are located in one of the other countries where offices are located
You don’t mind the higher prices for stock and mutual fund investments
You are looking for a financial firm with a long history of success (as proven by UBS wealth management reviews and past performance)

We have reviewed the answers to basic questions, like “What does UBS AG stand for?” and “What are UBS’s financial services?” Now, you are armed with the knowledge of the services it provides as well as a detailed UBS financial services review. Is UBS a good fit for your personal financial and wealth management? The checklist above may help you to make a decision that will lead you to wisely invest your dollars in the way you are most comfortable with.

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