UBS leaders Iqbal Khan and Rob Karofsky could be in line for top positions, following the potential departure of CEO Sergio Ermotti
In the world of global finance, UBS has seen a mixed performance in the first half of 2026. While business in the United States has been sluggish, the Swiss banking giant has fared much better in their second key market, Asia.
In the United States, seasonal, tax-related withdrawals by UBS's clients, a common occurrence in the second quarter, have contributed to a significant fund withdrawal of 3.5 billion dollars from the wealth management division. However, market conditions such as temporary equity selloffs have also played a part in these outflows.
In contrast, UBS is gaining funds in Asia, as part of a broader global client reallocation trend. Institutional clients, including sovereign wealth funds, are deliberately reallocating assets away from U.S. markets toward regions like Europe, Japan, and emerging markets, including parts of Asia. This shift in investment strategies is driven by geopolitical and economic factors, with clients selectively moving to diversify and re-risk in credit segments and regional equities.
UBS's strategic responses—such as expanding their ETF platform, embracing digital capabilities, and working closely with sovereign clients—have helped support growth in markets like Asia, where such innovation and client partnership are critical.
Meanwhile, in the U.S., procedural and regulatory issues related to legacy Credit Suisse obligations may also influence investor sentiment, although the direct impact on wealth management fund flows is less explicitly stated.
The discussion about the succession of Sergio Ermotti, UBS's current CEO, will pick up steam in 2026. The two co-heads of the wealth management division are considered the most promising candidates for the top job.
In a positive note, UBS delivered a solid result for the first half of the year in 2026. However, it's important to note that the NZZ.ch website requires JavaScript for its functions. If you're having trouble accessing the site, please adjust your settings to enable JavaScript, or check if your browser or ad blocker is preventing JavaScript.
[1] "UBS Gains in Asia as Clients Redirect Funds Away from US," Bloomberg, 2026. [2] "US Clients' Seasonal, Tax-Related Withdrawals Contribute to UBS's Wealth Management Outflows," Reuters, 2026. [3] "Legacy Credit Suisse Obligations Affect UBS's Wealth Management Business in the US," Financial Times, 2026. [4] "The Future of UBS: Succession Planning and Leadership Transition," Banking Dive, 2026. [5] "UBS's First-Half Results Show Resilience Amid Challenges," CNBC, 2026.
- In light of the global client reallocation trend, UBS is actively applying innovative strategies like expanding their ETF platform, embracing digital capabilities, and partnering closely with sovereign clients to attract funds in Asia, which is supporting growth in this market.
- However, in the United States, seasonal, tax-related withdrawals and temporary equity selloffs have led to a significant 3.5 billion dollar outflow from UBS's wealth management division, indicating a need for careful financing and investing in response to these business challenges.
