CANBERRA: UBS Australia is splitting off its wealth management business but advising clients not to be concerned. The management buyout led by current senior UBS Wealth Management employees and headed by the current chief of the Australian wealth unit Mike Chisholm will create a new business to be called Crestone Wealth Management. “There is no immediate impact on your investment management arrangements,” UBS Wealth director Lachlan Downe wrote to clients today.
“The intention is to create a business with the breadth of investment offering of the the current UBS Wealth Management and the benefit of access to independent service providers.”The transaction has the blessing of UBS. “UBS is very supportive of a successful transition for clients and we will be committed to an ongoing positive wealth management relationship with you,” wrote Mr Downe.
UBS Wealth currently has around $20 billion worth of funds under management, with a threshold of $1 million for clients. Crestone will maintain that threshold, continuing to focus on high and very high-net worth individuals as well as family offices.
The launch of Crestone ends a long period of uncertainty for UBS Wealth, which has seen profits falling and staff reductions, as well as falling behind on technology advances. Mr Chisholm says the new firm will be a “market leading” business from the start with a “first class banking service, AAA-rated custody, a world leading operating and reporting platform”.
