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UBS wealth management profit reaches record in Q2


July 20, 2021 11:17 AM
Annual revenue per advisor soared by 29% to $1.7 million. Within the significant influx in new advisory assets, the unit generated $8.3 billion in flows to the firm’s separately managed accounts under an expansion since
last year of the fund families offered to UBS clients without management fees. The unit’s total invested assets surged 26% year-over-year to $1.7 trillion.
The unit lent $5.3 billion in new loans and topped $83 billion in loans, compared to $1.3 billion in new lending out of $64 billion in total loans at the same time last year. Most of the new loans in the second quarter were asset-backed Lombard loans, in which clients pledge securities or insurance policies as collateral. The wirehouse didn’t disclose its advisory assets in the second quarter of 2020, but fee-generating assets went up 7% from the first quarter to $845 billion. Equity value accumulation of $38 billion drove much of the increase in assets under management. ....

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