Wealthy UBS clients are keeping their investments for the time being, but holding back cash as they evaluate triple shocks, CEO Ralph Hamers said at the World Economic Forum in Davos.
UBS CEO Ralph Hamers said on Tuesday that while the bank's wealthy clients are staying invested in the face of multiple global shocks, for the time being, they are not putting more cash into the market.
Speaking in a «Bloomberg TV» interview (behind paywall), Hamers said that «we had to digest three major shocks. The pandemic shock, the war shock, and the energy transition shock,» so the picture is uncertain at the moment.
About wealthy investors, he said «I'm not sure they're worried about what's coming. It's just very unclear as to what is coming.» Nevertheless, in the next three months «there will be much more clarity» as the world comes to grips with the Russian invasion of Ukraine, spiking energy prices, and developments in China, he said.
In such uncertain times is where clients need advice on «how to go about their portfolios,» because when things are unclear, that is when it is time to give advice.
Remote Working
Hamers said that UBS wants to continue to have flexible working arrangements for its employees, and «we're not saying you all have to come back to work» in the office. Still, he said there is merit to being in the office, particularly for coaching, transferring experience, or having planning sessions.
In that regard, UBS is rolling out a hybrid model whereby «we expect some two-thirds of our workforce to always work in a hybrid way,» Hamers said.
Interest Rates
Asked about higher interest rates, Hamers welcomed them indicating that «getting into positive territory is a good thing, and in my view, we can make bigger steps,» since real rates are still negative. From a policy point of view higher rates build a buffer so that there is ammunition when it is needed, he said.
