After the failed takeover of online wealth manager Wealthfront, UBS is turning its focus to the US' southern states. However, the ESG-friendly bank might not be greeted with open arms everywhere.
UBS is reshuffling its leadership in the US wealth management business, it said in a memo Thursday seen by «Reuters» (paywall). This comes after the bank backtracked on its US digitization push after the planned takeover of robo-advisor Wealthfront came to nothing earlier this year.
Southern Draw
With Florida and Texas increasingly attracting wealthy families, the Swiss bank is now turning its focus to Southern states, which are critical to the division's growth, «Reuters» wrote, citing the memo.
UBS is also realigning the bank's structure to reflect its new focus, by reducing the number of US markets to 20 from 34. Furthermore, it is appointing John Mathews and Jennifer Povlitz, to head 10 US markets each beginning early next year.
ESG Related Boycott
In August the Swiss bank, along with the world's largest asset manager Blackrock and eight other financial firms, found itself on a boycott list in US Texas for its ESG-linked investment policies.
In Texas, a law has been in effect since September 1 that prohibits state agencies from entering into contracts with companies that have restricted their relationships with energy companies that emit CO2. UBS, which wanted to issue a new bond for a Texas municipality, is also affected.
