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America First

That’s why Swiss bankers are famously door-knocking at the offices of lawyers and fiduciaries – an activity that hasn’t become any more attractive over time. With strong U.S. stock markets and regulatory hurdles to take, few Americans see a need to move their assets to Switzerland. «America first» seems not just the slogan coined by the president, but one that describes where wealthy Americans prefer to keep their money.

So, if inflows and outflows roughly apace, what remains is cut-throat competition. The only way to grow is to poach relationship managers with their books. Still, with client retention ever more stringent and net new money down to trickle, it’s more about crowding out than a fight where there’s plenty for everyone.

Big Stride

This holds for niche players such as Swisspartners, Bellecapital and LFA. Also for private banks such as Pictet and Vontobel, which made a big stride in taking over the Lombard Odier business. Remains UBS Swiss Financial Advisers (UBS-SFA), which has about 5 billion francs in assets from U.S. clients.

The UBS team has been reinvigorated by the merger between the American and global private banking into Global Wealth Management. The move may ease their access to U.S. clients and «Reuters» reported recently that UBS-SFA is set to get licenses for further products.

Attractive Target

CEO Ermotti meanwhile aims to attack the business with U.S. expats in Asia and Europe. Some 7 million high-income U.S. citizens roam the world – an attractive target for Ermotti’s wealth management.

Insiders however have warned that UBS bankers based in the U.S. rarely volunteered to share the spoils with their Swiss clients. This approach may be in for some softening up as the global unit takes charge.

Deal With the Paperwork

But the question about who is to deal with the paperwork – an expat needs a tax declaration for both the U.S. as well as his current place of stay. Dealing with the administration while not being able to earn money on the assets of the clients – that won’t go down well with the Americans within UBS Global Wealth.

So, growth and crowding out may yet again be closely interlinked in the offshore business with U.S. citizens.