UBS Group (UBS) to Divest Quantitative Investment Strategies Unit

Group 1: UBS Asset Management Divestiture - UBS Asset Management has agreed to divest its Quantitative Investment Strategies (QIS) business to Manteio Partners LLC, with the transaction expected to close in Q4 2024, pending regulatory and shareholder approvals [1] - The QIS team currently manages approximately $1.5 billion in assets, which will be transferred to Manteio Partners, allowing Manteio to operate as an independent unit [1] Group 2: Financial Performance and Restructuring - In Q2 2024, UBS's asset management segment reported an operating profit before tax of $130 million, a 64.6% increase year over year, primarily due to the consolidation of Credit Suisse revenues [1] - UBS is streamlining operations post-Credit Suisse acquisition, aiming to wind down its Non-Core and Legacy portfolio, releasing over $6 billion of capital by the end of 2026, and targeting gross cost reductions of around $13 billion by 2026 compared to 2022 levels [2] - UBS achieved gross cost savings of $0.9 billion in Q2 2024, totaling a yearly exit rate gross cost savings of $6 billion compared to the combined cost base of Credit Suisse and UBS in 2022 [2] Group 3: Real Estate Fund Liquidation - UBS announced the liquidation of a flagship real estate fund acquired from Credit Suisse due to investor withdrawals from commercial real estate markets, with the fund primarily consisting of office assets [3] - The decision to close the fund was made to avoid selling assets at an unfavorable time, which would negatively impact current investors [3] Group 4: Wealth Management Realignment - UBS is realigning its wealth management business to enhance offerings for ultra-rich clients, establishing a new division named GWM Solutions to consolidate various products starting July 1 [4] - This initiative aims to strengthen UBS's financial position while focusing on core activities [4] Group 5: Market Performance - Over the past six months, UBS Group shares have returned 9.3% on the NYSE, compared to the industry's growth of 12.2% [4]