But recent weak performance in some of UBS AM’s strategies might leave parts of the division more vulnerable to a sale, banking analysts said. In 2007, institutional asset outflows totalled 16.3 billion Swiss francs, partly because of weak performance across a range of strategies, including certain core/value equity, fixed-income and multiasset strategies, according to the company’s annual report. About 60 per cent of UBS GAM’s assets under management are institutional.

UBS’ Fraser said: “We’re clearly paying the price for some underperformance, and I stress it’s only in certain strategies within equities and fixed income.” A management overhaul that began in 2006 addressed the performance issues as well as “regenerated the leadership group” to help diversify investment capabilities, Fraser added.

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