In an update today, the Asset Management Association of Switzerland reported a slight decline in the market share held by UBS and Credit Suisse in the Swiss funds industry last year. This trend is anticipated to continue as the two banks merged into a single entity last year following UBS’s rescue of Credit Suisse, further consolidating their operations.
UBS Lost Market Share in the Swiss Fund Management Industry
In 2023, the merged entity’s market share dropped to 37.6%, a decrease from 39.3% in the previous year. Adrian Schatzmann, the head of the association, forecasts a further reduction in their market share as UBS integrates and streamlines Credit Suisse’s fund offerings. He also noted that some investors seek to diversify their holdings to reduce dependence on a single financial institution.
As per the association’s observations, other beneficiaries of this shift in the market include Swisscanto, BlackRock, Pictet, and Swiss Life.
The Swiss fund market experienced a 3.7% increase in volume, reaching 1.37 trillion Swiss francs (equivalent to $1.59 trillion) in 2023. This growth is largely attributed to the positive performance of financial markets.
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In a broader perspective, the Swiss asset management market saw its assets under management grow by about 5%, totalling 3.02 trillion in 2023.
In the European asset management landscape context, Switzerland has emerged as the third most significant hub, trailing only behind Britain and France, as indicated in a European Fund and Asset Management Association report. Germany ranks after Switzerland in this regard.
