Prominent US asset manager Artisan Partners—a top-20 investor managing over 60 million UBS shares—has published a letter urging the bank to leave Switzerland, citing proposed post-Credit Suisse regulation as “punitive” and detrimental to value.
📌 Core Conflict & Critical Numbers:
- The Regulatory Push: Swiss lawmakers proposed requiring UBS to back its foreign subsidiaries with 90% Common Equity Tier 1 (CET1) capital.
- Impacted Capital: Artisan estimates the rule would force UBS to hold an additional $16 billion in unallocated CET1 capital.
- Estimated Loss: That $16 billion could otherwise yield a 15% return (~$2.4 billion in annual net income). Capitalized at a 15x earnings multiple, Artisan warns the rules risk erasing $36 billion in market value (~23% of UBS’s total market cap).
- Strategic Alternative: Artisan argues Switzerland is no longer a viable home for UBS, urging management to relocate its corporate domicile despite temporary friction and transition costs.
While UBS Chairman Colm Kelleher previously cautioned that overly harsh regulation could jeopardize the bank’s future in Switzerland, Swiss Finance Minister Karin Keller-Sutter considers a headquarters move unlikely.