UBS is making significant cuts to its China private funds business, with plans to shut down up to 17 equity and bond private funds and lay off one-third of its staff in the country. The Swiss bank’s private fund management unit in China, UBS Asset Management Shanghai, will soon reduce its team of 50 as part of the cost-cutting measures. The move comes amid challenges faced by foreign asset managers in China, including intense competition from local peers, sluggish market returns, and cost pressures.
The decision reflects UBS’s shift in focus towards alternative strategies such as funds of funds and expanding private fund investments into overseas markets. Despite the closures and layoffs, UBS maintains that China remains a key market, emphasizing its strategic investment in the region. However, the scaling back aligns with a broader trend among Western asset managers, including Fidelity International and Legal & General, who have also reduced their local workforce or halted expansion plans in China.