As global wealth management becomes more complex, external asset managers (EAMs) are operating under increasing pressure to deliver performance, manage costs, and differentiate their propositions.
For Frederic Toselli, Global Head of EAM at Union Bancaire Privée (UBP), the bank’s strategy centres on combining institutional-grade stability with a broadening suite of advisory and execution capabilities, positioning itself as a long-term partner to EAMs navigating a rapidly evolving landscape.
Founded in 1969 and still owned by the de Picciotto family across multiple generations, UBP has built a global private banking franchise with CHF 185 billion in assets under management, supported by a network spanning more than 30 locations and 12 booking centres. Within this structure, the EAM division represents a significant and growing business line, working with more than 200 counterparties globally and overseeing approximately CHF 23 billion in assets.
A Balance sheet-led value proposition
UBP’s positioning begins with institutional strength. The bank maintains a Tier 1 ratio of 23.1% and has held a stable Aa2 rating from Moody’s since 2018, reinforcing its emphasis on disciplined risk management and balance sheet resilience.
Toselli highlights that this financial solidity forms the foundation of the bank’s EAM offering. “The first cornerstone is clearly the strength of the balance sheet and the way the bank is managed from a risk perspective,” he explains. “That stability is something EAMs value highly when selecting long-term partners.”
“That stability is something EAMs value highly when selecting long-term partners.”
Beyond financial strength, UBP’s long-standing presence in the EAM space provides a depth of market insight that is increasingly critical. “We work with a wide range of counterparties across different regions,” he notes. “That gives us a clear view of both client expectations and the operational realities EAMs are facing.”
Moving beyond custody to value-added partnerships
While custody remains a core service, UBP is actively expanding its offering to provide greater value across the advisory spectrum. The bank’s investment capabilities, particularly in alternatives and fixed income, are a key differentiator.
“We are well recognised for our expertise in hedge funds and in high-yield fixed income,” Toselli says. “These are areas where we can actively support EAMs, providing both insights and access to investment opportunities that they can leverage for their clients.”
This shift reflects a broader industry trend, where EAMs increasingly seek partners that can complement their capabilities rather than simply provide infrastructure.
The bank also offers discretionary portfolio management (DPM) services, including bespoke mandates for portfolios above USD 3 million. These solutions are structured to integrate seamlessly with EAM client relationships, provided governance and documentation requirements are met.
Multi-booking as a structural advantage
One of UBP’s distinguishing features is its global booking architecture. With 12 booking centres, the bank offers EAMs the ability to manage client assets across multiple jurisdictions within a single institutional framework.
“The multi-booking capability is a real strength of our model,” Toselli explains. “EAMs can work with one bank while accessing multiple jurisdictions, with consistent service standards and a unified offering.”
“EAMs can work with one bank while accessing multiple jurisdictions, with consistent service standards and a unified offering.”
This approach simplifies operational complexity for EAMs managing internationally diversified client bases. Rather than maintaining multiple custodial relationships across jurisdictions, they can consolidate activity within a single platform.
“We see strong adoption of this model,” he adds. “It provides both efficiency and flexibility, which are increasingly important as regulatory requirements become more demanding.”
Asia and the Middle East: structural growth markets
UBP views Asia and the Middle East as key long-term growth regions for the EAM segment.
“Asia is clearly a market with strong structural growth,” Toselli says. “There is increasing demand from both private clients and multi-family offices, and the EAM model is becoming more established.”
He notes that EAMs in Asia are facing similar pressures to their European counterparts, including heightened regulatory scrutiny, rising operational costs, and the need to deliver consistent performance in volatile markets.
“When you combine all these factors, it becomes a complex equation for EAMs,” he observes. “They need to differentiate themselves while managing increasing constraints.”
The Middle East presents a parallel opportunity, driven by the formation of new EAMs and continued wealth creation. Meanwhile, Switzerland remains a mature market, where regulatory changes introduced by FINMA have led to a reduction in the number of licensed managers.
For diversification, Toselli highlights Singapore and Hong Kong as increasingly important hubs. “Singapore is a very strong option, and Hong Kong remains highly relevant,” he says. “Both play key roles in global wealth structuring.”
Platform innovation and product expansion
UBP is investing in platform capabilities to support evolving client and EAM requirements. A recent development is the launch of Variable Capital Company (VCC) structures in Singapore, designed to offer flexible, tax-efficient fund solutions.
“VCCs allow assets to be structured within sub-funds, with a high degree of flexibility in management and delegation,” Toselli explains. “We introduced this capability in response to clear client demand, and we are now extending it to our EAM partners.”
The bank is also offering actively managed certificates (AMCs), which provide an even more flexible structure for implementing model portfolios or niche investment strategies at scale.
“These tools allow EAMs to industrialise certain aspects of portfolio management,” he notes. “They are particularly useful for smaller or more targeted strategies.”
Execution capabilities are another focus area. UBP has established a dedicated trading desk for EAMs in Singapore. EAMs booked in Hong Kong and Singapore benefit from direct access to multi-asset execution with extended trading hours.
Key Priorities
Over the next 12–18 months, UBP’s EAM strategy is centred on three core priorities.
Reinforcing regional presence: The bank has strengthened its EAM teams in Hong Kong and Singapore, with new leadership appointments and increased collaboration across global desks. “We want to address the market as one bank,” Toselli explains. “That coordination is critical to delivering consistent service.”
“We want to address the market as one bank”
Expanding platform capabilities: Product innovation remains a priority, particularly in areas such as VCC structures and AMCs. These solutions are designed to meet growing demand for institutional-grade investment vehicles among private clients.
Enhancing execution infrastructure: Dedicated trading capabilities in Asia are being scaled to support EAMs with efficient, multi-asset execution across extended market hours.
“These priorities are interconnected,” Toselli notes. “They all contribute to strengthening our value proposition for EAMs globally.”
Into the future: institutionalisation and the future of the EAM model
Looking ahead, Toselli expects the EAM sector to continue evolving towards more institutionalised operating models.
“Private clients are increasingly looking for institutional-like solutions,” he says. “This is driving demand for structures such as VCCs and AMCs, as well as more sophisticated portfolio construction approaches.”
At the same time, consolidation within the EAM space is likely to remain gradual. Structural challenges, including valuation alignment and operational readiness, continue to limit transaction activity.
“Consolidation is expected, but it will take time,” he explains. “It is not always straightforward for firms to position themselves for sale or to find the right strategic fit.”
In this context, partnerships between banks and EAMs are likely to deepen. “EAMs may find it more efficient to leverage the capabilities of banks rather than pursue consolidation,” Toselli suggests. “That reinforces the importance of strong, long-term partnerships.”
“EAMs may find it more efficient to leverage the capabilities of banks rather than pursue consolidation”
Artificial intelligence is another emerging theme, though Toselli remains pragmatic about its near-term impact. “AI is still at an early stage,” he notes. “It becomes more relevant at scale, but for many EAMs, the personal relationship remains central.”
The views and opinions expressed by fund managers (internal or external) may differ from the house view. They are shared for informational purposes and do not constitute investment advice or a recommendation.
