UBS CEO Ermotti Defends U.S. Strategy Amid $29 Billion in Advisor Asset Losses

UBS CEO Ermotti defended the firm's U.S. strategy as it disclosed 39 teams and $29B in assets lost since late-2024 comp plan changes.

UBS CEO Sergio Ermotti has publicly defended the firm's U.S. wealth management strategy, acknowledging significant advisor departures while insisting that the losses are part of a deliberate repositioning toward higher-margin, ultra-high-net-worth clients.

Speaking at the firm's annual investor day in February 2026, Ermotti said UBS is willing to "sacrifice short-term revenue" to build what he described as a more sustainable, profitable business. The comment came as UBS disclosed that it had lost 39 teams managing a combined $29 billion in assets since announcing controversial compensation plan changes in late 2024.

The numbers paint a challenging picture. In Q4 2025 alone, UBS's Americas wealth management division saw net client outflows of $14.1 billion, up from $8.6 billion in Q3. Full-year net new assets in the U.S. were negative for the first time in recent memory. While the firm's U.S. wealth division still posted $417 million in profit, the trajectory is concerning.

Ermotti's defense centers on the argument that not all revenue is created equal. The departing teams, he suggested, included advisors whose practices were not aligned with UBS's focus on ultra-high-net-worth clients — families with $25 million or more in investable assets. By letting those teams leave, UBS can redirect resources toward clients where it has a genuine competitive advantage: complex cross-border wealth management, structured products, and institutional-quality investment management.

The market's reaction has been skeptical. UBS's share price has underperformed peers since the advisor exodus began, and several sell-side analysts have questioned whether the firm can sustain its U.S. profitability if the outflows continue. The concern is that UBS is losing not just marginal producers but franchise-level teams whose client relationships are irreplaceable.

Internally, the mood at UBS's U.S. offices is tense. Remaining advisors report uncertainty about the firm's long-term commitment to the U.S. market and frustration with the compensation changes that triggered the departures. Several advisors told industry recruiters that they are evaluating their options but waiting to see whether UBS makes further adjustments to the 2026 comp plan before making any decisions.

The competitors are not waiting. Morgan Stanley, Wells Fargo, and RBC have all been actively recruiting UBS teams. Wells Fargo's FiNet channel has been particularly aggressive, offering UBS advisors the combination of an established brand and the higher payouts associated with the independent model. Raymond James and several independent platforms have also been circling.

UBS's response has included targeted retention offers for its most productive advisors. The firm has reportedly made individual retention deals worth 160-200% of trailing 12-month revenue to top producers who agree to stay for four years. Whether these deals are sufficient to stem the tide depends on how they compare to the transition packages being offered by competitors.

The broader question for UBS is whether the "quality over quantity" strategy can work in a market where scale matters. The U.S. wealth management business is driven by assets under management — firms need critical mass to justify the investments in technology, compliance, and product manufacturing that modern advisory practices require. If UBS's U.S. asset base shrinks too far, the economics of maintaining the platform become less favorable.

What to watch: UBS is expected to announce revisions to its 2026 compensation plan in the coming weeks. If the changes are meaningful enough to address advisor concerns, they could slow the departures. If they are perceived as cosmetic, the exodus will likely accelerate.