UBS CEO Says Middle East Conflict Has Not Led to Significant Changes in Client Asset Allocation

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UBS Group CEO Sergio Ermotti stated that UBS clients have not made significant changes to their asset allocations due to the Middle East conflict, but it will take time to fully digest the impact of the war.

“Overall, clients remain calm,” he said in an interview. “We haven’t seen any major changes in asset allocation,” but “this economic pressure will begin to impact the markets.”

On Monday, the market adopted a risk-averse stance, with stocks and U.S. Treasuries falling, after President Donald Trump set a deadline for Iran to reopen the Strait of Hormuz, a vital route for global energy flows.

He added that investors are still assessing how long it will take to absorb the shock of this crisis.

“We saw clients start diversifying their portfolios as early as the beginning of this year,” Ermotti said. “It’s clear that their investment preferences are becoming more differentiated, for example, shifting from a focus on AI technology sectors to more diversified portfolios. Based on the recent weeks, this adjustment seems to be a wise move.”

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