UBS terminates Aladdin contract with BlackRock
UBS Group has terminated its agreement with BlackRock’s Aladdin Technology Platform, a multi-million dollar deal inherited from Credit Suisse, Bloomberg reported.
The move is part of UBS’s continuous integration of previous competitors’ asset management operations.
The decision to terminate the contract was made earlier this year. UBS is currently in the process of transferring key components, including numerous Swiss credit funds, into its own system.
The bank is aiming to complete the transition by the end of this fiscal year, the report said.
UBS’s management demonstrates that removing outdated IT and related infrastructure is essential to boost shareholder value after Credit Suisse’s acquisition.
The Aladdin contract, which began in 2019, generated estimated revenues between the SFR50M and the SFR100M (approximately $126 million), according to sources who requested anonymity due to the sensitive nature of the information.
UBS’s asset management division faces challenges due to reduced revenues associated with reduced management fees.
This situation complicates efforts to reduce operational costs, including reducing labor.
The Total Asset Management Unit manages a total of 1.8 tons of assets and reported pre-tax profit of $135 million in the first quarter of the year.
Aleksandar Ivanovic took on leadership of the division in January 2022 after Suni Harford retired.
The bank then restructured its leadership to streamline product delivery and reduce costs, as outlined in Ivanovic’s internal memo.
A shortened to the Asset, Liability, Liability, and Derivative Investment Network, Aladdin offers transaction, risk management and portfolio management tools widely used by key money managers, pension funds and corporate finance personnel.
BlackRock CEO Larry Fink prioritizes technology in the strategy of a company that is about to expand beyond the open market.
Annual revenue for BlackRock’s technology services division, including Aladdin, rose 45% to $1.6 billion from 2020 to 2024.
“UBS terminates Aladdin Agreement with BlackRock” was originally created and published Private Bunker Internationala brand owned by GlobalData.
The information on this site is contained in good faith for general information purposes only. It is not intended to be the advice you should resort to, and we will not give any representations, warranties or warranties, whether express or implied regarding its accuracy or completeness. You should seek expert or expert advice before taking or refraining from taking any medication based on the content on our site.