 |
| Paulo Corchaki, head of UBS Wealth Management Brazil |
Paulo Corchaki, head of UBS Wealth Management Brazil, had a good 2016; his firm’s assets under management grew by 55%. And it had nothing to do with the boost to client inflows after last year’s amnesty for declaring offshore wealth. Rather, he says, it was the local market’s dynamics.
The two dominant wealth management operations, Itaú and Bradesco, bought the Brazilian banks of Citi and HSBC respectively. That, plus the run on AuM at BTG Pactual in the first quarter of 2016, saw money flow to the other banks and led to Corchaki’s above-target performance. To give it context, the industry as a whole is estimated to have increased AuM by 14.6% in the first nine months of 2016.
“The growth came from the local banks,” says Corchaki. “HSBC was sold to Bradesco, and Citi announced it was selling. Situations like these during the year made some money flow locally, and that’s mainly where our inflows came from.”
Rudolf Gschliffner, executive superintendent of Santander Private Banking in São Paulo, agrees that the amnesty had a limited impact: “We strongly recommended to clients that they should participate in the amnesty.
