UBS Capital Optimisation Specialist recruitment
The Capital Optimization effort was launched in 2007 to implement a mandate given by the Group Executive Board. The objective of the effort is to use risk-adjusted profitability measures to guide capital allocation.
Capital Optimization develops and maintains the Group’s framework to determine the Economic Profit of UBS’ businesses with the aim of facilitating the creation of shareholder value. Economic Profit is an important measure for business performance evaluation and compensation purposes.
Our key efforts include:
• Equity Attribution Framework
This framework allocates the firm’s equity capital to the businesses and is used to calculate and assess the RoE (Return on Equity) for each of our major businesses.
• Cost of Equity methodology
This methodology relies on the idea that a minimum rate of return is required for a given business, taking an external shareholder’s perspective.
• Guidelines for RoA (Return on Assets) and RoRWA (Return on Risk-Weighted Assets)
These guidelines send the message that the balance sheet is a scarce resource, which must be used in a profitable way. RoA/RoRWA hurdle rates provide a rough but practicable yardstick to assess individual transactions.
The combination of the Equity attribution framework and the Cost of Equity methodology enables us to calculate and assess the Economic Profit for each of our major businesses.
The guidelines for RoA and RoRWA provide a pragmatic way to ensure that individual transactions create a positive Economic Profit.
The Capital Optimization team prepares the proposals on Attributed Equity and Cost of Equity for the Group Asset and Liability Committee and the Board of Directors of UBS.
The team members work closely together with the firm’s businesses and Group functions on issues related to performance measurement and compensation policy.
Position
The position Specialist Capital Optimization is a highly visible London based role in an international team that plays an important role within the Group.
Key responsibilities:
• The individual selected would support a London-based senior team member, with an initial focus on the Equity Attribution methodology.
• Support the implementation of the models and methodologies for capital allocation and the risk-adjusted performance measures.
• Run, maintain, further enhance and document the existing spreadsheets and processes used to determine the Equity Attribution for the quarterly and the planning purposes.
• Provide an important link with our Treasury, Risk management, Strategic planning, Business Division Finance and Accounting stakeholders.
• The individual will also have the opportunity to contribute to further progress in each of the Capital Optimization efforts outlined above.
• In addition, the selected individual would be encouraged to develop his or her own ideas about additional efforts that should be undertaken, additional metrics that should be developed and/or new ways of working with other functions and with the business divisions to increase the role of risk-adjusted performance in their activities.