One of UBS' top wealth executives spent four years out of finance – an unconventional career path which is now proving helpful at the bank.
Christine Novakovic had been pursuing an entirely different career path before UBS enticed her back to the finance industry eight years ago: the veteran banker had first worked at a prestigious art house before setting up her own gallery.
She emerged as a huge winner in the Swiss wealth manager's most recent restructuring. The former Citigroup and Hypovereinbsbank top executive won the top job in UBS' global private bank in Europe, the Middle East, and Africa last year. Since then, the Italian-born executive is tipped for more.
Banking vs Art World
Novakovic, named Germany's «executive of the year» in 2003 by a business publication, still makes use of her six-year stint in the art world, according to «Forbes Israel». She bought seven pieces at Fresh Fair, a prestigious five-day art fair held in Tel Aviv which the Swiss bank sponsors.
«We always try to choose an item that is courageous or controversial, because those are the values that we encourage in the end: challenging things – things that make us better,» Novakovic said of UBS' art-collecting. The Swiss bank began collecting in earnest with its 2000 acquisition of PaineWebber. The U.S. broker's ex-Chairman and CEO Donald Marron is one of the U.S.' most avid collectors of contemporary art.
Notable Collector
The episode illustrates how UBS is seeking to parlay its concern for clients' pecuniary affairs even further: «If you want to connect with clients, you have to do it through their passion,» Novakovic said.
The art UBS has displayed throughout its offices is an effective ice-breaker in talking to the wealthy, she noted. «People see the artworks, start talking about them, and from there, they simply connect.» The bank recently acquired a collage by American artist Derrick Adams and a painting by Sue Williams, a Wales-based artist.
Fine Art Investing
UBS spends hundreds of millions every year in art sponsorship including major shows like Art Basel or a partnership with Annie Leibovitz, a renowned American portrait photographer. It views fine art as an investment vehicle and asset class for its wealthy clients.
Two years ago, the bank hired Clare McAndrew, an economist specialized in art, antiquities and collectors' items. Last year, UBS revamped the unit under which its art experts advise the ultra-wealthy clients it is eager to get on-side with.
