UBS Wins US Charter, Urges Alternatives, Raises 2026 Brent Forecast to $86
UBS urges clients to boost alternative-asset exposure, highlighting hedge funds, private equity buyouts and infrastructure as portfolio diversifiers against volatility and geopolitical risks. The bank won US national bank charter to expand its North American footprint and its analysts raised 2026 Brent forecasts by $14 to $86 per barrel.
1. Alternative Asset Recommendations
UBS analysts highlighted hedge funds, private markets and infrastructure as key portfolio diversifiers in response to the end of the rate-cut cycle and elevated global debt. They recommended discretionary macro, equity market neutral and multi-strategy funds for equity-like returns with lower volatility and endorsed value-oriented buyouts and secondaries in private equity, while urging caution in direct lending due to rising default risks in lower-tier borrowers.
2. US National Charter Approval
UBS received approval to convert its US branch into a nationally chartered bank, a move designed to deepen its footprint across North America. The change will not alter client account or cash management services, ensuring continuity for existing advisory relationships while unlocking greater operational flexibility and deposit-gathering capacity.
3. Raised Oil Price Forecasts
UBS analysts raised their Brent crude price outlook to an average of $86 per barrel for 2026, up $14 from prior estimates, and $80 for 2027, up $10. The adjustments reflect escalating Middle East tensions and extended Strait of Hormuz disruptions, which are expected to tighten supply and support higher energy prices.