With the merger between two of the largest financial institutions in Switzerland, the investment landscape for pension funds and similar entities has fundamentally shifted. Historically, many of these funds relied on both UBS and Credit Suisse to diversify their assets, but now run a potential asset concentration risk in their portfolios. In addition to portfolio diversification concerns, other key relationships within these funds, such as those with global custodians, consultants, and asset managers may also be under review.

Utilizing a mixed-methods approach, this study combines qualitative data from interviews with key stakeholders, including pension funds, banks, consultants and regulatory bodies, with quantitative analysis of secondary data. The research aims to address three primary questions: the mergers effect on market competition and the asset management landscape, potential for new entrants of asset management service providers and potential for new entrants as global custody services providers.

Findings suggest a notable concentration risk, with most pension funds having newly combined assets with UBS. However, most funds remain hesitant to make drastic changes to their investment strategy in the short-term. Despite concerns about reduced competition, this study highlights potential for already established entities such as ZKB and Swiss Life to fill new marginal market gaps. New entrants may find it challenging to gain market share, especially due to significant market entry barriers such as regulatory and infrastructural challenges. The study concludes that the merger between CS and UBS has led to a decline in competition within the Swiss Global Custodian market, as 93.3% of participants reported a concern about reduction in competition. However, analyses of the Global Custodian and asset management market indicate that the merger has not created significant new market opportunities for entrants in either global custody services or asset management, supporting the hypothesis that the Swiss market remains highly competitive with substantial barriers to entry for new players.