UBS WM cuts Swiss equity position after franc surge

LONDON (Reuters) - UBS Wealth Management has cut its "overweight" position on Swiss stocks and halved its "underweight" franc position after the Swiss National Bank's surprise decision to lift a cap on the franc last week sent the currency soaring. The world's largest wealth manager said the franc's sudden appreciation against major currencies means Swiss corporate profits are likely to fall by 5-7 percent in 2015, compared to consensus forecasts of growth of 10-12 percent before the SNP's surprise move on Thursday. "The outlook for Swiss equities has deteriorated, and the franc has found a new level," UBS WM's global chief investment officer Mark Haefele said in a note to clients dated Jan. 19. The wealth manager now has a "neutral" position on Swiss stocks. It is "overweight" euro-zone shares. (Reporting By Francesco Canepa; Editing by Lionel Laurent)