UBS likes Swiss stocks but drops UK as oil slides

UBS Wealth Management has shifted its exposure to Swiss stocks and taken money out of the U.K., in view of the precipitous decline in the oil price which has seen Brent crude fall below $70.

The world's largest asset manager said Swiss equities are set to get a boost from the lower oil price, due to the large weighting of consumer-oriented companies that make up the Swiss index.

Read MoreOil's plunging—why hasn't gasoline fallen faster?

Chris Hondros I Getty Images

Consumer disposable income will benefit from falling fuel prices, which will help revenue growth and margins of consumer focused firms, the group said.

"In light of the recent decline in the oil price, we make an adjustment to our regional equity positioning, adding an overweight position in Swiss equities relative to an increased underweight in U.K. equities," said global chief Investment officer of UBS Wealth Management, Mark Haefele in a update to investors late Thursday.

Read MoreBrent falls close to $69 after Saudi price cut

The position in Swiss equities should be further supported by the impact the declining oil price will have on monetary policy, he said.

Meanwhile, the U.K. market's relatively large exposure to the energy sector means earnings will likely remain under pressure following the 40 percent decline in Brent crude prices in the second half of this year.

However, the bank's wealth management arm, the world's largest with around $2 trillion assets under management, maintains its large overweight allocation to U.S. equities and believes the falling oil price is a "net positive for U.S. equities, on balance."

Read MoreCheap oil could be good to these companies

"Overall, the declining oil price should prove supportive of our positive stance on risky assets, and equities in particular. While the impact on U.S. high yield credit is mixed, given its high weighting to the energy sector, most companies will remain profitable at current oil prices," Haefele added.