UBS clients are allowed to access zero management fee strategies from Natixis/AIA, Breckinridge Capital Advisors and Goldman Sachs Asset Management


UBS WMA Headquarters in Weehawken, NJ. (Credit: Arnapoli/Wikipedia.)

UBS Financial Services has unveiled plans to expand its offering of Separately Managed Accounts (SMA) with no additional investment manager fee to third party asset managers.

From 7 July 2020, the bank will allow clients to access nine additional strategies, including Natixis Investment Managers/AIA, Breckinridge Capital Advisors and Goldman Sachs Asset Management, across equity and fixed income asset classes.

In addition, nine more strategies from Franklin Templeton, Invesco, Brandes Investment Partners and PIMCO, are expected to join in August 2020.

UBS global wealth management head Jason Chandler said: “This is a win for our clients and Advisors we’re simplifying SMA client pricing, expanding choice and transparency, and aligning our offering with the SEC’s Regulation Best Interest.

“At the same time, we’re investing in our Advisors’ success, enhancing our advisory value proposition, and giving clients increased pricing flexibility.”

UBS will bear the fee paid to investment managers

All SMA strategies are planned to be offered through WM USA’s ACCESS, Strategic Wealth Portfolio (SWP) or the recently introduced Advisor allocation Program (AAP) platforms.

UBS has launched an advanced, simplified, all-inclusive pricing structure for all strategies available from UBS Asset Management in January 2020.

With the new pricing structure, UBS claims to have become the first firm to provide its clients with access to select SMAs without any additional manager fee.

The company said that it will bear the fee paid to investment managers, and certain strategies including sustainable investing or personalised tax management are offered at a fee.

UBS Americas advisory and planning products head Steve Mattus said: “We’re committed to open architecture and are delighted that a premier group of asset managers have joined UBS Asset Management in this approach.

“We focus on delivering the best ideas, solutions and capabilities to our clients regardless of where those resources originate.”

The bank earned a net profit of $1.6bn for the first quarter of this year, a 40% growth compared to the same period of last year.

Its Global Wealth Management division has been the biggest contributor in terms of both operating income and operating profit before tax.