Regulation BI is the new client-care regulation from the Securities and Exchange Commission that takes effect next Tuesday, and many firms have been leveraging its implementation to modify and sometimes prune their product offerings. That is the case of UBS Wealth Management USA, which will expand its offering of Separately Managed Accounts (SMA) with no additional investment manager fee to third party asset managers.
Starting July 7, clients will have access to nine additional strategies in this innovative pricing model, including Natixis Investment Managers/AIA, Breckinridge Capital Advisors and Goldman Sachs Asset Management, across equity and fixed income asset classes.
In August, another nine strategies are expected to join from Franklin Templeton, Invesco, Brandes Investment Partners and PIMCO. All SMA strategies will be made available via WM USA’s ACCESS, Strategic Wealth Portfolio (SWP) and/or the recently launched Advisor allocation Program (AAP) platforms.
In January 2020, UBS launched an innovative, simplified, all-inclusive pricing structure for all strategies available from UBS Asset Management and became the first firm to provide clients with access to select SMAs with no additional manager fee. The fee paid to investment managers will, instead, be borne by UBS. Certain strategies —such as sustainable investing or personalized tax management— can be selected for a fee.
“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,” said Jason Chandler, Head of Wealth Management USA, UBS Global Wealth Management. “At the same time, we’re investing in our Advisors’ success, enhancing our advisory value proposition, and giving clients increased pricing flexibility.”
UBS is committed to offering an open and transparent platform, and as additional managers realize the benefits of this pricing model, it should allow UBS to further reduce the cost of SMAs for its clients.
“We’re committed to open architecture and are delighted that a premier group of asset managers have joined UBS Asset Management in this approach,” added Steve Mattus, Head of Americas Advisory and Planning Products. “We focus on delivering the best ideas, solutions and capabilities to our clients regardless of where those resources originate.”
For Magdalena Martínez