UBS Adds More Model Portfolios to Popular SMA Platform

UBS has been adding more third-party model portfolios to its fast-growing separately managed account platform. “There’s no fee attached to [the model portfolio] and that’s a strong appeal for the advisor and client … you don’t have an additional fee you’re paying the asset managers’ asset allocation expertise,” said Jeff Strange, relationship manager at FUSE Research Network. “It dovetails with UBS’ larger strategy of trying to have no management fees attached to the client.” Model managers in the program “might not use all of their products in the model, but they’re going to use probably 40% at least of their own products,” Strange said. “They’re not going to be able to charge a strategist fee on top of that; their economic benefit is just having the assets go into their products that are in the model and getting the management fee at that product level. And the model is just going to be essentially free to the client.”

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Article published on May 26, 2022