Lineup includes personalized tax management,
active asset allocation for a broader range of clients
UBS Asset Management (Americas) Inc. (NYSE:UBS) enhanced its
lineup of separately managed account UBS Multi Asset Portfolios
(MAPs) available to US and certain offshore investors through its
Private Wealth Solutions program. The enhanced lineup, which became
available to new clients in February, offers the program's
Personalized Tax Management (PTM) overlay feature to a broader
range of clients. The simplified MAPs offering streamlines the
number of portfolios and makes asset allocations more consistent
across MAPs options.
"Even if tax rates fall under the new administration, they still
stand to take a meaningful bite out of investors’ returns," said
Phil Brides, Co-head of Portfolio Management within Investment
Solutions at UBS Asset Management. "Our experience suggests many
financial advisors and their clients are missing out on
opportunities to reduce the impact of taxes. Historically,
investors may have struggled to implement tax management strategies
in a risk-aware way due to the lack of analytics or tools to fully
assess the impact of their tax management strategies on the
risk/reward profile of their portfolios."
"Investors are becoming increasingly aware of the impact taxes
can have on their returns, and financial advisors now have more
tools available to help their clients reduce the potential impact
of taxes. As a result, more financial advisors are bringing
proactive tax management strategies to their clients’ attention,"
said Michael Belasco, Head of Wealth Management Americas
Distribution at UBS Asset Management. "We redesigned our separately
managed account Multi-Asset Portfolios around the needs of US
individual investors, simplifying the lineup and adjusting our
asset minimums for the PTM feature. Now tax-aware investing is
available to more clients, including for the first time investors
in our all-ETF MAPs offerings."
Belasco adds, "Each client’s tax situation is unique. We’ve
refined a process and established a successful track record of
working with each client and their financial advisor to improve
their after tax returns in an ongoing, risk-aware manner. The SMA
MAP enhancement reflects our desire to bring those tools to a
broader range of clients to help them manage their tax exposures on
a daily basis throughout the year."
The new UBS MAPs includes six categories of MAPs with 22
portfolio choices for US investors and two categories of MAPs with
seven portfolio options for offshore clients. US investors can
choose from tax-optimized or traditional SMA portfolios with either
ETFs as the underlying investments or a combination of individual
securities and ETFs. UBS MAPs are available exclusively through UBS
Financial Services Inc.'s financial advisors.
Risk ranges, tax status, on shore and offshore—Each of
the new categories of MAPs generally is available in four versions,
and there are options for US taxable and tax-exempt investors as
well as offshore investors.
Personalized Tax Management (PTM)—PTM is applied at the
individual client account level for each of the new UBS
Tax-Optimized Active MAPs and UBS Tax-Optimized Active ETF MAPs.
The objective of PTM is to pursue the same pre-tax performance as
the underlying model portfolios. By monitoring client portfolios'
tax gains and losses on a daily basis throughout the year, UBS
Asset Management's MAPs team applies sophisticated risk-aware
techniques, including active tax-loss harvesting and the deferral
of short-term capital gains, in an effort to improve each client's
after-tax returns while considering their specific tax
information.
Strategic Allocation—The strategic asset allocation
models that underpin all of the new MAPs have been designed to
address the needs of US private clients. They generally include a
65/35 split between US and non-US equity exposure, and fixed income
investments generally will be in US securities. MAPs will invest in
global ex-US government bonds and nontraditional asset classes
opportunistically.
Tactical Allocation—The tactical asset allocation policy
of the benchmark-relative MAPs (other than UBS Strategic MAPs)
limits the maximum overweights or underweights to 15% at the equity
and fixed income asset class level but will rarely exceed 10% under
normal conditions. The MAPs' maximum cash weight is 30%, but will
rarely exceed 20% under normal market conditions. Tactical
allocation is not available on the UBS Strategic MAPs.
Opportunistic (objective-oriented) portfolios—While the
new MAPs product suite consists mainly of benchmark-oriented
portfolios, UBS Asset Management also has launched two new
objective-oriented (opportunistic) portfolios. Those portfolios
include UBS Tax-Optimized Active ETF MAP—Opportunistic and UBS
Offshore Active ETF MAP—Opportunistic. Both are managed to a target
risk range that corresponds with a moderately aggressive MAP risk
profile rather than being managed relative to a blended
benchmark.
Opportunistic sleeve—All benchmark-oriented MAPs (except
the UBS Strategic MAPs) feature an "opportunistic" sleeve, in which
the investment team may invest up to 10% of assets in off-benchmark
exposures. The opportunistic sleeve will generally be used to
further improve the portfolio's risk/reward profile or to
tactically take advantage of opportunities. It will not be used to
add exposure to asset classes already in the benchmark. Those
off-benchmark exposures may include Nontraditional Fixed Income,
Real Estate, Commodities, Hedge Fund Replication Strategies, High
Yield Municipal Fixed Income, Asset-Backed Securities and
Mortgage-Backed Securities, Local Currency-Denominated Emerging
Markets Debt, Convertible or Preferred Corporate Securities, and
Global (Ex-US) Government Bonds. Exposure to these asset classes
may be delivered via pooled investment vehicles or Exchange Traded
Funds.
Strategic MAPs—UBS Asset Management continues to offer
four portfolios of strategic MAPs with individual securities for
clients who do not want tactical allocation as part of the
management of their portfolios. UBS Strategic MAPs have preset
(target) asset allocations and provide automatic rebalancing, which
typically occurs when a portfolio's style weighting varies from its
target allocation by approximately 7% to 10%.
UBS Group AG
About UBS Asset Management
Asset Management is a large-scale asset manager with a presence
in 22 countries. It offers investment capabilities and investment
styles across all major traditional and alternative asset classes
to institutions, wholesale intermediaries and wealth management
clients around the world. It is a leading fund house in Europe, the
largest mutual fund manager in Switzerland, the third-largest
international asset manager in Asia, the second largest fund of
hedge funds manager and one of the largest real estate investment
managers in the world.
About UBS
UBS provides financial advice and solutions to wealthy,
institutional and corporate clients worldwide, as well as private
clients in Switzerland. The operational structure of the Group is
comprised of our Corporate Center and five business divisions:
Wealth Management, Wealth Management Americas, Personal &
Corporate Banking, Asset Management and the Investment Bank. UBS's
strategy builds on the strengths of all of its businesses and
focuses its efforts on areas in which it excels, while seeking to
capitalize on the compelling growth prospects in the businesses and
regions in which it operates, in order to generate attractive and
sustainable returns for its shareholders. All of its businesses are
capital-efficient and benefit from a strong competitive position in
their targeted markets.
UBS is present in all major financial centers worldwide. It has
offices in 54 countries, with about 34% of its employees working in
the Americas, 35% in Switzerland, 18% in the rest of Europe, the
Middle East and Africa and 13% in Asia Pacific. UBS Group AG
employs approximately 60,000 people around the world. Its shares
are listed on the SIX Swiss Exchange and the New York Stock
Exchange (NYSE).
www.ubs.com
There are fees associated with investing in separately
managed accounts. For fees charged in connection with the Private
Wealth Solutions program, please refer to the UBS Asset Management
(Americas) Inc. Private Wealth Solutions Wrap Fee Program
Brochure.
Past performance is no guarantee of future results.
© UBS 2017. All rights reserved.
The key symbol and UBS are among the registered and unregistered
trademarks of UBS.
www.ubs.com/am-us
UBS Asset Management (Americas) Inc. is the Sponsor of the
Private Wealth Solutions program.
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Media:UBS Americas:Sheryl
Lee, +1-212-882-5857orSwitzerland: +41-44-234 85 00orUK:
+44-207-567 47 14orAPAC: +852-297-1 82 00
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