UBS target-date collective investment trusts
based on Morningstar Indexes attract two large clients, $2.4
billion in first six months.
Insert as first sentence of the UBS Asset Management
boilerplate: UBS Asset Management Trust Company is a
wholly-owned subsidiary of UBS Group AG (UBS Group) and a member of
the UBS Asset Management division.
The corrected release reads:
UBS ASSET MANAGEMENT AND MORNINGSTAR
COLLABORATION IN THE DEFINED CONTRIBUTION MARKET PASSES
MILESTONE
UBS target-date collective investment trusts
based on Morningstar Indexes attract two large clients, $2.4
billion in first six months.
UBS Asset Management Trust Company (UBS) and Morningstar, Inc.
(Morningstar) today announced that their collaboration in the
defined contribution market had passed a milestone. UBS's series of
target-date collective investment trust funds (CITs) that seek to
track the performance of the Morningstar® Lifetime Allocation
Indexes attracted two large corporate defined contribution plan
clients in their first six months, gathering $2.4 billion in
assets. UBS launched the CITs, which are for use exclusively by
qualified retirement plans, in July, 2015. Morningstar Investment
Management LLC, a registered investment advisor and part of the
Morningstar Investment Management group, serves as a
nondiscretionary subadvisor with respect to the CITs. Morningstar,
Inc. is the index provider.
"Our joint effort with Morningstar provides defined contribution
plans and participants with a truly unique way to invest
intelligently for retirement, and beyond," said Blake Moore, Head
of Americas for UBS Asset Management. "And in addition to our first
two large corporate plan clients, we have generated significant
interest in these CITs based on Morningstar's indexes and glide
path, and UBS's deep experience managing passive investment
strategies."
Available in three series—conservative, moderate, and growth—the
CITs are passively managed, low-cost investment selections. UBS
licenses the Morningstar Lifetime Allocation family of indexes as
the benchmarks for the CITs. Launched in 2009, the Morningstar
Lifetime Allocation Indexes comprise three series of target-date
indexes that vary in aggressiveness and adjust their asset
allocations over time to become more conservative. The indexes
leverage Morningstar’s Total Wealth Approach to investing—a concept
that goes beyond looking at an individual’s current wealth, and
takes into account his or her personal prospects, goals, and
resources when building portfolios. The Morningstar Investment
Management group developed this proprietary investment methodology
through years of award-winning academic research on capital market
assumptions, lifetime finance, and advanced asset allocation
optimization techniques.
“Many people don’t think of themselves as investors. But the
reality is they become one when they join their employer’s
retirement plan. The result is a large population of ‘accidental’
investors who may not have the time, interest, or knowledge to
invest, but need to do so to prepare for retirement,” Brock
Johnson, head of workplace solutions for Morningstar, said. “The
UBS CITs can offer an easy, low-cost, and appropriate solution for
investors to help them build long-term wealth and reach financial
independence.”
Not FDIC Insured | May Lose Value | No Bank Guarantee
The Morningstar Lifetime Index Funds are collective investment
trust funds established under the UBS (US) Group Trust. UBS Global
Asset Management Trust Company is the trustee the UBS (US) Group
Trust and the investment manager of the CITs.
The values of the CITs will fluctuate up to and after their
target dates. There is no guarantee the CITs will provide adequate
income at or through retirement. There is no guarantee that the
CITs will actually achieve any objectives, performance
expectations, risk or return targets. Diversification and asset
allocation strategies do not ensure a profit and cannot protect
against losses in a declining market. The CITs are subject to
various risks, including possible loss of principal, market
volatility, risks associated with the underlying investments,
exposure to international and emerging markets, small company and
sector equity securities, commodities, and fixed income securities
subject to changes in inflation, interest rates, market valuations,
liquidity, prepayments, and early redemption.
The CITs are available for investment only by eligible
retirement plans and entities. The CITs are not insured by the FDIC
or any other governmental agency; are not deposits or other
obligations of, and are not guaranteed by UBS Global Asset
Management Trust Company or any of its affiliates. The CITs are not
mutual funds and are not registered under the Investment Company
Act of 1940 (the "1940 Act"), and their units are not registered
under the Securities Act of 1933, or applicable securities laws of
any state or other jurisdiction. CIT unitholders are not entitled
to the protections of the 1940 Act. The decision to invest in the
CITs should be carefully considered. The CITs are not sold by
prospectus and are not available for investment by the public; CIT
unit prices are not quoted in newspapers.
Notes to Editors
About UBS Asset Management
UBS Asset Management Trust Company is a wholly-owned subsidiary
of UBS Group AG (UBS Group) and a member of the UBS Asset
Management division. Asset Management is a large-scale asset
manager with well diversified businesses across regions and client
segments. It serves third-party institutional and wholesale
clients, as well as clients of UBS’s wealth management businesses
with a broad range of investment capabilities and styles across all
major traditional and alternative asset classes. Complementing the
investment offering, the fund services unit provides fund
administration services for UBS and third-party funds.
UBS is committed to providing wealthy, institutional and
corporate clients worldwide, as well as private clients in
Switzerland, with superior financial advice and solutions while
generating attractive and sustainable returns for shareholders. Its
strategy centers on its Wealth Management and Wealth Management
Americas businesses and its leading universal bank in Switzerland,
complemented by its Asset Management business and its Investment
Bank. These businesses share three key characteristics: they
benefit from a strong competitive position in their targeted
markets, are capital-efficient, and offer a superior structural
growth and profitability outlook. 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. Capital strength is the foundation of its success.
About Morningstar, Inc. and the Morningstar Investment
Management Group
Morningstar, Inc. is a leading provider of independent
investment research in North America, Europe, Australia, and Asia.
The company offers an extensive line of products and services for
individual investors, financial advisors, asset managers, and
retirement plan providers and sponsors. Morningstar provides data
on approximately 500,000 investment offerings, including stocks,
mutual funds, and similar vehicles, along with real-time global
market data on more than 15 million equities, indexes, futures,
options, commodities, and precious metals, in addition to foreign
exchange and Treasury markets. Morningstar also offers investment
management services. The company has operations in 27
countries.
The Morningstar Investment Management group, through its
investment advisory units, creates custom investment solutions that
combine award-winning research and global resources with
proprietary Morningstar data. With approximately $170 billion in
assets under advisement and management as of September 30, 2015,
the Investment Management group provides comprehensive retirement,
investment advisory, and portfolio management services for
financial institutions, plan sponsors, and financial advisors
around the world. Morningstar Investment Management LLC is part of
the Investment Management group and a wholly owned subsidiary of
Morningstar, Inc.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160127005938/en/
Media:UBSGregg Rosenberg,
212-713-8842gregg.rosenberg@ubs.comorMorningstar, Inc.Alexa
Auerbach, 312-696-6481alexa.auerbach@morningstar.com
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