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Finding the right fit for your wealth management needs can be a daunting task. Investors interested in both advisory and asset management services might want to take a look at UBS Wealth Management, one of the largest investment management firms in the world.
However, interested investors should keep in mind that not all wealth management services are the same. With its gargantuan size and emphasis on in-person meetings, UBS charges more than some other asset management services, and it is not the typical no-commissions online broker to which many self-directed investors have grown accustomed.
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What Is UBS Wealth Management?
UBS Wealth Management is a division of the Union Bank of Switzerland (UBS), one of the largest financial institutions in the world. UBS offers various services globally, including personal & corporate banking, investment banking and asset management.
Through UBS Wealth Management, the company provides investment advice, financial planning and brokerage trading services to its U.S. clients.
How Does It Compare?
UBS Wealth Management takes an old school approach to investing, focused on in-person support from a human professional. You cannot join UBS without scheduling an initial meeting with a UBS advisor first. Your UBS advisor is also actively involved in recommending investments for your portfolio. In some UBS programs, the advisor can make trades on your behalf.
You get much more support using UBS Wealth Management than on a DIY investment platform like Fidelity or Robinhood. While UBS Wealth Management does offer brokerage services where you can trade on your own, its main focus is on giving investment advice. It doesn’t provide the same technology and trading tools as popular online brokerage platforms.
UBS Wealth Management is more like working with a high-end Registered Investment Advisor, or RIA, than an online broker. What’s nice about UBS Wealth Management is you can join some programs with a portfolio of just $5,000. Other investment advisors could require a six-figure commitment or higher. However, you wouldn’t get as much access to senior management at UBS versus a boutique firm.
All of that personal attention comes at a premium. UBS Wealth Management’s fees can run up to 2.5% per year of your portfolio, depending on the program and your portfolio size. The industry average is around 1% per year.
How To Use UBS Wealth Management?
Advisory Services
To get started with UBS Wealth Management, you first schedule a meeting with one of its advisors. You can schedule this meeting online or by phone. UBS has few branches in the U.S. outside of major metropolitan areas, but if you’re close enough to one, you can still meet in person.
The financial advisor will ask questions to understand your current financial situation, needs, goals and risk tolerance. The advisor will then come back with an investment and program recommendation. There are different ways to enroll with UBS, depending on what role you want for the advisor and the possible investments for your portfolio:
- Discretionary programs. The UBS advisor can make trades on your behalf in discretionary programs. The advisor designs your portfolio and can use a broader range of possible investments and strategies.
- Non-Discretionary programs. The advisor cannot trade on your behalf and only gives you recommendations in non-discretionary programs. You decide whether to follow the recommendations.
- Separately managed accounts programs. UBS partners with an external investment/money manager to design the portfolio. They allow you to combine the expertise of another investment manager with your advisor from UBS Wealth Management.
The minimum account size depends on the program. Most require between $5,000 to $25,000 to get started. More complex programs require larger balances. For example, PACE Multi only requires $5,000 but limits your portfolio to mutual funds. UBS Strategic Advisor requires $25,000 but allows a broader range of investments, including equities, fixed-income securities, options and alternative investments.
Brokerage Services
While opening your account, you could also open a UBS brokerage account to trade on your own. That way, you could build your portfolio by buying and selling investments. There is no minimum needed to open a UBS brokerage account. The UBS Wealth Management brokerage platform offers a wide variety of investments, including:
- Stocks
- Bonds
- Mutual funds
- Exchange-traded funds
- Annuities
- Options
- Structured notes
- Alternative investments
If you use the brokerage platform, UBS will not supervise your portfolio or give investment recommendations unless you are also part of one of its advisory programs.
Costs
Investment Advisory Services
You and your advisor will negotiate a fee when you enroll in a UBS Wealth Management program. UBS Wealth Management uses a wrap fee where one annual fee covers advice, investment trading commissions from UBS and the account administrative costs.
UBS Wealth Management charges an annual asset under management fee based on your portfolio size, the advisory program and the complexity of your investment strategy. The maximum fee is 2.5% per year for most programs. What you will pay depends on what you negotiate with your advisor.
If you work with an additional advisor outside of UBS Wealth Management for a separately managed accounts fee, they will also charge an annual fee. You’ll negotiate a combined yearly fee with UBS and the outside advisor.
If you and your advisor choose to use investments outside of UBS that require additional investment fees, they will not be covered by the wrap fee. You’ll need to pay those on top of the annual UBS fee.
Brokerage Services
If you trade on your own with UBS Wealth Management, you will owe commissions. The commission depends on the asset and size of the trade. UBS Wealth Management does not offer zero-commission trades like the top online brokerage platforms. You will also owe annual expense ratios for any mutual funds or ETFs you buy with UBS Wealth Management.
UBS Wealth Management does not require a minimum balance to open a brokerage account. However, if your account falls below a minimum amount determined by UBS, you could owe a $95 annual maintenance fee.
Financial Planning
You can buy a standalone financial plan from a UBS Wealth Management Advisor, which you then manage on your own. UBS Wealth Management estimates it costs between $1,000 to $10,000 for most clients to get a financial plan. The cost depends on your net worth and the complexity of your financial situation.
Other UBS Wealth Management Features
- Financial planning. The financial planners at UBS Wealth Management offer general wealth planning as well as education planning, estate planning, insurance planning and retirement planning.
- Banking and mortgage planning. You can access banking services through UBS Bank USA. This includes deposit accounts, credit cards and mortgages. You can then manage all parts of your finances in one account.
- Investment research. UBS Wealth Management has a massive team of global investment research experts. They publish investment and market research online through articles, videos and podcasts.
- Private wealth management. For the ultra-wealthy, UBS Wealth Management provides family office solutions and advanced planning, like for major philanthropic goals.
- Workplace solutions. UBS Wealth Management offers workplace retirement plans and financial wellness programs to teach employees about money.
Is UBS Wealth Management Right for You?
If you’re looking for an advisor to help manage your investments and have a smaller portfolio, UBS Wealth Management could be a solid option.
You only need $5,000 to qualify for several of its programs. From there, you’ll work with a personal advisor, including the option for in-person meetings. You and your advisor will have access to the investments, research, and banking services of one of the largest financial institutions in the world.
Be warned that UBS Wealth Management can be on the expensive side of investment advice, especially on smaller accounts. Its maximum annual fee can go up to 2.5%, whereas the average investment advisor charges closer to 1%. Pay attention to what you would owe during the onboarding negotiations and compare it to your other possible options.
UBS Wealth Management is likely not a good fit if you are a DIY investor. While UBS Wealth Management offers brokerage services, you can’t open an account online or through an app. You must meet with an advisor first. UBS Wealth Management also charges commissions on all trades, which is becoming increasingly rare in the zero-commission online broker era. UBS Wealth Management is best for those looking for a traditional advisor experience.
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Via Datalign Advisory
As an expert in wealth management and investment strategies, I have extensive knowledge of various financial institutions and their offerings. My expertise allows me to provide valuable insights into the specific details mentioned in the Forbes Advisor article about UBS Wealth Management.
UBS Wealth Management Overview: UBS Wealth Management is highlighted as a division of the Union Bank of Switzerland (UBS), which is positioned as one of the largest financial institutions globally. The article emphasizes that UBS offers a range of services, including personal and corporate banking, investment banking, and asset management.
Investment Approach: The editorial notes that UBS Wealth Management adopts a traditional, in-person approach to investing, distinguishing itself by providing extensive support from human professionals. It is highlighted that joining UBS requires an initial meeting with a UBS advisor, who plays an active role in recommending investments for the client's portfolio.
Comparison with Other Platforms: The article contrasts UBS Wealth Management with online brokerage platforms like Fidelity and Robinhood. It mentions that UBS provides more support akin to working with a high-end Registered Investment Advisor (RIA) rather than a typical online broker. The emphasis is on personalized attention, with the potential downside being higher fees compared to industry averages.
Programs and Account Sizes: UBS offers different programs, including discretionary and non-discretionary programs, as well as separately managed accounts. The minimum account size varies depending on the program, ranging from $5,000 to $25,000. The article highlights that UBS Strategic Advisor, for instance, requires a $25,000 minimum but provides access to a broader range of investments.
Brokerage Services: UBS Wealth Management provides brokerage services for clients who want to trade on their own. There is no minimum balance required to open a UBS brokerage account. The platform offers a variety of investments, including stocks, bonds, mutual funds, ETFs, annuities, options, structured notes, and alternative investments. However, the article mentions that UBS charges commissions for trades and doesn't offer zero-commission trades like some online brokers.
Costs: The article delves into the costs associated with UBS Wealth Management. For advisory services, clients negotiate a fee, and UBS charges an annual asset under management fee based on portfolio size, program, and investment strategy complexity. The maximum fee mentioned is 2.5% per year. For brokerage services, clients owe commissions based on trade size, and there may be an annual maintenance fee if the account falls below a certain minimum balance.
Financial Planning: UBS Wealth Management also offers standalone financial planning services, estimated to cost between $1,000 to $10,000, depending on the client's net worth and financial complexity.
Additional Features: The article outlines other features provided by UBS Wealth Management, including banking and mortgage planning, investment research, private wealth management for ultra-high-net-worth clients, and workplace solutions such as retirement plans and financial wellness programs.
Suitability: The conclusion of the article suggests that UBS Wealth Management could be a solid option for investors looking for personalized advisory services with a lower minimum account size. However, it advises potential clients to be aware of the potentially higher fees compared to other advisors and to carefully consider their options based on individual needs.
In summary, UBS Wealth Management is presented as a comprehensive wealth management option with a focus on personalized service, though potential clients are cautioned about the associated costs and the traditional approach to investing.
