As it continues to see strong flows of client assets in its zero-fee separately managed accounts, UBS Financial Services said at the end of last month it was dropping the minimum investment in its hybrid robo-advice product, dubbed UBS Advice Advantage, from $10,000 to $5,000.
This change brings UBS more in line with competitors like Merrill Lynch, which has a similar account minimum for its robo-adviser. And over the summer, Fidelity Investments said that it was dropping its annual advisory fee for its robo-adviser to zero on accounts with less than $10,000.
Giant firms like UBS are trying to open the door to younger clients who may be related to a wealthier, more established investor, or those potential clients reassessing how they are investing during the COVID-19 era, one analyst said.
"UBS has had a higher minimum, so this is positive for clients and their kids," said Sophie Schmitt, senior analyst with the Aite Group. "The trend has been for the big institutions to offer younger potential customers various banking or savings accounts. The big firms are looking to the next generation of investors, and reducing minimums is a good move, especially during a time when many are stuck at home and weighing options."
For decades, large firms have been pushing advisers away from working with small accounts and instead have been paying them to chase the largest and most profitable clients. This alienated many advisers, and a technology platform that includes a robo-adviser appears to be a solution to that problem.
UBS Financial Services Inc. made the disclosure in an update to its Form ADV filed on Oct. 30. In that filing, UBS said that its UBS Managed Portfolio program was closing to new accounts, and those investors already in the program will be moved to another program, called Access, and managed by UBS Asset Management.
About a year ago, UBS said it was eliminating management fees on select separately managed accounts, including portfolios in both the ACCESS and Managed Portfolio programs. Clients have typically paid a combined 1% management and advisory fee for such separately managed accounts.
UBS has seen strong asset flows this year. Its UBS Asset Management zero-fee, separately managed account pricing initiative in the United States totaled $8 billion of net new money in the third quarter, and a total of $35 billion of inflows since its inception in the final quarter of last year, according to the company.
Driven by robust transaction activity amid market turbulence and increased focus on billion-dollar plus targets, Echelon Partners expects another all-time high in 2025.
The looming threat of federal funding cuts to state and local governments has lawmakers weighing a levy that was phased out in 1981.
The fintech firms' new tools and integrations address pain points in overseeing investment lineups, account monitoring, and more.
Canadian stocks are on a roll in 2025 as the country prepares to name a new Prime Minister.
Carson is expanding one of its relationships in Florida while Lido Advisors adds an $870 million practice in Silicon Valley.
RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.
As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.
