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UBS Merging Its Wealth Units Could Save It 5%

April 9, 2018

UBS’s recent merger of its wealth management operations in the U.S. with its international unit could result in cost synergies of 5%, according to a Trefis report published in Forbes.

For starters, the company will be in a stronger position to negotiate discounts with fund managers, the researchers write. In addition, the firm will be able to cut staff in its support and administrative functions across the two wealth management units. Additionally, UBS’s Wealth Management America unit “should benefit” from the continuous increases in U.S. interest rates, Trefis writes.

Meanwhile, the company has rolled out its robo-advisor to U.S. clients, according to a press release from the firm.

UBS Advice Advantage, which the company developed with the wealth management tech firm SigFig, offers portfolio diagnostics, features to track financial goals and access to a new investment portfolio product, which includes risk assessment, rebalancing, professional portfolio management and tax loss harvesting, the company says.

The digital platform incorporates UBS research and market views and lets clients use UBS analytics on outside accounts, according to the press release.

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All clients will still be able to reach financial advisors through the company’s Wealth Advice Center, UBS says. The minimum investment on the platform is $10,000 and comes with a 0.75% asset-based fee, according to the press release.

By Alex Padalka
  • To read the Forbes article cited in this story, click here.