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Only two options until now
Until now, there have typically been two types of portfolio management for wealth management investors:
- Those confident that they can manage their assets themselves, who want to make their own investment decisions and have the time to monitor their portfolio, choose the “Advisory” approach. In this variant, the bank is available to advise them and support them with information, assessments and analyses. However, investment decisions are ultimately up to the client.
- By contrast, clients who want to delegate their financial affairs completely, perhaps due to lack of financial knowledge or lack of time, opt for the “Discretionary” approach. Clients who take this approach transfer full responsibility for their portfolio to the bank. Together with their financial advisor, the client works out a personal investment strategy in line with their risk profile – everything else, i.e., the selection of investments, monitoring and any necessary reallocations, is taken care of by the financial institution. However, in this approach not all client investment ideas and preferences can be considered.
Client needs are changing
But many people today want a middle ground: they want their preferences and investment priorities to be taken into account, but without the burden of having to manage their assets. This has obliged providers to expand their range of services. To press ahead with these developments in the interests of our clients, we at UBS ascertain differing needs – including in personal consultations – identify trends and incorporate them into product development. This process is supported by technological advances, which help to determine both consulting and the implementation of investment solutions. An interdisciplinary project team and thus specialists from different departments often cooperate on developing a new product. This way, new solutions are intensively tested during the advisory process before being rolled out and feedback from clients is taken into account wherever possible.
Personal advice and technology complement each other
With UBS Manage Advanced [My Way], UBS has launched an offer that takes into account the need for relief from portfolio management and decision-making in investments. Clients benefit from the advantages of discretionary wealth management as well as the opportunity to realize their individual preferences by means of around 50 investment building blocks. They can choose building blocks from different asset classes, different regional orientations, ranging from actively managed solutions to passive investments to investments in individual securities. Specifically, this means that clients decide on their profile together with their advisor and in accordance with their risk-return profile. Changes are always possible and regular updates ensure a clear overview at all times.
Naturally, clients are not left to their own devices when it comes to structuring their portfolio, but can count on the support of a personal client advisor at all times. The client advisor can implement client wishes with the help of the building blocks or show the client the effects of reallocations on the overall portfolio, on a tablet in real time. It’s like going to a tailor. Here, too, the client specifies the color, fabric quality or cut they want their suit to have but the tailor is responsible for the advice and realization.
Details on UBS My Way can be found under the following link:
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