Mutual Fund revenue sharing and non-cash compensation

For brokerage assets, revenue sharing is negotiated  based on a percentage of the assets held by UBS clients in brokerage accounts although we have agreements with some mutual fund families for which we receive revenue sharing payments for brokerage accounts based on both sales and assets as described below.

For advisory assets,  revenue sharing is calculated based on a percentage of assets subject to certain exclusions described in the “Additional Sources of Compensation in Connection with Investments in Advisory Accounts”  section of the Form ADV Disclosure Brochure provided at Disclosure Documents page. https://www.ubs.com/us/en/wealth-management/about-us/disclosure-documents.html

Revenue sharing payments are individually negotiated with each mutual fund family and are collected quarterly and generally range from:

• Sales: 0.05% to 0.08% one-time payment in the quarter of purchase on all purchases of mutual fund shares in brokerage accounts. 
• Assets: 0.025% to 0.15% per year payment of the asset value of all equity and fixed income mutual fund shares held at UBS in both brokerage and advisory accounts (other than money market and offshore funds). The most common rates are 0.15% on equity mutual fund shares and 0.10% on fixed income mutual fund shares.
• Some mutual fund companies pay a flat fee annually which can be higher or lower than the rates listed above. 
• Money market mutual funds that are not used as automatic sweep vehicles for your UBS accounts pay revenue sharing of up to 0.11% for assets held in UBS accounts that are not retirement assets in discretionary advisory programs.
• Our affiliate, UBS Asset Management, pay us revenue sharing up to 0.12% of the average daily net assets in the UBS RMA Government Money Market Fund which serves as the sweep fund for uninvested cash in certain non-retirement accounts.  No revenue sharing is paid on the UBS Liquid Asset Government Fund, the sweep fund used for retirement accounts.  

Some mutual fund families are subject to a minimum annual payment which, in some instances, may result in a fee that exceeds the percentages described above. These minimums range from $10,000 to $75,000, but are most often $75,000.  We expect to begin increasing this rate to require a minimum of $100,000 starting January 1, 2026.

Although mutual funds from more than 400 different mutual fund families are available through our distribution platform, this is only part of the universe of mutual funds that are available to our customers in the marketplace. No portion of the revenue sharing fees are paid to financial advisors.

In addition to the payments described above, UBS and our Financial Advisors receive non-cash compensation from insurance companies and asset managers (“Vendors”) whose products we distribute. This compensation includes the following:

• Occasional gifts up to $100 per Vendor per year and occasional meals, tickets or other entertainment of reasonable and customary value. The receipt of occasional gifts, meals or entertainment can tend to result in recommendations of the products of the providers of such gifts, meals or entertainment.
• Sponsorship support of educational events the Financial Advisors arrange for clients and prospective clients.
• Contributions made at the firm level toward seminars and educational programs for Financial Advisors.
  These contributions are significant both per Vendor and in the aggregate. While Financial Advisors do not receive any portion of these payments, the conflict presented is that a Financial Advisor’s attendance and participation in educational or training forums, and the increased exposure to Vendors who sponsor these events, tend to lead Financial Advisors to recommend the products and services of those Vendors over the products of other vendors. These seminars and educational programs often include non-educational elements.
• Various forms of marketing support and, in certain limited circumstances, the development of tools used by the firm for training or recordkeeping purposes.

Not all Vendors contribute to the above and to our education efforts. Neither contribution toward these training and educational expenses, nor lack thereof, is considered as a factor in analyzing or determining whether a Vendor should be included or should remain on our platform. Contributions can vary by Vendor and event.

Your Financial Advisor does not receive a portion of these payments. However, their attendance and participation in these events, as well as the increased exposure to vendors who sponsor the events, may lead Financial Advisors to recommend the products and services of those vendors as compared to those who do not.

The receipt of cash and non-cash compensation from sources other than clients, and the differences in the way we compensate Financial Advisors for the products we offer, create an incentive for Financial Advisors to recommend certain products and account types over others. We address our conflicts of interest by maintaining policies and procedures requiring that Financial Advisors act in your best interest, reasonably supervising their activities and by disclosing these conflicts to you so that you can make fully informed decisions.

UBS remains committed to investing in long-term relationships and we remain dedicated to helping you pursue your investment goals. If you have additional questions regarding mutual funds, or the fees we receive, please feel free to contact your Financial Advisor.