New look UBS pitch to planner market
Wholesale fund manager UBS Asset Management (UBSAM) has lowered the entry figure for access to its funds while also introducing a dial-up trailing commission
Wholesale fund manager UBS Asset Management (UBSAM) has lowered the entry figure for access to its funds while also introducing a dial-up trailing commission.
The entry figure will drop from $50,000 to $20,000 in a bid to attract more investors and increase awareness of the UBS name.
UBSAM chief executive officer John Larum says, "We are traditionally known as a fixed income wholesale manager but we have always had a managed funds presence via master trusts."
"As such we are devoting more resources to build up our profile among financial planners with a good range of products which are attractive for use by planners."
Larum says the entry point of $50,000 represented a barrier for many investors. He believes the new lower entry point has the potential to widen the client base through the advisory market.
Advisers will be able to earn dial-up commission varying from nil through to one per cent — the figure to be set by the financial planner and the client.
UBSAM business development director Colin Wood says UBSAM does not wish to impose a rate upon planners. The commission will tie into wholesale MER rates which will still be under the market.
"This is a genuine wholesale rate between 0.4 per cent and 0.78 per cent dependent on sectors,” says Woods. “As such advisers can see what is going on and it provides a level of flexibility with clients.
"Even at the highest rate of one per cent added to the maximum management fees the overall rate will still be lower than the market average."
Woods believes the system will work well for planners who have problems getting fees from clients as UBSAM will redeem client units and pay the planner any trailing commissions.
"We have had much of our growth through the master trust and wrap account markets and DIY superannuation. The use of this form of dial-up commission gives us the chance to use this type of product, with remuneration built in, outside this environment," Woods says.
The changes are being rolled out to coincide with the local operations of UBS Brinson being rebadged UBSAM.
Globally the group has $550 billion under management, of which $190 billion is in managed funds. Australian operations account for $12.4 billion with around 60 per cent tied up in fixed income and cash.
The balance of the funds are in local and international equities, international fixed income and private markets. The group is targeting a further $1 billion into managed funds over the next two years.
AUTHOR
Jason Spits
Recommended for you
Retail investment into private credit funds could surpass that of sophisticated investors, according to ASIC, but the regulator admits it is unsure how and where these individuals are first being introduced to the vehicles.
With the high cost of advice keeping young Australians locked out of advice, a fintech provider has said digital advice is key for licensees to capture this unadvised demographic.
ASIC chair Joe Longo has announced he will step down at the end of his term, departing the corporate regulator in May 2026.
When it comes to the phase-out of AT1 bonds, Schroders fixed income manager Helen Mason has urged financial advisers to sell up sooner rather than later or risk capital losses.
