By lowering the minimum investment on its new platform to £15,000 ($18,400, €17,400) and promising a simpler fee structure, the group is attempting to cast a wider net with its latest digital venture to appeal to a new generation of investors.
UBS SmartWealth co-head Shane Williams said the platform is unlike the ubiquitous, cheap “robo-advice” alternatives, which care more about cutting costs than providing value.
He said: “Up until now, technology hasn’t been used to help people make better investment decisions. For the most part, so-called ‘robo-advisers’ have merely used technology to cut their own costs, in the meantime offering no actual advice at all.
“UBS SmartWealth uses technology to add value to our clients, not to cut our costs. Hundreds of investment, markets and economics experts all over the world will be working around the clock to make sure our clients’ money is invested appropriately. We are using new technology to provide regulated advice, education and investment information to our clients, all in one place.”
According to the investment bank, the new platform “moves beyond simplistic algorithm-based investing” by focusing on a “client’s individual financial situation” as based on their risk appetite and investment objectives.
Clients have a choice between a passive and actively implemented investment strategy. The annual fee they are charged will be calculated based on their total assets invested and the strategy they select.
Investors who commit between £15,000 and £99,000 worth of capital, using a passive strategy will incur an annual fee of 1.1% to 1.13%, while for a portfolio of actively managed funds the total fee will range from 1.47% to 1.95%.
The bank added that clients will have access to ongoing updates to track the performance of their investments.
