UBS Global Wealth Management Adds AIA Strategies from Natixis Investment Managers to Innovative SMA Pricing Strategy
- AIA’s index-based separate account strategies seek to provide index-like returns on a pre-tax basis and outperform the index on an after-tax basis
- Implements active tax-loss harvesting on a quarterly basis and on demand
- Offers customized exposures including sector, style or ESG criteria
BOSTON & SAN FRANCISCO–(BUSINESS WIRE)–Natixis Investment Managers (Natixis) today announced that its Active Index Advisors (AIA) group will offer its customizable investment strategies through UBS Wealth Management USA’s separately managed account (SMA) pricing strategy. Beginning July 7, UBS’s US clients will have access to six AIA strategies through their innovative new SMA pricing strategy that charges no additional investment manager fee, providing efficient access to a wide range of AIA’s customizable, tax-efficient investment offerings.1
AIA’s index-based separate account offerings seek to provide index-like returns on a pre-tax basis while outperforming the index on an after-tax basis. Through UBS, advisors will be able to access strategies that replicate the S&P 500, S&P 1500 All-Cap, Global, S&P 600 Small-Cap, S&P 400 Mid-Cap and S&P International ADR indexes. Each strategy is designed to replicate its index utilizing a subset of the index constituents, while employing an active tax-loss harvesting strategy that identifies securities with losses on a quarterly basis and on demand. AIA also offers customized investing screens which enable clients to tailor their portfolios’ exposure based on criteria such as sector weight, investment style, or environmental, social, and governance (ESG) criteria.
Strategies participating in this new all-inclusive pricing may still charge clients a premium fee for value-added services, which includes tax management or sustainable investing.
“We’re committed to open architecture and are delighted that a premier asset manager like Natixis Investment Managers’ AIA group has joined UBS Asset Management in this approach,” said Steve Mattus, Head of Americas Advisory and Planning Products. “We focus on delivering the best ideas, solutions and capabilities to our clients regardless of where those resources originate.”
“We are pleased to offer UBS wealth management clients our customizable investing strategies that bring an active, tax-efficient approach to index replication,” said David Giunta, CEO of Natixis Investment Managers in the US. “SMAs offer an efficient way for financial advisors to tailor portfolios to each client’s individual needs, and we are confident our AIA strategies can play a unique and important role in this new offering.”
“Our SMAs are designed to help UBS investors to mitigate tax liability in their portfolios and minimize capital gains, and they offer UBS advisors another tool to help position their client portfolios for future taxable events,” said Kevin Maeda, Chief Investment Officer of AIA. “Whether it’s balancing a concentrated stock position or aligning portfolios with personal values, we strive to help advisors meet their clients’ financial goals.”
About Active Index Advisors®
Active Index Advisors (AIA) offers custom investment strategies by combining the major benefits of both active and index management. AIA employs quantitative strategies to suit each investor’s needs and maximize efficiency, while seeking to provide enhanced after-tax returns. The firm offers a suite of index replication and separate account strategies that are actively managed to maximize tax loss harvesting while providing beta exposure to an index. AIA is among the few tax-managed SMA managers to be third-party verified for Global Investment Performance Standards (GIPS®) compliance.
About Natixis Investment Managers
Natixis Investment Managers serves financial professionals with more insightful ways to construct portfolios. Powered by the expertise of more than 20 specialized investment managers globally, we apply Active Thinking® to deliver proactive solutions that help clients pursue better outcomes in all markets. Natixis Investment Managers ranks among the world’s largest asset management firms2 with $908.9 billion / €828.4 billion assets under management.3
Headquartered in Paris and Boston, Natixis Investment Managers is a subsidiary of Natixis. Listed on the Paris Stock Exchange, Natixis is a subsidiary of BPCE, the second-largest banking group in France. Natixis Investment Managers’ affiliated investment management firms include AEW; Alliance Entreprendre; AlphaSimplex Group; DNCA Investments;4 Dorval Asset Management; Flexstone Partners; Gateway Investment Advisers; H2O Asset Management; Harris Associates; Investors Mutual Limited; Loomis, Sayles & Company; Mirova; MV Credit; Naxicap Partners; Ossiam; Ostrum Asset Management; Seeyond; Seventure Partners; Thematics Asset Management; Vauban Infrastructure Partners;Vaughan Nelson Investment Management; Vega Investment Managers;5 and WCM Investment Management. Additionally, investment solutions are offered through Natixis Investment Managers Solutions, and Natixis Advisors offers other investment services through its AIA and MPA division. Not all offerings available in all jurisdictions.
For additional information, please visit Natixis Investment Managers’ website at im.natixis.com | LinkedIn: linkedin.com/company/natixis-investment-managers.
Natixis Investment Managers’ distribution and service groups include Natixis Distribution, L.P., a limited purpose broker-dealer and the distributor of various U.S. registered investment companies for which advisory services are provided by affiliated firms of Natixis Investment Managers, Natixis Investment Managers S.A. (Luxembourg), Natixis Investment Managers International (France), and their affiliated distribution and service entities in Europe and Asia.
The views and opinions expressed may change based on market and other conditions. This material is provided for informational purposes only and should not be construed as investment advice. There can be no assurance that developments will transpire as forecasted. Actual results may vary.
1 UBS Financial Services pays Natixis for the investment manager fee, with no cost passed on to the client.
2 Cerulli Quantitative Update: Global Markets 2019 ranked Natixis Investment Managers as the 17th largest asset manager in the world based on assets under management as of December 31, 2018.
3 Assets under management (“AUM”) as of March 31, 2020. AUM, as reported, may include notional assets, assets serviced, gross assets, assets of minority-owned affiliated entities and other types of non-regulatory AUM managed or serviced by firms affiliated with Natixis Investment Managers.
4 A brand of DNCA Finance.
5 A wholly-owned subsidiary of Natixis Wealth Management.
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Contacts
Maggie McCuen
(617) 849-2769
Maggie.McCuen@Natixis.com