UBS Group has launched a new outsourced-CIO (OCIO) service, targeting clients with $10 million to $250 million in assets, the firm announced Thursday.
The Swiss bank’s asset management division will partner with its wealth management Americas unit to offer discretionary services as “an extension of the OCIO service that has been offered until now,” Charlie Service, managing director of investment solutions at UBS Asset Management, told CIO.
UBS has been offering OCIO services since 2007, and counts Delta Air Lines as a major client. The new program will “combine UBS’ consulting experience and investment heritage,” the firm continued. The clients will be able to retain portfolio oversight while delegating investment decisions to UBS.
“We have complemented the institutional offering of a global asset management organization with the accessibility of a local financial advisor who understands each particular client’s needs,” said Frank van Etten, head of client solutions for UBS Asset Management.
The new OCIO platform will take advantage of UBS’ 97 institutional consultants across the US to engage with prospective clients and handle day-to-day operations, said Peter Prunty, head of the consulting division.
Service added that the new initiative is an open-architecture third-party platform.
UBS Asset Management has been offering OCIO services since 2007, and counts Delta Air Lines as one of its major clients. The firm had $12.2 billion in discretionary assets under management and five clients as of January 2016.
The majority of UBS’ discretionary assets ($11.3 billion) were from corporate pension clients, according to CIO’s OCIO Vendor Ratings. It managed all OCIO assets in separate accounts.
OCIO clients said they chose UBS because of its reputation and track record (75%), management experience (50%), and client service (25%).
Related: 2016 Outsourced-CIO Vendor Ratings: UBS & OCIO Buyer’s Guide: UBS