Following the acquisition and integration of Nexar, Union Bancaire Privée (UBP) has launched an alternatives division that offers clients broad alternative investment expertise and solutions.
As part of this strategy, it has selected Guggenheim Fund Solutions (GFS) as its partner to provide clients with a platform that combines carefully sourced, dynamic, high-potential hedge fund managers with a next-generation solution that delivers the transparency, governance, and structural risk mitigation required by investors.
Within this framework, UBP uses its hedge fund investing experience to identify, select and monitor performing managers that operate on the GFS managed account platform. Fourteen accounts have been launched and UBP plans to have 30 operating by year end.
UBP selected Guggenheim in light of its experience operating managed accounts across the full spectrum of hedge fund strategies, which it has done for more than a decade. GFS client portal technology delivers transparency that supports UBP’s portfolio construction, risk-management and on-going monitoring processes. Independent valuation, administration and custody facilitate daily risk transparency which in turn supports the regulation-compliant investment formats – which are increasingly important to UBP’s clients – such as AIFMD, Basel III & Solvency II.
The platform has been designed to accommodate the regulatory and reporting requirements of a wide array of investors, across both geographical locations and client types. All clients enjoy comprehensive investment transparency on a daily basis, including valuations and position-based aggregated risk reporting that are accessible through a secure web-based portal. UBP and Guggenheim have combined their price scales to provide competitive fee arrangements and cost-efficiency.
Arié Assayag, chief executive of UBP Alternative Investments, says: “We are convinced that hedge fund managers are best positioned to deliver absolute or asymmetric returns and to implement tail hedging strategies that are increasingly sought-after by our clients. After much research, we found GFS to have the best solution in the market and a truly un-conflicted platform that avoids all liquidity transfer. We view this service as a new approach to alternative investments, which will enable clients to see their investments perform in a more secure manner.”
Diego Winegardner, head of Guggenheim Fund Solutions, says: “We are delighted to have been selected as partner to UBP, an industry thought-leader in the alternatives arena who understands the value of transparency and how it can drive investment performance. We share a common vision of the power in this investment approach, which can reinforce investor confidence by solving current issues within the alternatives industry. We are confident that our combined expertise will be of significant benefit to investors seeking to increase their allocations to alternatives.”