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UBS Institutional Consulting GroupCustomized solutions that help address your organization’sunique needs
The UBS Institutional Consulting Groupoffers guidance centered on your needsfrom experienced Institutional Consultingteams that are part of one of the world’sleading wealth management firms.1 Inour consulting role, we are driven toprovide objective advice and creativestrategies to address complex situations.You’ll benefit from our vast globalresources—including our intellectualcapital and thought leadership.
The experience you need to guide yourorganization’s investment decisionsComplexity demands more than customized solutionsThe world of investing is continually changing. And whether you’re charged with successfully managinga corporate pension fund, 401(k) plan, endowment or foundation, the challenges you face are particularto your organization.The UBS Institutional Consulting Group offers hands-on guidance from an experienced, dedicatedconsulting team that leverages the resources and thought leadership of UBS. We provide anadvisory service offering that is tailored to your needs, including investment manager searches andtechnological support—all delivered by someone who knows you and understands the issues you face.Through our discretionary and non-discretionary consulting offerings, we provide a full range of servicesdesigned around your investment management needs. As your fiduciary partner, we have the experienceand bring a structured approach to helping you find the best path to pursue your objectives.UBS Institutional Consulting Group—our process–– Asset allocation analysis–– Overall portfolio design–– Active vs. passive managementAssetAllocationModelingInvestmentPolicy PlanningAssistance–– Assess current situation–– Risk/reward profile–– Assistance with InvestmentPolicy development and reviewInstitutionalConsultingClient–– In-depth portfolio and managerreview and analysis–– Strategic and tacticalrebalancing–– Committee educationOngoingConsulting andPerformanceMeasurementManagerand InvestmentStrategyIdentification–– Investment manager and strategy–– Search–– Identification–– Implementation–– Cost analysis1 of 9
Delivering the individualized attentionyou deserve from credentialed andexperienced consultantsWhen you work with the UBS Institutional ConsultingGroup, you can be confident that you’ll have the supportof seasoned professionals who understand the challengesof running a large institutional investment program. Weprovide comprehensive advisory services and retirementplan solutions to more than 2,000 institutions totalingmore than 140 billion2 under advisement.Standards of excellenceWe hold ourselves to strict accreditation requirements.UBS Institutional Consultants are required to have a CertifiedInvestment Management Analyst (CIMA ), or a CharteredFinancial Analyst (CFA ) credential, in addition to the Series7 and 65 securities registrations. Our Institutional Consultantsaverage more than 27 years3 of financial services experience,which means we have encountered virtually every kind ofeconomic environment.By your side for the long termWe see our mission as providing superior service to clients.We are available to provide resources to support you andgive you the attention you deserve, whether it’s a regularlyscheduled portfolio review, a special board meeting or anunexpected turn of events that demands attention.Our Institutional Consultants take ownership of ourrelationship with you. Your individual InstitutionalConsulting team provides the depth of resources andexperience to provide consistent and continuous supportthroughout your relationship with us.Armed with sophisticated analytical tools, insightful researchand a deep understanding of where you want to go, we canadvise you on strategic adjustments designed to prudently growyour assets and navigate periods of uncertainty.The support ofseasoned InstitutionalConsultants, allrequired to meetstrict accreditationrequirements.2 of 9
Our promise: objective advice anda higher level of serviceOur focusWith each and every one of our clients, we focus onproviding high standards of service. From the outset of ourrelationship, we carefully define and formally documentour role, including the extent of our fiduciary status for thecontracted consulting services.Moreover, the UBS Institutional Consulting Group is partof UBS Financial Services Inc., which benefits from theresources of UBS AG, one of the world’s largest financialservices firms.We will acknowledge in writing the extent of our fiduciaryresponsibility with respect to the contracted advisory serviceswe provide to you.We know the importance you place on your fiduciaryresponsibilities, and we understand the challenges youface. Whether it’s a regular investment review, administrativeupkeep or participant education, we can help.The freedom of open architectureOur investment platform allows us to make unbiasedrecommendations that are focused on your interests.We utilize the experience and expertise of investmentprofessionals at UBS to research all investment options werecommend and perform ongoing due diligence. We willnot recommend proprietary investment products that maypresent a conflict of interest in our advice.Neither the UBS Institutional Consulting Group nor anyof the members of our Institutional Consulting teamsreceive fees or compensation from investment managersor mutual funds in connection with the services providedunder a UBS Institutional Consulting Group Agreement.The fees we receive are solely those paid by our clients forservices contracted.A disciplined process adapted to your needsWe believe a thoughtful and tailored investment processis paramount in order to pursue your investment goals.We know that no two investment plans are ever the same,so we employ a customized process from beginning to end.Our disciplined approach starts with taking the time tothoroughly understand the needs of your organization,the unique circumstances that define your objectivesand any pertinent information about your own decisionmaking process.We work with you to carefully consider how we can bestadd value and enhance the workings of your own internalprocesses. We are committed to providing you with acombination of analytical and reporting tools, investmentexpertise and products and services that help position youto best pursue your goals.3 of 9
A robust infrastructure—resourcesand processes to support your investmentmanagement needsThe UBS Institutional Consulting Group leverages thetechnology and resources of UBS and third-party researchsources to provide you with support for your investmentmanagement needs, including modeling and portfolioevaluation tools, market research, manager search databases,and innovative investment and reporting solutions.Asset Allocation Modeling and Strategic RebalancingWe help you evaluate different paths to your goals usingportfolio optimization models and the economic forecasts andproprietary capital market assumptions developed by UBS.Using the parameters identified in your InvestmentPolicy Statement, we compare expected risk, return andcorrelation across the major traditional asset classes—andalternatives, if appropriate. From this we can develop anasset allocation strategy designed to provide greater potentialfor growth results or adjust your risk exposure.We can also assist you in structuring your portfolio to helpaddress your particular needs. Because of varying performanceacross different asset classes, we recommend revisitingportfolio allocations periodically and rebalancing, whennecessary, to maintain the appropriate risk/return profile.Investment Policy Planning and ReviewA clearly defined Investment Policy is vital to any well-executedinvestment program. Without one, it’s difficult to analyzeperformance or identify what types of managers should behired to pursue your goals. It should be a living documentthat’s reviewed regularly and amended when necessary.If you don’t already have an Investment Policy Statement,we can help you create one based on your particular needsand circumstances. We’ll help you specify your goals andobjectives, and set parameters for the appropriate investmentvehicles, asset allocation strategies and performancebenchmarks based on your risk/return requirements.We help youevaluate differentpaths to your goals.4 of 9
Manager and Investment Strategy IdentificationUsing a variety of metrics, we can help evaluate the stylepurity and risk profile of your current investment managersrelative to peers and asset class benchmarks.Prior to being identified, managers must pass a rigorous duediligence test, and they must continue to meet the requiredcriteria to remain in good standing.In identifying specific managers to implement your strategy,we use a proprietary multistep process in collaboration withthe UBS Investment Manager Research Group to screenprospective managers. We also supplement these resultswith independent manager databases.Portfolio Review and Performance EvaluationSound portfolio construction is crucial for maintaining anoptimal potential for appreciation relative to the level of riskinherent in your portfolio. We help evaluate the efficiency ofyour portfolio relative to your long- and short-term goals.We perform these services not only on traditional assetinvestment strategies, but also on a broad range ofalternative strategies.Monitoring portfolio and investment performance is a criticalcomponent of investment strategy oversight. We evaluate theresults of your portfolio as well as each individual manager’scontribution to performance—both relative and absolute.Prospective candidates are screened for a variety ofquantitative and qualitative characteristics, includingrelative performance, manager tenure and assets undermanagement; as well as investment philosophy andprocess, risk management and style adherence.Using detailed performance data and graphics, we’ll reviewyour results at least quarterly and together determine whetherstrategy or manager changes are warranted. If appropriate,we can offer objective recommendations for adjusting thefocus and types of investments held in your portfolio.5 of 9
Proactive performance-driven consultingWe offer comprehensive consulting services to a wide rangeof institutional clients. Whether your organization answersultimately to a board of directors, corporate shareholders,employees, taxpayers or trustees, we can provide knowledgeand experience adapted to the mission, objectives and uniqueculture of your organization.Education toward improved resultsWell-informed decision-makers make better decisions. Weare available for staff training and board meetings. We viewevery meeting as an opportunity for ongoing communicationon a wide variety of topics, including investmentperformance, asset allocation and capital market updates.Every member of our teams is focused on being responsive,proactive and results-driven. We do our best to anticipateyour needs and provide innovative solutions to the issuesyou face.We leverage expertise and the intellectual capital of UBSWealth Management Research and other sources to provideaccess and insight on the global and domestic economicoutlook, as well as in-depth analyses of capital market trends.Every meeting is anopportunity for ongoingcommunication.6 of 9
Additional services and clients we serveAdditional servicesWe also provide a number of additional consultingservices, including:–– Asset/liability analysis–– Expense analysisUBS Institutional ConsultingGroup offers a full range ofservices to:–– Benchmarking–– Corporations–– A ssistance with foundation and endowmentspending policies–– Public and private retirement plans–– P erformance attribution analysis of existingportfolio structure–– Identification of custodial services–– State and local governments–– Hospitals and healthcare systems–– Colleges and universities–– Plan vendor search–– Trustee education–– Defined Contribution plan services:– Employee education and communication– Assistance in fund identification– Fund performance monitoring– Identification of third-party administratorsor recordkeepers– Fee analysis– Plan benchmarking–– Insurance companies–– Faith-based organizations–– Native American tribes–– Foundations and endowments–– Taft-Hartley plans–– Associations and other not-for-profit organizationsAlthough we do not provide tax or legal advice, we cancoordinate our services with other firms you may haveretained for accounting, legal or administrative support.This adds greater assurance that all the different componentsof your plan work together efficiently and effectively.7 of 9
Institutional Consulting backed by a global leaderOur Institutional Consultants are among the most highlycredentialed and experienced in the industry. In addition,UBS Financial Services Inc. is a part of UBS AG, oneof the world’s leading wealth management firms,with a 150-year heritage.The firm has a presence in 50 countries and significantoperations in all of the world’s major financial centers.Our relationship with youOur work ethic is simple and powerful. It is based on thevalue of collaboration. We work side-by-side with our clients,taking the time to understand their needs and goals. Thisdeep understanding, combined with the resources andthought leadership of UBS, lays the foundation for ourrelationship with you.UBS serves a diverse client base, including individuals,corporations, institutions and governments. Our primarymission remains focused on providing superior advice andwealth management to help all clients realize their visionof financial success.UBS Financial Services Inc. is a partof UBS AG, one of the world’sleading wealth managementfirms, with a 150-year heritage.8 of 9
123 Scorpio Partnership’s “Global Private Banking Benchmark 2018” rank of global wealth managers by assets under management. For more information,visit mark/. As of December 31, 2018; Institutional and Retirement Plan Consulting programs.As of 12/31/2018.UBS Institutional Consulting is an investment advisory program. Details regarding the program, including fees, services, features and suitability, are provided in the ADVDisclosure, available from your Financial Advisor or accessed at ubs.com/accountdisclosures.Generally, the IC program is designed for clients seeking: advice on the establishment of a strategic asset allocation and assistance in the development and review of aninvestment policy statement; to implement a medium- to long-term investment plan; to use the advice and guidance of an investment professional either in their self-directedaccounts or by delegating management of their assets to a portfolio manager and/or SMA Manager. The IC program offers two methods of delegating investment discretionto UBS: you may delegate investment discretion to your Institutional Consultant through use of the UBS Consultant Investment Discretion program (CID) or to our affiliate,UBS Asset Management, through the Outsourced Chief Investment Officer Program (“OCIO”). You may also elect to retain investment discretion within the IC program.This document is for informational purposes only and is not intended as, and should not be considered or construed to be, investment advice or legal advice. UBS and itsrepresentatives do not provide legal or tax advice. Clients are responsible for ensuring their compliance with applicable rules and regulations, including, where applicable,compliance with the Employee Retirement Income Security Act of 1974 (“ERISA”) and the Internal Revenue Code. Clients should consult with their tax and legal advisor foradvice regarding their precise duties, responsibilities and liabilities in specific situations.Our investment searches are limited to those for which the firm has conducted diligence. Neither UBS Financial Services Inc., UBS Asset Management nor your FinancialAdvisor will act as your investment advisor or discretionary manager with respect to investments that are excluded from or ineligible for the program, including investmentsthat have not been reviewed or recommended by UBS and those that are not available on your recordkeeper platform, where applicable. Investment restrictions will applyonly to those assets over which we or your investment managers have discretion in the CID or OCIO programs.The IC program is a fee-based investment advisory program but wrap-fee or “all-inclusive fee” pricing is available only for accounts held at UBS Financial Services Inc. The feefor accounts held away from UBS Financial Services Inc. is an asset-based fee but it is not a wrap-fee as it does not include custody or trading costs, which you may have topay for separately.Important information about advisory and brokerage servicesAs a firm providing wealth management services to clients, we offer both investment advisory and brokerage services. These services are separate and distinct, differ inmaterial ways and are governed by different laws and separate contracts. For more information on the distinctions between our brokerage and investment advisory services,please speak with your Financial Advisor or visit our website at ubs.com/workingwithus.Our investment advisory services are separate and distinct from our brokerage services and entail comprehensive, sophisticated or specialized asset allocation studies and analysisand portfolio evaluation and review services as an investment advisory service, for which we charge a separate fee. Depending on the services you select, you may find thatcomponents or variations of the individual services described in this Brochure are available to you outside of these Programs for more or less than you would pay in the program.For example, as a brokerage service, Financial Advisors can provide certain asset allocation modeling, mutual fund selection services and basic portfolio analytics to clients eitherfree of charge or for the 12b-1 payments we receive from your mutual funds.Compensation to SMA Managers in Other UBS Advisory Programs. UBS offers additional advisory programs, which offer some of the same SMA Managers for differentSMA Manager fees. The amount of the fee paid to each SMA Manager is a function of that SMA Manager’s investment style and the fee negotiated with the SMA Managereither by UBS (in our ACCESS and SWP Programs), by UBS on your behalf (in our CID Program) or by you (in our IC or MAC Programs). Depending on your asset level andability to negotiate the investment management fee with the SMA Manager in the dual-contract structure of the IC and MAC programs, you may find that the single-managerstructure in ACCESS and SWP provides a more cost-effective option or vice versa. You may elect to enroll in the ACCESS program while enrolled within the IC program (and besubject to the ACCESS fees, terms and conditions).Please discuss our various product offerings, their features and costs with your Financial Advisor for more information on the other available services.Fiduciary status under the Investment Advisers Act is different from fiduciary status under ERISA or the Internal Revenue Code. While in our investment advisory programswe act as a fiduciary under the Investment Advisers Act, we do not act as a fiduciary under ERISA or the Internal Revenue Code unless we expressly agree to do so in writing.Credentials, designations and registrations do not evaluate the quality of services provided to clients and are not indicative of future performance. Neither FINRA, the SECnor any other federal or state regulator approves or endorses any professional credential, designation or registration.CFA and Chartered Financial Analyst are trademarks owned by the CFA Institute. CIMA is a registered certification mark of the Investments & Wealth InstituteTM in theUnited States of America and worldwide. UBS 2019. All rights reserved. The key symbol and UBS are among the registered and unregistered trademarks of UBS. UBS Financial Services Inc.is a subsidiary of UBS AG. Member FINRA/SIPC. Exp.: 07/31/2020, IS1903246UBS Financial Services Inc.ubs.com/fs2019-1728859 of 9
The UBS Institutional Consulting Group offers guidance centered on your needs from experienced Institutional Consulting teams that are part of one of the world's leading wealth management firms.1 In our consulting role, we are driven to provide objective advice and creative strategies to address complex situations.
