Swiss bank UBP (Union Bancaire Privée) has picked Guggenheim Fund Solutions (GFS) as a partner in a new hedge fund platform which aims to meet investors' increasingly stringent demands regarding transparency, liquidity, risk management and governance.
Following its acquisition and integration of Nexar, Union Bancaire Privée, UBP SA has launched an alternatives division which combines innovative investment structures with a new level of fund administrative support.
Geneva-based UBP utilizes its extensive 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 for its experience operating managed accounts across the full spectrum of hedge fund strategies. The portal delivers a high level of transparency that supports UBP's portfolio construction, risk-management and on-going monitoring processes, the bank said.
Independent valuation, administration and custody facilitate daily risk transparency which in turn supports the regulation-compliant investment formats such as AIFMD, Basel III & Solvency II that are increasingly important to clients, UBP said.
They have secure daily access to valuations and position-based aggregated risk reporting. UBP and Guggenheim have combined their price scales to provide competitive fee arrangements and cost-efficiency at all levels.
Arié Assayag (pictured), CEO of UBP Alternative Investments, said hedge fund managers are still best positioned to deliver absolute or asymmetric returns and to implement the tail hedging strategies sought by clients.
The new partnership offers "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."
Private bank UBP specialises in wealth management for both private and institutional clients. It is based in Geneva and employs around 1,300 staff in some 20 locations worldwide. The Bank has a Tier 1 capital ratio of 25.7%.At end- December 2012 it had CHF80bn in assets under management.
Guggenheim Partners, LLC, headquartered in New York and Chicago, is a privately held global financial services firm with more than $170bn in assets under management, including consulting services for clients with assets of approximately $37bn.
The firm provides asset management, investment banking and capital markets services, insurance, institutional finance and investment advisory solutions to institutions, governments and agencies, corporations, investment advisors, family offices and individuals.
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