Key Takeaways
- • Wells Fargo's Wealth & Investment Management (WIM) division, working with wealth technology firm InvestCloud, now allows alternative investments as an eligible holding in its Personalized Unified Managed Account (Personalized UMA) program.
- • The change lets advisors and qualified clients hold traditional and alternative investments in a single account, which WIM describes as one of the first large wirehouses to offer this capability at scale.
- • Eligible alternatives include liquid alternative mutual funds and private funds such as hedge funds, managed futures, private equity, and private debt, along with certain real assets such as private real estate.
- • WIM frames the move as a response to rising client demand for alternatives and as a way to build more resilient portfolios through diversification.
Summary
Wells Fargo's Wealth & Investment Management division has added alternative investments as an eligible investment within its Personalized Unified Managed Account (Personalized UMA) program, in collaboration with InvestCloud. According to the announcement, the move positions WIM as one of the first large wirehouses to make alternatives available at scale within a UMA structure. The company said the change gives advisors and clients more choice by allowing a broader range of investment types in a single account.
The offering is positioned as a response to ever-increasing client demand for alternative investments. Alternatives, as defined in the announcement, extend beyond traditional stocks, bonds and cash to include hedging and arbitrage techniques, derivatives, long and short positions, and investments in private offerings and global markets. Eligible vehicles can include alternative mutual funds (liquid alternatives), private funds such as hedge funds, managed futures, private equity and private debt, and certain real assets, including private real estate. Availability is limited to qualifying clients where suitable.
Greg Maddox, WIM Investment Solutions product management executive, said the firm is committed to personalized, scalable and data-driven client experiences. Jeff Yabuki, chairman and CEO of InvestCloud, said the company is delivering innovations that enable a personalized wealth management experience and enhance the client-advisor relationship. Darrell Cronk, WIM chief investment officer, said diversification has generally been an effective strategy for managing portfolio risk and return, and that investors are seeking more resilient portfolios. Wells Fargo Investment Institute's Alternative Thinking report is referenced for further detail.
The offering is positioned as a response to ever-increasing client demand for alternative investments. Alternatives, as defined in the announcement, extend beyond traditional stocks, bonds and cash to include hedging and arbitrage techniques, derivatives, long and short positions, and investments in private offerings and global markets. Eligible vehicles can include alternative mutual funds (liquid alternatives), private funds such as hedge funds, managed futures, private equity and private debt, and certain real assets, including private real estate. Availability is limited to qualifying clients where suitable.
Greg Maddox, WIM Investment Solutions product management executive, said the firm is committed to personalized, scalable and data-driven client experiences. Jeff Yabuki, chairman and CEO of InvestCloud, said the company is delivering innovations that enable a personalized wealth management experience and enhance the client-advisor relationship. Darrell Cronk, WIM chief investment officer, said diversification has generally been an effective strategy for managing portfolio risk and return, and that investors are seeking more resilient portfolios. Wells Fargo Investment Institute's Alternative Thinking report is referenced for further detail.
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