Wells Fargo has incorporated alternative investments into their managed accounts, extending their investment offerings.
Wells Fargo's Wealth & Investment Management (WIM) division has taken a significant step forward in providing a more tailored wealth management experience for clients. In collaboration with InvestCloud, WIM is now offering alternative investments as an eligible investment in its Personalized Unified Managed Account (Personalized UMA) program.
Greg Maddox, WIM Investment Solutions product management executive, stated that they are committed to providing new technologies that deliver personalized, scalable, and data-driven client experiences. This move demonstrates WIM's market leadership as one of the first large wire houses to make this option available at scale.
Alternative investments go beyond traditional investments (stocks, bonds, and cash) to provide qualified clients with hedging and arbitrage techniques, derivatives, long and short positions, and investments in private offerings and global markets. These alternative investments can include alternative mutual funds (liquid alternatives), private funds (hedge funds, managed futures, private equity, and private debt); and certain real assets, such as private real estate.
The new capability simplifies the advisor and client experience by allowing more investment types in a single account. This means that both traditional and alternative investments can now be held within WIM's Personalized UMA structure, ensuring portfolios are tailored to specific client needs.
Darrell Cronk, the chief investment officer for WIM, stated that diversifying investments or asset classes has been an effective strategy to manage a portfolio's risk and return profile. The addition of alternative investments to the Personalized UMA program provides clients with access to a wider range of investment opportunities.
Jeff Yabuki, chairman and CEO of InvestCloud, expressed excitement about partnering with Wells Fargo to further elevate their investment capabilities with cutting-edge technology, tools, and resources. This collaboration aims to enhance the client-advisor relationship by delivering an exceptional and personalized wealth management experience.
Reviewing Wells Fargo Investment Institute's Alternative Thinking report can provide more information on these investments. WIM is dedicated to developing new strategies and tools to help investors build more resilient portfolios.
This expansion allows WIM's clients and advisors to collaborate more closely, ensuring portfolios are tailored to specific client needs. The collaboration between Wells Fargo and InvestCloud continues to elevate Wells Fargo's investment capabilities with cutting-edge technology, tools, and resources, as expressed by Jeff Yabuki.
In conclusion, the Personalized UMA structure, in collaboration with alternative investments, aims to provide a more tailored wealth management experience for clients. This move by WIM to include alternative investments in its Personalized UMA program further demonstrates its market leadership in offering diverse investment options at scale.
