Unionbanc Investment Services
Unionbanc Investment Services, LLC (UBIS) is distinctive in that it operates as both a registered broker-dealer and an investment advisor.
The financial advisor, which is based in Glendale, California, a Los Angeles suburb, has billions in assets under management (AUM). UBIS is a fee-based firm, so it earns compensation both from the services it provides and the products it sells.
UnionBanc Investment Services Background
UBIS is a registered investment advisor (RIA) and subsidiary of MUFG Union Bank, N.A. Mitsubishi UFJ Financial Group, Inc. is the parent company of both UBIS and Union Bank.
This firm has been in business as a broker-dealer since 1983. In 1999, UBIS began providing investment advisory services.
UnionBanc Investment Services Client Types and Minimum Account Sizes
UnionBanc serves individuals who do not have a high net worth, high-net-worth individuals, pension and profit-sharing plans, charitable organizations, insurance companies, corporations and businesses.
The firm’s minimum varies for different account types. When it comes to the firm’s Managed Account Solutions (MAS) program, it requires a minimum of $10,000 for Wealthbuilder accounts. Fund Strategist Portfolio (FSP) accounts come with a minimum of $50,000, $100,000 for Separately Managed Account Sub-programs (SMAs), while Unified Managed accounts (UMAs) come with a $150,000 minimum account size requirement.
Services Offered by UnionBanc Investment Services
UnionBanc provides the following advisory services:
- Portfolio management
- Selection of other advisors (including private fund managers)
UnionBanc Investment Services Investment Philosophy
Before offering customized allocations, UBIS assesses each client’s investment objectives, goals and income needs, risk tolerance, time horizon and other financial information, according to its brochure. The firm uses Envestnet to allocate clients’ assets among investment options.
UBIS primarily invests in exchange-traded equity securities, bonds, securities issued by registered investment companies and cash and cash equivalents.
UnionBanc Investment Services Fees
UBIS offers several fee schedules for its investment programs. Fees for Evestnet Overlay Management Services range from 0.05% to 0.10%, while the firm's Wealthbuilder program includes a 1.25% fee.
See the fee schedules for UBIS' other investment programs below:
| Fund Strategist Portfolio Sub-program | ||
| Account size | Program fee | FA fee |
| First $250,000 | 1.07% - 2.39% | 0.90% - 1.75% |
| Next $250,000 | 0.92% - 2.07% | 0.75% - 1.50% |
| Next $500,000 | 0.81% - 1.79% | 0.65% - 1.25% |
| Next $1,000,000 | 0.70% - 1.67% | 0.55% - 1.15% |
| Next $3,000,000 | 0.65% - 1.52% | 0.50% - 1.00% |
| Over $5,000,000+ | 0.65% - 1.50% | 0.50% - 1.00% |
| Separately Managed Account Program | ||
| Account size | Program fee | FA fee |
| First $250,000 | 1.69% - 2.54% | 0.90% - 1.75% |
| Next $250,000 | 1.48% - 2.23% | 0.75% - 1.50% |
| Next $500,000 | 1.34% - 1.94% | 0.65% - 1.25% |
| Next $1,000,000 | 1.21% - 1.81% | 0.55% - 1.15% |
| Next $3,000,000 | 1.14% - 1.64% | 0.50% - 1.00% |
| Over $5,000,000+ | 1.11% - 1.61% | 0.50% - 1.00% |
| Unified Managed Account Program | ||
| Account size | Program fee | FA fee |
| First $250,000 | 1.25% - 2.10% | 0.90% - 1.75% |
| Next $250,000 | 1.10% - 1.85% | 0.75% - 1.50% |
| Next $500,000 | 0.90% - 1.50% | 0.65% - 1.25% |
| Next $1,000,000 | 0.76% - 1.36% | 0.55% - 1.15% |
| Next $3,000,000 | 0.69% - 1.19% | 0.50% - 1.00% |
| Over $5,000,000+ | 0.62% - 1.12% | 0.50% - 1.00% |
Learn more about advisors' typical costs here.
What to Watch Out For
UBIS has 9 disclosures listed on its Form ADV. In 2013, the state of New York fined a UBIS affiliate, Bank of Tokyo-Mitsubishi UFJ (BTMU) $250 million for conducting billions of dollars of transactions for governments and private bodies in Iran, Sudan and Myanmar. The next year the state fined BTMU $315 million for watering down a report about transactions involving Iran and other sanctioned countries
Potential investors should also consider the firm’s commission-based compensation arrangements. When advisors sell investment products for commissions, they may become incentivized to favor products with higher fees. Though UBIS is a fiduciary, this is important to keep in mind.
Opening an Account with UnionBanc Investment Services
You can set up an account with UBIS by visiting any of the firm’s offices, or you can contact a financial advisor at (800) 634-1100.
All information is accurate as of the writing of this article.
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