Franklin Templeton extends SMA offerings to UBS platforms

Franklin Templeton extends SMA offerings to UBS platforms
The partnership aims to provide advisors with more opportunities to personalize client portfolios and enhance their after-tax returns.
JUN 28, 2024

Franklin Templeton is expanding its SMA offerings to UBS’s advisory network.

On Wednesday, the asset manager announced that it has introduced a new range of tax-managed SMA strategies on UBS Wealth Management’s single and dual contract SMA platforms.

This suite, encompassing both active and passive SMAs, allows UBS advisors to utilize Canvas, Franklin Templeton’s custom indexing solution, aimed at enhancing after-tax returns through personalized portfolios.

“Active strategies are built to generate excess return, but if the capital gains taxes they generate are not managed carefully, their after-tax returns can be significantly impacted,” Roger Paradiso, head of advisor portfolio and technology solutions at Franklin Templeton, said in a statement.

Paradiso highlighted the “promising development” from integrating the processes of direct and custom indexing with active management for the wealth industry, particularly when it comes to the wirehouse and broker-dealer segments.

The new offerings under the partnership leverage Canvas’ technological capabilities alongside Franklin Templeton’s global equity specialist manager, ClearBridge Investments.

The newly launched tax-managed strategies under the partnership, which enables advisors to offer customized portfolios with fully digital account implementation and management, include:

  • ClearBridge Large Cap Growth – Canvas Tax Managed
  • ClearBridge All Cap Growth – Canvas Tax Managed
  • ClearBridge Dividend Strategy – Canvas Tax Managed
  • Franklin Templeton S&P 500 – Canvas Tax Managed

To complement the Canvas offerings, Franklin Templeton is also rolling out two strategies from its Franklin Managed Options Strategies (Franklin MOST) team at UBS:

  • Franklin MOST Managed Call Selling
  • Franklin MOST Risk Managed Equity

As of March 31, 2024, Franklin Templeton managed over $137 billion in SMA assets.

On Wednesday, BlackRock also revealed plans to boost its growing custom models business, which includes direct indexing and fixed income SMAs, through a partnership with fintech firm GeoWealth.

SMAs could see a broader bump in adoption among advisors over the next year, according to a February survey from Escalent Financial Services.

According to that report, 22 percent of financial advisors see themselves raising allocations to model portfolios, while the average allocation to SMAs is expected to rise from 18 percent currently to 26 percent by 2025. High-net-worth advisors are anticipated to lead the trend, with average SMA allocations in that group projected to rise from 23 percent to 31 percent.

“The extent to which advisors employ model portfolios and SMAs has the potential to significantly impact how asset managers operate within the wealth management industry,” Meredith Lloyd Rice, vice president at Escalent, said in a statement at the time.

“For advisors serving high-net-worth clients, customization and tax management is key, and this is one of the factors fueling the growth of SMAs and direct indexing,” Lloyd Rice said.

Latest News

SEC bars ex-broker who sold clients phony private equity fund
SEC bars ex-broker who sold clients phony private equity fund

Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.

The key to attracting and retaining the next generation of advisors? Client-focused training
The key to attracting and retaining the next generation of advisors? Client-focused training

From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.

Chuck Roberts, ex-star at Stifel, barred from the securities industry
Chuck Roberts, ex-star at Stifel, barred from the securities industry

"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.

SEC to weigh ‘innovation exception’ tied to crypto, Atkins says
SEC to weigh ‘innovation exception’ tied to crypto, Atkins says

Chair also praised the passage of stablecoin legislation this week.

Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest
Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest

Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.