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Ubs Profits Double as Investors in Ubs’s Yield Enhancement Strategy Suffer Losses
Today, UBS Group AG announced that its net profit almost doubled in the third quarter to nearly $2.1 billion from $1.05 billion from a year earlier.
Meanwhile, as UBS and other large investment banking firms continue to rake in huge profits, UBS’s Yield Enhancement Strategy investors continue to suffer avoidable losses.
UBS’s Yield Enhancement Strategy, or YES, is a complex managed options strategy that UBS marketed as a safe, market-neutral overlay that would provide incremental returns to an investor’s portfolio.
UBS brokers sold this product to customers across the country. It is believed that nearly 1,500 customers chose to follow their financial advisors’ recommendations and implement this strategy. The strategy reportedly had approximately $6 billion assets under management.
Unfortunately, many UBS financial advisors did not adequately understand the product and failed to disclose the risk associated with YES. Investors have complained that they were misled and that their financial advisors never discussed the downside risk associated with implementing the strategy.
The strategy, which involved the use of several options trades and borrowing, has sustained significant losses when the stock and bond markets saw an increase in volatility beginning in early 2018. It is believed that investors have suffered at least $75 million in losses, likely significantly more.
Many of these aggrieved investors have filed lawsuits against UBS in the form of FINRA arbitrations claiming that the strategy was not suitable for them and that UBS materially misrepresented and omitted the risks associated with the product.
Investors who have suffered investment losses due to UBS’s Yield Enhancement Strategy should contact New York securities arbitration attorney August Iorio of Iorio Law PLLC. August Iorio can be reached at info@iorio.law or toll-free at (646) 330-4624 for a free and confidential review of your legal rights.
About Iorio Law PLLC
Iorio Law PLLC is a securities arbitration law firm located in New York, NY. We represent investors nationwide and vigorously pursue FINRA arbitration claims on behalf of investors to recover investment losses.
We have over 15 years of experience as securities arbitration lawyers and have helped investors recover investment losses in over 800 cases. The firm will file a FINRA securities arbitration claim on your behalf on a contingency fee basis to try to recover your losses. If we do not obtain a recovery, you do not owe us a legal fee.
This blog was published by August Iorio when he was a Partner at his previous firm and has been updated to reflect Iorio Law PLLC’s new contact information. To evaluate any potential claims, contact securities arbitration lawyer August Iorio for a free consultation contact Iorio Law PLLC at info@iorio.law or (646) 330-4624.