Digest June 2nd

UBS Shuts Down Robo-Advisor, Signaling Shift Toward Hybrid Models

UBS is closing its digital-only robo-advisor, UBS Advice Advantage, by June 2025, transitioning clients to UBS Access, which offers managed accounts with advisor support. This move reflects a broader industry trend, as major banks like JPMorgan Chase and Goldman Sachs have also exited pure digital advisory platforms due to profitability challenges. The industry is increasingly favoring hybrid models that combine automated investing tools with human advisors, as seen with Vanguard’s successful hybrid offering. Benefits Pro

Empower to Introduce Private Investments in 401(k) Plans

Empower, a major U.S. retirement services provider managing $1.8 trillion for about 19 million savers, is set to introduce private investments into employer-sponsored retirement plans later in 2025. In collaboration with top asset managers like Apollo, Franklin Templeton, and Goldman Sachs, Empower seeks to broaden retirement portfolio options to include private equity, private credit, and private real estate. These offerings will be available through Collective Investment Trusts (CITs) to help control fees and improve liquidity. Plan sponsors must work with financial advisors to ensure these investments align with employees’ risk tolerance and long-term goals. Barron’s

Charles Schwab Launches Program to Support Advisors Going Independent

Charles Schwab is introducing Schwab Advisor ProDirect in July 2025, a program designed to assist financial advisors with $50 million to $300 million in client assets in establishing their own independent registered investment advisory (RIA) firms. The initiative offers comprehensive support, including business setup assistance, technology solutions, marketing, compliance, and human resources, through vetted third-party providers at discounted rates. This move aims to streamline the transition process for advisors seeking independence and to fill a gap in services for those with modest asset levels. Charles Schwab