UBS Yield Enhancement Strategy

Aidikoff, Uhl & Bakhtiari is investigating the sale of the Yield Enhancement Strategy (“YES”) recommended by financial advisors to UBS customers. The investigation focuses on UBS sales practices and representations made in connection with the recommendation of the UBS YES program for fixed income customers.

UBS’s Yield Enhancement Strategy (“YES”) reportedly had over $5 billion under management with more than 1,200 investors. Investors in the UBS YES program agreed to commit capital to the program in the form of cash or other securities. The capital collateralized options trading in an investor’s account. Primarily marketed to fixed income investors, the bonds merely provide collateral for the options trades.

High net-worth investors seeking conservative investments to preserve their principal were encouraged to participate in the YES program. The firm is believed to have told prospective customers that UBS YES was a low-risk strategy employed to generate additional income.

The YES program utilized an options strategy, known as the Iron Condor, which created the appearance of better returns or cash flow during periods of low volatility and generated hefty fees and commissions for UBS and its financial advisors.

In December 2018, the CBOE Volatility Index reached its highest level since 2011 and losses began piling up for investors in the YES program. If you were a purchaser of UBS Yes, please contact us for an evaluation of your specific facts and circumstances.