UBS will gain access to the asset manager's risk management and portfolio construction tools.

The world’s largest wealth manager UBS has partnered with BlackRock Solutions, the world’s largest listed asset manager. The partnership will see UBS gain access to BlackRock’s technology platform Aladdin Risk for Wealth Management (ARWM).

UBS said it will be the first wealth manager in the US to use Aladdin’s risk management and portfolio construction tools.

UBS will use ARWM to analyze portfolios with the same risk and return analytics that BlackRock Solutions provides to institutional investors around the world. UBS said BlackRock Solutions has adapted the platform to suit the needs of UBS and its clients. 

Risk platform Aladdin is a multi-asset analytics engine that can analyze portfolios consisting of stocks, bonds, mutual funds, ETFs, options and structured products using a factor-based approach. Aladdin will start this summer initially to advisors managing discretionary portfolios at UBS and will later expand to a larger pool of financial advisors and client portfolios.

“Aladdin will enable our home-office to better understand the risks in client’s portfolios, and to enhance their guidance to advisors by deploying this sophisticated, multi-asset analytics engine,” said Brian Hull, head of UBS Wealth Management client advisory group.

UBS said the partnership with BlackRock is part of its “larger digital strategy” for Wealth Management Americas to “develop customized digital tools that will enhance and expand services to clients”.