NOTICE TO UBS CUSTOMERS WITH YES ACCOUNTS: KlaymanToskes Investigates Additional Losses Now Exceeding 30%

NEW YORK--(BUSINESS WIRE)--KlaymanToskes, www.klaymantoskes.com, continues its investigation into the Yield Enhancement Strategy (“YES”) recommended by UBS (NYSE:UBS) to its customers. Losses have increased to more than 30% for investors who continued the YES strategy through the recent market event precipitated by COVID-19. The investigation focuses on UBS’s sales practices in connection with the recommendation of the high-risk YES program for customers who sought conservative investments.

High net-worth investors seeking conservative investments to preserve their principal were encouraged to participate in the YES program and were told it was a low-risk overlay strategy to generate additional income. The YES program utilized an options strategy, known as the Iron Condor, which created the allusion of better returns or cash flow during periods of low volatility and generated hefty fees and commissions for UBS and its financial advisors. Recently, additional losses have been suffered by YES investors due to COVID-19 and the increased volatility in the market it has caused. Investors have eclipsed 30% in losses due to market volatility, up from 10% in December 2018. UBS characterized YES as a strategy that would have limited correlation to the market and as having downside protection. However, the YES strategy has shown significant correlation to the greater markets and limited downside protection.

The sole purpose of this release is to investigate whether the YES strategy employed by UBS was suitable for investors and whether UBS misrepresented its risks. Current and former investors with accounts at UBS who participated in YES, and have information relating to the manner in which the firm handled their portfolios, are encouraged to contact the attorneys of KlaymanToskes at [phone], or visit our firm’s website at www.klaymantoskes.com.

About KlaymanToskes

KT is a leading national securities law firm which practices exclusively in the field of securities arbitration and litigation, on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm represents high net-worth, ultra-high-net-worth, and institutional investors, such as non-profit organizations, unions, public and multi-employer pension funds. KT has office locations in California, Florida, New York, and Puerto Rico.

Destination: https://klaymantoskes.com/notice-to-ubs-customers-with-yes-accounts-klaymantoskes-investigates-additional-losses-now-exceeding-30-percent/