Some investors in UBS Group AG's investment strategy, Yield Enhancement Strategy, have filed arbitration claims after allegedly losing money in the program, The Wall Street Journal reported.
Marketing materials showed that the strategy involved the use of several option trades and borrowing. With intensified volatility in the stock and bond markets, the program faltered.
The program, which was pitched as low-risk, generated at least $60 million in losses for customers, triggering more than 24 customer complaints, a lawyer for the investors reportedly said.
A UBS spokesman, however, told the news outlet that clients had acknowledged in writing that significant market movements could result in losses, adding that only a small percentage of the investors have filed arbitration claims.
