Ubs Group Ag · SIX:UBSG
Ubs — Investor Day (November 2009)
18 slides from Ubs's investor day presentation, Nov 17, 2009
Slide 1: Global Asset Management
Global Asset Management John Fraser, Chairman and CEO Global Asset Management Investor Day – November 17, 2009
Slide 2: Cautionary statement regarding forward-looking statements
Cautionary statement regarding forward-looking statements This presentation contains statements that constitute “forward-looking statements”, including but not limited to management’s outlook for UBS’s financial performance and statements relating to the anticipated effect of transactions and strate
Slide 3: Key messages
Key messages 1. Global AM is a large-scale asset manager with well diversified businesses across regions, capabilities and distribution channels 2. Going forward, we will monetize our strong investment performance by expanding our third-party business, further strengthening our Wealth Management coo
Slide 4: Global AM as a diversified asset manager
Global AM as a diversified asset manager ♦ Highly dependent on Value Equities ♦ Distribution mainly via WM Global AM in 2002 2002 2009 Lessons from Determined effort Completing the 1990s to diversify diversification ♦ Global AM must not ♦ Broadened investment capabilities ♦ Increase third-party be o
Slide 5: Balanced set of capabilities
Balanced set of capabilities Invested assets of CHF 583 billion Money Market Alternatives 30 September 2009 ♦ #17/70 in US institutional ♦ #1/117 globally in hedge and #9/109 in US retail funds (Sept 2009) (Sept 2009, AuM based) Fixed Income Real Estate ♦ Strong Swiss and Euro ♦ #6/103 globally base
Slide 6: Global AM businesses operating as boutiques
Global AM businesses operating as boutiques Equities Fixed Alternative & Global Real Global Infrastructure Fund Income Quantitative Estate Investment and Private Services Investments Solutions Equity Core/Value Global Single manager Global Global Direct Alternative funds Global hedge funds infrastru
Slide 7: Global AM's profitability
Global AM’s profitability 1.7 76% 76% 74% 68% 1.3 60% 59% 59% 1.2 Performance before tax and amortization of goodwill 1.0 57% Cost/income ratio (%) before amortization of goodwill 0.6 0.5 0.4 0.4 (CHF billion) 2002 2003 2004 2005 2006 20071 20082 9M09 annualized3 Notes: On 1 January 2008 UBS adopted
Slide 8: Key messages
Key messages 1. Global AM is a large-scale asset manager with well diversified businesses across regions, capabilities and distribution channels 2. Going forward, we will monetize our strong investment performance by expanding our third-party business, further strengthening our Wealth Management coo
Slide 9: Global AM strategy
Global AM strategy A Monetize strong investment performance B Grow third-party institutional and wholesale business… C …while participating in Wealth Management’s return to growth D Capitalize on already established emerging market positions 8
Slide 10: Improved performance in key strategies
A Improved performance in key strategies Performance against benchmark + Above benchmark Current performance Before performance recovery 30 September 2009 30 June 2008 – Below benchmark Annualized Annualized 3 months 1 year 3 years 5 years 3 months 1 year 3 years 5 years Australian Equity Composite
Slide 11: Net new money
A Net new money Net new money through non- Wealth Management channels Selected recent inflows CHF million CHF billion Middle Eastern Sovereign (Asia ex Japan) Equities 534 July 2009 US hedge fund (cash and liquidity) Fixed Income 1,429 3.3 Middle Eastern Sovereign (Asia ex Japan) Equities 424 Aug 20
Slide 12: Expanding the third-party business
B Expanding the third-party business Focus on execution, monitoring and accountability to deliver NNM Current situation Growth strategy ♦ Global AM has ♦ Provide full investment management services institutional expertise to clients and significant assets – Continue to position Global Investment und
Slide 13: Strengthening the partnership with Wealth Management
C Strengthening the partnership with Wealth Management Participate in WM’s return to growth Current situation Growth strategy ♦ Global AM products are ♦ Closer integration of product development successfully distributed and management across traditional and through WM’s advisory alternative asset cl
Slide 14: Capitalizing on emerging market opportunities
D Capitalizing on emerging market opportunities Current situation Growth strategy ♦ UBS SDIC joint venture, ♦ Capitalize on strong strategic positioning established in 2005 to capture mutual fund flows ♦ Develop products that utilize Global AM’s China diverse capabilities and tailor them to local ♦
Slide 15: Key messages
Key messages 1. Global AM is a large-scale asset manager with well diversified businesses across regions, capabilities and distribution channels 2. Going forward, we will monetize our strong investment performance by expanding our third-party business, further strengthening our Wealth Management coo
Slide 16: Delivering profit from revenue
Delivering profit from revenue Targeting a cost/income ratio of 50-60% through a highly leveraged model… 100% Key drivers 90% Industry margin Outflows pressure 76% 80% Head- Third- Higher Perfor- Market party count margin mance uplift asset control products fees 70% growth 60% 57% Target cost/income
Slide 17: Global AM's medium-term financial goals
Global AM’s medium-term financial goals Operating income Profit before tax (CHF billion) >3.0 (CHF billion) 2.1 C/I 76% 1.3 0.5 C/I 50-60% 9M09 Medium-term 9M09 Medium-term annualized1 target annualized1,2 target Additional key financial considerations ♦ Proportion of third-party business to increas
Slide 18: Disclaimer
Disclaimer This presentation and the information contained herein is provided solely for information purposes, and is not to be construed as a solicitation of an offer to buy or sell any securities or other financial instruments in Switzerland, the United States or any other jurisdiction. No investm