UBS Group AG · SIX:UBSG
UBS — UBS Asset Management — Investor Day (December 1999)
21 slides from UBS's investor day presentation, Dec 14, 1999
Slide 1: UBS Investors' Day Asset Management
ab UBS Investors’ Day Asset Management Peter A. Wuffli 14 December 1999
Slide 2: Contents
Contents Section 1 Opportunities and Challenges Section 2 Our Approach Section 3 Implementation ab Asset Management 1
Slide 3: Opportunities and Challenges
Opportunities and Challenges SECTION 1 ab Asset Management
Slide 4: Attractive Market Opportunities
Attractive Market Opportunities Overall growth rate: 9% p.a. 16 14 13.4 12 11.3 10.3 9.7 10 US$ trillion 8 7.0 6.4 6 4 2 0 Pension Assets Insurance Assets Mutual Funds Growth: 7% p.a. Growth: 8% p.a. Growth: 12% p.a. 1997 2002E Source: InterSec Research Corp., 1998 ab Asset Management 3
Slide 5: A Strong Global Platform
A Strong Global Platform UBS Assets under Management Market Relative Staff (CHF 355 billion) (1) Share Position of which (%)(2) U.S. 113 1.3 Top 10 550 (active) U.K. 112 7.6 Top 3 450 Switzerland 42 23.3 No. 1 280 Japan 32 2.1 Top 5 120 (foreign) Australia 11 5.9 Top 10 50 Notes: 1 Institutional Ass
Slide 6: A Diverse Asset Base
A Diverse Asset Base Institutional Assets under Management by Client Mandate (CHF 355 billion) (1) Private Markets 5% Fixed Income 25% Asset Allocation 37% Equity 33% Note: 1 As of 30 September 1999 ab Asset Management 5
Slide 7: Diversified Capabilities
Diversified Capabilities Equity Asset Allocation ♦ Global ♦ Global Balanced ♦ Country/Regional ♦ Global Frontier Portfolio ♦ Emerging Markets ♦ Country/Regional Balanced ♦ Specialized Sector Funds ♦ Capital Preservation Portfolios ♦ Structured Investments Fixed Income Private Markets ♦ Global ♦ Dire
Slide 8: Current Macro Trends Play To Our Strengths
Current Macro Trends Play To Our Strengths Trend UBS Asset Management Position Globalization ++ Global scope and presence Consolidation ++ Scale and breadth Differentiation of ++ Client-service skills investor needs Financial market + Broad investment capabilities, yet performance complexity issues
Slide 9: Challenging Financial Performance
Challenging Financial Performance Nine Months Ended Nine Months Ended CHF million 30 September 1999 30 September 1998 Operating Income 811 868 Expenses – Personnel, general and 472 486 administrative – Depreciation and 103 87 amortization Total Expenses 575 573 Performance before Tax 236 295 Cost/In
Slide 10: Merger-driven Client Attrition
Merger-driven Client Attrition Institutional Assets Under Management (CHF billion) 373 (35) +17 355 01.01.98 Merger-Driven Net New Business 30.09.99 Client Attrition and Market Appreciation ab Asset Management 9
Slide 11: Mixed Investment Performance Track Record
Mixed Investment Performance Track Record Selected UBS Asset Management Rationale Asset Classes Position Fixed Income Top third (2) Cash Management Top third (2) Private Equity Top third (2) Real Estate (1) Top third (2, 3) Non-U.S. Equity (4) Middle third (3) U.S. Equity Middle third (2) Stock sele
Slide 12: Challenging Task
Challenging Task Profit growth momentum in line with industry within three years ab Asset Management 11
Slide 13: Our Approach
Our Approach SECTION 2 ab Asset Management
Slide 14: Our Approach
Our Approach BECOME THE PREMIER GLOBAL INSTITUTIONAL ASSET MANAGEMENT FIRM ♦ Minimum top five market share position in core markets ♦ Top third position in long-term investment performance ♦ Profit growth momentum in line with industry ♦ Recognized thought leader and trend setter Measures to protect
Slide 15: Measures to Protect and Strengthen Client Franchise
Measures to Protect and Strengthen Client Franchise ♦ Continue dedicated efforts to improve investment performance — adhere to philosophy and process — review execution ♦ Focus on core clients with potential for long-term partnership ♦ Tailor investment performance risk to client risk appetite ♦ Int
Slide 16: Targeted Growth Initiatives
Targeted Growth Initiatives Europe ♦ Focus on Germany, France, Italy ♦ Develop client-driven new portfolio offerings — e.g. strategic asset allocation ♦ Offer outsourcing solutions for banks and life insurance companies (jointly with UBS Private Banking’s Investment Funds unit) Japan ♦ Strengthen pl
Slide 17: Investment Capability Expansion
Investment Capability Expansion Real Estate ♦ Leverage newly acquired Allegis with U.S. client franchise ♦ Capture opportunities for global expansion Alternative Asset Management ♦ Expand these capabilities to meet increased client demand ♦ Combination of Alternative Asset Management capabilities ac
Slide 18: Implementation
Implementation SECTION 3 ab Asset Management
Slide 19: Implementation Via a Client-Centric Business Model
Implementation Via a Client-Centric Business Model ... CORE MARKETS Elements Americas Asia Non-U.K. U.K. Europe Client & Account Management ♦ Predominantly local/regional ♦ Some global segments emerging Delivery Platform ♦ Local/regional execution and Process ♦ Global standards & local/regional syst
Slide 20: Reflected in Six Business Areas
… reflected in Six Business Areas Distinct entrepreneurial mandates UBS Brinson / Europe, Middle East Philips & Drew Asia / Pacific Brinson Partners and Africa ♦ Optimize contribution ♦ Optimize contribution ♦ Capture profitable ♦ Capture profitable from the Americas from the UK growth opportunities
Slide 21: Managing the Division Based on Shared Values
Managing the Division Based on Shared Values ♦ Client-centric approach ♦ Partnership culture ♦ Entrepreneurial spirit ♦ Accountability and meritocracy ♦ Professionally stimulating environment ♦ Honesty, integrity, openness ab Asset Management 20