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|  We remain committed to the strategy that UBS has pursued over recent years. In particular, we believe that by working together, as an integrated Group, our businesses can create real added value for our clients and our shareholders.
The benefits of our integrated model have never been more clear than in 2001. In particular, the merger with PaineWebber has highlighted the many different ways in which our businesses can gain from their association with each other. UBS PaineWebber clients have bought structured products developed by UBS Warburg. UBS Asset Management has launched Private Wealth Solutions, an innovative managed account program geared especially towards the needs of UBS PaineWebber’s high net worth clientele.
Most significantly,
UBS PaineWebber has contributed its skills and experience to help drive the transformation of our wealth management business in Europe. Since the strategy was launched, just over a year ago, we have hired nearly 250 new client advisors in our five target countries (France, Germany, Italy, Spain and the UK), launched two new flagship open architecture investment products, introduced new recruitment and training programs, started to roll-out a state of the art IT infrastructure, opened five new offices and attracted CHF 5.6 billion in net new money.
The benefits of the addition of UBS PaineWebber can also be seen in the development of UBS Warburg’s corporate finance business. The merger positioned UBS Warburg as an employer of choice in the US, by further demonstrating UBS Group’s commitment to the world’s largest market and establishing a solid platform from which to expand our presence. Over the last eighteen months we have taken advantage of this opportunity to build our corporate finance capabilities, hiring some of the most experienced and talented individuals in the industry. Organically building our franchise in this way will not result in overnight success. We expect it to take two or three years for the new hires we have made and the new teams we are developing to reach full productivity and generate substantial returns. Despite this, we have already achieved significant results, dramatically improving our share of corporate finance fees compared to prior years.
UBS is dedicated to succeeding in wealth management. The secular trends affecting the investment world make wealth management the most attractive segment in the financial industry. As individuals continue to increase their reliance on equity investments, to support their pension provision and their personal savings, the demand for wealth management products and services will increase. This growth is expected to be highest among our core affluent target market.
We are already the leader in the field, with the highest market share in wealth management worldwide. Combining the best of two worlds – US investment firm and global private bank – our wealth management businesses employ over 11,000 client advisors and manage CHF 1.5 trillion of invested assets. Our presence in offices across the world allows us to serve our clients seamlessly wherever they want to bank with us, from Dallas to Monaco or Taipei. We have one of the best known private banking brands globally, and the strong balance sheet and high credit ratings which continue to be important for our clients.
Finally, we have an enviable product and service offering, with our own deep expertise
backed up by a genuine commitment to open architecture. We augment our in-house range with a quality-screened selection of third-party products, so that we can offer our clients the products and services that reflect the very best financial solutions for each one of them individually.
Wealth management is a profitable business, with low capital requirements, a stable revenue base and high barriers to entry, thanks to the breadth and depth of products and services that today’s demanding clients require. We believe that our continued focus on delivering a truly outstanding individual service to our clients will continue to lead us to our goal: to be the wealth manager of choice for private clients in every market worldwide.
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