Global Asset Management

Infrastructure

Global Asset Management established its infrastructure business, Infrastructure Asset Management (IAM), in 2006. As governments around the world increasingly look towards securing private sector participation, opportunities are opening up to invest alongside major contractors and operators in world-class projects, which provide attractive risk-adjusted returns. IAM's objective is to capture these opportunities and the flagship private placement International Infrastructure Fund had, by its second closing in February 2008, raised a total of USD 720 million and is on track to meet its target by fund close date.

Further expanding its infrastructure offering, Global Asset Management announced in February 2008 a joint venture with the Abu Dhabi Investment Company (ADIC), a leading financial services firm in the Middle East, to develop, promote and manage infrastructure investment funds focused on the Middle East and North Africa. The venture's first private placement is targeting USD 500 million of investment and will focus on making equity and quasi-equity investments in projects related to utilities, transport, social and energy infrastructure.

UBS estimates that the Middle East and North Africa region will witness up to USD 500 billion of investment over the next ten years across key infrastructure sectors and, in particular, the transport and utilities sectors.

Active quantitative equities

Diversification and expansion of its equities business is an ongoing strategy of Global Asset Management. In March 2008, UBS announced that it had hired a head for the new active quantitative equities group within its structured equities team.