Business opportunities do not respect artificial demarcation lines between Business Groups. Our clients should be able to
access all the services our firm can provide, where and when they are required, and regardless of what combination of teams
work on the solutions. This "one firm" approach facilitates client referrals and the exchange of products and distribution
services between businesses, contributing significantly to our revenue flows.
We form internal partnerships to make the best use of our intellectual capital, execution technology and distribution. This
sharpens our ability to recognize trends across business segments, serve clients better and, ultimately, create new revenue
opportunities. One example of the success of such co-operation involving the asset and wealth management units as well as
the Investment Bank is the growth in structured products and alternative investments. Their share of total invested assets
in the Wealth Management International & Switzerland business went from 10% in 2004 to 16% in 2006.
In 2006, our wealth management and investment banking businesses launched a joint initiative focused on the ultra-high net
worth segment. They identified senior partners in each of the two businesses to focus on the delivery of investment banking
capabilities and advice alongside the wealth management offerings while systematically cross-referring clients. A partnership
among the senior managers of the two businesses was created in all main wealth management locations – with explicit targets
for each region. Since its inception, this cooperation has resulted in an inflow of CHF 5.5 billion of net new money into
our wealth management business and resulted in 23 new mandates for the Investment Bank, generating CHF 57 million in fees.
At the end of 2006, our asset management and investment banking businesses started a collaboration that saw the launch of
the iBoxx US Pension Liability Indices, a set of three index benchmarks designed to reflect pension liability profiles and
mimic liability performance. The indices are aimed at helping pension plan sponsors, consultants and investment managers structure
their investment strategies.
In our US domestic wealth management business, which has been part of the global wealth management business since 2005, our
"one firm" model is supporting a transformation from a traditional US brokerage firm into a comprehensive wealth management
business.
Another advantage of our "one firm" model is that it helps us to share activities between different parts of our businesses,
eliminating redundant infrastructure, services, management and control functions. One example is our centralized treasury
process, which ensures that cash flows within UBS are pooled and netted before being channelled through one access point to
the money markets. The way we embed the same approach to risk management deeply in all our businesses is also one of our most
important success factors. Another example is our information technology infrastructure (ITI) unit, launched successfully
in 2004. This unit, housed within Corporate Center, integrates all IT infrastructure functions across UBS – data networks,
telephone and other communications systems, IT security, distributed computing and servers, mainframes and data centers, market
data services, user services and desktop computing.
