Global Asset Management

Business description

Two principal client segments:

Institutional: corporate and public pension plans; endowments, municipalities, charities and private foundations; insurance companies; governments and their central banks; and supranationals.

Wholesale intermediary: financial intermediaries including Global Wealth Management & Business Banking and third-parties.

Broad range of investment capabilities and services:

Traditional, alternative, real estate and infrastructure investment solutions.

Over 500 investment funds, exchange-traded funds and others, plus service platform for hedge funds and other investment funds.

Performance in 2007

Pre-tax profit of CHF 1,315 million, down 6% from a year earlier. The decrease reflects closure costs of CHF 384 million from Dillon Read Capital Management. This charge offset the positive impact of increased performance and management fees in all business areas, coupled with the inclusion of acquisitions in Brazil and Korea.

Total net new money outflow of almost CHF 16 billion primarily in equity mandates in the institutional business, while the wholesale business had small net new money inflows.

Past weak investment performance in some capabilities, notably core / value equities and fixed income, are at the root of this development. Over the last year, UBS has taken steps to address these issues by reorganizing its equities business. In addition, UBS has made changes to the management in these areas, focused on recruiting high performing candidates and added new investment capabilities.