PRIVATE & AM DIVISION
2003-2006 STRATEGIC PLAN
Andrea Moneta
Head of Private & AM Division
Investor Day – Bologna, 13th June 2003
AGENDA
The reference scenario
Private & Asset Management Division
UniCredit Private Banking
UniCredit Xelion Banca
Pioneer Group
Conclusions
2
THE REFERENCE SCENARIO – EXECUTIVE SUMMARY
 Moderate recovery of the economic cycle, at a lower pace than
current potential
 Re-alignment of financial market performance and real economy
 High households’ saving rates, especially in Italy
 Financial wealth expected to rise again
 Households’ financial assets relatively under-weighted on total
wealth in EU and Italy compared with US
 AuM share on total financial assets in Italy lower than in EU and
US, but expected to increase in the next three years
 Pension fund turning-point is coming closer
 Concentration of wealth expected to increase
3
Opport
unities
for the
Private
& AM
Divisio
n
AGENDA
The reference scenario
Private & Asset Management Division
UniCredit Private Banking
UniCredit Xelion Banca
Pioneer Group
Conclusions
4
THE PRIVATE & ASSET MANAGEMENT DIVISION IS UCI’S ANSWER TO THE
GROWING COMPLEXITY OF FINANCIAL MARKETS, IN ORDER TO FACE THE
CHALLENGES AND TO EXPLOIT THE OPPORTUNITIES OF THE WEALTH
MANAGEMENT BUSINESS
PRIVATE & ASSET
MANAGEMENT DIVISION
 Three players …
 ~3,000 young skilful Staff1
 … three different business …
 ~2,500 sales people2
 … with different geographic focus …
 … one single target: managing financial wealth
through first-class products and services,
leveraging on the strong integration between
production and distribution
5
1
Figure net of around 1,700 Xelion PFAs
2
Figure including UniCredit PB Private Bankers, Xelion PFAs and Pioneer salesmen
 Worldwide selective presence in the
most important financial centres:
Milan, Boston, Dublin, London, Paris,
Madrid, Hong Kong, Singapore,
Lugano, Monaco, San Marino, ecc
 ~Euro 130 bn Tot. Financial Assets
IN A CONTEXT OF LOW INTEREST RATES AND LOW EQUITY RETURN,
OPPORTUNITIES IN THE WEALTH MANAGEMENT BUSINESS COULD BE
EXPLOITED ONLY BY PLAYERS ABLE TO LEVERAGING ON INNOVATION AND
ADVICE …
… WITH HIGH GROWTH POTENTIAL AND
VALUE ADDED…
INNOVATIVE PRODUCTS …
Market growth
 Wealth Planning
2001-2006 projections
ETF
0.1
Structured
prod. 0.2
5.5
Index funds
 Hedge Funds
Hedge Funds
0.5
Private Equity
0.7
Commodities
> 10% / year
 ALM Strategies
High Alpha products
0.05 Enhanced
Indexing
Traditional products
0.5 Quantitative
Prod.
0.9 Real estate
< 10% / year
 Total Return Products
10.9 Active bonds
13.5
1.8
 Retirement Schemes
2001 size
($ 5 Tr)
Innovative products
Active equities
Money Market
Source: BCG analysis on Intersec, Sanford B data
… THANKS TO EXCELLENCE IN:
 Global Research based Investment Processes
 Risk Management
 Distribution, advisory and client proximity
6
Margins
… AND WITH CLEARLY DEFINED STRATEGIC PRIORITIES
 Increase of market shares in Italy, through the
acquisition of new clients and a higher share of
wallet of existing customers
 Independent advice
 Innovative and tailor-made offering
 Active management, ALM solutions and worldclass performance
 Enlargement of the offer with High-Alfa products
 Support to UCI’s networks in Italy and development
of new partnerships with third parties
 Leverage on strong distribution capabilities in
US and in the “International” business unit
7
AGENDA
The reference scenario
Private & Asset Management Division
UniCredit Private Banking
UniCredit Xelion Banca
Pioneer Group
Conclusions
8
UNICREDIT PRIVATE BANKING: A NEW LARGE PRIVATE BANK
WITH A HIGH POTENTIAL TO INCREASE PENETRATION IN HIGH
VALUE ADDED SERVICES
KEY FIGURES
UPB CURRENT PORTFOLIO MIX
 ~Euro 36 bn Direct and Indirect
Deposits
100%
31%
36%
75%
 ~40,000 households
59%
18%
 ~560 Private Bankers
50%
 More than 150 branches
25%
28%
28%
51%
36%
 Market Shares1:
 1.8% in AUMs
 2.4% in Mutual Funds
 2.5% in Securities in Custody
13%
0%
UPB Average
Asset Mix2
Securities in
Custody
9
1
Source (for Total Italian Market data): UCI calculations on Assogestioni and BankIT data
2
Data related to Average, Median and 1st Quartile UPB customers as at 30.4.2003
UPB Median
Asset Mix2
Plain-vanilla
Mutual Funds
UPB 1st Quartile
Asset Mix2
Segregated Accounts &
Bancassurance
PRIVATE BANKING IS A VERY INTERESTING MARKET IN ITALY,
WITH FEW INDIVIDUALS CONTROLLING A HIGH PORTION
OF TOTAL FINANCIAL WEALTH
Other sources show a percentage
between 30% and 40%
~21 mln
Families
>500K
Euro
HNWI
Affluent
2%
10%
WEALTH DISTRIBUTION AND UCI PB
MARKET SHARES IN ITALY
~€ 2,000
bn
~€ 11
bn
22%
25%
Wealth in Italy
by region1
UniCredit PB
Market Shares by region
2.3%
2%
26%
10%
2.2%
9%
7.8%
7,7%
6.6%
9%
9.3%
2.4%
<500K
Euro
52%
Mass
88%
55%
9%
3.7%
5%
Families
3.5%
2.3%
6%
5.6%
3.5%
4.2%
1.6%
26%
20%
Total
Banking
Assets
Total
Banking
Profits
4%
HNWI: Total Financial Assets > Euro 500K;
Affluent: Euro 50K to Euro 500K;
Mass: < Euro 50K
Source: 2000, ISTAT Statistics and PwC Analysis
1
4.2%
Weighted Average of mean pro-capite salary and deposits by region
Source: UCI PB – Strategic Marketing calculations on UCI Group data
10
THE HIGH FRAGMENTATION OF THE ITALIAN MARKET ALLOWS
GAINING MARKET SHARES FROM NON-SPECIALISED NATIONAL
PLAYERS…
Major players in Private Banking in Italy
TOTAL PB MARKET IN ITALY*:
Euro 630 bn
Bank
< 30%
Players with a specialised Private Banking offer
Non-specialised Local and National players
Mkt.
Share*
1.
Banca Intesa1
43,0 bn
6,7 %
2.
SPIMI1 + Fideuram2
41,8 bn
6,6 %
36,0 bn
5,7 %
3.
> 70%
Assets
4.
MPS (+Steinhauslin)1
10,0 bn
1,6 %
5.
Credem (+Euromob.)1
10,0 bn
1,6 %
6.
BIM (+Symphonia)3
8,4 bn
1.3 %
7.
Banca Aletti (BPVN)3
6,3 bn
1,0 %
8.
Ersel3
5,2 bn
0,8 %
9.
UBS Italia4
5,2 bn
0,8 %
10.
Deutsche Bank4
4,2 bn
0,7 %
11.
Credit Suisse4
4,2 bn
0,7 %
LEGENDA: Specialised competitors in RED
1
2
3
4
* 2002 Total Banking Direct & Indirect Deposits (Liquidity, AUMs and Securities in Custody)
Source: UCI Strategic Marketing calculations on 2002 BankIT data
11
Source: Company presentations
Source: SPIMI Investor Relations (data do not include Banca Cardine)
Source: Company websites
Source: UCI calculations on Accenture data on Private Banking in Italy
… WHILE IN THE AREAS WHERE SPECIALISED PLAYERS
OPERATE MANY HIGH POTENTIAL “PROVINCES” ARE STILL
UNDER-SERVED
Milano (96.6%)
35%
% Private Banking
Financial Assets
Roma (82.2%)
(82.8%)
Genova
30%
Bologna (44.8%)
Torino (34.5%)
Napoli
25%
40%
Firenze
Treviso
Verona
20%
Brescia
15%
Bari
10%
Pavia
5%
0%
0.0%
Udine
Bergamo
Padova
R.Emilia
Perugia
Ancona
Venezia
40%
Modena
Vicenza
30 prov.
Palermo
Cuneo
Savona Ferrara Parma
Cremona
Biella
Como
Trento
Mantova
Alessandria
Novara
Salerno
Lecco
0.5%
1.0%
1.5%
Varese
2.0%
2.5%
Potential PB Financial Assets (%)
3.0%
3.5%
20%
Other prov.
Source: UniCredit Private Banking Marketing calculations on MagStat data
UniCredit PB is present in 59 (out of 103) “provinces”,
representing 88% Total Private Banking Financial Assets in Italy
12
Competition
Top 6 prov.
Attractiveness
Foreign or Specialised Players in the provinces
(% on 29 players taken into account)
Distribution of the first 36 Italian “provinces” by potential for private banking and
presence of specialised competitors
UNICREDIT PRIVATE BANKING CAN LEVERAGE ON ITS STRONG
COMPETITIVE POSITION IN ORDER TO ENJOY AN HIGH
GROWTH POTENTIAL
Competitors
LOCAL
DOMESTIC
PLAYERS
NATIONAL
DOMESTIC
PLAYERS
FOREIGN
PLAYERS
TARGET
CUSTOMERS
Lower Private clients
(500K Euro<Total Financial
Assets<1 mln Euro)
All categories of
Private clients
Upper Private clients/
Large Accounts
(Total Financial Assets>
10 mln Euro)
POSITIONING




UCI PB COMPETITIVE
ADVANTAGES

Higher service quality
Consolidated long-term
“trust” with the client

Wider offer of products/
services

Superior skills
Sub-scaled

Synergies with other
Group companies

Dedicated business model

Focused strategy

Wide-spread presence
all-across the country

Deeper knowledge/
understanding of the
clients
Large but weak
Strong for brand and
tradition, but limited
(on-shore)
13
IN THIS CONTEXT UNICREDIT PRIVATE BANKING WILL EXPLOIT
MARKET OPPORTUNITIES IN ITALY IN ORDER TO GROW …
KEY GOAL …
… AND STRATEGIC GUIDELINES
 Innovative and dedicated offering to each
targeted client segment
LEVERAGING ON
COMPETITIVE
ADVANTAGES IN ORDER
TO BECOME UNDISPUTED
LEADER AS FOR:
 Reputation
 Market Share
 Profitability
 Portfolio management, active advisory on
securities and wealth management
services (holistic approach to total
financial assets, family businesses and
real estate properties) as core offer
 Group synergies with UniCredit Banca
d’Impresa, Pioneer and product
companies
 First-class service model through high
quality processes, long-term relationships
and confidentiality
14
… ACTING WITH FOUR MAIN OPERATING TOOLS…
OPERATING TOOLS
ACTIONS
 Service Model diversified by client segments and geographic presence
1. SHARE OF WALLET
INCREASE
2. ACQUISITION OF
NEW CLIENTS
3. VALUE ADDED
INCREASE
 Upgrade of product range, leveraging also on Pioneer/UBM’s competencies, and
development of new services: Active Portfolio Management, Advisory on Securities in
Custody (Active Advisory and Investment Advisory), Wealth Planning
 Improvement of private bankers’ competencies and productivity through a “team
approach”
 Optimisation of Group synergies through referrals from UniCredit Banca d’Impresa, UBM
and Locat
 Focus on high potential under-served areas, with low competition from specialised players
 Recruitment of private bankers and increased number of relationship managers in target
areas/”provinces”
 Asset Mix Optimisation leveraging on growing asset management skills spread over the
network and on new Asset Management services from UPAM
 Pricing policies review with alignment to value added embedded in the services and
increasing portion of recurrent revenues
 Focus on highest value clients with the highest “abandon risk”
4. CLIENT RETENTION
 Review of processes highly impacting on customers’ satisfaction and launch of Loyalty
Programs
15
… WHICH WILL ALLOW THE BANK TO REACH ITS
DEMANDING 2006 FINANCIAL TARGETS …
2002
Euro mln
Pro-forma
CAGR
02-06
CAGR 02-06
Baseline
Revenues
~300
12%
Operating Income
~150
11%
 Revenues and financial
assets higher than
baseline thanks to the
strategy implementation
~51%
53%1
 Relevant investments for
growth
~36,000
15%
Asset under Management1
~16,300
18%
Securities in custody1
~17,100
13%
~560
7%
Cost/Income
Total Dir. + Ind. Deposits1
of which:
Private Bankers1
1
End of period data
16
6%
7%
 Market share on
Households’ Total
Banking Assets from
1,9% to 2,5%
 Market share on Private
Total Banking Assets
from 5,7% to 7,5%
... THROUGH A TAILORED STRATEGY
High importance
Low importance
Revenue growth
Existing
customers
New
customers
Efficiency
Risk mgmt
Intra-group
synergies
Private Banking
business
Pioneer
UBM
UBI
Retail business
Pioneer
UBI
Corporate business
UCB
UPB
New Europe
Pioneer
UBM
TradingLab
17
AGENDA
The reference scenario
Private & Asset Management Division
UniCredit Private Banking
UniCredit Xelion Banca
Pioneer Group
Conclusions
18
NETWORKS OF FINANCIAL ADVISORS ARE IMPORTANT AND
LONG ESTABLISHED PLAYERS WITH HIGH GROWTH RATES AND
A SIGNIFICANT PRESENCE IN THE HIGHEST VALUE ADDED
SEGMENTS OF HOUSEHOLDS’ SAVINGS
HOUSEHOLDS’ FINANCIAL ASSETS: 2000-2006 DYNAMICS
(Data in Euro bn and % changes expressed as period CAGRs)
ITALIAN HOUSEHOLDS’ BANKING FINANCIAL ASSETS
Total: +3,3%
(net of performance effect)
Total:
~7%
+0,3%
1
TOTAL FINANCIAL ASSETS GATHERED BY PFA NETWORKS2
2,529
Total: +5,3%
262
15
(net of performance effect)
48
683
Liquidity
-1%
1,967
1,954
Total:
~15%
+8%
Liquidity
527
Liquidity
+7%
608
+3%
155
734
635
Securities in
Custody
4
15
Securities in
Custody
550
Liquidity
+66%
11
+32%
Securities in
Custody
+8%
152
26
AuMs
+15%
-7%
136
AuMs
AuMs
792
2000
+1%
+17%
Securities in
Custody
809
2002
+8%
1,112
2006
AuMs
-8%
2000
199
115
2002
2006
PFA Networks Mkt. Share on Total Household Financial Assets: 7.9% in 2000; 7.7% in 2002; 10.3% in 2006E
PFA Networks Mkt. Share on Total AuMs: 15.5% in 2000; 12.9% in 2002; 16.1% in 2006E
19
Source: Network Studi UCI on BankIT data
2 Source: Assoreti data and Eurisko-Prometeia estimates (growth of PFA Networks’ market share vs banks is a market trend
foreseen also by McKinsey for the whole Continental Europe)
1
TODAY ITALIAN PFA NETWORK INDUSTRY IS IN A TRANSITION
PHASE: THERE ARE TOO MANY PLAYERS IN THE MARKET, MOST
OF THEM FACING HARD TIMES, ….
MARKET CONCENTRATION
AUMs BY COMPANY1
PFAs BY COMPANY1
50
4500
45
40
35
4000
First 5 players (on 40)
owning more than 60%
of Total AuMs
3500
3000
First 5 players
employing
~43% of Total
PFAs
30
Total AuMs:
~Euro 152 bn
25
2000
20
15
1500
10
1000
5
500
0
0
Source: Assoreti data as at 31.3.2003
1
Total PFAs:
~34,700
2500
Source: Assoreti data as at 31.3.2003
LEGENDA: Different colours identify different industry players
20
… AND TOO MANY PFAs, MOST OF THEM WITH POOR INCOME;
FURTHERMORE INSIDE THE COMPANIES AUMs ARE NOT EQUALLY
DISTRIBUTED, WITH FEW PFAs CONTROLLING AN IMPORTANT SHARE OF THEM
Average AUM per PFA by company1
Average wage per PFA1
120
20
18
16
14
12
Average AuMs per PFA:
Euro 4.4 mln (Euro 3.4 mln
excluding the first 2
players)
100
80
Average income per
PFA: Euro 56K (Euro
46K excluding
Fideuram)
60
10
8
40
6
4
20
2
0
0
Source: Assoreti data as at 31.3.2003
Source: Sample of Financial Statements as at 31.12.2001
 Only the first 7 players granted PFAs with gross income
yearly wages higher than Euro 40K
 The industry will restructure and concentrate
21
1
LEGENDA: Different colours identify different industry players
THEREFORE THERE IS ROOM FOR A PLAYER ABLE TO ATTRACT
THE BEST PROFESSIONALS AND XELION ENJOYS COMPETITIVE
ADVANTAGES
XELION’S COMPETITIVE ADVANTAGES:
PART OF UCI GROUP AND OF
PRIVATE & AM DIVISION
WIDESPREAD PRESENCE AND
COMPLETE SERVICE
 Great importance of UCI brand for reassuring clients and
trusting PFAs
 Strong integration with production (Pioneer Group)
 “Proximity services” provided by the Group branch
networks for all the financial transactions requiring
“materiality”. Distinctive competitive advantage, hard to
replicate for competitors
 Traditional banking services, as the result of being a
multi-channel bank
MULTI-BRAND MODEL +
ADVANCED TECHNOLOGICAL
PLATFORM
 Multi-brand model to reinforce independence of advice.
High quality service for clients and PFAs guaranteed by
the effective technological platform. Related investments
already done
 Structurally more flexible and faster in adapting
products and services to customers’ and PFAs’ needs,
as the result of being a separate legal entity
22
XELION AIMS AT INCREASING THE NUMBER AND
THE QUALITY INDEED OF ITS PFAs
AUMs PER PFAs AND NUMBER PFAs
(Data in Euro mln as at 31.12.2002 vs 31.12.1999)
Industry Leader:
Focused on PFAs (and clients) of
the highest market segment with a
wide sale force
2,288
16
14
Fideuram
AUMs per PFA
12
Sample
Average1
10
8
SPI
6
6.1
F&F
Mediolanum
4
Fineco
2
RasBank
B.ca Primavera
“Commercial engines”:
focused on PFAs (and clients) of
the medium market segment with
a wide sale force
0
0
500
1,000
1,500
2,000
2,500
Number of PFAs
Source: Assoreti (RasBank merged with Ras Investimenti SIM)
1 Sample made of 10 major players
23
3,000
3,500
4,000
4,500
ENCOURAGING 2002 AND 2003 TO-DATE RESULTS: EXCELLENT
NET INFLOWS AND HIGH ATTRACTIVENESS FOR NEW PFAs …
Data as at 31.03.2003 – Euro mln
Data as at 30.04.03
Data as at 30.04.2003 – Euro mln
Tot. Fin. Assets:
Euro 5.3 bn,
8th in Italy
1,683 PFAs,
5th in Italy
NUMBER OF PFAs
Data as at 30.04.2003 – Euro mln
Net Inflows:
Euro 690 Mln,
1st in Italy
TOTAL FINANCIAL ASSETS
TOTAL NET INFLOWS
Net Inflows per PFA:
2nd among TopPlayers and 4th in Italy
1
1
NET INFLOWS PER PFA
Fideuram + SPI
4,577
Fideuram + SPI
53,697
Xelion
691
Credit Suisse
1.65
Mediolanum
4,147
Mediolanum
17,011
Credit Suisse
546
Xelion
0.41
Rasbank
3,154
Rasbank
12,266
Mediolanum
449
Azimut
0.30
Fineco Group
1,756
Finanza & Futuro
7,910
Fideuram + SPI
422
Banca Primavera
0.11
Xelion
1,683
Credit Suisse
6,170
ING Sviluppo
266
Mediolanum
0.11
Banca Primavera
1,592
Banca Generali
5,745
Azimut
217
Fideuram + SPI
0.09
Finanza & Futuro
1,424
Azimut
5,662
Rasbank
197
Banca Generali
0.07
Banca 121
1,390
Xelion
5,330
Banca della Rete
184
Rasbank
0.06
Banca Generali
1,153
Banca Primavera
5,330
Bipielle
176
Fineco
0.04
Banca Bnl Investimenti
1,047
Fineco
4,923
Banca Primavera
172
Finanza & Futuro
24
1
AUMs, Securities in Custody, Bancassurance and liquidity
Source: Assoreti
-0.01
… AS THE RESULT OF A STRATEGY BASED ON AN
AMBITIOUS AND CLEARLY DEFINED KEY GOAL …
KEY GOAL…
… AND STRATEGIC GUIDELINES
 Achieving Critical Mass through the
combination of:
 Growth of average financial assets of
existing PFAs (reduction of marginal
PFAs)
BECOMING A TOP PLAYER IN
THE ASSET GATHERING
MARKET, STANDING OUT FOR:
 Independence of Advice
 Quality of Service
 Easiness and proximity
 Aggressive recruitment of PFAs with
high average portfolios
 Asset mix reshape towards Life & Pension
products and fully integrated advice
services (I.e.: financial planning)
 Acquisition of new affluent clients for UCI
Group, with benefits for Pioneer, UniCredit
Banca and product companies (cross selling of
mortgages, credit cards, consumer finance, ...)
25
… WHICH WILL LEAD XELION TO IMPORTANT COMMERCIAL
AND FINANCIAL RESULTS
Pro-forma
CAGR
02-06
~30
40%
2002
Euro mln
Revenues (Xelion stand alone)
Break-even analysis
(data in Euro ,000)
Break-even edge
(Xelion stand-alone)
Revenues (at Group level)
Operating Income
~45
~-50
35%
+101
Cost/Income
~260%
90%1
Total Dir. + Ind. Deposits1
~4,950
32%
Number of PFAs
8,000
6,000
Break-even edge (at
Group level)
Operating
Profit area
4,000
2,000
Operating
Loss area
Financial Advisers1
1,720
3%
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000 10,000
AUMs per PFAs
1 End of period data
 Strong recruitment of high-standing PFAs and reduction of those with low productivity
 Already well on-track: revenues growth 1Q03 vs. 1Q02: +48% Xelion stand alone, +45% at
Group level
26
AGENDA
The reference scenario
Private & Asset Management Division
UniCredit Private Banking
UniCredit Xelion Banca
Pioneer Group
Conclusions
27
THE REFERENCE SCENARIO WILL DEEPLY IMPACT ASSET
MANAGEMENT INDUSTRY, ESPECIALLY IN CONTINENTAL
EUROPE
 Retail Investors less risk oriented, more focused on “funding future needs” and
searching for trust and specialised advice
 Slower growth of “open architecture” with proprietary model still dominating;
acceleration in “preferred partnerships”
 Need of appropriate skills to address the “new phase”: big opportunities for active
asset managers offering absolute return products and asset/liability management
solutions either for Institutional or Retail clients (“INSTIVIDUAL Model”)
 Strong producers benefiting from difficulties of less “investment performing”, less costefficient and less distribution-advantaged peers
Greater scope for integration between production and distribution in
order to advise clients on longer term needs and to provide individuals
with in-built advice services, traditionally reserved to large institutions
28
LEVERAGING ON ITS DISTINCTIVE SKILLS …
 Best practice in terms of Governance, Risk
Management and disciplined Investment Process
based on a unified global research
STRENGTH:
Global House (EU+US)
with the ability of serving
both proprietary
networks and open
platforms, optimising
know-how and synergies
 Active management with adaptable production
capabilities
 Innovation capabilities in terms of products,
distribution agreements and customized solutions,
enhanced by the long-term experience in providing
UCI banks and Third Parties with a continuous flow of
solutions
 Ability to integrate and turnaround (Pioneer US
and Momentum acquisitions), while maintaining
profitability even in bear markets
 Scalability of model and potential economies of
scale in the production/distribution/operations chain
29
… AND ON ITS SOUND TRACK-RECORD IN TERMS OF
INVESTMENT PERFORMANCES …
Standard and Poor's Fund Rankings 2002 – Funds sold in Europe
US - Examples of 1st Quartile portfolios1
3 Years or Since Inception
Perf
Port v. Bmk Rank*
Peer
Category
Pioneer Funds - Core European
Equity
Micropal
Equity
Europe
-47.1
5.1
1Q
Pioneer Funds - Top European
Players*
Micropal
Equity
Europe
-30.8
42.9
1Q
Micropal
Small
Companies
Europe
-9.2
15.4
1Q
Pioneer Funds - European
Small Companies*
Funds
US
European
Europe - Examples of 1st Quartile portfolios1
Funds
Putnam
Soc. Gen.
Amex
Barclays
HSBC
ABN AMRO
Citigroup
Schroder
Dexia
Pictet
Vontobel
Templeton
AXA
Credit Suisse
Credit Agricole
BNP Paribas
Russell
ING Baring
Deutsche Bank
Merrill Lynch
10
9
8
7
6
5
4
3
2
1
0
JP Morgan
PIONEER
UBS
Fidelity
(Number of funds of different categories with top 10 rankings by Asset Manager)
Peer
Category
Pioneer Fund
Lipper Large
Cap Core
-32.6
10.3
1Q
Pioneer Value
Lipper Large
Cap Value
-15.7
5.4
1Q
Pioneer High Yield
Lipper High
Current Yield
31.0
25.4
1Q
30
are measured against a benchmark net of withholding taxes and charges against the portfolio. Information as at 11.04.03
* Measured since inception
1 Portfolios
3 Years or Since Inception
Perf
Port v. Bmk Rank*
… PIONEER HAS SET OUT AN AMBITIOUS GOAL …
KEY GOAL…
… AND STRATEGIC GUIDELINES
 Top-ranking performances
 Further widening of the product
range, also through third parties
partnerships:
FURTHER STRENGTHENING ITS
POSITION IN THE ASSET
MANAGEMENT INDUSTRY
LEVERAGING ON:
 Absolute return solutions
 Dynamic ALM either for
Insitutional and Retail clients
 Infra-Division and Group
synergies
 Retirement products and
Financial Planning
 Wide high quality offering
 Implementation of an advice-pull
model in distribution also thanks to
proprietary Advice platforms
 Advice skills
31
… WHICH WILL BE PURSUED WITH SPECIFIC ACTIONS IN
EACH BUSINESS AREA …
ITALY
Retail Clients (Mass, Affluent & Private)
 Product Innovation
 II and III Pillar Retirement Schemes
 Tailor-made Research and Advisory department, in order to satisfy private and affluent
clients’ needs (synergies with UniCredit Private Banking and Xelion)
Institutional Clients
 Further strengthening of the leadership in the segment and development of new relations
INTERNATIONAL
(ex-Italy)
 Leverage on excellence in key product segments and low marginal distribution costs
 Free advisory expertise for sale-networks and distributors
 Leverage on leading ALM know-how for institutional clients
US
 Full exploitation of the strong distribution in order to grow in the non-proprietary fund
segment
 Wider offer through high quality products with sound track-record (development or
acquisition of high star products)
 Development of wraps & segregated accounts
NEW EUROPE
 Management of the euro-convergence for households’ assets
 Development of leadership in retirement products
 Continuous support to UCI’s expansion in the area
32
… RESULTING IN IMPORTANT GROWTH TARGETS
2002
Euro mln
1
Pro-forma
CAGR
02-06
Revenues
~540
10%
Operating Income
~200
14%
Cost/Income
~63%
57%1
Total AUMs*
~104,000
12%
End of period data
33
 AUMs CAGR due to:
 ~4% performance effect
 ~ 8% net sale effect
 Hedge fund weight on Total
AUMs from 1,5% to 3,6%
AGENDA
The reference scenario
Private & Asset Management Division
UniCredit Private Banking
UniCredit Xelion Banca
Pioneer Group
Conclusions
34
SUMMING UP: HIGH VALUE CREATION AND GROWTH
2002
Euro mln
Pro-forma
CAGR
02-06
1,070
10%
Operating Income
420
13%
Cost/Income
61%
58%1
Revenues
Economic Capital
750
3%
RARORAC
-7%
+18%1
MARGINAL RARORAC
23%
43%1
PRESENT RARORAC
31%2
1
End of period data
2
Calculated at year-end 2003
35
 Growth rates higher than
traditional banking
business
 Lower Economic Capital
absorption
 Potential out-performance
for integrated and
specialised Players