December 2012 Public Wealth Management – The New Era UBS Wealth Management Kobi Faigenbaum CEO, UBS Wealth Management Israel Ltd. This presentation is.

December 2012

Public

Wealth Management – The New Era

UBS Wealth Management

Kobi FaigenbaumCEO, UBS Wealth Management Israel Ltd.

This presentation is given for educational purposes only and shall not be understood as a provision of investment advice and its content is not intended to be and shall not be construed as an invitation or offer to purchase the securities/and or financial assets mentioned therein.

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Is Israel lagging behind global banking trends?

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A new era in global banking

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1

Changes in client demands

Shift towards Emerging Markets2 Tighter regulation

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Cross border flow to Emerging Markets

Source: IMF and McKinsey Global Institute

1999 2009

While in 1999, the cross border flow to Emerging Markets was mainly illustrated by the red lines [Total value of cross border investments between regions of 3-5% of world GDP], in 2009 we saw substantial shift towards the blue lines [5-10% of world GDP], mainly from Europe region

Also illustrated, the rapid increase in the total financial domestic assets [represented by the circles, $ trillion] within Emerging Markets countries.

Emerging

Markets

1

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Tightening regulation Regulation2

During the last few years, regulators have introduced new guidelines at country and client levels. The pace and complexity of regulation shows no sign of slowing down in the foreseeable future. On a daily basis, we see media coverage to reflect the market interest and magnitude of those changes.

“Switzerland is developing a “white-money strategy" in response to a crackdown on offshore financial centers by the U.S. and European countries eager to recoup money from taxpayers banking abroad. Bloomberg

”

“…preparing to revamp its direct-advice arm in preparation for the RDR Money Marketing

” “The U.S. Treasury Department said Thursday it’s talking to more than 50 countries and jurisdictions around the world to implement a law aimed at fighting tax avoidance Wall Street Journal

”

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Expected changes in model service Clients3

•Performance

•Sophisticated solutions to their wealth

•Tailored made solutions

•Adding value for their business as well as family

•More involvement in their investment process

•Entrepreneurs

•Professionals & CEOs

•Business owners

•Single Family Offices

For illustration purposes only

The "new customers" Looking for

•Sophisticated

•Knowledgeable

•Younger & Faster

Characterized by

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So what is the difference?

Private Banking Wealth Management

Emphasizes the relationship as leading indicator: "Red Carpet"

Emphasizes different solutions to the client's complex set of needs

For illustrative purposes onlyFor illustrative purposes only

Clients3

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The spectrum of Wealth Management services

• Mortgages• Lombard• Financing

•Discretionary Mandates•Advisory Mandates•Investment Funds• Non -traditional Asset Classes•Structured Products•Cash Products• Trading •Financial Planning

•Succession Planning •Pension Planning•Life Insurance• Trusts•Foundations•Numismatics•Philanthropy

••• IPO•

Liability Management

Your clientadvisor

You

Asset Management

Banking Services

Life Cycle Management

• Mortgages• Lombard• Financing

•Discretionary Mandates•Advisory Mandates•Investment Funds• Non-traditional Asset Classes•Structured Products•Cash Products• Trading •Financial Planning

•Succession Planning •Pension Planning•Life Insurance• Trusts• Foundations•Arts &collectables•Philanthropy

•Corporate Finance• M&A••

Liability Management

Financial Planner

Client

Asset Management

CorporateServices

Life Cycle Management

For illustrative purposes only

Networking

Clients3

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Can Israel catch-up with these trends?

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Disclaimer

UBS is a premier global financial firm offering wealth management, asset management and investment banking services from its headquarters in Switzerland and its authorised operations in over 50 countries worldwide to individual, corporate and institutional investors. In Israel UBS AG is registered as a "Foreign Dealer" together with UBS Wealth Management Israel Ltd. its fully owned subsidiary. UBS Wealth Management Israel Ltd. is a Portfolio Management Licensee which also engages in Investment Marketing and is regulated by the Israel Securities Authority.

This presentation is for personal use and your information only and is not intended as an offer, or a solicitation of an offer, to buy or sell any product or other specific service. Although all pieces of information and opinions expressed in this presentation were obtained from sources believed to be reliable and in good faith, neither representation nor warranty, express or implied, is made as to its accuracy or completeness. All information and opinions are subject to change without notice. UBS does not provide legal or tax advice and this presentation does not constitute such advice.

This presentation may not be reproduced or copies circulated without prior authority of UBS. UBS expressly prohibits the distribution and transfer of this presentation to third parties for any reason. UBS will not be liable for any claims or lawsuits from any third parties arising from the use or distribution of this presentation. This presentation is for distribution only under such circumstances as may be permitted by applicable law.

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