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82-628: During that period, Adela financed over a thousand private ventures throughout the region. Its model for development was replicated in Africa and Asia. Its investment policies were later adapted by hundreds of investment funds operating throughout the developing world. In 1962, President John F. Kennedy proposed the Alliance for Progress between the United States and the developing countries of Latin America and

164-438: A blend approach using aspects of each. Funds are often distinguished by asset-based categories such as equity , bonds , property , etc. Also, perhaps most commonly funds are divided by their geographic markets or themes . Examples In most instances whatever the investment aim the fund manager will select an appropriate index or combination of indices to measure its performance against; e.g. FTSE 100 . This becomes

246-461: A "premium" to NAV (i.e., higher than NAV) or, more commonly, at a "discount" to NAV (i.e., lower than NAV). In the United States, at the end of 2018, there were 506 closed-end mutual funds with combined assets of $ 0.25 trillion, accounting for 1% of the U.S. industry. Exchange-traded funds (ETFs) combine characteristics of both closed-end funds and open-end funds. They are structured as open-end investment companies or UITs. ETFs are traded throughout

328-498: A Chicago-based options trading firm, with an expertise in financial derivatives. O'Connor was founded in 1977 by mathematician Michael Greenbaum and was named for Edmund (Ed) and Williams (Bill) O'Connor. The O'Connor brothers had made a fortune trading grain on the Chicago Board of Trade and founded a First Options, a clearing house business. The O'Connors provided Greenbaum, who had run risk management for First Options, with

410-895: A billion dollars. The Adela model was replicated in Asia (PICA-the Private Investment Company for Asia) originally based in Tokyo, in Africa (SIFIDA-the Societé Internationale Financière pour les Investissements et le Développement en Afrique) based in Geneva and in agriculture (LAAD-Latin American Agribusiness Development Corporation) based in Miami. All were capitalized by multinational corporations and funded investments in private enterprise. Adela earned

492-644: A bloc, Europe provided the largest number of shareholders, although the United States was the most important single country. Shareholders also came from Japan and six Latin American nations. The combined net worth of Adela's shareholders was the highest of any private corporation ever. Adela's founders included many of the best known company presidents and chairmen, including men such as Marcus Wallenburg Sr. , Chairman of Stockholms Enskilda Bank , Mogens Pagh , Chairman of Denmark's East Asiatic Company , Friederick Philips , Chairman of Gloeilampen Fabrieken of Eindhoven of

574-571: A branch in Geneva, Switzerland , for the first time. Two years later, in 1908, the bank acquired Fratelli Pasquali, a bank in Chiasso, Switzerland , its first representation in the Italian-speaking portion of the country. This was followed by the 1909 acquisition of Bank für Appenzell (est. 1866) and the 1912 acquisition of Banque d'Escompte et de Dépots. The onset of World War I put a hold on much of

656-510: A daring merchant bank that grew to be one of the most respected investment banks in London. Following a flawed and costly expansion into the US, in 1994 a merger was announced with Morgan Stanley , but the talks collapsed. The following year S.G. Warburg was purchased by Swiss Bank Corporation. The bank merged S.G. Warburg with its own existing investment banking unit to create SBC Warburg, which became

738-551: A full branch office in Tokyo in 1970. The bank also made a number of acquisitions to enhance its position in various products. SBC acquired a controlling interest in Frei, Treig & Cie. in 1968, Warag Bank in 1970 and Bank Prokredit in 1979 (later sold to GE Capital in 1997). All three banks focused on consumer lending. Similarly, SBC acquired a number of banks in the private banking sector, including Ehinger & Cie. in 1974; Armand von Ernst & Cie. and Adler & Co. in 1976; and

820-522: A leading player in global investment banking. Two years later, in 1997, SBC paid US$ 600 million to acquire Dillon, Read & Co. , a white shoe US investment banking firm considered to be a member of the bulge bracket . Dillon, Read, which traced its roots to the 1830s was among the powerhouse firms on Wall Street in the 1920s and 1930s and by the 1990s had a particularly strong mergers and acquisitions advisory group. Dillon Read had been in negotiations to sell itself to ING which owned 25% of

902-559: A limited term with enforced redemption of shares or units on a specified date. Many collective investment vehicles split the fund into multiple classes of shares or units. The underlying assets of each class are effectively pooled for the purposes of investment management, but classes typically differ in the fees and expenses paid out of the fund's assets. These differences are supposed to reflect different costs involved in servicing investors in various classes; for example: In some cases, by aggregating regular investments by many individuals,

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984-548: A majority interest in Geneva-based Ferrier Lullin & Cie. in 1978. The bank continued its consolidation of Swiss banks acquiring Banque Commerciale de Sion in 1978 and in 1979 acquired Handwerkerbank Basle, the Banca Prealpina SA and Bank für Hypothekarkredite. As its own home market was highly competitive, SBC focused on commercial banking for American and other multinational companies. Through 1979, SBC

1066-487: A merger that would have created the second largest bank in the world in 1996. UBS's management and board unanimously rebuffed the proposed merger. Ebner, who supported the idea of a merger, led a major shareholder revolt that resulted in the replacement of UBS's chairman, Robert Studer. Studer's successor Mathis Cabiallavetta would be one of the key architects of the merger with SBC. On December 8, 1997, Union Bank of Switzerland and SBC announced an all-stock merger. At

1148-678: A profit in its first year of operations and continued posting strong earnings for its first decade. However, a growing number of its investments were failing, which forced the company to cease writing new business in 1980. Control of the company was taken over by a creditors committee, management spent 15 years recovering assets, and Adela was finally dissolved on September 24, 1994. ADELA; 1969; Development and Resources Corporation Records, Box 149, Folder 9; Public Policy Papers, Department of Rare Books and Special Collections, Princeton University Library. http://findingaids.princeton.edu/collections/MC014/c01192 Investment fund An investment fund

1230-508: A retirement plan (such as a 401(k) plan ) may qualify to purchase "institutional" shares (and gain the benefit of their typically lower expense ratios ) even though no members of the plan would qualify individually. Some of the fund classes: One of the main advantages of collective investment is the reduction in investment risk ( capital risk ) by diversification . An investment in a single equity may do well, but it may collapse for investment or other reasons (e.g., Marconi ). If your money

1312-557: A separate subsidiary in 1936 and spun off in 1998. The impact of the stock market crash of 1929 and the Great Depression would be severe, particularly as the Swiss franc suffered major devaluation in 1936. The bank would see its assets fall from a 1929 peak of CHF 1.6 billion to its 1918 levels of CHF 1 billion by 1936. In 1937, SBC adopted its three keys logo symbolizing confidence, security and discretion. The logo

1394-462: A series of mutual funds. Brinson was a pioneer in the development of the theory of asset allocation which had largely become conventional wisdom among money managers in the 1980s and 1990s. Brinson had begun working at First Chicago Corporation in the 1970s and by 1981 began building the business that would become Brinson Partners. In 1989, Brinson led a US$ 100 million management buyout of his firm from First Chicago Corporation and over

1476-402: A whole. Another example of passive management is the " buy and hold " method used by many traditional unit investment trusts where the portfolio is fixed from outset. Additionally, some funds use a hybrid management strategy of enhanced indexing , in which the manager minimizes costs by broadly following a passive indexing strategy, but has the discretion to actively deviate from the index in

1558-576: A wide range of investment aims either targeting specific geographic regions ( e.g., emerging markets or Europe) or specified industry sectors ( e.g., technology). Depending on the country there is normally a bias towards the domestic market due to familiarity, and the lack of currency risk. Funds are often selected on the basis of these specified investment aims, their past investment performance, and other factors such as fees. The first (recorded) professionally managed investment funds or collective investment schemes, such as mutual funds , were established in

1640-627: Is undertaking for collective investment in transferable securities , or short collective investment undertaking (cf. Law ). An investment fund may be held by the public, such as a mutual fund , exchange-traded fund , special-purpose acquisition company or closed-end fund , or it may be sold only in a private placement , such as a hedge fund or private equity fund . The term also includes specialized vehicles such as collective and common trust funds, which are unique bank-managed funds structured primarily to commingle assets from qualifying pension plans or trusts. Investment funds are promoted with

1722-441: Is a systematic risk that all the shares could be affected by adverse market changes. To avoid this systematic risk investment managers may diversify into different non-perfectly-correlated asset classes. For example, investors might hold their assets in equal parts in equities and fixed income securities. If one investor had to buy a large number of direct investments, the amount this person would be able to invest in each holding

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1804-652: Is a way of investing money alongside other investors in order to benefit from the inherent advantages of working as part of a group such as reducing the risks of the investment by a significant percentage. These advantages include an ability to: It remains unclear whether professional active investment managers can reliably enhance risk adjusted returns by an amount that exceeds fees and expenses of investment management. Terminology varies with country but investment funds are often referred to as investment pools , collective investment vehicles , collective investment schemes , managed funds , or simply funds . The regulatory term

1886-458: Is built into the vehicle. Often referred to as commission or load (in the U.S. ) this charge may be applied at the start of the plan or as an ongoing percentage of the fund value each year. While this cost will diminish your returns it could be argued that it reflects a separate payment for an advice service rather than a detrimental feature of collective investment vehicles. Indeed, it is often possible to purchase units or shares directly from

1968-412: Is equitably divided into shares which vary in price in direct proportion to the variation in value of the fund's net asset value . Each time money is invested, new shares or units are created to match the prevailing share price; each time shares are redeemed, the assets sold match the prevailing share price. In this way there is no supply or demand created for shares and they remain a direct reflection of

2050-419: Is invested in such a failed holding you could lose your capital. By investing in a range of equities (or other securities) the capital risk is reduced. This investment principle is often referred to as spreading risk . Collective investments by their nature tend to invest in a range of individual securities. However, if the securities are all in a similar type of asset class or market sector then there

2132-514: Is likely to be small. Dealing costs are normally based on the number and size of each transaction, therefore the overall dealing costs would take a large chunk out of the capital (affecting future profits). An investor that chooses to use an investment fund as a way to invest his or her money does not need to spend as much personal time making investment decisions, doing investment research, or performing actual trades. Instead, these actions and decisions will be done by one or more fund managers managing

2214-615: Is that the financial "products" that are sold to the public are sufficiently transparent, with full disclosure about the nature of the terms. In the United Kingdom, the primary statute is the Financial Services and Markets Act 2000 , where Part XVII, sections 235 to 284 deal with the requirements for a collective investment scheme to operate. It states in section 235 that a "collective investment scheme" means "any arrangements with respect to property of any description, including money,

2296-425: Is that you may lose the money you invest—your capital. This risk is therefore often referred to as capital risk . If the assets you invest in are held in another currency there is a risk that currency movements alone may affect the value. This is referred to as currency risk . Swiss Bank Corporation Swiss Bank Corporation ( French : Société de banque suisse ; German : Schweizerischer Bankverein )

2378-514: The Bankverein , a consortium that acted as an underwriting syndicate for its member banks. Among the original member banks were Bischoff zu St Alban, Ehinger & Cie., J. Merian-Forcart, Passavant & Cie., J. Riggenbach and von Speyr & Cie. The establishment of joint-stock banks in Switzerland such as Swiss Bank's earliest predecessors (often structured as a Swiss Verein ) was driven by

2460-837: The Dutch Republic . Amsterdam-based businessman Abraham van Ketwich (also known as Adriaan van Ketwich) is often credited as the originator of the world's first mutual fund. The term "collective investment scheme" is a legal concept deriving initially from a set of European Union Directives to regulate mutual fund investment and management. The Undertakings for Collective Investment in Transferable Securities Directives 85/611/EEC , as amended by 2001/107/EC and 2001/108/EC (typically known as UCITS for short) created an EU-wide structure, so that funds fulfilling its basic regulations could be marketed in any member state. The basic aim of collective investment scheme regulation

2542-814: The Inter-American Development Bank (IDB) give their support. A task force was created and funded by the Ford Foundation , led by George S. Moore , president of the First National City Bank (now Citibank ); Hermann Abs of Germany's Deutsche Bank ; and Gianni Agnelli of Fiat, among others. The group proposed to create the Atlantic Development Group for Latin America, or "Adela" for short. They were joined by Senator Javits in inviting private corporations from Europe, North America and Japan to capitalize this new venture. Adela

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2624-635: The World Jewish Congress lawsuit against Swiss banks (WJC) was launched to retrieve deposits made by victims of Nazi persecution during and prior to World War II. Negotiations involving SBC's successor UBS , Credit Suisse , the World Jewish Congress and Stuart Eizenstat , on behalf of the US, ultimately resulted in a settlement of US$ 1.25 billion in August 1998 paid by the two large Swiss banks UBS and Credit Suisse . The settlement, which coincided with UBS's merger with Swiss Bank, together with

2706-607: The benchmark to measure success or failure against. The aim of most funds is to make money by investing in assets to obtain a real return (i.e. better than inflation). The philosophy used to manage the fund's investment vary and two opposing views exist. Active management —Active managers seek to outperform the market as a whole, by selectively holding securities according to an investment strategy . Therefore, they employ dynamic portfolio strategies, buying and selling investments with changing market conditions, based on their belief that particular individual holdings or sections of

2788-454: The "New UBS" to distinguish itself from the former Union Bank of Switzerland, the combined bank became the second largest in the world, at that time, behind only the Bank of Tokyo-Mitsubishi . Additionally, the merger pulled together the banks' various asset businesses to create the world's largest money manager, with approximately US$ 910 billion in assets under management . The merger, which

2870-595: The 1980s, SBC along with its Swiss peers began to embrace a more aggressive strategy to keep up with competitors in the US, Japan, Germany and the UK. The bank signaled its new posture in 1990 when it opened its new US headquarters, Swiss Bank Tower, a 29 floor building on 49th Street, adjoining Saks Fifth Avenue . SBC shifted its focus from traditional commercial banking toward investment banking with an emphasis on building its trading operations. To bolster its trading initiative, in 1992, SBC acquired O'Connor & Associates ,

2952-590: The Basler & Zürcher Bankverein. The next year, Basler Depositenbank and Schweizerische Unionbank were acquired. After the take-over of the Basler Depositenbank, the bank changes its name to Schweizerischer Bankverein (Swiss Bank). The English name of the bank was changed to Swiss Bank Corporation in 1917. SBC continued to grow in the early decades of the 20th century, acquiring weaker rivals. In 1906, SBC purchased Banque d'Espine, Fatio & Cie, establishing

3034-488: The Caribbean. The idea was to encourage Latin America to undertake economic and social reforms. In exchange, the United States and the international aid agencies would provide the funding to support the reforms. A Republican senator from New York, Jacob Javits , proposed that the world's business community join together to form a new corporation that would underwrite private sector investments throughout Latin America. He wanted

3116-558: The IFC both made long term loans to Adela, while USAID provided long-term funding to financial institutions created by Adela with local Latin American investors. Adela funded over 1,000 private companies for a total amount of $ 2.5 billion. The size of these investments varied from small printing companies to large steel mills, pulp and paper, hotels, resorts and chemicals. It helped start local development finance companies, which themselves financed even more businesses. At its peak, assets reached half

3198-634: The Netherlands, W. Earle McLaughlin , Chairman of the Royal Bank of Canada . Henry Ford II of the Ford Motor Company , William Blackie of Caterpillar , Sam Carpenter III of du Pont , Max Eisenring , Chairman of Swiss Reinsurance , Thomas J. Watson Jr. of International Business Machines , Yoshinzane Miki of The Fuji Bank , Oskar Nathan of Dresdner Bank and Samuel Schweiser of Swiss Bank Corporation . Adela's Managing Director, Ernst Keller ,

3280-431: The United States where SBC focused primarily on commercial banking for corporate clients. Within Switzerland, SBC remained a full-service bank with a domestic retail banking network and an asset management business. SBC prospered throughout the 1950s and embarked on a period of sustained growth. The bank, which had entered the 1950s with 31 Branch Offices in Switzerland and three abroad, more than doubled its assets from

3362-421: The bank's development. Although SBC survived the war intact, it suffered the loss of its investments in a number of large industrial companies. Nevertheless, the bank surpassed CHF 1 billion for the first time at the end of 1918 and grew to 2,000 employees by 1920. In 1918, SBC purchased Métaux Précieux SA Métalor to refine precious metals and produce bank ingots. the company would be established as

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3444-533: The bank's embarrassment in the Long Term Capital Management collapse in 1998 brought a degree of closure to the issue. Swiss Bank Corporation found itself in relatively strong financial condition at the end of World War II, with CHF 1.8 billion of assets. By contrast, the Basler Handelsbank (Commercial Bank of Basel), founded in 1862 and one of the largest banks in Switzerland,

3526-416: The capital to start his own firm. SBC had established a strategic relationship with O'Connor , which was the largest market maker in the financial options exchanges in the US, beginning in 1988. O'Connor had been looking to partner with a larger financial institution and in 1989 entered into a currency joint venture with SBC that proved to be the first step towards a sale of O'Connor to SBC. Following

3608-525: The day on a stock exchange. An arbitrage mechanism is used to keep the trading price close to net asset value of the ETF holdings. At the end of 2018, there were 1,988 ETFs in the United States with combined assets of $ 3.3 trillion, accounting for 16% of the U.S. industry. Unit investment trusts (UITs) are issued to the public only once when they are created. UITs generally have a limited life span, established at creation. Investors can redeem shares directly with

3690-524: The end of the war to CHF 4 billion by the end of the 1950s and doubled assets again by the mid-1960s, exceeding CHF 10 billion in 1965. SBC acquired Banque Populaire Valaisanne, Sion, Switzerland , and the Banque Populaire de Sierre. The firm continued to open new offices in the US in the mid-1960s and it was also at this time that SBC began to expand into Asia and opened representative offices throughout Latin America. The bank opened

3772-450: The firm already, however Dillon Read partners balked at ING's integration plans. After its acquisition by SBC, Dillon Read was merged with SBC-Warburg to create SBC-Warburg Dillon Read. The Dillon Read name was discontinued after the merger with Union Bank of Switzerland although it was brought back in 2005 as Dillon Read Capital Management , UBS's ill-fated hedge fund operations. Aggressively pushing ahead its various acquisitions, UBS

3854-551: The fund at any time (similar to an open-end fund) or wait to redeem them upon the trust's termination. Less commonly, they can sell their shares in the open market. Unlike other types of mutual funds, unit investment trusts do not have a professional investment manager. Their portfolio of securities is established at the creation of the UIT. In the United States, at the end of 2018, there were 4,917 UITs with combined assets of less than $ 0.1 trillion. Some collective investment vehicles have

3936-546: The fund. Each fund has a defined investment goal to describe the remit of the investment manager and to help investors decide if the fund is right for them. The investment aims will typically fall into the broad categories of Income (value) investment or Growth investment. Income or value based investment tends to select stocks with strong income streams, often more established businesses. Growth investment selects stocks that tend to reinvest their income to generate growth. Each strategy has its critics and proponents; some prefer

4018-475: The growth achieved a net loss is achieved. This can greatly increase the investment risk of the fund by increased volatility and exposure to increased capital risk. Gearing was a major contributory factor in the collapse of the split capital investment trust debacle in the UK in 2002. Collective investment vehicles vary in availability depending on their intended investor base: Some vehicles are designed to have

4100-420: The hopes of earning modestly higher returns. An example of active management success When analysing investment performance, statistical measures are often used to compare 'funds'. These statistical measures are often reduced to a single figure representing an aspect of past performance: Depending on the nature of the investment, the type of 'investment' risk will vary. A common concern with any investment

4182-504: The industrialization of the country and the construction of railroads in the mid-19th century. The Basler Bankverein was formally organized in 1872 in Basel, replacing the original Bankverein consortium. Basler Bankverein was founded with an initial commitment of CHF 30 million, of which CHF 6 million of initial share capital was paid in. Among the Bankverein's early backers

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4264-424: The investment fund. The fund manager managing the investment decisions on behalf of the investors will of course expect remuneration. This is often taken directly from the fund assets as a fixed percentage each year or sometimes a variable (performance based) fee. If the investor managed their own investments, this cost would be avoided. Often the cost of advice given by a stockbroker or financial adviser

4346-504: The largest losses of any European bank during the subprime mortgage crisis and the bank was required to raise large amounts of outside capital from the Government of Singapore Investment Corporation , the Swiss government and through a series of equity offerings in 2008 and 2009. Swiss Bank Corporation, prior to its merger with Union Bank of Switzerland was the result of the combination of dozens of individual firms, many of which date to

4428-706: The leverage it required to consummate the merger. It would become clear that the derivatives losses prompted UBS to accept the terms proposed by SBC more readily than they otherwise would have. UBS , the successor of the Union Bank of Switzerland, is among the largest diversified financial institutions in the world. As of 2010, UBS operated in all of the major financial centers worldwide with offices in over 50 countries and 64,000 employees globally. In November 2000, UBS merged with Paine Webber an American stock brokerage and asset management firm led by chairman and CEO, Donald Marron . The acquisition pushed UBS to

4510-411: The market will perform better than others. Passive management —Passive managers stick to a portfolio strategy determined at outset of the fund and not varied thereafter, aiming to minimize the ongoing costs of maintaining the portfolio . Many passive funds are index funds , which attempt to replicate the performance of a market index by holding securities proportionally to their value in the market as

4592-664: The merger, O'Connor was combined with SBC's money market , capital market and currency market activities to form a globally integrated capital markets and treasury operation. A number of O'Connor executives were brought into key positions within the bank in an attempt to cultivate a more entrepreneurial culture at SBC. In 1994, SBC followed up its acquisition of O'Connor by acquiring Brinson Partners an asset management firm focused on providing access for US institutions to global markets. Founded by Gary P. Brinson, an innovator in financial management, Brinson Partners had emerged as one of largest managers of pension plans and also managed

4674-463: The mid-1990s. SBC also acquired Chicago-based Brinson Partners and O'Connor & Associates . These acquisitions formed the basis for a global investment banking business. In 1998, SBC merged with Union Bank of Switzerland to form UBS , the largest bank in Europe and the second largest bank in the world. The company's logo, which featured three keys, symbolizing "confidence, security, and discretion",

4756-422: The next five years built up the firm to approximately US$ 36 billion of assets under management. SBC paid US$ 750 million to acquire Brinson Partners, which resulted in a profit to Brinson and his partners of US$ 460 million on the sale of their 75% stake in the company. Following the acquisition of Brinson Partners, Gary Brinson ran SBC's asset management business and after the merger with UBS, Brinson

4838-491: The outbreak of the war and was intended as a safe place to store assets in case of an invasion. During the war, the bank's traditional business fell off and the Swiss government became its largest client. Overall, SBC saw its business grow as a result of its wartime government underwriting business. Decades after the war, it was demonstrated that Swiss Bank Corporation likely took an active role in trading stolen gold, securities and other assets during World War II. In 1997,

4920-411: The power to borrow money to make further investments; a process known as gearing or leverage . If markets are growing rapidly this can allow the vehicle to take advantage of the growth to a greater extent than if only the subscribed contributions were invested. However this premise only works if the cost of the borrowing is less than the increased growth achieved. If the borrowing costs are more than

5002-603: The private sector to complement governmental programs under the Alliance for Progress. He presented his ideas to a NATO parliamentary meeting in Paris in November 1963. His proposal was endorsed by the delegates, who passed a resolution recommending that the secretaries general of the Organization of Economic Cooperation and Development (OECD), the Organization of American States (OAS) and

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5084-606: The proceeds in a new business. The company also made medium term loans for specific projects, but its primary function was to provide risk capital to Latin American businesses. On occasion, Adela acted as an entrepreneur by taking the lead in creating a new business. Adela worked closely with the Inter-American Development Bank (IDB), the International Finance Corporation (IFC) and the United States Agency for International Development (USAID). The IDB and

5166-445: The providers without bearing this cost. Although the investor can choose the type of fund to invest in, they have no control over the choice of individual holdings that make up the fund. If the investor holds shares directly, he has the right to attend the company's annual general meeting and vote on important matters. Investors in a collective investment vehicle often have none of the rights connected with individual investments within

5248-445: The purpose or effect of which is to enable persons taking part in the arrangements (whether by becoming owners of the property or any part of it or otherwise) to participate in or receive profits or income arising from the acquisition, holding, management or disposal of the property or sums paid out of such profits or income". Collective investment vehicles may be formed under company law , by legal trust or by statute . The nature of

5330-465: The time of the merger, Union Bank of Switzerland and Swiss Bank Corporation were the second and third largest banks in Switzerland, respectively, both trailing Credit Suisse . Discussions between the two banks had begun several months earlier, less than a year after rebuffing Credit Suisse 's merger overtures. The all-stock merger resulted in the creation UBS AG , a huge new bank with total assets of more than US$ 590 billion. Also referred to as

5412-480: The top Wealth and Asset Management Firm in the world. Initially the business was given the divisional name "UBS PaineWebber" but in 2003 the 123-year-old name Paine Webber disappeared when it was renamed "UBS Wealth Management USA." The bank would grow considerably in the 2000s, building a large investment banking franchise to compete with the major US and European bulge bracket firms. However, UBS suffered major setbacks in 2007, 2008 and 2009. UBS suffered among

5494-525: The top management positions were filled by legacy Swiss Bank professionals. Additionally, UBS professionals suffered more headcount reductions, particularly in the investment banking unit where there were heavy cuts in the corporate finance and equities businesses. Prior to the merger, Swiss Bank Corporation had built a global investment banking business, Warburg Dillon Read through its acquisitions of Dillon Read in New York and S.G. Warburg in London. SBC

5576-445: The top spot following its 1995 acquisitions of Schweizerische Volksbank and Winterthur Group . Swiss Bank began the 1990s as the weakest of the "Big Three" Swiss banks but by the end of 1997 would be the driving force behind the merger with Union Bank of Switzerland . SBC had been impacted by losses on its real estate investments and a series of minor controversies, despite the bank's historically conservative posture. Beginning in

5658-466: The underlying assets. A closed-end fund issues a limited number of shares (or units) in an initial public offering (or IPO ) or through private placement. If shares are issued through an IPO, they are then traded on a stock exchange . or directly through the fund manager to create a secondary market subject to market forces . The price that investors receive for their shares may be significantly different from net asset value (NAV); it may be at

5740-526: The vehicle and its limitations are often linked to its constitutional nature and the associated tax rules for the type of structure within a given jurisdiction. Typically there is: Please see below for general information on specific forms of vehicles in different jurisdictions. The net asset value (NAV) is the value of a vehicle's assets minus the value of its liabilities. The method for calculating this varies between vehicle types and jurisdiction and can be subject to complex regulation. An open-end fund

5822-601: Was a Swiss investment bank and financial services company located in Switzerland. Prior to its merger, the bank was the third largest in Switzerland, with over CHF  300 billion of assets and CHF 11.7 billion of equity. Throughout the 1990s, SBC engaged in a large growth initiative, shifting its focus from traditional commercial banking into investment banking , in an effort to match its larger Swiss rival Credit Suisse . As part of this strategy, SBC acquired US-based investment bank Dillon Read & Co. as well as London-based merchant bank S.G. Warburg in

5904-602: Was adopted by UBS after the 1998 merger. Although the combination of the two banks was billed as a merger of equals, it quickly became evident that from a management perspective, it was SBC that was buying UBS. Nearly 80% of the top management positions were filled by legacy Swiss Bank professionals. Today, what was SBC forms the core of many of UBS's businesses, particularly UBS Investment Bank . Swiss Bank Corporation traces its history to 1854. In that year, six private banking firms in Basel, Switzerland , pooled their resources to form

5986-482: Was advised on business issues by Peter Drucker of the United States, on political matters by Alejandro Orfila of Argentina, a two time Secretary General of the Organization of American States , and on shareholder relations with Marcus Wallenburg Sr. of Sweden. Adela was designed to make minority investments in private corporations in the developing countries of Latin America. The company sought to divest its holdings once they became profitable and would then reinvest

6068-471: Was billed as a merger of equals, resulted in SBC's shareholders receiving 40% of the bank's common shares and Union Bank's shareholders receiving 60% of the combined company. SBC's Marcel Ospel was named chief executive officer while Union Bank's Mathis Cabiallavetta became chairman of the new bank. However, it quickly became evident that from a management perspective, it was SBC that was buying UBS as nearly 80% of

6150-451: Was consistently the largest of the three major Swiss Bank by assets, except for short periods in 1962 and 1968 when UBS temporarily moved ahead of SBC. After 1979, although its balance sheet had grown to CHF 74 billion of assets, the bank would typically rank second to UBS which firmly established itself as the largest Swiss bank in the 1980s. SBC would retain this position for the next 15 years until Credit Suisse leapfrogged into

6232-529: Was designed by a Swiss artist and illustrator, Warja Honegger-Lavater . On the eve of World War II , SBC was the recipient of large influxes of foreign funds for safekeeping. Just prior to the outbreak of World War II, in 1939, Swiss Bank Corporation made the timely decision to open an office in New York City. The office was able to begin operations, located in the Equitable Building , just weeks after

6314-417: Was generally considered to be further along than UBS in developing its international investment banking business, particularly in the higher margin advisory businesses where Warburg Dillon Read was considered to be the more established platform. After the merger was completed, it was widely speculated that a series of losses suffered by UBS on its equity derivative positions in late 1997 provided SBC with

6396-595: Was incorporated in Luxembourg on September 24, 1964. It hired a Swiss engineer, Ernst Keller , as its first managing director and opened its operations center in Lima, Peru, in early 1965. Adela's founders set out five objectives: A total of 242 private banks and companies invested in Adela. No one shareholder was allowed to own more than 1% of the company so that no single investor could exert excessive influence over its operations. As

6478-434: Was insolvent at the end of the war and was consequently acquired by SBC in 1945. SBC remained among the Swiss government's leading underwriters of debt in the post-war years. However, by 1947 SBC was shifting its focus back to its traditional business of lending money principally to private companies as part of the postwar rebuilding of Europe. Meanwhile, the firm continued its expansion to international markets, particularly

6560-532: Was mired in a series of entanglements with activist shareholders who were critical of bank's relatively conservative management. Martin Ebner , through his investment trust, BK Vision became the largest shareholder in UBS and attempted to force a major restructuring of the bank’s operations. The groundwork for the merger of SBC and UBS was actually laid by their mutual competitor, Credit Suisse which had approached UBS about

6642-450: Was named chief investment officer of UBS Global Asset Management . SBC's next made a major push into investment banking with the acquisition of S.G. Warburg & Co. a leading British investment banking firm in 1995 for US$ 1.4 billion. S.G. Warburg was founded by Siegmund Warburg , a member of the Warburg banking family . After World War II, S.G. Warburg established a reputation as

6724-619: Was the Bank in Winterthur , one of the early predecessors of the Union Bank of Switzerland . The bank experienced initial growing pains after heavy losses in Germany caused the bank to suspend its dividend in favor of a loss reserve. By 1879, Basler Bankverein has accumulated enough capital to resume dividends, initially at an 8% annual rate and then increasing to 10% in 1880. Basler Bankverein later combined with Zürcher Bankverein in 1895 to become

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