-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, T0ZttIC+ceXJtWp4bMwE6sfiC1U4gFx7gQMMSJnyrZg7Zt2OTeA/2PuyRWuZStJq vpnBFHxYxLfEucqVQ19qCw== /in/edgar/work/0000950157-00-000560/0000950157-00-000560.txt : 20001017 0000950157-00-000560.hdr.sgml : 20001017 ACCESSION NUMBER: 0000950157-00-000560 CONFORMED SUBMISSION TYPE: 425 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20001016 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: PAINE WEBBER GROUP INC CENTRAL INDEX KEY: 0000075754 STANDARD INDUSTRIAL CLASSIFICATION: [6211 ] IRS NUMBER: 132760086 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 425 SEC ACT: SEC FILE NUMBER: 001-07367 FILM NUMBER: 740548 BUSINESS ADDRESS: STREET 1: 1285 AVE OF THE AMERICAS CITY: NEW YORK STATE: NY ZIP: 10019 BUSINESS PHONE: 2127132000 MAIL ADDRESS: STREET 1: 1285 AVENUE OF THE AMERICAS CITY: NEW YORK STATE: NY ZIP: 10019 FORMER COMPANY: FORMER CONFORMED NAME: PAINE WEBBER INC DATE OF NAME CHANGE: 19840523 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: PAINE WEBBER GROUP INC CENTRAL INDEX KEY: 0000075754 STANDARD INDUSTRIAL CLASSIFICATION: [6211 ] IRS NUMBER: 132760086 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 425 BUSINESS ADDRESS: STREET 1: 1285 AVE OF THE AMERICAS CITY: NEW YORK STATE: NY ZIP: 10019 BUSINESS PHONE: 2127132000 MAIL ADDRESS: STREET 1: 1285 AVENUE OF THE AMERICAS CITY: NEW YORK STATE: NY ZIP: 10019 FORMER COMPANY: FORMER CONFORMED NAME: PAINE WEBBER INC DATE OF NAME CHANGE: 19840523 425 1 0001.txt 425 Filed by Paine Webber Group Inc. Pursuant to Rule 425 under the Securities Act of 1933 ----------------------------------------------------- Subject Company: Paine Webber Group Inc. Commission File No. 1-7367 October 16, 2000 As in most presentations, all the following discussions today contain forward-looking statements, and our actual results may differ materially from those discussed here. Additional information concerning factors that could cause such a difference can be found in our most recent quarterly reports and other publicly disclosed financial reports. Any forward-looking statements made with regard to PaineWebber in these presentations are subject to the successful completion of the merger. This communication is not a solicitation of a proxy from any security holder of Paine Webber Group, Inc. UBS and PaineWebber have filed with the Securities and Exchange Commission a proxy statement/prospectus mailed to PaineWebber security holders and other relevant documents concerning the planned merger of PaineWebber into a subsidiary of UBS. WE URGE INVESTORS IN PAINEWEBBER TO READ THE PROXY STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS TO BE FILED WITH THE SEC, BECAUSE THEY CONTAIN IMPORTANT INFORMATION. 1 PaineWebber Strategy Seminar Presentation October 16, 2000 2 Joseph J. Grano, Jr. President, PaineWebber Incorporated 3 Why PaineWebber? - -------------------------------------------------------------------------------- PaineWebber is widely recognized as one of the leading financial services powerhouses in the U.S. wealth management market. o Power of the brand o Focus on largest and fastest growing market of investors o Unique approach and process for serving the affluent segment o Aggressive use of technology to leverage relationships between clients and advisors o History of successful execution in penetrating our target markets 4 A Growth Firm in a Growth Industry - -------------------------------------------------------------------------------- Over the past 10 years, PaineWebber has more than doubled its market share in what continues to be the world's fastest growing financial market. U.S. Household PaineWebber Financial Assets ($ Trillions) Client Assets ($ Billions) - Liquid Financial Assets(1) - All Other CAGR: 10% CAGR: 22% --------- --------- $35 $484 $22 [GRAPHIC OMITTED] $216 $14 $74 1990 1995 2Q00 1990 1995 2Q00 PaineWebber's Market Share: 1990 1995 2Q00 --------------------------- ---- ---- ---- Of Total H/H Financial Assets 0.5% 1.0% 1.4% Of Liquid Financial Assets(1) 0.9% 1.8% 2.5% (1) Excludes discretionary pension assets, defined benefit plan assets, life insurance reserves, and equity in non-corporate businesses. Source: Federal Reserve 5 U.S. Target Market (Trillions) - -------------------------------------------------------------------------------- PaineWebber's marketing strategy is uniquely focused on the core affluent market - the segment with the largest, fastest growing pool of investable assets. $19.2 Investable Assets $31.6 Investable Assets [GRAPHIC OMITTED] [GRAPHIC OMITTED] Affluent $14.6 Affluent $27.6 Core Core Affluent Affluent $12.5 Core Affluent $24.6 CAGR = 18% 1999 2003 Core 7% of households Core 11% of households Affluent = 65% of investable assets Affluent = 78% of investable assets Note: Affluent: Households with $100,000 income and/or $500,000 in net worth Core Affluent: Households with $500,000+ in investable assets Source: Spectrem Group/PSI, Federal Reserve 6 Trillion Dollar Opportunities - -------------------------------------------------------------------------------- PaineWebber is uniquely positioned to capitalize on the demographic trends that will continue to influence the flow of investable assets into the wealth sector. Projected Value of Bequests Estimated Dollars in 401(k) Received by U.S. Baby Boomers Plans to be Rolled Over or Cashed Out ($ Billions) ($ Billions) Cumulative Opportunity = $3.8 Cumulative Opportunity = $1.5 Trillion Trillion $246 $118 [CHART OMITTED] [CHART OMITTED] $92 $34 1995 2000 2005 2010 2015 2000 2005 2010 2015 2020 Source: Avery & Rendall, Cornell Dept. Source: VIP Forum estimates of Consumer Economics & Housing; for retirees VIP Forum Baby Boomers include Adjusted for inflation those born in the US between 1946 and 1964 inheritances discounted two percent for inflation and adjusted for estate taxes 7 Strong Momentum - -------------------------------------------------------------------------------- Our principal strategy has been one of asset gathering, enabling us to grow the size of our franchise while broadening relationships with our clients. Key Strategic Drivers --------------------- Client Assets ($ Billions) Fee-Based Assets ($ Billions) CAGR: 19% CAGR: 23% [CHART OMITTED] [CHART OMITTED] $480 $209 $423 $169 $352 $132 $297 $108 $245 $89 $216 $78 1995 1996 1997 1998 1999 3Q00 1995 1996 1997 1998 1999 3Q00 Wrap Fee Assets ($ Billions) RMA Accounts(1) (Thousands) CAGR: 43% CAGR: 21% [CHART OMITTED] [CHART OMITTED] $6 770 $47 625 $31 502 $21 423 $15 361 $11 315 1995 1996 1997 1998 1999 3Q00 1995 1996 1997 1998 1999 3Q00 (1) PaineWebber's central asset account for clients 8 Building a Stable Revenue Stream - -------------------------------------------------------------------------------- In offering PaineWebber clients the choice of a variety of attractive fee-based products and pricing alternatives, we continue to grow recurring fee income, resulting in more predictable revenue flows and reduction in the volatility of earnings. Recurring Fees ($ Millions) Recurring Fees and Net Margin Interest as a Percent of Fixed Expenses(1) CAGR: 26% [CHART OMITTED] [CHART OMITTED] 110% $1,477 99% $1,148 91% $921 78% $700 69% $571 62% $498 1995 1996 1997 1998 1999 3Q00 1995 1996 1997 1998 1999 3Q00 *YTD Annualized (1) Includes salary, payroll-related, communications, occupancy, computer- related and amortization and depreciation 9 Strong Momentum - -------------------------------------------------------------------------------- PaineWebber has produced record earnings in four of the last five years and seven of the last nine years, indicative of a growth firm in a growth industry. Key Financial Results(1) ---------------------------- Net Revenue ($ Millions) Pre-Tax Earnings ($ Millions)(2) CAGR: 12%(3) CAGR: 33%(3) [CHART OMITTED] [CHART OMITTED] $5,290 $4,405 $4,451 $1,035 $4,112 $3,735 $715 $722 $3,350 $673 $560 $333 1995 1996 1997 1998 1999 9 Months 1995 1996 1997 1998 1999 9 Months 2000 2000 Return on Common Equity Book Value Per Common Share [CHART OMITTED] [CHART OMITTED] $22.77 21.9% 22.4% 22.6% $20.04 19.6% $16.76 19.1% $13.80 13.1% $12.19 $10.41 1995 1996 1997 1998 1999 9 Months 1995 1996 1997 1998 1999 3Q00 2000 (1) Excludes one-time charges (2) Before taxes and minority interest (3) Compound annual growth rate (1995-1999) 10 A Changing World 11 Evolving Trends - -------------------------------------------------------------------------------- o U.S. = one half of the world's investable assets o Defined benefit to defined contribution is being embraced by Europe o Multiple listings are spreading to various countries o The Euro, the Dollar and the Yen are the dominant currencies o Consolidation accelerating - UBS Warburg-PaineWebber - CSFB-DLJ - Dresdner-Wasserstein - Chase-JP Morgan o Technology and foreign stocks globalize investors o Asset allocation models shift toward regional diversity 12 Financial Market Triad - -------------------------------------------------------------------------------- [GRAPHIC OMITTED -MAP-] 13 Leading Client Base in All Major Wealth Centers - -------------------------------------------------------------------------------- The combination of UBS and PaineWebber will create the premier global private client distribution and wealth advisor network focused on the high net worth and affluent client segments. Proforma assets by client domicile(1) ---------------------------------- UBS UBS and PaineWebber Combined [PIE CHART OMITTED] [PIE CHART OMITTED] 4% 37% 49% 27% -----> 69% 14% Europe & rest of World Switzerland USA NOTE: (1) High net worth and affluent clients only SOURCE: UBS Group analysis 14 The Top Five Countries Account for 82% of Wealth Households - -------------------------------------------------------------------------------- UBSW will leverage PaineWebber's success and know-how to further develop a global model for the private client market, as many of the same dynamics that have fueled investment growth in the U.S. have begun to impact the wealth markets in Europe. TOTAL EUROPEAN WEALTH BY COUNTRY, 1999 - 2002E ---------------------------------------------- 1999 2002E $14.3 Trillion $20.1 Trillion 43.5 M Affluent Households 54.4 M Affluent Households [PIE CHART OMITTED] [PIE CHART OMITTED] 12% CAGR Belgium Belgium Austria Austria Sweden 18% Sweiden 19% Switzerland Switzerland Germany Denmark Denmark 26% Netherlands Netherlands Germany 81% Spain 26% Spain 7% 7% 82% Italy Italy UK 12% UK 12% 21% 21% France France 16% 15% Affluent = 73% of Investable Assets Affluent = 77% of Investable Assets Note: 1999 data estimated based on 1997 Datamonitor survey and projected 1997- 2002 growth rate Affluent segment defined as having USD 100K or greater in investable assets Source: Datamonitor estimate 1999 (not yet published) 15 European Wealth Management Strategy - -------------------------------------------------------------------------------- UBSW, together with PaineWebber, is developing a European wealth management strategy. o An efficient, proprietary, on-shore advisor-centric distribution model in key European markets o Strategic relationships with key intermediaries in European markets to service affluent investors o Single technology/operations platform across Europe with fully integrated processing and front-end systems tailored to each country's specific needs 16 E-Services Considerations - -------------------------------------------------------------------------------- Consistent with UBSW's global strategy, e-services will be developed to combine high level technology applications with the involvement of a financial advisor to facilitate a targeted approach to high net worth and affluent investors in Europe. o Single pan-European business o Consistent front-end for clients, client advisors and intermediaries o Single legal entity o Outsource execution, clearing and settlement where appropriate o No geographical or legal constraints with the EU on where we place our data or call centers o Build capacity to allow 1-2 acquisitions per year 17 Global Private Client Strategy - -------------------------------------------------------------------------------- UBSW is sensitive to the early mover advantage, but not to the detriment of a well developed, fully tested, high quality e-services offering on the level we require for ourselves and our clients. Timeline -------- 11/30/00 12/31/00 6/30/01 o-------------------------o---------------------o o Completion of o Completion of o Completion of UBSW/PWJ UBSW/PWJ integrated Pacific Merger business integration Rim strategic plan o Completion of integrated European Strategic Plan o Completion of e-services repositioning plan 18 A Powerful Strategic Fit - -------------------------------------------------------------------------------- The combination of the two organizations, UBSW and PaineWebber, leverages the considerable global institutional clout of UBSW together with the PaineWebber private client distribution strength to create the pre-eminent globally integrated investment services firm. o The premier global institution serving private clients o Leading institutional client franchise o Excellent blend of content and distribution and mutually enhancing businesses o Shared business philosophy: commitment to clients' interests and personal service o Growth and high quality earnings - top line revenue growth - quality fee-based revenue stream - strong asset growth o Import/export of content and knowledge 19 Leveraging UBSW Content to Enhance Our Offering to Customers - -------------------------------------------------------------------------------- PaineWebber will be able to leverage UBSW core capabilities to create strong franchise businesses to better serve the core affluent. [GRAPHIC OMITTED] Foreign Equity Risk management Banking Exchange Products for HNW Products Global ADR Securities Common/ Preferred Franchise Stock Businesses Domestic Domestic Preferred Common Stock Stock Convertibles/Equity Linked Alternative Municipal Investments Investments Securities 20 The Power of Distribution - -------------------------------------------------------------------------------- Mark B. Sutton President, Private Client Group 21 Private Client Group - -------------------------------------------------------------------------------- Goal ---- To be the premier, most productive, national full-service securities firm serving the wealth management needs of the affluent segment of the private client market. 22 Private Client Group - -------------------------------------------------------------------------------- PaineWebber's broker-centric model, where the financial advisor is at the forefront of all interaction with the client, is what makes PaineWebber unique, and drives us to provide the highest quality training and support for our financial advisors. 8,688 o One of the largest distribution forces in the U.S. with presence in all regions 7,576 o A company that fosters the success of its financial advisors through 6,951 a professional environment and a relationship with clients 6,249 o Active recruiter of high caliber financial advisors targeted to meet 6,095 the needs of affluent investors o Ongoing professional development at all levels of experience 1996 1997 1998 1999 3Q00 23 A Leader in Productivity - -------------------------------------------------------------------------------- PaineWebber is among the industry leaders in productivity per financial advisor. This is driven by our focus on an affluent client base, highly trained financial advisors and technology applications that provide maximum support to our professionals and clients. Assets per Financial Advisor (1) Productivity per Financial Advisor (1) ($ Millions) ($ Thousands) $80 $600 $79 $567 $60 $450 $45 $375 $40 $300 1996 1997 1998 1999 3Q00 1996 1997 1998 1999 3Q00 (1) Excludes trainees and FAs with less than 3 years experience [GRAPHICS OMITTED] 24 Payoff on Trainee Investment - -------------------------------------------------------------------------------- PaineWebber believes in financial advisor training at all levels of experience, including an investment in the aggressive recruiting and training of new financial advisors. Number of Trainees Hired 1999 Production ($ Thousands) 1,341 1,216 $200 1,200 $120 652 579 $55 1996 1997 1998 1999 2000E 1998 1997 1996 Trainee Trainee Trainee Class Class Class [GRAPHICS OMITTED] 25 Accelerate Asset Growth - -------------------------------------------------------------------------------- Investors vote with their money...PaineWebber continues to attract net new assets from clients. Net New Client Assets per Day ($ millions) $160 $141 $95 $98 $60 1996 1997 1998 1999 9 Months 2000 [GRAPHICS OMITTED] 26 Benefits of Fee-Based Approach - -------------------------------------------------------------------------------- PaineWebber's strategy to derive a higher percentage of fee-based revenues has resulted in an increasing amount of our client relationships transitioning from a transactional nature.
o Fee-based assets now Fee-Based Assets ($ Billions) over 40% of client assets $240 o Increased stability of $209 earnings with reduced $180 Total Fee-Based Assets reliance on more volatile businesses $120 CAGR: 23% $78 o Enhances relationship $ 60 Wrap Fee Assets $61 between financial advisor $11 and client $ 0 CAGR: 43% 1995 1996 1997 1998 1999 3Q00 o Affluent clients continue to embrace fee-based products (managed Fee-Based Revenues (1) as a Percentage accounts, InsightOne, of Retail Net Revenues PACE, etc.) 40% 36.0% 30% 23.5% 20% 1995 1996 1997 1998 1999 3Q00 (1) Including Net Margin Interest
[GRAPHICS OMITTED] 27 Fusing of Advisor & Client & Technology - -------------------------------------------------------------------------------- PaineWebber's clients have embraced the PaineWebber EDGE, our state of the art online service, which when combined with our financial advisor, our client and our technology, enables PaineWebber to deliver the value proposition our clients expect. PaineWebber EDGE EDGE Client Assets EDGE Client Households ($ Billions) (Thousands) CAGR: 151% CAGR: 160% 1997 1997 - ----- ---- 1Q $ 9 1Q 11 2Q $16 2Q 20 3Q $22 3Q 28 4Q $26 4Q 35 1998 1998 - ---- ---- 1Q $32 1Q 43 2Q $37 2Q 51 3Q $45 3Q 59 4Q $60 4Q 71 1999 1999 - ---- ---- 1Q $ 74 1Q 86 2Q $ 89 2Q 103 3Q $ 99 3Q 124 4Q $140 4Q 176 2000 2000 - ---- ---- 1Q $166 1Q 208 2Q $184 2Q 249 3Q $226 3Q 312 Average Assets Per EDGE Household: $724,000 46% of Client Assets are Online Via the EDGE [GRAPHICS OMITTED] 28 Leveraging UBSW Content to Enhance Our Offering to Customers Research Products - -------------------------------------------------------------------------------- o Over 600 Equity o Structured Products Analysts Covering 4,000 Companies o Foreign Exchange Products o International Research Expertise (UBSW ranked o Liability Vehicles 4th globally, 3rd in both Europe and Asia by Institutional Investor) [GRAPHICS OMITTED] 29 Merger Benefits for Private Client Group - -------------------------------------------------------------------------------- The ever-increasing sophistication in the wealth management needs of the PaineWebber affluent investor requires a global framework, one that will combine research, creativity in investment products and the highest levels of financial advice. This merger delivers that global scale. o Opportunity to leverage UBS Warburg underwriting product flow o Distribution of global product and research o Increased capability to offer specialized credit-enhanced and structured products to affluent clients o Continued mandate to be leader in developing and deploying technology to enhance client relationships o Newly enhanced global hiring platform [GRAPHICS OMITTED] 30 Leveraging Technology to Enhance Client Relationships - -------------------------------------------------------------------- Marten S. Hoekstra Director of Marketing, Private Client Group [GRAPHICS OMITTED] 31 Strategic Marketing Goal - -------------------------------------------------------------------------------- Further strengthen the relationship between clients and their financial advisors by offering the best combination of advisors and online services to households with investable assets of $500K+ [GRAPHICS OMITTED] 32 Affluent Investor Value Chain - -------------------------------------------------------------------------------- PaineWebber understands that the needs and wants of the affluent investor are unique and differ greatly from other investor classes. Peace of Mind: the most sought-after end-state Financial Security: the most important psycho-social benefit Smart Investment Decisions: the most important direct benefit FA Attributes (70%) Company Attributes (30%) Confidence and trust Confidence and trust Someone who understands their goals Product choices A long-term relationship Customized statements Someone with their best interests at heart Strong reputation and financial stability [GRAPHICS OMITTED] 33 Financial Advisors Dominate the Investment Services Landscape - -------------------------------------------------------------------------------- Online brokerage assets will represent approximately 10 percent of the total investable assets of U.S. households in 2003, while almost 90% of household assets will be in the hands of financial advisors. U.S. Online Assets by 2003 $40 o Online Brokerage Assets o Total Household Investable Assets $30 $31.6 Trillions $20 $19.2 $10 $4.0 $1.5 $ 0 2000E 2003E Sources: Federal Reserve Household Balance Sheet Forrester Research, Piper Jaffray, Jupiter Communications [GRAPHICS OMITTED] 34 Key Drivers to Accelerate Business Growth - -------------------------------------------------------------------------------- PaineWebber will drive business growth by focusing on four key levers that will help build our market presence with core affluent investors. o Building a differentiated brand image o Drive usage of our best-of-breed investment services o Aggressive application of technology designed to strengthen financial advisor/client relationships o Leveraging technology to build a comprehensive financial management platform to spur client asset consolidation [GRAPHICS OMITTED] 35 Most Distinctive & Compelling Attributes - -------------------------------------------------------------------------------- Potential Attributes o Best Advisors o Latest Technology o Performance o Fee-Based o Trusted Company o On-line Trading o New Products o Firm for Affluent o Caring and Friendly o Value o Best Research o Reliable o Best Training Most Compelling Attributes o Financial advisors take the time to understand clients' needs and goals o Helps you make decisions based on what is right for you - not thousands of generic investors [GRAPHICS OMITTED] 36 PaineWebber Brand Positioning - -------------------------------------------------------------------------------- At PaineWebber we understand that the best investment decisions are the ones that are right for you, not thousands of generic investors. We take the time to understand your goals and needs so that you feel confident in the investment decisions you make. This is why PaineWebber clients experience a unique peace of mind when it comes to their financial well-being and are inclined to say... "Thank you PaineWebber" [GRAPHICS OMITTED] 37 Meeting the Need for Advice - -------------------------------------------------------------------------------- Core affluent investors are demanding a best-of-breed advice-based offering from their financial providers to help them make the right financial decisions. Approximately 70% of core affluent investors* say that an advisor cannot be truly objective unless he/she sells or recommends a wide range of products and services offered by many providers. - 1999 Spectrem/PSI Affluent Survey As A Result, Our Focus Is To Deliver: Comprehensive Unbiased Investment Advice * $ 500K - 1MM in investable assets [GRAPHICS OMITTED] 38 PaineWebber's Best-of-Breed Investment Services Offering - -------------------------------------------------------------------------------- We are committed to offering a comprehensive array of product and service choices which give PaineWebber clients access to the financial management services best suited to meet their goals. o PACE -- Mutual fund consulting program providing investor profiling, asset allocation, portfolio selection, variety of investments, and ongoing performance measurement o ACCESS -- Institutional management of individual accounts through fixed income, balanced, equity, global and international equity portfolios by leading institutional money managers o Portfolio Management Program (PMP) -- Program in which certified financial advisors manage equity, balanced or fixed income investments on an advisory basis o SELECTIONS -- Equity management program in which specially trained financial advisors manage portfolios on an advisory basis, using PaineWebber Research "1" and "2" rated stocks o InsightOne -- A fee-based, non-discretionary account that blends the best products, services and technology with the insight of a personal financial advisor. o Non-Proprietary Mutual Fund Sources -- Distribution of leading, high quality non-PaineWebber mutual funds on a preferred vendor basis [GRAPHICS OMITTED] 39 Marketing Technology Strategy - -------------------------------------------------------------------------------- The seamless integration of online capabilities with the "offline" financial advisor/client relationship deepens and broadens the client experience. Channel Channel Distributing Conflict Mixing Relationships Online 1998 Feb 1999 June 1999 The successful integration of technology and advice provides both the client and the financial advisor with a more personalized and collaborative PaineWebber experience. [GRAPHICS OMITTED] 40 New Business Opportunity -- Corporate Employee Services - -------------------------------------------------------------------------------- Value Proposition Provide education, along with guidance and advice, to the employees of our corporate clients geared towards helping them navigate through the process of managing and building wealth. Enable access to a set of proprietary and non-proprietary online/offline product and service solutions. Portal Provide access to: benefits information, education, appropriate decision support tools and commensurate executional capabilities FA Network eBranch Provide face-to-face Provide remote advice advice and guidance for and servicing to clients clients with >= $200K in with < $200K in investable assets investable assets Corporations & their Employees [GRAPHICS OMITTED] 41 Strategic Online Services (EDGE) - -------------------------------------------------------------------------------- PaineWebber is leveraging technology to build a comprehensive financial management platform offering personalized content and services, designed to spur client asset consolidation. Past 2000+ Beyond Respond to Online Redefine The Central Account Access Asset Account Needs
Key RMA-1980s PaineWebber PaineWebber Online Services Features EDGE 1997 2000 + Beyond Personalization None Mass E-lerts Customization FA/client control content & experience Date Aggregation None None Across accounts Across institutions Center of Client Some None Bill payment across institutions Cash Flow EFT Bill Presentment Decision Support None Limited PW Research Third Party Content Financial Planning Tools Reporting Portfolio Management Tools
[GRAPHICS OMITTED] 42 PaineWebber Online Services - -------------------------------------------------------------------------------- PaineWebber's Online Services enhance the advisor/client relationship by focusing on the unique needs of core affluent investors. [GRAPHICS OMITTED] 43 PaineWebber [GRAPHICS OMITTED] -----END PRIVACY-ENHANCED MESSAGE-----