UBP announces new business model and response to investors' Madoff losses

As the hedge fund industry adapts to address new challenges in the financial industry and anticipated future market conditions, UBP is taking an active role and transforming its business model.

New Business Model:

As part of its plan, UBP has created a new senior executive position to guide and direct all research efforts and to chair the investment committee. The new Head of Research will oversee all "bottom-up" aspects of UBP's investment process, as well as the approved list of hedge fund managers. In addition, the Investment Risk Management function will now be separate and independent from Portfolio Management and will focus on risk management at both the manager and portfolio levels. The primary principle being triangulation - full independence between manager, administrator, and custodian.

Standing Side-by-Side with Investors:

Another key element of the plan UBP announced today is designed to reinforce its partnership with its clients by offering a comprehensive financial package. The Bank has decided to make a goodwill gesture and has offered to acquire from its eligible clients' the Madoff-related investments for 50% of the cost basis of their investment by paying them 1/5 of the purchase price each year, plus 2% interest, over the course of five years. The Bank shows its long term commitment to stand side-by-side with its clients.