For whatever life brings
2010 Reports and Accounts www.unicreditanduniversities.eu Printed on certified recycled chlorine-free paper. Everyone knows that life can be surprising. Many of these surprises are good things. Some are not so good. That is why people need their bank to be a reliable partner, helping them to deal with whatever life brings.
Because this year’s report is inspired by real life, its graphics portray some of life’s more pleasant aspects, as well as a few of its less enjoyable features. Thus, the images present a range of contrasts, and our cover offers up a kaleidoscope of moments drawn from daily life.
That is simply how life works. From the exciting to the ordinary, from the expected to the unanticipated, life is always changing and makes demands on all of us.
And UniCredit is here to lend a hand.
Our job is about more than offering products and managing transactions. It is about understanding the needs of our customers as individuals, families and enterprises. Our goal is to deliver solutions for the everyday issues that people face. This means providing them with concrete answers - day by day, customer by customer, need by need.
2010 Reports and Accounts For whatever life brings Governing Bodies
Board of Directors
Dieter Rampl Chairman
Anna Simioni Vice-Chairman
Marco Annunziata Directors Willibald Cernko Federico Ghizzoni Antonella Massari Theodor Weimer
Secretary General
Giannantonio De Roni
Board of Auditors
Giorgio Loli Chairman
Claudia Cattani Standing Members Elisabetta Magistretti
UniCredit & Universities Knight of Labor Ugo Foscolo Foundation Non-profit Organization Italian Presidential Decree no. 255 of 28.3.1967 (Official Gazette, no. 118 of 12 May 1967) Registered Office: Via Alessandro Specchi, 16 - 00187 Rome Business Office: Via Santa Margherita, 12 - 20121 Milan Tax Code: 80024350581
UniCredit & Universities · 2010 Reports and Accounts 3 For whatever life brings Scientific Committee
Scientific Committee
Franco Bruni Chairman
Silvia Giannini Members Tullio Jappelli Catherine Lubochinsky Giovanna Nicodano Reinhard H. Schmidt Josef Zechner
UniCredit & Universities · 2010 Reports and Accounts 5 Chairman’s Letter
To become a leading European “ player in support of the best students and researchers is and will remain our greatest challenge. ”
6 2010 Reports and Accounts · UniCredit & Universities Thanks to its ongoing commitment to support the At the foundation, we do not see our results as just best European talents, the UniCredit & Universities another positive mark on our record, but rather as Foundation achieved excellent results in 2010, an incentive to work longer, harder and better. fielding more initiatives and providing more financial We do so with the full knowledge that to succeed grants to students and researchers. in the dynamic world of academia, one must relentlessly seek out advanced initiatives and The feedback from this surge of activity was solutions to meet the needs of Europe’s finest overwhelmingly positive, as reflected by the young talent. significant increase in the number and the national diversity of applicants for its competitions. Finally, I would like to thank all those who enabled the UniCredit & Universities Foundation to fulfill its These positive trends were matched by the commitment this year and, in particular, the Board quality and academic value of the submissions of Directors, the Board of Auditors and the Scientific received. This year’s winning research projects Committee, whose contributions have been were outstanding scientific efforts that made real invaluable to our success. contributions to their fields of inquiry.
Furthermore, by the number and variety of initiatives launched during the past year, the foundation has signaled its intention to become a leading European player in support of the best students and researchers in economics and finance. Looking ahead, achieving this goal will remain our greatest ambition and our greatest challenge.
To date, we remain encouraged by the significant appreciation expressed for our work by award recipients and the communities in which we operate.
Moving rapidly to build on this support, we have proposed a new series of initiatives and built firm relationships with leading universities and research centers that, like us, aim to promote the study of economics without regard to geographical, political or cultural boundaries. In the future, these partnerships will surely create new and exciting opportunities for young European students and Dieter Rampl researchers. Chairman
UniCredit & Universities · 2010 Reports and Accounts 7 For whatever life brings Contents
Annual Report 11 The Foundation’s Purposes 12 Highlights 13 Management Analysis 14 Activities 18 Main Goals 30
Financial Statements 35 Balance Sheet 36 Report on Operations 37 Notes on the Accounts 38 Annexes 47
Report of the Board of Auditors 49
UniCredit & Universities · 2010 Reports and Accounts 9
Annual Report
The Foundation’s Purposes 12 Highlights 13 Management Analysis 14 Activities 18 Support for Studies 18 Support for Research 22 Other Initiatives 27 Main Goals 30
UniCredit & Universities · 2010 Reports and Accounts 11 Annual Report
The Foundation’s Purposes
On the basis of Article 2 of the foundation’s statute, the UniCredit & Universities Foundation does not pursue profit and operates with the following purposes:
TO PROMOTE studies and initiatives designed to deepen knowledge in the 1academic fields of finance, economics, law, politics and the social sciences.
TO AWARD, annually, one 2 or more scholarships.
TO ESTABLISH awards for dissertations or for special academic 3 work in the academic fields of finance, economics, law, politics and the social sciences.
TO PROPOSE and SUPPORT 4 academic initiatives.
12 2010 Reports and Accounts · UniCredit & Universities Highlights
During 2010, the foundation launched 12 initiatives (7 in 2009) Expenses for ordinary operations amounted to a total of €1.65 that yielded 34 awards (8 in 2009). million (€0.85 mln in 2009).
Expenditures related to the launch of all 2010 initiatives As of the date on which the financial statements were amounted to €1.02 million (€0.66 mln in 2009). approved, the network of foundation scholarship students included a total of 25 students and researchers. Expenditures can be broken down as follows: • initiatives in support of studies: 64% In 2010, the foundation received 522 applications. Since the • initiatives in support of research: 33% start of its operations in January 2009, the foundation has • other initiatives: 3% received 800 applications.
Number of initiatives Number of award recipients (Unit) (Unit) 12 34
+71% +325%
7
8
2009 2010 2009 2010
Investment in new initiatives Breakdown of expenditures (€ million) for new initiatives in 2010 (%)
1.02 +55% 33
0.66
64 Initiatives in support of research 3 Other initiatives Initiatives in support of studies 2009 2010
Expenses for ordinary operations Number of applications received (€ million) (Unit)
1.65 522 +88% +94%
278 0.85
2009 2010 2009 2010
UniCredit & Universities · 2010 Reports and Accounts 13 Annual Report
Management Analysis
2010: THE FIRST FULL YEAR OF OPERATION FOR THE FOUNDATION
In 2010, the foundation’s primary objective was to support the Six of the 12 initiatives launched this past year are new. These best European talent in the fields of economics and finance. arose both from existing initiatives, which have subsequently been This goal was pursued through an increasingly broad and refined, and from entirely new projects. well-structured range of initiatives. In addition to the introduction of a range of new initiatives, an The most striking aspect of the foundation’s activities was their important part of the activities performed during the year by the European character. Through its support for study and research, foundation concerned the creation of a large and sturdy network the foundation fully reflects the impressive geographic and cultural of international relationships. diversity of UniCredit, which fully funds and, through its values, also inspires the foundation’s daily work. The European scope of This network is essential to efforts to: the foundation’s work has been essential to its ability to achieve its results, which would not have been possible had it remained 1. reach the best European talent worldwide; focused exclusively on Italy. 2. start collaborations with the best universities, with the aim of developing effective new initiatives. The foundation is further distinguished by its intense focus on innovation, particularly in regard to new initiatives. It believes that Networking activities included the organization of meetings with innovation is central to achieving its objectives without burdening major European universities located both within and outside the itself with preexisting activities, particularly since the academic geographic scope of UniCredit’s operations. Within this scope, the environment is evolving with increasing speed and complexity. foundation worked to build relationships with:
All the winners of 2010 initiatives, with Dieter Rampl (Chairman of the Board of Directors of the UniCredit & Universities Foundation), Franco Bruni (Chairman of the Scientific Committee of UniCredit & Universities Foundation), Giannantonio De Roni and Annalisa Aleati (General Secretary and Scientific Responsible of UniCredit & Universities Foundation).
14 2010 Reports and Accounts · UniCredit & Universities 1. Corvinus University of Budapest; knowledge of the foundation’s work and receive answers to 2. Koç University of Istanbul; their questions. 3. Graduate School of Management of St. Petersburg; 4. School of Economics of Warsaw; In 2010, the foundation also extended the thematic scope of its 5. Warsaw University. activities, introducing new initiatives in support not only of doctoral programs, but also of master’s programs and economic research. Outside of UniCredit’s geographical scope, collaboration agreements were signed with some of the most important This extension was entirely in line with the foundation’s mission European economics schools: to support the very best talent in Europe, whether students or young researchers. This past year, the foundation was pleased to 1. Barcelona Graduate School of Economics - University of Pompeu discover that such talent is not exclusively concentrated among Fabra; graduates pursuing doctorates, and that equally talented individuals 2. London School of Economics and Political Science; may be identified among those students who, after attaining an 3. Stockholm School of Economics; undergraduate degree, choose to pursue a master’s degree. 4. Toulouse School of Economics. The Scientific Committee played an important role in 2010, These schools were chosen with a view to guaranteeing the providing the Board of Directors with a series of suggestions foundation’s ability to provide support to the very best students designed to assure the foundation’s ability to achieve its objectives from the countries in which UniCredit operates, at the universities efficiently. where they most often choose to continue their studies. In turn, the Board of Directors carefully appraised these This network was developed principally through a series of suggestions and approved initiatives that, in some cases, were meetings that involved both the heads of the departments extremely innovative and had the potential to support areas of of economics and finance and the students themselves. study and research that would simply not have been considered This format enabled department heads to acquire first-hand had more traditional methods been proposed.
UniCredit & Universities · 2010 Reports and Accounts 15 Annual Report
Management Analysis (CONTINUED)
Particular attention was also paid to students and researchers from The ratio of administrative costs and total expenses has thus Central and Eastern Europe. Specific initiatives targeting this group dropped to 8.8% from the 13% recorded for 2009, thanks both secured an unexpectedly high number of participants. to a focus on the cost side and an increase in assets allocated to initiatives. Overall, the foundation achieved a better geographical balance with respect to participation in its initiatives. In the previous year, General administrative costs over total expenses (%) participation was relatively unrepresentative of UniCredit’s actual geographical reach.
It must be stressed that participation in the foundation’s initiatives 13 by students and researchers from countries of Central and Eastern Europe was distinguished not only by the high number of 9 participants but also by the high quality of the scientific research presented.
In 2010, the foundation also worked to develop opportunities in which the knowledge acquired by the winners of scholarships 2009 2010 and fellowships could be shared with the Italian academic world. To this end, the foundation arranged for the winners of the Crivelli Fellowships to hold seminars as part of degree courses in economics at Trieste University (which receives the foundation’s Main Achievements financial support), and to participate in certain activities during UniCredit events. In 2010, the UniCredit & Universities Foundation achieved excellent results both in terms of quantity and quality. In figures, the foundation The work of UniCredit & Universities was conducted within the has almost doubled the number of initiatives it fielded in 2009, from particularly challenging context of this past year. Probably due seven to 12, yielding a total of 34 winners, up from eight in 2009. to the still-uncertain economic situation, a reduced number of students sought to enroll in doctoral or master programs Investment in 2010 initiatives amounted to abroad, thus leading to a corresponding decline in the number of €1.02 million (up from €660,000 in 2009). applications for scholarships. A breakdown of foundation activities into three main areas reveals that funds allocated to This phenomenon can be explained in several ways, not least by supporting studies represented 64% of total the uncertainties that most young graduates face, which may push assets, funds allocated to supporting research represented 33%, and them toward a rapid entry into the working world, rather than a the remaining 3% was allocated to other initiatives. prolonged period of study. When assessing the success of the foundation’s activities, the This situation has affected all major countries similarly and, in verified academic results achieved by our scholars must also be many cases, has gone hand-in-hand with a reduction of public and considered. All contests relating to scholarships and fellowships private funding for study and research. include regular monitoring of the winners’ subsequent studies by assigned tutors. The renewal of grants (annual for In this context, the foundation chose to move in a careful manner scholarships and biannual for fellowships) is always subject to against the tide, increasing the number of initiatives and the the achievement of positive evaluations. financial commitment made in support of its activities. In 2010, in line with the positive recommendations of all tutors, Great attention was also paid to the foundation’s efficiency, with the the foundation renewed all of the grants that were due to expire. awareness that only by limiting administrative costs could the This result confirms the high quality of all contest winners and intentions of UniCredit be properly fulfilled. the seriousness with which they are pursuing their goals and commitments with the foundation.
16 2010 Reports and Accounts · UniCredit & Universities www.unicreditanduniversities.eu Disclosure and Engagement Tools
From the beginning, the foundation was committed to creating a web-based operating model and avoiding most hard-copy documents.
This was a choice dictated by the need to: 1. act efficiently and quickly both during the launch of initiatives and during application and review processes; 2. limit costs for both the foundation and the applying students and researchers; 3. maintain the same intensity of communication in all countries worldwide, as the foundation’s decision to operate internationally meant that it had to reach students and researchers from all five continents.
To this end, the foundation has its own website, which is progressively becoming its main operating platform. Through the website, the foundation: 1. launches all initiatives; www.unicreditanduniversities.eu 2. manages all applications, as students and researchers electronically submit all required application materials; 3. enables members of the Scientific Committee to review the applications; 4. keeps the community that has been created around the website constantly informed on all future initiatives and events that will be taking place during the year; 5. provides full disclosure of its operations, including the members of its corporate bodies and of the Scientific Committee, financial statements and more detailed information.
The choice to work primarily via the internet has naturally required supplementing the foundation’s website with complementary tools, including a Facebook profile and a Twitter page. Thanks to its use of these two social networks, the foundation has further improved its efficiency, above all during the launch phase of new initiatives.
As the foundation’s website is core to all activities, analysis of its usage patterns has provided key insights into the dynamics of UniCredit & Universities. In 2010, the number of visitors to the website almost tripled, to 32,063, up from 10,056 in 2009, with 22,744 new visitors, up from 7,106 in 2009. It recorded 142,468 page views during the year, up from 51,700 in 2009. The changes in the site’s traffic sources are also significant, as the share of referring websites remains high at 55.7%, up from 51.4% in 2009, while the share of direct traffic has increased significantly, to 23%, up from 14.3% in 2009.
The website’s usage patterns further confirms the progress that has been made in terms of the internationalization of the foundation. In 2010, visitors from Italy Facebook:/UniCredit-Universities twitter.com/UniCredit_Univ comprised only 60% of all traffic, down from 70% in 2009. The second-largest source of visitors to the foundation’s website has become Germany, with almost 4% of all traffic, followed by Serbia, the United States and the United Kingdom.
Moreover, in 2010 visitors to the website came from 125 different countries, up from 91 in 2009. The share of European visitors dropped slightly, to 91.7%, down from 92.7% in 2009. The share of American visitors also dropped from 5.6% to 3.3%, while the share of visitors from Asia is up from 1.5% to 2.4%. This latter figure is almost exclusively due to the increase in visitors from Turkey.
UniCredit & Universities · 2010 Reports and Accounts 17 Annual Report
Activities
THE FOUNDATION’S ACTIVITIES ARE CLASSIFIED WITHIN THREE MAJOR CATEGORIES:
1. support for studies 3. other initiatives 2. support for research
This is an initiative that is managed in the best tradition of the Crivelli 1. INITIATIVES Scholarships, which were created in 2002 by UniCredito Italiano. It also incorporates the positive lessons learned from the 2009 launch of the IN SUPPORT OF STUDIES Foscolo Europe Scholarship, which enabled the foundation to verify the existence and scope of the international market for such initiatives as The Crivelli Europe Scholarships scholarships. The Crivelli Scholarships are for students who are studying economics, banking and/or finance and wish to pursue a doctorate abroad. Starting Consequently, the foundation created a contest to in 2010, the scholarships focus on students from any of the 22 assign three scholarships - at least one of which must countries1 in which UniCredit operates. To underline the new European always go to a female applicant - that is open to all scope of this initiative, it has been renamed the “Crivelli Europe students from the European countries in which Scholarships.” UniCredit operates.
SCHOLARS’ MAP 10 2
6
8 1 5 3 7 9 4 1 2 3
1. Crivelli Fellowship, 2nd ed. - Emiliomilio CalvCalvano,ann from HarvardHarvar to Bocconi, Milan 5. Crivelli Scholarship, 6th ed. - MMarco Di Maggio, MIT. 2. Foscolo Europe Fellowswship,hip 1stt ed. - EmilianoEmil Santoro,oro fromrom Copenhagen Co enhagg 6. Crivelli Scholarship, 7th ed. - GGiorgia Piacentino, London School of Economics. University to Catholic Universityersity of Milan.Milanan. 7. Crivelli Scholarship, 7thh ed. - RobertoR Robatto, University of Chicago. 3. Foscolo Europe Fellowship, 2nd ed. - MMirco Toninonin, f rom Southampton Universin ty (UK) 8. Crivelli Scholarship, 8th ed. - MichelaMi Giorcelli, Stanford University. to Central European University of Budapestt. 9. Crivelli Scholarship, 8th ed. - SStefanotefano Mosso, University of Chicago. th 4. Crivelli Scholarship, 6 ed. - Giulia La Mattina,a, BostoBoston University. 10. Foscolo Europe Scholarship 1stt ed.d. - Audinga Baltrunaite, Stockholm University.
1. List of the 22 countries that comprise the geographical scope of UniCredit: Austria, Azerbaijan, Bosnia and Herzegovina, Bulgaria, Croatia, the Czech Republic, Estonia, Germany, Hungary, Italy, Latvia, Lithuania, Kazakhstan, Kyrgyzstan, Poland, Romania, Russia, Serbia, Slovakia, Slovenia, Turkey and Ukraine.
18 2010 Reports and Accounts · UniCredit & Universities In this way, the foundation aims to underline its commitment to a European scope, by offering identical opportunities to the best graduates from any of the 22 countries.
The size of the scholarship awards, which include the full payment of university fees and an annual stipend of €25,000 to cover the cost of living and related travel, has not been changed.
In 2010, 77 students of 10 different nationalities applied to the ninth edition of the Crivelli Europe Scholarship. Given that 39 students applied for the same From left to right: Giannantonio De Roni, Secretary General of the UniCredit scholarship in 2009, this 97% increase in & Universities Foundation; Josef Zechner, member of the Scientific the number of applicants was significant. Committee of the UniCredit & Universities Foundation; Manuel Mayer, winner of the 2009 Leopold Gratz Scholarship; Doris Tomanek, representing Bank Moreover, it is important to note that this impressive result was Austria; Annalisa Aleati, Scientific Responsible of the UniCredit & Universities Foundation, during the prize ceremony of the first edition of the Leopold recorded despite the overall decline in the number of students Gratz Scholarship. applying for scholarships in general in 2010.
The recipients of the ninth edition of the Crivelli Europe Scholarship UniCredit & Universities’ support for this initiative demonstrates were Enrico Cantoni, Ludovica Gazzè and Alessandro the degree to which the foundation focuses on local initiatives Vecchiato, who have chosen to enroll in doctoral programs in the within the geographical scope of UniCredit. The foundation United States. believes that these local initiatives maintain vital traditions and highlight the close ties that bind Group entities to their local communities. The Leopold Gratz Scholarship Named in honor of a former mayor of Vienna, in 2010 the second edition of this contest targeted The Masterscholarships project 1 top students either with a degree in economics To complete the foundation’s range of initiatives in support of scholarship or finance from any Austrian university or looking the studies of top European students in 2010, the UniCredit & to enroll in a master’s or doctoral program at an Universities Foundation considered it important to support students Austrian university. who, after graduation, decided to pursue a master’s degree, i.e., an interim specialization course between a bachelor’s and a doctoral Award recipients will be granted €25,000 for the academic year degree. 2011-2012. This is a new area for the foundation. The scholarship is directly and fully funded by Bank Austria’s Up until the previous year, support to young Leopold Gratz Foundation. The UniCredit & Universities 4 graduates had only been provided to those who Foundation supports this initiative by providing its expertise in scholarships chose to pursue a doctorate abroad for at least the assessment of applicants. Professor Josef Zechner, who is two years. a member of the UniCredit & Universities Scientific Committee, worked with the Leopold Gratz Foundation to screen applicants Thus, with a view to defining the Masterscholarships project, this past year. He is a Full Professor of Finance at the University UniCredit & Universities held a series of meetings in 2010 with four of Vienna and director of the doctoral program of the Vienna of the most prestigious schools of economics in Europe: Graduate School of Finance (VGSF). • Barcelona Graduate School of Economics - University Pompeu Fabra; • London School of Economics and Political Science; The first edition of the Leopold Gratz Scholarship competition • Stockholm School of Economics; ended on March 31, 2010. The award recipient, Manuel Mayer, • Toulouse School of Economics. was recognized in Vienna on May 14, 2010. Organized by the Gratz Foundation at the offices of Bank Austria in Vienna, the All four schools showed great interest in the project and have played official ceremony was attended by staff representatives and the an active part in defining its content. members of the UniCredit & Universities Scientific Committee.
UniCredit & Universities · 2010 Reports and Accounts 19 Annual Report
Activities (CONTINUED)
Through the Masterscholarships contest, the foundation offers four Unlike the Crivelli Europe Scholarship, candidates for the scholarships to top students who wish to enroll in a master’s degree Masterscholarships apply online at the websites of their respective program in economics or finance for the academic year 2011-12 at universities or master’s programs. The recipients of the four one of the above four schools. The contest is open to all students scholarships, whose names will be published by the end of April from the European countries in which UniCredit operates. 2011, will begin their master’s courses in the fall of 2011. The scholarship covers all university fees plus a monthly stipend to cover the living costs for the entire duration of study. The LUISS School of Government Scholarships The foundation has made agreements regarding this scholarship In 2010, the UniCredit & Universities Foundation directly with the four schools identified above, with provisions for decided to offer six scholarships for two master’s the candidate screening process to take place in two stages. First, 6 programs organized by the LUISS School of the school provides the foundation with a short list of candidates, scholarships Government. LUISS aims to train the future which is prepared in line with each school’s own strict parameters leaders of legislative, administrative, government, for participation in their master’s programs. The foundation then private, research and civil society institutions, both on a national and examines this list and consults with an appointed scientific advisor international level. The foundation allocated three scholarships to before choosing the best candidate. students seeking a Master’s in European Studies and another three to students seeking a Master’s in International Public Affairs. For the first edition of the Masterscholarships, the Board of Directors of UniCredit & Universities, after receiving a recommendation from The contest for the six scholarships was opened to top graduates the Scientific Committee, appointed Professor Michele Polo as from all 22 countries in which UniCredit operates. this initiative’s scientific advisor. He is the pro-rector of Bocconi University of Milan and was a longstanding member of the former The scholarships cover the full cost of enrollment, university fees and Crivelli Commission. The first edition of the initiative was launched in housing. December 2010. These programs, which began in September 2010 and will end
CEE Best PhD Thesis Award 1 Dermendzhieva Zvezda (Bulgaria) 2 Horn Daniel (Hungary) 3 Saxa Branislav (Slovakia) 4 Elgin Ceyhun (Turkey) 5 Rashkova Ekaterina (Bulgaria) 6 Fazekas Dora (Hungary) 7
LUISS School of Government - Rome Master’s in International Public Affairs 7 Ekaterina Burdina (Russia) 8 Aynura Ismaylova (Azerbaijan) 9 Eleonora Mura (Italy)
Master’s in European Studies 10 Dorina Damsa (Romania) 3 11 Petra Tisocki (Hungary) 111 12 Sahizer Samuk (Turkey) 6 2 10
5 8 1 9 4 12
20 2010 Reports and Accounts · UniCredit & Universities in June 2011, are held at the LUISS School of Government’s The CARIM Summer School Scholarships headquarters in Rome and are entirely taught in English. In addition to scholarship contests for master’s or doctoral students, in 2010 the foundation The scholarship recipients come from six different UniCredit 4 also funded four scholarships for the CARIM countries. scholarships Summer School on Euro-Mediterranean Migration and Development (European University For the Master’s in European Studies, the winners are: Institute, Robert Schuman Centre for Advanced Studies). • Dorina Damsa, from Romania; • Petra Tisocki, from Hungary; The scholarships, which are open to graduates from all UniCredit • Sahizer Samuk, from Turkey. countries, were given to four young female students: • Alina Cibea, from Romania; For the Master’s in International Public Affairs, the winners are: • Natasha Yaneva, from Bulgaria; • Eleonora Mura, from Italy; • Semiha Bekir, from Bulgaria; • Aynura Ismaylova, from Azerbaijan; • Valentina Mutti, from Italy. • Ekaterina Burdina, from Russia.
By financing these six scholarships, the foundation confirms its commitment to supporting top talent from all UniCredit countries. In particular, the foundation believes it is vital to support the training of those who will inherit the levers of governance and on whose preparation the prosperity and future of their communities will depend.
Opening of the CARIM Summer School The following directors are present: Rainer Bauboch, European University Institute; Peter Bosch, Brussels European Commission; Philippe Fargues, Director of CARIM, and Giannantonio De Roni, General Secretary of the UniCredit & Universities Foundation.
UniCredit & Universities · 2010 Reports and Accounts 21 Annual Report
Activities (CONTINUED)
The aim of this first edition was to further examine this type of initiative. 2. INITIATIVES IN SUPPORT Thus, while the scope was limited to Italy, the foundation aspires to extend this program to other countries with support needs that are OF RESEARCH structurally similar to those of Italy. The Foscolo Europe Fellowship Fellowships are grants provided to the best The CEE Best PhD Thesis Award young European researchers who have received While the Post-Doc Research Grant focuses exclusively 1 fellowship a doctorate in economics at universities abroad on Italian researchers, the first edition of the CEE and wish to return to a European university to 6 prizes Best PhD Thesis Award was launched in 2010 with continue their research. With the Foscolo Europe a view to rewarding the best papers of economists Fellowship, UniCredit & Universities finances a two-year research and researchers from those Central and Eastern period, renewable for a further two years, with an annual contribution European countries in which UniCredit operates.2 of €60,000 paid directly to the fellowship recipient. For this contest, UniCredit & Universities selected the six best theses Since 2009, the Foscolo Europe Fellowship has targeted researchers in economics, finance, political science and social science written on from the European countries in which UniCredit operates. The second subjects concerning European integration. More specifically, two edition of this fellowship, launched in 2010, was won by Mirco Tonin, prizes were awarded to theses on subjects focused on migration, two an Italian researcher currently at Southampton University. Thanks prizes to subjects on economic development and demography, and a to UniCredit & Universities, he will move to the Central European further two prizes on unrestricted topics. University of Budapest in the fall of 2011. The six best theses will each receive €5,000 and will be published in the Working Papers series of the foundation. Thirty-five applicants from 15 The Post-Doc Research Grant different countries were admitted to the final round of evaluations. In addition to its European initiatives for students and researchers, the foundation has also decided to develop projects that are more locally focused, with a view to providing concrete support to well-defined categories of top students THE SIX CONTEST WINNERS ARE 3 grants or researchers, as necessary. Therefore, the first edition of the Post-Doc Research Grant was launched in July 2010 to support the three best research projects in MIGRATION economics and finance presented by young researchers working at 1. Dermendzhieva Zvezda Italian universities. (Bulgaria) 2. Horn Daniel The grant recipients, selected at the end of 2010 by the Scientific (Hungary) Committee of UniCredit & Universities after all candidates were personally interviewed, are as follows (in alphabetical order): 1. Andrea Colciago from the University of Milan-Bicocca, with a ECONOMIC DEVELOPMENT research project entitled: “Endogenous Market Structures and Labor 1. Saxa Branislav Market Dynamics”; (Slovakia) 2. Francesco Drago from the Parthenope University of Naples, with 2. Elgin Ceyhun a research project entitled: “Belief Formation, Crime and Economic (Turkey) Shocks”; UNRESTRICED 3. Salvatore Piccolo from the Federico II University of Naples, 1. Rashkova Ekaterinannaa with a research project entitled: “Corporate Control and Banking (Bulgaria) Competition under Non-exclusive Lending”. 2. Fazekas Dora The three researchers will each receive an annual grant of €10,000 (Hungary) to finish their projects over a two-year period. They will present their results to UniCredit’s top management. 2. See note 1: Italy, Austria and Germany are excluded.
22 2010 Reports and Accounts · UniCredit & Universities The UWIN Best Paper Award The UniCredit Best Paper Award The UniCredit & Universities Foundation, in cooperation Unlike any other initiative described thus far, the with the UniCredit Women’s International Network UniCredit Best Paper Award - now in its second 3 prizes (UWIN), in 2010 launched the first edition of the UWIN 3 prizes edition - focuses only on researchers employed by Best Paper Award. UniCredit, at any bank or legal entity of the Group.
The contest, open to all young economists and researchers of the 22 With the UniCredit Best Paper Award, the three best papers in the countries in which UniCredit operates, aims to reward research focused fields of economics, finance, law and social sciences are awarded on the study of the female condition in Europe, with particular €5,000 each. Winning papers are selected also based upon the reference to economic development and labor market topics. Awards interest of their contents to the Group. will be presented to the three best papers on the topic of: “Economic consequences of gender equality in Europe.” Nationality of participants in the UniCredit Best Paper Award contest (%) Thanks to the support of UWIN, which has donated €12,500 to the foundation, the three best submissions will each receive a prize of Other Turkey 19 €5,000 and will be published in the Working Papers series of the 26 Italy foundation. Other 29 43 Croatia 8 The contest, although included and approved in the foundation’s 2010 6 8 Germany Romania activity plan, will end in May 2011. The names of the winners will be 8 19 published by mid-July 2011. Ucraina 14 10 Russia Bulgaria 10 Italy The selection process will be handled by a commission of international Poland 2009 2010 experts appointed by the Board of Directors on December 14, 2010, upon the recommendations of the Foundation’s Scientific Committee. The members of the commission are: Compared to the 53 applications received in 2009, the foundation 1. Dr. Matthias Doepke of Northwestern University - Illinois, USA; received 87 applications in 2010. While many submissions were 2. Prof. Paola Profeta of Bocconi University of Milan; received from Turkey, Romania and Poland, the participation of 3. Dr. Barbara Petrongolo of the London School of Economics and German, Russian and Bulgarian colleagues was also significant, Political Science. as well of Italian colleagues. Much like last year, the Scientific Committee appreciated the high quality the papers presented.
The UNIEAST Research Grant At the end of the appraisals process, three works prevailed. This is the first edition of this initiative, promoted in cooperation with Turin University and open to The prize was awarded to (in alphabetical order): grants 3 the best researchers from three Central and Eastern 1. Grzegorz Halaj, from Poland; European countries: Poland, Russia and Turkey. The 2. Jan Maruhn and Max Mair, from Germany; project aims not only to consolidate the relationship between UniCredit 3. Alexander Schätz, from Germany. and the Piedmont territory but also to confirm the Group’s commitment to supporting specialized training for the best researchers from Central and The Scientific Committee also awarded special mention to Eastern Europe. the following applicants, whose papers were considered to be particularly interesting: The UNIEAST Research Grant provides three prizes - one for each 1. Piotr Kazmierkiewicz from Poland; selected researcher from the three countries - for a research project 2. Bülent Tekçe from Turkey; in economics, finance, law, political science or social science, to be 3. Daniele Ruspantini and Alessandra Sordi from Italy. conducted at Turin University within one semester, starting in September 2011.
The winners will be named in June 2011 and will each receive a grant of €11,500 to cover all travel and housing costs in Italy. UniCredit will also donate €20,000 in support of this initiative.
UniCredit & Universities · 2010 Reports and Accounts 23 Annual Report
Activities (CONTINUED)
RESEARCH: Foundation Researchers and Research Projects Underway 6 researchers Thanks to the initiatives underway, the foundation can presently boast a significant number of researchers, actively engaged in research thanks to the funding that has been made available to them.
As of December 31, 2010, the UniCredit & Universities Foundation had funded five researchers: Emilio Calvanoo, winner of the second Crivelli Fellowship; Emiliano Santoro, winner of the first edition of Foscolo Europe; and Andrea Colciago, Francesco Drago and Salvatore Piccolo, winners of the first edition of the UniCredit Post-Doc Research Grant contest. In addition to these, we will shortly be working with the new winner of the second edition of the Foscolo Europe Fellowship, Mirco Tonin.
These are young economists and researchers who are building a future in the academic world by developing high-profile research on themes that are often at the cutting edge, whose implications for the economic system as a whole, and the banking system in particular, may prove to be extremely important.
The following is a brief profile of our researchers and a brief description of the subjects they are exploring.
EMILIO CALVANO Winner of the Second Edition of the Crivelli Fellowship Emilio Calvano, a young researcher in the field of economics, graduated in Political Economics from Bocconi with full marks and distinction in 2003.
He holds a PhD from Toulouse University in France. In 2007, he moved to the United States where he conducted research and taught at Harvard University as Professor Susan Athey’s research assistant. He also taught in Sweden as Professor Mike Burkart’s research assistant at the Stockholm School of Economics. Relationship between Emilio Calvano is an applied theoretical economist whose research mainly focuses on the theory of industrial “new, online information organization. His research interests also include the economics of organization, regulatory policy and channels and the competition, and market design. profitability of old, off-line business His current research principally focuses on online advertising markets and in particular on the relationship models between the newer, online information channels and the profitability of older, “off-line” business models. The intent is to identify the determinants of reduced total revenues in the information industry, which occurred in ” tandem with the shift in consumption towards electronic formats.
24 2010 Reports and Accounts · UniCredit & Universities EMILIANO SANTORO Winner of the First Edition of the Foscolo Europe Fellowship Emiliano Santoro holds a PhD in Economics from Cambridge University . Since September 2008, has been an Assistant Professor of Economics at Copenhagen University and has also engaged in research as a visiting researcher at the Pompeu Fabra University of Barcelona.
Since the fall of 2010, thanks to the Foscolo Europe fellowship, Santoro has returned to Italy to conduct his research at the Catholic University of Milan. The development of “dynamic models of He specializes in monetary economics and the macroeconomics. Within these fields, he is developing his general economic own research project that focuses primarily on the development of dynamic stochastic general equilibrium equilibrium for (DSGE) models for the theoretical and empirical analysis of the inter-connection between the banking sector theoretical and and the macroeconomy. Additionally, intends to develop a general equilibrium framework for the assessment of empirical analysis the asymmetric effects of monetary policy on output and inflation. of links between the banking sector and the macroeconomy” MIRCO TONIN Winner of the Second Edition of the Foscolo Europe Fellowship Mirco Tonin is currently lecturer in Economics at Southampton University in Great Britain. He graduated from Bocconi University of Milan and completed a Ph.D. in Economics at the Institute for International Economic Studies of Stockholm University.
Thanks to the fellowship offered by the foundation, Tonin will be able to pursue his academic studies and research at another prestigious European university, Central European University of Budapest. His work has Analysis of thus far mainly focused on the labor market. Tonin has already published several papers in international “relationships between journals on subjects relating to Labor Economics, often incorporating experimental and behavioral analyses. social behavior and employment At Central European University, thanks to the foundation’s fellowship, Tonin will be able to pursue his project on relationships between social behavior and employment. He will take an in-depth look at problems linked to ” discrimination and benefit from the collaboration of international experts on these subjects.
ANDREA COLCIAGO Winner of the First Edition of the Post-Doc Research Grant Andrea Colciago is a Assistant professor in the Department of Political Economics at the University of Milano Bicocca, where in 2007 he got his Ph.D. in Economics. After his studies, Colciago worked as Economist in the Research Department of the Bank of Italy. In the last two years, he has worked as a visiting researcher at the central banks of Finland and Hungary. His work primarily focuses on macroeconomics and dynamic stochastic general equilibrium (DSGE) models. His post-doctoral research will be devoted to this academic area. How labor market Colciago will set up a DSGE model with endogenous firms’ entry to study the interaction between the goods’ “dynamics are affected market structure and the labor market. This will allow to address some recent empirical evidence concerning by the creation the relationship between the dynamic of the number of producers and the flows in-and-out of employment. and destruction of Moreover, he will use the model to evaluate the effects of Fiscal and Monetary policy intervention on both enterprises ” unemployment and business creation.
UniCredit & Universities · 2010 Reports and Accounts 25 Annual Report
Activities (CONTINUED)
FRANCESCO DRAGO Winner of the First Edition of the Post-Doc Research Grant Since graduating with a doctorate in Economics from the University of Siena in 2006, Francesco Drago has been a lecturer at the Parthenope University of Naples. He has been Visiting researchers abroad, both in Europe - at University College London and the University of Munich - and in the United States - at Columbia University, the University of California, Berkeley, and the Santa Fe Institute. His research interests primarily focus on applied microeconomics and behavioral economics, economics and crime and social interactions. Interrelations The research grant awarded by UniCredit & Universities will allow Drago to pursue in greater depth his “between belief studies on interrelations between beliefs formation, crime and economic shocks. During this period, he will formation, spend time at Harvard University to collaborate with expert colleagues in the field. criminality and economic shocks”
SALVATORE PICCOLO Winner of the First Edition of the Post-Doc Research Grant Salvatore Piccolo earned his master’s at the Toulouse School of Economics and, in 2006, a doctorate from Northwestern University in Illinois. Since 2007, Salvatore Piccolo has been a lecturer at the economics department of Federico II University of Naples. His research interests focus on industrial organization and the benefits theory, particularly with regard to regulation and matters relating to banking systems and corporate finance.
Piccolo’sP research project will focus on these core interests, thanks to the support of the foundation. How banks’ relations with HisH topic is extremely current, and he intends to analyze how banks’ relations with customers are “customers are affected by the affecteda by the compensation systems of top bank managers and information exchange agreements compensation systems of top betweenb banks (with a focus on the exclusive loans/multi-bank system), within a context of moral bank managers and information hazardh problems. exchange agreements between banks within a context of moral hazard problems”
OUR RESEARCHERS AND PROJECTS UNDERWAY
RESEARCHERS RESEARCH PROJECTS
Emilio Calvano: Relationship between new (online) information channels and the profitability of old winner of the second edition of the Crivelli Fellowship (off-line) business models
Emiliano Santoro: Development of dynamic models of general economic balance for theoretical and winner of the first edition of the Foscolo Europe Fellowship empirical analysis of links between the banking sector and the macroeconomy
Mirco Tonin: winner of the second edition of the Foscolo Europe Fellowship Analysis of relationships between social behavior and employment
Andrea Colciago: The implications for the dynamics of the employment market of the creation and winner of the first edition of the Post-Doc Research Grant destruction of enterprises
Francesco Drago: The analysis of existing interrelations between belief formation, criminality and winner of the first edition of the Post-Doc Research Grant economic shocks
Salvatore Piccolo: The implications that the compensation systems of top bank managers and winner of the first edition of the Post-Doc Research Grant information exchange agreements between banks may have for relations with customers within a context of moral hazard problems
26 2010 Reports and Accounts · UniCredit & Universities foundation’s website, are reviewed and selected by the Scientific 3. OTHER INITIATIVES Committee on the basis of criteria that assesses techniques used and the level of the contribution made to the scientific debate. Funding of Two Bachelor’s Degrees in The first working papers are already online. They were selected through the first edition of the UniCredit Best Paper Award contest, Economics at the University of Trieste which ended in March 2010. In addition to these works, there is a In 2010, UniCredit & Universities also confirmed its collaboration with contribution by Manuel Mayer, winner of the first edition of the Leopold the Faculty of Economics of the University of Trieste, co-funding two Gratz Scholarship. three-year degree programs entirely taught in English: “The Economics These contributions will soon be augmented by the new works selected and Management of Innovation” and “The Economics of Financial and for the second edition of the award, as well as the first edition of the Insurance Markets.” CEE Best PhD Thesis Award. As of December 31, 2010, the following works were published in the Both degree programs are open to Italian and non-Italian Working Paper Series section of the website: students, particularly individuals from the CEE. Collaboration No. 10 - Forward Bias Trading in Emerging Markets - Manuel Mayer includes a financial contribution by the foundation to the university No. 9 - Combining VAR Forecast Densities Using Fast Fourier Transform to manage the two courses, as well as the active involvement of - Jakub Rysanek UniCredit & Universities scholars in seminar activities included No. 8 - Modeling of Extremes Application on Electricity Day-ahead Spot in the degree courses. With this initiative, the foundation seeks Prices Time Series - Igor Paholok to stress its commitment to supporting high-quality instruction No. 7 - From Minority Game to Black and Scholes Pricing - Matteo Ortisi for all students - in every country in which UniCredit operates. No. 6 - Evidence on the Liquidity Effect in Euro Area Gov. Bond This collaboration with the University of Trieste also speaks to Markets. A Bayesian VAR Analysis - Stephan Maier the foundation’s ability to bridge the divide between old and new No. 5 - Measuring Prepayment Risk: An Application to UniCredit Family Europe. Financing - Matteo Consalvi, Giovanni Scotto di Freca No. 4 - A Practitioner Approach to Forecasting Cross- section and Aggregated Outcomes - Andrea Brasili No. 3 - The Italian Financial Development and the Regional Impact on Growth - Elena D’Alfonso No. 2 - Corporate Growth: The Role of Financial Structure - Silvia Giannangeli No. 1 - Pricing Distressed CDOs with Base Correlation and Stochastic Recovery - Martin Krekel
Luciano Mauro, professor of economics at the University of Trieste, being interviewed by Andrea Cabrini during the prize ceremony of June 14, 2010.
The Working Paper Series The Working Paper Series was launched in 2010 with the aim of collecting the scientific contributions of all students and researchers who have received the foundation’s support. This includes both employees and others unaffiliated with UniCredit, and encourages a broad circulation of work both within and outside the bank, with a view to encouraging comments, discussions and suggestions.
Research may focus on subjects relating to the various fields in which the foundation operates, namely economics, finance, law, and political and social science. The articles, which are published on the
UniCredit & Universities · 2010 Reports and Accounts 27 Annual Report
Activities (CONTINUED)
The Awards Ceremony During the ceremony, the following individuals received awards: The 2010 awards ceremony represented an important moment 1. Michela Giorcelli and Stefano Mosso, winners of the eighth for the foundation by offering: edition of the Giovanna Crivelli Scholarship; 1. an opportunity for the foundation chairman, the Board of 2. Audinga Baltrunaite, winner of the first edition of the Foscolo Directors, the Scientific Committee and the Board of Auditors Europe Scholarship; to meet the winners of the previous year’s contests; 3. Emiliano Santoro, winner of the first edition of the Foscolo 2. the possibility of bringing together some of the foundation’s Europe Fellowship; most important stakeholders, including managers of the 4. Silvia Giannangeli, Elena D’Alfonso and Martin Krekel, departments in which winners will be working, managers of winners of the UniCredit Best Paper Award; other university initiatives supported during the year and the 5. Andrea Brasili, special mention for the quality of work media; presented for the UniCredit Best Paper Award; 3. an opportunity to summarize the foundation’s activities and 6. Matteo Consalvi, Alexander Giese, Stephan Maier, Jan unveil its new objectives. Marhun, Matteo Ortisi, Igor Paholok and Giovanni Scotto di Freca, special mention for their participation in the Best Paper Award contest.
During the event, two of the foundation’s scholars currently pursuing their Ph.D.s in the United States - Roberto Robatto (University of Chicago) and Marco Di Maggio (Massachusetts Institute of Technology) - participated by video conference. They greeted the new award recipients and talked about the importance of their experience abroad, for which they thanked the UniCredit & Universities Foundation.
Dieter Rampl, Chairman of the Board of Directors of the UniCredit & Universities Foundation, during the awards ceremony on June 14, 2010.
The ceremony was held on June 14, 2010, in Milan, in UniCredit’s Aula Magna auditorium. Attendees included Chairman Dieter Rampl, Deputy Chairperson Anna Simioni, Chairman of the Scientific Committee Professor Franco Bruni, Professor Giovanna Nicodano and Professor Silvia Giannini, members of the Scientific Committee, and Chairman of the Board of Auditors Giorgio Loli.
From left to right: Stefano Mosso, winner of the 2009 Crivelli Scholarship, 8th edition; Michela Giorcelli, winner of the 2009 Crivelli Scholarship, 8th edition; Audinga Baltrunaite, winner of the 2009 Foscolo Europe Scholarship, 1st edition; Emiliano Santoro, winner of the 2009 Foscolo Europe Fellowship, 1st edition.
28 2010 Reports and Accounts · UniCredit & Universities THE FOUNDATION’S NETWORK The foundation is committed to including a significant number of universities from Central and Eastern Europe, thus encouraging the involvement of An important part of the activities carried out during 2010 by the students and researchers from this region in all of its initiatives. foundation focused on the creation of a extensive, sturdy network of international relationships. This is fundamental to reaching the most The creation of a university network is key to spreading awareness of the talented students and researchers worldwide, and to collaborating with the foundation’s activities, alongside communications that are disseminated via best universities in implementing important, new initiatives. the internet and social networks.
The foundation’s network currently consists of two main components: The university network is complemented by a network of scholars, 1. the university network - all relationships with research departments, which has as many individuals as the number of the foundation’s award master’s programs and universities with which current and potential recipients and includes scholars from major European and American collaborations take place; universities. 2. the scholars network - all relationships with students and researchers who have been awarded and with whom the foundation maintains close ties. The foundation maintains close ties with award winners. It provides them concrete support to overcome any logistical difficulties they might The university network was extended during the year. The departments, encounter during their experiences abroad, and involves them in seminars master’s programs and universities with which the foundation collaborates and teaching activities at events and courses organized by UniCredit are primarily those which applicants themselves indicate as their preferred or universities within the foundation’s network. Managing this network places for study. incorporates two key events: the awards ceremony and a Christmas celebration that was originally a tradition among Crivelli Scholarship Thus, the foundation collaborates with those universities that are currently the participants. In 2010, it was broadly extended to bring together the most popular among the most talented students - and those universities that foundation’s awardees and key contacts. best complement the objectives and projects it seeks to support. On both of these occasions, students are able to meet the professors of the In many cases, the first contact with these universities is encouraged by the Scientific Committee and their tutors in order to discuss progress to date and scholars associated with the foundation, who, in their own right, become share future objectives. They are also able to speak with the foundation’s ambassadors of UniCredit & Universities worldwide. management to provide feedback on their personal initiatives.
THE UNIVERSITY 20
NETWORK 3
19 2
5 6
7 11 23 16 18 4 13 8 14 15 9 1 12 17 10 21 22
MASTER’S SCHOLARSHIPS SCIENTIFIC COMMITTEE UNIVERSITY INITIATIVES OTHER RELATIONSHIPS POST-DOC 1 Barcelona Graduate School 5 Paris 2 12 LUISS School of Government 17 Koc University Istambul RESEARCH GRANTS of Economics - University 6 Goethe University Frankfurt 13 University of Trieste 18 Corvinus Budapest 21 Federico II Naples University Pompeu Fabra 7 University of Vienna 19 Warsaw School of Economics 22 Parthenope University 2 London School of Economics FELLOWSHIPS 8 University of Turin 20 GSM St. Petersburg University of Naples and Political Science 14 Bocconi University 9 University of Bologna 23 University of Milan-Bicocca 3 Stockholm School of 15 Catholic University of Milan Economics 10 Federico II University of Naples 16 Central European University 4 Toulouse School of Economics 11 Bocconi University of Milan of Budapest
UniCredit & Universities · 2010 Reports and Accounts 29 Annual Report
Main Goals
For 2011, UniCredit & Universities Foundation has established a number of important objectives with a view to confirming its role in supporting the academic and research pursuits of the best talent throughout Europe.
First and foremost, the foundation will work to consolidate and further extend its international network of relationships with very important universities, which will allow it to best meet the needs of students, researchers and, more generally, the international world of academia. This objective will also help generate proposals for new initiatives of a high scientific profile.
UniCredit & Universities will also work to increase the involvement of scholars in promotional activities, organizing seminars in which they share their projects and progress with a broader public. This particular objective will confirm the foundation’s commitment to generating maximum visibility within the academic world of the results obtained by its scholars, rather than limiting an appreciation of the value generated to the award winners themselves.
To complete the portfolio of its activities proposed in 2010, the foundation will assess the opportunity to extend the scope of its initiatives to include undergraduate students.
Finally, in 2011, there will be a review of the effectiveness of the fields of involvement in which the foundation has thus far concentrated its activities and the preferred methods for their implementation.
These objectives can only be achieved through decisions made by the Board of Directors - decisions that will take into account the in-depth analysis carried out in 2010.
30 2010 Reports and Accounts · UniCredit & Universities
To the Board Members,
We ask you to approve the 2010 Accounts presented herein that show an operating surplus of €120,327, which will be appropriated to increase the operating reserve.
Secretary General Giannantonio De Roni
UniCredit & Universities · 2010 Reports and Accounts 33 For whatever life brings Financial Statements
Balance Sheet 36 Report on Operations 37 Notes on the Accounts 38 Accounting Principles and Valuation Criteria 39 Note on the Balance Sheet and the Report on Operations 40 Annexes 47 A) Breakdown of Securities Portfolio as of December 31, 2010 47
UniCredit & Universities · 2010 Reports and Accounts 35 Financial Statements
Balance Sheet
Assets (Amounts in €) Liabilities (Amounts in €) 12.31.2010 12.31.2009 12.31.2010 12.31.2009 C) Floating assets 2,705,364 1,364,618 A) Net equity 839,779 719,452 II - Receivables 639 - I - Operating reserve 323,322 202,995 5) Due from others 639 - 1) Surplus/Deficit on operations 120,327 -276,249 III - Short-term financial assets not 990,032 1,003,121 in period classified as fixed assets 2) Available reserve 202,995 479,244 2) Other securities 990,032 1,003,121 II - Endowment fund 516,457 516,457 IV - Liquid assets 1,714,693 361,497 D) Payables, with details on each 1,865,585 645,105 1) Bank deposits 1,693,556 341,920 item for amounts due after the subsequent period 2) Cash held at asset 20,937 19,377 management companies 2) Payables for contributions to be 1,791,098 616,000 disbursed 3) Cash and cash equivalents 200 200 on hand 2.1) Crivelli Scholarships 671,742 244,000 due within the following period 280,280 61,000 due after the following period 391,462 183,000 2.2) Crivelli Fellowship 173,622 - due within the following period 60,216 - due after the following period 113,406 - 2.3) Foscolo Europe Scholarships 97,500 110,000 due within the following period 25,000 27,500 due after the following period 72,500 82,500 2.4) Foscolo Europe Fellowship 486,784 252,000 due within the following period 75,432 15,750 due after the following period 411,352 236,250 2.5) Prizes 147,500 10,000 due within the following period 87,500 10,000 due after the following period 60,000 - 2.6) Support to initiatives c/o 78,950 - universities 2.9) Masterscholarships 135,000 - due within the following period 96,903 -
due after the following period 38,097 - 6) Accounts payable 71,407 13,526 7) Taxes payable 3,080 9,046
12) Other payables - 6,533
E) Accruals and deferrals - 61 1) Accrued liabilities - 61 TOTAL ASSETS 2,705,364 1,364,618 TOTAL LIABILITIES 2,705,364 1,364,618
Memorandum accounts 12.31.2010 12.31.2009 Commitments by UniCredit for - 504,000 disbursements futures managed by the Foundation
36 2010 Reports and Accounts · UniCredit & Universities Report on Operations
Expenses (Amounts in €) Revenues (Amounts in €) 2010 2009 2010 2009 1) Expenses from ordinary operations 1,652,047 846,443 1) Revenues from ordinary operations 1,900,000 648,000 1.1) Crivelli Scholarships 640,000 415,958 1.1) Contributions received 1,900,000 648,000 1.2) Crivelli Fellowship 234,000 15,054 4) Financial income and gains 10,944 49,081 1.3) Foscolo Europe Scholarships - 110,000 4.1) From bank deposits 7,503 3,351 1.4) Foscolo Europe Fellowship 250,000 252,000 4.4) From other assets 3,441 45,730 1.5) Prizes 154,984 10,000 7) Other Income 27,281 - 1.6) Supports to initiatives c/o 152,600 40,000 Amounts recovered from scholarships 27,281 - universities and initiatives concluded or not 1.7) Communication costs 16,705 3,431 implemented 1.8) Compensations and expenses 68,758 - for Members of the Scientific Committee 1.9) Masterscholarships 135,000 - 4) Financial expenses and losses 4,371 - 4.4) From other assets 4,371 - 6) General administrative costs 161,480 126,887 6.1) Employees 93,031 68,767 6.2) Other operating expenses 68,449 58,120
TOTAL EXPENSES 1,817,898 973,330 TOTAL REVENUES 1,938,225 697,081 OPERATING SURPLUS 120,327 - OPERATING DEFICIT - 276,249 TOTALS 1,938,225 973,330 TOTALS 1,938,225 973,330
UniCredit & Universities · 2010 Reports and Accounts 37 Financial Statements
Notes on the Accounts
Introduction
The UniCredit & Universities Knight of Labor Ugo Foscolo Foundation was constituted in Rome on July 13, 1966, as “Fondazione Cavaliere del Lavoro Ugo Foscolo, già Presidente del Banco di Roma,” with a restricted equity of 50,000,000 ITL (currently €516,456.90), thanks to subsequent extraordinary contributions made at the end of 1991 by what was formerly Banco di Roma.
The foundation’s current name came into effect on November 16, 2009, the date on which it received approval of its new articles of association from the Prefecture of Rome.
It is categorized as a private, non-profit foundation and has been recognized under Italian Presidential Decree no. 255 of March 28, 1967 (Official Gazette no. 118 of May 12, 1967).
The foundation has the following purpose: • to promote studies and initiatives aiming to increase awareness of economic, financial, legal, political and social matters; • annually award one or more scholarships; • institute prizes for degree theses or specific studies in financial, economic, legal, political and social matters; • propose and support initiatives in the academic world; The foundation consists of: the Board of Directors, the Chairperson, the Secretary General and the Statutory Board of Auditors.
Contents and Form of the Financial Statements
The financial statements were drawn up in accordance with the recommendations issued by the Non-profit Enterprises Commission of the National Board of Chartered and Expert Accountants.
They consist of the Balance Sheet, the Report on Operations and the Notes on the Accounts, and are accompanied by the above Chairman’s Report. The year 2010, which followed the year in which the foundation’s activities were renewed, saw a significant increase in contributions received, which has made it possible to support a greater number of scholarships and initiatives. In this context, the comparisons provided, which depict different situations, are for information only.
The financial year ended with an operating surplus of €120,327. This surplus represented income for the year not yet committed to scholarships and initiatives, as of December 31, 2010, and will be appropriated to increase the operating fund.
The accounts are audited by the Board of Auditors. Since the foundation does not conduct commercial business, its income is not subject to VAT or income tax, but it is subject to IRAP (regional business tax).
38 2010 Reports and Accounts · UniCredit & Universities Accounting Principles and Valuation Criteria
Income and expenses are reported on an accrual basis with the exception of contributions received, which are recorded on a cash basis. Accrual of the costs of ordinary activities is determined on the basis of the expenses incurred by the spending decisions made by the Board of Directors.
Assets Floating assets Receivables are posted at their face value, which coincides with their estimated realizable value. The item “Short-term financial assets - Other securities” includes securities in which the foundation’s funds are invested for asset management purposes until used by the institution. These securities are all priced and valued at market value, understood as the price reported on the last significant trading day of the period, including any accrued income due. Liquid assets are reported at face value.
Accrued income and prepaid expenses These items are calculated in accordance with the accruals concept and in accordance with the general principle of correlation between costs and income in the period.
Liabilities Net equity The Operating Reserve consists of operating results for the current and previous periods. The Endowment Fund is recognized at face value and represents the value of contributions made to this end at the time the foundation was founded or with subsequent deposits.
Payables, with details for each item of amounts due after the following period Payables are reported at their face value. Payables for contributions to be disbursed represent the foundation’s commitment for disbursements not yet made to scholarships and initiatives deliberated. They are divided up according to the type of scholarship or initiative supported. Accounts payable include amounts owed with respect to invoices or bills received as well as the amount of any invoices or bills to be received for services received but not invoiced by the end of the year. Taxes payable include the advance withholding tax on the income of self-employed workers, taxes withheld from scholarship students and the amount of IRAP due. Other payables represent all remaining payables, which, by their nature, are not included in the previous items, including the substitute tax on asset management earnings that has accrued and is owed to the asset management company, which acts as withholding agent. Accrued liabilities and deferred income are calculated in accordance with the accruals concept and the general principle of correlation between costs and income in the period.
Memorandum accounts These represent commitments by UniCredit S.p.A., managed by the foundation to cover the expenses deriving from said commitments, which may be incurred in the years 2010 - 2013.
Expenses Expenses from ordinary operations include all contributions and expenses for scholarships and initiatives approved during the period by the Board of Directors. Financial expenses and losses represent losses deriving from investments in asset management accounts. Administrative costs reflect the costs incurred by the foundation during the reference period to conduct its operations.
Revenues Revenues from ordinary operations represent the donations received during the period. Financial income and gains represent bank interest and income from investments in asset management accounts and repurchase agreements entered into and settled during the period. The item Other Income brings together the remaining revenues, which by nature cannot be included in the previous categories, and includes surpluses recovered on scholarships and initiatives completed or not implemented.
UniCredit & Universities · 2010 Reports and Accounts 39 Financial Statements I Notes on the Accounts
Note on the Balance Sheet and the Report on Operations
Assets (Amounts in €)
12.31.2010 12.31.2009 C) Floating assets 2,705,364 1,364,618 II - Receivables 639 - 5) Due from others 639 -
Receivables due from others represent the substitute tax credit relating to the negative result of asset management as of December 31, 2010, in addition to items currently being prepared.
12.31.2010 12.31.2009 III - Short-term financial assets not classified as fixed assets 990,032 1,003,121 2) Other securities 990,032 1,003,121
Other securities include the value of securities (BOT, BTP, CCT and European government securities) held in portfolio. They are booked at the market value on the last business day of December 2010 and include accrued interest of €8,691. A breakdown of the securities portfolio as of December 31, 2010, is provided in the table in Annex A.
12.31.2010 12.31.2009 IV - Liquid assets 1,714,693 361,497 1) Bank deposits 1,693,556 341,920 2) Cash held at asset management companies 20,937 19,377 3) Cash and cash equivalents on hand 200 200
Bank deposits represent the total of current account balances held at UniCredit S.p.A. These amounts consist of non-binding positions.
Cash held at asset management companies is the cash generated from the asset management relationship indicated under “Other securities.”
Cash and cash equivalents on hand is the balance of petty cash used for current expenses.
12.31.2010 12.31.2009 Memorandum accounts - 504,000
As of December 31, 2010, following deposits made during the year, the commitments of UniCredit S.p.A. were reported to have been repaid.
40 2010 Reports and Accounts · UniCredit & Universities Liabilities (Amounts in €)
12.31.2010 12.31.2009 A) Net equity 839,779 719,452
I - Operating reserve This amounts to €323,322, consisting of the €120,327 operating surplus for the year and €202,935 in available reserve.
II - Endowment fund This was paid at the time of constitution and increased through subsequent payments made by what was previously the Banco di Roma, until reaching the current balance of €516,457.
Changes in Net Equity are indicated in the table below.
TOTAL SHAREHOLDER MANAGEMENT FUND ENDOWMENT FUND EQUITY Start of year 202,995 516,457 719,452 Operating result for the period 120,327 - 120,327 Balance as of 12.31.10 323,322 516,457 839,779
12.31.2010 12.31.2009 D) Payables, with details on each item for amounts due after the subsequent period 1,865,585 645,105
Payables for contributions to be disbursed totaled €1,791,098 and represent the foundation’s commitment to scholarships, research grants and initiatives that have been approved with disbursements to occur in future periods. The following table provides a breakdown of expenses by type and by disbursement period.
UniCredit & Universities · 2010 Reports and Accounts 41 Financial Statements I Notes on the Accounts
Note on the Balance Sheet and the Report on Operations (CONTINUED)
Payables due (Amounts in €) 12.31.2010 WITHIN THE BEYOND THE FOLLOWING PERIOD FOLLOWING PERIOD TOTALS Crivelli Scholarships 280,280 391,462 671,742 Amounts for scholarships - 9th edition 37,500 112,500 150,000 University fees - 9th edition 33,488 186,512 220,000 Amounts for scholarships - 8th edition 50,000 25,000 75,000 University fees - 8th edition 53,023 67,450 120,473 Amounts for scholarships - 7th edition 25,000 - 25,000 University fees - 7th edition 81,269 - 81,269 Crivelli Fellowship 60,216 113,406 173,622 Amounts for fellowships - 2nd edition 60,000 105,000 165,000 Insurance - 2nd edition 216 8,406 8,622 Foscolo Europe Scholarships 25,000 72,500 97,500 Amounts for scholarships - 1st edition 25,000 12,500 37,500 University fees - 1st edition - 60,000 60,000 Foscolo Europe Fellowship 75,432 411,352 486,784 Amounts for fellowships - 2nd edition 15,000 225,000 240,000 Insurance - 2nd edition 216 9,784 10,000 Fees for research grants - 1st edition 60,000 165,000 225,000 Insurance - 1st edition 216 11,568 11,784 Prizes 87,500 60,000 147,500 Post-Doc Research Grant 1st edition 30,000 60,000 90,000 CEE Best PhD Thesis Award 1st edition 30,000 - 30,000 UniCredit Best Paper Award 2nd edition 15,000 - 15,000 UWIN Best Paper Award 1st edition 12,500 - 12,500 Supports to initiatives at universities 78,950 - 78,950 LUISS SoG Master’s Programs 58,950 - 58,950 UNIEAST Research Grants University of Turin 20,000 - 20,000 Masterscholarships 96,903 38,097 135,000 Amounts for scholarships - 1st edition 96,903 38,097 135,000
Accounts payable amounted to €71,407 and included amounts owed with respect to invoices to be received and amounts due to UniCredit S.p.A., in relation to the cost of personnel seconded to the foundation.
Taxes payable totaled €3,080 and included the scholarship students-related advance withholding tax and deductions that were paid to tax authorities in January 2011, and the balance of IRAP due for 2010.
The item Other liabilities, which as of December 31 2009, represented the payables due to the asset management company for substitute tax on the asset management earnings accrued and not yet withheld, on December 31, 2010, did not present a significant balance. This is because, during the 2010 financial year, asset management did not generate earnings, but rather losses.
12.31.2010 12.31.2009 D) Accruals and deferrals -61
12.31.2010 12.31.2009 1) Accrued liabilities -61
As of December 31, 2010, the item Accrued liabilities had no significant balance.
42 2010 Reports and Accounts · UniCredit & Universities Expenses (Amounts in €)
2010 2009 1) Expenses from ordinary operations 1,652,047 846,443 These can be broken down as follows: 1.1) Crivelli Scholarships 640,000 415,958 1.2) Crivelli Fellowship 234,000 15,054 1.3) Foscolo Europe Scholarships - 110,000 1.4) Foscolo Europe Fellowship 250,000 252,000 1.5) Prizes 154,984 10,000 1.6) Supports to initiatives at universities 152,600 40,000 1.7) Communication costs 16,705 3,431 1.8) Compensations and expenses for Members of the Scientific Committee 68,758 - 1.9) Masterscholarships 135,000 -
Doubled up from last year, by virtue of the greater available funds due to the significant increase of contributions received during the year.
The item Crivelli Scholarships amounts to €640,000. It includes the expenses (scholarships and university taxes) sustained for the below-listed editions of the scholarships in memory of Giovanna Crivelli, assigned by contest. From the ninth edition, authorized and launched during the financial year, the Crivelli Scholarships have been extended to a European scope, insofar as they are no longer available only to Italian students, but to students from the 22 countries in which UniCredit operates. Also, the number of scholarships envisaged has been increased from two to three. In addition to the expense of the scholarships launched in financial year 2010, additional costs were incurred for this year, including allocations for the remaining duration of the scholarships launched in previous years by UniCredit S.p.A. The table below provides a breakdown according to edition and type of expense.
Borse di studio Crivelli 640,000 • 9th edition 370,000 • 7th edition 188,750 • 6th edition 55,770 • 5th edition 25,480
Expenditures for scholarships 275,480 • 9th edition 150,000 • 7th edition 75,000 • 6th edition 25,000 • 5th edition 25,480
University taxes 364,520 • 9th edition 220,000 • 7th edition 113,750 • 6th edition 30,770
The item Crivelli Fellowship for €234,000, of which €225,000 is for grant money and €9,000 for insurance policies stipulated for scholars, includes costs incurred during the financial year in addition to the allocation of the maximum expense that may be incurred for the remaining duration of the fellowship’s second edition, launched in April 2008 by UniCredit S.p.A.. This edition saw the award of one scholarship.
In financial year 2010, no costs were sustained for Foscolo Europe Scholarships, as they were functionally assigned to the Crivelli Scholarships.
The item Foscolo Europe Fellowship includes the maximum expense sustainable for the second edition of the Foscolo Europe Fellowship decided on during the year, which involved the assignment of one scholarship. The total of €250,000 consists of the grants made to the scholars (€240,000) and the premiums for insurance policies stipulated for the scholarship student (€10,000).
During financial year 2010, the prizes listed below were awarded, for a total cost of €154,984. • Post Doc Research Grant 1st edition 90,000 • CEE Best PhD Thesis Award 1st edition 30,000 • UniCredit Best Paper Award 2nd edition 15,000 • UWIN Best Paper Award 1st edition 12,500 • UniCredit Best Paper Award 1st edition 7,484
UniCredit & Universities · 2010 Reports and Accounts 43 Financial Statements I Notes on the Accounts
Note on the Balance Sheet and the Report on Operations (CONTINUED)
In financial year 2010, with respect to university initiatives, support of the following activities was approved for a total cost of €152,600:
• LUISS SoG Master’s Programs 95,100 • Bachelor’s degree courses at University of Trieste 20,000 • UNIEAST Research Grants University of Turin 20,000 • Conference on Higher Education Politecnico University of Turin 12,500 • Summer School scholarships at the CARIM Schuman Centre 5,000
Communication costs of €16,705 cover of the cost of digital PR and social networking services rendered in relation to online communications for scholarship and prize contests, costs sustained in connection with award ceremonies for scholarships assigned during 2010 and for advertising contest announcements.
The item Fees and expenses for Members of the Scientific Committee for €68,758 includes the charges relating to fees and expenses sustained by the Members of the Scientific Committee when assessing candidates for the various contests in order to assign scholarships and prizes, as well as when assessing the work performed by the various scholarship students in order to renew grants.
The Masterscholarships present a cost for the year of €135,000, which includes university taxes and fees. This is a new initiative that involves a contest for students from the 22 different countries in which UniCredit is present. Scholarships are awarded to attend a master’s program in economics or finance in one of four top European schools of economics. This edition plans to assign four scholarships.
2010 2009 4) Financial expenses and losses 4,371 - 4.4) From other assets 4,371 -
An anomalous trend in the state securities market in the latter part of the year has resulted in a significant depreciation of some securities held in the portfolio.
The item From other assets for €4,731 represents, for the financial year 2010, the net loss generated by asset management with a special risk profile (principally money market investments with a residual bond component). A portion of the cash awaiting distribution by the institution is invested in these instruments. This loss is linked to a particularly negative market trend seen in the latter portion of the year. In addition to this, there were other anomalies involving some CCTs held in the portfolio, which, although typically defensive instruments able to reduce portfolio risks in an unstable market, and although they were close to expiry, suffered significant impairment. As confirmation of the anomalous nature of the events of year-end, the trends of securities with a duration of less than two years had already returned to “normal” levels during the first two months of 2011. The loss is posted net of expenses and the tax receivable in relation to the capital loss. It can be broken down as follows:
2010 Impairment assessed -26,249 • Change in portfolio valuation -22,871 • Losses realized on securities sold -3,378 Interest accrued on coupons and other 21,253 Substitute tax 625
2010 2009 6) General administrative costs 161,480 126,887
These are the expenses incurred in the performance of activities aimed at achieving the foundation’s goals. They consist of:
2010 2009 6.1) Payroll (seconded staff) 93,031 68,767 6.2) Other operating expenses 68,449 58,120
Payroll (seconded staff) The foundation does not have its own employees and uses staff seconded from UniCredit at a cost of €93,031.
A comparison with last year is for information only, as, in 2009, staff was not seconded to the foundation for the entire year.
44 2010 Reports and Accounts · UniCredit & Universities Other operating expenses (€68,449) consisted of the following:
2010 2009 Fees paid to professionals and professional services 21,649 26,349 Exhibitions and events 4,894 - Taxes and witholding 10,745 8,024 • IRAP (regional business tax) 10,570 7,901 • Revenue stamps and miscellaneous indirect taxes 175 123 Other: 31,161 23,747 • Entertainment expenses 621 143 • Stationery supplies, printed matter and miscellaneous office supplies 154 14 • Travel expenses 886 174 • Rents paid 27,759 23,240 • Miscellaneous (subscriptions, publications, association dues, etc.) 1,741 176 Total 68,449 58,120
Revenues (Amounts in €)
2010 2009 1) Revenues from ordinary operations 1,900,000 648,000
Total contributions received of €1,900,000 were made up of donations from UniCredit Banca di Roma S.p.A., merged by incorporation into UniCredit S.p.A. on November 1, 2010.
2010 2009 4) Financial income and gains 10,944 49,081 4.1) From bank deposits 7,503 3,351 4.4) From other assets 3,441 45,730
The item From bank deposits, for a total of €7,503, consists entirely of net interest accrued during the year on current accounts. This was an increase from the previous year due to the increase in liquid funds awaiting allocation by the institution.
The item From other assets for €3,441, represents, for financial year 2010, the proceeds deriving from repurchase agreements. A portion of the cash awaiting distribution by the institution is invested in these instruments. Income is reported net of expenses and taxes. This was down from the previous year, because the proceeds deriving from asset management generated a negative result during the course of this year.
In a comparison with last year, there is a net reduction due to the altered market conditions.
2010 2009 7) Other Income 27,281 - Recoveries on editions of scholarships and initiatives concluded or not implemented 27,281 -
The item Other Income totaled €27,281 and represents, for the year, the recovery of surpluses on scholarships and initiatives completed, as detailed below.
Recoveries on scholarships and initiatives concluded 27,281 • Crivelli Scholarship - 5th edition 25,480 • Crivelli Scholarship - 6th edition 1,525 • UniCredit Best Paper Award - 1st edition 276
UniCredit & Universities · 2010 Reports and Accounts 45 Financial Statements I Notes on the Accounts
Note on the Balance Sheet and the Report on Operations (CONTINUED)
Other Information
As of December 31, 2010, the foundation had no employees, but used the services of two individuals seconded from UniCredit. The foundation does not hold, nor did it acquire or sell during the year, any shares of UniCredit or its companies. In 2010, the members of the Board of Directors received no compensation.
Milan, March 15, 2011
Secretary General Giannantonio De Roni
46 2010 Reports and Accounts · UniCredit & Universities Annexes
A) Breakdown of Securities Portfolio, as of December 31, 2010
(Amounts in €)
BALANCE ACCRUED CLOSING TYPE OF SECURITIES FACE VALUE MARKET VALUE COUNTERVALUE INTEREST BALANCE Bot zero coupon 15.08.2011 92,000 98,9886 91,070 - 91,070
Btp 01.02.12 5% 24,000 102,7500 24,660 496 25,156 Btp 15.10.12 4.25% 25,000 102,5000 25,625 225 25,850 Btp 01.02.17 4% 38,000 99,4700 37,799 627 38,426 Btp 01.02.19 4.25% 41,000 98,4500 40,364 720 41,084 Btp 01.02.20 4.50% 25,000 99,1100 24,777 465 25,242 Btp 01.02.37 4% 30,000 82,8000 24,840 496 25,336
Cct Jul 2013 608,000 97,9610 595,603 3,870 599,473 Cct Dec 2014 TV 76,000 96,0877 73,027 111 73,138
Dbr 04.01.14 4.25% 40,000 108,9400 43,576 1,681 45,257
Total 999,000 981,341 8,691 990,032
UniCredit & Universities · 2010 Reports and Accounts 47 For whatever life brings Report of the Board of Auditors
UniCredit & Universities · 2010 Reports and Accounts 49
Sorter pages: UniCredit. Creative concept: BBH Partners LLP, London. Cover Illustration: James Taylor, Illustrator c/o Debut Arts, London.
Graphic development and composition: Mercurio - Studi di promozione pubblicitaria, Milan www.mercurioitaly.it
Printed: Tipografi a Litografi a A. Scotti Srl (Cornate d’Adda) April 2011
Printed on certified recycled chlorine-free paper. For whatever life brings
2010 Reports and Accounts www.unicreditanduniversities.eu