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    23201 x   european opportunity unconstrained w aug 13 perf 23201 x european opportunity unconstrained w aug 13 perf Presentation Transcript

    • For Professional Clients only Seeking alpha in Europe: An Unconstrained Approach Jeremy Leung Citywire France October 2013
    • For Professional Clients only What sets us apart? Concentrated Alpha Independence Innovative holistic approach  – Track record 400 400 300 300 200 200 100 100  1. Mä rz 19 93 = 100 (Aufle gun g) 500 Holistic approach to risk – focusing on asymmetric risk  Sophisticated and long term clients : Loyal clients 700 600 500  but full freedom in investment decisions Innovative approach to portfolio construction – combining fundamental, qualitative and quantitative factors resulting in high active share access to the global infrastructure (compliance, trading, IT, distribution) – 700 600  Independent investment boutique within UBS Global Asset Management Strong performance record – in varying investment environments – Sovereign Wealth Funds – lower volatility than the benchmark – Corporate clients – Good upside vs. downside capture – Pension funds – … 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 UBS (D) Equity Fund – Small Caps Germany UBS (D) Benchmark 1 GEN0190n.ppt
    • SECTION 1 Team
    • For Professional Clients only Our history Pan Europe Concentrated / MSCI Europe wealth relative Pan Europe Core / MSCI Europe wealth relative 220 Value added since inception1 = +4.1%pa Value added for Mar-00 – Mar-06 = +7.0%pa 200 180 Formation of Concentrated Alpha Team 160 140 Max Anderl left team to focus on Concentrated Alpha strategies Pan Europe Core Pan European Concentrated Alpha 120 100 Mar-00 Mar-01 Mar-02 Key Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Consistent track record in different environments Down Market Source: UBS Global Asset Management. Data to 30 June 2013, except for Pan European Core which is shown to 31 March 2006. Past performance is not a guarantee of future results. Down market defined as period from a relative peak to trough. 1 31 May 2004. In EUR. Based on Pan European Concentrated Alpha Composite (Institutional) 3
    • For Professional Clients only Boutique team dedicated to portfolio management Concentrated Alpha Equities – 17 years’ of experience and 15 years’ at UBS¹ European Head of Equities Portfolio Management Ted Holmes Technical Support/Execution Max Anderl Head of Concentrated Alpha Team Lead portfolio manager Executive Director Years of investment industry experience: 14 Jeremy Leung Portfolio Manager Director Equity Product Specialists April Robbins Rob Howard David Legg Years of investment industry experience: 8 Steve King Alison Charles Analysts Trading Risk Legal & Compliance Supported by 800+ individuals globally across UBS Global Asset Management Source: UBS Global Asset Management. June 2013. 1 Based on average for team shown excluding Ted Holmes 4 GEN0190n.ppt
    • SECTION 2 UBS European Opportunity Unconstrained
    • For Professional Clients only UBS European Opportunity Unconstrained Fund Key benefits for investors  Access to European Equity markets via a largely unconstrained portfolio1 across the capitalization spectrum  Benefit from a manager with substantial freedom to implement best ideas based on extensive research using varying approaches including the ability to hold short positions  Profit from a specialized boutique-like investment team with a proven investment process and successful track record Investment goals Seek to outperform MSCI Europe Index by 300+ basis points per annum over a market cycle How we aim to achieve this goal: Typical active risk: Up to 15% Number of equity holdings: Approximately 100 stocks Normal exposures: 100 – 150% long, 0 – 50% short Typical Individual stock weights Longs Shorts Beta Max 1.0 – 4.0% 10% 0.5 – 1.5% 3% 0.8 – 1.2 For explanations on financial wordings please refer to the glossary at www.ubs.com/glossary Note: Typical active risk data are indicative only. The actual active risk level will vary according to market conditions and our views. Active risk is an ex-ante forecast calculated using BARRA or other suitable system based on the final valuations of the last working day of each month. Active risk levels are reported to clients on a quarterly basis • Benchmark agnostic and ability to implement investment strategies such as short selling 6 23201
    • For Professional Clients only Consistently high active share As at 30 June 2013 150 European Opportunity Unconstrained vs. MSCI Europe Active share (%) 125 100 75 50 25 0 Jun07 Oct07 Feb08 Jun08 Oct08 Feb09 Jun09 Oct09 Feb10 Jun10 Oct10 Feb11 Jun11 Oct11 Feb12 Jun12 Oct12 Feb13 Jun13  Active Share measures the share of portfolio holdings that differ from the benchmark  Empirical studies have shown the highest Active Share funds significantly outperform their benchmarks and exhibit strong performance persistence¹ Source: UBS Global Asset Management. Data to 30 June 2013 1 Cremers, Martijn and Petajisto, Antti, How Active is Your Fund Manager? A New Measure That Predicts Performance (March 31, 2009). AFA 2007 Chicago Meetings Paper; EFA 2007 Ljubljana Meetings Paper; Yale ICF Working Paper No. 06-14. Available at SSRN: http://ssrn.com/abstract=891719 or http://dx.doi.org/10.2139/ssrn.891719 7 23201
    • For Professional Clients only UBS European Opportunity Unconstrained Monthly net gross exposure data to end June 2013 200 Sum of Long Sum of Short Sum of Gross Sum of Net 180 160 140 120 100 80 60 40 20 0 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012 2013 Source: UBS Global Asset Management US-I, US-P (RU) 8 23201
    • For Professional Clients only Turning insight into alpha Another way of looking at transfer coefficient… Long only Long/Short For illustrative purposes only. 9 23201
    • For Professional Clients only Flexibility to take short positions increases research impact Example: Research suggests meaningful underweight for stocks A and B Basis points Stock A: 100 bps market weight Long-only excess returns Unconstrained excess returns Stock A falls by 50% +50 bps +50 bps Stock B falls by 50% +5 bps +50 bps +55 bps +100 bps 100 100 50 0 -50 -100 0 Market weight Long-Only and Unconstrained weight Basis points Stock B: 10 bps market weight 100 50 0 -50 -100 10 0 Market weight Long-Only weight -90 Unconstrained weight Total Source: UBS Global Asset Management. For illustrative purposes only. There are certain unique risks associated with the use of short sale strategies. For example, there is a risk that a client portfolio will incur a loss by subsequently buying a security at a higher price than the price at which the security was sold short. 10 23201
    • For Professional Clients only Increasing the impact of time-tested research Equity Unconstrained strategy provides the flexibility to capitalise on overpriced and underpriced securities Number of stocks Largest weight Smallest weight MSCI Europe 436 Capitalisation: Top third 22 2.92% 0.88% Capitalisation: Next third 66 0.86% 0.30% Capitalisation: Bottom third 348 0.29% 0.02% 80% of stocks in MSCI Europe Index represent positions of 0.28% or less The ability to short an overvalued security allows our investment insights to have a greater impact on the portfolio Source: UBS Global Asset Management. Data to 30 June 2013 US-I 11 23201
    • For Professional Clients only Performance to 31 August 2013 UBS (Lux) Equity SICAV – European Opportunity Unconstrained (EUR) P-acc Morningstar Rating TM: ***** Net of fees % return¹ (Aug 2013) 3 months 1 year 3 years 5 years SI¹ Portfolio characteristics Beta Active risk3 Volatility:4 Fund Benchmark Information ratio5 Return -2.0 15.4 14.0 9.2 2.2 MSCI Europe 0.9 14.1 8.7 3.5 -1.7 Value added -1.1 +1.3 +5.3 +5.7 +3.9 Gross of fees Ranking2 4 2 1 1 Return -1.5 +17.8 +16.4 +11.4 +4.3 MSCI Europe 0.9 14.1 8.7 3.5 -1.7 Value added -0.7 +3.8 +7.7 +8.0 +6.0 3 years 0.7 8.8% 12.2% 12.7% 0.6 Source: UBS Global Asset Management Note: Please note that historical active risk is not a guide to the future. Active risk levels will vary according to market conditions and our views. Past performance is not a guide to future results. See attached disclosure information. Portfolio characteristics are show net of fees. The P-acc share class was launched on 14 June 2012. Performance pre-IPO have been calculated using the existing share class data. 1 Since inception 31 May 2007, annualised 2 Rankings to 31 August 2013 3 Historical active risk is not a guide to the future. Active risk levels will vary according to market conditions and our views. Active risk is the standard deviation of the difference between the monthly composite and benchmark returns, based on logarithmic returns. Active risk is annualised for periods greater than one year. 4 Annualised standard deviation based on monthly logarithmic returns 5 Information ratio is the arithmetic value added divided by the active risk. For periods greater than one year, annualised returns are used to calculate the value added and the active risk. 12 23201
    • For Professional Clients only European Opportunity Unconstrained vs. MSCI Europe Annualized three-year rolling returns Monthly data 31 May 2007 – 30 June 2013 Pan European Concentrated Alpha Unconstrained Composite 30 25 Outperformance 20 Outperforming in 100% of periods 15 10 5 0 -5 Underperformance -10 -15 -20 -20 -15 -10 -5 0 5 10 15 20 25 30 MSCI Europe (net) in EUR Source: UBS Global Asset Management. The returns shown above are based on currently available information and are subject to revision. Past performance is no guarantee of future results. Performance figures are gross of fees. Please see attached disclosure information. Returns in EUR. 13 23201
    • For Professional Clients only A look at upside performance/downside performance European Opportunity Unconstrained: 31 May 2007 to 30 June 2013 115 110 Since Inception Upside (%) 105 100 95 90 85 85 90 95 100 105 110 115 Downside (%) Upside Market Capture Ratio – A measure of the manager’s performance in up markets relative to the market itself. A value of 110 suggests the manager performs ten percent better than the market when the market is up during the selected time period. The return for the market for each period is considered an up market if it is greater than or equal to zero. The Upside Capture Ratio is calculated by dividing the return of the manager during the up market periods by the return of the market during the same periods. Downside Market Capture Ratio – A measure of the manager’s performance in down markets relative to the market itself. A value of 90 suggests the manager’s loss is only nine tenths of the market’s loss during the selected time period. A market is considered down if the return for the benchmark is less than zero. The Downside Capture Ratio is calculated by dividing the return of the manager during the down market periods by the return of the market during the same periods. Source: UBS Global Asset Management As of June 30, 2013. UBS Global AM European Opportunity Unconstrained Composite inception date of 31 May 2007. The returns shown above are based on currently available information and are subject to revision. Past performance is no guarantee of future results. Performance figures are gross of fees. Please see attached disclosure information. Returns greater than one year are annualized. Returns in EUR. Benchmark used for calculation is the MSCI Europe Index. Information is supplemental to the Pan European Concentrated Composite. US-I, US-P (RU) 14 23201
    • For Professional Clients only Attractive Risk vs. Return Morningstar rating:      UBS European Opportunity Unconstrained 5 year performance vs. Peers 15 10 Return % 5 0 -5 -10 -15 0 5 10 15 20 25 30 35 40 Risk % std dev Peers UBS European Opportunity Unconstrained P-acc EUR MSCI Europe Source: Morningstar, data as of 30 June 2013 Note: Based on Morningstar European Equity Large Blend Universe. Net of fees using P share class. Past performance is no guarantee of future results. 15 23201
    • For Professional Clients only Returns driven by stock selection UBS European Opportunity Unconstrained: Attribution since inception Group Fund weight(%) Index weight(%) Return (%) Sector Stock Selection(%) Allocation(%) Total(%) Consumer Discretionary 15.0 9.5 13.6 -5.7 2.9 -2.7 Consumer Staples 22.5 14.8 55.3 10.1 4.0 14.1 0.7 9.7 -1.7 2.1 4.8 6.9 Financials 30.2 20.8 -51.1 12.2 0.4 12.6 Health Care 23.1 13.2 53.8 1.7 2.8 4.5 Industrials 2.6 11.3 -7.4 -5.6 -0.8 -6.3 Information Technology 8.8 3.2 -20.8 5.0 -1.9 3.1 -3.7 7.9 -15.1 1.3 0.5 1.8 3.8 5.6 -0.2 4.1 -0.5 3.6 -2.9 4.0 -31.7 3.7 1.8 5.5 100.0 100.0 -10.8 29.2 14.8 43.9 Energy Materials Telecom Services Utilities TOTAL Source: Wilshire, 31 May 2007 – 30 June 2013. Past performance is no guarantee of future results. Data not annualized. Returns in EUR Proven stock selection driven process 16 23201
    • For Professional Clients only Performance coming from longs and shorts Long and short portfolio absolute returns: shorts consistently add value 60% Longs Shorts MSCI Europe 48.2% 50% 41.0% 40% 30% 30.0% 22.5% 10% 17.1% 16.9% 20% 12.0% 2.8% 0% -2.6% -10% -1.8% -10.8% -20% -30% -27.9% -40% 1 year 3 years 5 years Since Inception Source: Wilshire Gross of Fees in EUR. UBS Global Asset Management. Since inception date 31 May 2007. Data to 30 June 2013 Note: Based on weighted average returns of longs and shorts as independent portfolios. Returns are cumulative and absolute Note: Absolute means that returns are not linked to a benchmark. Note that returns on absolute type investments can still be negative compared to initial investment values 17 23201
    • SECTION 5 Philosophy and Process
    • For Professional Clients only The Concentrated Alpha Investment Process 3 Circle Research Process Portfolio Construction & Risk Management • Benchmark agnostic High active share • Quantitative Disciplined yet flexible approach • Qualitative • • Fundamental Bottom up stock selection process Holistic approach to risk • Uncorrelated information sources Client portfolio • Approx 100 – 130 stocks Source: UBS Global Asset Management. For illustrative purposes only. 19 23201
    • For Professional Clients only Investment process – Fundamental research Key input parameters Bottom-up, company level research – 50 internal analysts Scenario analysis by portfolio managers (using HOLT) Selected independent research from high quality sources Company management meetings GEVS system HOLT system Fundamental Qualitative Quantitative Key output parameters Long term industry analysis and single stock recommendations Fundamental valuations Upside vs. downside evaluations Source: UBS Global Asset Management. For illustrative purposes only. 20 23201
    • For Professional Clients only Investment process: Quantitative research Key input parameters Various independent multi-factor quant models condensed into one model Quantitative checks on valuation, profitability, growth and accounting Fundamental Quant systems Qualitative Quantitative Key output parameters Ranking of stocks on multiple criteria Quantitative profiles Traditional factors (valuation, momentum, etc) Different levels of complexity Different investment time horizons Source: UBS Global Asset Management. For illustrative purposes only. 21 23201
    • For Professional Clients only Investment process: Qualitative research Key input parameters Systematic corporate governance approach Plausibility checks: GMI • Management compensation • Management / Director Dealings • Market Environment Fundamental • Ownership Trusted and proven, diversified sources Qualitative Quantitative Network of strategists and asset allocators Network of other buy-side investors and corporate activists Data providers: GMI, CFRA, Management CV, Boardex Key output parameters Alignment of interest Opinion on themes • Management focus on shareholder value creation • Family ownership  Exposure to LBO, M&A  Value growth exposure Sound insights on Corporate Governance Source: UBS Global Asset Management. For illustrative purposes only. 22 23201
    • For Professional Clients only Investment process – example of positive screening Company A: Pharmaceuticals & Biotech company Fundamental  1. Bottom-up, company level research – 50 internal analysts Quantitative  • Attractive in discounted cash flow model • Strong support majority quant models, medium ranking remaining model • Held by analyst  2. Scenario analysis by portfolio managers (using HOLT) • 40% upside, very limited downside  3. Selected independent sources from high quality research houses • Strong support by favoured analysts  4. Company management meetings 1. Various independent multi-factor quant models condensed into one model  2. Quantitative checks on valuation, profitability, growth and accounting • Zero blob score, low CFRA score (no concerns) • High solvency and strong balance sheet Qualitative - 1. Corporate governance check • Respected shareholder rights • Bonus tied to sound capital allocation policy but stake in Roche an issue  2. Thematic • High dividend yield • Well covered by strong free cash flow generation  3. Buy-side investors / Corporate activists • Strong support • Transition in management possible upside via improved capital allocation Risk parameters  40% upside, very limited downside Source: UBS Global Asset Management. For illustrative purposes only. 23 GEN0190n.ppt
    • For Professional Clients only Company B – short    Expensively valued using HOLT Unattractive on classical indicators Below cost of capital returns Fundamental research Portfolio holding Qualitative research    Large capacity additions destroyed return of industry Unsustainable dividend Weak balance sheet Quantitative research  Unattractive valuation, low quality and weak momentum Source: UBS Global Asset Management. For illustrative purposes only. 24 23201
    • For Professional Clients only How we deal with risk … … a holistic approach Risk Management Results  Taking risk when rewarded for it  Awareness of low volatility and leverage  Active risk of European Opportunity Unconstrained 7.7% since inception1 to 30 June 2013  Active share with index averaged 114% as at 30 June 2013 Risk systems Fundamental  Sensitivity Analysis (upside / downside)  Leverage and industry structure Quantitative  Risk checks on accounting quality  Financial Health Qualitative  Corporate Governance  Use of uncorrelated information sources Source: Note: 1 UBS Global Asset Management. For illustrative purposes only. Please note that historical active risk is not a guide to the future. Active risk levels will vary according to market conditions and our views. Active Share measures the share of portfolio holdings that differ from the benchmark. Empirical studies have shown the highest Active Share funds significantly outperform their benchmarks and exhibit strong performance persistence 1 May 2004 25 GEN0190n.ppt
    • SECTION 3 Summary and Positioning
    • For Professional Clients only Current views – European Opportunity Unconstrained As at 31 August 2013  Deviation on single sector positioning but balanced cyclically to defensive exposure  Low return environment favours companies with good cash conversion – Software & Services and Insurance  Underweight companies where profitability is extended or expensive – Materials, Capital Goods  Underweight compromised defensives – Utilities and Telcos Sector positions Insurance Pharma, Bio & Life Sciences Household & Personal Software & Services Media Diversified Financials Utilities Banks Energy Materials % +14.2 +11.1 +5.4 +3.3 +3.0 -3.3 -4.7 -4.8 -7.3 -11.7 Stock positions Top 10 positive (overweight) Novartis Bayer Roche Sampo Total Reckitt Benckiser WPP GlaxoSmithKline Repsol Novo-Nordisk % 6.5 4.1 3.7 3.5 3.3 3.1 2.7 2.7 2.7 2.6 Source: UBS Global Asset Management 27 23201
    • For Professional Clients only Summary Concentrated Alpha An independent investment boutique with…  Backing of a strong organisation  Innovative investment process  Strong and consistent performance in varying environments  Lower volatility than the benchmark  Good upside and downside capture  High Active Share and holistic approach to risk  A long term client base of sophisticated investors An investment boutique for all seasons 28 23201
    • APPENDIX Additional information
    • UBS (Lux) Equity SICAV – European Opportunity Unconstrained (EUR) P-acc For Professional Clients only Key data Fund name: UBS (Lux) Equity SICAV - European Opportunity Unconstrained (EUR) Fund type Open-end Launch date 14 June 2012 for P-acc share class. Inception date of strategy 31 May 2007 Currency of account EUR Accounting year ends 31 May Issue / redemption Daily Swing pricing Yes Flat fee 2.04% p.a. Benchmark MSCI Europe (net div reinvested) EU savings tax Affected at distribution Securities no. 14543379 ISIN LU0723564463 Bloomberg UEOUEPA LX Total product assets EUR 160.1million as at 31 August 2013 Registered countries Austria, Belgium, Finland, France, Germany, Italy, Liechtenstein, Luxembourg, Netherlands, Norway, Spain, Sweden, Switzerland, United Kingdom Source: UBS Global Asset Management. 30 23201
    • For Professional Clients only Performance data UBS (Lux) Equity SICAV – European Opportunity Unconstrained (EUR) P-acc Morningstar Rating TM: ***** 120 110 100 90 80 70 60 50 40 30 20 2007 50 1 40 0.9 30 0.8 0.7 20 0.6 10 0 0.5 0.4 -10 0.3 -20 0.2 -30 0.1 -40 0 -50 (%) Indexed on the basis of month-end data Recalculated and actual performance (share class P-acc; basis EUR, net of fees)1 Launch of P share class 2008 2009 2010 Recalculated performance (left-hand scale) Performance per year in % (right-hand scale) In % (EUR) 20072 Fund Benchmark Excess Return -7.9 -6.9 -1.1 2008 -42.0 -43.7 1.7 2009 2010 41.4 31.2 10.2 11.4 11.9 -0.6 2011 Actual performance (left-hand scale) MSCI Europe 2013 2011 2012 YTD -1.3 -8.5 7.2 22.4 16.9 5.5 12.4 8.6 3.8 2012 Aug. 2013 -3.3 -0.6 -2.7 2013 5 years cumulative 55.1 18.5 36.5 5 years p.a. 9.2 3.5 5.7 Source: UBS Global Asset Management 1 These figures refer to the past. Past performance is not a reliable indicator of future results. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units. Source for all data and charts (if not indicated otherwise): UBS Global Asset Management Performance calculation: The performance figures and portfolio statistics shown are recalculated using the monthly estimated gross performance of the first share class launched in this fund. Please note that recalculated performance figures are for indicative purposes only. The actual performance is shown from the launch date of the share class stated. 2 Performance from inception of strategy 31/05/2007 to 31/012/2007 31 23201
    • For Professional Clients only Our performance record Leveraging resources across all mandates Pan Europe Concentrated / MSCI Europe wealth relative 160 European Opp. Unconstrained/MSCI Europe wealth relative 155 Value added since inception¹ = +4.1%pa Value added since inception² = +6.9%pa 140 135 120 115 100 80 May-04 95 May-06 May-08 May-10 May-12 Global Concentrated Alpha Equity / MSCI World wealth relative Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Global Opportunity Long Short wealth index 130 Absolute return since inception4 = +8.4%pa 120 120 110 110 100 Value added since inception³ = +3.1%pa 90 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 100 90 Apr-11 Oct-11 Apr-12 Oct-12 Apr-13 Key: Down Market is shaded area Source: UBS Global Asset Management. Data to 30 June 2013. Past performance is not a guarantee of future results. Down market defined as period from a relative peak to trough. 1 31 May 2004. In EUR. 2 31 May 2007. In EUR. 3 30 September 2007. In USD. 4 31 October 2010 in EUR 32 23201
    • For Professional Clients only Value added in up and down markets UBS European Opportunity Unconstrained Rolling one-year excess returns since inception 40% % Return Benchmark 30% 20% 20% 10% 0% 0% -20% -10% -40% -20% -60% % Rolling 1-year alpha (fund) 60% -30% May-08 May-09 Rolling 1-year benchmark return May-10 May-11 May-12 May-13 Rolling 1-year alpha: UBS European Opportunity Unconstrained strategy As of June 30, 2013. UBS Global AM European Opportunity Unconstrained Composite inception date of May 31, 2007. The returns shown above are based on currently available information and are subject to revision. Past performance is no guarantee of future results. Performance figures are gross of fees. Please see attached disclosure information. Excess returns calculated by subtracting benchmark returns from portfolio returns. Returns greater than one year annualized. Returns in EUR. Benchmark used for excess return calculation is the MSCI Europe index. 33 23201
    • For Professional Clients only Value added over style cycles UBS European Opportunity Unconstrained Rolling one-year excess returns since inception 30% 25% 20% % Return 15% 10% 5% 0% -5% -10% -15% -20% May-08 May-09 Value outperforms Growth May-10 Growth outperforms Value May-11 May-12 May-13 Rolling 1 year alpha: UBS European Opportunity Unconstrained As of June 30, 2013. UBS Global AM European Opportunity Unconstrained Composite inception date of May 31, 2007. The returns shown above are based on currently available information and are subject to revision. Past performance is no guarantee of future results. Performance figures are gross of fees. Please see attached disclosure information. Excess returns calculated by subtracting benchmark returns from portfolio returns. Returns greater than one year annualized. Returns in EUR. Benchmark used for excess return calculation is the MSCI Europe index. Growth performance is measured by the MSCI Europe Growth Index. Value performance is measured by the MSCI Europe Value Index. 34 23201
    • For Professional Clients only Global and multi-faceted approach Diverse information sources are necessary…   More than 14,000 companies in Holt Selective internal & external analysts Fundamental Portfolio Qualitative     More than 8,000 companies covered by Governance Metrics and ISS; more than 300,000 individuals covered by Boardex Contacts with global, US, Asian and European specific strategists Contacts with bond strategists and asset allocators and corporate activists Exchange of information with buy side investors Source: UBS Global Asset Management. June 2013 Quantitative   More than 4,000 quantitative profiles of global companies, biweekly refreshed data From 5 different data providers …but specific targeting is key 35 23201
    • For Professional Clients only Taking opportunities across the spectrum Monitor all three circles… Less exposure 2006/2010  Valuation spreads low Increased exposure 2008/2009  Valuation spreads wide and falling Fundamental research (e.g. internal recommendations, corporate governance, company management visits) Portfolio Concentration Qualitative research (e.g. strategists)    Private equity / strategists warn on high leverage and low valuation spreads in 2007 Signaling capitulation in February 2009 Free cash flow yield and dividend yield versus 10y bond yield points to M+A and stable dividend growers in 2011/2012 Quantitative research (e.g. multifactor models) Less exposure in 2007/2008  Leverage high, valuation spreads low Increased exposure 2009+  Leveraged buy-outs models attractive …but selectively weight according to the environment Source: UBS Global Asset Management. 36 23201
    • For Professional Clients only Maximilian Anderl, CFA Head of Concentrated Alpha Equity Executive Director Years of investment industry experience: 14 Education: University of Innsbruck (Austria), MS; University of St Gallen (Switzerland) and Stockholm School of Economics (Sweden), Lic.oec.HSG  Maximilian Anderl is Head of Concentrated Alpha Equity and is the lead portfolio manager for the Global and European Concentrated Alpha long only and long / short strategies.  Maximilian has worked on the Concentrated Alpha team and its distinctive approach and strategies since its inception in 2004, becoming head of that team in January 2011.  Maximilian joined the European Equity Team in London in 2002, having joined UBS Global Asset Management, Zurich, in 2000 as an equity fund manager. In that role he was responsible for the retail funds and European client mandates.  Prior to joining UBS, Maximilian worked in academic research, university teaching, research and development and corporate finance for the pharmaceutical industry.  Maximilian is a Regular Member of the CFA Society of the UK and the CFA Institute. 37 23201
    • For Professional Clients only Jeremy Leung, CFA Portfolio Manager – Concentrated Alpha Equity Director Years of investment industry experience: 8 Education: Tufts University (US), BS; London School of Economics and Political Science (UK), MSc  Jeremy Leung is a member of the Concentrated Alpha Equity team. He is responsible for supporting the investment process and capability management for the team.  Prior to undertaking his role in March 2011, Jeremy was a Quantitative Analyst within the Equities Group. He was responsible for conducting quantitative and fundamental research for the Group’s investment teams. He also worked extensively on the Group’s fundamental equity valuation model.  Prior to joining UBS in 2007, Jeremy worked as a consultant for FactSet Research Systems. He was responsible for providing advice and support to large investment managers across Europe on various analytical tools for investing.  Jeremy is a Regular Member of the CFA Society of the UK and the CFA Institute. 38 23201
    • For Professional Clients only GIPS Disclosure Performance: European Opportunity Unconstrained BAS.IN 39 GEN0190n.ppt
    • For Professional Clients only Disclaimer For marketing and information purposes by UBS. UBS funds under Luxembourg law. Before investing in a product please read the latest prospectus carefully and thoroughly. Units of UBS funds mentioned herein may not be offered, sold or delivered in the United States and are offered solely to investors that are not U.S. Persons (as defined in the US regulation). The information mentioned herein is not intended to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. Past performance is not a reliable indicator of future results. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units. Commissions and costs have a negative impact on performance. If the currency of a financial product or financial service is different from your reference currency, the return can increase or decrease as a result of currency fluctuations. This information pays no regard to the specific or future investment objectives, financial or tax situation or particular needs of any specific recipient. The details and opinions contained in this document are provided by UBS without any guarantee or warranty and are for the recipient's personal use and information purposes only. This document contains statements that constitute “forward-looking statements”, including, but not limited to, statements relating to our future business development. While these forward-looking statements represent our judgments and future expectations concerning the development of our business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. Source for all data and charts (if not indicated otherwise): UBS Global Asset Management. This document contains statements that constitute “forward-looking statements”, including, but not limited to, statements relating to our future business development. While these forward-looking statements represent our judgments and future expectations concerning the development of our business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. Source for all data and charts (if not indicated otherwise): UBS Global Asset Management. France:. This document has been prepared by CCR Asset Management, a public limited company (Société Anonyme) with capital of 5 304 000 Euros, and registered offices at 44 rue Washington, 75008 Paris - France (registered under number 388 368 110 of the Paris commercial register, RCS) authorised as a portfolio management company by the French financial markets authority (Autorité des Marchés Financiers) on 30 November 1992 under number GP 92016. In case of complaints, please contact your client advisor. This fund has received marketing authorization in France. Representative in France for UBS investment funds under foreign law: BNP Paribas 16 Bd Italiens, 75009 Paris. Prospectuses, simplified prospectuses, the articles of association or the management regulations as well as annual and semi-annual reports of UBS funds are available free of charge from CCR Asset Management, 44 rue Washington, 75008 Paris, tél +33 1 49 53 20 00 or on the internet at www.ccr-am.com. © UBS 2013. The key symbol and UBS are among the registered and unregistered trademarks of UBS. All rights reserved. 40 23201