23201 x european opportunity unconstrained w aug 13 perf

For Professional Clients only

Seeking alpha in Europe:An Unconstrained Approach

Jeremy Leung

Citywire France

October 2013

1

GEN0190n.ppt


Track record Loyal clients

What sets us apart?

Independent investment boutique within UBS Global Asset Management– access to the global

infrastructure (compliance, trading, IT, distribution)

– but full freedom in investment decisions

Innovative approach to portfolio construction –combining fundamental, qualitative and quantitative factors resulting in high active share

Holistic approach to risk –focusing on asymmetric risk

Strong performance record– in varying investment

environments

– lower volatility than the benchmark

– Good upside vs. downside capture

Sophisticated and long term clients :– Sovereign Wealth Funds

– Corporate clients

– Pension funds

– …

93 94 9596 97 9899 00 01 02 0304 05 06 07 08 09 10

100

200

300

400

500

600700

100

200

300

400

500

600700

UBS (D)

1.M

är z

1993

=1 00

( Au

f leg

u ng

)

93 94 9596 97 9899 00 01 02 0304 05 06 07 08 09 10

100

200

300

400

500

600700

100

200

UBS (D) Equity Fund – Small Caps Germany

Benchmark

Independence Innovative holistic approach

Concentrated Alpha

SECTION 1

Team

3


Consistent track record in different environments

100

120

140

160

180

200

220

Mar-00 Mar-01 Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13

Pan Europe Core Pan European Concentrated Alpha

Our history

Pan Europe Concentrated / MSCI Europe wealth relativePan Europe Core / MSCI Europe wealth relative

Value added for Mar-00 – Mar-06 = +7.0%pa Value added since inception1 = +4.1%pa

KeyDown 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)

Max Anderl left team to focus on Concentrated Alpha strategies

Formation of Concentrated Alpha Team

4

GEN0190n.ppt


4

Boutique team dedicated to portfolio management Concentrated Alpha Equities – 17 years’ of experience and 15 years’ at UBS¹

Source: UBS Global Asset Management. June 2013.1 Based on average for team shown excluding Ted Holmes

Ted Holmes

Jeremy LeungPortfolio ManagerDirector

Years of investment industry experience: 8

Max AnderlHead of Concentrated Alpha TeamLead portfolio manager Executive DirectorYears of investment industry experience: 14

April Robbins

Alison Charles

European Head of Equities

Equity Product Specialists

Rob Howard

David Legg

Steve King

Technical Support/ExecutionPortfolio Management

Analysts

Trading

Risk

Legal & Compliance

Supported by 800+ individuals globally across UBS Global Asset Management

SECTION 2

UBS European Opportunity Unconstrained

6

23201


UBS European Opportunity Unconstrained Fund

For explanations on financial wordings please refer to the glossary at www.ubs.com/glossaryNote: 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

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

Key benefits for investors

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 Max Individual stock weights

Longs 1.0 – 4.0% 10%

Shorts 0.5 – 1.5% 3%

Beta 0.8 – 1.2

7

23201


Consistently high active share

0

25

50

75

100

125

150

Jun-07

Oct-07

Feb-08

Jun-08

Oct-08

Feb-09

Jun-09

Oct-09

Feb-10

Jun-10

Oct-10

Feb-11

Jun-11

Oct-11

Feb-12

Jun-12

Oct-12

Feb-13

Jun-13

Act

ive

shar

e (%

)

European Opportunity Unconstrained vs. MSCI Europe

As at 30 June 2013

Source: UBS Global Asset Management. Data to 30 June 20131 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

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

8

23201


UBS European Opportunity UnconstrainedMonthly net gross exposure data to end June 2013

0

20

40

60

80

100

120

140

160

180

200

2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012 2013

Sum of Long Sum of Short Sum of Gross Sum of Net

US-I, US-P (RU)

Source: UBS Global Asset Management

9

23201


Turning insight into alpha

Long only

For illustrative purposes only.

Another way of looking at transfer coefficient…

Long/Short

10

23201


Flexibility to take short positions increases research impact

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.

Example: Research suggests meaningful underweight for stocks A and B

Stock A: 100 bps market weight

Stock B: 10 bps market weight

100

0

-100

-50

0

50

100

Market weight Long-Only andUnconstrained weight

Bas

is p

oin

ts

10 0

-90-100

-50

0

50

100

Market weight Long-Only weight Unconstrainedweight

Bas

is p

oin

ts

Stock Afalls by 50%

Stock Bfalls by 50%

Long-onlyexcess returns

Unconstrainedexcess returns

+50 bps +50 bps

+5 bps +50 bps

+55 bps +100 bpsTotal

11

23201


Increasing the impact of time-tested researchEquity Unconstrained strategy provides the flexibility to capitalise on overpriced and underpriced securities

US-ISource: UBS Global Asset Management. Data to 30 June 2013

The ability to short an overvalued security allows our investment insights to have a greater impact on the portfolio

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

12

23201


Performance to 31 August 2013UBS (Lux) Equity SICAV – European Opportunity Unconstrained (EUR) P-acc

Net of fees Gross of fees

% return¹ (Aug 2013) Return MSCI Europe Value added Ranking2 Return MSCI Europe Value added

3 months -2.0 0.9 -1.1 4 -1.5 0.9 -0.7 1 year 15.4 14.1 +1.3 2 +17.8 14.1 +3.8 3 years 14.0 8.7 +5.3 1 +16.4 8.7 +7.7 5 years 9.2 3.5 +5.7 1 +11.4 3.5 +8.0 SI¹ 2.2 -1.7 +3.9 +4.3 -1.7 +6.0

Portfolio characteristics 3 years

Beta 0.7 Active risk3 8.8% Volatility:4 Fund 12.2% Benchmark 12.7% Information ratio5 0.6


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 futureresults. 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 usingthe existing share class data.1 Since inception 31 May 2007, annualised2 Rankings to 31 August 20133 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 returns5 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.

Morningstar Rating TM: *****

13

23201


European Opportunity Unconstrained vs. MSCI Europe

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.

Annualized three-year rolling returnsMonthly data 31 May 2007 – 30 June 2013

-20

-15

-10

-5

0

5

10

15

20

25

30

-20 -15 -10 -5 0 5 10 15 20 25 30

MSCI Europe (net) in EUR

Pan

Eu

rop

ean

Co

nce

ntr

ated

Alp

ha

Un

con

stra

ined

C

om

po

site

Outperformance

Underperformance

Outperforming in 100% of periods

14

23201


Since Inception

85

90

95

100

105

110

115

85 90 95 100 105 110 115

Downside (%)

Up

sid

e (%

)A look at upside performance/downside performance

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 thanthe 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 ManagementAs 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.

European Opportunity Unconstrained: 31 May 2007 to 30 June 2013

US-I, US-P (RU)

15

23201


Attractive Risk vs. ReturnMorningstar rating: UBS European Opportunity Unconstrained 5 year performance vs. Peers

-15

-10

-5

0

5

10

15

0 5 10 15 20 25 30 35 40

Risk % std dev

Ret

urn

%

Peers UBS European Opportunity Unconstrained P-acc EUR MSCI Europe

Source: Morningstar, data as of 30 June 2013Note: Based on Morningstar European Equity Large Blend Universe. Net of fees using P share class. Past performance is no guarantee of future results.

16

23201


Returns driven by stock selectionUBS European Opportunity Unconstrained: Attribution since inception

Group Fund

weight(%) Index

weight(%) Return

(%) Stock

Selection(%) Sector

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

Energy 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

Materials -3.7 7.9 -15.1 1.3 0.5 1.8

Telecom Services 3.8 5.6 -0.2 4.1 -0.5 3.6

Utilities -2.9 4.0 -31.7 3.7 1.8 5.5

TOTAL 100.0 100.0 -10.8 29.2 14.8 43.9

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

17

23201


Performance coming from longs and shortsLong and short portfolio absolute returns: shorts consistently add value

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 absoluteNote: 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

22.5%

41.0%

48.2%

12.0%

2.8%

-2.6% -1.8%

-27.9%

16.9%

30.0%

17.1%

-10.8%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

1 year 3 years 5 years Since Inception

Longs Shorts MSCI Europe

SECTION 5

Philosophy and Process

19

23201


Portfolio Construction & Risk Management

• Bottom up stock selection process

• Disciplined yet flexible approach

• Benchmark agnostic

• High active share

• Holistic approach to risk

• Uncorrelated information sources

3 Circle Research Process

• Approx 100 – 130 stocks

Client portfolio

19

The Concentrated Alpha Investment Process

Quantitative

Fundamental

Qualitative

Source: UBS Global Asset Management. For illustrative purposes only.

20

23201


Investment process – Fundamental research

Key input parameters

Bottom-up, company level research –50 internal analysts

GEVS system

Scenario analysis by portfolio managers (using HOLT)

Selected independent research from high quality sources

Company management meetings

HOLT system

Upside vs. downside evaluations

Long term industry analysis and single stock

recommendations

Key output parameters

Fundamental valuations

Quantitative

Fundamental

Qualitative


21

23201


Investment process: Quantitative research


Various independent multi-factor quant models condensed into one model

Quantitative checks on valuation, profitability, growth and accounting

Quant systems

Ranking of stocks on multiple criteria

Quantitative profiles Traditional factors (valuation,

momentum, etc)

Different levels of complexity

Different investment time

horizons


Quantitative

Fundamental

Qualitative


22

23201


Investment process: Qualitative research


Trusted and proven, diversified sources

Network of strategists and asset allocators

Network of other buy-side investors and

corporate activists

Data providers: GMI, CFRA,

Management CV, Boardex

Systematic corporate governance approach

Plausibility checks:

• Management compensation

• Management / Director Dealings

• Market Environment

• Ownership

GMI

Alignment of interest• Management focus on

shareholder value creation• Family ownership

Opinion on themes Exposure to LBO, M&A Value growth exposure

Sound insights on Corporate Governance


Quantitative

Fundamental

Qualitative


23

GEN0190n.ppt


Investment process – example of positive screening

1. Bottom-up, company level research – 50 internal analysts

• Attractive in discounted cash flow 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

• Transition in managementpossible upside via improved capital allocation

1. Various independent multi-factor quant models condensed into one model

• Strong support majority quant models, medium ranking remaining model

2. Quantitative checks on valuation, profitability, growth and accounting

• Zero blob score, low CFRA score (no concerns)

• High solvency and strong balance sheet

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

Company A: Pharmaceuticals & Biotech company

40% upside, very limited downside

Fundamental Quantitative Qualitative

Risk parameters

-


24

23201


Company B – short

Quantitative research

Qualitative research

Portfolio holding

Expensively valued using HOLT Unattractive on classical indicators Below cost of capital returns

Unattractive valuation, low quality and weak momentum

Large capacity additions destroyed return of industry Unsustainable dividend Weak balance sheet

Fundamental research


25

GEN0190n.ppt


Source: UBS Global Asset Management. For illustrative purposes only.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.

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 1 May 2004

How we deal with risk …

Risk Management Results

Taking risk whenrewarded for it

Awareness of low volatility and leverage

Active risk of European Opportunity Unconstrained7.7% since inception1

to 30 June 2013

Active share with index averaged 114% as at 30 June 2013Qualitative

Corporate Governance Use of uncorrelated information sources

Quantitative Risk checks on accounting quality Financial Health

Fundamental Sensitivity Analysis (upside / downside) Leverage and industry structure

… a holistic approach

Risk systems

SECTION 3

Summary and Positioning

27

23201


Sector positions % Insurance +14.2 Pharma, Bio & Life Sciences +11.1 Household & Personal +5.4 Software & Services +3.3 Media +3.0 Diversified Financials -3.3 Utilities -4.7 Banks -4.8 Energy -7.3 Materials -11.7

Current views – European Opportunity Unconstrained

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

As at 31 August 2013

Stock positions


Top 10 positive (overweight) %

Novartis 6.5 Bayer 4.1 Roche 3.7 Sampo 3.5 Total 3.3 Reckitt Benckiser 3.1 WPP 2.7 GlaxoSmithKline 2.7 Repsol 2.7 Novo-Nordisk 2.6

28

23201


Summary

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

Concentrated Alpha

APPENDIX

Additional information

30

23201


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

Key data

UBS (Lux) Equity SICAV – European Opportunity Unconstrained (EUR) P-acc

Source: UBS Global Asset Management.

31

23201


31

Performance dataUBS (Lux) Equity SICAV – European Opportunity Unconstrained (EUR) P-accMorningstar Rating TM: *****Recalculated and actual performance(share class P-acc; basis EUR, net of fees)1

Performance per year in % (right-hand scale)Recalculated performance (left-hand scale) Actual performance (left-hand scale)

MSCI Europe

00.10.20.30.40.50.60.70.80.91

2030405060708090

100110120

2007 2008 2009 2010 2011 2012 2013

Ind

exed

on

th

e b

asis

of

mo

nth

-en

d d

ata

-50-40-30-20-1001020304050

(%)

Launch of P share class

Source: UBS Global Asset Management1 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

In % (EUR) 20072 2008 2009 2010 2011 2012 2013 YTD

Aug. 2013

5 years cumulative

5 years p.a.

Fund -7.9 -42.0 41.4 11.4 -1.3 22.4 12.4 -3.3 55.1 9.2 Benchmark -6.9 -43.7 31.2 11.9 -8.5 16.9 8.6 -0.6 18.5 3.5 Excess Return -1.1 1.7 10.2 -0.6 7.2 5.5 3.8 -2.7 36.5 5.7

32

23201


95

115

135

155

Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13

80

100

120

140

160

May-04 May-06 May-08 May-10 May-12

90

100

110

120

Sep-08 Sep-09 Sep-10 Sep-11 Sep-12

Our performance record

Pan Europe Concentrated / MSCI Europe wealth relative European Opp. Unconstrained/MSCI Europe wealth relative

Leveraging resources across all mandates

Global Concentrated Alpha Equity / MSCI World wealth relative

Value added since inception¹ = +4.1%pa

Value added since inception³ = +3.1%pa

Value added since inception² = +6.9%pa

90

100

110

120

130

Apr-11 Oct-11 Apr-12 Oct-12 Apr-13

Global Opportunity Long Short wealth index

Absolute return since inception4 = +8.4%pa

Key: Down Market is shaded areaSource: 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

33

23201


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.


-60%

-40%

-20%

0%

20%

40%

60%

May-08 May-09 May-10 May-11 May-12 May-13

% R

etu

rn B

ench

mar

k

-30%

-20%

-10%

0%

10%

20%

30%

% R

ollin

g 1-year alp

ha (fu

nd

)

Rolling 1-year benchmark return Rolling 1-year alpha: UBS European Opportunity Unconstrained strategy

Value added in up and down markets

Rolling one-year excess returns since inception

34

23201



-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

May-08 May-09 May-10 May-11 May-12 May-13

% R

etu

rn

Value outperforms Growth Growth outperforms Value Rolling 1 year alpha: UBS European Opportunity Unconstrained

Value added over style cycles

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.

Rolling one-year excess returns since inception

35

23201


Global and multi-faceted approach

…but specific targeting is key Source: UBS Global Asset Management. June 2013

Diverse information sources are necessary…

More than 14,000 companies in Holt Selective internal & external analysts

More than 4,000 quantitative profiles of global companies, biweekly refreshed data

From 5 different data providers

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

Fundamental

QuantitativeQualitative

Portfolio

36

23201


Taking opportunities across the spectrum

…but selectively weight according to the environment

Monitor all three circles…

Quantitative research

(e.g. multi-factor models)

Qualitative research

(e.g. strategists)

Portfolio Concentration

Less exposure 2006/2010 Valuation spreads lowIncreased exposure 2008/2009 Valuation spreads wide and falling

Less exposure in 2007/2008 Leverage high, valuation spreads lowIncreased exposure 2009+ Leveraged buy-outs models attractive

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

Fundamental research

(e.g. internal recommendations,

corporate governance, company management

visits)

Source: UBS Global Asset Management.

37

23201


Maximilian Anderl, CFA Head of Concentrated Alpha EquityExecutive Director

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.


Education: University of Innsbruck (Austria), MS; University of St Gallen (Switzerland) and Stockholm School of Economics (Sweden), Lic.oec.HSG

38

23201


Jeremy Leung, CFAPortfolio Manager – Concentrated Alpha Equity Director


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 forsupporting 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.

39

GEN0190n.ppt


Performance: European Opportunity Unconstrained

GIPS Disclosure

BAS.IN

40

23201


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.

23201 x european opportunity unconstrained w aug 13 perf

Economy & Finance

Transcript of 23201 x european opportunity unconstrained w aug 13 perf