ab Asset management UBS Funds Annual Report 2012/2013 Investment Company under Luxembourg Law (SICAV) R.C.S. Luxembourg N° B 88 580 Audited annual report as of 30 September 2013 UBS (Lux) Key Selection SICAV UBS (Lux) Key Selection SICAV – Absolute Return Medium (CHF) UBS (Lux) Key Selection SICAV – Absolute Return Medium (EUR) UBS (Lux) Key Selection SICAV – Absolute Return Medium (USD) UBS (Lux) Key Selection SICAV – Absolute Return Plus (CHF) UBS (Lux) Key Selection SICAV – Absolute Return Plus (EUR) UBS (Lux) Key Selection SICAV – Active Defense 5 (CHF) UBS (Lux) Key Selection SICAV – Active Defense 5 (EUR) UBS (Lux) Key Selection SICAV – Active Defense 5 (USD) UBS (Lux) Key Selection SICAV – All-Rounder (EUR) UBS (Lux) Key Selection SICAV – Asian Allocation (USD) 1 UBS (Lux) Key Selection SICAV – Asian Equities (USD) 2 UBS (Lux) Key Selection SICAV – Commodity Strategy (USD) UBS (Lux) Key Selection SICAV – Dynamic Alpha (USD) 3 UBS (Lux) Key Selection SICAV – Emerging Markets Allocation (USD) 4 UBS (Lux) Key Selection SICAV – Emerging Markets Income (USD) UBS (Lux) Key Selection SICAV – EUR Bonds (EUR) 5 UBS (Lux) Key Selection SICAV – European Core Equities (EUR) 6 UBS (Lux) Key Selection SICAV – Global Allocation (CHF) UBS (Lux) Key Selection SICAV – Global Allocation (EUR) UBS (Lux) Key Selection SICAV – Global Allocation (USD) UBS (Lux) Key Selection SICAV – Global Allocation Focus Europe (EUR) 7 UBS (Lux) Key Selection SICAV – Global Alpha Opportunities (EUR) 8 UBS (Lux) Key Selection SICAV – Global Equities (USD) 9 UBS (Lux) Key Selection SICAV – Global Real Estate Securities (USD) 10 UBS (Lux) Key Selection SICAV – Multi Asset Income (USD) 11 UBS (Lux) Key Selection SICAV – Smart Allocator (USD) UBS (Lux) Key Selection SICAV – US Equities (USD) 12 1 formerly UBS (Lux) Key Selection SICAV – Asian Allocation 2 formerly UBS (Lux) Key Selection SICAV – Asian Equities 3 formerly UBS (Lux) Key Selection SICAV – Absolute Return Plus (USD) 4 formerly UBS (Lux) Key Selection SICAV – Emerging Markets Allocation 5 formerly UBS (Lux) Key Selection SICAV – EUR Bonds 6 formerly UBS (Lux) Key Selection SICAV – European Core Equities 7 formerly UBS (Lux) Key Selection SICAV – Global Allocation Focus Europe 8 formerly UBS (Lux) Key Selection SICAV – Global Alpha Opportunities 9 formerly UBS (Lux) Key Selection SICAV – Global Equities 10 formerly UBS (Lux) Key Selection SICAV – Global Real Estate Securities 11 formerly UBS (Lux) Key Selection SICAV – Multi Asset Income 12 formerly UBS (Lux) Key Selection SICAV – US Equities
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Annual Report 2012/2013 - CMVMweb3.cmvm.pt/sdi2004/fundos/docs/ORC053551LU0218832474020… · Annual Report as of 30 September 2013 Auditor of the Company and the Management Company
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UBS (Lux) Key Selection SICAVAnnual Report as of 30 September 2013
Auditor of the Company and the Management Company
ERNST & YOUNG S.A.,7, rue Gabriel Lippmann, Parc d’Activité Syrdall 2,L-5365 Munsbach
Sale in Switzerland
RepresentativeUBS Fund Management (Switzerland) AG,Brunngässlein 12, CH-4002 Basel
Paying agentsUBS AG, Aeschenvorstadt 1, CH-4002 BaselUBS AG, Bahnhofstrasse 45, CH-8098 Zurichand its offices in Switzerland
The sales prospectus, the KIID, the articles of association of the Company, the annual and semi-annual reports as well as the portfolio movements of the Company mentioned in this publication are available free of charge from UBS AG, P.O. Box, CH-4002 Basel and from UBS Fund Management (Switzerland) AG, P.O. Box, CH-4002 Basel.
Sale in Germany
Sales agency and information agentUBS Deutschland AG,Bockenheimer Landstr. 2-4, D-60306 Frankfurt am Main
The following subfund have not been authorized for public distribution in Germany. Shares of this subfund may not be distributed to investor in Germany:
The sales prospectus, the KIID, the articles of association of the Company, the annual and semi-annual reports as well as the portfolio movements of the Company mentioned in this publication are available free of charge from UBS Deutschland AG, Bockenheimer Landstr. 2-4, D-60306 Frankfurt am Main.
Sale in Austria, in Belgium, in Chile, in Finland, in France, in Greece, in Hungary, in Italy, in Japan, in Malta, in the Netherlands, in Norway, in Peru, in Portugal, in Singapore, in South Korea, in Spain, in Sweden, in Taiwan and in the United Kingdom
Shares of this Company may be sold in these countries.
The sales prospectus, the KIID, the articles of association of the Company, the annual and semi-annual reports as well as the portfolio movements of the Company mentioned in this publication are available free of charge at the sales agencies and at the registered office of the Company.
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UBS (Lux) Key Selection SICAVAnnual Report as of 30 September 2013
Features of the Company
UBS (Lux) Key Selection SICAV (hereinafter called the “Company”) was incorporated on 9 August 2002 as an open-end investment fund in the legal form of a “Société d’Investissement à Capital Variable” (SICAV) in accordance with Part I of the Luxembourg law relat-ing to undertakings for collective investment enacted on 30 March 1988 and amended to comply with the require-ments of the Luxembourg law of 20 December 2002 in February 2004, and the Luxembourg law of 2010 since 1 July 2011. Effective 16 May 2011, the Company has appointed UBS Fund Management (Luxembourg) S.A. as its Management Company.
The Articles of Association were published in the “Mémorial, Recueil des Sociétés et Associations” (hereinafter called “Mémorial”) on 23 August 2002, and deposited at the Commercial and Company Register of the District Court in Luxembourg for inspection. The consolidated version of the articles of incorporation is held by the Commercial and Company Register of the District Court in Luxembourg for inspection. Any amendments are published by way of a notice of deposit in the Mémorial, in a Luxembourg daily newspaper and, if necessary, in the official publications of the individual distribution countries. Amendments become legally binding in respect of all shareholders subsequent to their approval by the general meeting of shareholders.
The Company offers investors various subfunds (“Umbrella Structure”) which invest in accordance with the investment policy described in the sales prospectus. The sales prospectus contains specific details on each subfund and will be updated each time a new subfund or additional share class is issued.
As at 30 September 2013, the following subfunds are active:
UBS (Lux) Key Selection SICAV Currency of account of the subfund– Active Defense 5 (CHF) CHF
– Active Defense 5 (EUR) EUR
– Active Defense 5 (USD) USD
– All-Rounder (EUR) EUR
– Asian Equities (USD)1 USD
– Commodity Strategy (USD) USD
– Dynamic Alpha (USD)2 USD
– Emerging Markets Allocation (USD)3 USD
– Emerging Markets Income (USD) USD
– EUR Bonds (EUR)4 EUR
– European Core Equities (EUR)5 EUR
– Global Allocation (CHF) CHF
– Global Allocation (EUR) EUR
– Global Allocation (USD) USD
– Global Allocation Focus Europe (EUR)6 EUR
– Global Alpha Opportunities (EUR)7 EUR
UBS (Lux) Key Selection SICAV Currency of account of the subfund– Global Equities (USD)8 USD
– Global Real Estate Securities (USD)9 USD
– Multi Asset Income (USD)10 USD
– Smart Allocator (USD) USD
1 formerly UBS (Lux) Key Selection SICAV – Asian Equities 2 formerly UBS (Lux) Key Selection SICAV – Absolute Return Plus (USD) 3 formerly UBS (Lux) Key Selection SICAV – Emerging Markets Allocation 4 formerly UBS (Lux) Key Selection SICAV – EUR Bonds 5 formerly UBS (Lux) Key Selection SICAV – European Core Equities 6 formerly UBS (Lux) Key Selection SICAV – Global Allocation Focus Europe 7 formerly UBS (Lux) Key Selection SICAV – Global Alpha Opportunities 8 formerly UBS (Lux) Key Selection SICAV – Global Equities 9 formerly UBS (Lux) Key Selection SICAV – Global Real Estate Securities10 formerly UBS (Lux) Key Selection SICAV – Multi Asset Income
Various share classes can be offered for the subfunds. Information on which share classes are available for which subfund can be obtained from the Administrative Agent or at www.ubs.com/funds.
“P”
Shares in classes with “P” in their name are available to all investors. Their smallest tradable unit is 0.001. Un-less the Management Company decides otherwise, the initial issue price of these shares amounts to AUD 100, CAD 100, CHF 100, CZK 2,000, EUR 100, GBP 100, HKD 1 000, JPY 10 000, PLN 500, RMB 1 000, RUB 3 500, SEK 700, SGD 100 or USD 100.
“N”
Shares in classes with “N” in their name (shares with restrictions on the distribution partners or countries) are issued exclusively through Distributors domiciled in Spain, Italy, Portugal and Germany authorised by UBS AG, as well as, where appropriate, through Distributors in further distribution countries, provided this has been decided by the Company. Their smallest tradable unit is 0.001. Unless the Management Company decides oth-erwise, the initial issue price of these shares amounts to AUD 100, CAD 100, CHF 100, CZK 2 000, EUR 100, GBP 100, HKD 1 000, JPY 10 000, PLN 500, RMB 1 000, RUB 3 500, SEK 700, SGD 100 or USD 100.
“K-1”
Shares in classes with “K-1” in their name are available to all investors. Their smallest tradable unit is 0.1. Un-less the Management Company decides otherwise, the initial issue price of these shares amounts to AUD 5 million, CAD 5 million, CHF 5 million, CZK 100 million, EUR 3 million, GBP 2.5 million, HKD 40 million, JPY 500 million, PLN 25 million, RMB 35 million, RUB 175 million, SEK 35 million, SGD 5 million or USD 5 million.
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UBS (Lux) Key Selection SICAVAnnual Report as of 30 September 2013
“F”
Shares in classes with “F” in their name are exclusively available to UBS AG or one of its affiliated companies. The shares may only be acquired by UBS AG or one of its affiliated companies for their own account or as part of discretionary asset management mandates concluded with UBS AG or one of its affiliated companies. In the latter case, the shares will be returned to the Company at the prevailing net asset value at no charge upon termination of the mandate. The shares’ smallest trad-able unit is 0.001. Unless the Company decides other-wise, the initial issue price of these shares amounts to AUD 100, CAD 100, CHF 100, CZK 2 000, EUR 100, GBP 100, HKD 1 000, JPY 10 000, PLN 500, RMB 1 000, RUB 3 500, SEK 700, SGD 100 or USD 100.
“Q”
Shares in classes with “Q” in their name are available:(i) for distribution from an eligible country as defined by
“List A”; or(ii) to investors domiciled in other countries, if they are
professionals of the financial sector and a written agreement exists with UBS AG; and who make the following investments in their own name and:
(a) on their own behalf; (b) on behalf of their clients within a discretionary
mandate; or (c) on behalf of a collective investment managed by a
professional of the financial sector, in cases (b) and (c), said professional has been duly au-thorised by the supervisory authority to which he/she is subject to carry out such transactions, and is domiciled in an eligible country as defined by ‘List B’ and/or is operat-ing on behalf of another professional of the financial sec-tor who has been authorised in writing by UBS AG and is domiciled in one of the countries covered by “List B”.
Admission of investors in further distribution countries (lists A and B) shall be decided by the Board of Directors at its sole discretion and are disclosed on www.ubs.com/funds.
Their smallest tradable unit is 0.001. Unless the Management Company decides otherwise, the initial issue price of these shares amounts to AUD 100, CAD 100, CHF 100, CZK 2 000, EUR 100, GBP 100, HKD 1 000, JPY 10 000, PLN 500, RMB 1 000, RUB 3 500, SEK 700, SGD 100 or USD 100.
“I-A1”
Shares in classes with “I-A1” in their name are exclusively reserved for institutional investors within the meaning of Article 174 (2) (c) of the Law of 2010. Their smallest trad-able unit is 0.001. Unless the Management Company decides otherwise, the initial issue price of these shares amounts to AUD 100, CAD 100, CHF 100, CZK 2 000, EUR 100, GBP 100, HKD 1 000, JPY 10 000, PLN 500, RMB 1 000, RUB 3 500, SEK 700, SGD 100 or USD 100.
“I-A2”
Shares with classes with “I-A2” in their name are exclusively reserved for institutional investors within the meaning of Article 174 (2) (c) of the Law of 2010. Their smallest tradable unit is 0.001. Unless the Management Company decides otherwise, the initial issue price of these shares amounts to AUD 100, CAD 100, CHF 100, CZK 2 000, EUR 100, GBP 100, HKD 1 000, JPY 10 000, PLN 500, RUB 3 500, SEK 700, SGD 100 or USD 100. The minimum subscription amount for these shares amounts to AUD 10 million, CAD 10 million, CHF 10 million, CZK 200 million, EUR 5 million, GBP 5 million, HKD 80 million, JPY 1 billion, PLN 50 million, RMB 70 million, RUB 350 million, SEK 70 million, SGD 10 million or USD 10 million.
Upon subscription(i) a minimum subscription must be made pursuant to
the list above or(ii) be based on a written agreement of the institutional
investor with UBS AG – or with one of it authorised counterparties – for total assets managed by UBS AG or its portfolio in collective capital investments of UBS must be more than 30 million CHF (or the corresponding currency equivalent).
“I-A3”
Shares with classes with “I-A3” in their name are ex-clusively reserved for institutional investors within the meaning of Article 174 (2) (c) of the Law of 2010. Their smallest tradable unit is 0.001. Unless the Management Company decides otherwise, the initial issue price of these shares amounts to AUD 100, CAD 100, CHF 100, CZK 2 000, EUR 100, GBP 100, HKD 1 000, JPY 10 000, PLN 500, RUB 3 500, SEK 700, SGD 100 or USD 100. The minimum subscription amount for these shares amounts to AUD 30 million, CAD 30 million, CHF 30 million, CZK 600 million, EUR 20 million, GBP 20 million, HKD 240 million, JPY 3 billion, PLN 150 million, RMB 210 million, RUB 1.05 billion, SEK 210 million, SGD 30 million or USD 30 million.
Upon subscription(i) a minimum subscription must be made pursuant to
the list above or(ii) be based on a written agreement of the institutional
investor with UBS AG – or with one of it authorised counterparties – for total assets managed by UBS AG or its portfolio in collective capital investments of UBS must be more than 100 million CHF (or the corre-sponding currency equivalent).
“I-B”
Shares in classes with “I-B” in their name are exclusively reserved for institutional investors within the mean-ing of Article 174 (2) (c) of the Law of 2010 who have signed a written agreement on investing in one more subfunds of this umbrella fund with UBS AG or one of its authorised counterparties. A fee covering the costs
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UBS (Lux) Key Selection SICAVAnnual Report as of 30 September 2013
for Fund administration (comprising the costs of the Company, the administration and the Custodian Bank) is charged directly to the subfund. The costs for asset management and distribution are charged to in-vestors under the aforementioned agreements. Their smallest tradable unit is 0.001. Unless the Management Company decides otherwise, the initial issue price of these shares amounts to AUD 100, CAD 100, CHF 100, CZK 2 000, EUR 100, GBP 100, HKD 1 000, JPY 10 000, PLN 500, RMB 1 000, RUB 3 500, SEK 700, SGD 100 or USD 100.
“I-X”
Shares in classes with “I-X” in their name are exclusively reserved for institutional investors within the mean-ing of Article 174 (2) (c) of the Law of 2010 who have signed a written agreement on investing in one of more subfunds of this umbrella fund with UBS AG or one of its authorised counterparties. The costs for asset management, Fund administration (comprising the costs of the Company, the administration and the Custodian Bank) and distribution are charged to investors under the aforementioned agreements. Their smallest tradable unit is 0.001. Unless the Management Company decides otherwise, the initial issue price of these shares amounts to AUD 100, CAD 100, CHF 100, CZK 2 000, EUR 100, GBP 100, HKD 1 000, JPY 10,000, PLN 500, RMB 1 000, RUB 3 500, SEK 700, SGD 100 or USD 100.
“U-X”
Shares in classes with “U-X” in their name are exclusively reserved for institutional investors within the meaning of Article 174 (2) (c) of the Law of 2010 who have signed a written agreement on investing in one of more subfunds of this umbrella fund with UBS AG or one of its authorised counterparties. The costs for asset management, Fund administration (comprising the costs of the Company, the administration and the Custodian Bank) and distribution are charged to investors under the aforementioned agreements. This share class is exclusively geared towards financial products (i.e. fund of funds or other pooled structures in accordance with different legislation). Their smallest tradable unit is 0.001. Unless the Company decides otherwise, the initial issue price of these shares amounts to AUD 10 000, CAD 10 000, CHF 10 000, CZK 200 000, EUR 10 000, GBP 10 000, HKD 100 000, JPY 1 million, PLN 50 000, RMB 100 000, RUB 350 000, SEK 70 000, SGD 10 000 or USD 10 000.
Additional characteristics:
Currency
The share classes may be denominated in AUD, CAD, CHF, CZK, EUR, GBP, HKD, JPY, PLN, RMB, RUB, SEK, SGD or USD. For share classes issued in the currency of account of the respective subfund, the respective currency will not be included in the class name.
The currency of account features in the name of the rel-evant subfund.
“acc”
For share classes with “-acc” in their name, income is not distributed unless the Company decides otherwise.
“dist”
For share classes with “-dist” in their name, income is distributed unless the Company decides otherwise.
“qdist”
Share class with “-qdist” in their name may make quar-terly distributions, excluding fees and expenses. They may also make distributions out of capital and realised capital gains. Distributions out of capital shall result in the re-duction of an investor’s original capital invested in the subfund. Also, any distributions from the income and/or involving the capital and/or capital gains result in an im-mediate reduction of the net asset value per share of the subfund. Investors in certain countries may be subject to higher tax rates on distributed capital than on any capital gains from the sale of Fund units. Some investors may therefore choose to invest in the accumulating (-acc) in-stead of the distributing (-dist, -qdist) share classes. Inves-tors may be taxed at a later point in time on income and capital arising on accumulating (-acc) share classes com-pared to distributing (-dist) share classes. Investors should seek their own tax advice.
“mdist”
Shares in classes with “-mdist” in their name may make monthly distributions excluding fees and expenses. They may also make distributions out of capital and realised capital gains. Distributions out of capital shall result in the reduction of an investor’s original capital invested in the subfund. Also, any distributions from the income and/or involving the capital and/or capital gains result in an immediate reduction of the net asset value per share of the subfund. Investors in certain countries may be subject to higher tax rates on distributed capital than on any capital gains from the sale of fund units. Some investors may therefore choose to invest in the accumulating (-acc) instead of the distributing (-dist, -mdist) share classes. Investors may be taxed at a later point in time on income and capital arising on accumulating (-acc) share classes compared to distributing (-dist) share classes. Investors should seek their own tax advice.
“hedged”
For share classes whose reference currencies are not identical to the currency of account of the subfund, and which have “hedged” in their name (“share classes in foreign currencies”), the fluctuation risk of the reference currency price for those share classes is hedged against the currency of account of the subfund. Provision is made for the amount of the hedging to be in principle
8
UBS (Lux) Key Selection SICAVAnnual Report as of 30 September 2013
between 90% and 110% of the total net assets of the share class in foreign currency. Changes in the market value of the portfolio, as well as in subscriptions and redemptions of share classes in foreign currencies, can result in the hedging temporarily surpassing the afore-mentioned range.
The hedging described has no effect on possible cur-rency risks resulting from investments denominated in a currency other than the subfund’s currency of account.
“UKdist”
For share classes with “UKdist” in their name, the Company intends to distribute a sum which corresponds to 100% of the reportable income within the meaning of the UK reporting fund rules when the share classes are subject to the reporting fund rules. The Company does not intend to prepare tax reporting in other countries in respect of these share classes which are intended for investors who are subject to UK taxation on their invest-ment in the share class.
“RMB hedged”
Investors should note that the renminbi (ISO 4217 currency code: CNY), the official currency of the People’s Republic of China (the “PRC”), is traded on two markets, one in Mainland China being onshore RMB (CNY), and one outside Mainland China being offshore RMB (CNH).
Shares in classes with “RMB hedged” in their name are shares whose net asset value is calculated in offshore RMB (CNH).
Onshore RMB (CNY) is not a freely convertible currency and it is subject to foreign exchange control policies of and repatriation restrictions imposed by the PRC govern-ment. Offshore RMB (CNH), on the other hand, may be traded freely against other currencies, particularly EUR, CHF and USD. This means the exchange rate between offshore RMB (CNH) and other currencies is determined on the basis of supply and demand relating to the respec-tive currency pair.
RMB convertibility between offshore RMB (CNH) and onshore RMB (CNY) is a managed currency process sub-ject to foreign exchange control policies and repatriation restrictions imposed by the PRC government in coordina-tion with offshore regulatory or governmental agencies (e.g. the Hong Kong Monetary Authority).
Prior to investing in RMB classes, investors should bear in mind that the requirements relating to supervisory reporting and fund accounting of offshore RMB (CNH) are not clearly regulated. Furthermore, investors should be aware that offshore RMB (CNH) and onshore RMB (CNY) have different exchange rates against other currencies. The value of offshore RMB (CNH) could poten-tially differ significantly from that of onshore RMB (CNY) due to a number of factors including, without limitation,
foreign exchange control policies and repatriation restric-tions imposed by the PRC government from time to time as well as other external market forces. Any devaluation of offshore RMB (CNH) could adversely affect the value of investors’ investments in the RMB classes. Investors should therefore take care when calculating their invest-ments and the ensuing returns from offshore RMB (CNH) into their target currency.
Prior to investing in RMB classes, investors should also bear in mind that the availability and tradability of RMB classes, and the conditions under which they may be available or traded, depend to a large extent on the political and regulatory developments in the PRC. Thus, no guarantee can be given that offshore RMB (CNH) or the RMB classes will be offered and/or traded in future, nor can there be any guarantee as to the conditions under which offshore RMB (CNH) and/or RMB classes may be made available or traded. In particular, since the base currency of the relevant subfunds offering the RMB classes would be in a currency other than offshore RMB (CNH), the ability of the relevant subfund to make redemption payments in offshore RMB (CNH) would be subject to the subfund’s ability to convert its base cur-rency into offshore RMB (CNH) which may be restricted by the availability of offshore RMB (CNH) or other cir-cumstances beyond the control of the Company.
Potential investors should be aware of the risks of rein-vestment, which could arise if the RMB class has to be liquidated early due to political and/or regulatory circumstances. This does not apply to the reinvestment risk due to the liquidation of a share class and/or the subfund in accordance with the section “Liquidation of the Company and its subfunds; merger of subfunds”.
The entirety of the individual subfunds’ net assets forms the total net assets of the Company, which at any time correspond to the share capital of the Company and consist in fully paid-in and non-par-value shares (the “shares”).
At general meetings, the shareholder has the right to one vote per share held, irrespective of the difference in value of shares in the respective subfunds. Shares of a particular subfund carry the right of one vote per share held when voting at meetings affecting this subfund.
The Company is a single legal entity. With respect to the shareholders, each subfund is regarded as being separate from the others. The assets of a subfund can only be used to offset the liabilities which the subfund concerned has assumed.
The Company is empowered at any time to establish new subfunds and/or to liquidate existing ones, as well as to establish different share classes with specific characteris-tics within these subfunds. The sales prospectus will be updated each time a new subfund or an additional share class is issued.
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UBS (Lux) Key Selection SICAVAnnual Report as of 30 September 2013
The Company is unlimited with regard to duration and total assets.
The financial year of the Company ends on 30 September.
The ordinary general meeting takes place annually on 20 March at 10 o’clock a.m. at the registered office of the Company. If 20 March is not a business day in Luxembourg the ordinary general meeting will take place on the next business day.
Information on whether a subfund of the Company is listed on the Luxembourg Stock Exchange can be obtained from the Administrative Agent or the Luxembourg Stock Exchange website (www.bourse.lu).
The issue and redemption of shares of the Company are subject to the regulations prevailing in the country concerned.
Only the information contained in the sales prospectus and in one of the documents referred to therein shall be deemed to be valid.
The annual and semi-annual reports are available free of charge to shareholders at the registered office of the Company and of the Custodian Bank.
No subscription may be accepted on the basis of the financial reports. Subscriptions are accepted only on the basis of the current prospectus accompanied by the latest annual report and the latest semi-annual report if available.
UBS (Lux) Key Selection SICAVAnnual Report as of 30 September 2013
We have audited the accompanying financial statements of UBS (Lux) Key Selection SICAV and of each of its subfunds, which comprise the statement of net assets and the statement of investments in securities and other net assets as of 30 September 2013 and the statement of operations and the statement of changes in net assets for the year then ended, and a summary of significant accounting policies and other explanatory notes to the financial statements.
Board of Directors of the SICAV responsibility for the financial statements
The Board of Directors of the SICAV is responsible for the preparation and fair presentation of these financial statements in accordance with Luxembourg legal and regulatory requirements relating to the preparation and presentation of the financial statements and for such internal control as the Board of Directors of the SICAV determines is necessary to enable the preparation and presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Responsibility of the “réviseur d’entreprises agréé”
Our responsibility is to express an opinion on these financial statements based on our audit. We con-ducted our audit in accordance with International Stan-dards on Auditing as adopted for Luxembourg by the “Commission de Surveillance du Secteur Financier”. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the finan-cial statements. The procedures selected depend on the judgement of the “réviseur d’entreprises agréé”, includ-ing the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the “réviseur d’entreprises agréé” considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes eval-uating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board of Directors of the SICAV, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
UBS (Lux) Key Selection SICAVAnnual Report as of 30 September 2013
11
Opinion
In our opinion, the financial statements give a true and fair view of the financial position of UBS (Lux) Key Selection SICAV and of each of its subfunds as of 30 September 2013, and of the results of their opera-tions and changes in their net assets for the year then ended in accordance with Luxembourg legal and regu-latory requirements relating to the preparation and pre-sentation of the financial statements.
Other matter
Supplementary information included in the annual report has been reviewed in the context of our mandate but has not been subject to specific audit procedures car-ried out in accordance with the standards described above. Consequently, we express no opinion on such information. However, we have no observation to make concerning such information in the context of the financial statements taken as a whole.
Luxembourg, 31 January 2014
ERNST & YOUNGSociété AnonymeCabinet de révision agréé
N. Faber
12 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAVAnnual Report as of 30 September 2013
Consolidated Statement of Net Assets EURAssets 30.9.2013Investments in securities, cost 3 928 885 935.40Investments in securities, unrealized appreciation (depreciation) 318 183 803.53Total investments in securities (Note 1) 4 247 069 738.93Cash at banks, deposits on demand and deposit accounts 231 742 583.27Other liquid assets (Margins) 46 625 049.94Receivable on securities purchases 3 000 000.00Receivable on securities sales (Note 1) 5 173 087.14Receivable on subscriptions 2 819 367.81Interest receivable on securities 8 119 707.26Interest receivable on liquid assets 26 132.49Receivable on dividends 1 771 819.15Other receivables 496 185.06Unrealized gain (loss) on financial futures (Note 1) 3 202 214.04Unrealized gain (loss) on options, futures-styled (Note 1) 87 856.85Unrealized gain (loss) on forward foreign exchange contracts (Note 1) 1 823 548.31Unrealized gain (loss) on swaps (Note 1) 13 669 743.12Total Assets 4 565 627 033.37
LiabilitiesBank overdraft -757 482.73Other short-term liabilities (Margins) -300 450.08Interest payable on bank overdraft -1 199.57Payable on securities purchases (Note 1) -38 958 913.26Payable on redemptions -8 010 729.09Payable on subscriptions -161 505.79Provisions for flat fee (Note 2) -3 099 317.52Provisions for taxe d’abonnement (Note 3) -290 584.70Total provisions -3 389 902.22Total Liabilities -51 580 182.74
Net assets at the end of the financial year 4 514 046 850.63
* As at 30 September 2013, cash amounts serves as collateral for the counterparty BNP London and Citi Bank Londan for an amount of USD 820 000.
*
UBS (Lux) Key Selection SICAV
The notes are an integral part of the fi nancial statements. 13
UBS (Lux) Key Selection SICAVAnnual Report as of 30 September 2013
Consolidated Statement of Operations EURIncome 1.10.2012-30.9.2013Interest on liquid assets 336 304.14Interest on securities 17 096 964.15Dividends (Note 1) 33 389 675.59Interest received on swaps (Note 1) 10 758 204.60Income on securities lending (Note 16) 1 408 009.04Other income 384 158.20Total income 63 373 315.72
ExpensesInterest paid on swaps (Note 1) -859 398.94Flat fee (Note 2) -73 327 858.22Taxe d’abonnement (Note 3) -992 855.14Cost on securities lending (Note 16) -536 613.68Interest on cash liquidity and bank overdraft -70 612.08Other expenses -2 983.34Total expenses -75 790 321.40
Net income (loss) on investments -12 417 005.68
Realized gain (loss) (Note 1)Realized gain (loss) on market-priced securities without options 327 967 630.27Realized gain (loss) on options -15 238 884.53Realized gain (loss) on yield-evaluated securities and money market instruments -319 123.05Realized gain (loss) on financial futures 67 232 627.03Realized gain (loss) on options, futures-styled -123 036.33Realized gain (loss) on forward foreign exchange contracts 40 633 142.15Realized gain (loss) on swaps -1 510 808.91Realized result on subscriptions/redemptions (Note 4) 3 874 067.61Total realized gain (loss) on investments 422 515 614.24Realized gain (loss) on foreign exchange 12 610 469.89Total realized gain (loss) 435 126 084.13
Net realized gain (loss) of the financial year 422 709 078.45
Changes in unrealized appreciation (depreciation) (Note 1)Unrealized appreciation (depreciation) on market-priced securities without options -51 276 893.71Unrealized appreciation (depreciation) on options -2 477 347.49Unrealized appreciation (depreciation) on yield-evaluated securities and money market instruments 73 460.87Unrealized appreciation (depreciation) on financial futures -671 162.06Unrealized appreciation (depreciation) on options, futures-styled 128 918.42Unrealized appreciation (depreciation) on forward foreign exchange contracts -9 701 858.65Unrealized appreciation (depreciation) on swaps -1 112 154.76Total changes in unrealized appreciation (depreciation) -65 037 037.38
Net increase (decrease) in net assets as a result of operations 357 672 041.07
14 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Absolute Return Medium (CHF) Annual Report as of 30 September 2013
UBS (Lux) Key Selection SICAV– Absolute Return Medium (CHF)
Most important figures
ISIN 30.11.2012 30.9.2012 30.9.2011Net assets in CHF 118 687 877.44 150 696 515.61 282 809 442.92Class P-acc LU0218832631Shares outstanding 1 447 062.9770 1 846 482.4370 3 693 862.1560Net asset value per share in CHF 82.02 81.61 76.56Issue and redemption price per share in CHF1 82.02 81.61 76.56
1 See note 1
Structure of the Securities Portfolio
As the subfund UBS (Lux) Key Selection SICAV – Absolute Return Medium (CHF) was merged into UBS (Lux) Key Selection SICAV – Multi Asset Income (USD) as at 30 November 2012, there is no securities portfolio or securities portfolio structure at the end of the reporting period.
The notes are an integral part of the fi nancial statements. 15
UBS (Lux) Key Selection SICAV – Absolute Return Medium (CHF) Annual Report as of 30 September 2013
Statement of Operations CHFIncome 1.10.2012-30.9.2013Interest on liquid assets 4 604.21Interest received on swaps (Note 1) 403 322.76Total income 407 926.97
ExpensesInterest paid on swaps (Note 1) -145 324.22Flat fee (Note 2) -392 891.70Taxe d’abonnement (Note 3) -9 923.70Interest on cash liquidity and bank overdraft -2 171.31Total expenses -550 310.93
Net income (loss) on investments -142 383.96
Realized gain (loss) (Note 1)Realized gain (loss) on market-priced securities without options 1 170 137.65Realized gain (loss) on options -710 216.32Realized gain (loss) on financial futures 1 242 669.59Realized gain (loss) on forward foreign exchange contracts 3 191 855.52Realized gain (loss) on swaps 1 951 488.80Realized result on subscriptions/redemptions (Note 4) 42 722.72Total realized gain (loss) on investments 6 888 657.96Realized gain (loss) on foreign exchange -6 214.29Total realized gain (loss) 6 882 443.67
Net realized gain (loss) of the financial year 6 740 059.71
Changes in unrealized appreciation (depreciation) (Note 1)Unrealized appreciation (depreciation) on market-priced securities without options -2 074 899.34Unrealized appreciation (depreciation) on options 463 045.18Unrealized appreciation (depreciation) on financial futures -433 132.29Unrealized appreciation (depreciation) on forward foreign exchange contracts -1 973 260.11Unrealized appreciation (depreciation) on swaps -2 109 915.35Total changes in unrealized appreciation (depreciation) -6 128 161.91
Net increase (decrease) in net assets as a result of operations 611 897.80
Statement of Changes in Net Assets CHF 1.10.2012-30.9.2013Net assets at the beginning of the financial year 150 696 515.61Subscriptions 36 155.88Redemptions -151 344 569.29Total net subscriptions (redemptions) -151 308 413.41Net income (loss) on investments -142 383.96Total realized gain (loss) 6 882 443.67Total changes in unrealized appreciation (depreciation) -6 128 161.91Net increase (decrease) in net assets as a result of operations 611 897.80Net assets at the end of the financial year 0.00
Changes in the Number of Shares outstanding
1.10.2012-30.9.2013Class P-accNumber of shares outstanding at the beginning of the financial year 1 846 482.4370Number of shares issued 441.7280Number of shares redeemed -1 846 924.1650Number of shares outstanding at the end of the financial year 0.0000
16 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Absolute Return Medium (EUR)Annual Report as of 30 September 2013
UBS (Lux) Key Selection SICAV – Absolute Return Medium (EUR)
Most important figures
ISIN 30.11.2012 30.9.2012 30.9.2011Net assets in EUR 23 012 209.12 27 788 367.63 44 232 021.22Class P-acc LU0218832474Shares outstanding 260 379.5610 316 439.6640 540 264.4220Net asset value per share in EUR 88.38 87.82 81.87Issue and redemption price per share in EUR1 88.38 87.82 81.87
1 See note 1
Structure of the Securities Portfolio
As the subfund UBS (Lux) Key Selection SICAV – Absolute Return Medium (EUR) was merged into UBS (Lux) Key Selection SICAV – Multi Asset Income (USD) as at 30 November 2012, there is no securities portfolio or securities portfolio structure at the end of the reporting period.
The notes are an integral part of the fi nancial statements. 17
UBS (Lux) Key Selection SICAV – Absolute Return Medium (EUR)Annual Report as of 30 September 2013
Statement of Operations EURIncome 1.10.2012-30.9.2013Interest on liquid assets 801.64Interest received on swaps (Note 1) 75 657.52Total income 76 459.16
ExpensesInterest paid on swaps (Note 1) -26 297.67Flat fee (Note 2) -73 661.59Taxe d’abonnement (Note 3) -1 918.63Interest on cash liquidity and bank overdraft -280.08Total expenses -102 157.97
Net income (loss) on investments -25 698.81
Realized gain (loss) (Note 1)Realized gain (loss) on market-priced securities without options 2 178 072.92Realized gain (loss) on options -130 180.49Realized gain (loss) on financial futures 254 213.28Realized gain (loss) on forward foreign exchange contracts 763 002.42Realized gain (loss) on swaps 362 499.65Realized result on subscriptions/redemptions (Note 4) 6 509.39Total realized gain (loss) on investments 3 434 117.17Realized gain (loss) on foreign exchange -24 423.87Total realized gain (loss) 3 409 693.30
Net realized gain (loss) of the financial year 3 383 994.49
Changes in unrealized appreciation (depreciation) (Note 1)Unrealized appreciation (depreciation) on market-priced securities without options -2 302 646.90Unrealized appreciation (depreciation) on options 85 542.48Unrealized appreciation (depreciation) on financial futures -66 012.35Unrealized appreciation (depreciation) on forward foreign exchange contracts -561 825.21Unrealized appreciation (depreciation) on swaps -392 408.41Total changes in unrealized appreciation (depreciation) -3 237 350.39
Net increase (decrease) in net assets as a result of operations 146 644.10
Statement of Changes in Net Assets EUR 1.10.2012-30.9.2013Net assets at the beginning of the financial year 27 788 367.63Subscriptions 10 414.66Redemptions -27 945 426.39Total net subscriptions (redemptions) -27 935 011.73Net income (loss) on investments -25 698.81Total realized gain (loss) 3 409 693.30Total changes in unrealized appreciation (depreciation) -3 237 350.39Net increase (decrease) in net assets as a result of operations 146 644.10Net assets at the end of the financial year 0.00
Changes in the Number of Shares outstanding
1.10.2012-30.9.2013Class P-accNumber of shares outstanding at the beginning of the financial year 316 439.6640Number of shares issued 117.9690Number of shares redeemed -316 557.6330Number of shares outstanding at the end of the financial year 0.0000
18 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Absolute Return Medium (USD)Annual Report as of 30 September 2013
Most important figures
ISIN 30.11.2012 30.9.2012 30.9.2011Net assets in USD 17 178 283.67 18 579 357.24 24 566 755.35Class P-acc LU0218832128Shares outstanding 185 227.0690 201 678.6450 284 009.5150Net asset value per share in USD 92.74 92.12 86.50Issue and redemption price per share in USD1 92.74 92.12 86.50
1 See note 1
UBS (Lux) Key Selection SICAV – Absolute Return Medium (USD)
Structure of the Securities Portfolio
As the subfund UBS (Lux) Key Selection SICAV – Absolute Return Medium (USD) was merged into UBS (Lux) Key Selection SICAV – Multi Asset Income (USD) as at 30 November 2012, there is no securities portfolio or securities portfolio structure at the end of the reporting period.
The notes are an integral part of the fi nancial statements. 19
UBS (Lux) Key Selection SICAV – Absolute Return Medium (USD)Annual Report as of 30 September 2013
Statement of Operations USDIncome 1.10.2012-30.9.2013Interest on liquid assets 524.96Interest received on swaps (Note 1) 65 408.05Total income 65 933.01
ExpensesInterest paid on swaps (Note 1) -18 199.97Flat fee (Note 2) -50 489.36Taxe d’abonnement (Note 3) -1 439.24Interest on cash liquidity and bank overdraft -205.13Total expenses -70 333.70
Net income (loss) on investments -4 400.69
Realized gain (loss) (Note 1)Realized gain (loss) on market-priced securities without options 1 438 586.66Realized gain (loss) on options -83 189.63Realized gain (loss) on financial futures 186 986.15Realized gain (loss) on forward foreign exchange contracts -48 465.81Realized gain (loss) on swaps 196 134.88Realized result on subscriptions/redemptions (Note 4) 2 173.40Total realized gain (loss) on investments 1 692 225.65Realized gain (loss) on foreign exchange -14 492.94Total realized gain (loss) 1 677 732.71
Net realized gain (loss) of the financial year 1 673 332.02
Changes in unrealized appreciation (depreciation) (Note 1)Unrealized appreciation (depreciation) on market-priced securities without options -1 394 345.61Unrealized appreciation (depreciation) on options 55 857.47Unrealized appreciation (depreciation) on financial futures -58 617.77Unrealized appreciation (depreciation) on forward foreign exchange contracts 73 443.65Unrealized appreciation (depreciation) on swaps -232 719.70Total changes in unrealized appreciation (depreciation) -1 556 381.96
Net increase (decrease) in net assets as a result of operations 116 950.06
Statement of Changes in Net Assets USD 1.10.2012-30.9.2013Net assets at the beginning of the financial year 18 579 357.24Subscriptions 29 648.56Redemptions -18 725 955.86Total net subscriptions (redemptions) -18 696 307.30Net income (loss) on investments -4 400.69Total realized gain (loss) 1 677 732.71Total changes in unrealized appreciation (depreciation) -1 556 381.96Net increase (decrease) in net assets as a result of operations 116 950.06Net assets at the end of the financial year 0.00
Changes in the Number of Shares outstanding
1.10.2012-30.9.2013Class P-accNumber of shares outstanding at the beginning of the financial year 201 678.6450Number of shares issued 320.6290Number of shares redeemed -201 999.2740Number of shares outstanding at the end of the financial year 0.0000
20 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Absolute Return Plus (CHF)Annual Report as of 30 September 2013
UBS (Lux) Key Selection SICAV – Absolute Return Plus (CHF)
Most important figures
ISIN 30.11.2012 30.9.2012 30.9.2011Net assets in CHF 137 491 863.98 166 312 762.76 276 822 159.68Class P-acc LU0218834090Shares outstanding 1 339 883.8452 1 627 893.6040 2 991 667.6110Net asset value per share in CHF 102.61 102.16 92.53Issue and redemption price per share in CHF1 102.61 101.93 92.53
1 See note 1
Structure of the Securities Portfolio
As the subfund UBS (Lux) Key Selection SICAV – Absolute Return Plus (CHF) was merged into UBS (Lux) SICAV 1 – All-Rounder (USD) as at 30 November 2012, there is no securities portfolio or securities portfolio structure at the end of the reporting period.
The notes are an integral part of the fi nancial statements. 21
UBS (Lux) Key Selection SICAV – Absolute Return Plus (CHF)Annual Report as of 30 September 2013
Statement of Operations CHFIncome 1.10.2012-30.9.2013Interest on liquid assets 4 612.22Dividends (Note 1) 12 780.67Interest received on swaps (Note 1) 680 871.20Income on securities lending (Note 16) 2 646.02Total income 700 910.11
ExpensesInterest paid on swaps (Note 1) -240 610.19Flat fee (Note 2) -514 693.22Taxe d’abonnement (Note 3) -11 595.88Cost on securities lending (Note 16) -1 323.01Interest on cash liquidity and bank overdraft -5 580.56Total expenses -773 802.86
Net income (loss) on investments -72 892.75
Realized gain (loss) (Note 1)Realized gain (loss) on market-priced securities without options -119 383.30Realized gain (loss) on options -1 221 055.98Realized gain (loss) on financial futures 2 277 581.65Realized gain (loss) on forward foreign exchange contracts 4 934 590.14Realized gain (loss) on swaps 3 306 043.10Realized result on subscriptions/redemptions (Note 4) 65 601.11Total realized gain (loss) on investments 9 243 376.72Realized gain (loss) on foreign exchange -100 526.13Total realized gain (loss) 9 142 850.59
Net realized gain (loss) of the financial year 9 069 957.84
Changes in unrealized appreciation (depreciation) (Note 1)Unrealized appreciation (depreciation) on market-priced securities without options -1 721 505.67Unrealized appreciation (depreciation) on options 791 138.27Unrealized appreciation (depreciation) on financial futures -910 329.63Unrealized appreciation (depreciation) on forward foreign exchange contracts -3 076 740.76Unrealized appreciation (depreciation) on swaps -3 579 119.49Total changes in unrealized appreciation (depreciation) -8 496 557.28
Net increase (decrease) in net assets as a result of operations 573 400.56
Statement of Changes in Net Assets CHF 1.10.2012-30.9.2013Net assets at the beginning of the financial year 166 312 762.76Subscriptions 20 431.16Redemptions -166 906 594.48Total net subscriptions (redemptions) -166 886 163.32Net income (loss) on investments -72 892.75Total realized gain (loss) 9 142 850.59Total changes in unrealized appreciation (depreciation) -8 496 557.28Net increase (decrease) in net assets as a result of operations 573 400.56Net assets at the end of the financial year 0.00
Changes in the Number of Shares outstanding
1.10.2012-30.9.2013Class P-accNumber of shares outstanding at the beginning of the financial year 1 627 893.6040Number of shares issued 199.1320Number of shares redeemed -1 628 092.7360Number of shares outstanding at the end of the financial year 0.0000
22 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Absolute Return Plus (EUR)Annual Report as of 30 September 2013
Most important figures
ISIN 30.11.2012 30.9.2012 30.9.2011Net assets in EUR 42 385 687.00 48 619 505.70 71 459 131.34Class I-X-acc LU0425166864Shares outstanding 2 806.2060 2 913.9750 5 830.7860Net asset value per share in EUR 112.05 110.78 97.63Issue and redemption price per share in EUR1 112.05 110.78 97.63Class P-acc LU0218833795Shares outstanding 379 366.0590 439 343.9660 720 660.5910Net asset value per share in EUR 110.30 109.42 98.31Issue and redemption price per share in EUR1 110.30 109.42 98.31Class Q-acc LU0425165544Shares outstanding 2 044.2060 2 044.2060 409.0370Net asset value per share in EUR 110.81 109.76 97.73Issue and redemption price per share in EUR1 110.81 109.76 97.73
1 See note 1
UBS (Lux) Key Selection SICAV – Absolute Return Plus (EUR)
Structure of the Securities Portfolio
As the subfund UBS (Lux) Key Selection SICAV – Absolute Return Plus (EUR) was merged into UBS (Lux) Sicav 1 – All-Rounder (USD) as at 30 November 2012, there is no securities portfolio or securities portfolio structure at the end of the reporting period.
The notes are an integral part of the fi nancial statements. 23
UBS (Lux) Key Selection SICAV – Absolute Return Plus (EUR)Annual Report as of 30 September 2013
Statement of Operations EURIncome 1.10.2012-30.9.2013Interest on liquid assets 2 113.42Dividends (Note 1) 2 625.50Interest received on swaps (Note 1) 191 231.06Income on securities lending (Note 16) 578.58Total income 196 548.56
ExpensesInterest paid on swaps (Note 1) -25 994.35Flat fee (Note 2) -156 958.18Taxe d’abonnement (Note 3) -3 533.66Cost on securities lending (Note 16) -289.29Interest on cash liquidity and bank overdraft -970.85Total expenses -187 746.33
Net income (loss) on investments 8 802.23
Realized gain (loss) (Note 1)Realized gain (loss) on market-priced securities without options 5 133 961.97Realized gain (loss) on options -349 098.83Realized gain (loss) on financial futures 715 696.54Realized gain (loss) on forward foreign exchange contracts 1 673 818.86Realized gain (loss) on swaps 933 656.75Realized result on subscriptions/redemptions (Note 4) 26 829.36Total realized gain (loss) on investments 8 134 864.65Realized gain (loss) on foreign exchange -44 035.07Total realized gain (loss) 8 090 829.58
Net realized gain (loss) of the financial year 8 099 631.81
Changes in unrealized appreciation (depreciation) (Note 1)Unrealized appreciation (depreciation) on market-priced securities without options -5 486 000.71Unrealized appreciation (depreciation) on options 230 272.83Unrealized appreciation (depreciation) on financial futures -231 157.71Unrealized appreciation (depreciation) on forward foreign exchange contracts -1 229 678.50Unrealized appreciation (depreciation) on swaps -1 043 807.71Total changes in unrealized appreciation (depreciation) -7 760 371.80
Net increase (decrease) in net assets as a result of operations 339 260.01
Statement of Changes in Net Assets EUR 1.10.2012-30.9.2013Net assets at the beginning of the financial year 48 619 505.70Subscriptions 2 616 405.38Redemptions -51 575 171.09Total net subscriptions (redemptions) -48 958 765.71Net income (loss) on investments 8 802.23Total realized gain (loss) 8 090 829.58Total changes in unrealized appreciation (depreciation) -7 760 371.80Net increase (decrease) in net assets as a result of operations 339 260.01Net assets at the end of the financial year 0.00
Changes in the Number of Shares outstanding
1.10.2012-30.9.2013Class I-X-accNumber of shares outstanding at the beginning of the financial year 2 913.9750Number of shares issued 0.0000Number of shares redeemed -2 913.9750Number of shares outstanding at the end of the financial year 0.0000Class P-accNumber of shares outstanding at the beginning of the financial year 439 343.9660Number of shares issued 23 820.4590Number of shares redeemed -463 164.4250Number of shares outstanding at the end of the financial year 0.0000Class Q-accNumber of shares outstanding at the beginning of the financial year 2 044.2060Number of shares issued 0.0000Number of shares redeemed -2 044.2060Number of shares outstanding at the end of the financial year 0.0000
24 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Active Defense 5 (CHF)Annual Report as of 30 September 2013
Three-year comparison
ISIN 30.9.2013 30.9.2012 30.9.2011Net assets in CHF 70 488 438.81 90 182 248.52 115 101 348.28Class P-acc LU0421758110Shares outstanding 715 289.6510 955 687.4620 1 198 044.6890Net asset value per share in CHF 98.55 94.36 96.07Issue and redemption price per share in CHF1 98.25 94.08 96.07
Historical performance is no indicator of current or future performance.The performance data does not take account of any commissions and costs charged when subscribing and redeeming shares.The performance data were not audited.
1 The subfund does not have a benchmark, which means that the performance of the subfund cannot be compared with a benchmark.
UBS (Lux) Key Selection SICAV – Active Defense 5 (CHF)
The notes are an integral part of the fi nancial statements. 25
UBS (Lux) Key Selection SICAV – Active Defense 5 (CHF)Annual Report as of 30 September 2013
Report of the Portfolio Manager
In the reporting year from 1 October 2012 to 30 September 2013, the last three months of 2012 were generally benign towards risky assets. The market environment changed in 2013 with performance across emerging markets equity and debt starting to deteriorate and culminating in a May sell-off. At the same time, global government bonds suffered amidst the prospect of better global growth and higher interest rate expectations. High yield bonds were positive over the reporting year but could not recover to the April peaks until the end of Q3. Developed equities presented the most rewarding opportunities despite participating strongly in the May sell-off. Some of the European equities outpaced the US markets. Tail risks like the Middle East conflict, the Eurozone crisis, monetary policy errors, GDP growth disappointments and the China hard landing left markets largely untroubled in the period ending September 2013.
The subfund posted a positive performance in the reporting year. Having had an active low duration allocation for most of 2013 helped to limit the impact of Fed tapering speculations. The focus was on capturing upside in the equity markets and in high yield. Nearing critical events like the year-end fiscal cliff in the US, the critical Federal Reserve announcement, or political elections in Europe, the approach was to cap the downside by using equity options. The equity allocation contributed the most significantly to the positive performance. The subfund follows a risk-focused investment process. The risk budget is invested in asset classes such as equities, interest and currencies to build up a broadly diversified investment in financial markets based on investment opportunities. At the end of the hedging period, we aim to maintain a floor value. The subfund does not have a benchmark.
Structure of the Securities Portfolio
Geographical Breakdown as a % of net assetsLuxembourg 31.55Switzerland 17.59France 7.13United States 7.04Netherlands 6.61Germany 2.52United Kingdom 0.12Total 72.56
Economic Breakdown as a % of net assetsInvestment funds & pension foundations 46.80Banks & credit institutions 13.41Finance & holding companies 5.74Energy & water supply 4.28Insurance 2.33Total 72.56
26 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Active Defense 5 (CHF)Annual Report as of 30 September 2013
Statement of Net Assets CHFAssets 30.9.2013Investments in securities, cost 51 570 598.55Investments in securities, unrealized appreciation (depreciation) -421 164.31Total investments in securities (Note 1) 51 149 434.24Cash at banks, deposits on demand and deposit accounts 19 603 800.66Other liquid assets (Margins) 70 800.03Receivable on subscriptions 4 033.07Interest receivable on securities 259 234.03Interest receivable on liquid assets 398.41Unrealized gain (loss) on financial futures (Note 1) 47 640.50Unrealized gain (loss) on forward foreign exchange contracts (Note 1) 29 005.59Total Assets 71 164 346.53
LiabilitiesInterest payable on bank overdraft -23.74Payable on redemptions -634 525.45Provisions for flat fee (Note 2) -35 121.68Provisions for taxe d’abonnement (Note 3) -6 236.85Total provisions -41 358.53Total Liabilities -675 907.72
Net assets at the end of the financial year 70 488 438.81
Statement of Operations CHFIncome 1.10.2012-30.9.2013Interest on liquid assets 11 025.40Interest on securities 453 966.79Dividends (Note 1) 52 817.69Income on securities lending (Note 16) 3 263.91Total income 521 073.79
ExpensesFlat fee (Note 2) -951 805.96Taxe d’abonnement (Note 3) -27 817.90Cost on securities lending (Note 16) -1 273.71Interest on cash liquidity and bank overdraft -15 719.49Total expenses -996 617.06
Net income (loss) on investments -475 543.27
Realized gain (loss) (Note 1)Realized gain (loss) on market-priced securities without options 5 985.76Realized gain (loss) on options 3 694 394.91Realized gain (loss) on financial futures -402 635.92Realized gain (loss) on forward foreign exchange contracts -148 684.57Realized result on subscriptions/redemptions (Note 4) 46 238.87Total realized gain (loss) on investments 3 195 299.05Realized gain (loss) on foreign exchange -36 266.31Total realized gain (loss) 3 159 032.74
Net realized gain (loss) of the financial year 2 683 489.47
Changes in unrealized appreciation (depreciation) (Note 1)Unrealized appreciation (depreciation) on market-priced securities without options 683 419.84Unrealized appreciation (depreciation) on options 29 358.80Unrealized appreciation (depreciation) on financial futures 96 050.97Unrealized appreciation (depreciation) on forward foreign exchange contracts 52 407.62Total changes in unrealized appreciation (depreciation) 861 237.23
Net increase (decrease) in net assets as a result of operations 3 544 726.70
The notes are an integral part of the fi nancial statements. 27
UBS (Lux) Key Selection SICAV – Active Defense 5 (CHF)Annual Report as of 30 September 2013
Statement of Changes in Net Assets CHF 1.10.2012-30.9.2013Net assets at the beginning of the financial year 90 182 248.52Subscriptions 604 519.35Redemptions -23 843 055.76Total net subscriptions (redemptions) -23 238 536.41Net income (loss) on investments -475 543.27Total realized gain (loss) 3 159 032.74Total changes in unrealized appreciation (depreciation) 861 237.23Net increase (decrease) in net assets as a result of operations 3 544 726.70Net assets at the end of the financial year 70 488 438.81
Changes in the Number of Shares outstanding
1.10.2012-30.9.2013Class P-accNumber of shares outstanding at the beginning of the financial year 955 687.4620Number of shares issued 6 174.6750Number of shares redeemed -246 572.4860Number of shares outstanding at the end of the financial year 715 289.6510
28 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Active Defense 5 (CHF)Annual Report as of 30 September 2013
Statement of Investments in Securities and other Net Assets as of 30 September 2013
Description Quantity/ Valuation in CHF as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1)
Transferable securities and money market instruments listed on an official stock exchange
Notes, fixed rate
CHF
CHF ELECTRICITE DE FRANCE 3.37500% 08-18.12.13 3 000 000.00 3 020 100.00 4.28CHF GENERAL ELECTRIC CAPITAL CORP 2.00000% 10-18.02.14 1 600 000.00 1 611 360.00 2.29Total CHF 4 631 460.00 6.57
Cash at banks, deposits on demand and deposit accounts and other liquid assets 19 674 600.69 27.91Other assets and liabilities -412 242.21 -0.58
Total net assets 70 488 438.81 100.00
Description Quantity/ Valuation in CHF as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1)
30 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Active Defense 5 (EUR)Annual Report as of 30 September 2013
Three-year comparison
ISIN 30.9.2013 30.9.2012 30.9.2011Net assets in EUR 17 104 794.19 23 970 162.41 40 668 765.50Class K-1-acc1 LU0456709376Shares outstanding - - 1.2000Net asset value per share in EUR - - 2 905 076.13Issue and redemption price per share in EUR2 - - 2 905 076.13Class P-acc LU0353515827Shares outstanding 165 324.7730 244 029.1730 373 818.8180Net asset value per share in EUR 103.46 98.23 99.47Issue and redemption price per share in EUR2 103.46 97.94 99.47
1 The share class K-1-acc was in circulation until 14.9.20122 See note 1
Historical performance is no indicator of current or future performance.The performance data does not take account of any commissions and costs charged when subscribing and redeeming shares.The performance data were not audited.
1 The subfund does not have a benchmark, which means that the performance of the subfund cannot be compared with a benchmark.
UBS (Lux) Key Selection SICAV – Active Defense 5 (EUR)
The notes are an integral part of the fi nancial statements. 31
UBS (Lux) Key Selection SICAV – Active Defense 5 (EUR)Annual Report as of 30 September 2013
Report of the Portfolio Manager
In the reporting year from 1 October 2012 to 30 September 2013, the last three months of 2012 were generally benign towards risky assets. The market environment changed in 2013 with performance across emerging markets equity and debt starting to deteriorate and culminating in a May sell-off. At the same time, global government bonds suffered amidst the prospect of better global growth and higher interest rate expectations. High yield bonds were positive over the reporting year but could not recover to the April peaks until the end of Q3. Developed equities presented the most rewarding opportunities despite participating strongly in the May sell-off. Some of the European equities outpaced the US markets. Tail risks like the Middle East conflict, the Eurozone crisis, monetary policy errors, GDP growth disappointments and the China hard landing left markets largely untroubled in the period ending September 2013.
The subfund posted a positive performance in the reporting year. Having had an active low duration allocation for most of 2013 helped to limit the impact of Fed tapering speculations. The focus was on capturing upside in the equity markets and in high yield. Nearing critical events like the year-end fiscal cliff in the US, the critical Federal Reserve announcement, or political elections in Europe, the approach was to cap the downside by using equity options. The equity allocation contributed the most significantly to the positive performance. The subfund follows a risk-focused investment process. The risk budget is invested in asset classes such as equities, interest and currencies to build up a broadly diversified investment in financial markets based on investment opportunities. At the end of the hedging period, we aim to maintain a floor value. The subfund does not have a benchmark.
Structure of the Securities Portfolio
Geographical Breakdown as a % of net assetsGermany 43.68Luxembourg 13.61Netherlands 11.82Denmark 5.92Supranationals 4.74Sweden 4.41Ireland 3.52Austria 2.63United States 2.62Italy 2.38Canada 2.36United Kingdom 0.12Total 97.81
Economic Breakdown as a % of net assetsCantons, federal states 27.75Banks & credit institutions 24.20Mortgage & funding institutions 10.31Finance & holding companies 10.07Investment funds & pension foundations 10.06Countries & central governments 5.92Supranational organisations 4.74Computer hardware & network equipment providers 2.39Petroleum 2.37Total 97.81
32 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Active Defense 5 (EUR)Annual Report as of 30 September 2013
Statement of Net Assets EURAssets 30.9.2013Investments in securities, cost 16 921 104.21Investments in securities, unrealized appreciation (depreciation) -190 214.16Total investments in securities (Note 1) 16 730 890.05Cash at banks, deposits on demand and deposit accounts 93 974.22Other liquid assets (Margins) 48 983.86Receivable on subscriptions 14 999.99Interest receivable on securities 353 555.91Interest receivable on liquid assets 9.88Unrealized gain (loss) on financial futures (Note 1) 6 871.44Unrealized gain (loss) on forward foreign exchange contracts (Note 1) -2 419.79Total Assets 17 246 865.56
LiabilitiesBank overdraft -96 623.16Interest payable on bank overdraft -18.71Payable on redemptions -35 010.31Provisions for flat fee (Note 2) -8 496.18Provisions for taxe d’abonnement (Note 3) -1 923.01Total provisions -10 419.19Total Liabilities -142 071.37
Net assets at the end of the financial year 17 104 794.19
Statement of Operations EURIncome 1.10.2012-30.9.2013Interest on liquid assets 1 017.69Interest on securities 566 119.94Income on securities lending (Note 16) 5 072.13Other income 213.01Total income 572 422.77
ExpensesFlat fee (Note 2) -243 084.68Taxe d’abonnement (Note 3) -8 766.13Cost on securities lending (Note 16) -2 240.00Interest on cash liquidity and bank overdraft -216.66Total expenses -254 307.47
Net income (loss) on investments 318 115.30
Realized gain (loss) (Note 1)Realized gain (loss) on market-priced securities without options -507 655.86Realized gain (loss) on options 1 011 265.63Realized gain (loss) on financial futures -59 711.46Realized gain (loss) on forward foreign exchange contracts 18 691.48Realized result on subscriptions/redemptions (Note 4) 22 067.55Total realized gain (loss) on investments 484 657.34Realized gain (loss) on foreign exchange -24 484.41Total realized gain (loss) 460 172.93
Net realized gain (loss) of the financial year 778 288.23
Changes in unrealized appreciation (depreciation) (Note 1)Unrealized appreciation (depreciation) on market-priced securities without options 270 817.59Unrealized appreciation (depreciation) on options 7 253.75Unrealized appreciation (depreciation) on financial futures 19 741.44Unrealized appreciation (depreciation) on forward foreign exchange contracts 5 477.69Total changes in unrealized appreciation (depreciation) 303 290.47
Net increase (decrease) in net assets as a result of operations 1 081 578.70
The notes are an integral part of the fi nancial statements. 33
UBS (Lux) Key Selection SICAV – Active Defense 5 (EUR)Annual Report as of 30 September 2013
Statement of Changes in Net Assets EUR 1.10.2012-30.9.2013Net assets at the beginning of the financial year 23 970 162.41Subscriptions 652 408.79Redemptions -8 599 355.71Total net subscriptions (redemptions) -7 946 946.92Net income (loss) on investments 318 115.30Total realized gain (loss) 460 172.93Total changes in unrealized appreciation (depreciation) 303 290.47Net increase (decrease) in net assets as a result of operations 1 081 578.70Net assets at the end of the financial year 17 104 794.19
Changes in the Number of Shares outstanding
1.10.2012-30.9.2013Class P-accNumber of shares outstanding at the beginning of the financial year 244 029.1730Number of shares issued 6 422.4140Number of shares redeemed -85 126.8140Number of shares outstanding at the end of the financial year 165 324.7730
34 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Active Defense 5 (EUR)Annual Report as of 30 September 2013
Statement of Investments in Securities and other Net Assets as of 30 September 2013
Description Quantity/ Valuation in EUR as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1)
Transferable securities and money market instruments listed on an official stock exchange
Medium term notes, fixed rate
EUR
EUR AUTOBAHNEN- & SCHNELLSTRASSENFINANZ AG 4.12500% 03-21.10.13 450 000.00 450 810.00 2.63EUR BANK NEDERLANDSE GEMEENTEN NV 3.75000% 06-16.12.13 700 000.00 705 180.00 4.12EUR BMW FINANCE NV 4.25000% 07-22.01.14 400 000.00 404 832.00 2.37EUR DENMARK, KINGDOM OF 3.12500% 09-17.03.14 1 000 000.00 1 013 290.00 5.92EUR ENI SPA 5.87500% 08-20.01.14 400 000.00 406 424.00 2.38EUR GE CAPITAL EUROPEAN FUNDING 4.62500% 03-29.10.13 600 000.00 601 878.00 3.52EUR INTERNATIONAL BUSINESS MACHINES CORP 6.62500% 08-30.01.14 400 000.00 408 168.00 2.39EUR LANDESKREDITBANK B-WUERTT FOERDBK 3.25000% 09-29.01.14 800 000.00 808 120.00 4.72EUR NORD/LB G-MTN SA 3.50000% 09-18.02.14 600 000.00 607 362.00 3.55EUR NORDIC INVESTMENT BANK 3.00000% 09-08.04.14 800 000.00 810 736.00 4.74EUR RABOBANK NEDERLAND NV 4.37500% 09-22.01.14 900 000.00 911 259.00 5.33EUR SWEDBANK MORTGAGE AB 2.00000% 10-31.01.14 750 000.00 754 267.50 4.41EUR VOLKSWAGEN FINANCIAL SERVICES AG 6.87500% 09-15.01.14 200 000.00 203 726.00 1.19Total EUR 8 086 052.50 47.27
Total Medium term notes, fixed rate 8 086 052.50 47.27
Bonds, fixed rate
EUR
EUR BADEN-WUERTTEMBERG, STATE OF 3.25000% 09-22.01.14 1 000 000.00 1 009 130.00 5.90EUR BAVARIA, STATE OF 3.12500% 06-16.01.14 800 000.00 806 840.00 4.72EUR BUNDESLAENDER BUNDESREPUBLI DEUTSCHLAND 4.12500% 07-24.01.14 800 000.00 809 464.00 4.73EUR DUESSELDORFER HYPOTHEKENBANK AG 1.87500% 10-13.12.13 400 000.00 401 280.00 2.34EUR HESSEN, STATE OF 2.25000% 10-29.01.14 900 000.00 905 895.00 5.29EUR KREDITANSTALT FUER WIEDERAUFBAU 3.12500% 09-25.02.14 500 000.00 506 000.00 2.96EUR LANDESBANK BADEN-WUERTTEMBERG-REG-S 1.75000% 11-17.01.14 800 000.00 803 640.00 4.70EUR NIEDERSACHSEN, STATE OF 4.12500% 04-20.02.14 800 000.00 811 840.00 4.75EUR NRW BANK 3.37500% 09-18.03.14 400 000.00 405 760.00 2.37EUR ONTARIO, PROVINCE OF 4.25000% 08-11.12.13 400 000.00 403 068.00 2.36Total EUR 6 862 917.00 40.12
Total Bonds, fixed rate 6 862 917.00 40.12
Total Transferable securities and money market instruments listed on an official stock exchange 14 948 969.50 87.39
UCITS/Other UCIs in accordance with Article 41 (1) e) of the Luxembourg law of 17 December 2010
Investment certificates, open end
Luxembourg
EUR DB X-TRACKERS II ITRAXX XOVER 5-YEAR TOTAL RET INDEX ETF-1C 3 800.00 571 900.00 3.34EUR UBS (LUX) EQUITY FD - EURO COUNTRIES OPTIMIZER (EUR) U-X-ACC 46.00 585 697.76 3.43EUR UBS (LUX) EQUITY FUND - EURO COUNTRIES NAVIGATOR (EUR) U-X-ACC 55.00 563 152.70 3.29Total Luxembourg 1 720 750.46 10.06
Total Investment certificates, open end 1 720 750.46 10.06
Total UCITS/Other UCIs in accordance with Article 41 (1) e) of the Luxembourg law of 17 December 2010 1 720 750.46 10.06
Derivative instruments listed on an official stock exchange
Total Options on indices, classic-styled 61 170.09 0.36
Total Derivative instruments listed on an official stock exchange 61 170.09 0.36
Total investments in securities 16 730 890.05 97.81
The notes are an integral part of the fi nancial statements. 35
UBS (Lux) Key Selection SICAV – Active Defense 5 (EUR)Annual Report as of 30 September 2013
Derivative instruments
Derivative instruments listed on an official stock exchange
Financial Futures on bonds
USD US 10YR TREASURY NOTE FUTURE 19.12.13 9.00 6 025.41 0.03Total Financial Futures on bonds 6 025.41 0.03
Financial Futures on Indices
JPY TOPIX INDEX FUTURE 12.12.13 6.00 9 486.03 0.06EUR EURO STOXX 50 INDEX FUTURE 20.12.13 18.00 -8 640.00 -0.05Total Financial Futures on Indices 846.03 0.01
Total Derivative instruments listed on an official stock exchange 6 871.44 0.04
Cash at banks, deposits on demand and deposit accounts and other liquid assets 142 958.08 0.83Bank overdraft and other short-term liabilities -96 623.16 -0.56Other assets and liabilities 323 117.57 1.89
Total net assets 17 104 794.19 100.00
Description Quantity/ Valuation in EUR as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1)
36 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Active Defense 5 (USD)Annual Report as of 30 September 2013
Three-year comparison
ISIN 30.9.2013 30.9.2012 30.9.2011Net assets in USD 20 556 655.06 26 992 532.54 33 304 532.85Class P-acc LU0421758383Shares outstanding 202 779.4730 282 306.6020 342 475.5060Net asset value per share in USD 101.37 95.61 97.25Issue and redemption price per share in USD1 101.07 95.61 97.25
Historical performance is no indicator of current or future performance.The performance data does not take account of any commissions and costs charged when subscribing and redeeming shares.The performance data were not audited.
1 The subfund does not have a benchmark, which means that the performance of the subfund cannot be compared with a benchmark.
UBS (Lux) Key Selection SICAV – Active Defense 5 (USD)
The notes are an integral part of the fi nancial statements. 37
UBS (Lux) Key Selection SICAV – Active Defense 5 (USD)Annual Report as of 30 September 2013
Report of the Portfolio Manager
In the reporting year from 1 October 2012 to 30 September 2013, the last three months of 2012 were generally benign towards risky assets. The market environment changed in 2013 with performance across emerging markets equity and debt starting to deteriorate and culminating in a May sell-off. At the same time, global government bonds suffered amidst the prospect of better global growth and higher interest rate expectations. High yield bonds were positive over the reporting year but could not recover to the April peaks until the end of Q3. Developed equities presented the most rewarding opportunities despite participating strongly in the May sell-off. Some of the European equities outpaced the US markets. Tail risks like the Middle East conflict, the Eurozone crisis, monetary policy errors, GDP growth disappointments and the China hard landing left markets largely untroubled in the reporting year.
The subfund posted a positive performance in the reporting year. Having had an active low duration allocation for most of 2013 helped to limit the impact of Fed tapering speculations. The focus was on capturing upside in the equity markets and in high yield. Nearing critical events like the year-end fiscal cliff in the US, the critical Federal Reserve announcement, or political elections in Europe, the approach was to cap the downside by using equity options. The equity allocation contributed the most significantly to the positive performance. The subfund follows a risk-focused investment process. The risk budget is invested in asset classes such as equities, interest and currencies to build up a broadly diversified investment in financial markets based on investment opportunities. At the end of the hedging period, we aim to maintain a floor value. The subfund does not have a benchmark.
Structure of the Securities Portfolio
Geographical Breakdown as a % of net assetsSupranationals 18.72Germany 18.60Canada 12.75Luxembourg 10.11United States 9.43Netherlands 8.80United Kingdom 4.51Austria 4.39France 2.94Switzerland 0.09Total 90.34
Economic Breakdown as a % of net assetsBanks & credit institutions 38.64Supranational organisations 18.72Finance & holding companies 18.48Investment funds & pension foundations 10.11Cantons, federal states 4.39Total 90.34
38 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Active Defense 5 (USD)Annual Report as of 30 September 2013
Statement of Net Assets USDAssets 30.9.2013Investments in securities, cost 18 616 865.37Investments in securities, unrealized appreciation (depreciation) -46 391.77Total investments in securities (Note 1) 18 570 473.60Cash at banks, deposits on demand and deposit accounts 1 813 745.91Other liquid assets (Margins) 37 472.07Interest receivable on securities 171 375.64Interest receivable on liquid assets 131.86Unrealized gain (loss) on financial futures (Note 1) 12 943.53Unrealized gain (loss) on forward foreign exchange contracts (Note 1) -30 881.72Total Assets 20 575 260.89
LiabilitiesPayable on redemptions -6 000.07Provisions for flat fee (Note 2) -10 295.98Provisions for taxe d’abonnement (Note 3) -2 309.78Total provisions -12 605.76Total Liabilities -18 605.83
Net assets at the end of the financial year 20 556 655.06
Statement of Operations USDIncome 1.10.2012-30.9.2013Interest on liquid assets 5 548.47Interest on securities 297 006.41Income on securities lending (Note 16) 7 140.47Total income 309 695.35
ExpensesFlat fee (Note 2) -291 920.37Taxe d’abonnement (Note 3) -9 843.87Cost on securities lending (Note 16) -2 962.24Interest on cash liquidity and bank overdraft -698.21Total expenses -305 424.69
Net income (loss) on investments 4 270.66
Realized gain (loss) (Note 1)Realized gain (loss) on market-priced securities without options -46 533.59Realized gain (loss) on options 1 383 640.42Realized gain (loss) on financial futures -67 817.52Realized gain (loss) on forward foreign exchange contracts -13 350.57Realized result on subscriptions/redemptions (Note 4) 24 569.53Total realized gain (loss) on investments 1 280 508.27Realized gain (loss) on foreign exchange -93 521.84Total realized gain (loss) 1 186 986.43
Net realized gain (loss) of the financial year 1 191 257.09
Changes in unrealized appreciation (depreciation) (Note 1)Unrealized appreciation (depreciation) on market-priced securities without options 291 288.42Unrealized appreciation (depreciation) on options 18 673.02Unrealized appreciation (depreciation) on financial futures 27 661.09Unrealized appreciation (depreciation) on forward foreign exchange contracts -52 559.24Total changes in unrealized appreciation (depreciation) 285 063.29
Net increase (decrease) in net assets as a result of operations 1 476 320.38
The notes are an integral part of the fi nancial statements. 39
UBS (Lux) Key Selection SICAV – Active Defense 5 (USD)Annual Report as of 30 September 2013
Statement of Changes in Net Assets USD 1.10.2012-30.9.2013Net assets at the beginning of the financial year 26 992 532.54Subscriptions 521 315.19Redemptions -8 433 513.05Total net subscriptions (redemptions) -7 912 197.86Net income (loss) on investments 4 270.66Total realized gain (loss) 1 186 986.43Total changes in unrealized appreciation (depreciation) 285 063.29Net increase (decrease) in net assets as a result of operations 1 476 320.38Net assets at the end of the financial year 20 556 655.06
Changes in the Number of Shares outstanding
1.10.2012-30.9.2013Class P-accNumber of shares outstanding at the beginning of the financial year 282 306.6020Number of shares issued 5 263.0700Number of shares redeemed -84 790.1990Number of shares outstanding at the end of the financial year 202 779.4730
40 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Active Defense 5 (USD)Annual Report as of 30 September 2013
Statement of Investments in Securities and other Net Assets as of 30 September 2013
Description Quantity/ Valuation in USD as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1)
Transferable securities and money market instruments listed on an official stock exchange
Notes, fixed rate
USD
USD BANK NEDERLANDSE GEMEENTEN NV-REG-S 1.50000% 11-28.03.14 800 000.00 804 816.00 3.92USD EXPORT DEVELOPMENT CANADA 3.12500% 09-24.04.14 900 000.00 914 589.00 4.45USD GENERAL ELECTRIC CAPITAL CORP 2.10000% 11-07.01.14 700 000.00 703 288.60 3.42USD INTER-AMERICAN DEVELOPMENT BANK 3.00000% 09-22.04.14 900 000.00 913 880.70 4.45USD NOVARTIS CAPITAL CORP 4.12500% 09-10.02.14 400 000.00 405 240.00 1.97USD NRW.BANK-REG-S 1.62500% 11-17.01.14 900 000.00 903 402.00 4.39USD ONTARIO, PROVINCE OF 1.37500% 11-27.01.14 900 000.00 903 321.00 4.40Total USD 5 548 537.30 27.00
Total Notes, fixed rate 5 548 537.30 27.00
Medium term notes, fixed rate
USD
USD ASIAN DEVELOPMENT BANK 2.75000% 09-21.05.14 900 000.00 914 373.00 4.45USD COUNCIL OF EUROPE DEVELOPMENT BANK 5.00000% 07-29.01.14 1 000 000.00 1 015 450.00 4.94USD LANDESKREDITBANK B-WUERTT FOERDERBANK 1.75000% 11-18.02.14 900 000.00 903 699.00 4.40USD LANDWIRTSCHAFTLICHE RENTENBANK 4.87500% 07-10.01.14 1 000 000.00 1 012 580.00 4.93USD NESTLE HOLDINGS INC 2.12500% 10-12.03.14 800 000.00 806 416.00 3.92USD RABOBANK NEDERLAND NV 2.50000% 10-12.12.13 1 000 000.00 1 003 720.00 4.88USD ROYAL BANK OF CANADA 1.12500% 10-15.01.14 800 000.00 802 196.80 3.90Total USD 6 458 434.80 31.42
Total Medium term notes, fixed rate 6 458 434.80 31.42
Total Transferable securities and money market instruments listed on an official stock exchange 16 425 518.40 79.91
UCITS/Other UCIs in accordance with Article 41 (1) e) of the Luxembourg law of 17 December 2010
Investment certificates, open end
Luxembourg
EUR DB X-TRACKERS II ITRAXX XOVER 5-YEAR TOTAL RET INDEX ETF-1C 3 400.00 692 662.70 3.37EUR UBS (LUX) EQUITY FD - EURO COUNTRIES OPTIMIZER (EUR) U-X-ACC 41.00 706 652.62 3.44EUR UBS (LUX) EQUITY FUND - EURO COUNTRIES NAVIGATOR (EUR) U-X-ACC 49.00 679 150.38 3.30Total Luxembourg 2 078 465.70 10.11
Total Investment certificates, open end 2 078 465.70 10.11
Total UCITS/Other UCIs in accordance with Article 41 (1) e) of the Luxembourg law of 17 December 2010 2 078 465.70 10.11
Derivative instruments listed on an official stock exchange
Cash at banks, deposits on demand and deposit accounts and other liquid assets 1 851 217.98 9.01Other assets and liabilities 152 901.67 0.74
Total net assets 20 556 655.06 100.00
Description Quantity/ Valuation in USD as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1)
42 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – All-Rounder (EUR)Annual Report as of 30 September 2013
UBS (Lux) Key Selection SICAV – All-Rounder (EUR)
Most important figures
ISIN 30.9.2013Net assets in EUR 4 094 840.00Class N-acc1 LU0853029907Shares outstanding 7 534.0820Net asset value per share in EUR 98.90Issue and redemption price per share in EUR2 98.90Class Q-acc3 LU0853026986Shares outstanding 20 621.5420Net asset value per share in EUR 100.11Issue and redemption price per share in EUR2 100.11Class U-X-acc4 LU0853022563Shares outstanding 125.0000Net asset value per share in EUR 10 281.72Issue and redemption price per share in EUR2 10 281.72
Historical performance is no indicator of current or future performance.TheThe performance data does not take account of any commissions and costs charged when subscribing and redeeming shares.The performance data were not audited.
1 The subfund does not have a benchmark, which means that the performance of the subfund cannot be compared with a benchmark.
Report of the Portfolio Manager
In the reporting year from 1 October 2012 to 30 September 2013, the last three months of 2012 were generally benign towards risky assets. The market environment changed in 2013 with performance across emerging markets equity and debt starting to deteriorate and culminating in a May sell-off. At the same time, global government bonds suffered amidst the prospect of better global growth and higher interest rate expectations. High yield bonds were positive over the reporting year but could not recover to the April peaks until the end of Q3. Developed equities presented the most rewarding opportunities despite participating strongly in the May sell-off. Some of the European equities outpaced the US markets. Tail risks like the Middle East conflict, the Eurozone crisis, monetary policy errors, GDP growth disappointments and the China hard landing left markets largely untroubled in the reporting year ending September 2013.
The subfund’s performance was positive in the reporting year. Whereas the upswing as well as the boom portfolio showed a positive performance over the full year, the recession portfolio was flat and the downswing portfolio contributed negatively based on the increasing yields, especially in the months of May and June 2013.
Structure of the Securities Portfolio
Geographical Breakdown as a % of net assetsLuxembourg 99.81Total 99.81
Economic Breakdown as a % of net assetsInvestment funds & pension foundations 99.81Total 99.81
The notes are an integral part of the fi nancial statements. 43
UBS (Lux) Key Selection SICAV – All-Rounder (EUR)Annual Report as of 30 September 2013
Statement of Net Assets EURAssets 30.9.2013Investments in securities, cost 4 049 142.76Investments in securities, unrealized appreciation (depreciation) 37 821.68Total investments in securities (Note 1) 4 086 964.44Cash at banks, deposits on demand and deposit accounts 19 107.73Receivable on securities sales (Note 1) 20 217.40Total Assets 4 126 289.57
LiabilitiesPayable on redemptions -30 165.46Provisions for flat fee (Note 2) -1 283.38Provisions for taxe d’abonnement (Note 3) -0.73Total provisions -1 284.11Total Liabilities -31 449.57
Net assets at the end of the period 4 094 840.00
Statement of Operations EURIncome 19.11.2012-30.9.2013Total income 0.00
Realized gain (loss) (Note 1)Realized gain (loss) on market-priced securities without options -330.24Total realized gain (loss) on investments -330.24Total realized gain (loss) -330.24
Net realized gain (loss) of the period -10 240.12
Changes in unrealized appreciation (depreciation) (Note 1)Unrealized appreciation (depreciation) on market-priced securities without options 37 821.68Total changes in unrealized appreciation (depreciation) 37 821.68
Net increase (decrease) in net assets as a result of operations 27 581.56
Statement of Changes in Net Assets EUR 19.11.2012-30.9.2013Net assets at the beginning of the period 0.00Subscriptions 4 161 308.26Redemptions -94 049.82Total net subscriptions (redemptions) 4 067 258.44Net income (loss) on investments -9 909.88Total realized gain (loss) -330.24Total changes in unrealized appreciation (depreciation) 37 821.68Net increase (decrease) in net assets as a result of operations 27 581.56Net assets at the end of the period 4 094 840.00
Changes in the Number of Shares outstanding
19.11.2012-30.9.2013Class N-accNumber of shares outstanding at the beginning of the period 0.0000Number of shares issued 7 888.0590Number of shares redeemed -353.9770Number of shares outstanding at the end of the period 7 534.0820Class Q-accNumber of shares outstanding at the beginning of the period 0.0000Number of shares issued 21 223.1730Number of shares redeemed -601.6310Number of shares outstanding at the end of the period 20 621.5420Class U-X-accNumber of shares outstanding at the beginning of the period 0.0000Number of shares issued 125.0000Number of shares redeemed 0.0000Number of shares outstanding at the end of the period 125.0000
44 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – All-Rounder (EUR)Annual Report as of 30 September 2013
Statement of Investments in Securities and other Net Assets as of 30 September 2013
Description Quantity/ Valuation in EUR as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1)
UCITS/Other UCIs in accordance with Article 41 (1) e) of the Luxembourg law of 17 December 2010
Total Investment certificates, open end 4 086 964.44 99.81
Total UCITS/Other UCIs in accordance with Article 41 (1) e) of the Luxembourg law of 17 December 2010 4 086 964.44 99.81
Total investments in securities 4 086 964.44 99.81
Cash at banks, deposits on demand and deposit accounts and other liquid assets 19 107.73 0.46Other assets and liabilities -11 232.17 -0.27
Total net assets 4 094 840.00 100.00
The notes are an integral part of the fi nancial statements. 45
UBS (Lux) Key Selection SICAV – Asian Allocation (USD)Annual Report as of 30 September 2013
Most important figures
ISIN 26.11.2012 30.9.2012 30.9.2011Net assets in USD 8 000 427.94 10 245 515.69 21 442 346.33Class I-X-acc1 LU0421761411Shares outstanding - - 160 000.0000Net asset value per share in USD - - 101.02Issue and redemption price per share in USD2 - - 101.02Class P-acc LU0420139866Shares outstanding 61 974.4400 79 789.3610 46 558.4750Net asset value per share in USD 129.09 128.41 113.38Issue and redemption price per share in USD2 129.09 128.41 113.38
1 The share class I-X-acc was in circulation until 30.11.20112 See note 1
UBS (Lux) Key Selection SICAV – Asian Allocation (USD)
Structure of the Securities Portfolio
As the subfund UBS (Lux) Key Selection SICAV – Asian Allocation (USD) was merged into UBS (Lux) Key Selection SICAV – Emerging Markets Allocation (USD) as at 26 November 2012, there is no securities portfolio or securities portfolio structure at the end of the reporting period.
46 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Asian Allocation (USD)Annual Report as of 30 September 2013
Statement of Operations USDIncome 1.10.2012-30.9.2013Interest on liquid assets 1.40Income on securities lending (Note 16) 175.78Other income 39 731.15Total income 39 908.33
ExpensesFlat fee (Note 2) -29 754.04Taxe d’abonnement (Note 3) -354.65Interest on cash liquidity and bank overdraft -1.87Total expenses -30 110.56
Net income (loss) on investments 9 797.77
Realized gain (loss) (Note 1)Realized gain (loss) on market-priced securities without options 629 017.08Realized gain (loss) on financial futures 23 038.26Realized gain (loss) on options, futures-styled -66 929.74Realized gain (loss) on forward foreign exchange contracts 67 133.21Realized result on subscriptions/redemptions (Note 4) 5 626.78Total realized gain (loss) on investments 657 885.59Realized gain (loss) on foreign exchange 3 573.78Total realized gain (loss) 661 459.37
Net realized gain (loss) of the financial year 671 257.14
Changes in unrealized appreciation (depreciation) (Note 1)Unrealized appreciation (depreciation) on market-priced securities without options -598 107.90Unrealized appreciation (depreciation) on financial futures -35 811.46Unrealized appreciation (depreciation) on options, futures-styled 53 236.35Unrealized appreciation (depreciation) on forward foreign exchange contracts -50 525.81Total changes in unrealized appreciation (depreciation) -631 208.82
Net increase (decrease) in net assets as a result of operations 40 048.32
Statement of Changes in Net Assets USD 1.10.2012-30.9.2013Net assets at the beginning of the financial year 10 245 515.69Subscriptions 89 927.79Redemptions -10 375 491.80Total net subscriptions (redemptions) -10 285 564.01Net income (loss) on investments 9 797.77Total realized gain (loss) 661 459.37Total changes in unrealized appreciation (depreciation) -631 208.82Net increase (decrease) in net assets as a result of operations 40 048.32Net assets at the end of the financial year -0.00
Changes in the Number of Shares outstanding
1.10.2012-30.9.2013Class P-accNumber of shares outstanding at the beginning of the financial year 79 789.3610Number of shares issued 699.0990Number of shares redeemed -80 488.4600Number of shares outstanding at the end of the financial year 0.0000
The notes are an integral part of the fi nancial statements. 47
UBS (Lux) Key Selection SICAV – Asian Equities (USD)Annual Report as of 30 September 2013
Three-year comparison
ISIN 30.9.2013 30.9.2012 30.9.2011Net assets in USD 73 046 770.62 115 263 087.89 107 127 140.39Class (GBP) P-dist LU0246169758Shares outstanding 24 875.6840 31 145.3800 45 252.7030Net asset value per share in GBP 82.88 84.01 73.22Issue and redemption price per share in GBP1 82.88 84.01 73.22Class I-A1-acc2 LU0794920784Shares outstanding - 169 249.8370 -Net asset value per share in USD - 108.92 -Issue and redemption price per share in USD1 - 108.92 -Class P-acc LU0235996351Shares outstanding 506 350.6080 669 001.3810 873 843.3380Net asset value per share in USD 134.92 136.85 114.70Issue and redemption price per share in USD1 134.92 136.85 114.70Class U-X-acc LU0425186540Shares outstanding 135.8980 100.7150 205.5850Net asset value per share in USD 10 298.82 10 230.49 8 399.09Issue and redemption price per share in USD1 10 298.82 10 230.49 8 399.09
1 See note 12 For the period from 11.7.2012 to 24.9.2013 the share class I-A1-acc was in circulation
Benchmark:MSCI AC Asia ex Japan (r) GBP 5.0% 15.4% -13.6%MSCI AC Asia ex Japan (r) USD 5.3% 19.6% -14.6%
Historical performance is no indicator of current or future performance.The performance data does not take account of any commissions and costs charged when subscribing and redeeming shares.The performance data were not audited.
UBS (Lux) Key Selection SICAV – Asian Equities (USD)
48 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Asian Equities (USD)Annual Report as of 30 September 2013
Report of the Portfolio Manager
In the reporting year from 1 October 2012 to 30 September 2013, Asia ex Japan markets ended positively despite the macro headwinds and volatility throughout the year. 2H 2013 saw a sell-off in most Asian markets stoked by risks of an imminent tapering of Quantitative Easing (QE). The reversal in capital flows and the slowdown in credit expansion led to slower growth momentum. India and Indonesia underperformed due to current account and currency vulnerabilities. The Cyclical Materials and Energy sectors came under pressure while IT and Consumer Discretionary outperformed.
The subfund underperformed its benchmark, the MSCI AC Asia ex Japan (r), in the reporting year. Stock selection (SS) in Thailand added value but was offset by negative SS in Korea. Overweights (OW) in India and Indonesia further detracted value. At a sector level, SS in Industrials and Consumer Discretionary contributed most negatively. Key contributors were OWs in AIA and Tencent, while key detractors were OWs in Samsung Engineering and Jardine C&C.
Structure of the Securities Portfolio
Geographical Breakdown as a % of net assetsSouth Korea 21.94Hong Kong 21.64China 12.69India 8.93Singapore 7.23Thailand 6.52Taiwan 6.49Indonesia 3.98Luxembourg 3.56Philippines 2.84Macao 1.74Total 97.56
Economic Breakdown as a % of net assetsElectronics & semiconductors 13.95Banks & credit institutions 11.84Finance & holding companies 8.17Vehicles 7.81Insurance 7.54Telecommunications 6.73Internet, software & IT services 6.63Pharmaceuticals, cosmetics & medical products 5.95Real Estate 5.08Chemicals 4.55Investment funds & pension foundations 3.56Petroleum 3.54Electrical devices & components 2.33Building industry & materials 2.26Tobacco & alcohol 2.25Lodging, catering & leisure 1.74Textiles, garments & leather goods 1.57Mechanical engineering & industrial equipment 0.85Miscellaneous trading companies 0.71Retail trade, department stores 0.50Total 97.56
The notes are an integral part of the fi nancial statements. 49
UBS (Lux) Key Selection SICAV – Asian Equities (USD)Annual Report as of 30 September 2013
Statement of Net Assets USDAssets 30.9.2013Investments in securities, cost 59 673 677.58Investments in securities, unrealized appreciation (depreciation) 11 588 675.69Total investments in securities (Note 1) 71 262 353.27Cash at banks, deposits on demand and deposit accounts 1 928 578.26Interest receivable on liquid assets 1.49Receivable on dividends 120 028.09Total Assets 73 310 961.11
LiabilitiesPayable on redemptions -190 117.27Provisions for flat fee (Note 2) -65 402.60Provisions for taxe d’abonnement (Note 3) -8 670.62Total provisions -74 073.22Total Liabilities -264 190.49
Net assets at the end of the financial year 73 046 770.62
Statement of Operations USDIncome 1.10.2012-30.9.2013Interest on liquid assets 31.47Dividends (Note 1) 1 992 611.17Income on securities lending (Note 16) 20 422.55Total income 2 013 065.19
ExpensesFlat fee (Note 2) -1 952 831.05Taxe d’abonnement (Note 3) -43 527.82Cost on securities lending (Note 16) -9 440.18Interest on cash liquidity and bank overdraft -17.56Total expenses -2 005 816.61
Net income (loss) on investments 7 248.58
Realized gain (loss) (Note 1)Realized gain (loss) on market-priced securities without options 4 744 404.26Realized gain (loss) on forward foreign exchange contracts -1 544.30Realized result on subscriptions/redemptions (Note 4) 115 116.69Total realized gain (loss) on investments 4 857 976.65Realized gain (loss) on foreign exchange -324 810.39Total realized gain (loss) 4 533 166.26
Net realized gain (loss) of the financial year 4 540 414.84
Changes in unrealized appreciation (depreciation) (Note 1)Unrealized appreciation (depreciation) on market-priced securities without options -5 065 884.74Total changes in unrealized appreciation (depreciation) -5 065 884.74
Net increase (decrease) in net assets as a result of operations -525 469.90
50 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Asian Equities (USD)Annual Report as of 30 September 2013
Statement of Changes in Net Assets USD 1.10.2012-30.9.2013Net assets at the beginning of the financial year 115 263 087.89Subscriptions 4 843 891.59Redemptions -46 520 504.30Total net subscriptions (redemptions) -41 676 612.71Dividend paid -14 234.66Net income (loss) on investments 7 248.58Total realized gain (loss) 4 533 166.26Total changes in unrealized appreciation (depreciation) -5 065 884.74Net increase (decrease) in net assets as a result of operations -525 469.90Net assets at the end of the financial year 73 046 770.62
Changes in the Number of Shares outstanding
1.10.2012-30.9.2013Class (GBP) P-distNumber of shares outstanding at the beginning of the financial year 31 145.3800Number of shares issued 1 563.8950Number of shares redeemed -7 833.5910Number of shares outstanding at the end of the financial year 24 875.6840Class I-A1-accNumber of shares outstanding at the beginning of the financial year 169 249.8370Number of shares issued 0.0000Number of shares redeemed -169 249.8370Number of shares outstanding at the end of the financial year 0.0000Class P-accNumber of shares outstanding at the beginning of the financial year 669 001.3810Number of shares issued 27 046.2190Number of shares redeemed -189 696.9920Number of shares outstanding at the end of the financial year 506 350.6080Class U-X-accNumber of shares outstanding at the beginning of the financial year 100.7150Number of shares issued 74.2410Number of shares redeemed -39.0580Number of shares outstanding at the end of the financial year 135.8980
The notes are an integral part of the fi nancial statements. 51
UBS (Lux) Key Selection SICAV – Asian Equities (USD)Annual Report as of 30 September 2013
Statement of Investments in Securities and other Net Assets as of 30 September 2013
Description Quantity/ Valuation in USD as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1)
Transferable securities and money market instruments listed on an official stock exchange
Bearer shares
China
HKD BELLE INTERNATIONA HKD0.01 791 000.00 1 148 594.35 1.57HKD CHINA CONST BK ‘H’CNY1 1 703 690.00 1 311 646.20 1.80HKD INDUSTRIAL & COM B ‘H’CNY1 3 644 345.00 2 542 544.42 3.48HKD PING AN INSURANCE ‘H’CNY1 222 000.00 1 650 456.52 2.26HKD TENCENT HLDGS LIMI HKD0.0001 49 900.00 2 617 780.87 3.58Total China 9 271 022.36 12.69
Hong Kong
HKD AIA GROUP LTD USD1.00 820 600.00 3 857 277.16 5.28HKD CHINA O/SEAS LAND HKD0.10 610 000.00 1 797 495.62 2.46HKD CHINA RES LAND HKD0.10 624 000.00 1 774 373.26 2.43HKD CNOOC LTD HKD0.02 1 272 000.00 2 588 486.54 3.55HKD HENGAN INTL HKD0.10 117 600.00 1 375 518.42 1.88HKD HUTCHISON WHAMPOA HKD0.25 91 000.00 1 090 206.85 1.49USD JARDINE MATHESON COM USD0.25(BERMUDA REG) 23 672.00 1 304 800.64 1.79HKD SINO BIOPHAMACEUTI HKD0.025 635 900.00 430 526.54 0.59HKD WHARF(HLDGS) HKD1 183 100.00 1 586 753.33 2.17Total Hong Kong 15 805 438.36 21.64
Total Transferable securities and money market instruments listed on an official stock exchange 68 660 195.27 94.00
UCITS/Other UCIs in accordance with Article 41 (1) e) of the Luxembourg law of 17 December 2010
Investment certificates, open end
Luxembourg
USD UBS (LUX) EQUITY SICAV - ASIAN SMALLER COS (USD)-U-X-ACC 200.00 2 602 158.00 3.56Total Luxembourg 2 602 158.00 3.56
Total Investment certificates, open end 2 602 158.00 3.56
Total UCITS/Other UCIs in accordance with Article 41 (1) e) of the Luxembourg law of 17 December 2010 2 602 158.00 3.56
Total investments in securities 71 262 353.27 97.56
Cash at banks, deposits on demand and deposit accounts and other liquid assets 1 928 578.26 2.64Other assets and liabilities -144 160.91 -0.20
Total net assets 73 046 770.62 100.00
Description Quantity/ Valuation in USD as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1)
The notes are an integral part of the fi nancial statements. 53
UBS (Lux) Key Selection SICAV – Commodity Strategy (USD)Annual Report as of 30 September 2013
Most important figures
ISIN 30.9.2013Net assets in USD 12 296 113.83Class U-X-acc1 LU0851683713Shares outstanding 1 353.0000Net asset value per share in USD 9 088.04Issue and redemption price per share in USD2 9 088.04
1 Initial subscription: 30.11.20122 See note 1
Performance
Currency 2012/2013Class U-X-acc1 USD -
Historical performance is no indicator of current or future performance.The performance data does not take account of any commissions and costs charged when subscribing and redeeming shares.The performance data were not audited.
1 The subfund does not have a benchmark, which means that the performance of the subfund cannot be compared with a benchmark.
54 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Commodity Strategy (USD)Annual Report as of 30 September 2013
Report of the Portfolio Manager
In the reporting period from 30 November 2012 (launch date of the subfund) to 30 September 2013, the commodity market as a whole had a challenging period, with the exception of petroleum. Two key themes played out, firstly, whilst demand was modestly positive, increased supply in agriculture, natural gas and base metals meant many markets were in surplus and thus the prices declined. Secondly, indications that Quantitative Easing (QE) would be reduced caused a strengthening of the US dollar for much of the reporting period and this was bad for most commodities, especially precious metals.
The subfund invests in a broadly diversified portfolio of commodities globally. The subfund is actively managed and does not track a specific index. The subfund declined over the reporting period as most broad commodity markets were all down. The neutral weights used by the fund manager are the Dow Jones-UBS Commodity Index and the subfund outperformed this index over the reporting period. The majority of this was achieved by tactically moving active weights of commodities. A small contribution was from investing in indices that are positioned in futures with longer maturities. The major position that helped the subfund outperform the Dow Jones-UBS Commodity Index was our underweight of grains. We did this by analyzing the probabilities of the size of the harvest, comparing this to our valuation models and realizing the likelihood of price declines. We recognized that precious metals would behave badly in an environment of the Federal Reserve looking to normalize monetary policy in the United States and thus we were underweight gold for most of the reporting period. We overweighted petroleum for the majority of the reporting period as the backwardation in the futures curve and tighter supply and demand dynamics meant the market was attractive versus other commodities. Our general preference to overweight industrial metals had a negative impact, our valuation models showed them to be cheap and economic momentum was a positive indicator, but excess supply and the US dollar strength countered this.
Structure of the Securities Portfolio
Geographical Breakdown as a % of net assetsUnited States 84.80Jersey 8.26United Kingdom 6.41Total 99.47
Economic Breakdown as a % of net assetsCountries & central governments 84.80Finance & holding companies 8.26Banks & credit institutions 6.41Total 99.47
The notes are an integral part of the fi nancial statements. 55
UBS (Lux) Key Selection SICAV – Commodity Strategy (USD)Annual Report as of 30 September 2013
Statement of Net Assets USDAssets 30.9.2013Investments in securities, cost 12 317 805.87Investments in securities, unrealized appreciation (depreciation) -86 832.81Total investments in securities (Note 1) 12 230 973.06Cash at banks, deposits on demand and deposit accounts 237 264.47Unrealized gain (loss) on swaps (Note 1) -171 816.30Total Assets 12 296 421.23
Statement of Operations USDIncome 30.11.2012-30.9.2013Interest on liquid assets 49.18Income on securities lending (Note 16) 3 653.34Total income 3 702.52
ExpensesInterest paid on swaps (Note 1) -3 336.82Taxe d’abonnement (Note 3) -1 301.94Cost on securities lending (Note 16) -1 392.38Interest on cash liquidity and bank overdraft -48.54Total expenses -6 079.68
Net income (loss) on investments -2 377.16
Realized gain (loss) (Note 1)Realized gain (loss) on market-priced securities without options 46 944.66Realized gain (loss) on yield-evaluated securities and money market instruments 16 358.65Realized gain (loss) on swaps -880 448.55Realized result on subscriptions/redemptions (Note 4) 15 698.28Total realized gain (loss) on investments -801 446.96Total realized gain (loss) -801 446.96
Net realized gain (loss) of the period -803 824.12
Changes in unrealized appreciation (depreciation) (Note 1)Unrealized appreciation (depreciation) on market-priced securities without options -90 196.62Unrealized appreciation (depreciation) on yield-evaluated securities and money market instruments 3 363.81Unrealized appreciation (depreciation) on swaps -171 816.30Total changes in unrealized appreciation (depreciation) -258 649.11
Net increase (decrease) in net assets as a result of operations -1 062 473.23
Statement of Changes in Net Assets USD 30.11.2012-30.9.2013Net assets at the beginning of the period 0.00Subscriptions 18 970 108.82Redemptions -5 611 521.76Total net subscriptions (redemptions) 13 358 587.06Net income (loss) on investments -2 377.16Total realized gain (loss) -801 446.96Total changes in unrealized appreciation (depreciation) -258 649.11Net increase (decrease) in net assets as a result of operations -1 062 473.23Net assets at the end of the period 12 296 113.83
Changes in the Number of Shares outstanding
30.11.2012-30.9.2013Class U-X-accNumber of shares outstanding at the beginning of the period 0.0000Number of shares issued 1 964.0000Number of shares redeemed -611.0000Number of shares outstanding at the end of the period 1 353.0000
56 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Commodity Strategy (USD)Annual Report as of 30 September 2013
Statement of Investments in Securities and other Net Assets as of 30 September 2013
Description Quantity/ Valuation in USD as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1)
Transferable securities and money market instruments listed on an official stock exchange
Certificates on commodities
Jersey
USD ETFS COMMODITY SECURITIES LTD/UBS WHEAT SUB INDEX SECURED 345 526.00 527 445.44 4.29USD ETFS COMMODITY/ETC DJ-UBS PLATINUM TR 09-PRP 12 538.00 487 477.44 3.97Total Jersey 1 014 922.88 8.26
United Kingdom
USD UBS AG LONDON/ETC UBS BLBG INDUSTRIAL METAL TOT RET 07-PRP 312.00 294 684.00 2.40USD UBS AG LONDON/ETC UBS BLOOMBERG CMCI NICKEL INDEX 08-PRP 603.00 247 531.50 2.01USD UBS AG LONDON/ETC UBS BLOOMBERG CMCI ZINC INDEX 08-PRP 505.00 246 440.00 2.00Total United Kingdom 788 655.50 6.41
Total Certificates on commodities 1 803 578.38 14.67
Total Transferable securities and money market instruments listed on an official stock exchange 1 803 578.38 14.67
Transferable securities and money market instruments traded on another regulated market
Treasury bills, zero coupon
USD
USD AMERICA, UNITED STATES OF TB 0.00000% 07.03.13-06.03.14 1 120 000.00 1 119 521.19 9.10USD AMERICA, UNITED STATES OF TB 0.00000% 04.04.13-03.04.14 2 150 000.00 2 148 811.94 17.48USD AMERICA, UNITED STATES OF TB 0.00000% 02.05.13-01.05.14 2 150 000.00 2 148 434.70 17.47USD AMERICA, UNITED STATES OF TB 0.00000% 30.05.13-29.05.14 2 150 000.00 2 148 156.97 17.47USD AMERICA, UNITED STATES OF TB 0.00000% 27.06.13-26.06.14 2 150 000.00 2 148 071.64 17.47USD AMERICA, UNITED STATES OF TB 0.00000% 25.07.13-24.07.14 715 000.00 714 398.24 5.81Total USD 10 427 394.68 84.80
Total Treasury bills, zero coupon 10 427 394.68 84.80
Total Transferable securities and money market instruments traded on anotherregulated market 10 427 394.68 84.80
Total investments in securities 12 230 973.06 99.47
Derivative instruments
Derivative instruments not listed on an official stock exchange and not traded on another regulated market
ISIN 30.9.2013 30.9.2012 30.9.2011Net assets in USD 254 143 671.49 153 399 419.63 166 162 926.68Class (CAD hedged) P-acc LU0263318627Shares outstanding 53 166.3450 52 099.7220 53 726.8430Net asset value per share in CAD 105.35 100.97 90.80Issue and redemption price per share in CAD1 105.35 100.74 90.71Class (CHF hedged) I-X-acc2 LU0943632256Shares outstanding 231 778.5490 - -Net asset value per share in CHF 102.22 - -Issue and redemption price per share in CHF1 102.22 - -Class (CHF hedged) P-acc3 LU0849400626Shares outstanding 5 317.8320 - -Net asset value per share in CHF 103.08 - -Issue and redemption price per share in CHF1 103.08 - -Class (EUR hedged) I-A2-acc4 LU0920342325Shares outstanding 110 175.0000 - -Net asset value per share in EUR 97.07 - -Issue and redemption price per share in EUR1 97.07 - -Class (EUR hedged) I-B-acc5 LU0945635695Shares outstanding 54 502.8690 - -Net asset value per share in EUR 101.91 - -Issue and redemption price per share in EUR1 101.91 - -Class (EUR hedged) P-acc3 LU0849401350Shares outstanding 9 109.1060 - -Net asset value per share in EUR 103.03 - -Issue and redemption price per share in EUR1 103.03 - -Class (SGD hedged) P-acc LU0286926331Shares outstanding 69 204.9960 77 653.2640 94 837.6100Net asset value per share in SGD 99.46 96.06 87.18Issue and redemption price per share in SGD1 99.46 95.84 87.09Class I-A2-acc6 LU0946722526 Shares outstanding - - -Net asset value per share in USD - - -Issue and redemption price per share in USD1 - - -Class I-B-acc LU0425154183Shares outstanding 970 014.1640 839 340.0000 906 840.0000Net asset value per share in USD 115.79 109.73 97.54Issue and redemption price per share in USD1 115.79 109.48 97.44Class I-X-acc LU0425154852Shares outstanding 249 272.5930 15 906.3420 19 015.5930Net asset value per share in USD 114.71 108.63 96.50Issue and redemption price per share in USD1 114.71 108.38 96.40Class P-acc LU0218832805Shares outstanding 439 132.5560 419 146.1630 623 493.9650Net asset value per share in USD 118.92 114.85 104.01Issue and redemption price per share in USD1 118.92 114.59 103.91
1 See note 12 Initial subscription: 25.6.20133 Initial subscription: 26.11.20124 Initial subscription: 4.6.20135 Initial subscription: 26.6.20136 For the period from 27.6.13 to 24.9.13 the share class I-A2-acc was in circulation
58 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Dynamic Alpha (USD)Annual Report as of 30 September 2013
Historical performance is no indicator of current or future performance.The performance data does not take account of any commissions and costs charged when subscribing and redeeming shares.The performance data were not audited.
1 The subfund does not have a benchmark, which means that the performance of the subfund cannot be compared with a benchmark.
The notes are an integral part of the fi nancial statements. 59
UBS (Lux) Key Selection SICAV – Dynamic Alpha (USD)Annual Report as of 30 September 2013
Report of the Portfolio Manager
In the reporting year from 1 October 2012 to 30 September 2013, the last three months of 2012 were generally benign towards risky assets. The market environment changed in 2013 with performance across emerging markets equity and debt starting to deteriorate and culminating in a May sell-off. At the same time, global government bonds suffered amidst the prospect of better global growth and higher interest rate expectations. High yield bonds were positive over the reporting year but could not recover to the April peaks until the end of Q3. Developed equities presented the most rewarding opportunities despite participating strongly in the May sell-off. Some of the European equities outpaced the US markets. Tail risks like the Middle East conflict, the Eurozone crisis, monetary policy errors, GDP growth disappointments and the China hard landing left markets largely untroubled in the reporting year ending September 2013.
The subfund posted a positive return. It is not managed against a market-based benchmark and has the ability to go short across asset classes, currencies and securities. Overall the strategy posted consistently positive monthly results except in May and August 2013. Having lowered the fixed income risks in two lags (end of 2012 and June 2013) helped us to limit the impact of Fed tapering speculations. The focus was on capturing upside in the equity markets and in high yield. Nearing critical events like the year-end fiscal cliff in the US, the critical Federal Reserve announcement, or political elections in Europe, the approach was to cap the downside by using equity options. The equity allocation contributed the most significantly to the positive performance.
Structure of the Securities Portfolio
Geographical Breakdown as a % of net assetsUnited States 45.29Italy 8.55United Kingdom 8.01Australia 7.92Netherlands 4.34Luxembourg 2.76France 2.52Canada 2.45Spain 1.22Germany 0.99Cayman Islands 0.80Sweden 0.78Jersey 0.61Supranationals 0.61Japan 0.55Eurozone 0.44Denmark 0.40British Virgin Islands 0.36Finland 0.35Bermuda 0.34Mexico 0.34Norway 0.33Brazil 0.30Ireland 0.26Switzerland 0.25Belgium 0.23Curacao 0.13Hong Kong 0.13South Korea 0.11Portugal 0.10Turkey 0.08Total 91.55
60 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Dynamic Alpha (USD)Annual Report as of 30 September 2013
Statement of Net Assets USDAssets 30.9.2013Investments in securities, cost 234 357 627.49Investments in securities, unrealized appreciation (depreciation) -1 689 341.21Total investments in securities (Note 1) 232 668 286.28Cash at banks, deposits on demand and deposit accounts 17 357 390.26Other liquid assets (Margins) 3 877 487.37Receivable on securities sales (Note 1) 3 584 063.99Receivable on subscriptions 1 149.01Interest receivable on securities 2 129 356.23Interest receivable on liquid assets 1 417.78Other receivables 2 578.79Unrealized gain (loss) on financial futures (Note 1) -477 697.87Unrealized gain (loss) on options, futures-styled (Note 1) 118 927.42Unrealized gain (loss) on forward foreign exchange contracts (Note 1) -2 961 652.27Unrealized gain (loss) on swaps (Note 1) 2 651 999.88Total Assets 258 953 306.87
LiabilitiesBank overdraft -894 569.36Other short-term liabilities (Margins) -406 704.25Interest payable on bank overdraft -191.35Payable on securities purchases (Note 1) -3 418 594.53Payable on redemptions -13 162.03Provisions for flat fee (Note 2) -63 828.60Provisions for taxe d’abonnement (Note 3) -12 585.26Total provisions -76 413.86Total Liabilities -4 809 635.38
Net assets at the end of the financial year 254 143 671.49
Statement of Operations USDIncome 1.10.2012-30.9.2013Interest on liquid assets 16 236.81Interest on securities 4 284 206.08Dividends (Note 1) 59 010.29Interest received on swaps (Note 1) 1 365 115.76Income on securities lending (Note 16) 29 785.35Other income 34 617.22Total income 5 788 971.51
ExpensesInterest paid on swaps (Note 1) -148 705.88Flat fee (Note 2) -1 395 124.13Taxe d’abonnement (Note 3) -41 980.53Cost on securities lending (Note 16) -12 623.35Interest on cash liquidity and bank overdraft -6 203.02Total expenses -1 604 636.91
Net income (loss) on investments 4 184 334.60
Realized gain (loss) (Note 1)Realized gain (loss) on market-priced securities without options 6 928 285.00Realized gain (loss) on options 5 080 076.21Realized gain (loss) on yield-evaluated securities and money market instruments 12.15Realized gain (loss) on financial futures 4 607 767.83Realized gain (loss) on options, futures-styled -3 795.06Realized gain (loss) on forward foreign exchange contracts 3 053 255.62Realized gain (loss) on swaps -333 598.58Realized result on subscriptions/redemptions (Note 4) 522 549.84Total realized gain (loss) on investments 19 854 553.01Realized gain (loss) on foreign exchange -302 271.76Total realized gain (loss) 19 552 281.25
Net realized gain (loss) of the financial year 23 736 615.85
Changes in unrealized appreciation (depreciation) (Note 1)Unrealized appreciation (depreciation) on market-priced securities without options -10 923 531.75Unrealized appreciation (depreciation) on options 531 293.38Unrealized appreciation (depreciation) on yield-evaluated securities and money market instruments 11 668.77Unrealized appreciation (depreciation) on financial futures -1 188 716.94Unrealized appreciation (depreciation) on options, futures-styled 118 927.42Unrealized appreciation (depreciation) on forward foreign exchange contracts -3 109 234.25Unrealized appreciation (depreciation) on swaps -257 309.62Total changes in unrealized appreciation (depreciation) -14 816 902.99
Net increase (decrease) in net assets as a result of operations 8 919 712.86
* As at 30 September 2013, cash amounts serves as collateral for the counterparty Citibank London for an amount of USD 510 000.
*
The notes are an integral part of the fi nancial statements. 61
UBS (Lux) Key Selection SICAV – Dynamic Alpha (USD)Annual Report as of 30 September 2013
Statement of Changes in Net Assets USD 1.10.2012-30.9.2013Net assets at the beginning of the financial year 153 399 419.63Subscriptions 132 367 497.81Redemptions -40 542 958.81Total net subscriptions (redemptions) 91 824 539.00Net income (loss) on investments 4 184 334.60Total realized gain (loss) 19 552 281.25Total changes in unrealized appreciation (depreciation) -14 816 902.99Net increase (decrease) in net assets as a result of operations 8 919 712.86Net assets at the end of the financial year 254 143 671.49
Changes in the Number of Shares outstanding
1.10.2012-30.9.2013Class (CAD hedged) P-accNumber of shares outstanding at the beginning of the financial year 52 099.7220Number of shares issued 5 195.5330Number of shares redeemed -4 128.9100Number of shares outstanding at the end of the financial year 53 166.3450Class (CHF hedged) I-X-accNumber of shares outstanding at the beginning of the financial year 0.0000Number of shares issued 231 778.5490Number of shares redeemed 0.0000Number of shares outstanding at the end of the financial year 231 778.5490Class (CHF hedged) P-accNumber of shares outstanding at the beginning of the financial year 0.0000Number of shares issued 48 068.7830Number of shares redeemed -42 750.9510Number of shares outstanding at the end of the financial year 5 317.8320Class (EUR hedged) I-A2-accNumber of shares outstanding at the beginning of the financial year 0.0000Number of shares issued 110 175.0000Number of shares redeemed 0.0000Number of shares outstanding at the end of the financial year 110 175.0000Class (EUR hedged) I-B-accNumber of shares outstanding at the beginning of the financial year 0.0000Number of shares issued 55 820.0000Number of shares redeemed -1 317.1310Number of shares outstanding at the end of the financial year 54 502.8690Class (EUR hedged) P-accNumber of shares outstanding at the beginning of the financial year 0.0000Number of shares issued 19 909.1060Number of shares redeemed -10 800.0000Number of shares outstanding at the end of the financial year 9 109.1060Class (SGD hedged) P-accNumber of shares outstanding at the beginning of the financial year 77 653.2640Number of shares issued 48 618.7810Number of shares redeemed -57 067.0490Number of shares outstanding at the end of the financial year 69 204.9960Class I-A2-accNumber of shares outstanding at the beginning of the financial year 0.0000Number of shares issued 99 800.0000Number of shares redeemed -99 800.0000Number of shares outstanding at the end of the financial year 0.0000Class I-B-accNumber of shares outstanding at the beginning of the financial year 839 340.0000Number of shares issued 130 674.1640Number of shares redeemed 0.0000Number of shares outstanding at the end of the financial year 970 014.1640Class I-X-accNumber of shares outstanding at the beginning of the financial year 15 906.3420Number of shares issued 241 993.3420Number of shares redeemed -8 627.0910Number of shares outstanding at the end of the financial year 249 272.5930Class P-accNumber of shares outstanding at the beginning of the financial year 419 146.1630Number of shares issued 173 263.4500Number of shares redeemed -153 277.0570Number of shares outstanding at the end of the financial year 439 132.5560
62 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Dynamic Alpha (USD)Annual Report as of 30 September 2013
Statement of Investments in Securities and other Net Assets as of 30 September 2013
Description Quantity/ Valuation in USD as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1)
Transferable securities and money market instruments listed on an official stock exchange
GBP AA BOND CO LTD-REG-S 4.72010% 13-31.07.18 165 000.00 274 725.38 0.11GBP ABN AMRO BANK NV 4.87500% 12-16.01.19 300 000.00 531 239.31 0.21GBP ANGLIAN WATER SERVICES FINANCING-REG-S 4.50000% 13-22.02.26 200 000.00 318 610.48 0.12GBP ARQIVA FINANCE PLC-REG-S 4.04000% 13-30.06.20 550 000.00 898 294.13 0.35GBP ARQIVA FINANCING PLC-REG-S 4.88200% 13-31.12.32 150 000.00 245 436.26 0.10GBP ASIA DEVELOPMENT BANK 1.00000% 12-15.12.15 225 000.00 366 853.61 0.14GBP BARCLAYS BANK PLC 5.75000% 09-17.08.21 240 000.00 447 809.44 0.18GBP BG ENERGY CAPITAL PLC 5.12500% 09-07.12.17 200 000.00 364 585.24 0.14GBP DEUTSCHE TELEKOM INTL FINANCE BV 6.50000% 09-08.04.22 150 000.00 293 158.37 0.12GBP DONG ENERGY A/S 4.87500% 12-12.01.32 255 000.00 420 854.94 0.17GBP EUROPEAN INVESTMENT BANK 3.00000% 10-07.12.15 255 000.00 431 930.17 0.17GBP EVERYTHING EVERYWHERE FINANCE PLC 4.37500% 12-28.03.19 310 000.00 519 925.86 0.20GBP GATWICK FUNDING LTD 5.25000% 12-23.01.24 225 000.00 397 627.88 0.16GBP GAZ CAPITAL SA/GAZPROM LPN 6.58000% 07-31.10.13 430 000.00 697 344.74 0.27GBP HEATHROW FUNDING LTD 6.75000% 09-03.12.26 330 000.00 679 150.13 0.27GBP INTER-AMERICAN DEVELOPMENT BANK 0.62500% 13-15.12.15 250 000.00 404 056.49 0.16GBP INTERNATIONAL FINANCE CORP 0.62500% 13-15.12.15 210 000.00 339 356.44 0.13GBP LLOYDS BANK PLC 7.50000% 09-15.04.24 300 000.00 624 900.55 0.25GBP NEW YORK LIFE FUNDING 5.12500% 05-03.02.15 220 000.00 374 900.82 0.15GBP TESCO PLC 6.12500% 09-24.02.22 405 000.00 762 971.57 0.30GBP THAMES WATER UTILITIES FINANCE PLC 5.12500% 06-28.09.37 335 000.00 589 387.19 0.23GBP WALES & WEST UTILITIES FINANCE PLC 5.12500% 09-02.12.16 565 000.00 1 009 604.57 0.40GBP WESTERN POWER DISTRIBUTION WEST MIDLAND 5.75000% 11-16.04.32 125 000.00 233 630.83 0.09GBP WESTPAC BANKING CORP 5.00000% 09-21.10.19 280 000.00 510 251.56 0.20Total GBP 11 736 605.96 4.62
USD
USD AIA GROUP LTD-REG-S 1.75000% 13-13.03.18 330 000.00 322 654.20 0.13USD BNP PARIBAS SA 2.70000% 13-20.08.18 405 000.00 409 631.99 0.16USD GENERAL ELECTRIC CAPITAL CORP 4.37500% 10-16.09.20 810 000.00 861 763.86 0.34USD GENERAL ELECTRIC CAPITAL CORP 6.75000% 02-15.03.32 1 075 000.00 1 282 260.00 0.50USD RABOBANK UTRECHT 3.87500% 12-08.02.22 850 000.00 851 036.15 0.34USD WACHOVIA CORP 5.75000% 08-01.02.18 1 130 000.00 1 305 333.06 0.51Total USD 5 032 679.26 1.98
Total Medium term notes, fixed rate 42 143 042.58 16.58
Description Quantity/ Valuation in USD as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1)
64 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Dynamic Alpha (USD)Annual Report as of 30 September 2013
Description Quantity/ Valuation in USD as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1)
The notes are an integral part of the fi nancial statements. 65
UBS (Lux) Key Selection SICAV – Dynamic Alpha (USD)Annual Report as of 30 September 2013
Total Transferable securities and money market instruments listed on an official stock exchange 122 795 198.55 48.31
Transferable securities and money market instruments traded on another regulated market
Treasury bills, zero coupon
USD
USD AMERICA, UNITED STATES OF TB 0.00000% 02.05.13-01.05.14 24 719 000.00 24 705 160.92 9.72USD AMERICA, UNITED STATES OF TB 0.00000% 30.05.13-29.05.14 24 722 000.00 24 705 129.41 9.72USD AMERICA, UNITED STATES TB 0.00000% 22.08.13-21.08.14 4 002 000.00 3 997 727.24 1.58Total USD 53 408 017.57 21.02
Total Treasury bills, zero coupon 53 408 017.57 21.02
Notes, fixed rate
CAD
CAD BANK OF MONTREAL 6.02000% 08-02.05.18 390 000.00 432 352.99 0.17CAD BANK OF NOVA SCOTIA 4.10000% 10-08.06.17 565 000.00 581 559.74 0.23CAD CANADIAN IMPERIAL BANK 3.40000% 11-14.01.16 435 000.00 436 263.83 0.17CAD ROYAL BANK OF CANADA 2.98000% 12-07.05.19 375 000.00 363 787.53 0.15Total CAD 1 813 964.09 0.72
USD
USD ABB FINANCE USA INC 2.87500% 12-08.05.22 380 000.00 366 958.78 0.14USD ABBVIE INC 2.90000% 13-06.11.22 470 000.00 439 548.70 0.17USD ABBVIE INC 4.40000% 13-06.11.42 285 000.00 258 031.59 0.10USD ALLTEL CORP 7.87500% 02-01.07.32 390 000.00 508 247.22 0.20USD ALTRIA GROUP INC 4.25000% 12-09.08.42 1 080 000.00 899 116.20 0.35USD AMERICA MOVIL SAB DE CV 5.00000% 10-30.03.20 600 000.00 645 103.80 0.25USD AMERICAN EXPRESS CREDIT CORP 1.30000% 13-29.07.16 255 000.00 256 526.94 0.10USD AMERICAN INTERNATIONAL GROUP INC 3.37500% 13-15.08.20 515 000.00 515 313.64 0.20USD AMERICAN TOWER CORP 3.40000% 13-15.02.19 145 000.00 143 316.41 0.06USD ANADARKO PETROLEUM CORP 6.37500% 10-15.09.17 915 000.00 1 063 666.45 0.42USD APACHE CORP 4.75000% 12-15.04.43 645 000.00 610 545.39 0.24USD BANK OF AMERICA CORP 1.50000% 12-09.10.15 2 085 000.00 2 096 400.78 0.82USD BARRICK GOLD CORP 2.50000% 13-01.05.18 305 000.00 290 832.45 0.11USD BARRICK GOLD CORP 4.10000% 13-01.05.23 260 000.00 228 955.48 0.09USD BAXTER INTERNATIONAL INC 3.20000% 13-15.06.23 600 000.00 585 415.20 0.23USD BBVA US SENIOR SA UNIPERSONAL 4.66400% 12-09.10.15 250 000.00 260 300.25 0.10USD BERKSHIRE HATHAWAY FINANCE CORP 1.30000% 13-15.05.18 225 000.00 219 648.60 0.09USD CANADIAN IMPERIAL BANK OF COMMERCE 1.35000% 13-18.07.16 390 000.00 393 167.58 0.15USD CAPITAL ONE FINANCIAL CORP 1.00000% 12-06.11.15 725 000.00 721 348.18 0.28USD CELGENE CORP 4.00000% 13-15.08.23 220 000.00 219 149.92 0.09USD CHEVRON CORP 2.35500% 12-05.12.22 210 000.00 193 340.91 0.08USD COCA-COLA CO 1.80000% 11-01.09.16 495 000.00 508 869.41 0.20USD COMCAST CORP 5.70000% 09-01.07.19 930 000.00 1 080 203.37 0.43USD DIAGEO CAPITAL PLC 3.87500% 13-29.04.43 280 000.00 241 206.28 0.09USD DUKE ENERGY CORP 3.05000% 12-15.08.22 460 000.00 435 313.18 0.17USD ELECTRICITE DE FRANCE-REG-S 6.95000% 09-26.01.39 180 000.00 218 496.60 0.09USD ENERGY TRANSFER PARTNERS LP 6.05000% 11-01.06.41 500 000.00 501 830.50 0.20USD ENTERPRISE PRODUCTS OPERATING LLC 5.20000% 10-01.09.20 260 000.00 289 325.40 0.11USD ENTERPRISE PRODUCTS OPERATING LLC 4.85000% 13-15.03.44 380 000.00 354 181.66 0.14USD ERAC USA FINANCE LLC-144A 5.62500% 12-15.03.42 265 000.00 268 887.55 0.11USD FORD MOTOR CREDIT CO LLC 3.00000% 12-12.06.17 750 000.00 770 889.75 0.30USD GENERAL ELECTRIC CO 4.12500% 12-09.10.42 240 000.00 220 329.60 0.09USD GENERAL, ELECTRIC CAPITAL CORP 1.00000% 12-11.12.15 720 000.00 720 859.68 0.28USD GEORGIA POWER CO 5.40000% 10-01.06.40 340 000.00 361 867.78 0.14USD GLAXOSMITHKLINE CAPITAL PLC 1.50000% 12-08.05.17 435 000.00 437 440.79 0.17USD HALLIBURTON CO 4.75000% 13-01.08.43 555 000.00 548 689.65 0.22USD HARTFORD FINANCIAL SERVICES GROUP INC 4.30000% 13-15.04.43 245 000.00 216 202.95 0.09USD INTESA SANPAOLO SPA 3.87500% 13-16.01.18 310 000.00 304 762.55 0.12USD JAPAN TOBACCO INC-REG-S 2.10000% 13-23.07.18 200 000.00 200 120.00 0.08USD JPMORGAN CHASE & CO 1.80000% 13-25.01.18 445 000.00 438 802.93 0.17USD KELLOGG CO 1.87500% 11-17.11.16 351 000.00 357 436.63 0.14USD KINDER MORGAN ENERGY PARTNERS LP 5.00000% 13-01.03.43 500 000.00 452 175.50 0.18USD KINDER MORGAN ENERGY PARTNERS LP 2.65000% 13-01.02.19 90 000.00 89 380.35 0.04USD KRAFT FOODS GROUP INC 5.00000% 13-04.06.42 370 000.00 366 527.55 0.14USD LORILLARD TOBACCO CO 6.87500% 10-01.05.20 100 000.00 115 000.40 0.05USD LYB INTERNATIONAL FINANCE BV 5.25000% 13-15.07.43 235 000.00 231 089.84 0.09USD MAXIM INTEGRATED PRODUCTS 3.37500% 13-15.03.23 260 000.00 242 109.40 0.10USD MICROSOFT CORP 3.50000% 12-15.11.42 365 000.00 295 298.14 0.12USD MORGAN STANLEY 2.12500% 13-25.04.18 265 000.00 258 281.72 0.10USD MORGAN STANLEY 4.75000% 12-22.03.17 950 000.00 1 025 734.95 0.40USD MORGAN STANLEY 6.37500% 12-24.07.42 210 000.00 237 651.33 0.09USD MYLAN INC-144A 2.60000% 13-24.06.18 85 000.00 84 849.64 0.03USD NBC UNIVERSAL INC 5.15000% 11-30.04.20 575 000.00 652 029.30 0.26USD NIPPON TELEGRAPH & TELEPHONE 1.40000% 12-18.07.17 145 000.00 143 515.20 0.06USD PEPSICO INC 1.25000% 12-13.08.17 265 000.00 261 150.87 0.10USD PERRIGO CO 2.95000% 13-15.05.23 120 000.00 116 009.40 0.05USD PNC FUNDING CORP 2.70000% 11-19.09.16 345 000.00 358 562.29 0.14USD PPL CAPITAL FUNDING INC 4.70000% 13-01.06.43 225 000.00 201 153.38 0.08USD PPL ENERGY SUPPLY 4.60000% 11-15.12.21 200 000.00 197 338.60 0.08USD PRUDENTIAL FINANCIAL INC 4.50000% 10-15.11.20 890 000.00 956 213.33 0.38USD QVC INC 4.37500% 13-15.03.23 150 000.00 139 497.90 0.05USD REPUBLIC SERVICES INC 5.25000% 10-15.11.21 795 000.00 872 081.61 0.34USD REYNOLDS AMERICAN INC 6.15000% 13-15.09.43 400 000.00 418 487.20 0.16USD ROGERS COMMUNICATIONS INC 3.00000% 13-15.03.23 140 000.00 129 204.04 0.05
Description Quantity/ Valuation in USD as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1)
66 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Dynamic Alpha (USD)Annual Report as of 30 September 2013
Total Recently issued transferable securities and money market instruments 1 974 592.67 0.78
Description Quantity/ Valuation in USD as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1)
The notes are an integral part of the fi nancial statements. 67
UBS (Lux) Key Selection SICAV – Dynamic Alpha (USD)Annual Report as of 30 September 2013
UCITS/Other UCIs in accordance with Article 41 (1) e) of the Luxembourg law of 17 December 2010
Total Options on indices, classic-styled 4 296 808.28 1.69
Total Derivative instruments listed on an official stock exchange 4 296 808.28 1.69
Total investments in securities 232 668 286.28 91.55
Derivative instruments
Derivative instruments listed on an official stock exchange
Options on indices, futures-styled
HKD HANG SENG INDEX CALL 26000 28.03.14 -154.00 39 715.54 0.02HKD HANG SENG INDEX CALL 23600 28.03.14 173.00 79 211.88 0.03Total Options on indices, futures-styled 118 927.42 0.05
Financial Futures on bonds
GBP LONG GILT FUTURE 27.12.13 65.00 106 184.06 0.04USD US 5YR TREASURY NOTE FUTURE 31.12.13 -139.00 -202 780.11 -0.08USD US 10YR TREASURY NOTE FUTURE 19.12.13 18.00 59 156.34 0.02EUR EURO-BUND FUTURE 06.12.13 -66.00 -242 519.93 -0.10EUR EURO-BUXL FUTURE 06.12.13 -2 896.81 0.00EUR EURO-BOBL FUTURE 06.12.13 9.00 17 421.48 0.01USD US ULTRA LONG BOND (CBT) FUTURE 19.12.13 -158.00 -309 149.48 -0.12AUD AUSTRALIA 10 Y BOND FUTURE 16.12.13 147.00 302 397.92 0.12Total Financial Futures on bonds -272 186.53 -0.11
Financial Futures on Indices
EUR FTSE/MIB INDEX FUTURE 20.12.13 66.00 -63 432.04 -0.02USD MINI MSCI EMERGING MARKETS INDEX FUTURE 20.12.13 211.00 -144 155.94 -0.06EUR CAC 40 INDEX FUTURE 18.10.13 -140.00 -947.56 0.00JPY TOPIX INDEX FUTURE 12.12.13 33.00 70 624.20 0.03USD MSCI TAIWAN INDEX FUTURE 30.10.13 130.00 -67 600.00 -0.03Total Financial Futures on Indices -205 511.34 -0.08
Total Derivative instruments listed on an official stock exchange -358 770.45 -0.14
Derivative instruments not listed on an official stock exchange and not traded on another regulated market
Description Quantity/ Valuation in USD as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1)
68 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Dynamic Alpha (USD)Annual Report as of 30 September 2013
Cash at banks, deposits on demand and deposit accounts and other liquid assets 21 234 877.63 8.35Bank overdraft and other short-term liabilities -1 301 273.61 -0.51Other assets and liabilities 2 210 204.03 0.87
Total net assets 254 143 671.49 100.00
Description Quantity/ Valuation in USD as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1)
The notes are an integral part of the fi nancial statements. 69
UBS (Lux) Key Selection SICAV – Emerging Markets Allocation (USD)Annual Report as of 30 September 2013
Most important figures
ISIN 30.9.2013 30.9.2012Net assets in USD 169 499 088.37 102 055 273.76Class (CHF hedged) P-acc1 LU0730959052Shares outstanding 911 326.3960 203 784.0850Net asset value per share in CHF 89.94 98.50Issue and redemption price per share in CHF2 89.94 98.96Class (EUR hedged) N-acc3 LU0815299903Shares outstanding 1 292.7720 100.0000Net asset value per share in EUR 92.60 102.10Issue and redemption price per share in EUR2 92.60 102.58Class (EUR hedged) P-acc1 LU0730959219Shares outstanding 357 587.4960 339 618.9720Net asset value per share in EUR 90.06 98.60Issue and redemption price per share in EUR2 90.06 99.06Class P-acc1 LU0730958831Shares outstanding 385 108.3120 379 005.1200Net asset value per share in USD 91.14 99.22Issue and redemption price per share in USD2 91.14 99.69
1 Initial subscription: 22.3.20122 See note 13 Initial subscription: 3.9.2012
Historical performance is no indicator of current or future performance.The performance data does not take account of any commissions and costs charged when subscribing and redeeming shares.The performance data were not audited.
1 The subfund does not have a benchmark, which means that the performance of the subfund cannot be compared with a benchmark.
70 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Emerging Markets Allocation (USD)Annual Report as of 30 September 2013
Report of the Portfolio Manager
In the reporting year from 1 October 2012 to 30 September 2013, the last months of 2012 were generally benign towards risky assets with emerging markets equities rallying towards the end of the year. The market environment changed in 2013 with performance across emerging markets equity and debt starting to deteriorate and culminating in a June sell-off. After a mixed start into Q3 emerging markets equities have seen a solid rebound in September. Also emerging market debt benefited from the FOMC decision to postpone the tapering. Commodities had a hard year losing performance on the decreasing price of gold as well as some industrial metals.
The subfund performance was negative in the reporting year, suffering from the increased risk aversion of investors especially in Q2 of this year. We started to increase the equity exposure with the improving sentiment in Q3 and the subfund benefited nicely from the rebound in emerging market equities as well as emerging market debt.
The subfund was launched in March 2012, in a very difficult economic environment. The market sentiment was deteriorating based on the worsening of the Euro crisis. Everything with any risk was losing value. We consistently reduced the equity exposure to less than half of what the subfund’s long-term average exposure is. Despite having a sizable amount in cash, the exposure in emerging market equities, emerging markets bonds and commodities hit performance. With the improving sentiment towards the end of the second quarter, we started to increase the equity exposure again and the subfund benefited nicely from the rebound in emerging market equities as well as commodities.
Structure of the Securities Portfolio
Geographical Breakdown as a % of net assetsLuxembourg 68.63Ireland 22.88United States 0.13Total 91.64
Economic Breakdown as a % of net assetsInvestment funds & pension foundations 91.51Finance & holding companies 0.13Total 91.64
The notes are an integral part of the fi nancial statements. 71
UBS (Lux) Key Selection SICAV – Emerging Markets Allocation (USD)Annual Report as of 30 September 2013
Statement of Net Assets USDAssets 30.9.2013Investments in securities, cost 159 992 536.77Investments in securities, unrealized appreciation (depreciation) -4 666 663.43Total investments in securities (Note 1) 155 325 873.34Cash at banks, deposits on demand and deposit accounts 8 061 369.90Other liquid assets (Margins) 2 207 381.39Receivable on subscriptions 146 844.32Receivable on dividends 60 039.00Other receivables 2 566.96Unrealized gain (loss) on financial futures (Note 1) -665 629.18Unrealized gain (loss) on forward foreign exchange contracts (Note 1) 4 469 415.78Unrealized gain (loss) on swaps (Note 1) 511 723.71Total Assets 170 119 585.22
LiabilitiesPayable on redemptions -466 582.57Provisions for flat fee (Note 2) -147 268.18Provisions for taxe d’abonnement (Note 3) -6 646.10Total provisions -153 914.28Total Liabilities -620 496.85
Net assets at the end of the financial year 169 499 088.37
Statement of Operations USDIncome 1.10.2012-30.9.2013Interest on liquid assets 376.21Dividends (Note 1) 999 370.48Income on securities lending (Note 16) 47 227.55Total income 1 046 974.24
ExpensesInterest paid on swaps (Note 1) -1 545.80Flat fee (Note 2) -3 300 693.83Taxe d’abonnement (Note 3) -30 460.13Cost on securities lending (Note 16) -20 696.08Interest on cash liquidity and bank overdraft -898.99Total expenses -3 354 294.83
Net income (loss) on investments -2 307 320.59
Realized gain (loss) (Note 1)Realized gain (loss) on market-priced securities without options -4 668 598.16Realized gain (loss) on options -766 807.00Realized gain (loss) on financial futures 605 267.56Realized gain (loss) on forward foreign exchange contracts -8 389 814.10Realized gain (loss) on swaps -453 597.74Realized result on subscriptions/redemptions (Note 4) 459 889.82Total realized gain (loss) on investments -13 213 659.62Realized gain (loss) on foreign exchange 4 151 593.01Total realized gain (loss) -9 062 066.61
Net realized gain (loss) of the financial year -11 369 387.20
Changes in unrealized appreciation (depreciation) (Note 1)Unrealized appreciation (depreciation) on market-priced securities without options -5 846 366.88Unrealized appreciation (depreciation) on options -420 555.00Unrealized appreciation (depreciation) on financial futures -665 629.18Unrealized appreciation (depreciation) on forward foreign exchange contracts 4 646 959.09Unrealized appreciation (depreciation) on swaps 511 723.71Total changes in unrealized appreciation (depreciation) -1 773 868.26
Net increase (decrease) in net assets as a result of operations -13 143 255.46
72 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Emerging Markets Allocation (USD)Annual Report as of 30 September 2013
Statement of Changes in Net Assets USD 1.10.2012-30.9.2013Net assets at the beginning of the financial year 102 055 273.76Subscriptions 127 224 383.00Redemptions -46 637 312.93Total net subscriptions (redemptions) 80 587 070.07Net income (loss) on investments -2 307 320.59Total realized gain (loss) -9 062 066.61Total changes in unrealized appreciation (depreciation) -1 773 868.26Net increase (decrease) in net assets as a result of operations -13 143 255.46Net assets at the end of the financial year 169 499 088.37
Changes in the Number of Shares outstanding
1.10.2012-30.9.2013Class (CHF hedged) P-accNumber of shares outstanding at the beginning of the financial year 203 784.0850Number of shares issued 774 007.5110Number of shares redeemed -66 465.2000Number of shares outstanding at the end of the financial year 911 326.3960Class (EUR hedged) N-accNumber of shares outstanding at the beginning of the financial year 100.0000Number of shares issued 2 138.1850Number of shares redeemed -945.4130Number of shares outstanding at the end of the financial year 1 292.7720Class (EUR hedged) P-accNumber of shares outstanding at the beginning of the financial year 339 618.9720Number of shares issued 173 148.1880Number of shares redeemed -155 179.6640Number of shares outstanding at the end of the financial year 357 587.4960Class P-accNumber of shares outstanding at the beginning of the financial year 379 005.1200Number of shares issued 224 091.7230Number of shares redeemed -217 988.5310Number of shares outstanding at the end of the financial year 385 108.3120
The notes are an integral part of the fi nancial statements. 73
UBS (Lux) Key Selection SICAV – Emerging Markets Allocation (USD)Annual Report as of 30 September 2013
Statement of Investments in Securities and other Net Assets as of 30 September 2013
Description Quantity/ Valuation in USD as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1)
UCITS/Other UCIs in accordance with Article 41 (1) e) of the Luxembourg law of 17 December 2010
Investment certificates, open end
Ireland
USD ISHARES II PLC - ISHARES JPMORGAN $ EMERGING MARKETS BD FUND 157 500.00 16 968 262.50 10.01USD ISHARES II PLC-ISHARES MSCI LATIN AMERICA-USD 217 900.00 4 763 294.00 2.81USD SPDR MSCI EM ASIA UCITS ETF-USD 174 200.00 8 187 400.00 4.83USD SPDR MSCI EM EUROPE UCITS ETF-USD ACC 420 500.00 8 855 730.00 5.23Total Ireland 38 774 686.50 22.88
Total Options on investment funds, classic-styled 220 800.00 0.13
Total Derivative instruments listed on an official stock exchange 220 800.00 0.13
Total investments in securities 155 325 873.34 91.64
Derivative instruments
Derivative instruments listed on an official stock exchange
Financial Futures on Indices
KRW KOREA KOSPI 200 INDEX FUTURE 12.12.13 48.00 29 753.18 0.02USD MINI MSCI EMERGING MARKETS INDEX FUTURE 20.12.13 111.00 -328 905.21 -0.19USD MSCI TAIWAN INDEX FUTURE 30.10.13 171.00 -94 050.00 -0.06HKD HANG SENG CHINA ENTERPRISES INDEX FUTURE 30.10.13 115.00 -189 809.35 -0.11MXN MEXICO BOLSA INDEX FUTURE 20.12.13 106.00 -82 617.80 -0.05Total Financial Futures on Indices -665 629.18 -0.39
Total Derivative instruments listed on an official stock exchange
Derivative instruments not listed on an official stock exchange and not traded on another regulated market
Swaps and forward swaps on indices
USD BNP/IBOV USD INDEX SWAP PAYER 3ML-530BP 13-23.12.13 -4 349 896.93 511 723.71 0.30USD BNP/IBOV USD INDEX SWAP REC PERF 13-23.12.13Total Swaps and forward swaps on indices 511 723.71 0.30
Total Derivative instruments not listed on an official stock exchange and not traded on another regulated market -153 905.47 -0.09
Total Derivative instruments -153 905.47 -0.09
74 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Emerging Markets Allocation (USD)Annual Report as of 30 September 2013
Cash at banks, deposits on demand and deposit accounts and other liquid assets 10 268 751.29 6.06Other assets and liabilities -411 046.57 -0.24
Total net assets 169 499 088.37 100.00
Description Quantity/ Valuation in USD as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1)
The notes are an integral part of the fi nancial statements. 75
UBS (Lux) Key Selection SICAV – Emerging Markets Income (USD)Annual Report as of 30 September 2013
Most important figures
ISIN 30.9.2013Net assets in USD 328 397 851.37Class (AUD hedged) P-mdist1 LU0937166550Shares outstanding 8 046.1020Net asset value per share in AUD 98.21Issue and redemption price per share in AUD2 98.21Class (EUR hedged) P-acc3 LU0878006104Shares outstanding 23 566.8760Net asset value per share in EUR 96.10Issue and redemption price per share in EUR2 96.10Class (EUR hedged) P-dist3 LU0878005809Shares outstanding 22 629.5550Net asset value per share in EUR 96.10Issue and redemption price per share in EUR2 96.10Class (EUR hedged) Q-acc4 LU0943632330Shares outstanding 10 000.0000Net asset value per share in EUR 103.45Issue and redemption price per share in EUR2 103.45Class (HKD) P-mdist3 LU0882747503Shares outstanding 2 467 492.7550Net asset value per share in HKD 93.26Issue and redemption price per share in HKD2 93.26Class (SGD hedged) P-mdist3 LU0882747412Shares outstanding 409 004.6790Net asset value per share in SGD 93.20Issue and redemption price per share in SGD2 93.20Class P-acc3 LU0878005551Shares outstanding 282 974.6740Net asset value per share in USD 96.36Issue and redemption price per share in USD2 96.36Class P-dist3 LU0878005478Shares outstanding 79 046.1200Net asset value per share in USD 96.36Issue and redemption price per share in USD2 96.36Class P-mdist3 LU0878004406Shares outstanding 2 413 987.2350Net asset value per share in USD 93.34Issue and redemption price per share in USD2 93.34
Historical performance is no indicator of current or future performance.The performance data does not take account of any commissions and costs charged when subscribing and redeeming shares.The performance data were not audited.
1 The subfund does not have a benchmark, which means that the performance of the subfund cannot be compared with a benchmark.
UBS (Lux) Key Selection SICAV – Emerging Markets Income (USD)
76 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Emerging Markets Income (USD)Annual Report as of 30 September 2013
Report of the Portfolio Manager
In the reporting period from 15 March 2013 (launch date of the fund) to 30 September 2013, markets were mixed and largely driven by the monetary stance of the US Fed. In particular, emerging markets underperformed their developed market peers. Within emerging market equities, Latin America was the largest negative performing region while Asia was the largest positive performing region. Within emerging market debt, local currencies, especially the Indian Rupee and Indonesian Rupiah, underperformed hard currencies.
The subfund has met the expected income target for the reporting period. For this subfund, no benchmark is available. The return of the fund was negative but its underlying emerging market equity and emerging market debt components have performed in line with the respective markets. The negative performance of the subfund was largely driven by the emerging market debt component, especially in local currencies, while the subfund’s opportunistic exposure to developed markets and overweight in equities helped performance.
Structure of the Securities Portfolio
Geographical Breakdown as a % of net assetsLuxembourg 69.03Ireland 18.47Germany 10.30Total 97.80
Economic Breakdown as a % of net assetsInvestment funds & pension foundations 97.80Total 97.80
The notes are an integral part of the fi nancial statements. 77
UBS (Lux) Key Selection SICAV – Emerging Markets Income (USD)Annual Report as of 30 September 2013
Statement of Net Assets USDAssets 30.9.2013Investments in securities, cost 339 527 505.87Investments in securities, unrealized appreciation (depreciation) -18 337 172.80Total investments in securities (Note 1) 321 190 333.07Cash at banks, deposits on demand and deposit accounts 3 923 127.29Other liquid assets (Margins) 1 021 947.30Receivable on subscriptions 15 939.37Receivable on dividends 62 383.38Unrealized gain (loss) on financial futures (Note 1) 208 560.00Unrealized gain (loss) on forward foreign exchange contracts (Note 1) 652 754.93Unrealized gain (loss) on swaps (Note 1) 2 631 802.70Total Assets 329 706 848.04
LiabilitiesPayable on redemptions -1 011 214.02Provisions for flat fee (Note 2) -285 071.48Provisions for taxe d’abonnement (Note 3) -12 711.17Total provisions -297 782.65Total Liabilities -1 308 996.67
Net assets at the end of the period 328 397 851.37
Statement of Operations USDIncome 26.2.2013-30.9.2013Interest on liquid assets 4 853.78Dividends (Note 1) 5 356 841.00Interest received on swaps (Note 1) 645 277.77Income on securities lending (Note 16) 43 791.22Total income 6 050 763.77
ExpensesFlat fee (Note 2) -3 393 532.51Taxe d’abonnement (Note 3) -35 184.56Cost on securities lending (Note 16) -13 897.14Interest on cash liquidity and bank overdraft -614.39Total expenses -3 443 228.60
Net income (loss) on investments 2 607 535.17
Realized gain (loss) (Note 1)Realized gain (loss) on market-priced securities without options -1 529 521.03Realized gain (loss) on options -1 715 490.11Realized gain (loss) on financial futures -1 488 569.88Realized gain (loss) on options, futures-styled -87 813.14Realized gain (loss) on forward foreign exchange contracts -880 088.68Realized gain (loss) on swaps -763 495.82Realized result on subscriptions/redemptions (Note 4) 1 328 891.23Total realized gain (loss) on investments -5 136 087.43Realized gain (loss) on foreign exchange 114 597.47Total realized gain (loss) -5 021 489.96
Net realized gain (loss) of the period -2 413 954.79
Changes in unrealized appreciation (depreciation) (Note 1)Unrealized appreciation (depreciation) on market-priced securities without options -18 362 264.68Unrealized appreciation (depreciation) on options 25 091.88Unrealized appreciation (depreciation) on financial futures 208 560.00Unrealized appreciation (depreciation) on forward foreign exchange contracts 652 754.93Unrealized appreciation (depreciation) on swaps 2 631 802.70Total changes in unrealized appreciation (depreciation) -14 844 055.17
Net increase (decrease) in net assets as a result of operations -17 258 009.96
* As at 30 September 2013, cash amounts serves as collateral for the counterparty BNP London for an amount of USD 310 000.
*
78 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Emerging Markets Income (USD)Annual Report as of 30 September 2013
Statement of Changes in Net Assets USD 26.2.2013-30.9.2013Net assets at the beginning of the period 0.00Subscriptions 401 363 911.93Redemptions -46 774 725.88Total net subscriptions (redemptions) 354 589 186.05Dividend paid -8 933 324.72Net income (loss) on investments 2 607 535.17Total realized gain (loss) -5 021 489.96Total changes in unrealized appreciation (depreciation) -14 844 055.17Net increase (decrease) in net assets as a result of operations -17 258 009.96Net assets at the end of the period 328 397 851.37
Changes in the Number of Shares outstanding
26.2.2013-30.9.2013Class (AUD hedged) P-mdistNumber of shares outstanding at the beginning of the period 0.0000Number of shares issued 10 784.7010Number of shares redeemed -2 738.5990Number of shares outstanding at the end of the period 8 046.1020Class (EUR hedged) P-accNumber of shares outstanding at the beginning of the period 0.0000Number of shares issued 25 219.4220Number of shares redeemed -1 652.5460Number of shares outstanding at the end of the period 23 566.8760Class (EUR hedged) P-distNumber of shares outstanding at the beginning of the period 0.0000Number of shares issued 23 309.5550Number of shares redeemed -680.0000Number of shares outstanding at the end of the period 22 629.5550Class (EUR hedged) Q-accNumber of shares outstanding at the beginning of the period 0.0000Number of shares issued 10 000.0000Number of shares redeemed 0.0000Number of shares outstanding at the end of the period 10 000.0000Class (HKD) P-mdistNumber of shares outstanding at the beginning of the period 0.0000Number of shares issued 2 650 155.8920Number of shares redeemed -182 663.1370Number of shares outstanding at the end of the period 2 467 492.7550Class (SGD hedged) P-mdistNumber of shares outstanding at the beginning of the period 0.0000Number of shares issued 451 341.1360Number of shares redeemed -42 336.4570Number of shares outstanding at the end of the period 409 004.6790Class P-accNumber of shares outstanding at the beginning of the period 0.0000Number of shares issued 385 280.6420Number of shares redeemed -102 305.9680Number of shares outstanding at the end of the period 282 974.6740Class P-distNumber of shares outstanding at the beginning of the period 0.0000Number of shares issued 99 972.4870Number of shares redeemed -20 926.3670Number of shares outstanding at the end of the period 79 046.1200Class P-mdistNumber of shares outstanding at the beginning of the period 0.0000Number of shares issued 2 728 343.6340Number of shares redeemed -314 356.3990Number of shares outstanding at the end of the period 2 413 987.2350
The notes are an integral part of the fi nancial statements. 79
UBS (Lux) Key Selection SICAV – Emerging Markets Income (USD)Annual Report as of 30 September 2013
Statement of Investments in Securities and other Net Assets as of 30 September 2013
Description Quantity/ Valuation in USD as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1)
UCITS/Other UCIs in accordance with Article 41 (1) e) of the Luxembourg law of 17 December 2010
Investment certificates, open end
Germany
EUR ISHARES DOW JONES ASIA PACIFIC SELECT DIVIDEND 30 DE 856 450.00 33 823 556.10 10.29Total Germany 33 823 556.10 10.29
Ireland
USD ISHARES II PLC - ISHARES JPMORGAN $ EMERGING MARKETS BD FUND 163 650.00 17 630 832.75 5.37USD ISHARES III PLC - ISHARES CAP EM MKT LOC GOV BD USD UCITS ET 96 200.00 8 222 695.00 2.50USD ISHARES V PLC DOW JONES EMERGING MARKETS SELECT DIVIDEND-USD 1 265 950.00 34 813 625.00 10.60Total Ireland 60 667 152.75 18.47
Luxembourg
USD UBS (LUX) BOND SICAV - ASIAN HIGH YIELD (USD) I-X-DIST 320 700.00 30 540 261.00 9.30USD UBS (LUX) EMERGING ECONOMIES FUND-GLOBAL BONDS (USD) I-X-DIS 549 800.00 50 356 182.00 15.33USD UBS (LUX) EQUITY SICAV - EM HI DIV (USD)-I-X-DIST 666 050.00 64 280 485.50 19.58USD UBS (LUX) EQUITY SICAV - ASIA HI DIV (USD)-I-X-DIST 638 142.00 63 118 625.22 19.22USD UBS (LUX) EQUITY SICAV - GL HI DIV (USD)-I-X-DIST 175 750.00 18 413 327.50 5.61Total Luxembourg 226 708 881.22 69.04
Total Investment certificates, open end 321 199 590.07 97.80
Total UCITS/Other UCIs in accordance with Article 41 (1) e) of the Luxembourg law of 17 December 2010 321 199 590.07 97.80
Derivative instruments listed on an official stock exchange
Cash at banks, deposits on demand and deposit accounts and other liquid assets 4 945 074.59 1.51Other assets and liabilities -1 230 673.92 -0.37
Total net assets 328 397 851.37 100.00
Description Quantity/ Valuation in USD as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1)
The notes are an integral part of the fi nancial statements. 81
UBS (Lux) Key Selection SICAV – EUR Bonds (EUR)Annual Report as of 30 September 2013
UBS (Lux) Key Selection SICAV – EUR Bonds (EUR)
Three-year comparison
ISIN 30.9.2013 30.9.2012 30.9.2011Net assets in EUR 12 723 860.78 15 827 999.99 16 711 959.90Class P-acc LU0235997086Shares outstanding 66 989.0130 88 656.3490 106 895.8490Net asset value per share in EUR 127.39 121.73 109.97Issue and redemption price per share in EUR1 127.39 121.73 109.97Class P-dist LU0236485982Shares outstanding 40 124.5160 49 152.2460 52 115.1810Net asset value per share in EUR 104.42 102.45 95.10Issue and redemption price per share in EUR1 104.42 102.45 95.10
Benchmark:Barclays Capital Euro Aggregate 500mio+ EUR 4.0% 8.1% 0.4%
Historical performance is no indicator of current or future performance.The performance data does not take account of any commissions and costs charged when subscribing and redeeming shares.The performance data were not audited.
Report of the Portfolio Manager
In the reporting year from 1 October 2012 to 30 September 2013, central bank intervention and politics remained the overriding drivers of markets. After six consecutive quarters of negative growth, the Eurozone finally began to show signs that it was emerging from its deep and prolonged recession. There has been progress on fiscal policy in terms of narrowing deficits and implementing structural reforms. The risk going forward is the ability of governments to implement credible reforms which kick start growth, as opposed to reliance on monetary policy. A further challenge for policy makers is to manage the exit from the very loose monetary policy in a smooth fashion without derailing the economic recovery.
The subfund posted a strong return in the reporting year and outperformed its benchmark, the Barclays Capital Euro Aggregate 500mio+. The yield curve strategy detracted, however this was more than offset by tactical positioning in peripheral sovereign, collateralized and corporate bonds.
Structure of the Securities Portfolio
Geographical Breakdown as a % of net assetsItaly 16.25Germany 15.27France 12.94Spain 12.52Belgium 5.86Netherlands 5.66Supranationals 4.91Ireland 4.13United States 3.29Sweden 2.73Australia 2.67Norway 2.30Austria 2.20Luxembourg 1.40United Kingdom 1.39Canada 1.26Switzerland 0.94Belarus 0.56Total 96.28
Economic Breakdown as a % of net assetsCountries & central governments 55.10Banks & credit institutions 17.21Mortgage & funding institutions 5.78Supranational organisations 4.91Finance & holding companies 3.26Energy & water supply 2.00Cantons, federal states 1.54Food & soft drinks 1.43Tobacco & alcohol 1.28Petroleum 1.27Mechanical engineering & industrial equipment 1.26Insurance 1.24Total 96.28
82 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – EUR Bonds (EUR)Annual Report as of 30 September 2013
Statement of Net Assets EURAssets 30.9.2013Investments in securities, cost 11 879 782.04Investments in securities, unrealized appreciation (depreciation) 370 505.57Total investments in securities (Note 1) 12 250 287.61Cash at banks, deposits on demand and deposit accounts 233 183.38Other liquid assets (Margins) 3 180.00Receivable on securities sales (Note 1) 229 924.15Interest receivable on securities 169 385.43Interest receivable on liquid assets 77.11Unrealized gain (loss) on financial futures (Note 1) 860.00Unrealized gain (loss) on forward foreign exchange contracts (Note 1) 1 045.78Unrealized gain (loss) on swaps (Note 1) -2 503.87Total Assets 12 885 439.59
LiabilitiesInterest payable on bank overdraft -17.86Payable on securities purchases (Note 1) -149 955.00Payable on redemptions -4 696.20Provisions for flat fee (Note 2) -5 319.26Provisions for taxe d’abonnement (Note 3) -1 590.49Total provisions -6 909.75Total Liabilities -161 578.81
Net assets at the end of the financial year 12 723 860.78
Statement of Operations EURIncome 1.10.2012-30.9.2013Interest on liquid assets 956.39Interest on securities 456 472.04Interest received on swaps (Note 1) 78 761.26Income on securities lending (Note 16) 6 544.74Total income 542 734.43
ExpensesInterest paid on swaps (Note 1) -13 257.19Flat fee (Note 2) -150 562.28Taxe d’abonnement (Note 3) -7 101.14Cost on securities lending (Note 16) -3 088.88Interest on cash liquidity and bank overdraft -134.71Other expenses -2 883.34Total expenses -177 027.54
Net income (loss) on investments 365 706.89
Realized gain (loss) (Note 1)Realized gain (loss) on market-priced securities without options 98 034.63Realized gain (loss) on options -7 651.80Realized gain (loss) on yield-evaluated securities and money market instruments -355 564.03Realized gain (loss) on financial futures -39 254.32Realized gain (loss) on options, futures-styled -3 738.00Realized gain (loss) on forward foreign exchange contracts 183 736.82Realized gain (loss) on swaps -103 796.18Realized result on subscriptions/redemptions (Note 4) 5 581.47Total realized gain (loss) on investments -222 651.41Realized gain (loss) on foreign exchange -40 143.61Total realized gain (loss) -262 795.02
Net realized gain (loss) of the financial year 102 911.87
Changes in unrealized appreciation (depreciation) (Note 1)Unrealized appreciation (depreciation) on market-priced securities without options 511 765.88Unrealized appreciation (depreciation) on financial futures 9 483.20Unrealized appreciation (depreciation) on forward foreign exchange contracts -82 139.62Unrealized appreciation (depreciation) on swaps 158 345.05Total changes in unrealized appreciation (depreciation) 597 454.51
Net increase (decrease) in net assets as a result of operations 700 366.38
The notes are an integral part of the fi nancial statements. 83
UBS (Lux) Key Selection SICAV – EUR Bonds (EUR)Annual Report as of 30 September 2013
Statement of Changes in Net Assets EUR 1.10.2012-30.9.2013Net assets at the beginning of the financial year 15 827 999.99Subscriptions 1 703 617.51Redemptions -5 373 529.24Total net subscriptions (redemptions) -3 669 911.73Dividend paid -134 593.86Net income (loss) on investments 365 706.89Total realized gain (loss) -262 795.02Total changes in unrealized appreciation (depreciation) 597 454.51Net increase (decrease) in net assets as a result of operations 700 366.38Net assets at the end of the financial year 12 723 860.78
Changes in the Number of Shares outstanding
1.10.2012-30.9.2013Class P-accNumber of shares outstanding at the beginning of the financial year 88 656.3490Number of shares issued 8 279.0860Number of shares redeemed -29 946.4220Number of shares outstanding at the end of the financial year 66 989.0130Class P-distNumber of shares outstanding at the beginning of the financial year 49 152.2460Number of shares issued 6 355.4700Number of shares redeemed -15 383.2000Number of shares outstanding at the end of the financial year 40 124.5160
84 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – EUR Bonds (EUR)Annual Report as of 30 September 2013
Statement of Investments in Securities and other Net Assets as of 30 September 2013
Description Quantity/ Valuation in EUR as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1)
Transferable securities and money market instruments listed on an official stock exchange
Description Quantity/ Valuation in EUR as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1)
86 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – EUR Bonds (EUR)Annual Report as of 30 September 2013
Cash at banks, deposits on demand and deposit accounts and other liquid assets 236 363.38 1.85Other assets and liabilities 237 807.88 1.87
Total net assets 12 723 860.78 100.00
Description Quantity/ Valuation in EUR as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1)
The notes are an integral part of the fi nancial statements. 87
UBS (Lux) Key Selection SICAV – European Core Equities (EUR)Annual Report as of 30 September 2013
Three-year comparison
ISIN 30.9.2013 30.9.2012 30.9.2011Net assets in EUR 343 647 112.22 424 050 842.21 178 093 391.51Class I-B-acc1 LU0421770834Shares outstanding - - 292 843.6530Net asset value per share in EUR - - 91.23Issue and redemption price per share in EUR2 - - 91.23Class K-1-acc LU0421769158Shares outstanding 19.1000 20.0000 20.2000Net asset value per share in EUR 3 444 301.51 3 007 416.93 2 378 022.84Issue and redemption price per share in EUR2 3 444 301.51 3 007 416.93 2 378 022.84Class P-acc LU0153925689Shares outstanding 4 019 537.4780 5 445 214.4640 8 168 095.0400Net asset value per share in EUR 15.60 13.76 10.98Issue and redemption price per share in EUR2 15.60 13.76 10.98Class U-X-acc LU0421771568Shares outstanding 17 244.7370 26 829.4950 1 620.0000Net asset value per share in EUR 12 475.73 10 771.59 8 423.34Issue and redemption price per share in EUR2 12 475.73 10 771.59 8 423.34
1 The share class I-B-acc was in circulation until 15.2.20122 See note 1
Historical performance is no indicator of current or future performance.The performance data does not take account of any commissions and costs charged when subscribing and redeeming shares.The performance data were not audited.
UBS (Lux) Key Selection SICAV– European Core Equities (EUR)
88 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – European Core Equities (EUR)Annual Report as of 30 September 2013
Report of the Portfolio Manager
European equities generated strong returns in the reporting year from 1 October 2012 to 30 September 2013. A statement from Mario Draghi, European Central Bank (ECB) President, to do “whatever it takes” to save the Euro in July 2012 has gone a long way to support the Euro and investor sentiment more generally. Despite this rally, the market is attractively valued and offers wide stock selection opportunities.
The subfund underperformed its benchmark, the MSCI Europe (r). Overweights in PGS and Saipem detracted value but we retain confidence in their long-term fundamentals. Positions in Imperial Tobacco and SAP cost performance, however both companies offer a strong product range and cash flows. Our positions in Lloyds and chipmaker Infineon added value after shares rose strongly in the reporting year.
Structure of the Securities Portfolio
Geographical Breakdown as a % of net assetsUnited Kingdom 35.88Switzerland 17.67Germany 12.24France 9.33Ireland 5.66Sweden 5.64Norway 5.44Netherlands 3.75Finland 1.62Italy 1.03Belgium 0.74Luxembourg 0.52Total 99.52
Economic Breakdown as a % of net assetsBanks & credit institutions 13.14Petroleum 11.75Pharmaceuticals, cosmetics & medical products 9.10Tobacco & alcohol 8.41Insurance 6.77Vehicles 4.95Food & soft drinks 4.57Textiles, garments & leather goods 3.94Chemicals 3.66Internet, software & IT services 3.54Energy & water supply 3.50Investment funds & pension foundations 3.25Mechanical engineering & industrial equipment 3.13Telecommunications 3.11Biotechnology 2.93Finance & holding companies 2.35Watches & jewellery 2.23Lodging, catering & leisure 2.19Electronics & semiconductors 1.92Non-ferrous metals 1.73Miscellaneous trading companies 1.18Aerospace industry 1.18Electrical devices & components 0.99Total 99.52
The notes are an integral part of the fi nancial statements. 89
UBS (Lux) Key Selection SICAV – European Core Equities (EUR)Annual Report as of 30 September 2013
Statement of Net Assets EURAssets 30.9.2013Investments in securities, cost 299 299 881.01Investments in securities, unrealized appreciation (depreciation) 42 718 754.68Total investments in securities (Note 1) 342 018 635.69Cash at banks, deposits on demand and deposit accounts 1 361 850.11Receivable on securities sales (Note 1) 540 589.21Receivable on subscriptions 79.86Receivable on dividends 466 031.57Other receivables 68 577.15Total Assets 344 455 763.59
LiabilitiesPayable on securities purchases (Note 1) -460 733.81Payable on redemptions -243 754.19Provisions for flat fee (Note 2) -82 833.46Provisions for taxe d’abonnement (Note 3) -21 329.91Total provisions -104 163.37Total Liabilities -808 651.37
Net assets at the end of the financial year 343 647 112.22
Statement of Operations EURIncome 1.10.2012-30.9.2013Interest on liquid assets 1 472.96Dividends (Note 1) 10 499 273.92Income on securities lending (Note 16) 513 185.55Other income 2.37Total income 11 013 934.80
ExpensesFlat fee (Note 2) -2 133 899.51Taxe d’abonnement (Note 3) -89 816.23Cost on securities lending (Note 16) -159 427.67Interest on cash liquidity and bank overdraft -180.91Total expenses -2 383 324.32
Net income (loss) on investments 8 630 610.48
Realized gain (loss) (Note 1)Realized gain (loss) on market-priced securities without options 34 250 414.57Realized gain (loss) on financial futures 55 770.00Realized gain (loss) on forward foreign exchange contracts -179 101.38Realized result on subscriptions/redemptions (Note 4) 140 059.46Total realized gain (loss) on investments 34 267 142.65Realized gain (loss) on foreign exchange 227 745.62Total realized gain (loss) 34 494 888.27
Net realized gain (loss) of the financial year 43 125 498.75
Changes in unrealized appreciation (depreciation) (Note 1)Unrealized appreciation (depreciation) on market-priced securities without options 13 759 515.60Total changes in unrealized appreciation (depreciation) 13 759 515.60
Net increase (decrease) in net assets as a result of operations 56 885 014.35
90 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – European Core Equities (EUR)Annual Report as of 30 September 2013
Statement of Changes in Net Assets EUR 1.10.2012-30.9.2013Net assets at the beginning of the financial year 424 050 842.21Subscriptions 8 885 929.63Redemptions -146 174 673.97Total net subscriptions (redemptions) -137 288 744.34Net income (loss) on investments 8 630 610.48Total realized gain (loss) 34 494 888.27Total changes in unrealized appreciation (depreciation) 13 759 515.60Net increase (decrease) in net assets as a result of operations 56 885 014.35Net assets at the end of the financial year 343 647 112.22
Changes in the Number of Shares outstanding
1.10.2012-30.9.2013Class K-1-accNumber of shares outstanding at the beginning of the financial year 20.0000Number of shares issued 0.0000Number of shares redeemed -0.9000Number of shares outstanding at the end of the financial year 19.1000Class P-accNumber of shares outstanding at the beginning of the financial year 5 445 214.4640Number of shares issued 93 552.7030Number of shares redeemed -1 519 229.6890Number of shares outstanding at the end of the financial year 4 019 537.4780Class U-X-accNumber of shares outstanding at the beginning of the financial year 26 829.4950Number of shares issued 615.0000Number of shares redeemed -10 199.7580Number of shares outstanding at the end of the financial year 17 244.7370
The notes are an integral part of the fi nancial statements. 91
UBS (Lux) Key Selection SICAV – European Core Equities (EUR)Annual Report as of 30 September 2013
Statement of Investments in Securities and other Net Assets as of 30 September 2013
Description Quantity/ Valuation in EUR as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1)
Transferable securities and money market instruments listed on an official stock exchange
Total Investment certificates, open end 11 168 760.71 3.25
Total UCITS/Other UCIs in accordance with Article 41 (1) e) of the Luxembourg law of 17 December 2010 11 168 760.71 3.25
Total investments in securities 342 018 635.69 99.52
Cash at banks, deposits on demand and deposit accounts and other liquid assets 1 361 850.11 0.40Other assets and liabilities 266 626.42 0.08
Total net assets 343 647 112.22 100.00
Description Quantity/ Valuation in EUR as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1)
The notes are an integral part of the fi nancial statements. 93
UBS (Lux) Key Selection SICAV – Global Allocation (CHF)Annual Report as of 30 September 2013
Three-year comparison
ISIN 30.9.2013 30.9.2012 30.9.2011Net assets in CHF 424 198 375.62 447 761 777.99 481 980 042.71Class P-acc LU0197216715Shares outstanding 38 112 390.6650 44 669 869.0990 53 412 488.1670Net asset value per share in CHF 11.13 10.02 9.02Issue and redemption price per share in CHF1 11.13 10.02 9.02
Historical performance is no indicator of current or future performance.The performance data does not take account of any commissions and costs charged when subscribing and redeeming shares.The performance data were not audited.
1 Please see the Appendix for the composition of the Customized Benchmark.
UBS (Lux) Key Selection SICAV– Global Allocation (CHF)
Report of the Portfolio Manager
In the reporting year from 1 October 2012 to 30 September 2013, the last three months of 2012 were generally benign towards risky assets. The market environment changed in 2013 with performance across emerging markets equity and debt starting to deteriorate and culminating in a May sell-off. At the same time, global government bonds suffered amidst the prospect of better global growth and higher interest rate expectations. High yield bonds were positive over the reporting year but could not recover to the April peaks until the end of Q3. Developed equities presented the most rewarding opportunities despite participating strongly in the May sell-off. Some of the European equities outpaced the US markets. Tail risks like the Middle East conflict, the Eurozone crisis, monetary policy errors, GDP growth disappointments and the China hard landing left markets largely untroubled in the reporting year ending September 2013.
The subfund posted positive returns. It benefits from its neutral to overweight stance in developed equities and a short to neutral approach to duration. This allowed us to navigate well through the difficult second quarter and to finish the reporting year with a strong result.
Structure of the Securities Portfolio
Geographical Breakdown as a % of net assetsLuxembourg 68.30Italy 6.13Germany 5.45Ireland 5.41Australia 2.27Japan 1.38United States 0.92Supranationals 0.64United Kingdom 0.60Canada 0.36Total 91.46
Economic Breakdown as a % of net assetsInvestment funds & pension foundations 73.72Countries & central governments 14.32Public, non-profit institutions 1.47Cantons, federal states 0.69Supranational organisations 0.64Banks & credit institutions 0.29Finance & holding companies 0.23Miscellaneous services 0.10Total 91.46
94 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Global Allocation (CHF)Annual Report as of 30 September 2013
Statement of Net Assets CHFAssets 30.9.2013Investments in securities, cost 349 350 048.19Investments in securities, unrealized appreciation (depreciation) 38 670 085.65Total investments in securities (Note 1) 388 020 133.84Cash at banks, deposits on demand and deposit accounts 24 709 373.86Other liquid assets (Margins) 6 612 345.49Receivable on subscriptions 77 794.33Interest receivable on securities 727 082.74Other receivables 38 704.05Unrealized gain (loss) on financial futures (Note 1) 591 358.53Unrealized gain (loss) on forward foreign exchange contracts (Note 1) 3 805 618.87Unrealized gain (loss) on swaps (Note 1) 1 227 817.12Total Assets 425 810 228.83
LiabilitiesPayable on redemptions -1 235 472.59Provisions for flat fee (Note 2) -359 575.25Provisions for taxe d’abonnement (Note 3) -16 805.37Total provisions -376 380.62Total Liabilities -1 611 853.21
Net assets at the end of the financial year 424 198 375.62
Statement of Operations CHFIncome 1.10.2012-30.9.2013Interest on liquid assets 52 092.94Interest on securities 1 670 328.51Dividends (Note 1) 36 998.55Interest received on swaps (Note 1) 1 052 462.88Income on securities lending (Note 16) 25 873.31Other income 32 493.88Total income 2 870 250.07
ExpensesInterest paid on swaps (Note 1) -41 448.34Flat fee (Note 2) -9 020 270.09Taxe d’abonnement (Note 3) -59 750.39Cost on securities lending (Note 16) -11 942.00Interest on cash liquidity and bank overdraft -9 095.82Total expenses -9 142 506.64
Net income (loss) on investments -6 272 256.57
Realized gain (loss) (Note 1)Realized gain (loss) on market-priced securities without options 22 644 422.50Realized gain (loss) on options -3 329 473.73Realized gain (loss) on financial futures 11 318 881.56Realized gain (loss) on forward foreign exchange contracts 10 613 789.65Realized gain (loss) on swaps -618 960.83Realized result on subscriptions/redemptions (Note 4) 47 348.33Total realized gain (loss) on investments 40 676 007.48Realized gain (loss) on foreign exchange 2 975 426.50Total realized gain (loss) 43 651 433.98
Net realized gain (loss) of the financial year 37 379 177.41
Changes in unrealized appreciation (depreciation) (Note 1)Unrealized appreciation (depreciation) on market-priced securities without options 5 975 262.86Unrealized appreciation (depreciation) on options -702 609.09Unrealized appreciation (depreciation) on yield-evaluated securities and money market instruments 1 677.85Unrealized appreciation (depreciation) on financial futures 221 302.32Unrealized appreciation (depreciation) on forward foreign exchange contracts 3 331 069.66Unrealized appreciation (depreciation) on swaps 215 982.89Total changes in unrealized appreciation (depreciation) 9 042 686.49
Net increase (decrease) in net assets as a result of operations 46 421 863.90
The notes are an integral part of the fi nancial statements. 95
UBS (Lux) Key Selection SICAV – Global Allocation (CHF)Annual Report as of 30 September 2013
Statement of Changes in Net Assets CHF 1.10.2012-30.9.2013Net assets at the beginning of the financial year 447 761 777.99Subscriptions 18 871 113.26Redemptions -88 856 379.53Total net subscriptions (redemptions) -69 985 266.27Net income (loss) on investments -6 272 256.57Total realized gain (loss) 43 651 433.98Total changes in unrealized appreciation (depreciation) 9 042 686.49Net increase (decrease) in net assets as a result of operations 46 421 863.90Net assets at the end of the financial year 424 198 375.62
Changes in the Number of Shares outstanding
1.10.2012-30.9.2013Class P-accNumber of shares outstanding at the beginning of the financial year 44 669 869.0990Number of shares issued 1 747 642.2650Number of shares redeemed -8 305 120.6990Number of shares outstanding at the end of the financial year 38 112 390.6650
96 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Global Allocation (CHF)Annual Report as of 30 September 2013
Statement of Investments in Securities and other Net Assets as of 30 September 2013
Description Quantity/ Valuation in CHF as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1)
Transferable securities and money market instruments listed on an official stock exchange
GBP UNITED KINGDOM OF GREAT BRITAIN & N IRL 4.50000% 08-07.03.19 150 000.00 252 115.84 0.06GBP UNITED KINGDOM OF GREAT BRITAIN & N IRL 4.25000% 10-07.12.40 1 150 000.00 1 919 752.95 0.45Total GBP 2 171 868.79 0.51
JPY
JPY EUROPEAN INVESTMENT BANK 1.40000% 05-20.06.17 120 000 000.00 1 153 380.85 0.27JPY JAPAN 1.70000% 06-20.12.16 240 000 000.00 2 321 694.89 0.55JPY JAPAN 1.80000% 12-20.12.31 60 000 000.00 580 880.98 0.14JPY JAPAN 2.10000% 06-20.12.26 230 000 000.00 2 419 698.73 0.57JPY JAPAN FINANCE ORG FOR MUNI 2.00000% 06-09.05.16 50 000 000.00 483 629.30 0.11Total JPY 6 959 284.75 1.64
AUD NEW SOUTH WALES TREASURY CORP 4.00000% 13-20.04.23 2 600 000.00 2 108 766.57 0.50AUD TASMANIAN PUBLIC FINANCE 5.50000% 10-23.06.14 500 000.00 431 535.97 0.10Total AUD 2 540 302.54 0.60
Total Notes, fixed rate 2 540 302.54 0.60
Treasury notes, fixed rate
USD
USD AMERICA, UNITED STATES OF 3.87500% 10-15.08.40 300 000.00 282 676.96 0.07USD AMERICA, UNITED STATES OF 2.62500% 10-15.08.20 400 000.00 377 496.16 0.09USD AMERICA, UNITED STATES OF 1.25000% 10-30.09.15 1 400 000.00 1 289 291.59 0.30USD AMERICA, UNITED STATES OF 1.87500% 10-30.09.17 1 500 000.00 1 399 609.45 0.33Total USD 3 349 074.16 0.79
Total Treasury notes, fixed rate 3 349 074.16 0.79
Total Transferable securities and money market instruments listed on an official stock exchange 74 305 802.78 17.51
The notes are an integral part of the fi nancial statements. 97
UBS (Lux) Key Selection SICAV – Global Allocation (CHF)Annual Report as of 30 September 2013
UCITS/Other UCIs in accordance with Article 41 (1) e) of the Luxembourg law of 17 December 2010
Total Options on indices, classic-styled 995 826.41 0.23
Total Derivative instruments listed on an official stock exchange 995 826.41 0.23
Total investments in securities 388 020 133.84 91.46
Derivative instruments
Derivative instruments listed on an official stock exchange
Financial Futures on bonds
GBP LONG GILT FUTURE 27.12.13 65.00 158 954.37 0.04USD US 10YR TREASURY NOTE FUTURE 19.12.13 150.00 317 901.07 0.07EUR EURO-BUND FUTURE 06.12.13 12.00 34 811.64 0.01USD US 2YR TREASURY NOTE FUTURE 31.12.13 -132.00 -67 141.28 -0.02USD US ULTRA LONG BOND (CBT) FUTURE 19.12.13 45.00 122 073.75 0.03Total Financial Futures on bonds 566 599.55 0.13
Financial Futures on Indices
CHF SWISS MARKET INDEX FUTURE 20.12.13 -34.00 -10 200.00 0.00EUR AMSTERDAM EXCHANGE INDEX FUTURE 18.10.13 29.00 -31 592.42 -0.01EUR DAX INDEX FUTURE 20.12.13 6.00 -2 019.66 0.00USD MINI MSCI EMERGING MARKETS INDEX FUTURE 20.12.13 177.00 -446 449.75 -0.11CAD S&P/TSX 60 INDEX FUTURE 19.12.13 66.00 32 513.94 0.01EUR CAC 40 INDEX FUTURE 18.10.13 -93.00 -13 091.09 0.00USD NASDAQ 100 E-MINI FUTURE 20.12.13 -78.00 -67 851.30 -0.02GBP FTSE 100 INDEX FUTURE 20.12.13 -168.00 333 815.00 0.08SGD MSCI SINGAPORE INDEX FUTURE 30.10.13 23.00 -16 243.71 0.00AUD SPI 200 INDEX FUTURE 19.12.13 -254.00 61 290.87 0.01JPY NIKKEI 225 (SGX) INDEX FUTURE 12.12.13 425.00 493 638.79 0.12USD S&P500 EMINI FUTURE 20.12.13 413.00 -315 569.69 -0.07EUR EURO STOXX 50 INDEX FUTURE 20.12.13 213.00 6 518.00 0.00Total Financial Futures on Indices 24 758.98 0.01
Total Derivative instruments listed on an official stock exchange 591 358.53 0.14
Description Quantity/ Valuation in CHF as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1)
98 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Global Allocation (CHF)Annual Report as of 30 September 2013
Derivative instruments not listed on an official stock exchange and not traded on another regulated market
Cash at banks, deposits on demand and deposit accounts and other liquid assets 31 321 719.35 7.39Other assets and liabilities -768 272.09 -0.18
Total net assets 424 198 375.62 100.00
Description Quantity/ Valuation in CHF as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1)
The notes are an integral part of the fi nancial statements. 99
UBS (Lux) Key Selection SICAV – Global Allocation (EUR)Annual Report as of 30 September 2013
UBS (Lux) Key Selection SICAV– Global Allocation (EUR)
Three-year comparison
ISIN 30.9.2013 30.9.2012 30.9.2011Net assets in EUR 844 137 815.91 821 157 640.27 825 780 061.76Class (CAD hedged) P-acc LU0218832045Shares outstanding 2 237 975.8260 2 237 111.0890 2 889 655.1420Net asset value per share in CAD 10.96 9.74 8.65Issue and redemption price per share in CAD1 10.96 9.74 8.65Class (GBP hedged) P-acc2 LU0678606244Shares outstanding 4 099 918.1250 4 611 613.4690 -Net asset value per share in GBP 12.29 10.97 -Issue and redemption price per share in GBP1 12.29 10.97 -Class (SGD hedged) P-acc LU0287180474Shares outstanding 2 869 201.5240 3 826 763.9680 4 672 949.4050Net asset value per share in SGD 9.35 8.37 7.48Issue and redemption price per share in SGD1 9.35 8.37 7.48Class I-B-acc3 LU0423399897Shares outstanding 463 908.9150 - -Net asset value per share in EUR 99.98 - -Issue and redemption price per share in EUR1 99.98 - -Class N-acc4 LU0423397842Shares outstanding 34 657.0450 2 326.2100 -Net asset value per share in EUR 118.94 107.30 -Issue and redemption price per share in EUR1 118.94 107.30 -Class P-acc LU0197216558Shares outstanding 57 984 834.9870 66 541 520.5550 81 337 961.2630Net asset value per share in EUR 12.05 10.82 9.69Issue and redemption price per share in EUR1 12.05 10.82 9.69Class Q-acc LU0423398907Shares outstanding 9 660.3740 0.0150 5.7070Net asset value per share in EUR 127.60 112.00 100.04Issue and redemption price per share in EUR1 127.60 112.00 100.04
Benchmark:UBS Cust. Benchmark Global Allocation (CAD)1 CAD - - -2.6%UBS Cust. Benchmark Global Allocation (GBP)1 GBP - - -UBS Cust. Benchmark Global Allocation (SGD)1 SGD - - -3.3%UBS Cust. Benchmark Global Allocation (EUR)1 EUR 12.1% 14.6% -2.8%
Historical performance is no indicator of current or future performance.The performance data does not take account of any commissions and costs charged when subscribing and redeeming shares.The performance data were not audited.
1 Please see the Appendix for the composition of the Customized Benchmark.
100 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Global Allocation (EUR)Annual Report as of 30 September 2013
Report of the Portfolio Manager
In the reporting year from 1 October 2012 to 30 September 2013, the last three months of 2012 were generally benign towards risky assets. The market environment changed in 2013 with performance across emerging markets equity and debt starting to deteriorate and culminating in a May sell-off. At the same time, global government bonds suffered amidst the prospect of better global growth and higher interest rate expectations. High yield bonds were positive over the reporting year but could not recover to the April peaks until the end of Q3. Developed equities presented the most rewarding opportunities despite participating strongly in the May sell-off. Some of the European equities outpaced the US markets. Tail risks like the Middle East conflict, the Eurozone crisis, monetary policy errors, GDP growth disappointments and the China hard landing left markets largely untroubled in the reporting year ending September 2013.
The subfund posted positive returns. It benefits from its neutral to overweight stance in developed equities and a short to neutral approach to duration. This allowed us to navigate well through the difficult second quarter and to finish the reporting year with a strong result.
.
Structure of the Securities Portfolio
Geographical Breakdown as a % of net assetsUnited States 28.33United Kingdom 10.17Italy 8.25Germany 8.23Luxembourg 6.23France 4.37Australia 4.14Japan 3.70Switzerland 3.61Netherlands 2.98Ireland 2.70Belgium 2.47Canada 1.89Norway 1.36Sweden 0.91Hong Kong 0.87Supranationals 0.77Finland 0.72Spain 0.37Cayman Islands 0.35Israel 0.20Singapore 0.17Mexico 0.16United Arab Emirates 0.08Total 93.03
Economic Breakdown as a % of net assetsCountries & central governments 21.07Banks & credit institutions 12.23Investment funds & pension foundations 7.17Finance & holding companies 5.19Internet, software & IT services 4.60Petroleum 3.82Pharmaceuticals, cosmetics & medical products 3.30Telecommunications 3.22Insurance 2.32Food & soft drinks 2.20Retail trade, department stores 2.11Tobacco & alcohol 1.87Mortgage & funding institutions 1.77Textiles, garments & leather goods 1.61Mechanical engineering & industrial equipment 1.52Electronics & semiconductors 1.46Vehicles 1.42Biotechnology 1.37Public, non-profit institutions 1.33Energy & water supply 1.10Chemicals 0.94Computer hardware & network equipment providers 0.92Cantons, federal states 0.92Healthcare & social services 0.92Aerospace industry 0.89Miscellaneous consumer goods 0.87Lodging, catering & leisure 0.86Supranational organisations 0.77Miscellaneous unclassified companies 0.70Building industry & materials 0.65Miscellaneous trading companies 0.65Electrical devices & components 0.64Miscellaneous services 0.55Mining, coal & steel 0.48Non-ferrous metals 0.46Traffic & transportation 0.46Watches & jewellery 0.33Various capital goods 0.20Real Estate 0.14Total 93.03
The notes are an integral part of the fi nancial statements. 101
UBS (Lux) Key Selection SICAV – Global Allocation (EUR)Annual Report as of 30 September 2013
Statement of Net Assets EURAssets 30.9.2013Investments in securities, cost 765 020 122.70Investments in securities, unrealized appreciation (depreciation) 20 300 437.04Total investments in securities (Note 1) 785 320 559.74Cash at banks, deposits on demand and deposit accounts 42 098 491.19Other liquid assets (Margins) 8 675 023.60Receivable on securities sales (Note 1) 301 991.30Receivable on subscriptions 1 182 392.23Interest receivable on securities 2 206 217.96Interest receivable on liquid assets 11 087.27Receivable on dividends 506 356.09Other receivables 109 118.90Unrealized gain (loss) on financial futures (Note 1) 1 080 803.27Unrealized gain (loss) on forward foreign exchange contracts (Note 1) 821 793.00Unrealized gain (loss) on swaps (Note 1) 3 993 361.64Total Assets 846 307 196.19
LiabilitiesInterest payable on bank overdraft -688.33Payable on securities purchases (Note 1) -151 417.53Payable on redemptions -1 247 626.23Provisions for flat fee (Note 2) -674 795.64Provisions for taxe d’abonnement (Note 3) -94 852.55Total provisions -769 648.19Total Liabilities -2 169 380.28
Net assets at the end of the financial year 844 137 815.91
Statement of Operations EURIncome 1.10.2012-30.9.2013Interest on liquid assets 97 574.63Interest on securities 4 270 180.11Dividends (Note 1) 3 244 364.71Interest received on swaps (Note 1) 3 295 633.05Income on securities lending (Note 16) 208 256.63Other income 94 009.85Total income 11 210 018.98
ExpensesInterest paid on swaps (Note 1) -163 240.36Flat fee (Note 2) -16 469 308.76Taxe d’abonnement (Note 3) -237 472.81Cost on securities lending (Note 16) -76 543.64Interest on cash liquidity and bank overdraft -3 621.48Total expenses -16 950 187.05
Net income (loss) on investments -5 740 168.07
Realized gain (loss) (Note 1)Realized gain (loss) on market-priced securities without options 134 845 234.49Realized gain (loss) on options -5 930 467.24Realized gain (loss) on yield-evaluated securities and money market instruments 23 694.49Realized gain (loss) on financial futures 15 418 379.62Realized gain (loss) on forward foreign exchange contracts 27 282 762.18Realized gain (loss) on swaps -2 574 956.34Realized result on subscriptions/redemptions (Note 4) 238 682.46Total realized gain (loss) on investments 169 303 329.66Realized gain (loss) on foreign exchange 2 159 150.58Total realized gain (loss) 171 462 480.24
Net realized gain (loss) of the financial year 165 722 312.17
Changes in unrealized appreciation (depreciation) (Note 1)Unrealized appreciation (depreciation) on market-priced securities without options -84 967 095.96Unrealized appreciation (depreciation) on options -1 353 375.19Unrealized appreciation (depreciation) on yield-evaluated securities and money market instruments 57 333.01Unrealized appreciation (depreciation) on financial futures 402 298.44Unrealized appreciation (depreciation) on forward foreign exchange contracts -804 461.48Unrealized appreciation (depreciation) on swaps 1 975 999.90Total changes in unrealized appreciation (depreciation) -84 689 301.28
Net increase (decrease) in net assets as a result of operations 81 033 010.89
102 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Global Allocation (EUR)Annual Report as of 30 September 2013
Statement of Changes in Net Assets EUR 1.10.2012-30.9.2013Net assets at the beginning of the financial year 821 157 640.27Subscriptions 148 023 753.57Redemptions -206 076 588.82Total net subscriptions (redemptions) -58 052 835.25Net income (loss) on investments -5 740 168.07Total realized gain (loss) 171 462 480.24Total changes in unrealized appreciation (depreciation) -84 689 301.28Net increase (decrease) in net assets as a result of operations 81 033 010.89Net assets at the end of the financial year 844 137 815.91
Changes in the Number of Shares outstanding
1.10.2012-30.9.2013Class (CAD hedged) P-accNumber of shares outstanding at the beginning of the financial year 2 237 111.0890Number of shares issued 1 159 180.8390Number of shares redeemed -1 158 316.1020Number of shares outstanding at the end of the financial year 2 237 975.8260Class (GBP hedged) P-accNumber of shares outstanding at the beginning of the financial year 4 611 613.4690Number of shares issued 536 740.6820Number of shares redeemed -1 048 436.0260Number of shares outstanding at the end of the financial year 4 099 918.1250Class (SGD hedged) P-accNumber of shares outstanding at the beginning of the financial year 3 826 763.9680Number of shares issued 502 714.8410Number of shares redeemed -1 460 277.2850Number of shares outstanding at the end of the financial year 2 869 201.5240Class I-B-accNumber of shares outstanding at the beginning of the financial year 0.0000Number of shares issued 463 908.9160Number of shares redeemed -0.0010Number of shares outstanding at the end of the financial year 463 908.9150Class N-accNumber of shares outstanding at the beginning of the financial year 2 326.2100Number of shares issued 32 629.4810Number of shares redeemed -298.6460Number of shares outstanding at the end of the financial year 34 657.0450Class P-accNumber of shares outstanding at the beginning of the financial year 66 541 520.5550Number of shares issued 6 562 959.5430Number of shares redeemed -15 119 645.1110Number of shares outstanding at the end of the financial year 57 984 834.9870Class Q-accNumber of shares outstanding at the beginning of the financial year 0.0150Number of shares issued 12 904.9760Number of shares redeemed -3 244.6170Number of shares outstanding at the end of the financial year 9 660.3740
The notes are an integral part of the fi nancial statements. 103
UBS (Lux) Key Selection SICAV – Global Allocation (EUR)Annual Report as of 30 September 2013
Statement of Investments in Securities and other Net Assets as of 30 September 2013
Description Quantity/ Valuation in EUR as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1)
Transferable securities and money market instruments listed on an official stock exchange
Bearer shares
Australia
AUD WESTFIELD GROUP NPV STAPLED UNITS 149 700.00 1 138 511.88 0.13Total Australia 1 138 511.88 0.13
GBP ABERDEEN ASSET MGT ORD GBP0.10 361 361.00 1 636 702.09 0.19GBP ASSOCD BRIT FOODS ORD GBP0.0568 47 447.00 1 064 852.22 0.13GBP AVIVA ORD GBP0.25 815 878.00 3 872 974.46 0.46GBP BARCLAYS ORD GBP0.25 469 169.00 1 490 189.79 0.18GBP BG GROUP ORD GBP0.10 230 399.00 3 253 826.03 0.39GBP BP ORD USD0.25 558 670.00 2 894 618.16 0.34GBP BURBERRY GROUP ORD GBP0.0005 101 454.00 1 983 211.24 0.23GBP CENTRICA ORD GBP0.061728395 433 422.00 1 916 938.36 0.23GBP COMPASS GROUP ORD GBP0.10 242 303.00 2 463 913.54 0.29GBP DIAGEO ORD GBX28.935185 163 276.00 3 838 244.66 0.45GBP DIRECT LINE INSURA ORD GBP0.10 354 393.00 903 899.37 0.11GBP HSBC HLDGS ORD USD0.50(UK REG) 971 092.00 7 776 672.89 0.92GBP IMPERIAL TOBACCO ORD GBP0.10 232 508.00 6 361 386.93 0.75GBP INTERTEK GROUP ORD GBP0.01 35 558.00 1 405 906.82 0.17GBP LLOYDS BANKING GROUP PLC ORD GBP0.25 4 281 133.00 3 768 480.31 0.45GBP PREMIER OIL ORD GBP0.125 292 811.00 1 140 213.37 0.14GBP PRUDENTIAL ORD GBP0.05 170 771.00 2 351 457.82 0.28GBP RIO TINTO ORD GBP0.10 107 876.00 3 901 312.41 0.46GBP SABMILLER ORD USD0.10 84 083.00 3 162 054.94 0.37GBP SAGE GROUP GBP0.01051948 389 889.00 1 538 294.12 0.18GBP STANDARD CHARTERED ORD USD0.50 129 657.00 2 297 199.83 0.27GBP TULLOW OIL ORD GBP0.10 149 687.00 1 833 714.79 0.22GBP WEIR GROUP ORD GBP0.125 24 800.00 691 282.16 0.08Total United Kingdom 61 547 346.31 7.29
United States
USD ABBVIE INC COM USD0.01 78 100.00 2 580 735.79 0.31USD ALLERGAN INC COM USD0.01 30 000.00 2 004 580.21 0.24USD AMAZON COM INC COM USD0.01 14 200.00 3 279 642.45 0.39USD AMETEK INC COM USD0.01 63 100.00 2 145 208.88 0.25USD APOLLO GROUP INC CLASS’A’COM NPV 93 900.00 1 443 548.18 0.17USD APPLE INC COM NPV 18 600.00 6 550 844.01 0.78USD BANKUNITED INC COM USD0.01 61 300.00 1 412 438.22 0.17USD BIOGEN IDEC INC COM STK USD0.0005 14 500.00 2 578 967.98 0.31USD BOEING CO COM USD5 36 800.00 3 194 326.45 0.38USD CARDINAL HEALTH INC COM 43 700.00 1 683 562.96 0.20USD CELGENE CORP COM USD0.01 16 700.00 1 899 036.68 0.22USD CHUBB CORP COM 25 400.00 1 674 881.99 0.20USD COLGATE-PALMOLIVE COM USD1 30 900.00 1 353 651.24 0.16USD CONCHO RES INC COM STK USD0.001 28 000.00 2 250 714.73 0.27USD CROWN CASTLE INTL CORP COM 44 500.00 2 400 794.15 0.28USD CUMMINS INC COM 20 100.00 1 972 952.39 0.23USD DANAHER CORP COM USD0.01 48 100.00 2 463 186.20 0.29USD DISCOVER FINL SVCS COM STK USD0.01 53 400.00 1 993 747.28 0.24USD DOLLAR GENERAL CP COM USD0.875 58 400.00 2 435 832.01 0.29USD EBAY INC COM USD0.001 95 600.00 3 940 105.64 0.47USD EOG RESOURCES INC COM USD0.01 8 900.00 1 112 984.89 0.13USD ESTEE LAUDER COS CLASS’A’COM USD0.01 51 900.00 2 680 020.68 0.32USD FACEBOOK INC COM USD0.000006 CL ‘A’ 150 700.00 5 593 150.37 0.66USD FMC TECHNOLOGIES INC COM 27 100.00 1 109 505.41 0.13USD GEN ELEC CO COM USD0.06 136 500.00 2 409 031.14 0.29USD GILEAD SCIENCES COM USD0.001 76 700.00 3 560 616.11 0.42USD GOOGLE INC COM USD0.001 CL’A’ 14 770.00 9 557 264.21 1.13USD HAIN CELESTIAL GROUP INC COM 22 600.00 1 287 564.73 0.15USD HESS CORPORATION COM USD1 37 200.00 2 125 400.21 0.25USD HORMEL FOODS CORP COM 70 900.00 2 206 115.32 0.26USD INTUITIVE SURGICAL COM USD0.001 4 800.00 1 334 241.50 0.16USD KELLOGG CO COM USD0.25 62 700.00 2 720 327.26 0.32USD LAS VEGAS SANDS CORP COM 55 800.00 2 737 957.37 0.32USD LIBERTY GLOBAL INC USD0.01 A 23 600.00 1 383 415.21 0.16USD LOWE’S COS INC COM USD0.50 48 200.00 1 695 269.83 0.20USD MASTERCARD INC COM USD0.0001 CLASS ‘A’ 5 200.00 2 584 461.27 0.31USD MDU RES GROUP INC COM USD1 63 200.00 1 305 879.66 0.15USD MICRON TECHNOLOGY COM USD0.10 127 700.00 1 648 076.68 0.20USD MOHAWK INDS COM USD0.01 17 200.00 1 655 006.83 0.20USD MONSTER BEV CORP COM USD0.005 44 800.00 1 729 250.54 0.20USD MORGAN STANLEY COM STK USD0.01 131 400.00 2 616 060.28 0.31USD NETAPP INC COM USD0.001 39 800.00 1 253 112.70 0.15USD NIKE INC CLASS’B’COM NPV 60 500.00 3 246 570.38 0.38USD OCCIDENTAL PETRLM COM USD0.20 24 900.00 1 720 641.23 0.20USD OWENS CORNING COM STK USD0.01 74 000.00 2 076 253.09 0.25USD PNC FINL SVCS GROUP INC COM 32 700.00 1 750 168.06 0.21USD PRECISION CASTPART COM NPV 20 100.00 3 374 228.20 0.40USD PRICELINE.COM INC COM USD0.008 5 600.00 4 182 262.77 0.50USD PRINCIPAL FINL GP COM USD0.01 60 500.00 1 913 796.03 0.23USD PROCTER & GAMBLE COM NPV 48 400.00 2 702 734.09 0.32
Description Quantity/ Valuation in EUR as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1)
The notes are an integral part of the fi nancial statements. 105
UBS (Lux) Key Selection SICAV – Global Allocation (EUR)Annual Report as of 30 September 2013
USD PROGRESSIVE CP(OH) COM USD1 44 200.00 889 126.44 0.11USD PRUDENTIAL FINL INC COM 29 800.00 1 716 694.86 0.20USD QUALCOMM INC COM USD0.0001 66 200.00 3 294 228.20 0.39USD RALPH LAUREN CORP CLASS ‘A’ COM USD0.01 11 900.00 1 448 149.08 0.17USD REALOGY HLDGS CORP COM USD0.01 51 400.00 1 633 530.09 0.19USD ROYAL CARIBBEAN COM USD0.01 74 200.00 2 098 309.02 0.25USD SALESFORCE.COM INC COM USD0.001 86 800.00 3 328 621.14 0.39USD SCHLUMBERGER COM USD0.01 30 700.00 2 003 953.75 0.24USD SERVICENOW INC COM USD0.001 35 400.00 1 358 571.27 0.16USD SHERWIN-WILLIAMS COM USD1 17 300.00 2 328 307.91 0.28USD ST JUDE MED INC COM 44 400.00 1 759 403.10 0.21USD SYMANTEC CORP COM 113 100.00 2 067 908.99 0.24USD TERADATA CORP COM STK USD0.01 ‘WI’ 58 800.00 2 408 208.92 0.29USD THERMO FISHER SCIE COM USD1 44 900.00 3 056 576.66 0.36USD TIME WARNER CABLE USD0.01 27 400.00 2 258 959.11 0.27USD TIMKEN CO COM NPV 27 400.00 1 222 590.77 0.14USD UNION PACIFIC CORP COM USD2.50 17 600.00 2 019 712.63 0.24USD UNITEDHEALTH GRP COM USD0.01 82 900.00 4 385 527.28 0.52USD UTD TECHNOLOGIES COM USD1 36 400.00 2 899 307.80 0.34USD VIACOM INC NEW CL’B’ NON-VTG USD0.001 34 900.00 2 154 871.64 0.26USD VISA INC COM STK USD0.0001 22 100.00 3 119 942.38 0.37USD VMWARE INC COM STK USD0.01 CLASS ‘A’ 42 200.00 2 522 055.18 0.30USD WELLS FARGO & CO COM USD1 2/3 89 700.00 2 738 081.48 0.32USD WHIRLPOOL CORP COM 17 200.00 1 860 723.23 0.22USD XILINX INC COM USD0.01 44 600.00 1 543 941.20 0.18Total United States 180 647 425.62 21.40
Description Quantity/ Valuation in EUR as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1)
106 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Global Allocation (EUR)Annual Report as of 30 September 2013
Description Quantity/ Valuation in EUR as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1)
The notes are an integral part of the fi nancial statements. 107
UBS (Lux) Key Selection SICAV – Global Allocation (EUR)Annual Report as of 30 September 2013
Description Quantity/ Valuation in EUR as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1)
GBP
GBP UNITED KINGDOM OF GREAT BRITAIN & N IRL 4.50000% 08-07.03.19 550 000.00 755 225.52 0.09GBP UNITED KINGDOM OF GREAT BRITAIN & N IRL 4.25000% 10-07.12.40 2 600 000.00 3 545 895.61 0.42Total GBP 4 301 121.13 0.51
JPY
JPY EUROPEAN INVESTMENT BANK 1.40000% 05-20.06.17 320 000 000.00 2 512 734.26 0.30JPY JAPAN 1.70000% 06-20.12.16 250 000 000.00 1 975 781.92 0.23JPY JAPAN 1.80000% 12-20.12.31 100 000 000.00 790 935.38 0.09JPY JAPAN 2.10000% 06-20.12.26 500 000 000.00 4 297 427.48 0.51JPY JAPAN FINANCE ORG FOR MUNI 1.35000% 03-26.11.13 20 000 000.00 150 835.26 0.02JPY JAPAN FINANCE ORG FOR MUNI 2.00000% 06-09.05.16 230 000 000.00 1 817 504.64 0.21JPY JAPAN FINANCE ORG FOR MUNI 1.90000% 08-22.06.18 100 000 000.00 813 107.09 0.10Total JPY 12 358 326.03 1.46
USD AMERICA MOVIL SAB DE CV 3.12500% 12-16.07.22 1 000 000.00 679 982.27 0.08USD UNILEVER CAPITAL CORP 2.20000% 13-06.03.19 1 000 000.00 744 035.76 0.09Total USD 1 424 018.03 0.17
Total Bonds, fixed rate 6 129 609.36 0.72
Treasury notes, fixed rate
USD
USD AMERICA, UNITED STATES OF 3.87500% 10-15.08.40 850 000.00 654 324.49 0.08USD AMERICA, UNITED STATES OF 2.62500% 10-15.08.20 550 000.00 424 053.19 0.05
108 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Global Allocation (EUR)Annual Report as of 30 September 2013
Description Quantity/ Valuation in EUR as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1)
USD AMERICA, UNITED STATES OF 1.25000% 10-30.09.15 20 880 000.00 15 709 367.59 1.86USD AMERICA, UNITED STATES OF 1.87500% 10-30.09.17 2 700 000.00 2 058 185.28 0.24USD AMERICA, UNITED STATES OF 0.62500% 12-31.08.17 26 000 000.00 18 908 712.00 2.24Total USD 37 754 642.55 4.47
Total Treasury notes, fixed rate 37 754 642.55 4.47
Total Transferable securities and money market instruments traded on anotherregulated market 58 610 929.68 6.94
Other money market instruments in accordance with Article 41 (1) h)
Total Options on indices, classic-styled 1 972 534.13 0.23
Total Derivative instruments listed on an official stock exchange 1 972 534.13 0.23
Total investments in securities 785 320 559.74 93.03
Derivative instruments
Derivative instruments listed on an official stock exchange
Financial Futures on bonds
GBP LONG GILT FUTURE 27.12.13 145.00 289 689.14 0.03USD US 10YR TREASURY NOTE FUTURE 19.12.13 365.00 631 973.24 0.08EUR EURO-BUND FUTURE 06.12.13 28.00 66 360.00 0.01USD US 2YR TREASURY NOTE FUTURE 31.12.13 -181.00 -75 214.12 -0.01Total Financial Futures on bonds 912 808.26 0.11
Financial Futures on Indices
CHF SWISS MARKET INDEX FUTURE 20.12.13 -64.00 -15 685.79 0.00EUR AMSTERDAM EXCHANGE INDEX FUTURE 18.10.13 78.00 -69 420.00 -0.01EUR DAX INDEX FUTURE 20.12.13 19.00 -5 225.00 0.00USD MINI MSCI EMERGING MARKETS INDEX FUTURE 20.12.13 435.00 -896 383.11 -0.12CAD S&P/TSX 60 INDEX FUTURE 19.12.13 138.00 55 540.51 0.01EUR CAC 40 INDEX FUTURE 18.10.13 -167.00 -19 205.00 0.00USD NASDAQ 100 E-MINI FUTURE 20.12.13 -531.00 -377 366.38 -0.04GBP FTSE 100 INDEX FUTURE 20.12.13 -327.00 530 822.62 0.06
The notes are an integral part of the fi nancial statements. 109
UBS (Lux) Key Selection SICAV – Global Allocation (EUR)Annual Report as of 30 September 2013
Description Quantity/ Valuation in EUR as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1)
SGD MSCI SINGAPORE INDEX FUTURE 30.10.13 50.00 -28 849.11 0.00AUD SPI 200 INDEX FUTURE 19.12.13 129.00 -31 187.90 0.00JPY NIKKEI 225 (SGX) INDEX FUTURE 12.12.13 966.00 916 647.93 0.11USD S&P500 EMINI FUTURE 20.12.13 -144.00 90 156.24 0.01EUR EURO STOXX 50 INDEX FUTURE 20.12.13 726.00 18 150.00 0.00Total Financial Futures on Indices 167 995.01 0.02
Total Derivative instruments listed on an official stock exchange 1 080 803.27 0.13
Derivative instruments not listed on an official stock exchange and not traded on another regulated market
Cash at banks, deposits on demand and deposit accounts and other liquid assets 50 773 514.79 6.01Other assets and liabilities 2 147 783.47 0.26
Total net assets 844 137 815.91 100.00
Description Quantity/ Valuation in EUR as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1)
The notes are an integral part of the fi nancial statements. 111
UBS (Lux) Key Selection SICAV – Global Allocation (USD)Annual Report as of 30 September 2013
UBS (Lux) Key Selection SICAV – Global Allocation (USD)
Three-year comparison
ISIN 30.9.2013 30.9.2012 30.9.2011Net assets in USD 1 759 979 848.52 1 808 425 701.60 1 960 306 010.19Class (JPY) P-acc1 LU0953722104Shares outstanding 57 040.0000 - -Net asset value per share in JPY 9 961.00 - -Issue and redemption price per share in JPY2 9 961.00 - -Class I-A2-acc LU0423407823Shares outstanding 215 187.0300 110 757.0300 110 917.0300Net asset value per share in USD 108.81 98.49 86.21Issue and redemption price per share in USD2 108.81 98.49 86.21Class I-X-acc LU0423408631Shares outstanding 26 516.7380 35 791.3920 27 400.4090Net asset value per share in USD 131.00 117.74 102.35Issue and redemption price per share in USD2 131.00 117.74 102.35Class K-1-acc LU0423406858Shares outstanding 20.4000 18.0000 13.8000Net asset value per share in USD 7 226 655.94 6 568 056.60 5 779 433.20Issue and redemption price per share in USD2 7 226 655.94 6 568 056.60 5 779 433.20Class P-acc LU0197216392Shares outstanding 117 846 504.1020 136 184 845.1630 171 203 320.4080Net asset value per share in USD 13.41 12.30 10.91Issue and redemption price per share in USD2 13.41 12.30 10.91
Benchmark:UBS Cust. Global Securities Market Index (GSMI)1 JPY - - -UBS Cust. Global Securities Market Index (GSMI)1 USD 10.1% 15.6% -2.2%
Historical performance is no indicator of current or future performance.The performance data does not take account of any commissions and costs charged when subscribing and redeeming shares.The performance data were not audited.
1 Please see the Appendix for the composition of the Customized Benchmark.
112 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Global Allocation (USD)Annual Report as of 30 September 2013
Report of the Portfolio Manager
In the reporting year from 1 October 2012 to 30 September 2013, the last three months of 2012 were generally benign towards risky assets. The market environment changed in 2013 with performance across emerging markets equity and debt starting to deteriorate and culminating in a May sell-off. At the same time, global government bonds suffered amidst the prospect of better global growth and higher interest rate expectations. High yield bonds were positive over the reporting year but could not recover to the April peaks until the end of Q3. Developed equities presented the most rewarding opportunities despite participating strongly in the May sell-off. Some of the European equities outpaced the US markets. Tail risks like the Middle East conflict, the Eurozone crisis, monetary policy errors, GDP growth disappointments and the China hard landing left markets largely untroubled in the period ending September 2013.
The subfund posted positive returns. It benefits from its neutral to overweight stance in developed equities and a short to neutral approach to duration. This allowed us to navigate well through the difficult second quarter and to finish the reporting year with a strong result.
Structure of the Securities Portfolio
Geographical Breakdown as a % of net assetsLuxembourg 71.67Italy 6.14Ireland 5.51Germany 4.54Australia 2.22United States 2.15Japan 1.34Netherlands 0.85United Kingdom 0.83Canada 0.33Supranationals 0.19Total 95.77
Economic Breakdown as a % of net assetsInvestment funds & pension foundations 77.18Countries & central governments 15.80Public, non-profit institutions 1.45Cantons, federal states 0.66Finance & holding companies 0.24Supranational organisations 0.19Banks & credit institutions 0.15Miscellaneous services 0.10Total 95.77
The notes are an integral part of the fi nancial statements. 113
UBS (Lux) Key Selection SICAV – Global Allocation (USD)Annual Report as of 30 September 2013
Statement of Net Assets USDAssets 30.9.2013Investments in securities, cost 1 445 510 145.41Investments in securities, unrealized appreciation (depreciation) 240 081 245.68Total investments in securities (Note 1) 1 685 591 391.09Cash at banks, deposits on demand and deposit accounts 50 142 500.47Other liquid assets (Margins) 28 468 042.80Receivable on subscriptions 1 390 908.68Interest receivable on securities 3 145 055.80Interest receivable on liquid assets 17 974.29Other receivables 187 664.35Unrealized gain (loss) on financial futures (Note 1) 2 524 911.70Unrealized gain (loss) on forward foreign exchange contracts (Note 1) -13 875 779.47Unrealized gain (loss) on swaps (Note 1) 5 238 581.13Total Assets 1 762 831 250.84
LiabilitiesInterest payable on bank overdraft -424.93Payable on redemptions -1 378 500.11Provisions for flat fee (Note 2) -1 410 918.48Provisions for taxe d’abonnement (Note 3) -61 558.80Total provisions -1 472 477.28Total Liabilities -2 851 402.32
Net assets at the end of the financial year 1 759 979 848.52
Statement of Operations USDIncome 1.10.2012-30.9.2013Interest on liquid assets 164 955.33Interest on securities 6 864 672.54Dividends (Note 1) 153 873.54Interest received on swaps (Note 1) 4 353 186.10Income on securities lending (Note 16) 114 302.87Other income 129 872.50Total income 11 780 862.88
ExpensesInterest paid on swaps (Note 1) -161 625.00Flat fee (Note 2) -34 755 039.21Taxe d’abonnement (Note 3) -229 417.77Cost on securities lending (Note 16) -52 072.32Interest on cash liquidity and bank overdraft -22 490.78Total expenses -35 220 645.08
Net income (loss) on investments -23 439 782.20
Realized gain (loss) (Note 1)Realized gain (loss) on market-priced securities without options 125 360 475.55Realized gain (loss) on options -13 163 205.02Realized gain (loss) on financial futures 41 318 572.81Realized gain (loss) on forward foreign exchange contracts -11 128 084.84Realized gain (loss) on swaps -2 378 468.41Realized result on subscriptions/redemptions (Note 4) 304 563.49Total realized gain (loss) on investments 140 313 853.58Realized gain (loss) on foreign exchange 4 877 316.97Total realized gain (loss) 145 191 170.55
Net realized gain (loss) of the financial year 121 751 388.35
Changes in unrealized appreciation (depreciation) (Note 1)Unrealized appreciation (depreciation) on market-priced securities without options 50 587 400.07Unrealized appreciation (depreciation) on options -2 543 603.30Unrealized appreciation (depreciation) on yield-evaluated securities and money market instruments 2 783.28Unrealized appreciation (depreciation) on financial futures 1 053 579.89Unrealized appreciation (depreciation) on forward foreign exchange contracts -17 220 075.85Unrealized appreciation (depreciation) on swaps 1 037 115.02Total changes in unrealized appreciation (depreciation) 32 917 199.11
Net increase (decrease) in net assets as a result of operations 154 668 587.46
114 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Global Allocation (USD)Annual Report as of 30 September 2013
Statement of Changes in Net Assets USD 1.10.2012-30.9.2013Net assets at the beginning of the financial year 1 808 425 701.60Subscriptions 172 955 105.70Redemptions -376 069 546.24Total net subscriptions (redemptions) -203 114 440.54Net income (loss) on investments -23 439 782.20Total realized gain (loss) 145 191 170.55Total changes in unrealized appreciation (depreciation) 32 917 199.11Net increase (decrease) in net assets as a result of operations 154 668 587.46Net assets at the end of the financial year 1 759 979 848.52
Changes in the Number of Shares outstanding
1.10.2012-30.9.2013Class (JPY) P-accNumber of shares outstanding at the beginning of the financial year 0.0000Number of shares issued 57 040.0000Number of shares redeemed 0.0000Number of shares outstanding at the end of the financial year 57 040.0000Class I-A2-accNumber of shares outstanding at the beginning of the financial year 110 757.0300Number of shares issued 104 600.0000Number of shares redeemed -170.0000Number of shares outstanding at the end of the financial year 215 187.0300Class I-X-accNumber of shares outstanding at the beginning of the financial year 35 791.3920Number of shares issued 10 936.6710Number of shares redeemed -20 211.3250Number of shares outstanding at the end of the financial year 26 516.7380Class K-1-accNumber of shares outstanding at the beginning of the financial year 18.0000Number of shares issued 5.0000Number of shares redeemed -2.6000Number of shares outstanding at the end of the financial year 20.4000Class P-accNumber of shares outstanding at the beginning of the financial year 136 184 845.1630Number of shares issued 9 330 653.8890Number of shares redeemed -27 668 994.9500Number of shares outstanding at the end of the financial year 117 846 504.1020
The notes are an integral part of the fi nancial statements. 115
UBS (Lux) Key Selection SICAV – Global Allocation (USD)Annual Report as of 30 September 2013
Statement of Investments in Securities and other Net Assets as of 30 September 2013
Description Quantity/ Valuation in USD as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1)
Transferable securities and money market instruments listed on an official stock exchange
Medium term notes, fixed rate
GBP
GBP EUROPEAN INVESTMENT BANK 3.25000% 11-07.12.16 1 900 000.00 3 267 379.18 0.18Total GBP 3 267 379.18 0.18
Total Medium term notes, fixed rate 3 267 379.18 0.18
GBP UNITED KINGDOM OF GREAT BRITAIN & N IRL 4.75000% 07-07.12.30 200 000.00 389 400.92 0.02GBP UNITED KINGDOM OF GREAT BRITAIN & N IRL 4.50000% 08-07.03.19 2 000 000.00 3 717 494.64 0.21GBP UNITED KINGDOM OF GREAT BRITAIN & N IRL 3.75000% 11-07.09.21 800 000.00 1 435 695.26 0.08GBP UNITED KINGDOM OF GREAT BRITAIN & N IRL 4.25000% 10-07.12.40 4 100 000.00 7 569 075.60 0.43Total GBP 13 111 666.42 0.74
JPY
JPY JAPAN 1.30000% 05-20.12.14 900 000 000.00 9 305 793.63 0.53JPY JAPAN 1.80000% 12-20.12.31 100 000 000.00 1 070 649.68 0.06JPY JAPAN 2.10000% 06-20.12.26 900 000 000.00 10 470 982.93 0.59JPY JAPAN FINANCE ORG FOR MUNI 2.00000% 06-09.05.16 240 000 000.00 2 567 233.23 0.15Total JPY 23 414 659.47 1.33
USD AMERICA, UNITED STATES OF 0.75000% 10-15.12.13 20 000 000.00 20 028 900.00 1.14USD AMERICA, UNITED STATES OF 1.25000% 10-30.09.15 6 400 000.00 6 518 003.20 0.37USD AMERICA, UNITED STATES OF 1.87500% 10-30.09.17 6 400 000.00 6 604 000.00 0.38USD AMERICA, UNITED STATES OF 2.62500% 10-15.08.20 1 100 000.00 1 148 039.20 0.07USD AMERICA, UNITED STATES OF 3.87500% 10-15.08.40 1 100 000.00 1 146 234.10 0.06Total USD 35 445 176.50 2.02
Total Treasury notes, fixed rate 35 445 176.50 2.02
Notes, fixed rate
AUD
AUD NEW SOUTH WALES TREASURY CORP 4.00000% 13-20.04.23 9 500 000.00 8 520 993.77 0.48AUD TASMANIAN PUBLIC FINANCE 5.50000% 10-23.06.14 2 000 000.00 1 908 923.27 0.11Total AUD 10 429 917.04 0.59
Total Notes, fixed rate 10 429 917.04 0.59
Total Transferable securities and money market instruments listed on an official stock exchange 323 156 619.84 18.36
116 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Global Allocation (USD)Annual Report as of 30 September 2013
UCITS/Other UCIs in accordance with Article 41 (1) e) of the Luxembourg law of 17 December 2010
Total Options on indices, classic-styled 4 104 693.25 0.23
Total Derivative instruments listed on an official stock exchange 4 104 693.25 0.23
Total investments in securities 1 685 591 391.09 95.77
Derivative instruments
Derivative instruments listed on an official stock exchange
Financial Futures on bonds
GBP LONG GILT FUTURE 27.12.13 246.00 665 281.91 0.04USD US 10YR TREASURY NOTE FUTURE 19.12.13 570.00 1 335 940.35 0.08EUR EURO-BUND FUTURE 06.12.13 54.00 173 240.13 0.01USD US 2YR TREASURY NOTE FUTURE 31.12.13 -488.00 -274 502.93 -0.03USD US ULTRA LONG BOND (CBT) FUTURE 19.12.13 211.00 633 000.00 0.04Total Financial Futures on bonds 2 532 959.46 0.14
Financial Futures on Indices
CHF SWISS MARKET INDEX FUTURE 20.12.13 -120.00 -39 812.00 0.00EUR AMSTERDAM EXCHANGE INDEX FUTURE 18.10.13 115.00 -138 546.08 -0.01EUR DAX INDEX FUTURE 20.12.13 26.00 -9 678.60 0.00USD MINI MSCI EMERGING MARKETS INDEX FUTURE 20.12.13 676.00 -1 885 634.40 -0.11CAD S&P/TSX 60 INDEX FUTURE 19.12.13 253.00 137 834.42 0.01EUR CAC 40 INDEX FUTURE 18.10.13 -357.00 -55 574.10 0.00USD NASDAQ 100 E-MINI FUTURE 20.12.13 -283.00 -272 246.00 -0.02GBP FTSE 100 INDEX FUTURE 20.12.13 -626.00 1 375 569.03 0.08SGD MSCI SINGAPORE INDEX FUTURE 30.10.13 89.00 -69 511.85 0.00AUD SPI 200 INDEX FUTURE 19.12.13 -1 049.00 279 929.76 0.02JPY NIKKEI 225 (SGX) INDEX FUTURE 12.12.13 1 549.00 1 989 680.04 0.11USD S&P500 EMINI FUTURE 20.12.13 1 596.00 -1 348 620.00 -0.08EUR EURO STOXX 50 INDEX FUTURE 20.12.13 844.00 28 562.02 0.00Total Financial Futures on Indices -8 047.76 0.00
Total Derivative instruments listed on an official stock exchange 2 524 911.70 0.14
Description Quantity/ Valuation in USD as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1)
The notes are an integral part of the fi nancial statements. 117
UBS (Lux) Key Selection SICAV – Global Allocation (USD)Annual Report as of 30 September 2013
Derivative instruments not listed on an official stock exchange and not traded on another regulated market
Cash at banks, deposits on demand and deposit accounts and other liquid assets 78 610 543.27 4.47Other assets and liabilities 1 890 200.80 0.11
Total net assets 1 759 979 848.52 100.00
Description Quantity/ Valuation in USD as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1)
118 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Global Allocation Focus Europe (EUR)Annual Report as of 30 September 2013
Three-year comparison
ISIN 30.9.2013 30.9.2012 30.9.2011Net assets in EUR 184 390 059.38 218 502 042.68 244 116 945.36Class (CHF hedged) P-acc LU0263319278Shares outstanding 7 002 561.9860 8 977 053.1150 11 840 992.1430Net asset value per share in CHF 10.28 9.21 8.25Issue and redemption price per share in CHF1 10.28 9.21 8.25Class (USD hedged) P-acc LU0263319435Shares outstanding 967 078.9390 1 171 004.5180 1 797 178.7530Net asset value per share in USD 10.88 9.72 8.63Issue and redemption price per share in USD1 10.88 9.72 8.63Class K-1-acc2 LU0424172541Shares outstanding 3.4000 6.0000 -Net asset value per share in EUR 3 385 275.10 3 005 450.84 -Issue and redemption price per share in EUR1 3 385 275.10 3 005 450.84 -Class P-acc LU0263318890Shares outstanding 9 936 903.1410 12 854 004.0110 17 823 970.2850Net asset value per share in EUR 10.70 9.59 8.55Issue and redemption price per share in EUR1 10.70 9.59 8.55
Historical performance is no indicator of current or future performance.The performance data does not take account of any commissions and costs charged when subscribing and redeeming shares.The performance data were not audited.
1 Please see the Appendix for the composition of the Customized Benchmark.
UBS (Lux) Key Selection SICAV – Global Allocation Focus Europe (EUR)
The notes are an integral part of the fi nancial statements. 119
UBS (Lux) Key Selection SICAV – Global Allocation Focus Europe (EUR)Annual Report as of 30 September 2013
Report of the Portfolio Manager
In the reporting year from 1 October 2012 to 30 September 2013, the last three months of 2012 were generally benign towards risky assets. The market environment changed in 2013 with performance across emerging markets equity and debt starting to deteriorate and culminating in a May sell-off. At the same time, global government bonds suffered amidst the prospect of better global growth and higher interest rate expectations. High yield bonds were positive over the reporting year but could not recover to the April peaks until the end of Q3. Developed equities presented the most rewarding opportunities despite participating strongly in the May sell-off. Some of the European equities outpaced the US markets. Tail risks like the Middle East conflict, the Eurozone crisis, monetary policy errors, GDP growth disappointments and the China hard landing left markets largely untroubled in the period ending September 2013.
The subfund posted positive returns. It benefits from its neutral to overweight stance in developed equities and a short to neutral approach to duration. This allowed us to navigate well through the difficult second quarter and to finish the reporting year with a strong result.
Structure of the Securities Portfolio
Geographical Breakdown as a % of net assetsLuxembourg 71.52Italy 8.01Germany 6.41Ireland 6.19Australia 2.03United States 0.13United Kingdom 0.09Japan 0.01Total 94.39
Economic Breakdown as a % of net assetsInvestment funds & pension foundations 77.70Countries & central governments 14.43Public, non-profit institutions 1.53Cantons, federal states 0.50Finance & holding companies 0.13Miscellaneous services 0.10Total 94.39
120 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Global Allocation Focus Europe (EUR)Annual Report as of 30 September 2013
Statement of Net Assets EURAssets 30.9.2013Investments in securities, cost 151 411 780.35Investments in securities, unrealized appreciation (depreciation) 22 632 660.72Total investments in securities (Note 1) 174 044 441.07Cash at banks, deposits on demand and deposit accounts 6 517 987.34Other liquid assets (Margins) 2 739 061.84Receivable on subscriptions 45 853.30Interest receivable on securities 280 126.31Other receivables 64 459.24Unrealized gain (loss) on financial futures (Note 1) 290 733.51Unrealized gain (loss) on forward foreign exchange contracts (Note 1) 522 458.02Unrealized gain (loss) on swaps (Note 1) 576 129.67Total Assets 185 081 250.30
LiabilitiesPayable on redemptions -532 627.69Provisions for flat fee (Note 2) -151 997.76Provisions for taxe d’abonnement (Note 3) -6 565.47Total provisions -158 563.23Total Liabilities -691 190.92
Net assets at the end of the financial year 184 390 059.38
Statement of Operations EURIncome 1.10.2012-30.9.2013Interest on liquid assets 27 057.07Interest on securities 654 613.60Dividends (Note 1) 100 537.00Interest received on swaps (Note 1) 528 698.31Income on securities lending (Note 16) 8 286.97Other income 15 045.78Total income 1 334 238.73
ExpensesInterest paid on swaps (Note 1) -29 125.86Flat fee (Note 2) -4 067 367.98Taxe d’abonnement (Note 3) -26 510.08Cost on securities lending (Note 16) -3 668.22Interest on cash liquidity and bank overdraft -3 139.46Total expenses -4 129 811.60
Net income (loss) on investments -2 795 572.87
Realized gain (loss) (Note 1)Realized gain (loss) on market-priced securities without options 13 014 742.49Realized gain (loss) on options -1 590 602.79Realized gain (loss) on yield-evaluated securities and money market instruments 343.84Realized gain (loss) on financial futures 5 096 140.85Realized gain (loss) on forward foreign exchange contracts 5 768 787.97Realized gain (loss) on swaps -413 050.47Realized result on subscriptions/redemptions (Note 4) 85 640.84Total realized gain (loss) on investments 21 962 002.73Realized gain (loss) on foreign exchange 1 788 359.54Total realized gain (loss) 23 750 362.27
Net realized gain (loss) of the financial year 20 954 789.40
Changes in unrealized appreciation (depreciation) (Note 1)Unrealized appreciation (depreciation) on market-priced securities without options 688 555.25Unrealized appreciation (depreciation) on options -247 977.45Unrealized appreciation (depreciation) on yield-evaluated securities and money market instruments -526.67Unrealized appreciation (depreciation) on financial futures 423 350.68Unrealized appreciation (depreciation) on forward foreign exchange contracts 376 955.41Unrealized appreciation (depreciation) on swaps 67 245.36Total changes in unrealized appreciation (depreciation) 1 307 602.58
Net increase (decrease) in net assets as a result of operations 22 262 391.98
The notes are an integral part of the fi nancial statements. 121
UBS (Lux) Key Selection SICAV – Global Allocation Focus Europe (EUR)Annual Report as of 30 September 2013
Statement of Changes in Net Assets EUR 1.10.2012-30.9.2013Net assets at the beginning of the financial year 218 502 042.68Subscriptions 8 937 997.55Redemptions -65 312 372.83Total net subscriptions (redemptions) -56 374 375.28Net income (loss) on investments -2 795 572.87Total realized gain (loss) 23 750 362.27Total changes in unrealized appreciation (depreciation) 1 307 602.58Net increase (decrease) in net assets as a result of operations 22 262 391.98Net assets at the end of the financial year 184 390 059.38
Changes in the Number of Shares outstanding
1.10.2012-30.9.2013Class (CHF hedged) P-accNumber of shares outstanding at the beginning of the financial year 8 977 053.1150Number of shares issued 106 860.0620Number of shares redeemed -2 081 351.1910Number of shares outstanding at the end of the financial year 7 002 561.9860Class (USD hedged) P-accNumber of shares outstanding at the beginning of the financial year 1 171 004.5180Number of shares issued 72 919.5110Number of shares redeemed -276 845.0900Number of shares outstanding at the end of the financial year 967 078.9390Class K-1-accNumber of shares outstanding at the beginning of the financial year 6.0000Number of shares issued 0.0000Number of shares redeemed -2.6000Number of shares outstanding at the end of the financial year 3.4000Class P-accNumber of shares outstanding at the beginning of the financial year 12 854 004.0110Number of shares issued 719 600.1810Number of shares redeemed -3 636 701.0510Number of shares outstanding at the end of the financial year 9 936 903.1410
122 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Global Allocation Focus Europe (EUR)Annual Report as of 30 September 2013
Statement of Investments in Securities and other Net Assets as of 30 September 2013
Description Quantity/ Valuation in EUR as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1)
Transferable securities and money market instruments listed on an official stock exchange
Description Quantity/ Valuation in EUR as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1)
124 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Global Allocation Focus Europe (EUR)Annual Report as of 30 September 2013
Cash at banks, deposits on demand and deposit accounts and other liquid assets 9 257 049.18 5.02Other assets and liabilities -300 752.07 -0.16
Total net assets 184 390 059.38 100.00
Description Quantity/ Valuation in EUR as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1)
The notes are an integral part of the fi nancial statements. 125
UBS (Lux) Key Selection SICAV – Global Alpha Opportunities (EUR)Annual Report as of 30 September 2013
UBS (Lux) Key Selection SICAV – Global Alpha Opportunities (EUR)
Three-year comparison
ISIN 30.9.2013 30.9.2012 30.9.2011Net assets in EUR 115 236 731.13 114 523 636.95 113 702 997.42Class (CHF hedged) P-acc LU0502419046Shares outstanding 113 594.2280 118 156.8680 115 662.8470Net asset value per share in CHF 105.93 98.62 96.26Issue and redemption price per share in CHF1 105.93 98.62 96.26Class (USD hedged) I-A1-acc LU0508499885Shares outstanding 51 705.6960 53 646.4000 29 319.0580Net asset value per share in USD 108.86 99.82 95.64Issue and redemption price per share in USD1 108.86 99.82 95.64Class (USD hedged) P-acc LU0502419392Shares outstanding 102 944.9860 96 476.9700 150 953.2140Net asset value per share in USD 107.80 99.96 96.84Issue and redemption price per share in USD1 107.80 99.96 96.84Class I-A1-acc LU0508499026Shares outstanding 113 369.4980 118 356.0400 127 513.0800Net asset value per share in EUR 107.66 98.98 95.05Issue and redemption price per share in EUR1 107.66 98.98 95.05Class I-X-acc LU0500994404Shares outstanding 3 770.0000 3 770.0000 3 770.0000Net asset value per share in EUR 114.87 104.45 99.21Issue and redemption price per share in EUR1 114.87 104.45 99.21Class P-acc LU0502418741Shares outstanding 253 548.1700 292 226.0800 336 915.6180Net asset value per share in EUR 107.68 100.11 97.21Issue and redemption price per share in EUR1 107.68 100.11 97.21Class U-X-acc LU0500994743Shares outstanding 4 623.1320 4 965.2640 4 670.5910Net asset value per share in EUR 11 487.40 10 445.07 9 921.00Issue and redemption price per share in EUR1 11 487.40 10 445.07 9 921.00
Historical performance is no indicator of current or future performance.The performance data does not take account of any commissions and costs charged when subscribing and redeeming shares.The performance data were not audited.
1 The subfund does not have a benchmark, which means that the performance of the subfund cannot be compared with a benchmark.
126 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Global Alpha Opportunities (EUR)Annual Report as of 30 September 2013
Report of the Portfolio Manager
During most of the reporting year from 1 October 2012 to 30 September 2013, equity markets generated strong performance. Having already discounted the size and timing of a potential taper, markets were surprised by the Fed’s September decision, and volatility trended higher. However, company fundamentals continued to drive performance, and dispersion remained favorable.
No benchmark is available for this subfund. The subfund’s performance was positive in the reporting year. The Equity Hedged strategies, both fundamental conservative and fundamental aggressive, generated positive results. Macro and systematic trading strategies produced mixed performance.
Structure of the Securities Portfolio
Geographical Breakdown as a % of net assetsLuxembourg 64.73Ireland 29.15Total 93.88
Economic Breakdown as a % of net assetsInvestment funds & pension foundations 93.88Total 93.88
The notes are an integral part of the fi nancial statements. 127
UBS (Lux) Key Selection SICAV – Global Alpha Opportunities (EUR)Annual Report as of 30 September 2013
Statement of Net Assets EURAssets 30.9.2013Investments in securities, cost 98 498 911.76Investments in securities, unrealized appreciation (depreciation) 9 685 216.26Total investments in securities (Note 1) 108 184 128.02Cash at banks, deposits on demand and deposit accounts 7 319 032.70Receivable on securities purchases 3 000 000.00Unrealized gain (loss) on forward foreign exchange contracts (Note 1) -34 530.21Total Assets 118 468 630.51
LiabilitiesBank overdraft -2.36Payable on securities purchases (Note 1) -3 000 000.00Payable on redemptions -6 845.16Payable on subscriptions -161 505.79Provisions for flat fee (Note 2) -60 929.89Provisions for taxe d’abonnement (Note 3) -2 616.18Total provisions -63 546.07Total Liabilities -3 231 899.38
Net assets at the end of the financial year 115 236 731.13
Statement of Operations EURIncome 1.10.2012-30.9.2013Interest on liquid assets 17.78Other income 66 931.01Total income 66 948.79
ExpensesFlat fee (Note 2) -1 125 053.82Taxe d’abonnement (Note 3) -8 148.34Interest on cash liquidity and bank overdraft -146.28Other expenses -100.00Total expenses -1 133 448.44
Net income (loss) on investments -1 066 499.65
Realized gain (loss) (Note 1)Realized gain (loss) on market-priced securities without options 4 619 965.33Realized gain (loss) on forward foreign exchange contracts -601 742.16Total realized gain (loss) on investments 4 018 223.17Realized gain (loss) on foreign exchange -96 431.76Total realized gain (loss) 3 921 791.41
Net realized gain (loss) of the financial year 2 855 291.76
Changes in unrealized appreciation (depreciation) (Note 1)Unrealized appreciation (depreciation) on market-priced securities without options 5 990 339.93Unrealized appreciation (depreciation) on forward foreign exchange contracts -23 049.51Total changes in unrealized appreciation (depreciation) 5 967 290.42
Net increase (decrease) in net assets as a result of operations 8 822 582.18
128 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Global Alpha Opportunities (EUR)Annual Report as of 30 September 2013
Statement of Changes in Net Assets EUR 1.10.2012-30.9.2013Net assets at the beginning of the financial year 114 523 636.95Subscriptions 14 369 041.46Redemptions -22 478 529.46Total net subscriptions (redemptions) -8 109 488.00Net income (loss) on investments -1 066 499.65Total realized gain (loss) 3 921 791.41Total changes in unrealized appreciation (depreciation) 5 967 290.42Net increase (decrease) in net assets as a result of operations 8 822 582.18Net assets at the end of the financial year 115 236 731.13
Changes in the Number of Shares outstanding
1.10.2012-30.9.2013Class (CHF hedged) P-accNumber of shares outstanding at the beginning of the financial year 118 156.8680Number of shares issued 23 596.9210Number of shares redeemed -28 159.5610Number of shares outstanding at the end of the financial year 113 594.2280Class (USD hedged) I-A1-accNumber of shares outstanding at the beginning of the financial year 53 646.4000Number of shares issued 12 457.4970Number of shares redeemed -14 398.2010Number of shares outstanding at the end of the financial year 51 705.6960Class (USD hedged) P-accNumber of shares outstanding at the beginning of the financial year 96 476.9700Number of shares issued 62 012.5550Number of shares redeemed -55 544.5390Number of shares outstanding at the end of the financial year 102 944.9860Class I-A1-accNumber of shares outstanding at the beginning of the financial year 118 356.0400Number of shares issued 13 043.8330Number of shares redeemed -18 030.3750Number of shares outstanding at the end of the financial year 113 369.4980Class I-X-accNumber of shares outstanding at the beginning of the financial year 3 770.0000Number of shares issued 0.0000Number of shares redeemed 0.0000Number of shares outstanding at the end of the financial year 3 770.0000Class P-accNumber of shares outstanding at the beginning of the financial year 292 226.0800Number of shares issued 47 441.5290Number of shares redeemed -86 119.4390Number of shares outstanding at the end of the financial year 253 548.1700Class U-X-accNumber of shares outstanding at the beginning of the financial year 4 965.2640Number of shares issued 9.5880Number of shares redeemed -351.7200Number of shares outstanding at the end of the financial year 4 623.1320
The notes are an integral part of the fi nancial statements. 129
UBS (Lux) Key Selection SICAV – Global Alpha Opportunities (EUR)Annual Report as of 30 September 2013
Statement of Investments in Securities and other Net Assets as of 30 September 2013
Description Quantity/ Valuation in EUR as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1)
UCITS/Other UCIs in accordance with Article 41 (1) e) of the Luxembourg law of 17 December 2010
Investment certificates, open end
Ireland
EUR FUNDLOGIC ALTERNATIVES PLC-INDUS PACIFICHOICE ASIA FD-I EUR 7 533.30 7 486 892.88 6.50EUR GAM STAR FUND PLC - GLOBAL RATES EUR 740 585.00 8 710 612.65 7.56EUR MARSHALL WACE UCITS FUND - MW DEVELOPED EUROPE TOPS FUND-F 91 636.04 9 654 773.28 8.38EUR MS PSAM GLOBAL EVENT UCITS FUND-I 879.04 1 016 262.31 0.88EUR MS PSAM GLOBAL EVENT UCITS FUND-B 5 687.68 6 725 794.17 5.84Total Ireland 33 594 335.29 29.16
Cash at banks, deposits on demand and deposit accounts and other liquid assets 7 319 032.70 6.21Bank overdraft and other short-term liabilities -2.36 0.00Other assets and liabilities -231 897.02 -0.06
Total net assets 115 236 731.13 100.00
130 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Global Equities (USD)Annual Report as of 30 September 2013
Three-year comparison
ISIN 30.9.2013 30.9.2012 30.9.2011Net assets in USD 177 918 972.41 184 179 707.96 114 328 388.53Class (EUR) K-1-acc LU0421783811Shares outstanding 2.8000 2.8000 2.8000Net asset value per share in EUR 3 421 671.27 2 930 981.72 2 305 158.59Issue and redemption price per share in EUR1 3 421 671.27 2 930 981.72 2 305 158.59Class (EUR) P-acc LU0161942635Shares outstanding 2 329 545.0300 2 021 866.9430 2 739 308.2490Net asset value per share in EUR 14.74 12.75 10.12Issue and redemption price per share in EUR1 14.74 12.75 10.12Class I-B-acc2 LU0421789008Shares outstanding - - 214 059.7910Net asset value per share in USD - - 90.86Issue and redemption price per share in USD1 - - 90.86Class I-X-acc LU0421789263Shares outstanding 148 336.6370 212 373.6120 223 388.7690Net asset value per share in USD 139.04 111.92 90.78Issue and redemption price per share in USD1 139.04 111.92 90.78Class P-acc LU0161942395Shares outstanding 1 646 164.4670 2 039 357.9180 2 326 168.7170Net asset value per share in USD 18.14 14.91 12.35Issue and redemption price per share in USD1 18.14 14.91 12.35Class U-X-acc3 LU0421789420Shares outstanding 5 573.0000 8 787.0000 -Net asset value per share in USD 12 196.68 9 818.11 -Issue and redemption price per share in USD1 12 196.68 9 818.11 -
1 See note 12 The share class I-B-acc was in circulation until 15.2.20123 Initial subscription: 28.2.2012
Benchmark:MSCI World (r) EUR 14.2% 26.8% -2.7%MSCI World (r) USD 20.2% 21.6% -4.3%
Historical performance is no indicator of current or future performance.The performance data does not take account of any commissions and costs charged when subscribing and redeeming shares.The performance data were not audited.
UBS (Lux) Key Selection SICAV – Global Equities (USD)
The notes are an integral part of the fi nancial statements. 131
UBS (Lux) Key Selection SICAV – Global Equities (USD)Annual Report as of 30 September 2013
Report of the Portfolio Manager
In the reporting year from 1 October 2012 to 30 September 2013, markets experienced a gradual recovery, with Japan taking the spotlight following an aggressive Quantitative Easing (QE) initiative from the Bank of Japan, a surge in public infrastructure spending and the depreciation of the yen. This change in the Japanese economic landscape has captured investor attention for the majority of the year so far. Chairman Bernanke’s statement in early June that the Fed was likely to start tapering (QE) later in the reporting year disrupted the equity markets initially, but has had little further traction, and at present, tapering does not look likely until December at the earliest. The initial market weakness following this announcement recovered on greater realization that future interest rate rises might be for the right reason i.e. that the economy was recovering. Purchasing market indices started turning up in the US, Eurozone and the UK, however those in many of the emerging markets started to slow down. Despite the moderate improvement in the economic outlook, the European Central Bank and the Bank of England remained cautious, due to concerns that higher bond yields may have the potential to derail the current recovery.
In the reporting year the subfund posted a strongly positive return and outperformed its benchmark, the MSCI World (r) Index. Some of the notable outperformers included Naspers (the multinational electronic media company), Toyota Motor (the world’s largest automobile manufacturer, based in Japan) and Bridgestone (Japanese tire manufacturer). Elsewhere, top positive contributors also included Facebook (the world’s largest social networking website), which saw its share price spike significantly following its positive earnings release in July, and Orix Corp (the leading non-bank financial company in Japan, specializing in leasing, real estate and investment banking), which benefited from the improvement in the Japanese economy. Detractors over the reporting year included the likes of Verifone (global company engaged in electronic payments), which we sold as our thesis began to deteriorate. Also, Lightstream Resources, the oil exploration and production company, which was oversold following a reduction in guidance. We believe this to be an overreaction and as the Brent WTI spread narrows, the price Lightstream Resources is able to charge will increase and it will see higher margins, subsequently boosting the future share price. Elsewhere, other notable underperformers over the reporting year included Hon Hai Precision (Taiwanese multinational electronics manufacturer), Rio Tinto (Australian mining company) and China Construction Bank.
Structure of the Securities Portfolio
Geographical Breakdown as a % of net assetsUnited States 36.04Japan 12.21United Kingdom 10.93Switzerland 5.36Netherlands 4.89Canada 4.13France 3.77Ireland 2.98Germany 2.88China 2.66Hong Kong 2.39Brazil 1.75South Africa 1.47Norway 1.21Spain 1.07Taiwan 0.82Israel 0.75Russian Federation (CIS) 0.71Australia 0.64Thailand 0.63Austria 0.62Indonesia 0.60Sweden 0.58Total 99.09
Economic Breakdown as a % of net assetsBanks & credit institutions 11.25Finance & holding companies 7.48Petroleum 7.21Electronics & semiconductors 5.56Internet, software & IT services 5.09Insurance 4.48Miscellaneous consumer goods 4.43Pharmaceuticals, cosmetics & medical products 4.17Food & soft drinks 3.53Healthcare & social services 3.41Telecommunications 3.24Tobacco & alcohol 3.20Mechanical engineering & industrial equipment 3.00Vehicles 2.72Retail trade, department stores 2.70Miscellaneous unclassified companies 2.62Miscellaneous services 2.39Chemicals 2.33Miscellaneous trading companies 2.26Building industry & materials 2.21Traffic & transportation 2.13Real Estate 2.10Electrical devices & components 1.97Energy & water supply 1.50Graphic design, publishing & media 1.47Computer hardware & network equipment providers 1.32Textiles, garments & leather goods 1.22Lodging, catering & leisure 1.11Biotechnology 1.05Non-ferrous metals 0.99Mining, coal & steel 0.95Total 99.09
132 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Global Equities (USD)Annual Report as of 30 September 2013
Statement of Net Assets USDAssets 30.9.2013Investments in securities, cost 150 083 330.60Investments in securities, unrealized appreciation (depreciation) 26 222 455.49Total investments in securities (Note 1) 176 305 786.09Cash at banks, deposits on demand and deposit accounts 2 169 253.09Receivable on securities sales (Note 1) 866 335.99Receivable on subscriptions 1 311.52Interest receivable on liquid assets 277.09Receivable on dividends 297 945.66Other receivables 108 254.93Total Assets 179 749 164.37
LiabilitiesPayable on securities purchases (Note 1) -866 278.40Payable on redemptions -879 893.87Provisions for flat fee (Note 2) -70 639.52Provisions for taxe d’abonnement (Note 3) -13 380.17Total provisions -84 019.69Total Liabilities -1 830 191.96
Net assets at the end of the financial year 177 918 972.41
Statement of Operations USDIncome 1.10.2012-30.9.2013Interest on liquid assets 2 158.65Dividends (Note 1) 3 411 889.42Income on securities lending (Note 16) 112 420.11Other income 77.05Total income 3 526 545.23
ExpensesFlat fee (Note 2) -1 410 067.84Taxe d’abonnement (Note 3) -47 919.84Cost on securities lending (Note 16) -43 634.15Interest on cash liquidity and bank overdraft -342.44Total expenses -1 501 964.27
Net income (loss) on investments 2 024 580.96
Realized gain (loss) (Note 1)Realized gain (loss) on market-priced securities without options 7 267 996.26Realized gain (loss) on forward foreign exchange contracts 33 301.80Realized result on subscriptions/redemptions (Note 4) 122 035.05Total realized gain (loss) on investments 7 423 333.11Realized gain (loss) on foreign exchange -124 146.99Total realized gain (loss) 7 299 186.12
Net realized gain (loss) of the financial year 9 323 767.08
Changes in unrealized appreciation (depreciation) (Note 1)Unrealized appreciation (depreciation) on market-priced securities without options 26 141 723.55Total changes in unrealized appreciation (depreciation) 26 141 723.55
Net increase (decrease) in net assets as a result of operations 35 465 490.63
The notes are an integral part of the fi nancial statements. 133
UBS (Lux) Key Selection SICAV – Global Equities (USD)Annual Report as of 30 September 2013
Statement of Changes in Net Assets USD 1.10.2012-30.9.2013Net assets at the beginning of the financial year 184 179 707.96Subscriptions 26 601 460.59Redemptions -68 327 686.77Total net subscriptions (redemptions) -41 726 226.18Net income (loss) on investments 2 024 580.96Total realized gain (loss) 7 299 186.12Total changes in unrealized appreciation (depreciation) 26 141 723.55Net increase (decrease) in net assets as a result of operations 35 465 490.63Net assets at the end of the financial year 177 918 972.41
Changes in the Number of Shares outstanding
1.10.2012-30.9.2013Class (EUR) K-1-accNumber of shares outstanding at the beginning of the financial year 2.8000Number of shares issued 0.0000Number of shares redeemed 0.0000Number of shares outstanding at the end of the financial year 2.8000Class (EUR) P-accNumber of shares outstanding at the beginning of the financial year 2 021 866.9430Number of shares issued 923 740.3530Number of shares redeemed -616 062.2660Number of shares outstanding at the end of the financial year 2 329 545.0300Class I-X-accNumber of shares outstanding at the beginning of the financial year 212 373.6120Number of shares issued 51 676.1720Number of shares redeemed -115 713.1470Number of shares outstanding at the end of the financial year 148 336.6370Class P-accNumber of shares outstanding at the beginning of the financial year 2 039 357.9180Number of shares issued 144 992.5240Number of shares redeemed -538 185.9750Number of shares outstanding at the end of the financial year 1 646 164.4670Class U-X-accNumber of shares outstanding at the beginning of the financial year 8 787.0000Number of shares issued 0.0000Number of shares redeemed -3 214.0000Number of shares outstanding at the end of the financial year 5 573.0000
134 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Global Equities (USD)Annual Report as of 30 September 2013
Statement of Investments in Securities and other Net Assets as of 30 September 2013
Description Quantity/ Valuation in USD as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1)
Transferable securities and money market instruments listed on an official stock exchange
Bearer shares
Australia
AUD WESTFIELD GROUP NPV STAPLED UNITS 110 516.00 1 137 751.22 0.64Total Australia 1 137 751.22 0.64
Austria
EUR IMMOFINANZ AG 254 067.00 1 109 822.72 0.62Total Austria 1 109 822.72 0.62
Brazil
BRL BB SEGURIDADE PART COM NPV 190 504.00 1 866 486.49 1.05BRL CIELO SA COM NPV 46 460.00 1 251 010.71 0.70Total Brazil 3 117 497.20 1.75
Canada
CAD CANADIAN OIL SANDS COM NPV 58 200.00 1 130 141.06 0.63CAD LIGHTSTREAM RES LT COM NPV 110 328.00 796 413.81 0.45CAD PETROBANK ENERGY & COM NPV 119 100.00 48 084.93 0.03CAD PETROMINERALES LTD COM NPV 87 600.00 997 100.89 0.56CAD SHAMARAN PETROL CO COM NPV 1 856 500.00 695 352.17 0.39CAD SUNCOR ENERGY INC COM NPV ‘NEW’ 50 900.00 1 823 763.98 1.02CAD WESTJET AIRLINES LTD VAR VTG SHS 77 300.00 1 861 246.23 1.05Total Canada 7 352 103.07 4.13
China
HKD CHINA CONST BK ‘H’CNY1 3 637 170.00 2 799 933.58 1.57USD HOLLYSYS AUTOMATIO COM STK USD0.0001 129 700.00 1 939 015.00 1.09Total China 4 738 948.58 2.66
USD SBERBANK OF RUSSIA SPON ADR EACH REPR ORD SHS 94 673.00 1 138 916.19 0.64EUR SBERBANK OF RUSSIA SPON ADR EACH REPR ORD SHS 10 588.00 127 845.42 0.07Total Russian Federation (CIS) 1 266 761.61 0.71
Description Quantity/ Valuation in USD as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1)
136 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Global Equities (USD)Annual Report as of 30 September 2013
Taiwan
USD CATCHER TECHNOLOGY GDR EACH REPR 5 ORD TWD10 54 700.00 1 448 456.00 0.82Total Taiwan 1 448 456.00 0.82
Total Depository receipts 2 715 217.61 1.53
Total Transferable securities and money market instruments listed on an official stock exchange 176 305 595.21 99.09
Transferable securities and money market instruments not listed on an official stock exchange and not traded on another regulated market
Rights
Italy
EUR FIAT INDUSTRIAL SPA RIGHTS 10.09.13 177 768.00 190.88 0.00Total Italy 190.88 0.00
Total Rights 190.88 0.00
Total Transferable securities and money market instruments not listed on an official stock exchange and not traded on another regulated market 190.88 0.00
Total investments in securities 176 305 786.09 99.09
Cash at banks, deposits on demand and deposit accounts and other liquid assets 2 169 253.09 1.22Other assets and liabilities -556 066.77 -0.31
Total net assets 177 918 972.41 100.00
Description Quantity/ Valuation in USD as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1)
The notes are an integral part of the fi nancial statements. 137
UBS (Lux) Key Selection SICAV – Global Real Estate Securities (USD)Annual Report as of 30 September 2013
Three-year comparison
ISIN 30.9.2013 30.9.2012 30.9.2011Net assets in USD 14 440 030.74 7 519 644.63 3 820 641.42Class (EUR hedged) I-A1-acc1 LU0456132322Shares outstanding - 9 143.6110 9 143.6110Net asset value per share in EUR - 135.52 104.54Issue and redemption price per share in EUR2 - 135.52 104.54Class I-A1-acc3 LU0456132595Shares outstanding - 200.0000 200.0000Net asset value per share in USD - 136.90 104.71Issue and redemption price per share in USD2 - 136.90 104.71Class P-acc LU0574507207Shares outstanding 118 030.5240 53 733.7980 29 666.3590Net asset value per share in USD 122.34 109.77 84.85Issue and redemption price per share in USD2 122.34 109.77 84.85
1 The share class (EUR hedged) I-A1-acc was in circulation until 2.7.20132 See note 13 The share class I-A1-acc was in circulation until 28.8.2013
Benchmark:FTSE EPRA NAREIT Global Index (hedged EUR) EUR 11.9% 26.6% -9.8%FTSE EPRA NAREIT Global Index (hedged USD) USD 12.7% 28.2% -9.1%
Historical performance is no indicator of current or future performance.The performance data does not take account of any commissions and costs charged when subscribing and redeeming shares.The performance data were not audited.
UBS (Lux) Key Selection SICAV – Global Real Estate Securities (USD)
138 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Global Real Estate Securities (USD)Annual Report as of 30 September 2013
Report of the Portfolio Manager
In the reporting year from 1 October 2012 to 30 September 2013, markets experienced a gradual recovery, with property stocks up as a whole, despite some weakness during the summer of 2013. Property stocks had a strong start to the reporting year, but fizzled out when Fed comments about tapering of Quantitative Easing (QE) sent bond yields up. Higher bond yields put downward pressure on property valuations and increased the debt funding costs for property companies. Property stocks remained weak in the summer amid the rising bond yields, geo-political tensions and talk of a possible emerging markets crisis. In August, property stocks were especially weak in ASEAN and South American countries, where the selling of currencies and bonds by global investors had exposed the risk of a funding crisis. Despite this, property stocks were strong in Japan and China. Japanese property stocks were particularly strong because inflation picked up and housing starts were strong, whilst Chinese property stocks rose because of strong economic data and reduced fears of property price cooling measures by the Chinese government. By September 2013, as a result of the announcement on the surprise delay in the tapering of US QE, bond yields fell and property stocks began to rise as high-yielding investments came back into favor.
In the reporting year the subfund posted a positive return and underperformed the FTSE EPRA NAREIT Global Index (hedged USD). Among the top detractors over the period were Avalonbay Communities (US Residential REIT), Simon Property Group (US Retail REIT) and Sunac China Holdings (real estate holding and development company). Not holding Mitsubishi Estate, a Japanese real estate developer, detracted from performance. Some of the notable positive contributors in the reporting year included holdings in Japanese property stocks Sumitomo Realty and Development, Tokyu Land, and Mitsui Fudosan (real estate holding and development company).
Structure of the Securities Portfolio
Geographical Breakdown as a % of net assetsUnited States 42.15Japan 14.74Hong Kong 9.23United Kingdom 7.74France 5.43Australia 5.29Singapore 2.42Canada 2.38Brazil 1.99Austria 1.92China 1.77Malaysia 1.39Thailand 1.06Indonesia 0.92South Africa 0.90Philippines 0.62Total 99.95
Economic Breakdown as a % of net assetsReal Estate 95.51Lodging, catering & leisure 1.96Building industry & materials 1.79Miscellaneous services 0.41Investment funds & pension foundations 0.28Total 99.95
The notes are an integral part of the fi nancial statements. 139
UBS (Lux) Key Selection SICAV – Global Real Estate Securities (USD)Annual Report as of 30 September 2013
Statement of Net Assets USDAssets 30.9.2013Investments in securities, cost 14 023 523.03Investments in securities, unrealized appreciation (depreciation) 408 959.56Total investments in securities (Note 1) 14 432 482.59Cash at banks, deposits on demand and deposit accounts 172 009.57Receivable on subscriptions 20 157.99Interest receivable on liquid assets 5.10Receivable on dividends 26 269.50Unrealized gain (loss) on forward foreign exchange contracts (Note 1) -172 941.94Total Assets 14 477 982.81
LiabilitiesPayable on redemptions -24 688.00Provisions for flat fee (Note 2) -11 459.06Provisions for taxe d’abonnement (Note 3) -1 805.01Total provisions -13 264.07Total Liabilities -37 952.07
Net assets at the end of the financial year 14 440 030.74
Statement of Operations USDIncome 1.10.2012-30.9.2013Interest on liquid assets 392.33Dividends (Note 1) 416 168.25Income on securities lending (Note 16) 3 670.12Total income 420 230.70
ExpensesFlat fee (Note 2) -261 867.13Taxe d’abonnement (Note 3) -6 433.17Cost on securities lending (Note 16) -1 447.24Interest on cash liquidity and bank overdraft -26.07Total expenses -269 773.61
Net income (loss) on investments 150 457.09
Realized gain (loss) (Note 1)Realized gain (loss) on market-priced securities without options 114 292.95Realized gain (loss) on forward foreign exchange contracts 723 536.56Realized result on subscriptions/redemptions (Note 4) 73 614.99Total realized gain (loss) on investments 911 444.50Realized gain (loss) on foreign exchange -15 464.90Total realized gain (loss) 895 979.60
Net realized gain (loss) of the financial year 1 046 436.69
Changes in unrealized appreciation (depreciation) (Note 1)Unrealized appreciation (depreciation) on market-priced securities without options 134 127.64Unrealized appreciation (depreciation) on forward foreign exchange contracts -184 062.40Total changes in unrealized appreciation (depreciation) -49 934.76
Net increase (decrease) in net assets as a result of operations 996 501.93
140 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Global Real Estate Securities (USD)Annual Report as of 30 September 2013
Statement of Changes in Net Assets USD 1.10.2012-30.9.2013Net assets at the beginning of the financial year 7 519 644.63Subscriptions 21 758 727.54Redemptions -15 834 843.36Total net subscriptions (redemptions) 5 923 884.18Net income (loss) on investments 150 457.09Total realized gain (loss) 895 979.60Total changes in unrealized appreciation (depreciation) -49 934.76Net increase (decrease) in net assets as a result of operations 996 501.93Net assets at the end of the financial year 14 440 030.74
Changes in the Number of Shares outstanding
1.10.2012-30.9.2013Class (EUR hedged) I-A1-accNumber of shares outstanding at the beginning of the financial year 9 143.6110Number of shares issued 0.0000Number of shares redeemed -9 143.6110Number of shares outstanding at the end of the financial year 0.0000Class I-A1-accNumber of shares outstanding at the beginning of the financial year 200.0000Number of shares issued 28 810.0000Number of shares redeemed -29 010.0000Number of shares outstanding at the end of the financial year 0.0000Class P-accNumber of shares outstanding at the beginning of the financial year 53 733.7980Number of shares issued 145 562.6890Number of shares redeemed -81 265.9630Number of shares outstanding at the end of the financial year 118 030.5240
The notes are an integral part of the fi nancial statements. 141
UBS (Lux) Key Selection SICAV – Global Real Estate Securities (USD)Annual Report as of 30 September 2013
Statement of Investments in Securities and other Net Assets as of 30 September 2013
Description Quantity/ Valuation in USD as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1)
Transferable securities and money market instruments listed on an official stock exchange
Bearer shares
Australia
AUD STOCKLAND NPV (STAPLED) 87 361.00 313 677.71 2.17AUD WESTFIELD GROUP NPV STAPLED UNITS 43 428.00 449 523.38 3.12Total Australia 763 201.09 5.29
Austria
EUR IMMOFINANZ AG 63 408.00 276 980.64 1.92Total Austria 276 980.64 1.92
Brazil
BRL ALIANSCE SHOPPING COM NPV 6 700.00 59 895.33 0.42BRL BR MALLS PARTICIPA COM NPV 11 400.00 102 935.69 0.71BRL DIRECIONAL ENGENHA COM NPV 23 000.00 124 296.40 0.86Total Brazil 287 127.42 1.99
China
HKD GUANGZHOU R&F PROP ‘H’CNY0.25(POST SUBD) 92 000.00 143 780.58 1.00HKD SUNAC CHINA HLDGS HKD0.10 ‘REG S’ 172 000.00 111 559.42 0.77Total China 255 340.00 1.77
HKD CHINA O/SEAS LAND HKD0.10 92 000.00 271 071.48 1.88HKD COUNTRY GARDEN HLD HKD0.10 364 991.00 233 439.12 1.62USD HONG KONG LAND HLD ORD USD0.10(BERMUDA REG) 27 000.00 180 360.00 1.25HKD SUN HUNG KAI PROP HKD0.50 22 767.00 309 719.15 2.14HKD THE LINK REAL ESTATE INVESTMENT TRUST 69 000.00 338 542.77 2.34Total Hong Kong 1 333 132.52 9.23
Indonesia
IDR PT BUMI SERPONG DA IDR100 1 052 000.00 133 544.06 0.92Total Indonesia 133 544.06 0.92
Description Quantity/ Valuation in USD as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1)
The notes are an integral part of the fi nancial statements. 143
UBS (Lux) Key Selection SICAV – Global Real Estate Securities (USD)Annual Report as of 30 September 2013
Cash at banks, deposits on demand and deposit accounts and other liquid assets 172 009.57 1.19Other assets and liabilities 8 480.52 0.06
Total net assets 14 440 030.74 100.00
Description Quantity/ Valuation in USD as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1)
144 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Multi Asset Income (USD)Annual Report as of 30 September 2013
Three-year comparison
ISIN 30.9.2013 30.9.2012 30.9.2011Net assets in USD 683 735 381.02 182 430 981.27 70 270 198.65Class (CHF hedged) I-X-acc LU0626809544Shares outstanding 701 725.9450 331 493.9620 329 165.4220Net asset value per share in CHF 109.55 106.59 94.35Issue and redemption price per share in CHF1 109.55 106.23 94.35Class (CHF hedged) P-acc2 LU0822113493Shares outstanding 1 241 044.5210 - -Net asset value per share in CHF 99.50 - -Issue and redemption price per share in CHF1 99.50 - -Class (CHF hedged) P-dist LU0626809114Shares outstanding 1 235 525.6760 325 193.9060 95 767.8290Net asset value per share in CHF 103.44 104.44 93.86Issue and redemption price per share in CHF1 103.44 104.08 93.86Class (EUR hedged) I-X-acc3 LU0745895374Shares outstanding 106 444.0150 5 286.6600 -Net asset value per share in EUR 107.21 104.18 -Issue and redemption price per share in EUR1 107.21 103.83 -Class (EUR hedged) N-dist4 LU0815318976Shares outstanding 95 373.4310 100.0000 -Net asset value per share in EUR 100.37 99.59 -Issue and redemption price per share in EUR1 100.37 99.25 -Class (EUR hedged) P-acc5 LU0822114038Shares outstanding 612 074.6850 - -Net asset value per share in EUR 100.79 - -Issue and redemption price per share in EUR1 100.79 - -Class (EUR hedged) P-dist LU0626809387Shares outstanding 552 513.8250 387 139.6770 110 638.6710Net asset value per share in EUR 104.70 105.43 94.35Issue and redemption price per share in EUR1 104.70 105.07 94.35Class (GBP hedged) P-acc6 LU0937166477Shares outstanding 17 108.2250 - -Net asset value per share in GBP 99.13 - -Issue and redemption price per share in GBP1 99.13 - -Class (GBP hedged) P-UK-dist7 LU0749797188Shares outstanding 253 530.7990 186 156.3820 -Net asset value per share in GBP 105.45 104.27 -Issue and redemption price per share in GBP1 105.45 103.92 -Class P-acc2 LU0822114202Shares outstanding 391 283.9480 - -Net asset value per share in USD 99.88 - -Issue and redemption price per share in USD1 99.88 - -Class P-dist LU0626809460Shares outstanding 432 855.8960 228 586.5120 67 861.6570Net asset value per share in USD 105.08 105.53 94.23Issue and redemption price per share in USD1 105.08 105.17 94.23Class U-X-acc8 LU0611201574Shares outstanding - - 595.0000Net asset value per share in USD - - 9 717.06Issue and redemption price per share in USD1 - - 9 717.06
1 See note 12 Initial subscription: 30.11.20123 Initial subscription: 29.2.20124 Initial subscription: 3.9.20125 Initial subscription: 2.10.20126 Initial subscription: 5.6.20137 Initial subscription: 16.3.20128 For the period from 7.4.2011 to 16.3.2012 the unit class U-X-acc was in circulation
UBS (Lux) Key Selection SICAV – Multi Asset Income (USD)
The notes are an integral part of the fi nancial statements. 145
UBS (Lux) Key Selection SICAV – Multi Asset Income (USD)Annual Report as of 30 September 2013
Report of the Portfolio Manager
In the reporting year from 1 October 2012 to 30 September 2013, the last three months of 2012 were generally benign towards risky assets. The market environment changed in 2013 with performance across emerging markets equity and debt starting to deteriorate and culminating in a May sell-off. At the same time, global government bonds suffered amidst the prospect of better global growth and higher interest rate expectations. High yield bonds were positive over the reporting year but could not recover to the April peaks until the end of Q3. Developed equities presented the most rewarding opportunities despite participating strongly in the May sell-off. Some of the European equities outpaced the US markets. Tail risks like the Middle East conflict, the Eurozone crisis, monetary policy errors, GDP growth disappointments and the China hard landing left markets largely untroubled in the reporting year.
The main goal of the subfund’s strategy is to manage investments in different asset classes in such a way that the subfund generates its target income in a risk-aware fashion. The subfund succeeded to maintain its targeted income level throughout the reporting year. In the fourth quarter of 2012 positive return contributions were registered across asset classes, most notably from REITs, High Yield and Equity. The most challenging period was May and June 2013. Amidst fears of US Federal Reserve tapering, government and corporate bonds sold off globally. In addition, an unexpected high interest rate sensitivity of REITs impacted the portfolio severely. In the subsequent months, Multi Asset Income managed to recoup some losses and finished the fiscal year in positive territory. Currencies did not have an impact as the subfund strives to be hedged to its reference currency. The subfund has no benchmark.
Structure of the Securities Portfolio
Geographical Breakdown as a % of net assetsIreland 65.14United States 7.92United Kingdom 5.04Italy 3.86Luxembourg 3.27Guernsey 2.99France 1.55Eurozone -0.01Total 89.76
Economic Breakdown as a % of net assetsInvestment funds & pension foundations 73.52Countries & central governments 16.25Finance & holding companies -0.01Total 89.76
Historical performance is no indicator of current or future performance.The performance data does not take account of any commissions and costs charged when subscribing and redeeming shares.The performance data were not audited.
1 The subfund does not have a benchmark, which means that the performance of the subfund cannot be compared with a benchmark.
146 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Multi Asset Income (USD)Annual Report as of 30 September 2013
Statement of Net Assets USDAssets 30.9.2013Investments in securities, cost 608 134 810.88Investments in securities, unrealized appreciation (depreciation) 5 602 815.24Total investments in securities (Note 1) 613 737 626.12Cash at banks, deposits on demand and deposit accounts 100 402 370.12Other liquid assets (Margins) 4 463 108.30Receivable on securities sales (Note 1) 1 072 986.21Receivable on subscriptions 466 606.93Interest receivable on securities 375 783.43Receivable on dividends 515 484.81Unrealized gain (loss) on financial futures (Note 1) 79 240.85Unrealized gain (loss) on forward foreign exchange contracts (Note 1) 8 375 818.75Total Assets 729 489 025.52
LiabilitiesPayable on securities purchases (Note 1) -43 358 764.72Payable on redemptions -1 961 908.78Provisions for flat fee (Note 2) -359 783.66Provisions for taxe d’abonnement (Note 3) -73 187.34Total provisions -432 971.00Total Liabilities -45 753 644.50
Net assets at the end of the financial year 683 735 381.02
Statement of Operations USDIncome 1.10.2012-30.9.2013Interest on liquid assets 2 577.30Interest on securities 1 276 257.36Dividends (Note 1) 13 512 372.95Income on securities lending (Note 16) 475 162.46Other income 39 516.01Total income 15 305 886.08
ExpensesFlat fee (Note 2) -6 555 435.59Taxe d’abonnement (Note 3) -237 162.33Cost on securities lending (Note 16) -216 016.40Interest on cash liquidity and bank overdraft -15 899.46Total expenses -7 024 513.78
Net income (loss) on investments 8 281 372.30
Realized gain (loss) (Note 1)Realized gain (loss) on market-priced securities without options -2 409 180.78Realized gain (loss) on options -122 439.39Realized gain (loss) on financial futures 774 144.86Realized gain (loss) on forward foreign exchange contracts 3 627 213.52Realized gain (loss) on swaps -482.47Realized result on subscriptions/redemptions (Note 4) 1 327 693.57Total realized gain (loss) on investments 3 196 949.31Realized gain (loss) on foreign exchange 380 494.54Total realized gain (loss) 3 577 443.85
Net realized gain (loss) of the financial year 11 858 816.15
Changes in unrealized appreciation (depreciation) (Note 1)Unrealized appreciation (depreciation) on market-priced securities without options -1 096 613.24Unrealized appreciation (depreciation) on options 43 345.36Unrealized appreciation (depreciation) on financial futures 79 240.85Unrealized appreciation (depreciation) on forward foreign exchange contracts 7 180 156.15Total changes in unrealized appreciation (depreciation) 6 206 129.12
Net increase (decrease) in net assets as a result of operations 18 064 945.27
The notes are an integral part of the fi nancial statements. 147
UBS (Lux) Key Selection SICAV – Multi Asset Income (USD)Annual Report as of 30 September 2013
Statement of Changes in Net Assets USD 1.10.2012-30.9.2013Net assets at the beginning of the financial year 182 430 981.27Subscriptions 626 182 668.22Redemptions -139 635 448.30Total net subscriptions (redemptions) 486 547 219.92Dividend paid -3 307 765.44Net income (loss) on investments 8 281 372.30Total realized gain (loss) 3 577 443.85Total changes in unrealized appreciation (depreciation) 6 206 129.12Net increase (decrease) in net assets as a result of operations 18 064 945.27Net assets at the end of the financial year 683 735 381.02
Changes in the Number of Shares outstanding
1.10.2012-30.9.2013Class (CHF hedged) I-X-accNumber of shares outstanding at the beginning of the financial year 331 493.9620Number of shares issued 420 142.1450Number of shares redeemed -49 910.1620Number of shares outstanding at the end of the financial year 701 725.9450Class (CHF hedged) P-accNumber of shares outstanding at the beginning of the financial year 0.0000Number of shares issued 1 450 399.5190Number of shares redeemed -209 354.9980Number of shares outstanding at the end of the financial year 1 241 044.5210Class (CHF hedged) P-distNumber of shares outstanding at the beginning of the financial year 325 193.9060Number of shares issued 1 005 064.8630Number of shares redeemed -94 733.0930Number of shares outstanding at the end of the financial year 1 235 525.6760Class (EUR hedged) I-X-accNumber of shares outstanding at the beginning of the financial year 5 286.6600Number of shares issued 250 704.3980Number of shares redeemed -149 547.0430Number of shares outstanding at the end of the financial year 106 444.0150Class (EUR hedged) N-distNumber of shares outstanding at the beginning of the financial year 100.0000Number of shares issued 103 125.6640Number of shares redeemed -7 852.2330Number of shares outstanding at the end of the financial year 95 373.4310Class (EUR hedged) P-accNumber of shares outstanding at the beginning of the financial year 0.0000Number of shares issued 795 733.9400Number of shares redeemed -183 659.2550Number of shares outstanding at the end of the financial year 612 074.6850Class (EUR hedged) P-distNumber of shares outstanding at the beginning of the financial year 387 139.6770Number of shares issued 365 244.6030Number of shares redeemed -199 870.4550Number of shares outstanding at the end of the financial year 552 513.8250Class (GBP hedged) P-accNumber of shares outstanding at the beginning of the financial year 0.0000Number of shares issued 17 128.2250Number of shares redeemed -20.0000Number of shares outstanding at the end of the financial year 17 108.2250Class (GBP hedged) P-UK-distNumber of shares outstanding at the beginning of the financial year 186 156.3820Number of shares issued 146 230.8410Number of shares redeemed -78 856.4240Number of shares outstanding at the end of the financial year 253 530.7990Class P-accNumber of shares outstanding at the beginning of the financial year 0.0000Number of shares issued 440 153.3870Number of shares redeemed -48 869.4390Number of shares outstanding at the end of the financial year 391 283.9480Class P-distNumber of shares outstanding at the beginning of the financial year 228 586.5120Number of shares issued 295 625.9310Number of shares redeemed -91 356.5470Number of shares outstanding at the end of the financial year 432 855.8960
Distribution
UBS (Lux) Key Selection SICAV Ex-Date Pay-Date Currency Amount per share– Multi Asset Income (USD) (CHF hedged) P-dist 2.12.2013 5.12.2013 CHF 1.54– Multi Asset Income (USD) (EUR hedged) N-dist 2.12.2013 5.12.2013 EUR 0.88– Multi Asset Income (USD) (EUR hedged) P-dist 2.12.2013 5.12.2013 EUR 1.56– Multi Asset Income (USD) (GBP hedged) P-UK-dist 2.12.2013 5.12.2013 GBP 1.54– Multi Asset Income (USD) P-dist 2.12.2013 5.12.2013 USD 1.62
148 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Multi Asset Income (USD)Annual Report as of 30 September 2013
Statement of Investments in Securities and other Net Assets as of 30 September 2013
Description Quantity/ Valuation in USD as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1)
Transferable securities and money market instruments listed on an official stock exchange
Investment certificates, closed end
Guernsey
GBP HICL INFRASTRUCTUR ORD GBP0.0001 4 898 988.00 10 305 514.09 1.51GBP JOHN LAING INFRASTRUCTURE FUND LTD-GBP 5 558 217.00 10 081 093.80 1.47Total Guernsey 20 386 607.89 2.98
GBP UNITED KINGDOM OF GB & NI 1.250%/RPI LINKED 06-22.11.17 8 508 733.00 19 987 507.66 2.92Total GBP 19 987 507.66 2.92
Total Bonds, floating rate 56 957 544.46 8.33
Total Transferable securities and money market instruments listed on an official stock exchange 79 451 636.00 11.62
Transferable securities and money market instruments traded on another regulated market
Treasury notes, floating rate
USD
USD AMERICA, UNITED STATES OF 3.875%/CPI LINKED 99-15.04.29 6 185 000.00 12 597 967.11 1.84USD AMERICA, UNITED STATES OF 1.125%/CPI LINKED 11-15.01.21 36 159 000.00 41 574 691.96 6.08Total USD 54 172 659.07 7.92
Total Treasury notes, floating rate 54 172 659.07 7.92
Total Transferable securities and money market instruments traded on anotherregulated market 54 172 659.07 7.92
Transferable securities and money market instruments not listed on an official stock exchange and not traded on another regulated market
Rights
Guernsey
GBP JOHN LAING INFRASTRUCTURE FUND LTD RIGHTS 02.10.13 2 223 286.00 36 003.89 0.01Total Guernsey 36 003.89 0.01
Total Rights 36 003.89 0.01
Total Transferable securities and money market instruments not listed on an official stock exchange and not traded on another regulated market 36 003.89 0.01
UCITS/Other UCIs in accordance with Article 41 (1) e) of the Luxembourg law of 17 December 2010
Investment certificates, open end
Ireland
EUR ISHARES EURO STOXX 50 522 850.00 20 613 390.67 3.02USD ISHARES DEVELOPED MARKETS PROPERTY YIELD UCITS ETF USD 1 269 703.00 27 831 889.76 4.07EUR ISHARES EURO CORPORATE BOND LARGE CAP UCITS ETF-EUR 460 646.00 79 187 423.11 11.58USD ISHARES II PLC - ISHARES JPMORGAN $ EMERGING MARKETS BD FUND 120 328.00 12 963 537.08 1.90USD ISHARES MARKIT IBOXX USD CORPORATE BOND 809 915.00 87 203 548.05 12.75USD ISHARES MARKIT IBOXX USD HIGH YIELD CAPPED BOND-ETF USD 430 689.00 47 965 833.93 7.02EUR ISHARES MARKIT IBOXX EURO HIGH YIELD BOND EUR 206 858.00 29 841 020.76 4.36GBP ISHARES PLC - GBP CORPORATE BOND FUND 269 687.00 54 884 000.84 8.03USD ISHARES PLC S&P INDEX FUND 500 UCITS ETF INC 1 519 201.00 25 461 808.76 3.72GBP ISHARES PLC-FTSE 100 UCITS ETF INC 2 651 621.00 27 683 643.96 4.05USD PIMCO SHORT-TERM HIGH YIELD CORPORATE BOND INDEX SOURCE ETF 301 301.00 31 749 592.88 4.64Total Ireland 445 385 689.80 65.14
Cash at banks, deposits on demand and deposit accounts and other liquid assets 104 865 478.42 15.34Other assets and liabilities -43 322 783.12 -6.34
Total net assets 683 735 381.02 100.00
Description Quantity/ Valuation in USD as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1)
150 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Smart Allocator (USD)Annual Report as of 30 September 2013
Most important figures
ISIN 30.9.2013Net assets in USD 10 001 087.58Class U-X-acc1 LU0897247838Shares outstanding 1 000.0000Net asset value per share in USD 10 001.09Issue and redemption price per share in USD2 10 001.09
1 Initial subscription: 28.3.20132 See note 1
Performance
Currency 2013Class U-X-acc1 USD -
Historical performance is no indicator of current or future performance.The performance data does not take account of any commissions and costs charged when subscribing and redeeming shares.The performance data were not audited.
1 The subfund does not have a benchmark, which means that the performance of the subfund cannot be compared with a benchmark.
In the reporting period from 28 March 2013 to 30 September 2013, the first month was generally benign towards risky assets. The market environment changed thereafter with performance across emerging markets equity and debt starting to deteriorate and culminating in a May sell-off. At the same time, global government bonds suffered amidst the prospect of better global growth and higher interest rate expectations. Global commodities, as measured by the DJ UBS Commodity Index, experienced a difficult period; at the beginning declines were concentrated on precious metals but then spread more broadly in June before they partly recovered in August. Developed equities presented the most rewarding opportunities despite participating strongly in the May sell-off.
The subfund showed a flat performance over the reporting period. For this subfund there is no benchmark available. The underlying strategy benefited from its investment in global equity markets. The contribution from fixed income has been slightly positive, whereas commodities investments detracted from the subfund’s value. Overall having a smart allocation focusing on risk contributions to the different asset classes and controlling the overall risk level helped to reduce the drawdown in May and June and therefore deliver a smoother return path than without risk control.
Structure of the Securities Portfolio
Geographical Breakdown as a % of net assetsUnited States 60.18Supranationals 24.03Germany 8.11Total 92.32
Economic Breakdown as a % of net assetsCountries & central governments 60.18Supranational organisations 24.03Banks & credit institutions 8.11Total 92.32
The notes are an integral part of the fi nancial statements. 151
UBS (Lux) Key Selection SICAV – Smart Allocator (USD)Annual Report as of 30 September 2013
Statement of Net Assets USDAssets 30.9.2013Investments in securities, cost 9 249 118.11Investments in securities, unrealized appreciation (depreciation) -15 571.77Total investments in securities (Note 1) 9 233 546.34Cash at banks, deposits on demand and deposit accounts 455 997.28Other liquid assets (Margins) 126 455.09Interest receivable on securities 5 394.44Unrealized gain (loss) on financial futures (Note 1) 78 639.67Unrealized gain (loss) on swaps (Note 1) 101 824.83Total Assets 10 001 857.65
LiabilitiesPayable on securities purchases (Note 1) -520.04Provisions for taxe d’abonnement (Note 3) -250.03Total provisions -250.03Total Liabilities -770.07
Net assets at the end of the period 10 001 087.58
Statement of Operations USDIncome 28.3.2013-30.9.2013Interest on liquid assets 10.60Interest on securities 21 249.99Interest received on swaps (Note 1) 104 519.32Income on securities lending (Note 16) 915.70Total income 126 695.61
ExpensesInterest paid on swaps (Note 1) -616.73Taxe d’abonnement (Note 3) -491.39Cost on securities lending (Note 16) -223.74Interest on cash liquidity and bank overdraft -213.31Total expenses -1 545.17
Net income (loss) on investments 125 150.44
Realized gain (loss) (Note 1)Realized gain (loss) on yield-evaluated securities and money market instruments 418.05Realized gain (loss) on financial futures -9 588.93Realized gain (loss) on swaps -230 685.90Total realized gain (loss) on investments -239 856.78Realized gain (loss) on foreign exchange -49 098.81Total realized gain (loss) -288 955.59
Net realized gain (loss) of the period -163 805.15
Changes in unrealized appreciation (depreciation) (Note 1)Unrealized appreciation (depreciation) on market-priced securities without options -18 444.80Unrealized appreciation (depreciation) on yield-evaluated securities and money market instruments 2 873.03Unrealized appreciation (depreciation) on financial futures 78 639.67Unrealized appreciation (depreciation) on swaps 101 824.83Total changes in unrealized appreciation (depreciation) 164 892.73
Net increase (decrease) in net assets as a result of operations 1 087.58
152 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – Smart Allocator (USD)Annual Report as of 30 September 2013
Statement of Changes in Net Assets USD 28.3.2013-30.9.2013Net assets at the beginning of the period 0.00Subscriptions 10 000 000.00Total net subscriptions (redemptions) 10 000 000.00Net income (loss) on investments 125 150.44Total realized gain (loss) -288 955.59Total changes in unrealized appreciation (depreciation) 164 892.73Net increase (decrease) in net assets as a result of operations 1 087.58Net assets at the end of the period 10 001 087.58
Changes in the Number of Shares outstanding
28.3.2013-30.9.2013Class U-X-accNumber of shares outstanding at the beginning of the period 0.0000Number of shares issued 1 000.0000Number of shares redeemed 0.0000Number of shares outstanding at the end of the period 1 000.0000
The notes are an integral part of the fi nancial statements. 153
UBS (Lux) Key Selection SICAV – Smart Allocator (USD)Annual Report as of 30 September 2013
Statement of Investments in Securities and other Net Assets as of 30 September 2013
Description Quantity/ Valuation in USD as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1)
Transferable securities and money market instruments listed on an official stock exchange
Notes, fixed rate
USD
USD INTL BK FOR RECONSTR & DEVT WORLD BANK 0.50000% 11-26.11.13 800 000.00 800 403.20 8.00Total USD 800 403.20 8.00
Total Transferable securities and money market instruments listed on an official stock exchange 2 414 995.20 24.14
Transferable securities and money market instruments traded on another regulated market
Treasury bills, zero coupon
USD
USD AMERICA, UNITED STATES OF TB 0.00000% 18.10.12-17.10.13 860 000.00 859 960.79 8.60USD AMERICA, UNITED STATES OF TB 0.00000% 15.11.12-14.11.13 860 000.00 859 879.53 8.60USD AMERICA, UNITED STATES OF TB 0.00000% 13.12.12-12.12.13 860 000.00 859 816.79 8.60USD AMERICA, UNITED STATES OF TB 0.00000% 10.01.13-09.01.14 860 000.00 859 729.61 8.60USD AMERICA, UNITED STATES OF TB 0.00000% 07.02.13-06.02.14 860 000.00 859 620.72 8.59USD AMERICA, UNITED STATES OF TB 0.00000% 07.03.13-06.03.14 860 000.00 859 538.40 8.59USD AMERICA, UNITED STATES OF TB 0.00000% 04.04.13-03.04.14 860 000.00 859 845.30 8.60Total USD 6 018 391.14 60.18
Total Treasury bills, zero coupon 6 018 391.14 60.18
Notes, fixed rate
USD
USD INTER-AMERICAN DEVELOPMENT BANK 0.37500% 11-08.11.13 800 000.00 800 160.00 8.00Total USD 800 160.00 8.00
Total Notes, fixed rate 800 160.00 8.00
Total Transferable securities and money market instruments traded on anotherregulated market 6 818 551.14 68.18
Total investments in securities 9 233 546.34 92.32
Derivative instruments
Derivative instruments listed on an official stock exchange
Financial Futures on bonds
GBP LONG GILT FUTURE 27.12.13 6.00 11 044.31 0.11USD US 5YR TREASURY NOTE FUTURE 31.12.13 19.00 27 265.72 0.27EUR EURO-BOBL FUTURE 06.12.13 14.00 21 333.52 0.22JPY JAPANESE GOVERNMENT 10Y BOND MINI (SGX) FUTURE 10.12.13 10.00 6 970.70 0.07Total Financial Futures on bonds 66 614.25 0.67
Financial Futures on Indices
USD MINI MSCI EMERGING MARKETS INDEX FUTURE 20.12.13 17.00 -3 830.00 -0.04JPY TOPIX INDEX FUTURE 12.12.13 6.00 28 086.62 0.28USD S&P500 EMINI FUTURE 20.12.13 10.00 -9 375.00 -0.09EUR EURO STOXX 50 INDEX FUTURE 20.12.13 22.00 -2 856.20 -0.03Total Financial Futures on Indices 12 025.42 0.12
Total Derivative instruments listed on an official stock exchange 78 639.67 0.79
Derivative instruments not listed on an official stock exchange and not traded on another regulated market
Total Derivative instruments not listed on an official stock exchange and not traded on another regulated market 101 824.83 1.02
Total Derivative instruments 180 464.50 1.81
Cash at banks, deposits on demand and deposit accounts and other liquid assets 582 452.37 5.82Other assets and liabilities 4 624.37 0.05
Total net assets 10 001 087.58 100.00
* Positive nominal: the subfund is “Receiver” Protection Seller, negative nominal: the subfund is “Payer” Protection Buyer.
Description Quantity/ Valuation in USD as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1)
The notes are an integral part of the fi nancial statements. 155
UBS (Lux) Key Selection SICAV – US Equities (USD)Annual Report as of 30 September 2013
Most important figures
ISIN 15.3.2013 30.9.2012 30.9.2011Net assets in USD 79 428 836.70 83 432 816.96 89 023 047.67Class (EUR) P-acc LU0155373292Shares outstanding 205 836.7840 229 659.5170 319 774.1630Net asset value per share in EUR 13.07 12.05 9.27Issue and redemption price per share in EUR1 13.07 12.04 9.27Class I-B-acc LU0421782094Shares outstanding 29 043.0640 28 251.6820 33 343.6910Net asset value per share in USD 138.58 124.68 98.06Issue and redemption price per share in USD1 138.58 124.58 98.06Class P-acc LU0153925929Shares outstanding 4 018 135.8290 4 659 716.9650 6 339 619.9680Net asset value per share in USD 16.72 15.18 12.18Issue and redemption price per share in USD1 16.72 15.17 12.18Class P-dist LU0274146058Shares outstanding 278 632.8760 365 144.3790 369 041.7530Net asset value per share in USD 16.93 15.37 12.33Issue and redemption price per share in USD1 16.93 15.36 12.33
1 See note 1
UBS (Lux) Key Selection SICAV – US Equities (USD)
Structure of the Securities Portfolio
As the subfund UBS (Lux) Key Selection SICAV – US Equities (USD) was merged into UBS (Lux) Equity SICAV – US Opportunity as at 15 March 2013, there is no securities portfolio or securities portfolio structure at the end of the reporting period.
156 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAV – US Equities (USD)Annual Report as of 30 September 2013
Statement of Operations USDIncome 1.10.2012-30.9.2013Dividends (Note 1) 423 151.87Income on securities lending (Note 16) 7 504.42Total income 430 656.29
Realized gain (loss) (Note 1)Realized gain (loss) on market-priced securities without options 17 037 414.98Realized result on subscriptions/redemptions (Note 4) 4 834.03Total realized gain (loss) on investments 17 042 249.01Realized gain (loss) on foreign exchange -4 616.74Total realized gain (loss) 17 037 632.27
Net realized gain (loss) of the financial year 16 729 385.81
Changes in unrealized appreciation (depreciation) (Note 1)Unrealized appreciation (depreciation) on market-priced securities without options -9 076 448.27Total changes in unrealized appreciation (depreciation) -9 076 448.27
Net increase (decrease) in net assets as a result of operations 7 652 937.54
Statement of Changes in Net Assets USD 1.10.2012-30.9.2013Net assets at the beginning of the financial year 83 432 816.96Subscriptions 1 370 815.14Redemptions -92 456 569.64Total net subscriptions (redemptions) -91 085 754.50Net income (loss) on investments -308 246.46Total realized gain (loss) 17 037 632.27Total changes in unrealized appreciation (depreciation) -9 076 448.27Net increase (decrease) in net assets as a result of operations 7 652 937.54Net assets at the end of the financial year 0.00
Changes in the Number of Shares outstanding
1.10.2012-30.9.2013Class (EUR) P-accNumber of shares outstanding at the beginning of the financial year 229 659.5170Number of shares issued 9 705.0300Number of shares redeemed -239 364.5470Number of shares outstanding at the end of the financial year 0.0000Class I-B-accNumber of shares outstanding at the beginning of the financial year 28 251.6820Number of shares issued 3 751.3820Number of shares redeemed -32 003.0640Number of shares outstanding at the end of the financial year 0.0000Class P-accNumber of shares outstanding at the beginning of the financial year 4 659 716.9650Number of shares issued 44 358.7060Number of shares redeemed -4 704 075.6710Number of shares outstanding at the end of the financial year 0.0000Class P-distNumber of shares outstanding at the beginning of the financial year 365 144.3790Number of shares issued 4 800.0010Number of shares redeemed -369 944.3800Number of shares outstanding at the end of the financial year 0.0000
The notes are an integral part of the fi nancial statements. 157
UBS (Lux) Key Selection SICAVAnnual Report as of 30 September 2013
Note 1 – Summary of significant accounting policies
The financial statements have been prepared in accor-dance with the generally accepted accounting principles for investment funds in Luxembourg. The significant accounting policies are summarised as follows:
a) Calculation of the net asset valueThe net asset value and the issue and redemption price per share of any subfund or of any share class are expressed in the currencies of account of the subfund or share classes concerned and are calculated every business day by dividing the overall net assets of the subfund, into which each share class is to be allocated, by the number of shares in circulation in the respective share class of this subfund.
The net asset value calculated for a GAO business day of the UBS (Lux) Key Selection SICAV – Global Alpha Opportunities (EUR) subfund will be published no later than on the third banking day after the corresponding GAO business day.
In this context, “business day” refers to normal bank business days in Luxembourg (i.e. each day on which the banks are open during normal business hours) with the exception of individual non-statutory rest days in Luxembourg and days on which exchanges in the main countries in which the subfund invests are closed or 50% or more subfund investments cannot be adequately valued.
For the subfund UBS (Lux) Key Selection SICAV – Global Alpha Opportunities (EUR), “GAO business day” is defined as Wednesday of each week, provided that day is a bank-ing day in Luxembourg. If that Wednesday is not a bank-ing day in Luxembourg, the GAO business day is the next banking day in Luxembourg.
If the total subscriptions or redemptions affecting all the unit classes of a subfund on a single trading day come to a net capital inflow or outflow, the net asset value of the subfund may be increased or reduced respectively. The maximum adjustment amounted to 2% of the net asset value. Estimated transaction costs and tax charges that may be incurred by the subfund as well as the estimated bid/offer spread of the assets in which the Fund invests may be taken into account. The adjustment leads to an increase in net asset value if the net movements result in a rise in all units of the affected subfund. It results in a
reduction of net asset value if the net movements bring about a fall in the number of units. On 26 November 2010, the Board of Directors set a threshold value of 0.3% of the net asset value for each subfund applica-ble as from 1 December 2010. This may consist in the net movement on a trading day in relation to the net fund assets of the subfund concerned. The net asset value would be adjusted only if this threshold were to be passed on a trading day.
The percentage of the net asset value, which is attribut-able to each respective share class of a subfund, is deter-mined by the ratio of the shares in circulation in each share class to the total number of shares in circulation in the subfund, and will change when shares are issued or redeemed.
b) Valuation principles – Liquid funds – whether in the form of cash, bank deposits, bills of exchange and sight securities and receivables, prepaid expenses, cash dividends and declared or accrued interest that has not yet been received – are valued at their full value unless it is unlikely that this value will be fully paid or received, in which case their value is determined by taking into consideration a deduction that seems appropriate in order to portray their true value.
– Securities, derivatives and other investments listed on a stock exchange are valued at the last-known market prices. If these securities, derivatives or other invest-ments are listed on several stock exchanges, the latest available price on the stock exchange that represents the major market for these investments will apply.
In the case of securities, derivatives and other invest-ments infrequently traded on a stock exchange and for which a secondary market among securities trad-ers exists with pricing in line with the market, the Company may value these securities, derivatives and other investments based on these prices. Securities, derivatives and other investments not listed on a stock exchange but which are traded on another regulated market which operates regularly and is recognised and open to the public are valued at the last available price on this market.
– Securities and other investments that are not listed on a stock exchange or traded on another regulated market, and for which no appropriate price can be obtained, are valued by the Company according to other principles chosen by it in good faith on the basis of the likely sales prices.
Notes to the Financial Statements
158 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAVAnnual Report as of 30 September 2013
– Derivatives not listed at a stock exchange (OTC deriva-tives) are valued on the basis of independent pricing sources. In case only one independent pricing source of a derivative is available, the plausibility of the valu-ation obtained will be verified by means of calculation methods recognised by the Company and its auditors, based on the market value of the underlying instru-ment from which the derivative originates.
– Units of other undertakings for collective investment in transferable securities (UCITS) and/or undertak-ings for collective investment (UCI) are valued at their last-known net asset value. For the subfund UBS (Lux) Key Selection SICAV – Global Alpha Opportunities (EUR), the units of other undertakings for collective investment in transferable securities (UCITS) and/or undertakings for collective investment (UCI) may also be valued on the basis of the estimated net asset value for such shares or units available prior to the time of calculation of the net asset value of the subfund in case the estimated net asset value provides a more accurate value of these shares or units.
– (i) If the subfund is a money market fund, – money market instruments not traded on a stock
exchange or on another regulated market open to the public will be valued on the basis of the relevant curves. The valuation based on the curves refers to the interest rate and credit spread components. The fol-lowing principles are applied in this process: for each money market instrument, interest rates nearest the residual maturity are interpolated. The interest rate calculated in this way is converted into a market price by adding a credit spread that reflects the underlying borrower. This credit spread is adjusted if there is a significant change in the credit rating of the borrower.
– interest income earned by subfunds between the order date concerned and the valuation date con-cerned is included in the valuation of the assets of the subfund concerned. The asset value per share on a given valuation date therefore includes projected interest earnings.
(ii) For the other subfunds that do not fall under the regulation in subsection (i), the following regulation shall apply: For money market instruments, the valua-tion price will be gradually adjusted to the redemption price, based on the net acquisition price and retaining the ensuing yield. In the event of a significant change in market conditions, the basis for the valuation of the individual investments is brought into line with the new market yields.
– Securities, money market instruments, derivatives and other investments denominated in a currency other than the currency of account of the relevant subfund and which are not hedged by means of currency trans-actions are valued at the middle currency rate known in Luxembourg or, if not available, on the most repre-sentative market for this currency.
– Fixed-term deposits and fiduciary investments are val-ued at their nominal value plus accumulated interest.
– The value of swaps is calculated by an external ser-vice provider and a second independent valuation is provided by another external service provider. The
calculation is based on the net present value of all cash flows, both inflows and outflows. In some spe-cific cases, internal calculations (based on models and market data made available from Bloomberg), and/or broker statement valuations may be used. The valua-tion methods depend on the respective security and are determined pursuant to the UBS Global Valuation Policy.
The Company is authorised to apply other generally recognised and auditable valuation criteria in good faith in order to achieve an appropriate valuation of the net assets if, due to extraordinary circumstances, a valua-tion in accordance with the aforementioned regulations proves to be unfeasible or inaccurate.
In extraordinary circumstances, additional valuations can be carried out over the course of the day. These new val-uations will then be authoritative for subsequent issues and redemptions of shares.
c) Net realized gain (loss) on sales of securitiesThe realized gains or losses on the sales of securities are calculated on the basis of the average cost of the securities sold.
d) Valuation of forward foreign exchange contractsThe unrealized gain (loss) of outstanding forward foreign exchange contracts is valued on the basis of the forward exchange rates prevailing at valuation date.
e) Valuation of financial futures contractsFinancial futures contracts are valued based on the lat-est available published price applicable on the valuation date. Realized gains and losses and the changes in unre-alized gains and losses are recorded in the statement of operations. The realized gains and losses are calcu-lated in accordance with the FIFO method, i.e. the first contracts acquired are regarded as the first to be sold.
f) Conversion of foreign currenciesBank accounts, other net assets and the valuation of the investments in securities held denominated in curren-cies other than the reference currency of the different subfunds are converted at the mid closing spot rates on the valuation date. Income and expenses denominated in currencies other than the currency of the different subfunds are converted at the mid closing spot rates at payment date. Gain or loss on foreign exchange is included in the statement of operations.
The cost of securities denominated in currencies other than the reference currency of the different subfunds is converted at the mid closing spot rate prevailing on the day of acquisition.
g) Accounting of securities’ portfolio transactionsThe securities’ portfolio transactions are accounted for the bank business day following the transaction dates.
The notes are an integral part of the fi nancial statements. 159
UBS (Lux) Key Selection SICAVAnnual Report as of 30 September 2013
h) Consolidated financial statementsThe consolidated financial statements of the Company are expressed in EUR. The various items of the consolidated statement of net assets and the consolidated statement of operations as of 30 September 2013 of the Company are equal to the sum of the corresponding items in the financial statements of each subfund converted into EUR at the following exchange rates.
The following exchange rates were used for the conversion of the consolidated financial statements as at 30 September 2013:
Exchange rates
EUR 1 = CHF 1.224038
EUR 1 = USD 1.353650
i) Income recognitionDividends, net of withholding taxes, are recognized as income on the “ex-dividend” date. Interest income is accrued on a daily basis.
j) Receivable on securities sales,Payable on securities purchasesThe account “Receivable on securities sales” can also include receivables from foreign currency transactions. The account “Payable on securities purchases” can also include payables from foreign currency transactions.
k) SwapsThe Company may enter into interest rate swap contracts, forward rate agreements on interest rates swaptions and credit default swaps, if they are executed with first-class financial institutions that specialize in transactions of this kind.
The value of swap transactions is calculated by an exter-nal service provider and a second independent valuation is made available by another external service provider. The calculation is based on the net present value of all cash flows, both inflows and outflows.
In some specific cases, internal calculations based on models and market data available from Bloomberg and/or broker statement valuations may be used.
The valuation methods depend on the respective security and are determined pursuant to the UBS Global Valuation Policy.
This valuation method is approved by the Board of Directors.
Changes in unrealized gains and losses are reflected in the statement of operations under the changes in “Unrealized appreciation (depreciation) on swaps”.
Gains or losses on swaps incurred when closed-out or matured are recorded as “Realized gain (loss) on swaps” in the statement of operations.
Note 2 – Flat fee
The Company pays a monthly flat fee for the various subfunds and/or share classes calculated on the average net asset value of the subfunds and/or share classes indi-cated in the table below:
UBS (Lux) Key Selection SICAV – Active Defense 5 (CHF)UBS (Lux) Key Selection SICAV – Active Defense 5 (EUR)UBS (Lux) Key Selection SICAV – Active Defense 5 (USD)
Flat fee
Share classes with “P” in their name 1.200%
Share classes with “K-1” in their name 0.700%
UBS (Lux) Key Selection SICAV – All-Rounder (EUR)
Flat fee
Share classes with “P” in their name 1.320%
Share classes with “N” in their name 2.000%
Share classes with “K-1” in their name 0.900%
Share classes with “F” in their name 0.500%
Share classes with “Q” in their name 0.780%
Share classes with “I-A1” in their name 0.640%
Share classes with “I-A2” in their name 0.580%
Share classes with “I-A3” in their name 0.500%
Share classes with “I-B” in their name 0.065%
Share classes with “I-X” in their name 0.000%
Share classes with “U-X” in their name 0.000%
UBS (Lux) Key Selection SICAV – Asian Equities (USD)
For share class “I-B”, a fee will be charged to cover the costs of Fund administration (comprising the costs of the Company, administration and Custodian Bank). The costs for asset management and distribution are charged directly outside of the Company under a separate contract between the investor and UBS Global Asset Management or one of its authorised representatives.
Costs in connection with the services to be performed for share classes “I-X” and “U-X” pertaining to asset management, Fund administration (comprising the costs of the Company, Administrative Agent and Custodian Bank) and distribution will be settled via the compensa-tion to which UBS AG is entitled under a separate con-tract with the investor.
Out of the above mentioned monthly flat fee, the Company pays for all the costs incurred in connection with administration, portfolio management and safe-keeping of the Company’s assets as well as their sale, including: – annual charges and costs of approvals and supervision of the Company in Luxembourg and abroad;
– other charges made by supervisory authorities; – printing of Articles of Association and prospectuses, the annual and semi-annual reports;
– price publications and the publication of notices to investors;
– preparation of the KIID or of corresponding document of a distribution country of the Company;
– fees charged in connection with listing the Company and with sales in Luxembourg and abroad;
– commission charges and costs of the custodian bank for safekeeping the Company’s assets, dealing with payments and other expenses payable in accordance with the fund law dated 17 December 2010;
– fees and other costs for the payment of dividends to shareholders and
– audit fees.
162 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAVAnnual Report as of 30 September 2013
Out of the management commission sales fees are paid to distributors and asset managers of the Company.
The custodian bank, administrative agent and Company nevertheless all have a claim to be reimbursed the costs for special arrangements that they may make on behalf of shareholders or such costs will be charged direct to the Company.
The Company will additionally bear all costs of transac-tions (broker’s normal commission, fees, taxes, etc.) connected with administration of the Company assets.
The Company will also pay all taxes levied on the assets and income of the Company, particularly the “taxe d’abonnement”.
All costs which can be allocated accurately to individual subfunds and/or individual share classes will be charged to these subfunds. If costs pertain to several or all subfunds, however, these costs will be charged to the subfunds concerned in proportion to their relative net asset values.
In the subfunds that may invest in other UCIs or UCITS under the terms of their investment policies, fees may be incurred both at the level of the relevant investment fund as well as at the level of the subfund. The total flat fees chargeable at the level of the subfunds or share classes and Company shall amount to not more than 1.00% plus the respective flat fee for the share class of the subfund mak-ing the investment. The above restriction does not apply to the subfund UBS (Lux) Key Selection SICAV – Global Alpha Opportunities (EUR) and may be exceeded.
In the case of investments in units of funds managed directly or indirectly by the Management Company or another company related to it by common management or control, or by a substantial direct or indirect holding, the subfund making the investment may not be charged with any of the target fund’s issue or redemption commissions.
Note 3 – Taxe d’abonnement
In accordance with the law and the regulations currently in force, the Company is subject to a subscription tax at the annual rate of 0.05%, for institutional share classes only a reduced “taxe d’abonnement” of 0.01% p.a., payable quarterly and calculated on the basis of the net assets of each subfund at the end of each quarter.
The “taxe d’abonnement” is waived for that part of the net assets invested in units or shares of other undertak-ings for collective investment that have already paid the “taxe d’abonnement” in accordance with the statutory provisions of Luxembourg law.
Note 4 – Realized result on subscriptions/redemptions
The average fees (brokerage commission, stock exchange fees/duties, etc.) incurred by the subfund in connection with the related transactions may be charged to the investor on a net asset value basis. This income is in favour of the subfund and mentioned in the Statement of Operations as ”Realized result on subscriptions/redemptions”.
Note 5 – Income distribution
The general meeting of shareholders shall decide, upon the proposal of the Board of Directors and after closing the annual accounts per subfund, whether and to what extent distributions are to be paid by each subfund and/or share class. The payment of distributions must not result in the net assets of the Company falling below the mini-mum volume of assets prescribed by law. If a distribu-tion is made, payment will be effected no later than four months after the end of the financial year.
The Board of Directors is authorized to pay interim divi-dends and to suspend the payment of distributions.
The details of the distributions are unaudited.
Note 6 – Soft commission arrangements
During the period from 1 October 2012 until 30 September 2013, no ”soft commission arrange-ments” were entered into on behalf of UBS (Lux) Key Selection SICAV and “soft commissions“ amount to nil.
Note 7 – Commitments on Financial Futures and Options
Commitments on financial futures and options per subfund and respective currency as of 30 September 2013 can be summarised as follows:
a) Financial Futures
UBS (Lux) Financial Futures Financial FuturesKey Selection SICAV on indices on indices (purchased) (sold)
UBS (Lux) Key Selection SICAV Options on indices (Sold)
– Dynamic Alpha (USD)1 9 442 962.26 USD
– Emerging Markets Income (USD) 1 272 213.28 USD
– Multi Asset Income (USD)2 4 691 792.18 USD
1 formerly UBS (Lux) Key Selection SICAV – Absolute Return Plus (USD)2 formerly UBS (Lux) Key Selection SICAV – Multi Asset Income
Note 8 – Total Expense Ratio (TER)
This ratio was calculated in accordance with the Swiss Funds & Asset Management Association (SFAMA) “Guidelines on the calculation and disclosure of the TER and PTR” in the current version and expresses the sum of all costs and commissions charged on an ongoing basis to the net assets (operating expenses) taken retrospec-tively as a percentage of the net assets.
TER for the last 12 months:
UBS (Lux) Key Selection SICAV Total Expense Ratio (TER)
– Active Defense 5 (CHF) P-acc 1.31%
– Active Defense 5 (EUR) P-acc 1.29%
– Active Defense 5 (USD) P-acc 1.28%
– All-Rounder (EUR) N-acc 2.12%
– All-Rounder (EUR) Q-acc 0.92%
– All-Rounder (EUR) U-X-acc 0.15%
– Asian Equities (USD) (GBP) P-dist 2.10%
– Asian Equities (USD) P-acc 2.10%
– Asian Equities (USD) U-X-acc 0.01%
– Commodity Strategy (USD) U-X-acc 0.01%
– Dynamic Alpha (USD) (CAD hedged) P-acc 1.98%
– Dynamic Alpha (USD) (CHF hedged) I-X-acc 0.01%
UBS (Lux) Key Selection SICAV Total Expense Ratio (TER)
– Emerging Markets Income (USD) (AUD hedged) P-mdist 2.29%
– Emerging Markets Income (USD) (EUR hedged) P-acc 2.29%
– Emerging Markets Income (USD) (EUR hedged) P-dist 2.29%
– Emerging Markets Income (USD) (EUR hedged) Q-acc 1.34%
– Emerging Markets Income (USD) (HKD) P-mdist 2.29%
– Emerging Markets Income (USD) (SGD hedged) P-mdist 2.30%
– Emerging Markets Income (USD) P-acc 2.30%
– Emerging Markets Income (USD) P-dist 2.29%
– Emerging Markets Income (USD) P-mdist 2.29%
– EUR Bonds (EUR) P-acc 1.07%
– EUR Bonds (EUR) P-dist 1.07%
– European Core Equities (EUR) K-1-acc 1.13%
– European Core Equities (EUR) P-acc 2.10%
– European Core Equities (EUR) U-X-acc 0.01%
– Global Allocation (CHF) P-acc 2.09%
– Global Allocation (EUR) (CAD hedged) P-acc 2.08%
– Global Allocation (EUR) (GBP hedged) P-acc 2.08%
– Global Allocation (EUR) (SGD hedged) P-acc 2.08%
– Global Allocation (EUR) I-B-acc 0.07%
– Global Allocation (EUR) N-acc 2.55%
– Global Allocation (EUR) P-acc 2.08%
– Global Allocation (EUR) Q-acc 1.08%
– Global Allocation (USD) (JPY) P-acc 2.08%
– Global Allocation (USD) I-A2-acc 0.74%
– Global Allocation (USD) I-X-acc 0.03%
– Global Allocation (USD) K-1-acc 1.15%
– Global Allocation (USD) P-acc 2.09%
– Global Allocation Focus Europe (EUR) (CHF hedged) P-acc 2.10%
– Global Allocation Focus Europe (EUR) (USD hedged) P-acc 2.10%
– Global Allocation Focus Europe (EUR) K-1-acc 1.15%
– Global Allocation Focus Europe (EUR) P-acc 2.10%
– Global Alpha Opportunities (EUR) (CHF hedged) P-acc 3.76%
– Global Alpha Opportunities (EUR) (USD hedged) I-A1-acc 2.65%
– Global Alpha Opportunities (EUR) (USD hedged) P-acc 3.76%
– Global Alpha Opportunities (EUR) I-A1-acc 2.65%
– Global Alpha Opportunities (EUR) I-X-acc 1.55%
– Global Alpha Opportunities (EUR) P-acc 3.76%
– Global Alpha Opportunities (EUR) U-X-acc 1.55%
– Global Equities (USD) (EUR) K-1-acc 1.14%
– Global Equities (USD) (EUR) P-acc 2.10%
– Global Equities (USD) I-X-acc 0.01%
– Global Equities (USD) P-acc 2.10%
– Global Equities (USD) U-X-acc 0.01%
– Global Real Estate Securities (USD) P-acc 1.98%
– Multi Asset Income (USD) (CHF hedged) I-X-acc 0.27%
– Multi Asset Income (USD) (CHF hedged) P-acc 1.78%
– Multi Asset Income (USD) (CHF hedged) P-dist 1.80%
– Multi Asset Income (USD) (EUR hedged) I-X-acc 0.27%
– Multi Asset Income (USD) (EUR hedged) N-dist 2.31%
164 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAVAnnual Report as of 30 September 2013
UBS (Lux) Key Selection SICAV Total Expense Ratio (TER)
– Multi Asset Income (USD) (EUR hedged) P-acc 1.80%
– Multi Asset Income (USD) (EUR hedged) P-dist 1.80%
– Multi Asset Income (USD) (GBP hedged) P-acc 1.79%
– Multi Asset Income (USD) (GBP hedged) P-UK-dist 1.79%
– Multi Asset Income (USD) P-acc 1.78%
– Multi Asset Income (USD) P-dist 1.80%
– Smart Allocator (USD) U-X-acc 0.01%
The TER for classes of shares which were active less than a 12 month period are annualised.
Transaction costs and any other costs incurred in connec-tion with currency hedging are not included in the TER.
Note 9 – Portfolio Turnover Rate (PTR)
This ratio was calculated in accordance with the Swiss Funds & Asset Management Association (SFAMA) “Guidelines on the calculation and disclosure of the TER and PTR” in the current version. The PTR is considered an indicator of the relevance of the additional costs incurred when buying and selling investments. It shows how many security transactions occurred as a result of voluntary investment shifts in relation to the average net assets. Transactions that resulted from uncontrollable subscrip-tions and redemptions are not included in this rate.
1 formerly UBS (Lux) Key Selection SICAV – Asian Equities 2 formerly UBS (Lux) Key Selection SICAV – Absolute Return Plus (USD) 3 formerly UBS (Lux) Key Selection SICAV – Emerging Markets Allocation 4 formerly UBS (Lux) Key Selection SICAV – EUR Bonds 5 formerly UBS (Lux) Key Selection SICAV – European Core Equities 6 formerly UBS (Lux) Key Selection SICAV – Global Allocation Focus Europe 7 formerly UBS (Lux) Key Selection SICAV – Global Alpha Opportunities 8 formerly UBS (Lux) Key Selection SICAV – Global Equities 9 formerly UBS (Lux) Key Selection SICAV – Global Real Estate Securities10 formerly UBS (Lux) Key Selection SICAV – Multi Asset Income
Note 10 – Investment in other UBS UCITS and/or UCIs
As at 30 September 2013 UBS (Lux) Key Selection SICAV has investments in other UCITS and/or UCIs that are managed by UBS. The maximum proportion of management fees charged to the UCITS and/or other UCIs are 0% as at 30 September 2013.
Note 11 – Transaction costs
Transaction costs include brokerage fees, stamp duty, local taxes and other foreign charges if incurred during the fiscal year. Transaction fees are included in the cost of securities purchased and sold.
For the financial year ended on 30 September 2013, the fund incurred transaction costs relating to purchase or sale of investments in securities and similar transactions as follows:
The notes are an integral part of the fi nancial statements. 165
UBS (Lux) Key Selection SICAVAnnual Report as of 30 September 2013
Not all transaction costs are separately identifiable. For fixed income investments, forward currency contracts and other derivative contracts, transaction costs will be included in the purchase and sale price of the investment. Whilst not separately identifiable these transaction costs will be captured within the performance of each fund.
Note 12 – Subsequent Event
The Board of Directors of the Company has decided on 20 December 2013 to liquidate the following subfunds:
UBS (Lux) Key Selection SICAV – Active Defense 5 (EUR)UBS (Lux) Key Selection SICAV – Active Defense 5 (USD)UBS (Lux) Key Selection SICAV – Active Defense 5 (CHF)
Note 13 – Name change/Merger
The Board of Directors of the Company has decided to rename the following share classes with effect 25 October 2012:
Old name New nameUBS (Lux) Key Selection SICAV – UBS (Lux) Key Selection SICAV – Absolute Return Plus (USD) (CAD hedged) P-acc Dynamic Alpha (USD) (CAD hedged) P-acc
UBS (Lux) Key Selection SICAV – Global Real Estate UBS (Lux) Key Selection SICAV – Global Real EstateSecurities (EUR hedged) I-A1-acc Securities (USD) (EUR hedged) I-A1-acc
UBS (Lux) Key Selection SICAV – Multi Asset Income UBS (Lux) Key Selection SICAV – Multi Asset Income(CHF hedged) I-X-acc (USD) (CHF hedged) I-X-acc
UBS (Lux) Key Selection SICAV – Multi Asset Income UBS (Lux) Key Selection SICAV – Multi Asset Income(CHF hedged) P-dist (USD) (CHF hedged) P-dist
UBS (Lux) Key Selection SICAV – Multi Asset Income UBS (Lux) Key Selection SICAV – Multi Asset Income(EUR hedged) I-X-acc (USD) (EUR hedged) I-X-acc
UBS (Lux) Key Selection SICAV – Multi Asset Income UBS (Lux) Key Selection SICAV – Multi Asset Income(EUR hedged) N-dist (USD) (EUR hedged) N-dist
UBS (Lux) Key Selection SICAV – Multi Asset Income UBS (Lux) Key Selection SICAV – Multi Asset Income(EUR hedged) P-acc (USD) (EUR hedged) P-acc
UBS (Lux) Key Selection SICAV – Multi Asset Income UBS (Lux) Key Selection SICAV – Multi Asset Income(EUR hedged) P-dist (USD) (EUR hedged) P-dist
Old name New nameUBS (Lux) Key Selection SICAV – Multi Asset Income UBS (Lux) Key Selection SICAV – Multi Asset Income(GBP hedged) P-UK-dist (USD) (GBP hedged) P-UK-dist
UBS (Lux) Key Selection SICAV UBS (Lux) Equity SICAV– US Equities (USD) I-B-acc – US Opportunity (USD) I-B-acc
UBS (Lux) Key Selection SICAV UBS (Lux) Equity SICAV– US Equities (USD) P-acc – US Opportunity (USD) P-acc
UBS (Lux) Key Selection SICAV UBS (Lux) Equity SICAV– US Equities (USD) P-dist – US Opportunity (USD) P-dist
Note 14 – Master Feeder Structure
UBS (Lux) Key Selection SICAV – All-Rounder (EUR)
The subfund is a feeder structure following Art. 77 of the Law of 2010. It invests at least 85% of its net assets in shares of the UBS (Lux) SICAV 1 – All-Rounder (USD) (“the Master UCITS”). The subfund may hold up to 15% of its net assets in: a) ancillary liquid assets in accordance with Article 41, paragraph (2), second sub-paragraph of the Law of 2010; b) financial derivative instruments, which may be used only for hedging purposes, in accordance with Article 41 paragraph (1), point g) and Article 42, paragraphs (2) and (3) of the Law of 2010. The Master UCITS is the subfund of an undertaking for collective investment in accordance with Part I of the Law of 2010, which is managed by the same management company as the feeder UCITS.
166 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAVAnnual Report as of 30 September 2013
The sum of the costs of the Feeder UCITS and the proportional costs of the Master UCITS are stated in Note 8 – Total Expense Ratio.
The sales prospectus, the KIID, the articles of association of the Company, the annual and semi-annual reports as well as the portfolio movements of the Master UCITS are available free of charge from UBS Fund Management (Luxembourg) S.A., 33A, avenue J.F. Kennedy, L-1855 Luxembourg.
Note 15 – Applicable law, place of performance and authoritative language
The Luxembourg District Court is the place of perfor-mance for all legal disputes between the shareholders, the Management Company and the custodian bank. Luxembourg law applies. However, in matters concern-ing the claims of investors from other countries, the Management Company and/or the custodian bank can elect to make themselves and the fund subject to the jurisdiction of the countries in which the fund units were bought and sold.
The German version of these financial statements is the authoritative version and only this version was audited by the auditor. However, in the case of Company shares sold to investors from the other countries in which Company shares can be bought and sold, the Company and the Custodian Bank may recognize approved translations (i.e. approved by the Company and the Custodian Bank) into the languages concerned as binding upon itself.
The notes are an integral part of the fi nancial statements. 167
UBS (Lux) Key Selection SICAVAnnual Report as of 30 September 2013
Note 16 – OTC Derivatives and Securities Lending
If the Company enters into OTC transactions, it may be exposed to risks related to the creditworthiness of the OTC counterparties: when the Company enters into futures contracts, options and swap transactions or uses other derivative techniques it is subject to the risk that an OTC counterparty may not meet (or cannot meet) its obligations under a specific or multiple contracts. Counterparty risk can be reduced by depositing a security. If the Company is owed a security pursuant to an applicable agreement, such security shall be held in custody by the Custodian bank/Custodian in favour of the Company or transferred to the OTC counterparty as agreed between the Company and the OTC counterparty. Bankruptcy and insolvency events or other credit events with the OTC counterparty, the Custodian Bank or within their subcustodian/correspondent bank network may result in the rights or recognition of the Company in connection with the security to be delayed, restricted or even eliminated, which would force the Company to fulfil its obligations in the framework of the OTC transaction, in spite of any security that had previously been made available to cover any such obligation.
The Company may lend portions of its securities portfolio to third parties. In general, lendings may only be effected via recognized clearing houses such as Clearstream International or Euroclear, or through the intermediary of prime financial institutions that specialise in such activities and in the modus specified by them. Securities lending income and costs are shown separately in the Statement of Operations. Collateral is received in relation to securities lent. Collateral is composed of high quality securities in an amount typically at least equal to the market value of the secu-rities loaned.
* Derivatives traded on an official exchange market are not included in this table as they are guaranteed by a clearing house. In the event of a counterparty default, the clearing house assumes the risk of loss.
1 formerly UBS (Lux) Key Selection SICAV – Absolute Return Plus (USD)2 formerly UBS (Lux) Key Selection SICAV – Global Allocation Focus Europe
168 The notes are an integral part of the fi nancial statements.
UBS (Lux) Key Selection SICAVAnnual Report as of 30 September 2013
* Derivatives traded on an official exchange market are not included in this table as they are guaranteed by a clearing house. In the event of a counterparty default, the clearing house assumes the risk of loss.
1 formerly UBS (Lux) Key Selection SICAV – Asian Equities 2 formerly UBS (Lux) Key Selection SICAV – Absolute Return Plus (USD) 3 formerly UBS (Lux) Key Selection SICAV – Emerging Markets Allocation 4 formerly UBS (Lux) Key Selection SICAV – EUR Bonds 5 formerly UBS (Lux) Key Selection SICAV – European Core Equities 6 formerly UBS (Lux) Key Selection SICAV – Global Allocation Focus Europe 7 formerly UBS (Lux) Key Selection SICAV – Global Alpha Opportunities 8 formerly UBS (Lux) Key Selection SICAV – Global Equities 9 formerly UBS (Lux) Key Selection SICAV – Global Real Estate Securities10 formerly UBS (Lux) Key Selection SICAV – Multi Asset Income
Collateral breakdown Weight %
UBS AG
Cash 0.00%
Bonds 39.10%
Equity 60.90%
171
UBS (Lux) Key Selection SICAVAnnual Report as of 30 September 2013
The appendix data were not audited:
Customized BenchmarkUBS (Lux) Key Selection SICAV– Global Allocation (CHF) GSMI Customized in CHF
MSCI All Country World (net) hedged in CHF 65.0%
Citigroup U.S. GBI hedged in CHF 15.0%
Citigroup WGBI ex. US hedged in CHF 15.0%
JPM EMBI Global hedged in CHF 2.0%
ML US High Yield Cash Pay Constrained hedged in CHF 3.0%
Total 100.0%
Customized BenchmarkUBS (Lux) Key Selection SICAV– Global Allocation (EUR)GSMI Customized in EUR
MSCI All Country World (net) hedged in EUR 65.0%
Citigroup U.S. GBI hedged in EUR 15.0%
Citigroup WGBI ex. US hedged in EUR 15.0%
JPM EMBI Global hedged in EUR 2.0%
ML US High Yield Cash Pay Constrained hedged in EUR 3.0%
Total 100.0%
Customized BenchmarkUBS (Lux) Key Selection SICAV– Global Allocation (EUR)GSMI Customized hedged in CAD
MSCI All Country World (net) hedged in CAD 65.0%
Citigroup U.S. GBI hedged in CAD 15.0%
Citigroup WGBI ex. US hedged in CAD 15.0%
JPM EMBI Global hedged in CAD 2.0%
ML US High Yield Cash Pay Constrained hedged in CAD 3.0%
Total 100.0%
Customized BenchmarkUBS (Lux) Key Selection SICAV– Global Allocation (EUR)GSMI Customized hedged in SGD
MSCI All Country World (net) hedged in SGD 65.0%
Citigroup U.S. GBI hedged in SGD 15.0%
Citigroup WGBI ex. US hedged in SGD 15.0%
JPM EMBI Global hedged in SGD 2.0%
ML US High Yield Cash Pay Constrained hedged in SGD 3.0%
Total 100.0%
Customized BenchmarkUBS (Lux) Key Selection SICAV– Global Allocation (EUR)GSMI Customized hedged in GBP
MSCI All Country World (net) hedged in GBP 65.0%
Citigroup U.S. GBI hedged in GBP 15.0%
Citigroup WGBI ex. US hedged in GBP 15.0%
JPM EMBI Global hedged in GBP 2.0%
ML US High Yield Cash Pay Constrained hedged in GBP 3.0%
Total 100.0%
Customized BenchmarkUBS (Lux) Key Selection SICAV– Global Allocation (USD)GSMI Customized in USD
MSCI All Country World (net) in USD 65.0%
Citigroup U.S. GBI in USD 15.0%
Citigroup WGBI ex. US in USD 15.0%
JPM EMBI Global in USD 2.0%
ML US High Yield Cash Pay Constrained in USD 3.0%
Total 100.0%
Customized BenchmarkUBS (Lux) Key Selection SICAV– Global Allocation Focus Europe (EUR)GAF Europe hedged in CHF
MSCI All Country World (net) hedged in CHF 50.0%
MSCI Europe (net) hedged in CHF 15.0%
Citigroup WGBI hedged in CHF 20.0%
Citigroup EMU GBI hedged in CHF 10.0%
JPM EMBI Global hedged in CHF 2.0%
ML US High Yield Cash Pay Constrained hedged in CHF 3.0%
Total 100.0%
Customized BenchmarkUBS (Lux) Key Selection SICAV– Global Allocation Focus Europe (EUR) GAF Europe in EUR
MSCI All Country World (net) hedged in EUR 50.0%
MSCI Europe (net) hedged in EUR 15.0%
Citigroup WGBI hedged in EUR 20.0%
Citigroup EMU GBI in EUR 10.0%
JPM EMBI Global hedged in EUR 2.0%
ML US High Yield Cash Pay Constrained hedged in EUR 3.0%
Total 100.0%
Appendix
172
UBS (Lux) Key Selection SICAVAnnual Report as of 30 September 2013
Customized BenchmarkUBS (Lux) Key Selection SICAV– Global Allocation Focus Europe (EUR)GAF Europe hedged in USD
MSCI All Country World (net) hedged in USD 50.0%
MSCI Europe (net) hedged in USD 15.0%
Citigroup WGBI hedged in USD 20.0%
Citigroup EMU GBI hedged in USD 10.0%
JPM EMBI Global hedged in USD 2.0%
ML US High Yield Cash Pay Constrained hedged in USD 3.0%
Total 100.0%
173
UBS (Lux) Key Selection SICAVAnnual Report as of 30 September 2013
Global Exposure (unaudited)
Risk managementRisk management in accordance with the commitment approach and the value-at-risk approach is applied pursuant to the applicable laws and regulatory provisions.
LeverageLeverage is defined pursuant to the applicable CESR directives as the total of the notional values of the derivatives used by the respective subfund. According to this definition, leverage may result in artificially increased leverage amounts, as some derivatives that can be used for hedging purposes may be included in the calculation. Conse-quently, this information does not necessarily reflect the precise actual leverage risk that the investor is exposed to.
Subfund Global risk Model Min Max Avg Leverage Reference calculation used VaR (%) VaR (%) VaR (%) portfolio method (benchmark)
UBS (Lux) Key Selection SICAV – Active Defense 5 (CHF) Absolute VaR approach Historical VaR 20.0% 111.0% 57.0% 31.0% n/a
UBS (Lux) Key Selection SICAV – Active Defense 5 (EUR) Absolute VaR approach Historical VaR 23.0% 126.0% 64.0% 30.0% n/a
UBS (Lux) Key Selection SICAV – Active Defense 5 (USD) Absolute VaR approach Historical VaR 22.0% 124.0% 63.0% 37.0% n/a
The reference portfolio reflects the properties of a broadly diversified portfolio that combines international shares UBS (Lux) Key Selection SICAV with international – All-Rounder (EUR) Relative VaR approach Historical VaR 40.0% 87.0% 59.0% 0.0% government bonds.
The reference portfolio reflects the properties of a broadly diversified UBS (Lux) Key Selection SICAV portfolio of – Commodity Strategy (USD) Relative VaR approach Historical VaR 46.0% 85.0% 69.0% 94.0% commodities.
UBS (Lux) Key Selection SICAV – Dynamic Alpha (USD) Absolute VaR approach Historical VaR 8.0% 41.0% 19.0% 234.0% n/a
The reference portfolio reflects the properties of a broadly diversified portfolio of emergingUBS (Lux) Key Selection SICAV market shares and– Emerging Markets bonds as well
Allocation (USD) Relative VaR approach Historical VaR 18.0% 76.0% 51.0% 52.0% as commodities.
The reference portfolio reflects the properties of a broadly diversified portfolio, which combines investment grade and non-UBS (Lux) Key Selection SICAV investment grade– Emerging Markets bonds and shares from
Income (USD) Relative VaR approach Historical VaR 21.0% 61.0% 43.0% 15.0% emerging markets.
The reference portfolio reflects the properties of a broadly diversified portfolio of international shares and government bonds, US bonds below investment grade level and UBS (Lux) Key Selection SICAV emerging market– Global Allocation (CHF) Relative VaR approach Historical VaR 27.0% 75.0% 41.0% 163.0% bonds.
The reference portfolio reflects the properties of a broadly diversified portfolio of international shares and government bonds, US bonds below investment grade levelUBS (Lux) Key Selection SICAV and emerging market– Global Allocation (EUR) Relative VaR approach Historical VaR 50.0% 71.0% 61.0% 137.0% bonds.
The reference portfolio reflects the properties of a broadly diversified portfolio of international shares and government bonds, US bonds below investment grade levelUBS (Lux) Key Selection SICAV and emerging– Global Allocation (USD) Relative VaR approach Historical VaR 50.0% 79.0% 62.0% 108.0% market bonds.
The reference porfolio reflects the properties of a well diversified composite index including stocks and government, high yieldUBS (Lux) Key Selection SICAV and emerging markets– Global Allocation Focus bonds with a specific
Europe (EUR) Relative VaR approach Historical VaR 49.0% 70.0% 59.0% 148.0% focus on Europe.
UBS (Lux) Key Selection SICAV – Global Alpha
Opportunities (EUR) Absolute VaR approach Historical VaR 1.0% 50.0% 40.0% 0.0% n/a