Ubs global am

Key themes in Asia/ Emerging MarketsProjit Chatterjee, CFAEquity Strategist, EM and Asian EquitiesUBS Global AM

April 2013

UBS Emerging Markets High Dividend FundUBS Asian Consumption Fund

For professional clients only

NL Version

1

Disclaimer

For marketing and information purposes by UBS. UBS funds under Luxembourg law. UBS (Lux) Equity Fund – Asian Consumption (USD) P-acc, UBS (Lux) Equity SICAV - Emerging Markets High Dividend (USD) P-acc, UBS (Lux) Equity SICAV - Asia High Dividend (USD) P-acc, s an investment institution (beleggingsinstelling) within the meaning of the FSMA and registered in the Dutch register held with the Dutch Authority for the Financial Markets (Stichting Autoriteit Financiële Markten). Representative in the Netherlands for UBS funds established under foreign law: UBS Global Asset Management, UBS Investment Bank Nederland B.V. Rembrandt Tower – 18e verdieping, Amstelplein 1, 1096 HA AMSTERDAM, The Netherlands. Prospectuses, simplified prospectuses or Key investor information, the articles of association or the management regulations as well as annualand semi-annual reports of UBS funds are available free of charge from UBS Investment Bank Nederland BV or on the internet at www.ubs.com/fondsen. Before investing in a product please read the latest prospectus carefully and thoroughly. Units of UBS funds mentioned herein may not be offered, sold or delivered in the United States. The information mentioned herein is not intended to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. Past performance is not a reliable indicator of future results. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units. Commissions and costs have a negative impact on performance. If the currency of a financial product or financial service is different from your reference currency, the return can increase or decrease as a result of currency fluctuations. This information pays no regard to the specific or future investment objectives, financial or tax situation or particular needs of any specific recipient. The details and opinions contained in this document are provided byUBS without any guarantee or warranty and are for the recipient's personal use and information purposes only. This document contains statements that constitute “forward-looking statements”, including, but not limited to, statements relating to our future business development. While these forward-looking statements represent our judgments and future expectations concerning the development of our business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. Source for all data and charts (if not indicated otherwise): UBS Global Asset Management

© UBS 2013. The key symbol and UBS are among the registered and unregistered trademarks of UBS. All rights reserved.

2

GEN0190n.ppt

Table of Contents

SECTION 1 EM/ Asia Outlook: Key Points 3

SECTION 2 Team and Capabilities 14

SECTION 3 EM/ Asia High Dividend 17

SECTION 4 Asian Consumption Fund 30

APPENDIX A Bios and disclaimers 42

SECTION 1

EM/ Asia Outlook: Key Points

4

EM and DM performance have decoupled recently

EM underperforming DM (US and Japan) since beginning of 2013

Source: UBS Global AM, Factset as of April 2013

5

Economic data out of DM surprising more positively than EM

80.0

90.0

100.0

110.0

120.0

130.0

140.0

150.0

160.0

Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13

EM growth surprise index DM growth surprise index

UBS Growth Surprise Indices

Source: UBS IB research, Bloomberg as of March 2013

The global surprise index is calculated as a GDP-weighted average of country-specific (27 countries) data surprise indices from a host of developed and major developing economies. These are in turn calculated using data on outturns and consensus forecasts from Bloomberg.

6

Economic indicators in Asia are turning up moderatelyIndustrial production shows gradual recovery

Source: Morgan Stanley research as of Apr 2013. Data as of end Feb 13

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13

China, YoY % China, YoY % 3MMA AXJ ex China, YoY % AXJ ex China, YoY % 3MMA

7

Emerging Markets do not face major sovereign debt issues

* Average using GDP-PPP Weights. IMF Forecasts, World Economic Outlook, as of June 2012Source: Morgan Stanley Research

Sovereign Debt to GDP*

0

20

40

60

80

100

120

50 55 60 65 70 75 80 85 90 95 00 05 10 15

% O

F G

DP

G7 ADVANCED ECONOMIES EMERGING ECONOMIES

888

Urbanisation will continue to be a key driver of growth

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050

China India Russia Brazil Japan US Indonesia Korea Germany

Source: UN Population Statistics, GS Global ECS Research as of March 2012

Urbanisation ratio (%)

Japan (pre

1950)Korea(1976)

China(2010)

50%

India(2047E)

Urbanisation creates greater economic activity

9

-15% -10% -5% 0% 5% 10% 15% 20% 25%

Singapore

Taiwan

Malaysia

Hong Kong

China

Philippines

Korea

Russia

Thailand

Hungary

Mexico

Indonesia

Czech R.

South Africa

Peru

Chile

Brazil

Colombia

India

Poland

Turkey

Current account as % of GDP Government balance as % of GDP3-year % chg in loans (real)

-40% -20% 0% 20% 40% 60% 80% 100% 120%

Hungary

South Africa

Czech R.

Korea

Taiwan

Poland

Mexico

Chile

Thailand

Malaysia

India

Russia

Singapore

Philippines

Brazil

Peru

Colombia

China

Hong Kong

Indonesia

Turkey

9

Private sector debt has risen quickly in many EM/Asia markets

Source: UBS IB, IMF; as of 30 September 2012

Twin deficits in Turkey, India, Brazil

10

Build up of Credit in Asia

70.0

75.0

80.0

85.0

90.0

95.0

100.0

105.0

110.0

Dec

-90

Dec

-91

Dec

-92

Dec

-93

Dec

-94

Dec

-95

Dec

-96

Dec

-97

Dec

-98

Dec

-99

Dec

-00

Dec

-01

Dec

-02

Dec

-03

Dec

-04

Dec

-05

Dec

-06

Dec

-07

Dec

-08

Dec

-09

Dec

-10

Dec

-11

Dec

-12

Asia ex Japan Asia ex Japan and China

leverage

Global Financial Crisis

Asian Financial Crisis

Bank Credit to GDP ratio is now higher than 1997 peak

Source: CEIC ,HSBC as of Apr 2013. Data up to Dec 2012

11

Emerging Market trading below historic average and below DMP/E and P/B up to March 2013

Source: Factset, I/B/E/S, UBS Global AM as of end March 2013

0

5

10

15

20

25

30

Sep-03 Sep-04 Sep-05 Sep-06 Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12

EM (Emerging Markets) 12M trailing PE Average

+1SD (EM) -1SD (EM)

MSCI World 12M trailing PE

0

1

1

2

2

3

3

4

Sep-03 Sep-04 Sep-05 Sep-06 Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12EM (Emerging Markets) 12M trailing PB Average

+1SD (EM) -1SD (EM)

MSCI World 12M trailing PB

Global credit crisis

Global credit crisis

12

Emerging Market Equities: OutlookDespite lower levels of global growth, most major EM economies remain on course to sustain their long term structural growth path

Structural growth potential driven by demographics, urbanisation, productivity and consumption growth

Sound balance sheets– On average low debt levels at government.

corporate and household sectors

Both DM and EM macro policies are still supportive:– Loose monetary policy in DM

Economic growth appears to be bottoming out in some key EM countries

Contagion risks from sovereign debt issues in Europe and US– Economies which require global capital markets to

fund current account and fiscal deficits affected

Rising regulatory intervention– Price controls and resource taxes in emerging

markets

Increase in bank credit/GDP in Asia, back to pre-Asian crisis level

Escalating tensions in the Korean peninsula

Opportunities Risks

As of January 2013

13

China & India: rise or return?

Source: Angus Maddison, The World Economic: Historical Statistics, OECD, March 2010

Share of world GDP

Two thousand years of economic history

0%

5%

10%

15%

20%

25%

30%

35%

40%

1

1000

1500

1600

1700

1820

1870

1913

1950

1973

2001

China India Europe US

SECTION 2

Team and Capabilities

15

Emerging Markets Equities Team

Source: UBS Global Asset ManagementAs at 28 February 20131 Member of Emerging Markets Equity Strategy Committee

Portfolio construction and research

A stable and experienced team managing ca. USD 26 bn

Geoffrey Wong1

Head Global Emerging Markets & Asia Pacific Equities

Hong Kong / Singapore

Manish Modi1Portfolio ManagerAsia ex Japan

Cheah Yit Mee1

Portfolio ManagerAsia ex Japan

Bin ShiPortfolio ManagerChina

Projit Chatterjee1

Equity Strategist

Namit NayegandhiAnalyst

Chan Chee SengAnalyst

Yu ZhangAnalyst

Sanjeev JoshiAnalyst

Joanna MakAnalyst

Leslie ChowAnalyst

Matthew AdamsAnalyst

Hai HuangAnalyst

Kelvin TeoAnalyst

Han Yaw JuanTrader

Jimmy ChuaHead Trader

Paul HillmanTrader

Reginald OhTrader

Dorothy LekTrader

Gabriel Csendes1

Portfolio ManagerAnalyst

Michael AbelleraTrader Latin America

Zurich / London / Chicago

Urs Antonioli1Head of EM EMEA/Latin America Equities

Mark RoggensingerAnalyst

Gabriella AbderhaldenAnalyst

Irina BudnikovaAnalyst

Benita MikolajewiczAnalyst

Steve HerbertTrader EMEA

Macrina OtienoTrader EMEA

Justin WellsEquity Strategist

Choo Shou PinAnalyst

Grace TayEquity Strategist

16

Core/Value Asia & EM Strategies

BRIC EM Infrastructure Global EM GEM Value Focus

(HALO) EM High Dividend EM Synergy

Asia: China China A Greater China China Opportunity Hong Kong India Singapore TaiwanEx-Asia: Russia Brazil

CountryRegionalGlobal

Asia: Asia ex Japan Asia Opportunity Far East ex Japan Emerging Asia Asia Pacific ex Japan AC Pacific ex Japan Pacific ex Japan Asian Consumption Asia High Dividend Asia Small and Mid Caps Asia 130/30Ex-Asia: Central Europe Eastern Europe Latin America EM ex-Asia

Note: As of 28 Feb 2013

Managing ca. USD 26 bn in various strategies

SECTION 3

EM/ Asia High Dividend

18

EM equities provide stable dividend payments

For the MSCI EM equity index, DPS (dividend per share) has steadily increased over the last 10 years

Dividends have been more stable than earnings in downturns

EM and Asia are the regions with the fastest growth rates of DPS

EM have managed DPS compound annual growth rate of 13% since 2000

MSCI EM, DPS and EPS EM and Asian Dividends have grown fastest

Source: Factset, CLSA Asia-Pacific Markets, as per 31 December 2012Source: UBS IB, MSCI, as per 31 December 2012

-

100

200

300

400

500

2002 2004 2006 2008 2010 2012

DPS EPS

0

100

200

300

400

500

2000 2002 2004 2006 2008 2010 2012

AxJ Europe EM DM USA Japan

Number of high yielding stocks in EM has increased significantly

19

0%

20%

40%

60%

80%

100%

120%

1992 1995 1998 2001 2004 2007 2010 2013e

Asia ex Japan MSCI World MSCI EM

0%

10%

20%

30%

40%

50%

60%

70%

80%

2002 2004 2006 2008 2010 2012

Payout DM Payout EM

EM equities offer the potential to raise dividend payments

EM companies consistently reduced their debt levels during the past decade

Current net debt to equity ratios ~ 28%, lower than developed markets with a ratio of ~40%

EM companies have high cash levels on their balance sheets

Potential to further increase dividend pay out ratios– Current pay out ratios are at the lower end of historical range and below DM levels

– many companies enter mature growth phase

Source: UBS IB, as per 31 December 2012

Net debt to equity by region EM and DM pay out ratios

Source: UBS IB, MSCI, as per 31 December 2012

20

Dividends represent an important component of total return

Dividends compound over the long run to make a substantial contribution to total return

The contribution from dividends becomes more important in periods of normal or muted equity market returns

Source: UBS, December 2012 – cumulative returns excl. transaction costs, commissions, fees, margin interest. Actual transactions adjusted for such costs will result in reduced total returns

Dividend (re-investment) gain vs Capital gain

Reinvested dividends account for 40% total returns of MSCI EM since 2000

MSCI EM – Total vs Price returns (CAGR)

Source: Datastream, UBS, December 2012

(50%)

0%

50%

100%

150%

200%

250%

300%

350%

400%

5 year 10 year

Capital Gain Dividend and dividend reinvestment gain

0

500

1000

1500

2000

2500

87 92 97 02 07 12

Price index Total return index

21

Back-test of a High Dividend EM Equity portfolio over 10 years

10 years (31 December 2002 – 31 December 2012) EM MSCI universe

EM high dividend portfolio

Annualised return 17.0% 24.8%

Annualised standard deviation 24% 23%

Source: UBS Investment Bank Worldscope, DatastreamNote: The above chart shows returns by calendar year to 31 December 2012. All other information is as at 31 December 2012. 1 Back test rules: At each month end, the universe is restricted to stocks which are in the MSCI EM Index on that date. Each stock has a market capitalisation of at least USD 1 billion on thatdate. 75 stocks with the highest trailing dividend yield over the previous 12 months on that date are selected. These stocks are equally weighted within the portfolio. The portfolio is rebalanced at month end and the total returns computed in USD.Note: Back-test results or past performance are not guides for the future. No restriction to buy/sell stocks i.e. no constraint on having to actually receive dividends and payout the same as income. Our portfolio will be selected from ca. 350-400 stocks under our research coverage.

Portfolio selected from the entire universe of stocks in the MSCI EM index

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

120%

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Ret

urn

by

year

EM MSCI universe High yield stocks

High dividend EM Equities have performed very well

22

GEN0190n.ppt

Final portfolio construction

by PMs

Investment and portfolio construction process

Investment Universe

300-400 stocks for EM

Selected top dividend yield stocks

60-100 stocks

Qualitative overlay by analysts

Selection of high dividend stocks, remove overvalued stocks

Remove stocks where dividends are not sustainable or have weak fundamentals

Add stocks where dividends are stable and/or likely to increase

Client portfolio

Typically 40-70 stocks

UBS Emerging Markets High Dividend Equities

23

Country allocation

Emerging Markets High Dividend Fund: Portfolio Positioning

For illustrative purposes only. The fund is actively managed hence the above portfolio composition is indicative only and can be changed at any time at UBS' absolute discretion.Source: UBS Global Asset Management, Factset, GEVS,,Worldscope

* Indicative current dividend yield: This figure is indicative only and gross of fund fees. The indicative current dividend yield is based on the dividends of last year paid by the companies held in the fund. Withholding taxes paid by the fund are already deducted from this figure. The final dividend yield can deviate significantly from the indicative current dividend yield due to changes in company earnings, dividends and stock prices etc. In accumulating share classes, the dividend yield, net of fund fees, will be accumulated. In distributing share classes, the dividend yield, net of fund fees, will be distributed.

Indicative current div. yield: 5.4%* (gross of withholding taxes) 4.9%* (net of withholding taxes)

In comparison, MSCI Emerging Markets index currently has a gross dividend yield of 2.8%

Diversification across countries and sectors per 31 March 2013

Sector allocation

Turkey 3.3

Thailand 6.7

Taiwan 14.8

Singapore 8.3Russia 10.4 Poland 6.6

Philippines 1.8

Peru 1.7

Mexico 1.8

Malaysia 3.2

Korea 3.4

Israel 1.7

Indonesia 1.7

Hong Kong 3.3

Czech Republic 3.8

China 6.5

Chile 1.7

Brazil 6.9

SouthAfrica 12.4

Cons. Discretionary0.8

Industrials1.7

Utilities3.4

Materials10.1

Energy11.7

IT14.6 Telecoms

22.7

Financials31.5

Cons. Staples3.5

24

Performance in % (basis USD, net of fees)in % 2009 2010 2011 2012 2013 March since p.a.

YTD 2013 31.05.11

Fund (USD) – – – 17.50 -1.80 -0.55 0.60 0.33

Benchmark 2 – – – 18.23 -1.62 -1.72 -7.38 -4.10

Added Value – – -0.73 -0.18 1.17 7.98 4.42

1) YTD: year-to-date (since beginning of the year)

2) Benchmark in currency of account (without costs)

1

PerformanceUBS (Lux) Equity SICAV – Emerging Markets High Dividend (USD) P-acc

Data as at end of March 2013These figures refer to the past. Past performance is not a reliable indicator of future results. The performance shown does not take account of any 0commissions and costs charged when subscribing to and redeeming units.

Performance indexed in % (Basis USD, net of fees)

75

80

85

90

95

100

105

06.11 12.11 05.12 10.12 03.13UBS (Lux) Equity SICAV - Emerging Markets High Dividend (USD) P-acc

MSCI Emerging Market (net divi. reinv.)

25

GEN0190n.ppt

Emerging Markets High Dividend Fund: Composite PerformancePeriods up to 31 March 2013

Source UBS Global Asset Management

26

Asia High Dividend Fund: Portfolio PositioningDiversification across countries and sectors per 31 March 2013

Country allocation Sector allocation

For illustrative purposes only. The fund is actively managed hence the above portfolio composition is indicative only and can be changed at any time at UBS' absolute discretion.Source: UBS Global Asset Management, Factset, GEVS,,Worldscope

Indicative current div. yield: 4.3%* (gross of withholding taxes) 3.8%* (net of withholding taxes)

In comparison, MSCI Asia ex Japan index currently has a gross dividend yield of 2.4%

* Indicative current dividend yield: This figure is indicative only and gross of fund fees. The indicative current dividend yield is based on the dividends of last year paid by the companies held in the fund. Withholding taxes paid by the fund are already deducted from this figure. The final dividend yield can deviate significantly from the indicative current dividend yield due to changes in company earnings, dividends and stock prices etc. In accumulating share classes, the dividend yield, net of fund fees, will be accumulated. In distributing share classes, the dividend yield, net of fund fees, will be distributed.

Philippines2.6

Malaysia5.1

Indonesia5.2

Korea9.9

Thailand12.6

China14.8

Singapore19.8

Taiwan22.7

Hong Kong7.3

Industrials2.4

Utilities2.4Materials

2.5

Cons. Staples5.0

Energy12.4

IT22.7

Financials29.9

Telecoms22.6

27

Performance in % (basis USD, net of fees)in % 2009 2010 2011 2012 2013 March since p.a.

YTD 2013 01.06.11

Fund (USD) – – – 19.25 2.20 -0.20 2.20 1.18

Benchmark 2 – – – 22.26 -0.39 -1.98 -3.10 -1.71

Added Value – – – -3.01 2.59 1.79 5.30 2.89

1) YTD: year-to-date (since beginning of the year)2) Benchmark in currency of account (without costs)

1

PerformanceUBS (Lux) Equity SICAV – Asia High Dividend (USD) P-acc

Data as at end of March 2013These figures refer to the past. Past performance is not a reliable indicator of future results. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.

Performance indexed in % (Basis USD, net of fees)

75

80

85

90

95

100

105

06.11 11.11 04.12 10.12 03.13UBS (Lux) Equity SICAV - Asia High Dividend (USD) P-acc

MSCI All Country Asia ex Japan (net divi. reinv.)

28

GEN0190n.ppt

Asia High Dividend Fund: Composite performancePeriods up to 31 March 2013

Source UBS Global Asset Management

29

Why high dividend stocks in Emerging Markets/Asia ?

Stable dividend payout: EM/Asian companies have typically paid shareholders between 30-40% of their earnings over the past 10 years1

Ability to pay sustainable dividends

– EM/Asian companies show low debt levels on their balance sheets and have the cash to fund sustainable dividend payments

– Their current payout ratio is <35%1 which is at the lower end of its historic band, and below DM cos. payout ratio, suggesting room to increase

Dividend strategies have performed very well

– A simple illustrative portfolio2 that picked the EM/Asia stocks with the highest dividend yields, performed significantly better than the market1 over the last 10 years

– The UBS EM/Asia high dividend strategies have performed very well since inception in 2011

Diversification: EM/Asia High Dividend funds should provide good diversification to both your yield/income and Emerging markets exposures

Benefits of high and stable yield, with the potential for long-term capital appreciation

1 Source: UBS Investment Research, data based on respective MSCI indices as of 31 Mar20112 Based on back test portfolio of highest dividend yielding stocks, rebalanced monthly, from March 2001 to March 2011, conducted by UBS Investment Bank

SECTION 4

Asian Consumption Fund

31

Growing consumption in AsiaStrong secular drivers behind Asian consumption growth

Source: CLSA Research as of Feb 2013, except for the point on Indonesia - data as of 2011.

Asia Consumption Potential

Did you know?

Nearly one in three billionaires in the world is now in Asia, up from one in ten in 2005

Over 65% of all global luxury sales is now to emerging market customers

Greater China consumers will account for 50% of global luxury sales by 2020

In Indonesia, 11% of households in Indonesia have personal computers

Young population

Increasing income and wealth

Urbanisation More consumption

Low penetration of consumer goods

Favourable government policies

32

0

5

10

15

20

25

India China US Indonesia Japan Russia GermanyMexico

2020 F 2030 F

% of global share of middle class consumption

0%5%10%15%20%25%30%35%40%45%50%

Asia US France UK Spain Germany Japan

Youngest and largest consumer base in the worldAsia will have 1 billion middle class consumers by 2015

% of population aged 25 years and less (2011)

Source: United Nations Population Division, UBS IB research and estimates as of Jun 2012

Source: Brookings Institition, Deutsche Bank as of March 2013. Assumption: People spending USD 10 to USD 100 a day (2005 PPP$) fall in the middle class category

33

0

50

100

150

200

250

300

350

400

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

E

2013

E

2014

E

2015

E

2016

E

2017

E

2018

E

2019

E

2020

E

China India Russia Brazil Japan US Indonesia

No.

of H

ouse

hold

s in

Mill

ions

The EM Consumer is set to become a dominant force

Source: Euromonitor, Morgan Stanley Research, as of Nov 2012

Number of Households with Disposable Income above US$10,000

34

Low penetration of consumer goods in Asia

Source: Ashwin Chotai, CEIC, CLSA Asia-Pacific Markets research as of Jun 2012Latest available data: Apr 2011

Light vehicle ownership vs GDP per capita PC penetration (PCs per 1,000 population)

0

300

600

900

1,200

US WesternEurope

Japan Worldwide AsiaPacific

Source: Gartner Data, Goldman Sachs Research as of Jun 2012Latest available data: Mar 2011

35

Economic rebalancing boost domestic consumption by middle, low-income households

India National Rural Employment Guarantee Scheme

Higher minimum support prices for key agri-produce have helped drive rural incomes

China Nationwide increase in minimum wage

Social housing to provide affordable housing

Thailand New rice pricing scheme - guarantee paddy rice prices

(50% higher than current price)

Nationwide increase in daily minimum wages by 40%

Government policies stimulate mass market consumption

…

Source: UBS Global Asset Management

36

Investment and portfolio construction process

Note: Valuation primarily based on the Price/Intrinsic Value PhilosophyInvestment universe of investible stocks (i.e. at least USD 500 mn market capitalisation)

Screen: Valuation based metrics (e.g. P/E, P/B)

~100 - 150 stocks

Investment Universe ~400-500 stocks

Portfolio Construction

ACF portfolio

Typically 30-60 stocks

UBS Asian Consumption Equities

Fundamental research

1. Industry outlook

2. Company model

3. Valuation

Risk system

37

UBS Asian Consumption FundPlaying the strong Asian consumption theme

Includes:

Tobacco:

Beverages:

Consumables:

Food:

Includes

Retail:

Cosmetics: LG H&H, Amorepacific

Autos:

Media:

Gaming and hotels:

Includes

Medical services:

Hospitals:

Pharmaceuticals:

Note: This information should not be considered as a recommendation to purchase or sell any security.

Consumerstaples

(basic consumption)

Consumerdiscretionary

(“good to have”with more wealth)

Healthcare

Company examples:

• KT&G, ITC

• Nestle India, Uni President,

Unilever

Want Want, Tingyi

Companies

Golden Eagle, Belle

LG H&H, Amorepacific

Hyundai, Dongfeng

Media: Zee TV, BEC World

Sands, Bloomberry.

Companies

Mindray Medical International

Apollo hospital, Bumrungrad

Sun Pharma, Lupin,

38

Top 10 stock overweights

This information should not be considered as a recommendation to purchase or sell any securitySource: UBS Global Asset Management. Figures refer to UBS (Lux) Equity Fund – Asian Consumption

As of end March 2013

Active (%)Benchmark (%)Fund (%)Company

2.75

0.37

3.61

1.14

1.72

1.58

1.66

2.75

1.69

4.14

-0.02

2.42

-0.43

2.35

1.78

1.99

2.07

1.02

2.19

0.68

2.74

2.79

3.19

3.48

3.50

3.58

3.73

3.77

3.89

4.82

Itc Limited

Godrej Consumer Products

Astra International

Lg House & Healthcare

Uni-President Enterprises

Hengan

Kt&G Corporation

Sands China Ltd

Belle International Holdings

Hyundai Mobis

39

GEN0190n.ppt

Strong performance since inception

Asian Consumption: Performance up to Mar 13

Source: UBS Global Asset Management, Factset. Strategy was incepted in 29 February 2008Past performance is not indicative of future results.* There was no representative benchmark up to 31 March 2010. Since 1 April 2010, the MSCI Asia ex Japan Consumer and Health Care Sectors Index (i.e. comprising of the consumer staples, consumer discretionary and healthcare sectors of MSCI Asia ex Japan) has been used as the benchmark. Returns are gross of fees. The Asian Consumption Strategy was launched in February 2008 with the UBS (Lux) Institutional Sicav – Asian Consumption (USD)/(SGD) RA. This institutional vehicle was subsequently terminated after it was moved into the retail vehicle – the UBS (Lux) Equity Fund - Asian Consumption (USD) P-acc (valor 1041161) in Jul 2009.** From inception 29 February 2008 to Dec 2008

Calendar year returns

Since Inception Cumulative returns

65.2

8.4

45.6

0

10

20

30

40

50

60

70

Mar '08 - Mar '13

(%)

-38.3

93.2

22.2

-6.6

22.2

-1.0

(47.8)

72.1

19.6

(17.3)

22.4

(0.5)

-44.5

88.6

29.2

-6.1

15.4

0.1

-60

-40

-20

0

20

40

60

80

100

120

2008** 2009 2010 2011 2012 YTD 2013

(%)

UBS Asian Consumption CompositeMSCI Asia ex JapanBenchmark *

40

GEN0190n.ppt

39.7%3.7%

2.5%

1.3%3.4%

47.4%

34.2%

7.0%58.8%

0% 10% 20% 30% 40% 50% 60% 70%

Consumer Staples

FinancialsInformation Technology

Industrials

Health CareConsumer Discretionary

UBS Asian Consumption (%) Benchmark (%)

Asian Consumption: PositioningPositioning as of end March 2013

* There was no representative benchmark up to 31 March 2010. Since 1 April 2010, the MSCI Asia ex Japan Consumer and Health Care Sectors Index (i.e. comprising of the consumer staples, consumer discretionary and healthcare sectors of MSCI Asia ex Japan) has been used as the benchmark. Source: UBS Global Asset Management

Sector allocation

Country allocation

19.1%

11.6%

18.2%

8.7%

20.1%

3.7%

3.8%

4.3%

6.4%

1.7%

2.4%

17.0%

10.1%

12.4%

7.9%

28.4%

6.9%

0.8%

6.3%

6.7%

3.5%

0.0%

0% 5% 10% 15% 20% 25% 30%

China

Hong Kong

India

Indonesia

Korea

Malaysia

Philippines

Singapore

Taiwan

Thailand

Cash

Fund BM

41

0.002.004.006.008.00

10.0012.0014.0016.0018.00

Jul/0

2

Jul/0

3

Jul/0

4

Jul/0

5

Jul/0

6

Jul/0

7

Jul/0

8

Jul/0

9

Jul/1

0

Jul/1

1

Jul/1

2

ASIA EX JP Cons Desc Mean 1SD Upper 1SD Low er

0.002.004.006.008.00

10.0012.0014.0016.0018.0020.00

Jul/0

2

Jul/0

3

Jul/0

4

Jul/0

5

Jul/0

6

Jul/0

7

Jul/0

8

Jul/0

9

Jul/1

0

Jul/1

1

Jul/1

2

AsiaEx - CD-CS-HC All Mean 1SD Upper 1SD Low er

AxJ consumer sector valuations below its historical averages

Consumer Discretionary Consumer Staples

PE Fwd to March 2013

Data on the forward P/E of the Asia ex Japan consumer staples, consumer discretionary and healthcare sectors. SD refers to standard deviation (based on 5Y data) Source: J.P.Morgan Quant Strategy

0.00

5.00

10.00

15.00

20.00

25.00

Jul/0

2

Jul/0

3

Jul/0

4

Jul/0

5

Jul/0

6

Jul/0

7

Jul/0

8

Jul/0

9

Jul/1

0

Jul/1

1

Jul/1

2

ASIA EX JP Cons Stap Mean 1SD Upper 1SD Low er

APPENDIX A

Bios and disclaimers

43

Projit Chatterjee, CFA Equity Strategist, Global Emerging Markets and Asia Pacific Equities, Managing Director

Projit Chatterjee is an Equity Strategist within the Global Emerging Markets and Asia Pacific Equities team. He is a member of the Global Emerging Markets Strategy Committee and is based in the Singapore office. He is also co-manager of the GEM and Asia High Dividend funds.

Projit has primary responsibility for overall product positioning and development of Emerging Markets and Asian Equity strategies, as well as marketing and communication of these strategies to existing and prospective clients globally.

Prior to this, Projit led an acquisition project in the Indian market.

Projit joined UBS in 1997 as a Corporate Finance Analyst with UBS Investment Bank in Mumbai, India. In 1999, he moved to UBS Global Asset Management in Zurich to work in Strategic Projects, International Fund Marketing. In Zurich, Projit held various roles in the areas of strategic business development, business management and investment solutions.

Before joining UBS, Projit worked briefly as a money market and foreign exchange dealer in the treasury of MashreqBank, a UAE bank in Mumbai.

Years of investment industry experience: 16

Education: Indian Institute of Technology (India), B.Tech; Indian Institute of Management (India), MBA

44

Emerging Markets High Dividend DisclosureSchedule of composite performance

45

Asia High Dividend Composite DisclosureSchedule of composite performance

46

Asian Consumption Composite DisclosureSchedule of composite performance

The composite's past performance is not necessarily an indication of how it will perform in the future.