UBS Manage Advanced on]i otac l Ac mel i t stayS · UBS ManageTM Advanced on]i otac l Ac mel i t stayS [UBS Manage All of our financial competence in one optimized solution for you

UBS ManageTM Advanced [Systematic Allocation]UBS ManageAll of our financial competence in one optimized solution for you

For UBS marketing purposes

2

Your expectationsYou aim to participate in positive market trends, while decreasing the risk of substantial losses when markets decline. Following the signals of the proprietary UBS CIO World Equity Market Indicator the UBS Systematic Allocation Portfolio Defensive is devised to pursue this objective.

Your portfolioYour portfolio invests in both traditional and nontraditional investment instruments (such as liquidity, bonds, equities and hedge funds). Strategy changes can quickly be implemented. Your strategies will be mostly executed using investment funds and Exchange Traded Funds (ETFs). Any changes are quickly implemented and you will be informed of the rationale.

Your benefitsShould our proprietary tool UBS CIO World Equity Market Indicator detect any signs of a deteriorating market environment, we aim to reduce the risk of your portfolio . Following this, when our indicator signals an improving market environment, we increase the equity exposure for a higher return potential – to participate in long-term market trends.

Your risksYou accept a moderate asset value volatility. You should consider that the UBS CIO World Equity Market Indicator is very effective and reliable when there is a distinct underlying trend. However, when the trend is faint, especially when markets move sideways with frequent up and down shifts, the model can be less accurate. Despite our best efforts, we are unable to provide any capital protection or guarantee.

Strategy OverviewThis is a rule-based investment decision. Any increase in the equity allocation is financed by the sale of high grade bonds (and vice versa). The proprietary UBS CIO World Equity Market Indicator defines which level is selected. There are three levels at which the target equity allocation of your portfolio may be set: low (0%), medium (20%) or high (30%). In addition, your portfolio has a stable asset allocation in corporate and emerging market bonds, hedge funds, and liquidity.

For UBS marketing purposes.Please note that this page is always to be read in conjunction with the risk information and glossary provided at the end of this document.

* Please note that emerging market exposure in local currencies will not be currency hedged.** UBS has the discretion to decide whether and to what extent foreign currency exposures shall be hedged into the reference currency of the Investment Mandate.

UBS ManageTM Advanced [Systematic Allocation]

Reference currency EUR, USD

Strategy Defensive

Investor Profile C

Volatility Moderate

Currency hedging Foreign currency hedging at UBS discretion (currently predominantly hedged)***

Instruments Bond, equity, liquidity and hedge funds instruments, funds managed under a risk parity principle

Characteristics Rule-based allocation in equities or bonds following the signals of the proprietary UBS CIO World Equity Market Indicator

Objective Aim to avoid significant losses in portfolio value while trying to moderately participate in positive equity market trends

Options Option to exclude hedge funds, funds managed under a risk parity principle, commodities and real estate (as a group). The allocation will be remapped to the bond portion.

Defensive – EUR

Product Features

3

UBS Manage Advanced [Systematic Allocation]The following graph shows the mechanics of the UBS Manage Advanced [Systematic Allocation]. The solution aims to reduce equity exposure in downward trending markets, while taking advantage of upward trending markets by increasing the equity allocation.

For illustrative purposes only

Simulated Historic Performance (in EUR)The following graph shows the simulated change in the value of the portfolio (“Systematic Allocation”) compared to the simulated change in value of the static portfolio (“Static Allocation”). Also shown is the change in the equity exposure.

Weekly Data: December 29, 1989 – July 31, 2017

Asset Class RangesThe following table shows the minimum and maximum exposure to each asset class (incl. drift), as well as the exposure when the equity allocation is set to medium. This composition is indicative only and can be amended by UBS at any time and at its own discretion.

Please note that this page is always to be read in conjunction with the risk information and glossary provided at the end of this document. For illustrative purposes only. Figures refer to simulated past performance. Past performance is not a reliable indicator of future performance. Please see explanation under “Simulated Performance” at the end of this document.

Equity Market

Time

Positive Signal

Medium

Equity Allocation

High HighLow

Strong Positive Signal

Negative Signal


Bond Allocation

0%

20%

40%

60%

80%

100%

100

200

300

400

500

600

700

800

1989 1993 1996 2000 2003 2007 2010 2014 2017

0%

20%

40%

60%

80%

100%

100

200

300

400

500

600

700

800

900

1.000

1.100

1989 1993 1996 2000 2003 2007 2010 2014 2017

0%

20%

40%

60%

80%

100%

100

300

500

700

900

1.100

1.300

1989 1993 1996 2000 2003 2007 2010 2014 2017

Static Allocation

Systematic AllocationEquity Allocation

Static Allocation


Static Allocation


Min (incl. drift) Medium

Max (incl. drift)

Liquidity 0% 2% 17%

Bonds 51% 66% 91%

Equities 0% 20% 35%

Hedge Funds 0% 8% 18%

Other 0% 4% 14%

Medium Allocation

Historical Simulation

Total Return 508.26% 673.82%

Return p.a. 6.8% 7.7.%

Volatility p.a 4.4% 3.9%

Max Drawdown -17.3% -7.9%

4

Your expectationsYou aim to participate in positive market trends, while decreasing the risk of substantial losses when markets decline. Following the signals of the proprietary UBS CIO World Equity Market Indicator the UBS Systematic Allocation Portfolio Moderate is devised to pursue this objective.



Your risksYou accept a medium asset value volatility. You should consider that the UBS CIO World Equity Market Indicator is very effective and reliable when there is a distinct underlying trend. However, when the trend is faint, especially when markets move sideways with frequent up and down shifts, the model can be less accurate. Despite our best efforts, we are unable to provide any capital protection or guarantee.




UBS ManageTM Advanced [Systematic Allocation]

Product Features

Medium – EUR


Strategy Medium

Investor Profile D

Volatility Medium




Objective Aim to limit drawdowns in portfolio value while trying to participate in positive equity market trends


5






Equity Market

Time

Positive Signal

Medium

Equity Allocation

High HighLow


Negative Signal


Bond Allocation

0%

20%

40%

60%

80%

100%

100

200

300

400

500

600

700

800

1989 1993 1996 2000 2003 2007 2010 2014 2017

0%

20%

40%

60%

80%

100%

100

200

300

400

500

600

700

800

900

1.000

1.100

1989 1993 1996 2000 2003 2007 2010 2014 2017

0%

20%

40%

60%

80%

100%

100

300

500

700

900

1.100

1.300

1989 1993 1996 2000 2003 2007 2010 2014 2017

Static Allocation


Static Allocation


Static Allocation



Max (incl. drift)

Liquidity 0% 2% 17%

Bonds 26% 46% 81%

Equities 5% 40% 60%


Other 0% 4% 14%


Medium Allocation


Total Return 566.44% 891.64%

Return p.a. 7.1% 8.7.%

Volatility 7.0% 5.9%


6

Your expectationsYou aim to participate in positive market trends, while decreasing the risk of substantial losses when markets decline. Following the signals of the proprietary UBS CIO World Equity Market Indicator the UBS Systematic Allocation Portfolio Dynamic is devised to pursue this objective.



Your risksYou accept an above average asset value volatility rate. You should consider that the UBS CIO World Equity Market Indicator is very effective and reliable when there is a distinct underlying trend. However, when the trend is faint, especially when markets move sideways with frequent up and down shifts, the model can be less accurate. Despite our best efforts, we are unable to provide any capital protection or guarantee.




UBS ManageTM Advanced [Systematic Allocation]Dynamic – EUR

Product Features


Strategy Dynamic

Investor Profile E

Volatility Above average




Objective Aim to limit major drawdowns in portfolio value while trying to participate in positive equity market trends


7






Equity Market

Time

Positive Signal

Medium

Equity Allocation

High HighLow


Negative Signal


Bond Allocation

0%

20%

40%

60%

80%

100%

100

200

300

400

500

600

700

800

1989 1993 1996 2000 2003 2007 2010 2014 2017

0%

20%

40%

60%

80%

100%

100

200

300

400

500

600

700

800

900

1.000

1.100

1989 1993 1996 2000 2003 2007 2010 2014 2017

0%

20%

40%

60%

80%

100%

100

300

500

700

900

1.100

1.300

1989 1993 1996 2000 2003 2007 2010 2014 2017

Static Allocation


Static Allocation


Static Allocation



Medium Allocation


Total Return 601.93% 1130.34%

Return p.a. 7.3% 9.5%

Volatility 9.8% 8.2%



Max (incl. drift)

Liquidity 0% 2% 17%

Bonds 2% 27% 72%

Equities 15% 60% 85%


Other 0% 3% 13%

Glossary – Mandate Specific Terms

Simulated PerformanceHistoric risk/return simulations are based on the theoretical performance of the standard benchmarks or indices underlying the portfolios over the specific time horizon. The historical performance shown does not reflect your actual performance but, rather, was calculated by the retroactive application of historic index results to the asset allocation(s) analyzed. Because the asset allocations were structured with the benefit of knowing how each asset class performed during the period shown, the hypothetical returns may be higher than the returns of a portfolio that would have been recommended during the time period shown. In addition, back tested performance does not reflect the impact that past economic and market factors might have had on investment decision-making. The results shown reflect realized and unrealized gains and losses and the reinvestment of income, but do not include the impact of transaction costs, taxes and inflation. If these were included, the results shown would be lower. Please note that the historic back test analysis assumes that the asset allocation was rebalanced at the beginning of each month back to the initial asset allocation. This rebalancing frequency does not necessarily reflect how an actual portfolio would have been managed. There is no guarantee that these back tested results could, or would, have been achieved had this asset allocation been used during the years presented.

The results shown reflect realized and unrealized gains and losses and the reinvestment of income, but do not include the impact of management fees, transaction costs, taxes and inflation. If these were included, the results shown would be lower.

These hypothetical, past performance results are not an indicator of how this strategy will perform in the future Actual results will differ and may be better or worse than those shown. Market and economic conditions will change over time and these and other future developments will impact the future risks and returns of different asset classes.

In addition, as noted above, these results are based solely on the historical performance of certain broad-based indices, which are identified and described in this presentation. Client accounts to be managed employing this asset allocation strategy will not be invested in all securities comprising any index or in the same proportions as those securities are represented in the index and a client’s holdings within any asset class will be significantly less diversified than the corresponding index.

EstimatesUsing statistical methods, UBS estimates long-term average risk/return figures for all major asset classes and their behavior in given model portfolios. Investors should note that these figures are derived from estimated long-term asset class performances and do not account for the content of individual portfolios nor of the performance of individual securities or active management. Active management may result in higher or lower future performance. Unless stated, transaction costs and portfolio fees are not included and these will reduce future performance accordingly. They indicate the statistically most likely performance from a range of possible outcomes and investors should not base their investment decision solely on the estimates above.

Estimated annual performance and annual risk are not reliable indicators of future performance and future riskEstimates are based on our current assessment of financial markets and are therefore subject to change. Short-term performance can deviate substantially from these estimates.

Glossary

Asset AllocationComposition of a portfolio by currency and asset class.

Asset ClassAny collection of assets that reacts in a unique way to the fundamental drivers of the economy. Most important asset classes are equity, fixed income, money market investment, and real estate.

BenchmarkReference parameter, e.g. a share index or a portfolio of indices to compare the performance of a portfolio. A benchmark that is an index is also called a reference index.

DriftChange in the weighting of asset classes due to changes in the values of the assets in the portfolio.

Exchange-traded fund (ETF)Index fund whose composition is tied to the weighting of an index and can be traded at any time without issuing commission.

PerformancePerformance figures shown in this document are composite returns and are calculated as the asset weighted average of client portfolio returns.

PortfolioSelection of securities held by a bank in a safekeeping account for administration or discretionary management on behalf of a client, or held and managed by the investor him/herself.

Risk-Parity-FondsThe Risk Parity approach seeks an enhancement of risk adjusted returns and active and decisive management of asset class exposure. For example scaling down the bond cluster if increasing inflation leads to a higher volatility. It is thus well suited to weather an environment in which central banks tighten monetary policies and yields are potentially increasing, as expected by UBS CIO.

RiskExposure to damage or financial loss, e.g. a fall in the price of a security, or insolvency on the part of a debtor. Financial market theory measures the risk of an investment or portfolio by the degree of expected return fluctuations.

UBS CIO World Equity Market IndicatorIt is a sophisticated proprietary indicator processing and combining information from a wide variety of financial and economic statistics.

VolatilityMeasure of the fluctuations in the rate of return of a security within a specific period. Usually stated as an annualized standard deviation. For any further explanations that you may require, please refer to our UBS Dictionary of Banking at www.ubs.com/glossary or to your UBS client advisor.

DisclaimerThis publication is for your information only and is not intended as an offer or a solicitation of an offer to purchase or sell any specific products and should not be treated as giving investment advice. All information and opinions as well as any indicated prices are valid only at the time of the preparation of the information and are subject to change due to market developments any time and without prior notice. We recommend consulting an investment or tax advisor or lawyer prior to your investment. Please be aware that the products presented in this publication may not fit to the personal investment objectives, portfolio and risk profile of every individual investor.

All information and opinions expressed in this publication were obtained from sources believed to be reliable. However, no representation or warranty, expressed or implied is made to their accuracy. Please note, that UBS Europe SE or other companies of the UBS group (or employees thereof) may purchase or sell any financial instruments or derivatives with a corresponding underlying mentioned in this publication. Furthermore, they can act as principal respectively agent or render consulting or other services to an issuer or to companies affiliated with an issuer.

This publication is targeted neither to citizens of the United States of America or of the United Kingdom nor to any persons who have permanent residence in those jurisdictions. With regard to the products presented in this publication solely the sales brochure is legally binding which can be received from UBS Europe SE, P.O. Box 102042, 60020 Frankfurt/Main, upon request.

This publication may neither be altered, copied nor reproduced without the prior written consent of UBS Europe SE.

© UBS 2017. The key symbol and UBS are among the registered and unregistered trademarks of UBS. All rights reserved.

www.ubs.com

UBS Manage Advanced on]i otac l Ac mel i t stayS · UBS ManageTM Advanced on]i otac l Ac mel i t stayS [UBS Manage All of our financial competence in one optimized solution for you

Documents