Ubs global asset management

Capturing opportunities in the land of

opportunity: investing in US growth

stocks

November 2012

Grant Bughman, Senior Equity Strategist

For professional investors only Asset management

1 1

Key messages

US economy recovering slowly and

moderate medium-term growth outlook

Growth stocks have structural advantages

Fast earnings growth = strong performance

2 2

US economy recovering slowly

Unprecedented central bank intervention

Moderate recovery driven by consumer

De-leveraging required; need to tackle debt

levels and deficit

Beware of the “Fiscal Cliff”

Earnings growth moderate, but positive, and

better in growth stocks

Valuations 30% cheaper than last 15 years, and

growth stocks valued below historic average

3

Central banks providing unprecedented stimulus

US balance sheet

Source: Citigroup (Index, 01.01.2007 = 100). As at August 2012.

50

100

150

200

250

300

350

Jan-07 Jun-07 Dec-07 May-08 Nov-08 Apr-09 Oct-09 Apr-10 Sep-10 Mar-11 Aug-11 Feb-12 Aug-12

US

4

Moderate recovery driven by the consumer

Source: Factset. Data as at 30 September 2012.

-1000

-800

-600

-400

-200

0

200

400

600

2007 2008 2009 2010 2011 2012

0%

2%

4%

6%

8%

10%

12%

(DIFF 1M) All Employees, Total Nonfarm Payroll, Thousands of Persons,

SA – US (lhs)

Unemployment Rate – % SA - US (rhs)

0

200

400

600

800

1,000

1,200

1,400

1,600

2007 2008 2009 2010 2011 2012

Housing Units Started, Total, SA – US

Housing Units Authorized by Building Permits, Total, SA – US

Source: Factset. Data as at 30 September 2012.

5

But more pain is yet to come…

Source: UBS Global Asset Management. June 2012, data household + non-financial.

De-leveraging required over the long-term

100

125

150

175

200

225

250

275

1947 1952 1957 1962 1967 1972 1977 1982 1987 1992 1997 2002 2007 2012

US

Government + private sector debt to GDP

6

US Growth stocks have performed better

Underpinned by faster earnings growth

-4%

0%

4%

7%

11%

15%

18%

22%

Year to date 3 Years 5 Years

Russell 1000 Value Index Russell 1000 Grow th Index US Large Cap Grow th Select

Source: UBS Global Asset Management. Data at 30 September 2012, gross of fees

Note: Past performance is no guarantee of future results .

7

Growth Investors

Growth

Investors

join UBS US Large Cap

Select Growth

Global (ex-US)

Growth Team joins

US Small Cap

Growth

US Large Cap

Growth

US Small

Cap

Grow th

Team

$0.7

Global (ex-

US)

Grow th

Team

$3.3

US Large

Cap

Grow th

Team

$15.5

Manages growth investments across full market spectrum

Growth Investors

Total AUM $19.4 billion

Growth Investors History

1991 1995 1999 1998 1992 2004 2007 2012: Forward 1994 2000

US Strategies

– US Large Cap

– Growth - $370m

– Select Growth - $11.0b

– Select Growth ex-ADRs - $155m

– Diversified Growth - $4.0b

– US Small Cap Growth - $700m

Global (ex-US) Strategies

– Global (ex-US) All Cap Growth

– EAFE - $790m

– ACWI – $380m

– Global (ex-US) Small Cap Growth - $340m

– Emerging Markets Growth - $1.4b

– Europe Growth - $330m

– Asia (ex-Japan) Growth - $3m

– Emerging Markets Small Cap – $3m

US-I

Data as of September 30, 2012

Assets represented are totals for the UBS Global Asset Management division worldwide under management for Growth Equity strategies. Segmented strategy assets may not sum to total due to

rounding. Figures in billions (USD).

Emerging Markets

Small Cap launched

8

US Large Cap Growth Team

As of September 2012

Lawrence Kemp, CFA – Managing Director

Head of US Large Cap Growth Equity

Portfolio Manager

26 years of investment experience

Albert Tsuei – Director

Senior Investment Analyst

Information Technology


Brian Markovich, CFA – Director


Industrials, Materials


Sam Console – Executive Director


Consumer Discretionary, Consumer Staples


Andrew Strommen, CFA - Director

Investment Analyst

Financials, Materials, Telecom Services


Peter Bye – Executive Director


Health Care. Consumer Discretionary


Joseph Wilson – Director

Investment Analyst

Information Technology, Consumer Discretionary


Wendy Nickerson, CFA – Executive Director


Energy, Materials, Industrials


Grant Bughman – Director

Senior Equity Strategist

Client Service and Business Development


US-I

9

Invest in quality, growing companies where we believe the market price

underestimates the magnitude and/or duration of future growth

Note: US Large Cap Select Growth Equity / US Large Cap Growth Equity

Investment philosophy

Core beliefs

Fundamental research is the foundation of our investment

discipline

– Valuation-based upside / downside scenarios

Diversified sources of growth

– Classic growth companies – market fluctuations create opportunities to

purchase great businesses at attractive prices

– Elite growth companies – hyper growth phase can often be priced

incorrectly by the market

– Cyclical growth companies – pricing anomalies occur when expected

value creation exceeds market prices

Focus on Risk Management

10

Intensive company research

Discovers great organic growth stories

Evidence: pricing power, high and improving ROIC, market share growth

Sustainability of model: barriers to entry, changes in technology, secular shifts in the industry

Management: appropriate financial incentives, consistency of message, capital allocation strategy

Market expectations of magnitude and/or duration of growth both for near-term and long-term

– Steady-state market size and company profitability

Scenario based DCF analysis

Industry relative valuation analysis

Free cash flow yield

Note: Process for US Large Cap Select Growth Equity / US Large Cap Growth Equity

Is this a good executable growth business model? Is this a good market price?

11 11

Amazon.com (AMZN): Current overweight 2.63%

Amazon has built a technology platform that has made it the most

convenient site to buy and sell merchandise. This attracts more buyers,

and therefore more sellers.

Amazon has a highly leveragable cost structure, and cash flows from

third-party require no incremental capital investment since third party

retailers simply list on Amazon's existing site.

Amazon benefits from:

Scale: Amazon generates a high return on capital due to 1) negative

working capital (purchases are on credit card and Amazon’s days payable

is less than 90 days) and 2) because of its scalable fulfillment infrastructure

and website.

Secular growth: At the end of 2010, Amazon generates $18.7 billion

of US sales or less than 2% of total US retail sales. This compares to

Target with USD 65.4 billion in sales and Wal-Mart with USD 300 billion in

US sales.

Network effects: With over USD 34 billion in sales worldwide, Amazon’s

scale allows it to offer the lowest prices, which attracts more customers,

which in turn gives Amazon more buying power while creating barriers to

entry. Amazon has 130 million active customer accounts, approximately

78 million of which are international.

11

Upside Scenario: +20%

Downside Scenario: -36%

Case study

Note: The security identified on this slide represents one of the overweights in both the US Large Cap Growth and US Large Cap Select Growth

portfolios as of June 30, 2012. This information should not be considered a recommendation to purchase or sell any particular security. Information

is supplemental to the US Large Cap Growth and US Large Cap Select Growth Composites. Please see the additional disclosures at the end of this

presentation for further information.

12

Amazon.com (AMZN): Our process in action

January 1, 2010 – September 30, 2012

Source: Factset

100

120

140

160

180

200

220

240

260

280

12/3

1/2

009

4/2

1/2

010

8/6

/2010

11/2

2/2

010

3/1

1/2

011

6/2

8/2

011

10/1

3/2

011

2/1

/2012

5/1

8/2

012

9/5

/2012

Trim Trim

Add Add

Trim Trim

Trim Trim Trim

Trim Trim

Add

Add

Add

Trim

Trim

Add

Trim

13 13 13

Sherwin-Williams (SHW): Current overweight 1.33%

Case study

Sherwin-Williams is an efficient and innovative producer and seller of paints and

coatings used by professionals, do-it-yourselfers, and general industry. Sherwin-

Williams sells paint, floor coverings, wall coverings, and other related materials

through an extensive network of paint stores. SHW has improved its returns in this

business by tightly managing its network of approximately 3,450 paint stores,

which exclusively sell Sherwin-Williams paints.

Sherwin Williams should benefit from a recovery in the US Housing market. In the

event of a US housing market recovery, we believe Sherwin is very well positioned

to meaningfully grow earnings. Sherwin has been diligent in the past few years

systematically reducing costs, and its likely the majority of the cost reductions are

structural and will not return as volumes improve.

Controlled Distribution = More Nimble Pricing. Sherwin increased selling prices on

four occasions since early 2010, a total of 23%.

Strong FCF in a Variety of Economic and Raw Material Environments.

Sherwin has consistently generated strong and consistent free cash flow through a

variety of economic conditions and raw material swings.

We expect the company will continue to take a balanced approach,

returning capital to shareholders in the form of dividends and share buybacks, and

the remaining for internal growth opportunities and acquisitions.







14

Sherwin-Williams (SHW): Our process in action

20

40

60

80

100

120

140

160

1/2

/2009

4/2

2/2

009

8/7

/2009

11/2

3/2

009

3/1

5/2

010

6/3

0/2

010

10/1

5/2

010

2/2

/2011

5/2

0/2

011

9/7

/2011

12/2

2/2

011

4/1

2/2

012

7/3

0/2

012

January 1, 2009 – September 30, 2012

Source: Factset

Add Add Add

Trim

Trim

Trim

Trim Trim Trim

15 15 15

Concho Resources (CXO): Current overweight 2.08%

We believe Concho Resources (CXO) is the lowest cost producer of

crude oil in the US. CXO operates primarily in the Permian Basin in

Texas and New Mexico. Due to the company's prudent capital

spending, favorable acreage position and low cost of production, it

has an "all in" breakeven of approximately USD 40 per barrel.

Because of its highly concentrated position within the Permian basin

as well as the high quality nature of its asset base, CXO's cost

structure is substantially below most other oil producers. Moreover,

CXO has drilled more horizontal shale wells within the Permian

basin than any other competitor, giving them an advantage with

respect to understanding of the geology of the area. We believe

this information will enable them to further increase their position in

the Permian at attractive economics.

We view CXO as having the strongest management team in the

exploration and production industry, with an excellent geological

team as well. CXO should be able to grow cash flow 20% a year

over the next 4-5 years while spending within internally generated

cash flow, thereby accreting substantial shareholder value over this

timeframe.

We believe CXO is also a highly attractive acquisition target by the

larger energy companies as well, although we do not expect

management to consider selling the company for several years.





Case study



New Mexico

Texas

Midland

Permian Basin

Delaware

Basin

Texas

Permian

New Mexico

Shelf

16

Concho Resources (CXO): Our process in action

60

70

80

90

100

110

120

1/3/2011 3/28/2011 6/20/2011 9/12/2011 12/2/2011 2/28/2012 5/21/2012 8/13/2012

December 31, 2010 – September 30, 2012

Source: Factset

Add

Trim

Add

Trim Trim

Trim

Trim

Add

Add Add

Add

Add

Trim

17

Putting it all together creates a diversified portfolio

Capitalizes on market misinterpretations

Process for US Large Cap Select Growth Equity / US Large Cap Growth Equity

Information is supplemental to the US Large Cap Growth Composite and the US Large Cap Select Growth Composite.

Note: The securities identified on this slide are current holdings as of the date of this presentation. This information should not be considered a recommendation to purchase or sell any particular security.

Please see the additional disclosures at the end of this presentation for further information.

We will pay a premium for

companies with sustainable growth

characteristics and a superior ROIC

Gro

wth

C

yc

lic

al

Su

sta

ina

ble

ROIC Low High

Cyclical Concho Resources

Schlumberger

Elite Amazon.com

Apple

Classic SherwinWilliams

CVS Caremark

18

Consistent excess returns

0%

2%

4%

6%

8%

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

US Large Cap Select Growth Composite

Supplemental - UBS AG Large Cap Select Growth

Rolling three-year periods excess returns

As of September 30, 2012

UBS Global AM US Large Capitalization Select Growth Composite inception date of October 31, 2004.

UBS AG, New York Branch (“Advisor”) Large Cap Select Growth Equity Composite. UBS AG NY Branch data is supplemental to US Large Cap Select Growth Equity Composite data and represents the

UBS Global Asset Management model managed in a substantially similar manner. Inception as of February 1, 2000. The returns shown above are based on currently available information and are

subject to revision. Past performance is no guarantee of future results. Performance figures are gross of fees. Please see attached disclosure information.

Excess returns calculated by subtracting benchmark returns from portfolio returns. Returns greater than one year annualized. Returns in USD. Benchmark used for excess return calculation is the Russell

1000 Growth Index.

US-I, US-P (RU)

19

Buy and sell disciplines

Consistent portfolio construction and management

Growth prospects not reflected in valuation

Strong analyst thesis

Fundamental confirmation of high and/or improving ROIC

Sustainable competitive advantage

Growth prospects do not support valuation

Violation of analyst thesis

Overriding sector concerns

Buy/Hold/Add Sell/Trim/Review

Process for US Large Cap Select Growth Equity / US Large Cap Growth Equity

20

Focus on risk management

Foundation for consistent alpha generation

Type of risk Action plan

Thesis construction risk

Macroeconomic risks

Valuation risks

• Diversification: 35-55 stocks, limits on individual

stock position size

• Bias towards quality businesses

• Invest in 3 diverse sources of growth

• Manage weights within distinct growth buckets

• Focus on non-correlated risks

• Probability-weighted scenario analysis

• Adherence to target prices

• Buy/sell discipline

• Business/monetary cycle risk

• Widening of potential future outcomes

Note: US Large Cap Select Growth Equity

• Price/unit assumptions too high

• Margins not sustainable

21

Diversified sources of growth

Historical allocations as of September 30, 2012

Source: US Large Cap Select Growth portfolio.

Information is supplemental to the US Large Cap Select Growth Composite.

As of September 30, 2012

0%

20%

40%

60%

80%

100%

Sep-02 Sep-03 Sep-04 Sep-05 Sep-06 Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12

Elite Classic Cyclical

US-I

Fundamental company research

Portfolio Construction

Risk management

22

US Large Cap Select Growth: Positioning

4.08%

-0.21%

-1.31%

-2.25%

-4.33%

-5.91%

-1.01%

5.31%

4.41%

1.22%

-10% -5% 0% 5% 10%

Information Technology

Consumer Discretionary

Energy

Health Care

Utilit ies

Telecommunication Services

Industrials

Materials

Financials

Consumer Staples

Percent (%)

Vs. Russell 1000 Growth as of September 30, 2012

Ten largest overweights Relative sector positions

Source: Factset

Supplemental information to the US Large Cap Select Growth Composite

US-I

Act ive posit ion

Visa 3.54%

Allergan 3.11

Estee Lauder 2.77

UnitedHealth Group 2.65

Amazon.com 2.63

Las Vegas Sands 2.33

Dollar General 2.31

CVS Caremark 2.27

FMC Technologies 2.25

Ralph Lauren 2.23

23

US Large Cap Select Growth Composite: Performance

Total returns for periods ending September 30, 2012 (in USD)

The returns shown above are based on currently available information and are subject to revision. Past performance is no guarantee of future results.

Performance figures are gross of fees. Please see attached disclosure information.

1 UBS Global AM US Large Capitalization Select Growth Composite

2 Inception date of October 31, 2004

3 UBS AG, New York Branch (“Advisor”) Large Cap Select Growth Equity Composite. UBS AG NY Branch data is supplemental to US Large Cap Select Growth Equity Composite data and represents

the UBS Global Asset Management model managed in a substantially similar manner.

4 Inception as of February 1, 2000

5 Since inception standard deviation based on monthly logarithmic returns

6 Tracking error is defined as annualized standard deviation of the difference between the monthly logarithmic returns of the portfolio and its benchmark

7 Information ratio is defined as the added value divided by the Tracking error

Annualized

Quarter YTD 1 year 3 years 5 years Since

incept ion2 Risk5 Track. error6

Info rat io7

US Large Cap Select Grow th1 7.41% 19.77% 30.53% 16.43% 5.52% 9.44% 17.69% 4.56% 0.67

Russell 1000 Growth 6.11 16.80 29.19 14.73 3.24 6.37 16.48

Value added 1.30% 2.97% 1.34% 1.70% 2.28% 3.07%

Supplemental performance information

Annualized

Quarter YTD 1 year 3 years 5 years Since

incept ion4 Risk5 Track. error6

Info rat io7

UBS AG, NY Branch US Large Cap Select Grow th3

7.46% 19.78% 30.56% 16.47% 5.46% 3.38% 18.45% 5.29% 0.67

Russell 1000 Growth 6.11 16.80 29.19 14.73 3.24 -0.18 18.88

Value added 1.35% 2.98% 1.37% 1.74% 2.22% 3.56%

US-I, US-P (RU)

24

US Large Cap Select Growth Composite: Performance

The returns shown above are based on currently available information and are subject to revision. Past performance is no guarantee of future results.

Performance figures are gross of fees. Please see attached disclosure information.

1 UBS Global AM US Large Capitalization Select Growth Composite

2 Inception date of October 31, 2004

3 UBS AG, New York Branch (“Advisor”) Large Cap Select Growth Equity Composite. UBS AG NY Branch data is supplemental to US Large Cap Select Growth Equity Composite data and represents

the UBS Global Asset Management model managed in a substantially similar manner.

4 Inception as of February 1, 2000

Calendar year performance as of September 30, 2012 (in USD)

US-I, US-P (RU)

Composite performance1,2

Date Portfolio Russell 1000

Grow th Index Value added

2005 16.04% 5.27% 10.77%

2006 5.88 9.07 -3.19

2007 18.48 11.81 6.67

2008 -37.96 -38.44 0.48

2009 49.76 37.21 12.55

2010 15.34 16.71 -1.37

2011 1.90 2.64 -0.74

2012 YTD 19.77 16.80 2.97

Supplemental performance3,4

Date Portfolio Russell 1000

Grow th Index Value added

2001 -21.72% -20.42% -1.30%

2002 -26.25 -27.88 1.63

2003 32.52 29.75 2.77

2004 13.83 6.30 7.53

2005 15.90 5.27 10.63

2006 5.71 9.07 -3.36

2007 18.60 11.81 6.79

2008 -38.19 -38.44 0.25

2009 49.63 37.21 12.42

2010 15.44 16.71 -1.27

2011 1.88 2.64 -0.76

2012 YTD 19.78 16.80 2.98

25

1

2

3

4

5

Oct

07

Jan

08

Ma

y 0

8

Se

p 0

8

Jan

09

Ma

y 0

9

Se

p 0

9

Jan

10

Ma

y 1

0

Se

p 1

0

Jan

11

Ma

y 1

1

Se

p 1

1

Jan

12

Ma

y 1

2

Se

p 1

2

Sta

rs

0

25

50

75

100

Pe

rce

nti

le

Overall Morningstar rat ing Lipper Rating

UBS USA Growth Fund – consistent out-performance

Source: Morningstar Direct, based on UBS (Lux) Equity SICAV - USA Growth (USD) P account, as at 30 September 2012.

Note: Past performance is no guarantee of future results

History of Morningstar rating and Lipper rankings since inception

26 26 26

UBS USA Growth Fund

UBS Large Cap Select Growth has strong relative performance over three and five

years and since inception1

Remains top quartile against peers over the same periods2

Morningstar rating: Lux vehicle has been awarded four stars

over three and five year periods3 with Bronze rating

Recently received Strong rating from Fitch4

UK vehicle has been rated AA by Standard and Poor’s5

A product with proven track-record

1 Source: UBS Global Asset Management, data as of 30 September 2012 / UBS Global AM US Large Capitalization Select Growth Composite inception date of October 31, 2004.

2 Source: eVestment Alliance, data as of 30 September 2012

3 Source: Morningstar, as of 30 September 2012. Morningstar “Star” rating system ranks funds based on Morningstar’s calculation of risk-adjusted returns after all fees for up to three periods

– the trailing three, five and ten years - depending on availability of data (where 3yrs data is available but not 5yrs, 100% 3yr data is used; where 5yrs but not 10yrs available, 60% 5yr and

40% 3yr is used, and where 10yrs is available, 50% 10yrs, 30% 5yrs and 20% 3yrs). 5 stars are awarded to the top 10% performing funds, 4 stars to the next 22.5%, 3 stars to the middle

35% of funds, 2 stars to the next 22.5% and 1 star to the bottom 10%.

4 Source: Fitch report dated 8 October 2012, based on data to 30 September 2012.

5 Source: Standard & Poor’s report dated August 2012, based on data to 30 June 2012. Refers to An S&P Fund Management Rating represents an opinion only and should not be relied on

when making an investment decision. “S&P” and “Standard & Poor’s” are trademarks of The McGraw-Hill Companies, Inc. Copyright 2012 © Standard & Poor’s Financial Services LLC.

27

Grant M. Bughman

Senior Equity Strategist

Director

Grant is a senior equity strategist on the Growth Investors team. Grant has primary responsibility for

the overall product positioning and development of US Growth equity strategies, as well as marketing

and communication to existing and prospective clients globally.

Prior to his current role Grant was an investment consultant, representing a suite of traditional and

alternative investment capabilities in the northern pacific region for UBS Global Asset Management.

Before joining UBS Global Asset Management in 2005, Grant held roles focusing on distribution and

marketing at SunAmerica Asset Management and as financial consultant with AXA.

Grant is FINRA Series 7 and 66 registered.

Years of investment industry experience: 12

Education: James Madison University (US), BA

28

US Large Capitalization Select Growth Composite

Schedule of composite performance

US-I, US-P (RU)

29

US Large Capitalization Select Growth Equity Composite

Supplemental performance information

The UBS AG, New York Branch (“Advisor”) Large Cap Select Growth Equity Composite represented below is a composite of diversif ied accounts, representative of the Private Bank Investor Services Growth Equity Model, a portfolio run in accordance with the Large Cap

Select Growth Model as provided by UBS Growth Investors and managed in a substantially similar manner to the UBS Global AM US Large Capitalization Select Growth Strategy. The Account Composite Performance was obtained from the records maintained by the

Advisor. Please note that the Account Composite Performance is not the UBS Global AM Large Cap Select Growth Strategy’s own historical performance and should not be considered a substitute for it. The Account Composite Performance is not necessarily an

indication of the UBS Global AM Large Cap Select Growth Strategy’s future performance.

1. The presentation of historical investment performance sets forth the time-weighted rates of return (the “Returns”) of the Large Cap Growth Equity Composite (the “Composite”) of UBSNY. The performance results of the Composite represent the historical returns of all

accounts managed by UBSNY (from February 1, 2000 to December 31, 2010) on a fully discretionary basis in accordance with the equity strategy described below. It should be noted that past performance may not be indicative of future results.

2. UBSNY employs a long-term approach in managing a focused portfolio of high quality securities of US companies whose returns and earnings or cash flow growth prospects are above the average large capitalization company ($2.5 billion or larger). The investment

strategy emphasizes stock selection with attention given to factor and sector exposures relative to the benchmark, the Russel l 1000 Growth Index.

3. The total rate of return for each of the time periods presented is equal to the change in the value of the Composite, including capital appreciation and depreciation, and dividend income, as a percentage of the beginning market value of the Composite, adjusted for the

net of all contributions and withdrawals (the “cash flows”). The composite includes accounts where income received is withdrawn from the portfolio on a monthly basis in accordance with the client’s mandate.

4. The rate of return is calculated on a “time-weighted” basis for all investments. The “time-weighted” rate of return minimizes the effect of cash flows on the investment performance of the Composite.

5. The annual Composite total rate of return is derived by geometrically linking monthly total rates of return.

6. The rates of return are after any trading expenses, and are presented gross of investment management fees. Generally, fees are charged quarterly in arrears and are based on the average of the month end market values. Performance is stated gross of fees.

Performance figures would be lower if shown net of fees.

7. Securities are valued at fair market value. Securities are valued using market quotations when readily available, provided such quotations adequately reflect, in the judgment of UBSNY, the fair value of the securities. Securities transactions are recorded on trade dates

and income is recognized when earned.

UBS AG NY Branch Large Cap Select Growth Equity Composite (February 1, 2000 through December 31, 2010)

Amounts and returns expressed in USD

Year Gross Asset -Weighted Return (%) Benchmark Return (%) Composite M arket Value – end of Period

20001 (7.59) (18.61) $61,804,360

2001 (21.72) (20.42) 44,614,850

2002 (26.25) (27.88) 21,908,483

2003 32.52 29.75 34,412,470

2004 13.83 6.30 35,948,466

2005 15.90 5.26 59,188,543

2006 5.71 9.07 68,388,489

2007 18.66 11.82 25,332,283

2008 (38.20) (38.44) 37,292,897

2009 49.63 37.21 35,541,995

2010 15.44 16.71 41,910,509

Note: Composite created February 1, 2000.

The Attestation Report of Independent Accountants, available upon request, is based on procedures performed on the composite from February 1, 2000 through December 31, 2010.

Benchmark returns are not covered by the Report of Independent Accountants. The composite’s past performance is not necessari ly an indication of how it will perform in the future.

1 Performance for the year 2000 is for the period from February 1 to December 31.

US-I, US-P (RU)

30

Additional information: UBS (Lux) Equity SICAV - USA Growth (USD) P-acc

Fund-specific risks: UBS Growth Funds invest in equities and may therefore be subject to high fluctuations in

value. For this reason, an investment horizon of at least five years and corresponding risk tolerance and capacity are

required. As these UBS funds pursue an active management style, each fund's performance can deviate

substantially from that of its benchmark. All investments are subject to market fluctuations. Every fund has specific

risks, which can significantly increase under unusual market conditions.

31

Disclaimer – Germany

For marketing and information purposes by UBS. For professional investors only. Representative in Germany for UBS funds

established under foreign law: UBS Deutschland AG, Bockenheimer Landstraße 2-4, 60306 Frankfurt am Main. Prospectuses, key

investor information, the articles of association or the management regulations as well as annual and semi-annual reports of UBS funds

are available free of charge from UBS Deutschland AG or from UBS Global Asset Management (Deutschland) GmbH, Bockenheimer

Landstraße 2-4, 60306 Frankfurt am Main. UBS Institutional Funds under Swiss and Luxembourg law. Before investing in a product

please read the latest prospectus carefully and thoroughly. This document is for distribution only under such circumstances as may be

permitted by applicable law. It was written without reference to any specific or future investment objective, financial or tax situation or

requirement on the part of a particular individual or group. The document is for information purposes only and is not intended to be

construed as a solicitation or an invitation to make an offer, to conclude a contract, or to buy or sell any securities or related financial

instruments. The products or securities described herein may not be eligible for sale in all jurisdictions or to certain categories of

investors. The information and opinions contained in this document have been compiled or arrived at based upon information obtained

from sources believed to be reliable and in good faith, but is not guaranteed as being accurate, nor is it a complete statement or

summary of the securities, markets or developments referred to in the document. The details and opinions contained in this document

are provided by UBS without any guarantee or warranty and are for the recipient's personal use and information purposes only. Past

performance of investments (whether simulated or actual) is not necessarily an 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. Should the currency of a financial product or service not match your reference currency, performance

may rise or fall due to currency fluctuations. All such information and opinions are subject to change without notice. UBS AG and / or

other members of the UBS Group may have a position in and may make a purchase and / or sale of any of the securities or other

financial instruments mentioned in this document. This document may not be reproduced, redistributed or republished for any purpose

without the written permission of UBS AG. 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 2012. The key symbol and UBS are among the registered and

unregistered trademarks of UBS. All rights reserved.

Documents

Ubs global asset management