UBS Alternative Portfolio AG

Transcription

1 April 20 For professional/institutional/qualified investors only UBS Alternative Portfolio AG Investment objective Aims to achieve attractive risk-adjusted returns over the long term Aims to maintain low to moderate volatility of returns Aims to maintain low correlation to traditional asset classes Product description UBS Alternative Portfolio AG is an investment company based in Zurich, Switzerland. The company invests both in hedge funds and private equity funds. With their investment, shareholders have access to a diversified portfolio of alternative investments. Key benefits Focus on private equity funds with hedge fund components seeking "value added" to a core, diversified private equity portfolio Easy accessib structure geared towards the qualified investor Fund performance (%) - last five candar years (adjusted for dividends paid) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD Annualized return (%) 1 Year 3 Years 5 Years Since inception UBS Alternative Portfolio AG returns represent the profits or losses of the Fund net: (i) 1.00% annualised management fee, (ii) between 0% and.00% p.a. performance fee deducted from monthly profits, and (iii) expenses charged to the Fund in the month shown. The returns are based on calculations and information provided to the Fund's Investment Advisor, UBS AG, Alternative Funds Advisory, by the Fund's Administrator, UBS Fund Services (Cayman) Ltd, the latter being a common affiliate of UBS AG. In addition to being unaudited, the returns have not been reviewed by an independent third party. Therefore, the returns are subject to change without notification to the recipient based on, amongst other things, an annual audit of the Fund. Any returns presented may or may not be indicative of the returns of the share class, series, and/or fund offered to you. Your actual returns may be different and can be determined from the NAV statements sent by the fund s administrator. Due to the Product's extended track record, the above fund performance tab is limited to prior monthly performance for the five preceding candar years. The annualized returns shown in the above tab cover the prior 12, 36, 60 months and since inception time periods. The full monthly track record is availab upon request. Investment advisor Alternative Funds Advisory ("AFA"), a key fund of funds provider since 1997 within Global Asset Management, for illiquid alternative asset classes, including private equity and infrastructure. Current data Net asset value Fund assets (mln)* * As of 1 May 20 Key information (1) USD USD 271 Investment Manager UBS Fund Services (Cayman) Business Unit Alternative Funds Advisory Fund domici Switzerland Fund inception date 1 November 2000 Share class inception date 1 November 2000 Minimum initial subscriptions (2) Minimum subsequent subscriptions Subscription Redemption Management fee 1.00% Performance fee between 0% and.00% (1) Pase see the fund's offering memorandum for specific details (2) Subject to fund domici and local guidelines / minimum investment one share Fund codes ISIN Valor no. CH The chart below illustrates the performances of UBS Alternative Portfolio AG and several indices. All indexed to 1,000 at the track record inception of 1 November 2000 Cumulative performance Oct-00 Apr-01 Oct-01 Apr-02 Oct-02 Apr-03 Oct-03 Apr-04 Oct-04 Apr-05 Oct-05 UBS Alternative Portfolio AG AP PE Portfolio Gross Apr-06 Oct-06 Apr-07 Oct-07 Apr-08 Oct-08 Apr-09 Oct-09 Apr-10 Oct-10 Apr-11 Oct-11 AP HF Portfolio Gross MSCI World (TR, Gross) Each index shown as if the index was at 1,000 as of 1 November The chart displayed above is intended soly for illustrative purposes. Neither the Fund nor any of the other indices shown are intended to track each other as they follow different investment strategies/programs, and different results over similar periods can be expected. Note: data assumes re-investment of any dividend where applicab. UBS Alternative Portfolio AG AP HF Portfolio Gross AP PE Portfolio Gross Apr-12 Oct-12 Apr-13 Oct-13 Apr- MSCI World (TR, Gross) MTD return 1.45% -0.05% 1.74% 1.08% YTD return 6.52% 1.95% 9.18% 2.49% Annualized return 5.80% 5.29% 7.42% 4.54% 12 month rolling return 16.22% 8.57% 20.04% 17.23% Annualized volatility 4.86% 5.70% 6.80% 16.23% 12 month rolling volatility 2.86% 3.87% 3.55% 9.72% Sharpe ratio Sortino ratio Correlation coefficient Highest 1 month loss -4.69% -7.% -6.00% % Maximum draw-down % % % % Positive months 67.28% 62.35% 66.67% 59.88% Source: Alternative Funds Advisory, A&Q Investments, Citigroup, Bloomberg, HFRI Product commentary The UBS Alternative Portfolio AG compted its next share buyback from own funds with end of April. For the share buyback, a fixed discount of 10% to the February 20 NAV was applied. This d to a value compression per share contributing an additional return of approximately +0.32% in April on top of the HF und PE performance. The year-to-date performance of the UBS Alternative Portfolio AG was of 6.52% as of 30 April 20. Private Equity: The AP PE portfolio year-to-date performance has increased to 9.18% as of 30th of April. In the month April the PE portfolio added 1.74% to the YTD performance. The value drivers in the portfolio were in particular Apax Europe VI, followed by Nexus India II, HarbourVest IV, and Madision Dearborn V. The portfolio is well cash-flow positive as distributions remain high and the natural phase-out of the investment activity continues. The portfolio received USD 5.2 million from distributions, which was slightly higher as in the previous month. Affinity Asia Pacific III alone distributed about a third (USD 1.72 million) of April's distributions through the sa of "Oriental Brewery". Other funds that were quite active in distributing money back to the portfolio were TA Atlantic and Pacific VI, HarbourVest IV, and Adveq Technology III. As the fund is in wind-down mode the investment activities continued to be with USD 1 million on the same low vel as in the previous months. Silverlake III, Equistone IV, and Nexus India II were responsib for more than a half of the amount cald. Hedge Fund: The performance of the hedge fund portfolio has been flat in April. The main negative contribution came from equity hedged where sector ration has continued and where especially the underperformance of small cap names has hurt performance. The credit managers have contributed positively and have done well in their credit section with basically no additional support from the markets. Trading managers did well although the segment was chalnged in April and therefore generated healthy alpha. Relative Value continued to perform positively in a steady and quiet manner.

2 Aggregate portfolio profi as of 1 May 20 Strategy allocation lookthrough (%) Geographic allocation lookthrough (%) Private Equity Cash & Other Equity Hedged Relative Value Credit/Income Trading Other North America Europe Asia Cash & Other Rest of World Global Based on Alternative Funds Advisory's proprietary allocation and may not directly correspond to exposure shown by underlying funds. Based on Alternative Funds Advisory's proprietary allocations of underlying funds to multip geographic areas and may not directly correspond to exposure shown by underlying funds. Strategy contribution Strategy %Allocation % MTD Contribution % YTD Contribution Private Equity Cash & Other.00 Equity Hedged Relative Value Trading Credit/Income Multi-Strategy Trading Opport./Macro 0.74 Other Total Based on Alternative Funds Advisory's proprietary allocations of each underlying fund contribution to one investment strategy and gross of fees. Allocations may not directly correspond to exposure shown by underlying funds. Hedge Fund portfolio profi as of 1 May 20 Strategy allocation lookthrough HF type exposure (%) Equity Hedged Trading Credit/Income Relative Value Other Geographic allocation lookthrough HF type exposure (%) US/Canada Europe/UK Developed Asia ex-japan LatAm Japan EEMEA Other 22 22

3 Private Equity portfolio profi as of 1 May 20 Actual stage exposure (%) Actual geographic exposure (%) Buyout Growth Capital Venture capital Special situations North America Europe APAC Rest of World Actual sector exposure (%) Consumer IT Financial & other serv. Healthcare Industrial Basic Materials Tecommunications Other Sector Fund name Commitment Open Market Value %Allocation Active Abingworth Bioventures V Accel Growth Fund II Accel XI Activa Capital Fund II Adams Street 2006 Direct Fund Adams Street Global Opportunities Secondary Fund Adams Street Non-U.S. Partnership Adams Street US Partnership Adams Street US Partnership Adams Street V Advent International GPE V Advent International GPE VI Advent International GPE VII Adveq Asia I Adveq Technology III Adveq Technology V Affinity Asia Pacific Fund III Apax Europe VI Apax Europe VII Apax VIII Atlas Venture VII Bain Capital IX Bain Capital X Battery Ventures IX Bayside Fund II BC European Capital IX Brinson Non-U.S. Partnership Brinson Non-U.S. Partnership Brinson Non-U.S. Partnership Brinson Non-U.S. Partnership Brinson Primary Partnership Brinson Primary Partnership Brinson Primary Partnership Brinson Primary Partnership Brinson Secondary Non-U.S. Partnership Brinson Secondary Non-U.S. Partnership Brinson Secondary Non-U.S. Partnership Brinson Secondary Partnership Brinson Secondary Partnership Charterhouse Capital Partners VII Charterhouse Capital Partners VIII ChrysCapital V EQT IV EQT V EQT VI Equistone European Fund IV Francisco Partners III

4 Fund name Commitment Open Market Value %Allocation Active GAM Pomona II Global Timber Investors Gores Capital Partners II Gores Capital Partners III HarbourVest International IV Harvest Partners VI Hony Capital Fund Hony Capital Fund V L.P Institutional Venture Partners XIV Investindustrial III Investindustrial IV Investindustrial V IPV Capital (Infotech Pacific Ventures) IPV Capital II (Infotech Pacific Ventures II) Madison Dearborn Capital Partners V Madison Dearborn Capital Partners VI Mayfield XIV MHR Institutional Associates III Montagu III Navis Asia Fund V NEA NEA NewMargin Growth Fund Nexus India Capital Fund II Nexus Ventures III Nordic Capital VII Oaktree European Principal Fund III Permira Europe IV Providence Equity Partners VI Rutland Fund II SBCVC Fund III SBCVC Fund IV Silver Lake Partners II Silver Lake Partners III Summit Partners Growth Equity Fund VIII Summit Partners Private Equity Fund VII Sun Capital V TA Atlantic and Pacific V TA Atlantic and Pacific VI UBS Private Equity Global II USVP X VantagePoint Venture Partners VenCap 10 EUR VenCap 10 USD Vestar Capital Partners V Warburg Pincus Private Equity IX Warburg Pincus Private Equity VIII Warburg Pincus Private Equity X Total

5 Aggregate portfolio positions as of 1 May 20 Fund name %Allocation Strategy % MTD % YTD Tilden Park Investment Fund A Restricted 1.55 Hedge Fund Senator H 1.52 Hedge Fund Cello Fixed Income Fund A1b 1.30 Hedge Fund Man AHL Evolution E 1.13 Hedge Fund Jana Nirvana Offshore Fund A 1.09 Hedge Fund NWI Explorer Global Fund AB 1.04 Hedge Fund Pelham Long Short Fund A 1.04 Hedge Fund Bronson Point B Hedge Fund TIG Securitized Asset Fund A Hedge Fund Legg Mason Western Asset Macro Opportunities Bond P 0.74 Hedge Fund * D.E. Shaw Oculus Hedge Fund GAM Tantum Enhanced Europe Long Short Fund B 0.71 Hedge Fund York European A 0.55 Hedge Fund * Voon Investors Fund A 0.49 Hedge Fund Milnnium FF 0.45 Hedge Fund Pershing Square International E 0.34 Hedge Fund Milnnium R 0.30 Hedge Fund Cheyne K USD 0.17 Hedge Fund D.E. Shaw Composite SP 0.13 Hedge Fund QVT SLV Offshore A 0.13 Hedge Fund Polygon Recovery C 0.12 Hedge Fund Milnnium PP 0.11 Hedge Fund CSP I Credit Opportunistic Fund I 0.11 Hedge Fund Highland Crusader II AP 0.09 Hedge Fund Vicis A 0.06 Hedge Fund Capital International E 0.04 Hedge Fund * Drawbridge S (side pocket) 0.02 Hedge Fund Drawbridge SPV (side pocket) 0.01 Hedge Fund Weavering Fixed Income Fund USD Hedge Fund * OZ Overseas II H Prime (side pocket) Hedge Fund Total Hedge Fund Nordic Capital VII 2.64 Private Equity * UBS Private Equity Global II 2.53 Private Equity 5.41* Bain Capital X 2.36 Private Equity 2.60* TA Atlantic and Pacific VI 2.34 Private Equity 5.71* VenCap 10 USD 2.33 Private Equity 4.10* Navis Asia Fund V 2.28 Private Equity 5.33* Warburg Pincus Private Equity X 2.21 Private Equity 11.20* Apax Europe VII 2.02 Private Equity * Adveq Technology III 1.96 Private Equity 5.08* Apax Europe VI 1.70 Private Equity * Madison Dearborn Capital Partners V 1.67 Private Equity * Nexus India Capital Fund II 1.67 Private Equity * Investindustrial III 1.65 Private Equity -3.80* Activa Capital Fund II 1.64 Private Equity * SBCVC Fund III 1.45 Private Equity 37.94* MHR Institutional Associates III 1.41 Private Equity Silver Lake Partners III 1.35 Private Equity 12.77* Adveq Asia I 1.34 Private Equity 8.01* Vestar Capital Partners V 1.29 Private Equity * Advent International GPE VI 1.20 Private Equity * Warburg Pincus Private Equity VIII 1. Private Equity.83* HarbourVest International IV 1. Private Equity * Sun Capital V 1. Private Equity 4.24* Adams Street V 1.06 Private Equity 18.35* Gores Capital Partners II 1.04 Private Equity 5.90* Investindustrial IV 1.02 Private Equity 18.02* EQT V 0.94 Private Equity 2.32* GAM Pomona II 0.90 Private Equity 1.49* Adams Street US Partnership Private Equity 4.65* VenCap 10 EUR 0.85 Private Equity 4.62* Providence Equity Partners VI 0.82 Private Equity * Charterhouse Capital Partners VIII 0.81 Private Equity * Adams Street US Partnership Private Equity 8.08* Permira Europe IV 0.77 Private Equity 6.69* NewMargin Growth Fund 0.74 Private Equity 1.57* Brinson Non-U.S. Partnership Private Equity 7.35* Hony Capital Fund Private Equity -1.50* Brinson Primary Partnership Private Equity 2.49* * Return is not over full period Cash and other includes other assets net of liabilities. The performance shown are on the ad series of the respective fund and may differ from the performance the product is invested in. The displayed performances are net performances of the underlying funds but gross of fees charged on UBS Alternative Portfolio AG. The performances of veraged funds or share classes are impacted not only by the performance of the underlying portfolio but also by interest rates and implicit financing costs.

6 Fund name %Allocation Strategy % MTD % YTD Affinity Asia Pacific Fund III 0.62 Private Equity 7.52* Equistone European Fund IV 0.62 Private Equity 9.44* Battery Ventures IX 0.61 Private Equity 6.39* Francisco Partners III 0.60 Private Equity 13.60* VantagePoint Venture Partners Private Equity * Adams Street Global Opportunities Secondary Fund 0.54 Private Equity 5.* Advent International GPE V 0.53 Private Equity * Madison Dearborn Capital Partners VI 0.53 Private Equity * Bain Capital IX 0.52 Private Equity 5.04* Atlas Venture VII 0.51 Private Equity * Rutland Fund II 0.49 Private Equity 10.69* EQT IV 0.48 Private Equity 44.52* Gores Capital Partners III 0.46 Private Equity 15.80* NEA 0.44 Private Equity * IPV Capital (Infotech Pacific Ventures) 0.43 Private Equity * BC European Capital IX 0.43 Private Equity * Accel Growth Fund II 0.43 Private Equity * Adams Street Non-U.S. Partnership Private Equity 7.89* Abingworth Bioventures V 0.42 Private Equity * ChrysCapital V 0.40 Private Equity 29.37* SBCVC Fund IV 0.39 Private Equity 7.37* Bayside Fund II 0.38 Private Equity 5.17* Brinson Primary Partnership Private Equity 4.35* Summit Partners Private Equity Fund VII 0.36 Private Equity 10.88* Adveq Technology V 0.36 Private Equity * Oaktree European Principal Fund III 0.35 Private Equity * EQT VI 0.34 Private Equity 9.54* Advent International GPE VII 0.34 Private Equity * Brinson Primary Partnership Private Equity 8.66* NEA Private Equity * Brinson Primary Partnership Private Equity 4.08* Brinson Non-U.S. Partnership Private Equity 5.99* Brinson Non-U.S. Partnership Private Equity -5.45* IPV Capital II (Infotech Pacific Ventures II) 0. Private Equity * Accel XI 0. Private Equity * Summit Partners Growth Equity Fund VIII 0.23 Private Equity 4.58* Charterhouse Capital Partners VII 0.20 Private Equity * Global Timber Investors Private Equity -6.58* Harvest Partners VI 0.19 Private Equity 0.80* Apax VIII 0.17 Private Equity * Institutional Venture Partners XIV 0.17 Private Equity * Adams Street 2006 Direct Fund 0.16 Private Equity 6.35* Warburg Pincus Private Equity IX 0.15 Private Equity 2.48* USVP X 0. Private Equity 1.33* TA Atlantic and Pacific V 0.12 Private Equity 12.70* Hony Capital Fund V L.P Private Equity 4.42* Brinson Secondary Partnership Private Equity 3.38* Montagu III 0.10 Private Equity * Nexus Ventures III 0.10 Private Equity * Investindustrial V 0.09 Private Equity -4.28* Silver Lake Partners II 0.08 Private Equity 5.94* Brinson Secondary Non-U.S. Partnership Private Equity 5.18* Mayfield XIV 0.05 Private Equity * Brinson Non-U.S. Partnership Private Equity 6.47* Brinson Secondary Partnership Private Equity 5.33* Brinson Secondary Non-U.S. Partnership Private Equity 2.38* Brinson Secondary Non-U.S. Partnership Private Equity 31.92* Total Private Equity Cash & Other USD Total Cash.00 Cash.00 * Return is not over full period Cash and other includes other assets net of liabilities. The performance shown are on the ad series of the respective fund and may differ from the performance the product is invested in. The displayed performances are net performances of the underlying funds but gross of fees charged on UBS Alternative Portfolio AG. The performances of veraged funds or share classes are impacted not only by the performance of the underlying portfolio but also by interest rates and implicit financing costs.

7 Risk considerations The Fund's investment program is speculative and entails substantial risks which may place your capital at risk. An investment in the Fund includes the risks inherent in an investment in securities, as well as specific risks associated with limited liquidity, the use of verage, short sas, options, futures, derivative instruments, investments in non-u.s. securities and illiquid investments. The Fund invests largely in other unregulated hedge funds. Such a portfolio of hedge funds may increase an investor's volatility for potential losses or gains. One or more of the funds, from time to time, may invest a substantial portion of the assets managed in an industry sector. As a result, the manager's investment portfolio (as well as the Fund's) may be subject to greater risk and volatility than if investments had been made in the securities of a broader range of issues. There can be no assurances that a fund's strategy (hedging or otherwise) will be successful or that it will employ such strategies with respect to all or any portion of its portfolio. The investment funds in which the Fund invests can be highly illiquid, are not required to provide periodic pricing or valuation to investors, and may involve compx tax strategies. In addition, the overall performance of the Fund is dependent not only on the investment performance of individual managers, but also on the ability of the Fund's Adviser to effectively sect and allocate the Fund's assets among such managers on an ongoing basis. The Fund's portfolio may be highly veraged and the volatility of the price of its interests may be great. The Fund's fees and expenses may substantially offset the Fund's trading profits. There is no secondary market for interests in the Fund and none is expected to develop. In addition, the ability to transfer one's interest in the Fund is restricted. It is possib that the Fund will be unab to provide tax information to investors without significant delays and investors may need to seek extensions on the time to fi their tax returns at the federal, state and local vels. Interests are not deposits or obligations of, or guaranteed or endorsed by any bank or other insured depository institution, and are not insured by the Federal Deposit Insurance Corporation, Financial Service Compensation Scheme or other revant non-u.s. governmental agency. Investors should consider the Fund as a suppment to an overall investment program and should invest only if they are willing to undertake the risks involved. Endnotes Statistics definitions Volatility Volatility is measured using the standard deviation. The standard deviation is a statistical measure of the degree to which an individual value in a probability distribution tends to vary from the mean of the distribution. The greater the degree of dispersion, the greater the risk. Sharpe ratio The Sharpe ratio measures the relationship of reward to risk in an investment strategy. It is generally interpreted that a higher ratio implies lower risk. The ratio is calculated as the average revant annualized return ss the risk free return divided by the standard deviation of the return. The risk-free return is calculated as the average annualized return of a revant short-term interest rate product corresponding to the currency of the share class presented. Sortino ratio The Sortino ratio is a variation of the Sharpe ratio, which differentiates downside risk from general volatility to help measure the return relative to "harmful" volatility. The ratio is calculated as the revant annualized return ss the risk free rate divided by the loss deviation. The loss deviation focuses on negative values in a distribution and is calculated as the annualized standard deviation of negative returns. Index definitions AP HF Portfolio Gross: AP HF Portfolio Gross is equal to the composite hedge fund gross track record of Alternative Portfolio Ltd. AP PE Portfolio Gross: AP PE Portfolio Gross is equal to the composite private equity gross track record of Alternative Portfolio Ltd. MSCI World (Total Return) Gross A free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. As of June 2007 the MSCI World Index consisted of the following 23 developed market country indices: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom, and the United States. For marketing and information purposes by UBS. For professional investors only. This document has been issued by UBS AG, a company registered under the Laws of Switzerland. This document is for distribution only under such circumstances as may be permitted by applicab 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 eligib for sa in all jurisdictions or to certain categories of investors. The information and opinions contained in this document have been compid or arrived at based upon information obtained from sources believed to be reliab and in good faith, but is not guaranteed as being accurate, nor is it a compte 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. 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 sa 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. Whi 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 20. The key symbol and UBS are among the registered and unregistered trademarks of UBS. All rights reserved.