Semi-Annual Report 2013

Transcription

1 ab Asset management UBS Funds Semi-Annual Report 2013 Investment Fund under Luxembourg Law R.C.S. Luxembourg N B Unaudited semi-annual report as of 31 July 2013 UBS (Lux) Strategy Fund UBS (Lux) Strategy Fund Fixed Income (CHF) UBS (Lux) Strategy Fund Yield (CHF) UBS (Lux) Strategy Fund Balanced (CHF) UBS (Lux) Strategy Fund Growth (CHF) UBS (Lux) Strategy Fund Equity (CHF) UBS (Lux) Strategy Fund Fixed Income (EUR) UBS (Lux) Strategy Fund Yield (EUR) UBS (Lux) Strategy Fund Balanced (EUR) UBS (Lux) Strategy Fund Growth (EUR) UBS (Lux) Strategy Fund Equity (EUR) UBS (Lux) Strategy Fund Fixed Income (USD) UBS (Lux) Strategy Fund Yield (USD) UBS (Lux) Strategy Fund Balanced (USD) UBS (Lux) Strategy Fund Growth (USD) UBS (Lux) Strategy Fund Equity (USD)

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3 Unaudited semi-annual report as of 31 July 2013 Table of contents Page ISIN Management and Administration 2 Features of the Fund 4 UBS (Lux) Strategy Fund 9 UBS (Lux) Strategy Fund Fixed Income (CHF) 11 P-dist/ LU P-acc/ LU UBS (Lux) Strategy Fund Yield (CHF) 19 P-dist/ LU P-acc/ LU K-1-acc/ LU UBS (Lux) Strategy Fund Balanced (CHF) 41 P-dist/ LU P-acc/ LU P-C-dist/ LU UBS (Lux) Strategy Fund Growth (CHF) 63 P-acc/ LU UBS (Lux) Strategy Fund Equity (CHF) 83 P-acc/ LU UBS (Lux) Strategy Fund Fixed Income (EUR) 100 P-dist/ LU P-acc/ LU N-acc/ LU UBS (Lux) Strategy Fund Yield (EUR) 107 P-dist/ LU P-acc/ LU N-acc/ LU K-1-acc/ LU UBS (Lux) Strategy Fund Balanced (EUR) 127 P-dist/ LU P-acc/ LU P-C-dist/ LU N-acc/ LU K-1-acc/ LU UBS (Lux) Strategy Fund Growth (EUR) 147 P-acc/ LU N-acc/ LU UBS (Lux) Strategy Fund Equity (EUR) 166 P-acc/ LU N-acc/ LU UBS (Lux) Strategy Fund Fixed Income (USD) 183 P-dist/ LU P-acc/ LU UBS (Lux) Strategy Fund Yield (USD) 190 P-dist/ LU P-acc/ LU K-1-acc/ LU UBS (Lux) Strategy Fund Balanced (USD) 209 P-dist/ LU P-acc/ LU P-C-dist/ LU UBS (Lux) Strategy Fund Growth (USD) 228 P-acc/ LU UBS (Lux) Strategy Fund Equity (USD) 245 P-acc/ LU Notes to the Financial Statements 262 Sales restrictions Units of this Fund may not be offered, sold or distributed within the United States of America. Internet address 1

4 Management and Administration Management Company UBS Fund Management (Luxembourg) S.A., 33A, avenue J.F. Kennedy, L-1855 Luxembourg R.C.S. Luxembourg N B Board of Directors Andreas Schlatter, Chairman Group Managing Director, UBS AG, Basel and Zurich Mario Cueni, Member Group Managing Director, UBS AG, Basel and Zurich Martin Thommen, Member Managing Director, UBS AG, Basel and Zurich Gilbert Schintgen, Member Managing Director, UBS Fund Management (Luxembourg) S.A., Luxembourg Christian Eibel, Member Executive Director, UBS AG, Basel and Zurich Portfolio Manager UBS AG, UBS Global Asset Management, Basel and Zurich Custodian Bank and main paying agent UBS (Luxembourg) S.A., 33A, avenue J.F. Kennedy, L-1855 Luxembourg Administrative agent Auditors of the Fund and the Management Company ERNST & YOUNG S.A., 7, Rue Gabriel Lippmann, Parc d Activité Syrdall 2, L-5365 Munsbach Sale in Switzerland Representative UBS Fund Management (Switzerland) AG, Brunngässlein 12, CH-4002 Basel Paying agents UBS AG, Aeschenvorstadt 1, CH-4002 Basel UBS AG, Bahnhofstrasse 45, CH-8098 Zurich and its offices in Switzerland The sales prospectus, the KIID, management regulations, annual and semi-annual reports as well as the portfolio movements of the investment fund mentioned in this publication are available free of charge from UBS AG, P.O. Box, CH-4002 Basel and from UBS Fund Management (Switzerland) AG, P.O. Box, CH-4002 Basel. Sale in Germany Paying and information agent UBS Deutschland AG, Bockenheimer Landstrasse 2-4, D Frankfurt am Main The sales prospectus, the KIID, management regulations, annual and semi-annual reports as well as the portfolio movements of the investment fund mentioned in this publication are available free of charge from UBS Deutschland AG, Bockenheimer Landstrasse 2-4, D Frankfurt am Main. UBS Fund Services (Luxembourg) S.A., 33A, avenue J.F. Kennedy, L-1855 Luxembourg UBS (Lux) Strategy Fund 2

5 Sale in Liechtenstein Paying agent Liechtensteinische Landesbank AG, Städtle 44, FL-9490 Vaduz Sale in Austria, in Cyprus, in Finland, in France, in Greece, in Hungary, in Iceland, in Italy, in the Netherlands, in Norway, in Portugal, in Singapore*, in Spain, in Sweden, in Taiwan and in the United Kingdom Units of this fund may be sold in these countries. * Restricted foreign scheme The sales prospectus, the KIID, management regulations, annual and semi-annual reports as well as the portfolio movements of the investment fund mentioned in this publication are available free of charge at the sales agencies and at the registered office of the Management Company. UBS (Lux) Strategy Fund 3

6 Features of the Fund UBS (Lux) Strategy Fund (hereinafter called the Fund ) offers investors various subfunds ( umbrella construction ) which invest in accordance with the investment policy described in the sales prospectus. The specific details on each subfund, are defined in the sales prospectus, which will be updated on the inception of each new subfund. The Fund was established as a legally dependent openended investment fund in the form of a collective investment fund (fonds commun de placement, FCP) pursuant to Part I of the Luxembourg law relating to Undertakings for Collective Investment of 30 March 1988 and adapted in June 2005 to conform to Part I of the Luxembourg Law of 17 December 2010 on undertakings for collective investment (hereinafter Law of 2010 ). The Fund s management regulations may be amended in observance of the provisions of the law. Each amendment deposited is announced in the Mémorial. The new management regulations come into force on the date they are signed by the Management Company and the Custodian Bank. The consolidated version is held by the Commercial and Company Register (Registre de Commerce et des Sociétés) for inspection. The Fund has no legal personality as an investment fund. The entire net assets of each subfund are the undivided property of all unitholders who have equal rights corresponding to the unit classes they hold. These assets are separate from the assets of the Management Company. The securities and other assets of the Fund are managed by UBS Fund Management (Luxembourg) S.A. as separate trust assets in the interests and for the account of the unitholders. As at 31 July 2013 the following subfunds are active: UBS (Lux) Strategy Fund Currency Fixed Income (CHF) CHF Yield (CHF) CHF Balanced (CHF) CHF Growth (CHF) CHF Equity (CHF) CHF Fixed Income (EUR) EUR Yield (EUR) EUR Balanced (EUR) EUR Growth (EUR) EUR Equity (EUR) EUR Fixed Income (USD) USD Yield (USD) USD Balanced (USD) USD Growth (USD) USD Equity (USD) USD Various unit classes can be offered for the subfunds. Information on which unit classes are available for which subfund can be obtained from the Administrative Agent or at Only registered units are issued. P Units in classes with P in their name are available to all investors. Their smallest tradable unit is Unless the Management Company decides otherwise, the initial issue price of these units amounts to AUD 1 000, CAD 1 000, CHF 1 000, CZK , EUR 1 000, GBP 1 000, HKD , JPY , PLN 5 000, RMB , RUB , SEK 7 000, SGD or USD P-C Units of classes with P-C as part of their name entitle the holder to an annual distribution. This distribution, however, is not paid to the unitholder but instead is transferred in total to the UBS Optimus Foundation, a foundation established on 13 December 1999 in accordance with Swiss law. Its purpose is to promote the cultural, artistic, scientific and social life and creation in the widest possible sense in all its possible forms and to support persons who are in need and to assist those suffering from a mental or physical handicap. Distributions relating to unit class P-C are paid in total to the UBS Optimus Foundation which uses them for charitable purposes as defined in its aims. The entire issuing commission for units in class P-C is also paid to the UBS Optimus Foundation, together with the total all-in-fee chargeable on the portion of the net assets attributable to units in class P-C. Units in class P-C are obtainable only from the Management Company and UBS distributors. Their smallest tradable unit is Unless the Management Company decides otherwise, the initial issue price of these units amounts to AUD 100, CAD 100, CHF 100, CZK 2 000, EUR 100, GBP 100, HKD 1 000, JPY , PLN 500, RMB 1 000, RUB 3 500, SEK 700, SGD 100 or USD 100. N Units in classes with N in their name (units with restrictions on the distribution partners or countries) are issued exclusively through Distributors domiciled in Spain, Italy, Portugal and Germany authorised by UBS AG, as well as, where appropriate, through Distributors in further UBS (Lux) Strategy Fund 4

7 distribution countries, provided this has been decided by the Management Company. Their smallest tradable unit is Unless the Management Company decides otherwise, the initial issue price of these units amounts to AUD 100, CAD 100, CHF 100, CZK 2 000, EUR 100, GBP 100, HKD 1 000, JPY , PLN 500, RMB 1 000, RUB 3 500, SEK 700, SGD 100 or USD 100. K-1 Units in classes with K-1 in their name are available to all investors. Their smallest tradable unit is 0.1. Unless the Management Company decides otherwise, the initial issue price of these units amounts to AUD 5 million, CAD 5 million, CHF 5 million, CZK 100 million, EUR 3 million, GBP 2.5 million, HKD 40 million, JPY 500 million, PLN 25 million, RMB 35 million, RUB 175 million, SEK 35 million, SGD 5 million or USD 5 million. F Units in classes with F in their name are exclusively available to UBS AG or one of its affiliated companies. The units may only be acquired by UBS AG or one of its affiliated companies for their own account or as part of discretionary asset management mandates concluded with UBS AG or one of its affiliated companies. In the latter case, the units will be returned to the Fund at the prevailing net asset value at no charge upon termination of the mandate. The smallest tradable unit of these units is Unless the Management Company decides otherwise, the initial issue price of these units amounts to AUD 100, CAD 100, CHF 100, CZK 2 000, EUR 100, GBP 100, HKD 1 000, JPY , PLN 500, RMB 1 000, RUB 3 500, SEK 700, SGD 100 or USD 100. Q Units in classes with Q in their name are available: (i) for distribution from an eligible country as defined by List A ; or (ii) to investors domiciled in other countries, if they are professionals of the financial sector and a written agreement exists with UBS AG; and who make the following investments in their own name and: (a) on their own behalf; (b) on behalf of their clients within a discretionary mandate; or (c) on behalf of a collective investment managed by a professional of the financial sector. In cases (b) and (c) said professional has been duly authorised by the supervisory authority to which he/she is subject to carry out such transactions and is domiciled in an eligible country as defined by List B and/or is operating on behalf of another professional of the financial sector who has been authorised in writing by UBS AG and is domiciled in one of the countries covered by List B. Admission of investors in further distribution countries (lists A and B) shall be decided by the Management Company at its sole discretion and are disclosed on Their smallest tradable unit is Unless the Management Company decides otherwise, the initial issue price of these units amounts to AUD 100, CAD 100, CHF 100, CZK 2 000, EUR 100, GBP 100, HKD 1 000, JPY , PLN 500, RMB 1 000, RUB 3 500, SEK 700, SGD 100 or USD 100. I-A1 Units in classes with I-A1 in their name are exclusively reserved for institutional investors within the meaning of Article 174 (2) c) of the Law of Their smallest tradable unit is Unless the Management Company decides otherwise, the initial issue price of these units amounts to AUD 1 000, CAD 1 000, CHF 1 000, CZK , EUR 1 000, GBP 1 000, HKD , JPY , PLN 5 000, RMB , RUB , SEK 7 000, SGD or USD I-A2 Units in classes with I-A2 in their name are exclusively reserved for institutional investors within the meaning of Article 174 (2) c) of the Law of Their smallest tradable unit is Unless the Management Company decides otherwise, the initial issue price of these units amounts to AUD 100, CAD 100, CHF 100, CZK 2 000, EUR 100, GBP 100, HKD 1 000, JPY , PLN 500, RMB 3 500, RUB 1 000, SEK 700, SGD 100 or USD 100. The minimum subscription amount for these shares amounts to AUD 10 million, CAD 10 million, CHF 10 million, CZK 200 million, EUR 5 million, GBP 5 million, HKD 80 million, JPY 1'000 million, PLN 50 million, RMB 70 million, RUB 350 million, SEK 70 million, SGD 10 million or USD 10 million. Upon subscription (i) a minimum subscription must be made pursuant to the list above or (ii) be based on a written agreement of the institutional investor with UBS AG or with one its authorised counterparties for total assets managed by UBS or its portfolio in collective capital investments of UBS must be more than CHF 30 million (or the corresponding currency equivalent). I-A3 Units in classes with I-A3 in their name are exclusively reserved for institutional investors within the meaning of Article 174 (2) c) of the Law of Their smallest tradable unit is Unless the Management Company decides otherwise, the initial issue price of these units amounts to AUD 100, CAD 100, CHF 100, CZK 2 000, EUR 100, GBP 100, HKD 1 000, JPY , PLN 500, RMB 1 000, RUB 3 500, SEK 700, SGD 100 or USD 100. The minimum subscription amount for these shares amounts to AUD 30 million, CAD 30 million, CHF 30 million, CZK 600 million, EUR 20 million, GBP 20 million, HKD 240 million, JPY million, PLN 150 million, RMB 210 million, RUB million, SEK 210 million, SGD 30 million or USD 30 million. Upon subscription UBS (Lux) Strategy Fund 5

8 (i) a minimum subscription must be made pursuant to the list above or (ii) be based on a written agreement of the institutional investor with UBS AG or with one its authorised counterparties for total assets managed by UBS or its portfolio in collective capital investments of UBS must be more than CHF (or the corresponding currency equivalent). I-B Units in classes with I-B in their name are exclusively reserved for institutional investors within the meaning of Article 174 (2) c) of the Law of 2010 who have signed a written agreement on investing in one or more subfunds of this umbrella fund with UBS AG or one of its authorised counterparties. A fee covering the costs for Fund administration (comprising the costs of the Management Company, administration and Custodian Bank) is charged directly to the subfund. The costs for asset management and distribution are charged to investors under the aforementioned agreements. Their smallest tradable unit is Unless the Management Company decides otherwise, the initial issue price of these units amounts to AUD 100, CAD 100, CHF 100, CZK 2 000, EUR 100, GBP 100, HKD 1 000, JPY , PLN 500, RMB 1 000, RUB 3 500, SEK 700, SGD 100 or USD 100. I-X Units in classes with I-X in their name are exclusively reserved for institutional investors within the meaning of Article 174 (2) c) of the Law of 2010 who have signed a written agreement on investing in one or more subfunds of this umbrella fund with UBS AG or one of its authorised counterparties. The costs for asset management, Fund administration (comprising the costs of the Management Company, administration and Custodian Bank) and distribution are charged to investors under the aforementioned agreements. Their smallest tradable unit is Unless the Management Company decides otherwise, the initial issue price of these units amounts to AUD 100, CAD 100, CHF 100, CZK 2 000, EUR 100, GBP 100, HKD 1 000, JPY , PLN 500, RMB 1 000, RUB 3 500, SEK 700, SGD 100 or USD 100. U-X Units in classes with U-X in their name are exclusively reserved for institutional investors within the meaning of Article 174 (2) c) of the Law of 2010 who have signed a written agreement on investing in one or more subfunds of this umbrella fund with UBS AG or one of its authorised counterparties. The costs for asset management, Fund administration (comprising the costs of the Management Company, administration and Custodian Bank) and distribution are charged to investors under the aforementioned agreements. This unit class is exclusively geared towards financial products (i.e. fund of funds or other pooled structures in accordance with different legislation). Their smallest tradable unit is Unless the Management Company decides otherwise, the initial issue price of these units amounts to AUD , CAD , CHF , CZK , EUR , GBP , HKD , JPY 1 million, PLN , RMB , RUB , SEK , SGD or USD Additional characteristics: UKdist The aforementioned unit classes can be issued as those with UKdist in their name. In these cases, the Management Company intends to distribute a sum which corresponds to 100% of the reportable income within the meaning of the UK reporting fund rules when the unit classes are subject to the reporting fund rules. The Management Company does not intend to make available taxable values in other countries for this unit class, as these unit classes are intended for investors whose investment in the unit class is liable to tax in the UK. Currencies The unit classes may be denominated in AUD, CAD, CHF, CZK, EUR, GBP, HKD, JPY, PLN, RMB, RUB, SEK, SGD or USD. For unit classes issued in the currency of account of the respective subfund, the respective currency will not be included in the unit class name. The currency of account features in the name of the relevant subfund. hedged For unit classes with hedged in their name and denominated in a currency other than the subfund s currency of account, foreign exchange transactions and currency forwards are conducted in order to hedge the net asset value of the subfund, calculated in the currency of account, against the net asset values of the unit classes denominated in other currencies. Although it will not be possible to fully hedge the total net asset value of a unit class against currency fluctuations of the currency of account, the aim is to secure a currency hedge for the currency of account against the corresponding currency of the unit classes equivalent to between 90% and 110% of the net asset value. Changes in the value of the hedged sections of the portfolio and the volume of subscription and redemption requests for units not denominated in the currency of account may, however, result in the level of currency hedging temporarily surpassing the stated limits. The Management Company and Portfolio Manager will take all the necessary steps to bring the hedging to the aforementioned limits. UBS (Lux) Strategy Fund 6

9 RMB hedged Investors should note that the Renminbi (ISO 4217 currency code: CNY), the official currency of the People s Republic of China (the PRC ), is traded on two markets, one in Mainland China being onshore RMB (CNY), and one outside Mainland China being offshore RMB (CNH). Units in classes with RMB hedged in their name are units whose net asset value is calculated in offshore RMB (CNH). Onshore RMB (CNY) is not a freely convertible currency and it is subject to foreign exchange control policies of and repatriation restrictions imposed by the PRC government. Offshore RMB (CNH), on the other hand, may be traded freely against other currencies, particularly EUR, CHF and USD. This means the exchange rate between offshore RMB (CNH) and other currencies is determined on the basis of supply and demand relating to the respective currency pair. RMB convertibility between offshore RMB (CNH) and onshore RMB (CNY) is a managed currency process subject to foreign exchange control policies and repatriation restrictions imposed by the PRC government in coordination with offshore regulatory or governmental agencies (e.g. the Hong Kong Monetary Authority). Prior to investing in RMB classes, investors should bear in mind that the requirements relating to supervisory reporting and fund accounting of offshore RMB (CNH) are not clearly regulated. Furthermore, investors should be aware that offshore RMB (CNH) and onshore RMB (CNY) have different exchange rates against other currencies. The value of offshore RMB (CNH) could potentially differ significantly from that of onshore RMB (CNY) due to a number of factors including, without limitation, foreign exchange control policies and repatriation restrictions imposed by the PRC government from time to time as well as other external market forces. Any devaluation of offshore RMB (CNH) could adversely affect the value of investors investments in the RMB classes. Investors should therefore take care when calculating their investments and the ensuing returns from offshore RMB (CNH) into their target currency. Prior to investing in RMB classes, investors should also bear in mind that the availability and tradability of RMB classes, and the conditions under which they may be available or traded, depend to a large extent on the political and regulatory developments in the PRC. Thus, no guarantee can be given that offshore RMB (CNH) or the RMB classes will be offered and/or traded in future, nor can there be any guarantee as to the conditions under which offshore RMB (CNH) and/or RMB classes may be made available or traded. In particular, since the base currency of the relevant subfunds offering the RMB classes would be in a currency other than offshore RMB (CNH), the ability of the relevant subfund to make redemption payments in offshore RMB (CNH) would be subject to the subfund s ability to convert its base currency into offshore RMB (CNH) which may be restricted by the availability of offshore RMB (CNH) or other circumstances beyond the control of the Management Company. Potential investors should be aware of the risks of reinvestment, which could arise if the RMB class has to be liquidated early due to political and/or regulatory circumstances. This does not apply to the reinvestment risk due to liquidation of a unit class and/or the subfund in accordance with the section Liquidation and merger of the Fund and its subfunds or unit classes. acc For unit classes with -acc in their name, income is not distributed unless the Management Company decides otherwise. dist For unit classes with -dist in their name, income is distributed unless the Management Company decides otherwise. qdist Units in classes with -qdist in their name are distribution units with quarterly distributions. mdist Units in classes with -mdist in their name may make monthly distributions, excluding fees and expenses. They may also make distributions out of capital and realised capital gains. Distributions out of capital shall result in the reduction of an investor s original capital invested in the subfund. Also, any distributions from the income and/ or involving the capital and/or capital gains result in an immediate reduction of the net asset value per unit of the subfund. Investors in certain countries may be subject to higher tax rates on distributed capital than on any capital gains from the sale of Fund units. Some investors may therefore choose to invest in the accumulating (-acc) instead of the distributing (-dist, -mdist) unit classes. Investors may be taxed at a later point in time on income and capital arising on accumulating (-acc) unit classes compared to distributing (-dist) unit classes. Investors should seek their own tax advice. The management regulations give the Management Company the authority to establish different subfunds for the Fund as well as different unit classes with specific characteristics within these subfunds. The sales prospectus will be updated each time a new subfund or an additional unit class is launched. There is no limit on the size of the net assets, the number of units, number of subfunds or the duration of the Fund. UBS (Lux) Strategy Fund 7

10 The Fund forms an indivisible legal entity. With respect to the unitholders, each subfund is regarded as being separate from the others. The assets of a subfund can be used to offset only the liabilities which the subfund concerned has assumed. The acquisition of Fund units implies acceptance of the management regulations by the unitholder. The management regulations do not provide for a general meeting of the unitholders. The financial year of the Fund ends on the last day of January. Only the information contained in the sales prospectus and in one of the documents referred to therein shall be deemed to be valid. Information on whether a subfund of the Fund is listed on the Luxembourg Stock Exchange can be obtained from the Administrative Agent or the Luxembourg Stock Exchange website ( The issue and redemption of units of the Fund are subject to the regulations prevailing in the country concerned. The annual and semi-annual reports are available free of charge to unitholders at the registered office of the Management Company and the custodian bank. No subscription may be accepted on the basis of the financial reports. Subscriptions are accepted only on the basis of the current prospectus accompanied by the latest annual report and the latest semi-annual report if available. UBS (Lux) Strategy Fund 8

11 UBS (Lux) Strategy Fund Consolidated Statement of Net Assets EUR Assets Investments in securities, cost Investments in securities, unrealized appreciation (depreciation) Total investments in securities (Note 1) Cash at banks, deposits on demand and deposit accounts Other liquid assets (Margins) Receivable on securities sales (Note 1) Receivable on subscriptions Interest receivable on securities Interest receivable on liquid assets Receivable on dividends Other receivables Unrealized gain (loss) on financial futures (Note 1) Unrealized gain (loss) on forward foreign exchange contracts (Note 1) Unrealized gain (loss) on swaps (Note 1) Total Assets Liabilities Other short-term liabilities (Margins) Payable on securities purchases (Note 1) Payable on redemptions Provisions for flat fee (Note 2) Provisions for taxe d abonnement (Note 3) Total provisions Total Liabilities Net assets at the end of the period UBS (Lux) Strategy Fund The notes are an integral part of the financial statements. 9

12 Consolidated Statement of Operations EUR Income Interest on liquid assets Interest on securities Dividends Interest received on swaps (Note 1) Income on securities lending (Note 4) Other income (Note 1) Total income Expenses Interest paid on swaps (Note 1) Flat fee (Note 2) Taxe d abonnement (Note 3) Cost on securities lending (Note 4) Interest on cash liquidity and bank overdraft Total expenses Net income (loss) on investments Realized gain (loss) (Note 1) Realized gain (loss) on market-priced securities without options Realized gain (loss) on financial futures Realized gain (loss) on forward foreign exchange contracts Realized gain (loss) on swaps Realized result on subscriptions/redemptions (Note 5) Total realized gain (loss) on investments Realized gain (loss) on foreign exchange Total realized gain (loss) Net realized gain (loss) of the period Changes in unrealized appreciation (depreciation) (Note 1) Unrealized appreciation (depreciation) on market-priced securities without options Unrealized appreciation (depreciation) on yield-evaluated securities and money market instruments Unrealized appreciation (depreciation) on financial futures Unrealized appreciation (depreciation) on forward foreign exchange contracts Unrealized appreciation (depreciation) on swaps Total changes in unrealized appreciation (depreciation) Net increase (decrease) in net assets as a result of operations UBS (Lux) Strategy Fund 10 The notes are an integral part of the financial statements.

13 UBS (Lux) Strategy Fund Fixed Income (CHF) Most important figures ISIN Net assets in CHF Class P-acc LU Units outstanding Net asset value per unit in CHF Issue and redemption price per unit in CHF Class P-dist LU Units outstanding Net asset value per unit in CHF Issue and redemption price per unit in CHF See note 1 Structure of the Securities Portfolio Classification by Currency as a % of net assets CHF USD EUR JPY GBP 2.99 CAD 0.83 AUD 0.22 Total Classification by Instrument as a % of net assets Medium term notes, fixed rate Bonds, fixed rate Notes, fixed rate 7.58 Treasury notes, fixed rate 5.86 Investment certificates, open end 5.01 Medium term notes, floating rate 3.19 Bonds, floating rate 0.45 Notes, floating rate 0.16 Total UBS (Lux) Strategy Fund Fixed Income (CHF) The notes are an integral part of the financial statements. 11

14 Statement of Net Assets CHF Assets Investments in securities, cost Investments in securities, unrealized appreciation (depreciation) Total investments in securities (Note 1) Cash at banks, deposits on demand and deposit accounts Other liquid assets (Margins) Receivable on securities sales (Note 1) Receivable on subscriptions Interest receivable on securities Interest receivable on liquid assets Unrealized gain (loss) on financial futures (Note 1) Unrealized gain (loss) on forward foreign exchange contracts (Note 1) Total Assets Liabilities Other short-term liabilities (Margins) Payable on securities purchases (Note 1) Payable on redemptions Provisions for flat fee (Note 2) Provisions for taxe d abonnement (Note 3) Total provisions Total Liabilities Net assets at the end of the period Statement of Operations CHF Income Interest on liquid assets Interest on securities Interest received on swaps (Note 1) Income on securities lending (Note 4) Other income (Note 1) Total income Expenses Flat fee (Note 2) Taxe d abonnement (Note 3) Cost on securities lending (Note 4) Interest on cash liquidity and bank overdraft Total expenses Net income (loss) on investments Realized gain (loss) (Note 1) Realized gain (loss) on market-priced securities without options Realized gain (loss) on financial futures Realized gain (loss) on forward foreign exchange contracts Realized gain (loss) on swaps Realized result on subscriptions/redemptions (Note 5) Total realized gain (loss) on investments Realized gain (loss) on foreign exchange Total realized gain (loss) Net realized gain (loss) of the period Changes in unrealized appreciation (depreciation) (Note 1) Unrealized appreciation (depreciation) on market-priced securities without options Unrealized appreciation (depreciation) on financial futures Unrealized appreciation (depreciation) on forward foreign exchange contracts Unrealized appreciation (depreciation) on swaps Total changes in unrealized appreciation (depreciation) Net increase (decrease) in net assets as a result of operations UBS (Lux) Strategy Fund Fixed Income (CHF) 12 The notes are an integral part of the financial statements.

15 Statement of Changes in Net Assets CHF Net assets at the beginning of the period Subscriptions Redemptions Total net subscriptions (redemptions) Dividend paid Net income (loss) on investments Total realized gain (loss) Total changes in unrealized appreciation (depreciation) Net increase (decrease) in net assets as a result of operations Net assets at the end of the period Development of the outstanding units Class P-acc Number of units outstanding at the beginning of the period Number of units issued Number of units redeemed Number of units outstanding at the end of the period Class P-dist Number of units outstanding at the beginning of the period Number of units issued Number of units redeemed Number of units outstanding at the end of the period UBS (Lux) Strategy Fund Fixed Income (CHF) The notes are an integral part of the financial statements. 13

16 Statement of Investments in Securities and other Net Assets as of 31 July 2013 Description Quantity/ Valuation in CHF as a % Transferable securities and money market instruments listed on an official stock exchange Notes, fixed rate CHF CHF BANCO NACIONAL DE DESENV ECO&SOC % CHF ELECTRICITE DE FRANCE % CHF KOREA NATIONAL OIL CORP % CHF SB CAPITAL SA FOR SBERBANK LPN % CHF SLOVAKIA, REPUBLIC OF % Total CHF EUR EUR GOLDMAN SACHS GROUP INC % EUR KREDITANSTALT FUER WIEDERAUFBAU % EUR PROCTER & GAMBLE CO-REG-S % Total EUR GBP GBP EUROPEAN INVESTMENT BANK % Total GBP JPY JPY KREDITANSTALT FUER WIEDERAUFBAU % Total JPY USD USD BRITISH COLUMBIA, PROVINCE OF % USD CANADA, GOVERNMENT % USD CROATIA, REPUBLIC OF-REG-S % USD EUROPEAN INVESTMENT BANK % USD EUROPEAN INVESTMENT BANK % USD INTER-AMERICAN DEVELOPMENT BANK % USD INTL BK FOR RECONSTR & DEVT WORLD BANK % USD NATIONAL AUSTRALIA BANK LTD-REG-S % USD NORDIC INVESTMENT BANK % USD NRW.BANK-REG-S % USD OESTERREICHISCHE KONTROLLBANK AG % Total USD Total Notes, fixed rate Notes, floating rate EUR EUR AVIVA PLC-SUB %/FLR Total EUR Total Notes, floating rate Medium term notes, fixed rate AUD AUD HYPOTHEKENBANK FRANKFURT AG % Total AUD CAD CAD CAISSE D AMORTIS DE LA DETTE SOCIALE % Total CAD CHF CHF ABN AMRO BANK NV % CHF AGENCE FRANCAISE DE DEVELOPPEMENT SA % CHF ANZ NEW ZEALAND INT L LTD % CHF ASIF III LTD % CHF BANK OF AMERICA CORP % CHF BANK OF SCOTLAND % CHF BARCLAYS BANK PLC % CHF BAYERISCHE LANDESBANK % CHF BAYERISCHE LANDESBANK-SUB % CHF BAYERISCHE LANDESBANK-SUB % CHF BAYERISCHE LANDESBANK % CHF BELGELEC FINANCE SA % CHF BMW (UK) CAPITAL PLC % CHF BMW US CAPITAL LLC % CHF BNP PARIBAS HOME LOAN COVERED BONDS SFH % CHF BRADFORD & BINGLEY PLC % CHF BUNDESIMMOBILIEN GESELLSCHAFT MBH % CHF CAISSE DES DEPOTS ET CONSIGNATIONS % CHF CIE DE FINANCEMENT FONCIER % CHF CITIGROUP INC % CHF COMMONWEALTH BANK OF AUSTRALIA % CHF COMPAGNIE DE FINANCEMENT FONCIER % CHF COMPAGNIE DE FINANCEMENT FONCIER % CHF CORP ANDINA DE FOMENTO % CHF CORPORACION ANDINA DE FOMENTO % CHF CREDIT AGRICOLE COVERED BONDS % CHF CREDIT AGRICOLE SA LONDON % CHF DANSKE BANK AS % CHF DANSKE BANK AS % CHF DEPFA ACS BANK % UBS (Lux) Strategy Fund Fixed Income (CHF) 14 The notes are an integral part of the financial statements.

17 Description Quantity/ Valuation in CHF as a % CHF DEUTSCHE BAHN FINANCE BV % CHF DEUTSCHE TELEKOM AG % CHF DNB BOLIGKREDITT AS % CHF EDP FINANCE BV % CHF ENEL FINANCE INTERNATIONAL NV % CHF EUROPEAN INVESTMENT BANK % CHF GDF SUEZ % CHF GENERAL ELECTRIC CAPITAL CORP % CHF GLENCORE FINANCE EUROPE SA % CHF GLENCORE FINANCE EUROPE SA % CHF GOLDMAN SACHS GROUP INC % CHF HSBC BANK PLC % CHF HSBC FINANCE CORP % CHF HYPO ALPE-ADRIA-BANK INTERNATIONAL AG % CHF HYPO ALPE-ADRIA-BANK INTERNATIONAL AG % CHF HYPO ALPE-ADRIA-BANK INTERNATIONAL AG % CHF HYPO NOE GRUPPE BANK AG % CHF HYPO TIROL BANK AG % CHF ILE DE FRANCE % CHF ILE DE FRANCE % CHF INSTITUTO DE CREDITO OFICIAL % CHF INSTITUTO DE CREDITO OFICIAL % CHF INTER-AMERICAN DEVELOPMENT BANK % CHF ITALY, REPUBLIC OF % CHF JPMORGAN CHASE & CO % CHF KOREA FINANCE CORP % CHF KOREA GAS CORP % CHF LANDESBANK BADEN-WURTTEMBERG-SUB % CHF LANDESBANK HESSEN-THUERINGEN GZ % CHF LDKREDBK BADEN-WUERTTEMBERG FOERDERBK % CHF MADRID, COMUNIDAD DE % CHF METROPOLITAN LIFE GLOBAL FUNDING I % CHF MORGAN STANLEY % CHF MUNICIPALITY FINANCE PLC % CHF NATIONAL AUSTRALIA BANK LTD % CHF NEDERLANDSE WATERSCHAPSBANK NV % CHF NEDERLANDSE WATERSCHAPSBANK NV % CHF NEW YORK LIFE FUNDINGS % CHF NORDEA BANK AB % CHF NORDRHEIN-WESTFALEN, STATE OF % CHF NORGES STATSBANER AS % CHF NORGES STATSBANER AS % CHF NYKREDIT BANK A/S % CHF OESTERREICHISCHE KONTROLLBANK % CHF ORANGE SA % CHF PETROLEOS MEXICANOS % CHF PKO FINANCE AB LPN % CHF POLAND, REPUBLIC OF % CHF POLAND, REPUBLIC OF % CHF RABOBANK NEDERLAND NV % CHF RESEAU FERRE DE FRANCE SA % CHF SPI ELECTRICITY & GAS AUSTRALIA % CHF STATE BANK OF INDIA LTD % CHF SWEDBANK MORTGAGE AB % CHF TELSTRA CORP LTD % CHF UNICREDIT BANK (IRELAND) PLC 3.375% CHF VEB FINANCE PLC LPN % CHF VINCI SA % CHF WESTPAC BANKING CORP % Total CHF EUR EUR ABBEY NATIONAL TREASURY SERV PLC % EUR ABN AMRO BANK NV % EUR ALLIANZ FINANCE II BV % EUR BANCA MONTE DEI PASCHI DI SIENA SPA % EUR BANK OF IRELAND % EUR BAYERISCHE LANDESBANK % EUR BMW US CAPITAL LLC % EUR CARGILL INC % EUR COMMONWEALTH BANK OF AUSTRALIA % EUR COMPAGNIE DE FINANCEMENT FONCIER % EUR DENMARK, KINGDOM OF % EUR EUROPEAN FINANCIAL STABILITY FAC-REG-S % EUR EUROPEAN FINANCIAL STABILITY FAC-REG-S % EUR INSTITUTO DE CREDITO OFICIAL % EUR INTESA SANPAOLO SPA % EUR INTL BANK FOR RECONSTRUCTION & DEVT % EUR ITALY, REPUBLIC OF % EUR KOREA DEVELOPMENT BANK-REG-S % EUR NEDERLANDSE WATERSCHAPSBANK NV % EUR NORDEA BANK FINLAND PLC % EUR OEBB-INFRASTRUKTUR AG % EUR POLAND, REPUBLIC OF-REG-S % EUR SWEDISH COVERED BOND CORP % EUR TELEFONICA EMISIONES SAU % EUR UBS AG LONDON % EUR UBS AG LONDON BRANCH % EUR WACHOVIA CORP % Total EUR GBP GBP GENERAL ELECTRIC CAPITAL CORP % GBP KREDITANSTALT FUER WIEDERAUFBAU % GBP OESTERREICHISCHE POSTSPARKASSE BAWAG AG % Total GBP UBS (Lux) Strategy Fund Fixed Income (CHF) The notes are an integral part of the financial statements. 15

18 Description Quantity/ Valuation in CHF as a % JPY JPY BANK NEDERLANDSE GEMEENTEN NV % JPY CAISSE FRANCAISE DE FINANCEMENT LOCAL % JPY DEUTSCHE BAHN FINANCE BV % JPY EUROPEAN INVESTMENT BANK-REG-S % Total JPY USD USD COUNCIL OF EUROPE DEVELOPMENT BANK % USD EUROFIMA EUROPEAN RAILROADMAT FIN CO % USD INTL BK FOR RECONSTR & DEVT WORLD BANK % USD KOMMUNINVEST I SVERIGE AB-REG-S % Total USD Total Medium term notes, fixed rate Medium term notes, floating rate CHF CHF BANK OF AMERICA CORP %/3M LIBOR+95BP CHF BANQUE FEDERATIVE DU CREDIT MUTUEL 3M LIBOR+65BP CHF BANQUE INTL A LUXBG-SUB 2.750%/3M LIBOR+57.5BP CHF BARCLAYS BANK PLC 3M LIBOR+70BP CHF CITIGROUP INC-SUB 2.750%/3M LIBOR+120BP CHF ROYAL BANK OF SCOTLAND PLC/THE-SUB 9.375%/VAR Total CHF USD USD DEUTSCHE BANK AG-SUB 3M LIBOR+30BP Total USD Total Medium term notes, floating rate Bonds, fixed rate CAD CAD CANADA, GOVERNMENT % Total CAD CHF CHF ASIAN DEVELOPMENT BANK % CHF BERLIN, STATE OF % CHF CITIBANK CREDIT CARD ISSUANCE TRUST % CHF COMPAGNIE DE FINANCEMENT FONCIER % CHF EBN NV % CHF ERSTE EUR PFANDBRIEF-& KOMMUNALBANK AG % CHF EUROPEAN INVESTMENT BANK % CHF EUROPEAN INVESTMENT BANK % CHF GENERAL ELECTRIC CAPITAL CORP % CHF GENERAL ELECTRIC CAPITAL CORP % CHF GOLDMAN SACHS GROUP INC % CHF HYPO NOE GRUPPE BANK AG % CHF KOREA GAS CORP % CHF KREDITANSTALT FUER WIEDERAUFBAU % CHF LGT FINANCE LTD % CHF OESTERREICHISCHE KONTROLLBANK AG % CHF SB CAPITAL SA FOR SBERBANK LPN % CHF SLOVAKIA, REPUBLIC OF % CHF TOTAL CAPITAL % CHF UBS JERSEY BRANCH-SUB % CHF VIENNA, CITY OF % Total CHF EUR EUR DEUTSCHE POSTBANK AG % EUR FINLAND, REPUBLIC OF % EUR FRANCE, REPUBLIC OF-OAT % EUR FRANCE, REPUBLIC OF-OAT % EUR GERMANY, REPUBLIC OF % EUR GERMANY, REPUBLIC OF % EUR GERMANY, REPUBLIC OF % EUR GERMANY, REPUBLIC OF % EUR GERMANY, REPUBLIC OF % EUR HYPOTHEKENBANK FRANKFURT AG % EUR INTESA SANPAOLO SPA-REG-S % EUR ITALY, REPUBLIC OF-BPT % EUR ITALY, REPUBLIC OF-BTP % EUR KREDITANSTALT FUER WIEDERAUFBAU % EUR NETHERLANDS, KINGDOM OF THE % EUR NORDEA BANK FINLAND PLC % EUR NORDRHEIN-WESTFALEN, STATE OF % EUR WL-BANK WESTF LANDSCHAFT BODENKB % Total EUR GBP GBP EUROPEAN INVESTMENT BANK % GBP LANDESKREDITBANK B-WUERTT FOERDERBANK % GBP UNITED KINGDOM OF GREAT BRITAIN & N IRL % GBP UNITED KINGDOM OF GREAT BRITAIN & N IRL % GBP UNITED KINGDOM OF GREAT BRITAIN & N IRL % Total GBP JPY JPY DEVELOPMENT BANK OF JAPAN-REG-S % JPY JAPAN % UBS (Lux) Strategy Fund Fixed Income (CHF) 16 The notes are an integral part of the financial statements.