Alternative Portfolio AG

Transcription

1 August 2014 AP 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 AP Alternative Portfolio AG is an investment company based in Zurich, Switzerland. With their investment, shareholders have access to a diversified portfolio of alternative investments, whereas no new private equity s are being made since mid 2013 and liquidity is being returned to shareholders. Key benefits Focus on private equity funds with hedge fund components seeking "value added" to a core, diversified private equity portfolio Easy accessible structure geared towards the qualified investor Fund performance (%) - last five calendar 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 AP Alternative Portfolio AG returns represent the profits or losses of the Fund net: (i) 1.00% annualised management fee, (ii) between 0% and 25.00% 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 table is limited to prior monthly performance for the five preceding calendar years. The annualized returns shown in the above table cover the prior 12, 36, 60 months and since inception time periods. The full monthly track record is available 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 USD Fund assets (mln)* USD 243 * As of 1 September 2014 Key information (1) Investment Manager UBS Fund Services (Cayman) Business Unit Alternative Funds Advisory omicile 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 25.00% (1) Please see the fund's offering memorandum for specific details (2) Subject to fund domicile and local guidelines / minimum investment one share Fund codes ISIN CH Valor no The chart below illustrates the performances of AP Alternative Portfolio AG and several indices. All indexed to 1,000 at the track record inception of 1 November 2000 Cumulative performance Nov-01 Apr-03 Sep-04 Feb-06 Jul-07 Dec-08 May-10 Oct-11 Mar-13 Aug-14 Alternative Portfolio AG AP PE Portfolio Gross Each index shown as if the index was at 1,000 as of 1 November The chart displayed above is intended solely 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 applicable. AP Alternative Portfolio AG AP HF Portfolio Gross AP PE Portfolio Gross MSCI World (TR, Gross) MTD return 0.90% 1.17% 1.24% 2.24% YTD return 10.31% 5.40% 14.48% 7.20% Annualized return 5.92% 5.41% 7.60% 4.77% 12 month rolling return 17.58% 12.05% 23.23% 21.74% Annualized volatility 4.81% 5.66% 6.73% 16.05% 12 month rolling volatility 2.62% 3.64% 2.91% 7.13% Sharpe ratio Sortino ratio Correlation coefficient Highest 1 month loss -4.69% -7.14% -6.00% % Maximum draw-down % % % % Positive months 68.07% 62.65% 67.47% 60.84% Source: Alternative Funds Advisory, A&Q, Citigroup, Bloomberg, HFRI AP HF Portfolio Gross MSCI World (TR, Gross) Product commentary Private Equity: The PE portfolio was able to post another positive month with a performance of 1.24%. The portfolio also continued to be very active on the capital calls and distribution side while the monthly cash flow position continues to be highly positive. Most active funds on the investment side have been SBCVC III (Chinese venture and growth), NEA 14 (US venture and growth), Advent VII (US and European buyouts) and Hony Capital V (Chinese growth and special situations). Most active funds on the distribution side have been Apax Europe VI and VII (a couple of buyout realizations in US and UK), SBCVC Fund III (Chinese growth proceeds), TA Atlantic and Pacific VI (US and Australian growth deals exit proceeds). Hedge Fund: August has been a strong month for most hedge fund strategies. CTA managers experienced an exceptional month with positive contribution from all markets except commodities. Also Equity Hedged managers performed well with support from attractive earnings reports and better than expected economic news. There has been a modest performance contribution from Credit managers despite wider spreads especially in High Yield markets. Relative Value managers ended the month slightly down mostly due to losses on interest rate hedges in Fixed Income Relative Value and credit deterioration in Capital Structure deals.

2 Aggregate portfolio profile as of 1 September 2014 Strategy allocation lookthrough (%) Geographic allocation lookthrough (%) Private Equity Cash & Other Equity Hedged Credit/Income Trading Relative Value 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 multiple 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 Relative Value Trading Credit/Income Equity Hedged Multi-Strategy Trading Opport./Macro 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 profile as of 1 September 2014 Strategy allocation lookthrough HF type exposure (%) Geographic allocation lookthrough HF type exposure (%) Equity Hedged Trading Credit/Income Relative Value Other US/Canada Europe/UK Developed Asia ex-japan LatAm EEMEA Japan Other 24

3 Private Equity portfolio profile as of 1 September 2014 Actual stage exposure (%) 5 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 Telecommunications Other Sector 16 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

4 Fund name Commitment Open Market Value %Allocation Active EQT VI Equistone European Fund IV Francisco Partners III 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 September 2014 Fund name %Allocation Strategy % MTD % YTD Cello Fixed Income Fund A1b 1.49 Hedge Fund Tilden Park Investment Fund A Restricted 1.39 Hedge Fund Senator H 1.37 Hedge Fund NWI Explorer Global Fund AB 1.19 Hedge Fund Man AHL Evolution E 1.15 Hedge Fund TIG Securitized Asset Fund A Hedge Fund Jana Nirvana Offshore Fund A 0.89 Hedge Fund D.E. Shaw Oculus Hedge Fund York European A 0.84 Hedge Fund Legg Mason Western Asset Macro Opportunities Bond P 0.84 Hedge Fund * GAM Talentum Enhanced Europe Long Short Fund B 0.80 Hedge Fund Pelham Long Short Fund A 0.71 Hedge Fund CSP II Distressed Fund L 0.62 Hedge Fund * Voleon Investors Fund A 0.53 Hedge Fund Millennium FF 0.52 Hedge Fund Millennium R 0.35 Hedge Fund Pershing Square International E 0.28 Hedge Fund D.E. Shaw Composite SP 0.15 Hedge Fund Cheyne K USD 0.15 Hedge Fund Millennium PP 0.12 Hedge Fund CSP I Credit Opportunistic Fund I 0.12 Hedge Fund QVT SLV Offshore A 0.12 Hedge Fund Polygon Recovery C 0.10 Hedge Fund Highland Crusader II AP 0.09 Hedge Fund Capital International E 0.04 Hedge Fund * Vicis A 0.03 Hedge Fund Drawbridge S (side pocket) 0.03 Hedge Fund Drawbridge SPV (side pocket) 0.01 Hedge Fund Weavering Fixed Income Fund USD 0.00 Hedge Fund * OZ Overseas II H Prime (side pocket) 0.00 Hedge Fund Total Hedge Fund UBS Private Equity Global II 3.21 Private Equity * Nordic Capital VII 2.82 Private Equity * Navis Asia Fund V 2.80 Private Equity * Bain Capital X 2.57 Private Equity * Warburg Pincus Private Equity X 2.57 Private Equity * TA Atlantic and Pacific VI 2.51 Private Equity * VenCap 10 USD 2.45 Private Equity 7.24* Apax Europe VII 2.06 Private Equity 14.31* Adveq Technology III 2.04 Private Equity * Nexus India Capital Fund II 1.97 Private Equity 66.48* Activa Capital Fund II 1.79 Private Equity 2.38* Madison Dearborn Capital Partners V 1.77 Private Equity 18.60* SBCVC Fund III 1.72 Private Equity 44.38* Apax Europe VI 1.68 Private Equity 46.73* MHR Institutional Associates III 1.60 Private Equity Adveq Asia I 1.52 Private Equity * Silver Lake Partners III 1.45 Private Equity * Vestar Capital Partners V 1.43 Private Equity 4.68* Adams Street V 1.41 Private Equity 43.80* Advent International GPE VI 1.41 Private Equity 18.37* HarbourVest International IV 1.28 Private Equity * Sun Capital V 1.26 Private Equity * Gores Capital Partners II 1.20 Private Equity * Warburg Pincus Private Equity VIII 1.16 Private Equity * Investindustrial IV 1.15 Private Equity * EQT V 1.05 Private Equity * Providence Equity Partners VI 0.95 Private Equity * Adams Street US Partnership Private Equity 7.67* GAM Pomona II 0.90 Private Equity 4.27* VenCap 10 EUR 0.89 Private Equity 9.62* Brinson Non-U.S. Partnership Private Equity * Equistone European Fund IV 0.85 Private Equity * Hony Capital Fund Private Equity * Adams Street US Partnership Private Equity 10.31* * Return is not over full period Cash and other includes other assets net of liabilities. The performance shown are on the lead 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 Alternative Portfolio AG. The performances of leveraged 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 Permira Europe IV 0.78 Private Equity * Francisco Partners III 0.78 Private Equity * Charterhouse Capital Partners VIII 0.74 Private Equity * Battery Ventures IX 0.74 Private Equity * Brinson Primary Partnership Private Equity 5.78* VantagePoint Venture Partners Private Equity * Affinity Asia Pacific Fund III 0.70 Private Equity * NEA Private Equity 17.24* NewMargin Growth Fund 0.60 Private Equity * ChrysCapital V 0.59 Private Equity 95.31* Gores Capital Partners III 0.59 Private Equity * Atlas Venture VII 0.57 Private Equity * Rutland Fund II 0.57 Private Equity * Investindustrial III 0.54 Private Equity * SBCVC Fund IV 0.54 Private Equity 18.93* Accel Growth Fund II 0.54 Private Equity * Advent International GPE VII 0.53 Private Equity 23.43* Advent International GPE V 0.52 Private Equity 22.00* Madison Dearborn Capital Partners VI 0.52 Private Equity 37.85* Bain Capital IX 0.50 Private Equity * Adams Street Global Opportunities Secondary Fund 0.50 Private Equity 2.37* Oaktree European Principal Fund III 0.48 Private Equity 9.26* BC European Capital IX 0.47 Private Equity 1.08* Summit Partners Growth Equity Fund VIII 0.46 Private Equity * Adams Street Non-U.S. Partnership Private Equity 12.18* IPV Capital (Infotech Pacific Ventures) 0.45 Private Equity 50.52* Bayside Fund II 0.45 Private Equity * EQT VI 0.45 Private Equity * Adveq Technology V 0.44 Private Equity * Brinson Primary Partnership Private Equity 11.09* EQT IV 0.41 Private Equity * Abingworth Bioventures V 0.40 Private Equity * Summit Partners Private Equity Fund VII 0.36 Private Equity * Brinson Primary Partnership Private Equity 9.48* NEA Private Equity -0.92* Brinson Non-U.S. Partnership Private Equity * IPV Capital II (Infotech Pacific Ventures II) 0.29 Private Equity 32.11* Accel XI 0.29 Private Equity * Harvest Partners VI 0.28 Private Equity * Brinson Primary Partnership Private Equity 10.26* Institutional Venture Partners XIV 0.25 Private Equity * Hony Capital Fund V L.P Private Equity * Brinson Non-U.S. Partnership Private Equity * Adams Street 2006 Direct Fund 0.22 Private Equity 32.17* USVP X 0.22 Private Equity 35.90* Apax VIII 0.22 Private Equity 12.62* Warburg Pincus Private Equity IX 0.18 Private Equity * Charterhouse Capital Partners VII 0.17 Private Equity * Nexus Ventures III 0.16 Private Equity 19.86* Brinson Secondary Partnership Private Equity 5.71* TA Atlantic and Pacific V 0.12 Private Equity * Silver Lake Partners II 0.11 Private Equity * Investindustrial V 0.09 Private Equity * Global Timber Investors Private Equity * Mayfield XIV 0.07 Private Equity -4.64* Brinson Secondary Non-U.S. Partnership Private Equity * Brinson Non-U.S. Partnership Private Equity * Brinson Secondary Partnership Private Equity 4.39* Brinson Secondary Non-U.S. Partnership Private Equity * Brinson Secondary Non-U.S. Partnership Private Equity * Montagu III 0.01 Private Equity * Total Private Equity Cash & Other USD 6.45 Cash Total Cash 6.45 * Return is not over full period Cash and other includes other assets net of liabilities. The performance shown are on the lead 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 Alternative Portfolio AG. The performances of leveraged 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 leverage, short sales, 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 complex 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 select and allocate the Fund's assets among such managers on an ongoing basis. The Fund's portfolio may be highly leveraged 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 possible that the Fund will be unable to provide tax information to investors without significant delays and investors may need to seek extensions on the time to file their tax returns at the federal, state and local levels. 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 relevant non-u.s. governmental agency. Investors should consider the Fund as a supplement 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 relevant annualized return less 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 relevant 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 relevant annualized return less 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. This document has been issued by AP Alternative Portfolio AG, a company registered under the Laws of Switzerland. 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 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. This document may not be reproduced, redistributed or republished for any purpose without the written permission of AP Alternative Portfolio 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. AP Alternative Portfolio AG All rights reserved.