Annual Report 2013/2014

Transcription

1 ab Asset management UBS Funds Annual Report 2013/2014 Investment Company under Luxembourg Law (SICAV) R.C.S. Luxembourg N B Audited annual report as of 31 July 2014 Active Allocation Portfolio Aggressive Growth 5 Active Allocation Portfolio Defensive Income 6 Active Allocation Portfolio Moderate Balanced 1 Key Multi-Manager Hedge Fund Balanced CHF 2 Opportunity Portfolio Equity 3 Yield 7 Fixed Income 4 Yield CHF 8 1 formerly Balanced 2 formerly Balanced CH 3 formerly Equity 4 formerly Fixed Income 5 formerly Growth 6 formerly Income 7 formerly Yield 8 formerly Yield CH

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3 Audited annual report as of 31 July 2014 Table of contents Page ISIN Management and Administration 2 Features of the Company 3 Portfolio Manager Report 6 Audit report 7 9 Active Allocation Portfolio Aggressive 10 BI/ LU F-acc/ LU Active Allocation Portfolio Defensive 12 BI/ LU F-acc/ LU Active Allocation Portfolio Moderate 14 BI/ LU F-acc/ LU Balanced 1 16 F-acc/ LU K-acc/ LU Balanced CHF 2 20 F-acc/ LU Equity 3 24 F-acc/ LU Fixed Income 4 28 F-acc/ LU Growth 5 32 F-acc/ LU Income 6 36 F-acc/ LU Key Multi-Manager Hedge Fund 40 F-acc / LU F-acc CHF/ LU F-acc USD/ LU Opportunity Portfolio 44 F-acc/ LU Yield 7 46 F-acc/ LU Yield CHF 8 50 F-acc/ LU Notes to the Financial Statements 54 Global Exposure (unaudited) 61 1 formerly Balanced 2 formerly Balanced CH 3 formerly Equity 4 formerly Fixed Income 5 formerly Growth 6 formerly Income 7 formerly Yield 8 formerly Yield CH Sales restrictions Shares of this Company may not be offered, sold or distributed within the United States of America. 1

4 Management and Administration Registered Office 33A, avenue J.F. Kennedy, L-1855 Luxembourg R.C.S. Luxembourg N B Administrative Agent UBS Fund Services (Luxembourg) S.A., 33A, avenue J.F. Kennedy, L-1855 Luxembourg Board of Directors André Müller-Wegner, Chairman since 29 August 2013, previously Member Executive Director, UBS AG, Basel and Zurich Andreas Aebersold, Member Executive Director, UBS AG, Basel and Zurich Christian Schön, Member Executive Director, UBS (Luxembourg) S.A., Luxembourg Management Company (since 17 April 2014) Auditor of the Company and of the Management Company PricewaterhouseCoopers, Société coopérative 2, rue Gerhard Mercator, B.P. 1443, L-1014 Luxembourg The sales prospectus, the KIID, the articles of association of the Company, the annual and semi-annual reports as well as the portfolio movements of the Company mentioned in this publication are available free of charge at the sales agencies and at the registered office of the Company. UBS Third Party Management Company S.A. 33A, avenue J.F. Kennedy, L-1855 Luxembourg R.C.S. Luxembourg N B Portfolio Manager UBS AG, Switzerland Custodian Bank, Main Paying Agent and Sales Agency UBS (Luxembourg) S.A., 33A, avenue J.F. Kennedy, L-1855 Luxembourg 2

5 Features of the Company (hereinafter called the Company ) offers investors a range of different subfunds ( umbrella construction ) which invest in accordance with the investment policies described in the sales prospectus. The sales prospectus, which contains specific details on each subfund, will be updated on the inception of each new subfund. The Company was incorporated on 10 January 2008 as an open-end investment fund in the legal form of a Société d Investissement à Capital Variable (SICAV) in accordance with Part II Law of The Company is entered under no. B in the Luxembourg Commercial Register. The Company was converted from a UCI subject to Part II of the Law of 2010 to a UCI subject to Part I of the Law of 2010 with effect as of 17 April The Company is authorised under Part I of the Law of 2010, as amended. The Articles of Incorporation were published in the Mémorial, Recueil des Sociétés et Associations (hereinafter called Mémorial ), on 16 February Each amendment to the Articles of Incorporation shall be published in the Mémorial, in a Luxembourg daily newspaper and, if necessary, in the official publications specified for the respective countries in which shares of the Company are sold. Such amendments become legally binding in respect of all shareholders subsequent to their approval by the general meeting of shareholders. As at 31 July 2014, the following subfunds are active: Currency of account Balanced 1 Balanced CHF 2 CHF Equity 3 Fixed Income 4 Growth 5 Income 6 Key Multi-Manager Hedge Fund Yield 7 Yield CHF 8 CHF 1 formerly Balanced 2 formerly Balanced CH 3 formerly Equity 4 formerly Fixed Income 5 formerly Growth 6 formerly Income 7 formerly Yield 8 formerly Yield CH Various classes may be offered for the subfunds. Information on which share classes are available for which subfund can be obtained from the Administrative Agent. F Class F shares are reserved for persons that have entered into a written discretionary management agreement with UBS AG, Basel and Zurich, or its branches and subsidiaries ( UBS ) or by UBS sponsored funds of funds. No distributor is appointed for F classes. Class F shares held by persons no longer bound by the terms of a written discretionary management agreement with UBS or by UBS sponsored funds of funds will be compulsorily redeemed at their then applicable net asset value, unless the relevant holder requests their conversion into Class P shares, such request to be satisfied in the Company s and/or the Management Company s sole and entire discretion. In respect of Key Multi-Manager Hedge Fund, class F shares will be reserved for subscription exclusively by institutional investors. K Class K shares are reserved for persons that (i) have entered into a written discretionary management agreement with UBS and that (ii) are in a particular client segment. Class Kshares held by persons no longer bound by the terms of a written discretionary management agreement with UBS will be compulsorily redeemed at their then applicable net asset value, unless the relevant holder requests their conversion into Class P shares, such request to be satisfied in the Company s and/or the Management Company s sole and entire discretion. No distributor is appointed for K classes. The K class is issued by the subfund Balanced only. V Class V shares are reserved for persons that have entered into a written advisory agreement with UBS. Class V shares held by persons no longer bound by the terms of a written advisory management agreement with UBS AG, Basel and Zurich, or its branches and subsidiaries will be compulsorily redeemed at their then applicable net asset value, unless the relevant holder requests their conversion into Class P shares, such request to be satisfied in the Company s and/or the Management Company s sole and entire discretion. 3

6 X Class X shares are exclusively reserved for institutional investors who have entered into a written agreement on investing in one or more subfunds of the Company with UBS AG or with one of its authorised counterparties. The maximum flat fee in relation to class X shares does not comprise fees payable for portfolio management and distribution, which may be charged directly to investors under the aforementioned agreements. Class X shares held by persons no longer bound by the terms of a written agreement with UBS AG or with one of its authorised counterparties will be compulsorily redeemed at their then applicable net asset value in the Company s and/or the Management Company s sole and entire discretion or converted into any other Class upon request by the relevant holder. Any conversion request will be satisfied in the Company s and/or the Management Company s sole and entire discretion. P Class P shares are available to all investors. acc For share classes with -acc in their name, income is not distributed unless the Company decides otherwise. dist For share classes with -dist in their name, income is distributed unless the Company decides otherwise. Currency Each of the above share class may be denominated in the following reference currencies: CAD, CHF,, GBP, SGD, USD. For share classes issued in the currency of account of the respective subfund, the respective currency will not be included in the share class name. Hedging Each of the above share class denominated in a currency other than the relevant subfund s currency of account may also be hedged, in which case, the relevant share class will include a reference to hedged in its name. In relation to hedged share classes, foreign exchange transactions and currency forwards are conducted in order to hedge the net asset value of the subfund, calculated in the subfund s currency of account, against the net asset values of the share classes denominated in other currencies. Although it will not be possible to fully hedge the total net asset value of a share 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 share 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 shares 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 back within the aforementioned limits. UKdist Each of the above share class may also include a reference to UKdist in its name. In respect of each such share class which is labelled UKdist, it is intended that a sum corresponding to 100% of the reportable income within the meaning of the UK reporting fund rules be distributed to the relevant shareholders when the share classes are subject to the reporting fund rules. The Company does not intend to make available taxable values in other countries for any such share class, and any share class labelled UKdist is exclusively intended for investors whose investment in the share class is liable to tax in the UK. The sum of the subfunds net assets forms the total net assets of the Company, which at any time correspond to the share capital of the Company and consist of fully paid in and non-par-value shares (the shares ). At general meetings, the shareholder has the right to one vote per whole share held, irrespective of the difference in value of shares in the respective subfund. Shares of a particular subfund or class carry the right of one vote per whole share held when voting at meetings affecting this subfund or class. The Company is a single legal entity. For the purpose of the relations as between the shareholders, each subfund is deemed to be a separate entity, separate from the others. The assets of a subfund are exclusively available to satisfy the requests of that subfund and the right of creditors whose claims have arisen in connection with that subfund. The Board of Directors of the Company is empowered to establish new subfunds and/or to liquidate existing ones at any time or to establish various share classes with specific characteristics within these subfunds. The current sales prospectus shall be updated following the establishing of a new subfund or new share class. The Company is unlimited with regard to duration and total assets. 4

7 The financial year of the Company ends on 31 July. The ordinary general meeting takes place annually on 31 January at 11 a.m. at the registered office of the Company. If such a day does not fall on a business day in Luxembourg, the ordinary general meeting must take place on the next following working day. The shares of the subfunds of the Company are not listed on the Luxembourg Stock Exchange. The issue and redemption of shares of the Company are subject to the regulations prevailing in the concerned country of distribution. Only the information contained in the sales prospectus and in one of the documents referred to therein shall be deemed to be valid. The annual and semi-annual reports are available to shareholders at the registered office of the Company and of 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. The figures stated in the report are historical and not necessarily indicative of future performance. 5

8 Portfolio Manager Report Investors appetite for risky assets continued in All major developed equity markets delivered solid returns. Japan returned to the top league table on the back of decisive policy measures, the US did well with solid economic growth and expansionary monetary policy, and Europe benefited from a recovery from its recession. High grade bond markets suffered from a possible abandoning of ultra-expansionary monetary policy, while credit spreads profited from increased risk appetite. Emerging markets were unable to match the economic and financial market performance of developed countries. The stalling global economic growth negatively impacted prices for commodities, which fell for the third year in a row. In the US the main market drivers were anticipated policy actions. When the Federal Reserve indicated in May that it might start to taper its massive quantitative easing (QE) program, equity markets retreated, credit spreads widened and government yields worldwide increased sharply. However, in the autumn investors regained confidence as QE was maintained at its same level and the debt ceiling was again temporarily increased. Furthermore, strong economic growth supported company earnings and stock market performance. The Eurozone has started to recover from the sovereign debt crisis and is emerging from recession after six quarters of falling economic output. However, the dispersion among member countries remained large. Growth was strongest in the core countries, such as Germany, while the pace of contraction in the periphery slowed down considerably. The accommodative stance of the European Central Bank and its dovish forward guidance supported confidence in financial markets. Despite some political instability in peripheral Eurozone countries, German sovereign credit spreads narrowed significantly over the year. Markets had a good start to the year 2014 based on broad support from all asset classes. Fixed income instruments advanced on the back of lower yields and narrower credit spreads. Equity markets had a choppy start to the year but recovered after investors risk appetite returned. Slower growth prospectus in China, emerging market currency turbulence and softer US economic data resulted in a setback in equities in January. This reversed in the following months on the back of solid corporate earnings and a more robust US labor market. As of early June, all major equity markets were in positive territory. Japanese equities lagged other major markets after strong outperformance in 2013 due to doubts on the progress of structural reforms in Japan. The performance of emerging market equities was quite volatile due to uncertainty regarding the outlook in China and tensions between Russia and Ukraine. Against consensus expectations of a significant rise in long-term interest rates, major government bond yields declined during the first half of the year. A begin inflation environment, accommodative monetary policies in the US and Europe as well as narrowing credit spreads supported fixed income markets. Emerging market debt performed better based on improved sentiment and the resulting lower risk premium. 6

9 Audit report To the Shareholders of We have audited the accompanying financial statements of and of each of its subfunds, which comprise the Statement of Net Assets and the Statement of Investments in Securities and other Net Assets as at 31 July 2014 and the Statement of Operations and the Statement of Changes in Net Assets for the year then ended, and a summary of significant accounting policies and other explanatory notes to the financial statements. Responsibility of the Board of Directors of the SICAV for the financial statements The Board of Directors of the SICAV is responsible for the preparation and fair presentation of these financial statements in accordance with Luxembourg legal and regulatory requirements relating to the preparation of the financial statements and for such internal control as the Board of Directors of the SICAV determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Responsibility of the Réviseur d entreprises agréé Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing as adopted for Luxembourg by the Commission de Surveillance du Secteur Financier. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the judgment of the Réviseur d entreprises agréé, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the Réviseur d entreprises agréé considers internal control relevant to the entity s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board of Directors of the SICAV, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. PricewaterhouseCoopers, Société coopérative, 2, rue Gerhard Mercator, B.P. 1443, L-1014 Luxembourg T: , F: , Cabinet de révision agréé. Expert-comptable (autorisation gouvernementale n ) R.C.S. Luxembourg B TVA LU

10 } pwe apinion In our opinion, the financial statements give a true and fair view of the financial oosition of and of each of its subfunds as of 31 July 2014, and of the results of their operations and changes in their net assets for the year then ended in accordance with Luxembourg legal and regulatory requirements relating to the preparation of the financial statements. Other matters Supplementary information included in the annual report has been reviewed in the context of our mandate but has not been subject to specific audit procedures carried out in accordance with the standards described above. Consequently, we express no opinion on such information. However, we have no observation to make concerning such information in the context of the financial statements taken as a whole. Luxembourg, 28 November 2014 PricewaterhouseCoopers, 5oci6t6 coop6ratrve Represented by Val6rie Piastrelli

11 Consolidated Statement of Net Assets 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 Receivable on securities sales (Note 1) Receivable on subscriptions Interest receivable on liquid assets Receivable on dividends Other receivables Unrealized gain (loss) on forward foreign exchange contracts (Note 1) Total Assets Liabilities Bank overdraft Interest payable on bank overdraft 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 financial year Consolidated Statement of Operations Income Interest on liquid assets Dividends Other income Total income Expenses Flat fee (Note 2) Taxe d abonnement (Note 3) Interest on bank overdraft Other expenses 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 forward foreign exchange contracts Realized result on subscriptions/redemptions (Note 4) Total realized gain (loss) on investments Realized gain (loss) on foreign exchange Total realized gain (loss) Net realized gain (loss) of the financial year Changes in unrealized appreciation (depreciation) (Note 1) Unrealized appreciation (depreciation) on market-priced securities without options Unrealized appreciation (depreciation) on forward foreign exchange contracts Total changes in unrealized appreciation (depreciation) Net increase (decrease) in net assets as a result of operations The notes are an integral part of the financial statements. 9

12 Active Allocation Portfolio Aggressive Most important figures ISIN Net assets in Class BI 1 LU Shares outstanding Net asset value per share in Issue and redemption price per share in Class F-acc* LU Shares outstanding Net asset value per share in Issue and redemption price per share in The share class BI was in circulation until See note 1 * See note 9 Structure of the Securities Portfolio As all shares of Active Allocation Portfolio Aggressive have been redeemed as at 31 October 2013, there is no securities portfolio or securities portfolio structure at the end of the reporting period (see note 7). Active Allocation Portfolio Aggressive 10 The notes are an integral part of the financial statements.

13 Statement of Operations Income Other income Total income Expenses Flat fee (Note 2) Taxe d abonnement (Note 3) Interest on bank overdraft Other expenses 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 forward foreign exchange contracts Realized result on subscriptions/redemptions (Note 4) Total realized gain (loss) on investments Realized gain (loss) on foreign exchange Total realized gain (loss) Net realized gain (loss) of the financial year Changes in unrealized appreciation (depreciation) (Note 1) Unrealized appreciation (depreciation) on market-priced securities without options Unrealized appreciation (depreciation) on forward foreign exchange contracts Total changes in unrealized appreciation (depreciation) Net increase (decrease) in net assets as a result of operations Statement of Changes in Net Assets Net assets at the beginning of the financial year Redemptions Total net subscriptions (redemptions) 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 financial year 0.00 Changes in the Number of Shares outstanding Class BI Number of shares outstanding at the beginning of the financial year Number of shares issued Number of shares redeemed Number of shares outstanding at the end of the financial year Class F-acc Number of shares outstanding at the beginning of the financial year Number of shares issued Number of shares redeemed Number of shares outstanding at the end of the financial year Active Allocation Portfolio Aggressive The notes are an integral part of the financial statements. 11

14 Active Allocation Portfolio Defensive Most important figures ISIN Net assets in Class BI LU Shares outstanding Net asset value per share in Issue and redemption price per share in Class F-acc* LU Shares outstanding Net asset value per share in Issue and redemption price per share in See note 1 * See note 9 Structure of the Securities Portfolio As all shares of Active Allocation Portfolio Defensive have been redeemed as at 31 October 2013, there is no securities portfolio or securities portfolio structure at the end of the reporting period (see note 7). Active Allocation Portfolio Defensive 12 The notes are an integral part of the financial statements.

15 Statement of Operations Income Other income Total income Expenses Flat fee (Note 2) Taxe d abonnement (Note 3) Interest on 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 forward foreign exchange contracts Realized result on subscriptions/redemptions (Note 4) Total realized gain (loss) on investments Realized gain (loss) on foreign exchange Total realized gain (loss) Net realized gain (loss) of the financial year Changes in unrealized appreciation (depreciation) (Note 1) Unrealized appreciation (depreciation) on market-priced securities without options Unrealized appreciation (depreciation) on forward foreign exchange contracts Total changes in unrealized appreciation (depreciation) Net increase (decrease) in net assets as a result of operations Statement of Changes in Net Assets Net assets at the beginning of the financial year Subscriptions Redemptions Total net subscriptions (redemptions) 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 financial year 0.00 Changes in the Number of Shares outstanding Class BI Number of shares outstanding at the beginning of the financial year Number of shares issued Number of shares redeemed Number of shares outstanding at the end of the financial year Class F-acc Number of shares outstanding at the beginning of the financial year Number of shares issued Number of shares redeemed Number of shares outstanding at the end of the financial year Active Allocation Portfolio Defensive The notes are an integral part of the financial statements. 13

16 Active Allocation Portfolio Moderate Most important figures ISIN Net assets in Class BI 1 LU Shares outstanding Net asset value per share in Issue and redemption price per share in Class F-acc* LU Shares outstanding Net asset value per share in Issue and redemption price per share in The share class BI was in circulation until See note 1 * See note 9 Structure of the Securities Portfolio As all shares of Active Allocation Portfolio Moderate have been redeemed as at 31 October 2013, there is no securities portfolio or securities portfolio structure at the end of the reporting period (see note 7). Active Allocation Portfolio Moderate 14 The notes are an integral part of the financial statements.

17 Statement of Operations Income Other income Total income Expenses Flat fee (Note 2) Taxe d abonnement (Note 3) Interest on bank overdraft Other expenses 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 forward foreign exchange contracts Realized result on subscriptions/redemptions (Note 4) Total realized gain (loss) on investments Realized gain (loss) on foreign exchange Total realized gain (loss) Net realized gain (loss) of the financial year Changes in unrealized appreciation (depreciation) (Note 1) Unrealized appreciation (depreciation) on market-priced securities without options Unrealized appreciation (depreciation) on forward foreign exchange contracts Total changes in unrealized appreciation (depreciation) Net increase (decrease) in net assets as a result of operations Statement of Changes in Net Assets Net assets at the beginning of the financial year Subscriptions Redemptions Total net subscriptions (redemptions) 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 financial year 0.00 Changes in the Number of Shares outstanding Class F-acc Number of shares outstanding at the beginning of the financial year Number of shares issued Number of shares redeemed Number of shares outstanding at the end of the financial year Active Allocation Portfolio Moderate The notes are an integral part of the financial statements. 15

18 Balanced Most important figures ISIN Net assets in Class F-acc* LU Shares outstanding Net asset value per share in Issue and redemption price per share in Class K-acc* LU Shares outstanding Net asset value per share in Issue and redemption price per share in See note 1 * See note 9 Structure of the Securities Portfolio Geographical Breakdown as a % of net assets Luxembourg Ireland United Kingdom 1.37 Total Economic Breakdown as a % of net assets Investment funds & pension foundations Total Balanced 16 The notes are an integral part of the financial statements.

19 Statement of Net Assets 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 Receivable on securities sales (Note 1) Receivable on subscriptions Other receivables Unrealized gain (loss) on forward foreign exchange contracts (Note 1) Total Assets Liabilities 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 financial year Statement of Operations Income Interest on liquid assets Dividends Other income Total income Expenses Flat fee (Note 2) Taxe d abonnement (Note 3) Interest on 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 forward foreign exchange contracts Realized result on subscriptions/redemptions (Note 4) Total realized gain (loss) on investments Realized gain (loss) on foreign exchange Total realized gain (loss) Net realized gain (loss) of the financial year Changes in unrealized appreciation (depreciation) (Note 1) Unrealized appreciation (depreciation) on market-priced securities without options Unrealized appreciation (depreciation) on forward foreign exchange contracts Total changes in unrealized appreciation (depreciation) Net increase (decrease) in net assets as a result of operations Balanced The notes are an integral part of the financial statements. 17

20 Statement of Changes in Net Assets Net assets at the beginning of the financial year Subscriptions Redemptions Total net subscriptions (redemptions) 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 financial year Changes in the Number of Shares outstanding Class F-acc Number of shares outstanding at the beginning of the financial year Number of shares issued Number of shares redeemed Number of shares outstanding at the end of the financial year Class K-acc Number of shares outstanding at the beginning of the financial year Number of shares issued Number of shares redeemed Number of shares outstanding at the end of the financial year Balanced 18 The notes are an integral part of the financial statements.

21 Statement of Investments in Securities and other Net Assets as of 31 July 2014 Description Quantity/ Valuation in as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1) UCITS/Other UCIs in accordance with Article 41 (1) e) of the Luxembourg law of 17 December 2010 Investment certificates, open end Ireland USD DCI INVESTMENT GRADE CORPORATE BOND FUND-A USD INC MED DUR FUNDLOGIC ALTERNATIVES PLC - MS PSAM GLOBAL EVENT UCITS FD-P GAM STAR FUND PLC - GLOBAL RATES ISHARES IV PUBLIC LTD COMPANY MSCI EMU MID CAP UCITS ETF-ACC LEGG MASON GLOB FUNDS-WESTERN ASSET MACRO OPP BD-SHS--ACC LEGG MASON GLOBAL FUNDS-WESTERN ASSET MACRO OPP BD-S HDG LYXOR NEWCITS IRL PLC-LYXOR/TIEDEMANN ARBITRAGE STRAT--I MARSHALL WACE UCITS FUND - MW DEVELOPED OPE TOPS FUND-F USD NEUBERGER BERMAN INVESTMENT FDS-NEUBER BERMAN H/Y BD-I2USD PIMCO SELECT FUNDS-O AGGREGATE HIGH QUALITY FUND-ACC INST USD SOURCE MARKETS PLC TECH S&P US SELCT SECT UCITS ETF A-USD-AC USD SOURCE MARKETS PLC-FINANCIALS S&P US SELECT SECTOR SOURCE-A USD SSGA SPDR ETFS OPE I PLC - SPDR S&P US DIVIDEND ARIST ETF CAD UBS ETFS PLC - MSCI CANADA TRN INDEX SF - A/ACC USD UBS ETFS PLC-MSCI EMERGING MARKETS TRN INDEX SF- (USD)-A Total Ireland Luxembourg ALKEN FUND - ABSOLUTE RETURN OPE-EU ALLIANCE BERNSTEIN - SELECT ABSOLUTE ALPHA PORTFOLIO-S1H AXA WORLD FUNDS - US HIGH YIELD BONDS-I HDG-CAP BLACKROCK GLOBAL FUNDS SICAV-O MARKETS FUND-D/2 CAP USD BLACKROCK GLOBAL FUNDS SICAV-EMERGING MARKETS BOND FUND-D BLACKROCK STRATEGIC FUNDS-OPEAN CREDIT STRATEGICS FUND-I FIDELITY FUNDS SICAV - O BLUE CHIP FUND-Y-ACC-O-CAP FIDELITY FUNDS SICAV-US HIGH YIELD FUND-Y (O HGD) FOCUSED FUND - MEDIUM TERM MIXED PLUS () F-ACC FOCUSED FUND - MIXED PLUS () F-ACC USD GOLDMAN SACHS GLOBAL HIGH YIELD PORTFOLIO-R USD GOLDMAN SACHS GROWTH & EMERGING MARKETS DEBT PORTFOLIO-RDUSD USD JPMORGAN FUNDS SICAV-EMERGING MARKETS DEBT FUND-C USD USD MFS MERIDIAN FUNDS-EMERGING MARKETS DEBT FUND-1X MORGAN STANLEY INV FD-DIV ALPHA PLUS FUND SICAV-Z CAP USD MULTI MANAGER ACCESS-US EQUITIES B MULTI MANAGER ACCESS - EMU EQUITIES B USD PICTET SICAV - GLOBAL EMERGING DEBT-I USD CAPITALISATION SCHRODER INTERNATIONAL SELECTION FUND SICAV-O EQUITY C USD UBS (LUX) BOND SICAV - USD CORPORATES (USD) F-ACC USD UBS (LUX) BOND SICAV - USD HIGH YIELD (USD) F-ACC USD UBS (LUX) EQUITY SICAV - USA QUANTITATIVE (USD) F-ACC UBS (LUX) SICAV 1 SICAV - EMU EQUITIES ENHANCED () F-ACC CHF UBS ETF - MSCI SWITZERLAND 20/35 UCITS ETF A-DIST GBP UBS ETF MSCI UNITED KINGDOM UCITS ETF (GBP)-A UBS ETF SICAV - UBS ETF MSCI EMU-A JPY UBS ETF SICAV - UBS-ETF MSCI JAPAN USD UBS ETF SICAV- UBS-ETF MSCI USA-A Total Luxembourg United Kingdom USD M&G INVESTMENT FUNDS 1 - AMERICAN FUND-C Total United Kingdom Total Investment certificates, open end Total UCITS/Other UCIs in accordance with Article 41 (1) e) of the Luxembourg law of 17 December Total investments in securities Forward Foreign Exchange contracts Forward Foreign Exchange contracts (Purchase/Sale) CHF GBP JPY USD JPY USD USD Total Forward Foreign Exchange contracts (Purchase/Sale) Cash at banks, deposits on demand and deposit accounts and other liquid assets Other assets and liabilities Total net assets Balanced The notes are an integral part of the financial statements. 19

22 Balanced CHF Three-year comparison ISIN Net assets in CHF Class F-acc* LU Shares outstanding Net asset value per share in CHF Issue and redemption price per share in CHF See note 1 * See note 9 Structure of the Securities Portfolio Geographical Breakdown as a % of net assets Luxembourg Ireland United Kingdom 1.33 Total Economic Breakdown as a % of net assets Investment funds & pension foundations Total Balanced CHF 20 The notes are an integral part of the financial statements.

23 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 Receivable on securities sales (Note 1) Receivable on subscriptions Interest receivable on liquid assets Receivable on dividends Other receivables Unrealized gain (loss) on forward foreign exchange contracts (Note 1) Total Assets Liabilities Interest payable on bank overdraft Payable on securities purchases (Note 1) Provisions for flat fee (Note 2) Provisions for taxe d abonnement (Note 3) Total provisions Total Liabilities Net assets at the end of the financial year Statement of Operations CHF Income Interest on liquid assets Dividends Other income Total income Expenses Flat fee (Note 2) Taxe d abonnement (Note 3) Interest on 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 forward foreign exchange contracts Realized result on subscriptions/redemptions (Note 4) Total realized gain (loss) on investments Realized gain (loss) on foreign exchange Total realized gain (loss) Net realized gain (loss) of the financial year Changes in unrealized appreciation (depreciation) (Note 1) Unrealized appreciation (depreciation) on market-priced securities without options Unrealized appreciation (depreciation) on forward foreign exchange contracts Total changes in unrealized appreciation (depreciation) Net increase (decrease) in net assets as a result of operations Balanced CHF The notes are an integral part of the financial statements. 21

24 Statement of Changes in Net Assets CHF Net assets at the beginning of the financial year Subscriptions Redemptions Total net subscriptions (redemptions) 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 financial year Changes in the Number of Shares outstanding Class F-acc Number of shares outstanding at the beginning of the financial year Number of shares issued Number of shares redeemed Number of shares outstanding at the end of the financial year Balanced CHF 22 The notes are an integral part of the financial statements.

25 Statement of Investments in Securities and other Net Assets as of 31 July 2014 Description Quantity/ Valuation in CHF as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1) UCITS/Other UCIs in accordance with Article 41 (1) e) of the Luxembourg law of 17 December 2010 Investment certificates, open end Ireland USD DCI INVESTMENT GRADE CORPORATE BOND FUND-A USD INC MED DUR FUNDLOGIC ALTERNATIVES PLC - MS PSAM GLOBAL EVENT UCITS FD-P GAM STAR FUND PLC - GLOBAL RATES LEGG MASON GLOB FUNDS-WESTERN ASSET MACRO OPP BD-SHS--ACC LEGG MASON GLOBAL FUNDS-WESTERN ASSET MACRO OPP BD-S HDG LYXOR NEWCITS IRL PLC-LYXOR/TIEDEMANN ARBITRAGE STRAT--I MARSHALL WACE UCITS FUND - MW DEVELOPED OPE TOPS FUND-F CHF NEUBER BERMAN HIGH YIELD BOND FUND-I2 CHF HEDGED USD SOURCE MARKETS PLC TECH S&P US SELCT SECT UCITS ETF A-USD-AC USD SOURCE MARKETS PLC-FINANCIALS S&P US SELECT SECTOR SOURCE-A USD SSGA SPDR ETFS OPE I PLC - SPDR S&P US DIVIDEND ARIST ETF CAD UBS ETFS PLC - MSCI CANADA TRN INDEX SF - A/ACC USD UBS ETFS PLC-MSCI EMERGING MARKETS TRN INDEX SF- (USD)-A Total Ireland Luxembourg ALKEN FUND - ABSOLUTE RETURN OPE-EU ALLIANCE BERNSTEIN - SELECT ABSOLUTE ALPHA PORTFOLIO-S1H CHF AXA WORLD FUNDS - US HIGH YIELD BONDS-I CHF HDG-CAP USD BLACKROCK GLOBAL FUNDS SICAV-EMERGING MARKETS BOND FUND-D BLACKROCK STRATEGIC FUNDS-OPEAN CREDIT STRATEGICS FUND-I CHF DB X-TRACKERS SMI ETF-1D CHF FIDELITY FUNDS SICAV-US HIGH YIELD FUND-Y (CHF HGD)-ACC CHF FOCUSED FUND - MEDIUM TERM MIXED PLUS (CHF) F-ACC CHF FOCUSED SICAV - HIGH GRADE BOND CHF-F ACC CHF FOCUSED SICAV - HIGH GRADE LONG TERM BOND CHF-F ACC USD GOLDMAN SACHS GLOBAL HIGH YIELD PORTFOLIO-R USD GOLDMAN SACHS GROWTH & EMERGING MARKETS DEBT PORTFOLIO-RDUSD USD JPMORGAN FUNDS SICAV-EMERGING MARKETS DEBT FUND-C USD USD MFS MERIDIAN FUNDS-EMERGING MARKETS DEBT FUND-1X MORGAN STANLEY INV FD-DIV ALPHA PLUS FUND SICAV-Z CAP USD MULTI MANAGER ACCESS-US EQUITIES B USD PICTET SICAV - GLOBAL EMERGING DEBT-I USD CAPITALISATION CHF SCHRODER INTERNATIONAL SELECTION FUND SICAV-SWISS EQUITY-C USD UBS (LUX) BOND SICAV - USD CORPORATES (USD) F-ACC CHF UBS (LUX) BOND SICAV - USD HIGH YIELD (USD) (CHF HDGD) F-ACC USD UBS (LUX) EQUITY SICAV - USA QUANTITATIVE (USD) F-ACC CHF UBS ETF - MSCI SWITZERLAND 20/35 UCITS ETF A-DIST GBP UBS ETF MSCI UNITED KINGDOM UCITS ETF (GBP)-A UBS ETF SICAV - UBS ETF MSCI EMU-A JPY UBS ETF SICAV - UBS-ETF MSCI JAPAN USD UBS ETF SICAV- UBS-ETF MSCI USA-A Total Luxembourg United Kingdom USD M&G INVESTMENT FUNDS 1 - AMERICAN FUND-C Total United Kingdom Total Investment certificates, open end Total UCITS/Other UCIs in accordance with Article 41 (1) e) of the Luxembourg law of 17 December Total investments in securities Forward Foreign Exchange contracts Forward Foreign Exchange contracts (Purchase/Sale) CHF CHF GBP CHF JPY CHF USD JPY CHF CHF USD CHF USD CHF Total Forward Foreign Exchange contracts (Purchase/Sale) Cash at banks, deposits on demand and deposit accounts and other liquid assets Other assets and liabilities Total net assets Balanced CHF The notes are an integral part of the financial statements. 23

26 Equity Three-year comparison ISIN Net assets in Class F-acc* LU Shares outstanding Net asset value per share in Issue and redemption price per share in See note 1 * See note 9 Structure of the Securities Portfolio Geographical Breakdown as a % of net assets Luxembourg Ireland United Kingdom 6.55 France 2.10 Total Economic Breakdown as a % of net assets Investment funds & pension foundations Total Equity 24 The notes are an integral part of the financial statements.

27 Statement of Net Assets 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 Receivable on securities sales (Note 1) Interest receivable on liquid assets 8.99 Other receivables Unrealized gain (loss) on forward foreign exchange contracts (Note 1) Total Assets Liabilities Payable on securities purchases (Note 1) Provisions for flat fee (Note 2) Provisions for taxe d abonnement (Note 3) Total provisions Total Liabilities Net assets at the end of the financial year Statement of Operations Income Interest on liquid assets Dividends Other income Total income Expenses Flat fee (Note 2) Taxe d abonnement (Note 3) Interest on 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 forward foreign exchange contracts Realized result on subscriptions/redemptions (Note 4) Total realized gain (loss) on investments Realized gain (loss) on foreign exchange Total realized gain (loss) Net realized gain (loss) of the financial year Changes in unrealized appreciation (depreciation) (Note 1) Unrealized appreciation (depreciation) on market-priced securities without options Unrealized appreciation (depreciation) on forward foreign exchange contracts Total changes in unrealized appreciation (depreciation) Net increase (decrease) in net assets as a result of operations Equity The notes are an integral part of the financial statements. 25