UBS Global Sustainable Equity

Transcription

1 2Q 2017 UBS Asset Management Managed Accounts Investment objective Seeks to provide value-added investment results by investing in attractively valued companies with strong fundamental valuation and a long-term sustainable business model. Portfolio characteristics Investment minimum $100,000 Investment risk category 1 4 Moderately Aggressive Inception date 6/30/1997 Morgan Stanley Capital International (MSCI) World Free Index (net) Investment strategy By investing in PWS Global Sustainable Equity, you receive access to a strategy that: Invests in sustainability champions that feature innovative products or services that meet environmental or social challenges, deliver impact and have the ability to drive returns. Is actively positioned to benefit from themes such as water and energy conservation, demographics, and other important trends. Is managed by a highly experienced team within UBS, a leader in sustainability. Investment process Bottom-up stock selection based on two simultaneous factors: 1) fundamental valuation analysis of financial data; and 2) sustainability rankings based on the evaluation of non-financial data. The Sustainable Equities team integrates these two inputs into a best-ideas portfolio of stocks that it believes are attractively valued and have a strong sustainability profile. The team leverages the firm s global equity research platform and proprietary risk management tools. Investment manager Bottom-up stock selection: Two simultaneous factors UBS Asset Management (Americas) Inc. Founded: 1989 (predecessor firm: 1981) Assets under management: $164 billion 2 Ownership: UBS AG; UBS Asset Management (Americas) Inc. is also a member of UBS Asset Management, which worldwide has $695 billion in assets under management. 2 Sustainability rankings based on non-financial data Low High Monitor & patience Watch & avoid Primary focus Best ideas Stay engaged Expensive Attractive Valuation based on financial data For illustrative purposes only. 1 For a description of risk categories, please refer to the Investment Management Agreement. 2 As of March 31, All Private Wealth Solutions accounts are offered through UBS Asset Management (Americas) Inc., which serves as the program sponsor. Please see the disclosure section for additional information.

2 Composite performance (in USD) as of June 30, 2017 Returns comparison 3 30% Q17 YTD 1 Year 3 Years 5 Years 10 Years Since Inception Net (%) Pure gross (%) (%) Risk/reward analysis Rate of return (%) Standard deviation population (%) 5 Beta 5 R-squared 5 Tracking error 5 Information ratio 5 3-year 5-year 3-year 5-year 3-year 5-year 3-year 5-year 3-year 5-year 3-year 5-year Net Pure gross Year-by-year composite performance (in USD) Through December 31, 2016 Year Net (%) Pure gross (%) (%) 4 Composite 3-year standard deviation (%) 6 3-year standard deviation (%) 6 Number of portfolios end of period Total Composite assets end of period ($ millions) Asset-weighted dispersion (%) Composite assets as percent of firm assets N/A N/A N/A N/A N/A N/A * N/A N/A 16 4 N/A N/A N/A N/A N/A * The performance results prior to May 1, 2010, represent performance of UBS Asset Management Global Sustainable Equity Composite (formerly called UBS Global Asset Management Global Equity SRI composite), which is managed according to a strategy that is similar to, but differs in some ways from, the strategy used for Private Wealth Solutions accounts. Please see the disclosure section for additional information. The returns shown above are based on currently available information and are subject to revision. Past performance is no guarantee of future results. This document contains performance figures that are presented/calculated both Pure gross of fees and net of transaction fees and other trading expenses. Pure gross-of-fees performance is supplemental to net-of-fees performance. For additional disclosure information, please refer to the Composite performance disclosure section. The investment return and principal value of an investment will fluctuate so that an investment, when redeemed, may be worth more or less than its original value. Performance of different types of investment vehicles, including mutual funds and separately managed accounts, employing the Strategy may differ as a result of the different fees, expenses, charges, number of securities and regulatory requirements and/or restrictions applicable to the vehicles. Indices are unmanaged, do not reflect the deductions of any fees or expenses, and are not available for direct investment. Please see the Indices section of the disclosures for definitions of indices referenced on this page. 3 All returns greater than one year are annualized. Since inception is defined as the last day of the month of initial investment, 6/30/1997 6/30/2017. Complete performance is available upon request. 4 The benchmark represents 100% MSCI World Free Index (net). 5 Please see the Definitions section on the last page for more information. 6 Three-year standard deviations are based on the gross returns. 7 Composite value represents less than 1% of firm asset value. 8 Performance results for calendar-year 2016 have not been independently verified as of the publication date of this material. Please see the Composite performance disclosure section located at the back of this presentation for more information. 2

3 Composite performance disclosure Composite performance disclosure UBS Asset Management (the Firm) claims compliance with Global Investment Performance Standards (GIPS ) and has prepared and presented this report in compliance with the GIPS standards. UBS Asset Management has been independently verified for the periods January 1, 2002 through December 31, The verification reports are available upon request. Verification assesses whether (1) the Firm has complied with all the composite construction requirements of the GIPS standards on a Firm-wide basis, and (2) the Firm s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation. Past performance is not a guarantee of future results. The performance results prior to May 1, 2010, represent performance of UBS Asset Management Global Sustainable Equity Composite (formerly called UBS Global Asset Management Global Equity SRI composite), which is managed according to a strategy that is similar to, but differs in some ways from, the strategy used for Private Wealth Solutions accounts. Prior to May 1, 2010, Pure gross results are net of transaction costs. Pure gross-of-fee returns are supplemental to net returns. Performance represents all fee-paying unrestricted MAP Private Wealth Solutions (PWS) accounts beginning the first day of the month following the account inception. Past performance is not a guarantee of future results. This document is aimed to help readers in understanding the investment process, and should not be construed as investment advice. An investor should consider the risks, investment objectives, charges and ongoing expenses before making an investment. The UBS Asset Management Global Sustainable Equity composite invests in companies that meet the dual criteria of trading at prices below their intrinsic values according to the manager s bottom-up fundamental research process, while also passing a rigorous review of the company s environmental, social and governance policies. The benchmark is the MSCI World Free Index (net). All performance is net of dividend withholding taxes. Results include all actual fee-paying, discretionary client portfolios including those clients no longer with the Firm. Results include all actual fee-paying, discretionary client portfolios including those clients no longer with the Firm. Portfolios are included in the composite beginning with the first full month of performance to the present or to the cessation of the client s relationship with the Firm. Terminated accounts are included through the last full month in which they were fully invested, and no alterations of composites have occurred due to changes in personnel. Composites consisting of more than one portfolio are asset weighted by beginning-of-period asset values. Investment results are time-weighted performance calculations representing total return. Returns are calculated using geometric linking of monthly returns. Composites are valued at least monthly, taking into account cash flows. All realized and unrealized capital gains and losses, as well as all dividends and interest from investments and cash balances, are included. Interest income from fixed income securities is accrued, and equity dividends are accrued as of the ex-dividend date. Investment transactions are accounted for on a trade-date basis. Where applicable, returns are shown net of nonrecoverable withholding tax. There are fees associated with investing in separately managed accounts. The rates of return are presented both net and Pure gross of investment management fees. Net results for the period May 1, 2010 to present reflect the deduction of actual fees paid by PWS accounts. For the period prior to May 1, 2010, net results reflect the deduction of the maximum Private Wealth Solutions program annual fee of 2.80% on a monthly basis from the Pure gross results of the UBS Asset Management Global Sustainable Equity Composite (formerly called UBS Global Asset Management Global Equity SRI composite). Net results presented reflect the deduction of actual fees paid by PWS accounts. For fees charged in connection with the Private Wealth Solutions program, please refer to the UBS Asset Management (Americas) Inc. Private Wealth Solutions Wrap Fee Program Brochure. Pure gross-of-fee returns are gross of all wrap fees, investment management or other fees and expenses, including trading expenses. Pure gross-of-fee returns are supplemental to net returns. Composite dispersion represents the consistency of the Firm s composite performance results with respect to the individual portfolio returns within the composite. Presented is the asset-weighted dispersion (standard deviation) of the portfolios within the composite. Only portfolios in the composite for each full time period are included in the dispersion calculation and no dispersion is presented for composites consisting of only a single portfolio. The 3-year annualized ex-post standard deviations are based on monthly returns, shown starting with the first full 3-year calendar period. A complete list of all Firm composite descriptions is available upon request. The Firm is defined as all actively and passively managed institutional and retail accounts of UBS Asset Management (the Firm) throughout the world. The Firm was incepted on January 1, 2002 following the reorganization of the asset management divisions of UBS AG under a single Asset Management brand. The performance record prior to 2002 is that of the local asset management division, which managed the composite, and has been prepared in compliance with GIPS from the inception date of this composite. Each of the entities comprising the Firm definition is an affiliate of UBS. Policies for valuing portfolios, calculating performance and preparing compliant presentations are available upon request. 3

4 Disclosure and risk considerations There are fees associated with investing in separately managed accounts. For fees charged in connection with the Private Wealth Solution program, please refer to the UBS Asset Management (Americas) Inc. Private Wealth Solutions Wrap Fee Program Brochure. Nothing contained herein constitutes investment, legal, tax or other advice. This should not be construed as a solicitation, offer or recommendation to acquire or dispose of an investment, or to engage in any other transaction. Risk considerations Market risk. The risk that the market value of a Portfolio will fluctuate as the stock and bond markets fluctuate. Market risk may affect a single issuer, industry or section of the economy, or it may affect the market as a whole. Foreign investing and emerging markets risks. Investing internationally presents certain risks not associated with investing solely in the US such as currency fluctuation, political and economic change, social unrest, changes in government relations, differences in accounting and available legal remedies, and the lesser degree of accurate public information available. A decline in the value of foreign currencies relative to the US dollar will reduce the value of securities denominated in those currencies. Also, foreign securities are sometimes less liquid and harder to sell and to determine the value of than securities of US issuers. Each of these risks is more severe for securities of issuers in emerging markets countries. US companies include any company organized outside of the United States, but which (a) is included in an index representative of the United States; (b) has its headquarters or principal location of operations in the United States; (c) whose primary listing is on a securities exchange or market in the United States; (d) issues securities that are guaranteed by the United States government, its agencies, political subdivisions or instrumentalities; (e) derives at least 50% of its revenues in the United States; or (f) has at least 50% of its assets in the United States. The PWS Global Sustainable Equity Strategy is permitted to invest in F shares (so called due to their ticker symbols, which end in F ). F shares are ordinary shares of a foreign company s common stock that trade in their home (local) market. F shares are quoted in US dollars by registered market makers who provide their quotes on over-the-counter ( OTC ) quote platforms. F shares provide access to the securities of certain foreign companies that do not have American Depositary Receipts (ADRs) available. There are certain risks associated with investing in F shares. The risks include, but are not limited to, the risks associated with foreign investing. F shares are not listed on US exchanges, but are subject to foreign local registration requirements. F shares trade over-the-counter via the pink sheets based on broker/dealers or market makers who offer quotes, and therefore are not subject to the listing and reporting requirements of issuers listed on a US exchange. Further, as F shares access the same liquidity as the local (foreign) market, when local markets are closed, liquidity will be reduced and spreads may be wider. F shares are also subject to the risk that a market maker may decide to exit the market for a particular company s F shares thereby reducing liquidity and widening the security s spreads. F shares are custodied in local (foreign) markets and have additional trading, custody and tax costs associated with their trading. Depositary receipts. Generally, exposure to non-us securities is achieved by investing in depositary receipts. Depositary receipts are securities that evidence ownership interests in securities or a pool of securities that have been deposited with a depository (the deposited securities ). Depositary receipts may be sponsored by the issuer of the deposited securities or unsponsored and include, among other types of depositary receipts, ADRs and Global Depositary Receipts (GDRs). A holder of depositary receipts may have the ability to cancel his or her depositary receipts and receive the underlying deposited securities. ADRs are receipts typically issued by a US bank or trust company evidencing ownership of securities of foreign issuers on deposit with a bank or other custodian. Generally, ADRs are denominated in US dollars and designed for use in the US securities markets. ADRs may be listed on a national securities exchange or may be traded in the over-the-counter market. GDRs are receipts generally issued by a non-us bank or trust company evidencing ownership of securities of foreign issuers on deposit with a bank or other custodian. The issuer of securities on deposit in respect of GDRs is often an issuer located in an emerging or developing market. Typically, the depository for a GDR is a bank or trust company located in the foreign jurisdiction in which the deposited securities principally trade. There are risks associated with investing in depositary receipts. The rights of a holder of a depositary receipt in respect of the deposited securities may be less than the rights held by someone who holds the securities on deposit directly. Unsponsored depositary receipt facilities are typically established without the participation of the issuer of the deposited securities. In unsponsored facilities, the depository usually charges holders of the depositary receipts fees for the deposit and withdrawal of the deposited securities, the conversion of dividends into the currency in which the depositary receipts are denominated, the disposition of non-cash distributions, and the performance of other services. Also, the depository of an unsponsored facility frequently is under no obligation to distribute investor communications received from the issuer of the deposited security or to pass through voting rights related to the deposited securities to the holders of depositary receipts. In a sponsored facility, the issuer of the deposited securities typically assumes the obligation to pay some or all of the depository s transaction fees and the depository typically agrees to distribute notices of shareholder meetings, voting information, and other shareholder communications and information to the holders of depositary receipts at the request of the issuer of the deposited securities. Although transactions in depositary receipts may settle in accordance with the norms of the market on which they trade, depositary receipts generally involve all of the other risks associated with investing in foreign securities and in assets denominated in foreign currencies. Also, the values of depositary receipts will generally be affected by many of the same factors that affect the performance of the deposited securities, including the financial performance of the issuer of the deposited securities, supply and demand for the deposited securities, and market and economic conditions. Although the performance of depositary receipts may tend to correlate with the performance of the deposited securities, there can be no assurance that they will so correlate or that their values will not deviate materially at times. Depositary receipts may be or become illiquid and may be less liquid than the deposited securities are in the markets in which the deposited securities principally trade. Income or gains from investing in securities of foreign issuers, including through ADRs, GDRs and F shares, may be subject to withholding or other taxes, and possibly reporting requirements, imposed by foreign jurisdictions. US investors may be able to credit foreign taxes paid against their US federal income tax liability, or to deduct such taxes in computing their US federal taxable income, although the ability to claim such credits or deductions may be subject to significant limitations. In addition, special US tax rules may apply to particular investments in foreign securities. Investors should consult their tax advisers with respect to the specific tax consequences to them of an investment in a separately managed account, including the tax consequences of investments in securities of foreign issuers. For complete investment and category risk disclosure, please see the Private Wealth Solutions Program Investment Management Agreement. 4

5 Disclosure and risk considerations Indices. The MSCI World Free Index (net) is a free float-adjusted, market capitalization-weighted index that is designed to measure the equity market performance of developed markets. Net total return indices reinvest dividends after the deduction of withholding taxes, using a tax rate applicable to non-resident institutional investors who do not benefit from the double taxation treaties. The index is constructed and managed with a view to being fully investable from the perspective of international institutional investors. Investors should note that indices do not reflect the deduction of fees and expenses. The index is unmanaged and does not reflect the deduction of any fees or expenses. The index returns reflect all items of income, gain and loss and the reinvestment of dividends and other income. The index is not available for direct investment. The strategy is not an index strategy, is not restricted to securities reflected in the index, and may be more volatile than the index. Supplemental information UBS Asset Management (Americas) Inc. seeks to apply a consistent management style across investment vehicles employing this strategy. However, a typical Private Wealth Solutions portfolio may differ from other investment vehicles employing the strategy in the following respects: (1) a Private Wealth Solutions portfolio may hold fewer securities than other investment vehicles and therefore may be more volatile; (2) the Private Wealth Solutions portfolios are constructed with Depositary Receipts denominated in US dollars and securities of foreign issuers quoted in US dollars, unlike the accounts in the composite, which were constructed with ordinary securities held in local currency; (3) there will be no currency overlay employed for the Private Wealth Solutions portfolios; (4) a Private Wealth Solutions portfolio does not use derivative financial instruments in the course of ordinary management of assets or to hedge currency risk; (5) the Private Wealth Solutions portfolios may be benchmarked to indices different from those of other investment vehicles; and (6) a Private Wealth Solutions portfolio may use pooled investment vehicles (including mutual funds and ETFs) to gain exposure to certain asset classes instead of investing in them directly, and the pooled investment vehicles may be subject to certain restrictions and limitations that may not apply to other investment vehicles. Definitions Standard deviation population (%) is a measure of the dispersion for a population from its mean. The greater the data is spread, the higher the deviation. Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. R-squared is a statistical measure of how close the data are to the fitted regression line. It is also known as the coefficient of determination. Tracking error is the amount by which the performance of a portfolio differed from that of its benchmark. Information ratio is a ratio of portfolio returns above the returns of a benchmark (usually an index) to the volatility of those returns. The information ratio (IR) measures a portfolio manager s ability to generate excess returns relative to a benchmark. Confidentiality disclaimer THE CONTENTS OF THIS PRESENTATION ARE NOT TO BE CONSTRUED AS LEGAL, BUSINESS OR TAX ADVICE. EACH PROSPECTIVE INVESTOR SHOULD CONSULT ITS OWN ADVISOR AS TO LEGAL, BUSINESS AND TAX ADVICE. NOTWITHSTANDING ANY OTHER STATEMENT IN THIS PRESENTATION, EACH PROSPECTIVE INVESTOR (AND EACH EMPLOYEE, REPRESENTATIVE, OR OTHER AGENT OF SUCH PROSPECTIVE INVESTOR) MAY DISCLOSE TO ANY AND ALL PERSONS, WITHOUT LIMITATIONS OF ANY KIND, THE TAX TREATMENT AND TAX STRUCTURE OF THE TRANSACTION AND ALL MATERIALS OF ANY KIND (INCLUDING OPINIONS OR OTHER TAX ANALYSES) THAT ARE PROVIDED TO THE PROSPECTIVE INVESTOR RELATING TO SUCH TAX TREATMENT AND TAX STRUCTURE. FOR PURPOSES OF THIS PARA- GRAPH, THE TERMS TAX TREATMENT AND TAX STRUCTURE HAVE THE MEANING GIVEN TO SUCH TERMS UNDER UNITED STATES TREASURY REGULATION SECTION (c) AND APPLICABLE US STATE OR LOCAL TAX LAW. Investment professionals Bruno Bertocci Managing Director Senior Portfolio Manager Years of investment experience: 37 Joe Elegante, CFA Executive Director Senior Portfolio Manager Years of investment experience: 24 Dinah Koehler Executive Director Equity Specialist Years of investment experience: 25 Adam Jokich, CFA Director Portfolio Manager Years of investment experience: 4 Private Wealth Solutions accounts are offered through UBS Asset Management (Americas) Inc., which serves as the program sponsor. UBS Financial Services Inc. provides nondiscretionary consulting, custody and execution services to clients of the Private Wealth Solutions program. UBS All rights reserved C /17 UBS Asset Management (Americas) Inc. is an indirect asset management subsidiary of UBS Group AG.