Semi-Annual Report 2017/2018

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1 Asset management UBS Funds Semi-Annual Report 2017/2018 Investment Fund under Swiss Law with multiple sub-funds (umbrella fund) Unaudited semi-annual report as of 28 February 2018 UBS (CH) Suisse 25 (CHF) UBS (CH) Suisse 45 (CHF) UBS (CH) Suisse 65 (CHF)

3 Unaudited semi-annual report as of 28 February 2018 Table of contents Page ISIN Organization 2 UBS (CH) Suisse 25 (CHF) 3 P-dist / CH Q-dist / CH UBS (CH) Suisse 45 (CHF) 8 P-dist / CH Q-dist / CH UBS (CH) Suisse 65 (CHF) 13 P-dist / CH Q-dist / CH Sales restrictions Units of these sub-funds may not be offered, sold or delivered within the United States. Investors who are US persons must not be offered, sold or supplied with any units of this investment fund. A US person is someone who: (i) is a United States person within the meaning of paragraph 7701(a)(30) of the US Internal Revenue Code of 1986 (as amended) and the Treasury Regulations enacted in the Code; (ii) is a US person within the meaning of regulation S in the US Securities Act of 1933 (17 CFR (k)); (iii) is a non-us person within the meaning of rule 4.7 of the US Commodity Futures Trading Commission Regulations (17 CFR 4.7(a)(1)(iv)); (iv) resides in the United States of America within the meaning of rule 202(a)(30)-1 of the US Investment Advisers Act of 1940 (as amended); or (v) is a trust, a legal entity or another structure founded for the purpose of enabling US persons to invest in this investment fund. Internet address 1

4 Organization Fund Management UBS Fund Management (Switzerland) AG Aeschenplatz 6, 4002 Basel Board of Directors André Müller-Wegner, Chairman Managing Director, UBS AG, Basel and Zurich Reto Ketterer, Vice-chairman Managing Director, UBS AG, Basel and Zurich André Valente, Delegate Managing Director, UBS Fund Management (Switzerland) AG, Basel Thomas Rose Managing Director, UBS AG, Basel and Zurich Franz Gysin Independent Member Andreas Schlatter Independent Member Executive Board André Valente Managing Director Eugène Del Cioppo Deputy Managing Director and Head of Business Development & Client Management Daniel Brüllmann Head of Real Estate Funds Christel Müller Head of ManCo Oversight & Risk Management Thomas Reisser Head of Compliance Beat Schmidlin Head of Legal Services Custodian bank UBS Switzerland AG, Zurich Auditors Ernst & Young Ltd, Basel Delegation of investment decisions UBS Switzerland AG UBS Asset Management, a business group of UBS AG, Basel and Zurich Delegation of administration The administration of the investment funds, particularly accounting, the calculation of net asset values, tax statements, the operation of IT systems and the drafting of performance reports, has been delegated to Northern Trust Switzerland AG, Basel. The precise duties involved are set out in an agreement between the parties. All other fund management duties and the monitoring of other delegated duties are carried out in Switzerland. Paying agents UBS Switzerland AG, Zurich and its branches in Switzerland 2 Semi-Annual Report as of 28 February 2018

5 UBS (CH) Suisse 25 (CHF) Category Other Funds for Traditional Investments Most important figures ISIN Net fund assets in CHF Class P-dist CH Net asset value per unit in CHF Issue and redemption price per unit in CHF Number of units outstanding Class Q-dist CH Net asset value per unit in CHF Issue and redemption price per unit in CHF Number of units outstanding see Supplementary information Structure of the securities portfolio The 10 largest positions in % of total assets UBS (CH) Institutional Fund Bonds CHF Ausland Corporate Passive II UBS (CH) Institutional Fund Bonds CHF Prime Ausland UBS (CH) Institutional Fund Bonds CHF Inland Corporate Passive II UBS (LUX) Bond SICAV USD Investment Grade Corporates (USD) UBS (CH) Institutional Fund 3 Swiss Real Estate Securities Selection Passive II UBS (CH) Investment Fund Equities Switzerland Passive Large 8.27 UBS (CH) Investment Fund Equities USA Passive 8.11 UBS (LUX) Bond SICAV EUR Corporates (EUR) 6.07 UBS ETF MSCI EMU UCITS ETF (EUR) 4.00 UBS (CH) Institutional Fund Small & Mid Cap Equities Switzerland 2.98 Others 1.98 Total There may be differences in the way the percentages mentioned above are rounded off. UBS (CH) Suisse 25 (CHF) Semi-Annual Report as of 28 February

6 Statement of assets Market values CHF CHF Bank deposits at sight Securities Units of other collective investment schemes Derivative financial instruments Other assets Total fund assets Loans Other liabilities Net fund assets Statement of income Income CHF CHF Income from bank assets Negative interest Retrocessions Income from securities from units of other collective investment schemes Offset payments from securities lending Income from securities lending Purchase of current net income on issue of units Total income Expenses Interest payable Audit expenses Commission remuneration of the Fund Management in accordance with the fund contract Class P-dist Commission remuneration of the Fund Management in accordance with the fund contract Class Q-dist Other expenses Payment of current net income on redemption of units Total expenses Net income Realized capital gains and losses Realized result Unrealized capital gains and losses Total result Changes in net fund assets CHF CHF Net fund assets at the beginning of the financial year Ord. annual distribution Balance of unit movements Total result Net fund assets at the end of the reporting period Development of the outstanding units Class P-dist Number Number Situation at the beginning of the financial year Units issued Units redeemed Situation at the end of the period Difference between units issued and units redeemed Class Q-dist Number Number Situation at the beginning of the financial year Units issued Units redeemed Situation at the end of the period Difference between units issued and units redeemed Realized capital gains and losses may include income and expenses which were received from Swinging Single Pricing. 4 UBS (CH) Suisse 25 (CHF) Semi-Annual Report as of 28 February 2018

7 Inventory of Fund assets Security Purchases 1 Sales Market value 3 in % 3 Thereof Quantity/ Quantity/ in CHF in lending Nominal Nominal Quantity/Nominal Securities traded on an exchange Investment certificates, open end Eurozone UBS ETF - MSCI EMU UCITS ETF (EUR) A-DIS* EUR Total Eurozone United Kingdom UBS ETF - MSCI UNITED KINGDOM UCITS ETF (GBP)-A* GBP Total United Kingdom Total Investment certificates, open end Total Securities traded on an exchange Securities traded neither on an exchange nor on a regulated market Investment certificates, open end Emerging Markets UBS (CH) INST FUND-EQUITIES EMERG MKTS GLOBAL PASSIVE II UX** USD Total Emerging Markets Global UBS (CH) INST FUND - BONDS CHF PRIME AUSLAND U-X** CHF UBS (CH) INST FUND-BONDS CHF AUSLAND CORPORATE PASSIVE II UX** CHF UBS (CH) MONEY MARKET FUND - CHF I-X** CHF UBS (LUX) BD SICAV USD INVEST GRADE CORP USD CHF HDG U X ACC** CHF UBS (LUX) BOND SICAV - EUR CORPORATES (EUR)-U-X-ACC** CHF UBS (LUX) MONEY MARKET FUND - CHF U-X-ACC** CHF Total Global Switzerland UBS (CH) INST FUND - SMALL & MID CAP EQUITIES SWITZERLD I-X** CHF UBS (CH) INST FUND 3-SWISS REAL ESTATE SEC SEL PAS II I-X** CHF UBS (CH) INST FUND-BONDS CHF INLAND CORPORATE PASSIVE II UX** CHF UBS (CH) INV FUND - EQUITIES SWITZERLAND PASSIVE LARGE I-X** CHF Total Switzerland United States UBS (CH) INVESTMENT FUND - EQUITIES USA PASSIVE I-X** CHF Total United States Total Investment certificates, open end Total Securities traded neither on an exchange nor on a regulated market Total securities and similar instruments (thereof in lending 0.00) Bank deposits at sight Derivative financial instruments Other assets Total fund assets Short-term bank liabilities Other liabilities Net fund assets Valuation categories Market value as of in % of the total fund assets 3 Investments valued at prices paid on the main market Investments valuation based on market-observed parameters Investments valued with suitable valuation models taking account of the current market circumstances Total Purchases include the following transactions: allotment from subscription / allotment from option rights / option rights / allotment of subscription rights from underlying stocks / bonus securities / change of corporate names / conversions / purchases / share exchange between companies / stock splits / stock dividends / optional dividends / transfers / transfer due to redenomination in euro / subscriptions in kind 2 Sales include the following transactions: cancellation as a result of expiry / draws by lot / exercise of rights / options / repayments / reverse-splits / sales / share exchange between companies / transfers / transfer due to redenomination in euro / redemptions in kind 3 Divergences in the totals may be attributed to rounding differences * valued at prices paid on the main market (art. 88 para. 1 CISA) ** valuation based on market-observed parameters UBS (CH) Suisse 25 (CHF) Semi-Annual Report as of 28 February

8 Derivative financial instruments CISO-FINMA Art. 23 Exposure-increasing derivatives open at the end of the period under review Instrument Number Currency Coverage Variation margin in % of of contracts in CHF in CHF total assets Futures on indices/commodities/currencies SWISS MARKET INDEX FUTURE * 335 CHF Derivatives on currencies open at the end of the period under review Sale Sale Purchase Purchase Maturity Replacement in % of Currency Amount Currency Amount value in CHF total assets Forward exchange transactions** USD CHF EUR CHF GBP CHF USD CHF USD CHF CHF GBP EUR CHF USD CHF GBP CHF There may be differences in the way the figures mentioned above are rounded off. * valued at prices paid on the main market (art. 88 para. 1 CISA) ** valuation based on market-observed parameters Transactions in exposure-increasing derivatives during the period under review Instrument Currency Purchase/ Sale/ Contracts Contracts Futures on indices/commodities/currencies SWISS MARKET INDEX FUTURE CHF SWISS MARKET INDEX FUTURE CHF SWISS MARKET INDEX FUTURE CHF Transactions in derivatives on currencies during the period under review Sale Sale Purchase Purchase Maturity Currency Amount Currency Amount Forward exchange transactions GBP CHF EUR CHF USD CHF CHF USD CHF EUR CHF GBP EUR CHF GBP CHF USD CHF CHF USD CHF USD GBP CHF EUR CHF USD CHF CHF USD CHF GBP CHF EUR USD CHF CHF USD USD CHF EUR CHF GBP CHF USD CHF USD CHF CHF GBP EUR CHF USD CHF GBP CHF UBS (CH) Suisse 25 (CHF) Semi-Annual Report as of 28 February 2018

9 Supplementary information Derivative financial instruments Risk assessment process Commitment approach II: Art. 35ff CISO-FINMA Repurchase agreements No securities were used in repurchase agreements at balance sheet date. Remuneration of the Fund Management Flat fee Actual flat fee: Class P-dist: 1.22%* p.a.; Class Q-dist: 0.72%* p.a.; Maximum flat fee as specified in the fund contract: Class P-dist: 2.16% p.a.; Class Q-dist: 1.19% p.a.; based on the average net fund assets. Any management commission charged by the target funds in which investments are made may not exceed 3%, taking into account any retrocessions and discounts. Soft Commission Arrangements The fund management company has not concluded any arrangements in the form of soft commission arrangements. * The actual flat fee has been adjusted by 0.03 percentage points for class P-dist and 0.03 percentage point for class Q-dist by reducing the portfolio management fee for the investment certificates UBS (CH) PROPERTY FUND (see the statement on the inventory of the fund s assets) in order to avoid a double charge. If this adjustment is not applied, the actual flat fee represents 1.25% for class P-dist and 0.75% for class Q-dist. Total Expense Ratio (TER) This ratio was calculated in accordance with the SFAMA s Guidelines on the calculation and disclosure of the Total Expense Ratio (TER) of collective investment schemes in the current version and expresses the sum of all costs and commissions charged on an ongoing basis to the net assets (operating expenses) taken retrospectively as a percentage of the net assets. Composed TER for the last 12 months: Class P-dist: 1.33% Class Q-dist: 0.83% Issue and redemption price If, on any one order day, the sum of subscriptions and redemptions of units in the sub-fund result in a net inflow or outflow, the sub-fund s valuation net asset value will be increased or reduced accordingly (swinging single pricing). The maximum adjustment level amounts to 2% of the valuation net asset value. Incorporated into this are the incidental costs (bid/ask spread, brokerage at standard market rates, commissions, duties, etc.) that accrue to the sub-fund on average from the investment of a net inflow or from the sale of a portion of investments corresponding to the net outflow. The adjustment results in an increase of the valuation net asset value if net movements lead to an increase in the number of units in the sub-fund. Conversely, the adjustment results in a reduction of the valuation net asset value if net movements lead to a reduction in the number of units. The net asset value calculated on the basis of swinging single pricing is thus a modified net asset value. Exchange rates EUR 1 = CHF GBP 1 = CHF USD 1 = CHF UBS (CH) Suisse 25 (CHF) Semi-Annual Report as of 28 February

10 UBS (CH) Suisse 45 (CHF) Category Other Funds for Traditional Investments Most important figures ISIN Net fund assets in CHF Class P-dist CH Net asset value per unit in CHF Issue and redemption price per unit in CHF Number of units outstanding Class Q-dist CH Net asset value per unit in CHF Issue and redemption price per unit in CHF Number of units outstanding see Supplementary information Structure of the securities portfolio The 10 largest positions in % of total assets UBS (CH) Investment Fund Equities Switzerland Passive Large UBS (CH) Institutional Fund Bonds CHF Prime Ausland UBS (CH) Institutional Fund Bonds CHF Ausland Corporate Passive II UBS (CH) Investment Fund Equities USA Passive UBS (CH) Institutional Fund 3 Swiss Real Estate Securities Selection Passive II UBS (CH) Institutional Fund Bonds CHF Inland Corporate Passive II 9.07 UBS (LUX) Bond SICAV USD Investment Grade Corporates (USD) 7.98 UBS (CH) Institutional Fund Small & Mid Cap Equities Switzerland 5.95 UBS ETF MSCI EMU UCITS ETF (EUR) 4.99 UBS (LUX) Bond SICAV EUR Corporates (EUR) 4.02 Others 6.50 Total There may be differences in the way the percentages mentioned above are rounded off. 8 UBS (CH) Suisse 45 (CHF) Semi-Annual Report as of 28 February 2018

11 Statement of assets Market values CHF CHF Bank deposits at sight Securities Units of other collective investment schemes Derivative financial instruments Other assets Total fund assets Loans Other liabilities Net fund assets Statement of income Income CHF CHF Income from bank assets Negative interest Retrocessions Income from securities from units of other collective investment schemes Purchase of current net income on issue of units Total income Expenses Interest payable Audit expenses Commission remuneration of the Fund Management in accordance with the fund contract Class P-dist Commission remuneration of the Fund Management in accordance with the fund contract Class Q-dist Other expenses Payment of current net income on redemption of units Total expenses Net income Realized capital gains and losses Realized result Unrealized capital gains and losses Total result Changes in net fund assets CHF CHF Net fund assets at the beginning of the financial year Ord. annual distribution Balance of unit movements Total result Net fund assets at the end of the reporting period Development of the outstanding units Class P-dist Number Number Situation at the beginning of the financial year Units issued Units redeemed Situation at the end of the period Difference between units issued and units redeemed Class Q-dist Number Number Situation at the beginning of the financial year Units issued Units redeemed Situation at the end of the period Difference between units issued and units redeemed Realized capital gains and losses may include income and expenses which were received from Swinging Single Pricing. UBS (CH) Suisse 45 (CHF) Semi-Annual Report as of 28 February

12 Inventory of Fund assets Security Purchases 1 Sales Market value 3 in % 3 Thereof Quantity/ Quantity/ in CHF in lending Nominal Nominal Quantity/Nominal Securities traded on an exchange Investment certificates, open end Eurozone UBS ETF - MSCI EMU UCITS ETF (EUR) A-DIS* EUR Total Eurozone United Kingdom UBS ETF - MSCI UNITED KINGDOM UCITS ETF (GBP)-A* GBP Total United Kingdom Total Investment certificates, open end Total Securities traded on an exchange Securities traded neither on an exchange nor on a regulated market Investment certificates, open end Emerging Markets UBS (CH) INST FUND-EQUITIES EMERG MKTS GLOBAL PASSIVE II UX** USD Total Emerging Markets Global UBS (CH) INST FUND - BONDS CHF PRIME AUSLAND U-X** CHF UBS (CH) INST FUND-BONDS CHF AUSLAND CORPORATE PASSIVE II UX** CHF UBS (CH) MONEY MARKET FUND - CHF I-X** CHF UBS (IRL) INVESTOR SELECTION PLC - GLOB EMER MKT OPP-I-X USD** USD UBS (LUX) BD SICAV USD INVEST GRADE CORP USD CHF HDG U X ACC** CHF UBS (LUX) BOND SICAV - EUR CORPORATES (EUR)-U-X-ACC** CHF UBS (LUX) EQUITY SICAV - GLB EM OPP(USD)-U-X-ACC** USD UBS (LUX) MONEY MARKET FUND - CHF U-X-ACC** CHF Total Global Switzerland UBS (CH) INST FUND - SMALL & MID CAP EQUITIES SWITZERLD I-X** CHF UBS (CH) INST FUND 3-SWISS REAL ESTATE SEC SEL PAS II I-X** CHF UBS (CH) INST FUND EQUITIES SWITZERLAND PASSIVE LARGE II I-X** CHF UBS (CH) INST FUND-BONDS CHF INLAND CORPORATE PASSIVE II UX** CHF UBS (CH) INV FUND - EQUITIES SWITZERLAND PASSIVE LARGE I-X** CHF Total Switzerland United States UBS (CH) INVESTMENT FUND - EQUITIES USA PASSIVE I-X** CHF Total United States Total Investment certificates, open end Total Securities traded neither on an exchange nor on a regulated market Total securities and similar instruments (thereof in lending 0.00) Bank deposits at sight Derivative financial instruments Other assets Total fund assets Short-term bank liabilities Other liabilities Net fund assets Valuation categories Market value as of in % of the total fund assets 3 Investments valued at prices paid on the main market Investments valuation based on market-observed parameters Investments valued with suitable valuation models taking account of the current market circumstances Total Purchases include the following transactions: allotment from subscription / allotment from option rights / option rights / allotment of subscription rights from underlying stocks / bonus securities / change of corporate names / conversions / purchases / share exchange between companies / stock splits / stock dividends / optional dividends / transfers / transfer due to redenomination in euro / subscriptions in kind 2 Sales include the following transactions: cancellation as a result of expiry / draws by lot / exercise of rights / options / repayments / reverse-splits / sales / share exchange between companies / transfers / transfer due to redenomination in euro / redemptions in kind 3 Divergences in the totals may be attributed to rounding differences * valued at prices paid on the main market (art. 88 para. 1 CISA) ** valuation based on market-observed parameters 10 UBS (CH) Suisse 45 (CHF) Semi-Annual Report as of 28 February 2018

13 Derivative financial instruments CISO-FINMA Art. 23 Exposure-increasing derivatives open at the end of the period under review Instrument Number Currency Coverage Variation margin in % of of contracts in CHF in CHF total assets Futures on indices/commodities/currencies SWISS MARKET INDEX FUTURE * 132 CHF Derivatives on currencies open at the end of the period under review Sale Sale Purchase Purchase Maturity Replacement in % of Currency Amount Currency Amount value in CHF total assets Forward exchange transactions** CHF USD USD CHF EUR CHF GBP CHF EUR CHF USD CHF USD CHF CHF GBP EUR CHF CHF GBP EUR CHF EUR CHF GBP CHF There may be differences in the way the figures mentioned above are rounded off. * valued at prices paid on the main market (art. 88 para. 1 CISA) ** valuation based on market-observed parameters Transactions in exposure-increasing derivatives during the period under review Instrument Currency Purchase/ Sale/ Contracts Contracts Futures on indices/commodities/currencies SWISS MARKET INDEX FUTURE CHF SWISS MARKET INDEX FUTURE CHF SWISS MARKET INDEX FUTURE CHF Transactions in derivatives on currencies during the period under review Sale Sale Purchase Purchase Maturity Currency Amount Currency Amount Forward exchange transactions USD CHF CHF USD USD CHF GBP CHF EUR CHF USD CHF CHF USD CHF EUR CHF GBP EUR CHF EUR CHF USD CHF USD CHF GBP CHF USD CHF CHF USD CHF USD USD CHF GBP CHF EUR CHF USD CHF CHF USD CHF GBP CHF EUR USD CHF USD CHF USD CHF CHF USD CHF USD USD CHF EUR CHF GBP CHF EUR CHF USD CHF USD CHF CHF GBP EUR CHF CHF GBP EUR CHF EUR CHF GBP CHF UBS (CH) Suisse 45 (CHF) Semi-Annual Report as of 28 February

14 Supplementary information Derivative financial instruments Risk assessment process Commitment approach II: Art. 35ff CISO-FINMA Repurchase agreements No securities were used in repurchase agreements at balance sheet date. Remuneration of the Fund Management Flat fee Actual flat fee: Class P-dist: 1.37%* p.a.; Class Q-dist: 0.82%* p.a.; Maximum flat fee as specified in the fund contract: Class P-dist: 2.16% p.a.; Class Q-dist: 1.31% p.a.; based on the average net fund assets. Any management commission charged by the target funds in which investments are made may not exceed 3%, taking into account any retrocessions and discounts. Soft Commission Arrangements The fund management company has not concluded any arrangements in the form of soft commission arrangements. * The actual flat fee has been adjusted by 0.03 percentage points for class P-dist and 0.03 percentage point for class Q-dist by reducing the portfolio management fee for the investment certificates UBS (CH) PROPERTY FUND (see the statement on the inventory of the fund s assets) in order to avoid a double charge. If this adjustment is not applied, the actual flat fee represents 1.40% for class P-dist and 0.85% for class Q-dist. Total Expense Ratio (TER) This ratio was calculated in accordance with the SFAMA s Guidelines on the calculation and disclosure of the Total Expense Ratio (TER) of collective investment schemes in the current version and expresses the sum of all costs and commissions charged on an ongoing basis to the net assets (operating expenses) taken retrospectively as a percentage of the net assets. Composed TER for the last 12 months: Class P-dist: 1.48% Class Q-dist: 0.93% Issue and redemption price If, on any one order day, the sum of subscriptions and redemptions of units in the sub-fund result in a net inflow or outflow, the sub-fund s valuation net asset value will be increased or reduced accordingly (swinging single pricing). The maximum adjustment level amounts to 2% of the valuation net asset value. Incorporated into this are the incidental costs (bid/ask spread, brokerage at standard market rates, commissions, duties, etc.) that accrue to the sub-fund on average from the investment of a net inflow or from the sale of a portion of investments corresponding to the net outflow. The adjustment results in an increase of the valuation net asset value if net movements lead to an increase in the number of units in the sub-fund. Conversely, the adjustment results in a reduction of the valuation net asset value if net movements lead to a reduction in the number of units. The net asset value calculated on the basis of swinging single pricing is thus a modified net asset value. Exchange rates EUR 1 = CHF GBP 1 = CHF HKD 1 = CHF USD 1 = CHF UBS (CH) Suisse 45 (CHF) Semi-Annual Report as of 28 February 2018

15 UBS (CH) Suisse 65 (CHF) Category Other Funds for Traditional Investments Most important figures ISIN Net fund assets in CHF Class P-dist CH Net asset value per unit in CHF Issue and redemption price per unit in CHF Number of units outstanding Class Q-dist CH Net asset value per unit in CHF Issue and redemption price per unit in CHF Number of units outstanding see Supplementary information Structure of the securities portfolio The 10 largest positions in % of total assets UBS (CH) Investment Fund Equities Switzerland Passive Large UBS (CH) Investment Fund Equities USA Passive UBS (CH) Institutional Fund Equities Switzerland Passive Large II UBS (CH) Institutional Fund 3 Swiss Real Estate Securities Selection Passive II 9.99 UBS (CH) Institutional Fund Small & Mid Cap Equities Switzerland 8.94 UBS (CH) Institutional Fund Bonds CHF Ausland Corporate Passive II 6.52 UBS ETF MSCI EMU UCITS ETF (EUR) 5.99 UBS (CH) Institutional Fund Bonds CHF Inland Corporate Passive II 5.43 UBS (CH) Institutional Fund Bonds CHF Prime Ausland 5.03 UBS (LUX) Bond SICAV USD Investment Grade Corporates 4.01 Others 9.08 Total There may be differences in the way the percentages mentioned above are rounded off. UBS (CH) Suisse 65 (CHF) Semi-Annual Report as of 28 February

16 Statement of assets Market values CHF CHF Bank deposits at sight Securities Units of other collective investment schemes Derivative financial instruments Other assets Total fund assets Loans Other liabilities Net fund assets Statement of income Income CHF CHF Income from bank assets Negative interest Retrocessions Income from securities from units of other collective investment schemes Income from securities lending Purchase of current net income on issue of units Total income Expenses Interest payable Audit expenses Commission remuneration of the Fund Management in accordance with the fund contract Class P-dist Commission remuneration of the Fund Management in accordance with the fund contract Class Q-dist Partial transfer of the commission remuneration of the Fund Management in accordance with the fund contract on realized capital gains and losses Class P-dist Other expenses Payment of current net income on redemption of units Total expenses Net income Realized capital gains and losses Partial transfer of the commission remuneration of the Fund Management in accordance with the fund contract on realized capital gains and losses Class P-dist Realized result Unrealized capital gains and losses Total result Changes in net fund assets CHF CHF Net fund assets at the beginning of the financial year Ord. annual distribution Balance of unit movements Total result Net fund assets at the end of the reporting period according to notification of the Federal Tax Administration as of 1 January Realized capital gains and losses may include income and expenses which were received from Swinging Single Pricing. 14 UBS (CH) Suisse 65 (CHF) Semi-Annual Report as of 28 February 2018

17 Development of the outstanding units Class P-dist Number Number Situation at the beginning of the financial year Units issued Units redeemed Situation at the end of the period Difference between units issued and units redeemed Class Q-dist Number Number Situation at the beginning of the financial year Units issued Units redeemed Situation at the end of the period Difference between units issued and units redeemed UBS (CH) Suisse 65 (CHF) Semi-Annual Report as of 28 February

18 Inventory of Fund assets Security Purchases 1 Sales Market value 3 in % 3 Thereof Quantity/ Quantity/ in CHF in lending Nominal Nominal Quantity/Nominal Securities traded on an exchange Investment certificates, open end Eurozone UBS ETF - MSCI EMU UCITS ETF (EUR) A-DIS* EUR Total Eurozone United Kingdom UBS ETF - MSCI UNITED KINGDOM UCITS ETF (GBP)-A* GBP Total United Kingdom Total Investment certificates, open end Total Securities traded on an exchange Securities traded neither on an exchange nor on a regulated market Investment certificates, open end Emerging Markets UBS (CH) INST FUND-EQUITIES EMERG MKTS GLOBAL PASSIVE II UX** USD Total Emerging Markets Global UBS (CH) INST FUND - BONDS CHF PRIME AUSLAND U-X** CHF UBS (CH) INST FUND-BONDS CHF AUSLAND CORPORATE PASSIVE II UX** CHF UBS (CH) MONEY MARKET FUND - CHF I-X** CHF UBS (IRL) INVESTOR SELECTION PLC - GLOB EMER MKT OPP-I-X USD** USD UBS (LUX) BD SICAV USD INVEST GRADE CORP USD CHF HDG U X ACC** CHF UBS (LUX) BOND SICAV - EUR CORPORATES (EUR)-U-X-ACC** CHF UBS (LUX) EQUITY SICAV - GLB EM OPP(USD)-U-X-ACC** USD Total Global Switzerland UBS (CH) INST FUND - SMALL & MID CAP EQUITIES SWITZERLD I-X** CHF UBS (CH) INST FUND 3-SWISS REAL ESTATE SEC SEL PAS II I-X** CHF UBS (CH) INST FUND EQUITIES SWITZERLAND PASSIVE LARGE II I-X** CHF UBS (CH) INST FUND-BONDS CHF INLAND CORPORATE PASSIVE II UX** CHF UBS (CH) INV FUND - EQUITIES SWITZERLAND PASSIVE LARGE I-X** CHF Total Switzerland United States UBS (CH) INVESTMENT FUND - EQUITIES USA PASSIVE I-X** CHF Total United States Total Investment certificates, open end Total Securities traded neither on an exchange nor on a regulated market Total securities and similar instruments (thereof in lending ) Bank deposits at sight Derivative financial instruments Other assets Total fund assets Short-term bank liabilities Other liabilities Net fund assets Valuation categories Market value as of in % of the total fund assets 3 Investments valued at prices paid on the main market Investments valuation based on market-observed parameters Investments valued with suitable valuation models taking account of the current market circumstances Total Purchases include the following transactions: allotment from subscription / allotment from option rights / option rights / allotment of subscription rights from underlying stocks / bonus securities / change of corporate names / conversions / purchases / share exchange between companies / stock splits / stock dividends / optional dividends / transfers / transfer due to redenomination in euro / subscriptions in kind 2 Sales include the following transactions: cancellation as a result of expiry / draws by lot / exercise of rights / options / repayments / reverse-splits / sales / share exchange between companies / transfers / transfer due to redenomination in euro / redemptions in kind 3 Divergences in the totals may be attributed to rounding differences * valued at prices paid on the main market (art. 88 para. 1 CISA) ** valuation based on market-observed parameters 16 UBS (CH) Suisse 65 (CHF) Semi-Annual Report as of 28 February 2018

19 Derivative financial instruments CISO-FINMA Art. 23 Exposure-increasing derivatives open at the end of the period under review Instrument Number Currency Coverage Variation margin in % of of contracts in CHF in CHF total assets Futures on indices/commodities/currencies SWISS MARKET INDEX FUTURE * 38 CHF Derivatives on currencies open at the end of the period under review Sale Sale Purchase Purchase Maturity Replacement in % of Currency Amount Currency Amount value in CHF total assets Forward exchange transactions** CHF USD USD CHF EUR CHF GBP CHF USD CHF USD CHF CHF GBP CHF GBP USD CHF USD CHF EUR CHF EUR CHF GBP CHF CHF USD There may be differences in the way the figures mentioned above are rounded off. * valued at prices paid on the main market (art. 88 para. 1 CISA) ** valuation based on market-observed parameters Transactions in exposure-increasing derivatives during the period under review Instrument Currency Purchase/ Sale/ Contracts Contracts Futures on indices/commodities/currencies SWISS MARKET INDEX FUTURE CHF 0 42 SWISS MARKET INDEX FUTURE CHF SWISS MARKET INDEX FUTURE CHF 45 7 Transactions in derivatives on currencies during the period under review Sale Sale Purchase Purchase Maturity Currency Amount Currency Amount Forward exchange transactions USD CHF CHF USD USD CHF GBP CHF EUR CHF USD CHF CHF USD CHF EUR CHF GBP EUR CHF EUR CHF USD CHF EUR CHF USD CHF GBP CHF USD CHF CHF USD CHF USD USD CHF GBP CHF EUR CHF USD CHF CHF USD CHF GBP CHF EUR USD CHF EUR CHF USD CHF GBP CHF EUR CHF CHF USD CHF USD CHF USD USD CHF EUR CHF GBP CHF USD CHF USD CHF CHF GBP CHF GBP USD CHF USD CHF EUR CHF EUR CHF GBP CHF CHF USD UBS (CH) Suisse 65 (CHF) Semi-Annual Report as of 28 February

20 Supplementary information Derivative financial instruments Risk assessment process Commitment approach II: Art. 35ff CISO-FINMA Repurchase agreements No securities were used in repurchase agreements at balance sheet date. Remuneration of the Fund Management Flat fee Actual flat fee: Class P-dist: 1.51%* p.a.; Class Q-dist: 0.92%* p.a.; Maximum flat fee as specified in the fund contract: Class P-dist: 2.16% p.a.; Class Q-dist: 1.19% p.a.; based on the average net fund assets. Any management commission charged by the target funds in which investments are made may not exceed 3%, taking into account any retrocessions and discounts. Soft Commission Arrangements The fund management company has not concluded any arrangements in the form of soft commission arrangements. * The actual flat fee has been adjusted by 0.04 percentage points for class P-dist and 0.03 percentage point for class Q-dist by reducing the portfolio management fee for the investment certificates UBS (CH) PROPERTY FUND (see the statement on the inventory of the fund s assets) in order to avoid a double charge. If this adjustment is not applied, the actual flat fee represents 1.55% for class P-dist and 0.95% for class Q-dist. Total Expense Ratio (TER) This ratio was calculated in accordance with the SFAMA s Guidelines on the calculation and disclosure of the Total Expense Ratio (TER) of collective investment schemes in the current version and expresses the sum of all costs and commissions charged on an ongoing basis to the net assets (operating expenses) taken retrospectively as a percentage of the net assets. Composed TER for the last 12 months: Class P-dist: 1.64% Class Q-dist: 1.04% Issue and redemption price If, on any one order day, the sum of subscriptions and redemptions of units in the sub-fund result in a net inflow or outflow, the sub-fund s valuation net asset value will be increased or reduced accordingly (swinging single pricing). The maximum adjustment level amounts to 2% of the valuation net asset value. Incorporated into this are the incidental costs (bid/ask spread, brokerage at standard market rates, commissions, duties, etc.) that accrue to the sub-fund on average from the investment of a net inflow or from the sale of a portion of investments corresponding to the net outflow. The adjustment results in an increase of the valuation net asset value if net movements lead to an increase in the number of units in the sub-fund. Conversely, the adjustment results in a reduction of the valuation net asset value if net movements lead to a reduction in the number of units. The net asset value calculated on the basis of swinging single pricing is thus a modified net asset value. Exchange rates EUR 1 = CHF GBP 1 = CHF USD 1 = CHF UBS (CH) Suisse 65 (CHF) Semi-Annual Report as of 28 February 2018

21 UBS Fund Management (Switzerland) AG Aeschenplatz Basel UBS The key symbol and UBS are among the registered and unregistered trademarks of UBS. All rights reserved. Also available in German D/E-1801

Semi-Annual Report 2015/2016

Asset management UBS Funds Semi-Annual Report 2015/2016 Investment Fund under Swiss Law with multiple sub-funds (umbrella fund) Unaudited semi-annual report as of 29 February 2016 UBS (CH) Suisse 25 (CHF)