Diversify your wealth internationally

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UBS Swiss Financial Advisers

Diversify your wealth –

internationally

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Why invest

abroad?

There are many good reasons, especially nowadays, why you as a US investor* may be looking to diversify your wealth internationally.

An international portfolio means access to interesting investment opportunities around the world, many of which are not easily available from the United States. By providing geographical and currency diversification, it can also help increase the safety of your assets and provide a downside hedge against developments in US markets and/or the US dollar.

At UBS Swiss Financial Advisers, we cater exclusively to the needs of US investors looking to diversify their assets outside the US. Working with us offers you a safe, easy and tax- compliant way to build an international portfolio custodied in Switzerland.

If you are considering this option, we invite you to get to know us. When it comes to international diversification, we think you will find that we are the right partner for your needs.

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The advantages of an

international portfolio

The last few years have seen immense changes in the economic and investment landscape, both in the United States and around the world. Much of what we used to take for granted as investors has been challenged. At the same time new opportunities are being created, many in areas we might not have previously considered.

Like many US investors, you may as a consequence be looking to diversify your assets abroad. This can include investing a portion of your wealth in an international portfolio booked outside of the US. We believe there are several good, and legitimate, reasons to do so.

Greater access to opportunities

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Switzerland: Stability, experience and quality

When considering where to diversify your wealth, economic stability and security will be among your top priorities. As one of the world's most successful economies, with a consistently strong currency and a history of financial stability, Switzerland will certainly meet your criteria. Its long traditions of democracy and neutrality have helped to ensure political and social stability as well.

Quality has long characterized the Swiss way of working. This is as true for the Swiss financial sector as it is for the country's world-renowned manufactures. With their emphasis on excellence, their strong international networks and their reputation for reliability, Swiss banks have historically been able to build successful, long-term relationships with clients around the world. Banking in Switzerland means experiencing, and benefiting from, this drive to provide the best possible service.

A prudent hedge

Diversifying a portion of your wealth through an international portfolio is also prudent. It provides currency diversification, allowing you to reduce your exposure to possible US dollar depreciation or volatility. Booking outside the US means geographical diversification as well, which can increase the security of your assets and hedge against downward movements in US markets.

Setting up a second center

For these and other reasons, setting up a second center of finance outside the US can make good sense for you and your family.

The good news is that this can be done in a fully tax- compliant, straightforward and easy manner. It simply requires the right partner.

0% -40% 40% 80% 120% 20% -20% 60% 100% 2001 International Equity 2002 2003 2004 2005 2006 2007 2008 2009 2010 North America Equity

Equity Return Comparison

North America vs International Equity (last ten years of globalization)

Source: Bloomberg 1971 1971 1971 1976 1981 1986 1991 1996 2001 2006 2011 1.5 0.5 2.5 3.5 4.5

Foreign Currency Exchange USD vs CHF

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UBS Swiss Financial Advisers ( UBS-SFA ) is an investment adviser based in Switzerland. We do one thing and one thing only: help US investors take advantage of the opportunities available to them to diversify their wealth internationally.

Products and expertise for US investors

Our specialty is discretionary mandates where you delegate the management of your assets to our team of professionals. We also offer advisory and specialty mandates ( see page 8 ). Because we only work with US investors, you can be sure that your adviser and our whole organization fully understand your situation and needs.

You can have confidence in our expertise. We are registered both with the US Securities and Exchange Commission ( SEC ) and the Swiss Financial Market Supervisory Authority ( FINMA ). This means we are fully conversant with all relevant US regulations and restrictions, particularly as they pertain to US investors investing abroad. Our experts also know how to craft an international portfolio to complement an already existing US strategy. Furthermore, our dedicated tax department provides you with all the information and reporting required by the IRS.

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At UBS-SFA, we believe banking is about relationships and

close cooperation based on mutual trust and understanding.

Our goal is to provide you the best possible conditions for

success. While no one can guarantee the performance of a

portfolio, I can guarantee you that we will do everything

we can to best support you in reaching your financial goals.

René Marty, Chief Executive Officer, UBS Swiss Financial Advisers

A long tradition of wealth management

As a wholly-owned subsidiary of UBS, we are associated not only with the biggest bank in Switzerland, but also one of the best capitalized banks in the world. A premiere global financial institution, UBS looks back on some 150 years of experience serving the needs of wealthy individuals. Today, it also offers top-tier investment banking and global asset management services.

The best products from around the world

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Your choice – our broad

international offering

Discretionary mandates

Our international portfolios are designed to help you take advantage of geographical, currency and issuer diversification. At the heart of our offering you will find our mandates, which we describe below.

Discretionary mandates

With a discretionary mandate, after agreeing on your overall strategy and investment expectations, you delegate the day- to-day management of your assets to us.

Each discretionary mandate is based on a strategic asset allocation built on three parameters: geography, currency and your preferred investment strategy ( determined among other things by your personal risk appetite ). This gives you a wide choice of basic allocations from which to start. As our mandates are fully customizable, you can choose at

and asset classes in your portfolio, based on your own experience and market expectations.

Advisory mandates

For those with the time and inclination to stay on top of global market developments on a regular basis, we also offer advisory mandates. With an advisory mandate you have access to the research and investment advice of our professionals, while ultimately making the final investment decisions yourself.

Specialty mandates

We also offer two specialty mandates:

Cash mandate provides customized cash management for

your liquidity needs.

Precious metals mandate provides a hedge against

UBS Portfolio Management Global

UBS Portfolio Management International

UBS Portfolio Management Asian Opportunities

UBS Portfolio Strategy International

UBS Managed Fund Portfolio

Geographical diversification

Investment worldwide: North America, West- ern Europe, Asia Pacific, Emerging Markets

Investment outside North America: Western Europe, Asia Pacific, Emerging Markets

Investment in Asia: Asia-Pacific region ( ex-Japan )

Main currency diversification

USD, EUR, CHF, GBP, JPY, CAD, SEK, NOK, AUD, HKD, SGD

EUR, CHF, GBP, JPY, CAD, SEK, NOK, AUD, HKD, SGD

South Korean won, Taiwanese dollar, Hongkong dollar, Chinese renminbi, Indian rupee, Singapore dollar, Malaysian ringgit

EUR, CHF, GBP, JPY

USD, EUR, CHF, GBP, JPY

Strategies

Fixed Income, Income, Yield, Balanced, Growth, Equity

Strategies

Equity StrategiesFixed Income, Income, Yield, Balanced, Growth, Equity

Strategies

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The UBS-SFA investment process

The strength of the mandate approach lies in our structured investment process. This process combines a top-down asset allocation with bottom-up security selection and is designed to generate above-average, sustain-able, long-term performance with acceptable levels of risk.

Our Investment Management team is staffed by more than 15 highly experienced, fulltime financial professionals, who design our high quality, well-diversified portfolios.

The investment process is overseen by an Investment Committee made up of six financial professionals with extensive investment and banking experience. This committee includes the CEO and CIO of UBS-SFA. Together, these experts define the strategic and tactical asset allocation for each mandate. Working with our large network of international financial analysts, they find and select the securities that best reflect the tactical allocation ( always with an eye to the specific needs of US investors ). These are then provided to you and your adviser to form the basis of your own, customized portfolio.

UBS Portfolio Management Global

UBS Portfolio Management International

UBS Portfolio Management Asian Opportunities

UBS Portfolio Strategy International

UBS Managed Fund Portfolio

Investment in Asia: Asia-Pacific region ( ex-Japan )

USD, EUR, CHF, GBP, JPY, CAD, SEK, NOK, AUD, HKD, SGD

EUR, CHF, GBP, JPY, CAD, SEK, NOK, AUD, HKD, SGD

South Korean won, Taiwanese dollar, Hongkong dollar, Chinese renminbi, Indian rupee, Singapore dollar, Malaysian ringgit

EUR, CHF, GBP, JPY

USD, EUR, CHF, GBP, JPY

Strategies

Equity StrategiesFixed Income, Income, Yield, Balanced, Growth, Equity

Strategies

Fixed Income, Income, Yield, Balanced, Growth, Equity World GDP Comparison – 2010 20% North America 6% Rest of world 6% Japan 20% European Union 28% Emerging Asia

20% Other emerging and developing countries

Source: IMF, UBS WMR

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Working with UBS-SFA is very easy. Other than the fact that your account will be outside the United States, you will find it to be hardly any different than when working with your US financial institution.

A strong relationship with your adviser

The basis of your relationship with us is your personal adviser. Based on in-depth, in person discussions with you about your financial situation, your goals, your risk parameters, and anything else pertinent to your situation, you and your adviser will develop and agree on your preferred strategy. This forms the basis of your portfolio.

Your adviser will then see to it that the portfolio is imple-mented in the most efficient way and according to your wishes. As part of our standard process, we also constantly monitor the performance and risk profile of your investments. In regular reviews with you, we look to see if any changes need to be made, either due to developments in the markets or in your personal situation. If anything comes up which requires more immediate action – either an opportunity or a concern – we will be in touch with you right away.

Working together –

it’s

easier than you think

Easy access and secure communication

Although we are based in Zurich, you will find that we are quite close to you. Your adviser travels often to the United States and will be available to meet you in person. He or she is also always reachable by phone. When you open an account with us, you will in addition be given access to our secure online system. With it, you have a complete overview of all your assets and your portfolio performance any time you want.

Would you like to know more?

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Making it easy to

file your taxes

Tax compliance in the US can be a difficult task, especially for individuals with international investments. At UBS-SFA, we make it as easy as possible for you to prepare your US federal tax return by providing you ( or your accountant ) the following information:

IRS Form 1099

You will automatically receive an annual IRS Form 1099 from us.

FBAR reporting

You will automatically receive the information required for completing the Treasury Department's Report of Foreign Bank Accounts ( FBAR Report ).

Detailed tax reports

Upon your request, we can provide detailed annual and quarterly tax reports. These contain all of the IRS Form 1099 information plus additional information which can be of use in filing, especially if you have a complex portfolio. This includes:

• Capital gain and loss information on each sale. •

The amount of foreign exchange gain or loss on invest-ment and on move The amount of foreign exchange gain or loss on invest-ment in your cash accounts. • Allocation of gain for more complex tax holdings such

as foreign bonds and market discount bonds.

Tax reclaim

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Important Information This publication is for your information only and is not intended as an offer, or a solicitation of an offer, to buy or sell any investment instrument.

Although all information and opinions expressed in this presentation were obtained from sources believed to be reliable and in good faith, no representation or warranty, express or implied, is made as to its accuracy or completeness. All information and opinions as well as any prices indicated are subject to change without notice. At any time, UBS Swiss Financial Advisers AG ( "UBS-SFA" ) and other companies in the UBS group ( or employees thereof ) may have a long or short position, or deal as principal or agent, in relevant securities or provide advisory or other services to the issuer of relevant securities or to a company connected with an issuer of relevant securities.

Some investment instruments may not be readily realizable since the market in these instruments is illiquid. Valuation of these instruments and identifying as well as quantify-ing the risk to which you are exposed may also be difficult. Investments in securities are not guaranteed by UBS-SFA. Some investments may be subject to sudden and large falls in value and on realization you may receive back less than you invested or may be required to pay more. Changes in FX rates may have an adverse effect on the price, value or income of an investment. Be aware that past performance of an investment instrument, an investment strategy or an index is not an indication of its future per-formance. UBS-SFA is of necessity unable to take into account the particular tax implications of an investment instrument and therefore recommends that you take specific advice on that from a specialized tax adviser. This document may not be reproduced or copies circulated without prior authority of UBS-SFA.

UBS Swiss Financial Advisers AG Loewenstrasse 49

8001 Zurich Switzerland

Contact

us

If you have any questions or are interested in working with us, simply contact our team in Zurich.

Diversify your wealth internationally

a

b

Diversify your wealth –

internationally

Contents

Why invest

abroad?

The advantages of an

international portfolio

At UBS-SFA, we believe banking is about relationships and

close cooperation based on mutual trust and understanding.

Our goal is to provide you the best possible conditions for

success. While no one can guarantee the performance of a

portfolio, I can guarantee you that we will do everything

we can to best support you in reaching your financial goals.

Your choice – our broad

international offering

Working together –

it’s

easier than you think

Making it easy to

file your taxes

a

b

Contact

us