Global Sustainable Equity Strategy

Wealth Management STRICTLY CONFIDENTIAL

February 2015

Seeking value through sustainable investing

Section 1

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Generations of Sustainable Investing

Phase Goal Motivation Primary Techniques

Negative Screening • Avoid investments in companies that are not compatible with mission and values

• Align investments with values or mission

• Exclusionary screening to remove controversial industries such as tobacco, alcohol and gambling

Positive Screening • Use material sustainability factors to improve performance

• Generate alpha

• Manage risk

• Use sustainability factors to identify companies that are expected to outperform

From values-based to value-creating

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• Built for "asset light" companies

• Market value is a multiple of book value

• Built for companies with physical assets

• Book value = market value

Modern sustainable investing: Extension of the Mosaic Theory

Traditional Investment ProcessBased on Security Analysis (1934)1

Modern Sustainable Investment ProcessBased on evolution of company strategy

Financial Analysis

Valuation

Qualitative Assessment

Management Interviews

Financial Analysis

Valuation

Qualitative Assessment

Management Interviews

Shared Value

Material Non-Financial Factors

+

1 Security Analysis, Benjamin Graham and David Dodd (1934)

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Sustainability improves competitive position and returns

• Sustainability = stronger business management

• Shared value = creates value inside and outside the company

• Modern way to manage all corporate resources

Energy use

Water use

Employeehealth

Workersafety

Employeeskills

Supplieraccess andviability

Impact on Environment

Companyproductivity

Quality and productivity

Lower costs

Improved supply chain

Note: Diagram from “Creating Shared Value” Article, Michael E. Porter and Mark R. Kramer, Harvard Business Review, January 2011

55

$0

$5

$10

$15

$20

$25

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Low sustainability

High sustainability

Highly sustainable companies outcompete and outperform

Note: The “High Sustainability group,” as defined by the study’s authors (Harvard Business School 2011, Professors Eccles, Ioannou, Serafeim in The Impact of a Corporate Culture of Sustainability on Corporate Behavior and Performance) are companies that adopted all or most of certain environmental and social policies, outperformed the “Low Sustainability group,” as defined by companies that adopted almost none of these policies. For illustrative purposes only. This does not represent the performance of any particular investment, and does not take into consideration any applicable fees, taxes or expenses.

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Growth of $1 invested in an equally weighted portfolio of high sustainability firms vs. low sustainability firms

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Emergence of sustainable accounting standards

Source: Sustainability Accounting Standards Board (SASB), www.sasb.org.

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• Material information should be available to all investors

• Through 2016, Sustainability Accounting Standards Board (SASB) is developing material, non-financial, sustainability accounting standards

• Extends corporate disclosure to environmental, social and governance (ESG) factors

• Complements financial accounting standards

• Key Performance Indicators (KPI) listed in the SASB Materiality Map™ > 80 industries in 10 sectors

• End game - companies begin disclosing data in mandatory SEC filings (Form 10-K and 20-F), early adopters 2015

• Our UBS Sustainability database was developed in line with SASB Materiality Map™

Leader in sustainability data

Section 2

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UBS Sustainability proprietary databaseOur industry specific model uses economically relevant KPIs to score companies

Environmental Social Governance

Measures company level impact on the environment relative to

competitors in the same industry

Measures the company’s commitment to social issues in its dealings with employees,

suppliers, and local communities

Measures the company’s corporate governance structures and policies

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Sustainability score

* Carbon emissions

* Water use & recycling

* Energy efficiency initiatives

* Renewable energy use plan

* Hazardous waste reduction

* Employee turnover

* Employee safety

* Supply chain monitoring

* Customer data security

* Community reputation policy

* Sustainability reporting

* Political donations & risk

* Anti bribery ethics policy

* % of women on board

* % of independent directors

99

0.00 0.02 0.04 0.06 0.08 0.10 0.12

energy intensity per vehicle

CO2 intensity per vehicle

employee turnover %

ethics policy

lost time incident rate

% employees unionized

supplier facilities audited

total comp pd to execs

employee training hrs

total ghg emissions

ceo duality

independent directors

# of women on board

CSR committee

human rights policy

Autos KPIs Weight %

KPIs Examples: Autos Industry specific relevant Key Performance Indicators

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Source: UBS Sustainability Database 2014

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UBS Sustainability Database: Comprehensive Coverage

Source: UBS Global Asset Management, 2014

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Covers a majority of MSCI ACWI companies and evaluates sector specific KPIs

Sector # Companies

Consumer Discretionary 340

Consumer Staples 209

Energy 176

Financials 542

Health Care 146

Industrials 375

Information Technology 218

Materials 239

Telecommunication Services 91

Utilities 134

Grand Total 2,470

Key performance indicators modeled after the Sustainability Accounting Standards Board's (SASB) Materiality Map ™

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UBS Sustainability Database Example: Tech Hardware

• Energy, CO2 emissions (direct and indirect)

• Compensation practices

• Waste, water usage, patents, R&D

• Ethics, bribery, reputational factors

• Supply chain management factors

Key Components

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This example shows the output for Technology Hardware and Equipment within the Technology sector

Source: UBS Sustainability Database (2014) ratings are broken down into deciles of 1-10 where 10 is the best and 1 is the worst. Note: For illustrative purposes only. Not a recommendation to buy or sell any particular security. Companies presented here are all of the Technology Hardware companies within the Information Technology sector within the UBS Sustainability Database.

Companies Decile

EMC Hewlett Packard Apple FujiFilm Sandisk

Lenovo Acer Seagate

Asustek

10 / 9

Canon Samsung Electronic Western Digital NetApp

Ricoh NEC Compal Electron.

8 / 7 / 6

Brother Industries Konica Minolta Advantech

Quanta Computer Wistron Inventec

5 / 4

HTC Corporation Pegatron Catcher Tech

Lite-On Tech Foxconn Tech

3 / 2 / 1

Our investment philosophy and process

Section 3

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Sustainable Equity Team

1 Industry experience 7 yearsNote: updated annually in March

TEAM HEAD,SR PORTFOLIOMANAGER

Bruno BertocciChicago

Yrs experience: 34Years with UBS: 16

Oberlin College, ABHarvard Bus. School, MBA

PORTFOLIOMANAGER

Michael RileyZurich

Yrs experience: 141

Joined UBS 3/2013

Indiana Univ., BSIndiana Univ., MBACPA, CFA

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Investment professionals

Local equity trading Currency specialists Independent Risk Management

Supported by the global resources of UBS Global Asset Management

Global Research platform of 70+ analysts Regional Analysts and 6 Global Sector Specialists

Applied Research

20 traders in London, Zurich, Chicago, Singapore

6 experienced FX traders plus 4 spot order generators in London

12 professionals utilizing Global Risk System in London, Zurich, NY, Chicago

16 quantitative and fundamental research analysts in London, Zurich, NY, Chicago, Tokyo

EQUITY STRATEGIST

Shari GilfillanChicago

Yrs experience: 21Years with UBS: 18

Miami Univ., BS DePaul Univ., MBA

• Specialist, conviction-based decision-making team within a global research platform

• Experienced professionals with strong track records

EQUITY STRATEGIST

Dinah A. KoehlerNew York

Yrs experience: 21Joined UBS 2/2015

Wellesley College , BATufts University , MAHarvard University , ScD

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We source our best ideas across the entire firmLeveraging all of our resources

Small and MidcapEquity

GlobalSector

Specialists

US Equity Asian Equity

Emerging Markets

European Equity

Japan Equity

GlobalSustainable

Portfolio

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Adherence to same fundamental investment philosophy over 30+ years

Price

Time

Sell candidate

Buy candidate

Intrinsicvalue

• Maximize superior research

• Make fewer, better decisions

• Remain patient over long time horizon

• Maintain discipline

• Continuously improve

How we succeed:

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Long history of price-to-intrinsic value investing

• Intrinsic value is the present value of all future free cash flows available to shareholders

• Discrepancies between market price and our estimate of intrinsic value arise from market behavior and can provide opportunities to outperform

What defines us:

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Disciplined idea generation: Two simultaneous factors Positive screening… broadest opportunity set at all times

Su

stain

ab

ilit

y r

an

kin

gs

High

Low

Expensive Attractive

Valuation

Primary FOCUS

StayENGAGED

Watch &AVOID

Monitor &PATIENCE

For illustrative purposes only

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Sustainability champion: Chimerix

• A development stage biotech company dedicated to discovering and developing oral antivirals in areas of high unmet need (ex. preventing infection for bone marrow transplants)

Chimerix - company description

• Recent use of the drug to treat ebola could result in more rapid regulatory approval timelines (using the "animal rule") to facilitate treatment of patients

• Has received fast track designation from the FDA for their drug to treat CMV, AdV and smallpox (threat of bioterror or accidental release)

Chimerix delivers real impact

Healthcare and Demographics – the opportunity

• First indication is to treat CMV in adult stem cell transplant patients, with data coming mid-2015, and additional indications to follow

• We believe that the drug is more de-risked than the street is giving it credit for (>1,000 patient safety database and short course of therapy) and has greater market potential

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For illustrative purposes only. This information is not a recommendation to purchase or sell any particular security.Note: Stock listed represents one of top two contributors to active risk per Barra as of January 31, 2015. Based on representative account relative to MSCI World Index. 2 Source: POP, GERS, UBS Global Asset Management. Note: Supplemental information to the Global Sustainable Equity Performance Composite (formerly called Global Equity Eco Performance Composite).

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Sustainability champion: Alnylam Pharmaceuticals

• Developing therapeutics or new class of innovative medicines based on breakthrough discovery in biology known as RNAi (interfering RNA technology) that silences disease-causing genes

Alnylam - company description

• This product and others could be biggest advance in heart disease / cholesterol treatment since invention of statins

• Discovering disease causing genes at an increasing rate

• Goal of building sustainable pipeline of innovative medicines that has broad and significant impact

Alnylam delivers real impact

Healthcare and Demographics – the opportunity

• Clinical trials of PCSK9, first of new class of products that lower cholesterol using its RNAi technology are producing good data

• We believe Alnylam's products are superior to competitors because of its novel technology and delivery mechanism

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For illustrative purposes only. This information is not a recommendation to purchase or sell any particular security.Note: Stock listed represents one of top two contributors to active risk per Barra as of January 31, 2015. Based on representative account relative to MSCI World Index. 2 Source: POP, GERS, UBS Global Asset Management. Note: Supplemental information to the Global Sustainable Equity Performance Composite (formerly called Global Equity Eco Performance Composite).

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Global Sustainable Equity: Strategy summary January 31, 2015

Holdings and portfolio characteristics are subject to change.1 Stocks listed represent the top 10 largest contributors to active risk per Barra. Based on representative account relative to MSCI World Index. 2 Typical active risk data, or deviation of returns from the benchmark, is indicative only. The actual active risk level will vary according to market conditions and our views. Active risk is an ex-ante forecast calculated using BARRA or other suitable system based on the final valuations of the last working day of each month. Active risk levels are reported to clients on a quarterly basis.Source: POP, GERS, UBS Global Asset Management.Note: Supplemental information to the Global Sustainable Equity Performance Composite (formerly called Global Equity Eco Performance Composite).

Country Risk factors 2Industry groups

Global Sustainable Equity Portfolio

StocksActive Risk % 1

Chimerix +0.29

Alnylam Pharmaceuticals +0.25

Heidelbergcement +0.22 Acorda Therapeutics +0.21 Broadcom +0.21 Taiwan Semiconductor +0.19 Applied Materials +0.19 NXP Semiconductors +0.19 Schneider Electric +0.18 KDDI +0.17

Energy efficiency 29.1%

Social Improv. 34.1% Environment 21.5% Health & Demog 15.3%

Semiconductors & Equipment +8.6 Biotechnology +4.5 Multiline Retail +2.9 Insurance +2.5 Automobiles +2.4

Pharmaceuticals -3.5 Oil, Gas & Consumable Fuels -2.3 Food & Staples Retailing -2.2

Beverages -2.2 Internet Software & Services -2.0

Japan +4.0 Norway +2.5 Netherlands +2.1 Taiwan +2.0 Spain +1.9

United States -8.3 Canada -3.3 United Kingdom -2.3 Australia -2.2 Switzerland -0.7

BARRA GEM2L Active risk 3.11% Beta 1.07

Active Share 89.57%

UBS Global AM Short-term model Active risk 3.23% Beta 1.09

Thematic exposure

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2020

Source: UBS Global Asset ManagementThe returns shown above are based on currently available information and are subject to revision. Past performance is no guarantee of future results. Performance figures are gross of fees. Please see the attached performance composite and additional disclosures for additional information.1 Information based on Institutional Global Sustainable Equity Composite Performance. Inception date as of 30 June 1997.2 Since inception standard deviation based on monthly logarithmic returns 3 Tracking error is defined as annualized standard deviation of the difference between the monthly logarithmic returns of the portfolio and its benchmark4 Information ratio is defined as the added value divided by the tracking error5 Benchmark is net dividend reinvestments since this is a portfolio run outside of the US

Data through January 31, 2015 (USD)

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Global Sustainable Equity Composite: Performance

Annualized

Month

Last 3

Months YTD 1 year 2 years 3 years 5 years 10 years

Since

inception1 Risk2

Track.

error3

Info

ratio4

Global Sustainable

Equity Composite -0.59% 0.87% -0.59% 11.52% 13.82% 15.06% 12.70% 7.49% 6.61% 17.22% 4.23% 0.33

MSCI World5 -1.81 -1.46 -1.81 7.00 11.44 12.91 10.73 6.08 5.22 16.16

Value added 1.22% 2.33% 1.22% 4.52% 2.38% 2.15% 1.96% 1.41% 1.39%

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Global Sustainable Equity: Attribution detail summaryRelative to the MSCI World Index2014 calendar year

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Active weight

(%)

Stock selection

(%)

Sector selection

(%)

Total effect

(%)

Active weight

(%)

Total effect

(%)

Sectors Stocks – top 5

Technology 4.78 1.11 0.30 1.41 NXP Semiconductors 1.80 0.68

Health Care 4.06 0.99 0.16 1.15 Broadcom 2.27 0.63

Financials -0.68 1.04 -0.04 1.00 Chimerix 1.71 0.61

Industrials -2.11 0.70 -0.06 0.65 Applied Materials 2.26 0.58

Telecom Services 0.27 0.36 -0.01 0.35 Acorda Therapeutics 2.39 0.57

Energy -4.44 -0.89 0.95 0.06

Consumer Discretionary 4.40 -0.20 0.12 -0.08 Stock – bottom 5

Materials 2.61 0.00 -0.20 -0.20 Amazon Com 1.30 -0.79

Consumer Staples -5.52 -0.27 -0.08 -0.34 Premier Oil 0.60 -0.76

Utilities -3.37 0.00 -0.36 -0.36 Lexicon Genetics 0.90 -0.67

Total 2.85 0.81 3.66 ServiceSource 0.45 -0.47

Teck Resources 0.38 -0.37

Performance attribution is supplemental to the Institutional Global Sustainable Equity Composite. Attribution is shown for a specific portfolio using Wilshire which is based on a varianced

based methodology and consists of 2 factors (sector allocation and stock selection). The holdings identified on this slide do not represent all of the securities purchased, sold or recommended for all advisory clients. Please contact us for additional information regarding the calculation methodology, as well as a list showing every portfolio holding's contribution to the overall portfolio's performance for the period. The returns shown above are based on currently available information and are subject to revision. Past performance is no guarantee of future results. Performance figures are gross of fees and in USD. Please see attached disclosure information.Note: Stocks represent the largest stock specific contributors and detractors from performance.

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Calendar year excess returns: Global Sustainable Equity

-0.19%

8.02%

0.97%0.38%

1.71%

2.99%2.53%

1.22%

-1%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

2008 2009 2010 2011 2012 2013 2014 YTD 2015

Active Return

Outperformed the index every calendar year in the last 6 years

Note: Total Annual Returns 2008-2014 and year to date through January 31, 2015 in USD. The returns shown above are based on currently available information and are subject to revision. Past performance is no guarantee of future results. Performance figures are gross of fees. Please see attached disclosure information. Excess returns calculated by subtracting benchmark returns from portfolio returns. Returns greater than one year annualized. Returns in USD. Benchmark used for excess return calculation is the MSCI World Index.

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Implemented fundamental approach to sustainability at end of 2007

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Excess returns: Global Sustainable Equity

-2

-1

0

1

2

3

4

5

6

Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14

Rolling three-year periods excess returnsAs of January 31, 2015

Note: Global Sustainable Composite inception date of June 30, 1997. The returns shown above are based on currently available information and are subject to revision. Past performance is no guarantee of future results. Performance figures are gross of fees. Please see attached disclosure information. Excess returns calculated by subtracting benchmark returns from portfolio returns. Returns greater than one year annualized. Returns in USD. Benchmark used for excess return calculation is the MSCI World Index.

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Implemented fundamental approach to sustainability at end of 2007

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Top holdings: Global Sustainable Equity

Thematic appeal for investors throughout the portfolio

Environment

Applied Materials 2.17%

• Strong management of water scarcity risks. Strategic focus on market for clean technology. Major provider of equipment to solar industry.

Procter & Gamble 2.07%

• Surpasses most peers in addressing the carbon footprints of its products. Strong innovation to respond growing consumer demand for natural & healthier household and personal products.

NXP Semiconductors 1.88%

• Provides high performance mixed signal and product solutions for smart phones and automobiles. Sustainability program includes green design initiatives and using fewer hazardous substances.

Energy efficiency

Broadcom 2.30%

• Leader in the development of standards for energy-efficient design of semiconductor solutions and set -top boxes. Efforts focus on conservation and efficiency. Committed to eliminate or minimize the use of hazardous materials.

Apple 2.19%

• Data centers are 100% powered by energy from renewable sources. Notable improvements in the company's management of labor issues and working conditions in its supply chain.

Heidelbergcement 2.07%

• Leader in using alternative energy to produce cement. founding member of Cement Sustainability Initiative.

Health and Demographics

Eli Lilly 2.35%

• Expanding access to healthcare where resources for medical care are scarce in developing countries and in emerging markets.

Acorda 1.85%

• Developing therapies for spinal cord injury & multiple sclerosis. Their drug, Ampryaimproves walking for people with multiple sclerosis.

United Health 1.77%

• Provides health benefit plans for large employers. Promotes access to healthcare, strives to find smart ways to promote healthier lives, and moving towards paperless communications.

Social Improvement

US Bancorp 2.76%

• Good lending growth and access to financing for small & medium size firms. Services tailored to under-banked market segments. Strong governance & risk awareness. Revitalizing communities.

KDDI Corp 2.41%

• Strict privacy & data security practices. Bridging the "digital divide" in developing countries & aiding customers with hearing or speaking difficulties.

Macys 1.91%

• Stringent vendor & supplier code of conduct. Have terminated suppliers if they don't meet code, quickly investigate any reports of child labor, sweatshops, etc.

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As of January 31, 2015. Information is supplemental to the Global Sustainable Equity Composite.Note: Stocks represent the 3 largest stock holdings within the themes of Environment, Energy Efficient, Health, Demographic and Social Improvement, relative to the MSCI World Index.

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• Dedicated Global Sustainable Equity research team and in-house governance function

• Leverage firm’s global equity analyst research platform and portfolio construction / risk tools

• Positive screening approach -- disciplined investment process combines fundamental valuation with sustainability analysis

• Leader in sustainability data -- our proprietary Sustainability ratings database has evolved and is constantly being enhanced

• 15+ year track record1

• Benefit from UBS’s cross-business commitment to Global Sustainable Equity

UBS Global Asset Management competitive advantages

1 Global Sustainable Equity (formerly called Global Equity SRI) strategy inception date - 30 June 1997.

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Appendix

Section 4

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Leading performance: High rankings over 3, 5 and 7 yearseVestment performance rankings: Annualized returns

Source: eVestment AllianceAs of December 31, 2014. The returns shown above are based on currently available information and are subject to revision. Past performance is no guarantee of future results. Performance figures are gross of fees. Please see attached disclosure information.eVestment and its affiliated entities (collectively, “eVestment”) collect information directly from investment management firms and other sources believed to be reliable; however, eVestmentdoes not guarantee or warrant the accuracy, timeliness, or completeness of the information provided and is not responsible for any errors or omissions. Performance results may be provided with additional disclosures available on eVestment’s systems and other important considerations such as fees that may be applicable. Not for general distribution. * All categories not necessarily included; Totals may not equal 100%. Copyright 2012-2013 eVestment, LLC. All Rights Reserved.

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Sustainable investing has become mainstream

Source: US SIF, The Forum for Sustainable and Responsible Investment. From the 2014 Report on Sustainable and Responsible Investing Trends in the United States.

SRI/ESG – No longer a 'niche' form of investment

• Robust size: 6.57 trillion of SRI assets represents 18% of the total $37 trillion invested assets in the US Market

• Rapid growth: AUM increase of 933% from 1995 to 2014

• In demand: In 2012, 60% of RFPs included ESG criteria. In 2014, 100% of RFPs included ESG criteria.

Growth of Sustainable & Responsible InvestmentInvested assets, USD billions

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6391,185

2,159 2,323 2,164 2,290

2,711 3,069

3,744

6,570

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

1995 1997 1999 2001 2003 2005 2007 2010 2012 2014

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Sustainable Equities Team is a responsible investor

UBS UBS Global Asset Management

Sustainable Equities Team

• UNEP Finance initiative

• UN Global Compact

• GRI disclosure, ISO 14001 Certified

• FTSE 4 Good Index member

• Values-Based Investment Group

• WM Sustainability Research

• UNPRI Signatory

• Carbon Disclosure Project Signatory

• Intl Corporate Governance Network member

• Equity holdings voted globally

• Global Head of Corporate Governance

• Continue building dedicated SRI team initially formed in 1996

• Investment products endorse sustainable and responsible investing

• Focus on long term sustainability growth themes

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State of the art portfolio construction and idea generationDedicated and systematic investment process

Fundamental Discipline

• Our differentiated investment view versus consensus

• Investment thesis milestones to monitor thesis over time

• GEVS (Global Equity Valuation System) tracks expected returnover time

Valuation Case

• Cash flow based valuation screens

• Static metrics based screens

• Tailored sector screens

Equity Research Platforms

Global Equity platform Emerging Markets platform Specialist Equities platform

Tools

• Valuation and Sustainability Quadrants

• Sustainability Database

• Credit Suisse HOLT

• POP -Portfolio Construction

Sustainability Analysis

• Positive screening for companies that meet environmental or social challenges and deliver impact

• Sustainability criteria assessment

• Exclude controversial companieswith > 5% of sales in defense, GMO, tobacco, alcohol, nuclear, gambling, adult entertainment, water bottles*

Portfolio Construction:

Risk aware, customized, disciplined, team driven

Portfolio:

Our best ideas

+

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Note: Exclusions comply with the United States Conference of Catholic Bishop’s (USCCB) Socially Responsible Investment Guidelines

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UBS Sustainable Equity Strategy Offering

Source: UBS Global Asset Management, 2015Footnote: New benchmarks for Global Sustainable Innovators and Emerging Markets Sustainable were introduced in 2014. All 3 core strategies have been rebranded. Global Sustainable is available on PWS and Access platforms. Global Sustainable Innovators, Emerging Markets Sustainable and Water are available as a separately managed account.

• The actively managed and more concentrated equity solution for thematicinvestments.

• UBS Water Strategy• UBS Climate Change

Strategy

UBS Strategy and other

Single theme strategies

• Global equity strategy of bottom-up best ideas selection of sustainable companies based on fundamental analysis, sustainability thesis and thematic exposure

• Invests very broadly across most industry sectors

• Number of stocks 65-90• All cap strategy (more large

companies)• Benchmark: MSCI World (r)• Up to 6% ex-ante tracking

error

Global Sustainable

• Global equity themestrategy (focus on sustainable pro-ducts & services of companies addressing resource constraints)

• Investment themes: Environmental and Social sustainability themes

• All cap strategy (more small & mid sized companies)

• Number of stocks 50-80• Benchmark: MSCI World

SMID Index• Up to 10% ex-ante tracking

error

Global Sustainable Innovators

• Emerging markets equity theme strategy of bottom-up best ideas selection of sustainable companies based on fundamental analysis, sustainability thesis and thematic exposure

• Invests very broadly, focusing on companies endorsing the goals of sustainable development in emerging markets

• All cap strategy• Number of stocks 50-80 • Benchmark: MSCI Emerging

Markets Index• Up to 10% ex-ante tracking

error

Emerging Markets Sustainable

Broad Sustainable Investment and multi theme strategies

One philosophy, 3 core strategies supplemented by single theme strategies

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• Integrate sustainability analysis and a long-term perspective within a rigorous fundamental investment framework

• Leverage firm’s equity research platforms and portfolio management tools to seek to deliver investment performance

• Identify business models that can create value

• Manage an attractive suite of UBS Global AM sustainability products for our clients that promote the goal of sustainable development

• Create a strong partnership with our clients by delivering our investment insights and access to key research conclusions across all of UBS

• Collaborate with other sustainability related investment teams across the firm in order to strengthen the commitment to sustainability and corporate responsibility at UBS

Sustainable Equities Team: Our mission

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Sustainability: Corporate commitment

• Environmental and social stewardship are part of our core values at UBS

• Robust environmental policy since 1993 that covers 5 core principles

• Strong track record in managing environmental challenges

– Responsible Supply Chain Guideline introduced in 2008

– UBS Climate Change Strategy implemented since 2006

– UBS Statement on Human Rights adopted in 2006

– UBS Position on Controversial Activities adopted in 2011

Internal Commitments External CommitmentsParticipant in the UN Global Compact since its inception in 2000

Founding member of the Wolfsberg Group in 1999

Independent assurance of the GRI (Global Reporting Initiative) based sustainability disclosure

Founder of the UBS Optimus Foundation

First environmental certification (ISO 14001) in 1999

Founding signatory of the Carbon Disclosure Project (CDP)

One of the first signatories of UN Environment Program Finance Initiative (UNEP FI) in 1992

UBS Global Asset Management signatory to Principles for Responsible Investment (PRI)

Global Initiative for Sustainability Ratingssteering committee

Sustainability Accounting Standards BoardTM

The Forum for Sustainable and Responsible Investing

GISR

We demonstrate and actively pursue our beliefs through a range of internal and external commitments and initiatives

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Environmental and human rights policy

Risk management

Business opportunities

Our employees

Management system and disclosure independently verified

Training and communication

Our operations

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Data as at January 31, 2015

Note: Assets represented are totals managed by the Sustainable Equity team worldwide. "Other" assets include smaller strategies such as Energy Efficiency and Agri.Source: UBS Global Asset Management

Global Sustainable Equity 595

Global Sustainable Innovators 156

Emerging Markets Sustainable 25

Water 62

Climate Change 52

Other 12

Total 902

Invested assets, USD million

Global Sustainable

Equity; 66.0%

Global Sustainable Innovators;

17.3%

Emerging Markets

Sustainable; 2.8% Water; 6.9%

Climate Change; 5.8%

Other; 1.3%

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Global Sustainable Equity Strategies: Business mix

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Sustainable companies address challenges …… With winning business models

Water scarcity

Energy efficiency

Water pollution

Air quality

Access to finance

Food quality

Climate change

Urbanization

Population growth

Sanitation

Food scarcity

Education

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Bruno Bertocci

• Bruno Bertocci is a member of the Global Equity team, which is responsible for constructing and managing global equity portfolios worldwide. He also has specific responsibilities for key US client relationships.

• Bruno is also the Team Head of the Sustainable Equities team and is the lead Portfolio Manager of the Global Equity Sustainable strategy. He leads the cross-divisional sustainability marketing strategy effort and is based in Chicago.

• Prior to joining UBS Global Asset Management in 1998, Bruno managed the global equity investment group at Stein Roe & Farnham.

• Previously, his positions included regional portfolio manager and global equity portfolio manager at Rockefeller & Co. Before assuming these roles, Bruno was based in London, then Hong Kong, as manager of that firm’s foreign offices. Bruno began his career at T.Rowe Price Associates as a US equity analyst.

• Bruno represents UBS on committees such as the Global Initiative for Sustainability Ratings, US SIF (Social Investment Forum), and SASB (Sustainability Accounting Standards Board).

Senior Portfolio ManagerManaging Director

Years of investment industry experience: 34

Education: Oberlin College (US), AB; Harvard Business School (US), MBA

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Shari Gilfillan

• Shari Gilfillan is a member of the Sustainable Equities team, which is responsible for constructing and managing equity funds for sustainable investors. Shari has primary responsibility for the overall product positioning and development of Sustainable Equity Strategies, as well as marketing and communication to existing and prospective clients globally.

• Shari also performs portfolio construction analysis to improve investment decisions, uses Barra risk management tools to align portfolio active risk with the top investment ideas and is the Deputy Portfolio Manager on the Global Sustainable Portfolio. She is based in Chicago.

• Prior to her current role, Shari was a Portfolio Manager on the Global Equities team for over ten years and was responsible for constructing and managing global equity portfolios.

• Prior to joining the firm in 1996, Shari was an Investment Associate at Northern Trust.

• Shari is a member of Women Investment Professionals and 100 Women in Hedge Funds.

Equity StrategistDirector

Years of investment industry experience: 21

Education: Miami University (US), BS; DePaul University (US), MBA

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Michael Riley, CFA, CPA

• Michael Riley is a member of the Sustainable Equities team , which is responsible for constructing and managing equity funds for sustainable investors. Michael is the lead Portfolio Manager for the Global Innovator, Emerging Markets Sustainable and Water portfolio's. He is based in Zurich.

• Prior to joining the firm in 2013, Michael was a Portfolio Manager at SAM Group / Robecowhere he was the lead Portfolio Manager for the Sustainable Climate Fund and deputy Portfolio Manager for the Smart Energy Fund. Michael also performed direct research for clean tech and industrial areas such as energy efficiency, renewable energies, energy infrastructure, industrial growth trends, smart grid, environmental protection, and water and agricultural developments.

• Michael is a member of the Swiss CFA Society and the CFA Institute.

Portfolio ManagerDirector

Years of investment industry experience: 7

Education: Indiana University (US), BS; Indiana University (US), MBA

3939

Dr. Dinah A. Koehler

• Dr. Dinah A. Koehler joined UBS Global Asset Management in February 2015 and is a member of the Sustainable Equities team. Dinah has primary responsibility for the overall product positioning and development of Sustainable Equity Strategies, as well as marketing and communication to existing and prospective clients globally.

• Dinah is a recognized researcher on corporate sustainability. She has worked in and advised large global corporations, national governments and international organizations on sustainability issues. She won the 2005 Academy of Management Organization and the Natural Environment Division’s Best Dissertation Prize. Dinah has been invited to present her research at University of Michigan, Yale, the Wharton School, Columbia and Harvard and has published in peer-reviewed journals and books. She has advised Harvard and Wharton on academic programs and research databases related to enterprise sustainability.

• Prior to joining UBS Global Asset Management, Dinah worked at Deloitte, The Conference Board, the US EPA’s Office of Research and Development and Wharton.

Equity StrategistDirector

Years of investment industry experience: 21

Education: Wellesley College (US), BA; Tufts University (US), MA; Harvard University (US), ScD

4040

Global Sustainable Equity Composite

US-I, US-P (RU)

Schedule of composite performance

4141

Disclaimer

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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 orother specific product. Although all information and opinions expressed in this document were obtained from sources believed to be reliableand in good faith, no representation or warranty, express or implied, is made as to its accuracy or completeness. All information and opinionsas well as any figures indicated herein are subject to change without notice. At any time UBS AG ("UBS") and other companies in the UBSgroup (or employees thereof) may have a long or short position, or deal as principal or agent, in relevant securities or provide advisory orother services to the issuer of relevant securities or to a company connected with an issuer. Some investments may not be readily realizablesince the market in the securities is illiquid and therefore valuing the investment and identifying the risk to which you are exposed may bedifficult to quantify. Past performance of investments is not a guarantee of future results and the value of investments may fluctuate overtime. There is no guarantee that investment objectives risk or return targets discussed in this presentation will be received or attained.

The model portfolio's performance is based on portfolios managed by UBS Bank (Canada). Performance differences in client's portfolios mayarise for a variety of reasons including differences in timing of transactions and execution prices.

For clients and prospective clients of UBS Bank (Canada), please note that this presentation has no regard to the specific investmentobjectives, financial situation or particular needs of any recipient. Neither UBS Bank (Canada) nor UBS Investment Management Canada Inc.is acting as an adviser or fiduciary to or for any recipient of this report unless otherwise agreed in writing. Not all products or services may beavailable at UBS Bank (Canada). Some products and services may be legally restricted for residents of certain countries. Should you have anyquestions, please contact UBS Bank (Canada) and ask to speak to a member of our Wealth Management Team.

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