investing in emerging markets_en_1135050[1]

8/13/2019 Investing in Emerging Markets_en_1135050[1]

1/7

CIO WM Research 9 December 2013

Investing in emerging marketsUkraine: Little direct exposure toEM assets

The Ukrainian government's decision to suspend the EU-UkraineAssociation Agreement has led to an escalation of political tensions

in the country, leading to a potentially protracted stalemate

situation. The near-term outlook for the Ukraine is thus clouded

by uncertainty, given an already weak domestic economy, a fragile

external position, presidential elections next year, and ongoing

political protests.

The developments in the Ukraine are of broader geo-politicalsignificance for the region, but the direct overall asset class exposure

for Emerging Markets (EM) is not material. The largest exposure of

EM assets overall is via Ukraine sovereign bonds which make up 3%

of the JP Morgan EMBI Global Diversified Index. These are of a highly

speculative nature and may therefore contribute to relatively higher

volatility for EM sovereign bonds than for EM corporate bonds on an

index level, given only a 1.2% Ukraine exposure to the JP Morgan

CEMBI Broad Diversified Index. Ukrainian bonds are not covered by

CIO Research.

On the EM equities side, there is no impact from any direct exposure.The Ukraine is not part of the MSCI Emerging Markets index, the

leading EM equity index. The most important potential indirect

impact on EM equities is via Russian equities, which make up 5.8%

of the MSCI EM. While Gazproms sales may be affected, we regard

the impact as manageable and maintain Russia as one of our

most preferred EM equity markets, given its solid external position

in a tapering environment, particularly versus our least preferred

markets in the EMEA region, South Africa and Turkey.

The indirect impact of the Ukraine on EM assets overall is viaRussian corporate bonds and equities of companies with exposure

to the Ukraine. The level of disclosure varies widely from company

to company. VTB, Gazprombank, Sberbank and VEB which are

quasi-sovereign Russian banks along with Gazprom have recently

attracted particular attention in relation to their Ukrainian exposure.

We see their overall exposure as manageable. Should headline noise

around the Ukraine persist, we would not rule out seeing a certain

exacerbation in volatility in Russian corporate bonds.

Kilian Reber, analyst, UBS [email protected]

Tatiana Boroditskaya, analyst, UBS [email protected]

Serhan Gok, analyst, UBS [email protected]

Rudolf Leemann, analyst, UBS [email protected]

Related reports:

Emerging Markets Bond List, published on a bi-weekly basis

Fig. 1: The Ukraine faces a dire economicoutlookReal GDP growth (yoy%) and current accountbalance (% of GDP), including IMF projections

-20

-15

-10

-5

0

5

10

15

2000 2002 2004 2006 2008 2010 2012 2014E 2016E 2018E

Real GDP growth (yoy%) Current account balance (% of GDP)

Source: IMF, UBS, 6 December 2013

Fig. 2: Markets pricing in rising risks for theUkraineSpreads over US Treasuries, in basis points

0

500

1'000

1'500

2'000

2'500

3'000

3'500

2006 2007 2008 2009 2010 2011 2012

EM sovereigns Ukraine sovereign

Source: Bloomberg, UBS, 6 December 2013

This report has been prepared by UBS AG. Please see important disclaimers and disclosures that begin on page 5. Past performance is no indication of future performance. The

market prices provided are closing prices on the respective principal stock exchange. This applies to all performance charts and tables in this publication.


2/7

The Ukrainian government's last minute decision to suspend the EU-

Ukraine Association Agreement has led to an escalation of political ten-

sions in the country, leading to a potentially protracted stalemate situation.

Uncertainty is high and the Ukraines outlook is clouded by a weak domesticeconomy, a fragile external position, presidential elections next year, and

ongoing political protests. Rating agencies have been downgrading the

Ukraine sovereign over recent weeks, with the ratings currently standing at

Caa1 (Moodys) and B- (S&P and Fitch), all with negative rating outlooks.

The rating agencies point out that key drivers for the downgrades have

been the Ukraine's increasingly fragile external financing position, based on

rapidly falling foreign exchange reserves, as well as heightened constraints

on the sovereign's ability to borrow in foreign currency, and broad-based

political uncertainty. Ukraine bonds are not covered by CIO Research.

The developments in the Ukraine are of broader geo-political significance

for the region, but the direct exposure for EM assets overall is not material.Below, we first give our conclusions for EM assets as a whole, and then go

into the details for EM corporate bond issuers.

Overall impact on EM bonds is limited

The largest direct impact is on EM sovereign bonds, of which the Ukraine

makes up 3% in the JP Morgan EMBI Global Diversified sovereign bond

index, whereas it makes up 1.2% in the JP Morgan CEMBI Broad Diver-

sified corporate bond index. Given the highly speculative nature of Ukraine

sovereign bonds, the situation in Ukraine should keep EM sovereign bonds

slightly more volatile - other things being equal - than EM corporate bonds.

While CIO WM Research does not cover Ukrainian sovereign bonds, a

long-term sovereign default study from Moody's ('Sovereign Default and

Recovery Rates, 1983-2010', published by Moody's on 10 May 2011)

shows that, on average, the Caa-C rating bucket has exhibited a cumulative

default rate of 23.6% over a period of 1 year for sovereign issuers. The

Ukraine situation therefore leads to a slightly higher tail-risk in EM sovereign

bonds compared to EM corporate bonds.

Overall impact on EM equities is small

On the EM equities side, there is little potential impact from any direct

exposure. The Ukraine is not part of the MSCI Emerging Markets index. It is

part of the MSCI Frontier Markets, but only makes up 1.13% of the whole

index, according to Bloomberg data. The most important potential indirect

impact on EM equities is via Russian equities, which make up 5.8% of the

MSCI EM, of which Gazprom (1.25% of the MSCI EM) which has material

exposure to the Ukraine, makes up 22%.

While the index heavy weight Gazprom may be negatively impacted from

a natural gas price discount offer to Ukraine, we expect the impact to be

manageable (see our comments on Gazprom further below). This does not

change our most preferred status for Russia as an EM equity market. We

reiterate that our preference is based on (i) the resilience of the Russian

economy and the rouble to Fed tapering, particularly relative to its more

vulnerable EM peers South Africa and Turkey, (ii) the attractive valuation of

Russian equities on a PE and PB basis relative to the MSCI EM, and (iii) the

high dividend yield of the Russian equity market.

Table 1: Little direct Ukraine exposure for EMassetsUkraine exposure in major EM benchmarks

Asset class benchmark Ukraine share (%)

EMBI Global Div ersifie d 3%

C EM BI B ro ad D iv er si fi ed 1 .2 %

GBI-EM 0%

MSCI EM 0%

MSCI Frontier 0.13%

FXELMI+ 0%

Bonds

Eq.

Source: JP Morgan, MSCI, Bloomberg, UBS, 6 December 2013

Investing in emerging markets

UBS CIO WM Research 9 December 2013


3/7

Issuer views: Russian corporate bonds

Below we look at Russian companies under our coverage and consider theirexisting exposure to Ukraine.

Oil and gas

Within the Russian oil and gas sector, Gazprom's exposure to Ukraine

is the most visible. Gazprom's exposure to the Ukraine comes primarily

from two sources: natural gas transit to Europe and direct natural gas

sales to the Ukraine. In 2012 gas sales to the Ukraine contributed 7% to

Gazprom's total gas sales in terms of volume, which represents around

50% of Gazprom's gas exports to the Commonwealth of Independent

States (CIS). We remain comfortable with Gazprom as a credit, given its

strong operational profile, close links with the state and solid credit metrics.

Gazprom Neftopened its first retail fuelling station in Ukraine in 2012.

We see existing exposure to this segment as marginal.

Lukoilsold its refinery located in Ukraine in July 2013. Existing exposure to

Ukraine includes a petrochemical plant, where production was suspended

in 2012 due to a weak trading environment and was expected to resume

in 4Q13, and 5% of its retail fuelling stations. We view this exposure as

manageable.

Rosnefthas a refinery in Ukraine where production was suspended in 2012

due to a weak operating environment. The company also has a number of

retail fuelling stations, which provide a marginal contribution to its revenues

and EBITDA.

Banks

Recently Russian president Mr Putin stated that Gazprombank, Sberbank,

VEB and VTB have provided loans to the Ukraine totalling around USD

28bn. We note that Sberbank, VTB and VEB have subsidiary banks in the

Ukraine, while Gazprombank does not have one. Three Ukrainian sub-

sidiaries of these banks combined had assets of USD12.1 bn as of 2012 and

loans of USD 8.8 bn. The remaining USD 19bn are likely to be exposure to

Ukraine sovereign and corporates, with the latter to certain degree secured

by Gazprom's gas deliveries. We note that USD 28bn represents a mere

4.3% of the loan book of these four banks as of 1H13. These four banks

are directly or indirectly majority state owned and in our view represent the

backbone of the Russian banking sector, with the state support likely to beprovided in case of need.

VTB Bank is the second largest bank in Russia by total assets with the

Russian government holding a majority 60.93% stake in the bank. The

bank has a subsidiary bank and a leasing arm in Ukraine. In 2012 the

subsidiary bank was loss making and contributed 1.7% to VTB's total

assets. On a 9M13 conference call, held on 5 December 2013, VTB man-

agement stated that VTB has RUB20 bn (USD 607mn) of exposure to

Ukrainian sovereign debt, including loans and securities. The bank is com-

fortable with this exposure and does not plan to increase it. VTB also has a

certain exposure to Ukrainian corporates. According to management, the

Ukrainian subsidiary is currently profitable.

Sberbank is the largest bank in Russia by total assets and the Russian

central bank owns a majority stake of 50% plus 1 share in the bank. The


UBS CIO WM Research 9 December 2013 3


4/7

bank has a subsidiary bank in Ukraine, which contributed 0.7% to the

bank's total assets and 0.4% to its net profit as of 2012.

VEB is 100% owned by the Russian government and is a developmentbank. The bank has a subsidiary bank in Ukraine, which was loss making

in 2012 and contributed 5% to VEB's total assets.

Gazprombank is the third largest bank in Russia by total assets, with

Gazprom holding 35.54% stake directly and another 47.38% stake

indirectly. The fully (100%) state owned VEB holds a 10.19% stake.

Gazprombank has no subsidiary bank in the Ukraine. A Reuters report

dated 3 December quotes Gazprombank board member Ms Ekaterina

Trofimova stating that the bank has credit exposure to Ukraine in the form

of contract-based secured lending. These in our view are likely to be mostly

loans secured by Gazprom's gas deliveries to Ukraine.

Telecoms

MTShas a subsidiary operating in Ukraine. As of 9M13 this subsidiary con-

tributed 10% to MTS revenues and 12% to its EBITDA. We note that in light

of higher uncertainty, the use of mobile services in Ukraine could potentially

increase in the immediate future.

Metals and mining

Evrazoperations in Ukraine include a steel mill and an iron ore facility and

steel coke facility. Ukrainian operations represented 4% of Evraz's EBITDA

as of 1H13 and 6% of crude steel production as of 9M13. In 2012 Ukrainian

operations were loss making on EBITDA level (EBITDA of negative USD

2mn).




5/7

Appendix

If you require further information on the instruments or issuers mentioned in this publication, or you require general information

on UBS CIO WM Research including research policies and statistics regarding past recommendations, please contact either your

Client Advisor or the mailbox [email protected] your country of residence.

Disclosures (9 December 2013)Evraz 7, Gazprombank 3, 7, 8; Gazprom Neft 5, Lukoil 2, 3, 5, 6, 7, MTS 5, Rosneft 1, 3, Sberbank 2, 3, 5, 7, 8; VEB FINANCE

LIMITED 3, 4, VTB 3, 7,

1. This company/entity is, or within the past 12 months has been, a client of UBS Securities LLC, and investment banking services

are being, or have been, provided.

2. UBS AG, its affiliates or subsidiaries held other significant financial interests in this company/entity as of last month's end (or

the prior month's end if this report is dated less than 10 working days after the most recent month's end).

3. UBS AG, its affiliates or subsidiaries expect to receive or intend to seek compensation for investment banking services from this

company/entity within the next three months.

4. UBS Limited is acting as manager/co-manager, underwriter, placement or sales agent in regard to an offering of securities of

this company/entity or one of its affiliates.

5. UBS Securities LLC makes a market in the securities and/or ADRs of this company.6. The fixed income analyst covering this company, a member of his or her team, or one of their household members has a long

common stock position in this company.

7. Within the past 12 months, UBS AG, its affiliates or subsidiaries has received compensation for investment banking services

from this company/entity.

8. UBS AG, its affiliates or subsidiaries has acted as manager/co-manager in the underwriting or placement of securities of this

company/entity or one of its affiliates within the past 12 months.


mailto:[email protected]


6/7

Appendix

Disclaimer

UBS CIO WM Research is published by Wealth Management and Retail & Corporate and Wealth Management Americas, Business Divisions of UBS AG (UBS) or an affiliate

thereof. In certain countries UBS AG is referred to as UBS SA. 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 or other specific product. Certain services and products are subject to legal restrictions and cannot be offered worldwide on an unrestrictedbasis and/or may not be eligible for sale to all investors. All information and opinions expressed in this document were obtained from sources believed to be reliable and

in good faith, but no representation or warranty, express or implied, is made as to its accuracy or completeness (other than disclosures relating to UBS AG, its subsidiaries

and affiliates). All information and opinions as well as any prices indicated are current as of the date of this report, and are subject to change without notice. The analysis

contained herein is based on numerous assumptions. Different assumptions could result in materially different results. Opinions expressed herein may differ or be contrary

to those expressed by other business areas or divisions of UBS, its subsidiaries and affiliates, as a result of using different assumptions and/or criteria. At any time UBS and

other companies in the UBS group (or its employees) 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. Some investments may not be readily realizable since the market in the securities is

illiquid and therefore valuing the investment and identifying the risk to which you are exposed may be difficult to quantify. UBS relies on information barriers to control

the flow of information contained in one or more areas within UBS, into other areas, units, divisions or affiliates of UBS. Futures and options trading is considered risky.

Past performance of an investment is no guarantee for its future performance. Additional information will be made available upon request. 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 foreign exchange

rates may have an adverse effect on the price, value or income of an investment. The compensation of the analyst(s) who prepared this report is determined exclusively

by research management and senior management (not including investment banking). Analyst compensation is not based on investment banking revenues, however,

compensation may relate to the revenues of UBS Wealth Management & Swiss Bank as a whole, which includes investment banking, sales and trading services. We

are of necessity unable to take into account the particular investment objectives, financial situation and needs of our individual clients and we would recommend that

you take financial and/or tax advice as to the implications (including tax) of investing in any of the products mentioned herein. For structured financial instruments andfunds the sales prospectus is legally binding. If you are interested you may attain a copy via UBS or a subsidiary of UBS. This document may not be reproduced or copies

circulated without prior authority of UBS or a subsidiary of UBS. UBS expressly prohibits the distribution and transfer of this document to third parties for any reason.

UBS will not be liable for any claims or lawsuits from any third parties arising from the use or distribution of this document. This report is for distribution only under

such circumstances as may be permitted by applicable law. In developing the Chief Investment Office economic forecasts, CIO economists worked in collaboration with

economists employed by UBS Investment Research. Forecasts and estimates are current only as of the date of this publication and may change without notice

External Asset Managers / External Financial Consultants:In case this research or publication is provided to an External Asset Manager or an External Financial

Consultant, UBS expressly prohibits that it is redistributed by the External Asset Manager or the External Financial Consultant and is made available to their clients

and/or third parties.Australia:1) Clients of UBS Wealth Management Australia Ltd: This notice is distributed to clients of UBS Wealth Management Australia Ltd

ABN 50 005 311 937 (Holder of Australian Financial Services Licence No. 231127), Chifley Tower, 2 Chifley Square, Sydney, New South Wales, NSW 2000, by UBS

Wealth Management Australia Ltd.: This Document contains general information and/or general advice only and does not constitute personal financial product advice.

As such the content of the Document was prepared without taking into account the objectives, financial situation or needs of any specific recipient. Prior to making any

investment decision, a recipient should obtain personal financial product advice from an independent adviser and consider any relevant offer documents (including any

product disclosure statement) where the acquisition of financial products is being considered. 2) Clients of UBS AG:This notice is issued by UBS AG ABN 47 088 129

613 (Holder of Australian Financial Services Licence No 231087): This Document is issued and distributed by UBS AG. This is the case despite anything to the contrary

in the Document. The Document is intended for use only by Wholesale Clients as defined in section 761G (Wholesale Clients) of the Corporations Act 2001 (Cth)

(Corporations Act). In no circumstances may the Document be made available by UBS AG to a Retail Client as defined in section 761G of the Corporations Act.

UBS AGs research services are only available to Wholesale Clients. The Document is general information only and does not take into account any persons investmentobjectives, financial and taxation situation or particular needs. Austria:This publication is not intended to constitute a public offer or a comparable solicitation under

Austrian law and will only be used under circumstances which will not be equivalent to a public offering of securities in Austria. The document may only be used by

the direct recipient of this information and may under no circumstances be passed on to any other investor. Bahamas:This publication is distributed to private clients

of UBS (Bahamas) Ltd and is not intended for distribution to persons designated as a Bahamian citizen or resident under the Bahamas Exchange Control Regulations.

Bahrain: UBS AG is a Swiss bank not licensed, supervised or regulated in Bahrain by the Central Bank of Bahrain and does not undertake banking or investment business

activities in Bahrain. Therefore, Clients have no protection under local banking and investment services laws and regulations. Belgium:This document has not been

submitted for approval by, and no advertising or other offering materials have been filed with, the Belgian Financial Services and Markets Authority. This document

and any other information or materials relating thereto is for information purposes only and does not (intend to) constitute a public offering or involve an investment

service in Belgium. Neither this document nor any other information or materials relating thereto (a) may be distributed or made available to the public in Belgium,

(b) may be used in relation to any investment service in Belgium (c) or may be used to publicly solicit, provide advice or information to, or otherwise provoke requests

from, the public in Belgium in relation to the offering. Any offering will be made exclusively on a private basis in accordance with Belgian law and will be addressed

only to, and subscription will only be accepted from eligible investors in accordance with Belgian private placement rules. Brazil:Prepared by UBS Brasil Administradora

de Valores Mobilirios Ltda, entity regulated by Comisso de Valores Mobilirios ("CVM"). The views and opinions expressed in this report accurately reflect analyst's

personal views about the subject securities and issuers. This report is only intended for Brazilian residents if such residents are directly purchasing or selling securities in

the Brazil capital market through a local authorized institution. For investors residing in Brazil, Eligible Investors are considered to be: (i) financial institutions, (ii) insurance

firms and investment capital companies, (iii) supplementary pension entities, (iv) entities that hold financial investments higher than R$ 300,000.00 and that confirmthe status of qualified investors in written, (v) investment funds, (vi) securities portfolio managers and securities consultants duly authorized by CVM, regarding their

own investments, and (vii) social security systems created by the Federal Government, States, and Municipalities. Canada:The information contained herein is not, and

under no circumstances is to be construed as, a prospectus, an advertisement, a public offering, an offer to sell securities described herein, solicitation of an offer to

buy securities described herein, in Canada or any province or territory thereof. Any offer or sale of the securities described herein in Canada will be made only under an

exemption from the requirements to file a prospectus with the relevant Canadian securities regulators and only by a dealer properly registered under applicable securities

laws or, alternatively, pursuant to an exemption from the dealer registration requirement in the relevant province or territory of Canada in which such offer or sale is

made. Under no circumstances is the information contained herein to be construed as investment advice in any province or territory of Canada and is not tailored to the

needs of the recipient. To the extent that the information contained herein references securities of an issuer incorporated, formed or created under the laws of Canada or

a province or territory of Canada, any trades in such securities must be conducted through a dealer registered in Canada or, alternatively, pursuant to a dealer registration

exemption. No securities commission or similar regulatory authority in Canada has reviewed or in any way passed upon these materials, the information contained herein

or the merits of the securities described herein and any representation to the contrary is an offence. Tax treatment depends on the individual circumstances and may

be subject to change in the future. UBS does not provide legal or tax advice and makes no representations as to the tax treatment of assets or the investment returns

thereon both in general or with reference to specific Client's circumstances and needs. Clients should obtain independent tax advice on the suitability of products,

assets or instruments before investing and as they may consider appropriate. In Canada, this publication is distributed to clients of UBS Wealth Management Canada

by UBS Investment Management Canada Inc. Dubai:Research is issued by UBS AG Dubai Branch within the DIFC, is intended for professional clients only and is not

for onward distribution within the United Arab Emirates. France:This publication is distributed by UBS (France) S.A., French "socit anonyme" with share capital of

125.726.944, 69, boulevard Haussmann F-75008 Paris, R.C.S. Paris B 421 255 670, to its clients and prospects. UBS (France) S.A. is a provider of investment services

duly authorized according to the terms of the "Code Montaire et Financier", regulated by French banking and financial authorities as the "Banque de France" and the

"Autorit des Marchs Financiers". Germany:The issuer under German Law is UBS Deutschland AG, Bockenheimer Landstrasse 2-4, 60306 Frankfurt am Main. UBS

Deutschland AG is authorized and regulated by the "Bundesanstalt fr Finanzdienstleistungsaufsicht". Hong Kong:This publication is distributed to clients of UBS AG

Hong Kong Branch by UBS AG Hong Kong Branch, a licensed bank under the Hong Kong Banking Ordinance and a registered institution under the Securities and Futures

Ordinance. India:Distributed by UBS Securities India Private Ltd. 2/F, 2 North Avenue, Maker Maxity, Bandra Kurla Complex, Bandra (East), Mumbai (India) 400051.




7/7

Appendix

Disclaimer

Phone: +912261556000. SEBI Registration Numbers: NSE (Capital Market Segment): INB230951431 , NSE (F&O Segment) INF230951431, BSE (Capital Market Segment)

INB010951437. Indonesia:This research or publication is not intended and not prepared for purposes of public offering of securities under the Indonesian Capital

Market Law and its implementing regulations. Securities mentioned in this material have not been, and will not be, registered under the Indonesian Capital Market Lawand regulations. Italy:This publication is distributed to the clients of UBS (Italia) S.p.A., via del vecchio politecnico 3, Milano, an Italian bank duly authorized by Bank of

Italy to the provision of financial services and supervised by "Consob" and Bank of Italy.UBS Italia has not participated in the production of the publication and of the

research on investments and financial analysis herein contained. Jersey:UBS AG, Jersey Branch, is regulated and authorized by the Jersey Financial Services Commission

for the conduct of banking, funds and investment business. Luxembourg: This publication is not intended to constitute a public offer under Luxembourg law, but

might be made available for information purposes to clients of UBS (Luxembourg) S.A., a regulated bank under the supervision of the "Commission de Surveillance du

Secteur Financier" (CSSF), to which this publication has not been submitted for approval. Mexico:This document has been distributed by UBS Asesores Mxico, S.A. de

C.V., a company which is not subject to supervision by the National Banking and Securities Commission of Mexico and is not part of UBS Grupo Financiero, S.A. de C.V.

or of any other Mexican financial group and whose obligations are not guaranteed by any third party. UBS Asesores Mxico, S.A. de C.V. does not guarantee any yield

whatsoever. Singapore:Please contact UBS AG Singapore branch, an exempt financial adviser under the Singapore Financial Advisers Act (Cap. 110) and a wholesale

bank licensed under the Singapore Banking Act (Cap. 19) regulated by the Monetary Authority of Singapore, in respect of any matters arising from, or in connection

with, the analysis or report. Spain:This publication is distributed to clients of UBS Bank, S.A. by UBS Bank, S.A., a bank registered with the Bank of Spain. Turkey:No

information in this document is provided for the purpose of offering, marketing and sale by any means of any capital market instruments and services in the Republic

of Turkey. Therefore, this document may not be considered as an offer made or to be made to residents of the Republic of Turkey in the Republic of Turkey. UBS AG

is not licensed by the Turkish Capital Market Board (the CMB) under the provisions of the Capital Market Law (Law No. 2499). Accordingly neither this document nor

any other offering material related to the instruments/services may be utilized in connection with providing any capital market services to persons within the Republic

of Turkey without the prior approval of the CMB. However, according to article 15 (d) (ii) of the Decree No. 32 there is no restriction on the purchase or sale of theinstruments by residents of the Republic of Turkey. UAE:This research report is not intended to constitute an offer, sale or delivery of shares or other securities under the

laws of the United Arab Emirates (UAE). The contents of this report have not been and will not be approved by any authority in the United Arab Emirates including the

UAE Central Bank or Dubai Financial Authorities, the Emirates Securities and Commodities Authority, the Dubai Financial Market, the Abu Dhabi Securities market or

any other UAE exchange. UK:Approved by UBS AG, authorised and regulated by the Financial Market Supervisory Authority in Switzerland. In the United Kingdom, UBS

AG is authorised by the Prudential Regulation Authority and subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation

Authority. Details about the extent of our regulation by the Prudential Regulation Authority are available from us on request. A member of the London Stock Exchange.

This publication is distributed to private clients of UBS London in the UK. Where products or services are provided from outside the UK, they will not be covered by the

UK regulatory regime or the Financial Services Compensation Scheme. USA:This document is not intended for distribution into the US and / or to US persons. UBS

Securities LLC is a subsidiary of UBS AG and an affiliate of UBS Financial Services Inc., UBS Financial Services Inc. is a subsidiary of UBS AG.

Version 07/2013.

UBS 2013. The key symbol and UBS are among the registered and unregistered trademarks of UBS. All rights reserved.



investing in emerging markets_en_1135050[1]

Documents