UBS (Lux) Key Selection SICAV - China Allocation Opportunity (USD)
Important information: • Under normal circumstances, the Fund expects to invest up to 65% of its net asset value in equities and equity rights and up to
65% of its net asset value in bonds and claims (i.e. secured obligations such as bank loans and other debt instruments) of companies domiciled or chiefly active in China. The Fund may also invest up to 65% of its net asset value in securities traded on the onshore China securities market. These include Chinese A shares ("A shares") as well as RMB-denominated fixed-income instruments traded on the Chinese interbank bond market ("CIBM") or the exchange-traded bond market ("Chinese onshore bonds"). The Fund may invest up to 100% of its net asset value in equities and bonds issued or traded offshore outside the PRC.
• The Fund's investments may be subject to risks associated with the asset allocation strategy, liquidity, China (such as tax, RMB currency and foreign exchange, and RQFII), equities (including A shares and Stock Connect), fixed income (such as high yield bonds, credit rating and downgrading, and counterparty), fund of funds, securities lending, and repurchase and reverse repurchase agreements.
• The Fund may have concentrated exposure to China. The value of investments in China may be more volatile and unstable than those in more developed markets, and more susceptible to market volatility, settlement difficulties, adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory events affecting China.
• The Fund may invest up to 65% of its net asset value in high yield bonds and claims with a rating of BBB (Standard & Poor’s) or lower, a comparable rating from another internationally recognized rating agency or a comparable internal UBS rating.
• The Fund is also subject to risks associated with debt instruments with loss-absorption features. Such instruments are subject to greater risks when compared to traditional debt instruments as such instruments are typically subject to the risk of being written down or converted to ordinary shares upon the occurrence of pre-defined trigger event(s) which are likely to be outside of the issuer’s control. Such trigger events are complex and difficult to predict and may result in a significant or total reduction in the value of such instruments.
• The Fund may use financial derivative instruments for investment management and hedging purposes. The Fund's net derivative exposure may be up to 50% of its net asset value. The use of financial derivative instruments may become ineffective and/or cause the Fund to suffer significant losses.
• In respect of share classes with "-mdist" in their name, distributions may be paid from capital or effectively out of capital which may result in an immediate reduction of the net asset value per share. This amounts to a withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment.
• The fixed rate distribution share classes (i.e. share classes with a fixed percentage in their name) continue to distribute in periods that the Fund has negative return / is making losses, which further reduces the net asset value of the Fund.
• This investment may involve risks that could result in loss of part or entire amount of investors' investment. • Investors should not invest in the Fund solely based on this document and should read the relevant Hong Kong offering documents
for further details including risk factors. • Investors are responsible for their investment decisions and should seek independent financial and professional advice if required.
Investment objective & strategy • To achieve capital growth and generate income
by investing in a diversified portfolio with a focus on China.
Name of fund UBS (Lux) Key Selection
SICAV - China Allocation Opportunity (USD)
Currency of fund USD Currency of share class USD
Fund type Open-end Accounting year ends 30 September
Issue/redemption Daily Total fund assets (USD m) 1 965.88
Front End Load
P-mdist: up to 5% of subscription amount 1
Management fee % p.a
1.44% (hedged share class: 1.48%)
1Hong Kong distributors will currently only charge up to 5% of the subscription amount. However, investors should note that a maximum of up to 6% of the subscription amount may be charged upon giving 1 month's prior notice to affected investors.
Since Inception Performance (share class P-acc; basis USD, net of fees) 1
0100 +10115 +20130 +30145 +40160 +50175 +60190
0100 -1085 -2070 -3055 -4040
2015 2016 2017 2018 2019 2020 2021 2022
Indexed on the basis of month-end data
Indexed performance (left-hand scale) Performance per year in % (right-hand scale)
in % Year- to-date
1 year
3 years
5 years
since launch2
Fund (USD) P-acc -17.05 -33.51 -19.08 0.99 -1.43 in % 2017 2018 2019 2020 2021
Fund (USD) P-acc 2.05 -10.70 27.00 16.00 -20.42 1Fund performance is calculated on NAV to NAV basis in denominated currency of the respective share class with dividends re-invested. These figures refer to the past. Past performance is not a reliable indicator of future results. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units. Source for all data and charts (if not indicated otherwise): UBS Asset Management
2Share class launched date: June 8, 2015
Asset management UBS Funds
Hong Kong Edition Data as at end-April 2022
Asset Allocation (%) Equity 56.4 A-shares 15.70 Companies listed in HK 34.80 ADRs 0.80 Others 5.00 Fixed Income 46.2 USD bonds 36.60 Onshore China Bonds 9.60 Cash -2.5
Top 5 stock holdings 2 Fund
Kweichow Moutai Co Ltd 5.3 Tencent Holdings Ltd 5.2 China Merchants Bank Co Ltd 3.4 NETEASE INC 2.7 Hong Kong Exchanges & Clearing Ltd 2.5
Sector exposure (%) (Equities Component) 1 Fund
Financials 26.6 Communication Services 19.7 Consumer Staples 16.2 Consumer Discretionary 11.4 Health Care 6.4 Real Estate 5.9 Information Technology 4.8 Industrials 3.6 Materials 3.3 Energy 1.2 Utilities 1.0
Sector exposure (%) (Fixed Income Component) 1 Fund
Real Estate 34.7 Financial 27.3 Quasi-Sovereign 12.1 Sovereign 9.2 Consumer 8.2 Technology, Media and Telecom 2.5 Diversified 1.8 Oil & Gas 1.6 Utilities 1.1 Industrial 1.0 Infrastructure 0.4 Transport 0.3 Metals & Mining 0.0
This information should not be considered as recommendation to buy and sell any particular security. 1 The breakdown excludes funds, ETFs, derivatives and cash holdings. 2 Holdings are on a look-through basis.
Share class details
(USD) P-acc (USD) P-mdist 1, 2 (USD) P-6%-mdist 2 ,3 (HKD) P-6%-mdist 2 ,3 (SGD hedged) P- mdist 1, 2
ISIN code LU1226287529 LU1226287875 LU1226288253 LU1226288170 LU1226287792 Bloomberg code UCAOPAU LX UCAOPMU LX UCAOP6U LX UCAOP6H LX UCAOPMS LX Launch Date 08.06.2015 08.06.2015 08.06.2015 08.06.2015 08.06.2015 Distribution yield (p.a.)
Distribution reinvested 5.0% 6.0% 6.0% 5.3%
(AUD hedged) P-6%-mdist 2 ,3 (HKD) P-mdist 1, 2 (AUD hedged) P-mdist 1, 2
ISIN code LU1269690746 LU1951186391 LU2092904486 Bloomberg code UBAHP6M LX UBSHP6M LX UBAOUHP LX Launch Date 27.08.2015 14.03.2019 08.01.2020 Distribution yield (p.a.) 5.9% 5.0% 4.6%
1The share classes with "-mdist" aim to pay dividends on a monthly basis. Dividend is not guaranteed. Distribution yield = (Dividend per unit on last record date x 12 /Previous month-end NAV) x 100. The distribution yields shown here are for reference only.
2A positive distribution yield does not imply a positive return. Dividend may be pay out of capital.Share classes with “-mdist” and "6%- mdist" in their name may also make distributions out of capital and realized capital gains, at the discretion of the Management Company, or pay distributions out of gross income while charging/paying all or part of the fund’s fees and expenses to/out of the capital of the relevant fund, resulting in an increase in distributable income for the payment of distributions by the fund and therefore, the fund may effectively pay distributions out of capital. Any distributions involving payment of dividends out of the fund’s capital or payment of dividends effectively out of the fund’s capital (as the case may be) may result in an immediate reduction of the next asset value per share/unit.
3The constant distribution share classes (i.e. share classes with "6%-mdist" in their names") do not distribute a fixed amount. Rather a fixed percentage will apply to the NAV of the Fund as of the end of the month. Monthly distribution amount = 6%÷12 months X NAV at the end of each month. The constant percentage distribution results in higher absolute distributions when NAVs are high and in lower absolute distributions when NAVs are low. Hence, the absolute distributions received by investors may vary from month to month. A positive distribution yield does not imply a positive return. These share classes continue to distribute in periods that the Fund has negative return / is making losses which further reduces the NAV of the Fund. In extreme circumstances, investors may not be able to get back the original investment amount. Constant distributing share classes must not be seen as alternative to savings account or fixed-interest paying investment.
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Investment involves risks, and past performance figures shown are not indicative of future performance. The value of the funds and income from them can go up as well as down and consequently you may not get back the amount originally invested. Investors please refer to the offering document for further details including the risk factors. The investment returns of some of our range of funds are denominated in currency other than USD/HKD. US/HK Dollar-based investors are therefore exposed to fluctuations in the US/HK dollar/ foreign currency exchange rate. Units of UBS funds mentioned in this publication may not be offered, sold or delivered in the USA. The document has not been reviewed by the Securities and Futures Commission in Hong Kong. The document is issued by UBS Asset Management (Hong Kong) Limited. A number of comments in this document are based on current expectations and are considered “forward-looking statements”. Actual future results may prove to be different from expectations and any unforeseen risk or event may arise in the future. The opinions expressed are a reflection of UBS Asset Management’s judgment at the time this document is compiled and any obligation to update or alter forward- looking statements as a result of new information, future events, or otherwise is disclaimed. You are advised to exercise caution in relation to this document. The information in this document does not constitute advice and does not take into consideration your investment objectives, legal, financial or tax situation or particular needs in any other respect. Investors should be aware that past performance of investment is not necessarily indicative of future performance. Potential for profit is accompanied by possibility of loss. If you are in any doubt about any of the contents of this document, you should obtain independent professional advice. Source for all data and charts (if not indicated otherwise): UBS Asset Management. © UBS 2022. The key symbol and UBS are among the registered and unregistered trademarks of UBS. All rights reserved.

• 65% 65%
65% AA 100%
• RQFII A
•
• 65% BBB
•
• -mdist
•
•
/
P-acc: 4%
P-mdist: 5% 1
% 1.44% (: 1.48%) 1 5 1 6
( P-acc ) 1
0100 +10115 +20130 +30145 +40160 +50175 +60190
0100 -1085 -2070 -3055 -4040
2015 2016 2017 2018 2019 2020 2021 2022

()
(%) ()
() P-acc -17.05 -33.51 -19.08 0.99 -1.43
% 2017 2018 2019 2020 2021
() P-acc 2.05 -10.70 27.00 16.00 -20.42 1 ( )
2 2015 6 8

2022 04
(%) 56.4 A 15.70 34.80 0.80 5.00 46.2 36.60 9.60 -2.5
Top 5 stock holdings 2

5.3 5.2 3.4 2.7 Hong Kong Exchanges & Clearing Ltd 2.5
(%) 1

26.6 19.7 16.2 11.4 6.4 5.9 4.8 3.6 3.3 1.2 1.0
(%) 1

34.7 27.3 12.1 9.2 8.2 2.5 1.8 1.6 1.1 1.0 0.4 0.3 0.0
1 ETF 2

3 () P-6%-mdist 2 ,
3 () P-
mdist 1, 2
ISIN LU1226287529 LU1226287875 LU1226288253 LU1226288170 LU1226287792 UCAOPAU LX UCAOPMU LX UCAOP6U LX UCAOP6H LX UCAOPMS LX 08.06.2015 08.06.2015 08.06.2015 08.06.2015 08.06.2015
() 5.0% 6.0% 6.0% 5.3%
() P-6%-mdist 2 ,3() P-mdist 1, 2 () P-mdist 1, 2
ISIN LU1269690746 LU1951186391 LU2092904486 UBAHP6M LX UBSHP6M LX UBAOUHP LX 27.08.2015 14.03.2019 08.01.2020
() 5.9% 5.0% 4.6%
1-mdist = ( x 12 / ) x 100
2-mdist6%-mdist
36%-mdist = 6% ÷ 12 x


UBS (Lux) Key Selection SICAV Société d’Investissement à Capital Variable 33 A, avenue J.F. Kennedy L-1855 Luxembourg RCS Luxembourg B 0088580 www.ubs.com
Notice to shareholders of UBS (Lux) Key Selection SICAV (the “Fund”) UBS (Lux) Key Selection SICAV – Asia Allocation Opportunity (USD)
UBS (Lux) Key Selection SICAV – European Growth and Income (EUR) UBS (Lux) Key Selection SICAV – China Allocation Opportunity (USD)
(the "Sub-Funds", each a "Sub-Fund")
IMPORTANT: This notice is important and requires your immediate attention. If you have any questions about the contents of this notice, you should seek independent professional advice. The information contained in this notice is in accordance with the facts and does not omit anything likely to affect the import of such information as at the date of this notice to the best of the knowledge and belief of UBS Fund Management (Luxembourg) S.A. (the "Management Company") who has taken all reasonable care to ensure that such is the case. The Management Company accept responsibility for the accuracy of the contents of this notice accordingly. Unless otherwise defined in this notice, capitalised terms used in this notice shall have the same meaning as those used in the Fund’s Information for Hong Kong Investors dated April 2022 (the "IHKI") and prospectus dated January 2022 (the "Prospectus") (together, the "Hong Kong Offering Documents"). To Hong Kong resident shareholders, The Board of Directors of the Fund wishes to inform you of the following changes that have been reflected in the Hong Kong Offering Documents as of the date of this notice. Change of address of the Hong Kong Representative As of 21 March 2022, the address of the Hong Kong Representative, UBS Asset Management (Hong Kong) Limited, had changed as follows:
"45/F-52/F 45/F & 47/F-52/F, Two International Finance Centre 8 Finance Street, Central Hong Kong"
For avoidance of doubt, the telephone number and mailing address as set out at the bottom of this notice remain the same. Administrative changes and updates The Hong Kong Offering Document now reflects the certain administrative changes and updates, including: - the IHKI and product key fact statement of the Sub-Funds have been amended to reflect some editorial
and streamlining changes made for better clarity. These changes involve the simplification or removal of disclosures in alignment with those in the Prospectus, including those in relation to the legal structure of the Fund, risk management procedures, dealing processes, securities financing transactions and risk factors; and
- other changes and clarificatory updates.
***
The updated Hong Kong Offering Documents and product key fact statement of the Sub-Funds are available from the Hong Kong Representative for inspection for a reasonable charge and on the website (https://www.ubs.com/hk/en/asset-management.html). Note that the website has not been reviewed by the SFC. If you have any questions or concerns about the foregoing, you may contact the Fund at its registered office in Luxembourg or the Hong Kong Representative at 45/F & 47-52/F Two International Finance Centre, 8
Finance Street, Central, Hong Kong at telephone (852) 2971 6188 (Mailing Address: GPO Box 506 Hong Kong). UBS Asset Management (Hong Kong) Limited For and on behalf of UBS Fund Management (Luxembourg) S.A. 29 April 2022
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Product Key Facts UBS (Lux) Key Selection SICAV – China Allocation Opportunity (USD)
Management Company:
This statement provides you with key information about this product.
This statement is a part of the offering document. You should not invest in this product based on this statement alone.
Quick Facts
Management Company: UBS Fund Management (Luxembourg) S.A. Portfolio Manager: UBS Asset Management (Hong Kong) Limited (internal
delegation) Depositary: UBS Europe SE, Luxembourg Branch Dealing frequency: Daily (generally every Luxembourg business day, but
except days which are not normal banking days in the People’s Republic of China)
Base currency: USD Ongoing charges over a year: P-acc 1.89%#
P-mdist^ 1.90%#
(AUD hedged) P-mdist^ 1.94%#
(RMB hedged) P-mdist^ 1.95%*
(RMB hedged) P-6%-mdist^ 1.95%# ^ Share classes with “-mdist” in their name may make monthly distributions excluding fees and expenses. Share classes with “6%-mdist” in their names will make monthly distribution excluding fees and expenses (see below). These share classes may also make distributions out of capital (i.e. which includes the existing issued share capital, realised and unrealised capital gains) (“Capital”), at the discretion of the Management Company, or pay distributions out of gross income while charging/ paying all or part of a Sub-Fund’s fees and expenses to/ out of the capital of the Sub-Fund, resulting in an increase in distributable income for the payment of distributions by the Sub-Fund and therefore, the Sub-Fund may effectively pay distributions out of Capital. Any distributions involving payment of dividends out of Capital or payment of dividends effectively out of Capital (as the case may be) may result in an immediate reduction of the net asset value (“NAV”) per share. # The ongoing charges figure is based on expenses for the year ended 30 September 2021. This figure may vary from time
to time.
* This share class is not yet launched at the time of publication of this statement. The figure for this unlaunched share class
is estimated on the basis of the ongoing expenses of (RMB hedged) P-6%-mdist. The actual figures may differ upon the launch of the share class and the figures may vary from year to year.
Dividend Policy: P-acc Accumulating (no distribution of
dividend, income will be reinvested for this Sub-Fund, if any)
P-mdist Distributing monthly (the Management Company will decide whether and to
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what extent distributions are to be declared and paid)
P-6%-mdist Distributing monthly. Monthly distribution amount = 6%÷12 months X NAV at the end of each month.The dividend rate (i.e. 6%) and distribution frequency of the constant distribution share classes will not be changed
Financial year end of this Sub- Fund:
30 September
Minimum investment: 0.001 share (initial investment and any subsequent
investment) (Please also check whether your sales intermediary (if any) has any specific dealing requirements)
What is this product? The UBS (Lux) Key Selection SICAV – China Allocation Opportunity (USD) (the “Sub-Fund”) is a sub-fund of UBS (Lux) Key Selection SICAV constituted as an open-ended investment fund in the form of a Luxembourg Société d’Investissement à Capital Variable. It is a UCITS fund and is domiciled in Luxembourg and its home regulator is the Commission de Surveillance du Secteur Financier.
Objective and Investment Strategy Objective The objective of this Sub-Fund is to achieve capital growth and generate income by investing in a diversified portfolio with a focus on China. Strategy Under normal circumstances, the Sub-Fund expects to invest up to 65% of its NAV in equities and equity rights and up to 65% of its NAV in bonds and claims (i.e. secured obligations such as bank loans and other debt instruments) of companies domiciled or chiefly active in China. Actual allocation may vary from time to time and may temporarily exceed the above percentages depending on different factors (including changes in economic conditions). The Sub-Fund may also invest up to 65% of the Sub-Fund’s NAV in securities traded on the onshore China securities market. These include Chinese A shares (“A shares”) as well as RMB- denominated fixed-income instruments traded on the Chinese interbank bond market (“CIBM”) or the exchange-traded bond market (“Chinese onshore bonds”). A shares are renminbi-denominated shares of companies domiciled in mainland China which are traded on Chinese stock exchanges such as the Shanghai Stock Exchange and the Shenzhen Stock Exchange. In particular, the Sub- Fund may invest directly or indirectly in A shares/Chinese onshore bonds through the Renminbi Qualified Foreign Institutional Investors (“RQFII”) regime and/or through investing in UCITS or other UCI with exposure to A shares/Chinese onshore bonds and/or access products such as ETFs. The Sub-Fund’s investment exposure may also include A shares traded via Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect (“Stock Connect”). The Sub-Fund may invest no more than 20% of its net assets in fixed-income instruments denominated in RMB and traded on the CIBM. The Sub-Fund may invest up to 100% of its NAV in equities and bonds issued or traded offshore outside the PRC (including but not limited to H-shares traded on The Stock Exchange of Hong Kong Limited and American Depositary Receipts (ADR)/Global Depositary Receipts (GDR) traded on other overseas stock exchange or offshore RMB rate (CNH)-denominated bonds).
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The Sub-Fund may have a majority of its investments denominated in RMB, and may also invest in assets other than RMB, such as USD, HKD or other currencies. The Sub-Fund may invest up to 65% of the Sub-Fund’s NAV in high-yield bonds and claims with a rating of BBB (Standard & Poor’s) or lower, a comparable rating from another internationally recognised rating agency or – insofar as an issue does not have an official rating – a comparable internal UBS rating. In most circumstances, an international rating is not available for Chinese onshore bonds and as such a PRC local credit rating agency will be used. The Sub-Fund may invest up to 5% of its NAV in Chinese onshore bonds rated below AA- by PRC local credit rating agencies. The Sub-Fund does not intend to invest more than 10% of the Sub-Fund’s NAV in offshore securities issued and/or guaranteed by a single sovereign issuer which are below investment grade (i.e. ratings below “BBB-” as assigned by international credit rating agencies for offshore securities). The Sub-Fund may invest up to 50% of its total NAV in instruments with loss-absorption features including contingent convertible debt securities, non-preferred senior debt instruments and senior or subordinated debt instruments. These instruments may be subject to contingent write-down or contingent conversion to ordinary shares on the occurrence of trigger event(s). The Sub-Fund is expected to conduct securities lending up to 25% of its net asset value. The Sub- Fund is expected to engage in repurchase or reverse repurchase transactions in the range of 0-10% of its net asset value. In order to fulfil its investment objective and achieve broad diversification, the Sub-Fund may invest up to 10% of its net assets in undertakings for collective investment (UCI) and undertakings for collective investment in transferable securities (UCITS) that are recognized jurisdiction schemesi domiciled in jurisdictions such as Luxembourg and Ireland. The Sub-Fund may use financial derivative instruments for investment management and hedging purposes. This Sub-Fund is actively managed, without reference to a benchmark.
Use of derivatives The Sub-Fund’s net derivative exposure may be up to 50% of the Sub-Fund’s net asset value.
What are the key risks? Investment involves risks. Please refer to the offering document for details including the risk factors. Investment risk
• The Sub-Fund is an investment fund. There is no guarantee of the repayment of principal. • The Sub-Fund’s investment portfolio may fall in value and therefore your investment in the
Sub-Fund may suffer losses. Asset allocation strategy risk
• Investments in both onshore and offshore China-related equity and fixed income securities are subject to market volatility. The performance of the Sub-Fund with an asset allocation strategy is partially dependent on the success of the asset allocation strategy employed by the Sub-Fund at any particular time. Accordingly, in such circumstances, there is no assurance that the asset allocation strategy employed by the Sub-Fund will be successful and therefore the investment objectives of the Sub-Fund may not be achieved.
• The investments of the Sub-Fund may be periodically rebalanced and therefore the Sub-Fund may incur greater transaction costs.
China market risk
• China is considered as an emerging market and investing in China may subject the Sub-Fund to higher economic, political, social, legal and regulatory risks than more developed economies or markets. Investments in China may also be less liquid and more volatile.
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• The Sub-Fund invests primarily in securities related to the China market and may be subject to additional concentration risk.
• The China debt securities market may be subject to higher volatility compared to more developed markets. The prices of securities traded in such market may be subject to fluctuations.
Equity risk
• The returns of securities are affected by various factors including the underlying strength of cash flows, balance sheets and management. These factors may impact the ability of the underlying company to meet the challenges of fluctuating economic growth, structural change and competitive forces and the ability to pay dividends to shareholders.
• Dividends declared by the companies in which the Sub-Fund may invest are not guaranteed. Investment in equities may result in the loss of capital.
A shares market risk
• The price at which securities may be purchased or sold by the Sub-Fund and the NAV of the Sub-Fund may be adversely affected if trading markets for A shares are limited or absent. The A-share market may be more volatile and unstable (for example, due to the risk of suspension of a particular stock or government intervention) than those in more developed markets. Market volatility and settlement difficulties in the A-share markets may also result in significant fluctuations in the prices of the securities traded on such markets and thereby may affect the value of the Sub-Fund.
• Trading band limits are imposed by the stock exchanges in China on A shares, where trading in any A shares security on the relevant stock exchange may be suspended if the trading price of the security has increased or decreased to the extent beyond the trading band limit. A suspension will render it impossible for the Manager to liquidate positions and can thereby expose the Sub-Fund to significant losses. Further, when the suspension is subsequently lifted, it may not be possible for the Manager to liquidate position at a favourable price.
Fixed income risk • Investment in Chinese debt instruments market may be subject to higher volatility and price
fluctuations than investment in debt instrument products in more developed markets. • The capital value of fixed income securities will rise and fall as a consequence of changes in
interest rates. If interest rates rise, the value of a fixed income security falls; if interest rates fall, its value rises. Increase in market interest rates will adversely impact on the value of these fixed income securities. The magnitude of these changes depends mainly on the term to maturity of the security. When investing in fixed income securities it is also necessary to consider the impact of credit risk. Credit risk refers to the issuer of a debt instrument failing to meet an obligation to pay periodic interest or to repay the principal sum at maturity. In addition, emerging markets debt which is normally below investment grade quality has a much higher risk of default. The entire purchase price of the debt instrument is at risk of loss if there is no recovery after default. Investment returns from international bonds (and related derivatives) are also affected by fluctuations in exchange rates. Such circumstances may adversely affect the NAV per share of the Sub-Fund and investors may as a result suffer losses.
Risk of investing in high yield bonds
• The Sub-Fund may invest in higher yielding (and therefore, higher risk) debt securities. Such securities may be below investment grade or unrated and face on-going uncertainties and are vulnerable to adverse business, financial and economic conditions. Such investment increases the credit risk of the Sub-Fund since these issuers have a higher possibility of defaulting on such issues or failing to meet its obligation to repay the principal or any interest payment thereon. Investments in below investment grade debt securities may be partially or fully lost under such adverse conditions. Where counterparty fails to perform its contractual obligations, either in whole or in part, this may result in a loss to the Sub-Fund.
Risks relating to credit rating and downgrading risk
• Investments with lower ratings may carry an above-average yield, but also a higher credit risk than investments in securities of first-class borrowers.
• The rating criteria and methodology used by Chinese local rating agencies may be different from those adopted by most of the established international credit rating agencies. Therefore, such rating system may not provide an equivalent standard for comparison with securities rated by international credit rating agencies and the Sub-Fund may be subject to additional risk of loss.
• The general assessment of an issuer’s creditworthiness may affect the value of the fixed income securities issued by the issuer. This assessment generally depends on the ratings
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assigned to the issuer or its affiliated companies by rating agencies such as Moody’s, Fitch and Standard & Poor’s. A reassessment of the creditworthiness that results in a downgrading of the rating assigned to an issuer may negatively affect the value of the fixed income securities issued by this issuer and hence affect the NAV of the Sub-Fund.
Counterparty risk
• Where a counterparty fails to perform its contractual obligations, either in whole or in part, this may result in a loss to the Sub-Fund. Where possible, this risk is primarily managed by ensuring counterparties (whether the securities are lower rated or unrated) are approved with stringent criteria and ensuring, where possible transactions are undertaken with a number of different counterparties. And in the case of rated securities the Portfolio Manager will also take into account the respective credit rating of the securities.
RQFII risk
• The Sub-Fund’s ability to make the relevant investments or to fully implement or pursue its investment objective and strategy is subject to the applicable laws, rules and regulations (including restrictions on investments and repatriation of principal profits) in the PRC, which are subject to change and such change may have potential retrospective effect.
• The Sub-Fund may suffer substantial loss if the approval of the RQFII is being revoked/terminated or otherwise invalidated as the Sub-Fund may be prohibited from trading of the relevant securities and repatriation of the Sub-Fund’s monies, or if any of the key operators or parties (including RQFII custodian/brokers) is bankrupt/in default and/or is disqualified from performing its obligations (including execution or settlement of any transaction or transfer of monies or securities).
Risks related to investments via the Stock Connect
• The relevant rules and regulations on Stock Connect are subject to change which may have potential retrospective effect. The Stock Connect is subject to quota limitations. Where a suspension in the trading through the programme is effected, the Sub-Fund’s ability to invest in China A-shares or access the PRC market through the programme will be adversely affected. In such event, the Sub-Fund’s ability to achieve its investment objective could be negatively affected.
PRC tax risk
• The tax laws, regulations and practice in respect of RQFII / Stock Connect are subject to change and may be amended with retrospective effect.
• Based on independent professional tax advice, the current PRC tax provisioning policy of the Sub-Fund is as follows: (i) For the 10% withholding income tax (“WIT”), a provision is made for non-government PRC onshore bonds for any interest income received before 7 November 2018 that was not subject to the WIT as a withholding tax by the issuer in the PRC; (ii) For the 6.3396% value added tax (“VAT”) (including surcharges), a provision is made for non- government PRC onshore bonds for any interest income received before 7 November 2018 that was not subject to the VAT as a withholding tax by the issuer in the PRC (this VAT regime is applicable from 1 May 2016).
• If the actual applicable tax levied by PRC tax authorities is greater than that provided for by the Portfolio Manager so that there is a shortfall in the tax provision amount, investors should note that the NAV of the Sub-Fund may suffer more than the tax provision amount as the Sub-Fund will ultimately have to bear the additional tax liabilities. In this case, the current and the new shareholders will be placed at a disadvantage. On the other hand, if the actual applicable tax levied by PRC tax authorities is less than that provided for by the Portfolio Manager so that there is an excess in the tax provision amount, shareholders who have redeemed the shares before the PRC tax authorities’ ruling, decision or guidance in this respect will be disadvantaged as they would have borne the loss from the Portfolio Manager’s overprovision. In this case, the current and new shareholders may benefit if the difference between the tax provision and the actual taxation liability can be returned to the account of the Sub-Fund.
RMB currency risk and foreign exchange risk
• RMB is not a freely convertible currency and it is subject to foreign exchange control policies of and repatriation restrictions imposed by the PRC government. If such policies or restrictions change in the future, the position of the Sub-Fund or its investors may be adversely affected.
• The Sub-Fund may hold assets that are not denominated in its base currency. Any devaluation of the foreign currency against the base currency of the Sub-Fund would cause the value of the assets denominated in the foreign currency to fall.
• The Sub-Fund may have a majority of its investments in assets denominated in RMB,
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investors subscriptions received in non-RMB currency will be converted into RMB prior to investment and at the applicable exchange rate and subject to the applicable spread. Currency conversion is subject to availability of RMB at the relevant time and hence may affect the Sub-Fund’s ability to make the relevant investment or to fully implement or pursue its investment strategies. The realization proceeds and/or dividend payments in RMB will need to be converted back to non-RMB currency for payment of redemption proceeds. In respect of RMB denominated classes, the availability of RMB at the time of currency conversion may affect the Sub-Fund’s ability to pay redemption proceeds and/or dividend payments in a timely manner and such payments may be delayed due to the exchange controls and restrictions applicable to RMB.
• There is no guarantee that the value of RMB against the Sub-Fund’s base currency will not depreciate. Any depreciation of RMB could adversely affect the value of the investments in the Sub-Fund.
• The offshore investment of the Sub-Fund may be denominated in offshore RMB (CNH) and RMB denominated classes are denominated in CNH. The rates of offshore RMB (CNH) and onshore RMB (CNY) are different and any divergence between CNH and CNY may adversely impact the value of investments in the Sub-Fund.
Liquidity risk
• Some investments may be thinly traded or illiquid and cannot be traded in reasonable sizes and therefore may be sold in small lots over longer periods or even at a discount resulting in a loss to the Sub-Funds. Under extraordinary or extreme market conditions, generally liquid investments can become illiquid which may result in a loss when such assets need to be sold within a certain time frame. Furthermore, illiquidity may result in a need to suspend redemptions or extend the normal redemption payment timelines.
Risks associated with investments in instruments with loss-absorption features
• Debt instruments with loss-absorption features are subject to greater risks when compared to traditional debt instruments as such instruments are typically subject to the risk of being written down or converted to ordinary shares upon the occurrence of a pre-defined trigger events (e.g. when the issuer is near or at the point of non-viability or when the issuer’s capital ratio falls to a specified level), which are likely to be outside of the issuer’s control. Such trigger events are complex and difficult to predict and may result in a significant or total reduction in the value of such instruments.
• In the event of the activation of a trigger, there may be potential price contagion and volatility to the entire asset class. Debt instruments with loss-absorption features may also be exposed to liquidity, valuation and sector concentration risk.
• The Sub-Fund may invest in contingent convertible debt securities, commonly known as CoCos, which are highly complex and are of high risk. Upon the occurrence of the trigger event, CoCos may be converted into shares of the issuer (potentially at a discounted price), or may be subject to the permanent write-down to zero. Coupon payments on CoCos are discretionary and may be cancelled by the issuer at any point, for any reason, and for any length of time.
• The Sub-Fund may invest in senior non-preferred debts. While these instruments are generally senior to subordinated debts, they may be subject to write-down upon the occurrence of a trigger event and will no longer fall under the creditor ranking hierarchy of the issuer. This may result in total loss of principal invested.
Fund of fund risk
• The investment performance of a Sub-Fund investing in other funds is affected by the investment performance of the underlying funds in which the Sub-Fund invests. Through its investment in the underlying funds, the Sub-Fund is subject to the risks of the underlying funds’ investments and subject to the underlying funds’ expenses, and therefore your investment in the Sub-Fund may suffer losses.
• Certain commission payments and expenses may occur more than once when investing in existing funds (for example, commission for the Custodian Bank and the central Administrative Agency, management/advisory fees and issuing/redemption commission of the UCI and/or UCITS in which an investment is made). Such commission payments and expenses are charged at the level of the target fund as well as of the fund of funds. Furthermore, there can be no assurance that the liquidity of the underlying funds will always be sufficient to meet redemption request as and when made due to restrictions on redemptions of underlying funds, which may have an adverse impact on the Sub-Fund.
• For the avoidance of doubt, if the Sub-Fund invests in an underlying fund managed by the management company or a connected person of the management company, all initial charges on such underlying fund will be waived. Further, the management company may not obtain a rebate on any fees or charges levied by such underlying fund or its management company.
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Risks connected with the use of derivatives
• The Sub-Fund’s use of financial derivative instruments for investment management and/or hedging purposes may become ineffective and/or cause the Sub-Fund to suffer significant losses.
Risk relating to distribution out of capital or out of gross income
• Any distributions from the gross income and/or involving the capital and/or capital gains result in an immediate reduction of the NAV per share of the Sub-Fund. Payment of dividends out of capital amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment.
• The distribution amount and net asset value of a hedged share class may be adversely affected by differences in the interest rates of the reference currency of the hedged share class and the Sub-Fund’s currency of account, resulting in an increase in the amount of distribution that is paid out of capital and hence a greater erosion of capital than other non- hedged share classes.
Risks relating to share classes with a fixed percentage in their names
• Constant distributing share classes must not be seen as alternative to savings account or fixed-interest paying investment.
• The percentage distribution rate of any share class is unrelated to expected or past income or return of the share class or the Sub-Fund. The distribution can thus be higher or lower than the income and return that were effectively realized. These share classes continue to distribute in periods that the Sub-Fund has negative return / is making losses, which further reduces the NAV of the Sub-Fund. In extreme circumstances, investors may not be able to get back the original investment amount.
• The constant distribution share class does not distribute a fixed amount. Rather a fixed percentage will apply to the NAV of the Sub-Fund as of the end of the month. The constant percentage distribution results in higher absolute distributions when NAVs are high and in lower absolute distributions when NAVs are low. Hence, the absolute distributions received by investors may vary from month to month.
Risks relating to securities lending transactions
• Securities lending transactions may involve the risk that the borrower may fail to return the securities lent out in a timely manner and the value of the collateral may fall below the value of the securities lent out.
Risk relating to hedged classes
• The hedging strategy for a class of shares which is hedged against the base currency of the Sub-Fund, may not work as intended, exposing investors of that class to currency risk. Additionally, investors of a hedged class may be exposed to fluctuations in the net asset value per share reflecting the gains/losses on and the associated transaction costs of the financial instruments used for hedging, and such investors may be adversely impacted.
How has the Sub-Fund performed?
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• Past performance information is not indicative of future performance. Investors may not get
back the full amount invested. • The computation basis of the performance is based on the calendar year end, NAV-To-NAV,
with dividend reinvested. • These figures show by how much the share class increased or decreased in value during the
calendar year being shown. Performance data has been calculated in USD including ongoing charges and excluding subscription fee and redemption fee you might have to pay.
• Where no past performance is shown there was insufficient data available in that year to provide performance.
• Fund launch date: 8 June 2015 • P-acc launch date: 8 June 2015 • P-acc is selected as representative share class as it is the major share class subscribed by
investors or denominated in the Sub-Fund’s base currency.
Is there any guarantee? This Sub-Fund does not have any guarantees. You may not get back the full amount of money you invest.
What are the fees and charges? Charges which may be payable by you
You may have to pay the following fees when dealing in the shares of the Sub-Fund.
Fee Subscription fee:
What you pay Up to 4% of the subscription amount, except for “mdist” share classes which is up to 5%*
Switching fee (conversion fee):
Up to 4% of the net asset value per share of the Sub-Fund or share class from which the shareholder is switching out multiplied by the number of shares to be switched by the shareholder, except for “mdist” share classes which is up to 5%*
Redemption charge: NIL * Investors should note that in respect of “mdist” share class, a maximum of up to 6% may be charged upon giving 1 month’s prior notice to affected investors.
You should check with the relevant authorised distributor to confirm the applicable fees and charges (including any additional taxes or commissions, where applicable) incurred in Hong Kong on the issuance, redemption or conversion of shares.
Ongoing fees payable by this Sub-Fund The following expenses will be paid out of the Sub-Fund’s assets. They affect you because they reduce the return you get on your investments. Annual rate (as a % of average NAV of the Sub-Fund)
Management fee, Depositary fee & Administration fee:
For non-currency hedged share classes P: Currently at 1.80% p.a. This is the maximum flat fee^ the Sub-Fund may charge (maximum management fee currently at 1.44% p.a.). For share classes P with “hedged” in their name: Currently at 1.85% p.a. This is the maximum flat fee^ the Sub-Fund may charge (maximum management fee currently at 1.48% p.a.). Investors will be given at least one month’s prior notice (or such notice period as the SFC may approve in advance) in respect of any increase in the level of the flat fee.
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Performance fee: N/A
^ The maximum flat fee does not include the following fees and additional expenses which are also charged to the Sub-Fund, such as but not limited to additional expenses related to management of the Sub-Fund’s asset for the sale and purchase of assets, auditor’s fees for annual audit, fees for legal and tax advisers, costs for the Sub-Fund’s legal documents etc. The aforementioned fees and additional expenses are not an exhaustive list, for further details, please refer to the section headed “Expenses paid by the Company” and under the heading “The sub-funds and their special investment policies” in the Prospectus.
Other Fees You may have to pay other fees and charges when dealing in the shares of the Sub-Fund. Refer to the offering document for details.
Additional Information
• You generally buy and redeem shares at the Sub-Fund’s next-determined NAV after the relevant authorized distributor or the Hong Kong Representative receives your request in good order by or before 5:00 pm (Hong Kong time) on a business day in Hong Kong. The relevant authorized distributor(s) may impose different dealing deadlines for receiving instructions for subscriptions, redemptions or switching. Investors should pay attention to the arrangements of the relevant authorized distributor(s) concerned.
• The NAV of this Sub-Fund is calculated, and the price of the shares published, each business
day (as more particularly defined and described in the offering document), the prices are available online at https://www.ubs.com/hk/en/asset-management/*.
• Investors may obtain the past performance information of other share classes offered to Hong
Kong investors from https://www.ubs.com/hk/en/asset-management/*.
• The compositions of the distributions (i.e. the relative amounts pay out of (i) net distributable income and (ii) capital) for the last 12 months will be made available by the Hong Kong Representative on request and also on https://www.ubs.com/hk/en/asset-management/*.
* This website has not been reviewed by the SFC and may contain information on sub-funds which have not been authorised
by the SFC and are not available to the retail public in Hong Kong.
Important If you are in doubt, you should seek professional advice. The SFC takes no responsibility for the contents of this statement and makes no representation as to its accuracy or completeness.
i The list of recognized jurisdiction schemes is available from the SFC website.
UBS (Lux) Key Selection SICAV
33 A, avenue J.F. Kennedy L-1855 Luxembourg RCS Luxembourg B 0088580 www.ubs.com
UBS (Lux) Key Selection SICAV


UBS Fund Management (Luxembourg) S.A.

2022 1


2022 3 21

45 -52 45 & 47 -52


8 45 &47-52 (852) 2971 6188GPO
Box 506 Hong Kong

- 1 -





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- 2 -



UBS (Lux) Key Selection SICAV Société
d’Investissement à Capital Variable
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UCITS UCI
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: 4%
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P 1.80%
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[Eng] UBS (Lux) Key Selection SICAV - China Allocation Opportunity Notice 29.04.22_KFS04.22.pdf
[Eng] UBS (Lux) Key Selection SICAV - HK Investor Notice (D)(2022.04.26).pdf
[Eng] UBS (Lux) Key Selection SICAV - China Allocation Opportunity (D)(2022.04.21)(clean).pdf
[Chi] UBS (Lux) Key Selection SICAV - China Allocation Opportunity (USD)Notice29.04.22_KFS04.22.pdf
[Chi] UBS (Lux) Key Selection SICAV - HK Investor Notice (D)(2022.04.26).pdf
[Chi] UBS (Lux) Key Selection SICAV - China Allocation Opportunity (USD)(2022.04.14)(clean).pdf