Diversify your wealth internationally

Transcription

1 ab UBS Swiss Financial Advisers Diversify your wealth internationally UBS Swiss Financial Advisers offers US investors a safe, easy and tax-compliant way to diversify their assets abroad.

2 Contents 3 Why invest abroad? 4 The advantages of an international portfolio 6 A Swiss wealth manager focused on US investors 8 Your choice our broad international offering 10 Working together it's easier than you think 11 Making it easy to file your taxes 12 Contact us

3 Why invest abroad? There are many good reasons, especially nowadays, why you as a US investor* may be looking to diversify your wealth internationally. An international portfolio means access to interesting investment opportunities around the world, many of which are not easily available from the United States. By providing geographical and currency diversification, it can also help increase the safety of your assets and provide a downside hedge against developments in US markets and/or the US dollar. At UBS Swiss Financial Advisers, we cater exclusively to the needs of US investors looking to diversify their assets outside the US. Working with us offers you a safe, easy and taxcompliant way to build an international portfolio custodied in Switzerland. If you are considering this option, we invite you to get to know us. When it comes to international diversification, we think you will find that we are the right partner for your needs. * For the purposes of this brochure, a "US investor" is any investor with a tax obligation in the United States. 3

4 The advantages of an international portfolio The last few years have seen immense changes in the economic and investment landscape, both in the United States and around the world. Much of what we used to take for granted as investors has been challenged. At the same time new opportunities are being created, many in areas we might not have previously considered. Like many US investors, you may as a consequence be looking to diversify your assets abroad. This can include investing a portion of your wealth in an international portfolio booked outside of the US. We believe there are several good, and legitimate, reasons to do so. Greater access to opportunities For one, an international portfolio, that allows you to invest directly in local currencies, gives you access to a far wider range of foreign investment opportunities than are available to you domestically. With many of the world s largest companies located outside the US, this includes many interesting investment opportunities. An international portfolio also lets you take advantage of the expertise of investment professionals who are close to these markets giving you perspectives and insights you may not be able to get through your US-based adviser. 4

5 Switzerland: Stability, experience and quality When considering where to diversify your wealth, economic stability and security should be among your top priorities. As one of the world's most successful economies, with a consistently strong currency and a history of financial stability, Switzerland should meet your criteria. Its long traditions of democracy and neutrality have helped to ensure political and social stability as well. Quality has long characterized the Swiss way of working. This is as true for the Swiss financial sector as it is for the country's world-renowned manufacturers. With their emphasis on excellence, their strong international networks and their reputation for reliability, Swiss banks have historically been able to build successful, long-term relationships with clients around the world. Banking in Switzerland means experiencing, and benefiting from, this drive to provide the best possible service. A prudent hedge Diversifying a portion of your wealth through an international portfolio is also prudent. It provides currency diversification, allowing you to reduce your exposure to possible US dollar depreciation or volatility. Booking outside the US means geographical diversification as well, which can increase the security of your assets and hedge against downward movements in US markets. Setting up a second center For these and other reasons, setting up a second center of finance outside the US can make good sense for you and your family. The good news is that this can be done in a fully taxcompliant, straightforward and easy manner. It simply requires the right partner. Equity Return Comparison US equities vs international equities excl. US Foreign Currency Exchange USD vs CHF Expressed in CHF per USD 120% 100% 80% 60% 40% 20% 0% -20% -40% MSCI World ex US Index in USD (price return) MSCI USA in USD (price return) Currency impact is approximated using the US Dollar Index, an index of the value of the United States dollar relative to a basket of foreign currencies, as the country allocation in the MSCI World ex US Index has changed over time. The US Dollar Index performance for the decade reported was % and is a proxy for the currency impact on the international markets. Source: Bloomberg Source: Bloomberg 5

6 A Swiss wealth manager focused on US investors UBS Swiss Financial Advisers ( UBS-SFA ) is an investment adviser based in Switzerland. We do one thing and one thing only: help US investors take advantage of the opportunities available to them to diversify their wealth internationally. Products and expertise for US investors Our specialty is discretionary mandates where you delegate the management of your assets to our team of professionals. We also offer advisory and specialty mandates ( see page 8 ). Because we only work with US investors, you can be sure that your adviser and our whole organization fully understand your situation and needs. We are fully conversant with all relevant US regulations and restrictions, particularly as they pertain to US investors investing abroad. Our experts also know how to craft an international portfolio to complement an already existing US strategy. Furthermore, our dedicated tax department provides you with all the information and reporting required by the IRS. We are registered both with the US Securities and Exchange Commission ( SEC ) and the Swiss Financial Market Supervisory Authority ( FINMA ). 6

7 At UBS-SFA, we believe banking is about relationships and close cooperation based on mutual trust and understanding. Our goal is to provide you the best possible conditions for success. We will do our best to support you in reaching your financial goals. René Marty, Chief Executive Officer, UBS Swiss Financial Advisers A long tradition of wealth management As a wholly-owned subsidiary of UBS, we are associated not only with the biggest bank in Switzerland, but also one of the best capitalized banks in the world. A premiere global financial institution, UBS looks back on some 150 years of experience serving the needs of wealthy individuals. Today, it also offers top-tier investment banking and global asset management services. The best products from around the world At UBS-SFA, we put UBS's long experience in international wealth management to work for our US clients. As a separate entity, however, we are not bound to UBS products and services. Quite the contrary, under our "open architecture" approach we constantly vet products from a large number of providers globally. We only offer you those which satisfy our standards not only in terms of quality and performance, but also with regards to their suitability from the point of view of a US-based investor. 7

8 Your choice our broad international offering Discretionary mandates UBS Portfolio Management Global UBS Portfolio Management International UBS Portfolio Management Asian Opportunities Geographical diversification Investment worldwide: North America, Western Europe, Asia Pacific, Emerging Markets Geographical diversification Investment outside North America: Western Europe, Asia Pacific, Emerging Markets Geographical diversification Investment in Asia: Asia-Pacific region ( ex-japan ) Main currency diversification USD, EUR, CHF, GBP, JPY, CAD, SEK, NOK, AUD, HKD, SGD Main currency diversification EUR, CHF, GBP, JPY, CAD, SEK, NOK, AUD, HKD, SGD Main currency diversification South Korean won, Taiwanese dollar, Hongkong dollar, Chinese renminbi, Indian rupee, Singapore dollar, Malaysian ringgit Strategies Fixed Income, Income, Yield, Balanced, Growth, Equity Strategies Fixed Income, Income, Yield, Balanced, Growth, Equity Strategies Equity Our international portfolios are designed to help you take advantage of geographical, currency and issuer diversification. At the heart of our offering you will find our mandates, which we describe below. Discretionary mandates With a discretionary mandate, after agreeing on your overall strategy and investment expectations, you delegate the dayto-day management of your assets to us. Each discretionary mandate is based on a strategic asset allocation built on three parameters: geography, currency and your preferred investment strategy ( determined among other things by your personal risk appetite ). This gives you a wide choice of basic allocations from which to start. As our mandates are fully customizable, you can choose at any time to under- or overweight geographies, currencies 8 and asset classes in your portfolio, based on your own experience and market expectations. Advisory mandates For those with the time and inclination to stay on top of global market developments on a regular basis, we also offer advisory mandates. With an advisory mandate you have access to the research and investment advice of our professionals, while ultimately making the final investment decisions yourself. Specialty mandates We also offer two specialty mandates: Cash mandate provides customized cash management for your liquidity needs. Precious metals mandate provides a hedge against currency devaluation and inflation risks.

9 The UBS-SFA investment process The strength of the mandate approach lies in our structured investment process. This process combines a top-down asset allocation with bottom-up security selection and is designed to generate above-average, sustainable, long-term performance with acceptable levels of risk. Our Investment Management team is staffed by more than 15 highly experienced, fulltime financial professionals, who design our high quality, well-diversified portfolios. The investment process is overseen by an Investment Committee made up of six financial professionals with extensive investment and banking experience. This committee includes the CEO and CIO of UBS-SFA. Together, these experts define the strategic and tactical asset allocation for each mandate. Working with our large network of international financial analysts, they find and select the securities that best reflect the tactical allocation ( always with an eye to the specific needs of US investors ). These are then provided to you and your adviser to form the basis of your own, customized portfolio. UBS Portfolio Strategy International UBS Managed Fund Portfolio Geographical diversification Investment outside North America: Western Europe, Asia Pacific, Emerging Markets Geographical diversification Investment worldwide: North America, Western Europe, Asia Pacific, Emerging Markets Main currency diversification EUR, CHF, GBP, JPY Main currency diversification USD, EUR, CHF, GBP, JPY Strategies Fixed Income, Income, Yield, Balanced, Growth, Equity Strategies Fixed Income, Income, Yield, Balanced, Growth, Equity World GDP Comparison % North America 6% Rest of world 6% Japan 20% European Union 28% Emerging Asia 20% Other emerging and developing countries Source: IMF, UBS WMR Today, 80 % of the world's investment opportunities lie outside North America. 9

10 Working together it s easier than you think Working with UBS-SFA is very easy. Other than the fact that your account will be outside the United States, you will find it to be hardly any different than when working with your US financial institution. A strong relationship with your adviser The basis of your relationship with us is your personal adviser. Based on in-depth, in person discussions with you about your financial situation, your goals, your risk parameters, and anything else pertinent to your situation, you and your adviser will develop and agree on your preferred strategy. This forms the basis of your portfolio. Your adviser will then see to it that the portfolio is implemented in the most efficient way and according to your wishes. As part of our standard process, we also monitor the performance and risk profile of your investments. In regular reviews with you, we look to see if any changes need to be made, either due to developments in the markets or in your personal situation. If anything comes up which requires more immediate action either an opportunity or a concern we will be in touch with you right away. Easy access and secure communication Although we are based in Zurich, you will find that we are quite close to you. Your adviser travels often to the United States and will be available to meet you in person. He or she is also always reachable by phone. When you open an account with us, you will in addition be given access to our secure online system. With it, you have a complete overview of all your assets and your portfolio performance any time you want. Would you like to know more? If you would like to know more about what we do and how we work, we would be delighted to sit down with you and go into more detail. Simply contact us at the address given at the end of this brochure and we can schedule an appointment. 10

11 Making it easy to file your taxes Tax compliance in the US can be a difficult task, especially for individuals with international investments. At UBS-SFA, we make it as easy as possible for you to prepare your US federal tax return by providing you ( or your accountant ) with the following information: IRS Form 1099 You will automatically receive an annual IRS Form FBAR reporting You will automatically receive the information necessary to complete the Treasury Department's Report of Foreign Bank Accounts ( FBAR Report ). Detailed tax reports Upon your request, we can provide detailed annual and quarterly tax reports. These contain all of the IRS Form 1099 information plus additional information which can be of use in filing, especially if you have a complex portfolio. This includes: Capital gain and loss information on each sale. The amount of foreign exchange gain or loss on investment and on movement in your cash accounts. Allocation of gain for more complex tax holdings such as foreign bonds and market discount bonds. Additional charges may apply. Tax reclaim When investing in foreign companies, some countries withhold a certain amount of tax on dividend and interest payments. We can help you in the tax reclaim process. 11

12 Contact us If you have any questions or are interested in working with us, simply contact our team in Zurich. Tel USA Tel. ( toll free ) [email protected] Website: ubs.com/ubs-sfa Important Information This publication is for your information only and is not intended as an offer, or a solicitation of an offer, to buy or sell any investment instrument. Although all information and opinions expressed in this presentation were obtained from sources believed to be reliable and in good faith, no representation or warranty, express or implied, is made as to its accuracy or completeness. All information and opinions as well as any prices indicated are subject to change without notice. At any time, UBS Swiss Financial Advisers AG ( "UBS-SFA" ) and other companies in the UBS group ( or employees thereof ) may have a long or short position, or deal as principal or agent, in relevant securities or provide advisory or other services to the issuer of relevant securities or to a company connected with an issuer of relevant securities. Some investment instruments may not be readily realizable since the market in these instruments is illiquid. Valuation of these instruments and identifying as well as quantifying the risk to which you are exposed may also be difficult. Investments in securities are not guaranteed by UBS-SFA. Some investments may be subject to sudden and large falls in value and on realization you may receive back less than you invested or may be required to pay more. Changes in FX rates may have an adverse effect on the price, value or income of an investment. Be aware that past performance of an investment instrument, an investment strategy or an index is not an indication of its future performance. UBS-SFA is of necessity unable to take into account the particular tax implications of an investment instrument and therefore recommends that you take specific advice on that from a specialized tax adviser. This document may not be reproduced or copies circulated without prior authority of UBS-SFA. Picture on page 6: 2009, ETH Zürich, Monte Rosa Hütte, Tonatiuh Ambrosetti. UBS Swiss Financial Advisers AG Loewenstrasse Zurich Switzerland ab UBS The key symbol and UBS are among the registered and unregistered trademarks of UBS. All rights reserved.