UBS Financial Services Inc. September 30, Prepared for: Managed Accounts Consulting. Your Branch Office and Financial Advisor: ACCOUNT PROFILE

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1 UBS Financial Services Inc Harbor Boulevard Weehawken, NJ September 30, 2011 ACCOUNT PROFILE Financial Advisor: Program: Investment Advisor: CHARLES ALVARE Managed Accounts Consulting UBS AG, NY SHORT DATED FI Prepared for: (TELLURIDE MOUNTAIN VILLAGE OWNERS ASSOCIATION) 113 LOST CREEK LANE SUITE A MOUNTAIN VILLAGE, CO Your Branch Office and Financial Advisor: Los Angeles, CA CHARLES ALVARE JP-RE JP RE-3-ME91-D0-1 Enclosed please find your Managed Accounts Consulting Portfolio Review for the most recent quarter. It is our goal to provide you with portfolio reporting that is comprehensive yet easy to understand. Please review this report carefully. Contact your Financial Advisor if you have any questions, if your financial situation, individual needs or investment objectives have changed. Contact your investment manager directly if you would like to impose or change any investment restrictions on this account.. This report is not meant to supersede your UBS Financial Services Inc. account statement which should be reviewed regularly. Please report any discrepancies to your Financial Advisor immediately. MA001009

2 Managed Accounts Consulting Program Your Quarterly Portfolio Review September 30, 2011 At UBS, we are committed to helping you work toward your financial goals. So that we may continue providing you with financial advice that is consistent with your investment objectives, please consider the following: 1) Have there been any changes to your financial situation or investment objectives? If the answer is "yes," it is important that you contact your Financial Advisor as soon as possible to discuss these changes. 2) Would you like to implement or modify any restrictions regarding the management of your account? If the answer is "yes," it is important that you contact your investment manager directly to discuss these changes as soon as possible. A complimentary copy of our current Form ADV Disclosure Brochure that describes the advisory program and related fees is available through your Financial Advisor. Please contact your Financial Advisor if you have any questions. MA

3 PORTFOLIO SUMMARY * September 30, 2011 The pie chart provides a snapshot of the allocation of equity, fixed income and cash in your current holdings. The graph illustrates the sources of your portfolio s growth in dollar terms. ASSET ALLOCATION Cash 0.45% Fixed 99.55% Market Value $ (Thousands) 16,000 15,000 14,000 13,000 12,000 11,000 10,000 9,000 SOURCES OF PORTFOLIO GROWTH 8,000 06/08 09/08 03/09 09/09 03/10 09/10 03/11 09/11 Inception 07/29/08 Ending Market Value Net Contributions Value Percent Allocation Cash/Cash Alternatives 53, Equity Fixed Income 11,887, Total Portfolio 11,940, Quarter 06/30/11 - Period 07/31/08 - Since Inception 07/29/08 - Beginning Market Value 12,234, ,217,999 13,824,990 Net Contributions -550, ,839, ,839, Investment Results * 256, , ,955, (Includes Program Fee) Ending Market Value 11,940, ,940, ,940, * Please refer to your monthly statement for fee detail. Any fees paid directly and not deducted automatically from the account have not been included in this analysis. The market values included in the Sources of Portfolio Growth do not include Accrued Interest. *Please refer to the Portfolio Review Reference Guide on the last page for all footnotes. MA Page 1

4 PERFORMANCE ANALYSIS * 07/31/2008 through 09/30/2011 This graph compares the performance of your portfolio to the performance of benchmark indexes over various time periods. Performance has been calculated before deduction of wrap program fees. The payment of actual fees and expenses will reduce a client s return. Although it is important to evaluate your portfolio s performance over multiple time periods, we believe the greatest emphasis should be placed on the longer period returns. Rate of Return % Quarter 06/30/11 - Year to Date 12/31/10-1 Year 09/30/10-2 Years 09/30/09-3 Years 09/30/08 - Period 07/31/08 - Total Portfolio (gross) Comparative Index * Custom Index * CPI * U.S. T-Bills Your annualized account performance from an inception date of 07/29/08 is 5.55% 1 Comparative Index at quarter end: Barclays Aggregate Bond. Please refer to the Additional Account Information page for current and historical benchmark settings. UBS Financial Services Inc. cannot make any representation as to the accuracy or completeness of any index information presented. Ineligible securities (if any) held in this account are included in the performance calculations. * Please refer to the Portfolio Review Reference Guide on the last page for all footnotes. MA Page 2

5 QUARTERLY PORTFOLIO RETURNS * 07/29/2008 through 09/30/2011 This report summarizes your portfolio s gross and net returns for each quarter since inception, as well as for each calendar year. Net return is calculated after the deduction of wrap account fees. Please refer to the footnote below (+) for a description of any wrap fees that have not been included in this analysis. Quarter Ending Year Ending Total Portfolio Gross Returns Total Portfolio Return Net of Fees * Quarter (%) Year (%) Quarter (%) Year (%) 07/29/08-12/31/ /31/ /30/ /30/ /31/ /31/ /30/ /30/ /31/ /31/ /30/ Annualized Rate of Return Since Inception 07/29/ Annualized Rate of Return for 07/31/ This portfolio return uses a start date of 07/29/08 for performance measurement. Wrap fees deducted from the account prior to this date, or any wrap fees after this date not automatically deducted from the account, have not been included in this analysis. Such fees will reduce portfolio returns. Rates of return for periods greater than one year have been annualized. *Please refer to the Portfolio Review Reference Guide on the last page for all footnotes. MA Page 3

6 ADDITIONAL ACCOUNT INFORMATION * September 30, 2011 In our attempt to provide you with the highest quality information available, we have compiled this report using data obtained from recognized statistical sources and authorities in the financial industry. While we believe this information to be reliable, we cannot make any representations regarding its accuracy or completeness. Available to you at no additional charge is a current Disclosure Document which describes the advisory programs and related fees of UBS Financial Services Inc. Please contact your Financial Advisor if you would like a copy. Comparative Index For the period 07/08 to present, your portfolio was compared against a comparative index represented by: Barclays Aggregate Bond Custom Index For the period 07/08 to present, your portfolio was compared against a custom index represented by: Barclays Aggregate Bond Please Contact your Financial Advisor if you would like to change your current or historical benchmark settings. *Please refer to the Portfolio Review Reference Guide on the last page for all footnotes. MA Page 4

7 FINANCIAL MARKETS SUMMARY Periods Ending September 30, 2011 For your comparison, this list provides the performance of market indexes representing a broad range of asset classes, market segments and investment styles. U.S. Equity Dow Jones Industrial Average S&P 500 S&P 500 Growth S&P 500 Value Wilshire 5000 Russell 1000 Russell 1000 Growth Russell 1000 Value Russell 3000 S&P 400 Midcap Russell 2500 Russell 2500 Growth Russell 2500 Value Russell 2000 Russell 2000 Growth Russell 2000 Value NAREIT Equity NASDAQ Composite Russell Midcap Value Russell Midcap Growth Russell 3000 Tech Russell Midcap U.S. Fixed Income Barclays Aggregate Bond Barclays Gov/Credit Barclays Gov/Credit - Int. Barclays Gov/Credit - L.T. Barclays Municipal Bond Barclays Municipal - 7Yr. International Equity MSCI EAFE Net MSCI World MSCI Emerging Markets Balanced 60% S&P % Gov/Credit 50% S&P % Gov/Credit Quarter Year Years Years Years Years 40% S&P % Gov/Credit U.S. Cash Alternatives US Treasury Bill - 3 Month Miscellaneous CPI MA Page 5

8 PORTFOLIO REVIEW REFERENCE GUIDE Performance Calculations Performance calculations are presented on a time-weighted basis. Accrued interest on fixed income investments is included in the performance calculations. Ineligible securities (if any) held in this account are included in the performance calculations. All portfolio and index calculations are as of month-end for all periods shown. Returns for periods greater than one year are annualized. Your first Portfolio Review is provided once your account has been actively managed for a full calendar quarter. Performance has been calculated before the deduction of wrap fees. Additionally, performance net of all fees is shown on the page entitled "Quarterly Portfolio Returns." These fees will reduce your actual portfolio returns. Past performance does not guarantee future results. Net Contributions (as displayed in "Sources of Portfolio Growth"): The sum of cash and securities added to or subtracted from your account. Program fees, to the extent deducted from your account, are reflected under Investment Results. Standard Deviation - A statistical measure of the variability of investment returns. If "NA" appears, one full year of data is required before standard deviation measures are statistically valid. Benchmark Indexes Comparative Index - The Comparative Index for your account is a blended index comprised of indexes designed to reflect the asset categories in which your account is invested. The Comparative Index may consist of a blend of up to six indexes. Indicated Annual Income - An estimate of annual income in dollars based on the most recent dividend payment in the case of common stocks or the coupon interest rate in the case of fixed income securities. The most recent quarterly payment is multiplied by four to calculate an annual estimate. Current Yield - Expresses the income generated as a percentage, by dividing the Indicated Annual Income by the market value of the security. Ineligible Assets - We require that you hold and purchase only eligible managed assets in your advisory accounts. Please contact your Financial Advisor for a list of the eligible assets in your program. These reports may provide performance information for eligible and ineligible assets in a fee-based program. Since ineligible assets are not considered fee-based program assets, the inclusion of such securities will distort the actual performance of your advisory assets. As a result, the performance reflected in this report can vary substantially from the individual account performance reflected in the performance reports provided to you as part of those programs. For fee-based programs, fees are charged on the market value of eligible assets in the accounts and assessed quarterly in advance, prorated according to the number of calendar days in the billing period. Neither UBS nor your Financial Advisor will act as your investment adviser with respect to Ineligible Assets. The investment advisory programs and brokerage accounts we offer are separate and distinct and each is governed by different laws and separate contracts with you. While there are similarities among the brokerage and advisory services we provide, depending on the capacity in which we act, our contractual relationship and legal duties to you are subject to a number of important differences. It is important that you carefully read the agreements and disclosures that we provide to you with respect to our products or services. Please speak with your Financial Advisor or visit our web site at for more information. Custom Index - The Custom Index is an optional index selected by you which may consist of a blend of up to six indexes and a option of adding or subtracting an annualized return value. Investment Objective - Investment Objective is an optional annualized return objective selected by you. In establishing this objective, you should make sure that it is consistent with your tolerance for risk. Equity/Fixed Income Portion of the Comparative Index - The Equity portion of your Comparative Index represents the returns associated with the equity indexes making up the Comparative Index. The Fixed portion of your comparative index represents the returns associated with the Fixed Income indexes making up the Comparative Index. For example, if your Comparative Index consists of 20% S&P 500 Stock Index, 40% Russell 2000 Stock Index and 40% Barclays Municipal Bond Index the equity portion of the Comparative Index is comprised of the S&P 500 and the Russell The fixed portion is comprised of the Barclays Municipal Bond Index. In calculating the return for each portion the indexes are weighted based on their relative percentages ( i.e., the Russell 2000 at 40% is weighted twice as much as the S&P 500 at 20%). CPI - The Consumer Price Index for Urban Wage Earners and Clerical Workers-U.S. City Average, All Items. Based on monthly data published by the U.S. Department of Labor. The CPI for the most recent month is estimated due to the delayed release of CPI data by the U.S. government. Therefore, CPI for the most recent month is assumed to be equal to the CPI for the previous month. This may understate or overstate CPI performance for the current quarter, but generally has a negligible impact over longer periods of time. CPI + % - CPI + % is an optional index that if selected, will replace the standard CPI measure on your Review if elected. This index consists of the CPI return plus an absolute annualized return selected by you. For more information regarding the indices, please contact your Financial Advisor. Portfolio Holdings Market Price - All securities are priced as of the end of the period unless otherwise noted. Every reasonable attempt has been made to accurately price securities, however no warranty is made with respect to any security s price. Securities that have no readily obtainable market value are carried either at your cost or at the most recently obtainable price. Such pricing may affect the performance information provided. MA Page 6