For marketing purposes Spain edition Data as at end-May 2026, unless otherwise indicated UBS Solactive US Listed Gold & Silver Miners UCITS ETF USD acc Fund Fact Sheet UBS Exchange Traded Funds > UBS (Irl) ETF plc Fund descriptionLower riskHigher risk • The investment objective is to replicate the priceTypically lower rewards Typically higher rewards and return performance of the Solactive Gold & Silver Miners US Listings Carbon Tilted Index net 12345 6 7 of fees (this subfund's "Index"). A category 1 rating should not be construed as indicating that the investment is free of any risk. • The security exchange price may differ from the net asset value.Performance (basis USD, net of fees)1 • The fund is passively managed. Rebased to 100 on the basis of month-end datain % • The product described herein aligns to Article 8450 +350 of Regulation (EU) 2019/2088. 400 +300 For further information, please see the Key Information Document 350 +250 (KID) available at: www.ubs.com/espanafondos. 300 +200 Name of fund UBS Solactive US Listed Gold & Silver Miners 250 +150 UCITS ETF 200 +100 Share classUBS Solactive US Listed Gold & Silver Miners UCITS ETF USD acc 150 +50 ISIN IE000EPIJ442 100 0 UCITS V yes 50-50 Launch date21.01.2025 2021 2022 2023 2024 2025 2026 Currency of fund / share USD/USD classFund performance net of fees (left-hand scale) TER (flat fee) 0.36% Fund performance per year in % net of fees (right-hand scale) Name of the Management UBS Asset Management (Europe)Index (benchmark) performance (left-hand scale) Company S.A., Luxembourg Accounting year end 31 December Past performance is not a reliable indicator of future results. If Distribution Reinvestment the currency of a financial product, financial service or its costs is Replication methodology Physical (Full replicated) different from your reference currency, the return and/or costs Portfolio management UBS Asset Management (UK) Ltd.,can increase or decrease as a result of currency fluctuations. representatives London Fund domicileIreland SFDR Alignment Art.8 Performance in % (net of fees) Fund statistics Net asset value (USD, 29.05.2026) 16.44 in % 1 year Ø p.a. 22 years Ø p.a. 3 3 years Last 12 months (USD) – high 21.39 years years Last 12 months (USD) – low 8.34 Fund (USD) 105.37 n.a. n.a.n.a. n.a. Total fund assets (USD m) 153.41 Benchmark2 106.23 203.27 280.52 74.15 56.12 Share class assets (USD m)153.41 The performance shown does not take account of any commissions, entry or exit charges. 2 years 3 years 5 years 1 These figures refer to the past. Source for all data and chart (if not indicated otherwise): UBS Asset Volatility1 Management. – Fund n.a. n.a. n.a. 2 Index (benchmark) in currency of share class (without costs) – Benchmark n.a. n.a. n.a. Index description Tracking error (ex post) n.a. n.a. n.a. The Solactive Gold & Silver Miners US Listings Carbon Tilted Index measures the 1 Annualised standard deviation performance of US listed (domestic and international) Gold and Silver mining companies. The weighting of the index components combines a weighting by market capitalization and a weighting by carbon intensity. Thus, companies which have lower carbon emissions make up a bigger part of the index. Index name Solactive Gold & Silver Miners US Listings Carbon Tilted Index NTR Index typeTotal Return Net Bloomberg ticker SOLGSMUN Reutersn.a. Before making any investment decisions, we recommend that you read the Key Information Document (KID) and Prospectus, which are available at: www.ubs.com/espanafondos. 1¦3 UBS Solactive US Listed Gold & Silver Miners UCITS ETF USD acc Market exposure (%) 10 largest equity positions (%)IndexFund Canada 66.1 Newmont Corp10.0 United States 14.9 Anglogold Ashanti Plc9.7 South Africa9.4 Agnico Eagle Mines Ltd 9.2 Others 9.7 Pan American Silver Corp 8.2 Kinross Gold Corp8.2 Barrick Mining Corp 7.8 Gold Fields Ltd 7.3 Alamos Gold Inc 6.0 Coeur Mining Inc 4.8 First Majestic Silver Corp 3.8 Benefits Risks Clients benefit from the investor protection offered by a fund. This UBS Exchange Traded Fund invests in US listed mining Provides access to this segment of the market with a single companies and may therefore be subject to high fluctuations transaction. in value. This Fund may not be appropriate for investors who Optimised risk/return profile thanks to a broad diversification plan to withdraw their money before the recommended across a range of countries and sectors. holding period disclosed in the PRIIPs KID. Sustainability risks The fund offers a high degree of transparency and cost are environmental, social or governance events or conditions efficiency and is easy to trade. that can have a material negative effect on the return, UCITS compliant fund.depending on the relevant sector, industry and company exposure. Sustainability risk: the risk arising from any environmental, social or governance events or conditions that, were they to occur, could cause a material negative impact on the value of the investment. All investments are subject to market fluctuations. Every fund has specific risks, which can significantly increase under unusual market conditions. As a result, the net asset value of the funds assets is directly dependent on the performance of the underlying index. Losses that could be avoided via active management will not be offset. Listing and trading information Exchange Trading currencyTrading hours (local time) Bloomberg TickerReuters RIC iNAV Bloomberg Borsa ItalianaEUR 09:00am - 05:30pm CETGSM IM GSM.MIGSMEURIV Deutsche Börse (XETRA)USD 09:00am - 05:30pm CETBCFR GY BCFR.DE GLDSLUIV SIX Swiss ExchangeUSD 09:05am - 05:30pm CETGLDSL SWGLDSL.S GLDSLUIV 2¦3 UBS Solactive US Listed Gold & Silver Miners UCITS ETF USD acc For more information Registrations for public distribution Phone: +34-917-457 000 AT, AU, CH, DE, DK, ES, FI, FR, GB, IE, IT, LI, LU, NL, NO, SE Internet: www.ubs.com/espanafondos Contact your client advisor Your capital is at risk. The value of an investment may fall as well as rise and you may not get back the original amount. Please note that additional fees (e.g. entry or exit fees) may be charged. Please refer to your financial adviser for more details. Investors should read the Key Information Document, Prospectus and any applicable local offering document prior to investing and to get complete information of the risks. Investors are acquiring units or shares in a fund, and not in a given underlying asset such as building or shares of a company. For a definition of financial terms refer to the glossary available at www.ubs.com/am- glossary. For marketing and information purposes by UBS. UBS funds under Irish law. Arrangements for marketing fund units mentioned in this document may be terminated at the initiative of the management company of the fund(s). CNMV registration number: UBS (Irl) ETF plc 1507. Prospectuses, key information document (KID) where applicable, the articles of association or the management regulations as well as annual and semi-annual reports are available for the purpose of inspection and obtaining copies thereof in a language required by the local applicable law free of charge at UBS Europe SE, sucursal en España, MARÍA DE MOLINA Nº 4, E-28006 MADRID / AVENIDA DIAGONAL Nº 640, 2º A, E-08017 BARCELONA and online at www.fundinfo.com. The product described herein aligns to Article 8 Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector. Information on sustainability-related aspects pursuant to that regulation can be found on www.ubs.com/funds. The benchmark is the intellectual property of the respective index provider. The fund or the share class is neither sponsored nor endorsed by the index provider. The fund prospectus or supplemental prospectus contains the full disclaimer. Before investing in a product please read the latest prospectus and key information document or similar legal documentation carefully and thoroughly. Any decision to invest should take into account all the characteristics or objectives of the product as described in its prospectus, or similar legal documentation. Investors are acquiring units or shares in a fund, and not in a given underlying asset such as building or shares of a company. The information and opinions contained in this document have been compiled or arrived at based upon information obtained from sources believed to be reliable and in good faith, but is not guaranteed as being accurate, nor is it a complete statement or summary of the securities, markets or developments referred to in the document. Any Index referenced in this document is not administered by UBS. Members of the UBS Group may have a position in and may make a purchase and / or sale of any of the securities or other financial instruments mentioned in this document. Units of UBS funds mentioned herein may not be eligible for sale in all jurisdictions or to certain categories of investors and may not be offered, sold or delivered in the United States. The information mentioned herein is not intended to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. Past performance is not a reliable indicator of future results. The calculated performance takes all costs on the product level into consideration (ongoing costs). The entry and exit costs, which would have a negative impact on the performance, are not taken into consideration. If whole or part of the total costs to be paid is different from your reference currency, the costs may increase or decrease as a result of currency and exchange rate fluctuations. Commissions and costs have a negative impact on the investment and on the expected returns. If the currency of a financial product or financial service is different from your reference currency, the return can increase or decrease as a result of currency and exchange rate2864080|2864079 fluctuations. This information pays no regard to the specific or future investment objectives, financial or tax situation or particular needs of any specific recipient. Future performance is subject to taxation which depends on the personal situation of each investor and which may change in the future. The details and opinions contained in this document are provided by UBS without any guarantee or warranty and are for the recipient's personal use and information purposes only. This document may not be reproduced, redistributed or republished for any purpose without the written permission of UBS Asset Management Switzerland AG or a local affiliated company. Source for all data and charts (if not indicated otherwise): UBS Asset Management. A summary of investor rights in English can be found online at www.ubs.com/funds-regulatoryinformation. More explanations of financial terms can be found at www.ubs.com/am-glossary. © UBS 2026. The key symbol and UBS are among the registered and unregistered trademarks of UBS. All rights reserved. 3¦3 UBS Solactive US Listed Gold & Silver Miners UCITS ETF ESG Report Terms used within this document do not refer to or relate to any regulatory definitions or provisions. Where applicable, a country-specific notice is provided in this document and must be read in conjunction with the factsheet. ESG is an abbreviation for Environmental, Social and Governance (factors). These factors are used to evaluate companies and countries on how advanced they are with respect to sustainability. Once sufficient data on these factors are available, they can be used to assess and compare assets and also to inform the investment process when deciding what assets to buy, hold or sell. In addition to the fund’s specific ESG characteristics and/or objectives, the details of which can be viewed in the fund’s legal documents, the following approaches are applied: Exclusion ESG Integration Voting Engagement program For more information refer to the glossary. For details on specific ESG characteristics and/or objectives including exclusion thresholds or any other binding criteria, refer to fund’s legal documents. Source: UBS Asset Management The following illustrations provide transparency on key sustainability metrics that may be of interest to investors but may not be part of the fund’s investment process. This information is provided to enable comparison with other financial products and to help investors assess their exposure to ESG topics.ESG details of the top 10 equity positions Business activities and norms check (in % of fund AuM)1,2 (in % of fund AuM)1,2 Holding (equities) Weight ESG Score Newmont Corp 10.06.3 UN Global 7.79 Anglogold Ashanti Plc9.7 6.1 Compact breach10.79 Agnico Eagle Mines Ltd 9.2 7.2 Pan American Silver Corp 8.2 6.9 Adult 0.00 entertainment 0.00 Kinross Gold Corp8.2 7.7 Barrick Mining Corp 7.8 4.6 Gold Fields Ltd 7.3 8.5Thermal 0.00coal mining 0.00 Alamos Gold Inc 6.0 6.4 Coeur Mining Inc 4.8 6.20.00 First Majestic Silver Corp 3.8 4.4 Tobacco0.00 1 This is not a recommendation to buy or sell any security 2 AuM = Assets under Management Source: MSCI ESG Research Controversial 0.00 weapons 0.00 Fund Reference index1 The fund excludes issuers identified as violating the UN Global Compact principles without credible corrective action.2 AuM = Assets under Management Source: MSCI ESG Research, UBS-AM exclusion policy (ISS Ethix)Reference Index: Solactive Gold & Silver Miners US Listings Index The reference index used on this page is the parent index which does not seek to include certain environmental or social characteristics promoted by the financial product in its construction and is different form the designated reference benchmark. ESG Report | 1:3 UBS Solactive US Listed Gold & Silver Miners UCITS ETF ESG Report Country-specific notice: UK: If this product is distributed in the UK, please note: This product is based overseas and is not subject to the UK sustainable investment labelling and disclosure requirements (SDR). This product does not make any claims under the UK SDR. Glossary Business activities and norms check: Controversial that issuers / companies in this portfolio were chosen with the Business Involvement exposure is the exposure to companies goal to actively engage. Information on UBS Asset with a revenue share exceeding a certain threshold of theManagement's selection of issuers / companies, engagement respective field (production). Link to our Approach to activities, prioritization process and understanding of Exclusion for more details: -> link concerns can be found in the UBS Asset Management Stewardship Annual Report and in our stewardship approach. UBS AM sustainability approaches applied: Exclusion: Strategies that exclude securities from funds where Aggregation of ESG/carbon data: ESG scores of holdings they are not aligned to an investor's values. Includes in the portfolio and the reference index are aggregated based customized screening criteria. Subject to certain activities and on their respective individual weights and ESG scores threshold limitations. For details please refer to fund’s legal (sumproduct). documents. ESG Integration: Strategies that integrate environmental,Passive ESG: Benchmark selection is driven by portfolio social, and governance (ESG) factors into fundamentalimplementation considerations, in particular to closely reflect financial analysis to improve the risk/return profile. This the financial and ESG objectives of the fund. For passively approach may have limited or no impact on portfolio managed strategies, an ESG benchmark would be selected composition. However, where fund‑specific exclusions exist infor the purpose of balancing between reasonable tracking relation to ESG integration or sustainability profile risks, as set error and high ESG alignment. In order to assess the out in the fund’s legal documents, these may lead to magnitude of ESG improvements, the fund's ESG divestment and/or a reduced position size within a portfolio.performance is also shown against a selected broad market Voting: Voting refers to how UBS Asset Managementindex which closely represents the parent investment universe exercises proxy voting rights to act in the best financial on which the ESG benchmark is based. interests of clients and support long term value creation. We promote strong corporate governance and responsible Fund of funds investments, derivatives and cash: business practices in the companies in which we invest onDerivatives and fund of funds investments used in the behalf of our clients. Our approach is guided by our internalportfolio are treated on a lookthrough basis, whereby the standards as outlined in the latest UBS Asset Management economic exposures to the underlying basket of securities is Corporate Governance & Proxy Voting Policy. This is not an treated as an actual investment in the individual securities indication that voting on sustainability-related topics has that make up this basket. Broad market derivatives or fund of taken place with respect to companies in this portfolio during funds investments may lead to minimal exposures to securities any given time period. that are excluded from direct investments.Derivatives have an Engagement program: We regard engagement to be a two-effect on all metric calculations. Given that many of the way mutually beneficial dialogue with an issuer / company, reporting frameworks available to investors today do not with the objective to share information, enhance cover the intricacies of derivatives, metrics are provided on a understanding and help to improve business practices and reasonable efforts basis.Portfolios for which we report the performance. The issuers / companies we engage with are sustainability metrics may include cash.The information selected from across the universe in which UBS Asset disclosed in this report, in particular the treatment of Management invests using a top-down approach in derivatives and cash, may or may not correspond with the accordance with our principles, as outlined in our stewardship investment characteristics of the fund and how the fund is approach. This is not an indication that sustainability-related managed. The sustainability metrics in this report may engagement has taken place with respect to issuers / therefore differ from other UBS reports produced on the same companies in this portfolio during any given time period or date. The reference index used on this page is the parent index which does not seek to include certain environmental or social characteristics promoted by the financial product in its construction and is different form the designated reference benchmark. ESG Report | 2:3 UBS Solactive US Listed Gold & Silver Miners UCITS ETF ESG Report Important information about sustainable investing strategies Sustainable investing strategies aim to consider and incorporate environmental, social and governance (ESG) factors into investment process and fund construction. Strategies across geographies and styles approach ESG analysis and incorporate the findings in a variety of ways. Incorporating ESG factors or sustainable investing considerations may inhibit UBS’s ability to participate in or to advise on certain investment opportunities that otherwise would be consistent with the Client’s investment objectives. The returns on a fund consisting primarily of sustainable investments may be lower or higher than funds where ESG factors, exclusions, or other sustainability issues are not considered by UBS, and the investment instruments available to such funds may differ. Companies, product issuers and/or manufacturers may not necessarily meet high performance standards on all aspects of ESG or sustainable investing issues. Reconciliation of Assets under Management (AuM) This report does not contain reconciled AuM positions, it only takes in consideration positions with settlement date as of report date. This means that traded but not settled positions are not included. Therefore, AuM figures in this report may differ from other UBS reports produced on the same date. Although UBS Asset Management information providers, including without limitation, MSCI ESG Research LLC and its affiliates (the “ESG Parties”), obtain information from sources they consider reliable, none of the ESG Parties warrants or guarantees the originality, accuracy and/or completeness of any data herein. None of the ESG Parties makes any express or implied warranties of any kind, and the ESG Parties hereby expressly disclaim all warranties of merchantability and fitness for a particular purpose, with respect to any data herein. None of the ESG Parties shall have any liability for any errors or omissions in connection with any data herein. Further, without limiting any of the foregoing, in no event shall any of the ESG Parties have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. Certain information contained herein (the “Information”) is sourced from/copyright of MSCI ESG Research LLC (a Registered Investment Adviser under the Investment Advisers Act of 1940), or its affiliates (including MSCI Inc. and its subsidiaries (“MSCI”)), or third party suppliers (together with MSCI & MSCI ESG, the “ESG Parties”) and may have been used to calculate scores, ratings or other indicators. It may not be reproduced or redisseminated in whole or part without prior written permission. The Information has not been submitted to, nor received approval from, the US SEC or any other regulatory body. The Information may not be used to create any derivative works, or in connection with, nor does it constitute, an offer to buy or sell, or a promotion or recommendation of, any security, financial instrument or product, trading strategy, or index, nor should it be taken as an indication or guarantee of any future performance, analysis, forecast or prediction. Some funds may be based on or linked to MSCI indexes, and MSCI may be compensated based on the fund’s assets under management or other measures. MSCI has established an information barrier between equity index research and certain Information. None of the Information in and of itself can be used to determine which securities to buy or sell or when to buy or sell them. The Information is provided “as is” and the user assumes the entire risk of any use it may make or permit to be made of the Information. No ESG Party warrants or guarantees the originality, accuracy and/or completeness of the Information and each expressly disclaims all express or implied warranties. No ESG Party shall have any liability for any errors or omissions in connection with any Information herein, or any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. The reference index used on this page is the parent index which does not seek to include certain environmental or social characteristics promoted by the financial product in its construction and is different form the designated reference benchmark. ESG Report | 3:3 UBS Solactive US Listed Gold & Silver Miners UCITS ETF USD acc UBS AM standard glossary. For additional investment terms, please refer to the online glossary here. Accumulation: Reinvestment of income generated by the Equities: Securities that represent an equity interest in a investment fund into the fund's assets.company. As a joint owner, the shareholder has rights of Active management: Here the fund manager uses theirparticipation (voting right, right to information) and rights to expertise to pick investments to achieve the fund's objectives.assets (right to a share of profits, subscription rights). Alpha: A fund's alpha is its outperformance relative to a Exchange traded fund (ETF): An investment fund that is benchmark. If a fund has a consistently high alpha this cantraded like stocks on an exchange. Most ETFs are index funds: indicate skillful management. If the benchmark returns 12% they hold the same securities in the same proportions as a and the portfolio returns 14%, the outperformance (alpha) is certain index. equal to 14% - 12% = 2%. Compare with beta.Feeder fund: An investment fund that invests the majority of Benchmark: Index against which an investment fund'sits assets into a master fund. performance is measured. Also called a reference index.Flat fee: UBS applies a so-called flat fee to most securities Beta: A measure of risk that indicates an investment's and money market funds. This fee is charged to the fund's sensitivity to fluctuations in the market, as represented by the assets and covers all expenses incurred in the management, relevant benchmark. For example, a beta of 1.2 tells us that administration and safekeeping of the fund's assets as well as the value of an investment fund can be expected to change costs incurred in the distribution of the fund (printing by 12% if the market is forecast to move by 10%. prospectuses, annual and semi-annual reports, costs for Bonds: Debt instruments with a fixed or variable rate of auditing and publication of prices, fees charged by the interest and generally with a fixed maturity and redemptionsupervisory authority etc.). The only costs not covered are date. The most common issuers are major companies, transaction costs incurred in the administration of the fund's government bodies such as the federal government and the assets (brokerage fees in line with the market, fees, duties cantons, public institutions, and international organizations etc. as well as any applicable taxes). UBS's flat fee is such as the World Bank or the International Monetary Fund. comprehensive and very client-friendly. It cannot be compared Commodities: A tradeable item that can be further with similarly named fees from other fund providers, because processed and sold. Industrial (metals), agricultural (wool, these often only cover part of the investor's effective costs. wheat, sugar) and bulk commodities (coal, iron ore) areAlso refer to "management fee". The flat fee is not charged examples. It is possible to invest in physical commodities or in to the investor, but directly to the fund's assets. For example, derivatives based on commodity prices. UBS Funds domiciled in Luxembourg, Switzerland or Germany Convertible bonds: Bonds that feature a conversion right with the exception of UBS Real Estate Funds, charge a "Flat entitling the holder to convert the bond into shares of thefee". company in question at a certain point in time and at a pre- Hedging: Protecting investments against losses. UBS asset defined conversion ratio. allocation funds and hedged UBS ETFs specifically hedge Corporate bonds: Strictly speaking, corporate bonds areagainst exchange rate risks. those issued by companies. Generally, however, the term is High watermark: The high watermark is used in connection used to cover all bonds other than those issued by with the performance fee. The fund manager calculates his or governments in their own currencies. Therefore the "credit"her share of the profits on the basis of the value increment sector, as it is often known, includes issues by companies,over and above the last peak in the NAV. As a result, the supranational organizations and government agencies. The performance fee does not become payable until all losses key feature that distinguishes corporate bonds fromincurred have been completely recovered. government bonds is the risk of default – see credit risk. High yield bonds: Bonds issued by borrowers with lower Correlation: A measure of the degree to which the pricecredit ratings. Such bonds offer higher rates of interest, but at trends of various investment categories or instruments movethe same time there is also a higher risk of default, i.e. that in the same direction. interest payments will not be paid or that the face value will Derivatives: Investments whose value is linked to another not be repaid. investment, to the performance of a stock exchange or to Illiquid: Illiquid assets are those assets that cannot be easily some other variable factor, such as interest rates.bought, sold, or converted into cash. It may often be Distribution: Payment by an investment fund to distribute impossible to convert the asset to cash until the end of the the income generated to its unit holders. life of the asset. Diversification: Holding a variety of investments that Index: Indicator of performance on one or more markets. typically perform differently from one another.The oldest and best-known stock market index is the Dow Duration: The duration represents the length of time for Jones. Indexes make it possible to compare the performance which capital is "tied up" in a bond investment. The concept of a fund invested in a specific market with the development of duration takes account of the time structure of returning of that market. cash flows (such as coupon repayments). The averageIndex fund: An investment fund that replicates a chosen duration of the portfolio is derived from the weighted stock market index in its stock selection and weightings as average duration of the individual securities. The "modified exactly as possible. duration" is derived from the duration and provides a Inflation-linked bonds: An inflation-linked bond provides measure of the sensitivity of bonds or bond portfolios to investors with protection from inflation by linking its principal interest rate changes. amount or interest payments to a specific inflation index. Emerging economy or market: Emerging markets orInvestment grade: Term used to denote securities with developing markets – mainly in Asia, Eastern Europe, and ratings of between BBB and AAA, indicating that their credit Latin America – that are growing quickly, but whosequality is satisfactory or good. economies and stock markets have not yet reached Western Leverage: With derivative instruments, greater returns can standards. be earned with a comparatively lower capital investment thanGlossary 1 ¦ 2 UBS Solactive US Listed Gold & Silver Miners UCITS ETF USD acc with an investment in the actual underlying instrument. This Share class: An investment fund can issue several types of effect is called leverage. share certificates with different criteria. The share certificate Management fee: The charge levied by the managementclasses may differ in the amount of fees, the appropriation of company for the administration of an investment fund. The income or the currency of the share certificate class. amount of the fee is expressed in percentage or tenth of a Sharpe ratio: A measure that expresses how much higher (or percentage of the fund assets or in basis points. Less lower) a return an investor can expect compared to the risk- comprehensive than UBS's all-in fee and covers only part offree rate of interest (e.g., interest rates on savings accounts) the costs due. per unit of risk (volatility). The risk-free rate of interest varies Management style: Manner in which investment decisions from currency to currency. are made to achieve the investment objective (see also active Standard deviation: Statistical measure of the degree to management and passive management).which an individual value in a probability distribution tends to Master fund: Funds invested in respective feeder funds thatvary from the mean of the distribution. The greater the are then invested into the master fund. The master funddegree of dispersion the greater the risk. holds the portfolio investments and conducts all trading Swing pricing: Method used to calculate the net asset values activity. of investment funds. This method allows transaction costs Maturity: Period from the issue of a bond to its due date or arising from subscriptions made by incoming investors and to the premature repayment of the bond. Not to be confused redemptions made by outgoing investors to be borne by the with duration. incoming and outgoing investors, rather than existing Net asset value (NAV): Used to describe the value of a investors. company's assets less the value of their liabilities. Switching costs: The costs of buying and selling investments Ø – Average. in order to implement a change in investment strategy. Over the counter (OTC): An over-the-counter financial Synthetic replication: In contrast to physical replication, contract is one that is not traded on an exchange but is synthetic replication means that an ETF does not invest "tailor-made" for a client by a financial institution. directly in the securities held in the benchmark. Instead, it Passive management: Passive management seeks to attain enters into a swap agreement with a counterparty that performance equal to market or index returns. promises to pay the return on the replicated index to the ETF. Performance fee: For non-classical investment funds such asTotal expense ratio (TER): The ratio of total expense to a hedge funds, the investor must often pay, in addition to the fund's average size over an annualized accounting period. conventional management fee, a supplementary performance Expenses are considered to include all expenses shown in the fee in the form of a percentage (e.g. 20%) of the fund's income account, including management, administration, annual increase in value. custody, audit, legal and professional fees. For ETFs, the term Physical replication: In physical replication, an ETF invests TER may be used interchangeably for the flat fee (current). directly in securities held in the benchmark it is tracking. ToTracking error: Measure of the deviation of a fund's return do so, the ETF can buy some or all of the securities that make compared to the return of a benchmark over a fixed period, up the replicated index – this method is called full replication expressed as a percentage. The more passively the investment and is suitable for liquid indexes.fund is managed, the smaller the tracking error. Rating: The measure of a borrower's creditworthiness byUCITS: Undertakings for Collective Investment in Transferable special rating agencies such as Standard & Poor's or Moody's. Securities. A UCITS fund is an authorized fund that may be As a rule, UBS bond funds principally invest in bonds issued sold across all EU countries. by prime borrowers.Volatility: A measure of the size of short-term changes in the Reinvestment: The possibility of reinvesting the distribution value of an investment. in the same fund. Certain funds offer investors a special Yield to maturity: Weighted average rate earned by an reinvestment discount on the issuing price if the annual investor who buys the bond portfolio today at the market distribution is reinvested.price and holds the bond portfolio until maturity, also Risk-free rate: An investment with no chance of default andassuming that all coupon and principal payments will be a known or certain rate of return. made on schedule. Glossary 2 ¦ 2