Nontraditional investments have long been used by institutional investors. Today, they are becoming increasingly popular among individual investors seeking to provide greater diversification to their traditional portfolios. Nontraditional investments can provide:

• Access to markets and investments typically not available to individual investors
• Greater portfolio diversification beyond stocks, mutual funds and bonds
• Options for seeking to manage risk

While there are numerous types of nontraditional investments, UBS focuses on two broad categories: alternative investments and structured products.

Alternative Investments
Alternative investments generally include:

• Hedge funds and hedge funds-of-funds
• Managed futures funds
• Private equity funds

Alternative investments, when used strategically as an adjunct to a traditional diversified portfolio of equity and fixed-income investments, can help eligible clients seek broader diversification.

Structured Products
Structured products are securities that can provide a complement or alternative to traditional investments (such as stocks and bonds) or nontraditional investments (such as currencies, commodities and hedge funds). These investments are combined with financial instruments (such as options, futures contracts and swap agreements) to provide varying degrees of protection and enhanced potential returns.

Past performance is not indicative of future results.

Alternative investment funds ("Funds") are not appropriate for all investors, and carry specific risks above and beyond those associated with traditional asset classes.

Alternative Investments US provides investment management services to qualified high- and ultra-high-net-worth investors. Eligibility requirements for alternative investments begin, generally, at a net worth greater than $1.5 million (including a spouse) for individuals or $5 million for companies.

The Funds are not mutual funds and are not subject to the same regulatory requirements as mutual funds. The performance of the Funds may be volatile, and investors may lose all or a substantial amount of their investment in the Funds. The Funds may engage in leveraging and other speculative investment practices that may increase the risk of investment loss. Portfolio assets of these Funds typically will be illiquid. The Funds may not be required to provide periodic pricing or valuation information to investors. They generally involve complex tax strategies and there may be delays in distributing tax information to investors. The Funds may charge high fees that would reduce profits. Interests of the Funds are illiquid and subject to restriction and change. An investment in the Fund is long term; there is no secondary market for the interests of the Fund, and none is expected to develop. Interests of the Fund are not deposits or obligations of, or guaranteed or endorsed by, any bank or other insured depository institution, and are not federally insured by the Federal Deposit Insurance Corporation, the Federal Reserve Board or any other governmental agency. Investors should consider these Funds as a supplement to an overall investment program.

The information provided is an overview of alternative investments and structured products at UBS. The information is intended for educational purposes only and does not constitute investment advice. Among other things, it does not take into account your personal financial situation, your investment goals or your investment strategies. You should not construe any information provided here to be an investment recommendation for you to follow. You should contact your Financial Advisor for information or recommendations that may be useful specifically to you.