Important Considerations for Investing in Mutual Funds
Investing in mutual funds, like investments in other securities, carries a certain degree of risk. The risks may vary from fund to fund depending on several factors, including:

• The investment objective of the fund
• Investment policies, such as hedging strategies
• Security concentrations
• Investments in international securities
• Changes in interest rates, general market conditions and other political, social and economic developments
• Specific matters relating to the companies in whose securities the fund invests

For example, small- and mid-cap companies typically are subject to a greater degree of change in earnings and business prospects than are larger, more established companies. Therefore, mutual funds that invested in small- and mid-cap stocks generally have a higher level of volatility. For international funds, the risks can include exposure to changes in currency values; economic, political and social conditions; the regulatory environment of the countries in which the fund invests; and the difficulties of receiving current and accurate information.

Mutual Fund Share Class Suitability: Most mutual funds offered by UBS have different classes of shares with different sales charge options. Investors can select the class best-suited to their investment needs. This class determination is an important part of the overall suitability assessment of mutual fund transactions, as there are instances when one class may be more appropriate than another. When determining which class is most appropriate, you should consider:

• Any front-end load or contingent deferred sales charge
• The ongoing annual expenses of the fund
• The availability of the breakpoint or volume purchase discounts and other sales charge discounts offered by prospectus

These are key factors in estimating the costs of investing in the different share classes.