· PDF fileUBS Investment Funds Annual Financial Statements For the year ended 30 June 2014 The Responsible Entity of UBS Investment Funds is UBS Global Asset Management

UBS Investment FundsAnnual Financial StatementsFor the year ended 30 June 2014

The Responsible Entity of UBS Investment Funds is UBS Global Asset Management (Australia) Ltd (ABN 31 003 146 290) (AFS Licence No.222 605). The Responsible Entity’s registered office is Level 16 Chifley Tower, 2 Chifley Square, Sydney NSW 2000.

The UBS Investment Funds consists of 14 separate Schemes:

UBS Property Securities FundARSN 090 431 271

UBS Australian Share FundARSN 090 427 213

UBS International Share FundARSN 090 431 735

UBS Australian Small Companies FundARSN 107 739 873

UBS Global Property Securities FundARSN 110 631 171

UBS Global Quantitative Share FundARSN 117 975 676

UBS Defensive Investment FundARSN 090 430 881

UBS Balanced Investment FundARSN 090 430 210

UBS Emerging Markets Equity Fund (AUD)ARSN 121 926 458

UBS-HALO Australian Share FundARSN 145 223 007

UBS Clarion Global Property Securities FundARSN 115 202 358

UBS Tactical Beta Fund - ConservativeARSN 157 926 460

UBS Tactical Beta Fund - GrowthARSN 157 926 166

UBS Tactical Beta Fund - Balanced

ARSN 158 859 173

Global Asset ManagementAnnual Financial Statements

UBS Investment Funds Annual Financial Statements For the year ended 30 June 2014

Contents Page Directors' Report ........................................................................................................................................................................................ 2 Statements of Comprehensive Income ...................................................................................................................................................... 7 Statements of Financial Position .............................................................................................................................................................. 11 Statements of Changes in Equity ............................................................................................................................................................. 13 Statements of Cash Flows ........................................................................................................................................................................ 15 Notes to the Financial Statements ............................................................................................................................................................ 20 1 General information....................................................................................................................................................................... 20 2 Summary of significant accounting policies .................................................................................................................................... 20 3 Dividend/Trust distribution income ................................................................................................................................................. 29 4 Net gains/(losses) on financial instruments held at fair value through profit or loss ........................................................................ 30 5 Auditor's remuneration .................................................................................................................................................................. 32 6 Net assets attributable to unitholders ............................................................................................................................................ 34 7 Distributions to unitholders ............................................................................................................................................................ 38 8 Financial assets held at fair value through profit or loss ................................................................................................................. 42 9 Receivables .................................................................................................................................................................................... 44 10 Financial liabilities held at fair value through profit or loss ............................................................................................................. 45 11 Payables ......................................................................................................................................................................................... 46 12 Derivative financial instruments ..................................................................................................................................................... 47 13 Financial risk management ............................................................................................................................................................. 54 14 Offsetting financial assets and financial liabilities ......................................................................................................................... 116 15 Related party transactions ............................................................................................................................................................ 129 16 Reconciliation of change in net assets attributable to unitholders to net cash inflows/(outflows) from operating activities .......... 135 17 Events occurring after the reporting date ..................................................................................................................................... 139 18 Contingent assets and liabilities and commitments ...................................................................................................................... 139 19 Investment in subsidiaries ............................................................................................................................................................ 139 Directors' Declaration ............................................................................................................................................................................ 140 Independent Auditor's Report to the Unitholders of UBS Investment Funds .......................................................................................... 141

UBS Investment Funds Directors' Report For the year ended 30 June 2014

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Directors' Report

The directors of UBS Global Asset Management (Australia) Ltd, the Responsible Entity of UBS Property Securities Fund, UBS Australian Share Fund, UBS International Share Fund, UBS Australian Small Companies Fund, UBS Global Property Securities Fund, UBS Global Quantitative Share Fund, UBS Defensive Investment Fund, UBS Balanced Investment Fund, UBS Emerging Markets Equity Fund (AUD), UBS-HALO Australian Share Fund, UBS Clarion Global Property Securities Fund, UBS Tactical Beta Fund - Conservative, UBS Tactical Beta Fund - Growth and UBS Tactical Beta Fund - Balanced ("the Schemes") present their report together with the financial statements of the Schemes for the financial year ended 30 June 2014.

Schemes information

The Schemes are Australian Registered Schemes. UBS Global Asset management (Australia) Ltd, the Responsible Entity of the Schemes, is incorporated and domiciled in Australia. The registered office of the Responsible Entity is located at Level 16 Chifley Tower, 2 Chifley Square, Sydney NSW 2000.

Directors

The following persons held office as directors of UBS Global Asset Management (Australia) Ltd during the financial year up to the date of this report:

B J Doherty, Chairman (Appointed 08 October 2013)

K R Sotorp, Chairman (Resigned as Chairman 08 October 2013 and Resigned 25 May 2014 as Director)

A L Anderson

J D Males

B A Heap (Resigned 20 September 2013)

A L Flockart (Appointed 08 October 2013)

T C Cooke (Appointed 08 October 2013)

R Buehlmann (Appointed 19 September 2014)

Principal activities

During the financial year, the Schemes continued to invest funds in accordance with their current Product Disclosure Statements and the provisions of the Schemes' Constitutions.

The Schemes did not have any employees during the financial year.

There were no significant changes in the nature of the Schemes' activities during the financial year.

Review and results of operations

There have been no significant changes to the operations of the Schemes since the previous financial year. The Schemes continued to invest funds in accordance with target asset allocations as set out in the governing documents of the Schemes and in accordance with the provisions of the Schemes' Constitutions.

The performance of the Schemes, as represented by the results of its operations, was as follows:

UBS Property

Securities Fund UBS Australian Share

Fund UBS International

Share Fund UBS Australian Small

Companies Fund 2014 2013 2014 2013 2014 2013 2014 2013 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Profit/(loss) before finance costs attributable to unitholders

21,810 54,365 175,012 238,902 34,713 47,274 17,971 9,800

Total distributions paid and payable 8,775 8,318 40,543 41,749 1,706 3,014 1,221 2,611

Total distributions (cents per unit) 3.61 2.90 6.22 5.85 0.80 1.57 1.95 3.67

Total return (including both capital and distribution return) for the financial year assuming reinvestment of all distributions back into the Schemes (%) 11.50 30.00 16.67 24.86 21.04 34.58 23.34 7.97

UBS Investment Funds Directors' Report (continued) For the year ended 30 June 2014

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UBS Global Property

Securities Fund

UBS Global Quantitative Share

Fund UBS Defensive

Investment Fund UBS Balanced

Investment Fund 2014 2013 2014 2013 2014 2013 2014 2013 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Profit/(loss) before finance costs attributable to unitholders 7,188 7,993 10,815 13,538 14,265 15,473 111,829 127,979

Total distributions paid and payable 26 2,317 764 895 6,294 4,349 24,283 27,789



UBS Emerging Markets Equity Fund

(AUD) UBS-HALO Australian

Share Fund

UBS Clarion Global Property Securities

Fund UBS Tactical Beta

Fund - Conservative 2014 2013 2014 2013 2014 2013 2014 2013 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Profit/(loss) before finance costs attributable to unitholders 1,892 3,577 1,981 10,212 22,846 11,732 3,934 1,547

Total distributions paid and payable 104 173 738 9,822 1,626 200 2,194 1,784



UBS Tactical Beta

Fund - Growth UBS Tactical Beta Fund - Balanced

2014 2013 2014 2013 $'000 $'000 $'000 $'000

Profit/(loss) before finance costs attributable to unitholders 2,667 789 10,663 4,777

Total distributions paid and payable 1,866 560 4,612 3,126

Total distributions (cents per unit) 8.17 7.79 4.58 5.07

Total return (including both capital and distribution return) for the financial year assuming reinvestment of all distributions back into the Schemes (%) 15.60 17.00 13.28 -

Significant changes in state of affairs

In the opinion of the directors, there were no significant changes in the state of affairs of the Schemes that occurred during the financial year other than those changes identified in the financial statements for the financial year ended 30 June 2014.


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Likely developments and expected results of operations

The Schemes will continue to be managed in accordance with their investment objectives and guidelines as set out in the governing documents of the Schemes and in accordance with the provisions of the Schemes' Constitutions.

Further information on likely developments in the operations of the Schemes and the expected results of those operations have not been included in this report because the Responsible Entity believes it would be likely to result in unreasonable prejudice to the Schemes.

Indemnification and insurance of officers and auditors

No insurance premiums are paid for out of the assets of the Schemes in regards to insurance cover provided to either the officers of UBS Global Asset Management (Australia) Ltd or the auditors of the Schemes. So long as the officers of UBS Global Asset Management (Australia) Ltd act in accordance with the Schemes' Constitutions and the Corporations Act 2001, the officers remain indemnified out of the assets of the Schemes against losses incurred while acting on behalf of the Schemes. The auditors of the Schemes are in no way indemnified out of the assets of the Schemes.

Fees paid to the Responsible Entity or its associates

Fees paid to the Responsible Entity and its associates out of the Schemes assets during the financial year are disclosed in the Statements of Comprehensive Income under Expenses - Responsible Entity's fees. Responsible Entity's fees are further discussed in Note 15.

No fees were paid out of the Schemes' assets to the directors of the Responsible Entity during the financial year.

Interests in the Schemes

The movements in units on issue in the Schemes during the financial year is disclosed in Note 6 of the financial statements.

The value of the Schemes' assets and liabilities is disclosed on the Statements of Financial Position and derived using the basis set out in Note 2 of the financial statements.

Environmental regulation

The operations of the Schemes are not subject to any particular or significant environmental regulations under a Commonwealth, State or Territory law.

Reporting period and comparative information

UBS Tactical Beta Fund – Conservative and UBS Tactical Beta Fund – Growth were registered with Australian Securities and Investments Commission ("ASIC") on 4 May 2012 and commenced operations on 14 May 2012. UBS Tactical Beta Fund – Balanced was registered with ASIC on 21 June 2012 and commenced operations on 12 October 2012.

The comparative information for UBS Tactical Beta Fund - Conservative and UBS Tactical Beta Fund - Growth are for the period from 14 May 2012 to 30 June 2013. The comparative information for UBS Tactical Beta Fund - Balanced are for the period from 12 October 2012 to 30 June 2013.

All other Schemes’ comparative information is for the financial year ended 30 June 2013 unless stated otherwise.

Events occurring after the reporting date

Except as disclosed in Note 17 in the financial statements, no other matter or circumstance has arisen since 30 June 2014 that has significantly affected, or may significantly affect:

(i) the operations of the Schemes in future financial years, or

(ii) the results of those operations in future financial years, or

(iii) the state of affairs of the Schemes in future financial years.

Rounding of amounts to the nearest thousand dollars

The Schemes are entities of the kind referred to in Class Order 98/100 (as amended) issued by the Australian Securities and Investments Commission relating to the ''rounding off'' of amounts in the directors' report and financial report. Amounts in the directors' report and financial report have been rounded to the nearest thousand dollars in accordance with that Class Order, unless otherwise indicated.


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Single set of financial statement

The Schemes are of the kind referred to in Class Order 06/441 dated 29 June 2006 issued by the Australian Securities and Investments Commission and in accordance with that Class Order, Schemes with a common Responsible Entity (or related responsible entities) can include their financial statements in adjacent columns in a single set of financial statements.

Proceeds from redeeming units in a Scheme can be applied to a acquire units in other Schemes included in these financial statement. All the Schemes are open-ended.

Auditor's Independence Declaration

A copy of the Auditor's Independence Declaration as required under section 307C of the Corporations Act 2001 is set out on page 6.

This report is made in accordance with a resolution of the directors.

B J Doherty A L AndersonChairman Director

Sydney 19 September 2014

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UBS Investment Funds Statements of Comprehensive Income For the year ended 30 June 2014

The above Statements of Comprehensive Income should be read in conjunction with the accompanying notes. 7

Statements of Comprehensive Income

UBS Property




Companies Fund 2014 2013 2014 2013 2014 2013 2014 2013 Notes $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Investment income

Dividend/Trust distribution income 3 12,764 11,469 47,240 46,756 4,430 3,565 2,188 2,973

Interest income 47 210 692 644 15 8 88 144

Net gains/(losses) on financial instruments held at fair value through profit or loss 4 10,689 44,765 136,615 201,977 33,061 43,164 18,056 7,938

Net foreign exchange gains/(losses) 97 (165) - - (400) 2,199 - -

Swap income/(loss) - - - - - - - -

Performance fees rebate 15 - - 1,068 - - - - -

Other income - - 4 - 27 14 - -

Total investment income/(loss) 23,597 56,279 185,619 249,377 37,133 48,950 20,332 11,055

Expenses

Responsible Entity's fees 15 1,690 1,797 9,651 8,945 2,095 1,554 894 1,088

Performance fees 15 - - - - - - 1,356 -

Transaction costs 97 117 956 1,530 325 122 111 167

Other expenses - - - - - - - -

Total expenses 1,787 1,914 10,607 10,475 2,420 1,676 2,361 1,255

Profit/(loss) before finance cost attributable to unitholders 21,810 54,365 175,012 238,902 34,713 47,274 17,971 9,800

Finance costs attributable to unitholders

Distributions to unitholders 7 8,775 8,318 40,543 41,749 1,706 3,014 1,221 2,611

Increase/(decrease) in net assets attributable to unitholders 6 13,035 46,047 134,469 197,153 33,007 44,260 16,750 7,189

Profit/(loss) for the financial year attributable to unitholders - - - - - - - -

Other comprehensive income for the financial year - - - - - - - -

Total comprehensive income for the financial year attributable to unitholders - - - - - - - -

UBS Investment Funds Statements of Comprehensive Income (continued) For the year ended 30 June 2014


UBS Global Property

Securities Fund


Fund UBS Defensive


Investment Fund 2014 2013 2014 2013 2014 2013 2014 2013 Notes $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Investment income

Dividend/Trust distribution income 3 1,349 1,336 1,299 1,341 6,645 4,611 43,490 23,022

Interest income 9 10 6 7 113 112 593 457

Net gains/(losses) on financial instruments held at fair value through profit or loss 4 5,042 7,915 9,314 12,567 8,177 11,136 68,894 106,005

Net foreign exchange gains/(losses) 1,293 (769) 831 135 (283) 157 (406) 1,009

Swap income/(loss) - - - - 187 47 1,325 -

Performance fees rebate 15 - - - - - - - -

Other income - - - - - - - -


Expenses

Responsible Entity's fees 15 442 416 560 478 521 511 1,743 2,145

Performance fees 15 - - - - - - - -

Transaction costs 63 83 75 34 45 79 295 369

Other expenses - - - - 8 - 29 -

Total expenses 505 499 635 512 574 590 2,067 2,514



Distributions to unitholders 7 26 2,317 764 895 6,294 4,349 24,283 27,789

Increase/(decrease) in net assets attributable to unitholders 6 7,162 5,676 10,051 12,643 7,971 11,124 87,546 100,190








Share Fund



Fund - Conservative 2014 2013 2014 2013 2014 2013 2014 2013 Notes $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Investment income

Dividend/Trust distribution income 3 451 439 638 1,208 4,841 2,831 1,241 1,390

Interest income 1 1 18 27 68 55 246 64

Net gains/(losses) on financial instruments held at fair value through profit or loss 4 2,133 3,269 1,484 9,448 15,691 13,495 2,413 117

Net foreign exchange gains/(losses) (287) 256 - - 3,812 (3,640) (7) (55)

Swap income/(loss) - - - - - - 196 119

Performance fees rebate 15 - - - - - - - -

Other income - - - - - 5 - -


Expenses

Responsible Entity's fees 15 278 250 137 319 1,295 830 140 68

Performance fees 15 - - - - - - - -

Transaction costs 127 136 22 152 271 183 15 20

Other expenses 1 2 - - - 1 - -

Total expenses 406 388 159 471 1,566 1,014 155 88



Distributions to unitholders 7 104 173 738 9,822 1,626 200 2,194 1,784

Increase/(decrease) in net assets attributable to unitholders 6 1,788 3,404 1,243 390 21,220 11,532 1,740 (237)






UBS Tactical Beta


2014 2013 2014 2013 Notes $'000 $'000 $'000 $'000

Investment income

Dividend/Trust distribution income 3 511 526 2,622 2,518

Interest income 144 21 420 110

Net gains/(losses) on financial instruments held at fair value through profit or loss 4 1,937 449 7,300 2,582

Net foreign exchange gains/(losses) 92 (173) 290 (494)

Swap income/(loss) 68 - 384 275

Performance fees rebate 15 - - - -

Other income - - - -

Total investment income/(loss) 2,752 823 11,016 4,991

Expenses

Responsible Entity's fees 15 71 26 312 154

Performance fees 15 - - - -

Transaction costs 14 8 38 60

Other expenses - - 3 -

Total expenses 85 34 353 214

Profit/(loss) before finance cost attributable to unitholders 2,667 789 10,663 4,777


Distributions to unitholders 7 1,866 560 4,612 3,126

Increase/(decrease) in net assets attributable to unitholders 6 801 229 6,051 1,651

Profit/(loss) for the financial year attributable to unitholders - - - -

Other comprehensive income for the financial year - - - -

Total comprehensive income for the financial year attributable to unitholders - - - -

UBS Investment Funds Statements of Financial Position As at 30 June 2014

The above Statements of Financial Position should be read in conjunction with the accompanying notes. 11

Statements of Financial Position

UBS Property




Companies Fund 2014 2013 2014 2013 2014 2013 2014 2013 Notes $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Assets

Cash and cash equivalents 16(b) 5,706 1,548 9,486 33,952 2,766 2,703 5,926 7,273

Receivables 9 7,805 5,966 11,761 10,081 660 680 347 204

Financial assets held at fair value through profit or loss 8 189,245 204,979 1,102,109 1,042,841 248,859 161,998 88,437 70,990

Total assets 202,756 212,493 1,123,356 1,086,874 252,285 165,381 94,710 78,467

Liabilities

Distributions payable 7 5,258 2,432 8,274 7,834 1,445 153 - 505

Payables 11 489 530 2,563 2,973 394 778 1,084 251

Financial liabilities held at fair value through profit or loss 10 - - - - 409 188 - -

Total liabilities (excluding net assets attributable to unitholders) 5,747 2,962 10,837 10,807 2,248 1,119 1,084 756

Net assets attributable to unitholders 6 197,009 209,531 1,112,519 1,076,067 250,037 164,262 93,626 77,711

UBS Global Property

Securities Fund


Fund UBS Defensive


Investment Fund 2014 2013 2014 2013 2014 2013 2014 2013 Notes $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Assets

Cash and cash equivalents 16(b) 795 541 570 513 10,155 7,677 36,680 35,232

Receivables 9 225 179 166 147 2,633 1,803 10,852 7,387

Financial assets held at fair value through profit or loss 8 50,104 43,409 62,142 51,816 132,715 122,433 757,105 682,863

Total assets 51,124 44,129 62,878 52,476 145,503 131,913 804,637 725,482

Liabilities

Distributions payable 7 26 - 606 206 4,030 699 19,625 22,778

Payables 11 44 257 54 44 378 244 374 1,995

Financial liabilities held at fair value through profit or loss 10 41 2,025 - - 399 918 2,746 3,847

Total liabilities (excluding net assets attributable to unitholders) 111 2,282 660 250 4,807 1,861 22,745 28,620

Net assets attributable to unitholders 6 51,013 41,847 62,218 52,226 140,696 130,052 781,892 696,862

UBS Investment Funds Statements of Financial Position (continued) As at 30 June 2014

The above Statements of Financial Position should be read in conjunction with the accompanying notes. 12



Share Fund



Fund - Conservative 2014 2013 2014 2013 2014 2013 2014 2013 Notes $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Assets

Cash and cash equivalents 16(b) 412 623 922 276 3,312 4,342 18,221 5,755

Receivables 9 94 31 289 48 1,608 2,054 1,387 829

Financial assets held at fair value through profit or loss 8 22,702 20,809 25,255 4,637 182,368 116,839 32,773 20,322

Total assets 23,208 21,463 26,466 4,961 187,288 123,235 52,381 26,906

Liabilities

Distributions payable 7 67 155 448 330 1,626 75 2,002 1,100

Payables 11 26 24 21 4 477 3,494 169 8

Financial liabilities held at fair value through profit or loss 10 - - - - 124 5,213 136 172

Total liabilities (excluding net assets attributable to unitholders) 93 179 469 334 2,227 8,782 2,307 1,280

Net assets attributable to unitholders 6 23,115 21,284 25,997 4,627 185,061 114,453 50,074 25,626

UBS Tactical Beta


2014 2013 2014 2013 Notes $'000 $'000 $'000 $'000

Assets

Cash and cash equivalents 16(b) 9,909 3,421 36,553 8,970

Receivables 9 473 338 2,832 1,976

Financial assets held at fair value through profit or loss 8 18,292 7,978 81,659 56,898

Total assets 28,674 11,737 121,044 67,844

Liabilities

Distributions payable 7 1,108 311 4,216 2,604

Payables 11 16 3 43 21

Financial liabilities held at fair value through profit or loss 10 74 124 340 598

Total liabilities (excluding net assets attributable to unitholders) 1,198 438 4,599 3,223

Net assets attributable to unitholders 6 27,476 11,299 116,445 64,621

UBS Investment Funds Statements of Changes in Equity For the year ended 30 June 2014

In accordance with AASB 132 Financial Instruments: Presentation, net assets attributable to unitholders are classified as a liability rather than equity. As a result, there was no equity at the beginning and the end of the financial year. Changes in net assets attributable to unitholders are disclosed in Note 6. The above Statements of Changes in Equity should be read in conjunction with the accompanying notes.

13

Statements of Changes in Equity

UBS Property




Companies Fund 2014 2013 2014 2013 2014 2013 2014 2013 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Total equity at the beginning of the financial year - - - - - - - -


Other comprehensive income for the financial year attributable to unitholders - - - - - - - -

Total comprehensive income for the financial year attributable to unitholders

Transactions with owners in their capacity as owners - - - - - - - -

Total equity at the end of the financial year - - - - - - - -

UBS Global Property

Securities Fund


Fund UBS Defensive


Investment Fund 2014 2013 2014 2013 2014 2013 2014 2013 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000







UBS Investment Funds Statements of Changes in Equity (continued) For the year ended 30 June 2014

In accordance with AASB 132 Financial Instruments: Presentation, net assets attributable to unitholders are classified as a liability rather than equity. As a result, there was no equity at the beginning and the end of the financial year. Changes in net assets attributable to unitholders are disclosed in Note 6. The above Statements of Changes in Equity should be read in conjunction with the accompanying notes.

14



Share Fund










UBS Tactical Beta


2014 2013 2014 2013 $'000 $'000 $'000 $'000

Total equity at the beginning of the financial year - - - -

Profit/(loss) for the financial year attributable to unitholders - - - -

Other comprehensive income for the financial year attributable to unitholders - - - -


Transactions with owners in their capacity as owners - - - -

Total equity at the end of the financial year - - - -

UBS Investment Funds Statements of Cash Flows For the year ended 30 June 2014

The above Statements of Cash Flows should be read in conjunction with the accompanying notes. 15

Statements of Cash Flows

UBS Property Securities

Fund UBS Australian Share

Fund UBS International Share

Fund 2014 2013 2014 2013 2014 2013 Notes $'000 $'000 $'000 $'000 $'000 $'000

Cash flows from operating activities

Proceeds from sale of financial instruments held at fair value through profit or loss 47,254 75,637 298,636 550,137 90,391 72,805

Purchase of financial instruments held at fair value through profit or loss (20,578) (44,378) (220,467) (384,101) (144,209) (47,270)

Dividends/Trust distributions received 10,845 10,706 45,211 44,678 4,344 3,430

Interest received 47 210 692 644 15 8

Other income received - - 4 - 27 14

Responsible Entity's fees paid (1,690) (1,788) (9,533) (8,883) (2,053) (1,531)

Performance fees paid - - - - - -

Transaction costs on financial instruments held at fair value through profit or loss (99) (119) (954) (1,530) (325) (123)

Performance fee rebate received - - 1,068 - - -

Payments for other expenses - - - - - -

Net cash inflows/(outflows) from operating activities 16(a) 35,779 40,268 114,657 200,945 (51,810) 27,333

Cash flows from financing activities

Proceeds from applications by unitholders 20,065 19,907 145,471 107,352 71,015 4,420

Payments for redemptions by unitholders (46,588) (55,064) (263,917) (266,597) (19,102) (28,231)

Distributions paid (5,098) (7,501) (20,677) (21,103) (50) (1,299)

Net cash inflows/(outflows) from financing activities (31,621) (42,658) (139,123) (180,348) 51,863 (25,110)

Net increase/(decrease) in cash and cash equivalents 4,158 (2,390) (24,466) 20,597 53 2,223

Cash and cash equivalents at the beginning of the financial year 1,548 3,929 33,952 13,355 2,703 393

Effects of changes in foreign currency exchange rates on cash and cash equivalents - 9 - - 10 87

Cash and cash equivalents at the end of the financial year 16(b) 5,706 1,548 9,486 33,952 2,766 2,703

UBS Investment Funds Statements of Cash Flows (continued) For the year ended 30 June 2014


UBS Australian Small

Companies Fund UBS Global Property

Securities Fund UBS Global Quantitative

Share Fund 2014 2013 2014 2013 2014 2013 Notes $'000 $'000 $'000 $'000 $'000 $'000




Dividends/Trust distributions received 2,046 2,829 1,304 1,248 1,271 1,294


Other income received - - - - - -

Responsible Entity's fees paid (996) (1,106) (435) (417) (554) (475)

Performance fees paid (1,356) - - - - -

Transaction costs on financial instruments held at fair value through profit or loss (109) (167) (63) (82) (75) (34)

Performance fee rebate received - - - - - -

Payments for other expenses - - (1) - - -

Net cash inflows/(outflows) from operating activities 16(a) 1,157 39,500 (1,746) 10,593 482 7,649


Proceeds from applications by unitholders 2,709 3,121 3,430 740 - 6

Payments for redemptions by unitholders (5,001) (39,618) (1,426) (11,033) (59) (7,506)

Distributions paid (212) (447) - (177) (364) (3)

Net cash inflows/(outflows) from financing activities (2,504) (36,944) 2,004 (10,470) (423) (7,503)

Net increase/(decrease) in cash and cash equivalents (1,347) 2,556 258 123 59 146

Cash and cash equivalents at the beginning of the financial year 7,273 4,717 541 395 513 338

Effects of changes in foreign currency exchange rates on cash and cash equivalents - - (4) 23 (2) 29

Cash and cash equivalents at the end of the financial year 16(b) 5,926 7,273 795 541 570 513



UBS Defensive Investment

Fund UBS Balanced Investment

Fund UBS Emerging Markets

Equity Fund (AUD) 2014 2013 2014 2013 2014 2013 Notes $'000 $'000 $'000 $'000 $'000 $'000




Dividends/Trust distributions received 2,099 165 24,312 3,138 445 455

Interest received 288 159 1,841 457 1 1

Other income received - - - - - -

Responsible Entity's fees paid (515) (570) (1,766) (2,135) (276) (248)




Payments for other expenses (8) - (29) - (1) (2)

Net cash inflows/(outflows) from operating activities 16(a) 2,658 6,813 31,585 47,719 (55) 555


Proceeds from applications by unitholders 46,093 21,290 84,039 19,164 20 189

Payments for redemptions by unitholders (44,634) (26,456) (90,387) (51,489) (167) (777)

Distributions paid (1,638) (3,214) (23,825) (10,762) (2) -

Net cash inflows/(outflows) from financing activities (179) (8,380) (30,173) (43,087) (149) (588)

Net increase/(decrease) in cash and cash equivalents 2,479 (1,567) 1,412 4,632 (204) (33)

Cash and cash equivalents at the beginning of the financial year 7,677 9,229 35,232 30,587 623 646

Effects of changes in foreign currency exchange rates on cash and cash equivalents (1) 15 36 13 (7) 10

Cash and cash equivalents at the end of the financial year 16(b) 10,155 7,677 36,680 35,232 412 623



UBS-HALO Australian

Share Fund UBS Clarion Global

Property Securities Fund UBS Tactical Beta

Fund - Conservative 2014 2013 2014 2013 2014 2013 Notes $'000 $'000 $'000 $'000 $'000 $'000




Dividends/Trust distributions received 432 1,869 4,466 2,612 209 51


Other income received - - - 5 - -

Responsible Entity's fees paid (125) (348) (1,254) (749) (134) (62)




Payments for other expenses - - - (1) - -

Net cash inflows/(outflows) from operating activities 16(a) (18,831) 66,572 (50,167) (24,976) (9,006) (19,424)


Proceeds from applications by unitholders 21,608 1,621 81,765 53,724 26,458 32,751

Payments for redemptions by unitholders (1,925) (68,552) (32,548) (26,565) (3,694) (7,248)

Distributions paid (206) (73) (70) (117) (1,292) (325)

Net cash inflows/(outflows) from financing activities 19,477 (67,004) 49,147 27,042 21,472 25,178

Net increase/(decrease) in cash and cash equivalents 646 (432) (1,020) 2,066 12,466 5,754

Cash and cash equivalents at the beginning of the financial year 276 708 4,342 2,212 5,755 -

Effects of changes in foreign currency exchange rates on cash and cash equivalents - - (10) 64 - 1

Cash and cash equivalents at the end of the financial year 16(b) 922 276 3,312 4,342 18,221 5,755



UBS Tactical Beta


2014 2013 2014 2013 Notes $'000 $'000 $'000 $'000


Proceeds from sale of financial instruments held at fair value through profit or loss 3,689 1,700 5,251 2,293

Purchase of financial instruments held at fair value through profit or loss (11,904) (9,028) (21,478) (55,985)

Dividends/Trust distributions received 214 53 847 198

Interest received 208 21 797 373

Other income received - - - -

Responsible Entity's fees paid (67) (24) (302) (139)

Performance fees paid - - - -

Transaction costs on financial instruments held at fair value through profit or loss (14) (8) (38) (60)

Performance fee rebate received - - - -

Payments for other expenses - - (3) -

Net cash inflows/(outflows) from operating activities 16(a) (7,874) (7,286) (14,926) (53,320)


Proceeds from applications by unitholders 23,324 10,755 51,120 68,741

Payments for redemptions by unitholders (8,245) (40) (5,613) (5,937)

Distributions paid (717) (8) (3,000) (522)

Net cash inflows/(outflows) from financing activities 14,362 10,707 42,507 62,282

Net increase/(decrease) in cash and cash equivalents 6,488 3,421 27,581 8,962

Cash and cash equivalents at the beginning of the financial year 3,421 - 8,970 -

Effects of changes in foreign currency exchange rates on cash and cash equivalents - - 2 8

Cash and cash equivalents at the end of the financial year 16(b) 9,909 3,421 36,553 8,970

UBS Investment Funds Notes to the Financial Statements For the year ended 30 June 2014

20

Notes to the Financial Statements

1 General information

These financial statements cover UBS Property Securities Fund, UBS Australian Share Fund, UBS International Share Fund, UBS Australian Small Companies Fund, UBS Global Property Securities Fund, UBS Global Quantitative Share Fund, UBS Defensive Investment Fund, UBS Balanced Investment Fund, UBS Emerging Markets Equity Fund (AUD), UBS-HALO Australian Share Fund, UBS Clarion Global Property Securities Fund, UBS Tactical Beta Fund - Conservative, UBS Tactical Beta Fund -Growth and UBS Tactical Beta Fund - Balanced ("the Schemes") as individual entities.

The Responsible Entity of the Schemes is UBS Global Asset Management (Australia) Ltd ("the Responsible Entity''). The Responsible Entity’s registered office is Level 16 Chifley Tower, 2 Chifley Square, Sydney NSW 2000. The Responsible Entity is incorporated and domiciled in Australia.

The financial statements of the Schemes for the financial year ended 30 June 2014 were authorised for issue in accordance with a resolution of the directors of the Responsible Entity dated 19 September 2014. The directors of the Responsible Entity have the power to amend and reissue the financial statements.

UBS Tactical Beta Fund – Conservative and UBS Tactical Beta Fund – Growth were registered with Australian Securities and Investments Commission ("ASIC") on 4 May 2012 and commenced operations on 14 May 2012. UBS Tactical Beta Fund – Balanced was registered with ASIC on 21 June 2012 and commenced operations on 12 October 2012.

The comparative information for UBS Tactical Beta Fund - Conservative and UBS Tactical Beta Fund - Growth are for the period from 14 May 2012 to 30 June 2013. The comparative information for UBS Tactical Beta Fund - Balanced are for the period from 12 October 2012 to 30 June 2013.

All other Schemes’ comparative information is for the financial year ended 30 June 2013 unless stated otherwise.

2 Summary of significant accounting policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all financial periods presented, unless otherwise stated.

(a) Basis of preparation

These general purpose financial statements have been prepared in accordance with Australian Accounting Standards, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001 in Australia.

The Schemes are for-profit entities for the purpose of preparing the financial statements.

The financial statements are prepared on the basis of fair value measurement of assets and liabilities except where otherwise stated.

The Statements of Financial Position are presented on a liquidity basis. Assets and liabilities are presented in decreasing order of liquidity and are not distinguished between current and non-current. All balances are generally expected to be recovered or settled within twelve months, except for investments in financial assets and net assets attributable to unitholders where the amount expected to be recovered or settled within twelve months after the end of the financial year cannot be reliably determined.

Compliance with Australian Accounting Standards and International Financial Reporting Standards (IFRS)

The financial statements of the Schemes comply with Australian Accounting Standards as issued by the Australian Accounting Standards Board and also comply with International Financial Reporting Standards as issued by the International Accounting Standards Board.

New and amended standards adopted by the Schemes

The Schemes have applied the following major accounting standards and amendments (to the extent that is relevant to the Schemes) for the first time for the financial year:

AASB 13 Fair Value Measurement and AASB 2011-8 Amendments to Australian Accounting Standards arising from AASB 13

AASB 13 establishes a single source of guidance under Australian Accounting Standards for all fair value measurements and defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. AASB 13 does not change when an entity is required to use fair value but rather provides guidance on how to measure fair value when it is required or permitted. The application of AASB 13 has not materially impacted the Schemes' financial statements for the financial year.

AASB 2011-4 Amendments to Australian Accounting Standards to Remove Individual Key Management Personnel Disclosure Requirements

AASB 124 Related Party Disclosures was amended whereby the individual key management personnel disclosures are no longer required, to achieve consistency with the international equivalent standard and remove duplication of the requirements with the Corporations Act 2001. Therefore the Schemes have no longer included these disclosures in its financial statements for the financial year.

UBS Investment Funds Notes to the Financial Statements (continued) For the year ended 30 June 2014

21

2 Summary of significant accounting policies (continued)

(a) Basis of preparation (continued)

AASB 2012-2 Amendments to Australian Accounting Standards -Disclosures - Offsetting Financial Assets and Financial Liabilities

AASB 2012-2 amends AASB 7 Financial Instruments: Disclosures requiring expanded disclosures about recognised financial instruments that are currently offset in the Statements of Financial Position and/or are subject to enforceable master netting agreements (or similar) irrespective of whether they are currently offset. Where applicable, the additional disclosures are provided in the notes to the financial statements for the financial year.

Change in accounting policy - Early adoption of AASB 2013-5 Amendments to Australian Accounting Standards – Investment Entities

AASB 2013-5, effective for financial years beginning on or after 1 January 2014, has been early adopted by the Schemes (where applicable) for the financial year ended 30 June 2014.

AASB 2013-5 provides amendments to AASB 10 Consolidated Financial Statements, AASB 12 Disclosure of Interests in Other Entities and AASB 127 Separate Financial Statements. The amendments provide an exception to consolidation to qualifying investment entities and require them to measure unconsolidated subsidiaries at fair value through profit or loss. The amendments also introduce new disclosure requirements for investment entities that have controlled investees.

AASB 10 introduces a new control model that is applicable to all investees. Among other things, it requires the consolidation of an investee if the Schemes controls the investee on the basis of de facto circumstances. An exception however exists where an entity meets the definition of an investment entity.

AASB 12 requires new disclosures applicable to all investees. Among other things, it introduces new disclosure requirements related to investment entities. The adoption of AASB 12 has changed the level of disclosure of the Schemes elsewhere in the financial statements but has not impacted the financial position and the results of operations of the Schemes.

AASB 127 prescribes accounting and disclosure requirements for separate financial statements. Among other things, it requires an investment entity to present separate financial statements as its only financial statements where it measures all of its subsidiaries at fair value through profit or loss and to disclose that fact. The adoption of amended AASB 127 has not materially impacted the financial statements of the Schemes.

Management determines that the Schemes are qualifying investment entities due to the following factors:

• The Schemes obtain and manage funds for the purpose of providing investors of the Schemes with management services;

• The Schemes' business purpose, which is communicated directly to the investors, is to invest funds solely for returns from capital appreciation and investment income;

• The Schemes measure and evaluate the performance of substantially all of its investments on a fair value basis;

• The Schemes have multiple investments and multiple investors; and

• Although all units attributable to unitholders are recognised as debt rather than equity, unitholders are still exposed to variable returns.

The Schemes made the investment entity assessment at 1 July 2013. As a consequence, the Schemes have applied the investment entity exemption and therefore is no longer required to consolidate its subsidiaries. Investments in subsidiaries are now measured at fair value through profit or loss. These separate financial statements are the only financial statements presented by the Schemes. This represents a change in accounting policy and requires retrospective application. Comparative information has been restated in accordance with the provisions of the standards.


22



The Schemes presented consolidated financial statements for the year ended 30 June 2013. The following shows the adjustments made to each key line item of the Statements of Financial Position and the Statements of Comprehensive Income for the year then ended as a result of the investment entity exemption:

2013 2013 UBS Australian Share Fund (Consolidated) Adjustment (Restated) $'000 $'000 $'000

Assets

Cash and cash equivalents 41,225 (7,273) 33,952

Receivables 9,894 187 10,081

Financial assets held at fair value through profit or loss 1,053,823 (10,982) 1,042,841

Total assets 1,104,942 (18,068) 1,086,874

Liabilities

Distributions payable 7,949 (115) 7,834

Payables 3,224 (251) 2,973

Other liabilities 78 (78) -

Net assets attributable to non-controlling interest 17,624 (17,624) -

Total liabilities (excluding net assets attributable to unitholders) 28,875 (18,068) 10,807

Net assets attributable to unitholders 1,076,067 - 1,076,067

2013 2013 UBS Australian Share Fund (Consolidated) Adjustment (Restated) $'000 $'000 $'000

Investment income

Dividend/Trust distribution income 47,683 (927) 46,756

Interest income 788 (144) 644

Net gains/(losses) on financial instruments held at fair value through profit or loss 204,180 (2,203) 201,977

Total investment income/(loss) 252,651 (3,274) 249,377

Expenses

Responsible Entity Fees 10,033 (1,088) 8,945

Transaction costs 1,697 (167) 1,530

Total expenses 11,730 (1,255) 10,475

Profit/(loss) before finance cost attributable to unitholders 240,921 (2,019) 238,902


Distributions to unitholders 41,749 - 41,749

Distributions to non-controlling interests 565 (565) -

Increase/(decrease) in net assets attributable to unitholders 197,076 77 197,153

Increase/(decrease) in net assets attributable to non-controlling interests 1,531 (1,531) -

Profit/(loss) for the financial year attributable to unitholders - - -


23



2013 2013 UBS Balanced Investment Fund (Consolidated) Adjustment (Restated) $'000 $'000 $'000

Assets

Cash and cash equivalents 53,987 (18,755) 35,232

Receivables 6,073 1,314 7,387

Financial assets held at fair value through profit or loss 757,042 (74,179) 682,863

Total assets 817,102 (91,620) 725,482

Liabilities

Distributions payable 21,570 1,208 22,778

Payables 3,253 (1,258) 1,995

Financial liabilities held at fair value through profit or loss 7,486 (3,639) 3,847

Other liabilities 570 (570) -

Net assets attributable to non-controlling interest 87,361 (87,361) -

Total liabilities (excluding net assets attributable to unitholders) 120,240 (91,620) 28,620

Net assets attributable to unitholders 696,862 - 696,862

2013 2013 UBS Balanced Investment Fund (Consolidated) Adjustment (Restated) $'000 $'000 $'000

Investment income

Dividend/Trust distribution income 25,830 (2,808) 23,022

Interest income 869 (412) 457

Net gains/(losses) on financial instruments held at fair value through profit or loss 127,088 (21,083) 106,005

Swap income (loss) 766 (766) -

Net foreign exchange gain 4,999 (3,990) 1,009

Other income 165 (165) -

Total investment income/(loss) 159,717 (29,224) 130,493

Expenses

Responsible Entity Fees 5,390 (3,245) 2,145

Transaction costs 945 (576) 369

Other expenses 4 (4) -

Total expenses 6,339 (3,825) 2,514

Profit/(loss) before finance cost attributable to unitholders 153,378 (25,399) 127,979


Distributions to unitholders 27,789 - 27,789

Distributions to minority interests 1,938 (1,938) -

Increase/(decrease) in net assets attributable to unitholders 98,662 1,528 100,190

Increase/(decrease) in net assets attributable to non-controlling interests 24,989 (24,989) -

Profit/(loss) for the financial year attributable to unitholders - - -


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(b) Financial instruments

(i) Classification

The Schemes' investments are categorised as held at fair value through profit or loss. They comprise:

• Financial instruments held for trading

These include derivative financial instruments including futures, forward currency contracts, options and interest rate swaps.

• Financial instruments designated at fair value through profit or loss

These include financial assets and financial liabilities that are not held for trading purposes and which may be sold. These are investments in exchange traded debt and equity instruments, unlisted trusts, unlisted equity instruments and commercial papers.

Financial assets and financial liabilities designated at fair value through profit or loss at inception are those that are managed and their performance evaluated on a fair value basis in accordance with the Schemes' documented investment strategy. The Schemes' policy is for the Responsible Entity to evaluate the information about these financial instruments on a fair value basis together with other related financial information.

Information on the fair value basis is provided internally to the Schemes' key management personnel. In addition, the designation of financial assets and financial liabilities at fair value through profit or loss will reduce any measurement or recognition inconsistencies and any accounting mismatch that would otherwise arise.

Receivables/payables comprise amounts due to or from the Schemes.

(ii) Recognition/derecognition

The Schemes recognise financial assets and financial liabilities on the date they become party to the contractual agreement (trade date) and recognises changes in fair value of the financial assets or financial liabilities from this date.

A financial asset (or, where applicable a part of a financial asset or part of a group of similar financial assets) is derecognised where:

• the rights to receive cash flows from the asset have expired;

• the Schemes retain the right to receive cash flows from the asset, but has assumed an obligation to pay them in full without material delay to a third party under a 'pass through' agreement; or

• the Schemes have transferred its rights to receive cash flows from the asset and either:

(a) has transferred substantially all the risks and rewards of the asset; or

(b) has neither transferred nor retained substantially all the risks and rewards of the asset, but have transferred control of the assets.

Any gains or losses arising on derecognition of the asset (calculated as the difference between the disposal proceeds and the carrying amount of the asset) are included in the Statements of Comprehensive Income in the financial year the asset is derecognised as realised gains or losses on financial instruments.

(iii) Measurement

Financial assets and liabilities held at fair value through profit or loss

Financial assets and liabilities held at fair value through profit or loss are measured initially at fair value excluding any transaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liability. Transaction costs on financial assets and financial liabilities at fair value through profit or loss are expensed immediately. Subsequent to initial recognition, all instruments held at fair value through profit or loss are measured at fair value with changes in their fair value recognised in the Statements of Comprehensive Income.

The fair value of financial assets and liabilities traded in active markets is based on their quoted market prices at the end of the financial year without any deduction for estimated future selling costs. Financial assets are priced at current bid prices, while financial liabilities are priced at current asking prices.

A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm’s length basis.

The Schemes' financial instruments that are valued based on active markets generally include listed instruments ranging from listed equity and/or debt securities to listed derivatives, where applicable.


25


(b) Financial instruments

Investments in other unlisted unit trusts are recorded at the redemption value per unit as reported by the managers of such trusts.

The Schemes' financial instruments that are valued based on inactive or unquoted markets generally include unlisted instruments ranging from investments in unlisted unit trusts, unlisted equity and/or debt securities to over the counter derivatives, where applicable.

Receivables/payables

Receivables/payables are measured initially at fair value plus transaction costs.

Subsequently, short-term receivables/payables are carried at their initial fair values.

(iv) Offsetting financial instruments

Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or realise the asset and settle the liability simultaneously.

(c) Net assets attributable to unitholders

Units are redeemable at the unitholders option and are classified as financial liabilities due to mandatory distributions. The units can be put back to the Schemes at any time for cash based on the redemption price. The fair value of redeemable units is measured at the redemption amount that is payable (based on the redemption unit price) at the end of the financial year if unitholders exercised their right to put the units back to the Schemes. Because the Schemes' redemption unit price is based on different valuation principles to that applied in financial reporting, a valuation difference may exist.

(d) Cash and cash equivalents

Cash and cash equivalents include cash on hand and deposits held at call with banks or other financial institutions.

(e) Investment income

Interest income and interest expenses are recognised in the Statements of Comprehensive Income for all debt instruments using the effective interest method.

Dividend income is recognised on the ex dividend date.

Trust distributions are recognised on an entitlements basis.

(f) Net gains/(losses) on financial instruments held at fair value through profit or loss

Net gains/(losses) on financial assets and financial liabilities held at fair value through profit or loss arising on a change in fair value are calculated as the difference between the fair value at the end of the financial year and the fair value at the previous valuation point. This includes both realised and unrealised gains and losses.

(g) Expenses

All expenses, including Responsible Entity's fees, are recognised in the Statements of Comprehensive Income on an accruals basis.

(h) Income tax

Under current legislation, the Schemes are not subject to income tax provided the unitholders are presently entitled to the income of the Schemes and the Schemes fully distribute their net taxable income.

(i) Distributions

In accordance with the Schemes' Constitutions, the Schemes distribute their distributable income, and any other amounts determined by the Responsible Entity, to unitholders by cash or reinvestment. The distributions are recognised in the Statements of Comprehensive Income as Finance costs attributable to unitholders.


26


(j) Increase/(decrease) in net assets attributable to unitholders

Non-distributable income is transferred directly to net assets attributable to unitholders and may consist of unrealised changes in the net fair value of financial instruments, accrued income not yet assessable, expenses provided or accrued for which are not yet deductible, net capital losses and tax free or tax deferred income. Net capital gains on the realisation of any investments (including any adjustments for tax deferred income previously taken directly to net assets attributable to unitholders) and accrued income not yet assessable will generally be included in the determination of distributable income in the same year in which it becomes assessable for tax.

(k) Foreign currency translation

(i) Functional and presentation currency

Items included in the Schemes' financial statements are measured using the currency of the primary economic environment in which they operate (the "functional currency''). This is the Australian dollar, which reflects the currency of the economy in which the Schemes compete for funds and are regulated. The Australian dollar is also the presentation currency of the Schemes.

(ii) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translations at financial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statements of Comprehensive Income.

(l) Accrued income

Accrued income may include amounts for dividends, trust distributions and interest. Dividends and trust distributions are accrued when the right to receive payment is established. Interest is accrued at the end of the financial year from the time of last payment.

(m) Receivables

Receivables may include income receivable and amounts are generally received within 30 days of being recorded as receivables.

Trades are recorded on trade date and normally settled within three business days. Sales of securities and investments that are unsettled at the end of the financial year are included in receivables.

(n) Payables

Payables include liabilities and accrued expenses owing by the Schemes which are unpaid as at the end of the financial year.

Trades are recorded on trade date, and normally settled within three business days. Purchases of securities and instruments that are unsettled at the end of each financial year are included in payables.

The distribution amount payable to unitholders as at the end of each financial year is recognised separately in the Statements of Financial Position as unitholders are presently entitled to the distributable income as at 30 June 2014 under the Schemes' Constitutions.

(o) Applications and redemptions

Applications received for units in the Schemes are recorded net of any entry fees payable prior to the issue of units in the Schemes. Redemptions from the Schemes are recorded gross of any exit fees payable after the cancellation of units redeemed.

Unit redemption prices are determined by reference to the net assets of the Schemes divided by the number of units on issue.

(p) Goods and services tax (GST)

Expenses of various services provided to the Schemes recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the taxation authority. In this case, it is recognised as part of the expense in the Statements of Comprehensive Income.

Responsible Entity's fees payable and other payables are stated inclusive of the GST receivable. The net amount of GST recoverable from the taxation authority is included in receivables in the Statements of Financial Position.

Cash flows relating to GST are included in the Statements of Cash Flows on a gross basis.


27


(q) Use of judgements and estimates

The preparation of the Schemes' financial statements requires it to make judgements, estimates and assumptions that affect the reported amounts of assets and liabilities. Uncertainty about these assumptions and estimates could result in outcomes that could require a material adjustment to the carrying amount of the asset or liability affected in the future. However, estimates are continually evaluated and based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The Schemes' financial instruments are valued primarily based on the prices provided by independent pricing services.

When the fair values of the reported financial instruments cannot be derived from active markets, they are determined using prices obtained from inactive or unquoted markets and/or other valuation techniques. The inputs to these valuation techniques (if applicable) are taken from observable markets to the extent practicable. Where observable inputs are not available, the inputs may be estimated based on a degree of judgements and assumptions in establishing fair values.

Where appropriate, the outcomes of the valuation techniques that are used in establishing fair values are validated using prices from observable current market transactions for similar instruments (without modification or repackaging) or based on relevant available observable market data.

The determination of what constitutes 'observable' requires significant judgement by the Schemes. The Schemes consider observable data to be market data that is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market.

In addition, areas such as credit risk (both own and counterparty), volatilities and correlations require management to make estimates and judgements. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

For certain other financial instruments, including amounts due from/to brokers, accounts payable and the carrying amounts approximate fair value due to the immediate or short-term nature of these financial instruments.

(r) New accounting standards and interpretations

Certain new accounting standards and interpretations have been published that are not mandatory for the 30 June 2014 financial year and have not yet been applied in the financial statements. The directors' assessment of the impact of these new standards (to the extent relevant to the Schemes) and interpretations is set out below:

(i) AASB 9 Financial Instruments (2009 or 2010 version), AASB 2009-11 Amendments to Australian Accounting Standards arising from AASB 9, AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9, AASB 2012-6 Amendments to Australian Accounting Standards - Mandatory Effective Date of AASB 9 and Transition Disclosures, AASB 2013-9 Amendments to Australian Accounting Standards - Conceptual Framework, Materiality and Financial Instruments, and AASB 2014-1 Amendments to Australian Accounting Standards, Part E Financial Instruments (effective from 1 January 2018)

AASB 9 Financial Instruments addresses the classification, measurement, recognition and derecognition of financial assets and financial liabilities. It has now introduced revised rules around hedge accounting. The Standard is not applicable until 1 January 2017 but is available for early adoption. The Schemes do not expect this to have a significant impact on the recognition and measurement of the Schemes' financial instruments as they are carried at fair value through profit or loss. The derecognition rules have not been changed from the previous requirements, and the Schemes do not apply hedge accounting. The Schemes do not intend to early adopt AASB 9

(ii) AASB 2012-3 Amendments to Australian Accounting Standard - Offsetting Financial Assets and Financial Liabilities (effective 1 January 2014)

In June 2012, the AASB approved amendments to the application guidance in AASB 132 Financial Instruments: Presentation, to clarify some of the requirements for offsetting financial assets and financial liabilities in the Statements of Financial Position. These amendments are effective from 1 January 2014. The adoption of the amendments will not have a significant impact on the financial statements of the Schemes. The Schemes do not intend to early adopt this amendment.

(iii) AASB 1031 Materiality, AASB 2013-9 Amendments to Australian Accounting Standards - Conceptual Framework, Materiality and Financial Instruments, Part B Materiality (effective 1 January 2014), and AASB 2014-1 Amendments to Australian Accounting Standards, Part C Materiality (effective 1 July 2014).

The AASB decided to withdraw AASB 1031. Part B of AASB 2013-9 deletes references to AASB 1031 in various Australian Accounting Standards (including Interpretations). Part C of AASB 2014-1 deletes references to AASB 1031 in various other Australian Accounting Standards. Once all references to AASB 1031 have been deleted from all Australian Accounting Standards, AASB 1031 will be withdrawn. The adoption of the new rules will not impact the financial statements of the Schemes. Early adoption is not permitted.

(iv) AASB 2014-1 Amendments to Australian Accounting Standards, Part A Annual Improvements 2010-2012 and 2011-2013 Cycles (effective 1 July 2014)

Part A of AASB 2014-1 makes various amendments and editorial corrections to various Australian Accounting Standards, particularly in relation to the meaning of effective IFRSs and in relation to the clarification of the definition of a related party. The adoption of the amendments will not impact the financial statements of the Schemes.


28


(r) New accounting standards and interpretations (continued)

(v) IFRS 15 Revenue from Contracts with Customers (effective 1 January 2017)

The IASB issued IFRS 15 in May 2014. The AASB is expected to issue an equivalent Australian standard shortly. IFRS 15 contains a single model that applies to contracts with customers and two approaches to recognising revenue: at a point in time or over time. The model features a contract-based five step analysis of transactions to determine whether, how much and when revenue is recognised. The AASB’s version of IFRS 15 is expected to supersede (to the extent relevant to the Schemes) AASB 18 Revenue. The adoption of the new replacement standard is not expected to have a significant impact on the financial statements of the Schemes.

(s) Rounding of amounts

The Schemes are entities of the kind referred to in Class Order 98/100 (as amended), issued by the Australian Securities and Investments Commission, relating to the ''rounding off'' of amounts in the financial statements. Amounts in the financial statements have been rounded off in accordance with that Class Order to the nearest thousand, unless otherwise indicated.

(t) Comparative information

Where appropriate, comparative disclosures have been reclassified to be consistent with the current year's presentation. Such reclassifications have not affected the Statements of Comprehensive Income or Statements of Financial Position.


29

3 Dividend/Trust distribution income

UBS Property




Companies Fund 2014 2013 2014 2013 2014 2013 2014 2013 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Dividends 178 187 42,782 42,613 4,430 3,565 2,046 2,917

Trust distributions 12,586 11,282 4,458 4,143 - - 142 56

Total Dividend/Trust distribution income 12,764 11,469 47,240 46,756 4,430 3,565 2,188 2,973

UBS Global Property Securities Fund


Fund UBS Defensive


Investment Fund 2014 2013 2014 2013 2014 2013 2014 2013 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Dividends 1,199 1,141 1,299 1,341 515 224 1,267 4,323

Trust distributions 150 195 - - 6,130 4,387 42,223 18,699

Total Dividend/Trust distribution income 1,349 1,336 1,299 1,341 6,645 4,611 43,490 23,022



Share Fund




Dividends 451 439 565 1,208 4,107 2,299 - 45

Trust distributions - - 73 - 734 532 1,241 1,345

Total Dividend/Trust distribution income 451 439 638 1,208 4,841 2,831 1,241 1,390

UBS Tactical Beta Fund - Growth


2014 2013 2014 2013 $'000 $'000 $'000 $'000

Dividends - 49 - 202

Trust distributions 511 477 2,622 2,316

Total Dividend/Trust distribution income 511 526 2,622 2,518


30

4 Net gains/(losses) on financial instruments held at fair value through profit or loss

UBS Property




Companies Fund 2014 2013 2014 2013 2014 2013 2014 2013 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Net gains/(losses) on financial instruments held for trading - - 2,282 3,183 (306) 50 627 776

Net gains/(losses) on financial instruments designated at fair value through profit or loss 10,689 44,765 134,333 198,794 33,367 43,114 17,429 7,162

Total net gains/(losses) on financial instruments held at fair value through profit or loss 10,689 44,765 136,615 201,977 33,061 43,164 18,056 7,938



Fund UBS Defensive


Investment Fund 2014 2013 2014 2013 2014 2013 2014 2013 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Net gains/(losses) on financial instruments held for trading 555 (1,864) - - 1,312 (193) 7,194 3,606

Net gains/(losses) on financial instruments designated at fair value through profit or loss 4,487 9,779 9,314 12,567 6,865 11,329 61,700 102,399

Total net gains/(losses) on financial instruments held at fair value through profit or loss 5,042 7,915 9,314 12,567 8,177 11,136 68,894 106,005



Share Fund




Net gains/(losses) on financial instruments held for trading - (13) 37 212 2,127 (4,777) 934 150

Net gains/(losses) on financial instruments designated at fair value through profit or loss 2,133 3,282 1,447 9,236 13,564 18,272 1,479 (33)

Total net gains/(losses) on financial instruments held at fair value through profit or loss 2,133 3,269 1,484 9,448 15,691 13,495 2,413 117


31

4 Net gains/(losses) on financial instruments held at fair value through profit or loss (continued)

UBS Tactical Beta


2014 2013 2014 2013 $'000 $'000 $'000 $'000

Net gains/(losses) on financial instruments held for trading 674 49 1,964 343

Net gains/(losses) on financial instruments designated at fair value through profit or loss 1,263 400 5,336 2,239

Total net gains/(losses) on financial instruments held at fair value through profit or loss 1,937 449 7,300 2,582


32

5 Auditor's remuneration

During the financial year the following professional fees were paid or payable for services provided by the auditor of the Schemes. These fees were paid for by the Responsible Entity and are not passed on to the Schemes.




Fund 2014 2013 2014 2013 2014 2013 $ $ $ $ $ $

Assurance services

Audit services Ernst & Young Audit and review of financial statements 13,259 13,259 13,259 15,474 13,259 13,259

Total remuneration for assurance services 13,259 13,259 13,259 15,474 13,259 13,259

UBS Australian Small Companies Fund


UBS Global Quantitative Share Fund

2014 2013 2014 2013 2014 2013 $ $ $ $ $ $

Assurance services



UBS Defensive Investment Fund

UBS Balanced Investment Fund

UBS Emerging Markets Equity Fund (AUD)

2014 2013 2014 2013 2014 2013 $ $ $ $ $ $

Assurance services




33

5 Auditor's remuneration (continued)

UBS-HALO Australian



Fund - Conservative 2014 2013 2014 2013 2014 2013 $ $ $ $ $ $

Assurance services





2014 2013 2014 2013 $ $ $ $

Assurance services

Audit services Ernst & Young Audit and review of financial statements 8,315 8,315 8,315 8,315

Total remuneration for assurance services 8,315 8,315 8,315 8,315


34

6 Net assets attributable to unitholders

As stipulated within the Schemes' Constitutions, each unit represents a right to an individual share in the Schemes and does not extend to a right to the underlying assets of the Schemes. There are no separate classes of units and each unit has the same rights attaching to it as all other units of the Schemes.

Movements in number of units and net assets attributable to unitholders during the financial year were as follows:

2014 2013 2014 2013 UBS Property Securities Fund No. '000 No. '000 $'000 $'000

Net assets attributable to unitholders

Opening balance 270,148 317,862 209,531 197,640

Applications 25,496 27,462 20,148 19,840

Redemptions (59,084) (76,778) (46,556) (55,070)

Units issued upon reinvestment of distributions 1,099 1,602 851 1,074

Increase/(decrease) in net assets attributable to unitholders - - 13,035 46,047

Closing balance 237,659 270,148 197,009 209,531

2014 2013 2014 2013 UBS Australian Share Fund No. '000 No. '000 $'000 $'000


Opening balance 681,198 775,098 1,076,067 1,018,729

Applications 83,354 71,626 146,021 107,037

Redemptions (150,630) (179,384) (263,464) (267,005)

Units issued upon reinvestment of distributions 11,346 13,858 19,426 20,153


Closing balance 625,268 681,198 1,112,519 1,076,067

2014 2013 2014 2013 UBS International Share Fund No. '000 No. '000 $'000 $'000


Opening balance 175,405 197,536 164,262 139,994

Applications 63,831 5,578 71,054 4,420

Redemptions (17,436) (33,320) (18,650) (28,832)

Units issued upon reinvestment of distributions 345 5,611 364 4,420


Closing balance 222,145 175,405 250,037 164,262

2014 2013 2014 2013 UBS Australian Small Companies Fund No. '000 No. '000 $'000 $'000


Opening balance 62,744 88,111 77,711 103,786

Applications 1,807 2,364 2,674 3,104

Redemptions (3,423) (30,200) (5,023) (39,478)


Return of capital - - (333) -


Closing balance 62,219 62,744 93,626 77,711


35

6 Net assets attributable to unitholders (continued)

2014 2013 2014 2013 UBS Global Property Securities Fund No. '000 No. '000 $'000 $'000


Opening balance 61,357 73,572 41,847 44,175

Applications 4,825 1,067 3,430 740

Redemptions (1,962) (16,691) (1,426) (10,884)

Units issued upon reinvestment of distributions - 3,409 - 2,140

Return of capital - - - (1,082)


Closing balance 64,220 61,357 51,013 41,847

2014 2013 2014 2013 UBS Global Quantitative Share Fund No. '000 No. '000 $'000 $'000


Opening balance 60,851 68,023 52,226 45,861

Applications - 9 - 6

Redemptions (65) (8,821) (59) (7,506)

Units issued upon reinvestment of distributions - 1,640 - 1,222


Closing balance 60,786 60,851 62,218 52,226

2014 2013 2014 2013 UBS Defensive Investment Fund No. '000 No. '000 $'000 $'000


Opening balance 118,730 121,425 130,052 121,620

Applications 40,214 19,673 46,200 21,261

Redemptions (39,179) (24,775) (44,852) (26,470)



Closing balance 120,940 118,730 140,696 130,052

2014 2013 2014 2013 UBS Balanced Investment Fund No. '000 No. '000 $'000 $'000


Opening balance 614,544 643,343 696,862 627,477

Applications 67,484 17,437 84,154 19,143

Redemptions (72,136) (47,839) (90,281) (51,575)



Closing balance 613,020 614,544 781,892 696,862


36


2014 2013 2014 2013 UBS Emerging Markets Equity Fund (AUD) No. '000 No. '000 $'000 $'000


Opening balance 36,812 37,865 21,284 18,401

Applications 32 329 20 189

Redemptions (280) (1,516) (167) (777)

Units issued upon reinvestment of distributions 323 134 190 67


Closing balance 36,887 36,812 23,115 21,284

2014 2013 2014 2013 UBS-HALO Australian Share Fund No. '000 No. '000 $'000 $'000


Opening balance 4,947 65,605 4,627 61,453

Applications 21,532 1,602 21,638 1,621

Redemptions (1,844) (72,362) (1,925) (68,552)

Units issued upon reinvestment of distributions 432 10,102 414 9,715

Increase/(decrease) in net assets attributable to unitholders - - 1,243 390

Closing balance 25,067 4,947 25,997 4,627

2014 2013 2014 2013 UBS Clarion Global Property Securities Fund No. '000 No. '000 $'000 $'000


Opening balance 110,449 84,174 114,453 75,512

Applications 75,559 53,144 82,260 53,814

Redemptions (30,409) (26,877) (32,877) (26,413)



Closing balance 155,604 110,449 185,061 114,453


37


2014 2013 2014 2013 UBS Tactical Beta Fund - Conservative No. '000 No. '000 $'000 $'000


Opening balance 26,156 - 25,626 -

Applications 25,865 33,094 26,555 32,752

Redemptions (3,749) (7,322) (3,847) (7,248)

Units issued upon reinvestment of distributions - 384 - 359

Increase/(decrease) in net assets attributable to unitholders - - 1,740 (237)

Closing balance 48,272 26,156 50,074 25,626

2014 2013 2014 2013 UBS Tactical Beta Fund - Growth No. '000 No. '000 $'000 $'000



Applications 19,848 10,187 23,277 10,869

Redemptions (7,123) (36) (8,254) (40)


Increase/(decrease) in net assets attributable to unitholders - - 801 229

Closing balance 23,435 10,398 27,476 11,299

2014 2013 2014 2013 UBS Tactical Beta Fund - Balanced No. '000 No. '000 $'000 $'000



Applications 46,141 68,059 51,394 68,907

Redemptions (5,156) (5,636) (5,621) (5,937)

Units issued upon reinvestment of distributions - - - -


Closing balance 103,408 62,423 116,445 64,621

Capital risk management

The Schemes manage their net assets attributable to unitholders as capital, notwithstanding net assets attributable to unitholders are classified as a liability. The amount of net assets attributable to unitholders can change significantly on a daily basis as the Schemes are subject to daily applications and redemptions at the discretion of unitholders.

Liquid assets include cash and cash equivalents, listed equities, listed trusts, redeemable preference shares and any other securities that are readily convertible to cash under normal market conditions.

In accordance with the Schemes' investment policy, the Schemes hold certain portion of the net assets attributable to unitholders in liquid assets.

Refer to Note 13 Financial Risk Management for further details.


38

7 Distributions to unitholders

The distributions for the financial year were paid/payable as follows:

2014 2014 2013 2013 UBS Property Securities Fund $'000 CPU $'000 CPU

Distributions

30 September 1,030 0.40 3,000 1.00

31 December 1,504 0.60 1,754 0.60

31 March 983 0.40 1,132 0.40

30 June (payable) 5,258 2.21 2,432 0.90

8,775 3.61 8,318 2.90

2014 2014 2013 2013 UBS Australian Share Fund $'000 CPU $'000 CPU

Distributions

30 September 11,325 1.70 11,287 1.50

31 December 15,110 2.30 14,211 2.00

31 March 5,834 0.90 8,417 1.20

30 June (payable) 8,274 1.32 7,834 1.15

40,543 6.22 41,749 5.85

2014 2014 2013 2013 UBS International Share Fund $'000 CPU $'000 CPU

Distributions

31 December 179 0.10 394 0.20

18 February 82 0.05 - -

24 June - - 2,467 1.28

30 June (payable) 1,445 0.65 153 0.09

1,706 0.80 3,014 1.57

2014 2014 2013 2013 UBS Australian Small Companies Fund $'000 CPU $'000 CPU

Distributions

30 September 470 0.75 490 0.56

31 December 751 1.20 860 1.10

31 March - - 756 1.20

30 June (payable) - - 505 0.81

1,221 1.95 2,611 3.67


39

7 Distributions to unitholders (continued)

2014 2014 2013 2013 UBS Global Property Securities Fund $'000 CPU $'000 CPU

Distributions

13 July 2012 - - 1,314 1.79

30 September - - 201 0.30

31 December - - 199 0.30

31 March - - 201 0.30

24 May - - 402 0.60

30 June (payable) 26 0.04 - -

26 0.04 2,317 3.29

2014 2014 2013 2013 UBS Global Quantitative Share Fund $'000 CPU $'000 CPU

Distributions

31 December 158 0.26 179 0.26

31 May - - 510 0.74

30 June (payable) 606 1.00 206 0.34

764 1.26 895 1.34

2014 2014 2013 2013 UBS Defensive Investment Fund $'000 CPU $'000 CPU

Distributions

30 September 1,070 0.90 1,059 0.90

31 December 956 0.80 1,291 1.10

31 March 238 0.20 1,300 1.10

30 June (payable) 4,030 3.33 699 0.59

6,294 5.23 4,349 3.69

2014 2014 2013 2013 UBS Balanced Investment Fund $'000 CPU $'000 CPU

Distributions

30 September 1,545 0.25 1,587 0.25

31 December 1,551 0.25 1,565 0.25

31 March 1,562 0.25 1,859 0.30

30 June (payable) 19,625 3.20 22,778 3.71

24,283 3.95 27,789 4.51

2014 2014 2013 2013 UBS Emerging Markets Equity Fund (AUD) $'000 CPU $'000 CPU

Distributions

31 December 37 0.10 18 0.05

30 June (payable) 67 0.18 155 0.42

104 0.28 173 0.47


40


2014 2014 2013 2013 UBS-HALO Australian Share Fund $'000 CPU $'000 CPU

Distributions

30 September 87 1.50 892 1.50

16 December 112 1.70 - -

31 December - - 530 1.00

10 January - - 4,070 7.67

21 January - - 4,000 9.09

31 March 91 0.40 - -

30 June (payable) 448 1.79 330 6.67

738 5.39 9,822 25.93

2014 2014 2013 2013 UBS Clarion Global Property Securities Fund $'000 CPU $'000 CPU

Distributions

31 December - - 125 0.14

30 June (payable) 1,626 1.04 75 0.07

1,626 1.04 200 0.21

2014 2014 2013 2013 UBS Tactical Beta Fund - Conservative $'000 CPU $'000 CPU

Distributions

30 June 2012 - - 337 6.73

30 September 70 0.20 - -

11 December - - 111 0.42

31 December 79 0.20 - -

31 March 43 0.10 236 1.00

30 June (payable) 2,002 4.15 1,100 4.21

2,194 4.65 1,784 12.36

2014 2014 2013 2013 UBS Tactical Beta Fund - Growth $'000 CPU $'000 CPU

Distributions

30 June 2012 - - 207 4.14

30 September 29 0.20 - -

31 December 39 0.20 14 0.26

19 March 690 3.04 - -

31 March - - 28 0.40

30 June (payable) 1,108 4.73 311 2.99

1,866 8.17 560 7.79


41


2014 2014 2013 2013 UBS Tactical Beta Fund - Balanced $'000 CPU $'000 CPU

Distributions

30 September 148 0.20 - -

31 December 159 0.20 174 0.30

31 March 89 0.10 348 0.60

30 June (payable) 4,216 4.08 2,604 4.17

4,612 4.58 3,126 5.07


42

8 Financial assets held at fair value through profit or loss

UBS Property




Companies Fund 2014 2013 2014 2013 2014 2013 2014 2013 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Held for trading

Derivatives - - - 241 103 238 7 65

Total held for trading - - - 241 103 238 7 65

Designated at fair value through profit or loss

Listed equities 4,002 6,376 971,782 949,550 248,756 161,708 84,243 68,899

Listed unit trusts - 280 55,829 8,868 - 52 - -

Listed property trust 185,243 198,323 - 24,174 - - 3,867 2,026

Unlisted managed investment schemes - - 74,498 60,008 - - 320 -

Preference shares - Redeemable - - - - - - - -

Total designated at fair value through profit or loss 189,245 204,979 1,102,109 1,042,600 248,756 161,760 88,430 70,925

Total financial assets held at fair value through profit or loss 189,245 204,979 1,102,109 1,042,841 248,859 161,998 88,437 70,990



Fund UBS Defensive


Investment Fund 2014 2013 2014 2013 2014 2013 2014 2013 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Held for trading

Derivatives 596 161 - - 1,456 624 8,785 3,351

Total held for trading 596 161 - - 1,456 624 8,785 3,351


Listed equities 10,726 11,677 60,950 50,757 23,349 22,185 63,937 24,551

Listed unit trusts - - - - 2,730 - 9,276 73,698

Listed property trust 38,782 31,571 1,192 467 - - - -

Unlisted managed investment schemes - - - - 105,180 99,624 675,107 581,263

Preference shares - Redeemable - - - 592 - - - -

Total designated at fair value through profit or loss 49,508 43,248 62,142 51,816 131,259 121,809 748,320 679,512

Total financial assets held at fair value through profit or loss 50,104 43,409 62,142 51,816 132,715 122,433 757,105 682,863


43

8 Financial assets held at fair value through profit or loss (continued)



Share Fund




Held for trading

Derivatives - - 1 2 2,251 437 893 258

Total held for trading - - 1 2 2,251 437 893 258


Listed equities 22,702 20,809 23,850 4,635 23,167 11,910 2,893 1,850

Listed unit trusts - - 1,404 - - - 8,386 5,446

Listed property trust - - - - 156,950 104,492 1,095 -

Unlisted managed investment schemes - - - - - - 19,506 12,768

Preference shares - Redeemable - - - - - - - -

Total designated at fair value through profit or loss 22,702 20,809 25,254 4,635 180,117 116,402 31,880 20,064

Total financial assets held at fair value through profit or loss 22,702 20,809 25,255 4,637 182,368 116,839 32,773 20,322



2014 2013 2014 2013 $'000 $'000 $'000 $'000

Held for trading

Derivatives 468 74 1,817 654

Total held for trading 468 74 1,817 654


Listed equities 4,012 1,843 12,288 8,006

Listed unit trusts 9,128 4,208 32,337 23,656

Listed property trust 1,324 - 4,680 -

Unlisted managed investment schemes 3,360 1,853 30,537 24,582

Preference shares - Redeemable - - - -

Total designated at fair value through profit or loss 17,824 7,904 79,842 56,244

Total financial assets held at fair value through profit or loss 18,292 7,978 81,659 56,898

An overview of the risk exposures relating to financial assets held at fair value through profit or loss is included in Note 13.


44

9 Receivables

UBS Property




Companies Fund 2014 2013 2014 2013 2014 2013 2014 2013 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Trade receivables 2,522 2,433 890 - - 86 45 -

Dividend/Trust distribution receivable 5,147 3,472 10,128 9,811 539 538 173 136

Interest receivable - - - - - - - -

Unsettled applications 83 - 550 - 39 - 8 43

Other receivables 53 61 193 270 82 56 121 25

Total receivables 7,805 5,966 11,761 10,081 660 680 347 204



Fund UBS Defensive


Investment Fund 2014 2013 2014 2013 2014 2013 2014 2013 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Trade receivables - - - - - - - -

Dividend/Trust distribution receivable 210 165 146 131 2,500 1,789 10,609 7,331

Interest receivable - - - - 12 - 77 -

Unsettled applications - - - - 107 - 115 -


Total receivables 225 179 166 147 2,633 1,803 10,852 7,387



Share Fund




Trade receivables 57 - - - - 1,332 - -

Dividend/Trust distribution receivable 28 22 253 47 899 524 1,275 821

Interest receivable - - - - - - 10 5

Unsettled applications - - 30 - 617 122 98 1


Total receivables 94 31 289 48 1,608 2,054 1,387 829



2014 2013 2014 2013 $'000 $'000 $'000 $'000

Trade receivables - - - -

Dividend/Trust distribution receivable 400 223 2,363 1,792

Interest receivable 4 - 19 12

Unsettled applications 67 114 440 166

Other receivables 2 1 10 6

Total receivables 473 338 2,832 1,976


45

10 Financial liabilities held at fair value through profit or loss

UBS Property




Companies Fund 2014 2013 2014 2013 2014 2013 2014 2013 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Held for trading

Derivatives - - - - 409 188 - -

Total Held for trading - - - - 409 188 - -

Total financial liabilities held at fair value through profit or loss - - - - 409 188 - -



Fund UBS Defensive


Investment Fund 2014 2013 2014 2013 2014 2013 2014 2013 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Held for trading

Derivatives 41 2,025 - - 399 918 2,746 3,847

Total Held for trading 41 2,025 - - 399 918 2,746 3,847

Total financial liabilities held at fair value through profit or loss 41 2,025 - - 399 918 2,746 3,847



Share Fund




Held for trading

Derivatives - - - - 124 5,213 136 172

Total Held for trading - - - - 124 5,213 136 172

Total financial liabilities held at fair value through profit or loss - - - - 124 5,213 136 172



2014 2013 2014 2013 $'000 $'000 $'000 $'000

Held for trading

Derivatives 74 124 340 598

Total Held for trading 74 124 340 598

Total financial liabilities held at fair value through profit or loss 74 124 340 598

An overview of the risk exposures relating to financial liabilities held at fair value through profit or loss is included in Note 13.


46

11 Payables

UBS Property




Companies Fund 2014 2013 2014 2013 2014 2013 2014 2013 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Trade payables - - - - - - 989 173

Unsettled redemptions 339 371 1,721 2,174 165 617 22 -

Responsible Entity's fees 150 157 840 799 227 159 71 77

Other payables - 2 2 - 2 2 2 1

Total payables 489 530 2,563 2,973 394 778 1,084 251



Fund UBS Defensive


Investment Fund 2014 2013 2014 2013 2014 2013 2014 2013 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Trade payables - 220 - - - 90 - 1,487

Unsettled redemptions - - - - 327 109 216 322


Other payables - 1 - - 1 1 - -

Total payables 44 257 54 44 378 244 374 1,995



Share Fund




Trade payables - - - - - 3,396 - -

Unsettled redemptions - - - - 329 - 153 -


Other payables - - - - - 7 - -

Total payables 26 24 21 4 477 3,494 169 8



2014 2013 2014 2013 $'000 $'000 $'000 $'000

Trade payables - - - -

Unsettled redemptions 8 - 8 -

Responsible Entity's fees 8 3 35 21

Other payables - - - -

Total payables 16 3 43 21


47

12 Derivative financial instruments

In the normal course of business, the Schemes may enter into transactions in various derivative financial instruments to gain or reduce exposure to relevant markets and currencies as well as to manage certain risks. A derivative is a financial instrument or other contract which is settled at a future date and whose value changes in response to the change in a specified interest rate, equity market or index, financial instrument price, commodity price, foreign exchange rate, index of prices or rates, credit rating or credit index or other variable.

Derivative financial instruments require no initial net investment or an initial net investment that is smaller than would be required for other types of contracts that would be expected to have a similar response to changes in market factors.

Derivative transactions include a wide assortment of instruments, such as forward currency contracts, futures, options and interest rate swaps. Derivatives are considered to be part of the investment process. The use of derivatives is an essential part of the Schemes' portfolio management. Derivatives are not managed in isolation. Consequently, the use of derivatives is multifaceted and may include:

• hedging to protect assets of the Schemes against fluctuations in market values or to reduce volatility;

• a substitution for trading of physical securities; or

• adjusting asset exposures within the parameters set in the investment strategies, and adjusting the duration of fixed interest portfolios or the weighted average maturity of cash portfolios.

While derivatives are used for trading purposes, they are not used to gear (leverage) a portfolio unless expressly permitted under the Schemes' investment policy. Gearing a portfolio would occur if the level of exposure to the markets exceeds the underlying value of the Schemes.

The Schemes known as UBS Property Securities Fund, UBS Global Quantitative Share Fund, UBS Emerging Markets Equity Fund (AUD) held no derivatives as at 30 June 2014. The Schemes hold the following derivative instruments:

(a) Futures

Futures are contractual obligations to buy or sell financial instruments on a future date at a specified price established in an organised market. The futures contracts are collateralised by cash or marketable securities. Changes in futures contracts' values are usually settled net daily with the exchange. Interest rate futures are contractual obligations to receive or pay a net amount based on changes in interest rates at a future date at a specified price, established in an organised financial market.

(b) Options

An option is a contractual arrangement under which the seller (writer) grants the purchaser (holder) the right, but not the obligation, either to buy (a call option) or sell (a put option) at or by a set date or during a set period, a specific amount of securities or a financial instrument at a predetermined price. The seller receives a premium from the purchaser in consideration for the assumption of future securities price risk. Options held by the Schemes are exchange-traded. The Schemes are exposed to credit risk on purchased options to the extent of their carrying amount, which is their fair value.

(c) Forward currency contracts

Forward currency contracts are primarily used by the Schemes to hedge against foreign currency exchange rate risks on its non-Australian dollar denominated trading securities. The Schemes agree to receive or deliver a fixed quantity of foreign currency for an agreed upon price on an agreed future date. Forward currency contracts are valued at the prevailing bid price at the end of each financial year. The Schemes recognise a gain or loss equal to the change in fair value at the end of each financial year.

(d) Swaps

An interest rate swap is an agreement between two parties to exchange their interest obligations (payments) or receipts at set intervals on a notional principal amount over an agreed time period.

The fair value of interest rate swaps is the estimated amount that the entity would receive or pay to terminate the swap at the end of the financial year, taking into account current interest rates and the current creditworthiness of the swap counterparties.

A credit default swap is a financial agreement between two parties which allows the transfer of third party credit risk. The buyer of a credit default swap receives credit protection, whereas the seller of the swap guarantees the credit worthiness of the debt security. A credit default swap is considered insurance against non-payment.


48

12 Derivative financial instruments (continued)

Outstanding notional contracts on derivatives are as follows:

UBS Property Securities Fund Fair Value 2014

Contract/ notional Assets Liabilities

$'000 $'000 $'000

Nil - - -

- -

UBS Property Securities Fund Fair Value 2013


$'000 $'000 $'000

Nil - - -

- -

UBS Australian Share Fund Fair Value 2014


$'000 $'000 $'000

Nil - - -

- -

UBS Australian Share Fund Fair Value 2013


$'000 $'000 $'000

Buy

Futures 20,147 241 -

241 -

UBS International Share Fund Fair Value 2014


$'000 $'000 $'000

Forward foreign exchange contracts 45,071 103 409

103 409

UBS International Share Fund Fair Value 2013


$'000 $'000 $'000


238 188

An overview of the risk exposures relating to derivatives is included in Note 13.


49


UBS Australian Small Companies Fund Fair Value 2014


$'000 $'000 $'000

Buy

Futures 4,812 7 -

7 -

UBS Australian Small Companies Fund Fair Value 2013


$'000 $'000 $'000

Buy

Futures 6,850 65 -

65 -

UBS Global Property Securities Fund Fair Value 2014


$'000 $'000 $'000


596 41

UBS Global Property Securities Fund Fair Value 2013


$'000 $'000 $'000

Forward foreign exchange contracts 128,724 161 2,025

161 2,025

UBS Global Quantitative Share Fund Fair Value 2014


$'000 $'000 $'000

Nil - - -

- -

UBS Global Quantitative Share Fund Fair Value 2013


$'000 $'000 $'000

Nil - - -

- -



50


UBS Defensive Investment Fund Fair Value 2014


$'000 $'000 $'000


Buy

Swaps 7,639 782 -

Futures 35,563 514 10

Sell

Futures 39,804 12 242

1,456 399

UBS Defensive Investment Fund Fair Value 2013


$'000 $'000 $'000


Buy

Futures 28,762 93 617

Sell

Futures 20,767 325 -

Options 106 - 116

624 918

UBS Balanced Investment Fund Fair Value 2014


$'000 $'000 $'000


Buy

Futures 222,287 2,892 531

Swaps 50,326 5,033 -

Sell

Futures 185,734 87 1,390

8,785 2,746

UBS Balanced Investment Fund Fair Value 2013


$'000 $'000 $'000

Forward foreign exchange contracts 126,642 1,266 886

Buy

Futures 113,103 511 2,961

Sell

Futures 97,354 1,574 -

3,351 3,847



51


UBS Emerging Markets Equity Fund (AUD) Fair Value 2014


$'000 $'000 $'000

Nil - - -

- -

UBS Emerging Markets Equity Fund (AUD) Fair Value 2013


$'000 $'000 $'000

Nil - - -

- -

UBS-HALO Australian Share Fund Fair Value 2014


$'000 $'000 $'000

Buy

Futures 401 1 -

1 -

UBS-HALO Australian Share Fund Fair Value 2013


$'000 $'000 $'000

Buy

Futures 118 2 -

2 -

UBS Clarion Global Property Securities Fund Fair Value 2014


$'000 $'000 $'000

Forward foreign exchange contracts 503,186 2,251 124

2,251 124

UBS Clarion Global Property Securities Fund Fair Value 2013


$'000 $'000 $'000

Forward foreign exchange contracts 338,656 437 5,213

437 5,213



52


UBS Tactical Beta Fund - Conservative Fair Value 2014


$'000 $'000 $'000


Buy

Swaps 6,548 654 -

Futures 14,371 226 22

Sell

Futures 7,840 1 55

893 136

UBS Tactical Beta Fund - Conservative Fair Value 2013


$'000 $'000 $'000


Buy

Swaps 6,336 141 -

Futures 5,794 35 123

Sell

Futures 2,913 58 -

258 172

UBS Tactical Beta Fund - Growth Fair Value 2014


$'000 $'000 $'000


Buy

Swaps 3,009 301 -

Futures 8,999 116 14

Sell

Futures 2,746 - 20

468 74

UBS Tactical Beta Fund - Growth Fair Value 2013


$'000 $'000 $'000


Buy

Futures 3,154 42 39

Sell

Futures 946 19 -

74 124



53


UBS Tactical Beta Fund - Balanced Fair Value 2014


$'000 $'000 $'000


Buy

Futures 30,347 462 50

Swaps 12,332 1,227 -

Sell

Futures 18,524 3 136

1,817 340

UBS Tactical Beta Fund - Balanced Fair Value 2013


$'000 $'000 $'000


Buy

Futures 4,718 91 259

Swaps 15,295 317 -

Sell

Futures 8,397 167 -

654 598



54

13 Financial risk management

(a) Objectives, strategies, policies and processes

The Schemes' activities may expose them to a variety of financial risks: market risk (including price risk and foreign exchange risk), concentration risk and liquidity risk.

The Schemes' overall risk management program focuses on ensuring compliance with the Schemes' Product Disclosure Statements and seeks to maximise the returns derived for the level of risk to which the Schemes are exposed. Financial risk management is carried out by an Investment Manager under policies approved by the Board of Directors of the Responsible Entity (the "Board'').

The Schemes use different methods to measure different types of risk to which they are exposed. These methods include sensitivity analysis in the case of foreign exchange risk and price risk.

As part of its risk management strategy, the Schemes may use derivatives and other investments, including equity price and futures, swaps, options and forward currency contracts, to manage exposures resulting from changes in interest rates, foreign currencies, equity price,and exposures arising from derivative transactions.

(b) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: price risk, foreign currency risk and interest rate risk. Market risk is managed and monitored using sensitivity analysis, and minimised through ensuring that all investment activities are undertaken in accordance with established mandates, investment strategies and guidelines.

The market risk disclosures are prepared on the basis of the Schemes' direct investments and not on a look through basis for investments held in the Schemes.

The sensitivity of the Schemes' net assets attributable to unitholders (and profit/(loss) before finance costs attributable to unitholders) to price risk, foreign exchange risk and interest rate risk is measured by the reasonably possible movements approach. This approach is determined based on management's best estimate, having regard to a number of factors, including historical levels of changes in interest rates and foreign exchange rates, historical correlation of the Schemes' investments with the relevant benchmarks and market volatility. However, actual movements in the risk variables may be greater or less than anticipated due to a number of factors, including unusually large market shocks resulting from changes in the performance of the economies, markets and securities in which the Schemes invest. As a result, historic variations in the risk variables are not a definitive indicator of future variations in the risk variables.

Net assets attributable to unitholders may include investments in debt and equity securities and related derivatives.


55

13 Financial risk management (continued)

(b) Market risk (continued)




Fund UBS Australian Small

Companies Fund 2014 2013 2014 2013 2014 2013 2014 2013 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Derivatives assets held for trading - - - 241 103 238 7 65

Derivatives liabilities held for trading - - - - 409 188 - -

Securities designated at fair value through profit or loss 189,245 204,979 1,102,109 1,042,600 248,756 161,760 88,430 70,925





2014 2013 2014 2013 2014 2013 2014 2013 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Derivatives assets held for trading 596 161 - - 1,456 624 8,785 3,351

Derivatives liabilities held for trading 41 2,025 - - 399 918 2,746 3,847

Securities designated at fair value through profit or loss 49,508 43,248 62,142 51,816 131,259 121,809 748,320 679,512


UBS-HALO Australian Share Fund

UBS Clarion Global Property Securities Fund

UBS Tactical Beta Fund - Conservative

2014 2013 2014 2013 2014 2013 2014 2013 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Derivatives assets held for trading - - 1 2 2,251 437 893 258

Derivatives liabilities held for trading - - - - 124 5,213 136 172

Securities designated at fair value through profit or loss 22,702 20,809 25,254 4,635 180,117 116,402 31,880 20,064



2014 2013 2014 2013 $'000 $'000 $'000 $'000

Derivatives assets held for trading 468 74 1,817 654

Derivatives liabilities held for trading 74 124 340 598

Securities designated at fair value through profit or loss 17,824 7,904 79,842 56,244


56



(i) Price risk

Price risk is the risk that the fair value of future cash flows of equities will fluctuate because of changes in market prices (other than those arising from interest rate risk or foreign exchange risk) whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market.

Price risk exposure arises from the Schemes' investment portfolio. The investments are classified on the Statement of Financial Position as held at fair value through profit or loss. All securities investments present a risk of loss of capital. Except for equities sold short, the maximum risk resulting from financial instruments is determined by the fair value of the financial instruments. Possible losses from equities sold short can be unlimited.

The Investment Manager mitigates this price risk through diversification and a careful selection of securities and other financial instruments within specified limits.

The Schemes' overall market positions are monitored on a daily basis by the Schemes' Investment Manager.

At 30 June 2014, if the equity prices had increased/(decreased) by the percentage indicated below, with all other variables held constant, the net assets attributable to unitholders (and profit/(loss) before finance costs attributable to unitholders) would have changed by the following amounts, approximately and respectively:

UBS Property Securities Fund As at 30 June 2014 As at 30 June 2013

Increased by 10% $'000

Decreased by 10% $'000



Increase/(decrease) in net assets attributable to unitholders (and profit/(loss) before finance costs attributable to unitholders) 18,924 (18,924) 20,498 (20,498)

UBS Australian Share Fund As at 30 June 2014 As at 30 June 2013






UBS International Share Fund As at 30 June 2014 As at 30 June 2013






UBS Australian Small Companies Fund As at 30 June 2014 As at 30 June 2013







57



UBS Global Property Securities Fund As at 30 June 2014 As at 30 June 2013

Increased by 10%

$'000



Decreased by 10%$'000


UBS Global Quantitative Share Fund As at 30 June 2014 As at 30 June 2013






UBS Defensive Investment Fund As at 30 June 2014 As at 30 June 2013





Increase/(decrease) in net assets attributable to unitholders (and profit/(loss) before finance costs attributable to unitholders) 13,429 (13,429) (6,297) (9,005)

UBS Balanced Investment Fund As at 30 June 2014 As at 30 June 2013






UBS Emerging Markets Equity Fund (AUD) As at 30 June 2014 As at 30 June 2013






UBS-HALO Australian Share Fund As at 30 June 2014 As at 30 June 2013





Increase/(decrease) in net assets attributable to unitholders (and profit/(loss) before finance costs attributable to unitholders) 2,566 (2,566) 475 (475)


58



UBS Clarion Global Property Securities Fund As at 30 June 2014 As at 30 June 2013






UBS Tactical Beta Fund - Conservative As at 30 June 2014 As at 30 June 2013






UBS Tactical Beta Fund - Growth As at 30 June 2014 As at 30 June 2013





Increase/(decrease) in net assets attributable to unitholders (and profit/(loss) before finance costs attributable to unitholders) 2,399 (2,399) 880 (880)

UBS Tactical Beta Fund - Balanced As at 30 June 2014 As at 30 June 2013






The above analysis is performed on the same basis for both 2014 and 2013 financial years for each of the respective Schemes.

(ii) Foreign exchange risk

The foreign exchange risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates.

The Schemes may hold assets denominated in currencies other than the Australian dollar, the functional currency. The Product Disclosure Statement and fund guidelines dictate what and how much foreign currency exposure may be assumed. The sensitivity analysis following is prepared on the basis of asset level exposure excluding currency hedges. It is therefore potentially exposed to foreign exchange risk, as the value of the securities denominated in other currencies will fluctuate due to changes in exchange rates. The risk is measured using sensitivity analysis.

As stated in Note 13(a) above, as part of their risk management strategy, some of the Schemes use forward foreign exchange contracts to manage exposures resulting from changes in foreign currencies. Refer to Note 12 for forward foreign exchange contracts held in each of the respective Schemes.

In accordance with the Schemes' policy, the Investment Manager monitors the Schemes' currency position on a regular basis.

The foreign exchange risk disclosures have been prepared on the basis of the Schemes' direct investments and not on a look through basis for investments held indirectly through unit trusts. Consequently the disclosure of currency risk in the note may not represent the true currency risk profile of the Schemes where the Schemes have significant investments in indirect trusts which also have exposure to the currency markets.


59



The tables below summarise the Scheme's exposure to foreign exchange risk.

UBS Property Securities Fund

Australian

Dollars US Dollars Euro Japanese

Yen British Pounds

Other currencies Total

A$'000 A$'000 A$'000 A$'000 A$'000 A$'000 A$'000

2014

Assets

Cash and cash equivalents 5,634 - - - 1 71 5,706

Receivables 7,780 - - - - 25 7,805

Listed equities 825 - - - - 3,177 4,002

Listed property trusts 184,007 - - - - 1,236 185,243

Total assets 198,246 - - - 1 4,509 202,756

Liabilities

Distributions payable 5,258 - - - - - 5,258

Payables 489 - - - - - 489

Total liabilities (excluding net assets attributable to unitholders) 5,747 - - - - - 5,747

Net assets attributable to unitholders 192,499 - - - 1 4,509 197,009


Australian


Yen British Pounds


A$'000 A$'000 A$'000 A$'000 A$'000 A$'000 A$'000

2013

Assets

Cash and cash equivalents 1,367 - - - 1 180 1,548

Receivables 5,932 - - - - 34 5,966

Listed equities - - - - - 6,376 6,376

Listed unit trusts 280 - - - - - 280

Listed property trusts 198,323 - - - - - 198,323

Total assets 205,902 - - - 1 6,590 212,493

Liabilities


Payables 530 - - - - - 530

Total liabilities (excluding net assets attributable to unitholders) 2,962 - - - - - 2,962

Net assets attributable to unitholders 202,940 - - - 1 6,590 209,531


60



UBS Australian Share Fund

There was no significant direct foreign exchange risk for UBS Australian Share Fund as at 30 June 2014 (2013: Nil).

UBS International Share Fund

Australian


Yen British Pounds


A$'000 A$'000 A$'000 A$'000 A$'000 A$'000 A$'000

2014

Assets

Cash and cash equivalents 575 821 237 456 136 541 2,766

Receivables 121 124 64 87 37 227 660

Listed equities - 124,314 30,817 29,545 32,176 31,904 248,756

Forward foreign exchange contracts - 40 12 - - 51 103

Total assets 696 125,299 31,130 30,088 32,349 32,723 252,285

Liabilities


Payables 394 - - - - - 394

Forward foreign exchange contracts - 408 - - - 1 409

Total liabilities (excluding net assets attributable to unitholders) 1,839 408 - - - 1 2,248

Net assets attributable to unitholders (1,143) 124,891 31,130 30,088 32,349 32,722 250,037


Australian


Yen British Pounds


A$'000 A$'000 A$'000 A$'000 A$'000 A$'000 A$'000

2013

Assets

Cash and cash equivalents 654 1,439 161 130 124 195 2,703

Receivables 56 94 95 19 37 379 680

Listed equities - 83,013 18,388 21,904 16,956 21,447 161,708

Listed unit trusts - - - - - 52 52


Total assets 710 84,772 18,644 22,053 17,117 22,085 165,381

Liabilities

Distributions payable 153 - - - - - 153

Payables 778 - - - - - 778

Forward foreign exchange contracts - 81 10 - 43 54 188

Total liabilities (excluding net assets attributable to unitholders) 931 81 10 - 43 54 1,119

Net assets attributable to unitholders (221) 84,691 18,634 22,053 17,074 22,031 164,262


61




There is no significant direct foreign exchange risk for UBS Australian Small Companies Fund as at 30 June 2014 (2013: Nil).


Australian


Yen British Pounds


A$'000 A$'000 A$'000 A$'000 A$'000 A$'000 A$'000

2014

Assets

Cash and cash equivalents 400 84 214 30 17 50 795

Receivables 76 67 2 27 22 31 225

Listed equities - 1,077 2,324 5,344 677 1,304 10,726

Listed property trusts 2,331 22,735 4,830 1,880 4,042 2,964 38,782

Forward foreign exchange contracts - 377 91 84 - 44 596

Total assets 2,807 24,340 7,461 7,365 4,758 4,393 51,124

Liabilities


Payables 44 - - - - - 44

Forward foreign exchange contracts - 7 3 3 18 10 41

Total liabilities (excluding net assets attributable to unitholders) 70 7 3 3 18 10 111

Net assets attributable to unitholders 2,737 24,333 7,458 7,362 4,740 4,383 51,013


Australian


Yen British Pounds


A$'000 A$'000 A$'000 A$'000 A$'000 A$'000 A$'000

2013

Assets


Receivables 72 47 2 28 16 14 179

Listed equities - 1,510 997 3,817 440 4,913 11,677



Total assets 3,418 21,022 2,883 5,638 3,463 7,705 44,129

Liabilities

Payables 36 - - - 221 - 257

Forward foreign exchange contracts - 970 162 349 154 390 2,025

Total liabilities (excluding net assets attributable to unitholders) 36 970 162 349 375 390 2,282



62




Australian


Yen British Pounds


A$'000 A$'000 A$'000 A$'000 A$'000 A$'000 A$'000

2014

Assets


Receivables 19 62 28 2 39 16 166

Listed equities - 35,707 7,599 7,330 3,831 6,483 60,950

Listed property trusts - 1,192 - - - - 1,192

Total assets 251 37,069 7,692 7,398 3,899 6,569 62,878

Liabilities


Payables 54 - - - - - 54

Total liabilities (excluding net assets attributable to unitholders) 660 - - - - - 660

Net assets attributable to unitholders (409) 37,069 7,692 7,398 3,899 6,569 62,218


Australian


Yen British Pounds


A$'000 A$'000 A$'000 A$'000 A$'000 A$'000 A$'000

2013

Assets


Receivables 16 26 32 5 36 32 147

Listed equities - 29,329 7,030 4,990 3,251 6,157 50,757

Listed Property Trust - 467 - - - - 467

Preference shares - redeemable - - 592 - - - 592

Total assets 254 29,902 7,687 5,044 3,309 6,280 52,476

Liabilities


Payables 44 - - - - - 44


Net assets attributable to unitholders 4 29,902 7,687 5,044 3,309 6,280 52,226


63




Australian


Yen British Pounds


A$'000 A$'000 A$'000 A$'000 A$'000 A$'000 A$'000

2014

Assets

Cash and cash equivalents 9,135 172 446 19 244 139 10,155

Receivables 2,552 - - - 81 - 2,633

Listed equities 14,427 2,584 - - 6,338 - 23,349

Listed unit trusts - - 2,730 - - - 2,730

Unlisted managed investment schemes 105,180 - - - - - 105,180

Swaps - 782 - - - - 782

Futures 43 50 239 79 - 115 526


Total assets 131,337 3,631 3,450 98 6,663 324 145,503

Liabilities


Payables 378 - - - - - 378

Options - - - - - - -

Futures 22 62 - 168 - - 252

Forward foreign exchange contracts - - 8 - 8 131 147

Total liabilities (excluding net assets attributable to unitholders) 4,430 62 8 168 8 131 4,807

Net assets attributable to unitholders 126,907 3,569 3,442 (70) 6,655 193 140,696


64




Australian


Yen British Pounds


A$'000 A$'000 A$'000 A$'000 A$'000 A$'000 A$'000

2013

Assets

Cash and cash equivalents 6,092 700 - 1 343 541 7,677

Receivables 1,803 - - - - - 1,803

Listed equities 12,202 3,207 - - 6,776 - 22,185


Futures - 146 179 93 - - 418


Total assets 119,721 4,078 255 94 7,119 646 131,913

Liabilities


Payables 244 - - - - - 244

Options 116 - - - - - 116

Futures 194 - - 26 397 - 617

Forward foreign exchange contracts - - - - 56 129 185

Total liabilities (excluding net assets attributable to unitholders) 1,253 - - 26 453 129 1,861

Net assets attributable to unitholders 118,468 4,078 255 68 6,666 517 130,052


65




Australian


Yen British Pounds


A$'000 A$'000 A$'000 A$'000 A$'000 A$'000 A$'000

2014

Assets

Cash and cash equivalents 30,025 1,038 2,365 46 2,433 773 36,680

Receivables 10,533 76 - - 243 - 10,852

Listed equities 41,330 - - - 22,607 - 63,937

Listed unit trusts - - 7,734 - 1,542 - 9,276


Swaps - 5,033 - - - - 5,033

Futures 227 261 1,382 459 - 650 2,979


Total assets 757,222 6,588 11,672 505 26,825 1,825 804,637

Liabilities


Payables 374 - - - - - 374

Futures 47 553 451 870 - - 1,921

Forward foreign exchange contracts - - 141 - 27 657 825


Net assets attributable to unitholders 737,176 6,035 11,080 (365) 26,798 1,168 781,892


66




Australian


Yen British Pounds


A$'000 A$'000 A$'000 A$'000 A$'000 A$'000 A$'000

2013

Assets

Cash and cash equivalents 30,790 294 - - 1,236 2,912 35,232

Receivables 7,387 - - - - - 7,387

Listed equities - 102 - - 24,449 - 24,551

Listed unit trusts 54,944 - - - 18,754 - 73,698


Futures - 264 1,310 511 - - 2,085

Forward foreign exchange contracts - 349 414 - - 503 1,266

Total assets 674,384 1,009 1,724 511 44,439 3,415 725,482

Liabilities


Payables 1,995 - - - - - 1,995

Futures 944 - - 27 1,990 - 2,961


Total liabilities (excluding net assets attributable to unitholders) 25,717 - - 27 2,215 661 28,620

Net assets attributable to unitholders 648,667 1,009 1,724 484 42,224 2,754 696,862


67




Australian


Yen British Pounds


A$'000 A$'000 A$'000 A$'000 A$'000 A$'000 A$'000

2014

Assets

Cash and cash equivalents 36 109 - - - 267 412

Receivables 5 1 - - - 88 94

Listed equities - 5,733 - - - 16,969 22,702

Total assets 41 5,843 - - - 17,324 23,208

Liabilities


Payables 26 - - - - - 26


Net assets attributable to unitholders (52) 5,843 - - - 17,324 23,115


Australian


Yen British Pounds


A$'000 A$'000 A$'000 A$'000 A$'000 A$'000 A$'000

2013

Assets

Cash and cash equivalents 30 522 - - - 71 623

Receivables 9 3 - - - 19 31

Listed equities - 5,282 - - - 15,527 20,809

Total assets 39 5,807 - - - 15,617 21,463

Liabilities


Payables 24 - - - - - 24


Net assets attributable to unitholders (140) 5,807 - - - 15,617 21,284

UBS Emerging Markets Equity Fund other currencies of $17,324 ('000) comprised of currencies such as Korean Won, Hong Kong Dollar, Taiwanese Dollar, South African Rand and Mexican Peso.


There was no significant direct foreign exchange risk for UBS-HALO Australian Share Fund as at 30 June 2014 (2013: Nil).


68




Australian


Yen British Pounds


A$'000 A$'000 A$'000 A$'000 A$'000 A$'000 A$'000

2014

Assets


Receivables 1,051 370 42 53 39 53 1,608

Listed equities 708 5,707 4,850 2,676 1,278 7,948 23,167


Forward foreign exchange contracts - 1,673 229 144 - 205 2,251

Total assets 17,792 107,534 20,429 14,152 13,319 14,062 187,288

Liabilities


Payables 477 - - - - - 477





Australian


Yen British Pounds


A$'000 A$'000 A$'000 A$'000 A$'000 A$'000 A$'000

2013

Assets


Receivables 637 191 438 41 33 714 2,054

Listed equities 370 1,459 1,241 3,105 - 5,735 11,910


Forward foreign exchange contracts - 299 29 22 - 87 437

Total assets 15,768 68,844 9,209 9,532 6,949 12,933 123,235

Liabilities


Payables 338 1,730 1,054 - 206 166 3,494

Forward foreign exchange contracts - 3,197 438 567 301 710 5,213

Total liabilities (excluding net assets attributable to unitholders) 413 4,927 1,492 567 507 876 8,782



69




Australian


Yen British Pounds


A$'000 A$'000 A$'000 A$'000 A$'000 A$'000 A$'000

2014

Assets


Receivables 1,288 99 - - - - 1,387

Listed equities - 2,893 - - - - 2,893

Listed unit trusts 4,922 3,062 - - 402 - 8,386



Swaps - 654 - - - - 654

Futures 75 14 68 26 - 44 227


Total assets 43,698 7,956 190 28 410 99 52,381

Liabilities


Payables 169 - - - - - 169

Futures - 15 23 39 - - 77



Net assets attributable to unitholders 41,527 7,941 167 (11) 409 41 50,074


70




Australian Dollars A$'000

US DollarA$'000

Euro A$'000

JapaneseYen

A$'000

British Pounds A$'000

Other Currencies

A$'000 Total

A$'000

2013

Assets

Cash and cash equivalents 5,610 57 - - - 88 5,755

Receivables 792 37 - - - - 829

Listed equities - 1,850 - - - - 1,850



Swaps - 141 - - - - 141

Futures 15 16 42 19 - 1 93


Total assets 21,990 4,331 42 19 425 99 26,906

Liabilities


Payables 8 - - - - - 8

Futures 57 - - - 66 - 123


Total liabilities (excluding net assets attributable to unitholders) 1,165 19 4 - 67 25 1,280

Net assets attributable to unitholders 20,825 4,312 38 19 358 74 25,626


71




Australian


Yen British Pounds


A$'000 A$'000 A$'000 A$'000 A$'000 A$'000 A$'000

2014

Assets

Cash and cash equivalents 9,713 61 84 - 1 50 9,909

Receivables 357 116 - - - - 473

Listed equities - 4,012 - - - - 4,012




Swaps - 301 - - - - 301

Futures 25 7 40 17 - 27 116


Total assets 18,124 9,624 125 17 699 85 28,674

Liabilities


Payables 16 - - - - - 16

Futures - 1 14 19 - - 34

Forward foreign exchange contracts - 3 - - 3 34 40




72




Australian


Yen British Pounds


A$'000 A$'000 A$'000 A$'000 A$'000 A$'000 A$'000

2013

Assets

Cash and cash equivalents 3,387 6 - - 1 27 3,421

Receivables 299 39 - - - - 338

Listed equities - 1,843 - - - - 1,843



Futures 33 4 15 8 - 1 61

Forward foreign exchange contracts - 5 - 4 - 4 13

Total assets 7,362 3,991 15 12 325 32 11,737

Liabilities


Payables 3 - - - - - 3


Futures 18 - - - 21 - 39

Total liabilities (excluding net assets attributable to unitholders) 332 62 4 - 23 17 438



73




30 June 2014 Australian


Yen British Pounds


A$'000 A$'000 A$'000 A$'000 A$'000 A$'000 A$'000

2014

Assets


Receivables 2,483 349 - - - - 2,832

Listed equities - 12,288 - - - - 12,288




Swaps - 1,227 - - - - 1,227

Futures 121 32 145 56 - 111 465


Total assets 88,411 30,867 443 73 972 278 121,044

Liabilities

Payables 43 - - - - - 43


Futures - 37 50 99 - - 186

Forward foreign exchange contracts - 11 - - 10 133 154




74




Australian


Yen British Pounds


A$'000 A$'000 A$'000 A$'000 A$'000 A$'000 A$'000

2013

Assets

Cash and cash equivalents 8,949 (313) 57 - 33 244 8,970

Receivables 1,964 12 - - - - 1,976

Listed equities - 8,006 - - - - 8,006



Swaps - 317 - - - - 317

Futures 42 36 131 45 - 4 258

Forward foreign exchange contracts - 42 - 12 - 25 79

Total assets 47,799 18,638 188 57 889 273 67,844

Liabilities


Payables 21 - - - - - 21

Foward foreign exchange contracts - 226 26 - 10 77 339

Futures 105 - - - 154 - 259

Total liabilities (excluding net assets attributable to unitholders) 2,730 226 26 - 164 77 3,223



At 30 June 2014, had the Australian dollar weakened/strengthened as illustrated below against the various currencies to which the Scheme is exposed, with all other variables held constant, the net assets attributable to unitholders (and profit/(loss) before finance costs attributable to unitholders) would have changed by the following amounts, approximately and respectively:

AUD Weakened AUD Strengthened

Increase/(decrease) in net assets attributable to unitholders (and

profit/(loss) before finance costs attributable to unitholders 30 June 2014 30 June 2013 30 June 2014 30 June 2013 $'000 $'000 $'000 $'000

AUD/HKD 2014 10% (2013: 10%) 375 433 (307) (354)

AUD/SGD 2014 10% (2013: 10%) 126 300 (103) (245)

The possible impact against other currencies not disclosed above is considered immaterial individually and therefore has not been included in the above table. The analysis is performed on the same basis for both 2014 and 2013 financial years.


75








AUD/USD 2014 10% (2013: 10%) 16,391 10,953 (13,411) (8,961)

AUD/EUR 2014 10% (2013: 10%) 3,762 2,242 (3,078) (1,834)

AUD/JPY 2014 10% (2013: 10%) 2,699 1,767 (2,209) (1,446)

AUD/GBP 2014 10% (2013: 10%) 2,481 1,369 (2,030) (1,120)

AUD/CHF 2014 10% (2013: 10%) 263 719 (215) (589)

AUD/SEK 2014 10% (2013: 10%) 351 275 (287) (225)

AUD/HKD 2014 10% (2013: 10%) 140 (10) (115) 8

AUD/SGD 2014 10% (2013: 10%) 709 515 (580) (421)

AUD/NOK 2014 10% (2013: 10%) 199 80 (163) (66)

AUD/CAD 2014 10% (2013: 10%) 935 230 (765) (188)

AUD/DKK 2014 10% (2013: 10%) 166 48 (135) (40)

AUD/ILS 2014 10% (2013: 10%) (188) 87 154 (71)







AUD/USD 2014 10% (2013: 10%) 53 85 (43) (69)

AUD/EUR 2014 10% (2013: 10%) 3 6 (3) (5)

AUD/JPY 2014 10% (2013: 10%) 13 32 (10) (26)

AUD/GBP 2014 10% (2013: 10%) (10) 1 8 (1)

AUD/CAD 2014 10% (2013: 10%) (2) (8) 1 6

AUD/HKD 2014 10% (2013: 10%) (71) (105) 58 86

AUD/SEK 2014 10% (2013: 10%) - (3) - 3

AUD/SGD 2014 10% (2013: 10%) 6 1 (5) (1)



76








AUD/USD 2014 10% (2013: 10%) 4,119 3,322 (3,370) (2,718)

AUD/EUR 2014 10% (2013: 10%) 855 854 (699) (699)

AUD/JPY 2014 10% (2013: 10%) 822 560 (673) (458)

AUD/GBP 2014 10% (2013: 10%) 433 368 (354) (301)

AUD/CAD 2014 10% (2013: 10%) 259 139 (212) (113)

AUD/CHF 2014 10% (2013: 10%) 54 188 (44) (153)

AUD/DKK 2014 10% (2013: 10%) 17 86 (14) (70)

AUD/HKD 2014 10% (2013: 10%) 93 65 (76) (53)

AUD/NOK 2014 10% (2013: 10%) 109 46 (89) (38)

AUD/SEK 2014 10% (2013: 10%) 104 69 (85) (57)

AUD/SGD 2014 10% (2013: 10%) 67 106 (55) (87)

AUD/ILS 2014 10% (2013: 10%) 25 - (20) -

AUD/NZD 2014 10% (2013: 10%) 1 - (1) -



77








AUD/USD 2014 10% (2013: 10%) (153) (207) 125 169

AUD/EUR 2014 10% (2013: 10%) 774 514 (634) (421)

AUD/JPY 2014 10% (2013: 10%) (8) 8 6 (6)

AUD/GBP 2014 10% (2013: 10%) 220 94 (180) (77)

AUD/CAD 2014 10% (2013: 10%) (106) (148) 87 121

AUD/CNY 2014 10% (2013: 10%) - 335 - (274)

AUD/MXN 2014 10% (2013: 10%) 192 197 (157) (161)

AUD/CHF 2014 10% (2013: 10%) (736) - 602 -

AUD/KRW 2014 10% (2013: 10%) - 165 - (135)

AUD/MYR 2014 10% (2013: 10%) - 225 - (184)

AUD/HKD 2014 10% (2013: 10%) (8) 60 6 (49)

AUD/NOK 2014 10% (2013: 10%) - (308) - 252

AUD/CZK 2014 10% (2013: 10%) - (165) - 135

AUD/NZD 2014 10% (2013: 10%) (157) - 128 -

AUD/PHP 2014 10% (2013: 10%) 283 - (232) -



78








AUD/USD 2014 10% (2013: 10%) (1,997) (3,032) 1,634 2,481

AUD/EUR 2014 10% (2013: 10%) 4,267 2,843 (3,491) (2,326)

AUD/JPY 2014 10% (2013: 10%) (40) 54 33 (44)

AUD/GBP 2014 10% (2013: 10%) 1,192 2,073 (975) (1,696)

AUD/NOK 2014 10% (2013: 10%) - (1,678) - 1,373

AUD/CAD 2014 10% (2013: 10%) (516) (749) 422 613

AUD/CNY 2014 10% (2013: 10%) - 1,747 - (1,430)

AUD/MXN 2014 10% (2013: 10%) 753 772 (616) (632)

AUD/CZK 2014 10% (2013: 10%) - (904) - 740

AUD/PHP 2013 10% (2012: 20%) 1,533 - (1,254) -

AUD/KRW 2014 10% (2013: 10%) - 836 - (684)

AUD/MYR 2014 10% (2013: 10%) - 1,147 - (938)

AUD/HKD 2014 10% (2013: 10%) (45) 323 37 (265)

AUD/NZD 2014 10% (2013: 10%) (862) - 705 -

AUD/CHF 2014 10% (2013: 10%) (4,273) - 3,496 -



79








AUD/USD 2014 10% (2013: 10%) 649 645 (531) (528)

AUD/HKD 2014 10% (2013: 10%) 321 272 (263) (223)

AUD/IDR 2014 10% (2013: 10%) 105 210 (86) (172)

AUD/KRW 2014 10% (2013: 10%) 379 203 (310) (166)

AUD/MXN 2014 10% (2013: 10%) 164 98 (134) (80)

AUD/TWD 2014 10% (2013: 10%) 308 160 (252) (131)

AUD/ZAR 2014 10% (2013: 10%) 191 77 (157) (63)

AUD/BRL 2014 10% (2013: 10%) 97 72 (80) (59)

AUD/MYR 2014 10% (2013: 10%) 83 137 (68) (112)

AUD/TRY 2014 10% (2013: 10%) 94 108 (77) (88)

AUD/THB 2014 10% (2013: 10%) 33 211 (27) (173)

AUD/PHP 2014 10% (2013: 10%) 148 185 (121) (152)

AUD/RUB 2014 10% (2013: 10%) 1 1 (1) -







AUD/USD 2014 10% (2013: 10%) 203 97 (166) (80)

AUD/EUR 2014 10% (2013: 10%) (50) (23) 41 19

AUD/JPY 2014 10% (2013: 10%) 82 38 (67) (31)

AUD/GBP 2014 10% (2013: 10%) 70 (10) (58) 8

AUD/CAD 2014 10% (2013: 10%) - (4) - 3

AUD/HKD 2014 10% (2013: 10%) (206) (152) 169 125

AUD/SEK 2014 10% (2013: 10%) 59 10 (48) (8)

AUD/SGD 2014 10% (2013: 10%) 42 9 (34) (7)

The possible impact against other currencies is considered immaterial individually and therefore has not been included in the above table. The analysis is performed on the same basis for both 2014 and 2013 financial years.


80








AUD/USD 2014 10% (2013: 10%) 719 410 (589) (336)

AUD/PHP 2014 10% (2013: 10%) 94 29 (77) (24)

AUD/PLN 2014 10% (2013: 10%) - 29 - (23)

AUD/MXN 2014 10% (2013: 10%) 41 19 (34) (16)

AUD/GBP 2014 10% (2013: 10%) 32 - (27) -

AUD/JPY 2014 10% (2013: 10%) 17 2 (14) (2)

AUD/HKD 2014 10% (2013: 10%) (16) (3) 13 3

AUD/SEK 2014 10% (2013: 10%) (13) (8) 11 6

AUD/CNY 2014 10% (2013: 10%) (10) (11) 8 9

AUD/CHF 2014 10% (2013: 10%) (189) (14) 154 12

AUD/EUR 2014 10% (2013: 10%) (72) (67) 59 55

AUD/CAD 2014 10% (2013: 10%) (22) (71) 18 58

AUD/NZD 2014 10% (2013: 10%) (271) (113) 221 93



81








AUD/USD 2014 10% (2013: 10%) 666 280 (545) (229)

AUD/EUR 2014 10% (2013: 10%) (101) (61) 83 50

AUD/JPY 2014 10% (2013: 10%) (42) (24) 34 19

AUD/GBP 2014 10% (2013: 10%) 19 (7) (16) 6

AUD/SGD 2014 10% (2013: 10%) (9) (3) 7 3

AUD/SEK 2014 10% (2013: 10%) (14) (3) 11 2

AUD/HKD 2014 10% (2013: 10%) (25) (10) 21 8

AUD/CAD 2014 10% (2013: 10%) (28) (31) 23 25

AUD/MXN 2014 10% (2013: 10%) 21 8 (17) (6)

AUD/PHP 2014 10% (2013: 10%) 52 6 (42) (5)

AUD/PLN 2014 10% (2013: 10%) - 6 - (5)

AUD/ZAR 2014 10% (2013: 10%) (7) (5) 6 4

AUD/TWD 2014 10% (2013: 10%) (7) (7) 5 6

AUD/INR 2014 10% (2013: 10%) (7) (7) 6 6

AUD/BRL 2014 10% (2013: 10%) (7) (8) 6 6

AUD/CNY 2014 10% (2013: 10%) (9) (9) 7 7

AUD/KRW 2014 10% (2013: 10%) (14) (11) 11 9

AUD/CHF 2014 10% (2013: 10%) (125) (16) 103 13

AUD/NZD 2014 10% (2013: 10%) (147) (51) 121 42

AUD/NOK 2014 10% (2013: 10%) (7) - 6 -



82








AUD/USD 2014 10% (2013: 10%) 2,342 1,534 (1,916) (1,255)

AUD/PHP 2014 10% (2013: 10%) 206 66 (168) (54)

AUD/PLN 2014 10% (2013: 10%) - 64 - (52)

AUD/MXN 2014 10% (2013: 10%) 94 53 (77) (43)

AUD/SEK 2014 10% (2013: 10%) (51) (21) 42 17

AUD/SGD 2014 10% (2013: 10%) (23) (23) 19 19

AUD/HKD 2014 10% (2013: 10%) (61) (29) 50 24

AUD/BRL 2014 10% (2013: 10%) (29) (30) 24 25

AUD/CNY 2014 10% (2013: 10%) (41) (42) 34 35

AUD/CHF 2014 10% (2013: 10%) (494) (46) 404 37

AUD/KRW 2014 10% (2013: 10%) (35) (48) 29 39

AUD/JPY 2014 10% (2013: 10%) (113) (79) 92 65

AUD/GBP 2014 10% (2013: 10%) (77) (92) 63 76

AUD/CAD 2014 10% (2013: 10%) (79) (176) 65 144

AUD/NZD 2014 10% (2013: 10%) (599) (265) 490 217

AUD/NOK 2014 10% (2013: 10%) (26) - 21 -

AUD/EUR 2014 10% (2013: 10%) (285) (288) 233 235


(c) Concentration risk

Concentration of risk arises when a number of financial instruments are entered into with the same counterparty, or where a number of counterparties are engaged in similar business activities, or activities in the same geographical region, or have similar economic conditions. These similarities would cause the counterparties' liabilities to meet the contractual obligations to be similarly affected by certain changes in the risk variables.

The concentration of risk is monitored by the Investment Manager to ensure it is within acceptable limits by reducing the exposures or by other means as deemed appropriate.

Concentration of risk is managed by industry sector for equity instruments and by counterparty for debt instruments and selected derivatives. Where related parties exist, the Schemes will be disclosed individually.


83


(c) Concentration risk (continued)

Based on the concentration of risk that is managed by industry sector and/or counterparty the following investments can be analysed by the industry sector and/or counterparty as at 30 June 2014 and 30 June 2013:

UBS Property Securities Fund %

As at 30 June 2014

Diversified Real Estate Investment Trusts 36.57

Retail Real Estate Investment Trust 29.41

Utilities 21.50

Industrial Real Estate Investment Trust 9.62

Others - aggregated concentration made up of other securities less than 5% 2.90

Total 100.00

UBS Property Securities Fund %

As at 30 June 2013

Retail Real Estate Investment Trust 51.60




Total 100.00

UBS Australian Share Fund %

As at 30 June 2014

Financials 43.49

Energy 12.99

Utilities 9.30

Materials 9.14

Managed Investment Scheme - UBS Australian Small Companies Fund 6.76

Industrials 5.88

Consumer Staples 5.39


Total 100.00

UBS Australian Share Fund %

As at 30 June 2013

Financials 47.64

Materials 10.38

Industrials 10.34

Energy 10.05


Managed Investment Scheme - UBS Australian Small Companies Fund 5.75


Total 100.00


84



UBS International Share Fund %

As at 30 June 2014

Financials 22.95

Health care 13.64


Consumer Discretionary 11.14

Industrials 10.73

Information Technology 9.42

Energy 8.67

Materials 5.85


Total 100.00

UBS International Share Fund %

As at 30 June 2013

Financials 21.71

Industrials 14.79



Health care 11.63


Energy 8.26


Total 100.00

UBS Australian Small Companies Fund %

As at 30 June 2014


Financials 20.04

Materials 14.49

Health care 11.85

Industrials 6.74



Total 100.00

UBS Australian Small Companies Fund %

As at 30 June 2013


Materials 15.20

Financials 15.17

Health care 12.25

Telecommunication Services 6.00



Total 100.00


85



UBS Global Property Securities Fund %

As at 30 June 2014

Retail Real Estate Investment Trusts 28.12

Specialised Real Estate Investment Trusts 12.09

Diversified Real Estate Activities 11.75

Residential Real Estate Investment Trusts 11.48

Office Real Estate Investment Trusts 11.36


Industrial Real Estate Investment Trusts 5.92


Total 100.00

UBS Global Property Securities Fund %

As at 30 June 2013


Diversified Real Estate Activities 17.15





Real Estate Operating Companies 7.23


Total 100.00

UBS Global Quantitative Share Fund %

As at 30 June 2014

Financials 16.59


Health care 12.75

Energy 10.98


Industrials 8.77


Materials 8.14

Utilities 5.47


Total 100.00


86



UBS Global Quantitative Share Fund %

As at 30 June 2013

Financials 19.51



Energy 10.70


Health care 9.90

Industrials 9.46

Materials 6.77

Utilities 5.43


Total 100.00

UBS Defensive Investment Fund %

As at 30 June 2014

Managed Investment Scheme - UBS Australian Bond Fund 24.04

Non-Global Industry Classification Standard Sector 18.92

Managed Investment Scheme - UBS Australian Share Fund 11.34

Managed Investment Scheme - SSGA Global Fixed Income Index Trust 10.03

Managed Investment Scheme - UBS International Share Fund 8.90

Managed Investment Scheme - UBS Property Securities Fund 6.32

Managed Investment Scheme - UBS Diversified Credit Fund 6.24

Managed Investment Scheme - UBS Dynamic Alpha Strategy Fund A (AUD) 5.31


Total 100.00

UBS Defensive Investment Fund %

As at 30 June 2013


Managed Investment Scheme - UBS Global Credit Fund 20.64



Managed Investment Scheme - UBS Property Securities Fund 6.26


Managed Investment Scheme - UBS Dynamic Alpha Strategy Fund A (AUD) 5.32


Total 100.00


87



UBS Balanced Investment Fund %

As at 30 June 2014




Managed Investment Scheme - UBS Global Quantitative Share Fund 7.64

Managed Investment Scheme - UBS Cash Fund 7.42

Managed Investment Scheme - UBS Global Property Securities Fund 5.58

Managed Investment Scheme - UBS Alpha Dynamic Strategy Fund A (AUD) 5.53



Total 100.00

UBS Balanced Investment Fund %

As at 30 June 2013



Financials 12.84


Managed Investment Scheme - UBS Global Opportunities Share Fund 7.80

Managed Investment Scheme - UBS Global Credit Fund 7.58

Managed Investment Scheme - UBS Global Quantitative Share Fund 7.13

Managed Investment Scheme - UBS Alpha Dynamic Strategy Fund A (AUD) 5.66


Total 100.00

UBS Emerging Markets Equity Fund (AUD) %

As at 30 June 2014


Financials 21.17


Industrials 12.46

Health Care 6.50



Total 100.00


88



UBS Emerging Markets Equity Fund (AUD) %

As at 30 June 2013

Financials 23.99



Industrials 10.36


Materials 7.02

Telecommunication Services 6.54


Total 100.00

UBS-HALO Australian Share Fund %

As at 30 June 2014

Financials 44.67

Energy 20.45

Utilities 11.56

Industrials 7.50

Materials 6.06



Total 100.00

UBS-HALO Australian Share Fund %

As at 30 June 2013

Financials 50.85

Industrials 14.43

Energy 12.39

Materials 9.14

Utilities 5.02


Total 100.00


89



UBS Clarion Global Property Securities Fund %

As at 30 June 2014



Real Estate Other 13.66







Total 100.00

UBS Clarion Global Property Securities Fund %

As at 30 June 2013









Total 100.00

UBS Tactical Beta Fund - Conservative %

As at 30 June 2014


Managed Investment Scheme - SSgA Global Broad Investment Grade Fixed Income Trust 28.70

Managed Investment Scheme - SSgA Global Fixed Income Index Trust 16.11

Managed Investment Scheme - SSgA Australian Fixed Income Index Trust 14.96

Financials 8.86


Total 100.00

UBS Tactical Beta Fund - Conservative %

As at 30 June 2013

Non - Global Industry Classification Standard Sector 27.03


Managed Investment Scheme - SSgA Australian Fixed income Index Trust 20.17

Managed Investment Scheme - SSgA Global Broad Investment Grade Fixed Inome Trust 18.72

Financials 9.18


Total 100.00


90



UBS Tactical Beta Fund - Growth %

As at 30 June 2014


Financials 22.02



Total 100.00

UBS Tactical Beta Fund - Growth %

As at 30 June 2013


Financials 22.83



Total 100.00

UBS Tactical Beta Fund - Balanced %

As at 30 June 2014


Financials 15.11





Total 100.00

UBS Tactical Beta Fund - Balanced %

As at 30 June 2013



Financials 14.22




Total 100.00

(d) Liquidity risk

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. This risk is controlled through the Schemes' investment in financial instruments, which under normal market conditions are readily convertible to cash. In addition, the Schemes maintain sufficient cash and cash equivalents to meet normal operating requirements.

Investors can submit redemption requests for the Schemes at any time which results in some liquidity risk. However, while the time allowed for the satisfaction of redemption requests varies from Scheme to Scheme, the Responsible Entity has the power to suspend redemptions in certain circumstances, including if the relevant Scheme is not liquid (as set out in section 601KA of the Corporations Act 2011).


91


(d) Liquidity risk (continued)

The Schemes may, from time to time, invest in indirect physical securities and derivative contracts traded over the counter, which may be illiquid. As a result, the Schemes may not be able to liquidate quickly its investments in these instruments at an amount close to their fair value to meet its liquidity requirements or to respond to specific events such as a deterioration in the creditworthiness of any particular issuer.

In accordance with the Schemes' policy, the Investment Manager monitors the Schemes' liquidity position on a daily basis.

The table below analyses the Schemes' financial liabilities including derivative financial liabilities that are settled on a net basis into relevant maturity groupings based on the remaining period at the end of the financial year to the contractual maturity date. The amounts in the table are the contractual undiscounted cash flows.

To determine each Scheme's liquidity risk position as at 30 June 2014, the net basis table below should be read in conjunction with the gross basis table on page 97 to page 101.


Less than 3 months $'000

3-12 months

$'000

12-60 months

$'000

Over 60 months

$'000

As at 30 June 2014

Distributions payable 5,258 - - -

Payables 489 - - -

Net assets attributable to unitholders 197,009 - - -

Total financial liabilities 202,756 - - -

As at 30 June 2013


Payables 530 - - -





3-12 months

$'000

12-60 months

$'000

Over 60 months

$'000

As at 30 June 2014


Payables 2,563 - - -

Net assets attributable to unitholders 1,112,519 - - -

Total financial liabilities 1,123,356 - - -

As at 30 June 2013



Net asset attributable to unitholders 1,076,067 - - -

Total financial liabilities 1,086,874 - - -


92





3-12 months

$'000

12-60 months

$'000

Over 60 months

$'000

As at 30 June 2014


Payables 394 - - -

Financial liabilities held for trading 409 - - -



As at 30 June 2013

Distributions payable 153 - - -

Payables 778 - - -






3-12 months

$'000

12-60 months

$'000

Over 60 months

$'000

As at 30 June 2014




As at 30 June 2013


Payables 251 - - -





3-12 months

$'000

12-60 months

$'000

Over 60 months

$'000

As at 30 June 2014


Payables 44 - - -





93





3-12 months

$'000

12-60 months

$'000

Over 60 months

$'000

As at 30 June 2013

Payables 257 - - -

Financial liabilities held for trading 2,025 - - -





3-12 months

$'000

12-60 months

$'000

Over 60 months

$'000

As at 30 June 2014


Payables 54 - - -



As at 30 June 2013


Payables 44 - - -





3-12 months

$'000

12-60 months

$'000

Over 60 months

$'000

As at 30 June 2014


Payables 378 - - -




As at 30 June 2013


Payables 244 - - -





94





3-12 months

$'000

12-60 months

$'000

Over 60 months

$'000

As at 30 June 2014


Payables 374 - - -




As at 30 June 2013








3-12 months

$'000

12-60 months

$'000

Over 60 months

$'000

As at 30 June 2014


Payables 26 - - -



As at 30 June 2013


Payables 24 - - -





3-12 months

$'000

12-60 months

$'000

Over 60 months

$'000

As at 30 June 2014


Payables 21 - - -




95





3-12 months

$'000

12-60 months

$'000

Over 60 months

$'000

As at 30 June 2013


Payables 4 - - -





3-12 months

$'000

12-60 months

$'000

Over 60 months

$'000

As at 30 June 2014

Distribution payable 1,626 - - -

Payables 477 - - -




As at 30 June 2013

Distribution payable 75 - - -


Financial liabilities held for trading 5,213 - - -





3-12 months

$'000

12-60 months

$'000

Over 60 months

$'000

As at 30 June 2014


Payables 169 - - -




As at 30 June 2013


Payables 8 - - -


Net asset attributable to unitholders 25,626 - - -



96





3-12 months

$'000

12-60 months

$'000

Over 60 months

$'000

As at 30 June 2014


Payables 16 - - -




As at 30 June 2013

Distribution payable 311 - - -

Payables 3 - - -






3-12 months

$'000

12-60 months

$'000

Over 60 months

$'000

As at 30 June 2014


Payables 43 - - -




As at 30 June 2013


Payables 21 - - -





97



The table below analyses the Schemes' derivative financial instruments that are settled on a gross basis into relevant maturity groupings based on the remaining period at the end of the financial year to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.



3-12 months

$'000

12-60 months

$'000

Over 60 months

$'000

At 30 June 2014

Nil - - - -

At 30 June 2013

Nil - - - -



3-12 months

$'000

12-60 months

$'000

Over 60 months

$'000

As at 30 June 2014

Nil - - - -

As at 30 June 2013

Futures

- Outflows - - - -

- Inflows 241 - - -



3-12 months

$'000

12-60 months

$'000

Over 60 months

$'000

At 30 June 2014

Nil - - - -

At 30 June 2013

Nil - - - -


98





3-12 months

$'000

12-60 months

$'000

Over 60 months

$'000

As at 30 June 2014

Futures

- Outflows - - - -

- Inflows 7 - - -

As at 30 June 2013

Futures

- Outflows - - - -

- Inflows 65 - - -



3-12 months

$'000

12-60 months

$'000

Over 60 months

$'000

At 30 June 2014

Nil - - - -

At 30 June 2013

Nil - - - -



3-12 months

$'000

12-60 months

$'000

Over 60 months

$'000

At 30 June 2014

Nil - - - -


3-12 months

$'000

12-60 months

$'000

Over 60 months

$'000

At 30 June 2013

Nil - - - -


99





3-12 months

$'000

12-60 months

$'000

Over 60 months

$'000

As at 30 June 2014

Futures

- Outflows (108) - (144) -

- Inflows 523 3 - -

As at 30 June 2013

Futures

- Outflows (220) (397) - -

- Inflows 284 134 - -

Options

- Outflows (116) - - -

- Inflows - - - - UBS Balanced Investment Fund


3-12 months

$'000

12-60 months

$'000

Over 60 months

$'000

As at 30 June 2014

Futures

- Outflows (1,181) - (740) -

- Inflows 2,979 - - -

As at 30 June 2013

Futures

- Outflows (971) (1,990) - -

- Inflows 2,085 - - -



3-12 months

$'000

12-60 months

$'000

Over 60 months

$'000

As at 30 June 2014

Nil - - - -

As at 30 June 2013

Nil - - - -


100





3-12 months

$'000

12-60 months

$'000

Over 60 months

$'000

As at 30 June 2014

Futures

- Outflows - - - -

- Inflows 1 - - -

As at 30 June 2013

Futures

- Outflows - - - -

- Inflows 2 - - - UBS Clarion Global Property Securities Fund


3-12 months

$'000

12-60 months

$'000

Over 60 months

$'000

As at 30 June 2013

Nil - - - -

As at 30 June 2013

Nil - - - -



3-12 months

$'000

12-60 months

$'000

Over 60 months

$'000

As at 30 June 2014

Futures

- Outflows (50) - (27) -

- Inflows 226 1 - -

At 30 June 2013

Futures

- Outflows (57) (66) - -

- Inflows 93 - - -


101





3-12 months

$'000

12-60 months

$'000

Over 60 months

$'000

As at 30 June 2014

Futures

- Outflows (21) - (13) -

- Inflows 116 - - -

At 30 June 2013

Futures

- Outflows (18) (21) - -

- Inflows 61 - - -



3-12 months

$'000

12-60 months

$'000

Over 60 months

$'000

As at 30 June 2014

Futures

- Outflows (118) - (68) -

- Inflows 463 2 - -

At 30 June 2013

Futures

- Outflows (105) (154) - -

- Inflows 258 - - -

(e) Estimation of fair values of financial assets and financial liabilities

The carrying amounts of all the Schemes' financial assets and financial liabilities at the end of the financial year approximated their fair values.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The Schemes' accounting policy on fair value measurement is set out in Note 2. The methods and assumptions used in the determination of the fair value of each class of financial instruments are also set out in Note 2.

Note 2(q) outlines further the nature of management's judgements, estimates and assumptions that might have been used in the determination of the fair values of each class of these financial instruments.


102


(f) Fair value hierarchy

The Schemes are required to classify fair value measurements using a fair value hierarchy that reflects the subjectivity of the inputs used in making the measurements. The fair value hierarchy has the following levels:

• Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.

• Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices); quoted prices for similar securities in active and/or inactive markets; market-corroborated inputs; inputs that are developed based on available market data and reflect assumptions that markets would use when pricing similar securities.

• Level 3: Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs).

The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety is determined on the basis of the lowest level input that is significant to the fair value measurement in its entirety. For this purpose, the significance of an input is assessed against the fair value measurement in its entirety. If a fair value measurement uses observable inputs that require significant adjustment based on unobservable inputs, that measurement is a level 3 measurement. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgement, considering factors specific to the asset or liability.

The determination of what constitutes ''observable'' requires significant judgement by the Schemes. The Schemes consider observable data to be that market data that is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market.

All fair value measurements disclosed are recurring fair value measurements.


103


(f) Fair value hierarchy (continued)

The table below sets out the Schemes' financial assets and financial liabilities (by class) measured at fair value according to the fair value hierarchy at the reporting date.

UBS Property Securities Fund - as at 30 June 2014 Level 1 Level 2 Level 3 Total $'000 $'000 $'000 $'000

Financial assets held at fair value through profit or loss

(ii) Financial assets designated at fair value through profit or loss:

Listed equities 4,002 - - 4,002

Listed property trusts 185,243 - - 185,243

Total 189,245 - - 189,245

UBS Property Securities Fund - as at 30 June 2013

Level 1 Level 2 Level 3 Total

$'000 $'000 $'000 $'000




Listed unit trusts 280 - - 280


Total 204,979 - - 204,979

UBS Australian Share Fund - as at 30 June 2014 Level 1 Level 2 Level 3 Total $'000 $'000 $'000 $'000




Listed unit trusts 55,829 - - 55,829

Unlisted managed investment schemes - 74,498 - 74,498

Total 1,027,611 74,498 - 1,102,109


104



UBS Australian Share Fund - as at 30 June 2013


$'000 $'000 $'000 $'000


(i) Financial assets held for trading:

Futures 241 - - 241






Total 982,833 60,008 - 1,042,841

UBS International Share Fund - as at 30 June 2014 Level 1 Level 2 Level 3 Total $'000 $'000 $'000 $'000



Forward foreign exchange contracts - 103 - 103



Total 248,756 103 - 248,859

Financial liabilities held at fair value through profit or loss

(i) Financial liabilities held for trading:


Total - 409 - 409


105



UBS International Share Fund - as at 30 June 2013


$'000 $'000 $'000 $'000






Listed unit trusts 52 - - 52

Total 161,760 238 - 161,998




Total - 188 - 188

UBS Australian Small Companies Fund - as at 30 June 2014 Level 1 Level 2 Level 3 Total

$'000 $'000 $'000 $'000



Futures 7 - - 7




Unlisted equities - 320 - 320

Total 88,117 320 - 88,437


106



UBS Australian Small Companies Fund - as at 30 June 2013


$'000 $'000 $'000 $'000



Futures 65 - - 65




Total 70,990 - - 70,990

UBS Global Property Securities Fund - as at 30 June 2014 Level 1 Level 2 Level 3 Total $'000 $'000 $'000 $'000







Total 49,508 596 - 50,104




Total - 41 - 41


107



UBS Global Property Securities Fund - as at 30 June 2013


$'000 $'000 $'000 $'000







Total 43,248 161 - 43,409



Forward foreign exchange contracts - 2,025 - 2,025

Total - 2,025 - 2,025

UBS Global Quantitative Share Fund - as at 30 June 2014 Level 1 Level 2 Level 3 Total $'000 $'000 $'000 $'000





Total 62,142 - - 62,142

UBS Global Quantitative Share Fund - as at 30 June 2013


$'000 $'000 $'000 $'000




Listed property trusts 467 - - 467

Preference shares - redeemable 592 - - 592

Total 51,816 - - 51,816


108



UBS Defensive Investment Fund - as at 30 June 2014 Level 1 Level 2 Level 3 Total $'000 $'000 $'000 $'000



Futures 526 - - 526

Swaps - 782 - 782






Total 26,605 106,110 - 132,715



Futures 252 - - 252


Total 252 147 - 399

UBS Defensive Investment Fund - as at 30 June 2013


$'000 $'000 $'000 $'000



Futures 418 - - 418





Total 22,603 99,830 - 122,433



Futures 617 - - 617

Options 116 - - 116


Total 733 185 - 918


109



UBS Balanced Investment Fund - as at 30 June 2014 Level 1 Level 2 Level 3 Total $'000 $'000 $'000 $'000



Swaps - 5,033 - 5,033

Futures 2,979 - - 2,979



Listed equities 22,607 41,330 - 63,937



Total 34,862 722,243 - 757,105



Futures 1,921 - - 1,921


Total 1,921 825 - 2,746

UBS Balanced Investment Fund - as at 30 June 2013


$'000 $'000 $'000 $'000



Futures 2,085 - - 2,085






Total 100,334 582,529 - 682,863



Futures 2,961 - - 2,961


Total 2,961 886 - 3,847


110



UBS Emerging Markets Equity Fund (AUD) - as at 30 June 2014 Level 1 Level 2 Level 3 Total $'000 $'000 $'000 $'000



Listed equities 22,450 252 - 22,702

Total 22,450 252 - 22,702

UBS Emerging Markets Equity Fund (AUD) - as at 30 June 2013


$'000 $'000 $'000 $'000




Total 20,809 - - 20,809

UBS-HALO Australian Share Fund - as at 30 June 2014 Level 1 Level 2 Level 3 Total $'000 $'000 $'000 $'000



Futures 1 - - 1




Total 25,255 - - 25,255

UBS-HALO Australian Share Fund - as at 30 June 2013


$'000 $'000 $'000 $'000



Futures 2 - - 2



Total 4,637 - - 4,637


111



UBS Clarion Global Property Securities Fund - as at 30 June 2014 Level 1 Level 2 Level 3 Total $'000 $'000 $'000 $'000







Total 180,117 2,251 - 182,368




Total - 124 - 124

UBS Clarion Global Property Securities Fund - as at 30 June 2013


$'000 $'000 $'000 $'000







Total 116,402 437 - 116,839




Total - 5,213 - 5,213


112



UBS Tactical Beta Fund - Conservative - as at 30 June 2014 Level 1 Level 2 Level 3 Total $'000 $'000 $'000 $'000




Swaps - 654 - 654

Futures 227 - - 227






Total 12,601 20,172 - 32,773




Futures 77 - - 77

Total 77 59 - 136

UBS Tactical Beta Fund - Conservative - as at 30 June 2013


$'000 $'000 $'000 $'000




Swaps - 141 - 141

Futures 93 - - 93





Total 7,389 12,933 - 20,322




Futures 123 - - 123

Total 123 49 - 172


113



UBS Tactical Beta Fund - Growth - as at 30 June 2014 Level 1 Level 2 Level 3 Total $'000 $'000 $'000 $'000




Futures 116 - - 116

Swaps - 301 - 301






Total 14,580 3,712 - 18,292




Futures 34 - - 34

Total 34 40 - 74

UBS Tactical Beta Fund - Growth - as at 30 June 2013


$'000 $'000 $'000 $'000




Futures 61 - - 61





Total 6,112 1,866 - 7,978




Futures 39 - - 39

Total 39 85 - 124


114



UBS Tactical Beta Fund - Balanced - as at 30 June 2014 Level 1 Level 2 Level 3 Total $'000 $'000 $'000 $'000




Swaps - 1,227 - 1,227

Futures 465 - - 465






Total 49,770 31,889 - 81,659




Futures 186 - - 186

Total 186 154 - 340

UBS Tactical Beta Fund - Balanced - as at 30 June 2013


$'000 $'000 $'000 $'000




Swaps - 317 - 317

Futures 258 - - 258





Total 31,920 24,978 - 56,898




Futures 259 - - 259

Total 259 339 - 598


115



The fair value of investments that are accounted for using quoted market prices in active markets, are classified as level 1 instruments. The level 1 instruments include all active listed equities and exchange traded derivatives that are traded on recognised stock exchanges.

Financial instruments that trade in markets that are not considered to be active but are valued based on quoted market prices, dealer quotations or alternative pricing sources supported by observable inputs are classified within level 2. The observable inputs include prices and/or those derived from prices. The level 2 instruments include investment-grade corporate bonds, and over-the-counter derivatives. As level 2 investments include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.

Level 2 investments could include those that are not traded in active markets and/or are subject to transfer restrictions (e.g. redemption restrictions). Valuations for these investments may be adjusted to reflect illiquidity and/or non transferability, which are generally based on available market information. Typically, prices of units in unlisted managed investment trusts that are either published on the investment manager’s website and/or circulated among market participants as executable quotes are categorised as level 2. Investments classified within level 3 have significant unobservable inputs, as they are infrequently traded. Level 3 instruments include certain unlisted unit trusts and corporate debt securities. As observable prices are not available for these securities, the Schemes have applied valuation techniques to derive fair value.

Level 3 instruments could include distressed debt instruments, certain private equity and real estate investments that are not based on market inputs or securities that are in an inactive/illiquid market and are valued using models and internal data. Level 3 investments may be adjusted to reflect illiquidity and/or restrictions, however, the adjustments are not based on available market information. Level 3 instruments also include those that have stale price that is, where the pricing for a particular security has remained static for an extended period of time.

Level 3 valuations are reviewed quarterly by the relevant management. The management considers the appropriateness of the valuation inputs, methods and techniques used in the valuations. The valuation inputs are generally sourced from independent third party pricing sources without adjustment such as stock exchanges, pricing agencies and/or fund managers. Where the inputs are considered stale, unobservable, proprietary or from an inactive market, they are categorised as level 3.

Where a valuation model technique is used, the Schemes consider other liquidity, credit and market risk factors, and adjust the model as deemed necessary. There have been no changes to the valuation techniques used for financial instruments classified as levels 2 and 3.

There have been no transfers of movement in Level 3 during the year. The following table presents the transfers between levels during the financial year ended 30 June 2014 (2013: Nil):

UBS Emerging Markets Equity Fund (AUD) Level 1 Level 2 Level 3 $'000 $'000 $'000

Transfers between levels 1 and 2:

Listed equities (252) 252 -


116

14 Offsetting financial assets and financial liabilities

The disclosures set out in the tables below show the recognised financial instruments that are currently offset in the Statements of Financial Position and/or are subject to master netting agreements (or similar) irrespective of whether they are offset.


Financial assets - 30 June 2014

Gross amounts

Gross amounts of recognised

financial liabilities set off

in the Statements of

Financial Position

Net amounts of financial assets

presented in Statements of

Financial Position

Amounts related to recognised

financial instruments that

don't meet offsetting

criteria Cash

collateral

Marketable security

collateral Net amount $'000 $'000 $'000 $'000 $'000 $'000 $'000

Nil - - - - - - -


Financial liabilities - 30 June 2014

Gross amounts


financial assets set off in the Statements of

Financial Position

Net amounts of financial liabilities


Financial Position




criteria Cash

collateral

Marketable security


Nil - - - - - - -



Gross amounts




Financial Position

Net amounts of financial assets presented in





criteria Cash

collateral

Marketable security


Futures 241 - 241 - - - 241

Closing balance 241 - 241 - - - 241



Gross amounts

Gross amounts of recognised financial assets set off in the Statements of

Financial Position



Financial Position



don't meet offsetting criteria

Cash collateral

Marketable security


Nil - - - - - - -


117

14 Offsetting financial assets and financial liabilities (continued)



Gross amounts




Financial Position



Financial Position




criteria Cash

collateral

Marketable security


Forward foreign exchange contracts 44,205 44,102 103 103 - - -

Closing balance 44,205 44,102 103 103 - - -



Gross amounts



Financial Position



Financial Position




criteria Cash

collateral

Marketable security


Forward foreign exchange contracts 44,511 44,102 409 103 - - 306

Closing balance 44,511 44,102 409 103 - - 306



Gross amounts




Financial Position



Amounts related to recognised financial

instruments that don't meet offsetting

criteria Cash

collateral

Marketable security



Closing balance 39,236 38,998 238 188 - - 50



Gross amounts


Financial Position



Financial Position




criteria Cash

collateral

Marketable security



Closing balance 39,186 38,998 188 188 - - -


118




Gross amounts




Financial Position



Financial Position




criteria Cash

collateral

Marketable security


Futures 7 - 7 - - - 7




Gross amounts



Financial Position



Financial Position




criteria Cash

collateral

Marketable security


Nil - - - - - - -



Gross amounts



in the Statements of Financial

Position






Cash collateral

Marketable security


Futures 65 - 65 - - - 65




Gross amounts


Financial Position



Financial Position




Cash collateral

Marketable security


Nil - - - - - - -


119




Gross amounts




Financial Position



Financial Position




criteria Cash

collateral

Marketable security



Closing balance 143,687 143,091 596 41 - - 555



Gross amounts



Financial Position



Financial Position




criteria Cash

collateral

Marketable security



Closing balance 143,132 143,091 41 41 - - -



Gross amounts




Financial Position






Cash collateral

Marketable security



Closing balance 128,885 128,724 161 161 - - -



Gross amounts


Financial Position



Financial Position




criteria Cash

collateral

Marketable security


Forward foreign exchange contracts 130,749 128,724 2,025 161 - - 1,864

Closing balance 130,749 128,724 2,025 161 - - 1,864


120




Gross amounts




Financial Position



Financial Position




criteria Cash

collateral

Marketable security


Futures 526 - 526 252 - - 274


Swaps 782 - 782 - (4) - 786

Closing balance 28,388 26,932 1,456 399 (4) - 1,061



Gross amounts



Financial Position



Financial Position




criteria Cash

collateral

Marketable security


Futures 252 - 252 252 - - -


Closing balance 27,331 26,932 399 399 - - -



Gross amounts




Financial Position






Cash collateral

Marketable security



Futures 418 - 418 418 - - -

Closing balance 25,351 24,727 624 603 - - 21


121




Gross amounts


Financial Position



Financial Position




criteria Cash

collateral

Marketable security


Futures 617 - 617 418 - - 199


Options 116 - 116 - - - 116

Closing balance 25,645 24,727 918 603 - - 315 UBS Balanced Investment Fund


Gross amounts


financial liabilities

set off in the Statements of

Financial Position



Financial Position




criteria Cash

collateral

Marketable security


Futures 2,979 - 2,979 1,921 - - 1,058


Swaps 5,033 - 5,033 - 4 - 5,029

Closing balance 150,331 141,546 8,785 2,694 4 - 6,087



Gross amounts



Financial Position



Financial Position




criteria Cash

collateral

Marketable security


Futures 1,921 - 1,921 1,921 - - -


Closing balance 144,292 141,546 2,746 2,694 - - 52


122




Gross amounts




Financial Position






criteria Cash

collateral

Marketable security


Futures 2,085 - 2,085 2,085 - - -

Forward foreign exchange contracts 128,546 127,280 1,266 886 - - 380

Closing balance 130,631 127,280 3,351 2,971 - - 380



Gross amounts


Financial Position



Financial Position




Cash collateral

Marketable security


Futures 2,961 - 2,961 2,085 - - 876

Foward foreign exchange contracts 128,166 127,280 886 886 - - -

Closing balance 131,127 127,280 3,847 2,971 - - 876



Gross amounts




Financial Position



Financial Position




criteria Cash

collateral

Marketable security


Futures 1 - 1 - - - 1




Gross amounts



Financial Position



Financial Position




criteria Cash

collateral

Marketable security


Nil - - - - - - -


123




Gross amounts




Financial Position






Cash collateral

Marketable security


Futures 2 - 2 - - - 2




Gross amounts


Financial Position



Financial Position




Cash collateral

Marketable security


Nil - - - - - - -



Gross amounts




Financial Position



Financial Position




criteria Cash

collateral

Marketable security



Closing balance 503,157 500,906 2,251 124 - - 2,127



Gross amounts



Financial Position



Financial Position




criteria Cash

collateral

Marketable security



Closing balance 501,030 500,906 124 124 - - -


124




Gross amounts




Financial Position






criteria Cash

collateral

Marketable security



Closing balance 339,092 338,655 437 437 - - -



Gross amounts


Financial Position



Financial Position




criteria Cash

collateral

Marketable security



Closing balance 343,868 338,655 5,213 437 - - 4,776



Gross amounts




Financial Position



Financial Position




criteria Cash

collateral

Marketable security


Futures 227 - 227 77 - - 150


Swaps 654 - 654 - - - 654

Closing balance 8,620 7,727 893 89 - - 804


125




Gross amounts



Financial Position



Financial Position




criteria Cash

collateral

Marketable security


Futures 77 - 77 77 - - -


Closing balance 7,863 7,727 136 89 - - 47



Gross amounts




Financial Position






Cash collateral

Marketable security


Futures 93 - 93 93 - - -


Swaps 141 - 141 - - - 141

Closing balance 6,212 5,954 258 117 - - 141



Gross amounts


Financial Position



Financial Position




Cash collateral

Marketable security


Futures 123 - 123 93 - - 30

Foward foreign exchange contracts 6,003 5,954 49 24 - - 25

Closing balance 6,126 5,954 172 117 - - 55


126




Gross amounts




Financial Position



Financial Position




criteria Cash

collateral

Marketable security


Futures 116 - 116 33 - - 83


Swaps 301 - 301 - - - 301

Closing balance 10,235 9,767 468 73 - - 395



Gross amounts



Financial Position



Financial Position




criteria Cash

collateral

Marketable security


Futures 33 - 33 33 - - -


Closing balance 9,840 9,767 73 73 - - -



Gross amounts




Financial Position



Amounts related to recognised financial

instruments that don't meet offsetting

criteria Cash

collateral

Marketable security


Futures 61 - 61 39 - - 22


Closing balance 4,970 4,896 74 52 - - 22


127




Gross amounts


Financial Position



Financial Position




Cash collateral

Marketable security


Futures 39 - 39 39 - - -


Closing balance 5,020 4,896 124 52 - - 72



Gross amounts




Financial Position



Financial Position




criteria Cash

collateral

Marketable security


Futures 465 - 465 186 - - 279


Swaps 1,227 - 1,227 - - - 1,227

Closing balance 31,912 30,095 1,817 311 - - 1,506



Gross amounts



Financial Position



Financial Position




criteria Cash

collateral

Marketable security


Futures 186 - 186 186 - - -


Closing balance 30,435 30,095 340 311 - - 29


128




Gross amounts




Financial Position






criteria Cash

collateral

Marketable security


Futures 258 - 258 258 - - -


Swaps 317 - 317 - - - 317

Closing balance 22,912 22,258 654 337 - - 317



Gross amounts


Financial Position



Financial Position




Cash collateral

Marketable security


Futures 259 - 259 258 - - 1


Closing balance 22,856 22,258 598 337 - - 261

Schemes where financial assets and liabilities were not required to disclose in the table above held nil derivatives as at 30 June 2014 and 30 June 2013 were UBS Property Securities Fund, UBS Global Quantitative Share Fund and UBS Emerging Markets Equity Fund (AUD).

The agreements, where relevant, could include derivative clearing agreements, global master repurchase agreements and others. Similar financial instruments could include derivatives, sale and repurchase agreements, reverse sale and repurchase agreements, securities lending agreements, short sales.

The International Swaps and Derivatives Association ("ISDA"), master netting agreements or similar agreements do not generally meet the criteria for offsetting. This is because they create a right of set-off of recognised amounts that is enforceable only following an event of default, insolvency or bankruptcy of the entity or the counterparties.

From time to time, the Schemes may receive or pledge collateral which could be in the form of cash or marketable securities or both in respect of the above instruments. Such collateral, if transacted, is generally subject to the industry standard in terms of ISDA's Credit Support Annex. This means that collateral received/pledged can be re-pledged or sold during the term of the transaction but have to be returned on maturity of the transaction. The terms also generally give each counterparty the right to terminate the related transactions on the counterparty's failure to post collateral.


129

15 Related party transactions

Responsible Entity

The Responsible Entity of the Schemes is UBS Global Asset Management (Australia) Ltd, whose immediate and ultimate holding company is UBS AG, a publicly listed company incorporated in Switzerland.

Key management personnel

The directors of UBS Global Asset Management (Australia) Ltd are considered key management personnel. The directors of the Responsible Entity in office at any time during the financial year and up to the date of this report are listed as follows:

(a) Directors

B J Doherty, Chairman (Appointed 08 October 2013)

K R Sotorp, Chairman (Resigned as Chairman 08 October 2013 and Resigned 25 May 2014 as Director)

A L Anderson

J D Males

B A Heap (Resigned 20 September 2013)

A L Flockart (Appointed 08 October 2013)

T C Cooke (Appointed 08 October 2013)

R Buehlmann (Appointed 19 September 2014)

(b) Other key management personnel

In addition, the Responsible Entity, UBS Global Asset Management (Australia) Limited is considered to be a key management personnel with the authority for the strategic direction and management of the Schemes.

Relationship with UBS AG Australia Branch and UBS Securities Australia Limited

On a non exclusive basis, the Schemes use the services of UBS AG Australia Branch, a related company, for futures trading and clearing, fixed income trading and underwriting services. The Schemes also use the services of UBS Securities Australia Limited, a related company for equity broking services.

Fees paid to these related companies for their services are on normal commercial terms and conditions.

Responsible Entity's fees and other transactions The Responsible Entity received a total fee of $19,830,084 for administering and managing the Schemes in accordance with the Schemes' Constitutions for the financial year ended 30 June 2014 (2013: $19,102,005).

The Responsible Entity received a performance fee of $1,356,225 from UBS Australian Small Companies Fund. The Scheme pays a performance fee to the Responsible Entity in accordance with the Scheme's Product Disclosure Statement. Where Schemes invest into UBS Australian Small Companies Fund and are managed by the Responsible Entity, the performance fee is calculated after rebating fees charged in the underlying Schemes.

Where the Schemes invest into other schemes managed by the Responsible Entity, the Responsible Entity's fee is calculated after rebating fees charged in the underlying Schemes.

In addition to the Responsible Entity's fees, the Responsible Entity is entitled to be reimbursed out of the Schemes for costs including expenses in connection with the keeping and preparation of accounting records and the maintenance of the registers. For the financial year ended 30 June 2014, all these costs and expenses have been borne by the Responsible Entity.

The Responsible Entity's fees paid and payable or rebateable (inclusive of GST, net of RITC) calculated in the manner described above are disclosed in the Statements of Comprehensive Income. Amounts payable to the Responsible Entity at the financial year end are detailed in Note 11. Any fee rebates receivable from the Responsible Entity are included in Receivables - Other receivables in Note 9.

All related party transactions are conducted on normal commercial terms and conditions.


130

15 Related party transactions (continued)

Related party unitholdings

The related party unitholdings (including units held by UBS Global Asset Management (Australia) Ltd, its related parties and other schemes managed by UBS Global Asset Management (Australia) Ltd) are recorded at ex-redemption price, which are recognised after provision for distributions at the financial year end. Related parties that held no units in the Schemes are UBS Defensive Investment Fund, UBS-HALO Australian Share Fund and UBS Tactical Beta Fund - Balanced. Related parties that held units in the Schemes are listed as follows:


Number of units held opening

Number of units held

closing Fair value of investment

Interest held

Number of units

acquired

Number of units

disposed

Distributions paid/payable

by the Schemes2014 Unitholder (Units) (Units) $ % (Units) (Units) $

UBS Defensive Investment Fund 9,831,196 10,126,335 8,362,082 4.26 295,139 - 364,090

UBS Wealth Management Australia Nominees Pty Ltd 1,447,493 1,342,502 1,138,308 0.56 18,208 123,199 48,920

2013

Unitholder

UBS Defensive Investment Fund 12,782,355 9,831,196 7,612,255 3.64 451,941 3,403,100 281,355


UBS AG Zurich 990 - - - 13 1,003 -





Interest held

Number of units

acquired

Number of units

disposed



UBS Balanced Investment Fund 99,568,107 103,128,008 183,182,862 16.49 3,559,901 - 6,322,436



2013

Unitholder

UBS Balanced Investment Fund 100,703,447 99,568,107 157,038,741 14.62 3,853,613 4,988,953 5,802,904

UBS Defensive Investment Fund 9,249,216 8,157,382 12,865,817 1.20 333,581 1,425,415 490,508

UBS Dynamic Alpha Strategy Fund A (AUD) 5,530,642 - - - 217,407 5,748,049 264,619


UBS AG Zurich 39 - - - 161 200 3


131






Interest held

Number of units

acquired

Number of units

disposed




UBS Defensive Investment Fund 7,165,460 10,479,471 11,771,562 4.72 3,314,011 - 83,423

UBS Wealth Management Australia Nominees Pty Ltd 951,974 1,109,056 1,253,011 0.50 405,003 247,921 8,857

2013

Unitholder



UBS Wealth Management Australia Nominees Pty Ltd 1,141,157 951,974 889,715 0.54 184,364 373,547 14,903





Interest held

Number of units

acquired

Number of units

disposed



UBS Australian Share Fund 48,513,634 49,484,167 74,498,413 79.53 970,533 - 955,173

UBS Wealth Management Australia Nominees Pty Ltd 858,647 785,464 1,182,517 1.26 105,071 178,254 17,855

2013

Unitholder

UBS Australian Share Fund 68,735,443 48,513,634 60,008,630 77.32 2,213,117 22,434,926 2,046,198

UBS Wealth Management Australia Nominees Pty Ltd 1,022,498 858,647 1,062,146 1.37 232,250 396,101 34,031





Interest held

Number of units

acquired

Number of units

disposed



UBS Balanced Investment Fund 49,146,281 52,945,352 42,075,379 82.44 3,799,071 - 21,470

UBS Wealth Management Australia Nominees Pty Ltd 79,018 79,018 62,827 0.12 - - 32

2013

Unitholder

UBS Balanced Investment Fund 59,783,730 49,146,281 33,463,702 80.10 2,991,559 13,629,008 1,878,406

UBS Wealth Management Australia Nominees Pty Ltd 75,035 79,018 53,803 0.13 3,983 - 2,513


132






Interest held

Number of units

acquired

Number of units

disposed



UBS Balanced Investment Fund 56,458,537 56,458,537 57,662,613 92.88 - - 709,868

UBS Defensive Investment Fund 4,214,338 4,214,338 4,304,216 6.93 - - 52,988

2013

Unitholder

UBS Balanced Investment Fund 63,730,222 56,458,537 48,396,880 92.78 1,540,440 8,812,125 836,908






Interest held

Number of units

acquired

Number of units

disposed



UBS Wealth Management Australia Nominees Pty Ltd 428,198,109 421,056,786 547,836,984 68.69 2,776,875 9,918,198 16,701,470

2013

Unitholder

UBS Wealth Management Australia Nominees Pty Ltd 425,447,410 428,198,109 485,576,656 69.68 2,750,699 - 16,830,601





Interest held

Number of units

acquired

Number of units

disposed



UBS Balanced Investment Fund 35,512,515 35,827,119 22,409,248 97.13 314,604 - 100,874

2013

Unitholder

UBS Balanced Investment Fund 35,385,385 35,512,515 20,515,178 96.47 127,130 - 167,295

UBS Defensive Investment Fund 1,224,797 - - - 3,280 1,228,077 -





Interest held

Number of units

acquired

Number of units

disposed



UBS Wealth Management Australia Nominees Pty Ltd 262,051 809,171 971,329 0.52 547,120 - 8

2013

Unitholder

UBS Wealth Management Australia Nominess Pty Ltd - 262,051 271,197 0.24 262,051 - 178


133






Interest held

Number of units

acquired

Number of units

disposed



UBS Wealth Management Australia Nominees Pty Ltd - 140,082 150,939 0.29 144,692 4,610 5,950

2013

Unitholder

UBS AG (Australia Branch) - - - - 5,393,972 5,393,972 359,388





Interest held

Number of units

acquired

Number of units

disposed



UBS AG (Australia Branch) 5,266,075 - - - 319,994 5,586,069 187,421

2013

Unitholder

UBS AG (Australia Branch) - 5,266,075 5,713,165 50.64 5,266,075 - 399,024

Investments

The Schemes held investments in the following schemes which are also managed by UBS Global Asset Management (Australia) Ltd or its related parties:

Fair value of investment Interest held

Distributions received/receivable

2014 2013 2014 2013 2014 2013 $ $ % % $ $


UBS Australian Small Companies Fund 74,498,413 60,008,630 79.53 77.32 955,173 2,046,198

74,498,413 60,008,630 955,173 2,046,198


134


Fair value of investment Interest held Distributions

received/receivable 2014 2013 2014 2013 2014 2013 $ $ % % $ $


UBS Australian Share Fund 15,007,743 12,865,817 1.35 1.20 517,982 490,508

UBS Property Securities Fund 8,362,082 7,612,255 4.26 3.64 364,091 281,355

UBS International Share Fund 11,771,562 6,697,040 4.72 4.09 83,423 110,676

UBS Global Quantitative Share Fund 4,304,216 3,612,577 6.93 6.93 52,988 55,965

UBS Diversified Credit Fund 8,251,182 - 3.34 - 389,216 -

UBS Dynamic Alpha Strategy Fund A (AUD) 7,020,995 6,465,971 1.06 11.56 327,860 69,497

UBS Australian Bond Fund 31,809,768 29,965,330 2.83 2.54 1,539,380 1,724,714

UBS Cash Fund 2,212,253 4,219,985 0.19 0.52 206,754 206,780

UBS Global Opportunities Share Fund - 3,110,156 - 5.55 5,654 26,032

UBS Global Credit Fund 3,171,407 25,074,862 3.12 13.26 1,054,094 816,072

91,911,208 99,623,993 4,541,442 3,781,599

Fair value of investment Interest held Distributions

received/receivable 2014 2013 2014 2013 2014 2013 $ $ % % $ $


UBS Australian Share Fund 183,182,862 157,038,741 16.49 14.62 6,322,436 5,802,904

UBS Cash Fund 55,982,296 7,138,366 4.84 0.87 1,582,504 552,003

UBS Global Property Securities Fund 42,075,379 33,463,702 82.44 80.10 21,470 1,878,406

UBS International Share Fund 180,295,187 110,228,807 72.25 67.24 1,216,046 1,821,650

UBS Australian Bond Fund 65,459,086 61,663,548 5.82 5.23 3,167,783 3,549,168

UBS Dynamic Alpha Strategy Fund A (AUD) 41,700,556 38,404,038 6.27 68.68 1,947,294 412,771

UBS Emerging Markets Equity Fund (AUD) 22,409,248 20,515,178 97.13 96.47 100,874 167,295

UBS Global Quantitative Share Fund 57,662,613 48,396,880 92.88 92.78 709,868 836,908

UBS Global Opportunities Share Fund - 52,957,737 - 94.45 20,171,026 443,315

UBS IQ Research Preferred Australian Share Fund (ETF) 41,330,507 - - - 4,548,377 -

UBS Global Credit Fund 15,222,171 51,455,839 14.97 27.20 2,163,094 1,674,653

705,319,905 581,262,836 41,950,772 17,139,073

Other transactions within the Schemes

From time to time directors of UBS Investment Funds, or their director related entities, may invest in or withdraw from the Schemes. These investments or withdrawals are on the same terms and conditions as those entered into by other Schemes' investors and are trivial in nature.


135

16 Reconciliation of change in net assets attributable to unitholders to net cash inflows/(outflows) from operating activities

UBS Property




Companies Fund 2014 2013 2014 2013 2014 2013 2014 2013 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

(a) Reconciliation of change in net assets attributable to unitholders to net cash inflows/(outflows) from operating activities

Increase/(decrease) in net assets attributable to unitholders 13,035 46,047 134,469 197,153 33,007 44,260 16,750 7,189

Proceeds from sale of financial instruments held at fair value through profit or loss 47,254 75,637 298,636 550,137 90,391 72,805 38,379 73,282

Purchase of financial instruments held at fair value through profit or loss (20,578) (44,378) (220,467) (384,101) (144,209) (47,270) (36,895) (35,482)

Net (gains)/losses on financial instruments held at fair value through profit or loss (10,689) (44,765) (136,615) (201,977) (33,061) (43,164) (18,056) (7,938)

Distributions to unitholders 8,775 8,318 40,543 41,749 1,706 3,014 1,221 2,611

Net foreign exchange (gains)/losses (97) 165 - - 400 (2,199) - -

Net change in receivables (1,668) (514) (240) 988 (27) (8) (133) (128)

Reinvested distribution income (244) (249) (1,712) (3,075) (85) (135) (105) (8)

Net change in payables (9) 7 43 71 68 30 (4) (26)

Net cash inflows/(outflows) from operating activities 35,779 40,268 114,657 200,945 (51,810) 27,333 1,157 39,500

(b) Components of cash and cash equivalents

Cash as at the end of the financial year as shown in the Statements of Cash Flows is reconciled to the Statements of Financial Position as follows:

Cash and cash equivalents 5,706 1,548 9,486 33,952 2,766 2,703 5,926 7,273

(c) Non-cash financing and operating activities

Distribution payments were satisfied by the issue of units under the distribution reinvestment plans 851 1,074 19,426 20,153 364 4,420 1,514 3,110

Distribution receipts were satisfied by the issue of units under distribution reinvestment plans 244 249 1,712 3,075 85 135 105 8


136

16 Reconciliation of change in net assets attributable to unitholders to net cash inflows/(outflows) from operating activities (continued)

UBS Global Property

Securities Fund


Fund UBS Defensive


Investment Fund 2014 2013 2014 2013 2014 2013 2014 2013 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000


Increase/(decrease) in net assets attributable to unitholders 7,162 5,676 10,051 12,643 7,971 11,124 87,546 100,190



Net (gains)/losses on financial instruments held at fair value through profit or loss (5,042) (7,915) (9,314) (12,567) (8,177) (11,136) (68,894) (106,005)

Distributions to unitholders 26 2,317 764 895 6,294 4,349 24,283 27,789

Net foreign exchange (gains)/losses (1,293) 769 (831) (135) 283 (157) 406 (1,009)

Net change in receivables (46) 9 (19) (49) (723) (416) (3,350) (1,589)

Reinvested distribution income - (98) (13) - (3,835) (4,026) (15,900) (18,288)

Net change in payables 7 1 10 5 6 (63) (28) 3

Net cash inflows/(outflows) from operating activities (1,746) 10,593 482 7,649 2,658 6,813 31,585 47,719



Cash and cash equivalents 795 541 570 513 10,155 7,677 36,680 35,232


Distribution payments were satisfied by the issue of units under the distribution reinvestment plans - 2,140 - 1,222 1,325 2,517 3,611 1,627

Distribution receipts were satisfied by the issue of units under distribution reinvestment plans - 98 13 - 3,835 4,026 15,900 18,288


137








Increase/(decrease) in net assets attributable to unitholders 1,788 3,404 1,243 390 21,220 11,532 1,740 (237)



Net (gains)/losses on financial instruments held at fair value through profit or loss (2,133) (3,269) (1,484) (9,448) (15,691) (13,495) (2,413) (117)

Distributions to unitholders 104 173 738 9,822 1,626 200 2,194 1,784

Net foreign exchange (gains)/losses 287 (256) - - (3,812) 3,640 7 55

Net change in receivables (6) 15 (211) 692 (391) (162) (461) (828)

Reinvested distribution income - - - (15) - (57) (578) (518)

Net change in payables 2 2 17 (45) 50 87 8 8

Net cash inflows/(outflows) from operating activities (55) 555 (18,831) 66,572 (50,167) (24,976) (9,006) (19,424)



Cash and cash equivalents 412 623 922 276 3,312 4,342 18,221 5,755


Distribution payments were satisfied by the issue of units under the distribution reinvestment plans 190 67 414 9,715 5 8 - 359

Distribution receipts were satisfied by the issue of units under distribution reinvestment plans - - - 15 - 57 578 518


138


UBS Tactical Beta


2014 2013 2014 2013 $'000 $'000 $'000 $'000


Increase/(decrease) in net assets attributable to unitholders 801 229 6,051 1,651

Proceeds from sale of financial instruments held at fair value through profit or loss 3,689 1,700 5,251 2,293

Purchase of financial instruments held at fair value through profit or loss (11,904) (9,028) (21,478) (55,985)

Net (gains)/losses on financial instruments held at fair value through profit or loss (1,937) (449) (7,300) (2,582)

Distributions to unitholders 1,866 560 4,612 3,126

Net foreign exchange (gains)/losses (92) 173 (290) 494

Net change in receivables (182) (224) (582) (1,810)

Reinvested distribution income (120) (250) (1,204) (528)

Net change in payables 5 3 14 21

Net cash inflows/(outflows) from operating activities (7,874) (7,286) (14,926) (53,320)



Cash and cash equivalents 9,909 3,421 36,553 8,970


Distribution payments were satisfied by the issue of units under the distribution reinvestment plans 352 241 - -

Distribution receipts were satisfied by the issue of units under distribution reinvestment plans 120 250 1,204 528

As described in Note 2(j), income not distributed is included in net assets attributable to unitholders. The change in this amount each financial year (as reported in (a) above) represents a non-cash financing cost as it is not settled in cash until such time as it becomes distributable.


139

17 Events occurring after the reporting date

No significant events have occurred since the end of the financial year which would impact on the financial position of the Schemes disclosed in the Statements of Financial Position as at 30 June 2014 or on the results and cash flows of the Schemes for the financial year ended on that date.

18 Contingent assets and liabilities and commitments

There are no outstanding contingent assets and liabilities or commitments as at 30 June 2014 (2013: Nil).

19 Investment in subsidiaries

The Schemes have the following unconsolidated entities:

Principal activities Country of domicile Fair value Equity holding **

30 June 30 June 30 June 30 June 2014 2013 2014 2013 $'000 $'000 % %


UBS Australian Small Companies Fund Australia Australia 74,498 60,008 79.53 77.32

Principal activities Country of domicile Fair value Equity holding **

30 June 30 June 30 June 30 June 2014 2013 2014 2013 $'000 $'000 % %


UBS Global Property Securities Fund Australia Australia 42,075 33,464 82.44 80.10

UBS Global Quantitative Share Fund Australia Australia 57,663 48,397 92.88 92.78

UBS Emerging Markets Equity Fund (AUD) Australia Australia 22,409 20,515 97.13 96.47

UBS Global Opportunities Share Fund Australia Australia - 52,958 - 94.45

UBS Dynamic Alpha Strategy Fund A (AUD) Australia Australia 41,701 38,404 6.27 68.68

UBS International Share Fund Australia Australia 180,295 110,229 72.25 67.24

** The proportion of ownership or equity holding is equal to the proportion of voting power held and the exposure %.

The Schemes acquire units in the above entities at their redemption price which reflects the fair value of the investments.

The Schemes qualify for and have applied the investment entity exemption and therefore are no longer required to consolidate their subsidiaries.

The Schemes account for the above investments at fair value through profit or loss and include them as part of the financial statements caption of 'Financial assets held at fair value through profit or loss', with any changes in its fair value taken to profit or loss and recorded as part of 'Net gains/(losses) on financial instruments held at fair value through profit or loss'.

As at the reporting date, the Schemes and their subsidiaries did not impose any significant restrictions, borrowing arrangements, regulatory requirements, or contractual arrangements on the ability of an entity to transfer funds to the Schemes in the form of dividends or to repay loans or advances made to the entity by the Schemes.

As at the reporting date, the Schemes and their subsidiaries do not have any current commitments or intentions to provide financial or other support to an entity, including commitments or intentions to assist the entity in obtaining financial support.

UBS Investment Funds Directors' Declaration For the year ended 30 June 2014

140

Directors' Declaration

In the opinion of the directors of the Responsible Entity:

(a) the financial statements and notes set out on pages 7 - 139 are in accordance with the Corporations Act 2001, including:

(i) complying with Australian Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; and

(ii) giving a true and fair view of the financial position of the Schemes as at 30 June 2014 and of their performance, as represented by the results of their operations and cash flows, for the financial year ended on that date;

(b) there are reasonable grounds to believe that the Schemes will be able to pay their debts as and when they become due and payable.

(c) the financial statements are in accordance with the Schemes' Constitutions.

(d) the financial statements also comply with International Financial Reporting Standards as issued by the International Accounting Standards Board as disclosed in Note 2(a).

This declaration is made in accordance with a resolution of the directors.

B J Doherty A L AndersonChairman Director

Sydney

19 September 2014

141

Independent Auditor's Report to the Unitholders of UBS Investment Funds

142

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UBS Global Asset Management (Australia) Ltd is a subsidiary of UBS AG

Level 16 Chifley Tower 2 Chifley Square Sydney NSW 2000 Phone: +61-2-9324 3100 Fax:+61-2-9324 3149

Level 16 8 Exhibition Street Melbourne VIC 3000 Phone: +61-3-9242 6500 Fax:+61-3-9242 6528

www.ubs.com/globalam-australia

Documents

· PDF fileUBS Investment Funds Annual Financial Statements For the year ended 30 June 2014 The Responsible Entity of UBS Investment Funds is UBS Global Asset Management