Simplified Prospectus UBS (CH) Equity Fund

June 2011

Simplified prospectus UBS (CH) Equity Fund – Switzerland

Contractually based investment fund under Swiss law (Category Other Funds for Traditional Investments)

Fund management company: UBS Fund Management (Switzerland) AG Custodian bank: UBS AG

This simplified prospectus contains a summary of the key information about the investment fund. The detailed prospectus including the fund contract governs the legal and economic aspects definitively. These include such aspects as the rights of investors, the duties and obligations of the fund management company and the custodian bank and the investment policy of the fund. Investors are advised to consult the detailed prospectus. The annual and semi-annual reports provide information about the capital account and income statement. These documents are available free of charge from the fund management company, the custodian bank and all distributors.

Investment information Investment objective The investment objective of UBS (CH) Equity Fund – Switzerland is principally to secure an optimum total return over the long term that is consistent with the development of the Swiss equity market.

Investment strategy (Investment policy) This fund invests primarily in equities issued by companies that are either included in the Swiss Performance Index (SPI®) with gross dividends market index, have their registered office in Switzerland, or which, as holding companies, mainly invest in companies with their registered office in Switzerland, or which conduct the majority of their business in Switzerland. The fund also invests in derivatives, collective investments and structured products, with the fund management company ensuring that, on a consolidated basis, at least two-thirds of the total fund assets are invested in the aforementioned investments.

The fund may also invest its assets in other investments as permitted under the fund contract and engage in securities lending.

Derivative financial instruments can be used to ensure that the fund’s assets are managed efficiently. The use of derivatives is part of the investment strategy.

Benchmark: Swiss Performance Index (SPI®)

Currency of account: Swiss franc (CHF)

Risk profile of the fund The investment fund’s main risks are as follows: The net asset value of the fund’s investments is geared towards their respective market values. The net asset value can fluctuate substantially depending on the general stock market trend and the performance of securities held in the portfolio. A fall in the net asset value over a considerable period cannot be ruled out. There is no guarantee that investors will achieve a specific return, or that they will be able to submit units to the fund management company for redemption at a specific price.

In order to enable the fund to be distributed abroad, the fund management company is obliged to restrict borrowing to 10% of fund assets, even in situations where there is considerable demand for redemptions.

Due to the planned use of derivatives, commitment approach II (extended procedure) shall be used in risk measurement. Both lev- erage and short-selling are permitted. A fund’s total investments may amount to up to 200% of its net assets (or 225% if borrowing is factored into the calculation). The fund management company shall ensure that the use of derivatives does not alter the investment objectives as stated in this simplified prospectus, the fund contract and the prospectus, or the investment profile of the fund even in exceptional market circumstances.

Besides market risk, derivatives are also subject to counterparty risk, i.e. the risk that the contracting party is unable to meet its obligations and causes a financial loss as a result.

The detailed prospectus contains more specific information about the risks noted here. Performance Performance (CHF-based) The performance shown does not take account of any commissions and incidental costs charged when subscribing to and redeeming units.

160 Indexed in % +60

140 +40

120 +20

100 0

80 –20

60 –40

40 –60 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Indexed performance (left-hand scale) SPI® (TR) Performance per year (right-hand scale) in % 2007 2008 2009 2010 2011 April 5 Ø p.a. YTD1 2011 years 5 years Fund (CHF) -2.55 -33.76 22.44 2.18 2.64 3.63 -9.22 -1.92 Benchmark2 -0.05 -34.05 23.18 2.92 3.84 3.82 -3.81 -0.77 1 YTD: year-to-date (since beginning of the year) 2 Benchmark in currency of account (without costs)

Average annual return as at end-April 2011: Past 3 years: –2.11% Past 5 years: –1.92% Past 10 years: 0.48%

Past performance provides no indication of the future performance of the fund units. This depends on market developments and how successfully the asset manager implements the investment policy.

Profile of the typical investor The fund is appropriate for investors with a long-term horizon who are primarily seeking to achieve capital growth. Investors can accept larger fluctuations and a longer-lasting decline in the net asset value of the fund units. They are aware of the considerable risks an equity investment entails.

Distributions The net income of the fund will be distributed free of charge to the investors annually within four months of the close of the financial year in the accounting currency Swiss franc (CHF) (see Tax aspects (investment fund)).

As a rule, capital gains are not distributed but are retained in the fund for reinvestment.

2 Unit classes The fund is currently subdivided into the following unit classes:

Unit class Accounting Initial subscrip- Launch Minimum Smallest Commission Form of Appropriation currency tion price period/date* subscription tradeable lot p.a. custody of income P CHF 100 23.5.1949 n/a 0.001 1.500%1 bearer distributing (1.200%) H CHF 500,000 not yet known n/a 0.001 1.100%1 bearer distributing (0.880%) K-1 CHF 5,000,000 not yet known n/a 0.1 0.800%1 bearer distributing (0.640%) K-2 CHF 100,000 not yet known n/a 0.1 0.600%2 registered3 distributing (0.480%) F CHF 100 not yet known n/a 0.001 1.300%2 registered3 distributing (1.040%) I-506 CHF 100 not yet known n/a 0.001 0.500%1 registered3 distributing (0.400%) I-40 CHF 100 not yet known 10 000 0007 0.001 0.400%1 registered3 distributing (0.320%) I-33 CHF 100 not yet known 30 000 0008 0.001 0.330%1 registered3 distributing (0.260%) I-5.56 CHF 100 not yet known n/a 0.001 0.055%4 registered3 distributing I-X6 CHF 100 not yet known n/a 0.001 0.000%5 registered3 distributing U-X CHF 10,000 not yet known n/a 0.001 0.000%5 registered3 distributing

1 Flat fee charged by the fund management company. This is appropriated for management purposes, asset management and distribution and also to cover any costs that may be incurred. The amount in brackets indicates the level of the management fee, which accounts for 80% of the flat fee. 2 Flat fee charged by the fund management company. This is appropriated for management purposes, asset management and distribution and also to cover any costs that may be incurred. An additional fee is charged as stated in the written asset management mandate or advisory mandate which the investor has concluded with UBS AG, one of its selected subsidiary banks or a contracting partner authorised by UBS AG (cf. § 6 prov. 4 of the fund contract). The amount in brackets indicates the level of the management fee, which accounts for 80% of the flat fee. 3 The registered units must be booked and held in custody at UBS AG. 4 Commission charged by the fund management company. The costs incurred in fund administration (including fund management company, administra- tor and custodian bank) are charged directly to the investment fund’s assets via commission. The costs incurred in asset management are charged to investors under a separate agreement with UBS AG or one of its authorised contracting partners (cf. § 6 prov. 4 of the fund contract). 5 Commission charged by the fund management company. Costs arising in connection with the services provided for class “I-X” and “U-X” units are covered by payments due to UBS AG under a separate agreement with the investor (cf. § 6 prov. 4 of the fund contract). 6 The allocation to a unit class shall take place in consultation with the investor based on their mandate relationship with UBS AG or one of its authorised contracting partners. 7 For a subscription, the following criteria must be met: (i) A minimum subscription must be carried out in accordance with the table (or the corresponding currency equivalent) or (ii) It must be based on a written agreement between the qualified investor and UBS AG or one of its authorised contracting partners; its total assets held with UBS or its minimum subscribed holdings in UBS collective investment schemes must amount to more than CHF 30,000,000 (or the corresponding currency equivalent). (i) and (ii) above are regarded as the minimum subscription. 8 For a subscription, the following criteria must be met: (i) A minimum subscription must be carried out in accordance with the table (or the corresponding currency equivalent) or (ii) It must be based on a written agreement between the qualified investor and UBS AG or one of its authorised contracting partners; its total assets held with UBS or its minimum subscribed holdings in UBS collective investment schemes must amount to more than CHF 100,000,000 (or the corresponding currency equivalent). (i) and (ii) above are regarded as the minimum subscription. * The note “not yet known” refers to those unit classes which were not yet launched on the date this prospectus was published, or for which a launch date has not yet been set. Investors should contact their investment advisor for further details.

Detailed information on the unit classes is contained in the fund contract (cf. Part II, § 6 prov. 4). The unit classes are not seg- mented assets. Accordingly, the possibility that a unit class may be liable for the liabilities of another unit class cannot be ruled out, even though costs as a rule may only be charged to the specific unit class benefiting from a specific service.

3 Economic Information Remuneration and incidental costs Remuneration and incidental costs 20081 20092 20103 Remuneration and incidental costs incurred directly by the investor when subscribing to and redeeming units Issuing commission max. 6% 6% 6% At custodian bank in Switzerland max. 2% 2% 2% Redemption commission, max. 2% 2% 2% At custodian bank in Switzerland none none none Remuneration and incidental costs charged to the sub-fund’s assets on an ongoing basis Commission charged by 1.5% see table see table the fund management company above above Management fee charged by target funds 3% 3% in which investments are made, max. Total expense ratio (TER) 1.51% (excluding securities transaction costs) Unit class P 1.49% 1.50% Portfolio turnover rate (PTR) –4.06% 41.09% 31.09% according to Swiss Funds Association (SFA)

1 For the financial year 1 November 2007 to 31 October 2008. 2 For the financial year 1 November 2008 to 31 October 2009. 3 For the financial year 1 November 2009 to 31 October 2010.

The flat fee can be used in full or in part for distribution remuneration and/or for reimbursements granted to specific types of investors.

Fee-sharing agreements and soft commissions There are no fee-sharing agreements.

The fund management company has not concluded any agreements on retrocessions relating to socalled soft commissions.

Tax aspects (investment fund) The fund has no legal personality in Switzerland. It is subject to neither income tax nor capital gains tax.

The fund management company shall apply for a refund of all Swiss federal withholding tax levied on the fund’s domestic income on behalf of the fund.

Any income and capital gains realised abroad may be subject to the relevant withholding tax deductions imposed by the country of investment. These taxes are, as far as possible, reclaimed by the fund management company on behalf of investors resident in Switzerland under the terms of double taxation treaties or other such agreements.

Tax aspects (investors with tax domicile in Switzerland) Income distributions made by the fund to investors domiciled in Switzerland are subject to Swiss federal withholding tax (tax at source) at a rate of 35%. Capital gains are not subject to withholding tax provided they are distributed with a separate coupon or listed separately in the statement sent to the investor. Investors domiciled in Switzerland may reclaim Swiss withholding tax by declaring it in their tax returns, or by submitting a separate application for a refund.

Tax aspects (investors with tax domicile abroad) Income distributions made by the fund to investors domiciled outside Switzerland are subject to Swiss federal withholding tax (tax at source) at a rate of 35%. Capital gains are not subject to withholding tax provided they are distributed with a separate coupon or listed separately in the statement sent to the investor.

Investors domiciled abroad are able to reclaim withholding tax, if applicable, under the terms of double taxation agreements (DTA) with Switzerland.

Income distributions and/or interest income realised on sale or redemption are not subject to European savings tax in Switzerland.

Other tax implications for investors who hold, buy or sell fund units are defined by the tax laws and regulations in the investor’s country of domicile.

4 Issue and redemption of fund units Swinging single pricing If, on any one order day, the sum of subscriptions and redemptions of units in the fund result in a net inflow or outflow, the fund’s net asset value will be increased or reduced by the average costs accruing to the fund from the investment of a net inflow or from the sale of a portion of investments corresponding to the net outflow. The net asset value calculated and published on the basis of swinging single pricing is thus a modified, or “swung”, net asset value.

Publication of prices Unit net asset values are published for all unit classes for each day fund units are issued or redeemed (daily) by Swiss Fund Data AG, on the Internet at www.ubs.com/funds, in other electronic media and in Swiss and foreign newspapers.

Other information is published in the Swiss Official Gazette of Commerce (Schweizerisches Handelsamtsblatt or SHAB) and by Swiss Fund Data AG (www.swissfunddata.ch).

Type and manner of acquiring and redeeming units Units may be issued or redeemed on any bank business day. The fund management company and the custodian bank are entitled to reject applications for subscription at their own discretion.

Subscription and redemption orders received at the custodian bank by 4 p.m. (CET) on a bank business day (order date) will be set- tled on the following bank business day (valuation date) on the basis of the net asset value calculated on this date (forward pricing).

Brief description of the investment fund Inception date of fund 1967 under Swiss law Financial year 1 November to 31 October Securities no. Unit class “P” 279176 Unit class “H” Unit class “K-1” Unit class “K-2” Unit class “F” Unit class “I-50” Unit class “I-40” Unit class “I-33” Unit class “I-5.5” Unit class “I-X” Unit class “U-X” ISIN Unit class “P” CH0002791769 Unit class “H” Unit class “K-1” Unit class “K-2” Unit class “F” Unit class “I-50” Unit class “I-40” Unit class “I-33” Unit class “I-5.5” Unit class “I-X” Unit class “U-X” Life (of investment fund) unlimited Promoter UBS AG, Zurich and Basel Fund management company UBS Fund Management (Switzerland) AG, Basel Asset manager UBS Global Asset Management, Zurich Delegation of specific tasks UBS Fund Services (Luxembourg) S.A. Custodian bank UBS AG, Zurich and Basel External auditors Ernst & Young Ltd., Basel Supervisory authority Swiss Financial Market Supervisory Authority FINMA, Berne

Contacts In Switzerland: UBS Fund Management (Switzerland) AG Brunngässlein 12, CH-4002 Basel Tel.: +41 (0)800 899 899 or on the Internet: www.ubs.com/funds

In Liechtenstein: Liechtensteinische Landesbank Aktiengesellschaft Städtle 44, FL-9490 Vaduz

In Austria: Erste Bank der oesterreichischen Sparkassen AG Graben 21, A-1010 Vienna