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UBS BLOOMBERG CMCI PRECIOUS INDEX

State-of-the-Art Precious Metals Benchmark

The UBS Bloomberg CMCI Index family was developed to track real performance of and is the first to use up to five constant maturities as well as maintaining broad-based diversification across 29 commodity futures contracts. The index reflects the complete pricing picture and all market opinions while, at the same time, reducing negative roll returns. Daily rolling of futures contracts ensures that the average time-to-maturity in the UBS Bloomberg CMCI Index is kept permanently constant, unlike most traditional indices, which only roll once a month.

HISTORICAL PERFORMANCE AS OF JULY 2017 UBS Bloomberg CMCI Precious Metals (CMPMTR) Bloomberg Precious Metals Total Return (BCOMPRTR)

Normalized As of 1/3/2006

Source: Bloomberg, Bloomberg. Total Return indexes. Daily closing prices 12/31/2005—6/30/2017. CMCI data contains back-tested values from Nov 2000 to Jan 2007 and is live thereafter.

Close match to spot prices

• Due to near-perfect arbitrage in precious metals almost perfect correlation to spot prices

• In environment of scarcity, lease rates to outperformance

UBS BLOOMBERG CMCI PRECIOUS METALS INDEX ///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

GROWTH DRIVERS – DEMAND WEIGHTING Precious metals behave more like financial assets than commodities.

For commodities such as and , storage and are the dominant functions affecting global supply and demand as consumption does not necessarily result in “physical destruction” of the commodity.

For such commodities, consumption occurs principally through a transaction process without considerably reducing, at any time, the quantity of the commodity available.

Source: Bloomberg, Composition correct as for July 2017.

CMCI CHARACTERISTICS GOLD & SILVER OBSERVATIONS A benchmark for modern commodity investing, reflecting Gold – U.S. dollar weakness contributes to gold strength. the real of commodity markets. Silver – A higher beta version of gold, outperforming the yellow • Flexible – 29 components, 5 maturities moderately during periods of gold and silver strength, but falling much more rapidly than gold in times of weakness. • Diversification across commodities, futures tenors and roll dates

• Enhanced roll performance both in and Backwardation

Overview //////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// • Sector Benchmark Indices – Diversified • Single-Commodity Benchmark Indices across all commodities and tenors of a – All tenors of one commodity specific sector

• “Vertical” and “Bullet” Indices • Sectors – Energy, Industrial Metals, Precious Metals, Agriculture and Livestock

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For additional information and licensing opportunities, please contact: [email protected] or call +1 212 617 5020

bloombergindices.com

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Disclaimer: please refer to www.ubs.com /cmci. This material is issued by Bloomberg Finance L.P. and /or affiliates for use by institutional investors; not for private persons. This material is for distribution only under such circumstances as may be permitted by applicable law. It has no regard to the specific objectives, financial situation or particular needs of any recipient. It is published solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in the materials. It should not be regarded by recipients as a substitute for the exercise of their own judgment. Any opinions expressed in this material are subject to change without notice and may differ or be contrary to opinions expressed by other business areas or groups of Bloomberg or UBS as a result of using different assumptions and criteria. Neither Bloomberg nor UBS is under any obligation to update or keep current the information contained herein. UBS, its directors, officers and employees’ or clients may have or have had interests or long or short positions in the securities or other financial instruments referred to herein and may at any time make purchases and /or sales in them as principal or agent. UBS may act or have acted as market-maker in the securities or other financial instruments discussed in this material. Furthermore, UBS may have or have had a relationship with or may provide or has provided investment banking, capital markets and /or other financial services to the relevant companies. Neither UBS nor any of its affiliates, nor any of UBS’ or any of its affiliates, directors, employees or agents accepts any liability for any loss or damage arising out of the use of all or any part of this material. Options, products and futures are not suitable for all investors, and trading in these instruments is considered risky. Past performance is not necessarily indicative of future results. Foreign rates of exchange may adversely affect the value, price or income of any security or related instrument mentioned in this presentation. Prior to entering into a transaction you should consult with your own legal, regulatory, tax, financial and accounting advisers to the extent you deem necessary to make your own investment, hedging and trading decisions. Any transaction between you and UBS will be subject to the detailed provisions of the term sheet, confirmation or electronic matching systems relating to that transaction. UBS clients wishing to effect transactions should contact their local sales representative. Additional information will be made available upon request. This material contains data derived as a result of back-testing of data by UBS and such data is provided by UBS in good faith using its standard methodology for information of this kind. That methodology relies on proprietary models, empirical data, assumptions and such other information that we believe to be accurate and reasonable. Neither Bloomberg nor UBS makes, however, any representation as to the accuracy, completeness or appropriateness of such methodology and neither Bloomberg nor UBS accepts any liability for your use of the Information. Specifically, there is no assurance that other banks or brokers would derive the same results for the back-test . “Back-tested data”, “back-tested values” and “back-testing”, as used in this document, refers to simulated performance data created by applying the relevant index’s calculation methodology to historical prices of futures contracts that comprise the index. Such simulated performance data that has been produced by the retroactive application of a back-tested methodology, and may reflect a bias towards strategies that have performed well in the past. No future performance of the index can be predicted based on the simulated performance or the historical returns described herein. BLOOMBERG and UBS Bloomberg CMCI Agriculture Index are trademarks or service marks of Bloomberg Finance L.P. Bloomberg Finance L.P. and its affiliates (“collectively “Bloomberg”) or Bloomberg’s licensors own all proprietary right in the UBS Bloomberg CMCI Agriculture Index. Bloomberg does not guarantee the timeliness, accuracy or completeness of any data or information relating to UBS Bloomberg CMCI Agriculture Index. Bloomberg makes no warranty, express or implied, as to the UBS Bloomberg CMCI Agriculture Index or any data or values relating thereto or results to be obtained therefrom, and expressly disclaims all warranties of merchantability and fitness for a particular purpose with respect thereto. To the maximum extent allowed by law, Bloomberg, its licensors, and its and their respective employees, contractors, agents, suppliers and vendors shall have no liability or responsibility whatsoever for any injury or damages - whether direct, indirect, consequential, incidental, punitive or otherwise - arising in connection with UBS Bloomberg CMCI Agriculture Index or any data or values relating thereto - whether arising from their negligence or otherwise. Nothing in the UBS Bloomberg CMCI Agriculture Index shall constitute or be construed as an offering of financial instruments or as investment advice or investment recommendations (i.e., recommendations as to whether or not to “buy”, “sell”, “hold”, or to enter or not to enter into any other transaction involving any specific interest or interests) by Bloomberg or its affiliates or a recommendation as to an investment or other strategy by Bloomberg or its affiliates. Data and other information available via the UBS Bloomberg CMCI Agriculture Index should not be considered as information sufficient upon which to base an investment decision. Bloomberg and its affiliates do not express an opinion on the future or expected value of any security or other interest and do not explicitly or implicitly recommend or suggest an investment strategy of any kind. Web: www.ubs.com /cmci Bloomberg: BNDX ©2017 Bloomberg Finance L.P. All rights reserved. 52935562 0413