UBS Investor Watch Indicates Increasing Investor Confidence Despite Concerns Around Washington, Affordable Long-Term Care

  UBS Investor Watch Indicates Increasing Investor Confidence Despite Concerns
  Around Washington, Affordable Long-Term Care

Business Wire

NEW YORK -- January 17, 2013

UBS Wealth Management Americas today released its second UBS Investor Watch
report providing insights on core affluent and high net worth investor
sentiment. The survey shows that, despite being increasingly concerned about
the political environment in Washington and their personal ability to afford
long-term care, investors are feeling better about their own financial
situation. UBS Investor Watch indicates that long-term care concerns have
surpassed retirement issues as the most critical of investors’ personal
finance worries for the future. Still, investor confidence in their personal
financial situations was at higher levels in January than before the U.S.
elections.

“The continued uncertainty in Washington is having a tremendous effect on
investors,” said Paula Polito, Client Strategy Officer of UBS WMA. “Today, we
are seeing long-term care trump retirement as investors' number one personal
concern. The need for advice is even more critical in this environment.”

Highlights from the January 2013 UBS Investor Watch report include:

  * The political environment in Washington caps investors' list of top
    concerns: Three in four investors (76%) are worried about the political
    environment in Washington, with 60% stating they are dissatisfied with the
    recent Congressional agreement to avert the fiscal cliff.
  * Government “kicking the can” impacts willingness to invest, return
    expectations and long-term outlook: 60% of investors are dissatisfied with
    the fiscal cliff agreement, and 90% feel the deal did not do enough to
    address the national debt problem. With that in mind, investors indicated
    a decline in long-term economic optimism, and they are continuing to adopt
    a wait-and-see mindset toward investing as Washington works through
    outstanding fiscal cliff issues.
  * Long-term care trumps retirement as biggest personal concern: The ability
    to afford healthcare/support in old age is the top concern among
    investors, with 26% agreeing it's their main worry versus 14% who said
    having enough money for retirement was their primary fear. Nearly three in
    four investors (73%) listed “staying healthy / fit” among their top three
    objectives, versus one in four (26%) who said the ability to retire when
    and how they want is a top-three goal.
  * However, investors feel more confident about their own financial situation
    than three months ago: 56% of investors say they feel “very good” or
    “excellent” about their financial situation, compared with 44% as
    indicated in the October 2012 Investor Watch report. And investors who
    consistently follow their own financial plan feel markedly better about
    their finances, with 73% saying they feel “excellent” and “very good.”
  * Finally, investors believe that advice is central to achieving goals in
    this environment: Overall, 68% say receiving good advice is highly
    important to achieving their goals. And in particular, relating to recent
    events – post-election and prior to the fiscal cliff – investors were
    twice as likely to take action if they spoke with their advisors about
    these topics. Among investors who sought advice about the election, 76%
    were highly satisfied with the advice they received.

The UBS Investor Watch survey was conducted among 2,056 investors, including
current UBS clients. Investor Watch will continue to track overall investor
objectives and concerns toward U.S. economic factors, as well as geopolitical
events, each quarter. To download a copy of the January 2013 UBS Investor
Watch report, please visit:

http://financialservicesinc.ubs.com/staticfiles/pws/adobe/InvestorWatch_1Q2013.pdf

Notes to Editors

About UBS Wealth Management Americas

UBS Wealth Management Americas provides advice-based relationships through
financial advisors who deliver a fully integrated set of products and services
specifically designed to address the needs of ultra-high net worth, high net
worth and core affluent individuals and families. It includes the Wealth
Management US business, the domestic Canadian business and the international
business booked in the United States.

About UBS

UBS draws on its 150-year heritage to serve private, institutional and
corporate clients worldwide, as well as retail clients in Switzerland. Its
business strategy is centered on its pre-eminent global wealth management
businesses and its universal bank in Switzerland. Together with a
client-focused Investment Bank and a strong, well-diversified Global Asset
Management business, UBS will expand its premier wealth management franchise
and drive further growth across the Group.

UBS is present in all major financial centers worldwide. It has offices in
more than 50 countries, with about 35% of its employees working in the
Americas, 36% in Switzerland, 17% in the rest of Europe, the Middle East and
Africa and 12% in Asia Pacific. UBS employs about 64,000 people around the
world. Its shares are listed on the SIX Swiss Exchange and the New York Stock
Exchange (NYSE).

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