1. ab UBS Financial Services Inc. Mark Fasano Ian Goldey
Orcutt Fasano Wealth Management Group Managing Director Vice President–Investments
Advisory & Brokerage Services Private Wealth Advisor Senior Portfolio Manager
15821 Ventura Boulevard, Suite 670 818-377-8895 mark.fasano@ubs.com Portfolio Management Program
Encino, CA 91436 818-377-8817 ian.goldey@ubs.com
John E. Orcutt
Jason Krischer, CFP®
www.ubs.com/team/ofgk Managing Director
ofgk@ubs.com Private Wealth Advisor Account Vice President
818-377-8899 john.orcutt@ubs.com 818-377-8860 jason.krischer@ubs.com
All Cap Core Strategy through the
Portfolio Management Program (PMP)
Portfolio Managers
Left to right: Mark Fasano, Ian Goldey,
John E. Orcutt, Jason Krischer
Investment Philosophy: Focus on producing a positive total return across a variety of asset classes and investment vehicles. The
objective is to achieve a total return through a combination of dividends, distributions and capital appreciation using an opportunistic
approach based on market conditions.
Portfolio Construction: Traditional equities and cash will be the core of the portfolio, and up to 45% of the portfolio might include
closed-end funds (CEFs), equity or bond based, and exchange traded funds (ETFs). For select accounts, covered call writing is an
optional feature.
Equity Style: The portfolio does not fall into a pure category for value or growth, or market capitalization, but is an opportunistic All-
Cap Strategy. The portfolio seeks equity investments to potentially hold for a year or more, with target annual returns exceeding 10%.
Target returns are not guaranteed and do not indicate past performance.
Closed-End Funds (CEFs): On occasion, opportunities exist in the purchase of CEFs when discounts to net asset value (NAV) increase
beyond the historical average. NAV is the sum of the parts value of the fund, priced daily. The portfolio may achieve total return three
ways when buying discounted CEFs.
• the yield and current distribution of the fund
• the narrowing of discount to NAV
• the underlying appreciation of the NAV
Exchange Traded Funds (ETFs): The diversified nature of ETFs helps to mitigate the risk of single stock volatility.
ETFs offer sector-specific opportunities, such as in nuclear, clean energy, biotech, infrastructure, gold and Treasury Inflation-Protected
Securities (TIPS). ETFs also offer exposure to broad U.S. and international indexes, such as the S&P 500, Nasdaq 100, Nikkei, EAFE, etc.
Research: A team approach utilizing both proprietary and independent research. The team first filters the various opinions down to
sector and allocation targets and then decides to over/underweight a sector versus the S&P 500 based on our opinions. The team then
decides on an individual position or an ETF (or combination) to be a representative investment for a particular sector. Some team filters
include:
• market capitalization • short-term and long-term debt
• future earnings—mean estimates • analyst coverage
• enterprise value • dividends—current, historical increase or future jeopardy
• insider buys/sells • corporate buyback
• daily volume • technical—consolidating/resistance/support/historical
• basic fundamentals—what they sell or service and the ability for that to continue and expand
• fundamental catalyst—consolidation, spinoffs, new product rollout
Our tenure and experience afford us access to other professional money managers, which expands our universe of knowledge and
opinions. Our process dictates seeking the counterargument to our current opinions, to gain perspective and possibly see opportunities
or dangers we might not have seen otherwise.
Buy/Sell Discipline: Buy and sell disciplines are based on proprietary internal targets and support levels. A trigger

2. of these predefined levels creates a team assessment to hold/trim/ should be very clear about the process. Clients who do not want a
buy/sell. position altered in any way should keep that position outside of the
All Cap Core portfolio, in a non-managed account.
Benchmarks: The portfolio is an All Cap Core style, which affords
Personalized: Individuals or organizations may have personal or
us the flexibility in choosing various investment classes and specific
issues. The S&P 500 index is not an exact comparison, but gives mandated restrictions of what investments
clients the best measure against a diversified equity fund and is a may be purchased, and with this knowledge the team
common proxy of the entire U.S. stock market. can block the purchases of individual stocks or sectors.
This customized ability is found on the PMP application under:
Fees and Costs: The portfolio is managed under restrictions. Individuals or corporate clients may want to
UBS Financial Services Inc.’s Portfolio Management avoid exposure to competitors in their industry or might have
Program (PMP). PMP accounts are discretionary concentrated positions with a stock or sector that they don’t want
and charge one inclusive flat fee, paid quarterly, increased.
in advance, based on net asset value.
Performance and Reporting: The portfolio was started January
• There are no front-end sales charges or termination fees.
• There are no transaction or exchange costs. 2009, and has no historical performance. Individual account
• There are no profit sharing fees. performance is available daily, monthly, quarterly or yearly and
• There are no additional or hidden costs. includes options such as performance net of fees. Reporting is
• Margin is not used for additional leverage. available online and in paper form for monthly and quarterly
statements. Clients may also opt to have confirmations bundled
Can only state the maximum fee rate and there is no monthly, and may opt to go paperless as well.
additional fee for covered call writing.
Turnover: Turnover depends upon market volatility and price Liquidity: Once full or partial liquidation requests are submitted,
targets. Turnover is not a primary consideration based on the total- proceeds will be available on standard T+3 trading days. The
return focus of the portfolio. portfolio has no liquidity constraints or lock-up period.
Taxation: Accounts are segregated between taxable, tax-free and Covered Call Writing: An enhancement offered to select accounts
tax-deferred. The team evaluates the tax characteristics of each based on the size of the account and overall relationship. The
position before it is purchased term covered refers to a position that is already owned, and we
or sold. Each position is held individually in each account with its are writing an option for someone else to buy. We are the sellers,
own cost basis; there is no pooling of assets. not the buyers of the option. The buying of options is categorized
UBS Financial Services does not provide tax advice; as aggressive and the selling of covered calls is categorized as
please seek the counsel of your own professional. conservative.
Funding: Clients can fund a portfolio using cash, securities, or a UBS Financial Services Inc. has an educational paper on this subject that
combination of both. Securities deposited in lieu of cash may be the team will make available to all such accounts, plus we provide a
held or sold at the full discretion of the portfolio manager. UBS is brochure from the CBOE on options.
not responsible for the taxable events related to sales of deposited
Shorting: Shorting of any type is not allowed in
securities. Clients transferring positions from taxable accounts
the portfolio.
PMP is a wrap fee advisory program in which our Financial Advisors manage client accounts on a discretionary basis. PMP is designed for clients who (i) want to
delegate portfolio management discretion to their Financial Advisor; (ii) are looking to implement a medium to long-term investment plan; and (iii) prefer the
consistency of fee-based pricing.
PMP is not appropriate for clients who: (i) want to maintain trading control over their account; (ii) seek a short-term investment; (iii) want to maintain consistently
high levels of cash, money market funds, or invest primarily in load-waived or no-load mutual funds; (iv) want to maintain highly concentrated positions that will
not be sold regardless of market conditions; or (v) who anticipate significant withdrawals from the account.
Mutual funds and exchange traded funds are sold by prospectus. For more complete information about a fund, including the investment objectives, charges,
expenses and risk factors, contact your Financial Advisor for a free prospectus. The prospectus contains this and other important information that you should read
and consider carefully before investing.
Investors should be aware that the value of mutual funds and exchange traded funds changes from day to day. Therefore, an investment’s return and principal
value will fluctuate so that an investor’s shares, when redeemed or sold, may be worth more or less than their original cost.
The strategy involves investments in exchange traded funds and other pooled investment vehicles which carry internal management and administrative expenses
borne by shareholders. Those fees are in addition to the advisory fee you pay for the Portfolio Management Program. Program fees will not be reduced or offset
by these fees. These additional fees will reduce the overall return of your account. You may be able to purchase those securities directly in the open market
without incurring the program fee. Please review the applicable prospectus and offering documents carefully for a detailed description of the additional fees
associated with these securities.
The fees and/or commissions charged by us for the Portfolio Management Program are negotiable and may differ from client to client based on a number of
factors. These factors include, but are not limited to, the type and size of the account, and the number and range of supplemental advisory and client-related
services to be provided to the account.
Neither UBS Financial Services Inc. nor any of its employees provide legal or tax advice. Please consult with your legal and/or tax advisors about your personal
circumstances. This circular does not take into consideration specific investment objectives, financial situations or particular needs of any specific investor.
As a firm providing wealth management services to clients in the U.S., we offer both investment advisory programs and brokerage accounts. Advisory services
and brokerage services are separate and distinct, differ in material ways and are governed by different laws and separate contracts. For more information, please
visit our website at www.ubs.com/workingwithus.
CFP® is a certification mark owned by Certified Financial Planner Board of Standards, Inc.
UBS Financial Services Inc. is a subsidiary of UBS AG.
©2009 UBS Financial Services Inc. All rights reserved. Member SIPC. OrcuttFasano_Cap Core Circular PMP