Global variant now available in addition to European and Asian funds

UBS is now offering a new, global convertible bond fund for subscription, UBS (Lux) Bond Sicav - Convert Global (USD) B (securities no. 1 976 715). The launch period will run until 18 November 2004. The initial subscription price is USD 10 and the payment date is 23 November 2004.

Convertible bonds are attractive financial instruments that combine the benefits of two asset classes: the price potential of equities and the defensive characteristics of bonds. They offer investors the opportunity to benefit from the upside potential of the stock markets while enjoying a certain degree of protection against falling share prices in an uncertain market environment. Investors with a mid- to long-term investment horizon and medium risk tolerance may consider investing in this fund.

This new fund exploits the beneficial risk/return characteristics of the global convertible bond markets. The portfolio is broadly diversified across regions, countries, sectors and various rating classes. At the time of the launch, the majority of investments are in companies from the investment-grade segment (Standard & Poor's ratings of between AAA and BBB-), while securities with lower credit ratings are selectively added. The average rating of all securities held in the portfolio at launch therefore is BBB. In line with its policy of global diversification, the fund invests in various currencies - primarily in USD, EUR and JPY. It does not systematically hedge currency risk, but does so based on market conditions and its assessment of future developments, thus opening up further potential returns via professional currency management.

UBS is expanding its existing convertible bond fund range by adding this new global variant to its European (UBS Convert Europe) and Asian (UBS Convert Asia) products.

Zurich/Basel, 12 November 2004
UBS