UBS Investor Sentiment

Confidence remains high

Brazilian investors see a road to prosperity

Q4 2019

Confidence is higher than global peers

Own region's economy (next 12 months)

Brazilian investors are 72% optimistic vs investors globally are 67% optimistic about their region's economy.

Own region's stock (next 6 months)

Brazilian investors are 76% optimistic vs investors globally are 65% optimistic about their region's stock over the next six months

Optimism stems from improved business environment

56% believe it has to do with the low interest rate policy, 55% attribute to the increase in private investment, and 50% say the rate of job creation

But many remain concerned about important social issues

49% are concerned about the high unemployment rate. 42% say the Supreme Court decides against fight against corruption, 41% say political polarization is impacting business and consumer confidence.

Above average optimism for global economy and markets

Global economy (next 12 months)

Brazilian investors are 68% optimistic about the global economy, versus investors globally who are only 60% optimisitic.

Global stock (next 6 months)

Brazilian investors are 68% optimistic about global stocks over the next six months, versus 60% of investors globally are optimistic

Many prefer developed markets for investment opportunities ...

USA 66%, Europe 62%, Latin America 49%, Asia 59%

... and would like to know more about:

72% wants to know about generating yield income, 72% about diversification, and 70% about long-term investment themes including digital transformation, fintech, healthtech, and smart mobility.

Which strategies are Brazilians considering to increase yield?

80% are increasing holdings of structured investments with high yield, 78% own more high quality dividend paying stocks, and 73% increase holdings of emerging markets bonds with higher yield.

Top concerns to impede my financial goals

65% say tax increases, 64% say rising healthcare costs, and 63% say policatial enviornment in Brazil.

How investors plan to protect their portfolios

46% are adding alternative investments, 44% increase diversification acorss asset classes, and 41% use structured investments to manage risk,

Many look for safer options …

64% say "I will shift more into cash and/or safer options."

… and plan to move more assets offshore

50% say "I hold financial accounts offshore." and 62% say "I plan to increase my offshore investments by 6% or more in the next 2 years."

Business owner spotlight

28% say "I plan to sell, transfer or exit my business within 5 years." yet 52% say "I am concerned about developing a sound business succession plan"

About the survey

UBS surveyed 178 investors and 50 business owners in Brazil with at least USD 1M in investable assets (for investors) or at least USD 250k in annual revenue and at least one employee other than themselves (for business owners), from December 19, 2019 – January 12, 2020.

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Disclosures

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This document has been prepared by UBS AG, its subsidiary or affiliate (”UBS”). This document and the information contained herein are provided solely for informational and/or educational purposes. It is not to be regarded as investment research, or investment advice, a sales prospectus, an offer or solicitation of an offer to enter in any investment activity, to buy or sell any security, investment instrument, product or other specific service, or recommendation or introduction of any specific investment instrument or financial services or to effect any transactions or to conclude any legal act of any kind whatsoever. UBS makes no representation or warranty relating to any information herein that is derived from independent sources.

Approved and issued by UBS, this document may not be redistributed or reproduced in whole or in part or copies circulated without the prior written permission of UBS and no liability whatsoever for the actions of third parties in this respect is accepted. To the extent permitted by the law, neither UBS nor any of its directors, officers, employees or agents accepts or assume any liability, responsibility or duty of care for any consequences, including any loss or damage, of you or anyone else acting, or refraining to act, in reliance on the information contained in this document or for any decision based on it.

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