1. Why UBS Global Asset Management For Global Bonds
Globally resourced organisation covering the world’s major financial centres
Long established and proven experience in managing global government bond portfolios with opportunistic use of spread sectors
Globally integrated quantitative tools are used at all stages of the investment process.

2. Our Approach Is Supported By…
…Fully Integrated, Proprietary, Quantitative Tools
Government valuation model1
Credit valuation model1
Spread Factor model
Mortgage model
Currency valuation model1
Risk model
1 Integrated valuation models (‘Valmod’)

3. The Application of Seasoned Judgement
Within the Global Fixed Income Investment Process
Valuation models allows us to calibrate the extent of market misvaluation
Key inputs are clearly identified
Cyclical and secular changes can be incorporated
Provides a baseline for further consideration
Seasoned judgement is key in the strategy setting process and overlays model output, taking into account:
Views and judgements of the regional teams
Market dynamics
Likely catalysts for change?
Timescales involved
The levels of investment risk required
Valuation model output
‘Fair values’ at equilibrium
Seasoned judgement
Incorporating shorter term factors
Investment strategy setting
Model portfolios

4. Global Bond: Strategy Summary
June 30, 2003
GLOBAL BOND PORTFOLIO
Market
Allocation
Currency
Allocation
Interest Rate
Sensitivity/ Duration
Sector/
Security
Market Currency Allocation Index1 Allocation
Relative Duration Strategy
North America 22.1% %
Europe - EMU
Europe Other Europe
U.K
Japan
Australia
100.0% 100.0% 100.0%
U.S x
Australia 0.70
Canada 0.80
Denmark 1.00
EMU 0.90
Sweden 0.80
Japan 0.75
U.K. 1.00
Cash & Equiv. 0.6%
Gov’t./Agencies 78.9
Corporates 5.1
Mortgages 8.9
Asset-Backed 3.7
Supranationals
Provincial
Totals 100.0%
1 Citigroup World Government Bond Index as of 6/30/03
Totals may not add due to rounding

5. Global Bond Portfolio: Current Strategy
For Periods Ending June 30, 2003
1 Citigroup World Government Bond Index as of 6/30/ Totals may not add due to rounding.

6. Global Bond Portfolio: Duration Strategy
June 30, 2003

7. Global Bond Portfolio: Market Allocation
For Periods Ending June 30, 2003
1 Citigroup World Government Bond Index as of 6/30/03 Totals may not add due to rounding. Strategy ranges expressed with an explicit “+” or “-” sign are relative to the benchmark.