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Message From: Casriel, Lyle Sent: 6/27/2016 2:10:14 PM To: G Maxwell CC: Stockman, Scott ; Gutierrez, Matthew Subject: After the U.K. referendum: What's next? Attachments: brexit-democratic-failu.pdt 062616_Brexit_-_Whot_s_Next.pdf Ghi slaine, Friday's market reaction to the Brexit vote was clearly not expected by markets. With the vote as close as it was the margin of error in the polling data caught market participants off-guard. When events like this happen, we believe it's important to pause and assess as opposed to making a quick or emotional decisions. It is impossible to discount what happens next in Europe or in financial markets. Along with the shock of Thursday's results, there is also now some sentiment that the voting process and results could be contested in a second referendum down the line. There will clearly be effects from the UK's departure but this process won't happen to overnight. It will take years to understand and work out. There will be winners and losers and markets will need time to digest that information. Additionally there will be policy responses and political posturing that surely will move markets, the challenge is knowing who might say what at any given time and how the market may respond. Below is a note and links to timely research from our Chief Investment Officer, Mike Ryan. In addition we have attached an interesting article from Ken Rogoff of Harvard along with a helpful chart of the process for the UK from here. If you'd like to set up time to discuss these events, and how they impact your portfolio please let us know. Best, Lyle & Scott U.K. voters delivered an historic decision in choosing to leave the European Union. It's a move that has reverberated around the globe, further increasing market uncertainty and investor anxiety. However, We want to help you make sense of what it all means within the context of the larger economy, global financial markets and your own portfolio. We arc committed to staying on top of this rapidly developing event and its implications. Our analysts and strategists at CIO Wealth Management Research will continue to publish ongoing updates as events unfold. Their latest insights am included below: • CIO Note: Brexit—navigating the aftermath • Market alert: U.K. referendum implications • Listen to the replay from our special June 24 call: Replay dial-in: or Replay code: (note: please listen to the entire message) Important disclosure CIO Wealth Management Research is provided by UBS Financial Services Inc. UBS Financial Services Incorporated of Puerto Rico is a subsidiary of UBS Financial Services Inc. In Canada, CIO Wealth Management Research is provided by UBS Investment Management Canada Inc. The views expressed in the research provided do not constitute a personal recommendation or take into account the particular investment objectives, investment strategics, financial situation and needs of any specific individuals. They arc based on numerous assumptions. Different assumptions CONFIDENTIAL UBSTERRAMAR00002684 EFTA00238234 could result in materially different results. We recommend that you obtain financial and/or tax advice as to the implications (including tax) prior to investing. UBS Financial Services Inc. is registered with the U.S. Securities and Exchange Commission (SEC) as an investment adviser and a broker-dealer. UBS Financial Services Incorporated of Puerto Rico is registered as a broker-dealer. As a firm providing wealth management services to clients. we offer both investment advisory and brokerage services. Advisory services and brokerage services arc separate and distinct, differ in material ways and are governed by different laws and separate contracts. It is important that you carefully read the agreements and disclosures UBS provides to you about the products or services offered. For more information. please visit our vvebsite at wvivv.ubs.com/workingwithus. CUBS 2016. All rights reserved. UBS Financial Services Inc. is a subsidiary of UBS AG. Member FINRA/SIPC. All other trademarks. registered trademarks, service marks and registered service marks are of their =Naive companies. UBS Financial Services Inc. ubs.com/fs CONFIDENTIAL UBSTERRAMAR00002685 EFTA00238235