Investment summary
The S&P/ASX 200 Index provides
exposure to the largest listed Australian
companies. If you are looking for a
diversified investment and believe that
Australian shares represent good medium
term value, UBS PERLES+ provides
the benefits of capital growth, with
conditional downside protection and a
minimum Conditional Return at Maturity.
Product description
The PERLES+ structure aims to take
advantage of any positive performance of
the underlying investment. PERLES+ also
offers Conditional Protection at Maturity,
provided the 65% Barrier Level has not
been breached. The performance is
directly linked to the Reference Asset—
the S&P/ASX 200 Price Index.
For Series 3, the Conditional Return 1
paid to investors in 14 months will be
a minimum of 7% (it will be set on the
Strike Date and may be higher—e.g. at
the date of the PDS it would have been
9%). In addition, investors will receive
all of the capital growth of the S&P/ASX
200 Price Index at Maturity beyond this
level, up to a maximum of 25%. This
means that as long as the S&P/ASX 200
stays above 65% of its starting level, you
are certain to earn at least 7% over the
Investment Term and up to 25%.
For Series 4, the Conditional Return1
paid to investors in 30 months will be a
minimum of 20% (it will be set on the
Strike Date and may be higher—i.e. at
the date of the PDS it would have been
23.5%). As there is no cap on the upside
performance of Series 4, investors will
receive all of the upside growth of the
S&P/ASX 200 Price Index at Maturity
beyond this level. This means that as long
as the Index remains above 65% of its
starting level, you will earn at least 20%
over the Investment Term with no upper
limit on capital growth.
It is important to note investors will forgo
any dividends in both series.
|
Issuer |
UBS AG, Australia Branch
ABN 47 088 129
613, AFSL 231087 |
|
Initial Offer Period Open |
8 January 2009 |
|
Initial Offer Period Close |
12 February 2009 |
|
Issue Date/Strike Date |
18 February 2009 |
|
Reference asset |
S&P/ASX 200 Price Index |
|
Investment Term |
Series 3: 14 months
Series 4: 30 months |
|
Maturity Date |
Series 3: 19 April 2010
Series 4: 18 August 2011 |
|
Barrier Level |
65% of Reference Index (to be fixed
on Issue Date) |
|
Minimum Conditional Return1
(provided the Barrier Level has not been breached) |
Series 3: minimum 7.0% at maturity
(6.0% per annum)
Series 4: minimum 20% at maturity (8.0% per annum) |
|
Indicative Conditional Return (as at
8 January 2009—will be set on Strike Date) |
Series 3: 9.0% at maturity (7.7% per
annum)
Series 4: 23.5% at maturity (9.4% per annum) |
|
Minimum investment |
AUD 25,000 |
Investors should obtain a copy of the PDS and read it carefully prior to making decision to invest in UBS PERLES+ Units. A copy of
the PDS is available above.
|
Main benefits of
investing
|
|
• |
Diversified broad based
index exposure |
|
• |
Attractive Conditional
Return 1, subject to Barrier
Event |
|
• |
Conditional Protection 1,
subject to Barrier Event, at
Maturity |
|
• |
Tax efficient as investment
returns on capital account
may be eligible for CGT
discount |
|
• |
Weekly liquidity available
(at UBS’ discretion) |
Note:
1 The Conditional Return and Conditional
Protection are subject to a Barrier Event. A Barrier Event
occurs if, during the Investment Term, the underlying value
of the S&P/ASX 200 Index trades at or below 65% of its
starting value. In that case, the investor loses the
Conditional Protection and the Conditional Return, and
assumes all upside and downside risk on the S&P/ASX 200
Index until Maturity. The actual Conditional Return will be
set on the Strike Date and will not be less than the minimum
Conditional Return. Capitalised terms in this brochure have
the meaning given to them in the PDS. Please read the PDS in
full before making any investment decision.
|
Investment rationale
|
|
• |
Minimum
Conditional Return:
Investors may be seeking to
generate higher returns and
participate in further
upside growth |
|
• |
Conditional
Protection: The
investment provides a safety
cushion with limited
downside protection to the
Barrier Level (65%) |
|
• |
Market
conditions: PERLES+
allow you to make profits in
a variety of market
conditions. The Conditional
Return will be paid unless
the 65% Barrier Level is
breached |
|
• |
Simplicity
and diversification:
Transparent and efficient
access to a diversified
investment opportunity |
|
• |
Taxation
treatment: Investment
returns at Maturity may be
eligible for the CGT
discount if the investment
is held for at least 12
months |
|
Client suitability
|
|
• |
You are an
experienced investor and are
familiar with direct
equities and structured
products |
|
• |
You are
looking for a diversified
Australian equities
investment exposure |
|
• |
You are
looking to re-enter the
Australian share market
however would like some
downside protection |
|
• |
You are
looking to enhance your
portfolio performance in a
variety of market conditions |
|
• |
You do not
require a regular income
stream from your investment,
as no dividends are paid
from this investment |
|
• |
Australian
resident taxpayers |
|
Risks
|
|
• |
The PERLES+
safety cushion provides
Conditional Protection at
Maturity (it is subject to
the 65% Barrier Level not
being breached) |
|
• |
Conditional
Protection does not apply if
you exit prior to Maturity |
|
• |
You may be
exposed to the full downside
risk of the S&P/ASX 200
Price Index if the 65%
barrier is breached |
|
• |
Limited
Liquidity (at the discretion
of UBS) |
|
• |
Credit
default risk of the Issuer
(UBS AG, Australia Branch) |
PERLES+ Units are offered by UBS AG, Australia Branch pursuant to a Product Disclosure Statement dated 8 January 2009 (“the Offer”).
This document has been prepared by UBS AG, Australia Branch for the sole purpose of assisting those recipients to evaluate their interest
in the Offer. All potential investors must rely solely on the Product Disclosure Statement when making a decision to participate in the Offer.
This document contains information that does not constitute an offer, invitation, solicitation or recommendation to purchase the Units nor
does it constitute financial product advice. Any prices or quotations contained herein are indicative only. All potential investors must seek
independent tax advice. This communication is not research. It is for informational purposes and is not an official confirmation of terms. It is
not guaranteed as to accuracy, nor is it a complete statement of the financial products or markets referred to. Opinions expressed are subject
to change without notice and may differ or be contrary to the opinions or recommendations of UBS Investment Research or the opinions
expressed by other business areas or groups of UBS as a result of using different assumptions and criteria All recipients acknowledge that all
investments, including the Units, are subject to risk and past performance is not indicative of future performance. Additionally, all recipients
acknowledge and agree that all information contained in this document should be treated as confidential and must not be copied, circulated,
transcribed, sent to any third parties or made public in any way without the prior written consent of UBS AG. UBS AG or any affiliate of either
(together “UBS”) takes any responsibility for errors or omissions in this document arising out of negligence or otherwise. |
