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UBS Hindsight PIP - Series 1 Australian Equities

UBS Hindsight PIP - Series 1 Australian Equities
Rebate 2.00% (waiver of application fee)
Closing Date CLOSED
Maturity Date 07 Apr 2015
Minimum Investment $20,000
Research   Lonsec Recommended

   
Brochure
   

UBS Hindsight PIP (Protected Investment Product) - Series 1 Australian Equities


An investment linked to the performance of the S&P/ASX200 Accumulation Index over 5 years with 90% Limited Capital Protection. UBS Hindsight PIP - Series 1 also contains a look back feature to periodically lock-in a portion of index returns and may mature early if a pre-determined level of performance is achieved after 2.5 years.

An investment in UBS Hindsight PIP – Series 1 Units1 will provide investors with exposure to Australian equities based on the return of the S&P/ASX 200 Accumulation Index less a 5% p.a. Dividend Drag Amount along with a 90% Limited Capital Protection feature.

The comfort of 90% Limited Capital Protection

The aim of the 90% Limited Capital Protection is to preserve a pre-determined amount of your initial investment at Maturity, whilst still providing exposure to investment upside. The 90% Limited Capital Protection feature means that the Final Value at Maturity will be at least $0.90 per Unit regardless of the investment performance.2

The benefit of the Look-back feature

At the end of five years, investors will have the opportunity to benefit from a look back feature which will operate as follows:
 
1. during the term of your investment, the performance of the Reference Index (measured from the Issue Date) net of the Dividend Drag Amount will be observed on a semi-annual basis (this is the Dragged Reference Index Return)
2. the highest positive observation of the Dragged Reference Index Return becomes the High Water Mark
3. at Maturity, the Final Value per Unit will be at least $0.90. This is the 90% Limited Capital Protection feature
4. if the Dragged Reference Index Return is positive on the Maturity Date, the Final Value per Unit will be $0.90 plus the greater of the Dragged Reference Index Return and the product of the High Water Mark and the High Water Mark Participation Rate3

Potential to take profit with the early call feature

The UBS Hindsight PIP – Series 1 investment also offers investors an early call feature. Your investment will mature early after 2.5 years on the Call Date, if the Dragged Reference Index Return (measured from the Issue Date to the Call Date) is greater than 50% - this is a Call Event. If this occurs, you will receive a minimum Call Value per Unit of $1.40 (taking into account the 90% Limited Capital Protection, plus the 50% Dragged Reference Index Return).

Combined, the features of the UBS Hindsight PIP – Series 1 are designed so that:
 
1. you can take profit when your investment has performed well and is called early on the Call Date
2. if a Call Event does not occur, your Units will lock in any Reference Index performance above 5% p.a. on the pre-determined observation dates and reduce the potential of forgoing investment returns in subsequent periods of negative equity returns leading up to Maturity; and
3. if the Reference Index performs poorly over the Investment Term, the minimum Final Value per Unit will be at least $0.90.

Key benefits of UBS Hindsight PIP - Series 1 

Potential to generate capital growth by reference to a diversified Australian equities index.
Uncapped upside performance.
The comfort of 90% Limited Capital Protection at Maturity and on the Call Date4.
A High Water Mark observed semi-annually providing the potential to lock in a portion of any positive performance of the Reference Index in excess of 5% p.a. and reduce the potential of forgoing investment returns in subsequent periods of negative equity returns.
An investment with the potential to outperform – UBS Hindsight PIP Series 1 may outperform a direct investment in the Reference Index where the Reference Index Closing Level on the Maturity Date is less than 90% of the Index Starting Level or where there is a period of strong growth observed on a Semi-Annual Observation Date followed by a fall in the Reference Index leading up to Maturity.
The potential for a Call Event after 2.5 years with minimum Call Value of $1.40 per Unit.
Maximum investment term of 5 years.
Potential for weekly redemptions at UBS’s discretion.

For information on UBS Hindsight PIP - Series 1, you can download the PDS above.

1 Each investment is a Deferred Purchase Agreement, under which you agree to purchase the Delivery Parcel (consisting of the Delivery Assets) from UBS on a deferred basis. This delivery will occur following a Call Event or after the Final Maturity Date. Units are physically settled in your account in the form of a Delivery Parcel (ASX listed shares in BHP). The value of this Delivery Parcel will correspond to the Final Value per Unit of your UBS Hindsight PIP – Series 1
2 Issue Price per Unit is $1.00
3 The High Water Mark Participation Rate is determined by the Issuer on the Issue Date. As an indication, if the High Water Mark Participation Rate was set on the date of the PDS it would be 100%.
4 less any applicable Costs and Taxes and provided the units were acquired at the Issue Price during the Initial Offer Period, no Early Maturity Event occurs (other than a Call Event) and no UBS Buy-Back occurs.

The information contained herein (including the general advice, if any) has been prepared without taking account of your objectives, financial situation or needs and because of that, you should, before acting on the information, consider the appropriateness of the information, having regard to your objectives, financial situation and needs. You should obtain a Product Disclosure Statement relating to the product referred to herein and consider the Statement before making any decision about whether to acquire such product.

No information published on the UBS website constitutes a solicitation, offer or recommendation to buy or sell any financial products, to effect any transactions, or to conclude any legal act of any kind whatsoever. UBS makes no representation, either express or implied, that the information and opinions expressed on the UBS website are accurate, complete or up to date. Nothing contained on the UBS website constitutes financial, legal, tax or other advice and you should obtain advice from a qualified expert or financial adviser before making any investment decision.

Options, derivative products and futures are not suitable for all investors, and trading in these products is considered risky. Past performance is not necessarily indicative of future results.


Simply download an Investment Brochure/PDS above. It’s that easy!
 
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