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UBS PERLES+ Series 3 and 4

UBS PERLES+ Series 3 and 4
Rebate 0.5% (Series 3)
1.0% (Series 4)
Closing Date CLOSED
Minimum Investment $25,000
Research   Lonsec Approved Rating


Outperformance in a sideways market


UBS PERLES+ offers investors exposure to the top 200 ASX companies with the benefits of a minimum fixed return and Conditional Protection at Maturity (subject to Barrier Event)

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.


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

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