UBS Share Builders

Key Features

Ownership

You are the beneficial owner of the underlying shares.

Franking

Franking credits available to eligible investors.1

Purchase Price

The Purchase Price that you pay plus the Loan Amount that UBS lends to you are used to pay for the purchase of the underlying share and interest for the current Interest Period,.

Your Cash

Once you have paid the Purchase Price you are not required to contribute more cash to maintain your Loan over the full term of the UBS Investment Builder.

Dividends

Ordinary Dividends from the underlying shares will be used to reduce the Loan Amount under a UBS Share Builder.

Interest

Any future interest will be funded within the UBS Share Builders by periodic increases of the Loan. All or part of the interest paid should be tax deductible. Interest paid covers cost of Walkaway Feature as well.

Walkaway Feature

If the underlying share value is less than the Loan Amount at Maturity, the underlying shares will be transferred to UBS but you will not have to make any further payment to repay the Loan. This means you can borrow to invest without risk of defaulting on repayments.

Money at risk

Your maximum potential loss from buying UBS Share Builders is known upfront and is limited to the Purchase Price you pay.

SMSF

Superannuation fund investors can use UBS Share Builders as one of the few ways to borrow to invest in listed shares and ETFs.

Key Risks

Borrowing to invest carries risk, for example:

  • Leverage magnifies losses as well as gains
  • The underlying share price can go up or down
  • No capital protection - you can lose the entire Purchase Price paid
  • The Interest Rate may increase over time
  • Dividend income may be less than you expect
  • Tax laws may change
  • Early termination may occur at UBS's election on an Annual Interest Date or following certain Extraordinary Events
  • UBS and UBS Nominees Pty Ltd may default


For more information on these key risks, click here.

 


1See "Taxation Summary" in Part 8 of the Master PDS for more information on eligibility criteria.