UBS Perles+

Investing in sideways markets with the benefit of upside

This is a summary only – potential investors should obtain a copy of the relevant offer document before making a decision to invest in any of the UBS PERLES+ series.

General product description

The PERLES+ structure can provide you with exposure to an underlying asset – e.g. a stock, basket of stocks, an equity index, while at the same time avoiding exposure to the negative performance of the underlying asset provided that none of the underlying asset(s) touch or fall below a pre-determined barrier level at any time up to maturity. If the barrier level is not touched or breached at any time prior to maturity, the final value of your investment at maturity will be at least equal to the issue price plus a ‘Conditional Return’ (a fixed percentage of the issue price). Investors receive this benefit as they forego the distributions on the underlying asset (compared to a direct holding of the asset) and assume the risk of losing their invested capital should the underlying asset price(s) fall to or below barrier level.

The following is an example that helps explain how a typical series of UBS PERLES+ works [1]:

If the price of the underlying asset never touches or falls below the Barrier Level at any time prior to expiry, the final value of a Perles+ unit will be the greater of:

a) The issue price plus a Conditional Return i.e. a fixed percentage of the issue price (e.g. 10% for the term of the investment);

OR

 b) the issue price plus the return on the underlying asset over the investment term (e.g. measured from the issue date to the maturity date) multiplied by the issue price.

 If, however, the barrier level is touched or breached at any point prior to maturity, the final value at maturity will depend on the performance of the underlying asset, i.e. the issue price less the return on the underlying asset over the investment term multiplied by the issue price. In that scenario, the final value can be higher or lower than the issue price depending on whether the return on the underlying asset is positive or negative.


[1]: Please check the offer document specific to the relevant series of Goals for the product details including payoff profile, Fixed Payment Rates and others.

You may consider investing in a PERLES+ product if you

  • Are an experienced investor familiar with the relevant underlying asset(s) and structured products;
  • Have an expectation of flat, rising or slightly falling prices of the underlying asset(s) during the term of the investment;
  • Take time to actively monitor the price(s) or level(s) of the underlying(s)

Key benefits of investing in UBS PERLES+

  • Attractive Conditional Return, subject to a barrier level not being touched or breached during the term of the investment;
  • No exposure to the negative performance of the underlying asset provided the barrier level is not touched or breached and the investment is held to maturity;
  • Attractive investment opportunity in sideways, rising or slightly falling markets in the underlying asset(s);
  • May help to diversify an investor’s risk/return profile;
  • Weekly liquidity available (at UBS’ discretion)

Key risks of investing in UBS PERLES+

  •  If a barrier level is touched or breached, you may be exposed to the full downside risk of the underlying asset(s);
  • Please note there is NO capital or principal protection of the investment amount in this class of products. Investors who want to invest in a product with that feature should not consider an investment in Perles+;
  • Even if a barrier level has not been breached, you may be exposed to the negative performance of the underlying asset if you exit prior to maturity or if an early maturity occurs under the terms of the product;
  • Limited liquidity (at the discretion of UBS);
  • Any payments under the PERLES+ products or delivery of assets are subject to the creditworthiness of the Issuer and Guarantor (if applicable) of the product, which is set out in the offer documents for each investment.

This is not a full list of the risks of investing. You should read the description of the risks in the relevant offer documents before making a decision to invest.

This information has been issued by UBS AG Australia Branch (ABN 47 088 129 613, AFSL 231087) (UBS) for information purposes only recommends that Investors obtain the Product Disclosure Statement (PDS) or other offer documentation for the relevant series of PERLES+ and read it before making a decision to acquire Units. The PDS is available from UBS by calling 1800 633 100 or via http://keyinvest-au.ubs.com/EN/Showpage.aspx?pageID=218.

This information does not take into account your investment objectives, financial situation or particular needs. Accordingly, nothing on this page or the relevant offer documents is a recommendation by UBS or its related entities or by any other person concerning investment in Perles+ and before acting on this information, you should consider its appropriateness having regard to your situation. We recommend that you not only consider the information in the relevant offer documents but also obtain independent financial, legal and taxation advice as to the suitability of an investment in Perles+ for you (bearing in mind your investment objectives, financial situation and particular needs). An investment in Perles+ is only available to persons receiving the relevant offer documents in Australia. The relevant offer documents does not constitute an offer of Perles+ investment in any place in which, or to any person to whom, it would not be lawful to make such an offer. The distribution of the relevant offer documents in jurisdictions outside Australia may be restricted by law and any person who resides outside Australia into whose possession this information comes (including nominees, trustees or custodians) should seek advice on and observe those restrictions. Perles+ may not be offered or sold in the United States of America (US) or to, or for the account of or benefit of, US persons. Accordingly neither the relevant offer documents, nor the Application Form may be sent to persons in the US or otherwise distributed in the US. UBS and its related entities, and their directors and employees may have pecuniary or other interests the securities or components comprising the underlying reference assets.

UBS AG, Australia Branch is a foreign Authorised Deposit-Taking Institution (foreign ADI) under the Banking Act 1959 (Cth), and is supervised by the Australian Prudential Regulation Authority. It is important for you to note that your investment is not a deposit product or other deposit liability and is not covered by the depositor protection provisions in the Banking Act 1959 (Cth).

In any event, provisions in the Banking Act 1959 for the protection of depositors do not apply to foreign ADIs including UBS AG, Australia Branch. For example, depositors with foreign ADIs do not receive the benefit of the following protections:
- Deposits are not covered by the financial claims scheme and are not guaranteed by the Australian Government.
- Deposits do not receive priority ahead of amounts owed to other creditors. This means that if a foreign ADI was unable to meet its obligations or suspends payment, its depositors in Australia would not receive priority for repayment of their deposits from the foreign ADI's assets in Australia.
- A foreign ADI is not required to hold assets in Australia to cover its deposit liabilities in Australia. This means that if the foreign ADI was unable to meet its obligations or suspends payment it is uncertain whether depositors would be able to access the full amount of their deposit.

UBS Securities Australia Limited is an Australian Financial Services Licensee under the Corporations Act (Licence No. 231098). It is a participating organisation of ASX Limited ("ASX"), a participant of Australian Clearing House Pty Limited (the clearing and settlement facility for the derivatives markets operated by ASX) and a participant of CHESS (the clearing and settlement facility operated by ASX Settlement and Transfer Corporation Pty Ltd). UBS Securities Australia Limited is a wholly owned and non-guaranteed subsidiary of UBS AG. UBSSAL is not an Authorised Deposit-Taking Institution under the Banking Act 1959 (Cth). The obligations of UBSSAL do not represent deposits or other liabilities of UBS AG, and UBS AG does not stand behind, support or guarantee UBSSAL in any way.

UBS Investments Australia Pty Ltd is a wholly owned subsidiary of the UBS AG group. The obligations of the Issuer to pay sums and to deliver amounts and assets in respect of the Units are guaranteed by UBS AG, Zurich (the “Guarantor”) subject to certain qualifications set out in the relevant PDS. The Issuer is not an Authorised Deposit-Taking Institution under the Banking Act 1959 (Cth). Units are not deposit products and will not be covered by the depositor protection provisions set out in Division 2 of the Banking Act 1959 (Cth).

 For more information regarding UBS Perles+ Series, please contact: UBS Structured Investments on 1800 633 100