UBS Share Builders

Hypothetical Examples

The following hypothetical examples are used for illustrative purposes only and actual underlying share price performance, Dividends and Interest Amounts may be significantly different to what is shown here.

Hypothetical Example 1 - UBS Share Builder - positive performance

  • Dividends exceed Interest and reduce the Loan Amount over time
  • Underlying share price appreciates thereby increasing the Equity Value
  • Percentage increase in Equity Value exceeds the percentage increase in the underlying share price due to the effect of leverage

Hypothetical Example 2 - UBS Share Builder - negative performance

  • Dividends are less than Interest so the Loan Amount increases over time
  • underlying share price depreciates to less than the Loan Amount at Maturity (i.e. Net Expiry Value and Equity Value at Maturity is zero)
  • Zero Equity Value means the Holder has lost the entire amount invested, but unlike full recourse loans the Walkaway Feature means the Holder does not have to  repay the Loan out of their own money