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