UBS Goals

Investing in flat markets

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 Goals series.

General product description

UBS Goals can offer attractive income returns when the market in a particular underlying asset are “flat” or “sideways-moving”, compared with a classic buy-and-hold strategy. If you are comfortable with exposure to a particular underlying asset(s) but expect returns to remain relatively flat, you can enhance your potential portfolio yield by investing in UBS Goals. The payoff for this structure involves paying investors a fixed payment for taking downside risk on the underlying assets(s) and foregoing upside gains.

Goals products can be created over a number of different underlying assets including (but not limited to) ASX listed shares, foreign listed shares and equity indices. Where the underlying asset is a basket of assets rather than a single asset, low correlation (i.e. the relationship between the movements in the prices of each basket component) will generally produce a higher fixed return.

On the issue date a return is fixed, expressed as a percentage of the issue price of the investment (the “Fixed Payment”). The investor will receive this Fixed Payment on the maturity date regardless of the price of the underlying asset(s) at maturity.

Also on the issue date, a “Starting price” is set as 100% of the current price and a “Kick-In Price” is set for each underlying asset as a certain percentage of the Starting e.g. at 70% of the Starting price. UBS Goals is not impacted by a fall in the price of the underlying assets down to (but not including or below) the Kick-In Price provided the product is held to maturity. If however one or more of the reference underlying(s) prices is at or below their respective Kick-In Price at maturity, the investment will be exposed to the negative performance of the lowest performing underlying asset.

The following is an example that helps explain how a typical series of UBS Goals works¹

The possible payoffs at maturity are as follows:

1) If all of the underlying assets are above their respective Kick-in Price at maturity of the product, the final value of UBS Goals investment at maturity will be equal to the issue price plus the investor will be paid the Fixed Payment at maturity;

Or
 

2) If the price of one or more of the underlying assets is at or below its Kick-in Price at maturity, the final value of UBS Goals investment at maturity will be equal to the issue price reduced proportionately by the decrease in the price of the worst performing underlying asset. The investor will still be paid the Fixed Payment at maturity.

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 UBS Goals if you:

• Are an experienced investor familiar with the relevant underlying asset(s) and structured products;
• Have an expectation of flat, slightly 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 Goals

• Payment of attractive Fixed Payment at maturity;
• 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, slightly 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 Goals

• If any of the underlying assets has fallen to or below its Kick-In Price at maturity, you may be exposed to the full downside risk of the underlying asset(s);
• 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 Goals;
• Even if none of the underlying assets have fallen to or below their respective Kick-In Prices, you may be exposed to the negative performance of the worst performing underlying asset is you exit prior to maturity or if an early maturity occurs under the terms of the product;
• Limited liquidity (at the discretion of UBS);
• The maximum final value of the investment will be the initial investment (if held to maturity) regardless of how well the underlying assets perform;
• The payment of the Fixed Payment and the delivery of the relevant assets following maturity 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. UBS recommends that Investors obtain the Information Memorandum (IM) or other documentation for the relevant product and read it before making a decision to invest. The IM is available from UBS by calling 1800 633 100.

Important Disclaimer

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