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 markets in the selected underlying asset(s) 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 periodic amount 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 “Periodic Payment”). The investor will receive this Periodic Payment on pre-determined periodic payment dates (e.g. monthly or quarterly) 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+ works[1] :

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 Periodic Payments through the investment term;

 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 Periodic Payments through the investment term.

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

You may consider investing in a Goals+ product 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 Periodic Payment (e.g. monthly or quarterly);
• 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 Periodic Payments 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. 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. UBS recommends that Investors obtain the Product Disclosure Statement (PDS) or other offer documentation for the relevant series of GOALS+ and read it before making a decision to acquire Units. The PDS is available from UBS by calling 1800 633 100 or via www.ubs.com/equitysolutions.

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 Goals+ 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 Goals+ for you (bearing in mind your investment objectives, financial situation and particular needs). An investment in Goals+ is only available to persons receiving the relevant offer documents in Australia. The relevant offer documents does not constitute an offer of Goals+ 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. Goals+ 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 set out in Division 2 of the Banking Act 1959 (Cth).

In any event, provisions of the Banking Act 1959 (Cth) 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 otherwise is in financial difficulties and ceases to make payments, 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 were unable to meet its obligations or otherwise is in financial difficulties and ceases to make payments, 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 Goals+ Series, please contact: UBS Structured Investments on 1800 633 100.