Outperformance in a range of market conditions 

This is a summary only – potential investors should obtain a copy of the relevant Product Disclosure Statement (PDS) before making a decision to invest in any of the UBS PERLES series. Capitalised terms used in this document have the meaning given to them in the relevant PDS

General product description

PERLES products aim to deliver exposure to the performance of an underlying asset - e.g. a stock, a basket of stocks, an equity index, an investment strategy, a commodity. As such, they can be used by investors to gain the exposure that they would have been able to achieve (net of fees) if they had purchased the underlying asset directly, noting that dividends are forgone. PERLES often provide access to underlying asset classes, to which an investor would find it impossible or expensive to gain access, e.g. a private investor seeking exposure to a basket of foreign equity indices hedged back to Australian dollars. Depending on the underlying asset and the investment term, a greater than 100% participation rate may also be possible but this will provide a leveraged exposure and will entail greater capital risk for the investor i.e. greater participation also magnifies positive and negative returns.

At Maturity, Investors will receive a Delivery Parcel made up of a number of the Delivery Assets (as specified in the PDS for the relevant Series) equal in value to the Final Value (less Costs and Taxes, if any). Investors may take advantage of the Agency Sale Agreement (described in the relevant PDS) to sell their Delivery Parcel and receive the Sale Proceeds in cash.

Some more specific examples of PERLES structures are:

Basket and index-linked PERLES

A PERLES linked to an equity basket lets you invest on a diversified basis in, say, a specific sector with little capital and administrative outlay. Alternatively, you can invest in a product that aims to replicate the performance of an index e.g. S&P 500 Index by investing in PERLES linked to indices.

Outperformance PERLES

The value of an Outperformance PERLES is impacted by the excess performance or underperformance of one underlying asset relative to another. By investing in an Outperformance PERLES product, the investor is able to express a view on two underlying assets at the same time (these can be single shares, baskets, indices, etc). Outperformance PERLES may be subject to a stop loss limit whereby an early maturity can be triggered if the value of the investment falls below a certain level prior to maturity.

Strategy PERLES

Strategy PERLES aim to replicate the performance of a systematic investment strategy developed by UBS, which may be a growth or value strategy or a combination of the two (e.g. a price/earnings to growth strategy – “PEG”). The individual underlyings are selected, weighted and if necessary switched by UBS at predetermined times in line with this strategy.

Investor profile and suitability

  •  Experienced investors familiar with structured products.
  • Looking for an instrument that offers broad risk diversification<./li>
  • Have a clear directional view on the performance of the underlying asset(s) over the investment term, e.g. investor expects the price of the underlying to rise and would like to profit from this.
  • Have an understanding of the risks of investing in PERLES and also in a position to take risks when investing.

Key benefits of investing in UBS PERLES

  • Enables an investment where direct access to the underlying is otherwise difficult, expensive or impossible for an individual investor
  • Diversification (except where only one underlying is selected)
  • Can be used to deliver a currency hedged foreign asset exposure to Australian investors


  • The potential loss on a PERLES will be magnified if there is leveraged exposure to the underlying asset and it will be more than the loss on a direct investment in the underlying plus fees, so investors must be aware that they could lose all of their invested capital in the worst-case scenario.
  • Unlike a direct investment, the holder will not receive distributions, other shareholder benefits or related tax credits.
  • Limited liquidity (at the discretion of UBS)
  • Any payments under the PERLES products or delivery of Delivery Assets are subject to the creditworthiness of the Issuer of the product, which is set out in PDS for the relevant Series.

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) 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 via the Product Documents link on this page.

This information does not take into account your investment objectives, financial situation or particular needs. Accordingly, nothing on this page or the PDS is a recommendation by UBS or its related entities or by any other person concerning investment in the Units 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 PDS but also obtain independent financial, legal and taxation advice as to the suitability of an investment in the Units for you (bearing in mind your investment objectives, financial situation and particular needs). An investment in the Units is only available to persons receiving the PDS in Australia. The PDS does not constitute an offer of the Units 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 PDS 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. Units 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 PDS, 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 or the Delivery 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).