UBS Market Growth Instalments

Borrow to invest into a range of underlying securities without margin calls

Please click here for indicative pricing for the UBS Market Growth Instaments - SSP Series as at 10 June 2015

General Structure

  • Buy listed securities in two payments
  • Access leveraged exposure to a variety of ASX listed shares up to the Capped Level
  • Cash dividends applied to reduce Loan Amount whilst retaining the potential entitlement to franking credits 1
  • Interest paid upfront for the period up to the Annual Interest Date, an additional Interest Amount is paid on the Annual Interest Date by a drawdown under the Loan without the need for investors to contribute additional cash
  • Investment term of approximately 12 months

Leveraged Exposure

  • High leverage level of around 100%—this means the initial outlay is only a fraction of the underlying security price. Leverage percentage will vary throughout the term of the Instalment
  • Leverage is provided through a limited recourse loan
  • No risk of margin calls
  • If you choose not to pay the Completion Payment at maturity, your Underlying Securities will be transferred to UBS, the proceeds of the transfer used to repay the Loan and the excess (if any) is paid to you as an Assessed Value Payment

Capped Level

  • Performance is capped by reference to the Capped Level which will vary for each Series
  • Holders will not benefit from an increase in price of the Underlying Security above the Capped Level

Self-Funding Nature 

  • Cash dividends paid on the Underlying Security are applied to reduce the Loan Amount
  • Conversely, interest is added automatically to the Loan Amount on the Annual Interest Date

Key Benefits

  • Enhanced potential capital growth (up to the Capped Level) through the use of leverage
  • Daily liquidity—listed on the ASX
  • No margin calls
  • Leverage—initial leverage level approximately 100%
  • Tax effective—interest deductibility2 and potential entitlement to franking credits 1
  • Limited recourse loan
  • No ongoing cash payment required during the term 3
  • Eligible investment for Self-Managed Super Funds (SMSFs) (if made via Cash Application or purchased on ASX)

Key Risks

  • Leverage increases downside risk given you have a greater exposure to the Underlying Securities
  • Interest rate exposure
  • Dividend risk
  • Exposure to changes in the Underlying Security price
  • Capped Underlying Security performance
  • Reliance on UBS and the Security Trustee to perform their Obligations

A more detailed description of the main risks of investing in UBS Market Growth Instalment is in the Risks Section of the PDS (Part 3)

Possible Strategies for using UBS Market Growth Instalments

  • Leverage your individual or SMSF portfolio: Increase your exposure to securities without needing to fund ongoing interest obligations out of your own cash
  • Alternative way to borrow without margin call: UBS Market Growth Instalments are not subject to margin calls during their term and offer competitive interest rates
  • Diversification: Ability to invest in a greater range of ASX listed securities for the same initial capital outlay
  • Tax Efficient: Interest deductibility and the potential to use franking credits (if available)5 to reduce contribution tax within your SMSF
  • SMSF: One of the few forms of leverage strategies that SMSFs are permitted to use (if made via Cash Application or purchased on the ASX)
  • Unlock capital from existing shareholdings: Deliver an Underlying Parcel and receive a Shareholder Cashback amount without triggering a CGT event (may not be available for SMFs)

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How do I identify UBS Market Growth Instalments on the ASX?


How to purchase UBS Market Growth Instalments

  • ASX Purchasers: Buy UBS Market Growth Instalments on ASX through a full service or online broker
  • Cash Applicants: Complete the application form in the PDS / SPDS and pay the First Payment Amount to UBS
  • Shareholder Applicants: Complete the application form in the PDS / SPDS and deliver the Underlying Parcel and receive a Shareholder Cashback amount (not available to SMSFs)
  • Rollover Applicants: Complete the application form in the PDS / SPDS and deliver the existing Instalments and either receive a Rollover Cashback amount or pay a Rollover Payment (may not be available to SMSFs)

What happens at Maturity? 

  • Sell your UBS Market Growth Instalments on ASX (any time before maturity); or
  • Give a Completion Payment Notice before or on the Final Maturity Date - pay the Completion Payment and receive the Underlying Parcel; or
  • Roll into new Series of UBS Market Growth Instalments if available; or
  • Do nothing – receive the Assessed Value Payment (if any) equal to value of Underlying Parcel less the Completion Payment and any Cap Adjustment Amount;

UBS Market Growth Instalments value at Maturity

Further Information

For more information about UBS Market Growth Instalments contact your financial adviser

UBS Structured Products 1800 633 100


1 Subject to individual circumstances and the investor’s interest in the Underlying Securities being “at risk” for the purposes of the Qualified Person Test, investors may be entitled to franking credits. Read Part 5 of the PDS and the Supplementary PDS (SPDS) that accompanies the PDS for further information.
2 Interest deductibility is subject to individual circumstances and the potential application of capital protected borrowing rules explained further in Part 5.2 of the PDS
3 Dependant on provision of TFN/ABN or exemption
4 The Underlying Parcel will be transferred to UBS in return for the Closing Price of the Underlying Parcel on the Final Maturity Date less any fees, costs, charges, liabilities, Taxes and expenses incurred by or  payable to UBS or the Security Trustee. Please refer to Part 2.6.2  of the PDS, as amended by any relevant SPDS, for more information on the calculation of the Assessed Value Payment. 
5 Subject to individual circumstances. Read Part 5 of the PDS dated 23 May 2011 and any Supplementary Product Disclosure Statement (SPDS) that accompanies the PDS for further information.


This information is communicated by UBS AG Australia Branch (ABN: 47 088 129 613, AFSL: 231087) and/or its affiliates ("UBS"). Before making an investment decision, clients should read the relevant Product Disclosure Statement (PDS) dated 23 May 2011 and any Supplementary Product Disclosure Statements (SPDS) accompanying the PDS including the Risks section in the PDS. These documents are available by calling UBS on 1800 633 100 or on the website

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