UBS Investment Bank has launched UBS PERLES+, a tailored structured product which offers investors exposure to the S&P/ASX 200 Index.
The UBS PERLES+ (Performance Linked Equity Securities) structure is a Deferred Purchase Agreement, which has a payoff at maturity linked to the performance of the S&P/ASX 200 over the investment term.
There are two separate offerings. The first is called Series 3 and has a term of 14 months with an indicative minimum return of 9 per cent. In this series, clients will benefit from any increase in the index up to a maximum of 25 per cent.
The second offering is called Series 4 and has a term of 2.5 years with an indicative minimum return of 23.5 per cent. But this series has unlimited upside.
This offer of UBS PERLES+ provides an attractive minimum return provided the S&P/ASX 200 does not fall by more than 35 per cent from the starting level during the investment term.
The offer for this product will be open until February 12, and can be used within self managed superannuation funds.
UBS PERLES+ Series 3 has adviser fees of 1.1 per cent while those for Series 4 are double that.
There are no other fees for this product and UBS earns its income from the way the product is priced.
There is no gearing available for this product.
"We expect a renewed interest in structured products during the first quarter of 2009 as advisers and clients will start to look for opportunities to improve investment returns," UBS head of structured product sales Mark Small said.
