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Series 1 & 3 - linked to the S&P/ASX 200 Daily Risk Control 12% Excess Return Index
Series 2 & 4 - linked to the S&P Global Infrastructure Daily Risk Control 10% Excess Return Index
An investment linked to either Australian equities (Series 1 and Series 3) or global infrastructure companies (Series 2 and Series 4) for 6 years, with Capital Protection* effectively provided by NAB on the Capital Protection Date.
What are Restart Units?
Restart Units are designed to offer Investors exposure to the performance of a Reference Index – either the S&P/ASX 200 Daily Risk Control 12% Excess Return Index for Series 1 and Series 3 or the S&P Global Infrastructure Daily Risk Control 10% Excess Return Index for Series 2 and Series 4. To gain this exposure, the Fund will enter into Deferred Purchase Agreements (DPAs) with UBS Investments Australia Pty Limited (UBSIA).
Key benefits of Restart Units:
- Reference Indices - Exposure to Reference Indices with inbuilt leverage and risk control.
- Capital Protection - effectively provided by NAB on the Capital Protection Date because the value of each DPA (up to $1 per DPA Unit) is supported by a NAB Deposit that is held by UBSIA and charged to the Fund.
- Will not cash-lock - An investment which will not be cash-locked because it delivers constant participation by virtue of an uncapped exposure to the performance of the Reference Index.
- Annual Distributions - Six annual distributions totaling $0.20, which will be applied to pay up your Partly Paid Units from $0.80 on the Issue Date to $1.00 by the Capital Protection Date.
- Performance smoothing - by using averaging to determine the Reference Index Return.
- No AUD/USD currency risk - as at the Capital Protection Date for to the investments held by the Fund for Series 2 and Series 4.
- Ability to borrow – money using a NAB Investment Loan to purchase Restart Units
Key risks of Restart Units:
There are a number of key risks you should be aware of when investing in Restart Units, such as:
- Reference Index performance risk—the risk that the Reference Index does not perform well over the Term.
- Unit price risk—apart from Reference Index performance, the value of Units is also influenced by various factors which are unpredictable. Historical performances of the Reference Index and these factors are not reliable indicators of future performance of Restart Units.
- Loss of Capital Protection—Capital Protection will not apply if you redeem you Units before the Capital Protection Date or an Early Maturity Event (including a NAB Default) occurs in respect of the DPAs. Break Costs may apply upon early unwind.
- Credit risk—you are exposed to UBSIA, UBS and NAB credit risk
- Inbuilt leverage in the Reference Indices—which means that a negative change in the Underlying Index will have an increased negative impact on the Reference Index level if the Underlying Index has recently demonstrated a low degree of volatility relative to a target.
Please refer to Section 8 of the PDS for a fuller discussion of risks applicable to investing in Restart Units.
Restart Units | Series 1 and 2 (Classes O and P) | Series 3 and 4 (Classes Q and R) |
Offer Period Opens: | 10 May 2011 | 10 May 2011 |
Offer Period Closes: | 5 pm (Sydney time) 24 June 2011 | 5 pm (Sydney time) 29 July 2011 |
Unit Issue Date and time: | At or around 6 pm (Sydney time) on 30 June 2011 | At or around 6 pm (Sydney time) on 8 August 2011 |
Participation Rate Fixing Date: | 7 July 2011 | 15 August 2011 |
Capital Protection Date: | 7 July 2017 | 15 August 2017 |
Final Maturity Date of the DPAs: | 10 July 2017 | 16 August 2017 |
**Note dates are indicative only and may be adjusted by VIML with consent from UBSIA or as a result of Adjustment Events and Market Disruption Events.
Investment overview and key features
The Fund | The UBS Global Access Fund is an Australian unit trust and a registered managed investment scheme (ARSN 130 791 338). Each Series of Restart Units is referrable to assets of a Sub Trust for which Theta Asset Management Limited (wholly owned subsidiary of the Responsible Entity) is the trustee. | Refer to Section 3 of PDS |
Responsible Entity | Valuestream Investment Management Limited (VIML or the RE or the Issuer). | Refer to Section 3 of PDS |
Investment objective | To provide periodic fixed returns and an exposure to the Reference Index between the Participation Rate Fixing Date and the Capital Protection Date, and Capital Protection on the Capital Protection Date. | Refer to Sections 1 and 5 of PDS |
Reference Index | The Reference Index for each Series of Restart Units is: Series 1 and Series 3: S&P/ASX 200 Daily Risk Control 12% Excess Return Index; Series 2 and Series 4: S&P Global Infrastructure Daily Risk Control 10% Excess Return Index. Both indices are published by Standard & Poor’s Financial Services LLC. | Refer to Section 4 of PDS |
Issue Price | $1.00 per Unit. However, all Restart Units are partly paid to $0.80 only on the Issue Date and the remaining $0.20 of the Issue Price is payable by six annual instalments of Capital Payments during the Term which will be funded by distributions from your Units. | Refer to Sections 1 and 2 of PDS |
Final Value | For all four Series, the Final Value of each DPA Unit on the Capital Protection Date is calculated as: $1 + [ $1 x Participation Rate x Max (Reference Index Return, 0) ] In other words, the Final Value per DPA will only exceed $1.00 if the Reference Index Return is positive. | Refer to Sections 5 and 6 of PDS |
Minimum Application Amount | 25,000 Units for each Series, and thereafter in increments of 1,000 Units. Since Units will be partly paid to $0.80 per Unit on the Issue Date, the minimum total Application Amount is $20,000 for each Series, and $800 for each increment thereafter. | Refer to Section 11 of PDS |
Fees and other costs | The fees and costs charged by the Fund include: Management Fees; and Withdrawal Fees which apply to withdrawals on or prior to 30 June 2015. Details of these and other potential fees and costs are set out in Section 9 of the PDS. | Refer to Section 9 of PDS |
An investment in Restart Units is subject to the key risks described in Sections 1 and 8 of the PDS. Investors should carefully read the PDS and the Financial Services Guide (“FSG”) and talk to their financial adviser before making an investment decision.
To download a copy of the PDS click here
To download a copy of the Financial Services Guide click here To view the Lonsec Research Report click here
General Advice Warning
Any advice contained in this webpage has been prepared without taking into account your objectives, financial situation or needs. Before acting on any advice in this webpage, National Australia Bank Limited (ACN 004 044 937, AFSL 230686) (“NAB”), VIML and UBS (including UBS Investments Australia Pty Limited (UBSIA), UBS AG (UBS) or UBS Securities Australia Limited (UBSSAL)) recommend that you consider whether it is appropriate for your circumstances. If you are classified as a “Retail Client” under the Corporations Act and the advice contained in this webpage relates to “Financial Products” which NAB has approved for sale to Retail Clients, NAB recommends you consider the PDS or other disclosure document and the Financial Services Guide, available from NAB for Retail Clients, before making any decisions regarding any product.
Eligibility
Applications for Units in the Fund are open to:
- Australian resident individuals;
- Australian trust entities, including Australian superannuation funds; and
- companies registered in Australia.
Important Information
Investors should read the Product Disclosure Statement which details all of the risks of investing in Fund Units and seek their own independent financial, legal and taxation advice based on their own circumstances before making any investment decision. To obtain a copy of the Product Disclosure Document or the Research report referenced please contact NAB on 1800 652 669 or visit www.wholesale.nabgroup.com.
This information does not take into account the investment objectives or financial situation of any particular person. Investors should be aware that there are risks of investing and that prices both rise and fall. Investors should seek their own independent financial advice based on their own circumstances before making a decision.
This material does not purport to identify the nature of the specific market or other risks associated with a particular transaction. Before entering into a derivative transaction, you should ensure that you fully understand the terms of the transaction, relevant risk factors, the nature and extent of your risk of loss and the nature of the contractual relationship into which you are entering. You should also carefully evaluate whether the transaction is appropriate for you in light of your experience, objectives, financial resources, and other relevant circumstances and whether you have the operational resources in place to monitor the associated risks and contractual obligations over the term of the transaction.
We and/or our affiliates (together, the “Firm”) may from time to time take proprietary positions and/or make a market in instruments identical or economically related to transactions entered into with you, or may have an investment banking or other commercial relationship with and access to information from the issuer(s) of financial products underlying transactions entered into with you.
This document and its contents are proprietary information and products of our firm and may not be reproduced or otherwise disseminated in whole or in part without our written consent unless required to by judicial or administrative proceeding.
Neither VIML nor UBS takes any responsibility for the content of this page. VIML and UBS make no representation and give no advice in respect of any financial, investment, tax, legal or accounting matters in any jurisdiction including the suitability of the units to investors. Neither VIML, UBS nor any of their agents or subcontractors shall be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including lost profits (even if VIML or UBS is advised of the possibility thereof) arising in any way from this document.
Restart Units are not deposit products and will not be covered by the depositor protection provisions set out in Division 2 of Part II of the Banking Act 1959 (Cth). None of UBSIA, UBSSAL, UBS, NAB or their affiliates guarantees the performance of the Restart Units, the Reference Indices or the Delivery Assets.
* Capital Protection is applicable in respect of the DPA on the Capital Protection Date only. Capital Protection is provided to the Fund and not to the Investor directly. In the absence of any Fund Liabilities, the value of each Unit on the Capital Protection Date will be equal to the Final Value of a DPA Unit which will be at least $1 if no Early Maturity Event occurs. The Issuer does not currently foresee any Fund Liabilities being applicable as at the Capital Protection Date but if there are Fund Liabilities then those will be paid out of the respective trust assets, which means the value of Restart Units will be less than the Final Value. Capital Protection may not apply in some limited circumstances – refer to Section 7 of the PDS for more information.