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Aurora Funds Management to distribute UBS Protected Equity Loans

| Media Releases APAC

UBS AG, Australia Branch today announces that it has reached an agreement with Aurora Funds Management to distribute the UBS Protected Geared Investment product (PGI) through selected Australian brokers and financial planners to the end of the 2003/2004 financial year.

The UBS PGI allows investors to purchase securities from a selection of more than 70 Australian listed companies and trusts by borrowing up to 100% of the purchase price of those securities utilising UBS's PGI loan facility without incurring the risk of any capital losses. Approved investors have the choice of fixing their loan term for 1, 2, 3, 4, or 5 years. The only cost to investors is the interest on the PGI loan and the capital protection cost of the securities expressed as an overall interest rate. The interest cost varies depending on the underlying securities chosen.

Steuart ROE, Executive Director, Head of Australasian Equities Risk Management Products, UBS, commented, "This arrangement demonstrates UBS' long term commitment to investors across Australia as we widen our distribution capabilities to meet their needs."

UBS has obtained an Australian Taxation Office Product Ruling in respect of deductions, which will be available for interest prepaid by certain investors in the Protected Geared Investment.

"This is an attractive investment product for high income earners looking for a tax effective way to invest into the Australian share market without any capital risk," said Simon LINDSAY, Director at Aurora Funds Management. "This product has stood the test of time and we see it as one of the few viable ways of investing tax effectively, as we run into the end of the financial year" he said.

Aurora Funds Management believes that in the current volatile equities environment, this type of capital protected investment will suit risk averse investors looking to build a quality portfolio of Australian shares without running the risk of incurring any margin calls.


Sydney, 7 May 2004
UBS