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UBS launches Absolute Return 5 Year SUPER Notes
UBS today launched the Absolute Return 5 Year SUPER Note which offers prospective gains irrespective of market conditions. Linked to a basket of 25 Hong Kong stocks, the equity-linked notes are principal-protected and offer potential returns regardless of rising, falling or volatile markets.
The fifth in the SUPER Note series, the new instruments will be available to retail investors in Hong Kong between 23rd June and 16th July via a distribution syndicate comprising 11 retail banks and securities firm.
The product provides a guaranteed coupon payment of 5.5% in year one. In subsequent years, the calculation of annual coupon is based on the percentage return (in absolute value) of the stock in the basket with the least fluctuation, multiplied by the participation rate.
A lock-in profit mechanism ensures that the coupon received in years three to five will be equal to or better than the previous year.
Stocks in the basket include: HSBC Holdings, Hang Seng Bank, Cheung Kong Holdings, Sun Hung Kai Properties, China Mobile, China Life Insurance, China Petroleum and Chemical, Huangeng Power, Swire Pacific and Li & Fung.
"Intermediary financial institutions are an increasingly significant client segment for UBS's equity derivatives business. The SUPER Notes series is just one of many innovative investment solutions catering to the retail banking sector. With our global capability and expertise in structuring equities, UBS is well positioned to strengthen further its reputation as the bank for banks in the region," said Min PARK, Head of Equity Risk Management at UBS, Asia.
"Since its launch in August last year, the SUPER Note structure has been popular with retail investors. This latest in the series has the potential to generate the best returns for investors regardless of market conditions. We plan to maintain our focus on developing new equity-linked structured products to meet the growing demand," added Christopher F LEE, head of UBS's Equity Risk Management Intermediary desk.
The SUPER Notes are available from: Bank of China (Hong Kong), Nanyang Commercial Bank, Chiyu Bank, Wing Lung Bank, Wing Hang Bank, Chekiang First Bank, Asia Commercial Bank, Bank of China (Macau), Dah Sing Bank, Mevas Bank & Sun Hung Kai Investment Services, Ltd.
Hong Kong, 23 June 2004