• The level of principal protection is usually 100%, although some structured products may offer you principal protection as low as 80%, providing even greater potential return opportunities through greater exposure to the underlying asset in exchange for accepting the increased risk
• Instead of providing fixed interest payments like traditional bonds, structured products in this category pay returns either in the form of variable interest payments or a single payment at maturity, depending on the particular structure
• These products offer the potential to outperform traditional fixed income investments

Examples of These Strategies

• 100% Principal Protection Notes Linked to a Currency Basket
• 100% Principal Protection Callable Daily Range Accrual Notes with Interest Linked to a LIBOR Rate

The Role in Your Portfolio
Because structured products in the Protection category have characteristics most similar to bonds from a market risk perspective, they will typically be allocated to the Fixed Income segment of your portfolio regardless of the underlying asset.

The returns on structured products are linked to the performance of the relevant underlying asset or index.  Investing in a structured product is not equivalent to investing directly in the underlying asset or index. Clients should carefully read the detailed explanation of risks, together with other information in the relevant offering materials, including but not limited to information concerning the tax treatment of the investment, before investing in any structured product.

This document is intended solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell a security, option, commodity or related financial instrument. Such offer is made only by prospectus.

UBS Financial Services Inc. does not provide tax or legal advice.  Clients should consult with their tax and legal advisers regarding their personal circumstances.