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UBS Homepage > Wealth Management US > Investing > Traditional Investments > UITs > Blue Chip Series > Series 2007A

Blue Chip Series 2007A
Deposit Date:          August 22, 2007
Termination Date:  August 31, 2009
CUSIP:                      29475P455
Ticker:                      PAZULX
Status:                     Open not Offered

Additional information about this series:
Distribution Information
Performance, holdings and fees

The portfolio seeks total return through capital appreciation and, to a lesser extent, dividend income by investing for approximately two years in a fixed portfolio of 25 stocks chosen by the Sponsor.

The Blue Chip Series Investment Strategy
The Portfolio contains 25 blue chip stocks. Blue chips have traditionally been defined as large, well-established industry leaders with long histories of dividend payments. In recent years, that definition has taken on a broader meaning as technology and other Information Age companies, which pay little or no dividend, mature. Today, a blue chip stock is one that sells at a relatively high market capitalization because of public confidence in its long record of steady earnings. The New York Stock Exchange, Inc. now defines a blue chip company in its website glossary as a ‘‘company known nationally for the quality of its products or services, its reliability, and its ability to operate profitably in good and bad economic times.’’ Accordingly, UBS Financial Services Inc. chose companies that have at least four of the six following characteristics as of August 21, 2007:

  • rated Buy by the Sponsor (See "UBS Investment Research Ratings System" in the prospectus);
  • market capitalization in excess of $5 billion;
  • financial strength, a record of profit growth and reputation for skilled management;
  • established, well-known company considered to be stable and mature with a reputation for providing high quality goods and services; and
  • leader in its market niche.
  • In addition, companies are analyzed for their record of earnings over a relatively long period of time and future potential. Dividend payments, while not required, are considered.

In addition to the above characteristics, the Portfolio includes a mix of stocks diversified across sectors.

After approximately two years, Investors wishing to continue with this Strategy may elect to liquidate their investment in the Trust and invest the proceeds in a new Blue Chip Trust, if one is then available. Investors not wishing to continue with this strategy will receive their share of the liquidation proceeds of the Portfolio stocks upon termination of the trust, approximately five weeks later. The stocks in the portfolio of the new Blue Chip Trust will be the 25 stocks that best meet the Sponsor’s criteria for blue chip stocks on the date they are chosen for the new Blue Chip Trust, which generally will be one Business Day prior to the date of the prospectus offering units of such new trust.

Following the Blue Chip Series Strategy Over a Period of Time

  • Investors can sell their Trust Units at any time, or receive their share of the Liquidation Proceeds once this Blue Chip Trust is terminated. The Sponsor believes, however, that to obtain the benefits of the Investment Strategy investors should reinvest or "rollover" into the next available series of the Blue Chip Trust.

  • While there is no guarantee that future trusts will be available for purchase, UBS Financial Services Inc. anticipates a Blue Chip offering in each calendar year. Unitholders of this Trust may elect the Rollover Option and roll into the subsequent Blue Chip Series, if available, at a reduced sales charge (see "Public Offering of Units – Rollover Option" in Part B of the Prospectus).

  • A rollover of a Unitholder's Units will be accomplished by the in-kind redemption of such Units, followed by the sale of the Trust's Portfolio securities by the Trustee acting as the distribution agent on behalf of participating Unitholders, and the reinvestment of the sale proceeds (net of brokerage fees, governmental charges and other sale expenses) in units of the next Blue Chip Series at their then-current net asset value. Unitholders electing the Rollover Option may realize taxable capital gains but will not be entitled to a deduction for certain capital losses realized. Moreover, because of the rollover procedures described above, Unitholders should be aware that they will not receive a cash distribution to pay any taxes owed. Unitholders are encouraged to consult with their own tax advisors as to the consequences to them of electing the Rollover Option.

  • The Trust is a unit investment trust which means that, unlike a mutual fund, the Trust's Portfolio is not managed and Portfolio stocks are not sold because of market changes.

Distribution Information
Dividends, if any, payable monthly commencing 9/25/07 for holders of record on the 10th of the month
.

Record DatePay DateTypeRate
9/10/20079/25/2007Dividend $0.00134
11/10/200711/25/2007Dividend $0.00212
  Total Dividends:
Total Principal:

$0.00346
$0.00000

This information should not be used for tax purposes. Trust distributions are categorized when paid by the trustee and may be reclassified for tax purposes at year end. Please refer to the prospectus or consult your tax advisor regarding the tax implications of these distributions.

Reinvestment Option
Investors may elect to reinvest dividend and capital distributions, if any, into the Trust at the then-current net asset value with no initial sales charge. Such units will be subject to the deferred sales charges remaining on units received.

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UITs are sold by prospectus only.

Investors should consider the investment objectives, risks, charges and expenses associated with this investment and should carefully review the prospectus containing this and other information before investing.

Please contact your Financial Advisor for a prospectus. Please read it carefully before you invest or send money.

Related Links

NAV
Holdings

Related Documents

Performance  (10kb)
Prospectus (586kb)
Brochure (35kb)
Investor Considerations  (46kb)
Fees (47kb)

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