UBS
| Contact Us | Local Sitemap |
About UBS Wealth Management Careers
Home
UBS Wealth Management

UBS Home

Wealth Management US

UBS Homepage > Wealth Management US > Investing > Traditional Investments > UITs > Socially Responsible Investing Series > Series 2007A

Socially Responsible Investing Series 2007A
Date of Deposit:      March 27, 2007
Termination Date:  June 30, 2008
CUSIP:                       29475P273
Ticker:                       PDASAX
Status:                      Open not Offered

Additional information about this series:
Distribution frequency and tax reporting
Performance, holdings and fees

A registration statement relating to these securities has been filed with the Securities and Exchange Commission. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective.

1. Objectives

  • The Equity Opportunity Trust, KLD Dividend Achievers Social Investing Series 2007A (‘‘Trust’’) seeks total return through a combination of current dividend income and capital appreciation by investing for approximately one year in a fixed portfolio of 20 stocks (‘‘Portfolio’’) chosen by the Sponsor from the stocks which are constituent members of both KLD’s Domini 400 SocialSM Index and Mergent’s Broad Dividend AchieversTM Index (referred to herein as the ‘‘overlapping Index stocks’’).*

  • KLD’s Domini 400 Social Index (‘‘DS400’’) is a socially responsible investment benchmark designed to integrate environmental, social and governance factors into investment decisions, as discussed below. It is a float-adjusted market cap weighted index.

  • Mergent’s Broad Dividend Achievers Index is a modified market cap weighted index designed to identify companies that have increased their annual dividend payments for ten (10) or more consecutive years, as discussed below.
  • The indices are unmanaged and not available for direct investment.

KLD’s Domini 400 Social Index

KLD’s DS400 is the first benchmark for equity portfolios subject to multiple social screens. It is a widely recognized benchmark for measuring the impact of social screening on financial returns and the performance of socially screened portfolios.

Companies involved in alcohol, tobacco, firearms, gambling, nuclear power and military weapons are not eligible for the DS400. Companies that do not meet KLD’s financial screens (market capitalization, earnings, liquidity, stock price and debt to equity ratio) are also ineligible for inclusion.

KLD selects companies for the DS400 that have positive social and environmental records based on the following issues: community relations, diversity, employee relations, human rights, product quality and safety, environment and corporate governance. KLD evaluates companies in the context of their industry and sector as well as in relation to the broader market.

In selecting companies for the DS400, KLD seeks to maintain the composition of Index holdings at approximately 250 S&P companies, 100 non-S&P companies chosen for sector diversification and market capitalization, and 50 additional companies with exemplary social and environmental records.

Mergent’s Broad Dividend Achievers Index

Mergent’s Broad Dividend Achievers Index is designed to track the performance of dividend paying companies that meet the Dividend Achievers requirements. To be eligible for inclusion in the Index, a company must be incorporated in the United States or its territories, trade on NYSE,AMEX, or NASDAQ, and have increased its annual regular dividend payments for the last 10 or more consecutive years. In addition, Mergent requires that a stock’s average daily cash volume exceed $500,000 per day in the two month period prior to reconstitution.

2. The KLD Dividend Achievers Social Investing Strategy.

The strategy of the Trust is ‘‘Value’’ oriented, meaning that it emphasizes the earning power or value of a company’s equity securities, and focuses on stocks that are undervalued (priced low) in relation to a company’s underlying projected earnings stream with the hope that the stock will rebound over time. One indication that a stock is undervalued is a high dividend yield. The Value-oriented strategy consists of the Trust holding a fixed portfolio of approximately equal amounts of the 20 highest dividend yielding stocks of all the overlapping Index stocks, selected on the second Business Day** prior to the date of the Prospectus. We believe these stocks may be well priced relative to their ability to recover and their total return potential.

  • The 20 stocks included in the Portfolio were chosen by the Sponsor two business days before the date of the prospectus, because at that time they had the highest dividend yield of all the overlapping Index stocks and we believe have capital appreciation potential.

  • You can invest in the Portfolio by purchasing units of the Trust (‘‘Units’’). Each Unit represents an equal share of the Portfolio stocks and is entitled to an equal share of dividend income generated by such stocks after deducting Trust expenses.  

  • After approximately one year, investors wishing to continue with this strategy may elect to liquidate their investment in the Trust and invest the proceeds in a new KLD Dividend Achievers Social Investing 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 (‘‘Liquidation Proceeds’’) upon termination of the Trust, approximately two weeks later. The stocks in the portfolio of the new KLD Dividend Achievers Social Investing Trust will be the 20 highest dividend-yielding stocks of the overlapping Index stocks on the date they are chosen for the new KLD Dividend Achievers Social Investing Trust, which generally will be one to two Business Days prior to the date of the prospectus offering units of such new trust.

  • The Investment Strategy is based upon three investment principles: (i) time in the market is more important than timing of investment, (ii) the stocks to buy are the ones that are out of favor and (iii) dividends can be an important element of total return.
     

Social Investing Defined

Socially responsible investing (SRI) is an investment process that considers the social and environmental consequences of investments, both positive and negative, within the context of rigorous financial analysis.

Social investment managers often overlay a qualitative analysis of corporate policies, practices, and impacts onto the traditional quantitative analysis of profit potential. Today, nearly one out of every ten dollars under professional management in the United States is involved in socially responsible investing.

According to the Social Investment Forum’s most recent biennial report***, $2.3 trillion out of $24.4 trillion are in professionally managed portfolios utilizing one or more of the three core strategies that define socially responsible investing: screening, shareholder advocacy, and community investing.

About Mergent

Mergent, Inc., formerly a division of Moody’s Investors ServiceTM (Moody’s), has been collecting data on publicly traded companies since 1900. Currently, Mergent’s databases contain key financial, fundamental and descriptive data for more than 10,000 public companies, 20,000 non-U.S. public companies from nearly 100 countries, and 20,000 municipal issuers, as well as extensive company analysis, corporate bond, unit investment trust, corporate actions, mutual fund and dividend information. Mergent offers financial, business and legal professionals, information specialists and individual investors a full range of powerful research tools in online and print formats. Mergent’s premier products include Mergent’s Dividend Achievers and the Index of Dividend Achievers.

In 1979, Mergent (Moody’s) began identifying companies that have increased their annual dividend payments for ten or more consecutive years. In recognition of the dividend-paying companies’ performance, Moody’s created the Handbook of Dividend Achievers. The companies comprising the Dividend Achievers, representing both Mergent’s Dividend Achievers and the Index of Dividend Achievers, are high quality, stable companies. These companies outlasted the technology bubble that began in March 2000, declining market returns in 2000, 2001 and 2002, and corporate malfeasance.

Mergent observes that Dividend Achievers have historically been blue-chip companies with a strong cash reserve. Moreover, these companies have a proven track record of solid, steady earnings improvement.

Mergent believes that earnings growth typically enables a company to allay investor ambivalence with dividend payments and that it is these increasing dividend payments that promote investor confidence.

About KLD

KLD Indexes constructs indexes for investors who integrate environmental, social and governance factors into their investment decisions. KLD’s indexes are designed to be transparent, representative and investable. Today, more than $10 billion is invested in funds based on KLD indexes. KLD Indexes is a division of KLD Research & Analytics, Inc. The DS400, like all KLD Indexes, is created and maintained using rules-based methodologies. A dedicated committee comprised of research and technical personnel from KLD Research & Analytics, Inc. manages the DS400. KLD Research and Analytics, Inc. is a leading provider of social research for institutional investors.

3. Following the KLD Dividend Achievers Social Investing 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 KLD Dividend Achievers Social Investing 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 KLD Dividend Achievers Social Investing Trust for a period of at least 3 to 5 years.

  • While there is no guarantee that future trusts will be available for purchase, UBS Financial Services Inc. anticipates several KLD Dividend Achievers Social Investing Trust offerings next year. Unitholders of this Trust may elect the Rollover Option and roll into the subsequent KLD Dividend Achievers Social Investing Series, if available, at a reduced sales charge (see ‘‘Public Offering of Units – Rollover Option’’ in Part B of the Prospectus).

  • 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.

* The Marks are trademarks or service marks of Mergent and KLD and have been licensed for use by UBS Financial Services, Inc. The product is not sponsored, endorsed, sold or promoted by Mergent or KLD and neither Mergent nor KLD make any representation regarding the advisability of investing in this product.

** A ‘‘Business Day’’ is defined as any day that the New York Stock Exchange is open for business. For a complete list of current New York Stock Exchange holidays please see ‘‘Valuation’’ in the Prospectus Part B.

*** Social Investment Forum’s 2005 Report on Socially Responsible Investing Trends in the United States (January 24, 2006)

Distributions & Taxes

Distribution Frequency
Dividends, if any, payable commencing 4/25/07 and monthly thereafter for holders of record on the 10th of the month.

Record DatePay DateTypeRate
4/10/074/25/07Dividend$0.00171
5/10/075/25/07Dividend$0.00258
6/10/076/25/07Dividend$0.00198
  Total Dividends:
Total Principal:
$0.00627
$0.00000

Tax Reporting
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.

Top

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 (14kb)
Fees (79kb)

Print this page    E-mail this page
Find a Financial Advisor
Enter your ZIP code
Find a Financial Advisor by name
Account Login

User Name
Password
Benefits of Enrolling
Enroll Now
First-Time User
Products & Services

Important legal information - please read the disclaimer before proceeding.
Products and services in these web pages may not be available for residents of certain nations. Please consult the sales restrictions relating to the service in question for further information. www.ubs.com © UBS 2002-2008. All rights reserved.
Wealth management services in the United States are provided by UBS Financial Services Inc., a registered broker-dealer offering securities, trading, brokerage and related products and services. Member SIPC. Member FINRA.
Privacy PolicyNotice for Non-U.S. InvestorsOrder Routing DisclosureStatement of Financial ConditionBest Execution StatementLoan Disclosure StatementAccount Sweep YieldsAdvisory & Brokerage ServicesCFP Board's Trademark Disclaimer.