Mason Stevens Equity Insulator Investor Presentation June 2013 - PowerPoint PPT Presentation

Mason Stevens Equity Insulator Investor Presentation June 2013

Important information & disclaimer This Presentation is owned by Mason Stevens Limited (ACN 141 447 207, AFSL 351578). Any content provided in this Presentation is for the purpose of providing general information only. Investment in securities involves risk. Securities by nature have rises and falls, given this past performance is not a reliable indicator of future performance. Mason Stevens is only providing general advice in this presentation. You should consider this information, along with all of your other investments and strategies when assessing the appropriateness of the information to your individual circumstances. Mason Stevens and its associates and their respective directors and other staff each declare that they may hold interests in securities and/or earn brokerage, fees or other benefits from transactions arising as a result of information contained in this presentation. Mason Stevens take reasonable steps to ensure that the information provided in this presentation is as accurate, currency, and complete as possible but does not warrant its accuracy or reliability. Opinions and or information may change without notice and Mason Stevens is not obliged to update you if the information changes. Mason Stevens and its associated companies, authorised representatives, agents and employees exclude to the full extent by law, liability of whatever kind, including negligence, contract, fiduciary duties or otherwise, to investors or anyone else in respect of any loss or damage, including indirect or consequential loss or damage, foreseeable or not, arising from or in connection with this presentation. This presentation is designed to illustrate some products and services that Mason Stevens offers. It may also illustrate potential investment outcomes for a particular investment strategy. The presentation uses a broad number of simplifying assumptions to do this. As such the output of the presentation should not be taken as an indication of any actual performance of any particular investment. Any investment return(s) and yield assumptions used in the presentation do not represent a prediction or forecast of actual performance of any product or service offered by Mason Stevens Limited. UBS AG, Australia Branch is the issuer of the Equity Insulator Instalments and Equity Insulator 105 Instalments PDS. Potential investors in Equity Insulator Instalments should refer to the Equity Insulator Instalments Product Disclosure Statement (PDS) dated 19 May 2011 and Supplementary PDS dated 22 May 2013. Potential investors in Equity Insulator 105 Instalment should refer to the UBS Rolling Self Funding Instalments Product Disclosure Statement (PDS) dated 2 February 2009 and Supplementary PDS dated 22 April 2013. A PDS is available by contacting either Mason Stevens or UBS. Investors and their Advisers should refer to the relevant product disclosure statements (PDS) prior to making any decision to acquire, or to continue to hold the product. 2

Contents • What are Mason Stevens Equity Insulator Instalments? • How do they work? • 20 Leaders Strategy • Key Dates 3

Mason Stevens Equity Insulator Mason Stevens Equity Insulator Instalments provide leveraged exposure to growth of underlying shares through ASX-listed Instalment Warrants with upside uncapped and protection . 4

Key Features • Limited recourse loan, no margin calls • Investment requires only small initial outlay , maximum loss to the Investor is upfront cost and any later interest payments. • Able to walk away at any time with no ongoing commitment • May be entitled to a tax deduction for some of the interest paid on the loan in this financial year* • First Payment indicative $20,600 • Lonsec independent research available • Issued by UBS and arranged by Mason Stevens *see PDS for further information in relation to tax, Investors should seek own tax advice 5

How does it work? Choice of structure • 3 year (Equity Insulator 110) or • 1 year (Equity Insulator 105) Choice of strategy • choose from 20 Equity Insulator Instalments in top ASX listed securities; or • 20 Leaders Strategy Limited recourse loan • Depending on structure borrow 105% or 110% of loan amount 6

Equity Insulator Instalments June 2013 Series: Choose from any or all of the following Equity Insulator Instalments. AMP ANZ BHP BRAMBLES CBA CSL MACQUARIE NAB NEWCREST NEWS CORP MINING ORIGIN RIO TINTO SANTOS SUNCORP TELSTRA ENERGY WESTPAC WESTFIELD WESFARMERS WOOLWORTHS WOODSIDE PETROLEUM 7

20 Leaders Investment Strategy Equity Insulator 110 The Investment term is 3 years with a 110% loan. Assuming a $100,000 portfolio investors would be funded with a loan of $110,000. First Payment : Pre-payment of the interest amount on the 110% for 1 st year • and protection costs for the full investment term. • Protection feature : Inbuilt limited recourse loan means only First Payment and any interest payments paid on annual rollover dates are at risk. There are no margin calls. • Keep the winners, hand back the losers : At the end of the investment term investors keep only the positive performing underlying shares above the loan amount and are protected against individual negative performance. 8

Examples - $100,000 portfolio ($110,000 loan) Investment period: May 10 – May 13 Investment period: Jun 07 – Jun 10 Without protection: $112,442 Without protection: $73,419 With protection: $124,681 With protection: $110,055 Gain $14,681 above loan amount Gain $55 above loan amount These examples are based on actual historical data and are meant to be illustrate potential scenarios. They are not indicative of the actual or possible future returns that investors may obtain using the Strategy. 9

Key Risks • Interest and protection costs could outweigh positive returns • Company specific risk • Tax changes • Extraordinary events • General market risks • Dividend payments subject to Company discretion 10

Investor Profiles • Wealth accumulators looking to access the market, don’t have enough capital to gain diversified exposure • Clients seeking a potential tax benefit but importantly are looking for an appropriate underlying investment • Investors keen to access growth but want to protect their capital 11

Issuer: UBS Mason Stevens Equity Insulator Instalments are issued by UBS AG, Australia Branch. Headquartered in Zurich and Basel, Switzerland, UBS: • Offers wealth management, asset management and investment banking services • Has offices in more than 50 countries • Employs approximately 26,000 staff 12

Arranger: Mason Stevens Boutique investment house • Established in 2010; today circa $750m of FUM, has 28 staff Multi-asset, multi-currency offering • Global Equities, Global Fixed Income, Global Derivatives & Cash Investment Choice • Portfolio Accounts, Managed Accounts, Direct Equities, Direct Fixed Interest, and Managed Funds Institutional-style solutions • Transparent, efficient and cost effective with comprehensive online reporting Transparent, efficient and cost effective with comprehensive online reporting 13

Key Dates Equity Insulator 110 PDS date 19 May 2011 SPDS 22 May 2013 Open date 31 May 2013 Applications close 24 June 2013 Final Maturity 28 June 2013 Dates subject to change 14

More information Mason Stevens Equity Insulator Instalments are available through 2020 DIRECTINVEST with a waiver of the 2.2% Borrower Fee. • Equity Insulator 110 • Equity Insulator 105 15