The Investment Amount is capital protected by a Put Option with UBS AG Australia. Applicants must apply for a Put Option when they apply for Units. 

An Applicant’s Investment Amount will be capital protected under the Put Option because either the Applicant or UBS AG Australia will exercise his Put Option at least 6 months before the Maturity Date. 

The operation of this capital protection under the Put Option is subject to the terms of the Put Option, as explained in section 4 of the PDS. These include the following conditions:
  • the Put Option is exercised on or before the Exercise Date;
  • all annual Put Option Fees are paid when due;
  • the Applicant has not breached the Put Option and the Put Option has not been terminated;
  • in the case of Borrowers, there has not been an Event of Default under, or breach by the Borrower of, the Loan Agreement; and
  • the Applicant (or in the case of Borrowers, the Nominee) has not ceased to hold the Units.
Applicants who redeem early or sell their Units or whose Units are redeemed early lose this capital protection.