UBS creates Structured Products fund
UBS has announced the launch of a new investment fund with which it claims to combine the advantages of structured products and investment funds. The fund is called the UBS Optimisation Fund. In return for the annually fixed coupon and conditional downside protection, investors give up a higher return potential in strongly rising markets and accept potential downside equity risk in strongly falling markets.
The fund offers returns in sideways markets with an annual coupon that is reset each year: investors know in advance what coupon they will receive. Additionally, the new fund incorporates conditional downside protection and diversification and is aimed at investors with a moderate-to-high equity-like risk tolerance level.
The fund exposes investors to a minimum of 25 structured products based on underlying selected by UBS, reducing the risk of a single structured product. The coupons are
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