Express Certificate

Underlying: Hang Seng China Enterprises Index / Russian Depositary Index USD (RDX) / iShares MSCI Brazil Capped SSPA/EUSIPA Product Type: Express Certificates (1260) Valor: 22786024 / ISIN: CH0227860241

Last update 21.09.2018
  • Bid

    88.72 %
    Volume: 100'000

  • Ask

    89.72 %
    Volume: 100'000

Key figures

Strike11'448.74 HKD
Days to expiry60

Tax information Switzerland

Withholding taxNo
Swiss income taxYes
Stamp taxYes

Product calendar

Fixing date21.11.2013
Last trading date20.11.2018

Barrier information

Distance to barrier worst1)29.40%
Barrier touchedNo

Early redemption information

Current exit rate100.00%
Next observation date21.11.2018

Early redemption observation dates

Observation dates21.11.2014, 20.11.2015, 21.11.2016, 21.11.2017, 21.11.2018

UBS Express Certificate (UBS Kick-In Certificate)

With UBS Express Certificates, also known as UBS Kick-In Certificates, everything can happen very quickly. Although UBS Express Certificates have normal maturity that often amounts to several years upon issue, the Express concept aims for early repayment. The strike price that must be exceeded is determined for the underlying asset (e.g. equity, equity basket or index) already at the time of issue. If the price of the underlying asset on one of the fixed observation dates (mostly in a quarterly or half-yearly cycle) is at or above the strike price, the Certificate matures immediately and investors are paid the nominal amount as well as an attractive bonus amount that can increase according to a pre-defined schema often with a progressive maturity.

The exact structure of the Express target can, however, differ markedly from product to product. For instance, it is possible that the strike price significant to early repayment continuously increases or decreases from one observation date to the other. It is also possible that, if early repayment is not made, a coupon is paid out on the respective valuation days – similarly to a "consolation prize".

If all the opportunities of early express repayment go by without being used, many UBS Express Certificates have an additional (barrier-related) safety buffer on final maturity that aims to provide protection against slightly to moderately decreasing prices of the underlying asset. As long as the price of the underlying asset during the term of the investment never reaches or falls below a pre-defined barrier (kick-in level), investors with a moderate-to-high risk tolerance at final maturity are repaid the full amount of the capital invested - despite any negative performance of the underlying asset. After a barrier breach during the term of the investment, losses may be incurred at final maturity in the amount of the then (starting from the respective strike) proportional price drop of the underlying asset. In addition, the issuer risk must be taken into considerations, since the capital invested could be lost if UBS AG becomes insolvent – irrespective of the performance of the underlying asset.

A more detailed product description is available in our brochure "Knowledge in a nutshell".

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