UBS plans trigger return optimization securities linked to fund basket

By Marisa Wong

Madison, Wis., Dec. 3 - UBS AG, London Branch plans to price 0% trigger return optimization securities due Dec. 31, 2015 linked to a basket of funds, according to an FWP filing with the Securities and Exchange Commission.

The basket consists of the SPDR S&P 500 ETF trust with a 40% weight, the iShares MSCI EAFE index fund with a 40% weight and the iShares MSCI Emerging Markets index fund with a 20% weight.

The payout at maturity will be par plus 1.5 times any basket gain, up to a maximum return of 30% to 36%.

If the basket finishes at or above the 70% trigger level, the payout will be par.

Otherwise, investors will be fully exposed to any losses.

UBS Financial Services Inc. and UBS Investment Bank are the underwriters.

The notes are expected to price Dec. 26 and settle on Dec. 31.

The Cusip number is 90269W742.

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