Share Builders
Share Builders is a series of rolling self-funding instalment warrants (SFI). It’s a simple tool advisers and clients can use to gain a leveraged exposure to an investment. Share Builders is currently trading on the ASX, giving investors and SMSFs access to leverage the top 20 stocks as well as the S&P/ASX200 Fund.
One step to borrow and build a share portfolio
Key features of Share Builders
| Ownership | You are the beneficial owner of the underlying share |
|---|---|
| Franking | Franking credits available to eligible investors - See “Taxation Summary” in Part 8 of the Master PDS for more information on eligibility criteria |
| Purchase price | The Purchase Price that you pay plus the Loan Amount that Issuer lends to you are used to pay for the purchase of the underlying share and Interest for the current Interest Period |
| Your cash | Once you have paid the Purchase Price you are not required to contribute more cash to maintain your Loan over the full term of Share Builders |
| Dividends | Ordinary Dividends from the underlying shares will be used to reduce the Loan Amount under Share Builders |
| Interest | Any future interest will be funded within the Share Builder by periodic increases of the Loan. All or part of the interest paid should be tax deductible. Interest paid covers cost of Walkaway Feature as well |
| Walkaway feature | If the underlying share value is less than the Loan Amount at Maturity, the underlying shares will be transferred to the Issuer but you will not have to make any further payment to repay the Loan. This means you can borrow to invest without risk of defaulting on repayments |
| Money at risk | Your maximum potential loss from buying a Share Builder is known upfront and is limited to the Purchase Price you pay |
| SMSF | Superannuation fund investors can use Share Builders as one of the few ways to borrow to invest in listed shares and ETFs |
Risks of Share Builders
Borrowing to invest carries risk, for example:
- Gearing magnifies losses as well as gains
- The underlying share price can go up or down
- No capital protection - you can lose the entire Purchase Price paid
- The Interest Rate may increase over time
- Dividend income may be less than you expect
- Tax laws may change
- Early termination may occur at UBS's election on an Annual Interest Date or following certain Extraordinary Events
- UBS and UBS Nominees Pty Ltd may default
Resources
For more information relating to Share Builders, please refer to the below documents and tools.
SSL Series Product Disclosure Statement (Includes Term Sheet, Application Form and Master PDS)
AMPSSG Product Disclosure Statement (Includes Term Sheet, Application Form and Master PDS)
TLSSSG Product Disclosure Statement (Includes Term Sheet, Application Form and Master PDS)
Summary List of Share Builders
Share Builder Price Matrix
Share Builder Brochure