Alpha EVOLUTION gives you exposure to the shares that you want to buy as the market recovers, but instead of unlimited upside, you get limited capital protection and high monthly income of up to 21.25% pa¹.

Alpha EVOLUTION is an open ended investment with a convenient term of up to 14 months which provides exposure to the performance of a basket of ASX listed, “blue chip” shares with limited capital protection and high monthly income of up to 21.25% pa¹.

Investors can choose a basket of shares, providing exposure to either the banks or a diversified portfolio. At maturity investors will take delivery of shares in Westpac Banking Corporation (‘WBC’) as the Delivery Asset.  They can then immediately sell these and receive the proceeds in cash. Investors can also use the Agency Sale Arrangement and receive the Sale Proceeds of the Delivery Asset on the Settlement Date.

Alpha EVOLUTION has been arranged exclusively by Alpha Structured Investments Pty Ltd (ABN 37 112 062 594, AFSL 290054) (“Alpha”). UBS AG, Australia Branch (ABN 47 088 129 613, AFSL 231087) (‘UBS’) is the issuer of Alpha EVOLUTION.

Enhanced income and limited capital protection – a better way to get exposure to Australian shares

Instead of buying shares the traditional way, many investors and advisers are looking for ways to combine some protection and enhanced yield, to help overcome continuing share market volatility and at the same time gain exposure to quality shares trading at current low levels. Many investors are also looking to rebuild their investment portfolio after significant losses have been incurred over the last 12 months.

Alpha EVOLUTION provides advisers and investors with a simple and effective way to achieve these benefits:

• Choose a basket of ASX listed shares and receive high income paid to you monthly, irrespective of the performance of those shares.
• At maturity, you take delivery of the Delivery Asset being WBC shares, which you may then immediately sell to receive cash. You can also use the Agency Sale Arrangement and receive the Sale Proceeds of the Delivery Asset on the Settlement Date.
• You receive enough shares to return the capital protected amount for the number of Units purchased based on the Issue Price of the Series, being $1.00 per unit (during the Initial Offer Period), so long as all of the shares in your selected portfolio trade above 60% of the nominated starting value at all times during the term of the Alpha EVOLUTION investment.
• If one or more shares in your portfolio falls below 60% of the nominated starting value, you receive the Delivery Asset, being WBC shares, to the overall value of the lowest performing stock in your basket at the end of the term of your Alpha EVOLUTION investment (capped so that you are only exposed to downside and not any upside of the lowest performing stock).
• Alpha EVOLUTION is open ended, so investors can apply for Units weekly and can apply to exit at anytime during the investment (at UBS’s discretion) (note that early exit does not allow for the benefit of limited capital protection to be available).

Alpha EVOLUTION is designed for investors who are comfortable taking the downside risk of buying shares at today’s prices - they will receive the high Alpha EVOLUTION income in place of any upside and have some limited capital protection.

Flexible exposure to your shares

Alpha EVOLUTION is a unique investment which has been arranged by Alpha in conjunction with the issuer, UBS. You can choose a portfolio of ASX listed, “blue chip” shares as below:

Further portfolios are expected to become available at later dates. You can mix your investment to include any of the above portfolios, with minimum investment of $10,000 per Series.

Investment highlights

• Enhanced income – the portfolios have been designed to provide exposure to stocks which are trading at levels which many investors feel are likely to experience share price growth. Investment can be chosen in specific sectors or you can choose to invest in a diversified portfolio.
• Tax flexibility – the shares you receive at the maturity will have their CGT cost base set at the date of your initial investment.
• Capital protection – limited capital protection at maturity is provided by UBS, one of the World’s leading financial firms.³
• Regular monthly income payments will suit investors who require regular income payments including SMSF investors and retirees.
• SMSF suitable – SMSF funds may invest in Alpha EVOLUTION.
• Diversification and yield enhancement – your underlying share portfolio is at the heart of your investment portfolio. Alpha EVOLUTION provides you with a flexible range of investment portfolios in quality blue chip stocks.
• Open ended – applications are accepted as a minimum on a weekly basis and investors can apply to exit at any time during the investment (at UBS’s discretion in certain circumstances), although capital protection is not applicable if the investment is not held until maturity.

Risk factors

Investment in Alpha EVOLUTION has investment risk, including but not limited to the risks set out below. The value of the Alpha EVOLUTION investment can go up as well as down. Alpha EVOLUTION investors may receive an amount less than their initial investment if they sell their Alpha EVOLUTION prior to its maturity date, if there is fall in price of any of the shares in the portfolio to 60% or less of their starting value, or if UBS defaults on its payment obligations.

Alpha EVOLUTION is designed to help the investment outperform a direct investment in the underlying share portfolio, in all but strong growth market conditions. This helps outperformance in reasonable growth conditions, but can produce under-performance (compared to a simple investment in shares) in strong growth market conditions. For example, a simple share investment will outperform the Alpha EVOLUTION investment if the return on the simple shares including dividends and capital growth exceeds the income paid on Alpha EVOLUTION during its term.

Like all investments, there is no return without risk. If there are losses in relation to the share portfolio, the value of the shares delivered to investors may fall or be nil.

How to apply for Alpha EVOLUTION?

Investors can access Alpha EVOLUTION through a Product Disclosure Statement, which is only available from your Financial Adviser. For Advisers seeking further information please call... Alpha – 1300 769 694

Scaleable differentiation with innovative investments

Like all investments, there is no return without risk. If there are losses in relation to the share portfolio, the value of the shares delivered to investors may fall or be nil. Investors should read the Product Disclosure Statement for Alpha EVOLUTION dated 18 March 2009 and issued by UBS in full and carefully consider the detailed description of the arrangements and risks in the PDS before deciding whether to apply for Alpha EVOLUTION. Prior to the maturity of the Alpha EVOLUTION investment the value of Alpha EVOLUTION will be affected by various market factors such as interest rates, shares and option prices and volatility, the creditworthiness of UBS and the time remaining to Maturity Date. As a result and as indicated above there is no assurance that an Alpha EVOLUTION investor that sells their Alpha EVOLUTION investment prior to maturity will receive a price equal to or in excess of the Alpha EVOLUTION investors original investment amount. No capital protection is provided to Alpha EVOLUTION investors if they sell their Alpha EVOLUTION investment prior to the maturity date. A copy of the Product Disclosure Statement can be obtained by contacting your financial adviser, stockbroker or Alpha Structured Investments. Like all investments, investments in the Alpha EVOLUTION involve some risks. The risks include general market risks and risks which are specific to Alpha EVOLUTION. Please ensure you have read and understood the Risk Factors which are set out in that PDS. No action should be taken on the basis of or in reliance on the information, opinions or conclusions contained in this document. In preparing the information in this document, Alpha Structured Investments did not take into account the investment objectives, financial situation or particular needs of any particular investor. Before making a decision to invest, investors should consider the appropriateness of the product having regard to their relevant personal circumstances. Investors should read the PDS in full and carefully consider the detailed description of the arrangements and risks in the PDS before deciding whether to apply for Alpha EVOLUTION. This document is not, and is not intended to be, an offer or invitation for subscription or sale, or a recommendation, with respect to any proposed offering of Alpha EVOLUTION or any other securities, nor is it to form the basis of any contract or commitment. Once you have read and understood the PDS you can apply by completing the Application Form in the PDS and sending it to your financial adviser or directly to Alpha Structured Investments. The minimum application amount is $10,000 with multiples of $1,000 after that. You should consult your investment adviser before you invest in Alpha EVOLUTION.

© Alpha Structured Investments P/L AFSL 290054

1. Capital protection applies unless one of the shares in the Alpha EVOLUTION investment falls below 60% of its price as at the start of that investment (a ‘Kick-In Event’). If a Kick-In Event occurs, investors will be directly exposed to the downside performance only (not upside) of the lowest performing share at maturity. Alpha EVOLUTION is physically settled in that investors will receive the value of this exposure at maturity in the form of the Delivery Asset, being Westpac Banking Corporation (WBC) shares or the investor can choose cash settlement. Monthly income payment levels depend on the share portfolio selected and the time/price at which the Alpha EVOLUTION investment is made, indicative coupons as at the time of the PDS issue with the Final Payment Rate to be set on the Strike Date. For full details see the PDS for Alpha EVOLUTION dated 18 March 2009 issued by UBS.
2. Subject to market conditions prevailing at the date of your investment, check with Alpha or your adviser for specific coupons at the time of your investment. Indicative coupons as at the time of the PDS issue with the Final Payment Rate to be set on the Strike Date. For full details see the PDS for Alpha EVOLUTION dated 18 March 2009 issued by UBS.
3. Capital protection is only available if the value of all of the shares in your portfolio remains above 60% of their starting price at the commencement of the Alpha EVOLUTION investment for the term of the investment.