UBS Daily Accrual Bill Money-mar by benbenzhou


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UBS Daily Accrual Bill
Money-market investment for less than
one year with daily interest accrual.
Ever upwards!

As a more conservative investor with a flexible investment horizon
you would like to continually increase the value of your assets
with the lowest possible risk. With the UBS Daily Accrual Bill you
can accrue interest and compound interest on a daily basis even
with smaller investment amounts.
What does the UBS Daily Accrual Bill offer you?

UBS Daily Accrual Bills are securities that are comparable
to a money market instrument in terms of their earning
potential and risk profile. Instead of interest being paid,
interest is capitalized on a daily basis at the SpotNext
market rate*, as reflected in the financial instrument’s
constant capital appreciation.

UBS Daily Accrual Bills have a term of just less than
one year and are issued every six months in the main
currencies, such as CHF, EUR, GBP and USD. They
can be traded at any time at the published prices.

With the UBS Daily Accrual Bill
interest and compound interest
are credited on a daily basis.
Transactions in UBS Daily Accrual Bills are free of
brokerage fees, withholding tax and federal
stamp duty and are therefore extremely attractive
for both long and short holding periods.

UBS Daily Accrual Bills are particularly suited to private
investors who wish to enjoy the benefits of a securitized
money market investment. What is particularly investor-
friendly is the fact that a foreign exchange position can
be assumed without the need for a foreign exchange
account. For investors who want to invest in the money
market over the long term, UBS Daily Accrual Bills offer
them the opportunity to reinvest the redemption
amount commission-free in subsequent bills, which
are issued periodically.

* SpotNext Market Rate:
  Interest rate fixed daily by UBS for one-day money market investments.
     Opportunities and risks.

     The risk profile of the UBS Daily Accrual Bill corresponds
     to that of a conventional money market investment
     that accrues interest on a daily basis. As the term is
     less than one year, UBS issues a new tranche every
     six months. As an investor you can trade the position
     during normal trading hours at the published prices.

UBS Daily Accrual Bills may be
bought through the usual sales
     Investors who do not need advice can use UBS
     e-banking. Internet orders may be placed 24 hours
     a day. For orders placed after 4 p.m., the following
     day’s rate shall apply.

     Trading takes place on official stock exchange days
     and during normal trading hours. The prices can be
     seen on the Internet at or

     The issuer reserves the right to repay UBS Daily
     Accrual Bills to the investor before maturity at the
     published prices.
The most important benefits at a glance

• Money market instrument for risk-conscious investors

• Daily capital appreciation through the capitalization
  of the prevailing daily interest (compound interest)

• As flexible and easy to trade as securities

• High flexibility owing to its small denomination

• Free of brokerage fees, withholding tax and
  federal stamp duty

Investor profile

Before making an investment decision, you should
first be clear about your own investment behaviour as
well as your investment expectations and objectives.

If more than one of the following statements matches
your profile, a UBS Daily Accrual Bill could be the right
investment for you.

• I wish to diversify my portfolio and seek a simple,
  transparent investment instrument that is largely in-
  dependent of the performance of the equity markets.

• As a risk-conscious investor, I wish to pursue a con-
  servative investment strategy and seek a product
  whose earnings potential is comparable to that of
  a conventional money market investment.

• Price transparency and flexibility are important con-
  siderations. I want to be able to sell the securities
  at any time at the published prices.
 This information is communicated by UBS AG and/or its associated                the advice of specialists you have consulted. Unless expressly agreed
 companies (“UBS”).                                                              otherwise, UBS does not act as financial advisor or fiduciary agent for
                                                                                 any transaction.
 UBS can at any time – either as principal or agent – hold positions, carry
 out purchases or sales or act as market maker in respect of securities,         This document is for the purpose of information only and does not consti-
 foreign exchange, financial instruments or other assets underlying the          tute an offer, a recommendation or an invitation to conclude a transaction
 transactions described in this document. UBS can provide investment             and may not be regarded as investment advice. The terms and conditions
 banking and other services for members of the Board of Directors of             of each investment are based exclusively on the detailed provisions –
 companies listed in this document and/or employ staff who perform the           including the risk discussions – contained in the information memorandum,
 function of members of the Board of Directors in the companies named.           in the prospectus or in other documents provided by the issuer in connec-
 UBS can pay or charge brokerage or retrocession fees in connection with         tion with the issue of the notes (“the prospectus”).
 these transactions. The hedging transactions that UBS carries out in
 connection with this transaction may have an impact on the price of the         UBS accepts no liability and provides no guarantee for information in this
 underlying security and on the likelihood of a relevant limit being exceeded.   document that originates from independent sources. This document may
                                                                                 be neither copied nor reproduced without the prior written consent of UBS.
 Structured transactions are complex and potential losses are high.
 UBS Daily Accrual Bills are products without capital protection. Before         Unless expressly referred to in the prospectus, no steps have been or are
 concluding the transaction, you should have your own advisor provide            being taken in legal systems in which the securities described herein could
 you with what you consider sufficient advice on the legal, supervisory,         be the object of a public subscription offer. When selling securities, all
 fiscal, financial and accounting implications and make your own invest-         applicable sales restrictions are to be observed in the legal systems in which
 ment, hedging and trading decisions (including decisions relating to the        the securities are being sold. This document may not be distributed in
 suitability of this transaction) on the basis of your own judgement and         the USA or to US citizens.

                                                                                                                                                                  This environmentally friendly paper has been produced using pulp bleached without chlorine.
                                                                                                                                                                  Also available in German, French and Italian. Printed in Switzerland, June 2004. 82165E

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 Marketing                                             Hotline: +41-1-239 11 11                             Domicile:
 UBS Daily Accrual Bill                                                         Europastrasse 1 and 2
 P.O. Box, CH-8098 Zurich                              E-Mail:                          CH-8152 Opfikon

 UBS Investment Bank is a Business Group of UBS AG

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