Product review: UBS offers growth from inflation

An unusually long tenor for a US structured product is one prominent feature of UBS’s Contingent Real-Return Performance Securities. Based on the S&P 500 and a US Consumer Price Index, returns are uncapped, although capital is not protected is the S&P 500 falls by 40%

This is a five-year growth product linked to the performance of the S&P 500 index and the non-seasonally adjusted US City Average All Items Consumer Price Index for All Urban Consumers (CPI). At the end of the product term, investors will receive returns equal to the growth in the best-performing index. Capital is not protected if either final index level is 50% or more below its initial level at maturity.

The product will pay returns equal to the best performing underlying provided the barrier