The ETRACS Linked to the Wells Fargo Business Development Company Index due April 26, 2041 is designed to track an investment in the Wells Fargo Business Development Company Index ("Index"), and may pay a variable quarterly coupon linked to the cash distributions associated with the underlying BDC constituents, less investor fees. Note that if the BDCs do not make distributions or those distributions do not overcome the investor fees, then investors will not receive any coupons. The index was created in January 2011 and has no performance history prior to date.
|Name||ETRACS Linked to the Wells Fargo Business Development Company Index|
|Underlying Index||Wells Fargo Business Development Company Index|
|Current Annual Index Yield*||9.78%|
|Primary Exchange||NYSE Arca|
|Initial Trade Date||April 27, 2011|
|Maturity Date||April 26, 2041|
|Annual Tracking Fee (%)*||0.85% accrued on a daily basis|
* As of December 31, 2011. See 'Risk considerations & Benefits' as well as the 'Important legal information specific to ETRACS ETNs' link below for more information
The Current Annual Index Yield is calculated by Wells Fargo and is determined by taking the most recently declared distribution of each of the Business Development Companies that constitute the Index ("constituent BDC"), and creating an annualized yield for each constituent BDC by (i) multiplying that number by the dividend frequency and (ii) dividing the resulting number by the current market price of the applicable constituent BDC. The Current Annual Index Yield is the sum of the products of those individual yields of each constituent BDC and their relative weights in the Index. You are not guaranteed any coupon or distribution amount under the ETN.
|Net Change||0.05||20 Day Volume Average||35,337.05|
|% Change||0.00||Shares Outstanding||1,540,000|
|High (52 week)||27.89||Market Cap||40,255,599.98|
|Low (52 week)||21.29||Daily Indicative Value||26.14|
|Indicative Intra-Month Leverage Factor||1.00|
|Updated on: May 24, 2013|
|Payment date||Amount per security||Ex-date||Record date|
|Total annual dividend paid 2012: $1.7528|
|Total annual dividend paid 2011: $0.8082|
Source: UBS, NYSE and Bloomberg.
|3 months||6 months|
|Wells Fargo Business Development Company Index||-11.15%||-12.02%||9.53%||-10.40%|
|S&P 500 Total Return||0.51%||0.55%||11.82%||-3.69%|
|S&P 500 Financials Total Return Index||-18.56%||-19.94%||10.82%||-14.44%|
|S&P Listed Private Equity Index||-19.68%||-21.12%||8.33%||-20.98%|
*Since Index inception
Historical results for the period from January 28, 2011 through December 31, 2011.
Source: UBS Investment Bank, publicly available data.
Historical information presented is as of December 31, 2011 and is furnished as a matter of information only. Historical performance of the Index is not an indication of future performance.
Future performance of the Index may differ significantly from historical performance, either positively or negatively.
The ETRACS ETNs are subject to investor fees. As a result, the return on the ETNs will always be lower than the total return on a direct investment in the Index or the Index constituents.
|Company Name||Symbol||Index Weight|
|American Capital Ltd||ACAS||10.86%|
|Ares Capital Corp||ARCC||9.78%|
|Apollo Investment Corp||AINV||9.71%|
|Prospect Capital Corp||PSEC||9.55%|
|Fifth Street Finance Corp||FSC||6.20%|
|Main Street Capital Corp||MAIN||5.54%|
|Solar Capital Ltd||SLRC||4.76%|
|Triangle Capital Corp||TCAP||4.43%|
|PennantPark Investment Corp||PNNT||4.25%|
|BlackRock Kelso Capital Corp||BKCC||3.86%|
|Hercules Technology Growth Capital Inc||HTGC||3.57%|
|New Mountain Finance Corp||NMFC||2.89%|
|Capital Southwest Corp||CSWC||2.35%|
|TICC Capital Corp||TICC||2.34%|
|Medley Capital Corp||MCC||2.31%|
|Golub Capital BDC Inc||GBDC||1.88%|
|THL Credit Inc||TCRD||1.80%|
|MCG Capital Corp||MCGC||1.73%|
|MVC Capital Inc||MVC||1.50%|
|Medallion Financial Corp||TAXI||1.37%|
|KCAP Financial Inc||KCAP||1.17%|
|Fidus Investment Corp||FDUS||1.14%|
|Gladstone Investment Corp||GAIN||1.09%|
|Gladstone Capital Corp||GLAD||0.97%|
|Stellus Capital Investment Corp||SCM||0.89%|
|Solar Senior Capital Ltd||SUNS||0.84%|
|NGP Capital Resources Co||NGPC||0.81%|
|Horizon Technology Finance Corp||HRZN||0.71%|
|Harris & Harris Group Inc||TINY||0.58%|
|WhiteHorse Finance Inc||WHF||0.57%|
|OFS Capital Corp||OFS||0.55%|
Source: Wells Fargo, As of March 6, 2013
[WFBDC index underlies BDCS and BDCL]
The graph illustrates the historical returns of the Index from January 28, 2011 through December 31, 2011 in comparison with other benchmark indices. Historical performance of the Index is not an indication of future performance. Future performance of the Index may differ significantly from historical performance, either positively or negatively. The ETRACS ETNs are subject to investor fees. As a result, the return on the ETNs will always be lower than the total return on a direct investment in the Index or the Index constituents.
Selected risk considerations:
An investment in the ETRACS ETNs involves risks. Selected risks are summarized here, but we urge you to read the more detailed explanation of risks described in the "Risk Factors" section of the prospectus supplement for the ETRACS ETNs (the "ETRACS Prospectus"). Capitalized terms used below but not defined herein shall have the meanings attributed to them in the ETRACS Prospectus.
Important legal information specific to ETRACS ETNs
UBS has filed a registration statement (including a prospectus, as supplemented by a prospectus supplement for each offering of the ETRACS ETNs) with the Securities and Exchange Commission (the "SEC") for the offerings to which this communication relates. Before you invest, you should read these documents and any other documents that UBS has filed with the SEC for more complete information about UBS and the offerings to which this communication relates. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, you can request the prospectus and any applicable prospectus supplement by calling toll-free (+1-877-387 2275).
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