The ETRACS 2xLeveraged Long Wells Fargo Business Development Company Index is designed to track a leveraged investment in the Wells Fargo Business Development Company Index (the "Index"), and pay a variable quarterly coupon linked to the leveraged cash distributions associated with the underlying Business Development Company ("BDC") constituents, less financing costs and investor fees. The index was created in January 2011 and has no performance history prior to date.
|Name||ETRACS 2xLeveraged Long Wells Fargo Business Development Company Index|
|Underlying Index||Wells Fargo Business Development Company Index|
|Current Annual Index Yield*1||9.78%|
|Current Annual Leveraged Yield*1||18.71%|
|Primary Exchange||NYSE Arca|
|Initial Trade Date||May 24, 2011|
|Maturity Date||May 24, 2041|
|Annual Tracking Fee (%)*1||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
|Net Change||0.12||20 Day Volume Average||79,308.40|
|% Change||0.00||Shares Outstanding||3,775,000|
|High (52 week)||30.30||Market Cap||110,230,003.36|
|Low (52 week)||17.97||Daily Indicative Value||29.07|
|Updated on: May 21, 2013|
|Payment date||Amount per security||Ex-date||Record date|
|Total annual dividend paid 2012: $3.3596|
|Total annual dividend paid 2011: $1.6108|
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 (and elsewhere in this document) but not defined herein shall have the meanings attributed to them in the ETRACS Prospectus.
1 The Current Annual Index Yield as of May 20, 2011 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 annualized yields of each constituent BDC and their relative weights in the Index. The Current Annual Leveraged Yield is derived by multiplying the Current Annual Index Yield by the leverage factor, 2, and subtracting hypothetical fees of 1.11%. The hypothetical fees include the Annual Tracking Fee of .85% and an assumed financing rate of .258%. The actual Coupon Amounts payable under the ETNs (if any) are based on the cash distributions that a hypothetical holder of Index constituents would have been entitled to receive during the relevant period, reduced by the Accrued Fees. The Accrued Fees as of any date of determination are the sum of (i) The Accrued Tracking Fee as of such date (which is based on the Annual Tracking Fee), (ii) the Accrued Financing Charge as of such date and (iii) the Fee Shortfall as of the immediately preceding Coupon Valuation Date, if any. Because the Accrued Fees take into account the performance of the Index, as measured by the Index Factor, the absolute level of the Accrued Fees are dependant on the path taken by the Index Closing Level to arrive at its ending level. In addition, the Accrued Fees include a floating financing rate (i.e., a variable rate) rather than a fixed rate of .258%. Therefore, the assumed fees and financing charges used to calculate the Current Annual Leveraged Yield are purely hypothetical and will necessarily be different, and could be substantially different (either greater or less) than the actual fees and financing charges (i.e., the Accrued Fees) that will reduce the Coupon Amounts and ultimately determine the actual annual yield that an investor might receive under the ETNs. THE ACTUAL ANNUAL ETN YIELD THAT INVESTORS MAY RECEIVE WILL BE DIFFERENT, AND COULD BE SUBSTANTIALLY DIFFERENT (EITHER GREATER OR LESS) THAN THE CURRENT ANNUAL LEVERAGED YIELD. YOU ARE NOT GUARANTEED ANY COUPON OR DISTRIBUTION AMOUNT UNDER THE ETN.
2 The issuer credit rating is as of May 20, 2011 and pertains to the creditworthiness of UBS AG (that is, the ability of UBS AG to meet its obligations under the terms of the ETNs) and is not indicative of the market risk associated with the ETNs. The creditworthiness of UBS AG does not affect or enhance the likely performance of the ETNs other than with respect to the ability of UBS AG to meet its obligations thereunder. We have not obtained a rating from any rating organization with respect to the ETRACS ETNs.
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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