Affiliated Managers Group Inc SEC Filings

UBS AG is offering $1.808 million of Digital EURO STOXX 50® Index-Linked Medium-Term Notes maturing 25 June 2027. These senior unsecured notes provide a binary payoff structure combining a capped appreciation feature with partial downside protection.

Key economics

• Initial Underlier Level: 5,282.43 (EURO STOXX 50® closing on 1 Jul 2025)
• Cap / Maximum Settlement Amount: 116.20% of face ($1,162 per $1,000)
• Buffer Level: 85% of initial (4,490.0655)
• Downside Participation: if final index < buffer, loss = (index decline beyond 15%) × 1.1765%
• Term: ≈ 24 months; no interim coupons, calls or early redemption
• Estimated Initial Value: $996.50 (0.35% below issue price) reflecting internal funding and hedging costs
• Issue & Trade Dates: Trade 1 Jul 2025, Settle 9 Jul 2025 (T+5)
• Underwriting Discount: 0%; UBS Securities LLC distributes on a best-efforts basis

Payoff profile

• If the EURO STOXX 50® ends ≥ 85% of the initial level, investors receive the maximum $1,162 per $1,000—equating to a fixed 16.2% total return.
• If the index closes < 85%, principal is exposed 1:1.1765 to downside beyond the 15% buffer, potentially resulting in a total loss if the index falls to zero.

Risk highlights

• Credit risk: payments depend solely on UBS AG; the notes rank pari passu with other senior obligations.
• Market risk: limited upside versus full downside beyond the buffer; no participation above 16.2% even if the index surges.
• Liquidity risk: no listing; secondary market making is discretionary and expected to trade below theoretical value after the first three months.
• Tax & regulatory: treated as prepaid derivative contracts; Section 871(m) uncertainty for non-U.S. holders; not eligible for EEA/UK retail under PRIIPs.

Investor profile: suitable only for investors who 1) are moderately bullish or neutral on Eurozone equities over two years, 2) can forgo dividends and interim liquidity, 3) accept capped upside, and 4) understand UBS credit exposure.