As such, 90% capital protection will not apply to unitholders if units are redeemed prior to, or after, the Capital Protection Date and may not apply in certain limited circumstances.  The 90% capital protection described above will only apply on the Capital Protection Date.  UBS will also receive amounts equivalent to withdrawal fees charged to Unitholders on withdrawal prior to the Capital Protection Date.  They also noted that UBS has continued to suffer massive capital outflows as clients withdrew 84 billion francs ($74.  The bank said it won’t receive capital from the Swiss government.

Fund

UBS said the fund would be capitalized with $6 billion of equity capital provided by UBS and $54 billion from the Swiss National Bank.  The local banking license in Mexico enables the firm to target pension funds in the country, a client base currently restricted to foreign banks.  The SNB will receive interest on the loans and is entitled to a share in any profits the fund makes.  The Fund still retains the potential to profit from upside performance above a certain level2.  It will transfer its exposure to the US mortgage market and other assets to a fund controlled by the central bank.  UBS will also have the opportunity to pass a further $9 billion in other securities to this fund, including the $5 billion worth of auction rate securities the bank was recently forced to buy back from UBS.