Friday, 6 June 2025 Reading time : 2 minutes

During periods of market uncertainty, products with capital protection tend to be in high demand and can provide an appealing alternative to a direct investment in equities. 

The current subscription product is structured around three Swiss stocks: Alcon, Kühne + Nagel, and Sika. In the current year, the trio is lagging behind the Swiss market measured by the SPI (+9.7%, including dividends, as at 5 June 2025), with Sika in the lead with +3%, followed by Alcon with -6.4% and Kühne + Nagel with -7%. Zürcher Kantonalbank's research team has rated the three stocks ‘overweight’. 

Capital protection amounts to 96% of the nominal value and applies at maturity. However, price fluctuations may occur during the term. Additionally, the product has a participation component, enabling investors to benefit from price increases alongside capital protection. The participation rate is 70% and is based on the initial fixing. Rather than participating in the overall performance of the basket, investors participate in the performance of the stock with the lowest price gains at expiry.

Capital Protected Note on Alcon, Kühne + Nagel, Sika

Termsheet
Term: 18 months
Capital protection: 96%
Participation: 70%
Valor: 144 651 415

Indicative terms

 

Disclaimer
This communication is for marketing purposes. It is neither an offer nor an invitation to submit an offer, to purchase or to subscribe to securities and does not constitute investment advice. You should consult your advisors before making an investment decision. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, financial condition, development or performance of the issuer to be materially different from any future results, financial condition, development or performance expressed or implied by such statements. The present document has not been drawn up by the research department as defined in the rules of the “Directives on the Independence of Financial Research” published by the Swiss Bankers Association, hence these rules do not apply to this document. If securities are mentioned in the communication, the base prospectus, the final terms and any key information document may be obtained free of charge from Zürcher Kantonalbank, Bahnhofstrasse 9, 8001 Zurich, VRIS, and from www.zkb.ch/finanzinformationen.
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