Thursday, 16 October 2025 Reading time : 3 minutes

Swiss financial stocks have performed robustly this year, with the corresponding SPI sub-index rising by 14.4% year-to-date (as of October 15, 2025, total return). This means financials have performed slightly better than the overall market, which has risen by 11.6% over the same period. However, significant performance differences exist within the financial sector. While insurer Helvetia and online bank Swissquote have outperformed the market, the private equity specialist Partners Group is among the SPI's laggards – this reflects the broad range of the Swiss financial industry. 

The bonus certificate on Helvetia, Partners Group, Swissquote, UBS and Zurich Insurance mirrors the variety of business models within the Swiss financial sector in a single product. With a bonus level of 115% and a European barrier at 69%, the product offers a combination of return opportunities and a defensive component. It is aimed at investors who want to participate in stagnating or slightly rising prices in Swiss financials without taking on the full risks of direct investment.

All five shares are rated 'overweight' by Zürcher Kantonalbank Research.

Safety buffer in uncertain markets
The 18-month bonus certificate on the five financials has a 69% barrier, which is monitored at expiry (European barrier). The product in addition features a bonus level of 115% and 1:1 participation. Specifically, this means that if the five shares are trading above the barrier at maturity, the redemption price will be 115% or higher if the value of the basket of shares is above the bonus level.

As this is a European barrier, whether one or more shares breach the barrier during the term is irrelevant for the repayment. Only the observation at the end of the term is relevant. If the barrier is breached at maturity – i.e. if the value of one or more of the equities has fallen by 31% or more compared to the initial fixing – the weakest share in the selection will be delivered and a loss will be incurred.

Bonus level opens up return opportunities
Compared to a direct investment in shares, the bonus certificate has the advantage of generating attractive returns even if share prices stagnate or fall slightly. This is owed to the bonus component, which guarantees a minimum repayment of 115% provided the barrier is not breached at expiry. If the basket value exceeds the bonus level, investors benefit from unlimited participation in the upside. The barrier serves as a safety buffer, which can be advantageous in uncertain market phases. However, investors forego any dividend payments compared to a direct investment. 

Weighing opportunities and risks
As with any investment, investors must consider the risks associated with this product. These include issuer risk, the risk of breaching the barrier and general market risk. Therefore, the decisive factors in the investment decision are always the individual investment needs and market expectations of the investors.

In subscription until October 29, 2025.

Product details
Bonus level: 115%
Barrier: 69% (European)
Term: 18 months
Currency: CHF
Valor: 149 281 052

Termsheet

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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