Monday, 17 November 2025 Reading time : 5 minutes

Swiss stock market heavyweights, as measured by the SMI, have performed well so far in 2025, gaining 12.4% (as of 14 November, including dividends). However, not all companies can look back on a successful year. Among the laggards is logistics company Kühne + Nagel, which has lost around a fifth of its market value this year. Flavour and fragrance manufacturer Givaudan has also significantly underperformed the overall market, losing over 12%. Nestlé shares, on the other hand, have risen again after a turbulent few months. They have gained almost 11% since the beginning of the year and are thus close to catching up with the SMI.

This is where the capital protection certificate comes into play. It enables investors to benefit from the potential upside of three SMI stocks while limiting their risk of loss.

Capital protection and upside potential
Capital protection products are characterised by the fact that the minimum repayment is fixed from the outset. With the current product in subscription, investors will receive at least 97% of the nominal value after 18 months, regardless of how the three shares perform. It is important to understand that capital protection only applies at maturity. During the term, prices may fluctuate and fall below the capital protection level.

In addition to capital protection, the product offers a participation component, enabling investors to benefit from potential price increases. The participation rate is 100% and is calculated based on the initial fixing. Investors do not participate in the performance of the basket of shares, but in the performance of the equity with the lowest price gains at maturity. This means that, if one or more of the securities are trading below the initial fixing at the end of the term, 97% of the nominal value will be repaid.

Weighing opportunities and risks
This product is particularly suitable for investors who value security and believe that the three shares will increase in value. Individual market expectations are therefore always decisive when making an investment decision. As with any investment, investors must consider the associated risks. These include issuer risk and general market risk.

Zürcher Kantonalbank's research department rates the three shares 'overweight'.

The product is in subscription until 8 December 2025.

Capital protection note on Givaudan, Kühne + Nagel, Nestlé
Termsheet
Term: 18 months
Capital protection: 97%
Participation (Worst of): 100%
Valor: 149 283 123

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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