Friday, 6 March 2026 Reading time : 3 minutes

The Swiss stock market has proven to be surprisingly resilient in the face of the turmoil triggered by the recent geopolitical events. Since the beginning of the year, the SPI has risen by around 0.7%, while the SMI has increased slightly by 0.2% (as of 5 March 2026, including dividends).

However, there are considerable differences in the performance of individual stocks within the indices. Financial stocks, in particular, are among the biggest losers on the SMI in the early stages of the year, with UBS falling by over 17% year-to-date. Partners Group (–15.3%) and Zurich Insurance (–11.1%) have also recorded significant price declines.

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

Minimum repayment at maturity
Capital protection products are characterised by the fact that the minimum repayment is fixed at the time of investment. With this product, investors will receive at least 98% of the nominal value at maturity, regardless of how the three shares perform. It is important to understand that the capital protection only applies on the expiry date. During the two-year 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 participate in price increases. The participation rate for this product is 70%, calculated based on the initial fixing. Investors do not participate in the performance of the overall basket, but rather in that of the security with the lowest price gains at maturity (worst of). This means that, if one or more securities are trading below the initial fixing at the end of the term, 98% of the nominal value will be repaid.

Analysts identify catch-up potential
This product is particularly suitable for investors who value security and expect the shares to rise. Based on the current price level, analysts identify catch-up potential for all three stocks. According to Bloomberg, the twelve-month price target for UBS shares is CHF 37.60 (closing price on 5 March: CHF 30.60). The corresponding price targets are CHF 1,210.40 for Partners Group (CHF 832.60 as of 5 March 2026) and CHF 569.90 for Zurich Insurance (CHF 535.20 as of 5 March 2026). Zürcher Kantonalbank's research also rates all three shares as "overweight".

However, individual market expectations are always key for the investment decision. As with any investment, investors must consider the risks involved. These include issuer risk and general market risk.

The product is in subscription until March 23, 2026.

Capital protection note on Partners Group, UBS und Zurich Insurance
Term: 24 months
Capital protection: 98%
Participation (worst of): 70%
Valor: 153 472 320

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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