Friday, 10 September 2021 Reading time : 2 minutes

Inflation expectations rise globally

The Tracker Certificate combines 38 stocks selected by ZKB Asset Management, which benefit from an environment of increased global inflation expectations. These stocks tend to be quality companies with pricing power and/or strong market positions.

A change in the investment regime, from a more deflationary to an inflationary environment, is just manifesting itself in 2021. The outcome will ultimately depend on how the G7 central banks react if they turn out to have underestimated the inflationary pressures emanating from the pandemic and the subsequent strong economic recovery. After a prolonged period of low inflation, consumer price indices currently stand at 5% in the U.S. and almost 2% in Europe (as of May 2021). While certain market participants are convinced that these growth rates will level off as the economic cycle normalizes, there are also signs that the shortages on the supply side of the economy in particular (raw materials, labor, etc.) could last longer. Our Global Reflation Basket aims to benefit from these inflationary pressures. The basket focuses on companies with strong pricing power or on stocks that tend to benefit from inflation. In an inflationary environment, equities are often relative winners compared to other asset classes, as quality companies are usually able to adjust to inflation.

The new basket in detail

The 38 selected shares are included in the basket at the initial fixing time with the weights indicated below. The geographical diversification and the broad positioning of the selected companies allow for the participation in the development of a basket of stocks which should benefit from an environment of increased global inflation.
There are no distributions to the investor. The net dividends distributed by the Underlying Components flow entirely to the Structured Product for reinvestment.

Tracker Certificate Static on «ZKB Global Reflation Basket»

• Broad diversification
• Maturity of 2 years
• Stock selection through ZKB Asset Management
• Termsheet USD 110 587 240
• Termsheet CHF 110 587 311

 

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.