Thursday, 31 December 2020 Reading time : 4 minutes

The Favorite Swiss stocks 2021
The new Tracker Certificate combines ten Swiss equities with the most promising outlook according to the Research of Zürcher Kantonalbank. This basket seeks to outperform the overall market. The Tracker Certificates on the annual Favorite stocks have achieved a cumulative outperformance of 35.56% (as of Dec. 31, 2020) against SPI® since 2015. 

Due to the Covid-19 pandemic, the global economy suffered an extraordinary economic setback. As a result, both central banks and governments have reacted with swift measures to cushion as much as possible the negative economic consequences. The promises of a vaccine and the affirmation of the central banks to continue their ultra-loose monetary policy have ultimately led to a rapid recovery on the stock markets. The positive developments should also determine the upward trend on the stock markets in 2021.

The new basket in detail
The ten selected stocks - five large caps (Alcon, AMS, Nestlé, SGS and Schindler) and five small and mid caps (Ascom, Conzzeta, Helvetia, Siegfried and SoftwareONE) - are weighted in the basket in the initial fixing period with 12.50% (large caps and Helvetia), 7.50% (mid caps) and 5.00% (small caps) respectively. Based on market capitalization, small and mid cap companies are weighted relatively higher in the basket. This may result into a higher earnings momentum and a larger gain potential, particularly in positive market phases.

One of the Favorites among the large caps is Alcon, a leading manufacturer of medical products in the field of ophthalmology. We are also betting on the technology stock AMS, which has catch-up potential following the major takeover of Osram. Nestlé is becoming more agile, with stronger growth after its corporate restructuring. SGS is the market leader in the structurally attractive TIC market, and Schindler is well positioned in the global lift market with new installations and the service business. In the small and mid caps, we focus on Ascom, which is benefiting from the digitalisation trends in the healthcare sector. At Conzzeta, the focus strategy will lead to high excess liquidity. Helvetia's good operating performance is not reflected enough in the share price. Siegfried is a high-growth pharmaceutical supplier with potential for margin improvement. At SoftwareONE, the digital transformation is the most important growth driver.

All selected stocks are classified as “overweight” by Zürcher Kantonalbank at the time of issue. No dividends will be paid out to the investor. The net dividends of the underlying components will be fully reinvested in the structured product.

Tracker Certificate «ZKB Favorite Stocks 2021»

• Diversification due to combination of large, mid & small caps
• Issue price: CHF 100.00
• Net dividends are reinvested
• Short tenor of one year
• Title selection by Zürcher Kantonalbank's research

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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.