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Investment Ideas - Yield Enhancement

Investment Opportunity In SMI Heavyweights

Monday, 15 January 2024 Reading time : 2 minutes

The Swiss blue chip index SMI recorded a gain of 4.1% last year. This performance was hampered in particular by the weak performance of the index heavyweights Roche and Nestlé. The two SMI members lost 27.1% and 9% of their market value respectively over the year. Novartis shares fared better, gaining around 1.5% in 2023. Together, the three stocks account for around half of the SMI in terms of market capitalisation, according to data from stock exchange operator SIX.

The mixed performance of the three SMI heavyweights opens up catch-up potential in the new year. The bonus certificate on Nestlé, Novartis and Roche is suitable for investors who anticipate gains in the SMI and at the same time want to hedge against possible losses.

The bonus certificate features a conditional capital protection of 75%, a bonus level of 120% and 1:1 participation. In detail: If one of the three equities falls below the 75% barrier during the lifetime of the product, the weakest equity is delivered at maturity. Conversely, if the barrier is not breached, the redemption is 120% or more if the performance of the three equities is above the bonus level.

The Bonus Certificate on Nestlé, Novartis and Roche is open for subscription until 16 January 2024.


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