1140 Capital protection certificate with coupon
Product type number as specified by the Swiss Structured Products Association (SSPA): 1140
Please consult the termsheet and the accompanying issue prospectus for information on the exact product functionality, product details and risks.
Market expectations
- Rising underlying
- Major price corrections in the underlying are possible
Characteristics
- The amount of the repayment upon expiry is at least the amount of the capital protection.
- The capital protection is expressed as a percentage of the nominal amount (e.g. 100%).
- The capital protection applies only to the nominal amount and not to the purchase price.
- The value of the product may fall below the capital protection level during the term.
- The amount of the coupon is dependent on the performance of the underlying.
- The profit potential is limited (coupon).
Advantages
- The minimum repayment specified at the beginning of the term is only guaranteed on expiry.
- The minimum coupon is paid out annually irrespective of the underlyings’ performance
- Participation in the underlyings’ performance is limited to the maximum coupon.
Disadvantages
- Capital protection applies only upon expiry. The value of the product may fall below the minimum repayment during the term.
- If the underlying rises sharply, the return compared with a direct investment is limited.
Product & scenarios
- Payment of the guaranteed minimum repayment on expiry.
- The coupon is paid out on the respective coupon payment date.
- The coupon corresponds to the average performance of the individual underlyings since issue limited by a minimum and maximum coupon.
Pay-off diagram upon expiry
Examples upon expiry
Product & scenarios
| |
Scenario 1 |
Scenario 2 |
Scenario 3 |
| Rising Underlying |
Rising underlying |
Falling underlying |
| 6 shares |
6 shares |
6 shares |
| 100% |
100% |
100% |
| 1% p.a.% |
1% p.a. |
1% p.a. |
| 6% p.a. |
6% p.a. |
6% p.a. |
| No |
Yes |
No |
| 6% |
6% |
6% |
| No |
No |
-10% |
| 5 years |
5 years |
5 years |
| 100% |
100% |
100% |
| Performance year 1 |
Performance in% |
Performance for calculation in% |
Performance in% |
Performance for calculation in% |
Performance in% |
Performance for calculation in% |
| Share A (weight 1/6) |
+5 |
+5 |
+3 |
+6 (Magnet) |
-12 |
-10 (Floor) |
| Share B (weight 1/6) |
+10 |
+6 (Cap) |
-1 |
-1 |
-6 |
-6 |
| Share C (weight 1/6) |
+15 |
+6 (Cap) |
+2 |
+6 (Magnet) |
-30 |
-10 (Floor) |
| Share D (weight 1/6) |
+10 |
+6 (Cap) |
-0.5 |
-0.5 |
-2 |
-2 |
| Share E (weight 1/6) |
+7 |
+6 (Cap) |
+1 |
+6 (Magnet) |
-9 |
-9 (Floor) |
| Share F (weight 1/6) |
+20 |
+6 (Cap) |
-4 |
-4 |
-17 |
-10 (Floor) |
Payoff
| |
Scenario 1 |
Scenario 2 |
Scenario 3 |
| (5% + 6% + 6% + 6% + 6% + 6%) / 6 = 5.83% |
(6% - 1% + 6% - 0.5% + 6% - 4%) / 6 = 2.08% |
(- 10% - 6% - 10% - 2% - 9% - 10%) / 6 = -7.83% |
| 5.83% |
2.08% |
1.00% (minimum coupon) |
Taxes
| Predominantly one-off interest payments (IUP) |
| No |
| Yes |
| No |
