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Structured products represent an attractive supplement to direct financial assets such as equities, bonds, currencies etc. Discover new perspectives and appropriate investment solutions with these innovative and flexible investment instruments, even in challenging market environments.

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Was ist ein Strukturiertes Produkt?

Wie entsteht ein Strukturiertes Produkt?

Strukturierter Produktvorteil 1: Jede Marktmeinung ist abbildbar

Ihr Wegweiser zum Strukturierten Produkt: Die SVSP Swiss Derivative Map

Die wesentlichen Risikofaktoren

Wie finde ich das richtige Produkt?

Markterwartung Basiswert

Hilfsmittel

Risikokennzahl

Emittentenrisiko

Was sind die gängigsten Strukturierten Produkte?

Kapitalschutzprodukte

Renditeoptimierungs – Produkte

Partizipations – produkte

Anlageprodukte mit Referenzschuldner

Hebelprodukte

Frequently Asked Questions

What are Structured Products?

Structured products are innovative, flexible investment instruments and an attractive alternative to direct financial investments such as shares, bonds, currencies and the like …
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How important are structured products to the Swiss financial center?

The more than 20 product types have turned Switzerland into an internationally leading innovator that has demonstrated its strength again and again …
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What is the present state of the Lehman Brothers bankruptcy proceedings?

A few products were issued by full LBHI subsidiary Lehman Brothers Finance AG ("LBF"), a Swiss, limited-liability company domiciled in Zurich …
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What advantages are there in investing in structured products?

Structured products provide investors with any risk profile and in any market scenario with an appropriate repayment profile yields possible in growing, sinking or sideways-moving markets …
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Who may issue and sell structured products in Switzerland?

Only Swiss banks, Swiss insurers, Swiss stock brokers and foreign institutes subject to Swiss prudential supervision …
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Where are issuer ratings posted?

Law requires issuers of structured products to publish their rating and that of their guarantor, if any, in the simplified prospectus of the product concerned …
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Is it possible to insure against issuer risk?

Issuer risk may be secured with collateral secured instruments (COSI) since 2009 …
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How are structured products regulated?

Structured products may be guaranteed and sold to the public by supervised financial companies exclusively …
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How does the Association protect investors?

The Association seeks an optimal balance between protective regulation and investor responsibility …
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Which investors should make use of structured products?

Structured products are ideal for investors seeking innovative, flexible investment instruments as an alternative to direct financial investments such as shares, bonds and currencies, etc. …
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Potential Suggestions

Products with great potential

Individual investment solutions tailored precisely to your needs and your market view can be implemented swiftly and in a straightforward manner. In contrast to a direct investment, this means that you can fine-tune your investment specifically to reduce risk or increase yield prospects. Structured products thus provide you with a means of earning attractive returns even when share prices are on a sideways or slightly downward trend. Structured products are also traded on the stock exchange. This offers you the advantage of a high level of transparency and neutral supervision of trading. The issuers of structured products additionally ensure high liquidity and tradeability, facilitating straightforward purchasing and selling of the products.

Here is a selection of investment opportunities harbouring such potential:

Potential proposition I of the tracker certificate

Your market expectations

You expect the underlying to rise. The underlying performance may be moderate (e.g. +10%) or strong (e.g. +40%).

 

Your investment aim

You wish to broaden your investment spectrum and are looking for investment opportunities outside of the traditional asset categories. You are interested in commodities and are seeking an investment opportunity within this asset category. You assume that the value of silver in particular will rise in the future.

 

Product

Participation product / Tracker Certificate (1300, in accordance with Swiss Derivative Map of the Swiss Structured Products Association) for silver.

 

Potential of tracker certificates

Tracker certificates harbour the potential to tap into new markets or strategies which are otherwise difficult to access for the investor or entail high costs. Tracker certificates based on indices or baskets also enable broadly diversified investments with a single transaction.

A tracker certificate provides the investor with an opportunity to participate in the commodity’s price gains. The tracker certificate is simple to buy and sell during stock exchange opening hours.

 

Your risk tolerance

You are prepared to accept the same loss potential as applies to the underlying and are aware of the issuer risk.

 

Term

The term is unlimited (“open-end”).

Payout profile

graph7

 

Underlying

1 ounce of silver (Bloomberg ticker: SILV <Cmdty>)

 

Scenario analysis

 

Underlying (U) Tracker certificate
Level U perf. as % of issue price Certificate perf.
USD 19.50 (70%) -30% USD 19.50 (69%) -31%
USD 22.29 (80%) -20% USD 22.29 (79%) -21%
USD 25.07 (90%) -10% USD 25.07 (89%) -11%
USD 27.86 (100%) 0% USD 27.86 (99%) -1%
USD 30.65 (110%) 10% USD 30.65 (109%) 9%
USD 33.43 (120%) 20% USD 33.43 (119%) 19%
USD 36.22 (130%) 30% USD 36.22 (129%) 29%
USD 39.00 (140%) 40% USD 39.00 (139%) 39%
Underlying (U)
Level U perf.
USD 19.50 (70%) -30%
USD 22.29 (80%) -20%
USD 25.07 (90%) -10%
USD 27.86 (100%) 0%
USD 30.65 (110%) 10%
USD 33.43 (120%) 20%
USD 36.22 (130%) 30%
USD 39.00 (140%) 40%
Tracker certificate
as % of issue price Certificate perf.
USD 19.50 (69%) -31%
USD 22.29 (79%) -21%
USD 25.07 (89%) -11%
USD 27.86 (99%) -1%
USD 30.65 (109%) 9%
USD 33.43 (119%) 19%
USD 36.22 (129%) 29%
USD 39.00 (139%) 39%

The scenario analysis based on a holding period of one year shows that the tracker certificate offers profit and loss potential comparable to that of the underlying. The possible lower yield shown here is attributable to the fee incorporated in the product.

 

Discover the potential

The presented product offers an appropriate means of investing in silver without having to physically acquire the underlying. The issuer guarantees tradeability during stock exchange opening hours.

Potential proposition II of the barrier reverse convertible

Your market expectations

You expect the ABB share to move sideways in the next 12 months and do not rule out minor price drops.

 

Your investment aim

You wish to profit from the ABB share’s sideways trend in the form of a fixed coupon. Minor price drops should not affect redemption of your nominal.

 

Product

Yield optimisation product / Barrier Reverse Convertible (1230, in accordance with Swiss Derivative Map of the Swiss Structured Products Association) for ABB registered share with the following product details:

ABB share price at issue (strike): CHF 16.-

Barrier at 75% of ABB share price on issue: CHF 12.-

Coupon: 6% p.a.

Nominal per certificate: CHF 1,000.-

 

Potential of barrier reverse convertibles

Barrier reverse convertibles offer the potential to realise income by way of a fixed coupon even in markets subject to a sidewards trend. In return for foregoing strongly increasing underlying prices and possible dividends, you receive a coupon rated at 6% p.a. Redemption of the nominal of CHF 1,000.- per certificate is guaranteed as long as the price of the ABB share does not touch or drop below the barrier of CHF 12.- during the term of the coupon. Should a breach of the barrier occur and the ABB share price be higher or equivalent to the strike of CHF 16.- at maturity, the nominal will also be redeemed. If the ABB share price is lower than the strike at maturity, however, share delivery takes place. The coupon is paid regardless of the underlying development.

In addition to instruments based on individual underlyings, products encompassing several underlyings are also available. In the latter case, only the underlying with the weakest performance is of relevance (“Worst of”). This means that higher coupons or lower barriers are attainable, subject to a higher level of risk – often employing several underlyings.

 

Your risk tolerance

You seek reduced risk via a risk buffer, at the same time foregoing the opportunity of participating in strongly rising underlyings and possible dividends. You are also aware of the issuer risk. You are further aware that if the barrier is touched and the share price is below the strike at maturity, the underlying shares will be assigned to your account.

 

Term

The term is 1 year.

Payout profile

Diagramme_Potenzial_430x240px_e-2

 

Underlying

ABB registered share (Bloomberg ticker: ABBN VX <Equity>)

 

Scenario analysis

Underlying (U) at maturity Redemption at maturity
Level U performance Without barrier breach With barrier breach
CHF 09.60 -40% 66% (-34%)
CHF 11.20 -30% 76% (-24%)
CHF 12.80 -20% 106% (+6%) 86% (-14%)
CHF 14.40 -10% 106% (+6%) 96% (-4%)
CHF 16.00 0% 106% (+6%) 106% (+6%)
CHF 17.60 10% 106% (+6%) 106% (+6%)
CHF 19.20 20% 106% (+6%) 106% (+6%)
CHF 20.80 30% 106% (+6%) 106% (+6%)
Underlying (U) at maturity
Level U performance
CHF 09.60 -40%
CHF 11.20 -30%
CHF 12.80 -20%
CHF 14.40 -10%
CHF 16.00 0%
CHF 17.60 10%
CHF 19.20 20%
CHF 20.80 30%
Redemption at maturity
Without barrier breach With barrier breach
66% (-34%)
76% (-24%)
106% (+6%) 86% (-14%)
106% (+6%) 96% (-4%)
106% (+6%) 106% (+6%)
106% (+6%) 106% (+6%)
106% (+6%) 106% (+6%)
106% (+6%) 106% (+6%)

Discover the potential

Few products offer the possibility of realising profits in markets subject to sideways trends. The presented Barrier Reverse Convertible offers a fixed coupon of 6% p.a. and redemption of 100% of the nominal as long as the ABB share does not touch or drop below the barrier at CHF 12.- throughout the term of the investment. Even if a barrier breach occurs, maximum redemption remains possible. This applies when the underlying price has risen above the strike again at maturity.

Potential proposition III of the capital protection certificate

Your market expectations

You expect the European stock market to rise but cannot rule out a strong drop in the underlying price.

 

Your investment aim

You wish to invest in the European stock market and to at least recover your invested capital (to the nominal amount) at maturity, irrespective of the market’s performance. If the underlying price rises, you wish to participate in the gains.

 

Product

Capital protection product / Capital Protection Certificate with Participation (1100, in accordance with Swiss Derivative Map of the Swiss Structured Products Association) for EURO STOXX 50®. The participation rate in underlying rises stands at 60% and the capital protection level stands at 100% of the nominal (i.e. CHF 1,000).

 

Potential of capital protection certificates

The potential offered by capital protection certificates lies in their built-in capital protection. By investing in a capital protection certificate, you can participate in the performance of the European stock market, for example, while at the same time benefiting from capital protection. Should the European stock market have fallen by 10% upon the capital protection certificate reaching maturity, you will nevertheless recover a minimum sum to the amount of the nominal. If the stock market is up at maturity, you will participate in the performance at the specified participation rate.

 

Your risk tolerance

You wish to participate in the performance of an underlying with a safety net. Should the market not perform according to your expectations, the guaranteed amount will be repaid at maturity. You are aware of the issuer risk.

 

Term

The term is 3 years.

Payment profile at maturity

Diagramme_Potenzial_430x240px_e-3

 

Underlying

Indice EURO STOXX 50® (Bloomberg Ticker: SX5E <Index>)

 

Scenario analysis

Underlying (U) at maturity Repayment on
capital protection
certificate at maturity
Level U performance as % of nominal
1’534.40 (70%) -30% 100%
1’753.60 (80%) -20% 100%
1’972.80 (90%) -10% 100%
2’192.00 (100%) 0% 100%
2’411.20 (110%) 10% 106%
2’630.40 (120%) 20% 112%
2’849.60 (130%) 30% 118%
3’068.80 (140%) 40% 124%
Underlying (U) at maturity
Level U performance
1’534.40 (70%) -30%
1’753.60 (80%) -20%
1’972.80 (90%) -10%
2’192.00 (100%) 0%
2’411.20 (110%) 10%
2’630.40 (120%) 20%
2’849.60 (130%) 30%
3’068.80 (140%) 40%
Repayment on
capital protection
certificate at maturity
as % of nominal
100%
100%
100%
100%
106%
112%
118%
124%

Discover the potential

Should the market perform as expected, as a purchaser of the capital protection certificate you will participate in this positive performance. In the event of a severe drop in the market, your investment is protected to thenominal amount.

Potential proposition IV of the bonus certificate

Market expectations

Let’s assume that, in the current positive market environment, you would expect the price of Zurich Insurance shares to rise or, worst case, to move sideways. You would assume that during the bonus certificate’s term, the Zurich Insurance share price will not breach or fall below the barrier.

 

Investment preference

You would like to benefit from the sideways-moving or rising Zurich Insurance share price in the form of a bonus yield. Minor price declines down to the barrier ought not to influence repayment of the nominal and the bonus yield. In addition, above the bonus level you would benefit to an unlimited extent if the Zurich Insurance share price rises.

 

Product

Participation product / Bonus certificate (1320, pursuant to Swiss Structured Products Association’s Swiss Derivative Map) on Zurich Insurance shares, as follows:
Share price at time of issue (reference price): CHF 268.00
Barrier at 75% of share price at time of issue: CHF 201.00
Bonus level (strike level) at 115% of share price at time of issue: CHF 308.20
Bonus yield: 15% (10% p.a.)
Issue price: CHF 268.00

 

Term

1.5 years.

 

Potential

The potential of bonus certificates lies in unlimited participation in price rises, and an attractive bonus in sideways-tending or slightly falling markets. In addition you benefit from a risk buffer.
Repayment at maturity depends on the level of the underlying security’s price at final fixing, and whether Zurich Insurance shares have breached or fallen below the CHF 201.00 barrier during the term.
Provided the barrier has not been breached, at maturity the investor receives a cash payment equivalent to the final price of the Zurich Insurance share, but no less than the bonus level. If, for instance, at maturity Zurich Insurance shares are at 85% of the starting level, the investor’s repayment is 115% (Bonus level). If at maturity Zurich Insurance shares are at 135% of the starting level, the investor receives repayment of 135% of the nominal (CHF 1,350).
Should, on the other hand, Zurich Insurance shares breach or drop below the barrier of 75% of the starting price (CHF 201.00) during the term, repayment at maturity is at 1:1 of the final price of Zurich Insurance shares. Should Zurich Insurance shares then close at 85% of the starting level, the investor is paid 85% of the nominal (CHF 850.00). Should Zurich Insurance shares close at 110% of the starting price, the investor is paid 110% of the nominal (CHF 1,100.00).
Depending on its characteristics, in specific scenarios a product may specify delivery of the underlying.
Next to the characteristic of individual underlyings, products are available with multiple underlyings. In that case the underlying with the worst price development (“worst of”) applies. Thus with increased risk – often by using a number of underlyings – higher bonus yields and/or lower barriers are possible.
Purchase and sale of the bonus certificate during stock exchange opening hours is straightforward.

 

Risk readiness

You would like to reduce risk by means of a risk buffer while dispensing with dividend payments. You are aware of issuer risk. You also realize that if the barrier is breached and the share price is below the reference price at the end of the term, the underlying securities are placed in your deposit should the product envisage delivery of the underlying.
You are prepared to bear the same potential loss as that of the underlying, and are aware of issuer risk.

Repayment profile
Diagramme_Potenzial_430x240px_e-4

 

Underlying

Zurich Insurance shares (Bloomberg Ticker: ZURN VX <Equity>)

 

Scenario analysis at maturity

Underlying’s value (UV)
at maturity
Repayment
at maturity
Level UV performance Without
breaching barrier
Breaching barrier
CHF 160.80 -40% 60% (-40%)
CHF 187.60 -30% 70% (-30%)
CHF 214.40 -20% 115% (+15%) 80% (-20%)
CHF 241.20 -10% 115% (+15%) 90% (-10%)
CHF 268.00 0% 115% (+15%) 100% (0%)
CHF 294.80 10% 115% (+15%) 110% (+10%)
CHF 321.60 20% 120% (+20%) 120% (+20%)
CHF 348.40 30% 130% (+30%) 130% (+30%)
Underlying’s value (UV)
at maturity
Level UV performance
CHF 160.80 -40%
CHF 187.60 -30%
CHF 214.40 -20%
CHF 241.20 -10%
CHF 268.00 0%
CHF 294.80 10%
CHF 321.60 20%
CHF 348.40 30%
Repayment
at maturity
Without
breaching barrier
Breaching barrier
60% (-40%)
70% (-30%)
115% (+15%) 80% (-20%)
115% (+15%) 90% (-10%)
115% (+15%) 100% (0%)
115% (+15%) 110% (+10%)
120% (+20%) 120% (+20%)
130% (+30%) 130% (+30%)

Discover the potential

If the expected price developments happen, as buyer of the bonus certificate you benefit from the underlying security’s positive price development. In the case of sideways movement or a slight fall in the price of Zurich Insurance shares, you can still achieve a 15% bonus yield. If the barrier is breached, the bonus certificate becomes a tracker certificate.

Potential proposition V, Hedging with Mini-Futures (Short)

Market expectation

After price gains on the Swiss stock market, you expect there might be profit-taking and thus, a subsequent fall in prices.

 

Investment preference

You intend to maintain your portfolio of Swiss shares, but in the short term you would like to hedge against falling prices. You would like to minimize the outlay, avoid high transaction costs and continue to benefit from shareholder rights.

 

Product

Your portfolio correlates closely with the Swiss Market Index® (SMI®), which is why you choose Mini-Future (Short) on the SMI® from the leverage products category (product category 2210 according to the SSPA’s Swiss Derivative Map).
Product details:
Financing level: 8’750
Stop-loss threshold: 8’575
Ratio: 100
Value of Mini-Future (Short): CHF 9.50
SMI® price: 7’800

 

Term

The term is unlimited (open-ended)

 

Potential of Mini-Futures

With Mini-Futures, investors finance only a fraction of the underlying instrument. However, the development of the underlying is fully reflected in the development of the Mini-Future. The issuer takes on the remainder, thefinancing level. The low capital input creates a leverage effect. Mini-Futures have a built-in stop-loss threshold that limits possible price losses and thus ensures that there is no margin call, as could happen with classic futures contracts. Purchase and sale of Mini-Futures during stock exchange opening hours is straightforward. Mini-futures are suitable on the one hand for investors with increased risk appetite, who wish to participate disproportionately in market developments by means of a leveraged investment. On the other hand Mini-Futures can be used to hedge an existing portfolio. A portfolio consisting of Swiss shares that correlates closely with the SMI® can be relatively well hedged with a Mini-Future (Short) on the SMI®.

 

Risk appetite

Mini-Futures are leverage products. The lever always works in both directions. The leverage indicates how strongly a Mini-Future follows the underlying. If, for instance, the underlying falls by 1%, the value of the Mini-Future (Short) with a leverage of 5 increases 5%. The hiegher the leverage, the more sensitively Mini-Futures react to price changes in the underlying. Since this concerns a hedging position for the existing portfolio of shares, the Mini-Future (Short) risk has to be viewed in the context of the portfolio. The value of the Mini-Future (Short) increases if the underlying dicreases, and vice versa. The Mini-Future (Short) position can thus balance out market fluctuations. But should the underlying increase sufficiently to breach the stop-loss threshold, the Mini-Future (Short) expires immediately and the redemption value is paid out. In that case the hedging function is no longer present. To maintain the hedge, a new Mini-Future (Short) would have to be added. Therefore the gap between the financing level (or the stop-loss threshold) and the price of the underlying has to be chosen with care. Because the closer the financing level is to the price of the underlying, and therefore the smaller the necessary capital inputy, the greater is the likelihood that the Mini-Future (Short) will trigger a stop-loss.

 

Payout profile

Diagramme_Potenzial_430x240px_e-5

 

Underlying

SMI® (Bloomberg Ticker: SMI)

 

Scenario analysis
You would like to hedge your portfolio, consisting of Swiss shares valued at CHF 10’000, against a slump in the market and you buy mini-futures (short) on the SMI® (as at 7’800).

Selection of different Mini-Futures (Short) on the SMI®

Underlying SMI® price Ratio Fin.Level Stop
Loss
Leverage Value
Mini
SMI® 7’800 100 8’500 8’330 11.14 7.00
SMI® 7’800 100 8’750 8’575 8.21 9.50
SMI® 7’800 100 9’000 8’820 6.50 12.00
SMI® 7’800 100 9’250 9’065 5.38 14.50
SMI® 7’800 100 9’500 9’310 4.59 17.00
Underlying
SMI®
SMI® price 7’800
Ratio 100
Fin.Level 8’500
Stop
Loss
8’330
Leverage 11.14
Value
Mini
7.00
Underlying
SMI®
SMI® price 7’800
Ratio 100
Fin.Level 8’750
Stop
Loss
8’575
Leverage 8.21
Value
Mini
9.50
Underlying
SMI®
SMI® price 7’800
Ratio 100
Fin.Level 9’000
Stop
Loss
8’820
Leverage 6.50
Value
Mini
12.00
Underlying
SMI®
SMI® price 7’800
Ratio 100
Fin.Level 9’250
Stop
Loss
9’065
Leverage 5.38
Value
Mini
14.50
Underlying
SMI®
SMI® price 7’800
Ratio 100
Fin.Level 9’500
Stop
Loss
9’310
Leverage 4.59
Value
Mini
17.00

The above Mini-Futures (Short) have different financing levels, but are all suitable for hedging. The choice of financing levels determines your capital input for the hedging position. The closer the financing level is to the SMI® price, the less funds are needed to hedge the portfolio. On the other hand, the risk increases that the Mini-Futures (Short) will trigger a stop-loss. Your share portfolio would then, once again, be subject to the full market risk – until new hedging is put in place by opening another Mini-Future (Short) position or, alternatively, selling the portfolio of shares.

Adjusting financing level and stop-loss threshold

The financing level and stop-loss threshold of a Mini-Future (Short) do not remain constant. In the case of Mini-Futures (Short), the investor pays the issuer’s interest margin and receives an interest credit (short term LIBOR rate) for the short position opened – relating to the respective financing level. Financing costs are applied overnight against the financing level, with the effect that the financing level of Mini-Futures (Short) decreases *. A positive interest credit can reduce financing costs. However it should be noted that the CHF LIBOR might be negative. A declining financing level has a negative effect on the value of Mini-Futures (Short). In order to prevent the value of a Mini Future (Short) from becoming negative and a resulting margin call, Mini-Futures (Short) are equipped with a security mechanism. A stop-loss thresholdis set for this purpose. Should it be touched or exceeded, the mini-future (short) expires immediately. The stop-loss threshold is fixed with a predefined buffer relative to the financing level, and is adjusted on a monthly basis. The specific modalities can vary slightly from issuer to issuer **.

*The financing level of a Mini-Future (Short) may rise as well, if the interest credited exceeds the interest margin.
**Corporate actions may cause extraordinary adjustments of financing level and stop-loss level.

 

What happens if a Mini-Future (Short) breaches the stop-loss level?
If the underlying asset rises and breaches the stop-loss threshold, a stop-loss event occurs. The Mini-Future (Short) is no longer traded and the issuer determines its redemption value. The redemption value is usually roughly equal to the difference between the financing level and the stop-loss threshold. However, a Mini-Future certificate’s redemption value may be different and, in the case of particularly unfavourable market developments, may even be zero after the stop-loss threshold is reached. The investor is automatically credited with the redemption value.

The following example uses an SMI® Mini-Future (Short) with a financing level at 8’750.
Calculation of the required number of SMI® Mini-Futures (Short):
Number = (portfolio value / reference price) x ratio
= (10’000 / 7’800) x 100 = 128 (128.21 rounded down)

Starting point SMI® falls
to 7’300
SMI® raises
to 8’300
Value, share portfolio 10’000.00 9’358.97 10’641.03
Value, Mini-Short 9.50 14.50 4.50
Value, Mini-Short position 1’216.00 1’856.00 576.00
Value, entire portfolio 11’216.00 11’214.97 11’217.03
Value, share portfolio
Starting point 10’000.00
SMI® falls
to 7’300
9’358.97
SMI® raises
to 8’300
10’641.03
Value, Mini-Short
Starting point 9.50
SMI® falls
to 7’300
14.50
SMI® raises
to 8’300
4.50
Value, Mini-Short position
Starting point 1’216.00
SMI® falls
to 7’300
1’856.00
SMI® raises
to 8’300
576.00
Value, entire portfolio
Starting point 11’216.00
SMI® falls
to 7’300
11’214.97
SMI® raises
to 8’300
11’217.03

In this example the value of the portfolio of shares changes in proportion to the SMI® price. If the SMI® drops, the value of the share portfolio does likewise, and vice versa. An SMI® Mini-Future (Short) position is created to hedge the share portfolio.

Now, should the value of the share portfolio drop, the value of the Mini-Future (Short) position increases. This more or less evens out the share portfolio movement either way. You therefore cease to benefit from rising prices of your share portfolio from the time the hedge is put in place

diagramm_430_absicherung_5_en

 

Calculation:

The value of a Mini-Future is roughly equal to the difference between the current financing level and the current SMI® price, divided by the ratio.
The value of the Mini-Future (Short) position in the portfolio is the value of the Mini-Future (Short) multiplied by the number of Mini-Futures (Short) required for hedging (in this case, about 128).
The value of the entire portfolio at the end of the table derives from the value of the share portfolio, plus the value of the Mini-Future (short) position.
The value of the portfolio as a whole remains roughly the same (possibly with a rounding difference), whether the value of the share portfolio rises or falls.

 

Please note:

Hedging a portfolio of Swiss shares with SMI® Mini-Futures (Short) is at best approximate. The greater the correlation of share portfolio and SMI®, the more precise the hedge. For reasons of clarity, this example assumes a share portfolio that develops 1:1 with the SMI® (100% correlation).
The Mini-Future (Short) position adds to the portfolio and should not be seen as the cost of hedging. When using Mini-Futures (Short), hedging costs are made up of the following components: financing costs and bid-ask spread of the Mini-Future (Short); commission of the bank or broker who executed the order. An investor’s actual financing costs are determined by market interest rates, the issuer’s interest margin and the length of time the Mini-Future is held. Also, for reasons of clarity, the example above does not take account of the costs.

 

Discover the potential

A portfolio of shares can be hedged relatively efficiently and at little expense by adding a Mini-Future (Short) position. Since only one position is bought or sold, high transaction costs are avoided. Also, thanks to the leverage effect, the requisite position can be relatively small. Since the shares remain in the possession of the investor, he/she continues to receive dividend payments and retains shareholder rights. Mini-Futures are listed on SIX Swiss Exchange and may be bought or sold on any trading day, allowing investors to react rapidly to market events.

Structured Products Under Subscription

Knowledge

That investors or their advisors need a degree of basic knowledge to be successful, applies as much to structured products as it does to any other form of investment. There is enough specialized literature available to convey basic structured product knowledge. Two new SSPA publications, one a brief introduction to the world of structured products, the other a comprehensive reference work, facilitate this endeavour.

Both, new and advanced investors will find below additional information for literature regarding structured products as well as seminars held on the subject in Switzerland.

Factsheet_en

SSPA Factsheet

Structured Products at a glance

Short and compact: SSPA has bundled the most important information about structured products on a factsheet – representing its DNA.

pub3

Brief outline

A brief grounding in structured products

Our brief outline provides a concise overview of structured products. We present the most important forms of these financial investments in concise terms by reference to examples.

web_bro_2016_svsp_vademecum_e

SSPA Vademecum

Discover the potential.

“Discover the potential.” is the title of SSPA’s free-of-charge brief introductory brochure on structured products.

pub2

SSPA Compendium

The World of Structured Products “Die Welt der Strukturierten Produkte” (currently available only in German) is a reference work for advanced investors, asset managers and students. Its over 380 pages contain a comprehensive market survey and detailed product descriptions.

Sarasin

Sarasin Derivative Compendium (German)

The «Sarasin Derivative Kompendium» (currently available in German only), with its overview of options and structured products, meets the information needs of many an investor.

pub5

Presentation: performance, costs and investment study of structured products

First comprehensive study for Swiss market.

Guide2Investment

Guide to investment certificates (German and French)

Guide to investment certificates: «Handbuch der Investment Zertifikate» (currently available in German, French and Italian). This guide to the world of structured products covers the genesis of certificates, structuring assets, how they function, investment oppotunities, risks and practical tips.

2012_Compendium

Swiss Derivative Guide 2012 (German)

Swiss Derivative Guide 2012 (currently available in German only). The guide is a prime source of detailed up to date structured product information. Practical tips help investors choose the structured product and payoff diagram ideally suited for their needs.

Structured_Products

How to invest in Structured Products

This book in English offers a soft but critical introduction to the world of structured products, followed by an in-depth look across all asset classes. Includes practical tips, without mathematics. 390 pages.

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Options, Derivatives and Structured Products (German)

Options, Derivatives and Structured Products: «Optionen, Derivate und Strukturierte Produkte – ein Praxisbuch». The work, written by Marc Oliver Rieger helps to understand and optimize the application of options, derivatives and structured products and serves as a valued reference work.

Test of Knowledge

Glossary

SSPA has been developed to give quick access to definitions of terms and concepts used in the foreign exchange, money, equity, commodity and debt markets. Terms used in technical analysis and macro-economics are also included. It is fully cross-referenced and many terms have links to other websites that give additional information.

Select a letter:

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z #

Seminars

Swiss Derivative Institure (SDI)

The independent Swiss Derivative Institute (SDI) holds courses for executives on structured products in Switzerland. The Institute also offers individually designed seminars for banks and institutional investors.

CONTACT

EDA

EDA is a source of training and advanced training in finance, with a particular focus on structured products. To learn more, go to.

CONTACT

International Fund Business School

Seminar to graduate as SSPO - Swiss Structured Products Officer, cert. FA.

Seminars take place in Geneva (website and seminars in French).

CONTACT

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